Document:

WELLS FARGO & COMPANY 8-K

 

Exhibit 4.2

 

[Face of Note]

 

Unless this certificate
is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP NO. 95001D3K4	PRINCIPAL AMOUNT:  $___________
	REGISTERED NO. ___	 

 

 

WELLS FARGO & COMPANY

 

MEDIUM-TERM NOTE, SERIES T

 

Due Nine Months or More From Date of Issue

 

Notes due December 31, 2025

 

WELLS FARGO & COMPANY,
a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,”
which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises
to pay to CEDE & Co., or registered assigns, the principal sum of _________________ DOLLARS ($_________) on December 31,
2025 (the “Stated Maturity Date”) and to pay interest thereon from December 31, 2018 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for semi-annually on the last calendar day of each June
and December, commencing June 30, 2019, and at Maturity (each, an “Interest Payment Date”), at the rate per
annum specified below until the principal hereof is paid or made available for payment. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date shall be one Business
Day prior to such Interest Payment Date. If an Interest Payment Date is not a Business Day, interest on this Security shall be
payable on the next day that is a Business Day, with the same force and effect as if made on such Interest Payment Date, and without
any interest or other payment with respect to the delay. “Business Day” shall mean a day, other than a Saturday
or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation
to close in New York, New York.

 

Except as described below
for the first Interest Period, on each Interest Payment Date, interest will be paid for the period commencing on and including
the immediately preceding Interest Payment Date and ending on and including the day immediately preceding that Interest Payment
Date. This period is referred to as an “Interest Period.” The first Interest Period will

 

    	 	 	 

    	 

    

commence on and include December 31, 2018 and
end on and include June 29, 2019. Interest on this Security will be computed on the basis of a 360-day year of twelve 30-day
months.

 

The interest rate on this
Security that will apply during an Interest Period will be as follows:

 

	
        Commencing December 31, 2018 and ending
December 30, 2022
		
        

        4.00% per annum

	
        Commencing December 31, 2022 and ending
December 30, 2024
		
        

        4.50% per annum

	
        Commencing December 31, 2024 and ending
December 30, 2025
		
        

        5.00% per annum

	 	 	 

Any interest not
punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either
be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may
be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

Payment of interest
on this Security will be made in immediately available funds at the office or agency of the Company maintained for that purpose
in the City of Minneapolis, Minnesota in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that, at the option of the Company, payment of interest may
be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register
or by wire transfer to such account as may have been designated by such Person. Payment of principal of and interest on this Security
at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose
in the City of Minneapolis, Minnesota. Notwithstanding the foregoing, for so long as this Security is a Global Security registered
in the name of the Depositary, payments of principal and interest on this Security will be made to the Depositary by wire transfer
of immediately available funds.

This
Security is redeemable at the option of the Company, in whole but not in part, on any Optional Redemption Date at a Redemption
Price equal to 100% of the principal amount of this Security to be redeemed, plus any accrued but unpaid interest to, but excluding,
the Redemption Date. The “Optional Redemption Dates” are quarterly on the last calendar day of each March, June,
September and December, commencing December 31, 2020 and ending September 30, 2025. Notice of any redemption will be mailed at
least 5 but not more than 30 days before the applicable Redemption Date to the Holder hereof. Unless the Company defaults in the
payment of the Redemption Price, on or after the Redemption Date, interest will cease to accrue on this Security or the portion
hereof called for redemption.

This
Security is not subject to repayment at the option of the Holder hereof prior to December 31, 2025. This Security is not entitled
to any sinking fund.

    	 	2	 

    	 

    

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized
agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

 

[The remainder of this page has
been left intentionally blank]

 

    	 	3	 

    	 

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED:

 

	 	WELLS FARGO & COMPANY
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:
	 	 	 
	 	Attest:	 
	 	 	
	 	 	Its:

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This
is one of the Securities of the 

series
designated therein described

in
the within-mentioned Indenture.

 

	CITIBANK, N.A.,	 
	 	as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	OR	 
	 	 	 
	WELLS FARGO BANK, N.A.,	 
	 	as Authenticating Agent for the Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 

   

 

    	 	4	 

    	 

    

[Reverse of Note]

 

 

WELLS FARGO & COMPANY

 

MEDIUM-TERM NOTE, SERIES T

 

Due Nine Months or More From Date of Issue

 

Notes due December 31, 2025

 

This Security is
one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from time to
time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series T,
of the Company. The Securities of this series will bear interest at a fixed rate or a floating rate. The Securities of this series
may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different
times or not at all and be denominated in different currencies.

The Securities are
issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more
Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and
registered in the names of, the beneficial owners or their nominees.

The Company agrees,
to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against
a Holder of this Security.

Modification and Waivers 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all
series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting
together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions
of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders
of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities
of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding

    	 	5	 

    	 

    

upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized Denominations

This Security is
issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral
multiple of $1,000.

Registration of Transfer

Upon due presentment
for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new
Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate
principal amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations
provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed
in connection therewith.

This Security is
exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the
Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that
this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant
to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at the same
rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like
amount.

This Security may
not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a
nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this

    	 	6	 

    	 

    

Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

Obligation of the Company Absolute

No reference herein
to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin
or currency, herein prescribed, except as otherwise provided in this Security.

No Personal Recourse

No recourse shall
be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly waived and released.

Defined Terms

All terms used in
this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined
in this Security.

Governing Law

This Security shall
be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of
laws.

    	 	7	 

    	 

    

ABBREVIATIONS 

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

 

	TEN COM	--	as tenants in common
	 	 	 
	TEN ENT	--	as tenants by the entireties
	 	 	 
	JT TEN	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common

 

	UNIF GIFT MIN ACT --	 	 Custodian 	 
	 	(Cust)	 	(Minor)

 

	Under Uniform Gifts to Minors Act	 
	 	 
	 	 
	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

	Please Insert Social Security or	 
	Other Identifying Number of Assignee
	 	 
	 	 

 

 

	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

 

    	 	8	 

    	 

    

the within Security of WELLS FARGO & COMPANY
and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of the
Company, with full power of substitution in the premises.

 

 

Dated: _________________________

 

	 	 
	 	 
	 	 
	 	 

 

 

 

NOTICE: The signature to this assignment must
correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement
or any change whatever.

 

 

    	 	9Exhibit 4.8

 

PORTIONS OF THIS AGREEMENT WERE OMITTED
AND HAVE BEEN FILED

SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN

APPLICATION
FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE

SECURITIES EXCHANGE ACT OF 1934; [***]
DENOTES OMISSIONS

 

DISTRIBUTION AGREEMENT

DATA EXHIBIT

 

THIS DATA EXHIBIT IS AN INTEGRAL PART OF THE FOLLOWING DISTRIBUTION
AGREEMENT

 

The DISTRIBUTION Agreement by and between
Itamar Medical Ltd., an Israeli company, having a place of business at 9 Halamish Street, P.O. Box 3579, Caesarea 38900, Israel,
(“Itamar”), and Distributor (as defined below) consists of (a) the Distribution Agreement attached hereto (the “Distribution
Agreement” or the “Agreement”) and (b) this Data Exhibit, which is an integral part of the Distribution Agreement.
In any case of contradiction between the provisions of this Data Exhibit and the Distribution Agreement, the provisions of the
Distribution Agreement shall prevail.

