Document:

Exhibit 4.15

 

EXECUTION COPY

 

 

SECURITIES PURCHASE AGREEMENT

 

by and among

 

ITAMAR MEDICAL LTD.

 

and

 

THE PURCHASERS IDENTIFIED ON THE SIGNATURE
PAGES HERETO

 

January 28, 2019

 

 

     

     

    

 

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SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of January 28, 2019, by and among Itamar Medical Ltd., an Israeli company
(the “Company”), and each purchaser identified on the signature pages hereto (each, a “Purchaser”
and collectively the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below) and
Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchasers, and the Purchasers, severally and not
jointly, desire to purchase from the Company, in the aggregate, the number of ADSs (as defined below) set forth on the signature
page(s) hereto on the Closing Date (as defined below).

 

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

 

ARTICLE
I.

DEFINITIONS

 

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

 

“ADR Program”
means the Level II American Depositary Receipts facility that the Company intends to establish on Nasdaq by way of entering into
the Deposit Agreement.

 

“ADSs”
means the American Depositary Shares of the Company, each representing thirty (30) Ordinary Shares, pursuant to the ADR Program.

 

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

 

“Business
Day” means any day other than a Friday, Saturday, Sunday or other day on which the commercial banks in New York, New
York or Israel are authorized or required by law or executive order to be closed.

 

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

 

“Deposit Agreement”
means the deposit agreement that the Company intends to enter into with the Depositary and the owners and holders of ADSs from
time to time, as such agreement may be amended or supplemented.

 

“Depositary”
means The Bank of New York Mellon, or such other reputable ADR deposit agent.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company attached hereto and incorporated herein.

 

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

 

“ISA”
means the Israeli Securities Authority.

 

     

     

    

 

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“ISL”
means the Israeli Securities Law, 1968, as amended.

 

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

 

“Nasdaq”
means The Nasdaq Capital Market, The Nasdaq Global Market, or The Nasdaq Global Select Market.

 

“Ordinary
Shares” means the ordinary shares of the Company, NIS 0.01 par value each.

 

“Ordinary
Shares Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time
Ordinary Shares or ADSs, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares
or ADSs.

 

“Per ADS Closing
Purchase Price” means (x) the average of the closing sale prices of the Ordinary Shares on the TASE for the 15 consecutive
Trading Days prior to the Closing Date (i.e., excluding the Closing Date), multiplied by (y) 30 (being the exchange ratio of the
ADSs), divided by (z) the $/NIS exchange ratio published by the Bank of Israel on the last Business Day prior to January 16, 2019.

 

“Per ADS Purchase
Price” equals $9.55, subject to adjustment (i) for reverse and forward stock splits, stock dividends, stock combinations
and other similar transactions of the Ordinary Shares or ADSs that occur after the date of this Agreement and before the Closing
Date and (ii) in accordance with Sections 4.10 or 4.11 hereof, if applicable.

 

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

 

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

 

“Registration
Statement” means the registration statement on Form 20-F of the Company that it filed with the Commission in order to
register the ADSs underlying the ADR Program (and, in connection therewith, the Ordinary Shares underlying the ADSs).

 

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

 

“Securities”
means the ADSs issued or issuable to each Purchaser pursuant to this Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Subscription
Amount” means, as to each Purchaser, the amounts set forth below such Purchaser’s signature block on the signature
page hereto, in United States dollars and in immediately available funds.

 

“TASE”
means the Tel Aviv Stock Exchange.

 

“Trading Day”
means a day on which the Ordinary Shares are traded on the TASE.

 

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“Trading Market”
means each of the following markets or exchanges on which the Ordinary Shares or ADS is listed or quoted for trading on the date
in question: OTCBB, the New York Stock Exchange, The Nasdaq or TASE.

 

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

 

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

 

ARTICLE
II.

PURCHASE AND SALE

 

2.1           Closing.
On the Closing Date, each and every Purchaser shall purchase from the Company, severally and not jointly with the other Purchasers,
and the Company shall issue and sell to each Purchaser, a number of ADSs equal to such Purchaser’s Subscription Amount divided
by the Per ADS Purchase Price. The aggregate Subscription Amounts for ADSs sold hereunder shall be the total Subscription Amounts
set forth on the signature page(s) hereto (the “Aggregate Purchase Price”). The closing of such sale and purchase
(the "Closing") shall take place at 10:00 a.m., NY time, on the Business Day immediately following the satisfaction
or waiver (by the applicable party) of all the conditions set forth in Sections 2.3(a) and 2.3(b), or such other date following
the satisfaction or waiver (by the applicable party) of all such conditions as the Company and the Purchasers representing a majority
of the Aggregate Purchase Price (the “Majority Purchasers”) agree in writing (the "Closing Date"),
at the offices of the Company or such other location as the Company and the Majority Purchasers shall mutually agree.

 

2.2           Deliveries.

 

(a)          On
the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser a copy of duly executed irrevocable instructions
to the Depositary instructing it to deliver, on an expedited basis, a certificate evidencing a number of ADSs equal to such Purchaser’s
Subscription Amount divided by the Per ADS Purchase Price, registered in the name of such Purchaser.

 

(b)          On
the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company such Purchaser’s Subscription Amount
by wire transfer to the account as specified in writing by the Company.

 

(c)          On
the Closing Date, each of the non-Israeli Purchasers who, as of the Closing, will hold Ordinary Shares and/or ADSs representing
5% or more of the outstanding Ordinary Shares of the Company (on an as converted basis), shall deliver to the Company an executed
undertaking towards the Israeli Innovation Authority (formerly, the Office of the Chief Scientist) of the Israeli Ministry of Economy
(the “OCS”) in a customary form.

 

(d)          On
the Closing Date, Company’s counsel shall have delivered to the Purchasers a legal opinion, addressed to the Purchasers,
in a form reasonably acceptable to the Majority Purchasers.

 

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2.3           Closing
Conditions.

 

(a)          Purchasers’
Closing Conditions. The obligation of each Purchaser to consummate the transactions contemplated by this Agreement at the Closing,
as provided in Section 2.1 hereof, shall be subject, in the absence of a written waiver by the Majority Purchasers, to the satisfaction,
prior or at the Closing, of the following conditions:

 

(i)          the
representations and warranties of the Company contained in this Agreement shall be true in all material respects on and as of the
Closing Date as though such warranties and representations were made at and as of such date;

 

(ii)         the
Company shall have performed and complied in all material respects with all agreements, covenants and conditions contained in this
Agreement which are required to be performed or complied with by the Company prior to or on the Closing Date;

 

(iii)        there
shall be no effective injunction, writ, preliminary restraining order or any order of any nature issued by a court of competent
jurisdiction directing that the transactions provided for herein or any of them not be consummated as herein provided;

 

(iv)        the
Registration Statement has been declared effective by the Commission and the ADSs shall have been approved for trading on Nasdaq
and such trading shall commence not later than the Closing Date (the “Nasdaq Listing Condition”);

 

(v)         The
Company shall have delivered to each Purchaser a lock-up agreement, substantially in the form attached hereto as Exhibit
A executed and delivered by each of the Persons (constituting the officers and directors of the Company) listed on
Section 2.3(a) of the Disclosure Schedules (collectively, the "Lock Up Agreements");

 

(vi)        there
shall have been no Material Adverse Effect with respect to the Company since the date hereof that is continuing; and

 

(vii)       The
Other Purchasers (as defined below) shall have entered into the Other SPAs (as defined below) for investment in the ADSs or Ordinary
Shares for aggregate gross proceeds to the Company, including the investment by the Purchasers contemplated hereunder, of no less
than $11,500,000 (the “Minimum Round Amount”) and not more than $18,000,000 (the “Maximum Round Amount”),
and the closing of such transactions shall have occurred prior to, or simultaneously with, the Closing, such that upon the Closing,
the Company shall have received aggregate gross proceeds of not less than the Minimum Round Amount and not more than the Maximum
Round Amount.

 

(b)          Company’s
Closing Conditions. The obligation of the Company to consummate the transactions contemplated by this Agreement at the Closing,
as provided in Section 2.1 hereof, shall be subject, in the absence of a written waiver by the Company, to the satisfaction, prior
or at the Closing, of the following conditions:

 

(i)          the
representations and warranties of each of the Purchasers contained in this Agreement shall be true on and as of the Closing Date
in all material respects as though such warranties and representations were made at and as of such date;

 

(ii)         each
Purchaser shall have performed and complied in all material respects with all agreements, covenants and conditions contained in
this Agreement which are required to be performed or complied with by it prior to or on the Closing Date;

 

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(iii)        there
shall be no effective injunction, writ, preliminary restraining order or any order of any nature issued by a court of competent
jurisdiction directing that the transactions provided for herein or any of them not be consummated as herein provided;

 

(iv)        receipt
by the Company of the entire Aggregate Purchase Price; and

 

(v)         the
Nasdaq Listing Condition has been satisfied.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as otherwise set forth in the Disclosure Schedules attached hereto, which Disclosure
Schedules shall be deemed a part hereof, the Company hereby represents and warrants as of the date hereof and as of the Closing
Date to each Purchaser as follows:

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Section 3.1(a) of the Disclosure Schedules (the
“Subsidiaries”). The Company owns, directly or indirectly, all of the capital stock or other equity interests
of each Subsidiary free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase such securities.

 

(b)          Organization
and Qualification. Each of the Company and the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and, where applicable, in good standing, under the laws of the jurisdiction of its incorporation or organization (as applicable),
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted
except where failure to be so qualified, organized or have such power and authority would not reasonably be expected to have a
Material Adverse Effect (as defined below). Neither the Company nor any Subsidiary is in material violation or default of any of
the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.
Each of the Company and the Subsidiaries is duly qualified to conduct business and, where applicable, is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it
makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would
not have or reasonably be expected to result in (x) a material adverse effect on the legality, validity or enforceability of any
Transaction Document, or (y) a material adverse effect on the results of operations, assets, business or financial condition of
the Company and the Subsidiaries, taken as a whole, provided, however, that in no event shall any of the following, alone or in
combination, be deemed to constitute, nor shall any of the following be taken into account in determining whether there has been
or will be, a Material Adverse Effect: (i) any change in the Company’s stock price or trading volume in and of itself
(but not excluding the underlying cause of any such change pursuant to this clause (i)); (ii) any change, event, violation,
inaccuracy, circumstance or effect that results from changes, events or circumstances affecting (A) any of the industries
in which the Company operates generally, or (B) general economic conditions (which changes, events or circumstances in the
case of (A) and (B) do not disproportionately affect such entity); (iii) any change, event, violation, inaccuracy,
circumstance or effect resulting from acts of war or terrorism or any escalation thereof in and of itself (but excluding any changes
or effect uniquely on or uniquely with respect to the Company resulting from any such act pursuant to this clause (iii); or
(iv) any change, event, violation, inaccuracy, circumstance or effect that results from any action or inaction taken by the
Purchasers (any of (x) or (y), a “Material Adverse Effect”), and to the knowledge of the Company, no Proceeding
has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power
and authority or qualification.

