Document:

Exhibit 4.1

 

[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. 87612E BJ4	 	PRINCIPAL AMOUNT: $	 
	ISIN US87612EBJ47	 	 

 

	REGISTERED NO.	 	 

 

TARGET CORPORATION

 

2.350% Notes due 2030

 

TARGET CORPORATION,
a corporation duly organized and existing under the laws of the State of Minnesota (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 MILLION DOLLARS ($ ) on February 15, 2030 and to pay
interest thereon from January 28, 2020 or from the most recent Interest Payment Date to which interest has been paid or duly provided
for semi-annually on February 15 and August 15 of each year, commencing August 15, 2020, at the rate of 2.350% per annum, 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 shall, 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 the date 15 calendar days prior to that
Interest Payment Date (whether or not a Business Day). As used herein, “Business Day” means 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.

 

Any interest not punctually
paid or duly provided for shall 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 shall be made in immediately available funds at the office or agency of the Company maintained for that purpose
in New York, New York 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 in writing not less than 10 days prior to the date of such payment.
Payment of principal of and interest on this Security at Maturity shall be made against presentation of this Security at the office
or agency of the Company maintained for that purpose in New York, New York.

 

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, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    	 	2	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed under its corporate seal.

 

	DATED: January 28, 2020	 
	 	 
	 	TARGET CORPORATION
	 	 
	 	 
	 	By:	 
	 	 	Name: 	Don H. Liu
	 	 	Title:	 Executive Vice President, 

Chief Legal & Risk
Officer and 

Corporate Secretary

 

	 	 
	[SEAL]	 
	 	Attest:	 
	 	 	Name: 	Daniel Fleming
	 	 	Title: 	Vice President and Assistant Treasurer

 

     

     

    

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series referred to in the

within-mentioned Indenture.

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

 

 

	By:	 	 	 
	 	Authorized Signatory	 	

 

     

     

    

 

[Reverse of Note]

 

TARGET CORPORATION

 

2.350% Notes due 2030

 

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 August 4, 2000 between the Company and The Bank of New York Mellon Trust Company,
N.A. (as successor to Bank One Trust Company, N.A.), as trustee, as supplemented by the First Supplemental Indenture dated as of
May 1, 2007, between the Company and The Bank of New York Trust Company, N.A., as trustee, and as further amended or supplemented
from time to time (herein called the “Indenture”) (in its capacity as trustee, The Bank of New York Mellon Trust
Company, N.A., being 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 designated on the face
hereof, such series being limited in initial aggregate principal amount to $750,000,000; provided, however, that the Company
may, without the consent of the Holders of the Securities of this series, issue additional Securities with the same terms as the
Securities of this series, and such additional Securities shall be considered part of the same series under the Indenture as the
Securities of this series.

 

This Security is issuable
only in registered form in denominations of $2,000 or any amount in excess thereof which is an integral multiple of $1,000.

 

The Securities of this
series shall not be entitled to any sinking fund.

 

Optional Redemption

 

The Securities of this
series are redeemable on at least 10 days’, but no more than 45 days’, prior written notice mailed (or otherwise delivered
in accordance with the applicable procedures of DTC) to each Holder of the Securities to be redeemed, either in whole at any time
or in part from time to time prior to November 15, 2029 (three months prior to the Stated Maturity of the Securities of this series,
the “Par Call Date”), at a Redemption Price for the Securities to be redeemed on any Redemption Date equal to
the greater of the following amounts:

 

    	 	5	 

     

    

 

• 100% of the
principal amount of the Securities being redeemed on the Redemption Date; or

 

• the sum of the present
values of the Remaining Scheduled Payments of principal and interest that would have been payable if the Securities being redeemed
on that Redemption Date matured on the Par Call Date (excluding interest accrued to the Redemption Date), discounted to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury
Rate, plus 10 basis points;

 

plus, in each case, accrued and unpaid
interest on the Securities being redeemed to, but excluding, the Redemption Date.

 

Any redemption of the
Securities of this series may, at the Company’s discretion, be subject to one or more conditions precedent. Any related
written notice of redemption will describe the conditions precedent and, at the Company’s discretion, will indicate that
any Redemption Date may be delayed or the written notice rescinded if all such conditions precedent shall not have been satisfied
or waived by the Company.

 

“Treasury
Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity
or interpolated yield to maturity of the Comparable Treasury Issue.  In determining this rate, the price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) shall be assumed to be equal to the Comparable Treasury Price
for such Redemption Date.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having an actual
or interpolated maturity comparable to the remaining term of the Securities of this series to be redeemed that would be utilized,
at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of such Securities.

 

“Independent
Investment Banker” means any of BofA Securities, Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC,
or their respective successors as may be appointed from time to time by the Quotation Agent after consultation with the Company;
provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York
City (a “primary treasury dealer”), another primary treasury dealer shall be substituted therefor by the Company.

 

“Comparable
Treasury Price” means (A) the arithmetic average of the Reference Treasury Dealer Quotations for such Redemption
Date after excluding the highest and lowest Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer
than three Reference Treasury Dealer Quotations, the arithmetic average of all Reference Treasury Dealer Quotations for such Redemption
Date.

 

    	 	6	 

     

    

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the arithmetic
average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer by 3:30 p.m.
(New York City time) on the third Business Day preceding such Redemption Date.

 

“Reference
Treasury Dealer” means each of BofA Securities, Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC,
or their respective successors and any other primary treasury dealer selected by the Quotation Agent after consultation with the
Company.

 

“Remaining
Scheduled Payments” means, with respect to any Security of this series, the remaining scheduled payments of the principal
and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however, that,
if such Redemption Date is not an Interest Payment Date with respect to such Security, the amount of the next scheduled interest
payment thereon shall be reduced by the amount of interest accrued thereon to such Redemption Date.

