Document:

THE SECURITIES REPRESENTED BY THIS AGREEMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR REGISTERED
OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATES OR OTHER JURISDICTIONS. THEY ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE REGISTRATION AND QUALIFICATION REQUIREMENTS OF SUCH LAWS. THE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER
THE SECURITIES ACT AND SUCH LAWS PURSUANT TO REGISTRATION, QUALIFICATION OR EXEMPTION THEREFROM AND IN ACCORDANCE WITH THE TERMS
OF THIS AGREEMENT. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR BY ANY STATE
OR OTHER SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED
THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS, AND ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

 

 

 

SENIOR LOAN FUND JV I, LLC

 

LIMITED LIABILITY COMPANY AGREEMENT

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE 1 DEFINITIONS	1
	 	Section 1.1	Definitions	1
	 	 	 	 
	ARTICLE 2 GENERAL PROVISIONS	5
	 	Section 2.1	Formation of the Limited Liability Company	5
	 	Section 2.2	Company Name	5
	 	Section 2.3	Place of Business; Agent for Service of Process	5
	 	Section 2.4	Purpose and Powers of the Company	5
	 	Section 2.5	Fiscal Year	6
	 	Section 2.6	Liability of Members	6
	 	Section 2.7	Member List	6
	 	 	 	 
	ARTICLE 3 COMPANY CAPITAL AND INTERESTS	6
	 	Section 3.1	Capital Commitments	6
	 	Section 3.2	Temporary Advances	6
	 	Section 3.3	Defaulting Members	7
	 	Section 3.4	Interest or Withdrawals	7
	 	Section 3.5	Admission of Additional Members	7
	 	Section 3.6	Alternative Investment Vehicle	8
	 	 	 	 
	ARTICLE 4 ALLOCATIONS	8
	 	Section 4.1	Capital Accounts	8
	 	Section 4.2	Allocations	9
	 	Section 4.3	Changes of Interests	9
	 	Section 4.4	Income Taxes and Tax Capital Accounts	9
	 	 	 	 
	ARTICLE 5 DISTRIBUTIONS	9
	 	Section 5.1	General	9
	 	Section 5.2	Withholding	10
	 	Section 5.3	Certain Limitations	10
	 	 	 	 
	ARTICLE 6 MANAGEMENT OF COMPANY	10
	 	Section 6.1	Management Generally	10
	 	Section 6.2	Board of Directors	11
	 	Section 6.3	Meetings of the Board of Directors	11
	 	Section 6.4	Quorum; Acts of the Board	11
	 	Section 6.5	Electronic Communications	12
	 	Section 6.6	Compensation of Directors; Expenses	12
	 	Section 6.7	Removal and Resignation of Directors; Vacancies	12
	 	Section 6.8	Directors as Agents	12
	 	Section 6.9	Duties of Board, FSFC IC Representative and Trinity IC Representative	12
	 	Section 6.10	Reliance by Third Parties	12
	 	Section 6.11	Members’ Outside Transactions; Investment Opportunities	13
	 	Section 6.12	Indemnification	13
	 	Section 6.13	Tax Matters Member	14

 

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	ARTICLE 7 TRANSFERS OF COMPANY INTERESTS; WITHDRAWALS	15
	 	Section 7.1	Transfers by Members	15
	 	Section 7.2	Withdrawal by Members	16
	 	 	 	 
	ARTICLE 8 TERM, DISSOLUTION AND LIQUIDATION OF COMPANY	17
	 	Section 8.1	Term	17
	 	Section 8.2	Dissolution	17
	 	Section 8.3	Wind-down	18
	 	 	 	 
	ARTICLE 9 ACCOUNTING, REPORTING AND VALUATION PROVISIONS	20
	 	Section 9.1	Books and Accounts	20
	 	Section 9.2	Financial Reports; Tax Return	20
	 	Section 9.3	Tax Elections	21
	 	Section 9.4	Confidentiality	21
	 	Section 9.5	Valuation	22
	 	 	 	 
	ARTICLE 10 MISCELLANEOUS PROVISIONS	23
	 	Section 10.1	Power of Attorney	23
	 	Section 10.2	Governing Law; Jurisdiction; Jury Waiver	24
	 	Section 10.3	Certificate of Formation; Other Documents	24
	 	Section 10.4	Force Majeure	24
	 	Section 10.5	Waivers	24
	 	Section 10.6	Notices	25
	 	Section 10.7	Construction	25
	 	Section 10.8	Amendments	25
	 	Section 10.9	Legal Counsel	25
	 	Section 10.10	Execution	25
	 	Section 10.11	Binding Effect	25
	 	Section 10.12	Severability	26
	 	Section 10.13	Computation of Time	26
	 	Section 10.14	Entire Agreement	26

 

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Senior
Loan Fund JV, I LLC

LIMITED LIABILITY COMPANY AGREEMENT

 

This Limited Liability
Company Agreement, dated as of May 2, 2014, of Senior Loan Fund JV I, LLC (the “Company”) is entered into by
and between Fifth Street Finance Corp. and Trinity Universal Insurance Company (each, a “Member” and collectively,
the “Members”).

 

WHEREAS, the Members
desire to form a co-managed limited liability company under the Act (as defined below) for the purposes and pursuant to the terms
set forth herein;

 

NOW THEREFORE, in consideration
of the mutual agreements set forth below, and intending to be legally bound, the Members hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.1           Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

 

“1940 Act”
has the meaning set forth in Section 6.11(b).

 

“Acceptance
Period” has the meaning set forth in Section 7.1(g)(ii).

 

“Act”
means the Limited Liability Company Act of the State of Delaware, as from time to time in effect.

 

“Administrative
Agent” means FSC CT, Inc. or an Affiliate thereof retained by the Company with Prior Board Approval to perform administrative
services for the Company.

 

“Administrative
Services Agreement” means the Administrative and Loan Services Agreement between the Company and the Administrative Agent,
as amended from time to time with Prior Board Approval.

 

“Advisers
Act” has the meaning set forth in Section 6.11(b).

 

“Affiliate”
means, with respect to a Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person.

 

“Agreement”
means this Limited Liability Company Agreement, as it may from time to time be amended.

 

“Alternative
Investment Vehicle” has the meaning set forth in Section 3.6.

 

“Board”
means the Board of Directors of the Company.

 

“Board Approval”
means, as to any matter requiring Board Approval hereunder, the unanimous approval or subsequent ratification by each of the Directors.

 

“Capital Account”
means, as to each Member, the capital account maintained on the books of the Company for such Member in accordance with Section
4.1.

 

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“Capital Commitment”
means, as to each Member, the total amount set forth in such Member’s Subscription Agreement delivered herewith and on the
Member List, which is contributed and agreed to be contributed to the Company by such Member as a Capital Contribution.

 

“Capital Contribution”
means, as to each Member, the aggregate amount of cash actually contributed to the equity capital of the Company by such Member
as set forth in Section 3.1. The Capital Contribution of a Member that is an assignee of all or a portion of an equity interest
in the Company shall include the Capital Contribution of the assignor (or a pro rata portion thereof in the case of an assignment
of less than the Entire Interest of the assignor).

 

“Certificate
of Formation” means the certificate of formation for the Company filed under the Act, as amended from time to time.

 

“Change
of Control” means, with respect to any Person, a transaction which causes the owners
of such Person as of the date hereof and their Affiliates to own less than fifty percent (50%) of such Person immediately after
such transaction. Notwithstanding the foregoing, for purposes of the determination of a Change of Control of Trinity, the relevant
Person shall be deemed to be Kemper Corporation.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Company”
has the meaning set forth in the recitals.

 

“Control”
means the power, directly or indirectly, to direct the management or policies of a Person, whether by ownership of securities,
by contract or otherwise.

 

“Default Date”
has the meaning set forth in Section 3.3(a).

 

“Defaulting
Member” has the meaning set forth in Section 3.3(a).

 

“Director”
means each Person elected, designated or appointed to serve as a member of the Board.

 

“Election
to Purchase” has the meaning set forth in Section 8.3(e).

 

“Entire Interest”
means all of a Member’s interests in the Company, including the Member’s transferable interest and all management and
other rights.

 

“ERISA” the Employee
Retirement Income Security Act of 1974, as from time to time amended.

 

“ERISA Plan”
a Person that is an “employee benefit plan” within the meaning of, and subject to the provisions of, ERISA.

 

“Expenses”
means all costs and expenses, of whatever nature, directly or indirectly borne by the Company, including those borne under the
Administrative Services Agreement.

 

“FSFC”
means Fifth Street Finance Corp., or any Person substituted for Fifth Street Finance Corp. as a Member pursuant to the terms of
this Agreement.

 

“FSFC IC Representative”
means the Person designated by FSFC to act as its representative in approving or disapproving matters requiring Prior Investment
Committee Approval hereunder. FSFC may designate, remove, or designate a successor to, the FSFC IC Representative by written notice
thereof to Trinity.

 

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“GAAP”
means United States generally accepted accounting principles.

 

“GAAP Profit
or GAAP Loss” means, as to any transaction or fiscal period, the net income or loss of the Company under GAAP.

 

“Initial Closing
Date” means May 2, 2014.

 

“Investment”
means an investment of any type held, directly or indirectly, other than interests in Subsidiaries.

 

“Investment
Committee” means a committee consisting of one FSFC IC Representative and one Trinity IC Representative.

 

“Investor
Laws” has the meaning set forth in Section 7.2(b).

 

“LIBOR Rate”
means the one-month London InterBank Offered Rate, which for purposes hereof shall be deemed to equal for each day of a calendar
quarter such rate as of the first day of such quarter.

 

“Loss”
has the meaning set forth in Section 6.12(a).

 

“Member”
and “Members” have the meaning set forth in the recitals and also includes any Person that becomes a Member
of the Company after the date hereof under the terms of this Agreement.

 

“Member List”
has the meaning set forth in Section 2.7.

 

“Notice of
Intent” has the meaning set forth in Section 7.1(g)(i).

 

“Organization
Costs” means all out-of-pocket costs and expenses reasonably incurred directly by the Company or for the Company by a
Member or its Affiliates in connection with the formation and capitalization of the Company, the initial offering of Company interests
to FSFC and Trinity, and the preparation by the Company to commence its business operations, including, without limitation, reasonable
and documented (i) fees and disbursements of legal counsel to the Company, the Administrative Agent or its Affiliates, (ii) accountant
fees and other fees for professional services and (iii) travel costs and other out-of-pocket expenses.

 

“Person”
means an individual, corporation, partnership, association, joint venture, company, limited liability company, trust, governmental
authority or other entity.

 

“Portfolio
Company” means, with respect to any Investment, any Person that is the issuer of any equity securities, equity-related
securities or obligations, debt instruments or debt-related securities or obligations (including senior debt instruments, including
investments in senior loans, senior debt securities and any notes or other evidences of indebtedness, preferred equity, warrants,
options, subordinated debt, mezzanine securities or similar securities or instruments) that are the subject of such Investment.
Portfolio Companies do not include Subsidiaries.

 

“Prior Board
Approval” means, as to any matter requiring Prior Board Approval hereunder, the unanimous prior approval of each of the
Directors.

 

“Prior Investment
Committee Approval” means, as to any matter requiring Prior Investment Committee Approval hereunder, the unanimous prior
approval of the FSFC IC Representative and the Trinity IC Representative.

 

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“Proceeding”
has the meaning set forth in Section 6.12(a).

 

“Profit or
Loss” means, as to any transaction or fiscal period, the GAAP Profit or GAAP Loss with respect to such transaction or
period, with such adjustments thereto as may be required by this Agreement; provided that in the event that the Value of any Company
asset is adjusted under Section 9.5, the amount of such adjustment shall in all events be taken into account in the same manner
as gain or loss from the disposition of such asset for purposes of computing Profit or Loss, and the gain or loss from any disposition
of such asset shall be calculated by reference to such adjusted Value; and provided further, that GAAP Profit or GAAP Loss may
be adjusted with Board Approval to amortize Organization Costs over four years.

 

“Proportionate
Share” means, as to any Member, the percentage that its Capital Contribution represents of all Capital Contributions.

 

“Revolving
Credit Investment” means any revolving credit facility or similar credit facility provided by the Company, directly or
indirectly, to a borrower or acquired from another Person; provided that in the case of any such credit facility provided or acquired
indirectly through another entity which is not wholly owned by the Company, the Revolving Credit Investment shall be the Company’s
proportionate share thereof.

 

“Sale Period”
has the meaning set forth in Section 7.1(g)(iii).

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Subscription
Agreement” means the subscription agreement entered into as of the date hereof by each Member in respect of its Capital
Commitment.

 

“Subsidiary” as
to any Person, means any corporation, partnership, limited liability company, joint venture, trust or estate of or in which more
than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors
of such corporation (irrespective of whether at the time capital stock of any other class of such corporation may have voting power
upon the happening of a contingency), (b) the interest in the capital or profits of such partnership, limited liability company,
or joint venture or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled
through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary”
or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company.

 

“Tax Matters
Member” has the meaning set forth in Section 6.13.

 

“Temporary
Advance” has the meaning set forth in Section 3.2.

 

“Temporary
Advance Rate” means, with respect to any period, the rate equal to (i) the sum of the average LIBOR Rate during such
period (expressed as an annual rate) plus three percent (3.0%) per annum, multiplied by (ii) a fraction, the numerator of which
is the number of days in such period and the denominator of which is 365; provided that the Temporary Advance Rate for any Temporary
Advance outstanding for less than four days shall equal zero.

 

“Transfer”
or “transfer” means, with respect to any Member’s interest in the Company, the direct or indirect sale,
assignment, transfer, withdrawal, mortgage, pledge, hypothecation, exchange or other disposition of any part or all of such interest,
whether or not for value and whether such disposition is voluntary, involuntary, by operation of law or otherwise, and a “transferee”
or “transferor” means a Person that receives or makes a transfer.

 

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“Treasury
Regulations” means all final and temporary federal income tax regulations, as amended from time to time, issued under
the Code by the United States Treasury Department.

 

“Trinity”
means Trinity Universal Insurance Company, or any Person substituted for Trinity as a Member pursuant to the terms of this Agreement.

 

“Trinity IC
Representative” means the Person designated by Trinity to act as its representative in approving or disapproving matters
requiring Prior Investment Committee Approval hereunder. Trinity may designate, remove, or designate a successor to, the Trinity
IC Representative by written notice thereof to FSFC.

 

“Value”
means, as of the date of computation with respect to some or all of the assets of the Company or any assets acquired by the Company,
the value of such assets determined in accordance with Section 9.5.

 

ARTICLE 2

GENERAL PROVISIONS

 

Section 2.1           Formation
of the Limited Liability Company. The Company was formed under and pursuant to the Act upon the filing of the Certificate of
Formation in the office of the Secretary of State of the State of Delaware, and the Members hereby agree to continue the Company
under and pursuant to the Act. The Members agree that the rights, duties and liabilities of the Members shall be as provided in
the Act, except as otherwise provided herein. Each Person being admitted as a Member as of the date hereof shall be admitted as
a Member at the time such Person has executed this Agreement or a counterpart of this Agreement.

 

Section 2.2           Company
Name. The name of the Company shall be “Senior Loan Fund JV I, LLC,” or such other name as approved by Board Approval.

 

Section 2.3           Place
of Business; Agent for Service of Process.

 

(a)     The
registered office of the Company in the State of Delaware is located at 1209 Orange Street, Wilmington, Delaware 19801, or such
other place as the Members may designate. The name of its registered agent for service at such address is The Corporation Trust
Company or such other Person as the Members may designate.

 

(b)     The
initial principal business office of the Company shall be at 10 Bank Street, 12th Floor, White Plains, New York 10606.

 

Section 2.4           Purpose
and Powers of the Company.

 

(a)     The
purpose and business of the Company shall be (i) to make Investments, either directly or indirectly through Subsidiaries or other
Persons, primarily in middle-market and other corporate debt securities, and (ii) to engage in any other lawful acts or activities
as the Board deems reasonably necessary or advisable for which limited liability companies may be organized under the Act.

 

(b)     Subject
to the provisions of this Agreement, the Company shall have the power and authority to take any and all actions necessary, appropriate,
proper, advisable, convenient or incidental to, or for the furtherance of, the purposes set forth in Section 2.4(a).

 

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(c)     The
Company may enter into and perform Subscription Agreements among the Company and each Member, without any further act, vote or
approval of any Member notwithstanding any other provision of this Agreement (other than Section 3.1(a) hereof), the Act or any
other applicable law, rule or regulation.

 

Section 2.5           Fiscal
Year. The fiscal year of the Company shall be the period ending on September 30 of each year.

