Document:

Exhibit 10.11

 

Registration
Rights Agreement

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into effective as of _______, 2019 (the
 “Effective Date”) between DarioHealth Corp., a Delaware corporation (the “Company”),
and the persons who have executed the signature page(s) hereto (each, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS:

 

WHEREAS, the Company
is conducting a private placement offering (the “Offering”) of a minimum of 8,000 ($8,000,000) shares of Series
A Preferred Stock, par value $0.0001 (“Series A Preferred” or “Shares”) and a maximum of
15,000 Shares ($15,000,000), plus an over-allotment of an additional 5,000 ($5,000,000) Shares; and

 

WHEREAS, in connection
with the Offering, the Company agreed to provide certain registration rights related to the shares of Common Stock issuable upon
conversion of the Series A Preferred (the “Conversion Shares”) on the terms set forth herein.

 

Now,
Therefore, in consideration of the mutual promises, representations, warranties, covenants, and conditions set forth herein,
the parties mutually agree as follows:

 

1.            
Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Agreement”
has the meaning given it in the preamble to this Agreement.

 

“Allowed Delay”
has the meaning given it in Section 2(c)(2) of this Agreement.

 

“Approved
Market” means the Over-the-Counter Bulletin Board, the OTC Markets, Nasdaq Stock Market, the New York Stock Exchange
or the NYSE American.

 

“Blackout
Period” means, with respect to a registration, a period, in each case commencing on the day immediately after the Company
notifies the Purchasers that they are required, because of the occurrence of an event of the kind described in Section 3(f) hereof,
to suspend offers and sales of Registrable Securities during which the Company, in the good faith judgment of its board of directors,
determines (because of the existence of, or in anticipation of, any acquisition, financing activity, or other transaction involving
the Company, or the unavailability for reasons beyond the Company’s control of any required financial statements, disclosure
of information which is in its best interest not to publicly disclose, or any other event or condition of similar significance
to the Company) that the registration and distribution of the Registrable Securities to be covered by such Registration Statement,
if any, would be seriously detrimental to the Company or its stockholders and ending on the earlier of (1) the date upon which
the MNPI commencing the Blackout Period is disclosed to the public or ceases to be material and (2) such time as the Company notifies
the selling Holders that the Company will no longer delay such filing of the Registration Statement, recommence taking steps to
make such Registration Statement effective, or allow sales pursuant to such Registration Statement to resume.

 

    

     

    

 

“Business
Day” means any day of the year, other than a Saturday, Sunday, or other day on which the Commission is required or authorized
to close.

 

“Commission”
or “SEC” means the U.S. Securities and Exchange Commission or any other applicable federal agency at the time
administering the Securities Act.

 

“Common Stock”
means the common stock, par value $0.0001 per share, of the Company and any and all shares of capital stock or other equity securities
of: (i) the Company which are added to or exchanged or substituted for the Common Stock by reason of the declaration of any stock
dividend or stock split, the issuance of any distribution or the reclassification, readjustment, recapitalization or other such
modification of the capital structure of the Company; and (ii) any other corporation, now or hereafter organized under the laws
of any state or other governmental authority, with which the Company is merged, which results from any consolidation or reorganization
to which the Company is a party, or to which is sold all or substantially all of the shares or assets of the Company, if immediately
after such merger, consolidation, reorganization or sale, the Company or the stockholders of the Company own equity securities
having in the aggregate more than 50% of the total voting power of such other corporation.

 

“Company”
has the meaning given it in the preamble to this Agreement.

 

“Conversion
Shares” has the meaning given it in the recitals of this Agreement.

 

“Effective
Date” has the meaning given it in the preamble to this Agreement.

 

“Effectiveness
Deadline” means the date that is ninety (90) days after the Registration Filing Deadline.

 

“Effectiveness
Period” has the meaning given it in Section 2(a) of this Agreement

 

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

 

“Holder”
means a Purchaser or any permitted transferee or assignee thereof to whom a Purchaser assigns its rights under this Agreement and
who agrees to become bound by the provisions of this Agreement in accordance with Section 6 and any transferee or assignee
thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 6.

 

“Majority
Holders” means at any time holders of at least a majority of the Registrable Securities.

 

“MNPI”
means material non-public information within the meaning of Regulation FD promulgated under the Exchange Act, which shall, in any
case, include the receipt of the notice pursuant to Section 2(c) and the information contained in such notice.

 

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“Piggyback
Registration” means, in any registration of Common Stock as set forth in Section 2(d), the ability of holders of Registrable
Securities to include Registrable Securities in such registration.

 

“Placement
Agent” means Aegis Capital Corp.

 

The terms “register,”
 “registered,” and “registration” refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration
statement.

 

“Registrable
Securities” means (i) the Conversion Shares issued or issuable upon conversion of the Series A Preferred, and (ii) any
capital stock of the Company issued or issuable with respect to the Conversion Shares or the Series A Preferred as a result of
any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitations on
conversion of the Series A Preferred.

 

“Registration
Filing Date” means the date that is ninety (90) days after the date of the final closing of the Offering.

 

“Registration
Statement” means the registration statement that the Company is required to file pursuant to this Agreement to register
the Registrable Securities.

 

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

 

“Rule 415”
means Rule 415 promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such rule.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute promulgated in replacement thereof,
and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

2.            Registration.

 

(a)            
Mandatory Registration. Not later than the Registration Filing Date, the Company shall file with the Commission a
Registration Statement on Form S-1, Form S-3 or any other appropriate form, relating to the resale by the Holders of all of the
Registrable Securities, and the Company shall use commercially reasonable efforts to cause such Registration Statement to be declared
effective by the Commission as soon as practicable thereafter, but in no event later than the Effectiveness Deadline and shall
use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date that all
Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may
be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in
compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders
(the “Effectiveness Period”). The registration rights under this Section 2 shall not apply or be available with
respect to securities of the Company held by affiliates (as defined in Rule 405 under the Securities Act) and related persons (as
defined in Rule 404 under the Securities Act) of the Placement Agent or the officers and directors of the Company and their affiliates.

 

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(b)            
Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement
and any increase in the number of Registrable Securities included therein shall be allocated pro rata among the Holders based on
the number of Registrable Securities held by each Holder at the time the Registration Statement covering such initial number of
Registrable Securities or increase thereof is declared effective by the SEC. In the event that a Holder sells or otherwise transfers
any of such Holder’s Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining
number of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock included
in a Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered by
such Registration Statement shall be allocated to the remaining Holders, pro rata based on the number of Registrable Securities
then held by such Holders which are covered by such Registration Statement. In no event shall the Company include any securities
other than Registrable Securities on any Registration Statement without the prior written consent of the Majority Holders.

 

(c)            
(1) if the Commission allows the Registration Statement to be declared effective at any time before or after the Effectiveness
Date, subject to the withdrawal of certain Registrable Securities from the Registration Statement, and the reason is the Commission’s
determination that (x) the offering of any of the Registrable Securities constitutes a primary offering of securities by the Company,
(y) Rule 415 may not be relied upon for the registration of the resale of any or all of the Registrable Securities, and/or (z)
a Holder of any Registrable Securities must be named as an underwriter, the Holders understand and agree the Company may reduce,
on a pro rata basis, the total number of Registrable Securities to be registered on behalf of each such Holder. In any such
pro rata reduction, the number of Registrable Securities to be registered on such Registration Statement will be reduced
on a pro rata basis based on the total number of unregistered Conversion Shares. In addition, any such affected Holder shall be
entitled to Piggyback Registration rights after the Registration Statement is declared effective by the Commission until such time
as: (AA) all Registrable Securities have been registered pursuant to an effective Registration Statement, (BB) the Registrable
Securities may be resold without restriction pursuant to SEC Rule 144 of the Securities Act or (CC) the Holder agrees to be named
as an underwriter in any such registration statement. The Holders acknowledge and agree the provisions of this paragraph may apply
to more than one Registration Statement; and

 

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(2)            For
not more than thirty (30) consecutive days or for a total of not more than sixty (60) days in any twelve (12) month period, the
Company may suspend the use of any prospectus included in any Registration Statement contemplated by this Section in the event
that the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of MNPI concerning the
Company, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company
or (B) amend or supplement the affected Registration Statement or the related prospectus so that (i) such Registration Statement
shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein or (ii) such prospectus shall not include an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements, in the light of the circumstances under which they were made, not misleading,
including in connection with the filing of a post-effective amendment to such Registration Statement in connection with the Company’s
filing of an Annual Report on Form 10-K for any fiscal year (an “Allowed Delay”); provided, that the Company
shall promptly (a) notify each Holder in writing of the commencement of an Allowed Delay, but shall not (without the prior written
consent of an Holder) disclose to such Holder any MNPI giving rise to an Allowed Delay, (b) advise the Holders in writing to cease
all sales under the Registration Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts to terminate
an Allowed Delay as promptly as practicable.

 

(d)           
Piggyback Registration Rights. In addition to the Company’s agreement pursuant to Section 2(a) above, if the
Company shall, at any time during the Effectiveness Period or as contemplated pursuant to Section 2(c) and ending when all Registrable
Securities have been sold by Holders, determine (i) to register for sale any of its Common Stock in an underwritten offering, or
(ii) to file a registration statement covering the resale of any shares of the Common Stock held by any of its shareholders (other
than the registration contemplated in Section 2(a) above), the Company shall provide written notice to the Holders, which notice
shall be provided no less than fifteen (15) calendar days prior to the filing of such applicable registration statement (the “Company
Notice”). In that event, the right of any Holder to include the Registrable Securities in such a registration shall be
conditioned upon such Holder’s written request to participate which shall be delivered to the Company within ten (10) calendar
days after the Company Notice, as well as such Holder’s participation in such underwriting (if applicable, for purposes of
this paragraph) and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.
All Holders proposing to sell any of their Registrable Securities through such underwriting shall (together with the Company and
any other stockholders of the Company selling their securities through such underwriting) enter into an underwriting agreement
in customary form with the underwriter selected for such underwriting. Notwithstanding anything herein to the contrary, if the
underwriter determines that marketing factors require a limitation on the number of shares of Common Stock or the amount of other
securities to be underwritten, the underwriter may exclude some or all Registrable Securities from such registration and underwriting.
The Company shall so advise all Holders (except those Holders who failed to timely elect to include their Registrable Securities
through such underwriting or have indicated to the Company their decision not to do so), and indicate to each such Holder the number
of shares of Registrable Securities that may be included in the registration and underwriting, if any. The number of Registrable
Securities to be included in such registration and underwriting shall be allocated first to the Company, then to all other selling
stockholders, including the Holders, who have requested to sell in the registration on a pro rata basis according to the number
of shares requested to be included therein. If any Holder disapproves of the terms of any such underwriting, such Holder may elect
to withdraw such Holder’s Registrable Securities therefrom by delivering a written notice to the Company and the underwriter.
A Holder with Registrable Securities included in any registration shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required in order
to comply with any applicable law or regulation in connection with the registration of such Holder’s Registrable Securities
or any qualification or compliance with respect to such Holder’s Registrable Securities and referred to in this Agreement.
The Company shall have the right to terminate or withdraw any registration initiated by it before the effective date of such registration,
whether or not any Holder has elected to include Registrable Securities in such registration. Notwithstanding the foregoing, the
Company shall not be required to register any Registrable Securities pursuant to this Section 2(d) that are eligible for resale
pursuant to Rule 144 without restriction (including, without limitation, volume restrictions) or that are the subject of a then-effective
Registration Statement. The Company may postpone or withdraw the filing or the effectiveness of a piggyback registration at any
time in its sole discretion.

 

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3.            Registration Procedures for Registrable Securities. The Company will keep each Holder reasonably advised as to the
filing and effectiveness of the Registration Statement. At its expense with respect to the Registration Statement, the Company
will:

 

(a)           
prepare and file with the Commission with respect to the Registrable Securities, a Registration Statement on Form S-1, Form
S-3, or any other form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form
shall be available for the sale of the Registrable Securities in accordance with the intended methods of distribution thereof,
and use its commercially reasonable efforts to cause such Registration Statement to become effective and shall remain the Effectiveness
Period. Thereafter, the Company shall be entitled to withdraw such Registration Statement and the Holders shall have no further
right to offer or sell any of the Registrable Securities registered for resale thereon pursuant to the respective Registration
Statement (or any prospectus relating thereto);

 

(b)           
if the Registration Statement is subject to review by the Commission, respond in a commercially reasonable manner to all
comments and diligently pursue resolution of any comments to the satisfaction of the Commission;

 

(c)           
prepare and file with the Commission such amendments and supplements to such Registration Statement as may be necessary
to keep such Registration Statement effective during the Effectiveness Period;

 

(d)           
furnish, without charge, to each Holder of Registrable Securities covered by such Registration Statement (i) a reasonable
number of copies of such Registration Statement (including any exhibits thereto other than exhibits incorporated by reference),
each amendment and supplement thereto as such Holder may reasonably request, (ii) such number of copies of the prospectus included
in such Registration Statement (including each preliminary prospectus and any other prospectus filed under Rule 424 of the Securities
Act) as such Holders may reasonably request, in conformity with the requirements of the Securities Act, and (iii) such other documents
as such Holder may require to consummate the disposition of the Registrable Securities owned by such Holder, but only during the
Effectiveness Period;

 

(e)           
use its commercially reasonable efforts to register or qualify such registration under such other applicable securities
laws of such jurisdictions as any Holder of Registrable Securities covered by such Registration Statement reasonably requests and
as may be necessary for the marketability of the Registrable Securities (such request to be made by the time the applicable Registration
Statement is deemed effective by the Commission) and do any and all other acts and things necessary to enable such Holder to consummate
the disposition in such jurisdictions of the Registrable Securities owned by such Holder; provided, that the Company shall
not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph, (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service of process
in any such jurisdiction.

