Document:

EXHIBIT 10.27

 

 

NANO VIBRONIX, INC.

 

2014 LONG-TERM INCENTIVE PLAN

 

The Nano Vibronix,
Inc. 2014 Long-Term Incentive Plan (the “Plan”) was adopted by the Board of Directors of Nano Vibronix,
Inc., a Delaware corporation (the “Company”), effective as of February 19, 2014, subject to approval
by the Company’s stockholders.

 

Article
1

PURPOSE

 

The purpose of the
Plan is to attract and retain the services of key Employees, key Contractors, and Outside Directors of the Company and its Subsidiaries
and to provide such persons with a proprietary interest in the Company through the granting of Incentive Stock Options, Nonqualified
Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Dividend Equivalent Rights,
and Other Awards, whether granted singly, or in combination, or in tandem, that will:

 

(a)increase
the interest of such persons in the Company’s welfare;

 

(b)furnish
an incentive to such persons to continue their services for the Company or its Subsidiaries; and

 

(c)provide
a means through which the Company may attract able persons as Employees, Contractors, and Outside Directors.

 

With respect to Reporting
Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3
promulgated under the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to so comply, such
provision or action shall be deemed null and void ab initio, to the extent permitted by law and deemed advisable by the
Committee.

 

Article
2

DEFINITIONS

 

For the purpose of
the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:

 

2.1“Applicable
Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and distribution
of shares of Common Stock, if any, under applicable corporate laws, applicable securities laws, the rules of any exchange or inter-dealer
quotation system upon which the Company’s securities are listed or quoted, the rules of any foreign jurisdiction applicable
to Incentives granted to residents therein, and any other applicable law, rule or restriction.

 

2.2“Award”
means the grant of any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock, SAR, Restricted Stock Units, Performance
Award, Dividend Equivalent Right or Other Award, whether granted singly or in combination or in tandem (each individually referred
to herein as an “Incentive”).

 

2.3“Award
Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant
of an Award.

 

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2.4“Award
Period” means the period set forth in the Award Agreement during which one or more Incentives granted under an Award
may be exercised.

 

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

 

2.6“Change
in Control” means the occurrence of the event set forth in any one of the following paragraphs, except as otherwise
provided herein:

 

(a)any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing fifty percent
(50%) or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes
such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below;

 

(b)the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
the effective date of this Plan, constitute the Board and any new director (other than a director whose initial assumption of office
is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s
stockholders was approved or recommended by a vote of at least two-thirds (2/3rds) of the directors then still in office
who either were directors on the effective date of this Plan or whose appointment, election or nomination for election was previously
so approved or recommended;

 

(c)there
is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation,
other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior
to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or any parent thereof) at least sixty percent (60%) of the combined voting power of the securities of the
Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes
the Beneficial Owner, directly or indirectly, of securities of the Company (not including the securities Beneficially Owned by
such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by
the Company or its Affiliates of a business) representing thirty percent (30%) or more of the combined voting power of the Company’s
then outstanding securities; or

 

(d)the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity, at least sixty percent (60%) of the combined
voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immediately prior to such sale.

 

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For purposes
hereof:

 

“Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

 

“Beneficial
Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant
to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company.

 

Notwithstanding the
foregoing provisions of this Section 2.6, if an Award issued under the Plan is subject to Section 409A of the Code, then
an event shall not constitute a Change in Control for purposes of such Award under the Plan unless such event also constitutes
a change in the Company’s ownership, its effective control or the ownership of a substantial portion of its assets within
the meaning of Section 409A of the Code.

 

2.7“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

2.8“Committee”
means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan.

 

2.9“Common
Stock” means the common stock, par value $0.001 per share, which the Company is currently authorized to issue or
may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted
or exchanged, as the case may be, pursuant to the terms of this Plan.

 

2.10“Company”
means Nano Vibronix, Inc., a Delaware corporation, and any successor entity.

 

2.11“Contractor”
means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary, with compensation,
pursuant to a written independent contractor agreement between such person (or any entity employing such person) and the Company
or a Subsidiary, provided that such services are not rendered in connection with the offer or sale of securities in a capital raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

2.12“Corporation”
means any entity that (i) is defined as a corporation under Section 7701 of the Code and (ii) is the Company or is in an unbroken
chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation
in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the
other corporations in the chain. For purposes of clause (ii) hereof, an entity shall be treated as a “corporation”
if it satisfies the definition of a corporation under Section 7701 of the Code.

 

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2.13“Date
of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award
Agreement; provided, however, that solely for purposes of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder, the Date of Grant of an Award shall be the date of stockholder approval of the Plan if such date is later than the
effective date of such Award as set forth in the Award Agreement.

 

2.14“Dividend
Equivalent Right” means the right of the holder thereof to receive credits based on the cash dividends that would
have been paid on the shares of Common Stock specified in the Award if such shares were held by the Participant to whom the Award
is made.

 

2.15“Employee”
means a common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c)
of the Code) of the Company or any Subsidiary of the Company; provided, however, in the case of individuals
whose employment status, by virtue of their employer or residence, is not determined under Section 3401(c) of the Code, “Employee”
shall mean an individual treated as an employee for local payroll tax or employment purposes by the applicable employer under Applicable
Law for the relevant period.

 

2.16“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended.

 

2.17“Executive
Officer” means an officer of the Company or a Subsidiary subject to Section 16 of the Exchange Act or a “covered
employee” as defined in Section 162(m)(3) of the Code.

 

2.18“Fair
Market Value” means, as of a particular date, (a) if the shares of Common Stock are listed on any established national
securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the
principal securities exchange for the Common Stock on that date, or, if there shall have been no such sale so reported on that
date, on the last preceding date on which such a sale was so reported; (b) if the shares of Common Stock are not so listed, but
are quoted on an automated quotation system, the closing sales price per share of Common Stock reported on the automated quotation
system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such
a sale was so reported; (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on
that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be
available, as reported by the OTC Bulletin Board operated by the Financial Industry Regulation Authority, Inc. or the OTC Markets
Group Inc., formerly known as Pink OTC Markets Inc.; or (d) if none of the above is applicable, such amount as may be determined
by the Committee (acting on the advice of an Independent Third Party, should the Committee elect in its sole discretion to utilize
an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock. The determination
of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.

 

2.19“Incentive”
is defined in Section 2.2 hereof.

 

2.20“Incentive
Stock Option” means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to
this Plan.

 

2.21“Independent
Third Party” means an individual or entity independent of the Company having experience in providing investment banking
or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes
of this Plan. The Committee may utilize one or more Independent Third Parties.

 

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2.22“Nonqualified
Stock Option” means a nonqualified stock option, granted pursuant to this Plan, which is not an Incentive Stock Option.

 

2.23“Option
Price” means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of
Common Stock.

 

2.24“Other
Award” means an Award issued pursuant to Section 6.9 hereof.

 

2.25“Outside
Director” means a director of the Company who is not an Employee or a Contractor.

 

2.26“Participant”
means an Employee or Contractor of the Company or a Subsidiary or an Outside Director to whom an Award is granted under this Plan.

 

2.27“Performance
Award” means an Award hereunder of cash, shares of Common Stock, units or rights based upon, payable in, or otherwise
related to, Common Stock pursuant to Section 6.7 hereof.

 

2.28“Performance
Goal” means any of the goals set forth in Section 6.10 hereof.

 

2.29“Plan”
means this Nano Vibronix, Inc. 2014 Long-Term Incentive Plan, as amended from time to time.

 

2.30“Reporting
Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act.

 

2.31“Restricted
Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.4 of this
Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement.

 

2.32“Restricted
Stock Units” means units awarded to Participants pursuant to Section 6.6 hereof, which are convertible into
Common Stock at such time as such units are no longer subject to restrictions as established by the Committee.

 

2.33“Retirement”
means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early retirement
as determined by the Committee; provided, however, in the case of Participants who reside in the European
Economic Area, “Retirement” shall mean any Termination of Service as of a date they are eligible for mandatory retirement
benefits under local law, without regard to age.

 

2.34“SAR”
or “Stock Appreciation Right” means the right to receive an amount, in cash and/or Common Stock, equal
to the excess of the Fair Market Value of a specified number of shares of Common Stock as of the date the SAR is exercised (or,
as provided in the Award Agreement, converted) over the SAR Price for such shares.

 

2.35“SAR
Price” means the exercise price or conversion price of each share of Common Stock covered by a SAR, determined on
the Date of Grant of the SAR.

 

2.36“Stock
Option” means a Nonqualified Stock Option or an Incentive Stock Option.

 

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2.37“Subsidiary”
means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of
stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described
in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled
to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners
or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed
in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships,
partnerships or limited liability companies.