 

“Quotation
Agent” means, for purposes of determining the Redemption Price, Goldman Sachs & Co. LLC or such other primary treasury
dealer as may be selected by the Company.

 

In addition, the Company
may redeem all or part of the Securities of this series, on at least 10 days’, but no more than 45 days’, prior written
notice mailed (or otherwise delivered in accordance with the applicable procedures of DTC) to each Holder of the Securities to
be redeemed, at any time or from time to time on and after the Par Call Date, at the Company’s option, at a Redemption Price
equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest on the Securities being
redeemed to, but excluding, the Redemption Date.

 

A partial redemption
of the Securities of this series may be effected by such method as the Trustee shall deem fair and appropriate and may provide
for the selection for redemption of a portion of the principal amount of the Securities of this series equal to an authorized denomination.

 

For the avoidance of
doubt, notice of any redemption shall be mailed (or otherwise delivered in accordance with the applicable procedures of DTC) at
least 10 days but not more than 45 days before the Redemption Date to each Holder of the Securities of this series to be redeemed.

 

Unless the Company
defaults in payment of the Redemption Price, on and after the Redemption Date interest shall cease to accrue on the Securities
of this series or portions thereof called for redemption.

 

    	 	7	 

     

    

 

Change of Control Offer

 

If a Change of Control
Triggering Event occurs, unless the Company has exercised its option to redeem the Securities of this series, the Company shall
be required to make an offer (a “Change of Control Offer”) to each Holder of the Securities of this series to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities
on the terms set forth herein. In a Change of Control Offer, the Company shall be required to offer the Change of Control Payment.
Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control,
but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be mailed
to Holders of the Securities of this series describing the transaction that constitutes or may constitute the Change of Control
Triggering Event and offering to repurchase such Securities on the date specified in the notice, which date shall be no earlier
than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”).
The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer
is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date.

 

In order to accept
the Change of Control Offer, the Holder must deliver to the Paying Agent, at least five Business Days prior to the Change of Control
Payment Date, this Security together with the form entitled “Election Form” (which form is annexed hereto) duly completed,
or a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange, or the Financial Industry
Regulatory Authority or a commercial bank or trust company in the United States setting forth:

 

(i)       the
name of the Holder of this Security;

 

(ii)      the
principal amount of this Security;

 

(iii)     the
principal amount of this Security to be repurchased;

 

(iv)     the
certificate number or a description of the tenor and terms of this Security;

 

(v)      a
statement that the Holder is accepting the Change of Control Offer; and

 

(vi)     a guarantee
that this Security, together with the form entitled “Election Form” duly completed, will be received by the Paying
Agent at least five Business Days prior to the Change of Control Payment Date.

 

Any exercise by a Holder of its election
to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be accepted for less than the entire
principal amount of this Security, but in that event the principal amount of this Security remaining outstanding after repurchase
must be equal to $2,000 or an integral multiple of $1,000 in excess thereof.

 

    	 	8	 

     

    

 

On the Change of Control
Payment Date, the Company shall, to the extent lawful:

 

		(i)	accept for payment all Securities of this series or portions of such Securities properly tendered
pursuant to the Change of Control Offer;

 

		(ii)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all
Securities of this series or portions of such Securities properly tendered; and

 

		(iii)	deliver or cause to be delivered to the Trustee the Securities of this series properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Securities of this series or portions of
such Securities being repurchased.

 

The Company shall not
be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes
such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and
the third party purchases all Securities of this series properly tendered and not withdrawn under its offer. In addition, the Company
shall not repurchase any Securities of this series if there has occurred and is continuing on the Change of Control Payment Date
an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of
Control Triggering Event.

 

The Company shall comply
with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Securities of this series as a result of a Change of Control Triggering Event. To the extent that the
provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Securities of
this series, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations
under the Change of Control Offer provisions of the Securities of this series by virtue of any such conflict.

 

For purposes of the
Change of Control Offer provisions of the Securities of this series, the following terms are applicable:

 

“Change of
Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance
or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially
all of the assets of the Company and its Subsidiaries, taken as a whole, to any person, other than the Company or a Subsidiary;
(2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is
that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly,
of more than 50% of the Company’s outstanding Voting Stock or other Voting

 

    	 	9	 

     

    

 

Stock into which the Company’s Voting Stock
is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) the Company
consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in
any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such
other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares
of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged
for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately
after giving effect to such transaction; or (4) the adoption of a plan relating to the Company’s liquidation or dissolution.
Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control under clause (2) above if
(i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the direct or indirect
holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders
of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that transaction no
person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly,
of more than 50% of the Voting Stock of such holding company. The term “person,” as used in this definition, has the
meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

“Change of
Control Payment” means a payment in cash equal to 101% of the aggregate principal amount of Securities of this series
repurchased, plus accrued and unpaid interest, if any, on the Securities to the date of repurchase.

 

“Change of
Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 

“Fitch”
means Fitch Ratings, Inc., and its successors.

 

“Investment
Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s
and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or
rating agencies selected by the Company.

 

“Moody’s”
means Moody’s Investors Service, Inc., and its successors.

 

“Rating Agencies”
means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s or S&P ceases to rate
the Securities of this series or fails to make a rating of such Securities publicly available for reasons outside of the Company’s
control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the
Exchange Act selected by the Company (as certified by a resolution of the Company’s Board of Directors) as a replacement
agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

    	 	10	 

     

    

 

“Rating Event”
means the rating on the Securities of this series is lowered by at least two of the three Rating Agencies and the Securities of
this series are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period
(which period shall be extended so long as the rating of the Securities of this series is under publicly announced consideration
for a possible downgrade by any of the Rating Agencies) commencing 60 days prior to the first public notice of the occurrence of
a Change of Control or the Company’s intention to effect a Change of Control and ending 60 days following consummation of
such Change of Control.

