Document:

EXHIBIT
      4.2

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR STATE
      SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
      HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE ACT AND UNDER
      APPLICABLE STATE SECURITIES LAW OR SPO MEDICAL INC. (THE “COMPANY”) SHALL HAVE
      RECEIVED AN OPINION IN FORM, SCOPE AND SUBSTANCE REASONABLY ACCEPTABLE TO
      COUNSEL FOR THE COMPANY, THAT REGISTRATION OF SUCH SECURITIES UNDER THE ACT
      AND
      UNDER PROVISIONS OF SUCH APPLICABLE FEDERAL AND STATE SECURITIES LAWS IS NOT
      REQUIRED.

     

    

    COMMON
      STOCK PURCHASE WARRANT

    

    

    Expires
      _______________, 2011

    

    
      	
              No.:

            	
              Number
                of shares: ____________

            

    

    Date
      of
      Issuance: 

    

    

    1.  Issuance.
      In
      consideration of good and valuable consideration, the receipt of which is hereby
      acknowledged by SPO Medical Inc., a Delaware corporation (the “Company”) that
      ___________________ or its / his registered assigned (the “Holder”) is hereby
      granted the right to purchase at any time until 5:00 P.M., New York City time,
      on ______________, 2011 (the “Expiration Date”), ______________ fully paid and
      nonassessable shares (the “Warrant Shares”) of the Company’s common stock, par
      value $0.01 per share (the “Common Stock”), at an exercise price (the “Exercise
      Price”) per share equal to $0.80.
      The
      Exercise Price and the number of shares for which the Warrant is exercisable
      shall be subject to adjustment as provided herein. 

    

    2. Exercise
      of Warrants.
      Exercise of the purchase rights represented by this Warrant may be made at
      any
      time or times, on or before 5:00 P.M. New York City time on the Expiration
      Date,
      or such earlier date on which this Warrant may terminate as provided in this
      Warrant, by the surrender of this Warrant and the Notice of Exercise Form
      annexed hereto duly executed, at the office of the company (or such other office
      or agency of the Company as it may designate by notice in writing to the
      registered holder hereof at the address of such holder appearing on the books
      of
      the Company) and upon payment of an amount of consideration therefore payable
      by
      certified check or cashier’s check or by wire transfer to an account designated
      by the Company in an amount equal to the Exercise Price multiplied by the number
      of Warrant Shares purchased. This Warrant may be exercised in whole or in part
      and such exercise shall be accompanied by written notice from the Holder of
      this
      Warrant showing the number of Warrant Shares with respect to which rights are
      being surrendered thereunder (the “Surrendered Shares”) and the net number of
      shares of Common Stock to be issued after giving effect to such surrender.
      The
      Company shall cancel this Warrant with respect to any Surrendered Shares. In
      the
      event of an exercise of this Warrant in accordance with this Section 2, the
      Holder shall be entitled to receive a certificate for the number of shares
      of
      Common Stock so purchased.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3. Reservation
      of Shares.
      The
      Company hereby covenants that at all times during the term of this Warrant
      there
      shall be reserved a sufficient number of shares of its Common Stock as shall
      be
      required for issuance upon exercise of this Warrant (the “Warrant
      Shares”).

    

    4. No
      Fractional Shares of Scrip.
      No
      fractional shares or script representing fractional shares shall be issued
      upon
      the exercise of this Warrant.

    

    5. Loss,
      Theft, Destruction or Mutilation of Warrant.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Warrant, and (in the case of loss, theft
      or
      destruction) receipt of reasonably satisfactory indemnification, and (in the
      case of mutilation) upon surrender and cancellation of this Warrant, the Company
      will execute and deliver a new Warrant of like tenor and date and any such
      lost,
      stolen, destroyed or mutilated Warrant shall thereupon become void.

    

    6. Rights
      of the Holder.
      The
      Holder shall not, by virtue hereof, be entitled to any rights of a stockholder
      in the Company, either at law or equity, and the rights of the Holder are
      limited to those expressed in this Warrant and are not enforceable against
      the
      Company except to the extent set forth herein.