 

2.38“Termination
of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as
an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Director of the Company or a Subsidiary ceases
to serve as a director of the Company and its Subsidiaries for any reason; or (iii) a Contractor of the Company or a Subsidiary
ceases to serve as a Contractor of the Company and its Subsidiaries for any reason. Except as may be necessary or desirable to
comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when a
Participant who is an Employee becomes an Outside Director or Contractor or vice versa. If, however, a Participant who is an Employee
and who has an Incentive Stock Option ceases to be an Employee but does not suffer a Termination of Service, and if that Participant
does not exercise the Incentive Stock Option within the time required under Section 422 of the Code upon ceasing to be an Employee,
the Incentive Stock Option shall thereafter become a Nonqualified Stock Option. Notwithstanding the foregoing provisions of this
Section 2.38, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing
definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Termination
of Service” for purposes of such Award shall be the definition of “separation from service” provided for under
Section 409A of the Code and the regulations or other guidance issued thereunder.

 

2.39“Total
and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s
or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant
is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting
from bodily injury, disease, or mental disorder, is unable to perform his or her duties of employment for a period of six (6) continuous
months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee;
provided that, with respect to any Incentive Stock Option, Total and Permanent Disability shall have the meaning
given it under the rules governing Incentive Stock Options under the Code. Notwithstanding the foregoing provisions of this Section
2.39, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition
and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Total and Permanent
Disability” for purposes of such Award shall be the definition of “disability” provided for under Section 409A
of the Code and the regulations or other guidance issued thereunder.

 

Article
3

ADMINISTRATION

 

3.1General Administration;
Establishment of Committee. Subject to the terms of this Article 3, the Plan shall be administered by the Board
or such committee of the Board as is designated by the Board to administer the Plan (the “Committee”).
The Committee shall consist of not fewer than two persons. Any member of the Committee may be removed at any time, with or without
cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the
Board. At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to
refer to the Board.

 

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Membership on the Committee
shall be limited to those members of the Board who are “outside directors” under Section 162(m) of the Code and “non-employee
directors” as defined in Rule 16b-3 promulgated under the Exchange Act. The Committee shall select one of its members to
act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee
present at a meeting at which a quorum is present shall be the act of the Committee.

 

3.2Designation
of Participants and Awards.

 

(a)The
Committee or the Board shall determine and designate from time to time the eligible persons to whom Awards will be granted and
shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions,
limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan. The Committee
shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination or two or
more Incentives granted in tandem (that is, a joint grant where exercise of one Incentive results in cancellation of all or a portion
of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, all decisions with respect
to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely
and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by the Board.

 

(b)Notwithstanding
Section 3.2(a), to the extent permitted by Applicable Law, the Board may, in its discretion and by a resolution adopted
by the Board, authorize one or more officers of the Company (an “Authorized Officer”) to (i) designate
one or more Employees as eligible persons to whom Awards will be granted under the Plan, and (ii) determine the number of shares
of Common Stock that will be subject to such Awards; provided, however, that the resolution of the Board granting
such authority shall (x) specify the total number of shares of Common Stock that may be made subject to the Awards, (y) set forth
the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase of the Common Stock
subject to such Awards, and (z) not authorize an officer to designate himself as a recipient of any Award.

 

3.3Authority
of the Committee. The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements, (ii) prescribe, amend,
and rescind any rules and regulations and sub-plans (including sub-plans for Awards made to Participants who are not resident in
the United States), as necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award
and certify the extent of their achievement, and (iv) make such other determinations or certifications and take such other action
as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination, or other action made or
taken by the Committee shall be final, binding, and conclusive on all interested parties. The Committee’s discretion set
forth herein shall not be limited by any provision of the Plan, including any provision which by its terms is applicable notwithstanding
any other provision of the Plan to the contrary.

 

The Committee may delegate
to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan. Any
actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken
by the Committee.

 

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With respect to restrictions
in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, Section 422 of the Code, Section
162(m) of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed
or quoted, or any other Applicable Law, to the extent that any such restrictions are no longer required by Applicable Law, the
Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions and/or
to waive any such mandated restrictions with respect to outstanding Awards.

 

Article
4

ELIGIBILITY

 

Any Employee (including
an Employee who is also a director or an officer), Contractor or Outside Director of the Company whose judgment, initiative, and
efforts contributed or may be expected to contribute to the successful performance of the Company is eligible to participate in
the Plan; provided that only Employees of a Corporation shall be eligible to receive Incentive Stock Options. The Committee, upon
its own action, may grant, but shall not be required to grant, an Award to any Employee, Contractor or Outside Director. Awards
may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater
or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine. Except as
required by this Plan, Awards need not contain similar provisions. The Committee’s determinations under the Plan (including
without limitation determinations of which Employees, Contractors or Outside Directors, if any, are to receive Awards, the form,
amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform
and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.

 

Article
5

SHARES SUBJECT TO PLAN

 

5.1Number Available
for Awards. Subject to adjustment as provided in Articles 11 and 12, the maximum number of shares of Common Stock
that may be delivered pursuant to Awards granted under the Plan is Five Million (5,000,000) shares, of which one hundred percent
(100%) may be delivered pursuant to Incentive Stock Options. Subject to adjustment pursuant to Articles 11 and 12, the maximum
number of shares of Common Stock with respect to which Stock Options or SARs may be granted to an Executive Officer during any
calendar year is One Million (1,000,000) shares of Common Stock. Shares to be issued may be made available from authorized but
unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open market
or otherwise. During the term of this Plan, the Company will at all times reserve and keep available the number of shares of Common
Stock that shall be sufficient to satisfy the requirements of this Plan.

 

5.2Reuse of
Shares. To the extent that any Award under this Plan shall be forfeited, shall expire or be canceled, in whole or in part,
then the number of shares of Common Stock covered by the Award or stock option so forfeited, expired or canceled may again be awarded
pursuant to the provisions of this Plan. In the event that previously acquired shares of Common Stock are delivered to the Company
in full or partial payment of the exercise price for the exercise of a Stock Option granted under this Plan, the number of shares
of Common Stock available for future Awards under this Plan shall be reduced only by the net number of shares of Common Stock issued
upon the exercise of the Stock Option. Awards that may be satisfied either by the issuance of shares of Common Stock or by cash
or other consideration shall be counted against the maximum number of shares of Common Stock that may be issued under this Plan
only during the period that the Award is outstanding or to the extent the Award is ultimately satisfied by the issuance of shares
of Common Stock. Awards will not reduce the number of shares of Common Stock that may be issued pursuant to this Plan if the settlement
of the Award will not require the issuance of shares of Common Stock, as, for example, a SAR that can be satisfied only by the
payment of cash. Notwithstanding any provisions of the Plan to the contrary, only shares forfeited back to the Company, shares
canceled on account of termination, expiration or lapse of an Award, shares surrendered in payment of the exercise price of an
option or shares withheld for payment of applicable employment taxes and/or withholding obligations resulting from the exercise
of an option shall again be available for grant of Incentive Stock Options under the Plan, but shall not increase the maximum number
of shares described in Section 5.1 above as the maximum number of shares of Common Stock that may be delivered pursuant
to Incentive Stock Options.

 

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Article
6

GRANT OF AWARDS

 

6.1In General.

 

(a)The
grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the Incentive
or Incentives being granted, the total number of shares of Common Stock subject to the Incentive(s), the Option Price (if applicable),
the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved
by the Committee, but (i) not inconsistent with the Plan, (ii) to the extent an Award issued under the Plan is subject to Section
409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance
issued thereunder, and (iii) to the extent the Committee determines that an Award shall comply with the requirements of Section
162(m) of the Code, in compliance with the applicable requirements of Section 162(m) of the Code and the regulations and other
guidance issued thereunder. The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance
of an Award. Any Award granted pursuant to this Plan must be granted within ten (10) years of the date of adoption of this Plan
by the Board. The Plan shall be submitted to the Company’s stockholders for approval; however, the Committee may grant Awards
under the Plan prior to the time of stockholder approval. Any such Award granted prior to such stockholder approval shall be made
subject to such stockholder approval. The grant of an Award to a Participant shall not be deemed either to entitle the Participant
to, or to disqualify the Participant from, receipt of any other Award under the Plan.

 

(b)If
the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30)
days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement
and paying such purchase price.

 

(c)Any
Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide for interest equivalents to be
credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions
as may be specified by the grant.

 

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6.2Option Price.
The Option Price for any share of Common Stock which may be purchased under a Nonqualified Stock Option for any share of Common
Stock may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Option Price for any share of
Common Stock which may be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value of the share
on the Date of Grant; if an Incentive Stock Option is granted to an Employee who owns or is deemed to own (by reason of the attribution
rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company
(or any parent or Subsidiary), the Option Price shall be at least one hundred ten percent (110%) of the Fair Market Value of the
Common Stock on the Date of Grant.

 

6.3Maximum ISO
Grants. The Committee may not grant Incentive Stock Options under the Plan to any Employee which would permit the aggregate
Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this
and any other plan of the Company and its Subsidiaries) are exercisable for the first time by such Employee during any calendar
year to exceed $100,000. To the extent any Stock Option granted under this Plan which is designated as an Incentive Stock Option
exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock Option (or any such portion thereof)
shall be a Nonqualified Stock Option. In such case, the Committee shall designate which stock will be treated as Incentive Stock
Option stock by causing the issuance of a separate stock certificate and identifying such stock as Incentive Stock Option stock
on the Company’s stock transfer records.