 

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(c)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to execute and deliver this Agreement and to consummate
the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations
thereunder. The execution, delivery and performance by the Company of each of the Transaction Documents to which it is a party
and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part
of the Company and no further action is required by the Company in connection therewith other than in connection with the Required
Approvals. Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Company
enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) as the rights
to indemnification or contribution hereunder and thereunder may be limited by applicable law.

 

(d)          No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party, the
issuance and sale of the ADSs and the consummation by the Company of the other transactions contemplated thereby do not and will
not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s memorandum or articles of association
or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals, conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument evidencing a Company or Subsidiary debt or other understanding to which the Company or any Subsidiary is a party or
by which any property or material asset of the Company or any Subsidiary is bound, or (iii) subject to obtaining the Required Approvals,
conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of
any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws
and regulations), or by which any property or asset of the Company or a Subsidiary is bound, or (iv) violate the terms of any agreement
by which the Company or any Subsidiary is bound or to which any property or asset of the Company or any Subsidiary is bound; except
in the case of each of clauses (ii), (iii) and (iv), such as would not have or reasonably be expected to result in a Material Adverse
Effect.

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings
required pursuant to Section 4.4 of this Agreement, (ii) the Nasdaq Listing Condition, (iii) application(s) to the Nasdaq
Stock Market for the listing of the ADSs issuable hereunder for trading thereon, commencing not later than the Closing Date, in
the time and manner required thereby, (iv) the filing of Form D with the Commission and such filings as are required to be made
under applicable securities laws, (v) notice to the OCS of the transactions contemplated hereunder, and (vi) the approvals and
notices set forth on Section 3.1(e) of the Disclosure Schedules (collectively, the “Required Approvals”).

 

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(f)          Issuance
of the Securities. The ADSs (including the Ordinary Shares underlying the ADSs) issuable hereunder have been duly authorized
and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, fully
paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in
the Transaction Documents and under applicable laws. The Company has reserved from its duly authorized capital stock the maximum
number of Ordinary Shares issuable pursuant to this Agreement and the ADSs. 

 

(g)          Capitalization.
Since September 30, 2018, the Company has not issued any capital stock other than pursuant to the exercise of employee stock options
under the Company’s stock option plans, the issuance of shares of Ordinary Shares to employees pursuant to the Company’s
employee stock option plans and pursuant to the conversion or exercise of outstanding Ordinary Shares Equivalents outstanding.
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents. The authorized share capital of the Company consists of 750,000,000 Ordinary
Shares. As of the date hereof, except (i) as a result of the purchase and sale of the Securities hereunder (as well as any Shares
or ADSs issuable under the Other SPAs), (ii) the outstanding Ordinary Shares set forth in Section 3.1(g) of the Disclosure
Schedules, and (iii) the outstanding Ordinary Shares Equivalents set forth in Section 3.1(g) of the Disclosure Schedules,
there are no outstanding Ordinary Shares, options, warrants, script rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right
to subscribe for or acquire, any Ordinary Shares, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional Ordinary Shares, or securities or rights convertible or exchangeable
into Ordinary Shares. The issue and sale of the Securities will not obligate the Company to issue Ordinary Shares or other securities
to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise,
conversion, exchange or reset price under such securities. All of the outstanding shares of capital stock of the Company are validly
issued, fully paid and nonassessable, have been issued in compliance with all applicable securities laws, and none of such outstanding
shares were issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further
approval or authorization of any shareholder, the Board of Directors of the Company or others is required for the issuance and
sale of the Shares. Except as disclosed in the ISA Reports, there are no shareholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s shareholders.

 

(h)          ISA
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the ISL for the two years
preceding the date hereof (the foregoing materials, including the exhibits thereto, being collectively referred to herein as the
“ISA Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any
such ISA Reports prior to the expiration of any such extension. As of their respective dates, the ISA Reports complied in all material
respects with the requirements of the ISL and the rules and regulations promulgated thereunder, and none of the ISA Reports, when
filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial
statements of the Company included in the ISA Reports comply as to form in all material respects with applicable accounting requirements
and the rules and regulations of the ISA with respect thereto as in effect at the time of filing. Such financial statements have
been prepared in accordance with International Financial Reporting Standards applied on a consistent basis during the periods covered
therein (“IFRS”), except as may be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes required by IFRS, and fairly present in all material respects
the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended in accordance with IFRS, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

 

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(i)          Material
Changes. Since September 30, 2018, except as disclosed in the ISA Reports, (i) there has been no event, occurrence or development
that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not altered its
method of accounting, (iii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) liabilities
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company's financial statements pursuant to IFRS or required to be disclosed in filings made with the ISA, (iv) the Company has
not declared or made any dividend or distribution of cash or other property to its shareholders or purchased, redeemed or made
any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before
the ISA any request for confidential treatment of information.

 

(j)          Litigation.
There is no action, suit, inquiry, notice of violation or proceeding pending or, to the knowledge of the Company, threatened, nor,
to the knowledge of the Company, is any investigation pending or threatened, against the Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal,
state, county, local or foreign) (collectively, an “Action”) which (i) challenges the legality, validity or
enforceability of any of the Transaction Documents or the Securities or (ii) would, if there were an unfavorable decision, have
or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor to the knowledge
of the Company, any director or officer thereof (in his capacity as such), is or has been in the past five years the subject of
any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. 

 

(k)          Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company or any Subsidiary which would reasonably be expected to result in a Material Adverse Effect.

 

(l)          Compliance.
Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received written notice of a claim that it is in default under, any indenture, loan or credit agreement
or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii)
is in violation of any statute, rule or regulation of any governmental authority, except in each case as would not have a Material
Adverse Effect.

 

(m)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the ISA Reports,
except where the failure to possess such permits would not have or reasonably be expected to result in a Material Adverse Effect
(“Material Permits”), and neither the Company nor any Subsidiary has received any written notice of proceedings
relating to the revocation or modification of any Material Permit (i) in the past two years or (ii) which has not been resolved
prior to the date hereof.

 

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(n)          Title
to Assets. The Company and the Subsidiaries have good and marketable title to all real property owned by them, if any, that
is material to the business of the Company and the Subsidiaries and valid title in all personal property owned by them that is
material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do
not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is
neither delinquent nor subject to penalties or that are otherwise would not have or reasonably be expected to result in a Material
Adverse Effect. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all material respects.

 

(o)          Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for use in connection
with their respective businesses as described in the ISA Reports and which the failure to so have would have a Material Adverse
Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received
in the past two years a written notice that the Intellectual Property Rights used by the Company or any Subsidiary violates or
infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no known existing infringement by another Person of any of the Intellectual Property Rights which would have a Material
Adverse Effect.

 

(p)          Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as the Company believes are, given the size and financial condition of the Company, prudent and customary in the
businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

(q)          Transactions
With Affiliates and Employees. Except as set forth in the ISA Reports, none of the officers or directors of the Company and,
to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess
of $150,000 other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred
on behalf of the Company and (iii) for other benefits under benefit or pension plans sponsored by the Company, including without
limitation stock option agreements under any stock option plan of the Company. 

 

(r)          Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by this Agreement. To the knowledge of the Company, the Purchasers shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by this Agreement.

 

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(s)          Private
Placement. Assuming the accuracy of the Purchasers representations and warranties set forth in Section 3.2, and except
for satisfying the Nasdaq Listing Condition, no registration under the Securities Act is required for the offer and sale of the
Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the Securities hereunder does not
contravene the rules and regulations of the Nasdaq Stock Market.

 

(t)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the ADSs, will not be
or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

(u)          Registration
Rights. Except as disclosed in the ISA Reports, no Person has any right to cause the Company to effect the registration under
the Securities Act of any securities of the Company.

 

(v)         Listing
and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received written notice from
the TASE to the effect that the Company is not in compliance with the listing or maintenance requirements of such market. The Company
is currently in compliance with all such listing and maintenance requirements.

 

(w)          Application
of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company's Articles of Association (or similar charter documents) or the laws
of its state of incorporation that is or could reasonably be expected to become applicable to the Purchasers as a result of the
Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without
limitation the Company's issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(x)          Disclosure.
To the Company’s knowledge, neither this Agreement, nor the Disclosure Schedules to this Agreement, contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2
hereof.

 

(y)          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
3.2, neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable
shareholder approval provisions, including, without limitation, under the rules and regulations of any Trading Market.

 

(z)          Solvency.
Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the
proceeds from the sale of the Securities hereunder, the Company's assets do not constitute unreasonably small capital to carry
on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking
into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and
capital availability thereof.

 

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(aa)         Taxes.
Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, (i) the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns
and has paid or accrued all taxes shown as due thereon, and (ii) the Company has no knowledge of a tax deficiency which has been
asserted or threatened against the Company or any Subsidiary.

 

(bb)         General
Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares by any
form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Purchasers and certain
other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

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

 

(dd)         Acknowledgment
Regarding Purchasers’ Purchase of Shares. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby.

 

3.2           Representations
and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows:

 

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

 

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(b)          Investment
Intent. Such Purchaser understands that the Securities are “restricted securities” and have not been registered
(i) under the Securities Act or any applicable state securities law or (ii) until the satisfaction of the Nasdaq Listing Condition,
the Exchange Act, and is acquiring the Securities as principal for its own account and not with a view to or for distributing or
reselling such Securities or any part thereof, except pursuant to sales registered under, or exempted from, the registration requirements
of the Securities Act, and has no arrangement or understanding with any other Persons regarding the distribution of such Securities
provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Securities for any
minimum or other specific term and reserves the right to assign, transfer or otherwise dispose of any of the Securities at any
time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business. The Purchaser is not identified on the specially designated nationals
or other blocked person list or otherwise currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”), and the Purchaser has not, directly or indirectly, used any
funds, or loaned, contributed or otherwise made available such funds to any Subsidiary, joint venture partner or other Person,
in connection with any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for
the purpose of financing the activities of any Person currently subject to, or otherwise in violation of, any U.S. sanctions administered
by OFAC in the last five (5) fiscal years. The Purchaser’s purchase of the Shares hereunder will not violate any money laundering
or similar statutes of any governmental body.

 

(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, at the date hereof it is, and on the Closing Date it
will be, an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities
Act. Such Purchaser is either (i) not, and at the time such Purchaser was offered the Securities, it was not, located in or organized
under the laws of the State of Israel or (ii) if it is or was located in or organized under the laws of the State of Israel, Purchaser
is a “classified investor” as set forth in First Addendum of the ISL. Except as otherwise set forth below the Purchaser’s
name on the signature pages hereto, such Purchaser does not currently hold or beneficially own any Ordinary Shares. The Purchaser
is a resident of the jurisdiction set forth immediately below the Purchaser’s name on the signature pages hereto.

