Document:

Exhibit 4.1

 

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.  

 

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	“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.

 

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	“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.

 

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.

 

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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.

 

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		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.

 

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		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.

 

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		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.	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.

 

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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.

 

		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.

 

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		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.

 

		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.

 

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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”).

 

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		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.

 

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		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.

 

		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.

 

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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.

 

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		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).

 

* * *

 

    	 	15Exhibit 4.2

 

Itamar
Medical Ltd.

 

2007 Equity
Incentive Plan

 

Adopted
By The Board Of Directors: February 19,2007

Approved
By The Shareholders:  June, 2007

Termination
Date: February 18, 2017

		1.	General.

 

(a)        Eligible
Share Award Recipients. The persons eligible to receive Share Awards are Employees, Directors, and Consultants.

 

(b)
       Available Share Awards. The Plan provides for the grant of the following Share Awards:
(i) Incentive Share Options, and (ii) Nonstatutory Share Options.

 

(c)
        Purpose. The Company, by means of the Plan, seeks to secure and retain the services
of the group of persons eligible to receive Share Awards as set forth in Section 1(a), to provide incentives for such persons to
exert maximum efforts for the success of the Company and any Affiliate, and to provide a means by which such eligible recipients
may be given an opportunity to benefit from increases in value of the Common Shares through the granting of Share Awards.

 

		2.	Definitions.

 

As used in the Plan, the following
definitions shall apply to the capitalized terms indicated below:

 

(a)
        “Affiliate” means (i) any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company, provided each corporation in the unbroken chain (other
than the Company) owns, at the time of the determination, shares possessing fifty percent (50%) or more of the total combined
voting power of all classes of shares in one of the other corporations in such chain, and (ii) any corporation (other than
the Company) in an unbroken chain of corporations beginning with the Company, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination, shares possessing fifty percent (50%) or more of
the total combined voting power of all classes of shares in one of the other corporations in such chain. The Board shall have
the authority to determine (i) the time or times at which the ownership tests are applied, and (ii) whether
 “Affiliate” includes entities other than corporations within the foregoing definition.

 

(b)        “Board”
means the Board of Directors of the Company.

 

(c)
        “Capitalization Adjustment” means any change that is made in,
or other events that occur with respect to, the Common Shares as described in Section 9(a).

 

     

     

    

 

(d)        “Cause”
means the occurrence of any of the following: (i) conviction of the Participant of any felony or any crime involving fraud
or dishonesty; (ii) the Participant’s participation (whether by affirmative act or omission) in a fraud, act of dishonesty
or other act of misconduct against the Company and/or its Affiliates; (iii) conduct by the Participant which, based upon a good
faith and reasonable factual investigation by the Company (or, if the Participant is an Officer, by the Board), demonstrates the
Participant’s unfitness to serve; (iv) the Participant’s violation of any statutory or fiduciary duty, or duty of loyalty
owed to the Company and/or its Affiliates; (v) the Participant’s violation of state or federal law in connection with the
Participant’s performance of his/her job which has an adverse effect on the Company and/or its Affiliates; (vi) the Participant’s
breach of any material term of any contract between the Participant and the Company and/or its Affiliates; (vii) the Participant’s
repeated violation of Company policy which has a material adverse effect on the Company and/or its Affiliates and (viii) such Participant’s
unsatisfactory job performance which is not cured within fifteen (15) days by the Participant following the Participant’s
receipt of written notice of such unsatisfactory job performance. Notwithstanding the foregoing, the Participant’s Disability
shall not constitute Cause as set forth herein. The determination that a termination is for Cause shall be made by the Company
in its sole and exclusive judgment and discretion.

 

(e)        
“Code” means the Internal Revenue Code of 1986, as amended.

 

(f)        “Committee”
means a committee of one or more members of the Board to whom authority has been delegated by the Board in accordance with Section
3(c).

 

(g)        “Common
Shares” means the common shares of the Company.

 

(h)        “Company”
means Itamar Medical Ltd., an Israeli company.

 

(i)        “Consultant”
means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services
and is compensated for such services, or (ii) serving as a member of the Board of Directors of an Affiliate and is compensated
for such services. However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be
considered a “Consultant” for purposes of the Plan.