 

Section 2.6           Liability
of Members. Except as expressly provided in this Agreement, a Member shall have such liability for the repayment, satisfaction
and discharge of the debts, liabilities and obligations of the Company only as is provided by the Act. A Member that receives a
distribution made in violation of the Act shall be liable to the Company for the amount of such distribution to the extent, and
only to the extent, required by the Act. The Members, in their capacities as such, shall not otherwise be liable for the repayment,
satisfaction or discharge of the Company’s debts, liabilities and obligations, except that each Member shall be required
to make Capital Contributions in accordance with the terms of this Agreement and shall be required to repay any distributions which
are not made in accordance with this Agreement.

 

Section 2.7           Member
List. The Administrative Agent shall cause to be maintained in the principal office of the Company a list (the “Member
List”) setting forth, with respect to each Member, such Member’s name, address, Capital Commitment, Capital Contributions
and such other information as the Administrative Agent may deem necessary or desirable or as required by the Act. The Administrative
Agent shall from time to time update the Member List as necessary to reflect accurately the information therein. Any reference
in this Agreement to the Member List shall be deemed to be a reference to the Member List as in effect from time to time. No action
of the Members shall be required to supplement or amend the Member List. Revisions to the Member List made by the Administrative
Agent as a result of changes to the information set forth therein made in accordance with this Agreement shall not constitute an
amendment of this Agreement.

 

ARTICLE 3

COMPANY CAPITAL AND INTERESTS

 

Section 3.1           Capital
Commitments.

 

(a)     Each
Member’s Capital Commitment shall be set forth on the Member List and in such Member’s Subscription Agreement and shall
be payable in cash in U.S. dollars. Each such payment shall be made from time to time within three (3) business days after notice
from the Administrative Agent specifying the amount then to be paid, or such later date as may be specified in such notice; provided
that any such amount to be used for a purpose requiring Prior Board Approval, Prior Investment Committee Approval or Board Approval
shall be subject to such Prior Board Approval, Prior Investment Committee Approval or Board Approval, as applicable. Capital Contributions
shall be made by all Members pro rata based on their respective Capital Commitments.

 

(b)     Capital
Contributions which are not used within ninety (90) days shall be returned to the Members in the same proportion in which made,
in which case such amount shall be added back to the unfunded Capital Commitments of the Members and may be recalled by the Company
as set forth in this Article 3.

 

Section 3.2           Temporary
Advances. A Member, in its discretion, may make loans (“Temporary Advances”) to temporarily fund the Company
until Capital Contributions are made by the Members as set forth in Section 3.1. Such Temporary Advances plus interest at the Temporary
Advance Rate shall be repaid from the other Member’s Capital Contributions under Section 3.1, with any unreturned Temporary
Advances plus interest at the Temporary Advance Rate paid as set forth in Section 5.1.

 

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Section 3.3           Defaulting
Members.

 

(a)     Upon
the failure of any Member (a “Defaulting Member”) to pay in full any portion of such Member’s Capital
Commitment within ten (10) days after written notice from the other Member (the “Default Date”) that such payment
is overdue, the other Member, in its sole discretion, shall have the right to pursue one or more of the following remedies on behalf
of the Company if such failure has not been cured in full within such ten-day period:

 

(i)          collect
such unpaid portion (and all attorneys’ fees and other costs incident thereto) by exercising and/or pursuing any legal remedy
the Company may have; and

 

(ii)         upon
thirty (30) days’ written notice (which period may commence during the ten-day notice period provided above), and provided
that the overdue payment has not been made, dissolve and wind down the Company in accordance with Article 8.

 

Except as set forth
below, the non-defaulting Member’s election to pursue any one of such remedies shall not be deemed to preclude such Member
from pursuing any other such remedy, or any other available remedy, simultaneously or subsequently.

 

(b)     Notwithstanding
any provision of this Agreement to the contrary,

 

(i)          a
Defaulting Member shall remain fully liable to the creditors of the Company to the extent provided by law as if such default had
not occurred;

 

(ii)         a
Defaulting Member shall not be entitled to distributions made after the Default Date until the default is cured and any such distributions
to which such Defaulting Member would otherwise have been entitled if such default had not occurred shall be debited against the
Capital Account of the Defaulting Member so as to reduce the remaining amount of the default; and

 

(iii)        the
Company shall not make new Investments after the Default Date until the default is cured.

 

Section 3.4           Interest
or Withdrawals. No Member shall be entitled to receive any interest on any Capital Contribution to the Company. Except as otherwise
specifically provided herein, no Member shall be entitled to withdraw any part of its Capital Contributions or Capital Account
balance.

 

Section 3.5           Admission
of Additional Members.

 

(a)     The
Members may, with Prior Board Approval, (i) admit additional Members upon terms approved by Prior Board Approval, (ii) permit existing
Members to subscribe for additional interests in the Company, and (iii) admit a substitute Member in accordance with Section 7.1.

 

(b)     Each
additional Member shall execute and deliver a written instrument satisfactory to the existing Members whereby such Member becomes
a party to this Agreement, as well as a subscription agreement and any other documents reasonably required by the existing Members.
Each such additional Member shall thereafter be entitled to all the rights and subject to all the obligations of Members as set
forth herein. Upon the admission of or the increase in the interest of any Member as herein provided, the Administrative Agent
is hereby authorized to update the Member List, as required, to reflect such admission or increase.

 

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Section 3.6         Alternative
Investment Vehicle. Based on legal, tax, regulatory and other structuring considerations, in connection with particular Investments,
the Company may, with Prior Board Approval, create one or more parallel partnerships, corporations or other entities (each, an
“Alternative Investment Vehicle”) for purposes of making, holding and disposing of one or more Investments.
One or more of the Members shall be required to provide capital directly to each such Alternative Investment Vehicle to the same
extent, for the same purposes and on the same terms and conditions as the Members are required to provide capital to the Company
and such capital shall reduce the unfunded Capital Commitment to the same extent as if made to the Company. The terms of any Alternative
Investment Vehicle, including the terms with respect to management and control of the Alternative Investment Vehicle, shall be
substantially similar in all material respects to those of the Company; provided, that, such terms may vary based on the structure
of the relevant transaction, legal, tax and regulatory considerations. Any such Alternative Investment Vehicle will be structured
in a manner whereby the Members participating in such Alternative Investment Vehicle shall bear the incremental costs of the alternative
arrangement (including taxes). The governing documents of any Alternative Investment Vehicle shall provide for the limited liability
of the Members to the same extent in all material respects as is provided to the Members under this Agreement. If a Member fails
to provide all or a portion of its required capital to an Alternative Investment Vehicle on the applicable drawdown date (unless
such Member is excused from providing such capital by the governing documents of such Alternative Investment Vehicle), the other
Member shall be entitled to pursue any and all remedies set forth in Section 3.3 in addition to any applicable provisions of the
governing documents of the Alternative Investment Vehicle.

 

ARTICLE 4

ALLOCATIONS

 

Section 4.1           Capital
Accounts.

 

(a)     An
individual capital account (a “Capital Account”) shall be maintained for each Member consisting of such Member’s
Capital Contribution, increased or decreased by Profit or Loss allocated to such Member, decreased by the cash or Value of property
distributed to such Member (giving net effect to any liabilities the property is subject to, or which the Member assumes), and
otherwise maintained consistent with this Agreement. In the event that the Administrative Agent determines that it is prudent to
modify the manner in which Capital Accounts, including all debits and credits thereto, are computed in order to be maintained consistent
with this Agreement, the Administrative Agent is authorized to make such modifications to the extent that they do not result in
a material adverse effect to any Member. Capital Accounts shall be maintained in a manner consistent with applicable Treasury Regulations.

 

(b)     Profit
or Loss shall be allocated among Members as of the end of each fiscal year of the Company; provided that Profit or Loss shall also
be allocated at the end of (i) each period terminating on the date of any withdrawal by any Member, (ii) each period terminating
immediately before the date of any admission or increase in Capital Commitment of any Member, (iii) the liquidation of the Company,
or (iv) any period which is determined by Board Approval to be appropriate. Organization Costs shall be amortized over four (4)
years or such other period deemed appropriate by Board Approval.

 

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Section 4.2           Allocations.
Profit or Loss shall be allocated among the Members as provided by this Section 4.2. Loss (after taking into account any interest
expense incurred on Temporary Advances) shall be allocated among the Members pro rata in accordance with their Capital Accounts.
Profit shall be allocated among the Members (i) first, pro rata until the cumulative amount of profit allocated to a Member (or
any transferee of any Member) equals the cumulative amount of loss previously allocated to such Member (or any transferee of such
member) and (ii) thereafter pro rata in accordance with the Members’ Capital Accounts.

 

Section 4.3           Changes
of Interests. For purposes of allocating Profit or Loss for any fiscal year or other fiscal period between any permitted transferor
and transferee of a Company interest, or between any Members whose relative Company interests have changed during such period,
or to any withdrawing Member that is no longer a Member in the Company, the Company shall allocate according to any method allowed
by the Code and selected by the Members. Distributions with respect to an interest in the Company shall be payable to the owner
of such interest on the date of distribution. For purposes of determining the Profit or Loss allocable to or the distributions
payable to a permitted transferee of an interest in the Company or to a Member whose interest has otherwise increased or decreased,
Profit or Loss allocations and distributions made to predecessor owners with respect to such transferred interest or increase of
interest shall be deemed allocated and made to the permitted transferee or other holder.

 

Section 4.4           Income
Taxes and Tax Capital Accounts.

 

(a)     The
Company shall be treated as a partnership for U.S. federal income tax purposes.

 

(b)     Each
item of income, gain, loss, deduction or credit shall be allocated in the same manner as such item is allocated pursuant to Section
4.2.

 

(c)     In
the event of any variation between the adjusted tax basis and value of any Company property reflected in the Members’ capital
accounts maintained for federal income tax purposes, such variation shall be taken into account in allocating taxable income or
loss for income tax purposes in accordance with, and to the extent consistent with, the principles under Section 704(c) of the
Code and applicable Treasury Regulations. A decision to use a method to allocate such variation pursuant to Treasury Regulation
Section 1.704-3 shall be considered a tax election requiring Prior Board Approval.

 

ARTICLE 5

DISTRIBUTIONS

 

Section 5.1           General.

 

(a)     To
the extent of available cash and cash equivalents, the Company shall make distributions quarterly in such amounts as determined
by Prior Board Approval, shared among the Members as set forth in Section 5.1(d) below; provided that the amount of any such distribution
may be reduced as provided by Section 5.2 and Section 5.3.

 

(b)     Unless
determined otherwise by Prior Board Approval, distributions to the Members on an annual basis shall equal the sum of no less than:
(i) 98% of the Company’s ordinary income for such year; plus (ii) 98.2% of the Company’s capital gain net income (both
long-term and short-term) for the 1-year period ending on October
31 of the calendar year.

 

(c)     The
Company, with Prior Board Approval, may determine to make one or more distributions, from time to time, in addition to those required
by Sections 5.1(a) and (b) hereof from available cash or cash equivalents received from one or more Investments (whether from principal
repayment or otherwise and after reduction as provided by Section 5.2 and Section 5.3).

 

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(d)     Any
distribution under this Section 5.1 shall be shared among the Members as follows:

 

(i)          First,
to pay any outstanding Temporary Advances and any interest accrued thereon; and

 

(ii)         Second,
to the Members as distributions in respect of their interests in the Company in proportion to their respective Capital Accounts.

 

Section 5.2           Withholding.
The Company may withhold from any distribution to any Member any amount which the Company has paid or is obligated to pay in respect
of any withholding or other tax, including without limitation, any interest, penalties or additions with respect thereto, imposed
on any interest or income of or distributions to such Member, and such withheld amount shall be considered an interest payment
or a distribution, as the case may be, to such Member for purposes hereof. If no payment is then being made to such Member in an
amount sufficient to pay the Company’s withholding obligation, any amount which the Company is obligated to pay shall be
deemed an interest-free advance from the Company to such Member, payable by such Member by withholding from subsequent distributions
or within ten (10) days after receiving written request for payment from the Company.

 

Section 5.3           Certain
Limitations. Notwithstanding the foregoing provisions:

 

(a)     In
no event shall the Company make a distribution to the extent that it would (i) render the Company insolvent, or (ii) violate Section
18-607(a) of the Act or other applicable law.

 

(b)     Without
Prior Board Approval, the Company shall not make in-kind distributions. Distributions of securities and of other non-cash assets
of the Company upon such Prior Board Approval shall only be made pro rata to all Members (in proportion to their respective Capital
Accounts) with respect to each security or other such asset distributed. Securities listed on a national securities exchange that
are not restricted as to transferability and unlisted securities for which an active trading market exists and that are not restricted
as to transferability shall be valued in the manner contemplated by Section 9.5 as of the close of business on the day preceding
the distribution, and all other securities and non-cash assets shall be valued as determined in the last valuation made pursuant
to Section 9.5.

 

ARTICLE 6

MANAGEMENT OF COMPANY

 

Section 6.1           Management
Generally.

 

(a)     The
management of the Company and its business and affairs shall be vested in the Board. The Board shall act as the “manager”
of the Company for the purposes of the Act and the Members shall not manage or control the business and affairs of the Company
except for situations in which the approval of all or certain Members is required by this Agreement or by non-waivable provisions
of applicable law. Matters requiring Prior Board Approval or Board Approval are set forth in further detail in Schedule A hereto,
which is incorporated by reference herein.

 

(b)     Notwithstanding
the foregoing, Prior Investment Committee Approval, rather than Prior Board Approval or Board Approval, shall be required for the
matters detailed in Schedule B hereto.

 

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(c)     The
Company is entering into the Administrative Services Agreement with the Administrative Agent, pursuant to which certain loan servicing
and administrative functions are delegated to the Administrative Agent. The Members agree that, notwithstanding anything to the
contrary herein, the Administrative Services Agreement shall not require Prior Board Approval and is hereby approved by the Members;
provided, that any amendments to the Administrative Services Agreement after the date hereof shall require Prior Board Approval.
The function of the Administrative Agent shall be non-discretionary and administrative only.

 

Section 6.2           Board
of Directors.

 

(a)     The
Members may determine at any time by mutual agreement the number of Directors to constitute the Board and the authorized number
of Directors may be increased or decreased by the Members at any time by mutual agreement, upon notice to all Directors; provided
that at all times each Member has an equal number of Directors on the Board. The initial number of Directors shall be four (4),
and each Member shall elect, designate or appoint two (2) Directors. Each Director elected, designated or appointed by a Member
shall hold office until a successor is elected and qualified by such Member or until such Director’s earlier death, resignation,
expulsion or removal. A Director need not be a Member.

 

(b)     Subject
to matters requiring Board Approval and Prior Board Approval, the Board shall have the power to do any and all acts necessary,
convenient or incidental to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise.
The Board has the authority to bind the Company.

 

Section 6.3           Meetings
of the Board of Directors. The Board may hold meetings, both regular and special, within or outside the State of Delaware.
Meetings of the Board may be called by any Director on not less than 24 hours’ notice to each Director by telephone, facsimile,
mail, telegram, email or any other similar means of communication, with such notice stating the place, date and hour of the meeting
(and the means by which each Director may participate by telephone conference or similar communications equipment in accordance
with Section 6.5 hereof) and the purpose or purposes for which such meeting is called. Special meetings shall be called by a Director
in like manner and with like notice upon the written request of any one or more of the Directors. Attendance of a Director at any
meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose
of objecting to the transaction of any business because the meeting is not lawfully called or convened.

 

Section 6.4           Quorum;
Acts of the Board.

 

(a)     At
all meetings of the Board: (i) the presence of two (2) Directors shall constitute a quorum for the transaction of business, provided
that at least one (1) Director is present that was elected, designated or appointed by each Member; and (ii) the presence of four
(4) Directors shall constitute a quorum, provided that two (2) Directors are present that were elected, designated or appointed
by each Member. If a quorum shall not be present at any meeting of the Board, the Directors present at such meeting may adjourn
the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present.

 

(b)     Every
act or decision done or made by the Board shall require the unanimous approval of all Directors present at a meeting duly held
at which a quorum is present. The Company shall not have the authority without Prior Board Approval to approve or undertake any
item set forth in Section 1 of Schedule A hereto (as such schedule may be amended from time to time with Prior Board Approval).
Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting, without notice and without
a vote if all Directors entitled to vote with respect to the subject matter thereof consent thereto in writing (including by e-mail),
and the writing or writings are filed with the minutes of proceedings of the Board.

 

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Section 6.5           Electronic
Communications. Members of the Board may participate in meetings of the Board, or any committee, by means of telephone conference
or similar communications equipment that allows all persons participating in the meeting to hear each other, and such participation
in a meeting shall constitute presence in person at the meeting. If all the participants are participating by telephone conference
or similar communications equipment, the meeting shall be deemed to be held at the principal place of business of the Company.

