EXCLUSIVE DISTRIBUTION AGREEMENT


 


THIS EXCLUSIVE DISTRIBUTION
AGREEMENT (the “Agreement”), entered into as of 5/26/2011 (the “Effective Date”), is made
by and between InspireMD LTD of 3 Menorat Hamaor st. Tel Aviv, Israel, a Corporation organized and existing under the laws of Israel
and any of its affiliated companies (under formation) (individually and collectively referred to as the “Supplier”),
and Bosti Trading Ltd. (the “Distributor”) located at The Business Forum 30 Karpenisi Street, 1077 Nicosia,
P.O. Box 20533, Cyprus (Each of the Company and the Distributor, a “Party” and together, the “Parties”).


 


WHEREAS, Supplier develops,
manufactures and supplies the Product(s) set forth on Exhibit A hereto, that may be improved or updated by Supplier from time to
time (the “Product(s)”;


 


WHEREAS, Distributor
distributes and sells a wide variety of Product(s) for use in the territory;


 


WHEREAS, Supplier wishes
to sell the Product(s) to Distributor, and Distributor wishes to purchase the Product(s) from Supplier, subject to the terms and
conditions of this Agreement;


 


NOW THEREFORE, in consideration
of the premises and mutual covenants contained herein, the parties agree as follows:


 


1.          Representations,
Undertakings, Appointment and Responsibilities of Distributor


 


1.1           Representations
and Warranties. Distributor hereby represents and warrants to the Supplier that it possesses and will maintain throughout the
term of this Agreement, the means, experience, know-how, skill, facilities and personnel to properly fulfill its obligations under
this Agreement in a timely manner and to the Supplier’s satisfaction. Further, the Distributor represents and warrants that
it is duly licensed to execute its obligations under this Agreement.


 


1.2           Undertakings.
Distributor hereby undertakes that he will, at its own expense, be responsible for obtaining any and all permits, approvals, product
registration with the Ministry of Health, licenses authorizations and clearances from local, state, municipal, governmental, quasi-governmental
and other authorities, required, necessary or desirable for the sale and distribution of the Product(s) in the Territory and for
the performance of the Distributor’s obligations hereunder. The local approvals will be obtained when required by the local
authorities in addition to the existing certificates and whenever possible these local approvals will be obtained in the name of
the Supplier. Pursuant to this engagement, Distributor agrees to purchase the Product(s) from Supplier, and Supplier agrees to
sell the Product(s) to Distributor when such Product(s) are ordered hereunder in accordance with the terms hereof.


 


1.3           Appointment.
As of the Effective Date, Supplier hereby engages Distributor as its Exclusive distributor for the distribution and sale of the
Product(s) solely in the geographical areas set forth on Exhibit B hereto (the “Territory”), subject
to the terms and conditions of this Distribution Agreement. Distributor hereby accepts such engagement, subject to the terms and
conditions of this Distribution Agreement. Distributor acknowledges that it may not make any commitment or binding obligation on
behalf of Supplier.


 



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1.4           Sales
Minimums. Distributor hereby commits to Supplier to achieve, at a minimum, the sales set forth on Exhibit C hereto
during the term of this Agreement (“Sales Minimum”), and the total value of orders for each year listed therein
(the “Order Value”). If Distributor fails to achieve the Sales Minimum and/or the Order Value in any given
period specified in Exhibit C hereto, Supplier may, at its own discretion either: (i) terminate this Agreement in accordance
with Section 9.1 below, or (ii) revoke the exclusive appointment granted to the Distributor under Section 1.3 and
appoint Distributor as a non-exclusive Distributor in the Territory. Supplier shall notify Distributor if such appointment is
made. Said appointment shall not derogate from the terms of this Agreement and except as shall be set forth in the Company’s
notice as aforesaid all other terms of this Agreement shall remain in effect Mutatis Mutandis.


 


1.5          Responsibilities.
Distributor shall bear its own expense for the execution of the following:


 


		a)	Product(s) Promotion. Distributor shall use its best efforts to introduce to the market,
promote and obtain orders for the Product(s) in the Territory. For the execution of said promotion, Distributor shall employ highly
qualified sales and technical personnel familiar with the Product(s). Distributor agrees that it shall execute its obligation under
this section in a manner that reflects positively on the Supplier and the Product(s) and shall not perform any act or omission
which may harm the goodwill of, or be injurious to, the Product(s) or Supplier. Further, all marketing material, Product(s) information,
brochures and the like, containing information relating to the Product(s) requires the approval of the Supplier prior to its distribution
to end users or prospects Distributor engages and shall be exclusively owned by the Supplier.