 

(j)        “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director
or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company
or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service,
provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall
not terminate a Participant’s Continuous Service; provided, however, if the corporation for which a Participant is
rendering service ceases to qualify as an Affiliate, as determined by the Board in its sole discretion, such Participant’s
Continuous Service shall be considered to have terminated on the date such corporation ceases to qualify as an Affiliate. For example,
a change in status from an employee of the Company to a consultant of an Affiliate or to a Director shall not constitute an interruption
of Continuous Service. To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s
sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved
by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave of absence
shall be treated as Continuous Service for purposes of vesting in a Share Award only to such extent as may be provided in the Company’s
leave of absence policy or in the written terms of the Participant’s leave of absence agreement or policy applicable to the
Participant, or as otherwise required by law.

 

    	 	2	 

     

    

 

(k)        “Corporate
Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more
of the following events:

 

(i)        the consummation of a sale
of all or substantially all of the assets of the Company;

 

(ii)       the consummation
of a sale (including an exchange) of all or substantially all of the capital share of the Company;

 

(iii)      the consummation of a merger,
consolidation or like transaction following which the Company is not the surviving corporation; or

 

(iv)       the consummation
of a merger, consolidation or like transaction following which the Company is the surviving corporation but the Common Shares
outstanding immediately preceding the merger, consolidation or like transaction are converted or exchanged by virtue of the merger,
consolidation or like transaction into other property, whether in the form of securities, cash, or otherwise.

 

(l)        “Director”
means a member of the Board.

 

(m)        “Disability”
means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.

 

(n)        “Employee”
means any person employed by the Company or an Affiliate. However, service solely as a Director, or payment of a fee for such services,
shall not cause a Director to be considered an “Employee” for purposes of the Plan.

 

(o)        “Fair
Market Value” means, as of any date, the value of the Common Shares determined in by the Board in compliance with Section
409A of the Code or, in the case of an Incentive Share Option, in compliance with Section 422 of the Code.

 

    	 	3	 

     

    

 

(p)        “Incentive
Share Option” means an Option intended to qualify as an “incentive stock option” within the meaning of Section
422 of the Code and the regulations promulgated thereunder.

 

(q)        
“Nonstatutory Share Option” means an Option not intended to qualify as an Incentive Share Option.

 

(r)        “Officer”
means any person designated by the Company as an officer.

 

(s)        “Option”
means an Incentive Share Option or a Nonstatutory Share Option to purchase Common Shares granted pursuant to the Plan.

 

(t)        “Option
Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an
Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

 

(u)        “Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

(v)        “Participant”
means a person to whom a Share Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Share Award.

 

(w)        “Plan”
means this Itamar Medical Ltd. 2007 Equity Incentive Plan.

 

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

 

(y)        “Share
Award” means any right granted under the Plan, including but not limited to, an Option.

 

(z)        “Share
Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions
of a Share Award grant. Each Share Award Agreement shall be subject to the terms and conditions of the Plan.

 

(aa)       “Ten
Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) share possessing
more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or any Affiliate.

 

		3.	Administration.

 

(a)          Administration
by Board. The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee, as
provided in Section 3(c).

 

    	 	4	 

     

    

 

(b)           Powers
of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i)         To
determine from time to time (1) which of the persons eligible under the Plan shall be granted Share Awards; (2) when and how each
Share Award shall be granted; (3) what type or combination of types of Share Award shall be granted; (4) the provisions of each
Share Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash
or Common Shares pursuant to a Share Award; and (5) the number of Common Shares with respect to which a Share Award shall be granted
to each such person.

 

(ii)        To
construe and interpret the Plan and Share Awards granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or
in any Share Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 

(iii)       To settle
all controversies regarding the Plan and Share Awards granted thereunder.

 

(iv)        To accelerate
the time at which a Share Award may first be exercised or the time during which a Share Award or any part thereof will vest in
accordance with the Plan, notwithstanding the provisions in the Share Award stating the time at which it may first be exercised
or the time during which it will vest.