 

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(f)            
notify each Holder of Registrable Securities, the disposition of which requires delivery of a prospectus relating thereto
under the Securities Act, of the happening of any event (as promptly as practicable after becoming aware of such event), which
comes to the Company’s attention, that will after the occurrence of such event cause the prospectus included in such Registration
Statement, if not amended or supplemented, to contain an untrue statement of a material fact or an omission to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,
and the Company shall promptly thereafter prepare and furnish to such Holder a supplement or amendment to such prospectus (or prepare
and file appropriate reports under the Exchange Act) so that, as thereafter delivered to the purchasers of such Registrable Securities,
such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading, unless suspension
of the use of such prospectus otherwise is authorized herein or in the event of a Blackout Period, in which case no supplement
or amendment need be furnished (or Exchange Act filing made) until the termination of such suspension or Blackout Period;

 

(g)            comply, and continue to comply during the Effectiveness Period, in all material respects with the Securities Act and the
Exchange Act and with all applicable rules and regulations of the Commission with respect to the disposition of all securities
covered by such Registration Statement;

 

(h)            as
promptly as practicable after becoming aware of such event, notify each Holder of Registrable Securities being offered or sold
pursuant to the Registration Statement of the issuance by the Commission of any stop order or other suspension of effectiveness
of the Registration Statement;

 

(i)             use
its commercially reasonable efforts to cause all the Registrable Securities covered by the Registration Statement to be quoted
on such Approved Market on which securities of the same class or series issued by the Company are then listed or quoted;

 

(j)            
provide a transfer agent and registrar, which may be a single entity, for the shares of Common Stock registered hereunder;

 

(k)            though
the Registrable Securities will be issued in book entry form, if requested by the Holders, cooperate with the Holders to facilitate
the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant
to the Registration Statement, which certificates shall be free, to the extent permitted by applicable law, of all restrictive
legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders
may request; and

 

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(l)           
take all other reasonable actions necessary to expedite and facilitate the disposition by the Holders of the Registrable
Securities pursuant to the Registration Statement.

 

4.            Suspension
of Offers and Sales. Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event of
the kind described in Section 3(f) hereof or of the commencement of a Blackout Period, such Holder shall discontinue the disposition
of Registrable Securities included in the Registration Statement until such Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(f) hereof or notice of the end of the Blackout Period, and, if so directed by
the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies (including, without limitation,
any and all drafts), other than permanent file copies, then in such Holder’s possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

 

5.            Registration
Expenses. The Company shall pay all expenses in connection with any registration obligation provided herein, including, without
limitation, all registration, filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable
securities laws, and the fees and disbursements of counsel for the Company and of its independent accountants; provided,
that, in any registration, each party shall pay for its own underwriting discounts and commissions and transfer taxes. Except
as provided in this Section 5 and Section 8, the Company shall not be responsible for the expenses of any attorney or other advisor
employed by a Holder.

 

6.           Assignment
of Rights. The rights under this Agreement shall be automatically assignable by the Holders to any transferee of all or any
portion of such Holder’s Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee
to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment;
(ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are
being transferred or assigned and (iii) immediately following such transfer or assignment the further disposition of such
securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws; (iv) at
or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions contained herein.

 

7.            Information
by Holder. A Holder with Registrable Securities included in any registration shall furnish to the Company (and any managing
underwriter(s), where applicable) such information regarding itself, the Registrable Securities held by it, the intended method
of disposition of such securities, and such other information as shall be required in order to comply with any applicable law
or regulation in connection with the registration of such Holder’s Registrable Securities or any qualification or compliance
with respect to such Holder’s Registrable Securities and referred to in this Agreement. A form of Selling Stockholder Questionnaire
is attached as Exhibit A hereto.

 

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8.            Indemnification.

 

(a)           
In the event of the offer and sale of Registrable Securities under the Securities Act, the Company shall, and hereby does,
indemnify and hold harmless, to the fullest extent permitted by law, each Holder, its directors, officers, partners, each other
person who participates as an underwriter in the offering or sale of such securities, and each other person, if any, who controls
or is under common control with such Holder or any such underwriter within the meaning of Section 15 of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, and expenses to which the Holder or any such director, officer, partner
or underwriter or controlling person may become subject under the Securities Act, the Exchange Act, or any other federal or state
law, insofar as such losses, claims, damages, liabilities or expenses (or actions or proceedings, whether commenced or threatened,
in respect thereof) arise out of or are based upon (1), in the case of any registration statement prepared and filed by the Company
under which Registrable Securities were registered under the Securities Act, if such registration statement contained an untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements
therein not misleading or (2) in the case of any preliminary prospectus, final prospectus or summary prospectus contained in such
registration statement, or any amendment or supplement thereto, if such preliminary prospectus, final prospectus or summary prospectus
includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements, in
the light of the circumstances under which they were made, not misleading, or any violation or alleged violation of the Securities
Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act
or any state securities law in connection with this Agreement; and the Company shall reimburse the Holder, and each such director,
officer, partner, underwriter and controlling person for any legal or any other expenses reasonably incurred by them in connection
with investigating, defending or settling any such loss, claim, damage, liability, action or proceeding; provided, that
such indemnity agreement found in this Section 8(a) shall in no event exceed the net proceeds from the Offering received by the
Company; and provided further, that the Company shall not be liable in any such case (i) to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement
in or omission from such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment
or supplement in reliance upon and in conformity with written information furnished to the Company by the Holder specifically for
use in the preparation thereof or (ii) if the person asserting any such loss, claim, damage, liability (or action or proceeding
in respect thereof) who purchased the Registrable Securities that are the subject thereof did not receive a copy of the preliminary
prospectus or the final prospectus (or the final prospectus as amended or supplemented) at or prior to the written confirmation
of the sale of such Registrable Securities to such person because of the failure of such Holder or underwriter to so provide such
preliminary or final prospectus and the untrue statement or omission of a material fact made in such preliminary prospectus was
corrected in the amended preliminary or final prospectus (or the final prospectus as amended or supplemented). Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Holders, or any such director, officer,
partner, underwriter or controlling person and shall survive the transfer of such shares by the Holder.

 

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(b)           
As a condition to including Registrable Securities in any registration statement filed pursuant to this Agreement, each
Holder agrees to be bound by the terms of this Section 8 and to indemnify and hold harmless, to the fullest extent permitted by
law, the Company, its directors and officers, and each other person, if any, who controls the Company within the meaning of Section
15 of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which the Company or any such
director or officer or controlling person may become subject under the Securities Act, the Exchange Act, or any other federal or
state law, to the extent arising out of or based solely upon: (x) such Holder’s failure to comply with the prospectus delivery
requirements of the Securities Act or (y)(1), in the case of any registration statement prepared and filed by the Company under
which Registrable Securities were registered under the Securities Act, if such registration statement contained an untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein
not misleading or (2) in the case of any preliminary prospectus, final prospectus or summary prospectus contained in such registration
statement, or any amendment or supplement thereto, such preliminary prospectus, final prospectus or summary prospectus includes
an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements, in the light
of the circumstances under which they were made, not misleading, (i) to the extent, but only to the extent, that such untrue statement
or omission referred to in (y)(1) or (y)(2) above is contained in any information so furnished in writing by such Holder to the
Company specifically for inclusion in the registration statement or such prospectus or (ii) to the extent that (1) such untrue
statements or omissions referred to in (y)(1) or (y)(2) above are based solely upon information regarding such Holder furnished
in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder
or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing
by such Holder expressly for use in the Registration Statement, such prospectus or such form of prospectus or in any amendment
or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(f) hereof, the use by
such Holder of an outdated or defective prospectus after the Company has notified such Holder in writing that the prospectus is
outdated or defective and prior to the receipt by such Holder of the advice contemplated in Section 3(f). Each Holder’s obligation
to indemnify shall be individual, not joint and several, and in no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

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(c)           
Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim
referred to in this Section (including any governmental action), such indemnified party shall, if a claim in respect thereof is
to be made against an indemnifying party, give written notice to the indemnifying party of the commencement of such action; provided,
that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations
under this Section, except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. In
case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to
assume the defense thereof, with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense
thereof, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying
parties arises in respect of such claim after the assumption of the defenses thereof or the indemnifying party fails to defend
such claim in a diligent manner. If, in such indemnified party’s reasonable judgment a conflict of interest between such
indemnified and indemnifying parties arises in respect of such claim after the assumption of the defenses thereof, the indemnified
party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party. No indemnifying party
shall be liable for any settlement of any action or proceeding effected without its consent. No indemnifying party shall, without
the consent of the indemnified party (which consent shall not be unreasonably withheld, conditioned or delayed), consent to entry
of any judgment or enter into any settlement, unless such consent to entry of judgment or settlement includes as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such
claim or litigation. Notwithstanding anything to the contrary set forth herein, and without limiting any of the rights set forth
above, in any event any party shall have the right to retain, at its own expense, counsel with respect to the defense of a claim.

 

(d)          
If an indemnifying party does or is not permitted to assume the defense of an action pursuant to Section 8(c) or in the
case of the expense reimbursement obligation set forth in Sections 8(a) and (b), the indemnification required by Sections 8(a)
and 8(b) shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when
bills received or expenses, losses, damages, or liabilities are incurred provided that the indemnifying party is provided appropriate
documentation.

 

(e)          
If the indemnification provided for in Section 8(a) or 8(b) is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, the indemnifying party,
in lieu of indemnifying such indemnified party hereunder, shall (i) contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense as is appropriate to reflect the proportionate relative fault
of the indemnifying party on the one hand and the indemnified party on the other (determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission relates to information supplied by the indemnifying
party or the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such untrue statement or omission), or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, not only the proportionate relative
fault of the indemnifying party and the indemnified party, but also the relative benefits received by the indemnifying party on
the one hand and the indemnified party on the other, as well as any other relevant equitable considerations. No indemnified party
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any indemnifying party who was not guilty of such fraudulent misrepresentation.

 

    11

     

    

 

9.            Rule
144. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC
that may at any time permit the Holders to sell the Registrable Securities to the public without registration, the Company agrees
to use commercially reasonable efforts to: (i) to make and keep public information available as those terms are understood in
SEC Rule 144, (ii) to file with the SEC in a timely manner all reports and other documents required to be filed by an issuer of
securities registered under the Securities Act or the Exchange Act pursuant to SEC Rule 144, (iii) as long as any Holder owns
any Registrable Securities, to furnish in writing upon such Holder’s request a written statement by the Company that it
has complied with the reporting requirements of SEC Rule 144 and of the Securities Act and the Exchange Act, and to furnish to
such Holder a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed
by the Company as may be reasonably requested in availing such Holder of any rule or regulation of the SEC permitting the selling
of any such Registrable Securities without registration, (iv) with respect to the sale of any Registrable Securities by a Holder
pursuant to SEC Rule 144 and subject to Holder providing necessary documentation to meet the requirements of such rule, to promptly
furnish, without any charge to such Holder, a written legal opinion of its counsel to facilitate such sale and, if necessary,
instruct its transfer agent in writing that it may rely on said written legal opinion of counsel with respect to said sale and
(v) undertake any additional actions commercially necessary to maintain the availability of Rule 144.

 

10.          Independent
Nature of Each Purchaser’s Obligations and Rights. The obligations of each Purchaser under this Agreement are several
and not joint with the obligations of any other Purchaser, and each Purchaser shall not be responsible in any way for the performance
of the obligations of any other Purchaser under this Agreement. Nothing contained herein and no action taken by any Purchaser
pursuant hereto, shall be deemed to constitute such 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 this Agreement. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such purpose.

 

11.          Miscellaneous.

 

(a)           
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State 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, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address for such 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 manner permitted by law. If any provision of this Agreement shall
be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

    12

     

    

 

(b)           
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law
and under this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement.
The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason
of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(c)           
Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of,
and be binding upon, the successors, permitted transferees and assignees, executors and administrators of the parties hereto.

 

(d)           
No Inconsistent Agreements. The Company has not entered, as of the date hereof, and shall not enter, on or after
the date of this Agreement, into any agreement with respect to its securities that would have the effect of impairing the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

 

(e)           
Entire Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties
with regard to the subjects hereof.