 

6.4Restricted
Stock. If Restricted Stock is granted to or received by a Participant under an Award (including a Stock Option), the Committee
shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be
paid by the Participant for such Restricted Stock and the method of payment of the price, (iii) the time or times within which
such Award may be subject to forfeiture, (iv) specified Performance Goals of the Company, a Subsidiary, any division thereof or
any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions
(including vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock,
which shall be consistent with this Plan, to the extent applicable and in the event the Committee determines that an Award shall
comply with the requirements of Section 162(m) of the Code, in compliance with the requirements of Section 162(m) of the Code and
the regulations and other guidance issued thereunder and, to the extent Restricted Stock granted under the Plan is subject to Section
409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance
issued thereunder. The provisions of Restricted Stock need not be the same with respect to each Participant.

 

(a)Legend
on Shares. The Company shall electronically register the Restricted Stock awarded to a Participant in the name of such Participant,
which shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock,
substantially as provided in Section 15.10 of the Plan. No stock certificate or certificates shall be issued with respect
to such shares of Common Stock, unless, following the expiration of the Restriction Period (as defined in Section 6.4(b)(i)(a)(i))
without forfeiture in respect of such shares of Common Stock, the Participant requests delivery of the certificate or certificates
by submitting a written request to the Committee (or such party designated by the Company) requesting delivery of the certificates.
The Company shall deliver the certificates requested by the Participant to the Participant as soon as administratively practicable
following the Company’s receipt of such request.

 

(b)Restrictions
and Conditions. Shares of Restricted Stock shall be subject to the following restrictions and conditions:

 

    	- 10 -

    	 

    

 

(i)Subject
to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined
by the Committee commencing on the Date of Grant or the date of exercise of an Award (the “Restriction Period”),
the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations,
the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine
that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date of the Award, such action
is appropriate.

 

(ii)Except
as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or
her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right
to receive any dividends thereon. Certificates for shares of Common Stock free of restriction under this Plan shall be delivered
to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares
of Common Stock or after any other restrictions imposed on such shares of Common Stock by the applicable Award Agreement or other
agreement have expired. Certificates for the shares of Common Stock forfeited under the provisions of the Plan and the applicable
Award Agreement shall be promptly returned to the Company by the forfeiting Participant. Each Award Agreement shall require that
each Participant, in connection with the issuance of a certificate for Restricted Stock, shall endorse such certificate in blank
or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and executed stock power to
the Company.

 

(iii)The
Restriction Period of Restricted Stock shall commence on the Date of Grant or the date of exercise of an Award, as specified in
the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award
Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions set forth in the Award
Agreement; such conditions may provide for vesting based on such Performance Goals, as may be determined by the Committee in its
sole discretion.

 

(iv)Except
as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period,
the nonvested shares of Restricted Stock shall be forfeited by the Participant. In the event a Participant has paid any consideration
to the Company for such forfeited Restricted Stock, the Committee shall specify in the Award Agreement that either (i) the Company
shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable
after the event causing forfeiture, in cash, an amount equal to the lesser of the total consideration paid by the Participant for
such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee,
in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of the
Restricted Stock shall cease and terminate, without any further obligation on the part of the Company.

 

6.5SARs.
The Committee may grant SARs to any Participant, either as a separate Award or in connection with a Stock Option. SARs shall be
subject to such terms and conditions as the Committee shall impose, provided that such terms and conditions are (i) not inconsistent
with the Plan, (ii) to the extent a SAR issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable
requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the Committee
determines that a SAR shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable requirements
of Section 162(m) and the regulations and other guidance issued thereunder. The grant of the SAR may provide that the holder may
be paid for the value of the SAR either in cash or in shares of Common Stock, or a combination thereof. In the event of the exercise
of a SAR payable in shares of Common Stock, the holder of the SAR shall receive that number of whole shares of Common Stock having
an aggregate Fair Market Value on the date of exercise equal to the value obtained by multiplying (i) the difference between the
Fair Market Value of a share of Common Stock on the date of exercise over the SAR Price as set forth in such SAR (or other value
specified in the agreement granting the SAR), by (ii) the number of shares of Common Stock as to which the SAR is exercised, with
a cash settlement to be made for any fractional shares of Common Stock. The SAR Price for any share of Common Stock subject to
a SAR may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Committee, in its sole discretion,
may place a ceiling on the amount payable upon exercise of a SAR, but any such limitation shall be specified at the time that the
SAR is granted.

 

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6.6Restricted
Stock Units. Restricted Stock Units may be awarded or sold to any Participant under such terms and conditions as shall be established
by the Committee, provided, however, that such terms and conditions are (i) not inconsistent with the Plan, (ii) to the extent
a Restricted Stock Unit issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements
of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the Committee determines
that a Restricted Stock Unit award shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable
requirements of Section 162(m) and the regulations and other guidance issued thereunder. Restricted Stock Units shall be subject
to such restrictions as the Committee determines, including, without limitation, (a) a prohibition against sale, assignment, transfer,
pledge, hypothecation or other encumbrance for a specified period; or (b) a requirement that the holder forfeit (or in the case
of shares of Common Stock or units sold to the Participant, resell to the Company at cost) such shares or units in the event of
Termination of Service during the period of restriction.

 

6.7Performance
Awards.

 

(a)The
Committee may grant Performance Awards to one or more Participants. The terms and conditions of Performance Awards shall be specified
at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved during
a performance period, and the maximum or minimum settlement values, provided that such terms and conditions are (i) not inconsistent
with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the Code, in compliance
with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder. If the Performance
Award is to be in shares of Common Stock, the Performance Awards may provide for the issuance of the shares of Common Stock at
the time of the grant of the Performance Award or at the time of the certification by the Committee that the Performance Goals
for the performance period have been met; provided, however, if shares of Common Stock are issued at the time of
the grant of the Performance Award and if, at the end of the performance period, the Performance Goals are not certified by the
Committee to have been fully satisfied, then, notwithstanding any other provisions of this Plan to the contrary, the Common Stock
shall be forfeited in accordance with the terms of the grant to the extent the Committee determines that the Performance Goals
were not met. The forfeiture of shares of Common Stock issued at the time of the grant of the Performance Award due to failure
to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in this
Plan that may be applicable to such shares of Common Stock. Each Performance Award granted to one or more Participants shall have
its own terms and conditions.

 

    	- 12 -

    	 

    

 

To the extent
the Committee determines that a Performance Award shall comply with the requirements of Section 162(m) of the Code and the regulations
and other guidance issued thereunder, and if it is determined to be necessary in order to satisfy Section 162(m) of the Code, at
the time of the grant of a Performance Award (other than a Stock Option) and to the extent permitted under Section 162(m) of the
Code and the regulations issued thereunder, the Committee shall provide for the manner in which the Performance Goals shall be
reduced to take into account the negative effect on the achievement of specified levels of the Performance Goals which may result
from enumerated corporate transactions, extraordinary events, accounting changes and other similar occurrences which were unanticipated
at the time the Performance Goal was initially established. In no event, however, may the Committee increase the amount earned
under such a Performance Award, unless the reduction in the Performance Goals would reduce or eliminate the amount to be earned
under the Performance Award and the Committee determines not to make such reduction or elimination.

 

With respect
to a Performance Award that is not intended to satisfy the requirements of Code Section 162(m), if the Committee determines, in
its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the
Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the Committee
may modify the performance measures or objectives and/or the performance period.

 

(b)Performance
Awards may be valued by reference to the Fair Market Value of a share of Common Stock or according to any formula or method deemed
appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other
specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s
business and/or remaining in the employ of the Company or a Subsidiary for a specified period of time. Performance Awards may be
paid in cash, shares of Common Stock, or other consideration, or any combination thereof. If payable in shares of Common Stock,
the consideration for the issuance of such shares may be the achievement of the performance objective established at the time of
the grant of the Performance Award. Performance Awards may be payable in a single payment or in installments and may be payable
at a specified date or dates or upon attaining the performance objective. The extent to which any applicable performance objective
has been achieved shall be conclusively determined by the Committee.

 

(c)Notwithstanding
the foregoing, in order to comply with the requirements of Section 162(m) of the Code, if applicable, no Participant may receive
in any calendar year Performance Awards intended to comply with the requirements of Section 162(m) of the Code which have an aggregate
value of more than $4,000,000, and if such Performance Awards involve the issuance of shares of Common Stock, said
aggregate value shall be based on the Fair Market Value of such shares on the time of the grant of the Performance Award. In no
event, however, shall any Performance Awards not intended to comply with the requirements of Section 162(m) of the Code be issued
contingent upon the failure to attain the Performance Goals applicable to any Performance Awards granted hereunder that the Committee
intends to comply with the requirements of Section 162(m) of the Code.