 

(v)         To
effect, at any time and from time to time, with the consent of any adversely affected Participant, (1) the reduction of the exercise
price of any outstanding Option under the Plan; (2) the cancellation of any outstanding Option under the Plan and the grant in
substitution therefor of (a) a new Option under the Plan or another equity plan of the Company covering the same or a different
number of Common Shares, (b) cash, and/or (c) other valuable consideration (as determined by the Board, in its sole discretion);
or (3) any other action that is treated as a repricing under generally accepted accounting principles.

 

(vi)        To amend
the Plan or a Share Award as provided in Section 10.

 

(vii)      To terminate
or suspend the Plan as provided in Section 11.

 

(viii)     Generally,
to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the
Company and that are not in conflict with the provisions of the Plan.

 

(ix)       To adopt
such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by individuals who are foreign
nationals or employed outside the United States.

 

    	 	5	 

     

    

 

(c)        Delegation
to Committee. The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration
is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to
the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may
be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee
and may, at any time, revest in the Board some or all of the powers previously delegated.

 

(d)        Effect
of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject
to review by any person and shall be final, binding and conclusive on all persons.

 

		4.	Shares Subject to the Plan.

 

(a)        Share
Reserve. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the maximum number of Common Shares
that may be issued pursuant to Share Awards under the Plan shall not exceed 3,000,000 Common Shares.

 

(b)        Reversion
of Shares to the Share Reserve. If any Share Award shall for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, or if any Common Shares issued to a Participant pursuant to a Share Award are forfeited back to
or repurchased by the Company because of or in connection with the failure to meet a contingency or condition required to vest
such shares in the Participant, the Common Shares not acquired, such Share Award or the Common Shares forfeited or repurchased
under such Share Award shall revert to and again become available for issuance under the Plan; provided, however, that subject
to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of Common Shares that may
be issued as Incentive Share Options shall be 3,000,000 Common Shares.

 

(c)        Source
of Shares. The shares issuable under the Plan shall be shares of authorized but unissued or reacquired Common Shares, including
shares repurchased by the Company on the open market.

 

(d)        Share
Reserve Limitation. To the extent required by Section 260.140.45 of Title 10 of the California Code of Regulations, the total number
of Common Shares issuable upon exercise of all outstanding Options and the total number of Common Shares provided for under any
share bonus or similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the conditions
and exclusions of Section 260.140.45 of Title 10 of the California Code of Regulations, based on the Common Shares of the Company
that are outstanding at the time the calculation is made.

 

    	 	6	 

     

    

 

		5.	Eligibility.

 

(a)        Eligibility
for Specific Share Awards. Incentive Share Options may be granted only to Employees. Share Awards other than Incentive Share Options
may be granted to Employees, Directors and Consultants.

 

(b)         Ten
Percent Shareholders.

 

(i)        A
Ten Percent Shareholder shall not be granted an Incentive Share Option unless the exercise price of such Option is at least one
hundred ten percent (110%) of the Fair Market Value of the Common Shares on the date of grant and the Option is not exercisable
after the expiration of five (5) years from the date of grant.

 

(ii)        A
Ten Percent Shareholder shall not be granted a Nonstatutory Share Option unless the exercise price of such Option is at least (i)
one hundred ten percent (110%) of the Fair Market Value of the Common Shares on the date of grant, or (ii) such lower percentage
of the Fair Market Value of the Common Shares on the date of grant as is permitted by Section 260.140.41 of Title 10 of the California
Code of Regulations at the time of the grant of the Option.

 

(c)          Consultants.
A Consultant shall not be eligible for the grant of a Share Award if, at the time of grant, either the offer or the sale of the
Company’s securities to such Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because
of the nature of the services that the Consultant is providing to the Company, because the Consultant is not a natural person,
or because of some other provision of Rule 701.

 

		6.	Option Provisions.

 

Each Option shall
be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Share Options or Nonstatutory Share Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for Common Shares purchased on exercise of each type of Option. The provisions of separate
Options need not be identical; provided, however, that each Option Agreement shall include (through incorporation of provisions
hereof by reference in the Option or otherwise) the substance of each of the following provisions:

 

(a)        Term.
Subject to the provisions of Section 5(b) regarding Ten Percent Shareholders, no Option shall be exercisable after the expiration
of ten (10) years from the date of grant.