 

(f)           
Notices, etc. All notices or other communications which are required or permitted under this Agreement shall be in
writing and sufficient if delivered by hand, by facsimile transmission, by registered or certified mail, postage pre-paid, by electronic
mail, or by courier or overnight carrier, to the persons at the addresses set forth below (or at such other address as may be provided
hereunder), and shall be deemed to have been delivered as of the date so delivered:

 

If to the Company to:

 

DarioHealth
Corp.

8 Ha Tokhen
Street

Caesarea
Industrial Park, Israel 3088900

Attention:
Attn: Erez Raphael, CEO

Zvi Ben-David,
CFO

Email:
erez@mydario.com and zvi@mydario.com

 

    13

     

    

 

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

 

Zysman, Aharoni, Gayer and Sullivan
 & Worcester LLP

1633 Broadway, 32nd Floor

New York, New York 10019

Attention: Oded Har-Even, Esq.

Email:
 ohareven@sullivanlaw.com

 

If to the Purchasers:

 

To each Purchaser at
the address set forth on the signature page hereto or at such other address as any party shall have furnished to the Company in
writing.

 

(g)           Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default
of the Company under this Agreement, shall impair any such right, power or remedy of such Holder nor shall it be construed to
be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereunder occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default
under this Agreement, or any waiver on the part of any Holder of any provisions or conditions of this Agreement, must be in writing
and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or
by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

(h)           Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one instrument. In the event that any signature is delivered
by facsimile transmission or electronic transmission via .PDF 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
electronic signature page were an original thereof.

 

(i)            Severability.
In the case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

 

(j)             Amendments.
The provisions of this Agreement may be amended at any time and from time to time, and particular provisions of this Agreement
may be waived, with and only with an agreement or consent in writing signed by the Company and the Majority Holders. The Purchasers
acknowledge that by the operation of this Section, the Majority Holders may have the right and power to diminish or eliminate
all rights of the Holders under this Agreement.

 

[SIGNATURE PAGES
FOLLOW]

 

    14

     

    

 

This Registration
Rights Agreement is hereby executed as of the date first above written.

 

	 	 	COMPANY: 
	 	 	 	 
	 	 	DarioHealth Corp. 
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	 	 	 	Name:	 	Erez Raphael
	 	 	 	Title:	 	Chief Executive Officer

 

EACH
PURCHASER’S SIGNATURE TO THE SUBSCRIPTION AGREEMENT THAT IS DELIVERED IN CONNECTION WITH THE Offering
SHALL CONSTITUTE SUCH PURCHASER’S SIGNATURE TO THIS REGISTRATION RIGHTS AGREEMENT.

 

    15

     

    

 

Exhibit A

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of DarioHealth Corp., a Delaware corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with
the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document
is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.
All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement.

 

    16

     

    

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Stockholder
	 	 	 
	 	 	 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities
are held:
	 	 	 
	 	 	 
	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly
alone or with others has power to vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

		2.	Address for Notices to Selling Stockholder:

 

	 
	 
	 
	Telephone:	 
	Fax:	 
	Contact Person:	 

 

3. Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

Yes  ̈         No  ̈

 

		(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation
for investment banking services to the Company?

 

Yes  ̈        No  ̈

 

		Note:	If “no” to Section 3(b), the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

    17

     

    

 

		(c)	Are you an affiliate of a broker-dealer?

 

Yes  ̈        No  ̈

 

		(d)	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities
in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes  ̈       No  ̈

 

		Note:	If “no” to Section 3(d), the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

4. Beneficial Ownership of Securities
of the Company Owned by the Selling Stockholder.

 

Except as set forth below
in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities
issuable pursuant to the Purchase Agreement.

 

		(a)	Type and Amount of other securities beneficially owned by the Selling Stockholder:
	 	 	 
	 	 	 
	 	 	 
	 

 

		(b)	Number of shares of Common Stock to be registered pursuant to this Notice for resale:
	 	 	 
	 	 	 
	 	 	 

 

    18

     

    

 

5. Relationships with the Company:

 

Except as set forth below,
neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past three years.

 

State any exceptions here:

 

	 	 
	 	 
	 	 	 

 

The undersigned agrees
to promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent
to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be
required to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion
of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration
Statement and the related prospectus and any amendments or supplements thereto.

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	Date: 	 	 	Beneficial Owner: 	 
	 	 	 	 
	       	 	 	By:	 
		 	 		Name:
	       	 	 	 	Title:
	 	 	 	 	 	 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED
AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

    19Exhibit 10.12

 

PLACEMENT AGENCY AGREEMENT

 

October 22, 2019

 

Aegis Capital Corp.

810 Seventh Ave, 18th Floor

New York, NY 10019

 

Re:          DarioHealth
Corp.

 

Ladies and Gentlemen:

 

This Placement Agency
Agreement (“Agreement”) sets forth the terms upon which Aegis Capital Corp., a New York corporation (“Aegis”
or “Placement Agent”), a registered broker-dealer and member of the Financial Industry Regulatory Authority
(“FINRA”), shall be engaged by DarioHealth Corp., a Delaware corporation (the “Company”)
to act as exclusive Placement Agent in connection with the private placement (the “Offering”) of up to an aggregate
of 20,000 shares (the “Shares”) of Series A Convertible Preferred Stock, par value $0.0001 per share (the
 “Series A Preferred Stock”). The Offering will consist of a minimum of 8,000 Shares ($8,000,000) (“Minimum
Offering Amount”) and up to a maximum of 15,000 Shares ($15,000,000) (“Maximum Offering Amount”) which
shall be offered on a “reasonable efforts, all or none” basis as to the Minimum Offering Amount and a “reasonable
efforts” basis for all amounts in excess of the Minimum Offering Amount. In the event the Offering is oversubscribed, the
Company and Placement Agent may, in their mutual discretion, have Company sell up to 5,000 additional Shares for an additional
aggregate purchase price of $5,000,000 (the “Overallotment”). For purposes hereof, this Agreement shall also
cover and the term “Shares” shall include to the potential issuance and sale of another series of convertible preferred
stock of the Company, with identical rights and preferences as the Series A Preferred Stock being sold in the Offering (except
for voting provisions) and which may be sold to certain persons due to concerns relating to beneficial ownership limitations.

 

The purchase price
for the Shares will be $1,000 per Share (the “Offering Price”), with a minimum investment of $100,000; provided,
however, that subscriptions for lesser amounts may be accepted in the Company’s and Placement Agent’s
joint discretion. The Placement Agent shall accept subscriptions only from persons or entities who qualify as “accredited
investors,” as such term is defined in Rule 501 of Regulation D (“Regulation D”) as promulgated by
the United States Securities and Exchange Commission (the “SEC”) under Section 4(a)(2) of the Securities
Act of 1933, as amended (the “Securities Act”). The Shares will be offered until the earlier of (i) the
termination of the Offering as provided herein, (ii) the time that all Shares offered in the Offering are sold or (iii) November 15,
2019 (“Initial Offering Period”), which date may be extended by the Placement Agent and the Company in their
joint discretion until January 31, 2020 (this additional period and the Initial Offering Period shall be referred to as the
 “Offering Period”). The date on which the Offering expires or is terminated shall be referred to as the “Termination
Date.”

 

    	 	 

     

    

 

With respect to the
Offering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer and sell all of the Shares
being offered. Purchases of Shares may be made by the Placement Agent and its officers, directors, employees and affiliates. All
such purchases, together with purchases by officers, directors, employees and affiliates of the Company, shall be included in calculations
as to whether the Minimum Offering Amount, Maximum Offering Amount or Overallotment has been sold in the Offering. The Company,
in its sole discretion, may accept or reject, in whole or in part, any prospective investment in the Shares. Notwithstanding anything
to the contrary set forth herein, it is understood that no sale shall be regarded as effective unless and until accepted by the
Company. The Company and the Placement Agent shall mutually agree with respect to allotting any prospective subscriber less than
the number of Shares that such subscriber desires to purchase.

 

The Offering will be
made by the Company solely pursuant to the Memorandum (as defined below), which at all times will be in form and substance reasonably
acceptable to the Company, the Placement Agent and their respective counsel and contain such legends and other information as Company,
the Placement Agent and their respective counsel, may, from time to time, deem necessary or desirable to be set forth therein.
 “Memorandum” as used in this Agreement means Company’s Confidential Private Placement Memorandum dated
on or about October 22, 2019, inclusive of all annexes, and all amendments, supplements and appendices thereto.

 

1.            Appointment
of Placement Agent. On the basis of the representations and warranties provided herein, and subject to the terms and conditions
set forth herein, the Placement Agent is appointed as exclusive placement agent for the Company during the Offering Period to
assist the Company in finding qualified subscribers for the Offering. The Placement Agent may sell Shares through other broker-dealers
who are FINRA members, as well as through foreign finders pursuant to applicable FINRA rules, and may reallow all or a portion
of the Agent Compensation (as defined in Section 3(b) below) it receives to such other broker-dealers or foreign finders.
On the basis of such representations and warranties and subject to such terms and conditions, the Placement Agent hereby accepts
such appointment and agrees to perform its services hereunder diligently and in good faith and in a professional and businesslike
manner and to use its reasonable efforts to assist the Company in (A) finding subscribers of Shares who qualify as “accredited
investors,” as such term is defined in Rule 501 of Regulation D, and (B) completing the Offering. The Placement
Agent has no obligation to purchase any of the Shares. Unless sooner terminated in accordance with this Agreement, the engagement
of the Placement Agent hereunder shall continue until the later of the Termination Date or the Final Closing (as defined below).

 

2.            Representations,
Warranties and Covenants of the Company. Except as set forth in the Memorandum, the SEC Reports (as defined herein) or in the
schedule of exceptions delivered to the Placement Agent on the date hereof (the “Schedule of Exceptions”), the
representations and warranties of the Company contained in this Section 2 are true and correct as of the date of this Agreement.

 

    	 	2	 

     

    

 

(a)            The
Memorandum has been prepared by the Company in compliance in all material respects with Regulation D and Section 4(a)(2) of
the Act and the requirements of all other rules and regulations (the “Regulations”) relating to offerings
of the type contemplated by the Offering, and the applicable securities laws and the rules and regulations of those jurisdictions
wherein the Placement Agent notifies the Company that the Shares are to be offered and sold excluding any foreign jurisdictions.
The Shares will be offered and sold pursuant to the registration exemptions provided by Regulation D and Section 4(a)(2) of
the Act as a transaction not involving a public offering and the requirements of any other applicable state securities laws and
the respective rules and regulations thereunder in those United States jurisdictions in which the Placement Agent notifies
the Company that the Shares are being offered for sale. To the extent that Shares are offered in jurisdictions outside of the United
States, such Shares will be offered and sold in compliance with all applicable laws that govern private securities offerings in
the applicable country and in all local jurisdictions in which such Shares are offered. None of the Company, its affiliates, or
any person acting on its or their behalf (other than the Placement Agent, its affiliates or any person acting on its behalf, in
respect of which no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements
of, or that would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to
Rule 506(b) of Regulation D or Section 4(a)(2) of the Act, or knows of any reason why any such exemption would
be otherwise unavailable to it. None of the Company, its predecessors or affiliates has been subject to any order, judgment or
decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person for failing to comply
with Section 503 of Regulation D. The Company has not, for a period of six months prior to the commencement of the offering
of Shares, sold, offered for sale or solicited any offer to buy any of its securities in a manner that would be integrated with
the offer and sale of the Shares pursuant to this Agreement and would cause the exemption from registration set forth in Rule 506(b) of
Regulation D to become unavailable with respect to the offer and sale of the Shares pursuant to this Agreement in the United States.
For purposes of this Agreement, "to the Company’s Knowledge" or similar phrases means (a) the actual knowledge
of any of Erez Raphael and Zvi Ben-David of a fact or matter after making reasonable inquiry.

 

(b)            The
Memorandum does not include 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, in light of the circumstances under which they were made, not misleading; provided,
however, the foregoing does not apply to any statements or omissions made solely in reliance on and in conformity with written
information furnished to the Company by the Placement Agent specifically for use in the preparation thereof. To the Company’s
Knowledge, none of the statements, documents, certificates or other items made, prepared or supplied by the Company with respect
to the transactions contemplated hereby contains an untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained therein not misleading in light of the circumstances in which they were made. There are no facts,
circumstances or conditions which the Company has not disclosed in the Memorandum and of which the Company is aware that has had
or that could reasonably be expected to have a Company Group Material Adverse Effect (as defined in Section 2(c) below).
Notwithstanding anything to the contrary herein, the Company makes no representation or warranty with respect to any estimates,
projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections
and other forecasts and plans) that may have been delivered to the Placement Agent or its representatives or that are contained
in the Memorandum, except that such estimates, projections and other forecasts and plans have been prepared in good faith on the
basis of assumptions stated therein, which assumptions were believed to be reasonable at the time of such preparation. Any statistical
and market-related data included in the Memorandum are based on or derived from sources that the Company believes, after reasonable
inquiry, to be reliable and accurate in all material respects and, to the extent required, the Company has obtained the written
consent to the use of such data from such sources.

