Document:

Warrant
Certificate No. W-[●]

 

NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS
AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO
THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 

	Effective
    Date: [●]	Void
    After: [●]

 

MOTUS
GI HOLDINGS, INC.

 

WARRANT
TO PURCHASE COMMON STOCK

 

Motus
GI Holdings, Inc., a Delaware corporation (the “Company”), effective [●] (the “Effective
Date”), hereby issues to [●], (the “Holder” or “Warrant Holder”)
this Warrant (the “Warrant”) to purchase [●] shares (each such share as from time to time adjusted as
hereinafter provided being a “Warrant Share” and all such shares being the “Warrant Shares”)
of the Company’s Common Stock (as defined below), at the Exercise Price (as defined below), as adjusted from time to time
as provided herein, on or before [●] (the “Expiration Date”), all subject to the following terms and
conditions. This Warrant has been issued in connection with that certain Consulting Agreement, between the Company and the Holder,
dated [●], as the same may have been amended and supplemented from time to time (the “Consulting Agreement”).

 

As
used in this Warrant, (i) “Business Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common
Stock” means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable
with respect thereto or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend,
stock split, stock combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise
Price” means $8.00 per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day”
means any day on which the Common Stock is traded (or available for trading) on its principal trading market; and (v) “Affiliate”
means any person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common
control with, a person, as such terms are used and construed in Rule 144 promulgated under the Securities Act of 1933, as amended
(the “Securities Act”).

 

    	 

    	 

    

 

 1. DURATION AND EXERCISE OF WARRANTS

 

(a)
Vesting; Exercise Period. This Warrant shall become exercisable as follows (each a “Vesting Date”): (i)
[●] Warrant Shares shall become exercisable on [●], (ii) [●] Warrant Shares shall become exercisable on the
six month anniversary of the date the Securities and Exchange Commission declares the Company’s Registration Statement
on Form S-1 (the “Registration Statement”) effective (the “Registration Statement Effectiveness
Date”), and (iii) [●] Warrant Shares shall become exercisable on the twelve month anniversary of the
Registration Statement Effectiveness Date, provided that the Holder remains a service provider, pursuant to the terms of the
Consulting Agreement, to the Company through each applicable Vesting Date. The Holder may exercise this Warrant in whole or
in part, with respect to Warrant Shares that have become exercisable pursuant to this Section 1(a), on any Business Day on or
before 5:00 P.M., Eastern Time, on the Expiration Date, at which time this Warrant shall become void and of no
value.

 

 (b) Exercise Procedures.

 

(i)       While
this Warrant remains outstanding and exercisable in accordance with Section 1(a), the Holder may exercise this Warrant in whole
or in part at any time and from time to time for Warrant Shares that have become exercisable pursuant to Section 1(a) by:

 

(A)       delivery
to the Company of a duly executed copy of the Notice of Exercise attached as Exhibit A;

 

(B)       surrender
of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may
specify in writing to the Holder; and

 

(C)       payment
of the then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise of the
Warrant (such amount, the “Aggregate Exercise Price”) made in the form of cash, or by certified check, bank
draft or money order payable in lawful money of the United States of America.

 

(ii)       Intentionally
omitted.

 

(iii)       Upon
the exercise of this Warrant in compliance with the provisions of this Section 1(b) the Company shall promptly issue and cause
to be delivered to the Holder a certificate for the Warrant Shares purchased by the Holder. Each exercise of this Warrant shall
be effective immediately prior to the close of business on the date (the “Date of Exercise”) that the conditions
set forth in Section 1(b) have been satisfied, as the case may be. On the first Business Day following the date on which the Company
has received each of the Notice of Exercise and the Aggregate Exercise Price (the “Exercise Delivery Documents”),
the Company shall transmit an acknowledgment of receipt of the Exercise Delivery Documents to the Company’s transfer agent
(the “Transfer Agent”). On or before the third Business Day following the date on which the Company has received
all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided that the
Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal
Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
issue and dispatch by overnight courier to the address as specified in the Notice of Exercise, a certificate, registered in the
Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the
Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such Warrant Shares.

 

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(iv)       If
the Company shall fail for any reason or for no reason to issue to the Holder, within three (3) Business Days of receipt of the
Exercise Delivery Documents, a certificate for the number of shares of Common Stock to which the Holder is entitled and register
such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for
such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if
on or after such Business Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased (the “Buy-In Amount”) plus the amount paid by the Holder to the Company as the exercise price for
the Warrant Shares exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required
to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such
purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example,
if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise
of shares of Common Stock, and paid the Company $5,000 as the exercise price, the Holder’s cash outlay would be a total
of $16,000; and if the aggregate sales price of the shares giving rise to such Buy-In obligation was $10,000, under clause (A)
of the immediately preceding sentence the Company shall be required to pay the Holder $6,000. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence
of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required
pursuant to the terms hereof.

 

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(c)       Partial
Exercise. This Warrant shall be exercisable for Warrant Shares that have become exercisable pursuant to Section 1(a), either
in its entirety or, from time to time, for part only of the number of Warrant Shares referenced by this Warrant. If this Warrant
is submitted in connection with any exercise pursuant to Section 1 and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the actual number of Warrant Shares being acquired upon such an exercise, then the Company
shall as soon as practicable and in no event later than five (5) Business Days after any exercise and at its own expense, issue
a new Warrant of like tenor representing the right to purchase the number of Warrant Shares purchasable immediately prior to such
exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

 

(d)       Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 16.

 

 2. ISSUANCE OF WARRANT SHARES

 

(a)       The
Company covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized,
fully paid and non-assessable, and (ii) free from all liens, charges and security interests, with the exception of claims arising
through the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws.

 

(b)       The
Company shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record holder
of such Warrant from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner
thereof for the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes.

 

(c)       The
Company will not, by amendment of its certificate of incorporation, by-laws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in order to
protect the rights of the Holder to exercise this Warrant, or against impairment of such rights.