 

(b)        Exercise
Price of an Incentive Share Option. Subject to the provisions of Section 5(b) regarding Ten Percent Shareholders, the exercise
price of each Incentive Share Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Shares
subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Share Option may be granted
with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption
or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code.

 

    	 	7	 

     

    

 

(c)        Exercise
Price of a Nonstatutory Share Option. Subject to the provisions of Section 5(b) regarding Ten Percent Shareholders, the exercise
price of each Nonstatutory Share Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common
Shares subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonstatutory Share Option may
be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an
assumption or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code.

 

(d)        Consideration.
The purchase price of Common Shares acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable
law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board
shall have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the
ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of
payment. The methods of payment permitted by this Section 6(d) are:

 

(i)        by
cash or check;

 

(ii)       pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Shares,
results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds;

 

(iii)      by delivery to the Company
(either by actual delivery or attestation) of Common Shares;

 

(iv)       by a
 “net exercise” arrangement pursuant to which the Company will reduce the number of Common Shares issued upon exercise
by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided,
however, the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the
aggregate exercise price not satisfied by such holding back of whole shares; provided, however, Common Shares will no longer
be outstanding under an Option and will not be exercisable thereafter to the extent that (i) shares are used to pay the exercise
price pursuant to the “net exercise,” (ii) shares are delivered to the Participant as a result of such exercise, and
(iii) shares are withheld to satisfy tax withholding obligations;

 

(v)        according
to a deferred payment or similar arrangement with the Optionholder; provided, however, that interest shall compound at least
annually and shall be charged at the minimum rate of interest necessary to avoid (i) the imputation of interest income to the Company
and compensation income to the Optionholder under any applicable provisions of the Code, and (ii) the classification of the Option
as a liability for financial accounting purposes; or

 

    	 	8	 

     

    

 

(vi)       in any other form of legal
consideration that may be acceptable to the Board.

 

(e)        Transferability
of Options. The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall
determine. In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability
of Options shall apply:

 

(i)        Restrictions
on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder; provided, however, that the Board may, in its sole discretion,
permit transfer of the Option to such extent as permitted by Section 260.140.41(d) of Title 10 of the California Code of Regulations
at the time of the grant of the Option and in a manner consistent with applicable tax and securities laws upon the Optionholder’s
request.

 

(ii)       Beneficiary
Designation. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form provided
by or otherwise satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option. In the absence of such a designation, the executor or administrator of the Optionholder’s
estate shall be entitled to exercise the Option.

 

(f)        Vesting
of Options Generally. The total number of Common Shares subject to an Option may vest and therefore become exercisable in periodic
installments that may or may not be equal. The Option may be subject to such other terms and conditions on the time or times when
it may or may not be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting
provisions of individual Options may vary. The provisions of this Section 6(f) are subject to any Option provisions governing the
minimum number of Common Shares as to which an Option may be exercised.

 

(g)        Minimum
Vesting. Notwithstanding the foregoing Section 6(f), to the extent that the following restrictions on vesting are required by Section
260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of the Option, then:

 

(i)        Options
granted to an Employee who is not an Officer, Director or Consultant shall provide for vesting of the total number of underlying
Common Shares at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject
to reasonable conditions such as continued employment; and

 

    	 	9	 

     

    

 

(ii)        Options
granted to Officers, Directors or Consultants may be made fully exercisable, subject to reasonable conditions such as continued
employment, at any time or during any period established by the Company.

 

(h)        Termination
of Continuous Service. In the event that an Optionholder’s Continuous Service terminates (other than for Cause or upon the
Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination of Continuous Service) but only within such period of time ending
on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such
longer or shorter period specified in the Option Agreement, which period shall not be less than thirty (30) days), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder
does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall
terminate.

 

(i)        Extension
of Termination Date. If the exercise of the Option following the termination of the Optionholder’s Continuous Service (other
than for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance
of Common Shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier
of (i) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during
which the exercise of the Option would not be in violation of such registration requirements, or (ii) the expiration of the term
of the Option as set forth in the Option Agreement.