 


		b)	Marketing Plan. Distributor agrees to submit to Supplier within thirty (30) days hereof
a marketing plan detailing the promotional and marketing activities for sales of the Product(s) in the Territory. Said marketing
plan is subject to Supplier’s approval prior to its implementation and shall include attendance in local shows, distribution
of marketing material translated into the language used in the Territory. Distributor shall keep Supplier continuously informed
of the status of its marketing efforts under the marketing plan and shall furnish all information relating to the sales of the
Product(s) in the Territory as may be reasonably requested by Supplier from time to time.



 


		c)	Sales Personnel. Distributor shall train an appropriate number of its qualified employees
in the sale of the Product(s) (“Sales Personnel”). Number of Sales Personnel shall be sufficient for the purpose
of promoting, marketing, selling and distributing the Product(s) in the Territory in accordance with Section 1.3 above.
Without derogating from the above, Distributor may use subcontractors for the distribution of the Products provided that the prior
written approval of the Supplier is provided. Distributor shall be held accountable for all distribution activities performed by
subcontractors in distributing the Products under this Agreement. The Supplier shall have the right, at all times, to discontinue
the use of a specific subcontractor at its sole discretion on a case to case basis.



 



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		d)	Compliance and Reporting. Distributor shall comply with any and all safety regulations and
standards and such other regulations or requirements as are or may be promulgated by authorized governmental authorities and required
in order to carry out the terms of this Distribution Agreement. Distributor shall provide Supplier with all information pertaining
to adverse events or safety issues related to the Product(s), such information shall be notified together with a detailed description
within one working day. Further, Distributor shall promptly provide Supplier with all information alleging Product(s) deficiencies
related to the identity, quality, durability, reliability, effectiveness, or performance of the Product(s).



 


		e)	Quality Assurance and Product Traceability and MDD 93/42/EEC. Distributor or any sub-distributor
rendered by Distributor shall be responsible for the implementation and maintenance of a quality System that fulfills the requirements
of MDD 93/42/EEC, including, inter alia recalls, notification to local authorities and document maintenance.



 


		f)	Post-Marketing Surveillance Program. Distributor shall maintain a Post-Marketing Surveillance
Program. Supplier and the Distributor shall cooperate with each other in order to provide all information required and execute
said program. The PMSP shall include, among others, immediate notification to both Supplier and Distributor in the event that a
serious defect is discovered in a product which has already been released.



 


		g)	Documentation. Distributor shall maintain and keep all written and electronic records required
by any laws or regulations relating to the distribution of the Inspire Products for 15 years at least. Further, Distributor shall
submit all documentation requested by the authorities or notified bodies for inspection or for any other purpose, as instructed
by Inspire from time to time.



 


		h)	Traceability of Products. In order to ensure compliance with laws and regulations relating
to the traceability of the products, Distributor undertakes to take all appropriate measures to ensure:



 


		·	backward traceability to Supplier (and where applicable, to the Authorized Representative (name
and address of the Authorized Representative printed on Product packaging); and



 


		·	reasonable product traceability to users to minimize the risks in case of recall; and



 


		·	language requirements according to national legislation; and



 



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		·	compliance with any other responsibilities, liabilities, and obligations as set forth in Council
Directive 93/42/EEC for manufacturers and any other laws, statutes, directives and regulations promulgated by any governmental
body that may apply to the manufacturing and distribution of products.



 


		i)	Customer Complaints and Recalls. In the event a serious defect is discovered in a Product
which has already been distributed, Distributor shall immediately notify Supplier in writing, specifically in cases of notifiable
incidents or near-incidents according to §§ 28-31 MPG, which are to be reported immediately in written form to the safety
commissioner for medical products of Supplier. Supplier shall support the Distributor in analyzing product complaints in an effective
manner.



 


		j)	Customers. Distributor shall provide to Supplier, at the time of placing a purchase order,
any detail of the end-user reasonably required by the Supplier for support and licensing purposes (“Customer Information”).
Supplier undertakes not to disclose the Customer Information to third parties, and to use the Customer Information strictly for
support and licensing purposes. Supplier further undertakes not to contact the end-user directly or indirectly for sales and marketing
purpose during the Term, unless otherwise agreed by the parties hereto. Distributor shall provide Supplier on a quarterly basis
and upon termination of this Agreement, with a list of all customers that have purchased Product(s) from Distributor, including
their names, addresses, Product(s) purchased, purchasing date and purchase price.



 


		k)	Records. Distributor shall maintain complete and accurate records of all Product(s) sold
by Distributor in sufficient detail to enable Supplier to comply with its obligations under this Agreement.



 


		l)	Storage. Distributor shall store the Products in a storage facility and under conditions
suitable to fit the Product’s nature as a delicate sterilized medical device to be used in humans.



 


		m)	Minimum Inventory. Distributor shall at all times after the Effective Date of this Agreement
maintain at all time, a minimum inventory of Products equivalent to one quarter of sales of the current year, to ensure the timely
supply of Products to the customers.