 

    	 	3	 

     

    

 

(c)            The
Company is a corporation duly incorporated and validly existing in good standing under the laws of the State of Delaware and has
the requisite power and authority to own its properties and to carry on its business as described in the Memorandum. Section 2(c) of
the Schedule of Exceptions lists each entity owned or controlled, directly or indirectly by the Company (each a “Subsidiary”
and collectively, the “Subsidiaries”). Each Subsidiary is duly incorporated or formed, as applicable, validly
existing and in good standing under the laws of the state or foreign jurisdiction of its incorporation or formation, as applicable,
as set forth in Section 2(c) of the Schedule of Exceptions. Except as set forth on Section 2(c) of the Schedule
of Exceptions, neither the Company nor any Subsidiary (i) owns or controls, directly or indirectly, any interest in any other
corporation, association or other business entity or (ii) participates in any joint venture, partnership or similar arrangement.
Each Subsidiary has the requisite company power to own, operate and lease its properties and to carry out its business as described
in the Memorandum. Each of the Company and the Subsidiaries (collectively referred to herein as the “Company Group) is
qualified or licensed to do business in the jurisdictions listed in Section 2(c) of the Schedule of Exceptions,
except for any failure to be so qualified or licensed that would not have a Company Group
Material Adverse Effect. Each member of the Company Group is qualified or licensed to do business in all jurisdictions in
which the character of the properties owned or held under lease by it or the nature of its business makes qualification necessary,
except where the failure to be so qualified or licensed would not reasonably be expected to result in a Company Group Material
Adverse Effect. No member of the Company Group is in violation of any provision of any of its organizational documents. As used
in this Agreement, “Company Group Material Adverse Effect” means any event, circumstance, change or effect that,
individually or in the aggregate with all other events, circumstances, changes and effects, is or is reasonably likely to be materially
adverse to (i) the business, condition (financial or otherwise), assets, liabilities or results of operations of the Company
and its Subsidiaries taken as a whole or (ii) the ability of the Company to consummate the transactions contemplated by this
Agreement and to perform its obligations under the Transaction Documents; provided, however, that clause (i) shall not include
any event, circumstance, change or effect resulting from (y) changes in general economic conditions or changes in securities
markets in general that do not have a materially disproportionate effect (relative to other industry participants) on the Company
or its Subsidiaries or (z) general changes in the industries in which the Company and the Company Subsidiaries operate, except
those events, circumstances, changes or effects that adversely affect the Company and its Subsidiaries to a materially greater
extent than they affect other entities operating in such industries.

 

(d)            The
Company has all requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Registration
Rights Agreement substantially in the form of Exhibit B to the Memorandum (the “Registration Rights Agreement”),
the Subscription Agreement substantially in the form of Exhibit A to the Memorandum (the “Subscription Agreement”),
the Escrow Agreement (as hereinafter defined) and the other agreements contemplated hereby (this Agreement, the Subscription Agreement,
the Registration Rights Agreement and the other agreements contemplated hereby that the Company is executing and delivering hereunder
are collectively referred to herein as the “Transaction Documents”).

 

    	 	4	 

     

    

 

(e)            The
Shares to be purchased by investors pursuant to the Memorandum and the Agent Warrants (as defined in Section 3(b)) to be issued
to the Placement Agent pursuant to the terms of this Agreement have been duly authorized for issuance and sale pursuant to this
Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth
herein, will be duly and validly issued, fully paid and non-assessable and will have the rights, preferences and priorities set
forth in the Company’s Certificate of Incorporation (including the Certificate of Designation, as defined below). The shares
of common stock, par value $0.0001 of the Company (“Common Stock”) issuable upon conversion of the Shares and
Agent Warrant Shares (as defined in Section 3(b)) (collectively, the “Conversion Shares”) have been duly
authorized and reserved for issuance and when issued by the Company upon valid conversion of the Shares and Agent Warrant Shares,
will be duly and validly issued, fully paid and nonassessable. The shares of Common Stock which may be issued as dividends on the
Shares (collectively, the “Dividend Shares”) have been duly authorized and reserved for issuance, and when issued
by the Company in payment of dividends on the Shares, will be duly and validly issued, fully paid and nonassessable. The Agent
Warrant Shares have been duly authorized and reserved for issuance and when issued by the Company pursuant to the terms of the
Agent Warrants, will be duly and validly issued, fully paid and nonassessable. The issuance of the Shares, Conversion Shares, Dividend
Shares, Agent Warrants and Agent Warrant Shares are not subject to any preemptive or other similar rights of any securityholder
of the Company. The capital stock of the Company conforms in all material respects to all statements relating thereto contained
in the Memorandum. No holder of Shares or Agent Warrants will be subject to personal liability solely by reason of being such a
holder.

 

(f)            Prior
to the First Closing, each of the Transaction Documents (other than this Agreement, which has already been authorized) will have
been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes, and each of the other Transaction
Documents, upon due execution and delivery, will constitute, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms (i) except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’
rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers,
and except that no representation is made herein regarding the enforceability of the Company’s obligations to provide indemnification
and contribution remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles
(regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(g)            Neither
the execution and the delivery of this Agreement or any Transaction Document, nor the consummation of the transactions contemplated
hereby, will (with or without the passage of time or giving of notice): (i) violate any injunction, judgment, order, decree,
ruling, charge or other restriction, or any Law (as defined below) applicable to any member of the Company Group, (ii) violate
any provisions of any of the charter documents of any member of the Company Group, (iii) violate or constitute a default (or
any event which, with or without due notice or lapse of time, or both, would constitute a violation or default) under, result in
the termination of, accelerate the performance required by any of the terms, conditions or provisions of any Material Contract
(as defined in Section 2(n) below) of any member of the Company Group, or by which any member of the Company Group, or
any of its respective operating assets, is bound or (iv) result in the creation of any lien, charge or other encumbrance on
the assets or properties of any member of the Company Group. “Law” means any applicable federal, national, regional,
state, municipal or local law, statute, treaty, rule, regulation, ordinance, order, code, judgment, decree, directive, injunction,
writ or similar action or decision.

 

    	 	5	 

     

    

 

(h)            The
financial statements included in the Memorandum, together with the related schedules and notes, present fairly, in all material
respects, the financial position of the Company and its Subsidiaries, at the dates indicated and its results of operations, stockholders’
equity and cash flows for the periods specified; said financial statements have been prepared in conformity with U.S. generally
accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved (except
for any preparation of non-GAAP measures). The supporting schedules, if any, present fairly, in all material respects, in accordance
with GAAP the information required to be stated therein. Except as set forth in such financial statements or otherwise disclosed
in the Memorandum or in the Company’s reports, schedules, forms, statements and other documents 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, being collectively referred
to herein as the “SEC Reports”), neither the Company nor any Subsidiary has any known material liabilities of
any kind, whether accrued, absolute or contingent, or otherwise.

 

(i)            Since
the date of the Company’s most recent financial statements contained in the Memorandum, there has been no Company Group Material
Adverse Effect.

 

(j)            As
of the date of the First Closing, the Company will have the authorized and outstanding capital stock (as of the date of the Memorandum)
as set forth under the heading “DESCRIPTION OF THE SHARES AND CAPITAL STOCK” in the Memorandum. All outstanding shares
of capital stock of the Company are duly authorized, validly issued and outstanding, fully paid and non-assessable. Except as described
in the Memorandum or in the SEC Reports, as of the date of the First Closing: (i) there will be no outstanding options, stock
subscription agreements, warrants or other rights permitting or requiring the Company or others to purchase or acquire any shares
of capital stock or other equity securities of the Company or to pay any dividend or make any other distribution in respect thereof;
(ii) there will be no securities issued or outstanding which are convertible into or exchangeable for any of the foregoing
and there are no contracts, commitments or understandings, whether or not in writing, to issue or grant any such option, warrant,
right or convertible or exchangeable security; (iii) no shares of stock or other securities of the Company are reserved for
issuance for any purpose; (iv) there will be no voting trusts or other contracts, commitments, understandings, arrangements
or restrictions of any kind with respect to the ownership, voting or transfer of shares of stock or other securities of Company,
including, without limitation, any preemptive rights, rights of first refusal, proxies or similar rights, and (v) no person
holds a right to require Company to register any securities of Company under the Act or to participate in any such registration.

 

    	 	6	 

     

    

 

(k)            The
Certificate of Designation on the Series A Preferred Stock, the proposed form of which is attached to the Memorandum as Exhibit C
(the “Certificate of Designation”), has been duly authorized by the Company and will have been duly executed
and delivered by the Company and duly filed with the Secretary of State of the State of Delaware before the First Closing. The
holders of the Series A Preferred Stock will have the rights set forth in the Certificate of Designation upon filing of the
Certificate of Designation with the Secretary of State of the State of Delaware.

 

(l)            The
conduct of business by members of the Company Group as presently and proposed to be conducted is not subject to continuing oversight,
supervision, regulation or examination by any governmental official or body of the United States, or any other jurisdiction wherein
any such members currently conduct such business, except as described in the Memorandum. Neither the Company, nor any other member
of the Company Group has received any notice of any violation of, or noncompliance with, any Law applicable to its business, the
violation of, or noncompliance with, which would have or would reasonably be expected to have a Company Group Material Adverse
Effect, and the Company knows of no facts or set of circumstances which could give rise to such a notice.

 

(m)            Each
member of the Company Group has all franchises, permits, authorizations, licenses, and any similar authority necessary for the
conduct of its business as described in the Memorandum, except as would not, individually or in the aggregate, reasonably be expected
to have a Company Group Material Adverse Effect. Except as disclosed in the Memorandum or the SEC Reports, no member of the Company
Group has received written notice of (i) any pending proceedings which could reasonably be expected to result in the revocation,
cancellation, suspension of any adverse modification of any such franchises, permits, authorizations, licenses or other similar
authority or (ii) any default under any of such franchises, permits, licenses, authorizations or other similar authority,
except as would not, individually or in the aggregate, reasonably be expected to have an Company Group Material Adverse Effect.

 

(n)            Except
as disclosed in the Memorandum or in the SEC Reports, no breach or default by any member of the Company Group or, to the Company’s
Knowledge, any other party, exists in the due performance under any of the terms of any note, bond, indenture,
mortgage, deed of trust, lease, rental agreement, material contract, material purchase or sales order or other material agreement
or instrument to which any member of the Company Group is a party or by which it or its property is bound or affected (each of
the foregoing, a “Material Contract”), and there exists no condition, event or act which constitutes, nor which
after notice, the lapse of time or both, could constitute a default under any of the foregoing, except as would not, individually
or in the aggregate, has had or is reasonably be expected to have an Company Group Material Adverse Effect.
The Material Contracts disclosed in the Memorandum are accurately described in the Memorandum and are in full force and
effect in accordance with their respective terms, subject to any applicable bankruptcy, insolvency or other laws affecting the
rights of creditors generally and to general equitable principles and the availability of specific performance.

 

    	 	7	 

     

    

 

(o)            The
members of the Company Group collectively, solely and exclusively own all right, title and interest in, or possesses enforceable
rights to use, all patents, patent applications, trademarks, service marks, copyrights, rights, licenses, franchises, trade secrets,
confidential information, processes and formulations necessary for the conduct of its business as now conducted (collectively,
the “Intangibles”), except where the failure to own or possess such rights would
not, individually or in the aggregate, would reasonably be expected to have a Company Group
Material Adverse Effect. To the Company’s Knowledge, no member of the Company Group has infringed upon the rights
of others with respect to the Intangibles and, except as disclosed in the Memorandum, no member of the Company Group has received
any notice that such member has or may have infringed or is infringing upon the rights of others with respect to the Intangibles,
nor has such member received any written notice of conflict with the asserted rights of others with respect to the Intangibles.
To the Company’s Knowledge, all such Intangibles are enforceable and no others have infringed upon the rights of any members
of the Company Group with respect to the Intangibles. None of the Company Group’s Intangibles have expired or terminated,
or are expected to expire or terminate, within three years from the date of this Agreement. All current
and former officers, employees, consultants and independent contractors of each member of the Company Group having access to proprietary
information of a member of the Company Group, its customers or business partners and inventions owned by any member of the Company
Group have executed and delivered to the applicable member of the Company Group an agreement regarding the protection of such proprietary
information. The Company Group has secured, by valid written assignments from all of Company Group’s current and former consultants,
independent contractors and employees who were involved in, or who contributed to, the creation or development of any Intangibles,
unencumbered and unrestricted exclusive ownership of each such third party’s Intangibles in their respective contributions,
except where the failure to do so would not individually or in the aggregate, reasonably be expected to have a Company Group Material
Adverse Effect. No current or former employee, officer, director, consultant or independent contractor
of any member of the Company Group has any right, license, claim or interest whatsoever in or with respect to any Intangibles.