 

Subject to the terms and conditions set
forth in the Distribution Agreement, Itamar hereby appoints Distributor as its exclusive distributor solely with regard to selling
the Products (as defined in this Data Exhibit) and solely in the Territory (as defined in this Data Exhibit).

 

	1.	a.	Date of this Agreement: FEB, 24 2014 (the “Effective
    Date”)

 

b.             Initial
Term: The initial term of this agreement shall start on the Effective Date and end after three (3) years from the date of
granting of AHI Above 20 Criteria sleep test using WatchPAT by the Ministry of Health Labour and Welfare of Japan (“MHLW”)
or on December 31, 2018, whichever is earlier.

 

For purposes hereof, “AHI Above
20 Criteria” shall mean the decision of the MHLW to reimburse treatment based on Home Sleep Testing result above or around
the threshold of 20 AHI, but significantly lower than the current AHI 40.

 

		2.	Distributor:
                                         Philips Respironics GK (“Distributor”)

Address: 13-37 Kohnan 2-chome Minato-ku Tokyo 108-8507
Japan

 

		3.	Territory:
                                         Japan

 

	4	a.	Products: Itamar shall sell the following
    Watch-PAT products (the “Products”) to Distributor.

 

		(1)	Device:
                                         WatchPAT 200 KIT (product # : TC2110403)

This includes WatchPAT200 device,
Body Positioning and Snoring sensor, Oximetry module, Oximetry sensor, Wrist strap, Pat cable, AC power adapter, USB cable, Oximeter
adhesive bands (x25), Body positioning and snoring sensor adhesive(xl2), Carrying case, zzzPAT S/W Kit analysis SW, User manual
(EN).

 

	 	(2)	PAT: [12 Pneu-Optic Sleep Probes (xl2) (product
    # : TC2108210)]

 

	 	(3)	Accessories:

 

	 	i.	PAT Cable Assy WP200 (product # : TS0060600)
	 	ii.	Integrated Sensor WatchPAT Kit (product # :
    TC2000400)
	 	iii.	Nonin Adapter Box Assy WatchPAT200 (product
    # : TS2258306)
	 	iv.	Oxi Sensor, WatchPAT200 (product # : TS0060620)
	 	v.	Strap Assy, WatchPAT200 (product # : TS2158301)
	 	vi.	P.S 100-240VAC W.M. 5VDC 1.0A 5W+Mini USB-B
    (USA) (product # : PS0000013)
	 	vii.	Cord USB A/Mini-B 5Cont Computer Accy.Gray
    Mold. (product # : CB1000012)
	 	viii.	C.I. Oximeter adh Bands X25 (product # CP7200010)
	 	ix.	12 Stickers for SBP Sensor (product # TC2000110)
	 	x.	zzzPAT S/W Kit (product # : TC2100632)
	 	xi.	Li-Ion Batt.Pack+Cable 3.7V + Connector (product
    # : TS0037051)
	 	xii.	Carrying Case WatchPAT200 (product # : TP2173302)
	 	xiii.	Operation Manual WatchPAT200 (product # : TM2196330)
	 	xiv.	Watch-PAT200 Training Presentation On CD (product
    # TS 2165201)
	 	xv.	Quick Reference Cards WatchPAT200 (product
    # TM2193360)

 

    	 	Page 1

     

    

  

	 	xvi.	Step by Step Guide WatchPAT200 (product # :
    TM2193308
	 	xvii.	Patient Video WatchPAT200 (product # : TS2165200)
	 	xviii.	24 Tamper Proof Bracelet WatchPAT200 (product
    # : TC2008300)
	 	xix.	Cable Bracelet to WP200 adapter (product #
    : TS0065511)

 

		b.	Pricing:
                                         The Products shall be sold at the “Transfer Price” as set forth in this
                                         clause.

 

	 	(1)	The Transfer Price for the Device and PAT shall
    be derived by application of the formula below:

 

	 	-	Transfer Price of Device = [***]
	 	-	Transfer Price of PAT = [***]

 

	 	(2)	The Transfer Price for the Device and PAT shall
    [***].

 

	 	(3)	The Transfer Price for Accessories shall be
    [***] as specified below:

 

	 	i.	PAT Cable Assy WP200 (product # : TS0060600)
    Price:[***]
	 	ii.	Integrated Sensor WatchPAT Kit (product # :
    TC2000400) Price:[***]
	 	iii.	Nonin Adapter Box Assy WatchPAT200 (product
    # : TS2258306) Price:[***]
	 	iv.	Oxi Sensor, WatchPAT200 (product # : TS0060620)
    Price:[***]
	 	v.	Strap Assy, WatchPAT200 (product # : TS2158301)
    Price:[***]
	 	vi.	P.S 100-240VAC W.M. 5VDC 1.0A 5W+Mini USB-B
    (USA) (product # : PS0000013) Price:[***]
	 	vii.	Cord USB A/Mini -B 5Cont Computer Accy.Gray
    Mold, (product # : CB1000012) Price:[***]
	 	viii.	C.I. Oximeter Adh. Bands (x25) (product # :
    CP7200010) Price: [***]
	 	ix.	12 Stickers for SBP Sensor (xl2) (product #
    : TC2000110) Price:\[***]
	 	x.	zzzPAT S/W Kit (product # : TC2100632) Price:\[***]
	 	xi.	Li-Ion Batt.Pack+Cable 3,7V + Connector (product
    # : TS0037051) Price:\[***]
	 	xii.	Carrying Case WatchPAT200 (product # : TP2173302)
    Price:[***]
	 	xiii.	24 Tamper Proof Bracelet WatchPAT200 (x24)
    (product # : TC2008300) Price:[***]
	 	xiv.	Cable Bracelet to WP200 adapter (product #
    : TS0065511) Price:[***]
	 	xv.	Operation Manual WatchPAT200 (product # : TM2196330)
    Price:[***]
	 	xvi.	Watch-PAT200 Training Presentation On CD (product
    # : TS2165201) Price:[***]
	 	xvii.	Quick Reference Cards WatchPAT200 (product
    # : TM2193360) Price:[***]
	 	xviii.	Step by Step Guide WatchPAT200 (product # :
    TM2193308) Price:[***]
	 	xix.	Patient Video WatchPAT200 (product # : TS2165200)
    Price:[***]

 

The Transfer Price will be set upon initial
publication of the reimbursement price and criteria for sleep test using WatchPAT by MHLW on its website, and revised upon release
of any changes to such reimbursement price and criteria by MHLW thereafter. The Transfer Prices may otherwise be changed by agreement
of both parties in writing.