 

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3.
ADJUSTMENTS OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

 

(a)       The
Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time
to time upon the occurrence of certain events described in this Section 3; provided, that notwithstanding the provisions
of this Section 3, the Company shall not be required to make any adjustment if and to the extent that such adjustment would require
the Company to issue a number of shares of Common Stock in excess of its authorized but unissued shares of Common Stock, less
all amounts of Common Stock that have been reserved for issue upon the conversion of all outstanding securities convertible into
shares of Common Stock and the exercise of all outstanding options, warrants and other rights exercisable for shares of Common
Stock. If the Company does not have the requisite number of authorized but unissued shares of Common Stock to make any adjustment,
the Company shall use its commercially reasonable efforts to obtain the necessary stockholder consent to increase the authorized
number of shares of Common Stock to make such an adjustment pursuant to this Section 3.

 

(i)       Subdivision
or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or
otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior
to such subdivision shall be proportionately reduced and the number of Warrant Shares shall be proportionately increased, and
conversely, in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination,
reverse stock split or otherwise) into a smaller number of shares, the Exercise Price in effect immediately prior to such combination
shall be proportionately increased and the number of Warrant Shares shall be proportionately decreased. The Exercise Price and
the Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events
described in this Section 3(a)(i).

 

(ii)       Dividends
in Stock, Property, Reclassification. If at any time, or from time to time, all of the holders of Common Stock (or any shares
of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled
to receive, without payment therefore:

 

(A)       any
shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock,
or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)       additional
stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares or
similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which
shall be covered by the terms of Section 3(a)(i) above),

 

then
and in each such case, the Exercise Price and the number of Warrant Shares to be obtained upon exercise of this Warrant shall
be adjusted proportionately, and the Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition
to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases referred to above) that such Holder would hold
on the date of such exercise had such Holder been the holder of record of such Common Stock as of the date on which holders of
Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property.
The Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive
event or events described in this Section 3(a)(ii).

 

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(iii)       Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of the capital
stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially
all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive
stock, securities, or other assets or property (an “Organic Change”), then, as a condition of such Organic
Change, lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right
to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable
upon the exercise of the vested rights represented by this Warrant) such shares of stock, securities or other assets or property
as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the
number of shares of such stock immediately theretofore purchasable and receivable assuming the full exercise of the vested rights
represented by this Warrant. In the event of any Organic Change, appropriate provision shall be made by the Company with respect
to the rights and interests of the Holder of this Warrant to the end that the provisions hereof (including, without limitation,
provisions for adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this
Warrant) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon
the exercise hereof. The Company will not affect any such consolidation, merger or sale unless, prior to the consummation thereof,
the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing
such assets shall assume by written instrument reasonably satisfactory in form and substance to the Holder executed and mailed
or delivered to the registered Holder hereof at the last address of such Holder appearing on the books of the Company, the obligation
to deliver to such Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder
may be entitled to purchase. If there is an Organic Change, then the Company shall cause to
be mailed to the Holder at its last address as it shall appear on the books and records of the Company, at least 10 calendar days
before the effective date of the Organic Change, a notice stating the date on which such Organic Change is expected to become
effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange
their shares for securities, cash, or other property delivered upon such Organic Change; provided, that the failure to mail such
notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. The Holder is entitled to exercise this Warrant, with respect to Warrant Shares that have become exercisable pursuant
to Section 1(a), during the 10-day period commencing on the date of such notice to the effective date of the event triggering
such notice. In any event, the successor corporation (if other than the Company) resulting from such consolidation or merger
or the corporation purchasing such assets shall be deemed to assume such obligation to deliver to such Holder such shares of stock,
securities or assets even in the absence of a written instrument assuming such obligation to the extent such assumption occurs
by operation of law.

 

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(b)       Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this
Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate setting
forth: (i) such adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at
the time would be received upon the exercise of the Warrant.

 

(c)       Certain
Events. If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but the lack of
any adjustment would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the basic intent
and principles of such provisions, or if strictly applicable would not fairly protect the purchase rights of the Holder under
this Warrant in accordance with the basic intent and principles of such provisions, then the Company’s Board of Directors
will, in good faith, make an appropriate adjustment to protect the rights of the Holder; provided, that no such adjustment
pursuant to this Section 3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined
pursuant to this Section 3.

 

4.
INTENTIONALLY OMITTED.

 

 5. TRANSFERS AND EXCHANGES OF WARRANT AND WARRANT SHARES

 

(a)       Registration
of Transfers and Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this Warrant, with a duly executed
copy of the Form of Assignment attached as Exhibit B, to the Secretary of the Company at its principal offices or at such
other office or agency as the Company may specify in writing to the Holder, the Company shall register the transfer of all or
any portion of this Warrant. Upon such registration of transfer, the Company shall issue a new Warrant, in substantially the form
of this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in similar form, evidencing
the remaining acquisition rights not transferred, to the Holder requesting the transfer.

 

(b)       Warrant
Exchangeable for Different Denominations. The Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
the form of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder, each of such new Warrants to be dated the date of such exchange and to represent the right to purchase such number
of Warrant Shares as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed instructions
regarding such re-certification of this Warrant to the Secretary of the Company at its principal offices or at such other office
or agency as the Company may specify in writing to the Holder.

 

(c)       Restrictions
on Transfers. This Warrant may not be transferred at any time without (i) registration under the Securities Act or (ii) an
exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed transfer of
the Warrant may be effected without registration under the Securities Act, which opinion will be in form and from counsel reasonably
satisfactory to the Company.

 

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(d)       Permitted
Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 5, the Holder may transfer, with
or without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates (as
such term is defined under Rule 144 of the Securities Act) without obtaining the opinion from counsel that may be required by
Section 5(c)(ii), provided, that the Holder delivers to the Company and its counsel certification, documentation, and other
assurances reasonably required by the Company’s counsel to enable the Company’s counsel to render an opinion to the
Company’s Transfer Agent that such transfer does not violate applicable securities laws.