 

“S&P”
means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

“Voting Stock”
means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as
of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors
of such person.

 

The provisions of Article
Thirteen of the Indenture shall apply to the Change of Control Offer provisions of this Security except as and to the extent otherwise
specified in this Security. For purposes of the Indenture, a Change of Control Payment Date shall be deemed to be a Repayment Date.

 

Other Provisions

 

If an Event of Default
with respect to Securities of this series as set forth in the Indenture shall occur and be continuing, the principal of the Securities
of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

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 each
series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding 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.

 

The Indenture contains
provisions for defeasance at any time of (i) the entire indebtedness on this Security and (ii) certain restrictive covenants
and certain Events of Default, upon compliance by the Company with certain conditions set forth therein, which provisions apply
to this Security.

 

    	 	11	 

     

    

 

Upon due presentment
for registration of transfer of this Security at the office or agency of the Company in New York, New York, a new Security or Securities
of this series in authorized denominations for an equal aggregate principal amount shall 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 (i) 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
Exchange Act and a successor depositary is not appointed within 90 days, (ii) 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 (iii) 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, redemption provisions, Stated Maturity 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 shall not be entitled to receive
physical delivery of Securities in definitive form and shall not be considered the Holders hereof for any purpose under the Indenture.

 

No reference herein
to the Indenture and no provision of this Security or of 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 that in the event the Company deposits money or Government Obligations as provided in Section 401
or 403 of the Indenture, such payments shall be made only from proceeds of such money or Government Obligations.

 

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 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.

 

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, either directly or through
the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise, all such

 

    	 	12	 

     

    

 

liability being, by the acceptance hereof and as part of the consideration for, and as a condition of, the
issuance hereof, expressly waived and released.

 

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.

 

    	 	13	 

     

    

 

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)

 

     

     

    

 

the within Security of TARGET CORPORATION
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.

 

     

     

    

 

 

 

ELECTION FORM

 

TO BE COMPLETED ONLY IF THE HOLDER

ELECTS TO ACCEPT THE CHANGE OF CONTROL
OFFER

 

 

 

The undersigned hereby
irrevocably requests and instructs the Company to repurchase the within Security (or the portion thereof specified below), pursuant
to its terms, on the Change of Control Payment Date specified in the Change of Control Offer, for the Change of Control Payment
specified in the within Security, to the undersigned, ________________________________________________________________, at ___________________________________________________________
(please print or typewrite name and address of the undersigned).

 

For this election
to accept the Change of Control Offer to be effective, the Company must receive, at the address of the Paying Agent set forth below
or at such other place or places of which the Company shall from time to time notify the Holder of the within Security, either
(i) this Security with this “Election Form” form duly completed, or (ii) a telegram, telex, facsimile transmission
or a letter from a member of a national securities exchange or the Financial Industry Regulatory Authority or a commercial bank
or a trust company in the United States setting forth (a) the name of the Holder of the Security, (b) the principal amount
of the Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or description of
the tenor and terms of the Security, (e) a statement that the option to elect repurchase is being exercised, and (f) a
guarantee stating that the Security to be repurchased, together with this “Election Form” duly completed will be received
by the Paying Agent five Business Days prior to the Change of Control Payment Date. The address of the Paying Agent is The Bank
of New York Mellon Trust Company, N.A., c/o The Bank of New York, 101 Barclay Street, New York, New York 10286.

 

If less than the entire
principal amount of the within Security is to be repurchased, specify the portion thereof (which principal amount must be $2,000
or an integral multiple of $1,000 in excess thereof) which the Holder elects to have repurchased: $__________.Exhibit 10.4

 

Itamar Medical Ltd.

 

2007 ISRAELI SHARE OPTION PLAN

 

1.     
PURPOSE

 

The purpose of this Share
Option Plan is to secure for Itamar Medical Ltd. and its shareholders the benefits arising from ownership of share capital by employees,
officers directors and consultants of the Company and its Affiliates (as defined below), who are expected to contribute to the
Company's future growth and success.

 

2.     
DEFINITIONS

 

2.1     DEFINED
TERMS

 

Initially capitalized terms,
as used in this Plan, shall have the meaning ascribed thereto as set forth below:

 

	 	"Administrator"	means the Board of Directors
        of the Company, or a committee to which the Board of Directors shall have delegated power to act on its behalf with respect to
        the Plan. Subject to the Articles of Association of the Company, as may be amended from time to time, the Administrator, if it
        is a committee, shall consist of such number of members (but not less than two (2)) as may be determined by the Board.
	 	 	 
	 	"Affiliate(s)"	means a present or future company
        that either (i) Controls Itamar Medical Ltd. or is Controlled by Itamar Medical Ltd. ; or (ii) is Controlled by the same person
        or entity that Controls Itamar Medical Ltd..
	 	 	 
	 	"Allocate" or "Allocated"	with respect to Options,
means the allocation of Options by
the Company to the Trustee on behalf of a Participant.
	 	 	 
	 	"Cause"	means, when used in connection with the termination of a Participant's employment with, or service to the Company or an Affiliate, as a result of a basis for termination, including, but not limited to: dishonesty toward the Company or Affiliate, insubordination, substantial malfeasance or nonfeasance of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or Affiliate; or, any substantial breach by the Participant of (i) his or her employment or service agreement or (ii) any other obligations toward Company or Affiliate.

 

     

     

    

 

	 	"Commencement Date"	means the date of commencement of the vesting schedule with respect to a Grant of Options which, unless otherwise determined by the Administrator, shall be the date on which such Grant of Options shall be Allocated.

                                                                                 

	 	"Company"	means
Itamar Medical Ltd., a company incorporated under the laws of the State of Israel.
	 	 	 