 

c.             Minimum
Purchase Requirement Commitments of the Distributor: The Distributor shall meet the minimum purchase requirement commitments.
The minimum purchase requirement commitments are as set forth in the table below (the “Minimum Purchase Requirements”).

 

    	 	Page 2

     

    

  

	 	 	2014	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Quarterly Purchase Amount (Thousand USD)	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Annual Purchase Amount (Thousand USD)	 	 	[***]  	 

 

	 	 	2015	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Quarterly Purchase Amount (Thousand USD)	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Annual Purchase Amount (Thousand USD)	 	 	[***]  	 

 

	 	 	2016	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Quarterly Purchase Amount (Thousand USD)	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Annual Purchase Amount (Thousand USD)	 	 	[***]  	 

 

	 	 	2017	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Quarterly Purchase Amount (Thousand USD)	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Annual Purchase Amount (Thousand USD)	 	 	 [***]  	 

 

	 	 	2018	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 
	Quarterly Purchase Amount (Thousand USD)	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Annual Purchase Amount (Thousand USD)	 	 	[***]  	 

 

If the Distributor does not meet any of
the Minimum Purchase Requirements in the table above, the provisions of Section 11.2 of the Agreement shall apply.

 

5.          Distributor
Confirmation: Itamar and Distributor acknowledge that each has read each and every paragraph of the Distribution Agreement
and the Data Exhibit, received all necessary explanations and clarifications and fully understands respective rights and obligations
under the Distribution Agreement and the Data Exhibit and the contents, meanings and implications of the Distribution Agreement
and the Data Exhibit.

 

	ITAMAR MEDICAL LTD.	 	“Distributor”
	 	 	 	 	 
	By:	/s/ Eldad Singer	 	By:	/s/ Danny Risberg
	Name:	Eldad Singer	 	Name:	Danny Risberg
	Title:	President, Itamar	 	Title: 	Executive Manager
	 	Medical Japan 	 	 	 
	 	VP Sales, Itamar Medical	 	 	 
	 	Feb 24, 2014	 	 	 

 

    	 	Page 3

     

    

 

PORTIONS
OF THIS AGREEMENT WERE OMITTED AND HAVE BEEN FILED

SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN

APPLICATION
FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE

SECURITIES EXCHANGE ACT OF 1934; [***]
DENOTES OMISSIONS

  

DISTRIBUTION AGREEMENT

 

This DISTRIBUTION
Agreement (the “Agreement”) is entered into by and between Itamar Medical Ltd., an Israeli company, having a place
of business at 9 Halamish Street, P.O. Box 3579, Caesarea 38900, Israel, or its affiliates, (“Itamar” or the “Company”),
and the Distributor listed on the attached Data Exhibit. The attached Data Exhibit constitutes an integral part of this Agreement.

 

WITNESSETH:

 

WHEREAS, Itamar is engaged, among
other things, in the business of designing, engineering, manufacturing, marketing and selling of medical diagnostic Products (as
defined in the Data Exhibit); and

 

WHEREAS, Distributor is engaged,
among other things in the business of distributing medical and diagnostic devices and is experienced in and familiar with the
considerations involved in the marketing and selling of medical and diagnostic devices in the Territory, subject to regulations,
special considerations and local authority requirements necessary to sell the Products in the Territory; and

 

WHEREAS, subject to the Data Exhibit,
Itamar wishes to appoint Distributor as its exclusive distributor of the Products in the Territory (as defined in the Data Exhibit)
and grant to Distributor the exclusive right and license to distribute and sell Itamar’s Products solely for their intended
use and solely in the Territory; and

 

WHEREAS, Distributor wishes to
accept such appointment and receive such right and license and to provide certain services with respect thereto subject to the
terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises and for valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties
hereto, each intending to be legally bound hereby, agree as follows:

 

DEFINITIONS

 

1.1           “Confidential
Information” shall mean any and all Documentation, confidential and proprietary information belonging to or in the possession
of Itamar, including but not limited to any and all concepts, specifications, formulae, prototypes, software and hardware, and
any and all records, data, methods, techniques, processes, projections, plans, marketing and/or pricing information, materials,
financial statements, memoranda, analyses, notes and any other data or information (in whatever form), as well as improvements
and know-how related thereto, relating to Itamar, Itamar’s suppliers, clients, research and development activities, Products
(including related software), manufacturing, marketing and sales. Confidential Information shall be deemed to include any and
all of Itamar’s information, irrespective of form, which has been or may be: (i) disclosed to Distributor by or on behalf
of Itamar; or to which Distributor has access; or (ii) provided to Itamar from a third party. Confidential Information shall not
include information that: (a) was already known to or independently developed by Distributor prior to its disclosure as demonstrated
by tangible dated evidence satisfactory to Itamar; (b) shall have appeared in any printed publication or patent or shall have
become a part of the public knowledge except as a result of breach of this Agreement by Distributor; (c) shall have been received
by the Recipient from another person or entity having no obligation to Itamar.

 

    	 	Page 4

     

    

 

1.2           “Documentation”
shall mean Itamar’s confidential ideas, know-how, concepts, methods, processes, formulae, reports, data, business plans,
and any other proprietary information of Itamar that may provide Itamar with a competitive advantage, as well as any of Itamar’s
manuals and other written materials that relate to the Products, including any flow charts, logic manuals, functional specifications,
medical research, clinical trials or their summaries, any machine text or graphic files and or any material relating to any enhancements
or modifications of the Product, as may be from time to time.

 

1.3           “Intellectual
Property Rights” shall mean copyrights, patent rights, trademarks, inventions (whether or not patentable), trade secrets,
and any other proprietary rights relating to intangible property, whether patentable or otherwise, all rights to sue for any past,
present or future infringement of any of the foregoing rights, and the right to all income, royalties, damages and payments now
or hereafter due or payable with respect to any of the foregoing rights, including, without limitation, damages for past, present
or future infringement thereof. Itamar- Medical’s Intellectual Property’s Rights shall be deemed to include all Intellectual
Property Rights related to the measurement of the peripheral arterial tone and/or changes in the peripheral arterial tone and
arterial vaso-activity of a patient, and coronary artery disease diagnosis and other medical conditions.

 

1.4           “Product(s)”
shall mean the products together with all related software and PAT Probes (as hereafter defined) all as listed in Data Exhibit,
which may be amended by Itamar from time to time, at its sole discretion, on ninety (90) days prior written notice to Distributor.