 

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

 

(e)          General
Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

(f)          Purchaser
Acting Individually. Such Purchaser is acting severally as an individual and is not acting together with any other Person or
other Purchaser as a group.

 

(g)          Access
to Information. Such Purchaser acknowledges that (A) it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the ISA Reports and has been afforded (i) the opportunity to ask such questions as it has
deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering
of the Securities and the merits and risks of investing in the Securities; and (ii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment and (B) the Company has or is entering into the Other SPAs with the Other Purchasers (or
may do so in the near future). None of such opportunities, such Purchaser’s inquiries or due diligence investigations
conducted by such Purchaser or its advisors or representatives, if any, shall modify, amend or affect such Purchaser’s (i)
right to rely on the Company’s representations and warranties contained herein, or (ii) rights and remedies hereunder (including
indemnification pursuant hereto). Such Purchaser understands and acknowledges that (i) the Securities are being offered and sold
to it without registration under the Securities Act in a private placement that is intended to be exempt from the registration
provisions of the Securities Act and (ii) the availability of such exemption, depends in part on, and the Company will rely upon
the accuracy and truthfulness of, the foregoing representations and such Purchaser hereby consents to such reliance.

 

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(h)          Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by such Purchaser to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by this Agreement. To the knowledge of such Purchaser, the Company shall have no obligation with respect to any fees or with respect
to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection
with the transactions contemplated by this Agreement.

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Transfer
Restrictions.

 

(a)          Each
Purchaser covenants that the Securities acquired by such Purchaser will be disposed of by such Purchaser only pursuant to an effective
registration statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption
from the registration requirements of the Securities Act, and in compliance with applicable statesecurities laws.  Subject
to Sections 4.1(c) and (d), in connection with any transfer of Securities that bears the restrictive legend set forth
in Section 4.1(b), other than pursuant to an effective registration statement or to the Company, the Company may require the transferor
to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

 

(b)         The
Purchasers agree to the imprinting, until no longer required by this Section 4.1, of the following legend on any
certificate or other instrument evidencing any of the Purchased Securities:

 

THESE SECURITIES
(INCLUDING SECURITIES INTO WHICH SUCH SECURITIES ARE CONVERTIBLE INTO) HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE
SKY LAWS. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER
LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The Company acknowledges
and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer
or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor”
as defined in Rule 501(a) under the Securities Act, and, if required under the terms of such arrangement, such Purchaser may transfer
pledged or secured Securities to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval
of the Company, and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection
therewith.  Further, no notice shall be required of such pledge.  At the applicable Purchaser’s expense, the Company
will execute and deliver such reasonable documentation as a pledgee or secured party of Purchased Securities may reasonably request
in connection with a pledge of the Securities.

 

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(c)         Certificates
evidencing the Securities shall not contain any legend (including the legend set forth in Section 4.1(b) hereof),
(i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any
sale of such Securities pursuant to Rule 144, (iii) if such Securities are eligible for sale under Rule 144 without volume or manner-of-sale
restrictions and the Company is in compliance with the current public information required under Rule 144, (iv) if such Securities
are eligible for sale under Rule 144 without the requirement for the Company to be in compliance with the current public information
required under Rule 144 and without volume or manner-of-sale restrictions, or (v) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). 
The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent if required by the transfer
agent to effect the removal of the legend hereunder.  If the Securities may be sold under Rule 144 and the Company is then
in compliance with the current public information required under Rule 144, or if the Securities may be sold under Rule 144 without
the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Securities
or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission) then such Securities shall be issued free of all legends. The Company
agrees that at such time as such legend is no longer required under this Section 4.1(c), it will, no later than the
earlier of (i) two (2) Business Days and (ii) the number of Business Days comprising the Standard Settlement Period (as defined
below) following the delivery by a Purchaser to the Company or the transfer agent of a certificate representing the Securities
issued with a restrictive legend (such third Business Day, the “Legend Removal Date”), deliver or cause to be
delivered to such Purchaser Securities that are free from all restrictive and other legends (subject to the remainder of this Section
4.1(c)).  The Company may not make any notation on its records or give instructions to the transfer agent that enlarge
the restrictions on transfer set forth in this Section 4.1.  Securities subject to legend removal hereunder shall
be transmitted by the transfer agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository
Trust Company System (“DTC”) through its Deposit/Withdrawal at Custodian system as directed by such Purchaser. 
As used herein, “Standard Settlement Period” means the standard settlement period for equity trades by U.S.
broker-dealers, expressed in a number of Business Days, as in effect on the date that Securities are delivered to the Company or
the transfer agent for removal of the restrictive legend.

 

(d)           In
addition to a Purchaser’s other available remedies, the Company shall pay to such Purchaser, in cash, (i) as partial liquidated
damages and not as a penalty, for each $1,000 of Securities (based on the VWAP of the ADSs on the date such Securities are submitted
to the transfer agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $10 per Business
Day (increasing to $20 per Business Day five (5) Business Days after such damages have begun to accrue) for each Business Day after
the Legend Removal Date until such certificate is delivered without a legend and (ii) if the Company fails to (a) issue and deliver
(or cause to be delivered) to a Purchaser by the Legend Removal Date a certificate representing the Securities so delivered to
the Company by such Purchaser that is free from all restrictive and other legends and (b) if after the Legend Removal Date such
Purchaser purchases (in an open market transaction or otherwise) ADSs to deliver in satisfaction of a sale by such Purchaser of
all or any portion of the number of ADSs, or a sale of a number of ADSs equal to all or any portion of the number of ADSs that
such Purchaser was entitled to receive from the Company without any restrictive legend, then, an amount equal to the excess of
such Purchaser’s total purchase price (including brokerage commissions and other reasonable out-of-pocket expenses, if any)
for the ADSs so purchased (including brokerage commissions and other out-of-pocket expenses, if any) over the product of (A) such
number of ADSs that the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied by (B) the lowest
closing sale price of the ADSs on any Business Day during the period commencing on the date of the delivery by such Purchaser to
the Company of the applicable ADSs (as the case may be) and ending on the date of such delivery and payment under this clause (ii).
For any partial liquidated damages to be paid pursuant to this Section, the Company may pay such damages solely in the form of
ADSs, the number of which shall be determined by dividing (x) the amount of damages payable pursuant to this Section by (y) the
closing sale price of an ADS on the payment date.

 

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(e)         Each
Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell all Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance
with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon
this understanding.

 

4.2           Furnishing
of Information. As long as any Purchaser owns Securities but not later than five (5) years following the Closing, the Company
covenants to timely file (without giving effect to any extensions that may be obtained in respect thereof) all reports required
to be filed by the Company after the date hereof pursuant to the Exchange Act, and the Company shall not terminate the registration
of the ADSs under the Exchange Act or otherwise terminate its status as an issuer required to file reports under the Exchange Act,
even if the securities laws would otherwise permit any such termination. Without limiting the foregoing, as long as any Purchaser
owns Securities but not later than five (5) years following the Closing, the Company will prepare and furnish to the Purchasers
(upon receipt of a written request) and make publicly available in accordance with Rule 144(c) such information as is required
for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it will take such further action as
any holder of Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such
Securities without registration under the Securities Act pursuant to the exemption provided by Rule 144.

 

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

 

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4.4           Securities
Laws Disclosure; Publicity. The Company shall, by 8:00 a.m. Eastern time on the Trading Day following (i) the date hereof,
issue a press release and file a public report with the ISA, disclosing this Agreement and the material terms of the transactions
contemplated hereby, including the identity of the parties, and (ii) the Closing Date, issue a press release and file a public
report with the ISA, disclosing the Closing shall have occurred and file with the Commission via EDGAR a Current Report on Form
6-K (the “6-K Filing”) describing the consummation of the transactions contemplated hereby and disclosing any
other presently material non-public information (if any) provided or made available to any Purchaser (or any such Purchaser’s
agents or representatives) on or prior to the filing of the 6-K Filing. From and after the filing of the 6-K Filing, the Company
shall have disclosed all material, non-public information (if any) provided or made available to any Purchaser (or any Purchaser’s
agents or representatives) by the Company or any of its respective officers, directors, employees, Affiliates or agents in connection
with the transactions contemplated by this Agreement or otherwise on or prior to the Closing Date.  Notwithstanding any affirmative
disclosure obligations of the Company pursuant to the terms of this Agreement or anything else to the contrary contained herein
or therein, (a) subject to clause (b) below, each of the Company shall not, and shall cause each of its officers, directors, employees
and agents to not on behalf of the Company, provide any Purchaser with any material non-public information with respect to the
Company from and after the filing of the 6-K Filing with the SEC without the express prior written consent of such Purchaser, and
(b) in the event that the Company believes that a notice or communication to any Purchaser contains material, nonpublic information
with respect to the Company, the Company shall so indicate to such Purchaser prior to the delivery of such notice or communication,
and such indication shall provide such Purchaser the means to refuse to receive such notice or communication.  In the absence
of any such indication by the Company to a Purchaser, such Purchaser shall be allowed to presume that all matters relating to such
notice or communication do not constitute material nonpublic information with respect to the Company. Without limiting the forgoing,
neither any Purchaser nor any employee, partner, officer or Affiliate of any Purchaser shall have any duty of trust or confidence
with respect to, or any obligation not to trade in any securities on the basis of, any material nonpublic information regarding
the Company, any of its subsidiaries or Affiliates or any of their respective property, assets, securities or businesses provided
by, or on behalf of, the Company, any of its subsidiaries, any of their respective Affiliates or any of their respective officers,
directors, employees, attorneys, representatives or agents, in violation of any of the covenants set forth in this Section 4.4
or that is otherwise possessed (or continued to be possessed) by any Purchaser Party (as defined below) as a result of a breach
of any of the covenants set forth in this Section 4.4.

 

Other than the foregoing (and, in the case
of the Company, as part of the Registration Statement to the extent required by applicable securities laws), neither the Company
nor any Purchaser shall issue any press release or public report with respect to the transaction contemplated hereby or otherwise
make any such public statement without the prior consent of the Company, with respect to any press release or public report of
any Purchaser, or without the prior consent of the Majority Purchasers, with respect to any press release or public report of the
Company, which consent shall not unreasonably be withheld, except if such disclosure is required by law (including applicable securities
laws and stock exchange rules), in which case the disclosing party shall promptly provide the other party with prior notice of
such public statement or communication.

 

4.5           Shareholders
Rights Plan. No claim will be made or enforced by the company or, to the knowledge of the Company, any other Person that any
Purchaser is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect on the
date hereof, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Securities under the Transaction Documents.

 

4.6           Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for general corporate purposes,
including, but not limited to, in connection with sales and marketing expenses and research and development, and strategic purposes,
including, but not limited to, acquisitions, joint ventures and other similar transactions.

 

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4.7           Indemnification
of Purchasers. 