	 	"Consultant"	means an Israeli resident
        who is not entitled to receive Options under Section 102, on behalf of whom an Option is Granted under Section 3i.
	 	 	 
	 	"Control" or "Controlled"	shall have the meaning ascribed
        thereto in Section 102.
	 	 	 
	 	"Disability"	means
physical or mental impairment or sickness of a Participant, making it impossible for the Participant to continue such Participant's
employment with or service to the Company or Affiliate.
	 	 	 
	 	"Exercise
Price"	means, the price determined by the Administrator in accordance with Section 7.1 below which is to be paid to the
Company in order to exercise a Granted Option and convert such Option into an Underlying Share.
	 	 	 
	 	"Grant
Letter"	means a letter from the Company or Affiliate to a Participant in which the Participant is notified of the decision
to Grant to the Participant Options according to the terms of the Plan. The Grant Letter shall specify (i) the Tax Provision under
which the Option is Granted; (ii) the Tax Track that the Company chose according to Section 11 of the Plan (if applicable); (iii)
the Exercise Price; and (iv) the number of Options Granted to the Participant.
	 	 	 
	 	"Grant of Options"	with respect
to Options, means the grant of Options by the
Company to a Participant pursuant to a Letter of Grant
	 	 	 
	 	"Holding
Period"	means with regard to Options Granted under Section 102, the period in which the Allocated Options granted to a
Participant or, upon exercise thereof the Underlying Shares, are to be held by the Trustee on behalf of the Participant, in accordance
with Section 102, and pursuant to the Tax Track which the Company selects.
	 	 	 
	 	"Israeli Participant"

                             
	means, an Israeli
resident who is an employee, officer or director
of the Company or any Affiliate (provided that such person does not Control the Company as such term is defined in the Tax Ordinance),
on behalf of whom an Option is Granted pursuant to Section 102.

 

    2

     

    

 

	 	"Law"	means
the laws of the State of Israel as are in effect from time to time.
	 	 	 
	 	"Merger Transaction"
	(i) a sale of all or substantially all of the assets of the Company; or (ii) a sale
                                                                                                               (including an exchange) of all or substantially all of the shares of the capital stock of the Company; or (iii) a merger,
                                                                                                               consolidation or like transaction of the Company with or into another corporation.
	 		 
	 	“Notice of Exercise”	shall have the meaning
set forth in Section 7.4 below. 
	 	 	 
	 	“Option”	means an option to purchase one Share of the Company.
	 	 	 
	 	"Non-Qualified Israeli Participant"
	means an Israeli resident who
is not qualified to receive Options under the provisions of Section
102, on behalf of whom an Option is Granted
pursuant to Section 3i.
	 	 	 
	 	"Participant"	means
an Israeli Participant, or a Non-Qualified Israeli Participant, or a Consultant.
	 	 	 
	 	"Plan" or "Option Plan"	means
this Share Option Plan, as may be amended from time to time.
	 	 	 
	 	"Retirement"	means
the termination of a Participant's employment as a result of his or her reaching the earlier of (i) the age of retirement as defined
by Law; or (ii) the age of retirement specified in the Participant's employment agreement.
	 	 	 
	 	"Section 102"	means Section 102 of the
Tax Ordinance.
	 	 	 
	 	“Section 102 Rules”	means the Income Tax
                                   Rules (Tax Relief for Issuance of Shares to Employees), 2003.
	 	 	 
	 	"Section 3(i)" or "Section 3(i)
        Rules"	means section 3(i) of the
        Israeli Tax Ordinance and the applicable rules thereto or under applicable regulations.
	 	 	 
	 	"Share(s)"	means an ordinary share
        of the Company, having a par value of 0.01 NIS.
	 	 	 
	 	"Tax Ordinance"	means the Israeli Income
        Tax Ordinance [New Version], 1961, as amended, and any regulations, rules, orders or procedures promulgated thereunder.
	 	 	 
	 	"Tax Track"	means one of the three tax
        tracks described under Section 102, specifically: (1) the "Capital Gains Track Through a Trustee"; (2)
        "Income Tax Track Through a Trustee"; or (3) the "Income Tax Track Without a Trustee"; each as defined in Sections
        11.1-11.2 of this Plan, respectively.

 

    3

     

    

 

	 	"Tax Provision"	means, with respect to the
        Grant of Options, the provisions of one of the three Tax Tracks in Section 102, or the provisions of 3i.
	 	 	 
	 	"Term of the Options"	means, with respect to Granted
        but unexercised Options, the time period set forth in Section 9 below.
	 	 	 
	 	"Trustee"	means a Trustee appointed by
        the Company to hold in trust, Allocated Options and the Underlying Shares issued upon exercise of such Options, on behalf of Participants.
	 	 	 
	 	"Underlying Shares"	means Shares issued or to be
        issued upon exercise of Granted Options all in accordance with the Plan.

 

2.2     GENERAL

 

Without derogating from
the meanings ascribed to the capitalized terms above, all singular references in this Plan shall include the plural and vice versa,
and reference to one gender shall include the other, unless otherwise required by the context.

 

3.      
SHARES AVAILABLE FOR OPTIONS

 

The total number of Underlying
Shares reserved for issuance under the Plan and any modification thereof, shall be determined from time to time by the Board of
Directors of the Company. Such number of Shares shall be subject to adjustment as required for the implementation of the provisions
of the Plan, in accordance with Section 4 below.

 

In the event that Options
Allocated under the Plan expire or otherwise terminate in accordance with the provisions of the Plan, such expired or terminated
Options shall become available for future Grants and Allocations under the Plan.