    

    7. Capital
      Adjustments.
      7.1 In
      case
      of any stock split or reverse stock split, stock dividend, reclassification
      of
      the Common Stock, recapitalization, merger or consolidation (where the Company
      is not the surviving entity), the provisions of this Section 7 shall be applied
      as if such capital adjustment event had occurred immediately prior to the date
      of this Warrant and the original Exercise Price had been fairly allocated to
      the
      stock resulting from such capital adjustment; and in other respects the
      provisions of this Section shall be applied in a fair, equitable and reasonable
      manner so as to give effect, as nearly as may be, to the purposes hereof.

    

    7.2
      Adjustment
      Mechanism.
      If an
      adjustment of the Exercise Price is required pursuant to this Section 7, the
      Holder shall be entitled to purchase such number of shares of Common Stock
      as
      will cause (i) (x) the total number of shares of Common Stock Holder is entitled
      to purchase pursuant to this Warrant following such adjustment, multiplied
      by
      (y) the adjusted Exercise Price per share, to equal the result of (ii) (x)
      the
      dollar amount of the total number of shares of Common Stock Holder is entitled
      to purchase before adjustment, multiplied by (y) the total Exercise Price before
      adjustment.

     

    An
      adjustment made pursuant to this Section 7 shall become effective immediately
      after the effective date of such event retroactive to the record date, if any,
      for such event.

    

    8.
      Notice
      of Adjustment.
      Whenever the number of Warrant Shares or number or kind of securities or other
      property purchasable upon the exercise of this Warrant or the Exercise Price
      is
      adjusted as herein provided, the Company shall promptly mail by registered
      or
      certified mail, return receipt requested, to the Holder notice of such
      adjustment or adjustments setting forth the number of Warrant Shares (and other
      securities or property) purchasable upon the exercise of this Warrant and the
      Exercise price of such Warrant Shares (and other securities or property) after
      such adjustment, setting forth a brief statement of the facts requiring such
      adjustment and setting forth the computation by which such adjustment was made.
      Such notice, in absence of manifest error, shall be conclusive evidence of
      the
      correctness of such adjustment.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    9.
      Transfer
      to Comply with the Securities Law.
      This
      Warrant has not been registered under the Securities Act of 1933, as amended
      (the “Act”) and has been issued to the Holder for investment and not with a view
      to the distribution of either the Warrant or the Warrant Shares. Neither this
      Warrant nor any of the Warrant Shares or any other security issued or issuable
      upon exercise of this Warrant may be sold, transferred, pledged or hypothecated
      in the absence of an effective registration statement under the Act relating
      to
      such security or an opinion of counsel satisfactory to the Company that
      registration is not required under the Act. Each certificate for the Warrant,
      the Warrant Shares and any other security issued or issuable upon exercise
      of
      this Warrant shall contain a legend on the face thereof, in form and substance
      satisfactory to counsel for the Company, setting forth the restrictions on
      transfer contained in this Paragraph as well as any other restriction on sale
      or
      transfer such as would be contained in a lock-up agreement. The warrant is
      also
      subject to a lock-up. 

    

    10.
      Notices.
      Any
      notice or other communication required or permitted hereunder shall be in
      writing and shall be delivered personally, telegraphed, telexed, sent by
      facsimile transmission or sent by certified, registered or express mail, postage
      pre-paid. Any such notice shall be deemed given when so delivered personally,
      telegraphed, telexed or sent by facsimile transmission, or, if mailed, two
      days
      after the date of deposit in the Untied States mails. The addresses for such
      communications shall be with respect to the Holder of this Warrant or of Warrant
      Shares issued pursuant hereto, addressed to such Holder at its last known
      address or facsimile number appearing on the books of the Company maintained
      for
      such purposes, or with respect to the Company, addressed to:

    

    

    SPO
      Medical Inc.

    Beit
      Hapa’amon, Suite 209, 

    20
      Hata’as Street, Kfar Saba 

    Israel
      44425

    Telephone
      No.: (011-972-9) 764-3570

    Telecopier
      No.: (011-972-9) 764-3571

    

    Attention:
      Michael
      Braunold

    

    with
      a
      copy to: 

     

    Aboudi
      & Brounstein

    Attn:
      David Aboudi, Esq.