 

 6. MUTILATED OR MISSING WARRANT CERTIFICATE

 

If
this Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in
exchange for and upon cancellation of the mutilated Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new
Warrant, in substantially the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares;
provided, that, as a prerequisite to the issuance of a substitute Warrant, the Company may require satisfactory evidence
of loss, theft or destruction as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant.

 

 7. PAYMENT OF TAXES

 

The
Company will pay all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant
and the Warrant Shares (and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided,
however, that the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance
or delivery of certificates for Warrant Shares or other securities in respect of the Warrant Shares to any person or entity other
than to the Holder.

 

8.
FRACTIONAL WARRANT SHARES

 

No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant
Share, shall round up the number of Warrant Shares issuable to nearest whole share.

 

 9. NO STOCK RIGHTS AND LEGEND

 

No
holder of this Warrant, as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that
may at any time be issuable on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder
of this Warrant, as such, the rights of a stockholder of the Company or the right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or give or withhold consent to any corporate action or to receive
notice of meetings or other actions affecting stockholders (except as provided herein), or to receive dividends or subscription
rights or otherwise (except as provide herein).

 

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Each
certificate for Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued
to any subsequent transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the
following form:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER
OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED,
SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
APPLICABLE STATE SECURITIES LAWS.”

 

 10. PIGGYBACK REGISTRATION.

 

(a)       After
the one (1) year anniversary of the signing of the Consulting Agreement, if the Company proposes to register the offer and sale
of any shares of its Common Stock under the Securities Act (other than a registration (i) pursuant to (a) the Registration Statement,
(b) a registration statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors
of the Company pursuant to any employee stock plan or other employee benefit arrangement), or (c) a registration statement on
Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto),
or (ii) in connection with any dividend or distribution reinvestment or similar plan), whether for its own account or for the
account of one or more stockholders of the Company and the form of registration statement (a “Piggyback Registration
Statement”) to be used may be used for any registration of Registrable Securities (a “Piggyback Registration”),
the Company shall give prompt written notice (in any event no later than 20 calendar days prior to the filing of such registration
statement) to the Holder of its intention to effect such a registration and, subject to Section 10(b) and 10(c), shall include
in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion
from the Holder within 10 calendar days after the Company’s notice has been given to the Holder. The Company may postpone
or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion. For purposes of this
Section 10, the term “Registrable Securities” means (x) the Warrant Shares and (y) any capital stock of the
Company issued or issuable with respect to the Warrant Shares, including, without limitation, as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, but excluding (i) any Registrable Securities that have
been publicly sold or may be sold immediately without registration under the Securities Act either pursuant to Rule 144 of the
Securities Act or otherwise; (ii) any Registrable Securities sold by the Holder in a transaction pursuant to a registration statement
filed under the Securities Act, or (iii) any Registrable Securities that are at the time subject to an effective registration
statement under the Securities Act.

 

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(b)       If
a Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company and the managing underwriter
advises the Company and the holders of Registrable Securities (if any holders of Registrable Securities have elected to include
Registrable Securities in such Piggyback Registration) in writing that in its reasonable and good faith opinion the number of
shares of Common Stock proposed to be included in such registration, including all Registrable Securities and all other shares
of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock which can
be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration would
adversely affect the price per share of the Common Stock to be sold in such offering, the managing underwriter, at its sole discretion,
may exclude some or all Registrable Securities from such registration and underwriting, and the Company shall include in such
registration (i) first, the shares of Common Stock that the Company proposes to sell; and (ii) second, the shares of Common Stock
requested to be included therein by the holders of Registrable Securities and holders of Common Stock other than holders of Registrable
Securities, allocated pro rata among all such holders on the basis of the number of Registrable Securities and the number of shares
of Common Stock other than Registrable Securities (on a fully diluted, as converted basis), as applicable, owned by all such holders
or in such manner as they may otherwise agree.

 

(c)       If
a Piggyback Registration is initiated as an underwritten offering on behalf of a holder of Common Stock other than Registrable
Securities, and the managing underwriter advises the Company in writing that in its reasonable and good faith opinion the number
of shares of Common Stock proposed to be included in such registration, including all Registrable Securities and all other shares
of Common Stock proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock which can
be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration would
adversely affect the price per share of the Common Stock to be sold in such offering, the Company shall include in such registration
(i) first, the shares of Common Stock requested to be included therein by the holder(s) requesting such registration and by the
holders of Registrable Securities, allocated pro rata among all such holders on the basis of the number of shares of Common Stock
other than the Registrable Securities (on a fully diluted, as converted basis) and the number of Registrable Securities, as applicable,
owned by all such holders or in such manner as they may otherwise agree; and (ii) second, the shares of Common Stock requested
to be included therein by other holders of Common Stock, allocated among such holders in such manner as they may agree.

 

(d)       If
any Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall select
the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering.

 

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(e)       Obligations
of the Holder.

 

a.       In
connection with each registration hereunder, the Holder shall furnish to the Company in writing such information with respect
to it and the securities held by it and the proposed distribution by it, as shall be reasonably requested by the Company in order
to assure compliance with applicable federal and state securities laws as a condition precedent to including the Holder’s
Registrable Securities in a Piggyback Registration Statement. Each Holder shall also promptly notify the Company in writing of
any changes in such information included in a Piggyback Registration Statement as a result of which there is an untrue statement
of material fact or an omission to state any material fact required or necessary to be stated therein in order to make the statements
contained therein not misleading in light of the circumstances under which they were made.

 

b.       In
connection with the filing of a Piggyback Registration Statement, the Holder shall furnish to the Company in writing such information
and affidavits as the Company reasonably requests for use in connection with such a Piggyback Registration Statement. A form of
Selling Stockholder Questionnaire may be provided to the Holder for such purposes.