 

1.5           “Affiliate(s)”
shall mean (i) in the case of Distributor, Koninklijke Philips N.V. and (ii) in the case of Distributor and Itamar: any and all
other companies, firms and legal entities with respect to which now or hereafter Koninklijke Philips N.V. or Itamar respectively,
directly or indirectly holds 50% or more of the nominal value of the issued share capital or 50% or more of the voting power at
general meetings or has the power to appoint a majority of directors or otherwise to direct the activities of such company, firm
or legal entity; in the case of Distributor, the Affiliates of Distributor may be listed for convenience purposes in the Eligible
Buying Locations list http://www.philips.com/about/company/businesses/suppliers/ebl.page)

 

SCOPE OF AGREEMENT

 

2.1           Further
to Itamar's appointment of Distributor as detailed in the Data Exhibit, Itamar hereby grants Distributor with an exclusive, royalty
free, limited, non-assignable, non-transferable license to distribute the Products, which license shall be applicable solely in
the Territory (the “License”). The Distributor hereby accepts such appointment. Distributor will purchase the Products
from Itamar pursuant to Sections 7 and 8 herein, and will distribute and resell them solely in the Territory.

 

2.2           Distributor
is hereby granted a non-exclusive, limited, non-assignable, non-transferable license, to use Itamar’s trade names, and trademarks
now owned or hereafter acquired by Itamar (“Proprietary Marks”) solely for the purposes of promoting the Products
in the Territory under the terms of this Agreement and for the Term hereof.

 

2.3           During
the term of this Agreement, Itamar may identify Distributor as a distributor of Itamar’s Products in advertisements and
other promotional literature, and Distributor may present itself as a distributor of Itamar’s Products to its customers.

 

2.4           Other
than the rights set forth in Sections 2.1, 2.2, and 2.3 above or in the Data Exhibit, no other licenses or rights are granted
to Distributor under this Agreement or otherwise. Distributor shall not actively or otherwise promote, pursue or solicit sales
of, advertise, hold, sell, lease, distribute or otherwise market, transfer or commercialize directly the Products outside of the
Territory.

 

    	 	Page 5

     

    

 

2.5           The
parties agree that after the granting of the AHI Above 20 Criteria, and during the Initial Term, Distributor shall not promote,
manufacture, advertise, distribute, lease, sell or otherwise market or transfer, either directly or indirectly, through any person
or entity, any product of Distributor or any third party that competes directly or indirectly, with the Products (i.e., any product
with same or similar specification not included in the EEG and EMG feature for which sleep test using it has been granted AHI
criteria 20 by MHLW).

 

2.6           Company
may sell a uniquely branded Original Equipment Manufacturer (“OEM”) device for sale within the Territory directly
or via another 3rd party with agreement of the Distributor.

 

2.7           Subject
to the terms and conditions set forth in APPENDIX C to this Agreement, Itamar is hereby granted the right to use the wordmark
PHILIPS in Israel solely for the purpose of advertising of the Products.

 

TERM OF THE AGREEMENT

 

3.             This
Agreement shall become effective as of the Effective Date and shall continue and remain in force until the date specified in Section
l.b. of the Data Exhibit (the “Initial Term”), unless terminated earlier under the provisions of Section 11
herein. This Agreement may be renewed by mutual agreement in writing for additional periods beyond the Initial Term (“Additional
Term”). The Initial Term and any Additional Term(s) or Additional Period as defined in Section 11.1 shall be referred
to together as the “Term”.

 

UNDERTAKINGS OF DISTRIBUTOR AND ITAMAR

 

4.1           In
addition to all other rights and obligations under this Agreement, Distributor shall:

 

(a)          Use
commercially reasonable best effort to promote, advertise, sell, and distribute the Products in the Territory (“Distributor's
Services”).

 

(b)          Provide
such support and other services as detailed in Appendix A.

 

(c)          Reports
to Itamar: Distributor shall provide quarterly reports no later than the fifteenth (15th) day of the month following
the end of each quarter (via email or in writing), in the form provided for in Appendix B, containing the following: (i) account-by-account
description, by direct customer or sub-distributor name, affiliation, address, telephone number and summary of device units and
probes sold and (ii) serial number of sold Products.

 

(d)          Bear
all costs and expenses of conducting its activities hereunder, including but not limited to any taxes or levies, and any travel,
lodging, entertainment, office, clerical, accounting, advertising and general selling expenses.

 

    	 	Page 6

     

    

 

(e)          Except
as set forth herein, not resell, sublicense, rent, or lease the Product, either in whole or in part to anyone but the intended
first end user and purchaser. Any attempt by either Distributor or first end user to do so shall be considered a material breach
of these terms and conditions and Itamar shall have the right to fully prosecute such breach to the fullest extent permitted by
law, without derogating from any of Itamar's other rights under these terms and conditions. Distributor shall be permitted to
sell to sub-distributors with whom Distributor has a written agreement subject to: (i) all agreements with sub-distributor shall
be subject to the terms of this Agreement; (ii) the Distributor shall remain liable to Itamar for all acts or omissions of the
sub-distributor; (iii) any act or omission of the sub-distributor which would be considered a breach of this Agreement if committed
or omitted by Distributor shall be considered a breach by Distributor.

 

(f)          Make
best efforts to achieve the Minimum Purchase Requirements Commitments for each calendar year and quarter, as specified in the
Data Exhibit, during the Term.

 

(g)          To
the extent necessary under applicable law, the Distributor shall apply for, obtain, facilitate and maintain any and all permits,
registrations, notifications, approvals, authorizations and/or clearances (including but not limited to approvals and/or licenses
from local, state, governmental, quasi-govemmental or other authorities) required, necessary or desirable for the importation,
sale, marketing, use, labeling, promoting, or distribution of and/or for making claims regarding the Products or their uses in
the Territory, including without limitation, regulatory approvals for medical and diagnostic devices and trademarks and other
intangible property rights (collectively, the “Required Approvals”. Distributor shall comply with all applicable
laws and regulations in connection with the performance of its obligations hereunder.

 

(h)          The
Products shall be sold pursuant to the “Shrink Wrap Licenses” provided to the end user by Itamar.

 

4.2           In
addition to all other rights and obligations under this Agreement and subject to Itamar's right to accept or reject each Order,
as that term is defined herein, Itamar shall:

 

(a)          Make
spare parts available at prices (according to the price list set forth in the Data Exhibit, which may be amended from time to
time) for so long as this Agreement remains in effect. Notwithstanding the aforesaid, Itamar shall be entitled to substitute a
spare part or component with a part/component that is form-fit and maintains the same functionality as the original part/component.

 

(b)          Provide
guidelines and instructions for a training program, to be conducted in the English language, on the installation, operation and
maintenance of the Products. The scope, timing and the terms of such training shall be mutually agreed upon between the Parties
on a case by case basis. Itamar shall provide Distributor all available documentation relevant for such programs.

 

(c)          Provide
Distributor with copies of Itamar's existing English-language user manuals, installation manuals, brochures and catalogues relating
to the Products. Itamar shall not be obligated to translate the aforesaid literature into any language other than English.

 

(d)          Itamar
shall use its commercially reasonable efforts to fulfill all Orders, as that term is defined below, placed by Distributor and
approved by Itamar.

 

(e)          Itamar
shall designate one coordinating representative who oversees all Distributor issues and coordinates Itamar activity. Itamar personnel
will only take direction from the Itamar coordinating representative.