 

(j)        Disability
of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such
Option as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the
date six (6) months following such termination of Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than six (6) months), or (ii) the expiration of the term of the Option as set forth in
the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within
the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

 

(k)       Death
of Optionholder. In the event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s
Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled
to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise
the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death pursuant
to Section 6(e)(ii), but only within the period ending on the earlier of (i) the date six (6) months following the date of death
(or such longer or shorter period specified in the Option Agreement, which period shall not be less than six (6) months), or (ii)
the expiration of the term of such Option as set forth in the Option Agreement. If, after the Optionholder’s death, the Option
is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

 

    	 	10	 

     

    

 

(l)        Termination
for Cause. In the event that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate immediately
and cease to remain outstanding.

 

(m)       Non-Exempt
Employees. No Option granted to an Employee that is a non-exempt employee for purposes of the Fair Labor Standards Act shall be
first exercisable for any Common Shares until at least six (6) months following the date of grant of the Option. The foregoing
provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting
of an Option will be exempt from the employee’s regular rate of pay.

 

		7.	Covenants of the Company.

 

(a)        Availability
of Shares. During the terms of the Share Awards, the Company shall keep available at all times the number of Common Shares required
to satisfy such Share Awards.

 

(b)        Securities
Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Share Awards and to issue and sell Common Shares upon exercise of the Share Awards; provided,
however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Share Award
or any Common Shares issued or issuable pursuant to any such Share Award. If, after reasonable efforts, the Company is unable to
obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful
issuance and sale of Common Shares under the Plan, the Company shall be relieved from any liability for failure to issue and sell
Common Shares upon exercise of such Share Awards unless and until such authority is obtained.

 

		8.	Miscellaneous.

 

(a)        Use
of Proceeds. Proceeds from the sale of Common Shares pursuant to Share Awards shall constitute general funds of the Company.

 

(b)        Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate the time at which a Share Award may first be exercised
or the time during which a Share Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions
in the Share Award stating the time at which it may first be exercised or the time during which it will vest.

 

    	 	11	 

     

    

 

(c)        Restrictions
on Share Awards and Common Shares. Unless otherwise determined by the Board or specified by this Plan, prior to either the Company’s
IPO or the Board makes a determination that a public market exists for the Common Shares, the Share Awards or any Common Shares
underlying the Share Awards may not be sold assigned, transferred, pledged, hypothecated or otherwise disposed.

 

(d)        Bring
Along. Except to the extent prohibited by Section 260.140.41(l) and Section 260.140.1 of Title 10 of the California Code
of Regulations, Participants shall sell their Common Shares in accordance with the provisions of the Articles of Association of
the Company, as may be amended from time to time, without the consent of the Participant, in accordance with its terms. The Participants
shall be notified by a written notice of any such amendment, and shall be bound by its terms.

 

(e)        Voting.
Except to the extent required by Section 260.140.41(l) and Section 260.140.1 of Title 10 of the California Code of Regulations,
until either the consummation of the Company’s IPO or the Board makes a determination that a public market exists for the
Common Shares, Common Shares issued to a Participant, shall be voted by an irrevocable proxy assigned to a representative, who
has been appointed by the Company’s Board of Directors as a representative (the “Representative”). The Company’s
Board of Directors may, at its discretion, replace the Representative from time to time. Common Shares subject to proxy shall be
voted by the Representative on any issue or resolution brought before the shareholders of the Company in accordance with instructions
of the Board of Directors of the Company. Each Participant, upon execution of the irrevocable proxy specified above, undertakes
to hold the Representative harmless from any and all claims related or connected to said proxy. The Representative shall be indemnified
and held harmless by the Company against any cost or expense (including attorneys’ fees) reasonably incurred by the Representative,
or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission
to act in connection with the voting of the Common Shares subject to proxy, unless arising out of the Representative’s own
fraud or gross negligence, to the extent permitted by applicable law. In the event the Representative shall have indemnification
by virtue of other functions or services he or she performs for the Company or Affiliate (whether by agreement, insurance policy
or decision of the appropriate corporate body(ies) of the Company and/or Affiliate), this indemnification shall be in addition
to any such other indemnification.