 

c.       In
connection with each registration pursuant to this Section 10, the Holder agrees that it will not effect sales of any Registrable
Securities until notified by the Company of the effectiveness of a Piggyback Registration Statement, and thereafter will suspend
such sales after receipt of notice from the Company to suspend sales to permit the Company to correct or update a Piggyback Registration
Statement or upon receipt by the Company of a threat by the SEC or state securities commission to undertake a stop order with
respect to sales under a Piggyback Registration Statement. At the end of any period during which the Company is obligated to keep
a Piggyback Registration Statement current, the Holder shall discontinue sales of Registrable Securities pursuant to such Piggyback
Registration Statement upon receipt of notice from the Company of its intention to remove from registration the Registrable Securities
covered by such Piggyback Registration Statement which remains unsold, and each Purchaser shall notify the Company in writing
of the number of shares registered which remain unsold immediately upon receipt of such notice from the Company.

 

11.
NOTICES

 

All
notices, consents, waivers, and other communications under this Warrant must be in writing and will be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee,
if sent by certified mail, return receipt requested, if to the registered Holder hereof; or (d) seven days after the placement
of the notice into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address
furnished by the registered Holder to the Company from time to time, or if to the Company, to it at 150 Union Square Drive, New
Hope, PA 18938, Attn: Mark Pomeranz (or to such other address, facsimile number, or e-mail address as the Holder or the Company
as a party may designate by notice the other party).

 

    	-11-

    	 

    

 

 12. SEVERABILITY

 

If
a court of competent jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant
will remain in full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

 

13.
BINDING EFFECT

 

This
Warrant shall be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered
Holder or Holders from time to time of this Warrant and the Warrant Shares.

 

14.
SURVIVAL OF RIGHTS AND DUTIES

 

This
Warrant shall terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date
or the date on which this Warrant has been exercised in full.

 

 15. GOVERNING LAW

 

This
Warrant will be governed by and construed under the laws of the State of New York without regard to conflicts of laws principles
that would require the application of any other law.

 

 16. DISPUTE RESOLUTION

 

In
the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company
shall submit the disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Notice
of Exercise giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree
upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two Business Days, submit
via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the
Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform
the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from
the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination
or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

    	-12-

    	 

    

 

 17. NOTICES OF RECORD DATE

 

Upon
(a) any establishment by the Company of a record date of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend or other distribution, or right or option to acquire securities of
the Company, or any other right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation
of the Company with or into any other corporation, any transfer of all or substantially all the assets of the Company, or any
voluntary or involuntary dissolution, liquidation or winding up of the Company, or the sale, in a single transaction, of a majority
of the Company’s voting stock (whether newly issued, or from treasury, or previously issued and then outstanding, or any
combination thereof), the Company shall mail to the Holder at least ten (10) Business Days, or such longer period as may be required
by law, prior to the record date specified therein, a notice specifying (i) the date established as the record date for the purpose
of such dividend, distribution, option or right and a description of such dividend, option or right, (ii) the date on which any
such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected
to become effective and (iii) the date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange
their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

 

 18. RESERVATION OF SHARES

 

The
Company shall reserve and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise
of this Warrant, free from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from time to
time be exercisable. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may
be issued as provided herein without violation of any applicable law or regulation. Without limiting the generality of the foregoing,
the Company covenants that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this
Warrant and use commercially reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited
to consents from the Company’s stockholders or Board of Directors or any public regulatory body, as may be necessary to
enable the Company to perform its obligations under this Warrant.

 

 19. NO THIRD PARTY RIGHTS

 

This
Warrant is not intended, and will not be construed, to create any rights in any parties other than the Company and the Holder,
and no person or entity may assert any rights as third-party beneficiary hereunder.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	-13-

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first set forth above.

 

	MOTUS
    GI HOLDINGS, INC.	 
	 	 	 
	By:
    	 	 
	Name:
    	Mark
    Pomeranz	 
	Title:
    	Chief
    Executive Officer	 

 

[Signature
Page to Warrant]

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE

 

(To
be executed by the Holder of Warrant if such Holder desires to exercise Warrant)

 

To
Motus GI Holdings, Inc.:

 

The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase thereunder, ___________________ full shares of
Motus GI Holdings, Inc. common stock issuable upon exercise of the Warrant and delivery of:

 

(1)       $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant;
and

 

(2)       __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of the Warrant) (check here if the
undersigned desires to deliver an unspecified number of shares equal the number sufficient to effect a Cashless Exercise [___]).

 

The
undersigned requests that certificates for such shares be issued in the name of:

 

 

 

(Please
print name, address and social security or federal employer

identification number (if applicable))

 

 

 

 

 

The
undersigned hereby affirms that the undersigned is an accredited investor as defined under Rule 501 of Regulation D of the Securities
Act of 1933. If the Holder cannot make the foregoing affirmation because it is factually incorrect, it shall be a condition to
the exercise of the Warrant that the Company receive such other representations as the Company considers necessary, acting reasonably,
to assure the Company that the issuance of securities upon exercise of this Warrant shall not violate any United States or other
applicable securities laws.

 

If
the shares issuable upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire
upon the exercise of the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued
in the name of and delivered to:

 

 

 

(Please
print name, address and social security or federal employer

identification
number (if applicable))

 

 

 

 

 

	 	Name
    of Holder (print): __________________________________
	 	(Signature): ___________________________________________
	 	(By:) ________________________________________________
	 	(Title:) _______________________________________________
	 	Dated: _______________________________________________

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF ASSIGNMENT

 

FOR
VALUE RECEIVED, ___________________________________ hereby sells, assigns and transfers to each assignee set forth below all of
the rights of the undersigned under the Warrant (as defined in and evidenced by the attached Warrant) to acquire the number of
Warrant Shares set opposite the name of such assignee below and in and to the foregoing Warrant with respect to said acquisition
rights and the shares issuable upon exercise of the Warrant:

 

	Name
    of Assignee	 	Address	 	Number
    of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

If
the total of the Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the undersigned requests
that a new Warrant evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to
the undersigned.