 

4.      
ADJUSTMENTS

 

Bonus Shares - In
the event that the Company distributes bonus shares and the record date for such distribution is subsequent to the date of grant
of the Options, but prior to their exercise or expiration, the number of Underlying Shares will be increased by the number of Shares
each Participant would have been entitled to had such Participant exercised the Options prior to the record date set for such distribution.
The Exercise Price of the Options will not be amended due to the increase in the number of Exercise Shares the Participant is entitled
to following a distribution of bonus Shares.

 

    4

     

    

 

Issuance of
Rights — In the event the Company's shareholders are issued rights for the purchase of any securities of the
Company, the Company will take actions to cause that such rights be offered on the same terms, mutatis mutandis, also to the
Participants who hold Options that have not yet been exercised or expired as if such Participants have exercised their
Options prior to the date determining the right to participate in the issuance of the aforesaid rights. The number of
Underlying Shares will not increase as a result of such issuance of rights.

 

For the avoidance of doubt the employees'
rights to securities of the Company in the event of a distribution of bonus shares and/or the issuance of rights as aforesaid,
will only apply at the Date of the Exercise.

 

Change in Capitalization -
In the event of a split or a consolidation of Shares, or any other capital event of a materially similar nature, the Company will
make the changes or the adjustments necessary in order to prevent the dilution or increase of the rights of the Participants within
the framework of the Plan with respect to the number and class of the Underlying Shares and/or the Exercise Price of each Option.

 

Cash Dividend — In the
event the Company distributes a dividend in cash and the record date for such distribution is subsequent to the date of grant of
the Options, but prior to the their exercise or expiration, the Exercise Price of each Option will be reduced by the dividend amount
net of tax.

 

Merger Transaction

 

In the event of a Merger
Transaction, the Administrator in its sole discretion shall decide:

 

		(A)	If and how the unvested Options shall be canceled, replaced or accelerated;

 

		(B)	If and how vested Options (including Options with respect to which the vesting
period has been accelerated according to Section (A) shall be exercised, replaced and/or sold by the Trustee or the Company (as
the case may be) on the behalf of Israeli Participants;

 

		(C)	How Underlying Shares issued upon exercise of the Options and held by the
Trustee on behalf of Participants shall be replaced and/or sold by the Trustee on behalf of the Participant.

 

Fraction of Shares - In any
event that the Company will be required to issue to a Participant fraction of Shares pursuant to this Section 4, the Company will
not issue fraction of Shares and the number of Shares shall be rounded down to the closest number of Shares.

 

For the purposes of this section,
the Company's calculation will be final, and the Participant shall have no claims or demands against the Company or anyone on its
behalf.

 

    5

     

    

 

5.       ADMINISTRATION
OF THE PLAN

 

5.1     POWER

 

Subject to the Law, the
Articles of Association of the Company, and any resolution to the contrary by the Company's Board of Directors, the Administrator
is authorized, in its sole and absolute discretion, to exercise all powers and authorities either specifically granted to it under
the Plan or necessary or advisable in the administration of the Plan (subject to the approval of the Board of Directors if such
approval is required by Law) including, without limitation;

 

(A)       to determine:

 

		(i)	the Participants in the Plan, the number of Options to be Granted for each
Participant's benefit and the Exercise Price;

 

		(ii)	the time or times at which Options shall be Granted;

 

		(iii)	whether, to what extent, and under what circumstances an Option may be settled,
canceled, forfeited, exchanged, or surrendered;

 

		(iv)	any terms and conditions in addition to those specified in the Plan under
which an Option may be Granted; and

 

		(v)	any measures, and to take actions, as deemed necessary or advisable for
the administration and implementation of the Plan.

 

(B)      
to interpret the provisions of the Plan and to take all actions resulting therefrom including without limitation;

 

		(i)	subject to Section 7, to accelerate the date on which any Allocated
                                                               Option under the Plan becomes exercisable;

 

		(ii)	to waive or amend Plan provisions relating to exercise of Options, including
exercise of Options after termination of employment, for any reason; and

 

		(iii)	to amend any of the terms of the Plan, or any prior determinations of the
Administrator;

 

5.2     LIMITATIONS

 

Notwithstanding the provisions of
Section 5.1 above, no interpretations, determinations or actions of the Administrator shall contradict the provisions of applicable
Law, and no waiver or amendment with respect to the Plan shall have a material adverse affect on any Participant's rights in connection
with any Granted Option under the Plan without receiving the consent of such Participant.

 

    6

     

    

 

6.       GRANT AND ALLOCATION
OF OPTIONS

 

6.1     CONDITIONS FOR
GRANT OF OPTIONS

 

Options may be Granted
at any time after:

 

		(A)	the grant has been approved by the necessary corporate bodies of the Company; and

 

		(B)	all other approvals, consents or requirements necessary by Law have been received or met.

 

6.2    
CONDITIONS FOR ALLOCATION OF OPTIONS 

 

Options may be Allocated at any time after:

 

		(A)	the Plan has been approved by the necessary corporate bodies of the Company; and

 

		(B)	30 days after a request for approval of the Plan has been submitted for
approval to the Israeli Income Tax Authorities pursuant to the requirements of the Tax Ordinance; and

 

		(C)	all other approvals, consents or requirements necessary by Law have been
received or met.

 

6.3     DATE OF GRANT OR ALLOCATION

 

		(a)	The date on which Options shall be deemed Granted under the Plan shall be the date on which the
Company shall notify the Participant in a Grant Letter that such Options have been Granted to the Participant ("Date of Grant").

 

		(b)	The date on which Options shall be deemed Allocated under the Plan shall
be the date on which the Company shall notify the Trustee that such Options have been Allocated in the name of the Trustee on behalf
of a Participant ("Date of Allocation").

 

7.       EXERCISE OF OPTIONS

 

7.1     EXERCISE PRICE

 

The Exercise Price per Underlying
Share deliverable upon the exercise of an Option shall be determined by the Administrator. The Exercise Price shall be set forth
in the Grant Letter.