 

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6.8Dividend
Equivalent Rights. The Committee may grant a Dividend Equivalent Right to any Participant, either as a component of another
Award or as a separate Award. The terms and conditions of the Dividend Equivalent Right shall be specified by the grant. Dividend
equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional
shares of Common Stock (which may thereafter accrue additional dividend equivalents). Any such reinvestment shall be at the Fair
Market Value at the time thereof. Dividend Equivalent Rights may be settled in cash or shares of Common Stock, or a combination
thereof, in a single payment or in installments. A Dividend Equivalent Right granted as a component of another Award may provide
that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such
other Award, and that such Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions
different from such other Award.

 

6.9Other Awards.
The Committee may grant to any Participant other forms of Awards, based upon, payable in, or otherwise related to, in whole or
in part, shares of Common Stock, if the Committee determines that such other form of Award is consistent with the purpose and restrictions
of this Plan. The terms and conditions of such other form of Award shall be specified by the grant. Such Other Awards may be granted
for no cash consideration, for such minimum consideration as may be required by Applicable Law, or for such other consideration
as may be specified by the grant.

 

6.10Performance
Goals. Awards of Restricted Stock, Restricted Stock Units, Performance Award and Other Awards (whether relating to cash or
shares of Common Stock) under the Plan may be made subject to the attainment of Performance Goals relating to one or more business
criteria which, where applicable, shall be within the meaning of Section 162(m) of the Code and consist of one or more or any combination
of the following criteria: cash flow; cost; revenues; sales; ratio of debt to debt plus equity; net borrowing, credit quality or
debt ratings; profit before tax; economic profit; earnings before interest and taxes; earnings before interest, taxes, depreciation
and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational or other basis); operating earnings;
capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital spending or any
other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of mergers, acquisitions,
dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the Company’s Common
Stock; return on assets, equity or stockholders’ equity; market share; inventory levels, inventory turn or shrinkage; or
total return to stockholders (“Performance Criteria”). Any Performance Criteria may be used to measure
the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index.
Any Performance Criteria may include or exclude (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains
or losses on the disposition of a business, (iii) changes in tax or accounting regulations or laws, (iv) the effect of a merger
or acquisition, as identified in the Company’s quarterly and annual earnings releases, or (v) other similar occurrences.
In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, under
generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an Award
which is consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion
and Analysis section of the Company’s annual report. However, to the extent Section 162(m) of the Code is applicable, the
Committee may not in any event increase the amount of compensation payable to an individual upon the attainment of a Performance
Goal.

 

6.11Tandem Awards.
The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the right of the
Participant to exercise one Incentive shall be canceled if, and to the extent, the other Incentive is exercised. For example, if
a Stock Option and a SAR are issued in a tandem Award, and the Participant exercises the SAR with respect to one hundred (100)
shares of Common Stock, the right of the Participant to exercise the related Stock Option shall be canceled to the extent of one
hundred (100) shares of Common Stock.

 

    	- 14 -

    	 

    

 

Article
7

AWARD PERIOD; VESTING

 

7.1Award Period.
Subject to the other provisions of this Plan, the Committee may, in its discretion, provide that an Incentive may not be exercised
in whole or in part for any period or periods of time or beyond any date specified in the Award Agreement. Except as provided in
the Award Agreement, an Incentive may be exercised in whole or in part at any time during its term. The Award Period for an Incentive
shall be reduced or terminated upon Termination of Service. No Incentive granted under the Plan may be exercised at any time after
the end of its Award Period. No portion of any Incentive may be exercised after the expiration of ten (10) years from its Date
of Grant. However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more
than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary) and an
Incentive Stock Option is granted to such Employee, the term of such Incentive Stock Option (to the extent required by the Code
at the time of grant) shall be no more than five (5) years from the Date of Grant.

 

7.2Vesting.
The Committee, in its sole discretion, may determine that an Incentive will be immediately vested in whole or in part, or that
all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the occurrence of one or
more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting, then, subsequent
to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Incentive
may be vested.

 

Article
8

EXERCISE OR CONVERSION OF INCENTIVE

 

8.1In General.
A vested Incentive may be exercised or converted, during its Award Period, subject to limitations and restrictions set forth in
the Award Agreement.

 

8.2Securities
Law and Exchange Restrictions. In no event may an Incentive be exercised or shares of Common Stock issued pursuant to an Award
if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or any registration
under state or federal securities laws required under the circumstances has not been accomplished.

 

8.3Exercise
of Stock Option.

 

(a)In
General. If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise of the
Stock Option shall be Restricted Stock which is subject to the applicable provisions of the Plan and the Award Agreement. If the
Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate
the date on which all or any portion of the Stock Option may be exercised. No Stock Option may be exercised for a fractional share
of Common Stock. The granting of a Stock Option shall impose no obligation upon the Participant to exercise that Stock Option.

 

    	- 15 -

    	 

    

 

(b)Notice
and Payment. Subject to such administrative regulations as the Committee may from time to time adopt, a Stock Option may be
exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to
which the Stock Option is to be exercised and the date of exercise thereof (the “Exercise Date”) which
shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. On the Exercise
Date, the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to
be purchased, payable as provided in the Award Agreement, which may provide for payment in any one or more of the following ways:
(a) cash or check, bank draft, or money order payable to the order of the Company, (b) Common Stock (including Restricted Stock)
owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant
has not acquired from the Company within six (6) months prior to the Exercise Date, (c) by delivery (including by FAX) to the Company
or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions from the Participant
to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise
of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or
loan proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is acceptable to the
Committee in its sole discretion. In the event that shares of Restricted Stock are tendered as consideration for the exercise of
a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock Option equal to the number of shares of
Restricted Stock used as consideration therefor shall be subject to the same restrictions and provisions as the Restricted Stock
so tendered.

 

(c)Issuance
of Certificate. Except as otherwise provided in Section 6.4 hereof (with respect to shares of Restricted Stock) or in
the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause the Common Stock
then being purchased to be registered in the Participant’s name (or the person exercising the Participant’s Stock Option
in the event of his or her death), but shall not issue certificates for the Common Stock unless the Participant or such other person
requests delivery of the certificates for the Common Stock, in writing in accordance with the procedures established by the Committee.
The Company shall deliver certificates to the Participant (or the person exercising the Participant’s Stock Option in the
event of his or her death) as soon as administratively practicable following the Company’s receipt of a written request from
the Participant or such other person for delivery of the certificates. Notwithstanding the forgoing, if the Participant has exercised
an Incentive Stock Option, the Company may at its option retain physical possession of the certificate evidencing the shares acquired
upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the Code. Any obligation of the Company
to deliver shares of Common Stock shall, however, be subject to the condition that, if at any time the Committee shall determine
in its discretion that the listing, registration, or qualification of the Stock Option or the Common Stock upon any securities
exchange or inter-dealer quotation system or under any state or federal law, or the consent or approval of any governmental regulatory
body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of shares of Common Stock
thereunder, the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent,
or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee.

 

(d)Failure
to Pay. Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay for any of the Common Stock
specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to
purchase such Common Stock may be forfeited by the Participant.

 

    	- 16 -

    	 

    

 

8.4SARs.
Subject to the conditions of this Section 8.4 and such administrative regulations as the Committee may from time to time
adopt, a SAR may be exercised by the delivery (including by FAX) of written notice to the Committee setting forth the number of
shares of Common Stock with respect to which the SAR is to be exercised and the date of exercise thereof (the “Exercise
Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually
agreed upon. Subject to the terms of the Award Agreement and only if permissible under Section 409A of the Code and the regulations
or other guidance issued thereunder (or, if not so permissible, at such time as permitted by Section 409A of the Code and the regulations
or other guidance issued thereunder), the Participant shall receive from the Company in exchange therefor in the discretion of
the Committee, and subject to the terms of the Award Agreement:

 

(a)cash
in an amount equal to the excess (if any) of the Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) per share of Common Stock over the SAR Price per share specified in such SAR, multiplied by the total number
of shares of Common Stock of the SAR being surrendered;

 

(b)that
number of shares of Common Stock having an aggregate Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) equal to the amount of cash otherwise payable to the Participant, with a cash settlement to be made for
any fractional share interests; or

 

(c)the
Company may settle such obligation in part with shares of Common Stock and in part with cash.

 

The distribution of
any cash or Common Stock pursuant to the foregoing sentence shall be made at such time as set forth in the Award Agreement.

 

8.5Disqualifying
Disposition of Incentive Stock Option. If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed
of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year
from the transfer of shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other disqualifying
disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing of the date and
terms of such disposition. A disqualifying disposition by a Participant shall not affect the status of any other Stock Option granted
under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.