 

(p)            Except
as set forth in the Memorandum or the SEC Reports, no member of the Company Group is a party to any collective bargaining agreement
nor does it employ any member of a union. No executive officer of any member of the Company Group has provided written notice that
such officer intends to leave the Company Group or otherwise terminate such officer's employment with the Company Group. No executive
officer of any member of the Company Group, to the Company’s Knowledge, is in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or
agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company
Group to any material liability with respect to any of the foregoing matters. Each member of the Company Group is in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Company Group Material Adverse Effect. No labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the Company’s Knowledge, is threatened, and the Company has no knowledge
of any existing or imminent labor dispute by the employees of any of its principal suppliers, manufacturers, customers or contractors.

 

    	 	8	 

     

    

 

(q)            Except
(i) as set forth in the Memorandum, (ii) may be required
under state securities or Blue Sky laws, (iii) as may be required under the Securities Act, the rules and regulations
of the Commission under the Securities Act (the “Securities Act Regulations”), Securities and Exchange
Act of 1934, as amended (the “Exchange Act”), the rules and regulations of
the SEC under the Exchange Act (the “Exchange Act Regulations”), the rules of Nasdaq (the “Exchange”)
or (iv) will have been obtained or made on or prior to the First Closing, no consent, approval, order or authorization of,
or registration, qualification, designation, declaration or filing with any court or governmental authority or other Person on
the part of any member of the Company Group is required in connection with the issuance or sale of the Shares or the consummation
of the transactions contemplated herein or in the other Transaction Documents.

 

(r)            Subsequent
to the respective dates as of which information is given in the Memorandum, each of the members of the Company Group has operated
their respective businesses in the ordinary course and, except as may otherwise be set forth in the Memorandum or in the SEC Reports,
there has been no: (i) Company Group Material Adverse Effect; (ii) transaction otherwise than in the ordinary course
of business consistent with past practice; (iii) issuance of any securities (debt or equity) or any rights to acquire any
such securities other than pursuant to equity incentive plans approved by its board of directors; (iv) damage, loss or destruction,
whether or not covered by insurance, with respect to any asset or property of any members of the Company Group or (v) agreement
to permit any of the foregoing.

 

(s)            Except
as set forth in the Memorandum or the SEC Reports, there are no actions, suits, claims, hearings or proceedings pending before
any court or governmental authority or, to the Company’s Knowledge, threatened, against any members of the Company Group,
or involving its assets or any of its officers or directors (in their capacity as such) which, if determined adversely to such
member of the Company Group or such officer or director, could reasonably be expected to have a Company Group Material Adverse
Effect. No member of the Company Group is a party or subject to the provisions of any material order, writ, injunction, judgment
or decree of any governmental authority that has not been satisfied in full or otherwise discharged.

 

(t)            No
member of the Company Group is: (i) in violation of its charter documents, (ii) in violation of any statute, rule or
regulation applicable to such member, the violation of which would have or would reasonably be expected to have a Company Group
Material Adverse Effect; or (iii) in violation of any judgment, decree or order of any court or governmental body having jurisdiction
over such member of the Company Group, which violation or violations individually, or in the aggregate, could reasonably be expected
to have a Company Group Material Adverse Effect.

 

(u)            Except
as disclosed in the Memorandum, none of the shareholders of the Company, or any director, officer or manager of the Company or
any Subsidiary (i) owns, directly or indirectly, any interest in any Person which is a competitor, supplier or customer of
any member of the Company Group (unless such person is a publicly traded company), (ii) owns, directly or indirectly, in whole
or in part, any property, asset or right, real, personal or mixed, tangible or intangible (including any of the Intangibles) which
is utilized by or in connection with the business of any member of the Company Group, (iii) is a customer of, or supplier
to, any member of the Company Group or (iv) directly or indirectly has an interest in or is a party to any Material Contract
pertaining or relating to any member of the Company Group. In addition, no shareholder of the Company, director, officer or employee
of the Company or any Shareholder, nor, to the Company’s Knowledge, any affiliate of any such person is presently, directly
or indirectly through his/her affiliation with any other person or entity, a party to any loan from any member of the Company Group.

 

    	 	9	 

     

    

 

(v)            Each
of the Company and the Subsidiaries has filed, on a timely basis, each federal, state, local and foreign tax return, report and
declarations that were required to be filed, or has requested an extension therefor and has paid all taxes and all related assessments,
charges, penalties and interest to the extent that the same have become due. 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 know of no basis for any such claim. Neither
the Company nor any Subsidiary has executed any waiver with respect to the statute of limitations relating to the assessment or
collection of any foreign, federal, state or local tax. To the Company’s Knowledge, none of the Company Group’s tax
returns is presently being audited by any taxing authority. No liens have been filed and no claims are being asserted by or against
any member of the Company Group with respect to any taxes (other than liens for taxes not yet due and payable). The Company has
received no notice of assessment or proposed assessment of any taxes claimed to be owed by it or any other Person on its behalf.
Neither the Company nor any Subsidiary is a party to any tax sharing or tax indemnity agreement or any other agreement of a similar
nature that remains in effect. The Company and the Subsidiaries have complied in all material respects with all applicable legal
requirements relating to the payment and withholding of taxes and, within the time and in the manner prescribed by law, has withheld
from wages, fees and other payments and paid over to the proper governmental or regulatory authorities all amounts required.

 

(w)            Except
as otherwise disclosed in the Memorandum or the SEC Reports, (i) each member of the Company Group has at all times conducted
and currently conducts its business in compliance, in all material respects, with all Environmental Laws (as defined below), including
having and complying with all environmental permits, licenses and other approvals and authorizations necessary for the operation
of its business as presently conducted, (ii) no member of the Company Group has received any communication from any arbitrator,
court, governmental body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the
Company, any of its Subsidiaries or any of their respective properties, assets or operations (each, a “Governmental Entity”)
or any other Person alleging that it may be or was in violation of, or liable under, any Environmental Law, and (iii) there
is no claim pending, or to the Company’s Knowledge, threatened, against the Company or any member of the Company Group arising
under any Environmental Law. For purposes hereof, “Environmental Law” means any applicable Federal, state, local
or foreign laws, relating to (a) the protection, preservation or restoration of the environment (including, air, water vapor,
surface water, groundwater, drinking water supply, surface land, subsurface land, plant and animal life or any other natural resource)
or (b) the exposure to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling,
production, release or disposal of, Hazardous Substances, in each case as amended and as in effect on the date hereof. “Hazardous
Substance” means any substance listed, defined, designated or classified as hazardous, toxic, radioactive, or dangerous,
or otherwise regulated, under any Environmental Law. Hazardous Substance includes any substance for which exposure is regulated
by any Governmental Entity or any Environmental Law including, but not limited to, any toxic waste, pollutant, contaminant, hazardous
substance, toxic substance, hazardous waste, special waste, petroleum or any derivative or by-product thereof, radon, radioactive
material, asbestos, or asbestos containing material, urea formaldehyde foam insulation, lead or polychlorinated biphenyls.

 

    	 	10	 

     

    

 

(x)            Except
as disclosed in the Memorandum or the SEC Reports, neither the Company nor any Subsidiary owns any real property. Each of the Company
and the Subsidiaries has good and marketable title to all personal property and assets reflected as owned by it in the financial
statements referred to in Section 2(h)  above and which are material to the business of the Company or such Subsidiary,
in each case free and clear of any security interests, mortgages, liens, encumbrances, claims and other defects, except such as
do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed
to be made of such property. The real property, improvements, equipment and personal property held under lease by each of the Company
and the Subsidiaries are held under valid and enforceable leases, with such exceptions as are not material, and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment or personal property. With respect
to the property and assets leased, each member of the Company Group is in compliance with such leases.

 

(y)            Each
member of the Company Group and any “employee benefit plan” (as defined under the Employee Retirement Income Security
Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company, the Subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance
in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a Subsidiary, any
member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986,
as amended, and the regulations and published interpretations thereunder (the “Code”) of which the Company or
such Subsidiary is a member. Each “employee benefit plan” established or maintained by the Company, its Subsidiaries
or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and
nothing has occurred, whether by action or failure to act, which would cause the loss of such qualification.

 

(z)            Neither
the Company, any Subsidiary, nor, to the Company’s Knowledge, any director, officer, agent, employee or other Person acting
on behalf of any of such entities has, in the course of its actions for, or on behalf of, the Company or any Subsidiary has taken
any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making
use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise
to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of
anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or
official thereof or any candidate for foreign political office, in contravention of the FCPA and the Company, its Subsidiaries
and, to the Company’s Knowledge, its and their respective affiliates have conducted their businesses in compliance with the
FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.

 

    	 	11	 

     

    

 

(aa)     The
operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering
Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company or any of its Subsidiaries
with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(bb)     Neither
the Company, any of its Subsidiaries nor, to the Company’s Knowledge, its or their respective directors, officers, agents,
employees or affiliates are currently the subject of sanctions administered or enforced by the United States Government, including,
without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the
United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority applicable
to the Company and its Subsidiaries (collectively, “Sanctions”), nor is the Company or any of its Subsidiaries
located, organized or resident in a country or territory that is the subject of Sanctions; and the Company does not intend to,
directly or indirectly, use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds
to any subsidiaries, joint venture partners or other Person, to fund any activities of or business with any Person, or in any country
or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation
by any Person (including any Person participating in the transaction, whether as underwriter, advisor, purchaser or otherwise)
of Sanctions.

 

(cc)     Except
as disclosed to the Placement Agent in writing, no member of the Company Group is obligated to pay, and has not obligated the Placement
Agent to pay, a finder’s or origination fee in connection with the Offering (other than to the Placement Agent), and the
Company hereby agrees to indemnify the Placement Agent from any such claim made by any other person, as more fully set forth in
Section 8 hereof. Except as disclosed to the Placement Agent, the Company has not offered for sale or solicited offers to
purchase the Shares except for negotiations with the Placement Agent.

 

(dd)     Except
as described in the Memorandum or the SEC Reports, the Company maintains an effective system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange
Act and that has been designed to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated
to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

 

    	 	12	 

     

    

 

(ee)     Except
as described in the Memorandum or the SEC Reports, the Company maintains effective internal control over financial reporting (as
defined under Rule 13a-15 and 15d-15 of the Exchange Act Regulations) and a system of internal accounting controls sufficient
to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific
authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s
general or specific authorization and (D) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences Except as described in the Memorandum or the SEC Reports,
since the end of the Company’s most recent audited fiscal year, there has been (1) no material weakness in the Company’s
internal control over financial reporting (whether or not remediated) and (2) no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting.

 

(ff)     Each
of the Company and the Subsidiaries is insured by recognized, financially sound and reputable institutions with policies in such
amounts and with such deductibles and covering such risks as are prudent and customary in the business in which it is engaged,
including directors and officers liability.

 

(gg)     The
Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and is listed
on the Exchange; the Company has taken no action designed to, or likely to have the effect of, terminating the registration of
the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange; except as set forth in the Memorandum
or the SEC Reports, the Company has not received any notice that it is out of compliance with the listing or maintenance requirements
of the Exchange and the Company is, and will continue to be, in material compliance with all such listing and maintenance requirements;
and the Company has not received any notification that the SEC or the Exchange is contemplating terminating the registration of
the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange.

 

(hh)     The
Company, as well as all Company Related Persons (as defined below) are not subject to any of the disqualifications set forth in
Rule 506(d) of Regulation D (each a “Disqualification Event”). The Company has
exercised reasonable care to determine whether any Company Related Person is subject to a Disqualification Event. The
Memorandum contains a true and complete description of the matters required to be disclosed with respect to the Company and the
Company Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent applicable.
As used herein, “Company Related Persons” means any predecessor of the Company, any affiliated Company, any
director, executive officer, other officer of the Company participating in the Offering, any general partner or managing member
of the Company, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on
the basis of voting power, and any “promoter” (as defined in Rule 405 under the Act) connected with the Company
in any capacity. The Company agrees to promptly notify the Placement Agent in writing of (i) any Disqualification Event relating
to any Company Related Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Company Related Person.

 

    	 	13	 

     

    

 

(ii)            No
representation or warranty by the Company contained in Section 2 of this Agreement and no statement by the Company contained
in the Schedule of Exceptions to this Agreement contains any untrue statement of a material fact, or omits to state a material
fact necessary to make the statements contained therein, in the light of the circumstances in which they are made, not misleading.

 

(jj)     Until
the earlier of (i) the Termination Date and (ii) the Final Closing, the Company will not issue any press release, grant
any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering without the Placement
Agent’s prior consent, which consent will not unreasonably be withheld, delayed or conditioned.

 

2A.         Representations,
Warranties and Covenants of Placement Agent. The Placement Agent represents and warrants to Company that the following representations
and warranties are true and correct as of the date of this Agreement:

 

(a)            Aegis
is a corporation duly organized, validly existing and in good standing under the laws of the State of New York and has all requisite
corporate power and authority to enter into this Agreement and to carry out and perform its obligations under the terms of this
Agreement.

 

(b)            This
Agreement has been duly authorized, executed and delivered by the Placement Agent, and upon due execution and delivery by the Company,
this Agreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with its terms,
except as may be limited by principles of public policy and, as to enforceability, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect and subject
to general equity principles.