 



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		2.	Term of Agreement



 


This Agreement shall commence
and be effective as of the Effective Date provided that the Distributor will timely transfer the 1st payment for the
1st Order under this Agreement in accordance with the payment schedule and terms set forth in Exhibit D and fulfill
first order terms according to paragraph 3.6.1 (First Order) & 3.7.b (Payment). If the Distributor fails to timely pay the
1st payment to the Supplier under this Agreement this Agreement shall not come into effect and shall be deemed only
as an offer of the Supplier that has not been accepted by the Distributor. Upon the failure of the Distributor to pay the 1st
payment as aforesaid, the Supplier’s offer to enter into this Agreement shall terminate automatically and without the need
of any further action on the Supplier’s side. This agreement (if comes into effect as aforesaid) will remain effective as
long as minimum Sales and payment as defined in Exhibit C will be sustained. This agreement shall continue for a term of
3 years (the “Term”) commencing with the Effective Date of this Agreement, and subject to the payment of the
1st payment to the Supplier as aforesaid, unless terminated pursuant to Section 9 below. Subject to the fulfillment
by the Distributor of all of its obligations hereunder, the parties may extend the Term by an additional one term of 12 months
(“Renewal”) through a written consent signed by the parties at least ninety (90) days prior to the date on which
this Agreement otherwise would have expired.


 


The Distributor is hereby advised
that without derogating from any other provision of this Agreement, this Agreement draft shall neither constitute a binding agreement
nor enter into effect until it is duly signed by the Distributor and InspireMD. InspireMD does not have any obligation to sign
this Agreement draft with the Distributor and such decision is at InspireMD’s sole discretion. Until the full signing of
this Agreement and the payment of the 1st payment hereunder as aforesaid, InspireMD is entitled to negotiate with several
candidates for distribution of its Products within the Territory. InspireMD LTD is not obligated to appoint the Distributor herein
as InspireMD’s distributor in the Territory and in the event that InspireMD LTD decides not to appoint the Distributor under
this Agreement draft, the Distributor shall not have any claim, right or demand against InspireMD or any of its shareholders, directors,
officers, employees or advisors.


 


		3.	Purchases, Prices, Payment and Forecasts



 


3.1           Standard
Terms. Distributor shall purchase Product(s) from Supplier pursuant to Supplier’s standard purchase order. After receipt
of Distributor’s purchase order, Supplier shall confirm, in writing, the details of the purchase order and payment terms
for such purchase order. Supplier shall be obligated to sell to Distributor Products after the confirmation of the purchase order
and payment terms has been made by Supplier. Supplier may, at its sole discretion, make changes to its Product(s) list at any time,
provided that outstanding purchase orders which have been confirmed by Supplier will not be affected by such change. Such changes
shall be communicated in writing to the Distributor of such change. All sales from the Supplier to the Distributor are final and
nonrefundable.


 


		3.2	Prices.



 


		a)	Transfer prices of the Product(s) from Supplier to Distributor are specified in Exhibit C
to this Agreement (the “Prices”). Distributor shall complete the appropriate import/export forms as required
by applicable laws and shall pay all other fees associated with the sale and delivery of all Product(s) hereunder, Including but
not limited to customs clearance or customs tax as may apply.



 


		b)	Supplier shall have the right to change the Prices with a sixty (60) days prior written notice
(the “Price Notice”) to Distributor. Orders placed by Distributor and approved by the Supplier along with their
payment terms prior to the last day of the Price Notice period shall not be effected by said price change, and any written quote
provided by the Distributor to prospect end-users following the Supplier’s confirmation of the applicable order and its payment
terms prior to the Price Notice shall be subject to the previous pricing, provided that a copy of such quote has been provided
by Distributor to the Supplier prior to the Price Notice.



 



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3.3           Product(s)
Changes. Supplier reserves the right, at any time, at its sole discretion to make changes to any Product(s) whenever such changes
are (a) required for safety, (b) required in order to facilitate performance in accordance with specifications, or (c) such that
they represent non-substantial substitutions and modifications not adversely affecting performance in accordance with applicable
Product(s) performance specifications. Supplier will inform Distributor within a reasonable time of any changes under this Section
3.3.


 


3.4           Purchase
Orders. All orders for Product(s) shall be placed by and subject to Distributor’s purchase orders in the form attached
to as Exhibit E to this Agreement, each of which shall be subject to review and acceptance in writing by Supplier. Distributor’s
purchase orders shall include the following information:


 


		a)	Identify each unit of Product(s) ordered;



 


		b)	Indicate quantity, price (determined in accordance with the provisions of this Agreement) and shipping
instructions; and



 


		c)	Specify Distributor’s requested delivery dates.



 


Supplier is not bound by any
term, condition or other provision in any purchase order that conflicts with the terms of this Agreement, unless such purchase
order was confirmed in writing by Supplier.