 

    	 	Page 7

     

    

 

PROPRIETARY RIGHTS AND MARKS

 

5.1           It
is acknowledged and agreed that (i) Itamar’s Products, Intellectual Property and the Documentation, have been, are, and
will be developed solely by Itamar, at the risk and expense of Itamar; and (ii) Itamar’s Intellectual Property Rights, Documentation
and other information embodied in the Products constitute valuable trade secrets and is proprietary to Itamar; and (iii) all Intellectual
Property Rights, in or related to Itamar’s Products, Documentation and/or to any related design and manufacturing, as well
as any modification, adaptation or derivation thereof, are and will remain the exclusive property of Itamar. Distributor, by taking
delivery of, making payment for, distributing and selling or transferring any of the Products to third parties, shall not become
entitled to any proprietary or non proprietary rights in any such Products, Intellectual Property or Documentation.

 

5.2           Distributor,
and anyone acting on Distributor's behalf, shall take all reasonable and acceptable measures to ensure that all Intellectual Property
Rights of Itamar in the Products and the Documentation remain exclusively with Itamar.

 

5.3           Distributor
shall not reverse engineer, decompile, misuse, incorporate into another product, modify, alter, enhance, change, copy or attempt
to copy, or perform any similar type of operation on Itamar’s Products, in any fashion or for any purpose whatsoever or
otherwise, either directly or indirectly, violate such Itamar’s rights with regard to the Products or Intellectual Property.

 

5.4           Itamar
may affix its Proprietary Marks to any of the Products. Except as provided for in Section 2.2, Distributor shall not have or acquire
any right, title or interest in the Proprietary Marks, either used alone or in conjunction with other words or names, or in the
good will thereof and shall not use any such Proprietary Marks without the express prior written consent of Itamar, and Distributor
acknowledges and agrees that Itamar's consent and approval may be withheld by Itamar in its sole discretion.

 

5.5           With
Company approval, Distributor can independently develop, at its own expense, marketing and teaching materials for the Products
and such materials including translation of the literature relating to the Products mentioned in Section 4.2(c) of the Data Exhibit,
which prior to usage in the field, will be reviewed and approved in writing by the Company. Such materials will be the property
of both the Company and the Distributor and may be used freely by both sides.

 

Intellectual Property Indemnification

 

5A.1       Itamar
shall indemnify and hold harmless Distributor, its Affiliates, their agents and employees in respect of any and all damages, costs
and expenses (including but not limited to reasonable attorneys’ fees) in connection with any third party claim that any
of the Products infringe any third party patent, trademark, copyright (including portrait rights and moral rights), trade name,
trade secret, license or other proprietary or other intellectual property rights, and shall defend any such claim at Itamar’s
own expense.

 

5A.2.      Distributor
shall provide Itamar with immediate notice of any such claim. Any delay in notice of any such claim shall not relieve Itamar of
its obligations hereunder except to the extent it is prejudiced by such delay. Each party shall provide all necessary assistance
in connection with any such claim as the other party may reasonably require. Distributor may not settle any such claim without
the prior approval of Itamar.

 

    	 	Page 8

     

    

 

5A.3.       If
Itamar believes that any Product may infringe any third party intellectual property rights in the Territory; or if (i) any Product,
alone or in any combination, supplied under this Agreement is held to infringe any third party rights in the Territory or (ii)
if their use is enjoined in the Territory, Itamar shall, in its sole discretion, and at its own expense: either

 

(a)    Procure for
Distributor or Distributor's customers the right to continue using the Product alone or in any combination; or

 

(b)    Replace or
modify the Product alone or in any combination with a functional, non-infringing equivalent.

 

5A.4.       If
Itamar is unable either to procure for Distributor the right to continue to use the Product alone or in any combination or to
replace or modify the Product alone or in any combination in accordance with the provisions of Section 5A.3 above, Distributor
may terminate this Agreement and upon such termination, Itamar shall reimburse to Distributor the price paid in five years before
the termination, without prejudice to Itamar's obligation to indemnify Distributor as set forth herein.

 

CONFIDENTIALITY

 

6.             From
time to time, Itamar or Distributor may make available to the other party Confidential Information. The Distributor or Itamar
shall not disclose such information to any person or entity, or use such Confidential Information without the prior written consent
of the other party. Distributor or Itamar shall take all measures to protect the other party’s Confidential Information
which shall be treated by Distributor or Itamar with at least the same care as it would exercise in the handling of its own confidential
or proprietary information, and shall not be disclosed to any person or entity except as required by law or by a court of competent
jurisdiction. Itamar may disclose the existence of this Agreement, including the identity of the Distributor and financial information
relating to this Agreement by order of a government authority or the court as required under applicable laws and regulations.
The provisions of this Section 6 shall remain in force after the termination of this Agreement.

 

PRICES

 

7.1           Product
Transfer Prices are as set forth in the Data Exhibit and are based on delivery ex works, Itamar's Caesarea, Israel facilities,
as that term is defined in Incoterms 2010, ICC Rules for the Use of Domestic and International Trade Terms, ICC Publication No.
715EF (the “Delivery Point”).

 

7.2           Transfer
Prices are exclusive of all sales, use, value added, or other similar taxes, fees, levies, duties and other governmental charges
(with the exception of taxes imposed on the income of Itamar), all of which will be borne exclusively by Distributor. Any change
of Transfer Prices as aforesaid will not affect orders accepted prior to the effective date of such change of Transfer Prices.

 

    	 	Page 9

     

    

 

PURCHASE OF PRODUCTS

 

8.1           Distributor
shall purchase the Products from Itamar, for the purpose of reselling them to end-users subject to the terms and conditions of
this Agreement, and including but not limited to Sections 7 and 8 herein, through purchase orders (“Orders”).
The Orders shall be issued in writing and transmitted via fax or by electronic means (including without limitation to electronic
mail), by Distributor to Itamar and shall be subject to (i) acceptance by Itamar; and (ii) to Section 8.3 below.

 

(a)          Order
acceptance by Itamar shall be made by fax or by electronic means (including without limitation to electronic mail) no later than
five (5) Itamar working days from receipt of the Order from Distributor.

 

(b)          The
placing by Distributor of an Order and Itamar's acceptance thereof under and in accordance with the terms of this Agreement shall
form a contract of sale between Itamar and Distributor on the terms of such Order and of this Distribution Agreement, provided,
however, that unless otherwise agreed to by Itamar in writing, the terms and conditions of any Order issued by Distributor or
any order acceptance issued by Itamar shall not alter the terms and conditions of this Distribution Agreement. In the event of
a conflict between such terms of any such Order or order acceptance and this Distribution Agreement, the terms of this Agreement
shall prevail.

 

(c)          All
Orders shall be compatible with Itamar's Minimum Lead Time, as set forth in 8.2 below.