 

Section 6.6           Compensation
of Directors; Expenses. The Directors will not receive any compensation. However, the Directors shall be reimbursed for their
reasonable out-of-pocket expenses, if any, of attendance at meetings of the Board. No such payment shall preclude any Director
from serving the Company in any other capacity and receiving compensation therefor.

 

Section 6.7           Removal
and Resignation of Directors; Vacancies. Unless otherwise restricted by law, any Director may be removed or expelled, with
or without cause, at any time solely by the Member that elected, designated or appointed such Director. Any Director may resign
at any time by giving written notice to the Board. Such resignation shall take effect at the time specified therein and, unless
tendered to take effect upon acceptance thereof, the acceptance of such resignation shall not be necessary to make it effective.
Any vacancy caused by removal or expulsion of a Director or the resignation of a Director in accordance with this Section 6.7 shall
be filled solely by the action of the Member who previously elected, designated or appointed such Director in order to fulfill
the Board composition requirements of Section 6.2(a).

 

Section 6.8           Directors
as Agents. To the extent of their powers set forth in this Agreement, the Directors are agents of the Company for the purpose
of the Company’s business, and the actions of the Directors taken in accordance with such powers set forth in this Agreement
shall bind the Company. Notwithstanding the last sentence of Section 18-402 of the Act, except as provided in this Agreement or
in a resolution of the Board expressly authorizing such action which resolution is duly adopted by the Board by the affirmative
vote required for such matter pursuant to the terms of this Agreement, a Director may not bind the Company.

 

Section 6.9           Duties
of Board, FSFC IC Representative and Trinity IC Representative. To the extent that, at law or in equity, a Director of the
Company or the FSFC IC Representative or Trinity IC Representative has duties (including fiduciary duties) and liabilities relating
thereto to the Company or to any Member, such individual acting in good faith pursuant to the terms of this Agreement shall not
be liable to the Company or to any Member for its good faith reliance on the provisions of this Agreement. The provisions of this
Agreement, to the extent that they restrict the duties and liabilities of such individual otherwise existing at law or in equity,
are agreed by the parties hereto to replace such other duties and liabilities of such individual.

 

Section 6.10         Reliance
by Third Parties. Notwithstanding any other provision of this Agreement, any contract, instrument or act on behalf of the Company
by a Member, a Director, an officer or any other Person delegated by Board Approval, Prior Board Approval or Prior Investment Committee
Approval, as applicable, shall be conclusive evidence in favor of any third party dealing with the Company that such Person has
the authority, power and right to execute and deliver such contract or instrument and to take such act on behalf of the Company.
This Section shall not be deemed to limit the liabilities and obligations of such Person to seek Board Approval, Prior Board Approval
or Prior Investment Committee Approval as set forth in this Agreement.

 

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Section 6.11         Members’
Outside Transactions; Investment Opportunities.

 

(a)     Each
Member shall devote such time and effort as is reasonably necessary to diligently administer the activities and affairs of the
Company, but shall not be obligated to spend full time or any specific portion of their time to the activities and affairs of the
Company.

 

(b)     The
Administrative Agent and its Affiliates manage and administer other investment funds and other accounts with similar or dissimilar
mandates and may manage or administer additional funds and other accounts in the future, and are subject to the provisions of the
Investment Company Act of 1940, as amended (the “1940 Act”) and the Investment Advisers Act of 1940, as amended
(the “Advisers Act”), and the rules, regulations and interpretations thereof, with respect to the allocation
of investment opportunities among such other investment funds and other accounts and the Company. Except for any obligations under
the Advisers Act, neither the Administrative Agent nor its Affiliates shall be obligated to offer any investment opportunity, or
portion thereof, to the Company.

 

(c)     Subject
to the foregoing provisions of this Sections 6.11 and other provisions of this Agreement, each of the Members, the Administrative
Agent and each of their respective Affiliates and members may engage in, invest in, participate in or otherwise enter into other
business ventures of any kind, nature and description, individually and with others, including, without limitation, the formation
and management of other investment funds with or without the same or similar purposes as the Company, and the ownership of and
investment in securities, and neither the Company nor any other Member shall have any right in or to any such activities or the
income or profits derived therefrom.

 

Section 6.12         Indemnification.

 

(a)     Subject
to the limitations and conditions as provided in this Section 6.12, each Person who was or is made a party or is threatened to
be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative, investigative or arbitrative or in the nature of an alternative dispute resolution in lieu of any of the foregoing
(hereinafter a “Proceeding”), or any appeal in such a Proceeding or any inquiry or investigation that could
lead to such a Proceeding, by reason of the fact that such Person, or a Person of which such Person is the legal representative,
is or was a Member, a Director, the FSFC IC Representative or the Trinity IC Representative, or a representative, officer, director
or employee thereof, shall be indemnified by the Company to the fullest extent permitted by applicable law, as the same exists
or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company
to provide broader indemnification rights than said law permitted the Company to provide prior to such amendment) against all liabilities
and expenses (including judgments, penalties (including excise and similar taxes and punitive damages), losses, fines, settlements
and reasonable expenses (including, without limitation, reasonable attorneys’ and experts’ fees)) actually incurred
by such Person in connection with such Proceeding, appeal, inquiry or investigation (each a “Loss”), unless
such Loss shall have been primarily the result of bad faith, gross negligence, fraud or intentional misconduct by the Person seeking
indemnification hereunder, in which case such indemnification shall not cover such Loss to the extent resulting from such gross
negligence, fraud or intentional misconduct. Indemnification under this Section 6.12 shall continue as to a Person
who has ceased to serve in the capacity which initially entitled such Person to indemnity hereunder. The rights granted pursuant
to this Section 6.12 shall be deemed contract rights, and no amendment, modification or repeal of this Section 6.12 shall
have the effect of limiting or denying any such rights with respect to actions taken or Proceedings, appeals, inquiries or investigations
arising prior to any amendment, modification or repeal. To the fullest extent permitted by law, no Person entitled to indemnification
under this Section 6.12 shall be liable to the Company or any Member for any act or omission performed or omitted by or on behalf
of the Company; provided that such act or omission has not been fully adjudicated to constitute bad faith, gross negligence, fraud
or intentional misconduct. In addition, any Person entitled to indemnification under this Section 6.12 may consult with legal counsel
selected with reasonable care and shall incur no liability to the Company or any Member to the extent that such Person acted or
refrained from acting in good faith in reliance upon the opinion or advice of such counsel.

 

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(b)     The
right to indemnification conferred in Section 6.12(a) shall include the right to be paid or reimbursed by the Company
for the reasonable expenses incurred by a Person entitled to be indemnified under Section 6.12(a) who was, is or is threatened
to be made a named defendant or respondent in a Proceeding in advance of the final disposition of the Proceeding and without any
determination as to the Person’s ultimate entitlement to indemnification; provided, however, that the payment of such expenses
incurred by any such Person in advance of the final disposition of a Proceeding shall be made only upon delivery to the Company
of a written undertaking by such Person to repay all amounts so advanced if it shall be finally adjudicated that such indemnified
Person is not entitled to be indemnified under this Section 6.12 or otherwise.

 

(c)     The
Company, with Prior Board Approval, may indemnify and advance expenses to an employee or agent of the Company to the same
extent and subject to the same conditions under which it may indemnify and advance expenses to a Member under Sections 6.12(a)
and (b).

 

(d)     The
right to indemnification and the advancement and payment of expenses conferred in this Section 6.12 shall not be exclusive
of any other right that a Member or other Person indemnified pursuant to this Section 6.12 may have or hereafter acquire
under any law (common or statutory) or provision of this Agreement.

 

(e)     The
indemnification rights provided by this Section 6.12 shall inure to the benefit of the heirs, executors, administrators,
successors, and assigns of each Person indemnified pursuant to this Section 6.12.

 

Section 6.13         Tax
Matters Member. FSFC shall be the “tax matters partner” of the Company within the meaning of Section 6231(a)(7)
of the Code (in such capacity, the “Tax Matters Member”). The provisions of Section 6.12 shall apply to all
actions taken on behalf of the Members by the Tax Matters Member in its capacity as such. The Tax Matters Member shall have the
right and obligation to take all actions authorized and required, respectively, by the Code for the tax matters partner of the
Company. The Tax Matters Member shall have the right to retain professional assistance in respect of any audit of the Company and
all reasonable, documented out-of-pocket expenses and fees incurred by the Tax Matters Member on behalf of the Company as Tax Matters
Member shall be reimbursed by the Company. In the event the Tax Matters Member receives notice of a final Company adjustment under
Section 6223(a) of the Code, it shall either (i) file a court petition for judicial review of such final adjustment within the
period provided under Section 6226(a) of the Code, a copy of which petition shall be mailed to all Members on the date such petition
is filed, or (ii) mail a written notice to all Members within such period that describes its reasons for determining not to file
such a petition. Each Member shall be a “notice partner” within the meaning of Section 6231(a)(8) of the Code. For
the avoidance of doubt, the Tax Matter Member shall not take any action requiring Prior Board Approval or Prior Investment Committee
Approval prior to such Prior Board Approval or Prior Investment Committee Approval, as applicable, being obtained.

 

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ARTICLE 7

TRANSFERS OF COMPANY INTERESTS; WITHDRAWALS

 

Section 7.1           Transfers
by Members.

 

(a)     Subject
to the requirements of this Article 7, the Entire Interest of a Member may be Transferred with Prior Board Approval. Notwithstanding
the foregoing, without Prior Board Approval, (i) any Member may Transfer its Entire Interest to an Affiliate of such Member, if
the transferor remains liable for its Capital Commitment (such Transfer, a “Permitted Affiliate Transfer”) and
(ii) any Member may make a transfer in accordance with Section 7.1(g) or Section 8.3(e), in each case if such Transfer is otherwise
in accordance with the requirements of this Article 7.

 

(b)     No
Transfer by a Member shall be binding upon the Company until the Company receives an executed copy of such documentation as reasonably
requested by the other Member to show such Transfer is in accordance with this Article 7.

 

(c)     Any
Person which acquires an interest in the Company by Transfer in accordance with the provisions of this Agreement shall be admitted
as a substitute Member, provided the requirements of this Agreement are satisfied. The admission of a transferee as a substitute
Member shall be conditioned upon the transferee’s written assumption, in form and substance reasonably satisfactory to the
other Member, of all obligations of the transferor in respect of the Transferred interest and execution of an instrument reasonably
satisfactory to the other Member whereby such transferee becomes a party to this Agreement.

 

(d)     In
the event any Member shall be adjudicated as bankrupt, or in the event of the winding up or liquidation of a Member, the legal
representative of such Member shall, upon written notice to the other Member of the happening, become a transferee of such Member’s
interest, subject to all of the terms of this Agreement as then in effect.

 

(e)     Any
transferee of the interest of a Member, irrespective of whether such transferee has accepted and adopted in writing the terms and
provisions of this Agreement, shall be deemed by the acceptance of such Transfer to have agreed to be subject to the terms and
provisions of this Agreement in the same manner as its transferor.

 

(f)     As
additional conditions to the validity of any Transfer of a Member’s interest, such assignment shall not:

 

(i)          violate
the registration provisions of the Securities Act of 1933, as amended, or the securities laws of any applicable jurisdiction;

 

(ii)         cause
the Company to cease to be entitled to the exemption from the definition of an “investment company” pursuant to Section
3(c)(7) of the Investment Company Act of 1940, as amended, and the rules and regulations of the Securities and Exchange Commission
thereunder;

 

(iii)        result
in the termination of the Company under the Code or in the Company being classified as a “publicly traded partnership”
under the Code;

 

(iv)        unless
the other Member waives in writing the application of this clause (iv) with respect to such assignment (which the other Member
may refuse to do in its absolute discretion), be to a Person which is an ERISA Plan; or

 

(v)         cause
the Company or the other Member to be in violation of, or effect an assignment to a Person that is in violation of, applicable
Investor Laws.

 

The non-Transferring
Member may require reasonable evidence as to the foregoing, including, without limitation, an opinion of counsel reasonably acceptable
to the non-Transferring Member. Any purported Transfer as to which the conditions set forth in clauses (i) through (v) are not
satisfied shall be void ab initio. A Transferring Member shall be responsible for all costs and expenses incurred by the Company,
including reasonable legal fees and expenses, in connection with any assignment or proposed assignment.

 

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(g)     Except
for Permitted Affiliate Transfers, each Member hereby unconditionally and irrevocably grants to the other Member or its designee
a right of first offer to purchase or designate a third party to purchase all, but not less than all, of any interest in the Company
that such other Member may propose to Transfer to another Person at the valuation most recently approved in accordance with Section
9.5.

 

(i)          The
Member proposing to make a Transfer that would be subject to this Section 7.1(g) must deliver written notice of its intention to
Transfer such interest (the “Notice of Intent”) to the other Member not later than thirty (30) days prior to
the proposed closing date of such Transfer. Such Notice of Intent shall contain the material terms and conditions of the proposed
Transfer and shall identify the proposed transferee of such interest, if known.

 

(ii)         The
Member receiving the Notice of Intent shall have the right, for a period of fifteen (15) business days from the date of receipt
of the Notice of Intent (the “Acceptance Period”), to accept the interest or to designate a third-party purchaser
to accept such interest at the valuation most recently approved in accordance with Section 9.5 and on the terms stated in the Notice
of Intent. Such acceptance shall be made by delivering a written notice to the selling Member and the Company within the Acceptance
Period stating that it elects to exercise its right of first offer and, if applicable, providing the identity of any Person that
the non-transferring Member designates as the purchaser.

 

(iii)        Following
expiration of the Acceptance Period, the selling Member shall be free to sell its interest in the Company to a third party in a
Transfer (which third party shall be the party identified in the Notice of Intent, if known by the selling Member) that otherwise
meets the requirements of this Section 7.1 on terms and conditions it deems acceptable (but at a price not less than the price
and on terms not more favorable to the purchaser thereof than the price and terms stated in the Notice of Intent); provided
that such sale takes place within sixty (60) days after the expiration of the Acceptance Period (the “Sale Period”).
To the extent the selling Member Transfers its interest in the Company during the Sale Period, the Selling Holder shall promptly
notify the Company, and the Company shall promptly notify the other Member, as to the terms of such Transfer and the name of the
owner(s) to whom the interest was Transferred. If no such sale occurs during the Sale Period, any attempted Transfer of such interest
shall again be subject to the right of first offer set forth in this Section 7.1(g) and the procedures of this Section 7.1(g) shall
be repeated de novo.

 

Section 7.2           Withdrawal
by Members. Members may withdraw from the Company only as provided by this Agreement.

 

(a)     Notwithstanding
any provision contained herein to the contrary, if a Member shall obtain an opinion of counsel to the effect that, as a result
of the other Member’s ownership of an interest in the Company, the Company would be required to register as an investment
company under the 1940 Act, such other Member shall, upon written notice from such first Member, withdraw from or reduce (in accordance
with the provisions of clause (c) below) its interest in the Company (including its Capital Commitment) to the extent such first
Member has determined, based upon such opinion of counsel, to be necessary in order for the Company not to be required to so register.
Each Member shall, upon written request from the other Member, promptly furnish to the other Member such information as the other
Member may reasonably request from time to time in order to make a determination pursuant to this Section 7.2(a), but in no event
later than ten (10) business days after such request.

 

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(b)     Notwithstanding
any provision herein to the contrary, if a Member shall breach such Member’s obligation under the immediately following sentence,
or if the other Member shall obtain an opinion of counsel to the effect that any contribution or payment by a Member to the Company
would cause the Company or the other Member to be in violation of, or to the effect that such Member is in violation of, any law
or regulation to which the Company, a Member, or such Member’s investment in the Company may be subject from time to time
(collectively, “Investor Laws”) and which violation would reasonably be expected to have a material adverse
effect on the Company, such Member shall, upon written notice from the other Member, withdraw from the Company in accordance with
the provisions of Section 7.2(c). Each Member shall, upon written request from the other Member, promptly furnish to the other
Member such information as the other Member may reasonably request from time to time in order to make a determination pursuant
to this Section 7.2(b), but in no event later than ten (10) business days after such request.

 

(c)     If
a Member partially withdraws its interest in the Company pursuant to this Section 7.2, it shall receive, in full payment for such
withdrawn interest from first cash and cash equivalents available for distribution  pursuant to Article 5, the sum of the
portion of the Capital Account attributable to such withdrawn interest (adjusted to reflect the Value of the Company as determined
as of the date of the last valuation pursuant to Section 9.5).  If a Member withdraws its entire interest in the Company pursuant
to this Section 7.2, then the Company shall terminate as provided by Article 8.

 

ARTICLE 8

TERM, DISSOLUTION AND LIQUIDATION OF
COMPANY

 

Section 8.1           Term.
Except as provided in Section 8.2, the Company shall continue without dissolution until all Investments are liquidated by the Company.