 


3.5           Once
a purchase order along with its payment terms is received and confirmed by Supplier, the order shall be deemed complete and final.
Any request by Distributor to make modifications after the purchase order is confirmed but before shipment of the Product(s), shall
be dealt with by Supplier on a “best effort” basis.


 


3.6           Schedule
of Purchases:


 


		3.6.1	Distributor shall issue the Supplier the First Order of InspireMD LTD stents (the “First
Order”) within 15 days from the date of this Agreement.



 


		3.6.2	Distributor shall issue the Supplier all his orders at the beginning of each yearly Quarter, all
based on Exhibit C. All order of stents, shall be issued not later than the first month in each quarter.



 


3.7           Payment.


 


		a)	Payments for Product(s) shall be made in accordance with the payments schedule and means set forth
in Exhibit D, by Distributor to Supplier pursuant to all additional terms listed therein.



 



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		b)	Title to Products. Title to the Product(s) purchased hereunder shall pass to Distributor
only after the full payment of the applicable purchase order.



 


		c)	Risk of Loss. Any and all risks of loss or damage to Product(s) shall be borne by Distributor
from the time such Product(s) are delivered to the Distributor’s representative at the Company’s facilities either
at Germany or Israel.



 


		d)	Distributor’s obligation to pay for all Product(s) ordered and all charges which it has incurred
in connection with the execution of this Agreement shall survive termination or expiration of this Agreement.



 


3.8         Forecasts.
Not later than a week from the beginning of each quarter during the Term of this Agreement, Distributor will provide an estimate
of its demand for Product(s) for the following quarter. Such rolling forecasts shall not be binding on either party, but shall
be prepared with reasonable care, based upon Distributor’s experience with the Product(s) and information concerning existing
and prospective customers.


 


		4.	Responsibilities of Supplier



 


		4.1	Marketing and Sales Support.



 


		a)	Training and Support - Distributor shall train and support its personnel or subcontractors
for the satisfactory completion of its obligations under this Agreement. Supplier will assist in training by furnishing Distributor
with English training literature.



 


		b)	Supplier may, at his sole discretion, provide Distributor with his own personnel for training.



 


		c)	Marketing Material. Supplier shall provide Distributor with English language marketing literature.



 


		d)	Marketing Activities. Supplier may at his own discretion choose to assist Distributor in
marketing activities, by participating in conferences, meeting with customers, bringing opinion leaders and any other activities
Supplier may choose to be involved in provided that said activities shall be coordinated with Distributor.



 


		e)	Supplier may list Distributor at the Supplier’s Website as a Distributor in the Territory.



 


		4.2	Product(s) Specifications and Standards.



 


		a)	Recalls and Retrofits. Supplier agrees that if any Product(s) is found by a government agency,
sovereign, legislative or executive branch of government, or a court of competent jurisdiction to be in violation of any applicable
law or regulation, Supplier shall be solely responsible for the necessary repair, replacement, or other remedy of such violation:
cost of such replacement, freight charges, duties and taxes.



 



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		b)	Compliance with Applicable Laws. Supplier certifies that all of the Product(s) to be furnished
under this Agreement will be manufactured or supplied by Supplier in accordance with all applicable government provisions and stipulations
in the CE mark. Distributor will be responsible for making adjustments, if needed, to meet local regulation.



 


		5.	Warranty and Maintenance



 


		5.1	Warranty, Maintenance Obligations of Supplier to Distributor.



 


		a)	In the event that a Product is found defected from manufacturing and Distributor shall inform the
Supplier of such defect within 30 days following release of the Product from customs, the Supplier’s sole responsibility
shall be the replacement of the defected Product. Such Product replacement shall be the sole remedy of the Distributor. In the
event that the Distributor does not inform the Supplier as aforesaid the Suppliers warranty shall not apply.



 


		b)	All Warranty claims against Supplier shall be made by Distributor, regardless of whether Distributor
has transferred title or possession of the Product(s) to other parties.



 


		c)	The Warranty is contingent upon the proper use of the Product(s), and does not cover Product(s)
that have been modified without Supplier’s approval, or that have been subject to unusual physical or electrical stress,
misuse, unauthorized use, impropriate storage, negligence or accident, or that have passed their expiration date.



 


		d)	Supplier makes no warranty in respect of accessories and other parts made by other suppliers that
have been attached or connected to the Product(s).



 


		e)	THE FOREGOING WARRANTIES SET FORTH IN SECTION 5.1 ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER
WARRANTIES, EITHER WRITTEN, ORAL OR IMPLIED, WHICH ARE HEREBY SPECIFICALLY DISCLAIMED AND EXCLUDED BY SUPPLIER, INCLUDING, BUT
NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE AND NON-INFRINGEMENT OR ANY IMPLIED
WARRANTIES ARISING BY COURSE OF DEALING OR USAGE OF TRADE). THE SOLE AND EXCLUSIVE REMEDIES OF DISTRIBUTOR FOR BREACH OF PRODUCT(S)
WARRANTY SHALL BE LIMITED TO THE REMEDIES PROVIDED IN THIS AGREEMENT.