 

(f)        No
Employment or other Service Rights. Nothing in the Plan, any Share Award Agreement, or any other instrument executed thereunder
or any Share Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an
Affiliate in the capacity in effect at the time the Share Award was granted or shall affect the right of the Company or an Affiliate
to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant
pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director
pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which
the Company or the Affiliate is incorporated, as the case may be.

 

    	 	12	 

     

    

 

(g)        Incentive
Share Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common
Shares with respect to which Incentive Share Options are exercisable for the first time by any Optionholder during any calendar
year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions
thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Share Options,
notwithstanding any contrary provision of the applicable Option Agreement(s).

 

(h)       Investment
Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Shares under any Share Award,
(i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial
and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Share Award; and (ii) to give written assurances satisfactory to the Company
stating that the Participant is acquiring Common Shares subject to the Share Award for the Participant’s own account and
not with any present intention of selling or otherwise distributing the Common Shares. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if (i) the issuance of the shares upon the exercise or acquisition of
Common Shares under the Share Award has been registered under a then currently effective registration statement under the Securities
Act, or (ii) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company,
place legends on share certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with
applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Shares.

 

(i)         Withholding
Obligations. To the extent provided by the terms of a Share Award Agreement, the Company may, in its sole discretion, satisfy any
federal, state or local tax withholding obligation relating to a Share Award by any of the following means (in addition to the
Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means:
(i) causing the Participant to tender a cash payment; (ii) withholding Common Shares from Common Shares issued or otherwise issuable
to the Participant in connection with the Share Award; provided, however, that no Common Shares are withheld with a value
exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification
of the Share Award as a liability for financial accounting purposes); or (iii) by such other method as may be set forth in the
Share Award Agreement.

 

    	 	13	 

     

    

 

(j)        Information
Obligation. To the extent required by Section 260.140.46 of Title 10 of the California Code of Regulations, the Company shall
deliver financial statements to Participants at least annually. This Section 8(j) shall not apply to key Employees whose duties
in connection with the Company assure them access to equivalent information.

 

(k)       Electronic
Delivery. Any reference herein to a “written” agreement or document shall include any agreement or document delivered
electronically or posted on the Company’s intranet.

 

(l)         Lock
Up. Following the Company’s IPO, at the request of the underwriter, the Board may determine that the Common Shares issued
pursuant to the exercise of Options may be subject to a lock-up period of 180 days, or such longer period of time as may be recommended
by the Board, during which time Participants shall not be allowed to sell Common Shares.

 

(m)      Rights
as a Shareholder. Unless otherwise specified in the Plan, a Participant shall not have any rights as a shareholder with respect
to Common Shares issued under this Plan, until such time as the Common Shares shall be registered in the name of the Participant
in the Company’s register of shareholders.

 

(n)       Transfer
of Rights Upon Death. No transfer of any right to an Option or underlying Common Shares 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:

 

(i)        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;

 

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

 

(iii)      any
such other evidence as the Board may deem necessary to establish the right to the transfer of the Option or underlying Common
Shares issued upon the exercise thereof and the validity of the transfer.

 

		9.	Adjustments upon Changes in Common Shares; Corporate Transactions.

 

(a)        Capitalization
Adjustments. Upon the happening of any of the following described events, a Participant’s rights to purchase Common Shares
under the Plan shall be adjusted as hereinafter provided.

 

    	 	14	 

     

    

 

(i)        In
the event that the Common Shares of the Company are subdivided or combined into a greater or smaller number of shares or if, upon
a Corporate Transaction, consolidation, reorganization, recapitalization or the like, the Common Shares of the Company are exchanged
for other securities of the Company or of another corporation, each Participant shall be entitled, subject to the conditions herein
stated, to purchase such number of Common Shares or amount of other securities of the Company or such other corporation as were
exchangeable for the number of Common Shares of the Company which such Participant would have been entitled to purchase except
for such action, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination
or exchange.