 

(a)          Subject
to the provisions of this Section, the Company will indemnify and hold the Purchasers and their directors, officers, shareholders,
partners, members, managers, employees and agents (each, a “Purchaser Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including without limitation all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (“Damages”)
that any such Purchaser Party may suffer or incur as a result of or relating to (A) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (B) any action instituted
against (i) a Purchaser, or any of them or their respective Affiliates or (ii) a Purchaser Party, by any shareholder of the Company
who is not an Affiliate of such Purchaser or Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of such Purchaser’s representation, warranties, covenants or agreements
under the Transaction Documents or any agreements or understandings such Purchaser or a Purchaser Party may have with any such
shareholder or any violations by the Purchaser or a Purchaser Party of state or federal securities laws or any conduct by such
Purchaser or a Purchaser Party which constitutes fraud, gross negligence, willful misconduct or malfeasance) (clauses (A) and (B)
together, “Indemnifiable Claims”). 

 

(b)          If
any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Section, such
Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof
with counsel of its own choosing. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (i) the employment thereof has been specifically authorized by the Company in writing, or (ii) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel. 

 

(c)          The
Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by such Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to such Purchaser Party’s breach of any of
the representations, warranties, covenants or agreements made by the Purchasers in this Agreement or in the other Transaction Documents.

 

(e)          The
parties hereto agree that (i) irreparable harm would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached, and (ii) money damages or other legal remedies would not be
an adequate remedy for any such harm. Each of the parties shall have all rights and remedies set forth in this Agreement and the
other Transaction Documents and all rights and remedies that such parties have been granted at any time under any other agreement
or contract and all of the rights that such parties have under any applicable law. Any Person having any rights under any provision
of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security or proving actual
damages), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted
by law.

 

4.8           Listing
of ADSs. Subject to Closing, the Company hereby agrees to use commercially reasonable efforts to maintain the listing of the
ADSs on Nasdaq, and as soon as reasonably practicable following the Closing to list all of the ADSs issued hereunder thereon. The
Company further agrees, if the Company applies to have the ADSs traded on any other Trading Market, it will use reasonable commercial
efforts to include in such application all of the ADSs issued hereunder, and will take such other action as is reasonably necessary
to cause all of the ADSs to be listed on such other Trading Market as promptly as possible. 

 

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

 

    	 	18	 

     

    

 

EXECUTION COPY

 

4.10         Future
Financing Restriction.

 

(a)          From
the date hereof until the earlier of (i) 180 days after the Closing Date, and (ii) an initial firm commitment underwritten public
offering of the ordinary shares or ADSs on Nasdaq, the Company shall not, without the prior written consent of the Required Purchasers
(as defined below), offer, sell, grant any option to purchase, or otherwise dispose of any of its Equity Securities (a “Subsequent
Financing”).

 

(b)          Notwithstanding
the foregoing, this Section 4.10 shall not apply to Subsequent Financing that is a transaction involving (a) the issuance
of Equity Securities to consultants, employees, officers or directors of the Company pursuant to any stock or option plan duly
adopted by the Company or to the issuance of ADSs or Ordinary Shares upon exercise of such options or any Ordinary Shares Equivalents
outstanding as of the date hereof; (b) any Equity Securities issued pursuant to any equipment leasing arrangement or debt financing
from a bank or similar financial institution whose primary business is lending money and not investing in securities; (c) any Equity
Securities issued in connection with strategic transactions involving the Company and other entities, the primary purpose of which
is not to raise capital, including (A) joint ventures, manufacturing, marketing, license or distribution arrangements or (B) technology
transfer or development arrangements (provided that the primary purpose of such transaction is not the raising of capital); (d)
any securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition, consolidation,
sale or disposition of all or substantially all of the Company’s assets or similar business combination; (e) any securities
issued in connection with the settlement of pending or threatened litigation or similar proceeding; (f) Equity Securities issued
in conjunction with any stock split, stock dividend or recapitalization of the Company; (g) any securities issuable upon the exercise
or conversion of, or pursuant to the anti-dilution provisions contained within, any agreement, option, restricted stock awards,
preferred stock, promissory note, convertible promissory note or warrants outstanding on the date hereof; (h) any securities issuable
under the Transaction Documents; (i) Equity Securities issued to vendors in exchange for services rendered to the Company; (j)
issuance of securities in connection with underwritten public offerings of the Company’s
securities; and (k) issuance of Ordinary Shares or ADSs as part of the Concurrent Financing (as defined below).

 

(c)          “Equity
Securities” means Ordinary Shares, ADSs or Ordinary Shares Equivalents.

 

(d)          “Concurrent
Financing” means the issuance of Ordinary Shares or ADSs on substantially the same terms as contained in this Agreement
to other investors (the “Other Purchasers”); provided that (i) such Other Purchasers, if any, shall have entered
into securities purchase agreement(s) (the “Other SPAs”) on January 16, 2019 or no later than 45 days thereafter;
(ii) the price per each ADS sold to Other Purchasers shall either (A) not be lower than the Per ADS Purchase Price (or, for the
sake of clarity, if the issuance is of Ordinary Shares, rather than ADSs, a price per Ordinary Share that is not lower than the
Per ADS Purchase Price multiplied by 30) or (B) if it is lower than the Per ADS Purchase Price (such lower price per ADS being
referred to as the “Adjusted Per ADS Purchase Price”), then the Per ADS Purchase Price hereunder shall, for
all intents and purposes be modified to be equal to the Adjusted Per ADS Purchase Price and the Purchaser shall be issued at the
Closing a number of ADSs equal to the Subscription Amount divided by the Adjusted Per ADS Purchase Price (or, if Closing shall
have occurred prior to the execution of such securities purchase agreements with the Other Purchaser(s), shall be issued the additional
ADSs to which such Purchaser would have been entitled had the initial Per ADS Purchase Price been the Adjusted Per ADS Purchase
Price); and (iii) the aggregate purchase price for the sale of the ADSs and/or Ordinary Shares (including the Aggregate Purchase
Price hereunder) under this Agreement and the Other SPAs (the “Total Round”) shall not exceed the Maximum Round
Amount.

 

    	 	19	 

     

    

 

EXECUTION COPY

 

(e)          “Required
Purchasers” means the Purchasers and Other Purchasers (if any) representing a majority of the Total Round.

 

4.11         Pre-Closing
Price Adjustment. Notwithstanding anything to the contrary hereunder, if the Per ADS Purchase Price shall exceed the Per ADS
Closing Purchase Price, then the Per ADS Purchase Price hereunder shall, for all intents and purposes be reduced to be equal to
the Per ADS Closing Purchase Price and the Purchaser shall be issued at the Closing a number of ADSs equal to the Subscription
Amount divided by the Per ADS Closing Purchase Price; provided however that if, as a result of the aforesaid modification
of the Per ADS Purchase Price the number of Ordinary Shares underlying the ADSs issuable (as well as Ordinary Shares, if any, issuable)
to the Purchasers and the Other Purchasers (such number, the “Total Issuance Number”) shall exceed, in the aggregate,
19.99% of the outstanding Ordinary Shares of the Company as of the Closing (the “Maximum Issuance Number”),
then the Subscription Amounts of each of the Purchasers and Other Purchasers shall be reduced, on a pro rata basis, so that the
Total Issuance Number shall not exceed the Maximum Issuance Number. 

 

4.12         Delivery
of Securities After Closing. The Company shall deliver, or cause to be delivered, the ADSs purchased by each Purchaser to
such Purchaser within five (5) Business Days of the Closing Date.

 

4.13         Form
D and Blue Sky. The Company agrees to timely file a Form D with respect to the ADSs issuable hereunder as required under Regulation
D. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in
order to obtain an exemption for or to qualify the ADSs for sale to the Purchasers at the Closing pursuant to this Agreement under
applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption from such qualification).
The Company shall make all filings and reports relating to the offer and sale of the ADSs required under applicable securities
or “blue sky” laws of the states of the United States following the Closing Date and shall provide copies to any Purchaser
who so requests. 

 

4.14         Prohibitions
on Dividends, Etc.  Except as expressly contemplated by this Agreement, on or prior to the Closing Date, the Company shall
not authorize, approve, or effect, or set a record date for, any (i) share dividend, share split, share combination, recapitalization
or similar event with respect to the Ordinary Shares, (ii) any dividend or distribution (of cash, securities or other assets)
on the Ordinary Shares, or (iii) subject to Section 4.10, any offering, issuance or sale of any ADSs, Ordinary Shares or Ordinary
Shares Equivalents.

 

4.15         Satisfaction
of Closing Conditions.  The Company shall use its reasonable efforts to timely satisfy each of the conditions
to be satisfied by it as provided in Section 2.3(a) of this Agreement. 

 

4.17         Reservation
of Ordinary Shares. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of Ordinary Shares for the purpose of enabling the Company to issue
all of the ADSs pursuant to this Agreement.

 

    	 	20	 

     

    

 

EXECUTION COPY

 

ARTICLE
V.

MISCELLANEOUS

 

5.1           Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of
the Transaction Documents. The Company shall pay all Depositary fees (including, without limitation, any fees required for same-day
processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties levied in connection with
the delivery of any ADSs to the Purchasers.

 

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

 

5.3           Notices
.. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the next Business Day after the date of transmission, if such notice
or communication is delivered via facsimile or email at the facsimile number or email address set forth on the signature pages
attached hereto (subject to the sender’s receipt of good transmission, in the case of a facsimile, or the absence of a message
back to the sender of undeliverability, in the case of email) prior to 5:00 p.m. (New York City time) on a Business Day, (b) two
Business Days after the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile
number or email address set forth on the signature pages attached hereto (subject to the sender’s receipt of good transmission,
in the case of a facsimile, or the absence of a message back to the sender of undeliverability, in the case of email) on a day
that is not a Business Day or later than 5:00 p.m. (New York City time) on any Business Day, (c) the second Business Day following
the date of mailing (fifth Business Day if sent internationally), if sent by a nationally recognized overnight courier service
in the United States, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such
notices and communications shall be as set forth on the signature pages attached hereto or at such other address as such party
may designate by seven calendar days’ advance written notice to the other party. 

 

5.4           Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and all of the Purchasers. No waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder
in any manner impair the exercise of any such right.

 

5.5           Construction
.. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

5.6           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and
permitted assigns. No party shall be entitled to assign this Agreement without the prior written consent of the other parties.
Notwithstanding the foregoing, subject to the applicable securities law, any Purchaser shall be entitled to assign this Agreement
to any Affiliates of such Purchaser without such consent, provided that at the time of such assignment, (i) the Company is given
written notice by such Purchaser at the time of such assignment stating the name and address of such assignee, and the number of
Shares with respect to which such assignment is being made, and that any such assignee shall receive such assigned rights subject
to all the terms and conditions of this Agreement, including without limitation, the provisions of this Section 5.6 and (ii) each
assignee shall furnish the Company with the assignee’s written agreement to be bound by this Agreement and confirming the
accuracy of the representations and warranties set forth in Section 3.2 with respect to such assignee.”