 

(c)            The
Placement Agent is a member in good standing of FINRA and is registered as a broker-dealer under the Exchange Act, and under the
securities acts of each state into which it is making offers or sales of the Shares. The Placement Agent is in compliance with
all applicable rules and regulations of the SEC and FINRA, except to the extent that such noncompliance would not have a
material adverse effect on the transactions contemplated hereby. None of the Placement Agent or its affiliates, or any person
acting on behalf of the foregoing (other than Company or its affiliates or any person acting on its or their behalf, in respect
of which no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements
of, or that would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to
Rule 506 of Regulation D or Section 4(a)(2) of the Act, or knows of any reason why any such exemption would be
otherwise unavailable to it.

 

    	 	14	 

     

    

 

(d)            None
of the execution and delivery of or performance by the Placement Agent under this Agreement or any other agreement or document
entered into by the Placement Agent in connection herewith or the consummation of the transactions herein or therein contemplated
conflicts with or violates, any agreement or other instrument to which the Placement Agent is a party or by which its assets may
be bound, or any term of its certificate of incorporation or by-laws, or any license, permit, judgment, decree, order, statute,
rule or regulation applicable to Placement Agent or any of its assets, except in each case as would not have a material adverse
effect on the transactions contemplated hereby.

 

(e)            Neither
Placement Agent nor any Placement Agent Related Persons (as defined below) are subject to any Disqualification Event. Placement
Agent has exercised reasonable care to determine whether any Placement Agent Related Person is subject to a Disqualification Event.
The Memorandum contains a true and complete description of the matters required to be disclosed with respect to Placement Agent
and Placement Agent Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent
applicable. As used herein, “Placement Agent Related Persons” means any director, general partner, managing
member, executive officer, or other officer of Placement Agent participating in the Offering. Placement Agent agrees to promptly
notify the Company in writing of (i) any Disqualification Event relating to any Placement Agent Related Person and (ii) any
event that would, with the passage of time, become a Disqualification Event relating to any Placement Agent Related Person.

 

3.            Placement
Agent Compensation.

 

(a)            In
connection with the Offering, the Company will pay at each Closing (as defined in Section 4(e) below) a cash fee (the
 “Agent Cash Fee”) to the Placement Agent equal to 10% of the gross proceeds from the sale of the Shares consummated
at such Closing, provided, however, that the Agent Cash Fee shall be ultimately reduced to 5% with respect
to sales of Shares that are initiated through the efforts of finders introduced by the Company located outside of the United States
(“Foreign Finders” and sales facilitated through such efforts, hereinafter, “Foreign Finder Related
Sales”). In that regard, the Company will notify the Placement Agent of any Foreign Finders that wish to participate
in the Offering and shall use its best efforts to have such Foreign Finders execute Referral Agreements with the Placement Agent
governing, among other things, compensation matters, with Foreign Finder Related Sales being deposited in the Escrow Account (as
defined below). To the extent that any potential Foreign Finder does not execute a Referral Agreement with the Placement Agent,
alternative arrangements with respect to participation in the Offering in compliance with all applicable laws will be discussed
by the parties hereto, but in all events, except as otherwise agreed to by the Placement Agent, the Placement Agent shall be entitled
to an Agent Cash Fee of not less than 5% on Foreign Finder Related Sales.

 

(b)            As
additional compensation, at or within ten (10) business days following the Final Closing, the Company will issue to the Placement
Agent (or its designee(s)) for nominal consideration, a five-year warrants (the “Agent Warrants”) to purchase
such number of shares of the Company’s common stock as is equal to 14.5% of the shares of common stock initially issuable
upon conversion of the Shares sold in this Offering (inclusive of Foreign Finder Related Sales) at an exercise price equal to the
Conversion Price of the Shares (the Agent Cash Fee and Agent Warrants are sometimes referred to herein collectively as “Agent
Compensation”). The Agent Warrants will be exercisable on a “cashless” basis and for the five year period
following issuance. The Agent Warrants will be in such authorized denominations and will be registered in such names as the Placement
Agent shall request in an instruction letter (the “Agent Warrant Instruction Letter”) to be delivered to the
Company promptly following the Final Closing and the Company shall deliver such Agent Warrants to the Placement Agent within ten
(10) business days following the delivery of the Agent Warrant Instruction Letter.

 

    	 	15	 

     

    

 

(c)            At
each Closing, the Company will pay Aegis a non-accountable expense allowance equal to 3% of the aggregate purchase price of the
Shares sold at such Closing (inclusive of Foreign Finder Related Sales) (the “Agent Expense Allowance”). The
Agent Expense Allowance payable at the First Closing shall be reduced by the $25,000 advance paid to Aegis previously. The Placement
Agent will not bear any of Company’s legal, accounting, printing or other expenses in connection with any transaction contemplated
hereby. Aegis will pay for its own expenses, including all of its legal fees and expenses, from the Agent Expense Allowance.

 

(d)            The
Company shall also pay and issue to the Placement Agent the Agent Compensation calculated according to the percentages set forth
in Sections 3(a) and (b) of this Agreement, if any person or entity contacted by the Placement Agent and provided with
a Memorandum during the Offering Period and with whom the Placement Agent has discussions regarding a potential investment in the
Offering, invests in the Company (other than through open or public market purchases or securities purchased in any underwritten
public offering) and irrespective of whether such potential investor purchased Shares in the Offering (the “Tail Investors”)
at any time prior to the earlier of the date that is twelve (12) months after the Termination Date or the Final Closing (“Tail
Period”), whichever is applicable. The names of Tail Investors shall be provided in writing by the Placement Agent to
the Company upon written request following the Termination Date or the Final Closing, as the case may be (the “Tail Investor
List”). The Company acknowledges and agrees that the Tail Investor List is proprietary to the Placement Agent, shall
be maintained in strict confidence by the Company and those persons/entities on such list shall not be contacted by the Company
without the Placement Agent’s prior written consent; provided, however, that such restrictions
shall not apply to ordinary course shareholder communications by the Company to its shareholders, including those Tail Investors
that are shareholders of the Company. In the event the Placement Agent exercises its right of first refusal with respect to an
offering pursuant to the provisions of Section 3(e) below, the specific compensation terms to the Placement Agent that
are negotiated in such offering shall govern and the provisions of this Section 3(d) will not be operative with respect
to such offering.

 

(e)            Effective
upon the First Closing, the Company hereby grants to Aegis, for a period of twelve (12) months following the Final Closing (the
 “ROFR Term”), the irrevocable preferential right of
first refusal to act as lead or co-placement agent for any proposed private placement of the Company’s securities (equity
or debt) that is proposed to be consummated to investors in the United States with the assistance of a registered broker dealer.
In that regard, it is understood that if the Company determines to pursue such a financing during the ROFR Term and wishes to engage
a placement agent to assist in connection with such offering, the Company shall promptly provide the Placement Agent with a written
notice of such intention and statement of terms (the “Notice”).
If, within ten (10) business days of the receipt of the Notice, the Placement Agent does not accept in writing such offer
to act as lead or co-placement agent with respect to such offering upon the terms proposed, then the Company shall be entitled
to engage a placement agent other than Aegis; provided that the terms of the compensation to be paid to such other placement agent
or underwriter are not materially less favorable to the Company than the terms included in the Notice. The Placement Agent’s
failure to exercise these preferential rights in any situation shall not affect its preferential rights to any subsequent offering
during the ROFR Term. The Company represents and warrants that no other person has any right to participate in any offer,
sale or distribution of the Company’s securities to which Aegis’ preferential rights shall apply.

 

    	 	16	 

     

    

 

(f)            Effective
upon the sale of at least $10,000,000 in the Offering, at the Placement Agent’s option, the Company agrees that it shall
take, and shall cause its board of directors (the “Board of Directors”) to take, all action within its powers
to nominate (i) one (1) representative designated by the Placement Agent (the “PA Director”) as a
member of the Board of Directors of the Company. In this regard, the Company shall give the PA Director copies of all notices,
minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to
such directors; provided, however, that the PA Director shall agree to hold in confidence and trust and to act in
a fiduciary manner with respect to all information so provided. In addition, as a Board of Directors designee, the PA Director
shall be entitled to receive reimbursement for all reasonable costs incurred in attending such meetings, including but not limited
to, meals, lodging and transportation. The PA Director shall be entitled to (i) the same indemnification protections afforded
to other directors of the Company, including the Company’s maintenance of an insurance policy providing liability insurance
for directors and officers of the Company, (ii) cash compensation commensurate to what is provided to other board members
of the Company and (iii) equity compensation in amounts to be determined based on the pool that is made available to non-employee
directors of the Company. Further, the Placement Agent agrees that it will not propose any individual as the PA Director whose
background does not comply with or would disqualify the Company from complying with (i) applicable securities laws, (ii) contractual
obligations to and rules of the Exchange and (iii) the criteria for directors set forth in the then current charter of
the Company’s Nominating Committee, and will not disqualify the Company from being able to conduct any public offering or
private placement pursuant to either Rule 506 (b) or (c) and any “bad boy“ provisions of any state securities
laws. This provision shall terminate three (3) years from the date the PA is initially nominated to the Board of Directors.

 

4.            Subscription
and Closing Procedures.

 

(a)            The
Company shall cause to be delivered to the Placement Agent copies of the Memorandum, consents to the use of such copies for the
purposes permitted by the Act and applicable securities laws and in accordance with the terms and conditions of this Agreement,
and hereby authorizes Placement Agent and its agents and employees to use the Memorandum in connection with the offering of the
Shares until the earlier of (i) the Termination Date or (ii) the Final Closing. No person or entity is or will be authorized
to give any information or make any representations other than those contained in the Memorandum or to use any offering materials
other than those contained in the Memorandum in connection with the sale of the Shares.

 

    	 	17	 

     

    

 

(b)            During
the Offering Period, the Company shall make available to the Placement Agent and its representatives such information as may be
reasonably requested in making a reasonable investigation of the Company Group and their respective affairs and shall provide access
to such employees during normal business hours as shall be reasonably requested by the Placement Agent.

 

(c)            Each
prospective purchaser will be required to complete and execute an original signature pages to the Subscription Agreement (the
 “Subscription Documents”), which will be forwarded or delivered to the Placement Agent at the Placement Agent’s
offices at the address set forth in Section 12 hereof, together with the subscriber’s wire transfer in the full amount
of the purchase price for the number of Shares desired to be purchased, subject to the Escrow Agent’s (as defined below)
right to accept a check in lieu of a wire transfer.

 

(d)            All
funds for subscriptions received by the Placement Agent from the Offering (not otherwise wired directly to the Escrow Agent) will
be promptly forwarded by the Placement Agent and deposited into a non-interest bearing escrow account (the “Escrow Account”)
established for such purpose with Signature Bank, New York, New York (the “Escrow Agent”). All such funds for
subscriptions will be held in the Escrow Account pursuant to the terms of an escrow agreement among the Company, the Placement
Agent and the Escrow Agent (the “Escrow Agreement”). The Company will pay all fees related to the establishment
and maintenance of the Escrow Account and comply with procedures required by the Escrow Agent. The Company will either accept or
reject, for any or no reason, the Subscription Documents in a timely fashion and at each Closing, the Company will countersign
the Subscription Documents and provide duplicate copies of such documents to the Placement Agent for distribution to the subscribers.
The Placement Agent, on the Company’s behalf, will promptly return to subscribers incomplete, improperly completed, improperly
executed and rejected subscriptions.

 

(e)            If
subscriptions for at least the Minimum Offering Amount have been accepted prior to the Termination Date, the funds therefor have
been collected by the Escrow Agent and all of the conditions set forth elsewhere in this Agreement are fulfilled, the First Closing
shall be held promptly with respect to Shares sold. Thereafter remaining Shares will continue to be offered and sold until the
Termination Date and additional closings (each a “Closing”) may from time to time be conducted at times mutually
agreed to by the Placement Agent and the Company with respect to additional Shares sold, with the final closing (“Final
Closing”) to occur within ten (10) days after the earlier of the Termination Date and the date on which the all
Shares has been fully subscribed for. Delivery of payment for the accepted subscriptions for Shares from funds held in the Escrow
Account will be made at each Closing against delivery of the Shares by the Company. The Shares will
be issued to the investors in the Offering in book entry format at each Closing.

 

(f)            If
Subscription Documents for at least the Minimum Offering Amount have not been received and accepted by the Company on or before
the Termination Date for any reason, the Offering will be terminated, no Shares will be sold, and pursuant to the terms of the
Escrow Agreement, the Escrow Agent will, at the Company’s and the Placement Agent’s written direction, cause all monies
received from subscribers for the Shares to be promptly returned to such subscribers without interest, penalty, expense or deduction
and the Placement Agent and Company will promptly cooperate to accomplish the foregoing, including providing Escrow Agent with
any requested written instructions in such regard.