 

8.2           All
purchased Products shall be delivered to the Delivery Point. Except as otherwise agreed upon, the minimum lead time for delivery
of Products under an Order shall be [***] from the acceptance of the Order by Itamar and provided, however, that
for any Order that is 50% larger than the immediately previous Order, the minimum lead time for delivery of Products under such
Order shall be [***] from the acceptance of the Order by Itamar (“Minimum Lead Time”). Following the acceptance
of an Order, Itamar shall issue to Distributor a notice specifying the period within which the Products will be delivered. The
Minimum Lead Time will commence upon the approval of the Order by Itamar. Any revisions to accepted Orders would be subject to
acceptance by Itamar.

 

8.3           Terms
of payment shall be

 

(a)         
All of the aggregate price of the Order shall be payable within sixty (60) days following delivery.

 

All payments shall be via wire transfer to Itamar’s bank
account set forth below:

 

Name of Bank: [***]Address of Bank: [***] 

Name of Account: [***]Bank Account Number: [***]Swift/Routing/Sort:
[***]IBAN: [***] 

(b)          Alternatively,
Distributor may pay via an irrevocable and confirmed fully executed letter of credit with a bank of international repute acceptable
to Itamar and in form and substance satisfactory to Itamar (the “Letter of Credit”).

    	 	Page 10

     

    

 

 

(c)          Any
invoiced amount, which is not fully paid when due, will bear interest at the rate of one and one half percent (1.5%) per month
or portion thereof.

 

(d)         All
payments referred to herein shall be in net freely transferable, free of withholding income or other taxes or deductions.

 

8.4           Risk
of loss and damage for all Products ordered by Distributor shall pass to Distributor upon delivery. Title to all Products ordered
by Distributor shall pass to Distributor upon receipt by Itamar of payment pertaining to the Products and until such time Itamar
shall retain full ownership rights in such Products.

 

8.5           Distributor’s
sole compensation for its Services and for the sale of the Products in the Territory shall consist of profits on its sales to
customers. No compensation, commission, fee, bonus, reimbursement or any other form of payment shall be payable to Distributor.

 

8.6           Subject
to any applicable regulatory requirements, Itamar reserves the right to discontinue the manufacture or sale of any or all of the
Products upon sixty (60) days prior written notice to Distributor, and Itamar shall not be liable to Distributor for any liability
imposed upon or damage suffered by Distributor as a result of any such discontinuation. Notwithstanding anything to the contrary,
Itamar shall fulfill existing accepted Orders if it elects to discontinue manufacture or sale of any of the Products.

 

LIMITED WARRANTY

 

9.1           Warranties
hereunder are solely for the benefit of Distributor’s direct customers, and the ultimate end users of the Products. Distributor
shall be responsible to its customers for any and all warranties, which it makes relating to Products apart from Itamar’s
warranties set forth in this Section 9.

 

9.2           Itamar
warrants that each Product to be delivered hereunder will be free of defects in material and workmanship under normal use and
service for the Warranty Period (as defined hereunder). For the purpose of this Section 9 the “Warranty Period” shall
mean eighteen (18) months from the date of delivery to Distributor of the Product(s).

 

9.3           If,
during the Warranty Period, a Product or any component of the Products becomes defective by reason of material or workmanship,
and provided the Distributor immediately notifies Itamar of such defect, Itamar may, at its option, supply a replacement, or request
the return of equipment to Itamar’s premises for repair. Distributor/customer must return all Products to Itamar and pay
shipping and handling costs of the return to Itamar’s premises. Prior to returning any Product, whether for replacement
or repair Distributor must obtain a return material authorization (“RMA”) number from Itamar, and display such RMA
number prominently on the packaging for any such returned Products. Distributor must return all Products to Company. Itamar shall
pay all shipping charges for the return of the repaired or replacement Product to Distributor/customer. Any Products returned
to Company other than in accordance with the terms of this Agreement may be refused by Company, at its sole discretion.

 

    	 	Page 11

     

    

 

Return of the repaired or replacement
Products to the customer's original destination shall be at the expense of Itamar unless Itamar determines, at its sole discretion,
that the Product is not defective within the terms of the warranty, in which event Distributor shall pay Itamar all costs of handling,
transportation and labor at Itamar's then prevailing rates. Repaired or replacement Products shall be shipped to the destination
designated by Distributor. Risk of loss or damage to returned Products shall be borne by Distributor until delivery to Itamar’s
premises.Risk of loss of or damage to repaired or replacement Products shall be borne by Itamar until delivery to the destination
designated by Distributor, unless Itamar determines that the Product is not defective within the terms of the warranty. This defective
product determination will not be unduly withheld.

 

9.4           All
Products or parts that have been replaced shall be the property of Itamar. Itamar shall be released from all obligations under
its warranty and this warranty shall not apply to any Products or component parts, that (a) have been damaged by improper operation,
tampering with, improper maintenance, misuse, accident, or neglect, or were subject to any of the prohibited activities described
in Section 5.3 above; (b) have been used in a manner not in accordance with the instructions supplied by Itamar; (c) have had
changes or repairs made without written authorization of Itamar to do so or by inadequate and/or unqualified personnel; (d) were
incorporated into another product without the prior written approval of Itamar; or (e) were stored in conditions and/or for such
long period of time contrary to the guidelines of Itamar which proves to be inadequate or unreasonable.

 

9.5           Repaired
or replaced parts shall be covered by this warranty for a period of the greater of (i) the remainder of the Warranty Period hereunder,
(ii) one hundred eighty (180) days from the date of delivery of the repaired or replaced parts or Products by Itamar, or (iii)
the minimum legal or regulatory requirement that is in effect in the Territory.

 

9.6           THE
ABOVE WARRANTIES GIVEN BY ITAMAR ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE ABOVE WARRANTIES CONSTITUTE ITAMAR’S SOLE AND EXCLUSIVE LIABILITY
FOR DEFECTIVE OR NONCONFORMING PRODUCTS. NO OTHER WARRANTIES OF ANY KIND, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED SHALL APPLY.

 

Notwithstanding anything herein
contained to the contrary, this warranty of repair and replacement shall be the sole and exclusive remedy available to Distributor's
customers for any Products delivered hereunder which are found to be defective. However, this shall not limit any claims to be
made by Distributor or Distributor’s customers under applicable Japanese laws.

 

Distributor and Distributor’s
direct customers shall be entitled to purchase from Itamar annual maintenance support services as well as an extended warranty
following the end of the Warranty Period, set forth in Appendix A.

 

INDEMNITY/LIMITATION OF LIABILITY

 

10.1         Distributor
hereby releases and discharges Itamar, its officers, directors, employees and agents in advance and agrees that it shall indemnify,
defend and hold them harmless from any and all loss, damage, cost and/or expense (including attorney fees) arising out of or in
connection with (i) Distributor's acts or omissions; or (ii) any breach of this Agreement by Distributor, or (iii) Distributor’s
failure to obtain permits, approvals, authorizations and/or clearances, provided, however, that Distributor shall have no such
liability (a) to the extent that any claims result from Itamar's gross negligence or willful misconduct, or (b) if Itamar does
not provide Distributor prompt notice of any such claims. Itamar shall cooperate with Distributor in the defense or settlement
of any claims, and shall neither admit liability for, nor settle any claims without Distributor's prior written consent.