 

    	 	21	 

     

    

 

EXECUTION COPY

 

5.7           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.7.

 

5.8           Governing
Law ; Venue. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue
for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. THE PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. If either party shall
commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its reasonable attorneys’ fees and expenses and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or proceeding.

 

5.9           Survival
.. The representations and warranties herein shall survive the Closing and delivery of the ADSs until the date on which each of
the Purchasers no longer holds any of the ADSs. 

 

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

 

5.11         Severability
.. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will
attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

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

 

    	 	22	 

     

    

 

EXECUTION COPY

 

5.13         Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any Transaction Document,
and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Except as otherwise set
forth herein, each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. 

 

5.14         Further
Assurances. From and after the date of this Agreement, upon the request of any Purchaser or the Company, each of the Company
and the Purchasers shall execute and deliver such instrument, documents and other writings as may be reasonably necessary or desirable
to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

5.16         Termination
.. This Agreement may be terminated by the Company or by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before 120 days following the date hereof; provided, however, that
that the right to terminate this Agreement under this Section shall not be available to any party whose action or failure to act
has been a principal cause of or resulted in the failure to fulfill the conditions to closing set forth in this Agreement. In the
event that the any of the parties terminates this Agreement pursuant to this Section, no party will have any further obligations
to or rights against any other party hereto subject to such other party having fulfilled its obligations under this Section; and
further provided, however, that the provisions of Article 5 (Miscellaneous) will survive any termination hereof; and further provided that
such termination will not affect the right of any party to sue for any material breach by any other party (or parties).

 

(Signature Pages Follow)

 

    	 	23	 

     

    

 

EXECUTION COPY

 

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

 

	ITAMAR MEDICAL LTD.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

Address for Notice:

 

	9 Halamish Street
	Caesarea, Israel
	Attn: Chief Financial Officer
	Fax: 972-4-6275598
	Email: BShy@Itamar-Medical.com

 

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

 

	Goldfarb
    Seligman & Co.
	Electra Tower, 98 Yigal
    Alon Street
	Tel Aviv 67891, Israel
    
	Email: ido.zemach@goldfarb.com
    
	Attention: Ido Zemach,
    Adv.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASERS FOLLOW]

 

    	 	24	 

     

    

 

EXECUTION COPY

 

[PURCHASER SIGNATURE PAGES TO SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: _______________________

 

Signature of Authorized Signatory of Purchaser: __________________________

 

Name of Authorized Signatory: _________________________

Title of Authorized Signatory: __________________________

 

Jurisdiction of Purchaser: ________________

 

Number of Ordinary Shares currently owned by Purchaser

(if not true, delete and insert number): None

 

Address for Notice of Purchaser:

__________________

__________________

__________________

Tel: ______________

Fax: ______________

Email: __________________

Attention: _______________

 

With a copy to (which shall not constitute notice) (if not
applicable, delete):

 

__________________

__________________

__________________

Tel: ______________

Fax: ______________

Email: __________________

Attention: _______________

 

Address for Delivery of Securities for Purchaser (if not same
as above):

__________________

__________________

__________________

 

Subscription Amount: US$_____________

 

ADSs: ____________

 

EIN Number: ___________

 

[SIGNATURE PAGES CONTINUE]

 

    	 	25	 

     

    

   

DISCLOSURE SCHEDULE

 

This Disclosure Schedule (the “Disclosure
Schedule”) is provided by Itamar Medical Ltd. (the “Company”), pursuant to that certain Securities Purchase
Agreement, dated as of January 28, 2019, by and among the Company and each purchaser identified on the signature pages thereto
(the “Agreement”).

 

Capitalized terms used in this Disclosure
Schedule and not defined herein shall have the same meanings ascribed thereto in the Agreement.

 

Each representation and warranty of the
Company in the Agreement shall be subject to: (i) any exception or disclosure set forth in the section of this Disclosure Schedule
corresponding to the section in Article III of the Agreement in which such representation or warranty appears; (ii) any exception
or disclosure cross-referenced in such part of this Disclosure Schedule by reference to another section of this Disclosure Schedule;
and (iii) any exception or disclosure set forth in any other section of this Disclosure Schedule, if it is readily apparent on
the face of the disclosure.

 

Matters, items and documents set forth in
this Disclosure Schedule are not necessarily limited to matters, items and documents required by the Agreement to be set forth
in this Disclosure Schedule. Such additional matters, items and documents are set forth for informational purposes only and do
not necessarily include other matters, items or documents of similar nature. Matters, items and documents set forth in this Disclosure
Schedule in response to representations and warranties in the Agreement that are qualified by “materiality,” “material
adverse change/effect” or similar qualifications are not necessarily material. Accordingly, no reference to or disclosure
of any matter, item or document in this Disclosure Schedule shall: (i) be construed as an admission or indication that such matter,
item or document is material, that such matter, item or document has had, or would reasonably be expected to result in, a material
adverse change or effect, or that such matter, item or document is required to be referred to or disclosed herein; or (ii) otherwise
establish a standard of materiality.

 

This Disclosure Schedule and the disclosures
and information contained in this Disclosure Schedule (i) are disclosed solely for the purposes of the Agreement, (ii) are intended
only to disclose information pursuant to, or qualify and limit, the representations and warranties of Company contained in the
Agreement, and (iii) shall not be deemed to expand the scope of such representations and warranties except where explicitly called
for by the Agreement. Where a summary or description of a matter is included in this Disclosure Schedule, such summary or description
does not purport to be a complete statement of the material terms of such matter, contract or other item.

 

This Disclosure Schedule and the disclosures
and information contained in this Disclosure Schedule are confidential information of the Company.

 

***

     

     

    

 

Schedule 2.3(a)

 

	 	1.	 	Giora Yaron, PhD
	 	2.	 	Gilad Glick
	 	3.	 	Shy Basson
	 	4.	 	Shlomo Ayanot
	 	5.	 	Jacob (Koby) Sheffy, PhD
	 	6.	 	Itay Kariv
	 	7.	 	Efrat Litman
	 	8.	 	Eilon Livne
	 	9.	 	Martin Gerstel
	 	10.	 	Ilan Biran
	 	11.	 	Jonathan Kolber
	 	12.	 	Sami Totah
	 	13.	 	Christopher M. Cleary
	 	14.	 	Yaffa Krindel Sieradzki
	 	15.	 	Zipora (Tzipi) Ozer-Armon 

 

Schedule 3.1(a)

 

		1.	Company Subsidiaries:

 

	Subsidiary Name	 	Country of
 Incorporation	 	Ownership
 Percentage	 
	Itamar Medical, Inc.	 	Delaware, United States	 	 	100	%
	Itamar Medical Japan Co. Ltd.*	 	Japan	 	 	100	%
	I.M.E. 2016 B.V.	 	Netherlands	 	 	100	%

 

* Currently in the process of dissolution.

 

		2.	Reference is made to Schedule 3.1(n) with respect
to security interests granted in connection with credit extended by the Bank to the Company.

 

Schedule 3.1(e)

 

The Company is required to receive the approval of the TASE
for the issuance of the Ordinary Shares underlying the ADSs.

 

Schedule 3.1(g)

 

(ii) Capitalization:

 

As of January 28, 2019, there were 287,615,892 issued
and outstanding Ordinary Shares.

 

     

     

    

 

(iii) Ordinary Shares Equivalents:

 

		1.	As of the date hereof, there are stock options and
restricted stock units to purchase 35,802,213 Ordinary Shares outstanding pursuant to the Company’s option and equity incentive
plans.

 

		2.	The Company has issued to Viola P.E. 2 A.V. Limited
Partnership (“Viola”), pursuant to a Closing Warrant Agreement between the Company and Viola, dated November
5, 2015, warrants exercisable into up to 33,438,454 Ordinary Shares (the “Viola Warrants”) at an exercise price
of NIS 1.642 per share for the first 21 months of the term thereof and an exercise price of NIS 1.745 for the remainder of the
term. The Viola Warrants e are exercisable until the earlier of: (i) the passage of 42 months following their issuance (i.e.,
on May 4, 2019); (ii) in the event of a public offering with a pre-money valuation of the Company of at least at $250 million;
or (iii) in the event of an Exit Event (as defined in the Viola Warrants) which reflects a company value of at least $250 million.

 

		3.	The Company has issued to subscribing shareholders,
pursuant to a shelf offering report published by the Company on December 2, 2015, warrants exercisable into up to 6,438,152 Ordinary
Shares at an exercise price equal to the exercise price of the Viola Warrants. The warrants are exercisable until May 4, 2019.

 

		4.	The Company has issued to Mizrahi Tefahot Bank Ltd.
(the “Bank”), pursuant to a Warrant Agreement between the Company and the Bank, dated May 14, 2017, as amended
on July 9, 2017, and as further amended on January 29, 2018, warrants exercisable into up to 798,088 Ordinary Shares at an exercise
price of NIS 1.36 per share. The warrants are exercisable until May 14, 2022.

 

Schedule 3.1(n)

 

As disclosed in the ISA Reports, the Company
granted the Bank certain security interests in connection with credit extended by the Bank to the Company.

 

    	 

     

    

  

January __, 2019

 

Itamar Medical Ltd.

9 Halamish Street

Caesarea 3088900

Israel

Attention: Shy Basson, CFO

 

Re: Itamar
Medical Ltd. - Lock-Up Agreement

 

Dear Sirs:

 

This Lock-Up Agreement
is being delivered to you in connection with the Securities Purchase Agreement (the "Securities Purchase Agreement"),
dated as of January __, 2019 (the "Subscription Date") by and among Itamar Medical Ltd. (the "Company")
and the investors party thereto (the "Purchasers"), with respect to the issuance of American Depository Shares
(the "ADSs"), each representing 30 Ordinary Shares, par value NIS 0.01 per share, of the Company (the “Ordinary
Shares”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth
in the Securities Purchase Agreement.

 

In order to induce
the Purchasers to enter into the Securities Purchase Agreement, the undersigned agrees that, commencing on the Subscription Date
and ending on (and including) the date that is six (6) months following the Closing Date (the "Lock-Up Period"),
the undersigned will not, without the prior written consent of the Majority Purchasers, (i) sell, offer to sell, contract or agree
to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise dispose of or agree to dispose of,
directly or indirectly, any ADSs or Ordinary Shares, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities and Exchange Act of 1934, as amended, and the rules
and regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder, with respect to
any ADSs or Ordinary Shares owned directly by the undersigned or with respect to which the undersigned has (or hereafter acquires)
beneficial ownership within the rules and regulations of the SEC (collectively, the "Undersigned's Shares"), or
(ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of any of the Undersigned's Shares, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of shares of ADSs, Ordinary Shares or other securities, in cash or otherwise, (iii) make any demand for or exercise
any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of
any ADSs or Ordinary Shares, or (iv) publicly disclose the intention to do any of the foregoing.