 

7.2     VESTING SCHEDULE

 

Unless otherwise determined by the
Administrator, all Options Granted on a certain date shall, subject to continued employment with or service to the Company or
Affiliate by the Participant, become vested and exercisable in accordance with the vesting schedule specified in the Grant
Letter.

 

    7

     

    

 

7.3     MINIMUM EXERCISE

 

No exercise of Options by
any Participant shall be for the lower of a quantity of 1000 Options, unless the exercise is of all of the Participant's Options
that are vested as of the date of exercise.

 

An Option may not be exercised for fractional shares.

 

The exercise of a portion
of the Options Granted shall not cause the expiration, termination or cancellation of the remaining unexercised Options held by
the Trustee on behalf of the Participant.

 

7.4     MANNER OF EXERCISE 

 

An Option may be exercised by and upon the fulfillment
of the following:

 

(A)      
Notice of Exercise

 

The signing by the Participant,
and delivery to both the Company (at its principal office) and the Trustee (if the Options are held by a Trustee), of an exercise
notice form as prescribed by the Administrator, including but not limited to: (i) the identity of the Participant, (ii) the number
of Options to be exercised, and (iii) the Exercise Price to be paid (the "Notice of Exercise").

 

(B)      
Exercise Price

 

The payment by the Participant
to the Company, in such manner as shall be determined by the Administrator, of the Exercise Price with respect to all the Options
exercised, as set forth in the Notice of Exercise.

 

(C)     
Allocation of Shares

 

Upon the delivery of a duly
signed Notice of Exercise and the payment to the Company of the Exercise Price with respect to all the Options specified therein,
the Company shall issue the Underlying Shares to the Trustee (according to the applicable Holding Period) or to the Participant,
as the case may be.

 

(D)      
Expenses

 

All costs and expenses including
broker fees and bank commissions, derived from the exercise of Options or Underlying Shares, shall be borne solely on the Participant.

 

    8

     

    

 

8.       WAIVER OF OPTION
RIGHTS

 

At any time prior to the expiration of any
Granted (but unexercised) Option, a Participant may waive his rights to such Option by a written notice to the Company's
principal office. Such notice shall specify the number of Options Granted, which the Participant waives, and shall be signed
by the Participant.

 

Upon receipt by the Company
of a notice of waiver of such rights, such Options shall expire and shall become available for future Grants and Allocations under
the Plan.

 

9.      
TERM OF THE OPTIONS

 

Unless earlier terminated
pursuant to the provisions of this Plan, all granted but unexercised Options shall expire and cease to be exercisable at 5:00 p.m.
Israel time on the 10 anniversary of the Commencement Date of such Options or at a later date, determined by the Administrator.

 

10.    
TERMINATION OF EMPLOYMENT

 

10.1   TERMINATION OF EMPLOYMENT

 

If a Participant ceases
to be an employee, director, officer or Consultant of the Company or Affiliate for any reason ("Termination of Employment")
other than death, Retirement, Disability or Cause, then any vested but unexercised Options on the date of Termination of Employment
(as shall be determined by the Company or Affiliate, in its sole discretion), Allocated on the Participant's behalf ("Exercisable
Options") may be exercised, if not previously expired, not later than the earlier of (i) 90 days after the date of Termination
of Employment; or (ii) the Term of the Options.

 

All other Granted Options
for the benefit of Participant shall expire upon the date of Termination of Employment.

 

10.2   TERMINATION FOR CAUSE

 

In the event of Termination
of Employment of a Participant for Cause, the Participant's right to exercise any unexercised Options, Granted to such Participant,
whether vested or not on the date of Termination of Employment, shall cease as of such date of Termination of Employment, and the
Options shall thereupon expire.

 

If subsequent to the Participant's
Termination of Employment, but prior to the exercise of Options Granted to such Participant, the Administrator determines that
either prior or subsequent to the Participant's Termination of Employment, the Participant engaged in conduct which would constitute
Cause, then the Participant's right to exercise the Options Granted to such Participant shall immediately cease upon such determination
and the Options shall thereupon expire.

 

The determination by the
Administrator as to the occurrence of Cause shall be final and conclusive for all purposes of this Plan.

 

10.3   TERMINATION BY REASON OF DEATH, RETIREMENT,
OR DISABILITY

 

In the event of
Termination of Employment of a Participant by reason of death, Retirement, or Disability, any vested but unexercised Options
shall be exercisable in the case of death, by his or her estate, personal representative or beneficiary, or in the case of
Retirement or Disability, by the Participant or his or her personal representative (as the case may be), until the earlier of
(i) 365 days after the date of Termination of Employment; or (ii) the Term of the Options.

 

All other Granted Options
for the benefit of Participant shall expire upon the date of Termination of Employment.

 

    9

     

    

 

10.4   EXCEPTIONS

 

In special circumstances,
pertaining to the Termination of Employment of a certain Participant, the Administrator may in its discretion decide to extend
any of the periods stated above in Sections 10.1-10.3.

 

10.5   TRANSFER OF EMPLOYMENT OR SERVICE

 

Subject to the receipt of
appropriate approvals from the Israeli Tax Authorities, if applicable, a Participant's right to Options or the exercise thereof
that were Granted to him or her under this Plan, shall not be terminated or expire solely as a result of the fact that the Participant's
employment or service as an employee, officer, director or Consultant changes from the Company to an Affiliate or vice versa.

 

11 .    OPTIONS AND TAX PROVISIONS

 

All Options under this Plan
shall be Granted in accordance with one of the Tax Provisions as follows:

 

		·	The Company may Grant Options to Israeli Participants in accordance with the provisions of Section
102 and the Rules.

 

		·	The Company may Grant Options to Non-Qualified Israeli Participants in accordance with the provisions
of Section 3(i).