 

    	 	Page 12

     

    

 

10.2         Itamar
hereby releases and discharges Distributor and agrees that it shall indemnify, defend and hold Distributor harmless from any and
all loss, damage, cost and/or expense (including attorney fees) arising out of or in connection with (1) Itamar's acts or omissions;
or (2) any material breach of this Agreement; provided, however, that Itamar shall have no such liability if Distributor does
not provide Itamar prompt notice of any such claims, and allow it to assume sole defense of any such claim. Distributor shall
fully cooperate with Itamar in the defense or settlement of any claims, and shall neither admit liability for nor settle any claims
without Itamar's prior written consent.

 

10.3         ITAMAR
SHALL NOT BE LIABLE TO ANY PERSON OR ENTITY FOR ANY SPECIAL, CONSEQUENTIAL OR INDIRECT DAMAGES, INCLUDING, BUT NOT LIMITED TO,
DAMAGES TO OR LOSS OF PROPERTY OR EQUIPMENT, LOSS OF PROFIT, LOSS OF USE OF DATA, LOSS OF REVENUES OR DAMAGES TO BUSINESS OR REPUTATION
ARISING FROM THE PERFORMANCE OR NON- PERFORMANCE OF ANY ASPECT OF THIS AGREEMENT OR ANY ORDER HEREUNDER OR FROM ANY CAUSE WHATSOEVER
ARISING FROM OR IN ANY WAY CONNECTED WITH THE MANUFACTURE, SALE, HANDLING, REPAIRS MAINTENANCE OR USE OF THE PRODUCTS, WHETHER
OR NOT ITAMAR SHALL HAVE BEEN MADE AWARE OF THE POSSIBILITY OF SUCH LOSS. NOTWITHSTANDING ANY OF THE FOREGOING, ITAMAR’S
LIABILITY FOR ANY CLAIMS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY PARTICULAR ORDER, SHALL IN THE AGGREGATE,
BE LIMITED TO THE TOTAL PRICE PAID UNDER SUCH PARTICULAR ORDER.

 

TERMINATION

 

11.1         Either
party may terminate this Agreement upon the occurrence of one of the following:

 

(a)          By
providing sixty (60) days written notice if the other party (i) becomes or is declared insolvent or bankrupt, is the subject of
any proceedings related to its liquidation, insolvency or for the appointment of a receiver or similar officer, and is unable
to terminate such proceedings within sixty (60) days, or if Itamar (1) makes an assignment of assets for the benefit of, or sells
all or substantially all of its capital stock or all of its assets to a third party not in accordance with Section 13.3 herein
(an “M&A Event”), or (2) Itamar enters into an agreement for the composition, extension, or readjustment of all
or substantially all of its obligations; or

 

(b)          the
other party breaches any of its obligations hereunder and fails to remedy such breach within sixty (60) days of notice of the
breach.

 

11.2         Itamar
may, in its sole discretion, terminate this Agreement upon the occurrence of one of the following:

 

(a)            immediately
upon the provison of written notice if:

 

	 	(1)	Distributor does not achieve the Minimum Purchase Requirement
    in either 2014 or 2015;

 

	 	(2)	Distributor does not achieve at least [***] of the Minimum Purchase
    Requirement in either 2016, 2017 or 2018; or

 

    	 	Page 13

     

    

 

 

	 	(3)	Distributor does not achieve at least [***] of the Minimum Purchase
    Requirement in any quarter during any calendar year.

 

(b)          upon
thirty (30) days written notice to the Distributor to the extent applicable, Distributor fails to receive all Required Approvals
within one (1) month from the Effective Date of this Agreement; or

 

(c)          immediately
upon the provision of written notice if Distributor violated or breached the provisions of Section 2.5 herein.

 

11.3         Remedies
available to Itamar or Distributor under this Section 11, shall in no event constitute a waiver, affect or diminish either party’s
rights to other remedies either under any applicable law or by equity.

 

EFFECTS OF TERMINATION

 

12. 1       Upon
termination or expiration of this Agreement for any reason, the performance of obligations of both parties under this Agreement
shall cease; however, the following provisions of this Agreement shall survive: Section 5 (Proprietary Rights and Marks), Section
6 (Confidentiality), Section 9 (Limited Warranty), Section 10 (Indemnity/Limitation of Liability), Section 11 (Termination), Section
12 (Effects of Termination), Section 13.10 (Governing Law/Disputes), and Section 13.5 (Relationship of Parties

 

12.2        Upon termination,
cancellation or expiration of this Agreement for any reason:

 

(a)          Distributor
shall be obligated to pay, and shall pay Itamar the balance of any and all payments due to Itamar for units of the Products ordered
up to and including the date of termination in accordance with the set payment schedule for such payments. Any unpaid amount shall
accrue interest as set forth in Section 8.3(b) above; upon such payment, Itamar shall deliver said units;

 

(b)          Distributor
may sell further any unsold inventory of its Products. To the extent permitted by applicable law, such sales shall be at prices
no less than those listed as the End User List Price on the Data Exhibit. As soon as Distributor no longer has any unsold inventory,
Distributor shall remove all reference to Itamar, if any, from its letterhead, business forms, advertising literature, and place
of business, shall cease to use any name or Proprietary Mark of Itamar and shall refrain from representing itself as a sales representative
or distributor of Itamar or from doing any act or making any representation in connection with Itamar’s Products;

 

(c)          Distributor
and Itamar shall promptly return to the other party any Confidential Information, Documentation as well as all sales data, price
lists, catalogues, advertising literature and display material in respective possession;

 

(d)          All
licenses granted pursuant to Section 2 shall be terminated;

 

(e)          Distributor
shall transfer to Itamar, or its designees, all Required Approvals and Itamar shall pay all governmental fees Distributor has
incurred to obtain and maintain such Required Approvals up to the date of termination (including [***]). All governmental fees
and other costs related to such transfers shall be borne by Itamar. Distributor shall cooperate and provide information as necessary
in order for Itamar to make the necessary applications.

 

    	 	Page 14

     

    

 

(f)          Itamar
shall fulfill its Product delivery obligations for any Orders fully paid for in advance except in the event this Agreement was
terminated or cancelled in accordance with any of the provisions of Section 11.2 above, notwithstanding anything to the contrary.

 

MISCELLANEOUS PROVISIONS

 

13.1         Notices
and other communications under this Agreement shall be in writing and sent to each Party at its address, electronic mail or fax
number set forth herein or, in the event of a change in any address, electronic mail, or fax number, then to such other address,
electronic mail, or fax number as to which notice of the change is given. Notice will be deemed given twenty-four (24) hours after
it was sent by electronic mail or fax or five (5) days after it was sent by registered mail.