 

	 	Name
    of Holder (print): __________________________________
	 	(Signature): ___________________________________________
	 	(By:) ________________________________________________
	 	(Title:) _______________________________________________
	 	Dated: _______________________________________________Payment
Rights Certificate No. PAR-[●]

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS. THESE SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD, ASSIGNED, OR OTHERWISE TRANSFERRED
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED
IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 

Effective
Date: December 22, 2016

 

MOTUS
GI HOLDINGS, INC.

 

PAYMENT
RIGHTS CERTIFICATE

 

Motus
GI Holdings, Inc., a Delaware corporation (the “Company”), for value received on December 22, 2016 (the
“Effective Date”), hereby issues to [●] (the “Certificate Holder”) this Payment Rights
Certificate (the “Certificate”) to receive [●]% of the aggregate Royalty Amount payable from time to
time to the Holders of the Royalty Payment Rights (the “Certificate Payment”). This Certificate is one of a
series of payment right certificates of like tenor that have been issued to the Placement Agent or its designees (the “Placement
Agent Royalty Payment Rights Certificates”) in connection with the Company’s private offering of securities pursuant
to the terms of that certain Confidential Private Placement Memorandum of the Company dated December 1, 2016, as the same may
have been amended and supplemented from time to time, and the Placement Agency Agreement dated December 1, 2016, as the same may
have been amended from time to time. The Placement Agent Royalty Payment Rights Certificates provide for an aggregate payment
to all holders of such Placement Agent Royalty Payment Rights Certificates equal to 10% of the aggregate Royalty Amount paid from
time to time to the Holders of the Royalty Payment Rights. All capitalized terms used but not otherwise defined herein shall have
the meaning ascribed to such terms in Exhibit A, attached hereto.

 

1.
DURATION OF CERTIFICATE

 

(a)
Timing of Payments to Certificate Holder. The Certificate Holder will be entitled to receive the Certificate Payments at
the same time and in the same fashion as payments are made to the Holders of the Royalty Payment Rights, as described in Section
(c) of Exhibit A, attached hereto.

 

(b)
Royalty Period. This Certificate shall become void and of no value upon the expiration of the Royalty Term.

 

    	 

    	 

    

 

2.
ISSUANCE OF CERTIFICATE

 

The
Company shall register this Certificate upon records to be maintained by the Company for that purpose in the name of the record
holder of such Certificate from time to time. The Company may deem and treat the registered Certificate Holder of this Certificate
as the absolute owner thereof for the purpose of any Certificate Payments to the Certificate Holder thereof and for all other
purposes.

 

3.
TRANSFERS AND EXCHANGES OF CERTIFICATE

 

(a)
Registration of Transfers and Exchanges. Subject to Section 3(b), upon the Certificate Holder’s surrender of this
Certificate, with a duly executed copy of the Form of Assignment attached as Exhibit B and a written opinion of
legal counsel addressed to the Company that the proposed transfer of the Certificate may be effected without registration under
the Securities Act, which opinion will be in form and from counsel reasonably satisfactory to the Company, to the Secretary of
the Company at its principal offices or at such other office or agency as the Company may specify in writing to the Certificate
Holder, the Company shall register the transfer of all or any portion of this Certificate. Upon such registration of transfer,
the Company shall issue a new Certificate, in substantially the form of this Certificate, evidencing the acquisition rights transferred
to the transferee and a new Certificate, in similar form, evidencing the remaining acquisition rights not transferred, to the
Certificate Holder requesting the transfer.

 

(b)
Certificate Exchangeable for Different Denominations. The Certificate Holder may exchange this Certificate for a new Certificate
or Certificates, in substantially the form of this Certificate, evidencing in the aggregate the right to receive the Certificate
Payment which may then be received hereunder, each of such new Certificates to be dated the date of such exchange and to represent
the right to receive such percentage of Certificate Payments as shall be designated by the Certificate Holder. The Certificate
Holder shall surrender this Certificate with duly executed instructions regarding such re-certification of this Certificate to
the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify in writing
to the Certificate Holder.

 

(c)
Restrictions on Transfers. This Certificate may not be transferred at any time without (i) registration under the Securities
Act of 1933, as amended (the “Securities Act”) or (ii) an exemption from such registration and a written opinion
of legal counsel addressed to the Company that the proposed transfer of the Certificate may be effected without registration under
the Securities Act, which opinion will be in form and from counsel reasonably satisfactory to the Company.

 

(d)
Permitted Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 3, the Certificate Holder
may transfer, with or without consideration, this Certificate (or a portion thereof) to the Certificate Holder’s Affiliates
(as such term is defined under Rule 144 of the Securities Act) without obtaining the opinion from counsel that may be required
by Section 3(c)(ii), provided, that the Certificate Holder delivers to the Company and its counsel certification, documentation,
and other assurances reasonably required by the Company’s counsel to enable the Company’s counsel to render an opinion
to the Company’s Transfer Agent that such transfer does not violate applicable securities laws.

 

    	-2- 

    	 

    

 

4.
MUTILATED OR MISSING CERTIFICATE

 

If
this Certificate is mutilated, lost, stolen or destroyed, upon request by the Certificate Holder, the Company will, at its expense,
issue, in exchange for and upon cancellation of the mutilated Certificate, or in substitution for the lost, stolen or destroyed
Certificate, a new Certificate, in substantially the form of this Certificate, representing the right to acquire the equivalent
amount of Certificate Payments; provided, that, as a prerequisite to the issuance of a substitute Certificate, the Company
may require satisfactory evidence of loss, theft or destruction as well as an indemnity from the Certificate Holder of a lost,
stolen or destroyed Certificate.

 

5.
NO RIGHTS IN COMPANY’S SECURITIES

 

No
holder of this Certificate, as such, shall be entitled to vote or be deemed the holder of any other securities of the Company,
nor shall anything contained herein be construed to confer upon the holder of this Certificate, as such, the rights of a stockholder
of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or give or withhold consent to any corporate action or to receive notice of meetings or other actions affecting stockholders
(except as provided herein), or to receive dividends or subscription rights or otherwise.