 



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		f)	(NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, SUPPLIER SHALL NOT BE LIABLE TO ANY PERSON
FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, HOWEVER ARISING, INCLUDING, BUT NOT LIMITED TO, DAMAGES TO OR LOSS
OF PROPERTY OR EQUIPMENT, LOSS OF PROFIT, LOSS OF USE OF DATA, LOSS OF REVENUES OR DAMAGES TO BUSINESS OR REPUTATION ARISING FROM
THE PERFORMANCE OR NON-PERFORMANCE OF ANY ASPECT OF THIS AGREEMENT OR ANY ORDER HEREUNDER, OR FROM ANY CAUSE WHATSOEVER ARISING
FROM OR 1N ANY WAY CONNECTED WITH THE MANUFACTURE, SALE, HANDLING, REPAIR, MAINTENANCE OR USE OF THE PRODUCT(S), WHETHER OR NOT
SUPPLIER SHALL HAVE BEEN MADE AWARE OF THE POSSIBILITY OF SUCH LOSS. ANY OTHER PRODUCT(S) REPRESENTATIONS OR WARRANTY MADE BY ANY
OTHER PERSON OR ENTITY, INCLUDING EMPLOYEES OR REPRESENTATIVES OF DISTRIBUTOR THAT ARE INCONSISTENT HEREWITH, SHALL BE DISREGARDED
AND SHALL NOT BE BINDING UPON SUPPLIER. IN NO EVENT SHALL SUPPLIER’S LIABILITY FOR PARTICULAR UNITS OF THE PRODUCT(S) HEREUNDER
EXCEED THE PURCHASE PRICE OF SUCH UNITS.



 


		g)	This Section 5.1 shall survive expiration or termination of this Agreement.



 


		5.2	Warranty and Maintenance Obligations of Distributor to Customers.



 


		a)	Distributor shall make no warranties or guarantees with respect to Product(s) or the use thereof
except as provided herein or otherwise authorized in writing by Supplier.



 


		b)	Distributor shall educate and inform End Users of the proper and safe use of the Product(s). In
the event that Distributor learns or becomes aware of any information indicating that any of the Product(s) have failed to perform
satisfactorily, or receives any complaints or information from anyone concerning the safety and/or merchantability of any of the
Product(s), Distributor shall notify Supplier immediately. Distributor shall maintain a file of customer suggestions, comments,
incident reports and Distributor responses and shall forward all such information to the Supplier in writing on the last day of
each quarter this Agreement is in effect and for a period of 6 months from the termination of this Agreement if such information
becomes available after termination.



 


		6.	Intellectual Property and Ownership



 


		6.1	Distributor acknowledges and agrees that:



 


		a)	All intellectual property rights pertaining to the Product(s) and any improvement thereof, including
but not limited to patents, know-how, copyright, trademarks, whether protectable or not, registered and unregistered, owned and/or
otherwise used by Supplier and all goodwill related thereto (collectively, the “IP Rights”) are and shall remain at
all time, as between Supplier and Distributor, the exclusive property of Supplier and may not be exploited, reproduced or used
by Distributor except as expressly permitted under this Agreement.



 



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		b)	Distributor shall not have or acquire any right, title or interest in or otherwise become entitled
to any IP Rights by taking delivery of, making payment for, distributing and/or selling or otherwise using or transferring the
Product(s).



 


		c)	Distributor shall take all reasonable measures to ensure that all IP Rights of Supplier shall remain
with Supplier, including promptly notifying Supplier of any possible infringement by third parties of Supplier’s IP Rights
and participating with Supplier, at Supplier’s expense, in any legal action against such infringement that in Supplier’s
sole judgment is required for protection or prosecution of Supplier’s rights.



 


		d)	Supplier shall be the sole owner of the Product Registration in the Territory. Distributor shall
forward a copy of the completed registration as soon as the registration is completed and finalized



 


		6.2	Without derogating from Section 6.1 above:



 


		a)	Supplier may at any time affix Supplier’s trade name, service marks or trademarks (the “Trademarks”)
to any of the Product(s) and use the Trademarks in relation to any services Supplier provides hereunder in connection with the
Product(s); Distributor shall not make any changes to the Trademarks used on Products by Supplier.



 


		b)	Distributor shall not have or acquire any right, title or interest in or otherwise become entitled
to use any of the Supplier’s Trademarks, either alone or in conjunction with other words or names, or use the goodwill thereof,
without the express written consent of Supplier in each instance; and



 


		c)	Distributor shall not to apply for or oppose registration of any trademarks, including the Trademarks,
used by Supplier.