 

(ii)       In
the event that the Company issues any of its Common Shares or other securities as bonus shares upon or with respect to any shares
which are at the time subject to a right of purchase by a Participant hereunder, each Participant upon exercising such right shall
be entitled to receive (if he so elects), in addition to the shares as to which he is exercising such right, the appropriate number
of bonus shares, on the same terms and conditions as offered to the other shareholders, which he would have received had he been
the holder of the shares as to which he is exercising his right at all times between the date of the granting of such right and
the date of its exercise.

 

(iii)      Upon
the happening of any of the foregoing events, the class and aggregate number of Common Shares issuable pursuant to the Plan, in
respect of which Option have not yet been granted, shall also be appropriately adjusted to reflect the events specified in Sections
9(a)(i) and 9(a)(ii) above.

 

(iv)      The Committee shall determine
the specific adjustments to be made under this Section 9(a), and its determination shall be conclusive.

 

(b)        Corporate
Transactions. The following provisions shall apply to Share Awards in the event of a Corporate Transaction unless otherwise provided
in the instrument evidencing the Share Award or any other written agreement between the Company or any Affiliate and the holder
of the Share Award or unless otherwise expressly provided by the Board at the time of grant of a Share Award. Except as otherwise
stated in the Share Award Agreement, in the event of a Corporate Transaction, then, notwithstanding any other provision of the
Plan, the Board shall, in its sole discretion, take one or more of the following actions with respect to Share Awards, contingent
upon the closing or completion of the Corporate Transaction:

 

(i)        arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume
or continue the Share Award or to substitute a similar share award for the Share Award (including, but not limited to, an award
to acquire the same consideration paid to the shareholders of the Company pursuant to the Corporate Transaction);

 

(ii)        arrange
for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Shares issued pursuant to
the Share Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent
company);

 

    	 	15	 

     

    

 

(iii)       accelerate
the vesting of the Share Award (and, if applicable, the time at which the Share Award may be exercised) to a date prior to the
effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to
the date that is five (5) days prior to the effective date of the Corporate Transaction), with such Share Award terminating if
not exercised (if applicable) at or prior to the effective time of the Corporate Transaction;

 

(iv)       arrange for the lapse of any
reacquisition or repurchase rights held by the Company with respect to the Share Award; and

 

(v)        cancel
or arrange for the cancellation of the Share Award, to the extent not vested or not exercised prior to the effective time of the
Corporate Transaction, in exchange for such cash consideration as the Board, in its sole discretion, may consider appropriate.

 

The Board need not take the same action with respect to all
Share Awards or with respect to all Participants.

 

		10.	Amendment of the Plan and Share Awards.

 

(a)        Amendment
of Plan. Subject to the limitations, if any, of applicable law, the Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 9(a) relating to Capitalization Adjustments, no amendment shall be effective unless approved
by the shareholders of the Company to the extent shareholder approval is necessary to satisfy applicable law.

 

(b)       Shareholder
Approval. The Board, in its sole discretion, may submit any other amendment to the Plan for shareholder approval.

 

(c)        Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Share Options and/or to bring the Plan and/or Incentive Share Options granted under
it into compliance therewith.

 

(d)        No
Impairment of Rights. Rights under any Share Award granted before amendment of the Plan shall not be impaired by any amendment
of the Plan unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing.

 

(e)        Amendment
of Share Awards. The Board, at any time and from time to time, may amend the terms of any one or more Share Awards; provided,
however, that the rights under any Share Award shall not be impaired by any such amendment unless (i) the Company requests
the consent of the affected Participant, and (ii) such Participant consents in writing.

 

    	 	16	 

     

    

 

		11.	Termination or Suspension of the Plan.

 

(a)        Plan
Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before
the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved
by the Shareholders of the Company. No Share Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

 

(b)        No
Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Share Award granted
while the Plan is in effect except with the written consent of the affected Participant.

 

		12.	Effective Date of Plan.

 

The Plan shall become
effective as determined by the Board, but no Share Award shall be exercised unless and until the Plan has been approved by the
shareholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by
the Board.

 

		13.	Choice of Law.

 

The law of the State
of Israel shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that
state’s conflict of laws rules.

 

    	 	17

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