 

The foregoing restriction
is expressly agreed to preclude the undersigned from engaging in any hedging or other transaction which is designed to or which
reasonably could be expected to lead to or result in a sale or disposition of the Undersigned's Shares even if the Undersigned's
Shares would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include,
without limitation, any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call
option) with respect to any of the Undersigned's Shares or with respect to any security that includes, relates to, or derives any
significant part of its value from the Undersigned's Shares.

 

Notwithstanding the
foregoing, the undersigned may transfer the Undersigned's Shares (i) as a bona fide gift or gifts, provided that the donee
or donees thereof agree to be bound in writing by the restrictions set forth herein or (ii) to any trust for the direct or indirect
benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust agrees to be bound
in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for
value, and provide, in the case of any gift or transfer contemplated by clause (i) or (ii), no public disclosure thereof is made
during the Lock-Up Period. For purposes of this Lock-Up Agreement, "immediate family" shall mean any relationship by
blood, marriage or adoption, not more remote than first cousin.

 

     

     

    

 

In addition, the foregoing
restrictions shall not apply to: (i) the undersigned’s exercise of stock options granted pursuant to the Company’s
equity incentive plans; provided, that (a) such restrictions shall apply to any of the Undersigned’s Shares issued upon such
exercise and (b) that if any filing is required under Section 16(a) of the Exchange Act in connection with such exercise, if applicable,
such filing shall include a statement to the effect that such filing is the result of the exercise of options pursuant to the Company’s
equity incentive plans; or (ii) the establishment of any contract, instruction or plan (a “Plan”) that
satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act; provided, that no sales of the Undersigned’s
Shares shall be made pursuant to such a Plan prior to the expiration of the Lock-Up Period.

 

In furtherance of the
foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of ADSs and Ordinary
Shares if such transfer would constitute a violation or breach of this Lock-Up Agreement.

 

The undersigned now
has, and, except as contemplated by the immediately preceding sentence, for the duration of this Lock-Up Agreement will have, good
and marketable title to the Undersigned's Shares, free and clear of all liens, encumbrances, and claims whatsoever.

 

The undersigned acknowledges
that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to each Purchaser to complete the
transactions contemplated by the Securities Purchase Agreement and that the Company shall be entitled to specific performance of
the undersigned's obligations hereunder.

 

The undersigned hereby
represents that the undersigned has the power and authority to execute, deliver and perform this Lock-Up Agreement, that the undersigned
has received adequate consideration therefor and that the undersigned will indirectly benefit from the closing of the transactions
contemplated by the Securities Purchase Agreement.

 

The undersigned understands
and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives,
successors, and assigns.

 

The undersigned understands
that the undersigned shall be released from all obligations under this Lock-Up Agreement (i) if the Securities Purchase Agreement
(other than the provisions thereof which survive termination) shall terminate or be terminated prior to the Closing or (ii) when
the Lock-Up Period expires or (iii) ten (10) months after the Subscription Date.

 

This Lock-Up Agreement
will be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of
law or conflicting provision or rule (whether of the State of New York, or any other jurisdiction) that would cause the laws of
any jurisdiction other than the State of New York to be applied. In furtherance of the foregoing, the internal laws of the State
of New York will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction's choice
of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

This Lock-Up Agreement
may be executed in two counterparts (which may be delivered by facsimile, e-mail or other form of electronic transmission), each
of which shall be deemed an original but both of which shall be considered one and the same instrument.

 

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blank]

 

    	 	2	 

     

    

 

	 	Very truly yours,
	 	 
	 	 
	 	Exact Name of Shareholder
	 	 
	 	 
	 	Authorized Signature
	 	 
	 	 
	 	Title

 

	Agreed to and Acknowledged:	 
	 	 	 
	ITAMAR MEDICAL LTD.	 
	 	 	 
	By:	 	 
	 	Name:  	 
	 	Title:	 

 

    	 	3Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”),
which is dated January 28th, 2019 (the “Effective Date”), is made by and between ClearSign Combustion Corporation,
located at 12870 Interurban Avenue South, Seattle, Washington 98168 and hereinafter referred to as “Company”, and
Colin James Deller, whose address is ________________, hereinafter referred to as “Executive.” The purpose of this Agreement is to
confirm the terms of the employment relationship between Company and Executive.

 

RECITALS

 

WHEREAS, Company wishes to retain
the services of Executive, and Executive wishes to render services to Company, initially as its President and, no later than April
1, 2019, as its Chief Executive Officer;

 

WHEREAS, Company and Executive wish
to set forth in this Agreement the duties and responsibilities that Executive has agreed to undertake on behalf of Company, and
the responsibilities that Company will owe to Executive.

 

THEREFORE, in consideration of the
foregoing and of the mutual promises contained in this Agreement, Company and Executive (who are sometimes individually referred
to as a “Party” and collectively referred to as the “Parties”) agree as follows:

 

AGREEMENT

 

		1.	TERM.

 

Pursuant to the terms of this Agreement, Company
hereby employs Executive as Company’s President through March 31, 2019 and as its Chief Executive Officer beginning on April
1, 2019 and Executive hereby accepts employment with Company pursuant to the terms of this Agreement. This Agreement is effective
on the Effective Date and will continue for a period of two years (the “Initial Term”). Before the expiration of the
second year of the Initial Term, the Compensation Committee will review Executive’s performance and, if the Board of Directors
(the “Board”) deems Executive’s performance is satisfactory, the term of Executive’s employment will be
extended for an additional year (the “Extension”). During the Extension and each one year Extension thereafter, the
Compensation Committee will review Executive’s performance and, if it is deemed by the Board to be satisfactory, will continue
Executive’s employment for an additional one year Extension. In this Agreement, the word “Term” shall refer,
depending on the context used, to the Initial Term or to any subsequent Extension. Irrespective of the foregoing, this Agreement
may be terminated at any time in accordance with the provisions of Section 11 or Section 12 below.

 

		2.	GENERAL DUTIES.

 

Service as President and Chief Executive
Officer. Executive shall devote his entire productive time, ability, and attention to Company’s business during Executive’s
employment. As President, Executive shall report to the Chief Executive Officer and to the Board and, upon assuming the role of
Chief Executive Officer, Executive shall report to the Board. During his tenure as President, Executive agrees to keep the Chief
Executive Officer and the Board, and during his tenure as Chief Executive Officer, Executive agrees to keep the Board, fully informed
with regard to critical issues affecting the value and reputation of Company. In his capacity as President, Executive shall exercise
the powers and discharge the duties of his office that are not reserved to the Chief Executive Officer. Once he assumes the role
of Chief Executive Officer, Executive shall exercise the powers and discharge the duties of his office that are not reserved to
the Board, and shall have the authority and control over all personnel of Company (with the exception of the powers reserved to
the Board pursuant to Section 4 of Company’s bylaws to appoint and to terminate or remove executive officers or subordinate
officers), shall be responsible for managing the overall operations of Company, and shall act as the main point of communication
between the Board and Company’s operations. Executive shall do and perform all services, acts, or things necessary or advisable
to discharge his duties under this Agreement, and such other duties as are commonly performed by an employee of his rank in a publicly
traded corporation or which may, from time to time, be prescribed by Company through the Board. Executive agrees to cooperate with
and work to the best of his ability with Company’s management team, which includes the Board and the officers and other employees,
to continually improve Company’s reputation in its industry for quality products and performance.

 

     

     

    

 

		3.	NONSOLICITATION AND PROPRIETARY PROPERTY AND 

CONFIDENTIAL INFORMATION PROVISIONS.

 

As a condition of his employment with Company,
Executive has executed an Employee Intellectual Property Assignment and Nondisclosure Agreement, the terms of which are
included by reference into this Agreement.

 

		4.	COMPLIANCE WITH SECURITIES LAWS AND COMPANY POLICIES.

 

(a)       Securities
Law Compliance. Executive acknowledges that he is subject to the provisions of Sections 10 and 16 of the Securities Exchange
Act of 1934 and the rules and regulations promulgated thereunder. Executive acknowledges that Sections 10 and 16 and the rules
and regulations promulgated thereunder may prohibit Executive from selling or transferring his securities in Company. Executive
agrees that he will comply with Company’s policies, as stated from time to time, relating to selling or transferring Company’s
securities.

 

(b)       Compliance
with Company Policies. Executive acknowledges that, as an employee of Company, he will be subject to all policies and procedures
enacted by Company including, but not limited to, Company’s Code of Business Conduct and Ethics, policies and procedures
relating to the use of Company’s information technology, policies and procedures relating to the protection of Company’s
intellectual property and policies and procedures relating to workplace safety.

 

    2

     

    

 

(c)       Violations
of Securities Laws or Company Policies. Executive agrees that violations of the federal or state securities laws or Company
policies may result in disciplinary action, up to and including termination for cause.

 

		5.	COMPENSATION.

 

(a)       Annual
Salary. Company shall pay to Executive an annual base salary in the amount of $350,000 (the “Annual Salary”).
The Annual Salary shall be subject to any tax withholdings and/or employee deductions that are applicable. The Annual Salary shall
be paid to Executive in equal installments in accordance with the periodic payroll practices of Company for its employees. The
Annual Salary will be subject to review and increase at the sole discretion of the Board no less frequently than annually.

 

(b)       Bonuses.
At least annually, Executive and the Compensation Committee of the Board of Directors shall meet to establish (i) performance
standards and goals (“Standards and Goals”) to be met by Executive and (ii) bonus targets based on the Standards and
Goals that are achieved. The Standards and Goals will support a bonus of 60% of Executive’s Annual Salary. The Standards
and Goals and the bonus targets shall be mutually agreed to by Executive and the Compensation Committee. Nothing in this subsection
(b) shall prevent Executive and the Compensation Committee from mutually agreeing to alternatives to the computation of the bonus
to be paid to Executive in accordance with this subsection (b) (the “Bonus”). Any Bonus shall be paid in options to
purchase Company’s common stock valued using the Black-Scholes option valuation model, will be subject to any applicable
tax withholdings and/or employee deductions and shall be payable no later than April 1st in the year following the year in which
the Bonus was earned, provided that Executive’s employment has not been sooner terminated under Sections 11 or 12(c) of this
Agreement. Assuming that Executive’s employment has not been terminated under Sections 11 or 12(c) of this Agreement, Executive
shall receive a Bonus having a value of no less than $100,000 for services provided pursuant to this Agreement through December
31, 2019.

 

(c)       Participation
In Employee Benefit Plans. Executive shall have the same rights, privileges, benefits and opportunities to participate
in any of Company’s employee benefit plans that may now or hereafter be in effect on a general basis for executive officers
or employees. During Executive’s employment, the Company shall provide, at Company’s sole expense, medical health insurance
(including vision and dental) benefits for Executive, his spouse and children (as defined in such policy or policies), under the
same policy or policies generally available to other executive officers of Company. Irrespective of the foregoing, Company may
change any benefits contractor, or discontinue any of the foregoing benefits without replacement, in its sole discretion, and any
such change or discontinuance will not be a breach of this Agreement.