 


6.3         Nothing
contained in this Agreement shall be construed as conferring on either party any right or imposing any obligation to use in advertising,
publicity or otherwise any trademark, name or symbol of the other party, or any contraction, abbreviation or simulation, except
as expressly provided for in this Agreement.


 


6.4         Distributor
acknowledges that no license or right is granted hereby with respect to Supplier’s intellectual property.


 


		7.	Confidentiality



 


7.1         Without
the written consent of the other party, neither party shall disclose to any third party, or use for its own benefit or the benefit
of others, either during or after the Term of this Agreement, any confidential or proprietary business or technical information
of the other party that has been identified as confidential or proprietary by the disclosing party in accordance with Section
7.2 below.


 



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7.2           To
be considered proprietary information, the information must be (i) disclosed in writing or other tangible form and marked confidential
or proprietary, or (ii) disclosed orally or visually, identified as confidential at the time of disclosure and reduced to writing
and marked confidential or proprietary within thirty (30) days of the disclosure thereof.


 


7.3           Proprietary
information shall not include information which (i) is already rightfully known or becomes rightfully known to the receiving party
independent of proprietary information disclosed hereunder; (ii) is or becomes publicly known through no wrongful act of the receiving
party; (iii) is rightfully received from a third party without similar restrictions and without breach of this Agreement; or (iv)
in the opinion of counsel, is required to be disclosed to comply with any applicable law, regulation or order of a government authority
or court of competent jurisdiction, in which event the receiving party shall, prior to such disclosure, advise the other party
in writing of the need for such disclosure and use its reasonable best efforts to obtain confidential treatment of such information.


 


		8.	Indemnification and Insurance



 


8.1           Supplier
Indemnification. Supplier shall indemnify, hold harmless and defend Distributor, its successors and assigns for all losses,
claims and defense costs claimed by any third party for any injury, death or property damage suffered by such third party to the
extent resulting from a defect in the manufacture or design of the Product(s) supplied hereunder, unless such injury, death or
property damage is the result of Distributor’s negligence, willful misconduct, breach of this Agreement or any modification
made by Distributor to the Product(s) without Supplier’s consent.


 


8.2           Distributor
Indemnification. Distributor shall indemnify, hold harmless and defend Supplier, its successors and assigns for all losses,
claims and defense costs claimed by any third party for any injury, death or property damage suffered by such third party to the
extent resulting from Distributor’s negligence, willful misconduct or breach of this Agreement.


 


9.          Termination


 


		9.1	The Supplier may terminate this Agreement with immediate effect if the Distributor:



 


		a)	Is in default of its payment obligations hereunder, and such default continues for fifteen (15)
days following receipt of written notice; or,



 


		b)	Is in default of any other material obligation hereunder and such default is not cured within thirty
(30) days following receipt of written notice from Supplier; or



 


		c)	Fails to timely meet the Minimum Sales or Order Value as defined in Exhibit C.



 


		d)	Distributes or attempts or assist to distribute the Products outside of the Territory.



 


9.2           Either
party may terminate this Agreement if the other party is declared bankrupt or is involved in any insolvency proceedings, attachment
or other proceedings, which, in the reasonable opinion of either party prevents the other party from performing its obligations
under this Agreement.


 



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9.3           Either
party may terminate this Agreement for any reason or without reason with 30 days written notice (hereinafter “Termination
Notice”) without further penalties or indemnification, provided however that Distributor may conclude any Pending Sale.
For the purpose of this Section, “Pending Sale” shall be defined as any sale to a prospect end-user that the
Distributor has provided with a written sales-quote and Supplier confirmed prior to the end of the Termination Notice, to a total
of no more than ten Pending Sales. After the submission of the Termination Notice to the Distributor, the Supplier may not accept
new purchase orders.


 


9.4           Termination
of this Agreement shall not affect any obligations of either party incurred hereunder prior to such termination, or any obligations
that expressly survive termination of this Agreement.


 


9.5           Distributor
is aware that in certain jurisdictions and/or countries, local authorities require that a sole named importer of the Product is
authorized to distribute the Product in the Territory. Therefore, distributor agrees to execute all documents required by the relevant
authorities for the purpose of execution of this Agreement and shall further provide the Supplier, upon its first request with
all documents and signatures required for the purpose of disengaging distributor as the Supplier’s sole names distributor
in the Territory as set forth in Exhibit F of this Agreement.


 


		10.	General Provisions



 


10.1         Relationship
of the Parties. Distributor shall act as an independent contractor, purchasing Product(s) from Supplier and reselling them
in the Territory. Distributor shall not act, and shall not be deemed as, agent for Supplier, nor shall Distributor have any right
or power hereunder to act for or to bind Supplier in any respect. This Agreement shall not be deemed to create any employer-employee
relationship between Supplier and Distributor, nor any agency, franchise, joint venture or partnership relationship between the
parties.