    Rechov
      Gavish 3, POB 2432

    Kfar
      Saba
      Industrial Zone 44641 Israel

    Telephone
      No.: (011-972-9) 764-4833

    Telecopier
      No.: (011-972-9) 764-4834

    

    

    Or
      to
      such other address or addresses or facsimile number or numbers as any such
      party
      may most recently have designated in writing to the other party hereto by notice
      given in accordance with this Section. 

     

    

    11.
      Supplements
      and Amendments; Whole Agreement.
      This
      Warrant may be amended or supplemented only by an instrument in writing signed
      by the parties hereto. This Warrant of even date herewith contain the full
      understanding of the parties hereto with respect to its subject matter and
      there
      are no representations, warranties, agreements or understandings other than
      expressly contained herein.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    12.
      Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York without regard to its conflicts of laws principles. The Holder
      hereby irrevocably submits to the jurisdiction of any United States district
      court located in the City of New York over any action or proceeding arising
      out
      of or relating to this Agreement. The Holder further agrees that any action
      or
      proceeding brought against the Company shall be brought only in the United
      States district courts located in the City of New York. 

    

    13.
      Counterparts.
      This
      Warrant may be executed in any number of counterparts and each of such
      counterparts shall for all purposes be deemed to be an original, and all such
      counterparts shall together constitute but one and the same
      instrument.

    

    14.
      Descriptive
      Headings.
      Descriptive headings of the several Sections of this Warrant are inserted for
      convenience only and shall not control or affect the meaning or construction
      of
      any of the provisions hereof.

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Warrant as of
      __________________, 2008.

    

    

    SPO
      MEDICAL INC.

    

    

    

    By:_________________________________

    Name:
      Michael Braunold 

    Title:
      CEO

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    NOTICE
      OF
      EXERCISE OF WARRANT

    

    The
      undersigned hereby irrevocably elects to exercise the right, represented by
      the
      Warrant certificate dated as of _________, 2008, to purchase ___________ shares
      of the Common Stock of SPO Medical Inc. and tenders herewith
      payment.

     

    

    By
      certificate check, cashier’s check or wire transfer of
      $_____________.

    

    Number
      of
      Warrant Shares Surrendered for Cancellation:________

     

    Number
      of
      Warrant Shares to be Issued: ___________________________

    

    In
      exercising this Warrant, the undersigned hereby confirms and acknowledges that
      the shares of Common Stock are being acquired solely for the account of the
      undersigned and not as a nominee for any other party, and for investment, and
      that the undersigned will not offer, sell or otherwise dispose of any such
      shares of Common Stock, except under circumstances that will not result in
      a
      violation of the Untied States Securities Act of 1933, as amended, or any
      foreign or state securities laws.

    

    Please
      issue a certificate or certificates representing said shares of Common Stock
      in
      the name of the undersigned or in such other name as is specified
      below:

    

    

    ________________________________   (Name)

    

    ________________________________

    (Address)
      

    

    ________________________________

    

    

    

    By:___________________________

    Name:

    

    

    Dated:___________________

    

    

    
      
         

      

      
        5EXHIBIT
      10.1

    FORM
      OF 

    WARRANT
      EXERCISE & NOTE CONVERSION AGREEMENT

    

    This
      Agreement (the “Agreement”), made as of the 26th day of March 2008 between SPO
      Medical Inc. (the “Company, or SPO”) and the undersigned subscriber (the
“Subscriber”).

    

    Whereas
      SPO and Subscriber entered into a Subscription Agreement
      dated September 2005, as subsequently amended, whereby SPO sold Subscriber
      certain SPO securities including (i) a promissory note (the “Note”); and (ii) a
      common stock purchase warrant (the “Warrant”); and 

    

    Whereas,
      the Subscriber wishes to exercise the right, represented by the Warrant, to
      purchase shares of Common Stock of the Company and apply all principal owing
      under the Note to such purchase; and furthermore wishes to exercise the right
      under the Note to convert all interest owing thereunder to purchase shares
      of
      Common Stock of the Company.