 

Section 8.2           Dissolution.
The Company shall be dissolved and its affairs wound up upon the occurrence of any of the following events:

 

(a)     the
expiration of the term of the Company determined pursuant to Section 8.1;

 

(b)     distribution
of all assets of the Company;

 

(c)     (i)
the full withdrawal of a Member of the Company pursuant to Section 7.2, or (ii) a bankruptcy, insolvency, dissolution or liquidation
of a Member, or (iii) the making of an assignment for the benefit of creditors by a Member, or (iv) a default under Section 3.3
by a Member which remains uncured or unwaived after the expiration of the cure period set forth in Section 3.3, in each case of
clauses (ii) through (iv) above at the election of the other Member by providing written notice of such election;

 

(d)     a
determination by the SEC to subject FSFC’s participation in the Company to an accounting or reporting treatment or other
consequence which FSFC, in its sole discretion, determines to be materially adverse to it, or a change by the SEC of any assent
it may have granted regarding FSFC’s interest in the Company or the terms of such assent or its conclusions regarding the
accounting or reporting treatment or other consequence which FSFC, in its sole discretion, determines to be materially adverse
to it, in each case at the election of FSFC by providing written notice of such election to the other Member;

 

(e)     the
entry of a decree of judicial dissolution pursuant to the Act, in which event the provisions of Section 8.3, as modified by said
decree, shall govern the winding up of the Company’s affairs; or

 

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(f)     a
written notice by a Member to the other Member to dissolve the Company, which notice shall become effective as stated therein but
no less than ninety (90) days after delivery (unless the other Member waives such notification requirement).

 

Section 8.3           Wind-down.

 

(a)     Upon
the dissolution of the Company, the Company shall be liquidated in accordance with this Article and the Act. The liquidation shall
be conducted and supervised by the Board in the same manner provided by Article 6 with respect to the operation of the Company
during its term; provided that in the case of a dissolution and winding up of the Company pursuant to Sections 8.2(c) or 8.2(d),
the Member that elects such dissolution and winding up (or in the case of a full withdrawal of a Member under Section 8.2(c), the
non-withdrawing Member) may elect further, by written notice to the other Member, to exercise as liquidating agent all of the rights,
powers and authority with respect to the assets and liabilities of the Company in connection with the liquidation of the Company,
to the same extent as the Board would have during the term of the Company.

 

(b)     From
and after the date on which an event set forth in Section 8.2 becomes effective, the Company shall cease to make Investments after
that date, except for (i) Investments which the Company was committed to make in whole or in part (as evidenced by a commitment
letter, term sheet or letter of intent, or definitive legal documents under which less than all advances have been made) on or
before such effective date, and (ii) at the election of the Board by Prior Board Approval within three (3) business days after
receipt by the Board of written notice of the availability of such election from any Member, any Investment (together with any
Revolving Credit Investment) in a Portfolio Company in which the Company then has an Investment in which the Company participates,
provided that such election shall not apply to any Investment in connection with a sale or other Change of Control of such Portfolio
Company or a refinancing of the Company’s prior Investment in such Portfolio Company. Capital calls against the Capital Commitment
of the Members shall cease from and after such effective date; provided that capital calls against the Capital Commitment of the
Members may continue to fund the allocable share of Investments in which the Company continues to participate (as set forth in
the immediately preceding sentence), Expenses and all other obligations of the Company. Subject to the foregoing, the Members shall
continue to bear an allocable share of Expenses and other obligations of the Company until all Investments in which the Company
participates are repaid or otherwise disposed of in the normal course of the Company’s activities.

 

(c)     Distributions
to the Members during the winding down of the Company shall be made no less frequently than quarterly to the extent consisting
of a Member’s allocable share of cash and cash equivalents, after taking into account reasonable reserves deemed appropriate
by Prior Board Approval (or in the event of a dissolution and winding up of the Company pursuant to Sections 8.2(c) or 8.2(d),
by a Member that has elected to act as liquidating agent pursuant to Section 8.3(a)), to fund Investments in which the Company
continues to participate (as set forth in the immediately preceding paragraph), Expenses and all other obligations (including without
limitation contingent obligations) of the Company. Unless waived by Prior Board Approval, the Company also shall withhold ten percent
(10%) of distributions in any calendar year, which withheld amount shall be distributed within sixty (60) days after the completion
of the annual audit covering such year.  A Member shall remain a member of the Company until all Investments in which the
Company participates are repaid or otherwise disposed of, the Member’s allocable share of all Expenses and all other obligations
(including without limitation contingent obligations) of the Company are paid, and all distributions are made hereunder, at which
time the Member shall have no further rights under this Agreement.

 

    	- 18 -

    	 

    

 

(d)     Upon
dissolution of the Company, final allocations of all items of Company Profit and Loss shall be made in accordance with Section
4.2. Upon dissolution of the Company, the assets of the Company shall be applied in the following order of priority:

 

(i)          To
creditors (other than Members) in satisfaction of liabilities of the Company (whether by payment or by the making of reasonable
provision for payment thereof), including to establish any reasonable reserves which the Board may by Prior Board Approval, in
its reasonable judgment, deem necessary or advisable for any contingent, conditional or unmatured liability of the Company;

 

(ii)         To
creditors who are Members in satisfaction of liabilities of the Company (whether by payment or by the making of reasonable provision
for payment thereof), including to establish any reasonable reserves which the Board may by Prior Board Approval, in its reasonable
judgment, deem necessary or advisable for any contingent, conditional or unmatured liability of the Company;

 

(iii)        To
establish any reserves which the Board may by Prior Board Approval, in its reasonable judgment, deem necessary or advisable for
any contingent, conditional or unmatured liability of the Company to Members; and

 

(iv)        The
balance, if any, to the Members in accordance with Section 5.1(d).

 

(e)     Notwithstanding
the foregoing, upon the occurrence of an event described in Sections 8.2(c) or 8.2(d), the Member that may elect a dissolution
and winding up (or in the case of a full withdrawal of a Member under Section 8.2(c)(i), the non-withdrawing Member) (such Member,
the “Electing Member”) may elect alternatively by written notice to the other Member, for a period of fifteen (15)
business days following the occurrence of such event, to purchase the other Member’s Entire Interest or designate a third
party to effect such purchase (such election, the “Election to Purchase”). The purchase price for such Entire
Interest shall be payable in cash within ninety (90) days after the Election to Purchase is delivered to the other Member, and
shall be equal to the Capital Account of the other Member adjusted to reflect the Value of the Company as determined as of the
date of the last valuation pursuant to Section 9.5. Each Member hereby agrees to sell its Entire Interest to the Electing Member
or the third party designated by the Electing Member at such price if the Election to Purchase is timely exercised by the Electing
Member. If the Electing Member does not exercise the Election to Purchase within the 15-business day period set forth in this Section
8.2(e) or if the Electing Member or its third-party designee does not purchase the other Member’s Entire Interest within
ninety (90) days after the Election to Purchase is delivered to the other Member, then the Election to Purchase shall terminate
and (i) in the case of a full withdrawal by a Member under Section 8.2(c)(i), the other Member shall withdraw its Entire Interest
pursuant to Section 7.2, and the Company shall terminate as provided by Article 8 or (ii) in the case of the occurrence of an event
described Section 8.2(c)(ii)-(iv) or Section 8.2(d), the Electing Member shall retain the option to elect the dissolution of the
Company pursuant to Section 8.2(c) or (d), as applicable. After any purchase pursuant to an Election to Purchase, the other Member
shall no longer be a member of the Company, and the Electing Member, or third party designee of the Electing Member that has consummated
the purchase, may dissolve or continue the Company as it may determine.

 

(f)     In
the event that an audit or reconciliation relating to the fiscal year in which a Member receives a distribution under this Section
8.3 reveals that such Member received a distribution in excess of that to which such Member was entitled, the other Member may,
in its discretion, seek repayment of such distribution to the extent that such distribution exceeded what was due to such Member.

 

    	- 19 -

    	 

    

 

(g)     Each
Member shall be furnished with a statement prepared by the Company’s accountant, which shall set forth the assets and liabilities
of the Company as at the date of complete liquidation, and each Member’s share thereof. Upon compliance with the distribution
plan set forth in this Section 8.3, the Members shall cease to be such, and either Member may execute, acknowledge and cause to
be filed a certificate of cancellation of the Company.

 

ARTICLE 9

ACCOUNTING, REPORTING AND VALUATION PROVISIONS

 

Section 9.1           Books
and Accounts.

 

(a)     Complete
and accurate books and accounts shall be kept and maintained for the Company at its principal office. Such books and accounts shall
be kept on the accrual basis method of accounting and shall include separate Capital Accounts for each Member. Capital Accounts
for financial reporting purposes and for purposes of this Agreement shall be maintained in accordance with Section 4.1, and for
U.S. federal income tax purposes the Members shall cause the Administrative Agent to maintain the Members’ Capital Accounts
in accordance with the Code and applicable Treasury Regulations. Each Member or its duly authorized representative, at its own
expense, shall at all reasonable times and upon reasonable prior written notice to the Administrative Agent have access to, and
may inspect, such books and accounts and any other records of the Company for any purpose reasonably related to its interest in
the Company.

 

(b)     All
funds received by the Company shall be deposited in the name of the Company in such bank account or accounts or with such custodian,
and securities owned by the Company may be deposited with such custodian, as may be designated by Board Approval from time to time
and withdrawals therefrom shall be made upon such signature or signatures on behalf of the Company as may be designated by Board
Approval from time to time.

 

Section 9.2           Financial
Reports; Tax Return.

 

(a)     The
Company shall engage an independent certified public accountant selected and approved by Board Approval to act as the accountant
for the Company and to audit the Company’s books and accounts as of the end of each fiscal year. As soon as practicable,
but no later than sixty (60) days, after the end of such fiscal year, the Board shall cause the Administrative Agent to deliver,
by any of the methods described in Section 10.7, to each Member and to each former Member who withdrew during such fiscal year:

 

(i)          audited
financial statements of the Company as at the end of and for such fiscal year, including a balance sheet and statement of income,
together with the report thereon of the Company’s independent certified public accountant, which annual financial statements
shall be approved by Prior Board Approval;

 

(ii)         a
statement of holdings of securities of the Company, including both the cost and the valuation of such securities as determined
pursuant to Section 9.5, and a statement of such Member’s Capital Account;

 

(iii)        to
the extent that the requisite information is then available, a Schedule K-1 for such Member with respect to such fiscal year, prepared
in accordance with the Code, together with corresponding forms for state income tax purposes, setting forth such Member’s
distributive share of Company items of Profit or Loss for such fiscal year and the amount of such Member’s Capital Account
at the end of such fiscal year; and

 

    	- 20 -

    	 

    

 

(iv)        such
other financial information and documents respecting the Company and its business as the Administrative Agent deems appropriate,
or as a Member may reasonably require and request, to enable such Member to comply with regulatory requirements applicable to it
or to prepare its federal and state income tax returns.

 

(b)     The
Members shall cause the Administrative Agent to prepare and timely file after the end of each fiscal year of the Company all federal
and state income tax returns of the Company for such fiscal year.

 

(c)     As
soon as practicable, but in no event later than thirty (30) days, after the end of each of the first three fiscal quarters of a
fiscal year, the Board shall cause the Administrative Agent to prepare and deliver, by any of the methods described in Section
10.7, to each Member (i) unaudited financial information with respect to such Member’s allocable share of Profit or
Loss and changes to its Capital Account as of the end of such fiscal quarter and for the portion of the fiscal year then ended,
(ii) a statement of holdings of securities of the Company as to which such Member participates, including both the cost and the
valuation of such securities as determined pursuant to Section 9.5, and (iii) such other financial information as the Administrative
Agent deems appropriate, or as a Member may reasonably require and request, to enable such Member to comply with regulatory requirements
applicable to it.

 

Section 9.3           Tax
Elections. The Company may, by Prior Board Approval, but shall not be required to, make any election pursuant to the provisions
of Sections 754 or 1045 of the Code, or any other election required or permitted to be made by the Company under the Code.

 

Section 9.4           Confidentiality.

 

(a)     Each
Member agrees to maintain the confidentiality of the Company’s records, reports and affairs, and all information and materials
furnished to such Member by the Company, FSFC, FSFC’s investment adviser, the Administrative Agent or their Affiliates with
respect to their respective businesses and activities; each Member agrees not to provide to any other Person copies of any financial
statements, tax returns or other records or reports, or other information or materials, provided or made available to such Member;
and each Member agrees not to disclose to any other Person any information contained therein (including any information respecting
Portfolio Companies), without the express prior written consent of the disclosing party; provided that:

 

(i)          FSFC
may disclose (1) any such information as may be required by law in connection with its filings with the SEC and (2) the names of
borrowers of loans made by the Company and summaries of such loan transactions in any marketing materials (including tombstone
ads) of FSFC and its Affiliates; and

 

(ii)         any
Member may provide financial statements, tax returns and other information contained therein: (1) to such Member’s accountants,
internal and external auditors, legal counsel, financial advisors and other fiduciaries and representatives (who may be Affiliates
of such Member) as long as such Member instructs such Persons to maintain the confidentiality thereof and not to disclose to any
other Person any information contained therein; (2) to bona fide potential transferees of such Member’s Company interest
that agree in writing, for the benefit of the Company, to maintain the confidentiality thereof, but only after reasonable advance
notice to the Company; (3) if and to the extent required by law (including judicial or administrative order); provided that, to
the extent legally permissible, the Company is given prior notice to enable it to seek a protective order or similar relief; (4) to
representatives of any governmental regulatory agency or authority with jurisdiction over such Member, or as otherwise may be necessary
to comply with regulatory requirements applicable to such Member; and (5) in order to enforce rights under this Agreement.

 

    	- 21 -

    	 

    

 

(b)     Notwithstanding
the foregoing, the following shall not be considered confidential information for purposes of this Agreement: (i) information
generally known to the public; (ii) information obtained by a Member from a third party who is not prohibited from disclosing the
information; (iii) information in the possession of a Member prior to its disclosure by the Company, FSFC, FSFC’s investment
adviser, the Administrative Agent or their Affiliates; or (iv) information which a Member can show by written documentation was
developed independently of disclosure by the Company, FSFC, FSFC’s investment adviser, the Administrative Agent or their
Affiliates. Without limitation to the foregoing, Trinity shall not engage in the purchase, sale or other trading of securities
or derivatives thereof based upon confidential information received from the Company, FSFC, FSFC’s investment adviser, the
Administrative Agent or their Affiliates.

 

(c)     To
the extent permitted by applicable law, and notwithstanding the provisions of this Article 9, each of the Company, FSFC, FSFC’s
investment adviser, the Administrative Agent or any of their Affiliates may, in its reasonable discretion, keep confidential from
any Member information to the extent such Person reasonably determines that: (i) disclosure of such information to such Member
likely would have a material adverse effect upon the Company or a Portfolio Company due to an actual or likely conflict of business
interests between such Member and one or more other parties or an actual or likely imposition of additional statutory or regulatory
constraints upon the Company, FSFC, FSFC’s investment adviser, the Administrative Agent, any of its Affiliates or a Portfolio
Company; or (ii) such Member cannot or will not adequately protect against the improper disclosure of confidential information,
the disclosure of which likely would have a material adverse effect upon the Company, FSFC, FSFC’s investment adviser, the
Administrative Agent, any of its Affiliates or a Portfolio Company. Notwithstanding the foregoing, each of the Company, FSFC, the
Administrative Agent or any of their Affiliates shall promptly provide to each Member all relevant information and documents related
to any notice or request (whether written or oral) received from any governmental or regulatory agency involving any pending or
threatened Proceeding in connection with the activities or operations of the Company.

 

(d)     The
Members: (i) acknowledge that the Company, FSFC, the Administrative Agent, its Affiliates, and their respective direct or indirect
members, members, managers, officers, directors and employees are expected to acquire confidential third-party information that,
pursuant to fiduciary, contractual, legal or similar obligations, cannot be disclosed to the Company or the Members; and (ii) agree
that none of such Persons shall be in breach of any duty under this Agreement or the Act as a result of acquiring, holding or failing
to disclose such information to the Company or the Members.

 

Section 9.5           Valuation.

 

(a)     Valuations
shall be made as of the end of each fiscal quarter and upon liquidation of the Company in accordance with the following provisions
and the Company’s valuation guidelines then in effect (which shall be consistent with FSFC’s valuation guidelines then
in effect):

 

(i)          Within
thirty (30) days after the date as of which a valuation is to be made, the Administrative Agent shall deliver to the Board a report
as to the recommended valuation as of such date, and provide such Persons with a reasonable opportunity to request information
and to provide comments with respect to the report.

 

(ii)         If
the recommended valuation as of such date is approved by Prior Board Approval, then the valuation that has been approved shall
be final.