 

Article
9

AMENDMENT OR DISCONTINUANCE

 

Subject to the limitations
set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter,
amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment for which stockholder
approval is required either (i) by any securities exchange or inter-dealer quotation system on which the Common Stock is listed
or traded or (ii) in order for the Plan and Incentives awarded under the Plan to continue to comply with Sections 162(m), 421,
and 422 of the Code, including any successors to such Sections, or other Applicable Law, shall be effective unless such amendment
shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Any such amendment shall,
to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives theretofore granted under
the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the event of any such amendment to the Plan,
the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability
thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement relating thereto. Notwithstanding
anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article
9 shall adversely affect any rights of Participants or obligations of the Company to Participants with respect to any Incentive
theretofore granted under the Plan without the consent of the affected Participant.

 

    	- 17 -

    	 

    

 

Article
10

TERM

 

The Plan shall be effective
from the date that this Plan is adopted by the Board. Unless sooner terminated by action of the Board, the Plan will terminate
on February 19, 2024, but Incentives granted before that date will continue to be effective in accordance with their terms
and conditions.

 

Article
11

CAPITAL ADJUSTMENTS

 

In the event that any
dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization,
stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination,
subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to
purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects the fair value
of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately after
the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number of
shares and type of Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number
of shares and type of Common Stock (or other securities or property) subject to outstanding Awards, (iii) the number of shares
and type of Common Stock (or other securities or property) specified as the annual per-participant limitation under Section
5.1 of the Plan, (iv) the Option Price of each outstanding Award, (v) the amount, if any, the Company pays for forfeited shares
of Common Stock in accordance with Section 6.4, and (vi) the number of or SAR Price of shares of Common Stock then subject
to outstanding SARs previously granted and unexercised under the Plan, to the end that the same proportion of the Company’s
issued and outstanding shares of Common Stock in each instance shall remain subject to exercise at the same aggregate SAR Price;
provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always
be a whole number. Notwithstanding the foregoing, no such adjustment shall be made or authorized to the extent that such adjustment
would cause the Plan or any Stock Option to violate Section 422 of the Code or Section 409A of the Code. Such adjustments shall
be made in accordance with the rules of any securities exchange, stock market, or stock quotation system to which the Company is
subject.

 

Upon the occurrence
of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such adjustment which
shall be conclusive and shall be binding upon each such Participant.

 

    	- 18 -

    	 

    

 

Article
12

RECAPITALIZATION, MERGER AND CONSOLIDATION

 

12.1No Effect
on Company’s Authority. The existence of this Plan and Incentives granted hereunder shall not affect in any way the right
or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or
other changes in the Company’s capital structure and its business, or any Change in Control, or any merger or consolidation
of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the
Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.

 

12.2Conversion
of Incentives Where Company Survives. Subject to any required action by the stockholders and except as otherwise provided by
Section 12.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance
issued thereunder, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange,
any Incentive granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to
which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled.

 

12.3Exchange
or Cancellation of Incentives Where Company Does Not Survive. Except as otherwise provided by Section 12.4 hereof or
as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event
of any merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there
shall be substituted for each share of Common Stock subject to the unexercised portions of outstanding Incentives, that number
of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or
consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common
Stock held by them, such outstanding Incentives to be thereafter exercisable for such stock, securities, cash, or property in accordance
with their terms.

 

12.4Cancellation
of Incentives. Notwithstanding the provisions of Sections 12.2 and 12.3  hereof, and except as may be required to comply
with Section 409A of the Code and the regulations or other guidance issued thereunder, all Incentives granted hereunder may be
canceled by the Company, in its sole discretion, as of the effective date of any Change in Control, merger, consolidation or share
exchange, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common
Stock or the rights thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially
all of the assets of the Company, or of any dissolution or liquidation of the Company, by either:

 

(a)giving
notice to each holder thereof or his personal representative of its intention to cancel those Incentives for which the issuance
of shares of Common Stock involved payment by the Participant for such shares, and permitting the purchase during the thirty (30)
day period next preceding such effective date of any or all of the shares of Common Stock subject to such outstanding Incentives,
including in the Board’s discretion some or all of the shares as to which such Incentives would not otherwise be vested and
exercisable; or

 

(b)in
the case of Incentives that are either (i) settled only in shares of Common Stock, or (ii) at the election of the Participant,
settled in shares of Common Stock, paying the holder thereof an amount equal to a reasonable estimate of the difference between
the net amount per share payable in such transaction or as a result of such transaction, and the price per share of such Incentive
to be paid by the Participant (hereinafter the “Spread”), multiplied by the number of shares subject
to the Incentive. In cases where the shares constitute, or would after exercise, constitute Restricted Stock, the Company, in its
discretion, may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the Spread,
appropriate adjustments to give effect to the existence of the Incentives shall be made, such as deeming the Incentives to have
been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares receivable upon exercise
of the Incentives as being outstanding in determining the net amount per share. In cases where the proposed transaction consists
of the acquisition of assets of the Company, the net amount per share shall be calculated on the basis of the net amount receivable
with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses and charges,
including but not limited to taxes, payable by the Company before such liquidation could be completed.

 

    	- 19 -

    	 

    

 

(c)An
Award that by its terms would be fully vested or exercisable upon a Change in Control will be considered vested or exercisable
for purposes of Section 12.4(a) hereof.

 

Article
13

LIQUIDATION OR DISSOLUTION

 

Subject to Section
12.4 hereof, in case the Company shall, at any time while any Incentive under this Plan shall be in force and remain unexpired,
(i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall
be entitled to receive, in lieu of each share of Common Stock of the Company which such Participant would have been entitled to
receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable, or payable
upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company. If the Company
shall, at any time prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a partial
liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus
and designated as such) and an adjustment is determined by the Committee to be appropriate to prevent the dilution of the benefits
or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable,
make such adjustment in accordance with the provisions of Article 11 hereof.

 

Article
14

INCENTIVES IN SUBSTITUTION FOR

INCENTIVES GRANTED BY OTHER ENTITIES

 

Incentives may be granted
under the Plan from time to time in substitution for similar instruments held by employees, independent contractors or directors
of a corporation, partnership, or limited liability company who become or are about to become Employees, Contractors or Outside
Directors of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company,
the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company
becomes the successor employer. The terms and conditions of the substitute Incentives so granted may vary from the terms and conditions
set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part,
to the provisions of the Incentives in substitution for which they are granted.

 

    	- 20 -

    	 

    

 

Article
15

MISCELLANEOUS PROVISIONS

 

15.1Investment
Intent. The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence
as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred
are being acquired for investment and not with a view to their distribution.

 

15.2No Right
to Continued Employment. Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant any right
with respect to continuance of employment by the Company or any Subsidiary.

 

15.3Indemnification
of Board and Committee. No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf
of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee
of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected
by the Company in respect of any such action, determination, or interpretation.

 

15.4Effect of
the Plan. Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person
any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto,
duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions
expressly set forth therein.

 

15.5Compliance
With Other Laws and Regulations. Notwithstanding anything contained herein to the contrary, the Company shall not be required
to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant
or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or
inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including without limitation
Section 16 of the Exchange Act and Section 162(m) of the Code); and, as a condition of any sale or issuance of shares of Common
Stock under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary
or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives hereunder, and
the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state
laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.

 

15.6Foreign
Participation. To assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide
for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.
Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it
determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the Committee
approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.

 

15.7Tax Requirements.
The Company or, if applicable, any Subsidiary (for purposes of this Section 15.7, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form
in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with an Award
granted under this Plan. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock
issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to the Award. Such payments shall be required to be made when requested by Company
and may be required to be made prior to the delivery of any certificate representing shares of Common Stock. Such payment may be
made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares
under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents
in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that the Participant has
not acquired from the Company within six (6) months prior to the date of exercise, which shares so delivered have an aggregate
Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding
payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of shares
to be delivered upon the exercise of the Stock Option, which shares so withheld have an aggregate fair market value that equals
(but does not exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in
its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.
The Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary
or desirable.

 

    	- 21 -

    	 

    

 

15.8Assignability.
Incentive Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than
by will or the laws of descent and distribution and may be exercised during the lifetime of the Participant only by the Participant
or the Participant’s legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option
shall so provide. The designation by a Participant of a beneficiary will not constitute a transfer of the Stock Option. The Committee
may waive or modify any limitation contained in the preceding sentences of this Section 15.8 that is not required for compliance
with Section 422 of the Code.

 

Except as otherwise
provided herein, Awards may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than
by will or the laws of descent and distribution. The Committee may, in its discretion, authorize all or a portion of an Award to
be granted to a Participant on terms which permit transfer by such Participant to (i) the spouse (or former spouse), children or
grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts for the exclusive
benefit of such Immediate Family Members, (iii) a partnership in which the only partners are (1) such Immediate Family Members
and/or (2) entities which are controlled by Immediate Family Members, (iv) an entity exempt from federal income tax pursuant to
Section 501(c)(3) of the Code or any successor provision, or (v) a split interest trust or pooled income fund described in Section
2522(c)(2) of the Code or any successor provision, provided that (x) there shall be no consideration for any such transfer,
(y) the Award Agreement pursuant to which such Award is granted must be approved by the Committee and must expressly provide for
transferability in a manner consistent with this Section, and (z) subsequent transfers of transferred Awards shall be prohibited
except those by will or the laws of descent and distribution.