 

		6.	EQUITY COMPENSATION.

 

(a)       Signing
Option. On the Effective Date, Company shall issue to Executive an option (the “Signing Option”) for the purchase
of 400,000 shares of Company’s common stock (the “Signing Option Shares”). The Signing Option shall be an incentive
stock option to the extent permitted under the Internal Revenue Code (the “Code”). The per share exercise price of
the Signing Option Shares shall be equal to the closing price of Company’s common stock on the grant date and the term of
the Signing Option shall be 10 years. The right to purchase one-third of the Signing Option Shares shall vest on the Effective
Date; the right to purchase one-third of the Signing Option Shares shall vest on the first anniversary of the grant date; and the
right to purchase one-third of the Signing Option Shares shall vest on the second anniversary of the grant date.

 

    3

     

    

 

(b)       Additional
Option. On the Effective Date, Company shall issue to Executive an option (the “Additional Option”) for the
purchase of 200,000 shares of Company’s common stock common stock (the “Additional Option Shares”). The Additional
Option shall be an incentive stock option to the extent permitted under the Code. The per share exercise price of the Additional
Option Shares shall be $2.25 and the term of the Additional Option shall be 10 years. The right to purchase one-third of the Additional
Option Shares shall vest on the Effective Date; the right to purchase one-third of the Additional Option Shares shall vest on the
first anniversary of the grant date; and the right to purchase one-third of the Additional Option Shares shall vest on the second
anniversary of the grant date.

 

		7.	REIMBURSEMENT OF BUSINESS EXPENSES AND MOVING ALLOWANCE.

 

(a)       Reimbursement
of Business Expenses. Company shall promptly reimburse Executive for all reasonable business expenses incurred by Executive
in connection with the business of Company. However, each such expenditure shall be reimbursable only if Executive furnishes to
Company adequate records and other documentary evidence required by federal and state statutes and regulations issued by the appropriate
taxing authorities for the substantiation of each such expenditure as an income tax deduction.

 

(b)       Relocation
Adjustment. Company shall provide Executive with up to $6,000 each month to be used for accommodations at hotels, rent
for a personal residence in Seattle, Washington, trips to and from Tulsa, Oklahoma for himself and/or his wife and family and for
any additional expenses agreed to by Company (the “Relocation Adjustment”). For so long as the Relocation Adjustment
is paid for these expenses, reimbursement shall be subject to the evidence requirements of Section 7(a) above. Executive shall
receive the Relocation Adjustment for a period of 4 years from the Effective Date (the “Payment Period”), provided,
however, if, during the Payment Period, Company relocates its corporate headquarters to Tulsa, Oklahoma, Company shall no longer
be required to pay the Relocation Adjustment. If, during the Payment Period, Company relocates its corporate headquarters from
Seattle, Washington to a location in the United States other than Tulsa, Oklahoma, Executive and Company shall determine whether
the Relocation Adjustment shall be adjusted or terminated.  If Executive purchases a home in Seattle, Washington or a nearby
suburb, Company shall pay the entire Relocation Adjustment ($6,000) each month throughout the remainder of the Payment Period.
The Relocation Adjustment may be adjusted or terminated upon mutual agreement of Company and Executive. Payment of the Relocation
Adjustment shall be subject to any federal or state withholding or employment taxes, as may be applicable. Any tax incurred by
Executive as a result of payment of the Relocation Adjustment, other than federal or state withholding or employment taxes, shall
be payable by Executive.

 

    4

     

    

 

(c)       Relocation
Allowance. Company shall reimburse Executive for reasonable relocation expenses actually and properly incurred if the Executive
moves to Seattle, Washington from Tulsa, Oklahoma, up to a maximum of $100,000, which expenses shall be subject to the evidence
requirements of Section 7(a) above. Such expenses shall include:

 

(i)       Moving
Expenses. All reasonably incurred expenses to move Executive’s home furnishings and personal property to Seattle, Washington.

 

(ii)       Closing
Costs. Customary closing costs in connection with the sale of Executive’s home in Tulsa, Oklahoma, including realtor
commissions.

 

(iii)       Income
Tax Consequences. Payment of the relocation expenses shall be subject to any federal or state withholding or employment taxes,
as may be applicable. Any tax incurred by Executive as a result of payment of the relocation expenses, other than federal and state
withholding or employment taxes, shall be payable by Executive

 

		8.	PAID TIME OFF.

 

Executive shall be entitled to four weeks
of paid time off each year and, if unused, may carry-over one week of paid time off into the next year. However, failure to use
paid time off by the end of the year in which it is earned shall prevent the accrual of additional paid time off during the next
year.

 

		9.	INDEMNIFICATION OF LOSSES.

 

So long as Executive’s actions were
taken in good faith and in furtherance of Company’s business and within the scope of Executive’s duties and authority,
Company shall indemnify and hold Executive harmless to the full extent of the law from any and all claims, losses and expenses
sustained by Executive as a result of any action taken by him to discharge his duties under this Agreement and Company shall defend
Executive, at Company’s expense, in connection with any and all claims by stockholders or third parties.

 

		10.	PERSONAL CONDUCT.

 

Executive agrees promptly and faithfully to
comply with all present and future policies, requirements, directions, requests and rules and regulations of Company in connection
with Company’s business. Executive further agrees to conform to all laws and regulations and not at any time to commit any
act or become involved in any situation or occurrence tending to bring Company into public scandal, ridicule or which will reflect
unfavorably on the reputation of Company.

 

    5

     

    

 

		11.	TERMINATION FOR CAUSE.

 

The Board may terminate Executive for cause
immediately, without notice, if Company reasonably concludes that Executive has committed fraud, theft, embezzlement, misappropriation
of Company funds or other property, or any felony. The Board may also terminate Executive for cause for any of the following:

 

(a)       breach
by Executive of any material provision of this Agreement;

 

(b)       violation
by Executive of any statutory or common law duty of loyalty to Company;

 

(c)       a
material violation by Executive of Company’s employment policies; or

 

(d)       commission
of such acts of dishonesty, gross negligence, or willful misconduct as would prevent the effective performance of Executive’s
duties or which result in material harm to Company, its reputation or its business.

 

The Board may terminate this Agreement for
cause by giving written notice of termination to Executive, provided, however, if the Board declares Executive to be in default
of this Agreement under subsection (a) above because Executive fails to substantially perform his material duties and responsibilities
under this Agreement, the Board shall deliver a written demand for substantial performance of such duties and responsibilities
to Executive. Such demand must identify the manner in which the Board believes that Executive has not substantially performed his
duties, and Executive shall have a period of 30 days to correct the deficient performance. Upon termination for cause, with the
exception of the terms of this Sections 11 and any obligations, duties and responsibilities Executive has under the Employee Intellectual
Property Assignment and Nondisclosure Agreement, the obligations of Executive and Company under this Agreement shall immediately
cease. Such termination shall be without prejudice to any other remedy to which Company may be entitled either at law, in equity,
or under this Agreement. If Executive’s employment is terminated pursuant to this Section 11, Company shall pay to Executive
(i) Executive’s accrued but unpaid Annual Salary and the value of unused paid time off through the effective date of the
termination, (ii) business expenses incurred prior to the effective date of termination, and (iii) the Relocation Adjustment accrued
but unpaid prior to the effective date of termination. Executive shall not be paid the Relocation Adjustment for the remainder
of the Payment Period and shall not be entitled to continue to participate in any employee benefit plans except to the extent provided
in such plans for terminated participants, or as may be required by applicable law.

 

In the event of a termination of Executive’s
employment pursuant to this Section 11, the disposition of Executive’s options granted pursuant to Section 6 hereof shall
be governed by the applicable terms and conditions of the 2011 Equity Incentive Plan (the “Plan”), if the option has
been granted pursuant to the Plan, and any award agreement executed in respect of such options.

 

    6

     

    

 

		12.	TERMINATION WITHOUT CAUSE.

 

(a)       Death.
Executive’s employment shall terminate upon the death of Executive. Upon such termination, the obligations of Executive and
Company under this Agreement shall immediately cease. If Executive’s employment is terminated pursuant to this Section 12(a),
Company shall pay to Executive’s estate (i) Executive’s accrued but unpaid Annual Salary and the value of unused paid
time off through the effective date of the termination; (ii) business expenses incurred but unpaid prior to the effective date
of termination; (iii) Executive’s accrued but unpaid Bonus, if any; (iv) the Relocation Adjustment, accrued but unpaid prior
to the effective date of termination; and (v) the Relocation Adjustment from and after the effective date of termination through
the end of the Payment Period. All payments made pursuant to this paragraph shall be made less legal deductions. Company may elect,
in its sole discretion, to pay the Relocation Adjustment in one lump sum or on regular pay days following termination of Executive’s
employment. Executive’s family shall not be entitled to continue to participate in any employee benefit plans except to the
extent provided in such plans for terminated participants, or as may be required by applicable law. The disposition of Executive’s
options granted pursuant to Section 6 hereof shall be governed by the applicable terms and conditions of the Plan, if the option
has been granted pursuant to the Plan, and any award agreement executed in respect of such options.

 

(b)       Disability.
The Board reserves the right to terminate Executive’s employment upon 30 days written notice if, for a period of 90 days,
Executive is prevented from substantially discharging the essential functions of his position as President and Chief Executive
Officer, with or without reasonable accommodation, due to any physical or mental disability. If Executive’s employment is
terminated pursuant to this Section 12(b), Company shall pay to Executive (i) Executive’s accrued but unpaid Annual Salary
and the value of unused paid time off through the effective date of the termination; (ii) business expenses incurred but unpaid
prior to the effective date of termination; (iii) Executive’s accrued but unpaid Bonus, if any; (iv) the Relocation Adjustment,
accrued but unpaid prior to the effective date of termination; and (v) the Relocation Adjustment from and after the effective date
of termination through the end of the Payment Period. All payments made pursuant to this paragraph shall be made less legal deductions.
Company may elect, in its sole discretion, to pay the Relocation Adjustment in one lump sum or on regular pay days following termination
of Executive’s employment. Executive shall not be entitled to continue to participate in any employee benefit plans except
to the extent provided in such plans for terminated participants, or as may be required by applicable law. The disposition of Executive’s
options granted pursuant to Section 6 hereof shall be governed by the applicable terms and conditions of the Plan, if the option
has been granted pursuant to the Plan, and any award agreement executed in respect of such options.