 

11.1   TAX PROVISION SELECTION

 

The Company shall elect under
which Tax Provision each Option is Granted in accordance with any applicable Law and its sole discretion — i.e. the Company
shall elect if to Grant Options to Participants under one of the three Section 102 Tax Tracks, or under the provisions of Section
3i. The Company shall notify each Participant in the Grant Letter, under which Tax Provision the Options are Granted and, if applicable,
under which Section 102 Tax Track, each Option is Granted.

 

11.2   SECTION 102 TRUSTEE TAX TRACKS

 

If the Company elects to
Grant Options to Israeli Participants through (i) the Capital Gains Track Through a Trustee, or (ii) the Income Tax Track Through
a Trustee, then, in accordance with the requirements of Section 102, the Company shall appoint a Trustee who will hold in trust
on behalf of each Israeli Participant the Allocated Options and the Underlying Shares issued upon exercise of such Options in trust
on behalf of each Israeli Participant.

 

    10

     

    

 

The Holding Period for the Options will be as follows:

 

		(A)	The Capital Gains Tax Track Through a Trustee — if the
                                                                       Company elects to Allocate the Options according to the provisions of this track, then the Holding Period will be: 24 months
                                                                       from the date of Allocation; or such period as may be determined in any amendment of Section 102.

 

		(B)	Income Tax Track Through a Trustee — if the Company elects to
Allocate Options according to the provisions of this track, then the Holding Period will be 12 months from the date of Allocation;
or such period as may be determined in any amendment of Section 102.

 

Subject to Section 102 and
the Rules, Israeli Participants shall not be able to receive from the Trustee, nor shall they be able to sell or dispose of Underlying
Shares before the end of the applicable Holding Period. If a Participant sells or removes the Underlying Shares from the Trustee
before the end of the applicable Holding Period ("Breach"), the Participant shall pay all applicable taxes imposed on
such Breach by Section 7 of the Rules.

 

In the event of a distribution
of rights, including an issuance of bonus shares, in connection with Options originally Allocated (the "Additional Rights"),
all such Additional Rights shall be Allocated and/or issued to the Trustee for the benefit of Israeli Participants, and shall be
held by the Trustee for the remainder of the Holding Period applicable to the Options originally Allocated. Such Additional Rights
shall be treated in accordance with the provisions of the applicable Tax Track.

 

11.3   INCOME TAX TRACK WITHOUT A TRUSTEE

 

If the Company elects to
Grant Options to Israeli Participants according to the provisions of this track, then the Options will not be subject to a Holding
Period. However, upon exercise of Options under this Tax Track, the Trustee shall hold such Underlying Shares for the benefit of
the Israeli Participant in accordance with the provisions of Section 15 of this Plan.

 

11.4   CONCURRENT CONDITIONS

 

The Holding Period of Section
102, if any, is in addition to the vesting period as specified in Section 7.2 of the Plan. The Holding Period and vesting period
may run concurrently, but neither is a substitute for the other, and each are independent terms and conditions for Options Granted.

 

11.5   TRUST AGREEMENT

 

The
terms and conditions applicable to the trust relating to the Tax Track selected by the Company, as appropriate, shall be set forth
in an agreement signed by the Company and the Trustee (the "Trust Agreement").

 

    11

     

    

 

12.    
TERM OF SHARES HELD IN TRUST

 

No Underlying Shares or
Additional Rights issued by the Company to the Trustee, shall be held by the Trustee on behalf of a Participant for a period longer
than ten (10) years after the end of the Term of the Options. The Administrator shall instruct the Trustee as to the transfer of
these Shares.

 

13.    
RIGHTS AS A SHAREHOLDER

 

Unless otherwise specified
in the Plan, a Participant shall have all rights as a shareholder with respect to Shares issued under this Plan, including voting
rights in general meetings of the Company.

 

The Participants shall
be entitled to receive any cash dividend paid to the shareholders of the Company with respect to Underlying Shares issued to them
under this Plan. Payments of such dividend to the Participants shall be subject to any required tax being withheld or otherwise
deducted by the Trustee or the Company, as agreed between the Company and the Trustee.

 

14.    
NO SPECIAL EMPLOYMENT RIGHTS

 

Nothing contained in this
Plan shall confer upon any Participant any right with respect to the continuation of employment by or service to the Company or
Affiliate or to interfere in any way with the right of the Company or Affiliate, to terminate such employment or service or to
increase or decrease the compensation of the Israeli Participant.

 

No Participant shall have
any claim or demand with respect to any of the Options, except according to the specific terms of the Grant Letter provided to
him or her by the Company.

 

15.   
RESTRICTIONS ON SALE OF OPTIONS AND SHARES

 

15.1    OPTIONS

 

Options may not be sold,
assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent.

 

15.2    SHARES

 

Shares issued under this
Plan shall be subject to all limitation imposed by the Company's Articles of Association.

 

15.3   ACCELERATION PROVISION

 

The
Administrator, in its sole discretion, may decide to add a provision in certain Grant Letters, according to which in case of a
Merger, all or some of the unvested Options, shall automatically accelerate.

 

    12

     

    

 

15.4   Lock Up

 

Notwithstanding the Holding
Period, in the event of any registration of the Company's shares on any stock exchange, at the request of the underwriters or if
required under applicable law and/or by any governmental authority, the Administrator may determine that the Underlying Shares
issued pursuant to the exercise of Options may be subject to a lock-up period of up to180 days, or such other period of time as
may be recommended by the Company's Board of Directors, during which time Participants shall not be allowed to sell Shares.