 


10.2         Amendment
of Policies and Exhibits. Supplier may at any time, by written notice to Distributor, amend its policies relating to service,
Warranty, delivery, terms of sale, and/or amend the Exhibits hereto; provided, that substantial adjustments to the Product(s)
and the Territory shall be made after Supplier has furnished Distributor with a ninety (90) days written notice.


 


10.3         Assignment.
This Agreement, and the Distributor’s rights and obligations hereunder, shall not be assigned in whole or in part by the
Distributor without the prior written consent of Supplier. Any attempted assignment or delegation without such consent shall be
void and of no effect. The Parties agree that the Supplier shall have the right to assign all of its rights and obligations under
this Agreement to an entity not a party to this Distribution Agreement provided that such Entity undertakes the obligations of
the Supplier.


 



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10.4         Notices.
Any and all notices permitted or required to be made under this Agreement shall be in writing, signed by the party giving such
notice, and shall be delivered, personally or sent by facsimile or registered mail or electronic mail, to the other party at its
address set forth in this Agreement, or the latest known address of the party. The date of personal delivery, facsimile confirmation
date as stated on the facsimile transfer report, or ten (10) days after being sent by registered mail, shall be the date of such
notice.


 


10.5         Publicity.
It is agreed the Supplier may identify Distributor as a distributor of Supplier’s Product(s) in advertisements and other
promotional literature. It is further agreed that Distributor may identify to its customers that Supplier is a supplier of the
Product(s) to Distributor. Neither party shall otherwise use the name of the other party in any advertising, publicity, promotional
literature, brochures, sales aids or marketing tools without the prior written consent of such other party.


 


10.6         Agreement
Governs. In the event of any conflict between the terms of this Agreement and the terms of any Supplier or Distributor purchase
order, sales contract or acknowledgment used in connection with any individual sale or purchase, the terms of this Agreement shall
overrule, unless otherwise expressly agreed to in writing by Distributor and Supplier at the time of such individual sale.


 


10.7         No
Waiver. Failure to enforce any rights hereunder, irrespective of the length of time for which such failure continues, shall not
constitute a waiver of those or any other rights, nor shall a waiver by either party in one or more instances be construed as constituting
a continuing waiver or as a waiver in other instances.


 


10.8         Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by and interpreted only in accordance
with the laws of the State of Israel, without giving effect to principles of conflicts of law. The parties hereto irrevocably submit
to the exclusive jurisdiction of the courts of Tel-Aviv, Israel any dispute or matter arising out of, or connected with, this Agreement
or the termination thereof.


 


10.9         Complete
Agreement. This Agreement, including the Exhibits hereto, constitutes the full and complete agreement of the parties hereto
and supersedes all prior agreements and understandings relating to the subject matter hereof. Except as otherwise provided in Section 10.2
above or elsewhere herein, this Agreement may not be amended or otherwise modified unless evidenced in writing and signed by Distributor
and Supplier.


 


10.10         Severance.
If any provision or provisions of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction,
such provision(s) shall be severed, and the validity, legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby. The parties shall use all commercially reasonable efforts to agree upon a valid and enforceable
provision for the severed provision(s), taking into account the intent of this Agreement.


 


10.11         Force
Majeure. Failure of either party to perform its obligations under this Agreement (except the obligation to make payments) shall
not subject such party to any liability or constitute a breach of this Agreement if such failure is caused by any event or circumstances
beyond the reasonable control of such non-performing party, including without limitation acts of God, fire, explosion, flood, drought,
war, riot, sabotage, embargo, strikes or other labor trouble, failure in whole or in part of suppliers to deliver on schedule materials,
equipment or machinery, interruption of or delay in transportation (unless caused by the party so affected), a national health
emergency or compliance with any order or regulation of any government entity. A party whose performance is affected by a force
majeure event shall take prompt action to remedy the effects of such force majeure event.


 



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10.12         Further
Assurances. Each party shall execute and deliver such further instruments and do such further reasonable acts and things as
reasonably may be required to carry out the intent and purpose of this Agreement.


 


10.13         Counterparts.
This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which shall be original
as against the party whose signature appears thereon, but all of which taken together shall constitute one and the same instrument.