 

(c)       Election
By Executive. Executive’s employment may be terminated at any time by Executive upon not less than 30 days written
notice by Executive to the Board. If Executive’s employment is terminated pursuant to this Section 12(c), Company shall pay
to Executive (i) Executive’s accrued but unpaid Annual Salary and the value of unused paid time off through the effective
date of the termination; (ii) business expenses incurred but unpaid prior to the effective date of termination; and (iii) the Relocation
Adjustment, accrued but unpaid prior to the effective date of termination. All payments made pursuant to this paragraph shall be
made less legal deductions. Executive shall not be paid the Relocation Adjustment for the remainder of the Payment Period and shall
not be entitled to continue to participate in any employee benefit plans except to the extent provided in such plans for terminated
participants, or as may be required by applicable law. The disposition of Executive’s options granted pursuant to Section
6 hereof shall be governed by the applicable terms and conditions of the Plan, if the option has been granted pursuant to the Plan,
and any award agreement executed in respect of such options.

 

    7

     

    

 

(d)       Election
By Company. Executive’s employment may be terminated at any time by Company upon not less than 30 days written notice
by the Board to Executive. If Executive’s employment is terminated pursuant to this Section 12(d), Company shall pay to Executive
(i) Executive’s accrued but unpaid Annual Salary and the value of unused paid time off through the effective date of the
termination; (ii) Executive’s accrued but unpaid Bonus, if any; (iii) business expenses incurred but unpaid prior to the
effective date of termination; (iv) the Relocation Adjustment, accrued but unpaid prior to the effective date of termination; (v)
the Relocation Adjustment from and after the effective date of termination through the end of the Payment Period; and (vi) severance
consisting of six months Annual Salary, all less legal deductions. Company may elect, in its sole discretion, to pay the severance
and the Relocation Adjustment in one lump sum or on regular pay days following termination of Executive’s employment. Executive
shall be entitled, at Executive’s expense, to continue to participate in employee benefit plans described in Section 5(c)
for a period of six months following termination of Executive’s employment, to the extent provided in such plans for terminated
participants, or as may be required by applicable law. The disposition of Executive’s options granted pursuant to Section
6 hereof shall be governed by the applicable terms and conditions of the Plan, if the option has been granted pursuant to the Plan,
and any award agreement executed in respect of such options.

 

(e)       Termination
Due to a Change in Control. Executive’s employment may be terminated upon a Change in Control. For purposes of this
Agreement, the term “Change in Control” shall mean the sale or disposition by Company to an unrelated third party of
substantially all of its business or assets, or the sale of the capital stock of Company in connection with the sale or transfer
of a Controlling Interest in Company to an unrelated third party, or the merger or consolidation of Company with another corporation
as part of a sale or transfer of a Controlling Interest in Company to an unrelated third party. For purposes of this definition,
the term “Controlling Interest” means the sale or transfer of Company’s securities representing greater than
50% of the voting power. It will be presumed that a termination is a termination under this subsection (e) rather than a termination
under subsection (d) (Election by Company) if Executive’s employment is terminated during the period that begins when negotiations
for the Change in Control begin and ends on the six month anniversary of the closing of the Change in Control transaction and such
termination is not a termination for cause pursuant to Section 11 or a termination resulting from Executive’s death, disability,
or election pursuant to subsections (a), (b) or (c) of this Section 12. If Executive’s employment is terminated pursuant
to this Section 12(e), Executive shall be entitled to receive (i) Executive’s accrued but unpaid Annual Salary and the value
of unused paid time off through the effective date of the termination; (ii) Executive’s accrued but unpaid Bonus, if any;
(iii) business expenses incurred but unpaid prior to the effective date of termination; (iv) the Relocation Adjustment, accrued
but unpaid prior to the effective date of termination; (v) the Relocation Adjustment from and after the effective date of termination
through the end of the Payment Period; and (vi) severance consisting of six months Annual Salary, all less legal deductions. In
addition, any equity award that was scheduled to vest during the period following the termination of Executive’s employment
will vest immediately upon the termination of Executive’s employment pursuant to this Section 12(e).

 

    8

     

    

 

With the exception of the terms of this Sections
12 and any obligations, duties and responsibilities Executive has under the Employee Intellectual Property Assignment and
Nondisclosure Agreement, upon termination of Executive’s employment the obligations of Executive and Company under this Agreement
shall immediately cease.

 

		13.	MISCELLANEOUS.

 

(a)       Preparation
of Agreement. It is acknowledged by each Party that such Party either had separate and independent advice of counsel or
the opportunity to avail itself or himself of same. In light of these facts it is acknowledged that no Party shall be construed
to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any Party as the alleged
draftsman of this Agreement.

 

(b)       Cooperation.
Each Party agrees, without further consideration, to cooperate and diligently perform any further acts, deeds and things and to
execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate,
evidence, confirm and/or carry out the intent and provisions of this Agreement, all without undue delay or expense.

 

(c)       Interpretation.

 

(i)       Entire
Agreement/No Collateral Representations. Each Party expressly acknowledges and agrees that this Agreement, including all exhibits
attached hereto: (1) is the final, complete and exclusive statement of the agreement of the Parties with respect to the subject
matter hereof; (2) supersedes any prior or contemporaneous agreements, promises, assurances, guarantees, representations, understandings,
conduct, proposals, conditions, commitments, acts, course of dealing, warranties, interpretations or terms of any kind, oral or
written (collectively and severally, the “Prior Agreements”), and that any such prior agreements are of no force or
effect except as expressly set forth herein; and (3) may not be varied, supplemented or contradicted by evidence of Prior Agreements,
or by evidence of subsequent oral agreements. Any agreement hereafter made shall be ineffective to modify, supplement or discharge
the terms of this Agreement, in whole or in part, unless such agreement is in writing and signed by the Party against whom enforcement
of the modification or supplement is sought.

 

(ii)       Waiver.
No breach of any agreement or provision herein contained, or of any obligation under this Agreement, may be waived, nor shall any
extension of time for performance of any obligations or acts be deemed an extension of time for performance of any other obligations
or acts contained herein, except by written instrument signed by the Party to be charged or as otherwise expressly authorized herein.
No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof, or a waiver or relinquishment of any other agreement or provision or right or power herein contained.

 

    9

     

    

 

(iii)       Remedies
Cumulative. The remedies of each Party under this Agreement are cumulative and shall not exclude any other remedies to which
such Party may be lawfully entitled.

 

(iv)       Severability.
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be determined
to be invalid, illegal or unenforceable under present or future laws effective during the term of this Agreement, then and, in
that event: (A) the performance of the offending term or provision (but only to the extent its application is invalid, illegal
or unenforceable) shall be excused as if it had never been incorporated into this Agreement, and, in lieu of such excused provision,
there shall be added a provision as similar in terms and amount to such excused provision as may be possible and be legal, valid
and enforceable, and (B) the remaining part of this Agreement (including the application of the offending term or provision to
persons or circumstances other than those as to which it is held invalid, illegal or unenforceable) shall not be affected thereby
and shall continue in full force and effect to the fullest extent provided by law.

 

(v)       No
Third Party Beneficiary. Notwithstanding anything else herein to the contrary, the parties specifically disavow any desire
or intention to create any third party beneficiary obligations, and specifically declare that no person or entity, other than as
set forth in this Agreement, shall have any rights hereunder or any right of enforcement hereof.

 

(vi)       Headings;
References; Incorporation; Gender. The headings used in this Agreement are for convenience and reference purposes only, and
shall not be used in construing or interpreting the scope or intent of this Agreement or any provision hereof. References to this
Agreement shall include all amendments or renewals thereof. Any exhibit referenced in this Agreement shall be construed to be incorporated
in this Agreement. As used in this Agreement, each gender shall be deemed to include the other gender, including neutral genders
or genders appropriate for entities, if applicable, and the singular shall be deemed to include the plural, and vice versa, as
the context requires.

 

(d)       Enforcement.

 

(i)       Applicable
Law. This Agreement and the rights and remedies of each Party arising out of or relating to this Agreement (including, without
limitation, equitable remedies) shall be solely governed by, interpreted under, and construed and enforced in accordance with the
laws (without regard to the conflicts of law principles thereof) of the State of Washington, as if this agreement were made, and
as if its obligations are to be performed, wholly within the State of Washington.

 

(ii)       Consent
to Jurisdiction and Venue. Any action or proceeding arising out of or relating to this Agreement shall be filed in and heard
and litigated solely before the state or federal courts of Washington within King County.

 

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(iii)       Attorneys’
Fees. If court proceedings are required to enforce any provision of this Agreement, the substantially prevailing or successful
Party shall be entitled to an award of the reasonable and necessary expenses of litigation, including reasonable attorneys’
fees.

 

(e)       No
Assignment of Rights or Delegation of Duties by Executive. Executive’s rights and benefits under this Agreement are
personal to him and therefore (i) no such right or benefit shall be subject to voluntary or involuntary alienation, assignment
or transfer; and (ii) Executive may not delegate his duties or obligations hereunder.

 

(f)       Notices.
Unless otherwise specifically provided in this Agreement, all notices, demands, requests, consents, approvals or other communications
(collectively and severally called “Notices”) required or permitted to be given hereunder, or which are given with
respect to this Agreement, shall be in writing, and shall be given by: (A) personal delivery (which form of Notice shall be deemed
to have been given upon delivery), (B) by private overnight delivery service (which forms of Notice shall be deemed to have been
given upon confirmed delivery by the delivery agency), or (C) by mailing in the United States mail by registered or certified mail,
return receipt requested, postage prepaid (which forms of Notice shall be deemed to have been given upon the 5th business day following
the date mailed). Notices shall be addressed to the address hereinabove set forth in the introductory paragraph of this Agreement,
or to such other address as the receiving Party shall have specified most recently by like Notice, with a copy to the other Parties
hereto. Any Notice given to the estate of a Party shall be sufficient if addressed to the party as provided in this subparagraph.

 

(g)       Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute
one and the same instrument, binding on all parties hereto. Any signature page of this Agreement may be detached from any counterpart
of this Agreement and reattached to any other counterpart of this Agreement identical in form hereto by having attached to it one
or more additional signature pages.

 

(h)       Execution
by All Parties Required to be Binding; Electronically Transmitted Documents. This Agreement shall not be construed to be
an offer and shall have no force and effect until this Agreement is fully executed by all Parties hereto. If a copy or counterpart
of this Agreement is originally executed and such copy or counterpart is thereafter transmitted electronically by facsimile or
similar device, such facsimile document shall for all purposes be treated as if manually signed by the Party whose facsimile signature
appears.

 

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IN WITNESS WHEREOF, the parties have
executed this Agreement.

 

	 	Company:
	 	 	 
	 	CLEARSIGN COMBUSTION 

CORPORATION
	 	 	 
	 	 	 
	 	 	 
	Date: January 28, 2019	By:	/s/ Robert T. Hoffman Sr. 
	 	 	Robert T. Hoffman Sr.
	 	 	Chief Executive Officer
	 	 	 
	 	Executive:
	 	 	 
	 	 	 
	Date: January 28, 2019	/s/ Colin James Deller 
	 	Colin James Deller

 

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