 

Following any transfer,
any such Nonqualified Stock Option and SAR shall continue to be subject to the same terms and conditions as were applicable immediately
prior to transfer, provided that for purposes of Articles 8, 9, 11, 13 and 15 hereof the term “Participant”
shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to the
original Participant, following which the Nonqualified Stock Options and SARs shall be exercisable or convertible by the transferee
only to the extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation
to inform any transferee of a Nonqualified Stock Option or SAR of any expiration, termination, lapse or acceleration of such Stock
Option or SAR. The Company shall have no obligation to register with any federal or state securities commission or agency any Common
Stock issuable or issued under a Nonqualified Stock Option or SAR that has been transferred by a Participant under this Section
15.8.

 

15.9Use of Proceeds.
Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under this Plan shall constitute general funds
of the Company.

 

15.10Legend.
Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar
legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such
legend shall be surrendered upon demand by the Company and so endorsed):

 

On the face of the certificate:

 

“Transfer of this stock
is restricted in accordance with conditions printed on the reverse of this certificate.”

 

On the reverse:

 

“The shares of stock
evidenced by this certificate are subject to and transferable only in accordance with that certain Nano Vibronix, Inc. 2014 Long-Term
Incentive Plan, a copy of which is on file at the principal office of the Company in Melville, New York. No transfer or pledge
of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan. By acceptance
of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.”

 

The following legend
shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction
registered under the applicable federal and state securities laws:

 

“Shares of stock represented
by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued
pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered
for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance
with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon
an opinion of counsel satisfactory to the Company.”

 

A copy of this Plan
shall be kept on file in the principal office of the Company in Melville, New York.

 

***************

 

    	- 22 -

    	 

    

 

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be executed as of February 28, 2014, by its Chief
Executive Officer and Secretary pursuant to prior action taken by the Board.

 

 

	NANO VIBRONIX, INC.
	 
	 
	By: 	/s/ Harold Jacob
	Name 	Harold Jacob
	Title	Chief Executive Officer

 

 

 

	
	 
	 
	By: 	 
	Name 	 
	Title	Secretary

 

    	- 23 -

    	 

    

 

 

_________________________________________________

 

 

 

Nano Vibronix Inc.

 

(THE "COMPANY")

ISRAELI APPENDIX 

TO THE COMPANY’S 2014 LONG-TERM
INCENTIVE PLAN 

(THE "PLAN")

 

 

___________________________________________________

 

 

    	 

    	 

    

 

		1.	GENERAL

 

		1.1.	This appendix, as amended from time to time
(the "Appendix") shall apply only to Participants who are residents of the State of Israel or those who are deemed
to be residents of the State of Israel for the purposes of tax payment. The provisions specified hereunder shall form an integral
part of the Plan. 

 

		1.2.	This Appendix is effective with respect to
Stock Options to be granted according to the resolution of the Administrator as such term is defined in Section 2 herein and shall
comply with Amendment no. 147 of the Israeli Tax Ordinance [New Version], 5721-1961 (the "Ordinance").

 

		1.3.	This Appendix is to be read as a continuation
of the Plan and only refers to Stock Options granted to Israeli Participants so that they comply with the requirements set by the
Israeli law in general, and in particular with the provisions of Section 102 of the Ordinance, and any regulations, rules, orders
or procedures promulgated thereunder, as may be amended or replaced from time to time. For the avoidance of doubt, except as expressly
provided herein, this Appendix does not add to or modify the Plan in respect of any other category of Participants.

 

		1.4.	The Plan and this Appendix are complementary
to each other and shall be deemed one. In any case of contradiction, whether explicit or implied, between the provisions of this
Appendix and the Plan, the provisions set out in this Appendix shall prevail with respect to Stock Options granted to Israeli Participants.

 

		1.5.	Any capitalized terms not specifically defined
in this Appendix shall be construed according to the interpretation given to them in the Plan.

 

		2.	DEFINITIONS

 

		2.1	"Administrator" – means the Board or the Committee
as such terms are defined in the Plan.

 

		2.2	“Affiliate” – means any company eligible to be qualified
as an “employing company”, with respect to the Company, within the meaning of Section 102(a) of the Ordinance including
any and all rules and regulations promulgated thereunder, as now in effect or as hereafter amended.

 

		2.3	"Approved 102 Stock Option" – means a 102 Stock Option
granted pursuant to Section 102(b) of the Ordinance, including any and all rules and regulations promulgated thereunder, as now
in effect or as hereafter amended, and held in trust by a Trustee for the benefit of the Participant, pursuant to Section 102.
Approved 102 Stock Options may either be classified as Capital Gain Stock Options or as Ordinary Income Stock Options.

 

		2.4	"Capital Gain Stock Option" or " CGSO"
– means an Approved 102 Stock Option elected and designated by the Company to qualify under the capital gain tax treatment
in accordance with the provisions of Section 102(b)(2) of the Ordinance.

 

		2.5	“Companies Law” – means the Israeli Companies
Law, 5759-1999, including any rules and regulations promulgated thereunder and any provisions of the Companies Ordinance [New Version],
5743-1983 still in effect, as amended from time to time.

 

    	2

    	 

    

 

		2.6	"Controlling Shareholder" – means a controlling shareholder
("Ba’al Shlita") as such term is defined in Section 32(9) of the Ordinance.

 

		2.7	“Date of Grant” – shall have the meaning ascribed
to it in Section 2.13 of the Plan, provided however, that for the purposes of this Appendix, such date shall not be earlier than
the first date on which the Company is permitted to effect Stock Option grants under this Appendix and under the provisions of
the Ordinance, including any and all rules and regulations promulgated thereunder, as now in effect or as hereafter amended. For
the avoidance of doubt, no Approved 102 Stock Option shall be deemed granted before the lapse of thirty (30) days from the due
submission of this Appendix to the ITA.

 

		2.8	"Employee" – shall have the meaning ascribed to it
in the Plan, and for the purpose hereof, shall also include a director and an individual who is serving as an Office Holder or
director of any Affiliate of the Company, but excluding any Controlling Shareholder.

 

		2.9	"ITA" – means the Israeli Tax Authorities.

 

		2.10	"Non-Employee" – means a consultant, adviser, service
provider, including, inter alia, any other person who is part of the upper management of the Company and who grants managerial
services to the Company, Controlling Shareholder or any other person who is not an Employee.

 

		2.11	"Office Holder" ("Nose Misra") – as such
term is defined in the Companies Law.

 

		2.12	“Participant” – shall have the meaning ascribed
to it in the Plan, and for the purpose hereof, shall also mean a person who receives or holds a Stock Option under this Appendix.

 

		2.13	"Ordinary Income Stock Option" or "OISO"
– means an Approved 102 Stock Option elected and designated by the Company to qualify under the ordinary income tax treatment
in accordance with the provisions of Section 102(b)(1) of the Ordinance.

 

		2.14	"102 Stock Option" – means a Stock Option that
the Administrator intends to be a "102 Stock Option", which shall only be granted to Employees of the Company who are
not Controlling Shareholders, and shall be subject to and construed consistently with the requirements of Section 102. The Company
shall have no liability to a Participant or to any other party, if a Stock Option (or any part thereof), which is intended to be
a 102 Stock Option, is not a 102 Stock Option. Approved 102 Stock Options may either be classified as Capital Gain Stock Options
or as Ordinary Income Stock Options.

 

		2.15	"3(i) Stock Option" – means Stock Options that
do not contain such terms as will qualify under Section 102 of the Ordinance.

 

		2.16	"Section 102" – means Section 102 of the Ordinance
and any regulations, rules, orders or procedures promulgated thereunder as now in effect or as hereafter amended.

 

    	3

    	 

    

 

		2.17	"Trustee" – shall mean any individual or entity appointed
by the Company to serve as a trustee and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.

 

		2.18	"Unapproved 102 Stock Option" – means a 102 Stock
Option granted pursuant to Section 102(c) of the Ordinance, including any and all rules and regulations promulgated thereunder,
as now in effect or as hereafter amended, and not held in trust by a Trustee.

 

		3.	ADMINISTRATION

 

This Appendix
shall be administered by the Administrator, pursuant to Section 3 of the Plan. The Administrator may issue shares of Common Stock
and/or Stock Options pursuant to this Appendix. In the event of issuance of shares of Common Stock the recipient of such shares
shall be deemed a Participant hereunder and the provisions of this Appendix shall apply to such issuance and to the issued shares
of Common Stock, mutatis mutandis.