 

    	 	18	 

     

    

 

5.            Further
Covenants. The Company hereby covenants and agrees that:

 

(a)            Except
upon prior written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take
any action which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct
in all material respects on and as of each Closing Date with the same force and effect as if such representations and warranties
had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

(b)            If,
at any time prior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect or otherwise which
as a result it becomes necessary to amend or supplement the Memorandum so that the representations and warranties herein remain
true and correct in all material respects, or in case it shall be necessary to amend or supplement the Memorandum to comply with
Regulation D or any other applicable securities laws or regulations, the Company will promptly notify the Placement Agent and shall,
at its sole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements in such quantities
as the Placement Agent may reasonably request for delivery by the Placement Agent to potential subscribers. The Company will not
at any time before the Final Closing prepare or use any amendment or supplement to the Memorandum of which the Placement Agent
will not previously have been advised and furnished with a copy, or which is not in compliance in all material respects with the
Act and other applicable securities laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent
and its counsel, and confirm the advice in writing, of any order preventing or suspending the use of the Memorandum, or the suspension
of any exemption for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened
institution of any proceedings for any of such purposes, and the Company will use its reasonable best efforts to prevent the issuance
of any such order and, if issued, to obtain as soon as reasonably possible the lifting thereof.

 

(c)            The
Company shall comply with the Act, the Exchange Act and the rules and regulations thereunder, all applicable state securities
laws and the rules and regulations thereunder in the states in which the Company’s blue sky counsel has advised the
Placement Agent that the Shares are qualified or registered for sale or exempt from such qualification or registration, so as to
permit the continuance of the sales of the Shares, and will file or cause to be filed with the SEC, and shall promptly thereafter
forward or cause to be forwarded to the Placement Agent, any and all reports on Form D as are required.

 

(d)            The
Company shall use its best efforts to qualify the Shares for sale under the securities laws of such jurisdictions in the United
States as may be mutually agreed to by the Company and the Placement Agent, and Company will make or cause to be made such applications
and furnish information as may be required for such purposes, provided that Company will not be required to qualify as a foreign
corporation in any jurisdiction or execute a general consent to service of process. The Company will, from time to time, prepare
and file such statements and reports as are or may be required to continue such qualifications in effect for so long a period as
the Placement Agent may reasonably request with respect to the Offering.

 

    	 	19	 

     

    

 

(e)            The
Company shall place a legend on the certificates representing the Shares and the Agent Warrants that the securities evidenced thereby
have not been registered under the Act or applicable state securities laws, setting forth or referring to the applicable restrictions
on transferability and sale of such securities under the Act and applicable state laws.

 

(f)            The
Company shall apply the net proceeds from the sale of the Shares for the purposes substantially as described in the Memorandum.
Except as set forth in the Memorandum, the Company shall not use any of the net proceeds of the Offering to repay indebtedness
to officers (other than accrued salaries incurred in the ordinary course of business), directors or shareholders of the Company
without the prior written consent of the Placement Agent.

 

(g)            During
the Offering Period, the Company shall afford each prospective purchaser of Shares the opportunity to ask questions of and receive
answers from an officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain such other
additional information necessary to verify the accuracy of the Memorandum to the extent the Company possesses such information
or can acquire it without unreasonable expense. In addition, to the extent that any purchaser of Shares has inquiries concerning
any of the business or operations of any member of the Company Group, the Company shall use reasonable best efforts to ensure that
officers of such members are made available to respond to such inquiries.

 

(h)            Except
upon obtaining the prior written consent of Aegis, which consent shall not be unreasonably withheld, the Company shall not, at
any time prior to the earlier of the Final Closing or the Termination Date, except as contemplated by the Memorandum (i) engage
in or commit to engage in any transaction outside the ordinary course of business, (ii) issue, agree to issue or set aside
for issuance any securities (debt or equity) or any rights to acquire any such securities; provided, that the Company
shall be permitted to issue stock options and/or restricted stock to officers, advisors, directors and employees of the Company
pursuant to its existing equity incentive plan as described in the SEC Reports, (ii) incur, outside of the ordinary course
of business, any material indebtedness, (iii) dispose of any material assets, (iv) make any acquisition (except to the
extent specifically referenced in the Memorandum) or (v) change its business or operations.

 

(i)            The
Company shall pay all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents
and instruments related to the Offering and the issuance of the Shares and the Agent Warrants and will also pay its own expenses
for accounting fees, legal fees and other costs involved with the Offering. All blue sky filings related to this Offering shall
be prepared by the Company’s counsel, at the Company’s expense, with copies of all filings to be promptly forwarded
to the Placement Agent. Further, as promptly as practicable after the Final Closing, the Company shall prepare, at its own expense,
velobound “closing binders” relating to the Offering and will distribute one such binder to each of the Placement Agent
and its counsel.

 

    	 	20	 

     

    

 

(j)            Until
the earlier of the Termination Date or the Final Closing, the Company will not, nor will any person or entity acting on Company’s
behalf, negotiate with any other placement agent or underwriter with respect to a private or public offering of such entity’s
debt or equity securities. Neither the Company nor anyone acting on the Company’s behalf will, until the earlier of the Termination
Date or the Final Closing, without the prior written consent of the Placement Agent, offer for sale to, or solicit offers to subscribe
for any securities of the Company from, or otherwise approach or negotiate in respect thereof with, any other person.

 

5A.     Placement
Agent Further Covenants. The Placement Agent shall not, at any time during the Offering Period, knowingly take any action which
would cause any of the representations and warranties made by it in this Agreement not to be complete and correct in all material
respects on and as of each Closing Date with the same force and effect as if such representations and warranties had been made
on and as of each such date (except to the extent any representation or warranty relates to an earlier date). Offers and sales
of the Shares by the Placement Agent will be made in accordance with this Agreement and in compliance with the provisions of Regulation
D, Regulation S, if applicable, and the Securities Act.

 

6.            Conditions
of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder to effect a Closing are subject to
the fulfillment, at or before each Closing, of the following additional conditions:

 

(a)            Each
of the representations and warranties made in this Agreement by the Company qualified as to materiality shall be true and correct
at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an
earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Company not qualified as to materiality shall be true and correct in all material respects at all times
prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier date,
in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

(b)            The
Company shall have performed and complied in all material respects with all agreements, covenants and conditions required to be
performed and complied with by the Company at or before the Closing.

 

(c)            The
Memorandum shall not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

    	 	21	 

     

    

 

(d)            The
Company shall have obtained all consents, waivers and approvals required to be obtained by such parties in connection with the
consummation of the transactions contemplated hereby.

 

(e)            No
order suspending the use of the Memorandum or enjoining the Offering or sale of the Shares shall have been issued, and no proceedings
for that purpose or a similar purpose shall have been initiated or pending, or, to Company’s knowledge, threatened.

 

(f)            The
Placement Agent shall have received a certificate of an officer of the Company, dated as of the date of such Closing, certifying,
as to the fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d) and (e) above.

 

(g)            Prior
to the First Closing, the Company shall have delivered to the Placement Agent: (i) a certified charter document and good standing
certificate for the Company and each Subsidiary, each dated as of a date within ten (10) days prior to the First Closing from
the secretary of state of its jurisdiction of incorporation or formation, as applicable, and (ii) resolutions of the Company’s
board of directors approving this Agreement and the transactions and agreements contemplated by this Agreement, certified by the
Chief Executive Officer of the Company.

 

(h)            At
each Closing, the Company shall pay and/or issue to the Placement Agent the Agent Cash Fee and Agent Expense Allowance earned in
such Closing.

 

(i)            At
each Closing, the Company shall deliver to the Placement Agent a signed opinion of ZAG/Sullivan & Worcester, counsel to
the Company, dated as of each such Closing Date, in the form reasonably acceptable to the Placement Agent.

 

(j)            Prior
to the First Closing, the Company shall receive stockholder approval and Nasdaq approval with respect to the reverse stock split
as contemplated in the Schedule 14A filed with the SEC on September 30, 2019 and such reverse split shall be effectuated by
all necessary corporate action. With respect to said reverse stock split, the Company shall consult with the Placement Agent on
the specific reverse stock split ratio prior to the time said reverse stock split is effectuated.

 

(k)            Prior
to the First Closing, the Company and its counsel shall provide reasonable assurance (including forwarding to the Placement Agent
all correspondence from and to Nasdaq) that based on the implementation of the reverse stock split, the Company anticipates that
it will regain compliance with the minimum bid requirement mandated for continued listing of its Common Stock on the Exchange.

 

(l)            Prior
to the First Closing, the Company shall provide evidence of the filing of the Certificate of Designation on the Series A Preferred
Stock with the State of Delaware.

 

(m)            All
proceedings taken at or prior to any Closing in connection with the authorization, issuance and sale of the Shares will be reasonably
satisfactory in form and substance to the Placement Agent and its counsel, and such counsel shall have been furnished with all
such documents and certificates as it may reasonably request upon reasonable prior notice in connection with the transactions contemplated
hereby.

 

    	 	22	 

     

    

 

(n)            At
each Closing, the Company shall provide irrevocable instructions to its transfer agent to issue into treasury shares, and reserve
for future and automatic issuance upon the requested conversion of the Shares by any holder, such number of shares of Common Stock
issuable upon the conversion of the Shares sold in such Closing.

 

7.            Conditions
of Company’s Obligations. The obligations of the Company hereunder to effect a Closing are subject to the fulfillment,
at or before such Closing, of the following additional conditions or subject to the waiver of such condition or conditions by the
Company:

 

(a)            Each
of the representations and warranties made in this Agreement by the Placement Agent qualified as to materiality shall be true and
correct at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates
to an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Placement Agent not qualified as to materiality shall be true and correct in all material respects at
all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier
date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

(b)            The
Placement Agent shall have performed and complied in all material respects with all agreements, covenants and conditions required
to be performed and complied with by it at or before the Closing.

 

(c)            The
Company shall have received a certificate of an officer of the Placement Agent, dated as of the Closing Date, certifying, as to
the fulfillment of the conditions set forth in subparagraphs (a) and (b) above.

 

(d)            No
order suspending the use of the Memorandum or enjoining the Offering or sale of the Shares shall have been issued, and no proceedings
for that purpose or a similar purpose shall have been initiated or pending, or, to the Company’s knowledge, be contemplated
or threatened.

 

    	 	23	 

     

    

 

8.            Indemnification.

 

(a)            The
Company will: (i) indemnify and hold harmless the Placement Agent, its officers, directors, partners, employees, agents (including
subagents and selected dealers) and each person, if any, who controls the Placement Agent within the meaning of the Section 15
of the Act or Section 20(a) of the Exchange Act (each an “Indemnitee”) against, and pay or reimburse
each Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations
in respect thereof), joint or several (which will, for all purposes of this Agreement, include, but not be limited to, all reasonable
costs of defense and investigation and all reasonable attorneys’ fees, including appeals), to which any Indemnitee may become
subject under the Act or otherwise, in connection with the offer and sale of the Shares, insofar as such losses, claims, damages,
liabilities or expenses arise out of or relate to a breach of any representation, warranty or covenant made by the Company herein,
regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim by any Indemnitee or by
any third party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred in connection with
investigating or defending against any such loss, claim, action, proceeding or investigation; provided, however,
that the Company will not be liable in any such case to the extent that any such claim, damage or liability is finally judicially
determined to have resulted primarily and directly from (A) an untrue statement or alleged untrue statement of a material
fact made in the Memorandum, or an omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, made
solely in reliance upon and in conformity with written information furnished to the Company by the Placement Agent specifically
for use in the Memorandum, (B) any violations by the Placement Agent of the Act, state securities laws or any rules or
regulations of FINRA, which does not result from a violation thereof by the Company or any of its affiliates, or (C) the Placement
Agent’s willful misconduct or gross negligence. In addition to the foregoing agreement to indemnify and reimburse, the Company
will indemnify and hold harmless each Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever
(or actions or proceedings or investigations in respect thereof), joint or several (which shall, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including
appeals) to which any Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or liabilities arise
out of or are based upon the claim of any person or entity that he or it is entitled to broker’s or finder’s fees from
any Indemnitee in connection with the Offering, other than fees due to the Placement Agent. The foregoing indemnity agreements
will be in addition to any liability the Company may otherwise have.

 

(b)            Aegis
will indemnify and hold harmless the Company and its officers, directors, and each person, if any, who controls such entity within
the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against, and pay or reimburse any such
person for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedings or investigations
in respect thereof) to which the Company or any such person may become subject under the Act or otherwise, whether such losses,
claims, damages, liabilities or expenses shall result from any claim of the Company or by any third party, but only to the extent
that such losses, claims, damages or liabilities are finally judicially determined to have resulted primarily from or as a result
of (i) any untrue statement or alleged untrue statement of any material fact contained in the Memorandum made in reliance
upon and in conformity with information contained in the Memorandum relating to the Placement Agent, or an omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, in either case, if made or omitted in reliance upon and in conformity
with written information furnished to the Company by the Placement Agent, specifically for use in the Memorandum or (ii) any
violations by the Placement Agent of the Act or state securities laws which does not result from a violation thereof by the Issuer,
the Operating Company or any of their respective affiliates, the Placement Agent’s willful misconduct or gross negligence.
The Placement Agent will reimburse the Company, the Company and any such person for any legal or other expenses reasonably incurred
in connection with investigating or defending against any such loss, claim, damage, liability or action, proceeding or investigation
to which such indemnity obligation applies. The foregoing indemnity agreements are in addition to any liability which the Placement
Agent may otherwise have. Notwithstanding the foregoing, in no event shall the Placement Agent’s indemnification obligation
hereunder exceed the aggregate amount of the Agent Cash Fees actually received by the Placement Agent hereunder.