 

6.
NOTICES

 

All
notices, consents, waivers, and other communications under this Certificate must be in writing and will be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee,
if sent by certified mail, return receipt requested, if to the registered Certificate Holder hereof; or (d) seven days after the
placement of the notice into the mails (first class postage prepaid), to the Certificate Holder at the address, facsimile number,
or e-mail address furnished by the registered Certificate Holder to the Company, or if to the Company, to it at 150 Union Square
Drive, New Hope, PA 18938, Attn: James Martin, CFO (or to such other address, facsimile number, or e-mail address as the Certificate
Holder or the Company as a party may designate by notice to the other party).

 

    	-3- 

    	 

    

 

7.
SEVERABILITY

 

If
a court of competent jurisdiction holds any provision of this Certificate invalid or unenforceable, the other provisions of this
Certificate will remain in full force and effect. Any provision of this Certificate held invalid or unenforceable only in part
or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

8.
BINDING EFFECT

 

This
Certificate shall be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the
registered Certificate Holder or Certificate Holders from time to time of this Certificate.

 

9.
GOVERNING LAW

 

This
Certificate will be governed by and construed under the laws of the State of New York without regard to conflicts of laws principles
that would require the application of any other law.

 

10.
DISPUTE RESOLUTION

 

In
the case of a dispute as to the arithmetic calculation of the Royalty Amount and/or the Certificate Payment, the Company shall
submit the disputed arithmetic calculation(s) via facsimile within two Business Days of receipt of a written notice from the Certificate
Holder giving rise to such dispute, to the Certificate Holder. If the Certificate Holder and the Company are unable to agree upon
such calculation of the Royalty Amount and/or the Certificate Payment within three Business Days of such disputed arithmetic calculation
being submitted to the Certificate Holder, then the Company shall, within two Business Days, submit via facsimile the disputed
arithmetic calculation of the Royalty Amount and/or the Certificate Payment to the Company’s independent, outside accountant.
The Company shall cause at its expense the accountant to perform the calculation(s) and notify the Company and the Certificate
Holder of the results no later than ten (10) Business Days from the time it receives the disputed arithmetic calculation(s). Such
accountant’s calculation(s) shall be binding upon all parties absent demonstrable error.

 

11.
NO THIRD PARTY RIGHTS

 

This
Certificate is not intended, and will not be construed, to create any rights in any parties other than the Company and the Certificate
Holder, and no person or entity may assert any rights as third-party beneficiary hereunder.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	-4- 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Certificate to be duly executed as of the date first set forth above.

 

MOTUS
GI HOLDINGS, INC.  

 

	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 

 

[Signature
Page to Placement Agent Royalty Payment Rights Certificate]

 

    	 

    	 

    

 

EXHIBIT
A

 

ROYALTY
PAYMENT RIGHTS

 

The
Holders of the Series A Convertible Preferred Stock of Motus GI Holdings, Inc. (the “Company”) have
the royalty payment rights (the “Royalty Payment Rights”), as set forth in and subject to the terms
and conditions of the Company’s Certificate of Designation, and as reproduced in this Exhibit A to this Payment
Rights Certificate. Upon the Mandatory Conversion Date, any Holder of the Series A Convertible Preferred Stock will no longer
be entitled to Royalty Payment Rights by virtue of owning shares of Series A Convertible Preferred Stock and instead the Company
shall issue to each Holder a Royalty Payment Rights certificate, evidencing such Royalty Payment Rights, which certificate shall
contain in all material respects the Royalty Payment Rights set forth in the Company’s Certificate of Designation.

 

Section
(a) Definitions. For purposes of this Exhibit A, the following terms have the following meanings:

 

“Affiliate”
means any person controlled directly or indirectly through one or more intermediaries, by the Company. A Person shall be regarded
as in control of the Company if the Company owns or directly or indirectly controls more than fifty percent (50%) of the voting
stock or other ownership interest of the other person, or if it possesses, directly or indirectly, the power to direct or cause
the direction of the management and policies of such person.

 

“Business
Day” means any day except Saturday, Sunday, and any day which shall be a federal legal holiday in the United States
or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

“Certificate
of Designation” means the Company’s Certificate of Designation of Preferences, Rights and Limitations of Series
A Convertible Preferred Stock, as filed with the Secretary of State of the State of Delaware on December 20, 2016.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable
with respect thereto or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend,
stock split, stock combination, recapitalization, reclassification, reorganization or other similar event

 

“Company
Conversion Notice” means a notice delivered by the Company to effect a Mandatory Conversion of all the outstanding
Series A Convertible Preferred Stock, provided that the effective date of such Mandatory Conversion shall be no less than ten
Business Days following delivery of such notice.

 

“Conversion
Price” means $5.00, subject to adjustment as set forth in the Certificate of Designation.

 

“First
Commercial Sale” means, on a country by country basis, with respect to a Product, the first bona fide sale
of such Product to a third party by or on behalf of the Company or its Affiliates in a country after Regulatory Approval has been
achieved for such Product in such country. For greater certainty, sales for test marketing, sampling and promotional uses, clinical
trial purposes or compassionate or similar use shall not be considered to constitute a First Commercial Sale, so long as the Product
is provided free of charge, or at or below cost.

 

    	- Exhibit A-1-

    	 

    

 

“Holder”
shall mean the owner of the Series A Convertible Preferred Stock.

 

“Investor”
mean the holder of Participating Royalty Interests.

 

“Licensing
Proceeds” means all cash received by the Company and its Affiliates from third party licensees or partners with
respect to licensing or partnering arrangements with respect to a Product, including, without limitation, (i) royalties based
on sales of Products by third party licensees or their sublicensees; (ii) any licensing fees (including, without limitation, upfront
fees) for rights to develop or commercialize Products, or other payments in connection with the licensing of rights with respect
to Products; (iii) milestone payments (including without limitation, those based on development, regulatory or commercialization
milestones for Products); and (iv) research and development funding.