 

    	- 22 -

    	 

    

 

(iii)        If
there is an objection to the recommended valuation by the Board, then the Administrative Agent shall cause a valuation of the asset(s)
subject to unresolved objection to be made as of such date by an approved valuation expert (if not already made), and shall determine
a valuation of such asset(s) consistent with the valuation as of such date by the approved valuation expert, and such valuation
shall be final. For this purpose, a valuation of an asset as of such date shall be considered consistent with a valuation of an
approved valuation expert if it is equal to the recommended value or within the recommended range of values determined by the approved
valuation expert as of such date. An approved valuation expert shall mean an independent valuation consultant that either has been
approved by Prior Board Approval or has been referenced as the independent valuation consultant of the Company in a previous valuation
report by the Administrative Agent without objection by any Director.

 

(iv)        Liabilities
of the Company shall be taken into account at the amounts at which they are carried on the books of the Company, and provision
shall be made in accordance with GAAP for contingent or other liabilities not reflected on such books and, in the case of the liquidation
of the Company, for the expenses (to be borne by the Company) of the liquidation and winding up of the Company’s affairs.

 

(v)         No
value shall be assigned to the Company name and goodwill or to the office records, files, statistical data, or any similar intangible
assets of the Company not normally reflected in the Company’s accounting records.

 

(b)     All
valuations shall be made in accordance with the foregoing shall be final and binding on all Members, absent actual and apparent
error. Valuations of the Company’s assets by independent valuation consultants shall be at the Company’s expense.

 

ARTICLE 10

MISCELLANEOUS PROVISIONS

 

Section 10.1         Power
of Attorney.

 

(a)     Each
Member irrevocably constitutes and appoints FSFC the true and lawful attorney-in-fact of such Member to execute, acknowledge, swear
to and file any of the following:

 

(i)          Any
certificate or other instrument (i) which may be required to be filed by the Company under the laws of the United States, the State
of Delaware, or any other jurisdiction, or (ii) which FSFC shall deem advisable to file; provided that no such certificate or instrument
shall have the effect of amending this Agreement other than as permitted hereby;

 

(ii)         Any
amendment or modification of any certificate or other instrument referred to in this Section 10.1; and

 

(iii)        Any
agreement, document, certificate or other instrument which any Member is required to execute in connection with the termination
of such Member’s interest in the Company and the withdrawal of such Member from the Company, or in connection with the reduction
of such Member’s interest in the Company, in each case in accordance with the terms of this Agreement, which such Member
has failed to execute and deliver within ten (10) days after written request by FSFC.

 

    	- 23 -

    	 

    

 

It is expressly acknowledged
by each Member that the foregoing power of attorney is coupled with an interest and shall survive death, legal incapacity and assignment
by such Member of its interest in the Company; provided, however, that if a Member shall assign all of its interest in the Company
and the assignee shall, in accordance with the provisions of this Agreement, become a substitute Member, such power of attorney
shall survive such assignment only for the purpose of enabling each attorney-in-fact to execute, acknowledge, swear to and file
any and all instruments necessary to effect such substitution.

 

(b)     Each
Member agrees to execute, upon five (5) business days’ prior written notice, a confirmatory or special power of attorney,
containing the substantive provisions of this Section 10.1, in form satisfactory to FSFC.

 

Section 10.2         Governing
Law; Jurisdiction; Jury Waiver. This Agreement shall be governed by, and construed in accordance with, the law of the State
of Delaware. To the fullest extent permitted by law, in the event of any dispute or controversy arising out of the terms and conditions
of this Agreement, the parties hereto consent and submit to the jurisdiction of the courts of the State of New York in the county
of New York and of the U.S. District Court for the Southern District of New York.

 

THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF SUCH PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE
OR ENFORCEMENT THEREOF.

 

Section
10.3         Certificate of Formation; Other Documents.
The Members hereby approve and ratify the filing of the Certificate of Formation on behalf of the Company. The Members agree to
execute such other instruments and documents as may be required by law or which a Member or the Board deems necessary or appropriate
to carry out the intent of this Agreement.

 

Section
10.4         Force Majeure. Whenever any
act or thing is required of the Company or a Member hereunder to be done within any specified period of time, the Company and the
Member shall be entitled to such additional period of time to do such act or thing as shall equal any period of delay resulting
from causes beyond the reasonable control of the Company or the Member, including, without limitation, bank holidays, and actions
of governmental agencies, and excluding, without limitation, economic hardship; provided that this provision shall not have the
effect of relieving the Company or the Member from the obligation to perform any such act or thing.

 

Section 10.5         Waivers.

 

(a)     No
waiver of the provisions hereof shall be valid unless in writing and then only to the extent therein set forth. Any right or remedy
of the Members hereunder may be waived by Prior Board Approval, and any such waiver shall be binding on all Members, other than
situations where such rights or remedies are non-waivable under applicable law. Except as specifically herein provided, no failure
or delay by any party in exercising any right or remedy hereunder shall operate as a waiver thereof, and a waiver of a particular
right or remedy on one occasion shall not be deemed a waiver of any other right or remedy or a waiver on any subsequent occasion.

 

(b)     Except
as otherwise provided in this Agreement or for situations in which the approval or consent of all or certain Members is required
by non-waivable provisions of applicable law, any approval or consent of the Members may be given by Prior Board Approval, and
any such approval or consent shall be binding on all Members.

 

    	- 24 -

    	 

    

 

Section
10.6         Notices.  All notices, demands,
solicitations of consent or approval, and other communications hereunder shall be in writing or by electronic mail (with or without
attached PDFs), and shall be sufficiently given if personally delivered or sent by postage prepaid, registered or certified mail,
return receipt requested, or sent by electronic mail, overnight courier or facsimile transmission, addressed as follows: if intended
for the Company, to the Company’s principal office determined pursuant to Section 2.3; and if intended for any Member, to
the address of such Member set forth on the Company’s records, or to such other address as any Member may designate by written
notice. Notices shall be deemed to have been given (i) when personally delivered, (ii) if sent by registered or certified mail,
on the earlier of (A) three days after the date on which deposited in the mails or (B) the date on which received, or (iii) if
sent by electronic mail, overnight courier or facsimile transmission, on the date on which received; provided that notices of a
change of address shall not be deemed given until the actual receipt thereof. The provisions of this Section shall not prohibit
the giving of written notice in any other manner; any such written notice shall be deemed given only when actually received.

 

Section 10.7         Construction.

 

(a)     The
captions used herein are intended for convenience of reference only and shall not modify or affect in any manner the meaning or
interpretation of any of the provisions of this Agreement.

 

(b)     As
used herein, the singular shall include the plural, the masculine gender shall include the feminine and neuter, and the neuter
gender shall include the masculine and feminine, unless the context otherwise requires.

 

(c)     The
words “hereof,” “herein,” and “hereunder,” and words of similar import, when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(d)     References
in this Agreement to Articles, Sections and Schedules are intended to refer to Articles, Sections and Schedules of this Agreement
unless otherwise specifically stated.

 

(e)     Unless
otherwise specified, references herein to applicable statutes or other laws are references to the federal laws of the United States.

 

(f)     Nothing
in this Agreement shall be deemed to create any right in or benefit for any creditor of the Company that is not a party hereto,
and this Agreement shall not be construed in any respect to be for the benefit of any creditor of the Company that is not a party
hereto.

 

Section 10.8         Amendments.
This Agreement may be amended at any time and from time to time by a written instrument executed by each Member.

 

Section 10.9         Legal
Counsel. Schedule C is incorporated by reference herein.

 

Section 10.10       Execution.
This Agreement may be executed in any number of counterparts and all such counterparts together shall constitute one agreement
binding on all Members.

 

Section 10.11      Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of the respective heirs, executors, administrators,
legal representatives, successors and assigns of the parties hereto; provided that this provision shall not be construed to permit
any assignment or transfer which is otherwise prohibited hereby.

 

    	- 25 -

    	 

    

 

Section 10.12      Severability.
If any one or more of the provisions contained in this Agreement, or any application thereof, shall be invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein and all other applications
thereof shall not in any way be affected or impaired thereby.

 

Section 10.13       Computation
of Time. In computing any period of time under this Agreement, the day of the act, event, or default from which the designated
period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday,
Sunday or legal holiday on which banks in New York are closed, in which event the period shall run until the end of the next day
which is not a Saturday, Sunday or such a legal holiday. Any reference to “business day” shall refer to any day which
is not a Saturday, Sunday or such a legal holiday. Any references to time of day shall refer to New York time.

 

Section 10.14      Entire
Agreement. This Agreement and the Subscription Agreements constitute the entire agreement between the parties and supersede
all prior agreements, understandings and arrangements with respect to the subject matter hereof.

 

[Signatures appear on next page]

 

    	- 26 -

    	 

    

 

IN WITNESS WHEREOF,
the Members have caused this Agreement to be executed and delivered as of the date first above written.

 

	 	FIFTH STREET FINANCE CORP.
	 	 	 	 
	 	 	By:	Fifth Street Management LLC, as agent
	 	 	 	 
	 	 	By:	 
	 	 	 	Name: Ivelin Dimitrov
	 	 	 	Title: Chief Investment Officer

 

	 	TRINITY UNIVERSAL INSURANCE COMPANY
	 	 	 	 
	 	By:	 	 
	 	 	Name: John M. Boschelli	 
	 	 	Title: Assistant Treasurer	 

 

[Signature Page to Senior Loan Fund JV I,
LLC Limited Liability Company Agreement]

 

    	 

    	 

    

 

Schedule A

Prior Board Approval and Board Approval

 

1. Prior Board Approval shall be required
for the Company or any Subsidiary to do any of the following:

 

(i)          Enter
into any transaction with a Member or an Affiliate of a Member (except as expressly permitted by this Agreement);

 

(ii)         Make
an Investment in the securities of a Member or an Affiliate of a Member;

 

(iii)        Enter
into hedging, swaps, forward contracts or other commodities transactions;

 

(iv)        Enter
into any credit facility or other similar agreement for the incurrence of debt or issue debt securities, or materially modify or
waive the terms or extend the maturity thereof or make a voluntary prepayment with respect thereto;

 

(v)         Organize,
acquire an interest in, or transfer or otherwise dispose of an interest in, any Subsidiary, Alternative Investment Vehicle or any
other investment or financing vehicle, or materially modify or waive the terms thereof;

 

(vi)        Replace
the Administrative Agent for the Company, or materially modify or waive the terms of any administrative services agreement;

 

(vii)       Approve
a Transfer of an interest in the Company where required by Article 7;

 

(viii)      Take
any action or decision which pursuant to any provision of this Agreement requires Prior Board Approval;

 

(ix)         Modify
or waive any material provision of this Agreement, including this Schedule A or modify the Certificate of Formation of the Company
in a manner adverse to the rights of any Member under this Agreement;

 

(x)          Guarantee
or otherwise become liable for, the obligations of other Persons, including Portfolio Companies;

 

(xi)         Materially
change the business of the Company or Subsidiaries from its current business or enter into any line business other than existing
or related lines of business;

 

(xii)        Make,
change or rescind any tax election;

 

(xiii)       Settle
or compromise with respect to any tax audit, claim, deficiency notice, suit or other proceeding relating to taxes; make a request
for a written ruling to any tax authority; or enter into a written and legally binding agreement with any tax authority (including
any agreement to extend or waive any statute of limitations with respect to any taxes);

 

(xiv)      Invest
an amount in any single Portfolio Company which is more than five percent (5%) of the sum of the total Capital Commitments to the
Company plus the maximum amount of any credit facilities of the Company and its Subsidiaries (determined at the time of the first
investment in such Portfolio Company; and

 

    	 

    	 

    

 

(xv)       Make
short sales of securities, except to hedge its position in Investments owned by it or to hedge against fluctuations in non-U.S.
currencies which might affect the value of its Investments.

 

2. Subject to Section 1 of this Schedule
A for matters requiring Prior Board Approval, Board Approval shall be required for the Company or any Subsidiary to do any of the
following:

 

		(i)	Change the name or principal office of the Company or open additional offices of the Company;

 

		(ii)	Retain third-party agents on behalf of the Company, open accounts with third parties on behalf
of the Company and designate signatures upon which withdrawals from accounts shall be made on behalf of the Company;

 

		(iii)	Adjust GAAP Profit or GAAP Loss to amortize Organization Costs over four years or select a period
other than four years over which to amortize Organization Costs;

 

		(iv)	Determine a period to allocate Profit or Loss among the Members pursuant to Section 4.1(b);

 

		(v)	Select and approve an independent certified public accountant to act as the accountant for the
Company and to audit the Company’s books and accounts as of the end of each fiscal year; provided that no such approval shall
be required for the retention of PricewaterhouseCoopers as the Company’s independent certified accountant for the fiscal
year ending September 30, 2014; and

 

		(vi)	Take any action or decision which pursuant to any provision of this Agreement requires Board Approval.

 

For the avoidance of
doubt, Prior Board Approval shall be required for all matters set forth in Section 1 of this Schedule A.

 

		3.	Each Member and each Director and their respective designees may, in the name and on behalf of
the Company, do all things which it deems necessary, advisable or appropriate to make investment opportunities available to the
Company, to carry out and implement matters approved by Prior Board Approval, Board Approval or Prior Investment Committee Approval,
as applicable, and to administer the activities of the Company, including:

 

		(i)	Execute and deliver all agreements, amendments and other documents and exercise and perform of
all rights and obligations with respect to any Person in which the Company holds an interest, including Subsidiaries, Alternative
Investment Vehicles and other investment and financing vehicles;

 

		(ii)	Execute and deliver other agreements, amendments and other documents and exercise and perform all
rights and obligations with respect to matters approved by Prior Board Approval, Board Approval or Prior Investment Committee Approval,
as applicable, or which are necessary, advisable or appropriate for the administration of the Company, including with respect to
any contracts evidencing indebtedness for borrowed funds; and

 

		(iii)	Take any and all other acts delegated to such Member or Director by this Agreement or by Board
Approval or Prior Board Approval; provided that if such acts require Prior Board Approval or Prior Investment Committee Approval,
such Prior Board Approval or Prior Investment Committee Approval, as applicable, has been obtained.

 

    	 

    	 

    

 

Schedule B

Prior Investment Committee Approval

 

Prior Investment Committee Approval shall
be required for the Company or any Subsidiary to do any of the following:

 

		(i)	Take any action or make any decision that results in the acquisition or disposition of an Investment
other than funding of Investments pursuant to commitments previously approved by Prior Investment Committee Approval;

 

		(ii)	Materially modify or waive the terms of any Investment which results in: (1) an extension of additional
capital or commitments; (2) an amendment or waiver of a financial covenant of a borrower for more than four consecutive quarters;
(3) approval of a material acquisition or disposition, it being understood that, without limiting the generality of the foregoing,
any acquisition of disposition which represents more than 20% of the enterprise value of the issuer shall be deemed material for
purposes of this clause (3); (4) the incurrence of additional senior debt by the borrower in an amount equal to or greater than
10% of the existing senior debt commitments or which results in leverage increases by more than 0.5 times; or (5) an amendment
or waiver of any payment term, including mandatory prepayments;

 

		(iii)	Make any Investment that requires derivation from any investment restrictions set forth in this
Agreement; or

 

		(iv)	Take any action or make any decision which pursuant to any provision of this Agreement requires
Prior Investment Committee Approval.

 

    	 

    	 

    

 

Schedule C

Legal Counsel

 

FSFC has engaged Dechert
LLP (“Dechert”) as legal counsel to the Company and FSFC. Moreover, Dechert has previously represented and/or
concurrently represents the interests of the Company, FSFC and/or parties related thereto in connection with matters other than
the preparation of this Agreement and may represent such Persons in the future. Each Member: (i) approves Dechert’s representation
of the Company and FSFC in the preparation of this Agreement; and (ii) acknowledges that Dechert has not been engaged by any other
Member to protect or represent the interests of such Member vis-à-vis the Company or the preparation of this Agreement,
and that actual or potential conflicts of interest may exist among the Members in connection with the preparation of this Agreement.
In addition, each Member: (i) acknowledges the possibility of a future conflict or dispute among Members or between any Member
or Members and the Company; and (ii) acknowledges the possibility that, under the laws and ethical rules governing the conduct
of attorneys, Dechert may be precluded from representing the Company and/or FSFC (or any equity holder thereof) in connection with
any such conflict or dispute. Nothing in this Schedule C shall preclude the Company from selecting different legal counsel to represent
it at any time in the future and no Member shall be deemed by virtue of this Schedule C to have waived its right to object to any
conflict of interest relating to matters other than this Agreement or the transactions contemplated herein.EXHIBIT 10.2

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement (the “Agreement”), entered into as of May 5, 2014 (the “Effective Date”),
is by and between InspireMD, Inc., a Delaware corporation (the “Company”), and Craig Shore, an individual (the
“Executive”). This Agreement amends and restates, in its entirety, the Employment Agreement entered into on
November 24, 2010 (the “Prior Agreement”), by and between the Executive and InspireMD Ltd., a wholly owned subsidiary
of the Company (“Subsidiary”).