    

    NOW
      THEREFORE, in consideration of the above and the terms and conditions hereof,
      the parties, for themselves, their, heirs, successors and assigns agree as
      follows:

    

    1. Unless
      otherwise defined herein, the capitalized terms used herein shall have the
      meanings described in the Subscription Agreement.

    

    2. Effective
      the date hereof, the principal owing under the Note shall be applied to purchase
      shares of Common Stock of the Company under the Warrant and all interest accrued
      under the Note shall be converted to shares of Common Stock of the Company,
      all
      at the Warrant exercise price and Note conversion price of $0.60 per share.
      Upon
      execution hereof (i) the Note shall be deemed fully paid and satisfied and
      deemed null and void, and (ii) the Warrant shall be deemed fully exercised
      and
      null and void. SPO shall issue and deliver to Subscriber (at the address below)
      certificates for such shares with a restrictive legend required under
      law.

    

    3.
      In
      consideration of the Subscriber's agreement to the above exercise of Warrant
      and
      conversion of Note interest the Company shall issue forthwith to the Subscriber
      a three year warrant to purchase the number of shares of Common Stock equal
      to
      25% of the number of shares received from exercise of the Warrant and Note
      conversion with an exercise price of $0.60 per share. 

    

    4. Subscriber
      represents and warrants to, and covenants and agrees with, the Company as
      follows:

    

     (a)
      Without limiting Subscriber’s
      right
      to
      sell the Shares pursuant in compliance with the Securities Act of 1933, as
      amended (the “Securities Act”), Subscriber is acquiring the said shares and
      warrant (jointly the "Securities") for its own account for investment only
      and
      not with a view towards the public distribution thereof.

    

    (b)
      The
Subscriber
      is an
“accredited investor” as that term is defined in Rule 501 of the General Rules
      and Regulations under the Securities Act.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (c)
      All
      subsequent offers and sales of the Securities
      by the
Subscriber
      shall be
      made pursuant to registration of the relevant Securities
      under
      the Securities Act or pursuant to an exemption from such
      registration.

    

    (d)
      The
Subscriber
      understands that the Securities
      are
      being offered and sold to it in reliance on specific exemptions from the
      registration requirements of the Securities Act and state securities laws and
      that the Company is relying upon the truth and accuracy of, and the Subscriber
      's
      compliance with, the representations, warranties, agreements, acknowledgments
      and understandings of the Subscriber
      set
      forth herein in order to determine the availability of such exemptions and
      the
      eligibility of the Subscriber
      to
      acquire the Securities.

    

    (e)
      The
Subscriber
      and its
      advisors, if any, have been furnished with or have been given access to all
      materials relating to the business, finances and operations of the Company
      and
      materials relating to the offer and sale of the Securities
      which
      have been requested by the Subscriber.
      The
Subscriber
      and its
      advisors, if any, have been afforded the opportunity to ask questions of the
      Company and its management and have received complete and satisfactory answers
      to any such inquiries. Without limiting the generality of the foregoing, the
      Subscriber
      has also
      had the opportunity to obtain and to review the reports filed by the Company
      with the U.S. Securities and Exchange Commission pursuant to the Securities
      Exchange Act of 1934, as amended.

    

    (f)
      In
      connection with its acquisition of the Securities,
      the
Subscriber
      has not
      relied on any statement or representation by the Company or any of its officers,
      directors and employees or any of its attorneys or agent, except as specifically
      set forth herein.

    

    (g)
      The
Subscriber
      understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Shares.

    

    (h)
      The
Subscriber
      is not
      affiliated with any party that beneficially owns more than 5% of the Common
      Stock of the Company outstanding on the date hereof. 

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date and
      year first above written.

    

      
        	
                SPO
                  Medical Inc.

              	 	
                Subscriber

              
	
                _______________

              	 	
                _____________________

              
	
                Michael
                  Braunold

              	 	 
	
                President
                  & CEO

              	 	
                Print
                  Name:____________________

              
	 	 	 
	 	 	
                Address:
                  ___________________________

              
	 	 	 
	 	 	
                __________________________________

              
	 	 	 
	 	 	
                __________________________________

              
	 	 	 
	 	 	
                Fax:
                  ______________________________

              

      

    

     

    
      
        
        

      

      
        2

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