 

16.    
VOTING

 

Options that have not yet
been exercised shall not have any voting rights. Following the exercise of Options, the Underlying Shares shall have voting rights
as specified in this Section below. Each of the Underlying Shares shall entitle the holder thereof to one vote at shareholders
meetings of the Company. The Trustee shall forward any notice regarding shareholders meetings to the last address of the Participants
provided to the Trustee by the Company. A Participant, who wishes to exercise his/her right to vote at such meeting, shall send
a letter to the Trustee at least ten (10) business days before the meeting. The Trustee shall issue a power of attorney to such
Participant, enabling the Participant to vote the number of Underlying Shares held for him/her in trust, in accordance with the
Company's Articles of Association.

 

17.    
TAX MATTERS

 

This Plan shall be governed
by, and shall conform with and be interpreted so as to comply with, the requirements of the Tax Ordinance and any written approval
from any relevant Tax Authorities. All tax consequences under any applicable law which may arise from the Grant or Allocation of
Options, from the exercise thereof or from the holding or sale of Underlying Shares (or other securities issued under the Plan)
by or on behalf of the Participant, shall be borne solely by the Participant. The Participant shall indemnify the Company and/or
Affiliate, as the case may be, and hold them harmless, against and from any liability for any such tax or any penalty, interest
or indexing.

 

If the Company elects to
Allocate Options according to the provisions of the Income Tax Track Without a Trustee (Section 11.3 of this Plan), and if prior
to the exercise of any and/or all of these Options, such Israeli Participant ceases to be an employee, director, or officer of
the Company or Affiliate, the Israeli Participant shall deposit with the Company a guarantee or other security as required by law,
in order to ensure the payment of applicable taxes upon the Exercise of such Options.

 

    13

     

    

 

18.    
WITHHOLDING TAXES

 

Whenever an amount
with respect to withholding tax relating to Options Granted to a Participant and/or Underlying Shares issued upon the
exercise thereof is due from the Participant and/or the Company and/or an Affiliate, the Company and/or an Affiliate shall
have the right to demand from a Participant such amount sufficient to satisfy any applicable withholding tax requirements
related thereto, and whenever Shares or any other non-cash assets are to be delivered pursuant to the exercise of an Option,
or transferred thereafter, the Company and/or an Affiliate shall have the right to require the Participant to remit to the
Company and/or to the Affiliate, or to the Trustee an amount in cash sufficient to satisfy any applicable withholding tax
requirements related thereto. If such amount is not timely remitted, the Company and/or the Affiliate shall have the right to
withhold or set-off (subject to Law) such Shares or any other non-cash assets pending payment by the Participant of such
amounts.

 

With regard to Options Granted
to Israeli Participants - until all taxes have been paid in accordance with Rule 7 of the Section 102 Rules, Options and/or Underlying
Shares may not be sold, transferred, assigned, pledged, encumbered, or otherwise willfully hypothecated or disposed of, and no
power of attorney or deed of transfer, whether for immediate or future use may be validly given. Notwithstanding the foregoing,
the Options and/or Underlying Shares may be validly transferred in accordance with Section 20 below, provided that the transferee
thereof shall be subject to the provisions of Section 102 and the Section 102 Rules as would have been applicable to the deceased
Israeli Participant were he or she to have survived.

 

19.     NO TRANSFER OF OPTIONS

 

The Trustee shall not transfer Options to any
third party, including a Participant, except in accordance with instructions received from the Administrator.

 

20.     TRANSFER OF RIGHTS UPON
DEATH

 

No transfer of any right
to an Option or Underlying Share issued upon the exercise thereof by will or by the laws of descent shall be effective to bind
the Company unless the Company shall have been furnished with the following signed and notarized documents:

 

		(A)	A written request for such transfer and a copy of the legal documents
                                                               creating and confirming the right of the person acting with respect to the Participant's estate and of the transferee;

 

		(B)	A written consent by the transferee to pay any amounts in connection with
the Options and Underlying Shares any payment due according to the provisions of the Plan and otherwise abide by all the terms
of the Plan; and

 

		(C)	any such other evidence as the Administrator may deem necessary to establish
the right to the transfer of the Option or Underlying Share issued upon the exercise thereof and the validity of the transfer.

 

21.     NO RIGHT OF OTHERS TO OPTIONS

 

Subject to the provisions of the Plan, no person
other than the Participant shall have any right with respect to Options Granted to the Participant's under the Plan.

 

    14

     

    

 

 

22.    
EXPENSES AND RECEIPTS

 

The expenses incurred in
connection with the administration and implementation of the Plan (including any applicable stamp duty) shall be borne by the Company.
Any proceeds received by the Company in connection with the exercise of any Option may be used for general corporate purposes.

 

23.    
REQUIRED APPROVALS

 

The Plan is subject to
the receipt of all approvals required under the Tax Ordinance, and the Law.

 

24.     APPLICABLE
LAW

 

This Plan and all documents
delivered or executed by the Company or Affiliate in connection herewith shall be governed by, and construed and administered in
accordance with the Law of Israel.

 

25.     TREATMENT
OF PARTICIPANTS 

 

There is no obligation for uniformity of treatment
of Participants.

 

26.    
NO CONFLICTS 

 

In the event of any conflict
between the terms of the Plan and the Grant Letter, the Plan shall prevail, unless the Grant Letter stated specifically that the
conflicting provision in the Grant Letter shall prevail.

 

27.    
PARTICIPANT UNDERTAKINGS

 

By entering into this Plan,
the Participant shall (1) agree and acknowledge that he or she have received and read the Plan and the Grant Letter; (2) undertake
all the provisions set forth in: Section 3i or Section 102 as applicable (including provisions regarding the applicable Tax Track
that the Company has selected), the Plan, the Grant Letter and the Trust Agreement (if applicable); and (3) if the Options are
Granted under Section 102, the Israeli Participant shall undertake that subject to the provisions of Section 102 and the Rules,
he or she shall not to sell or release the Underlying Shares from trust before the end of the Holding Period (if any).

 

* * *

 

    15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]