 

PRELIMINARY STATEMENTS

 

A.         The
Company desires to employ the Executive as its Chief Financial Officer and Chief Administrative Officer and the Executive desires
to be employed by the Company as its Chief Financial Officer and Chief Administrative Officer.

 

B.         The
Company and the Executive desire to set forth in writing the terms and conditions of their agreement and understanding with respect
to the employment of the Executive as its Chief Financial Officer and Chief Administrative Officer.

 

C.         Capitalized
terms used herein and not otherwise defined have the meaning for them set forth on Exhibit A attached hereto and incorporated
herein by reference.

 

The parties, intending
to be legally bound, hereby agree as follows:

 

I.           EMPLOYMENT
AND DUTIES

 

1.1         Duties.
The Company hereby employs the Executive as an employee, and the Executive agrees to be employed by the Company, upon the terms
and conditions set forth herein. While serving as an employee of the Company, the Executive shall serve as the Chief Financial
Officer and Chief Administrative Officer of the Company, and be appointed to serve as the Chief Financial Officer and Chief Administrative
Officer of Subsidiary. The Executive shall be the senior most financial and administrative officer of the Company and Subsidiary,
shall report to the Chief Executive Officer of the Company, and shall have such power and authority and perform such duties, functions
and responsibilities as are associated with an incident to such positions, and as the Chief Executive Officer may from time to
time require of him; provided, however, that such authority, duties, functions and responsibilities are commensurate with the power,
authority, duties, functions and responsibilities generally performed by Chief Financial Officers and Chief Administrative Officers
of public companies which are similar in size and nature to, and the financial position of, the Company, including, but not limited
to, appropriate involvement in meetings of and exposure to the Board and its committees. The Chief Executive Officer shall be entitled
to change the Executive’s duties in accordance with the Company’s needs, as determined in the Chief Executive Officer’s
sole discretion, and such changes shall not be deemed to cause an adverse change in the Executive’s terms of employment and
shall not give rise to any claim by the Executive against the Company in this regard. The Executive also agrees to serve, if elected,
as an officer of any other direct or indirect subsidiary of the Company or Subsidiary, in each such case at no compensation in
addition to that provided for in this Agreement, but the Executive serves in such positions solely as an accommodation to the Company
and such positions shall grant him no rights hereunder (including for purposes of the definition of Good Reason). The Executive
acknowledges and agrees that his duties shall include travel outside of Israel as may be necessary in order to fulfill his duties
hereunder, as determined by the Chief Executive Officer in his sole discretion. The Company and the Executive confirm and agree
that this Agreement is a personal employment contract and that the relationship between the parties hereto shall not be subject
to any general or special collective employment agreement or any custom or practice of the Company in respect of any of its other
employees or contractors.

 

    	 

    	 

    

 

1.2         Services.
During the Term (as defined in Section 1.3), and excluding any periods of vacation, sick leave or Disability, the Executive agrees
to devote his full business time, attention and efforts to the business and affairs of the Company. During the Term, it shall not
be a violation of this Section 1.2 for the Executive to (a) serve on civic or charitable boards or committees, (b) serve on three
(3) for-profit corporate boards at any one time (provided that such activities do not create a conflict with Executive’s
employment hereunder as determined by the Chief Executive Officer in his reasonable discretion), (c) deliver lectures or fulfill
speaking engagements, or (d) manage personal investments, so long as such activities do not interfere with the performance of the
Executive’s responsibilities in accordance with this Agreement. The Executive must request the Chief Executive Officer’s
prior written consent to serve on a corporate board, which consent shall be at the Chief Executive Officer’s reasonable discretion
and only so long as such service does not interfere with the performance of his responsibilities hereunder.

 

1.3         Term
of Employment. The term of this Agreement shall commence on the Effective Date and shall continue until 11:59 p.m. Eastern
Time on April 20, 2017 (the “Initial Term”) unless sooner terminated or extended as provided hereunder. This
Agreement shall automatically renew for additional one-year periods on April 21, 2017 and on each and every April 21st
thereafter (each such extension, the “Renewal Term”) unless either party gives the other party written notice
of its or his election not to extend such employment at least six months prior to the next April 21st renewal date.
Further, if a Change in Control occurs when less than two full years remain in the Initial Term or during any Renewal Term, this
Agreement shall automatically be extended for two years only from the Change in Control Date and thereafter shall terminate on
the second anniversary of the Change in Control Date in accordance with its terms. The Initial Term, together with any Renewal
Term or extension as a result of a Change in Control, are collectively referred to herein as the “Term.” In
the event that the Executive continues to be employed by the Company after the Term, unless otherwise agreed by the parties in
writing, such continued employment shall be on an at-will, month-to-month basis upon terms agreed upon at such time without regard
to the terms and conditions of this Agreement (except as expressly provided herein) and this Agreement shall be deemed terminated
at the end of the Term, regardless of whether such employment continues at-will, other than Articles VI and VII, plus specified
provisions of Articles IV and V to the extent they relate to termination of employment after expiration of the Term, which shall
survive the termination or expiration of this Agreement for any reason.

 

1.4         Use of Company
Property. The Company shall provide the Executive with a computer or laptop computer as well as an email account for his use
in fulfilling his duties under this Agreement. The Executive acknowledges that such computers and email account are the sole property
of the Company. Therefore, the Executive shall (i) not use such computers and email account for personal use; and (ii) irrevocably
empower and authorize the Company to monitor and/or save any communication made by the Executive through such computers and email
account. Accordingly, such monitoring shall not be considered to be a breach of the Executive’s right for privacy under any
circumstances.

 

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II.          COMPENSATION

 

2.1         General.
The base salary (as set forth in Section 2.2) and Incentive Compensation (as defined in Section 2.3) payable to the Executive hereunder,
as well as any stock-based compensation, including stock options, stock appreciation rights and restricted stock grants, shall
be determined from time to time by the Board and paid pursuant to the Company’s customary payroll practices or in accordance
with the terms of the Company’s Amended and Restated 2011 Umbrella Option Plan or other stock-based compensation plans as
the Company may establish from time to time (collectively, the “Plans”). The Company shall pay the Executive
in cash, in accordance with the normal payroll practices of the Company, the base salary and Incentive Compensation set forth below.
For the avoidance of doubt, in providing any compensation payable in stock, the Company may withhold, deduct or collect from the
compensation otherwise payable or issuable to the Executive a portion of such compensation to the extent required to comply with
applicable tax laws to the extent such withholding is not made or otherwise provided for pursuant to the agreement governing such
stock-based compensation.

 

2.2         Base
Salary.

 

(a)          The
Executive shall be paid a base salary of no less than US$18,350 per month (US$220,200 on an annualized basis) while he is employed
by the Company during the Term, retroactive to January 1, 2014; provided, however, that nothing shall prohibit the
Company, to the extent permitted by law, from reducing the base salary as part of an overall cost reduction program that affects
all senior executives of the Company Group and does not disproportionately affect the Executive, so long as such reductions do
not reduce the base salary to a rate that is less than 90% of the minimum base salary amount set forth above (or, if the minimum
base salary amount has been increased during the Term, 90% of such increased amount). The Executive’s base salary shall be
reviewed annually by the Chief Executive Officer for increase (but not decrease, except as permitted above) as part of the Company’s
annual compensation review.

 

(b)          As
the Executive is employed by the Company in a senior managerial position involving a fiduciary relationship between the Executive
and the Company, the Work and Rest Law (5711-1951), and any other law amending or replacing such law, shall not apply to the Executive
or to his employment with the Company, and the Executive shall not be entitled to any compensation in respect of such law. The
Executive acknowledges that the compensation set for him under this Agreement includes compensation that would otherwise be due
to the Executive pursuant to such law.

 

(c)          Subject
to Sections 3.3 and 3.5 below, the base salary shall be comprehensive and all-inclusive in that it shall be deemed to represent
the Executive’s entire compensation for his employment and work under this Agreement, including those social benefits which
can be embodied under law in his base salary, except where it is otherwise specifically set forth in this Agreement.

 

2.3         Bonus
or other Incentive Compensation. During the Term, the Executive shall be eligible to receive annual bonus compensation in an
amount equal to 45% of his then-base salary (the “Annual Bonus”) upon the achievement of reasonable target objectives
and performance goals as may be determined by the Board in consultation with the Executive (the “Goals”). The
Goals shall be based 40% on financial target objectives, 20% on pipeline target objectives (by way of example, for 2014, the Carotid
launch, DES project definition, and Peripheral CE Mark), 20% on clinical target objectives (by way of example, for 2014, MASTER
II enrollment and Carotid CARE study enrollment), and 20% on partnership target objectives (by way of example, for 2014, the execution
of two partnership agreements). Further, the financial target objectives shall be based 75% on the Company’s revenues and
25% on cash management. The Executive shall receive 100% of the Annual Bonus if he achieves 100% of the Goals. If the Executive
achieves less than 100% but at least 70% of the Goals, then the Executive shall receive the corresponding percentage of the Annual
Bonus. By way of example and for illustrative purposes only, if the Executive achieves 85% of the Goals, then he would receive
85% of the Annual Bonus. If the Executive achieves less than 70% of the Goals, then he will not receive the Annual Bonus. In the
event the Executive’s actual performance exceeds the Goals, the Board may, in its sole discretion, pay the Executive bonus
compensation of more than 100% of the Annual Bonus. In each case, the Annual Bonus shall be payable in accordance with the Company’s
annual bonus plan (the “Bonus Plan”). Amounts payable under the Bonus Plan shall be determined by the Board
and shall be payable following such fiscal year and no later than two and one-half months after the end of such fiscal year. In
addition to the Annual Bonus, the Executive shall be eligible to receive such additional bonus or incentive compensation as the
Board may establish from time to time in its sole discretion. Any bonus or incentive compensation under this Section 2.3, the Bonus
Plan or otherwise is referred to herein as “Incentive Compensation.” Stock-based compensation shall not be considered
Incentive Compensation under the terms of this Agreement unless the parties expressly agree otherwise in writing. The payment of
any Incentive Compensation shall be subject to all federal, state and withholding taxes, social security deductions and other general
taxes and any other withholding obligations required by applicable law. Payment of Incentive Compensation with respect to a particular
calendar year during the Term does not guarantee the award or payment of Incentive Compensation in any subsequent calendar year.

 

    	3

    	 

    

 

2.4         Stock
Compensation. The Executive shall be considered for grants under the Plans no less often than annually as part of the Board’s
annual compensation review, but any such grants shall be at the sole discretion of the Board. Each grant will be subject to a separate
award agreement between the Company and the Executive under the Plans, and, with respect to any awards that are options, will have
an exercise price equal to the fair market value of the Company’s common stock as determined by the Board as of the date
of grant under the Plans and will be subject to a three-year vesting period subject to the Executive’s continued service
with the Company (as defined in the Plans), with one-third of each additional grant vesting equally on the first, second, and third
anniversary of the date of grant for such awards.

 

III.         EMPLOYEE
BENEFITS

 

3.1         General.
Subject only to any post-employment rights under Article V, so long as the Executive is employed by the Company pursuant to
this Agreement, he shall be eligible for the following benefits to the extent generally available to senior executives of the Company
or by virtue of his position, tenure, salary and other qualifications. Any eligibility shall be subject to and in accordance with
the terms and conditions of the Company’s benefits policies and applicable plans (including as to deductibles, premium sharing,
co-payments or other cost-splitting arrangements).

 

3.2         Employee
Benefits. During the Term and subject to any contribution therefor generally required of senior executives of the Company,
the Executive shall be entitled to participate in such employee benefit plans and benefit programs as are made available by the
Company to the Company’s senior executives. Such participation shall be subject to the terms of the applicable plan documents
and generally applicable Company policies. The Company may alter, modify, add to or delete its employee benefit plans at any time
as it, in its sole judgment, determines to be appropriate, without recourse by the Executive.

 

3.3         Vacation.
The Executive shall be entitled to 21 Business Days vacation for each calendar year of work or as prescribed by the Annual Leave
Law (5711-1951), whichever is more beneficial to the Executive.

 

3.4         Expenses.
The Executive shall be entitled to receive prompt reimbursement for all reasonable business-related expenses incurred by the Executive
in performing his duties under this Agreement. Reimbursement of the Executive for such expenses will be made upon presentation
to the Company of expense vouchers that are in sufficient detail to identify the nature of the expense, the amount of the expense,
the date the expense was incurred and to whom payment was made to incur the expense, all in accordance with the expense reimbursement
practices, policies and procedures of the Company.

 

    	4

    	 

    

 

3.5         Manager’s
Insurance.

 

(a)          The
Company shall purchase a Manager’s Insurance Policy (the “Policy”) for the Executive through an insurance company
chosen by the Executive, and shall pay a sum equal to 15.83% of the Executive’s base salary towards such Policy, of which
8.33% shall be on account of severance pay and 5.0% on account of pension fund payments, and up to a further 2.5% of the Executive’s
base salary on account of disability pension payments. The Company shall deduct 5.0% from the Executive’s base salary to
be paid on the Executive’s behalf toward such Policy.

 

The parties further agree that
during the Term, the Company shall be the sole owner of the Policy. Upon the termination of the Executive’s employment with
the Company for any reason other than for Cause, the Company shall transfer title to the Policy to the Executive.

 

(b)          The
amounts which the Executive is entitled to receive from the Policy accruing from disbursements paid by the Company towards the
Policy on account of the severance pay portion shall be credited against any obligation the Company may have to pay severance pay
under the law. Notwithstanding the foregoing, no amount which the Executive is entitled to receive from the Policy shall be credited
against any amounts due to the Executive pursuant to Section 5.1, 5.2 or 5.3 below.

 

3.6           
Education Fund. The Company shall pay an amount equal to 7.5% of the Basic Salary for the preceding month to an Education
Fund (Keren Hishtalmut) designated by the Executive (the “Education Fund”), and shall deduct from the Basic
Salary an amount equal to 2.5% of the Basic Salary for the preceding month and pay the same to the Education Fund Use of these
funds shall be in accordance with the by-laws of the Education Fund. The Executive acknowledges and understands that Company’s
contributions to the Education Fund exceeding the highest amount recognized as tax free by the tax authorities shall be an income
of the Executive and shall be taxed accordingly, and all taxes and mandatory payments imposed on such additional income shall be
exclusively born by the Executive.

 

3.7         Recuperation
Pay (Dmei Ha’vraa). The Executive shall be entitled to recuperation pay for a certain number of days, as provided by
law.

 

3.8         Sick
Leave. The Executive shall be entitled to paid sick leave as provided by law.

 

3.9         Taxes.
Any taxes imposed on the benefits granted to the Executive under this Article III or upon other perquisites provided by the Company
to the Executive, including, without limitation, the use of an automobile purchased or rented by the Company or the use of a cellular
telephone, shall be paid solely by the Executive and such taxes may be withheld by the Company pursuant to Section 7.6.

 

3.10       Company
Automobile. The Company shall provide the Executive an automobile, either purchased or rented by the Company, for the Executive’s
use in connection with the performance of his duties hereunder and for his reasonable personal use. The Company shall pay all maintenance,
repair, gasoline, and operating expenses attributable to the reasonable use of such automobile for up to 25,000 kilometers per
year, and the Executive shall pay the Company US$0.10 per kilometer thereafter, which amount the Company may deduct from other
compensation payable to the Executive under this Agreement. The Executive shall be liable for all traffic or parking fines or penalties
assessed on such automobile and shall reimburse the Company for any such fines or penalties paid by the Company, which amount the
Company may deduct from other compensation payable to the Executive under this Agreement. The Executive shall return the automobile
to the Company immediately upon the Executive’s termination of employment.

 

    	5

    	 

    

 

IV.          TERMINATION
OF EMPLOYMENT

 

4.1         Termination
by Mutual Agreement. The Executive’s employment may be terminated at any time during the Term by mutual written agreement
of the Company and the Executive.

 

4.2         Death.
The Executive’s employment hereunder shall terminate upon his death.

 

4.3         Disability.
In the event the Executive incurs a Disability for a continuous period exceeding 90 days or for a total of 180 days during any
period of 12 consecutive months, the Company may, at its election, terminate the Executive’s employment during or after the
Term by delivering a Notice of Termination (as defined in Section 4.7) to the Executive 30 days in advance of the date of termination.

 

4.4         Termination
without Cause. The Company may terminate the Executive’s employment at any time during or after the Term without Cause
by delivering to the Executive a Notice of Termination 90 days in advance of the date of termination; provided that as part of
such notice the Company may request that the Executive immediately tender the resignations contemplated by Section 4.8 and otherwise
cease performing his duties hereunder. The Notice of Termination need not state any reason for termination and such termination
can be for any reason or no reason. The date of termination shall be the date set forth in the Notice of Termination.