 

“Mandatory
Conversion” means the event, on the Mandatory Conversion Date, pursuant to which each outstanding share of Series
A Convertible Preferred Stock will automatically convert into such number of fully paid and non-assessable shares of Common Stock
as is determined by dividing the Stated Value by the Conversion Price in effect on the Mandatory Conversion Date.

 

“Mandatory
Conversion Date” means the sooner to occur of (i) December 19, 2019 or (ii) the effective date set forth in the
Company Conversion Notice.

 

“Net
Sales” means for any period, the gross amount invoiced by the Company and its Affiliates for the sale of Products,
(including, without limitation, third party agents, distributors and wholesalers), less the total of the following, to the extent
applicable:

 

	 	(i)	trade,
    cash and/or quantity discounts not already reflected in the amount invoiced;
	 	 	 
	 	(ii)	all
    excise, sales and other consumption taxes (including VAT) and custom duties, whether or not specifically identified as such
    in the invoice to the third party;
	 	 	 
	 	(iii)	freight,
    distribution, insurance and other transportation charges, whether or not specifically identified as such in the invoice to
    the third party;
	 	 	 
	 	(iv)	amounts
    repaid or credited by reason of rejections, defects or returns or because of chargebacks, retroactive price reductions, refunds
    or billing errors;
	 	 	 
	 	(v)	any
    royalty amounts or license fees payable by the Company to a non-Affiliate third party for access to, or licensing in of, such
    non-Affiliate third party’s intellectual property rights for use or exploitation of the Products; and
	 	 	 
	 	(vi)	rebates
    and similar payments made with respect to sales paid for or reimbursed by any governmental or regulatory authority such as,
    by way of illustration, United States Federal or state Medicaid, Medicare or similar state program or equivalent foreign governmental
    program.

 

    	- Exhibit A-2-

    	 

    

 

For
purposes of determining Net Sales, “sale” will not include transfers or dispositions for charitable, promotional,
pre-clinical, clinical, regulatory or governmental purposes. “Net Sales” also excludes all Licensing Proceeds received
by the Company and its Affiliates from third party licensees to the extent that a royalty payment has otherwise been made with
respect to such Licensing Proceeds.

 

“Participating
Royalty Interests” shall mean (i) for each Holder the number of shares of Series A Convertible Preferred Stock held
on the applicable Record Date, and (ii) for all Holders in the aggregate the number of shares of Series A Convertible Preferred
Stock held by all Holders on the applicable Record Date.

 

“Patent”
shall mean all national, regional, and international (a) issued patents, including without limitation utility patents,
design patents, and utility models; (b) pending patent applications (whether provisional or non-provisional); (c) divisionals,
continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing,
and patents resulting from any opposition or post-grant proceedings, including without limitation post-grant review, covered business
method patent review, inter partes review, and derivation proceedings; and (d) any other forms of governmental authority issued
rights substantially similar to any of the foregoing.

 

“Person”
means an individual, entity, corporation, partnership, association, limited liability company, limited liability partnership,
joint-stock company, trust or unincorporated organization.

 

“Preferred
Stock” means the Company’s preferred stock, par value $0.0001 per share, and stock of any other class of securities
into which such securities may hereafter be reclassified or changed into.

 

“Private
Placement Offering” means only that private placement offering of Units conducted pursuant to the Confidential Private
Placement Memorandum of the Company, dated November 30, 2016.

 

“Product”
means either (i) the Pure-Vu system, including disposables, parts, and services or (ii) any other system or device that is covered
by a Patent issued to or issuable to the Company as of December 20, 2016 (the date the Company’s Certificate of Designation
was filed with the Secretary of State of the State of Delaware).

 

“Record
Date” means the third Business Day prior to the applicable date, as determined in Section (c) of this Exhibit A,
on which a Royalty Amount is payable by the Company.

 

“Regulatory
Approval” means the approval of the Company’s Pure-Vu system product candidate by the U.S. Food and Drug
Administration or the European Medicines Agency.

 

“Royalty
Amount” shall have the meaning set forth in Section (b) of this Exhibit A.

 

    	- Exhibit A-3-

    	 

    

 

“Royalty
Amount Per Share” shall be expressed as a dollar amount and shall be equal to the Royalty Amount divided by the
aggregate Participating Royalty Interests on the applicable Record Date.

 

“Royalty
Term” means, with respect to each Product, on a country by country basis in each country, commencing on the First
Commercial Sale of the Product, if the Company is commercializing the Product directly, or the date the Company enters into a
licensing agreement or partnering agreement for such Product until the last of:

 

	 	(i)	the
    expiration of the last to expire of the Valid Claims covering such Product in such country; or
	 	 	 
	 	(ii)	the
    expiration of any regulatory exclusivity period covering such Product in such country.

 

For
clarity, by way of example, the Royalty Term in the United States extends to October 2026 as of the effective date of the Certificate
of Designation, which period may be altered by the prosecution of the Company’s patent claims and new patent filings from
time-to-time.

 

“Series
A Convertible Preferred Stock” means the series of Preferred Stock, $0.0001 par value per share, designated by the
Company’s Certificate of Designation, as filed with the Secretary of State of the State of Delaware on December 20, 2016.

 

“Stated
Value” means $5.00 per share.

 

“Units”
means the units consisting of (i) three-quarter (3/4) of a share of Common Stock, and (ii) one-quarter (1/4) a share of Series
A Convertible Preferred Stock offered pursuant to the Private Placement Offering.

 

“Valid
Claim” means a claim (i) of an issued and unexpired United States Patent that has not been revoked or held permanently
unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed
within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through re-issue or disclaimer
or otherwise, or (ii) of any patent application included that has not been cancelled, withdrawn or abandoned or been pending for
more than six (6) years.

 

Section
(b) Royalties. During the Royalty Term, the Company will pay to the Holders, with the allocation between Holders determined
as set forth in Section (e) of this Exhibit A, in aggregate, a royalty in an amount (referred to as the “Royalty Amount”)
equal to:

 

	Company Commercializes
    Product Directly	 	The Rights to Commercialize
    the Product is Sublicensed by Company to a third-party
	3.0% of Net Sales, subject in all cases for
    all Products in any calendar year up to $30,000,000.	 	5.0% of any Licensing Proceeds, subject in all
    cases for all Products in any calendar year up to $30,000,000.