 

		4.	ISSUANCE OF STOCK
OPTIONS; ELIGIBILITY

 

		4.1.	The persons eligible for participation in the
Plan as Participants under this Appendix shall include any Employees, Office Holders and/or Non-Employees of the Company as such
term is defined above, who are residents of the State of Israel or who are deemed to be residents of the State of Israel for the
purposes of tax payment; provided, however, that (i) such Employees and Office Holders may only be granted 102 Stock Options; and
(ii) such Non-Employees and/or Controlling Shareholders may only be granted 3(i) Stock Options.

 

		4.2.	The Administrator may designate Stock Options
granted to Israeli Employees pursuant to Section 102 as Approved 102 Stock Options or as Unapproved 102 Incentive Stock Options.

 

		4.3.	The grant of 102 Stock Options shall be made
under this Appendix adopted by the Board. Furthermore, the grant of Approved 102 Stock Options shall be conditioned upon the approval
of this Appendix by the ITA. 

 

		4.4.	Without derogating from the above, the Administrator's
election of the type of an Approved 102 Stock Options as CGSO or OISO to be granted to Israeli Employees and Office Holders (the
"Election"), shall be appropriately filed with the ITA before the Date of Grant of the first Approved 102 Stock
Option under such Election. Such Election shall remain in effect until changed, not earlier than the end of the year following
the calendar year during which the Company first granted Approved 102 Stock Options under such Election. The Company shall grant
only the type of Approved 102 Stock Option it has elected in accordance with the Election to all Participants who were granted
Approved 102 Stock Options during the period indicated above, all in accordance with the provisions of Section 102(g) of the Ordinance,
including any and all rules and regulations promulgated thereunder, as now in effect or as hereafter amended. For avoidance of
doubt, such Election shall not prevent the Company from granting Unapproved 102 Stock Options simultaneously.

 

		4.5.	All Approved 102 Stock Options must be held
in trust by a Trustee as described in Section 5 below.

 

    	4

    	 

    

 

		4.6.	Each Stock Option granted pursuant to this
Appendix shall be evidenced by an Award Agreement, substantially in such form attached hereto as Exhibits A and B.
Each Award Agreement shall state, among other matters, the number of shares of Common Stock to which the Stock Option relates,
the type of Stock Option granted thereunder (whether an CGSO, OISO, Unapproved 102 Stock Option or a 3(i) Stock Option), the vesting
dates, the exercise price per share, the expiration date and such other terms and conditions included in the agreement, including
any such other terms that the Administrator in its discretion may prescribe, provided in all cases that they are consistent with
this Appendix and the Plan. The Award Agreement shall be delivered to the Participant and executed by the Participant and shall
incorporate the terms of the Plan and this Appendix by reference, and specify the terms and conditions thereof and any rules applicable
thereto.

 

		4.7.	The designation of Unapproved 102 Stock Options
and Approved 102 Stock Options shall be subject to the terms and conditions set forth in Section 102 and the regulations promulgated
thereunder.

 

		4.8.	Anything in the Plan to the contrary notwithstanding,
all grants of Stock Options to directors and office holders shall be authorized and implemented in accordance with the provisions
of the Companies Law or any successor act or regulation, as in effect from time to time.

 

		5.	TRUSTEE

 

		5.1.	Approved 102 Stock Options or shares of Common
Stock which shall be granted under the Plan and this Appendix and/or any shares of Common Stock allocated or issued upon exercise
of such Approved 102 Stock Options, shall - notwithstanding anything in the Plan to the contrary – be allocated or issued
to the Trustee (and registered in the Trustee's name in the register of shareholders of the Company) and held for the benefit of
the Participants for such period of time as required by Section 102 (the "Restricted Period"). All certificates
representing shares of Common Stock issued to the Trustee under the Plan and this Appendix shall be deposited with the Trustee,
and shall be held by the Trustee until such time that such shares of Common Stock are released from the aforesaid trust as herein
provided. In case the requirements for Approved 102 Stock Options are not met, then the Approved 102 Stock Options may be treated
as Unapproved 102 Stock Options, all in accordance with the provisions of Section 102. 

 

		5.2.	Anything in the Plan to the contrary notwithstanding,
the Trustee shall not release any shares of Common Stock allocated or issued upon exercise of Approved 102 Stock Options prior
to the full payment of the Participant's tax liabilities arising from Approved 102 Stock Options, which were granted to such Participant,
and/or from any shares of Common Stock allocated or issued upon exercise of such Stock Options. 

 

		5.3.	With respect to any Approved 102 Stock Option,
subject to the provisions of Section 102, a Participant shall not be entitled to sell or release from trust any share of Common
Stock received upon the exercise of an Approved 102 Stock Option until the lapse of the Restricted Period required under Section
102. Notwithstanding the above, if any such sale or release occurs during the Restricted Period, the tax liabilities under Section
102 shall apply to and shall be borne by such Participant. 

 

		5.4.	Upon receipt of an Approved 102 Stock Option,
the Participant will sign an undertaking to release the Trustee from any liability in respect of any action or decision duly taken
and bona fide executed in relation with the Plan and this Appendix, or any Approved 102 Stock Option or share of Common Stock granted
to the Participant thereunder. Such release may be incorporated into the Award Agreement.

 

    	5

    	 

    

 

		5.5.	3(i) Stock Options which shall be granted under
this Appendix, may, but need not, be issued to the Trustee, and if so issued to the Trustee, shall be held for the benefit of the
Participant. The Trustee shall hold such Stock Options and the shares of Common Stock issued upon the exercise thereof (in the
event of an exercise of such Stock Options) pursuant and subject to Section 3(i) of the Ordinance, including any and all rules,
regulations, orders and procedures promulgated thereunder, as now in effect or as hereafter amended. Anything to the contrary notwithstanding,
the Trustee shall not release any 3(i) Stock Options held by it and which were not already exercised into shares of Common Stock
by the Participant, nor shall the Trustee release any shares of Common Stock issued upon the exercise of 3(i) Stock Options –
in both cases – prior to the full payment of the relevant Participant’s tax liabilities arising from those 3(i) Stock
Options which were granted to him and from any shares of Common Stock issued upon the exercise of such 3(i) Stock Options.

 

		6.	FAIR MARKET VALUE FOR TAX PURPOSES

 

The per share exercise price
for the shares of Common Stock underlying the Stock Options, shall be determined by the Administrator pursuant to the Plan (the
“Exercise Price”). The form of consideration for exercising a Stock Option shall be determined by the Administrator
pursuant to the Plan, provided however, that cashless exercise for Stock Options granted under this Appendix, may be implemented
by the Company only following the lapse of the Restricted Period, unless otherwise determined by the Administrator with the approval
of the ITA, to the extent such approval is necessary to receive and/or to keep any tax benefit pursuant to Section 102.

 

Without derogating from the
terms and conditions of the Plan and this Appendix, solely for the purpose of determining the tax liability pursuant to Section
102(b)(3) of the Ordinance, if at the Date of Grant the Company’s shares of Common Stock are listed on any established national
securities exchange or a national market system or if the Company’s shares of Common Stock will be registered for trading
within ninety (90) days following the Date of Grant, the Fair Market
Value of a share of Common Stock at the Date of Grant shall be
determined in accordance with the average value of the Company’s shares on the thirty (30) trading days preceding the Date
of Grant or on the thirty (30) trading days following the date of registration for trading, as the case may be.

 

		7.	EXERCISE OF STOCK OPTIONS

 

Stock Options shall be exercised
by the Participant’s giving a written notice and remitting payment of the total Option Price to the Administrator or to any
third party designated by the Administrator (the "Representative"), in such form and method as may be determined
by the Administrator and the Trustee and, when applicable, in accordance with the requirements of Section 102, which exercise shall
be effective upon receipt of such notice by the Administrator or the Representative and the payment of the Option Price at the
Company's or the Representative’s principal office. With respect to Unapproved 102 Stock Options, if the Participant ceases
to be employed by the Company or any Affiliate, the Participant shall extend to the Company and/or its Affiliate a security or
guarantee for the payment of tax due at the time of sale of the shares of Common Stock, all in accordance with the provisions of
Section 102.

 

    	6

    	 

    

 

In the event that the Trustee
hold shares of Common Stock in trust, the Trustee shall not, with respect to such shares, represent the holder of such shares in
any meeting of the stockholders of the Company or any action of the stockholders of the Company by written consent. The Trustee
shall provide the Company on such date or as shall be mutually agreed between the Trustee and the Company, with a power-of-attorney
to participate and vote in such meetings and execute such actions by written consent with respect to all shares of Common Stock
held in trust, if so requested by the Company.

 

		8.	INTEGRATION OF SECTION 102 AND TAX COMMISSIONER'S
APPROVAL

 

		8.1.	With regards to Approved 102 Stock Options,
the provisions of the Plan, this Appendix and the Award of any Award Agreement, the Award Agreement shall be subject to the provisions
of Section 102 and the Income Tax Commissioner's approval, and the said provisions and permit shall be deemed an integral part
of the Plan and of the Award Agreement.