 

4.5         Cause.
The Company may terminate the Executive’s employment at any time during or after the Term for Cause by delivering a Notice
of Termination to the Executive. The Notice of Termination shall include a copy of a resolution duly adopted by the affirmative
vote of not less than a majority of the entire membership of the Board, at a meeting of the Board called and held for such purpose,
finding that in the good faith opinion of the Board an event constituting Cause has occurred and specifying the particulars thereof.
A Notice of Termination for Cause may not be delivered unless in conjunction with such Board meeting the Executive was given reasonable
notice and the opportunity for the Executive, together with the Executive’s counsel, to be heard before the Board prior to
such vote.

 

4.6         Termination
by the Executive. The Executive may terminate his employment at any time during or after the Term by delivering to the Company
a Notice of Termination 30 days in advance of the date of termination (a “Voluntary Termination”). The Executive
may also terminate his employment within the Change in Control Period for Good Reason (a “Good Reason Termination”).
For purposes of this Agreement, neither a Voluntary Termination nor a Good Reason Termination shall include a termination of the
Executive’s employment by reason of death. Neither a Voluntary Termination nor a Good Reason Termination shall be considered
a breach or other violation of this Agreement.

 

4.7         Notice
of Termination. Any termination of employment under this Agreement by the Company or the Executive requiring a notice of termination
shall require delivery of a written notice by one party to the other party (a “Notice of Termination”). A Notice
of Termination must indicate the specific termination provision of this Agreement relied upon and the date of termination. It must
also set forth in reasonable detail the facts and circumstances claimed to provide a basis for such termination, other than in
the event of a Voluntary Termination or termination without Cause. The date of termination specified in the Notice of Termination
shall comply with the time periods required under this Article IV, and may in no event be earlier than the date such Notice of
Termination is delivered to or received by the party getting the notice. If the Executive fails to include a date of termination
in any Notice of Termination he delivers, the Company may establish such date in its sole discretion. The terms “termination”
and “termination of employment,” as used herein are intended to mean a termination of employment which constitutes
a “separation from service” under Section 409A.

 

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4.8         Resignations.
Upon ceasing to be an employee of the Company for any reason, or earlier upon request by the Company pursuant to Section 4.4, the
Executive agrees to immediately tender written resignations to the Company with respect to all officer and director positions he
may hold at that time with any member of the Company Group.

 

4.9         Advance
Notice Law. Subject to any provision under this Article IV which is more favorable to the Executive than any other right prescribed
by law, each party shall assume all rights and obligations under the Law for Advance Notice on Dismissal and Resignation (5752-2001)
(the “Advance Notice Law”). During the notice period required by the Advance Notice Law, the Executive,
if so requested by the Company, shall continue to perform his duties, cooperate with the Company, and use his best efforts to assist
in the integration into the Company’s organization the person or persons who will assume the Executive’s responsibilities.
If, however, the Company does not require the Executive to continue to perform his duties, whether in whole or in part, during
the notice period required by the Advance Notice Law, the Company’s obligation to pay the Executive’s base salary through
the end of such advance notice period shall terminate upon the Executive’s employment or engagement in any manner that would
not be permitted under this Agreement while the Executive is still employed by the Company.

 

V.PAYMENTS ON TERMINATION

 

5.1         Death;
Disability; Termination without Cause. If at any time during the Term the Executive’s employment with the Company is
terminated pursuant to Section 4.2, 4.3, or 4.4, in addition to any amounts the Executive is entitled to receive under the Policy
pursuant to Section 3.5, the Executive shall be entitled to the payment and benefits set forth below only. If at any time after
the Term the Executive’s employment with the Company is terminated pursuant to Section 4.2, 4.3, or 4.4, in addition to any
amounts the Executive is entitled to receive under the Policy pursuant to Section 3.5, the Executive shall be entitled to the payment
and benefits set forth in (a), (b) and the specified provisions of (c) only.

 

(a)          any
unpaid base salary and accrued unpaid vacation then owing through the date of termination or Incentive Compensation that is as
of such date actually earned or owing under Article II, but not yet paid to the Executive, which amounts shall be paid to the Executive
on the next regularly scheduled Company payroll date following the date of termination or earlier if required by applicable law;
provided, however, that the Executive shall be entitled to receive the pro rata amount of any Bonus Plan Incentive
Compensation for the fiscal year of his termination of employment (based on the number of business days he was actually employed
by the Company during the fiscal year in which the termination of employment occurs and based on the percentage of the Goals actually
achieved by the Executive as described in Section 2.3) that he would have received had his employment not been terminated during
such year. Nothing in the foregoing sentence is intended to give the Executive greater rights to such Incentive Compensation than
a pro rata portion of what he would ordinarily be entitled to under the Bonus Plan Incentive Compensation that would have been
applicable to him had his employment not been terminated (based on the percentage of the Goals actually achieved by the Executive
as described in Section 2.3), it being understood that the Executive’s termination of employment shall not be used to disqualify
the Executive from or make him ineligible for a pro rata portion of the Bonus Plan Incentive Compensation to which he would otherwise
have been entitled (based on the percentage of the Goals actually achieved by the Executive as described in Section 2.3). The pro
rata portion of Bonus Plan Incentive Compensation shall, subject to Section 7.16, be paid at the time such Incentive Compensation
is paid to senior executives of the Company (“Severance Bonus Payment Date”) but in no event later than two
and one-half months after the end of such fiscal year.

 

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(b)          a
one-time lump sum severance payment in an amount equal to the sum of (i) 100% of the Executive’s Base Amount and (ii) the
cost to the Company of providing the automobile to the Executive, as provided in Section 3.9, for the 12 months immediately preceding
the date of termination. The lump sum severance payment shall be paid on the Company’s first payroll date after the Executive’s
signing the release described in Section 5.4 and the expiration of any applicable revocation period, subject, in the case of termination
other than as a result of the Executive’s death, to Section 7.16; provided, however, that in the event that
the time period for return of the release and expiration of the applicable revocation period begins in one taxable year and ends
in a second taxable year, such payment shall not be made until the second taxable year if necessary to comply with Section 409A
of the Code.

 

(c)          to
the fullest extent permitted by the Company’s then-current benefit plans, continuation of health, dental, vision and life
insurance coverage, (but not pension, retirement, profit-sharing, severance or similar compensatory benefits), for the Executive
and the Executive’s eligible dependents substantially similar to coverage they were receiving or which they were entitled
to immediately prior to the termination of the Executive’s employment for the lesser of 12 months after termination or until
the Executive secures coverage from new employment. The period of COBRA health care continuation coverage provided under Section
4980B of the Code shall run concurrently with the foregoing 12-month period. In order to receive such benefits, the Executive or
his eligible dependents must continue to make any required co-payments, deductibles, premium sharing or other cost-splitting arrangements
the Executive was otherwise paying immediately prior to the date of termination and nothing herein shall require the Company to
be responsible for such items. If the Executive is a “specified employee” under Section 409A, the full cost of the
continuation or provision of employee group welfare benefits (other than medical or dental benefits) shall be paid by the Executive
until the earliest to occur of (i) the Executive’s death or (ii) the first day of the seventh month following the Executive’s
termination of employment, and such cost shall be reimbursed by the Company to, or on behalf of, the Executive in a lump sum cash
payment on the earlier to occur of the Executive’s death or the first day of the seventh month following the Executive’s
termination of employment, except that, as provided above, the Executive shall not receive reimbursement for any required co-payments,
deductibles, premium sharing or other cost-splitting arrangements the Executive was otherwise paying immediately prior to the date
of termination.

 

(d)          reimbursement
of reasonable, documented outplacement expenses actually incurred by the Executive and directly related to the termination of the
Executive’s employment with the Company, provided that (i) such expenses are incurred within the taxable year of the Executive’s
termination of employment; (ii) the aggregate amount of reimbursement available for such outplacement expenses shall be $30,000;
and (iii) reimbursement of such expenses shall be made by the Company within 10 business days after it receives documentation of
such expenses from the Executive, provided that no reimbursements shall be made after the end of the taxable year following the
taxable year in which the Executive’s employment with the Company ended.

 

(e)          50%
of all unvested stock options granted to the Executive under the Plans shall vest on the date of termination and become immediately
exercisable, and all vested stock options granted to the Executive under the Plans, including such stock options that become vested
pursuant to this Section 5.1(e), shall remain exercisable until the earlier of (i) two years from the date of termination or (ii)
the latest date that each stock option would otherwise expire pursuant to the terms of the applicable award agreement had the Executive’s
employment with the Company not terminated. The extension of the exercise period set forth in this Section 5.1(e) shall occur notwithstanding
any provision in the Plans or any related award agreements that provide for a lesser vesting or shorter period for exercise upon
termination by the Company without Cause; provided, however, and for the avoidance of doubt, nothing in this Agreement
shall be construed as or imply that this Agreement does or can grant greater rights than are allowed under the terms and conditions
of the Plans.

 

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Any payments by the Company under Section
5.1(b) above pursuant to a termination under Section 4.2 or 4.3 shall be reduced by any payments received by the Executive pursuant
to any of the Company’s employee welfare benefit plans providing for payments in the event of death or Disability to the
extent such reduction is permitted by, and does not trigger an impermissible change in time or form of payment under, Section 409A
of the Code.

 

5.2         Termination
for Cause; Voluntary Termination. If at any time during or after the Term the Executive’s employment with the Company
is terminated for Cause under Section 4.5 or upon a Voluntary Termination under Section 4.6, the Executive shall be entitled to
only the following:

 

(a)          any
unpaid base salary and accrued unpaid vacation then owing through the date of termination or Incentive Compensation that is as
of such date actually earned or owing under Article II, but not yet paid to the Executive, which amounts shall be paid to the Executive
within 30 days of the date of termination. Nothing in this provision is intended to imply that the Executive is entitled to any
partial or pro rata payment of Incentive Compensation on termination unless the Bonus Plan expressly provides as much under its
specific terms.

 

(b)          whatever
rights, if any, that are available to the Executive upon such a termination pursuant to the Plans or any award documents related
to any stock-based compensation such as stock options, stock appreciation rights or restricted stock grants. This Agreement does
not grant any greater rights with respect to such items than provided for in the Plans or the award documents in the event of any
termination for Cause or a Voluntary Termination.

 

5.3         Termination
following a Change in Control. The Executive shall have no specific right to terminate this Agreement or right to any severance
payments or other benefits solely as a result of a Change in Control. However, if during a Change in Control Period during or after
the Term, (a) the Executive terminates his employment with the Company due to a Good Reason Termination under Section 4.6, or (b)
the Company terminates the Executive’s employment pursuant to Section 4.4, in addition to any amounts the Executive is entitled
to receive under the Policy pursuant to Section 3.5, the Executive shall be entitled to the lump sum severance payment under Section
5.1 and all stock options, stock appreciation rights or similar stock-based rights granted to the Executive shall vest in full
and be immediately exercisable and any risk of forfeiture included in restricted or other stock grants previously made to the Executive
shall immediately lapse. The terms and rights with respect to such payments shall otherwise be governed by Section 5.1. No other
rights result from termination during a Change in Control Period; provided, however, that nothing in this Section
5.3 is intended to limit or impair the rights of the Executive under the Plans or any documents evidencing any stock-based compensation
awards in the event of a Change in Control if such Plans or award documents grant greater rights than are set forth herein.

 

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5.4         Release.
The Company’s obligation to pay or provide any benefits to the Executive following termination (other than in the event of
death pursuant to Section 4.2) is expressly subject to the requirement that he execute and not breach or rescind a release relating
to employment matters and the circumstances surrounding his termination in favor of the members of the Company Group and their
officers, directors and related parties and agents, in a form reasonably acceptable to the Company at the time of the Executive’s
termination of employment. The Company shall deliver such release to the Executive within three business days following his termination
of employment and the Executive shall be obligated to sign and return the release to the Company within 45 days of receipt of such
release to receive any benefits or payments following termination.

 

5.5         Other
Benefits. Except as expressly provided otherwise in this Article V, the provisions of this Agreement shall not affect
the Executive’s participation in, or terminating distributions and vested rights under, any pension, profit-sharing, insurance
or other employee benefit plan of the Company Group to which the Executive is entitled pursuant to the terms of such plans, or
expense reimbursements he is otherwise entitled to under Section 3.4.

 

5.6         No
Mitigation. It will be difficult, and may be impossible, for the Executive to find reasonably comparable employment following
the termination of the Executive’s employment, and the protective provisions under Article VI contained herein will further
limit the employment opportunities for the Executive. In addition, the Company’s severance pay policy applicable in general
to its salaried employees does not provide for mitigation, offset or reduction of any severance payment received thereunder. Accordingly,
the parties hereto expressly agree that the payment of severance compensation in accordance with the terms of this Agreement will
be liquidated damages, and that the Executive shall not be required to seek other employment, or otherwise, to mitigate any payment
provided for hereunder.

 

5.7         Limitation;
No Other Rights. Any amounts due or payable under this Article V are in the nature of severance payments or liquidated
damages, or both, and the Executive agrees that such amounts shall fully compensate the Executive, his dependents, heirs and beneficiaries
and the estate of the Executive for any and all direct damages and consequential damages that they do or may suffer as a result
of the termination of the Executive’s employment, or both, and are not in the nature of a penalty. Notwithstanding the above,
no member of the Company Group shall be liable to the Executive under any circumstances for any consequential, incidental, punitive
or similar damages. The Executive expressly acknowledges that the payments and other rights under this Article V shall be
the sole monies or other rights to which the Executive shall be entitled to and such payments and rights will be in lieu of any
other rights or remedies he might have or otherwise be entitled to. In the event of any termination under this Article V,
the Executive hereby expressly waives any rights to any other amounts, benefits or other rights, including without limitation whether
arising under current or future compensation or severance or similar plans, agreements or arrangements of any member of the Company
Group (including as a result of changes in (or of) control or similar Change in Control events), unless the Executive’s entitlement
to participate or receive benefits thereunder has been expressly approved by the Board. Similarly, no one in the Company Group
shall have any further liability or obligation to the Executive following the date of termination, except as expressly provided
in this Agreement.

 

5.8         No
Right to Set Off. The Company shall not be entitled to set off against amounts payable to the Executive hereunder any amounts
earned by the Executive in other employment, or otherwise, after termination of his employment with the Company, or any amounts
which might have been earned by the Executive in other employment had he sought such other employment.

 

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5.9         Adjustments
Due to Excise Tax.

 

(a)          If
it is determined that any amount or benefit to be paid or payable to the Executive under this Agreement or otherwise in conjunction
with his employment (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise
in conjunction with his employment) would give rise to liability of the Executive for the excise tax imposed by Section 4999 of
the Code, as amended from time to time, or any successor provision (the “Excise Tax”), then the amount or benefits
payable to the Executive (the total value of such amounts or benefits, the “Payments”) shall be reduced by the
Company to the extent necessary so that no portion of the Payments to the Executive is subject to the Excise Tax. Such reduction
shall only be made if the net amount of the Payments, as so reduced (and after deduction of applicable federal, state, and local
income and payroll taxes on such reduced Payments other than the Excise Tax (collectively, the “Deductions”))
is greater than the excess of (1) the net amount of the Payments, without reduction (but after making the Deductions) over (2)
the amount of Excise Tax to which the Executive would be subject in respect of such Payments.

 

(b)          In
the event it is determined that the Excise Tax may be imposed on the Executive prior to the possibility of any reductions being
made pursuant to Section 5.9(a), the Company and the Executive agree to take such actions as they may mutually agree in writing
to take to avoid any such reductions being made or, if such reduction is not otherwise required by Section 5.9(a), to reduce the
amount of Excise Tax imposed.

 

(c)          The
independent public accounting firm serving as the Company’s auditing firm, or such other accounting firm, law firm or professional
consulting services provider of national reputation and experience reasonably acceptable to the Company and Executive (the “Accountants”)
shall make in writing in good faith all calculations and determinations under this Section 5.9, including the assumptions to be
used in arriving at any calculations. For purposes of making the calculations and determinations under this Section 5.9, the Accountants
and each other party may make reasonable assumptions and approximations concerning the application of Section 280G and Section
4999. The Company and Executive shall furnish to the Accountants and each other such information and documents as the Accountants
and each other may reasonably request to make the calculations and determinations under this Section 5.9. The Company shall bear
all costs the Accountants incur in connection with any calculations contemplated hereby.

 

VI.          PROTECTIVE
PROVISIONS

 

Since the Executive
will be serving as the Chief Financial Officer and Chief Administrative Officer and will have access to Confidential Information
of the Company Group, the Executive agrees to the following restrictive covenants.