 

    	- Exhibit A-4-

    	 

    

 

Section
(c) Timing of Royalty Payments. With respect to Products that the Company commercializes directly, royalty payments, if
any, will be paid annually 15 Business Days after the issuance of the Company’s audited financial statements for the prior
year. With respect to Products that the Company sublicenses or otherwise disposes of to a third-party, royalty payments, if any,
will be paid 10 business days after the end of the applicable quarter in which such Licensing Proceeds were received by the Company.
However, all royalty payments shall be accrued by the Company until 15 Business Days after the issuance of the Company’s
audited financial statements for the earlier of (i) the calendar year in which Net Sales exceed $15 million or Licensing Proceeds
exceed $2.5 million, or (ii) the year ended December 31, 2019, at which time all accrued royalties shall be paid in a lump sum
along with the regular royalty payments and subsequent royalty payments will be made irrespective of the amount of annual Net
Sales or Licensing Proceeds.

 

Section
(d) Vesting. The shares of Series A Convertible Preferred Stock will be immediately vested upon issuance. If a Holder elects
to convert all of its Series A Convertible Preferred Stock into Common Stock, pursuant to Section (a) of this Exhibit A, prior
to the Mandatory Conversion Date, the Holder will forfeit any and all rights to future Royalty Payment Rights, if any. If a Holder
elects to convert a portion but not all of its Series A Convertible Preferred Stock into Common Stock at any time prior to the
Mandatory Conversion Date, such Holder will forfeit any rights to future Royalty Payment Rights, if any, with respect to such
converted shares.

 

Section
(e) Allocation of Royalty Payment. Once the Royalty Amount has been calculated as set forth in Section (b) of this Exhibit
A, the royalty payable to each Investor shall be calculated as follows:

 

(i)
Prior to the three year anniversary of the effective date of the Certificate of Designation, the royalty payable to each Investor
will be equal to the Royalty Amount Per Share multiplied by the number of Participating Royalty Interests held by Investor
on the applicable Record Date

 

(ii)
On or after the three year anniversary of the effective date of the Certificate of Designation, the royalty payable to each Investor
will be calculated by multiplying the Royalty Amount by the percentage set forth in each Investor’s Royalty Payment Rights
certificate. The percentage set forth in each Royalty Payment Rights certificate will be calculated as follows:

 

	Number
    of Participating Royalty Interests Held by Investor after the three year anniversary of the effective date of the Certificate
    of Designation
	Total Participating
    Royalty Interests after the three year anniversary of the effective date of the Certificate of Designation

 

Section
(f) Separability/Effect of Transfer. The Royalty Payment Rights may not be transferred separate from the shares of Series
A Convertible Preferred Stock until after the three year anniversary of the effective date of the Certificate of Designation.
Upon the three year anniversary of the effective date of the Certificate of Designation, the Company will issue a certificate
representing the Royalty Payment Rights to each Holder of shares of Series A Convertible Preferred Stock at such date. Such Royalty
Payment Rights certificate shall set forth the applicable percentage of any Royalty Amounts payable by the Company on or after
the date of issuance of such Royalty Payment Rights certificate and the other applicable terms for such Royalty Payment Rights.
Following the issuance of Royalty Payment Rights certificate, the Holders of shares of Series A Convertible Preferred Stock will
not have any Royalty Payment Rights resulting from their ownership of such shares of Series A Convertible Preferred Stock and
the Royalty Payment Rights shall soley be evidenced by the Royalty Payment Rights certificate and may be transferred, subject
to the availability of an exemption from registration under applicable state and federal securities laws, separately from the
shares of Series A Convertible Preferred Stock. For all transfers made prior to the three year anniversary of effective date of
the Certificate of Designation, the Royalty Payment Rights will follow any transfer of the shares of Series A Convertible Preferred
Stock. If a Holder transfers any of its shares of Series A Convertible Preferred Stock prior to the three year anniversary of
the effective date of the Certificate of Designation, the transferee of such shares will have thereafter the Royalty Payment Rights
related to the shares of Series A Convertible Preferred Stock it receives, and the transferring Holder will thereafter no longer
have any Royalty Payment Rights in respect of the shares of Series A Convertible Preferred Stock it transferred.

 

Section
(g) Unsecured Obligations. The Royalty Payment Rights are unsecured obligations of the Company.

 

Section
(h) Amendments, Modifications and Waivers. Prior to the Mandatory Conversion Date, all modifications, amendments or waivers
to the Royalty Payment Rights shall require the written consent of the Company and the Holders of the majority of the then outstanding
shares of Series A Convertible Preferred Stock. Following the issuance of the Royalty Payment Rights certificate, all modifications,
amendments or waivers to the Royalty Payment Rights shall require the written consent of the Company and the holders of Royalty
Payment Rights certificates representing, in the aggregate, the right to receive at least 50% of any Royalty Amount payable by
the Company.

 

    	- Exhibit A-5-

    	 

    

 

EXHIBIT
B

 

FORM
OF ASSIGNMENT

 

FOR
VALUE RECEIVED, ___________________________________ hereby sells, assigns and transfers to each assignee set forth below all of
the rights of the undersigned under the Certificate (as defined in and evidenced by the attached Certificate) to acquire the percentage
of the Certificate Payment set opposite the name of such assignee below and in and to the foregoing Certificate with respect to
said acquisition rights:

 

	Name
    of Assignee	 	Address	 	Certificate
    Payment Percentage
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

If
the total above does not represent all of the Certificate Payment evidenced by the foregoing Certificate, the undersigned requests
that a new Certificate evidencing the right to acquire the remaining portion of the Certificate Payment not so assigned by issued
in the name of and delivered to the undersigned.

 

Name
of Holder (print): _____________________________

(Signature):_______________________________________

	 	(By:)	 
	 	(Title:)	 
	 	Dated:

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