 


10.14         Survival.
Sections 1, 3, 5, 6, 7, 8, 9, and 10.8 shall survive the termination of this Agreement.


 



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IN WITNESS WHEREOF,
each of the parties has caused this Agreement to be executed by its duly authorized representative:


 


	InspireMD LTD	 	Distributor
	 	 	 	 	 
	By:	/s/ Asher Holzer 	 	By:	/s/ K. Scortis
	 	 	 	 	 
	Name:	 Asher Holzer	 	Name:	 K. Scortis
	 	 	 	 	 
	Title:	President	 	Title:	Director


 



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EXHIBIT A – PRODUCT(S)


 


		·	MGuard Prime Coronary Stent System, MGuard Coronary Stent System



 



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EXHIBIT B – TERRITORY


 


Russian Federation


 



    	17



    	 



    

 


 


EXHIBIT C – STENT PRICES AND
SALES MINIMUS


 


Sales Minimum and Transfer prices per Quarter:


 


All Prices and transfer prices are: EX-Works
Israel


 


	2011	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Total	 
	Stent Quantity	 	 	NA	 	 	 	NA	 	 	 	500	 	 	 	500	 	 	 	1,000	 
	Price Euro	 	 	NA	 	 	 	NA	 	 	 	560	 	 	 	560	 	 	 	 	 
	Total Euro	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 



  


	2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stent Quantity	 	 	875	 	 	 	875	 	 	 	875	 	 	 	875	 	 	 	3,500	 
	Price Euro	 	 	560	 	 	 	560	 	 	 	560	 	 	 	560	 	 	 	 	 
	Total Euro	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 



  


	2013	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stent Quantity	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	6,000	 
	Price Euro	 	 	560	 	 	 	560	 	 	 	560	 	 	 	560	 	 	 	 	 
	Total Euro	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 



  


	2014	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stent Quantity	 	 	2,000	 	 	 	2,000	 	 	 	NA	 	 	 	NA	 	 	 	4,000	 
	Price Euro	 	 	560	 	 	 	560	 	 	 	NA	 	 	 	NA	 	 	 	 	 
	Total Euro	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 



 


First Order: A Total of 500 stents at
a price of 560 Euro per stent


 


Distributor shall place the “First
order” within 15 days from the “Effective Date”.


 



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EXHIBIT D – PAYMENT SCHEDULE


 


With respect to any Order below and any
additional Orders under this Agreement, the Distributor shall pay to the Supplier the consideration as follows:


 


		1.	[Not Applicable]



 


		2.	[Not Applicable]



 


		3.	33% of the total value of the Order upon the Supplier’s notice to Distributor that the Products
are ready for delivery



 


		4.	67% of the total value of the Order upon 120 days immediately following the Supplier’s shipment
of the Products



 


All payments are pre-condition to the delivery
of the Products to the Distributor’s representative at the Supplier’s facility as provided in the Agreement and the
Exhibits thereto.


 


Means of Payment by Distributor


 


		(a)	Payment of the All Orders shall be made by means of wire transfer to the bank account of the Supplier
in terms an aforesaid.



 



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EXHIBIT E – PURCHASER ORDER


 


 


	Your Address	 	 	 
	Phone/Fax	 	 	 
	City, State, Zip Country	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Order Date:
	3 Menorat Hamaor St.	 	 	Payment Terms:
	Tel Aviv	 	 	EXW Point:
	Israel	 	 	Freight Terms:
	Phone:	 	 	 
	 	 	 	 
	Ship To:	 	 	Invoice To:
	 	Distributor	 	 
	 	Address 1	 	 
	 	Address 2	 	 
	 	City, State, Zip	 	 
	 	Phone:	 	Phone:
	 	Attn:	 	Attn:





	Diameter	 	Length	 	Quantity	 	Description	 	
        Cat

        No.
	 	
        Ship

        Date

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 


 


	  Purchase Order Comments


 


	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	Signature:	 
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 


 



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EXHIBIT F — DISTRIBUTOR WAIVER


To:


InspireMD LTD


3 Menorat Hamaor st. Tel Aviv 


Israel


 


Distributor Waiver


 


Attn: Dr. Asher Holzer


 


Bosti Trading Ltd. hereby
undertakes to sign, execute and deliver to you all required documents requested by the local regulatory authorities or other authorities
as may be relevant, in order to allow Inspire MD to name another local importer for the purpose of distributing its products in
Russian Federation (Country of sales). Bosti Trading Ltd. understands and acknowledges that inspire
would suffer irreparable damages and great financial loss if it is unable to appoint a distributor of its choice in the Territory
and therefore Bosti Trading Ltd. undertakes to perform the above in a timely and efficient manner. Further, Bosti
Trading Ltd. waives any rights with respect to it being the named importer in the Territory, or the registration rights
to the Product(s) as provided for in the Distribution Agreement executed between Bosti Trading Ltd. and the Supplier.
This letter does not release InspireMD LTD of any obligations it has towards Bosti Trading Ltd. including any financial
claims Bosti Trading Ltd. may have for services it performed under the Distribution Agreement.


 


	 	 
	NAME	 
	 	 
	 	 
	TITLE	 
	 	 
	 	 
	DATE	 


 



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EXHIBIT G – SHIPPING INSTRUCTIONS


 



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