 

    	 	24	 

     

    

 

(c)            Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding
or investigation (the “Action”), such indemnified party, if a claim in respect thereof is to be made against
the indemnifying party under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission
to so notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party under this
Section 8 unless the indemnifying party has been substantially prejudiced by such omission. The indemnifying party will be
entitled to participate in and, to the extent that it may wish, jointly with any other indemnifying party, to assume the defense
thereof subject to the provisions herein stated, with counsel reasonably satisfactory to such indemnified party. The indemnified
party will have the right to employ separate counsel in any such Action and to participate in the defense thereof, but the fees
and expenses of such counsel will not be at the expense of the indemnifying party if the indemnifying party has assumed the defense
of the Action with counsel reasonably satisfactory to the indemnified party, provided, however, that
if the indemnified party shall be requested by the indemnifying party to participate in the defense thereof or shall have concluded
in good faith and specifically notified the indemnifying party either that there may be specific defenses available to it that
are different from or additional to those available to the indemnifying party or that such Action involves or could have a material
adverse effect upon it with respect to matters beyond the scope of the indemnity agreements contained in this Agreement, then the
counsel representing it, to the extent made necessary by such defenses, shall have the right to direct such defenses of such Action
on its behalf and in such case the reasonable fees and expenses of such counsel in connection with any such participation or defenses
shall be paid by the indemnifying party. No settlement of any Action against an indemnified party will be made without the consent
of the indemnifying party and the indemnified party, which consent shall not be unreasonably withheld, delayed or conditioned in
light of all factors of importance to such party, and no indemnifying party shall be liable to indemnify any person for any settlement
of any such claim effected without such indemnifying party’s consent.

 

9.            Contribution.
To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to
Section 8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims
for indemnification may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any
indemnified or indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party
shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only
such relative benefits but also the relative fault of the Company on the one hand and the Placement Agent on the other in connection
with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand
and the Placement Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before
deducting expenses) received by the Company bear to the total Agent Cash Fees received by the Placement Agent. The relative fault,
in the case of an untrue statement, alleged untrue statement, omission or alleged omission will be determined by, among other things,
whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by the
Placement Agent, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement, alleged statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust
and inequitable if the respective obligations of the Company and the Placement Agent for contribution were determined by pro
rata allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method or allocation that
does not reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent misrepresentation
(within the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not guilty of
such fraudulent misrepresentation. For purposes of this Section 9, each person, if any, who controls the Placement Agent within
the meaning of the Act will have the same rights to contribution as the Placement Agent, and each person, if any, who controls
the Company within the meaning of the Act will have the same rights to contribution as the Company, subject in each case to the
provisions of this Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be liable for
contribution with respect to the settlement of any claim or action effected without its written consent. This Section 9 is
intended to supersede, to the extent permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available.

 

    	 	25	 

     

    

 

10.          Termination.

 

(a)            The
Offering may be terminated by the Placement Agent at any time prior to the expiration of the Offering Period in the event that:
(i) any of the representations, warranties or covenants of the Company contained herein or in the Memorandum shall prove to
have been false or misleading in any material respect when actually made; (ii) the Company shall have failed to perform any
of its material obligations hereunder or under any other Transaction Documents; (iii) there shall occur any event that could
reasonably be expected to result in a Company Material Adverse Effect or (iv) the Placement Agent determines that it is reasonably
likely that any of the conditions to Closing set forth herein will not, or cannot, be satisfied. In the event of any such termination
by the Placement Agent pursuant to the above, the Placement Agent shall be entitled to retain any Agent Compensation already earned
(if any, at such point in time) and receive from the Company, within five (5) business days of the Termination Date, in addition
to other rights and remedies it may have hereunder, at law or otherwise, an amount equal the sum of upon presentation of a written
accounting in reasonable detail, reimbursement of Placement Agent’s reasonable and actual out-of-pocket expenses related
to the Offering in excess of the foregoing retainer, including but not limited to fees and expenses of its legal counsel (not to
exceed $75,000), travel expenses and due diligence related expenditures (collectively, the “PA Expense Reimbursement”)
and the provisions of Sections 3(d) and 3(e) shall survive in full force and effect.

 

(b)            This
Offering may be terminated by the Company at any time prior to the expiration of the Offering Period on account of the Placement
Agent’s fraud, willful misconduct or gross negligence. In the event of any such termination pursuant to this Section 10(b),
the Placement Agent shall not be entitled to any further compensation pursuant to these termination provisions.

 

(c)            In
the event the Company unilaterally decides for any reason (other than pursuant to Section 10(b) above or Section 10(d) below)
to terminate the Offering at any time prior to the earlier of the First Closing or the Termination Date (the “Unilateral
Termination”), the Placement Agent shall be entitled to receive from the Company within five (5) business days of
such termination the sum of $250,000 plus the PA Expense Reimbursement. In addition, if within twelve (12) months after the Unilateral
Termination, the Company conducts a public or private offering of its securities, then upon the closing of any such transaction,
the Company shall pay the Placement Agent in cash, within five (5) business days of the closing of any such transaction an
amount equal to 2% of the gross proceeds from such private or public offering, provided that such percentage shall be the applicable
percentages set forth in section 3(d) hereto with respect to any gross proceeds from Tail Investors.

 

(d)            This
Offering may be terminated upon mutual agreement of the Company and the Placement Agent, at any time prior to the expiration of
the Offering Period. In addition, upon the expiration of the Offering Period, the Offering shall terminate without any further
action of the parties hereto. If the Offering is terminated pursuant to this Section 10(d), then in cases in which no Closing
had been theretofore consummated, the Company’s sole obligation to the Placement Agent shall be the PA Expense Reimbursement
which shall be paid within five (5) business days of such termination.

 

(e)            Before
any termination by the Placement Agent under Section 10(a) or by the Company under Section 10(b) shall become
effective, the terminating party shall give written notice to the other party of its intention to terminate the Offering, which
shall set forth the specific grounds for the proposed termination (the “Termination Notice”). If the specified
grounds for termination, or their resulting adverse effect on the transactions contemplated hereby, are curable, then the other
party shall have ten (10) days from the Termination Notice within which to remove such grounds or to eliminate all of their
material adverse effects on the transactions contemplated hereby; otherwise, the Offering shall terminate.

 

(f)            Upon
any termination pursuant to this Section 10, the parties to this Agreement will promptly instruct Escrow Agent to cause all
monies received with respect to the subscriptions for Shares not closed upon to be promptly returned to such subscribers without
interest, penalty or deduction.

 

    	 	26	 

     

    

 

11.          Survival.

 

(a)            The
obligations of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided
herein shall survive any termination hereunder. In addition, the provisions of 8 through 16 shall survive the sale of the Shares
or any termination of the Offering hereunder and the provisions of Sections 3(d) and 3(e) shall survive the sale of the
Shares or any termination of the Offering (other than a termination under Section 10(b).

 

(b)            The
respective indemnities, covenants, representations, warranties and other statements of Company and the Placement Agent set forth
in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of, and regardless of any access to information by, the Company, the Company or the Placement Agent, or any of their officers or
directors or any controlling person thereof, and will survive the sale of the Shares or any termination of the Offering hereunder
for a period of two (2) years from the earlier to occur of the Final Closing or the termination of the Offering.

 

12.          Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made as of the date delivered personally, or the date mailed if mailed by registered or certified mail (postage prepaid, return
receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like
changes of address which shall be effective upon receipt) or sent by facsimile transmission, with confirmation received. If sent
to the Placement Agent, such notice will be mailed, delivered or telefaxed and confirmed to Aegis Capital Corp., 810 Seventh Ave,
11th Floor, New York, New York 10019, Attention: Adam K. Stern, telefax number (646) 390-9122 , with a copy (which shall not constitute
notice) to: Littman Krooks LLP, 655 Third Avenue, 20th Floor, New York, NY 10017 Attention: Steven Uslaner, Esq.,
telefax number (212) 490-2990, if sent to Company, such notice will be mailed, delivered or telefaxed and confirmed to DarioHealth
Corp. 8 HaTokhen Street, Caesarea Industrial Park, Israel 3088900, Attn: Erez Raphael, CEO, with a copy (which shall not constitute
notice) to: Zysman, Aharoni, Gayer and Sullivan & Worcester LLP, 1633 Broadway, 32nd Floor, New York, NY 10019 Attention:
Oded Har-Even, Esq, telefax number (212) 660-3001.

 

13.          Governing
Law, Jurisdiction. This Agreement shall be deemed to have been made and delivered in New York City and shall be governed as
to validity, interpretation, construction, affect and in all other respects by the internal laws of the State of New York. THE
PARTIES AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY RELATING TO OR ARISING OUT OF THIS AGREEMENT,
THE TERMINATION OR VALIDITY HEREOF, ANY ALLEGED BREACH OF THIS AGREEMENT OR THE ENGAGEMENT CONTEMPLATED HEREBY (ANY OF THE FOREGOING,
A “CLAIM”) SHALL BE SUBMITTED TO THE JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC. (“JAMS”), OR
ITS SUCCESSOR, IN NEW YORK, FOR FINAL AND BINDING ARBITRATION IN FRONT OF A PANEL OF THREE ARBITRATORS WITH JAMS IN NEW YORK,
NEW YORK UNDER THE JAMS COMPREHENSIVE ARBITRATION RULES AND PROCEDURES (WITH EACH OF THE PLACEMENT AGENT AND THE COMPANY CHOOSING
ONE ARBITRATOR, AND THE CHOSEN ARBITRATORS CHOOSING THE THIRD ARBITRATOR).  THE ARBITRATORS SHALL, IN THEIR AWARD, ALLOCATE
ALL OF THE COSTS OF THE ARBITRATION, INCLUDING THE FEES OF THE ARBITRATORS AND THE REASONABLE ATTORNEYS’ FEES OF THE
PREVAILING PARTY, AGAINST THE PARTY WHO DID NOT PREVAIL.  THE AWARD IN THE ARBITRATION SHALL BE FINAL AND BINDING.  THE
ARBITRATION SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT, 9 U.S.C. SEC. 1-16, AND THE JUDGMENT UPON THE AWARD RENDERED BY THE
ARBITRATORS MAY BE ENTERED BY ANY COURT HAVING JURISDICTION THEREOF.  THE COMPANY AND THE PLACEMENT AGENT AGREE AND CONSENT
TO PERSONAL JURISDICTION, SERVICE OF PROCESS AND VENUE IN ANY FEDERAL OR STATE COURT WITHIN THE STATE AND COUNTY OF NEW YORK IN
CONNECTION WITH ANY ACTION BROUGHT TO ENFORCE AN AWARD IN ARBITRATION.

 

    	 	27	 

     

    

 

14.          Miscellaneous.
No provision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.
Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations
hereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;
provided, however, that any such waiver shall be in writing specifically setting forth those provisions
waived thereby. No such waiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this
Agreement. Neither party may assign its rights or obligations under this Agreement to any other person or entity without the prior
written consent of the other party.

 

15.          Entire
Agreement; Severability. This Agreement together with any other agreement referred to herein supersedes all prior understandings
and written or oral agreements between the parties with respect to the Offering and the subject matter hereof. If any portion of
this Agreement shall be held invalid or unenforceable, then so far as is reasonable and possible (i) the remainder of this
Agreement shall be considered valid and enforceable and (ii) effect shall be given to the intent manifested by the portion
held invalid or unenforceable.

 

16.          Counterparts.
This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall
be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by
facsimile transmission shall constitute effective execution and delivery of this Agreement as to the parties and may be used in
lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile shall be deemed to be their
original signatures for all purposes.

 

[Signatures on following page.]

 

    	 	28	 

     

    

 

If the foregoing is
in accordance with your understanding of the agreement between the Company and the Placement Agent, kindly sign and return this
Agreement, whereupon it will become a binding agreement between the Company and the Placement Agent in accordance with its terms.

 

 

	DARIOHEALTH CORP.	 
	 	 
	 	 
	By:	/s/ Erez Raphael	 
	 	Erez Raphael	 
	 	Chief Executive Officer	 
	 	 
	 	 
	Accepted and agreed to this	 
	22nd day of October 2019:	 
	 	 
	 	 
	AEGIS CAPITAL CORP.	 
	 	 
	 	 
	By: 	/s/ Adam K. Stern	 
	 	Adam K. Stern	 
	 	Head of Private Equity Banking	 

 

    	 	 	 

     

    

 

SCHEDULE OF EXCEPTIONS

 

    	 	 	 

     

    

 

Schedule 2(c)

 

Subsidiaries

 

	Subsidiary	State of 

Organization
	LabStyle Innovation Ltd.	Israel

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