 

		8.2.	Any provision of Section 102 and/or the said
permit which is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified
in the Plan, this Appendix or the Award Agreement, shall be considered binding upon the Company and the Participants.

 

		9.	TAX CONSEQUENCES

 

		9.1.	To the extent permitted by Applicable Law,
any tax consequences arising from the grant or exercise of any Stock Option, from the payment for shares of Common Stock covered
thereby or from any other event or act (of the Company, and/or its Affiliates, and/or the Trustee or the Participant), hereunder,
shall be borne solely by the Participant. The Company and/or its Affiliates and/or the Trustee shall withhold taxes according to
the requirements under Applicable Law, rules, and regulations, including withholding taxes at source. Furthermore, the Participant
agrees to indemnify the Company and/or its Affiliates and/or the Trustee and hold them harmless against and from any and all liability
for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold,
or to have withheld, any such tax from any payment made to the Participant.

 

		9.2.	The Company and/or the Trustee shall not be
required to release any share certificate to a Participant until all required payments have been fully made by the Participant
and unless the Participant requests delivery of such certificate, in writing in accordance with the procedures established by the
Administrator.

 

		10.	GOVERNING LAW & JURISDICTION

 

This
Appendix shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts
made and to be performed therein, without giving effect to the principles of conflict of laws. Notwithstanding anything stated
herein to the contrary, if and to the extent any issue or matter arises hereunder which involves the application of another jurisdiction
or the requirements relating to the administration of Stock Options of any stock exchange or quotation system, then such laws
and requirements shall apply and shall govern such issues or matters, in accordance with any Applicable Law. The competent courts
of Tel-Aviv, Israel shall have sole jurisdiction to adjudicate any dispute that may arise in connection with the application,
interpretation or enforcement of Section 102 including (without limitation) matters involving the Trustee and the Israeli tax
consequences of the Stock Options or the shares of Common Stock in trust and the release and transfer of such Stock Options or
shares of Common Stock by the Trustee.

  

	 
	 
	Nano Vibronix Inc.

 

    	7EXHIBIT 10.28

 

	Void after November 15, 2018	Warrant No. ________

 

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

 

NANOVIBRONIX, INC.

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

NanoVibronix, Inc. (the “Company”), having
its principal office at 105 Maxess Road, Suite S124, Melville, NY 11747, hereby certifies that, for value received, _____________
(“Investor”), or assigns, is entitled, subject to the terms set forth below, to purchase from the Company at any time
on, or from time to time after, _____ ___, 2014 and before 5:00 P.M., New York City time, on November 15 , 2018, or as curtailed
in accordance with the terms hereof (the “Expiration Date”), ______________ fully paid and non-assessable shares
of Warrant Shares of the Company, at the Purchase Price per share of $___. The number and character of such shares of Warrant Shares
and the Purchase Price per share are subject to adjustment as provided herein.

  

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

 

“Warrant Shares” means the common stock of
the Company Stock, par value $0.001 per share, of the Company.

 

“Affiliate” means any person or entity that,
directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person
or entity, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Holder, any investment
fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to
be an Affiliate of such Holder.

 

“Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in the city of New York, New York are authorized or required by law to remain closed.

 

“Common Stock” means the common stock, par
value $0.001 per share, of the Company.

 

“Common Stock Equivalent” means any Convertible
Security or warrant, option or other right to subscribe for or purchase any additional shares of Common Stock or any Convertible
Security.

 

    	 

    	 

    

 

“Convertible Security” means any stock or
other security (other than options) that is at any time and under any circumstances, directly or indirectly, convertible into,
exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

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

 

“Holder” means any record owner of this Warrant.

 

“Per Share Market Value” has the meaning
set forth in Section 2.3.

 

“Original Issue Date” means _____ ___, 2014.

 

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

 

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

 

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

 

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

 

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

 

2.Exercise of Warrant.

 

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

 

    	 

    	 

    

 

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

 

2.3 Cashless Exercise. In addition
to the method of payment set forth in Sections 2.1 and 2.2 and in lieu of any cash payment required thereunder, the Holder of the
Warrant shall have the right at any time and from time to time to exercise the Warrant in full or in part by surrendering this
Warrant in the manner and at the place specified in Section 3.1, specifying the number of shares for which this Warrant is being
exercised. The Company shall issue Holder the number of shares computed using the following formula:

 

	
         

        X=
	

 

	 	 	 
	where:	 	X = the number of Underlying Securities to be issued to Holder.
	 	 
	 	 	Y = the number of Underlying Securities for which this Warrant is being exercised.
	 	 
	 	 	A = the Purchase Price.
	 	 
	 	 	B = the Per Share Market Value of one share of Underlying Securities on the business day immediately preceding the date of such election

\

“Per
Share Market Value” means on any particular date (a) the closing sales price per share of the Underlying Securities
on such date on any registered national stock exchange on which the Underlying Securities is then listed, or if there is no such
closing sales price on such date, then the closing sales price on such exchange or quotation system on the date nearest preceding
such date, or (b) if the Underlying Securities is not then listed on a registered national stock exchange, the closing sales price
for a share of Underlying Securities in the over-the-counter market, as reported by the OTC Bulletin Board or the OTC Markets Group,
Inc. (or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date,
or (c) if the Underlying Securities is not then reported by the OTC Bulletin Board or the OTC Markets Group, Inc. (or similar organization
or agency succeeding to its functions of reporting prices), the fair market value of a share of Underlying Securities as determined
by the Board, acting in good faith. In determining the fair market value of any shares of Underlying Securities no consideration
shall be given to any restrictions on transfer of the Underlying Securities imposed by agreement or by federal or state securities
laws, or to the existence or absence of, or any limitations on, voting rights.

 

    	 

    	 

    

 

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

 

2.5.Holder’s Exercise
Limitations. The Company shall not affect any exercise of this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise
as set forth on the applicable Exercise Notice, the Holder (together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates
and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without
limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence,
for purposes of this Section 2.5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in
this Section 2.5 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the
Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the
Holder, and the submission of a form of subscription shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination.   In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For
purposes of this Section 2.5, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Business Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’
prior written notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2.5,
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and
the provisions of this Section 2.5 shall continue to apply.  Any such increase or decrease will not be effective until
the 61st day after such written notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 2.5 to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2.5 may be waived at
the election of the Holder upon not less than 61 days’ prior written notice to the Company. Any such waiver will not be effective
and the provisions of this paragraph shall continue to apply until the 61st day (or later, if stated in the notice) after such
notice of waiver is delivered to the Company. Unless earlier waived, the provisions of this Section 25 shall expire and be of no
further force or effect as of November 14, 2018.

 

    	 

    	 

    

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

5.Reorganization, Consolidation, Merger, etc.
In case the Company after the Original Issue Date shall (a) effect a reorganization, (b) consolidate with or merge into any other
entity or (c) transfer all or substantially all of its properties or assets to any other entity under any plan or arrangement contemplating
the dissolution of the Company, then, in each such case, the Holder of this Warrant, upon the exercise hereof as provided in Section
3 at any time after the consummation of such reorganization, consolidation or merger or the effective date of such dissolution,
as the case may be, shall be entitled to receive (and the Company shall be entitled to deliver), in lieu of the Underlying Securities
issuable upon such exercise prior to such consummation or such effective date, the stock and other securities and property (including
cash) to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case
may be, if such Holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as
provided in this Section 5; provided that if the sole consideration to which such Holder would have been entitled upon such consummation
or in connection with such dissolution, as the case may be, if such Holder had so exercised this Warrant immediately prior thereto,
is cash, the Warrant shall be terminated upon such consummation or dissolution. The Company shall not effect any such reorganization,
consolidation, merger or sale, unless prior to or simultaneously with the consummation thereof, the successor corporation resulting
from such consolidation or merger or the corporation purchasing such assets or the appropriate corporation or entity shall assume,
by written instrument, the obligation to deliver to each Holder the shares of stock, cash, other securities or assets to which,
in accordance with the foregoing provisions, each Holder may be entitled to and all other obligations of the Company under this
Warrant. In any such case, if necessary, the provisions set forth in this Section 5 with respect to the rights thereafter of the
Holders shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any Other Securities or assets
thereafter deliverable on the exercise of the Warrants.

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

	Dated: __________ __, 2014	 	NANOVIBRONIX, INC.
	 	 	 	By:  	 
	 	 	 	Name:	 
	Attest:   	 	 	Title:	 

 

    	 

    	 

    

  

FORM OF SUBSCRIPTION

(To be signed only upon exercise of Warrant)

 

To: NANOVIBRONIX, INC.

 

The undersigned, the Holder of the within
Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder,
_________ shares of Warrant Shares of NanoVibronix, Inc., and herewith makes payment therefor

 

(i) of $_____________ or

 

(ii) by surrender of the number of Warrants included
in the within Warrant required for full exercise pursuant to Section 2.3 of the Warrant,

and requests that the certificates for such shares be issued
in the name of, and delivered to, ___________________, whose address is _______________________.

 

Dated:

 

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

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