 

13.2         This
Distribution Agreement, together with the Data Exhibit and appendices referred to herein which are an integral part hereof, sets
forth the entire agreement between the parties on the subject hereof and supersedes any previous agreement, understanding, memorandum,
letter of intent or representation on the subject matter hereof. This Distribution Agreement may be amended only by written agreement
signed by the duly empowered representatives of both parties.

 

13.3         This
Distribution Agreement may not be assigned by either Party without the prior written consent of the other party, except that Itamar
and Distributor may assign this Distribution Agreement to any entity which is the successor to any part of its business related
to this Distribution Agreement by merger or change of control transaction, or to any party which acquires all or substantially
all of its assets related to this Distribution Agreement, provided that such entity agrees to assume all obligations of the assigning
party under this Distribution Agreement from and after the date of such assignment.

 

13.4.       
Any failure by either party to enforce any provision of this Distribution Agreement on one occasion shall in no way constitute
a waiver or affect its right to require the performance thereof by the other party nor affect the validity of such provision or
any other provision of this Distribution Agreement, except when this Agreement expressly provides otherwise.

 

13.5         This
Distribution Agreement is not intended by the parties to constitute or create a joint venture, pooling arrangement, partnership,
agency, employer-employee relationship or a formal business organization of any kind. Itamar and Distributor shall be independent
contractors with each other for all purposes at all times and no party shall act, as or hold itself out as, agent for the other,
unless so designated in a separate agreement signed by the principal. None of the parties shall bind or attempt to bind any other
party to any agreement or to the performance of any obligation, nor shall any party represent that it has the right to enter into
any undertaking on behalf of the other.

 

13.6         Non-performance
of a Party (other than for the payment of money) shall be excused to the extent that performance is rendered impossible by strike,
fire, earthquake, flood, governmental acts or orders or restrictions, terrorist acts, failure of suppliers, or any other reason
where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct
of the non-performing Party.

 

    	 	Page 15

     

    

 

13.7         If
any provision of this Agreement or the application thereof to any person or entity or circumstance is invalid or unenforceable
to any extent, the remainder of this Agreement and the application of such provisions to other persons or entities or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

13.8         Each
party agrees that a breach of the obligations of Sections 5 PROPRIETARY RIGHTS AND MARKS or 6 CONFIDENTIALITY will result in the
substantial likelihood of irreparable harm and injury to the other party, for which monetary damages alone would be an inadequate
remedy, and which damages are difficult to accurately measure. Accordingly, each party agrees that the other party shall have
the right to obtain immediate injunctive relief, in addition to any other rights and remedies available at law or in equity, including
without limitation, the right to terminate this Agreement and seek damages or other legal or equitable relief allowed by the federal
and state courts.

 

13.9         Neither
Party shall disclose, publicize or advertise in any manner the discussions or negotiations contemplated by the Agreement without
the prior written consent of the other Party, except as may be required by law.

 

13.10       Governing
Law; Disputes. This Agreement and all Orders issued shall be governed by and construed in accordance with the laws of New
York, New York, United States of America. The competent courts and tribunals situated in Manhattan, New York, United States of
America shall have sole and exclusive jurisdiction in any dispute or controversy arising out of or relating to this Distribution
Agreement.

 

	ITAMAR MEDICAL LTD	 	Philips Respironics GK (“Distributor”)
	 	 	 
	By:	/s/ Eldad Singer	 	By:	/s/ Danny Risberg
	Name:	Eldad Singer	 	Name:	Danny Risberg
	Title:	President, Itamar	 	Title:	Executive Manager
	 	Medical Japan	 	 	 
	 	VP Sales, Itamar Medical	 	 	 
	 	Feb 24, 2014	 	 	 

 

    	 	Page 16

     

    

 

APPENDIX A

Support and other optional services to be provided by Distributor

 

Itamar-Medical Ltd. offers
following optional software and hardware Extended Service Plan for Itamar products including, but not limited to:

 

	 	·	Free software updates when released

 

	 	·	Hardware troubleshooting and support

 

	 	·	Software troubleshooting and support

 

	 	·	Free Remote training for product operation (up to 4 hours per year)

 

	 	·	Preventive Maintenance includes pro-active part replacements

 

	 	·	Device diagnosis and software support through phone callor email (support available
    9 AM to 5 PM)

 

    	 	Page 17

     

    

 

APPENDIX B

Format of Quarterly Report to be sent to Company

 

	No	 	Date
    of sold	 	Product/Item	 	S/N	 	Name
    of account	 	Name
    of End user	 	Address	 	Phone
    #	 	Note
	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	Page 18

     

    

 

APPENDIX C

 

For the duration of the Agreement and
subject to Itamar’s full compliance with its obligations hereunder, Itamar is granted the right to use the wordmark PHILIPS
as specified on www.ourbrand.philips.com at which the ID and password for the site will be informed from Distributor, in printed
advertising matter as well as on-line advertising communications, in its showrooms and exhibition stands, for the sole purpose
of advertising the Distributor Products in Israel, and in accordance with the following:

 

-           Insofar
as advertisements, showrooms and exhibition stands or other promotional content include the promotion of non-Distributor branded
products, Itamar shall follow Itamar’s trading style and identity.

 

-           Itamar
is not allowed to use the Philips Shield or the tag line “Innovation and you”.

 

-           Itamar
is not entitled to register or use any domain name or URL containing the name Philips or any other trademark of Distributor or
any of Distributor’s affiliates.

 

-           Unless
previously approved by Distributor in writing, Itamar is not authorised to use the wordmark PHILIPS or any other trademark
of Distributor or any of Distributor’s affiliates in search engines advertising, including but not limited to the Adwords
program of Google.

 

-           The
application and use of the wordmark PHILIPS may only occur in a form previously approved by Distributor in writing. Itamar
shall provide Distributor with drafts of the proposed use of the wordmark PHILIPS and await approval from Distributor in
writing, before commencing use of the wordmark PHILIPS. If Distributor rejects the proposed use of the wordmark PHILIPS,
Itamar will modify the use in accordance with Distributor’s directions. Artwork will be provided by Distributor upon Itamar’s
request.

 

If, in Distributor's opinion, Itamar does
not adhere to the requirements and directions provided by Distributor and Itamar fails to remedy this deficiency within one month
following receipt of a written notification from Distributor, Distributor may withdraw the permission forthwith.

 

Itamar will not be entitled to use for
its own activities any statutory name, trade name, or other name, indication or description, of which the name Philips, any name
similar thereto or any other trademark of Distributor or the Philips group of companies forms part.

 

Itamar hereby acknowledges all right,
title and interest of the registered proprietor Koninklijke Philips N.V. in and to the name Philips and the wordmark PHILIPS.
Itamar shall not obtain any rights to said name or trademark by virtue of the use and/or marketing of the Distributor Products
marked or branded with said name and/or trademark and the applications therefor as permitted hereunder shall not be construed
as use for Itamar's benefit.

 

Upon termination of the Agreement for
any cause, Itamar shall cease all uses of the name Distributor and the wordmark PHILIPS.

 

    	 	Page 19

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