 

6.1         Noncompetition.
Without the prior written consent of the Board (which may be withheld in the Board’s sole discretion), so long as the Executive
is an employee of the Company or any other member of the Company Group and for a one-year period thereafter (the “Restricted
Period”), the Executive agrees that he shall not anywhere in the Prohibited Area, for his own account or the benefit
of any other, engage or participate in or assist or otherwise be connected with a Competing Business. For the avoidance of doubt,
the Executive understands that this Section 6.1 prohibits the Executive from acting for himself or as an officer, employee, manager,
operator, principal, owner, partner, shareholder, advisor, consultant of, or lender to, any individual or other Person that is
engaged or participates in or carries out a Competing Business or is actively planning or preparing to enter into a Competing Business.
The parties agree that such prohibition shall not apply to the Executive’s passive ownership of not more than 5% of a publicly-traded
company.

 

6.2         No
Solicitation or Interference. During the Restricted Period (other than while an employee acting solely for the express benefit
of the Company Group), the Executive shall not, whether for his own account or for the account or benefit of any other Person,
throughout the Prohibited Area:

 

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(a)          request,
induce or attempt to influence (i) any customer of any member of the Company Group, who was a customer of any member of the Company
Group at any time during the two-year period prior to the Executive’s date of termination, to limit, curtail, cancel or terminate
any business it transacts with, or products or services it receives from or sells to, or (ii) any Person employed by (or otherwise
engaged in providing services for or on behalf of) any member of the Company Group to limit, curtail, cancel or terminate any employment,
consulting or other service arrangement, with any member of the Company Group. Such prohibition shall expressly extend to any hiring
or enticing away (or any attempt to hire or entice away) any employee of the Company Group;

 

(b)          solicit
from or sell to any customer any products or services that any member of the Company Group provides or is planning to provide to
such customer and that are the same as or substantially similar to the products or services that any member of the Company Group,
sold or provided while the Executive was employed with, or providing services to, any member of the Company Group;

 

(c)          contact
or solicit any customer for the purpose of discussing (i) services or products that are competitive with and the same or closely
similar to those offered by any member of the Company Group during the two-year period prior to the Executive’s date of termination,
or (ii) any past or present business of any member of the Company Group;

 

(d)          request,
induce or attempt to influence any supplier, distributor or other Person with which any member of the Company Group has a business
relationship or to limit, curtail, cancel or terminate any business it transacts with any member of the Company Group; or

 

(e)          otherwise
interfere with the relationship of any member of the Company Group with any Person which is, or within one-year prior to the Executive’s
date of termination was, doing business with, employed by or otherwise engaged in performing services for, any member of the Company
Group.

 

6.3         Confidential
Information. During the period of the Executive’s employment with the Company or any member of the Company Group and
at all times thereafter, the Executive shall hold in secrecy for the Company all Confidential Information that may come to his
knowledge, may have come to his attention or may have come into his possession or control while employed by the Company (or otherwise
performing services for any member of the Company Group). Notwithstanding the preceding sentence, the Executive shall not be required
to maintain the confidentiality of any Confidential Information which (a) is or becomes available to the public or others in the
industry generally (other than as a result of inappropriate disclosure or use by the Executive in violation of this Section 6.3)
or (b) the Executive is compelled to disclose under any applicable laws, regulations or directives of any government agency, tribunal
or authority having jurisdiction in the matter or under subpoena. Except as expressly required in the performance of his duties
to the Company under this Agreement, the Executive shall not use for his own benefit or disclose (or permit or cause the disclosure
of) to any Person, directly or indirectly, any Confidential Information unless such use or disclosure has been specifically authorized
in writing by the Company in advance. During the Executive’s employment and as necessary to perform his duties under Section
1.1, the Company will provide and grant the Executive access to the Confidential Information. The Executive recognizes that any
Confidential Information is of a highly competitive value, will include Confidential Information not previously provided to the
Executive and that the Confidential Information could be used to the competitive and financial detriment of any member of the Company
Group if misused or disclosed by the Executive. The Company promises to provide access to the Confidential Information only in
exchange for the Executive’s promises contained herein, expressly including the covenants in Sections 6.1, 6.2 and 6.4.

 

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6.4         Inventions.

 

(a)          The
Executive shall promptly and fully disclose to the Company any and all ideas, improvements, discoveries and inventions, whether
or not they are believed to be patentable (“Inventions”), that the Executive conceives of or first actually
reduces to practice, either solely or jointly with others, during the Executive’s employment with the Company or any other
member of the Company Group, and that relate to the business now or thereafter carried on or contemplated by any member of the
Company Group or that result from any work performed by the Executive for any member of the Company Group.

 

(b)          The
Executive acknowledges and agrees that all Inventions shall be the sole and exclusive property of the Company (or member of the
Company Group) and are hereby assigned to the Company (or applicable member of the Company Group). During the term of the Executive’s
employment with the Company (or any other member of the Company Group) and thereafter, whenever requested to do so by the Company,
the Executive shall take such action as may be requested to execute and assign any and all applications, assignments and other
instruments that the Company shall deem necessary or appropriate in order to apply for and obtain Letters Patent of the United
States and/or of any foreign countries for such Inventions and in order to assign and convey to the Company (or any other member
of the Company Group) or their nominees the sole and exclusive right, title and interest in and to such Inventions.

 

(c)          The
Company acknowledges and agrees that the provisions of this Section 6.4 do not apply to an Invention: (i) for which no equipment,
supplies, or facility of any member of the Company Group or Confidential Information was used; (ii) that was developed entirely
on the Executive’s own time and does not involve the use of Confidential Information; (iii) that does not relate directly
to the business of any member of the Company Group or to the actual or demonstrably anticipated research or development of any
member of the Company Group; and (iv) that does not result from any work performed by the Executive for any member of the Company
Group.

 

6.5         Return
of Documents and Property. Upon termination of the Executive’s employment for any reason, the Executive (or his heirs
or personal representatives) shall immediately deliver to the Company (a) all documents and materials containing Confidential Information
(including without limitation any “soft” copies or computerized or electronic versions thereof) or otherwise containing
information relating to the business and affairs of any member of the Company Group (whether or not confidential), and (b) all
other documents, materials and other property belonging to any member of the Company Group that are in the possession or under
the control of the Executive.

 

6.6         Reasonableness;
Remedies. The Executive acknowledges that each of the restrictions set forth in this Article VI are reasonable and necessary
for the protection of the Company’s business and opportunities (and those of the Company Group) and that a breach of any
of the covenants contained in this Article VI would result in material irreparable injury to the Company and the other members
of the Company Group for which there is no adequate remedy at law and that it will not be possible to measure damages for such
injuries precisely. Accordingly, the Company and any member of the Company Group shall be entitled to the remedies of injunction
and specific performance, or either of such remedies, as well as all other remedies to which any member of the Company Group may
be entitled, at law, in equity or otherwise, without the need for the posting of a bond or by the posting of the minimum bond that
may otherwise be required by law or court order.

 

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6.7         Extension;
Survival. The Executive and the Company agree that the time periods identified in this Article VI, including, without limitation,
the Restricted Period, will be stayed, and the Company’s obligation to make any payments or provide any benefits under Article V
shall be suspended, during the period of any breach or violation by the Executive of the covenants contained herein. The parties
further agree that this Article VI shall survive the termination or expiration of this Agreement for any reason. The Executive
acknowledges that his agreement to each of the provisions of this Article VI is fundamental to the Company’s willingness
to enter into this Agreement and for it to provide for the severance and other benefits described in Article V, none of which
the Company was required to do prior to the date hereof. Further, it is the express intent and desire of the parties for each provision
of this Article VI to be enforced to the fullest extent permitted by law. If any part of this Article VI, or any provision hereof,
is deemed illegal, void, unenforceable or overly broad (including as to time, scope and geography), the parties express desire
is that such provision be reformed to the fullest extent possible to ensure its enforceability or if such reformation is deemed
impossible then such provision shall be severed from this Agreement, but the remainder of this Agreement (expressly including the
other provisions of this Article VI) shall remain in full force and effect.

 

VII.         MISCELLANEOUS

 

7.1         Notices.
Any notice required or permitted under this Agreement shall be given in writing and shall be deemed to have been effectively made
or given if personally delivered, or if sent via U.S. mail or recognized overnight delivery service or sent via confirmed e-mail
or facsimile to the other party at its address set forth below in this Section 7.1, or at such other address as such party may
designate by written notice to the other party hereto. Any effective notice hereunder shall be deemed given on the date personally
delivered, three business days after mailed via U.S. mail or one business day after it is sent via overnight delivery service or
via confirmed e-mail or facsimile, as the case may be, to the following address:

 

If to the Company:

 

InspireMD, Inc.

Attn: Chief Executive Officer

4 Menorat Hamaor St.

Tel Aviv, Israel 67448

Telephone: +972 3 691 7691

Facsimile: +972 3 691 7692

 

With a copy which shall not constitute
notice to:

 

Haynes and Boone, LLP

Attn: Rick A. Werner, Esq.

30 Rockefeller Plaza, 26th
Floor

New York, NY 10112-0015

Telephone No.: (212) 659-4974

Facsimile No.: (212) 884-8234

Email: rick.werner@haynesboone.com

 

If to the Executive:

 

At the most recent address on file
with the Company

 

7.2         Legal
Fees. The parties hereto agree that any dispute or controversy arising under or in connection with this Agreement shall be
resolved exclusively and finally by binding arbitration in New York, New York, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The Company
and the Executive each shall be responsible for their own fees, costs and expenses.

 

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7.3         Severability.
If an arbitrator or a court of competent jurisdiction determines that any term or provision hereof is void, invalid or otherwise
unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired and (b) such arbitrator or court shall replace
such void, invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest
to expressing the intention of the void, invalid or unenforceable term or provision. For the avoidance of doubt, the parties expressly
intend that this provision extend to Article VI of this Agreement.

 

7.4         Entire
Agreement. This Agreement and the Indemnity Agreement by and between the Company and the Executive dated March 31, 2011 (the
“Indemnity Agreement”) represents the entire agreement of the parties with respect to the subject matter
hereof and shall supersede any and all previous contracts, arrangements or understandings between the Company, the Subsidiary and
the Executive relating to the Executive’s employment by the Company, including, without limitation the Prior Agreement. Nothing
in this Agreement shall modify or alter the Indemnity Agreement or alter or impair any of the Executive’s rights under the
Plans or related award agreements. In the event of any conflict between this Agreement and any other agreement between the Executive
and the Company (or any other member of the Company Group), this Agreement shall control.

 

7.5         Amendment;
Modification. Except for increases in base salary, and adjustments with respect to Incentive Compensation, made as provided
in Article II, or changes that are expressly required by applicable law, this Agreement may be amended at any time only by mutual
written agreement of the Executive and the Company; provided, however, that, notwithstanding any other provision
of this Agreement, the Plans (or any award documents under the Plans) or the Indemnity Agreement, the Company may reform this Agreement,
the Plans (or any award documents under the Plans), the Indemnity Agreement, or any provision thereof (including, without limitation,
an amendment instituting a six-month waiting period before a distribution) or otherwise as contemplated by Section 7.16 below.

 

7.6         Withholding.
The Company shall be entitled to withhold, deduct or collect or cause to be withheld, deducted or collected from payment any amount
of withholding taxes required by law, statutory deductions or collections with respect to payments made to the Executive in connection
with his employment, termination (including Article V) or his rights hereunder, including as it relates to stock-based compensation.

 

7.7           Representations.

 

(a)          The
Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by the
Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order,
judgment or decree to which the Executive is a party or by which he is bound, and (ii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance
with its terms. The Executive hereby acknowledges and represents that he has consulted with legal counsel regarding his rights
and obligations under this Agreement and that he fully understands the terms and conditions contained herein.

 

(b)          The
Company hereby represents and warrants to the Executive that (i) the execution, delivery and performance of this Agreement by the
Company do not and shall not conflict with, breach, violate or cause a default under any material contract, agreement, instrument,
order, judgment or decree to which the Company is a party or by which it is bound and (ii) upon the execution and delivery of this
Agreement by the Executive, this Agreement shall be the valid and binding obligation of the Company, enforceable in accordance
with its terms.

 

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7.8         Governing
Law; Jurisdiction. This Agreement shall be construed, interpreted, and governed in accordance with the laws of the State of
New York without regard to any provision of that State’s rules on the conflicts of law that might make applicable the law
of a jurisdiction other than that of the State of New York. Except as otherwise provided in Section 7.2, all actions or proceedings
arising out of this Agreement shall exclusively be heard and determined in state or federal courts in the State of New York having
appropriate jurisdiction. The parties expressly consent to the exclusive jurisdiction of such courts in any such action or proceeding
and waive any objection to venue laid therein or any claim for forum nonconveniens.

 

7.9         Successors.
This Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by the Executive, the Company, and their
respective heirs, executors, administrators, legal representatives, successors, and assigns. In the event of a Change in Control,
the provisions of this Agreement shall be binding upon and inure to the benefit of the Company or entity resulting from such Change
in Control or to which the assets shall be sold or transferred, which entity from and after the date of such Change in Control
shall be deemed to be the Company for purposes of this Agreement. In the event of any other assignment of this Agreement by the
Company, the Company shall remain primarily liable for its obligations hereunder.

 

7.10       Nonassignability.
Neither this Agreement nor any right or interest hereunder shall be assignable by the Executive, his beneficiaries, dependents
or legal representatives without the Company’s prior written consent; provided, however, that nothing in this
Section 7.10 shall preclude (a) the Executive from designating a beneficiary to receive any benefit payable hereunder upon his
death or (b) the executors, administrators or other legal representatives of the Executive or his estate from assigning any rights
hereunder to the Person(s) entitled thereto.

 

7.11       No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation in favor of any third party, or to execution,
attachment, levy or similar process or assignment by operation of law in favor of any third party, and any attempt, voluntary or
involuntary, to effect any such action shall be null, void and of no effect.

 

7.12       Waiver.
No term or condition of this Agreement shall be deemed to have been waived, nor there be any estoppel against the enforcement of
any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other
than that specifically waived.

 

7.13       Construction.
The headings of articles or sections herein are included solely for convenience of reference and shall not control the meaning
or interpretation of any of the provisions of this Agreement. References to days found herein shall be actual calendar days and
not business days unless expressly provided otherwise.

 

7.14       Counterparts.
This Agreement may be executed by any of the parties hereto in counterparts, each of which shall be deemed to be an original, but
all such counterparts shall together constitute one and the same instrument.

 

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7.15       Effectiveness.
This Agreement shall be effective as of the Effective Date when signed by the Executive and the Company.

 

7.16       Section
409A of the Code.

 

(a)          It
is the intent of the parties that payments and benefits under this Agreement are exempt from the provisions of Section 409A of
the Code and, to the extent not so exempt, comply with Section 409A of the Code and, accordingly, to interpret, to the maximum
extent permitted, this Agreement to be in compliance therewith. If the Executive notifies the Company in writing (with specificity
as to the reason therefore) that the Executive believes that any provision of this Agreement (or of any award of compensation,
including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Section 409A
of the Code and the Company concurs with such belief or the Company (without any obligation whatsoever to do so) independently
makes such determination, the parties shall, in good faith, reform such provision to try to comply with Section 409A of the Code
through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A of the Code. To the
extent that any provision hereof is modified by the parties to try to comply with Section 409A of the Code, such modification shall
be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent of the applicable provision
without violating the provisions of Section 409A of the Code. Notwithstanding the foregoing, the Company shall not be required
to assume any economic burden in connection therewith.

 

(b)          If
the Executive is deemed on the date of “separation from service” to be a “specified employee” within the
meaning of that term under Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is specified
as subject to this Section, such payment or benefit shall be made or provided at the date which is the earlier of (A) the expiration
of the six (6)-month period measured from the date of such “separation from service” of the Executive, and (B) the
date of the Executive’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments
and benefits delayed pursuant to this Section 7.16 (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits
due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. If a
payment is to be made promptly after a date, it shall be made within sixty (60) days thereafter.

 

(c)          Any
expense reimbursement under this Agreement shall be made promptly upon Executive’s presentation to the Company of evidence
of the fees and expenses incurred by the Executive and in all events on or before the last day of the taxable year following the
taxable year in which such expense was incurred by the Executive, and no such reimbursement or the amount of expenses eligible
for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year,
except for (i) the limit on the amount of outplacement costs and (ii) any limit on the amount of expenses that may be reimbursed
under an arrangement described in Section 105(b) of the Code. If necessary to comply with Section 409A of the Code, the Executive
will not be deemed to terminate employment unless such termination of employment also qualifies as a “separation from service”
under Treasury Regulation Section 1.409A-1(h). Each payment of severance of other benefits that is subject to Section 409A of the
Code is considered a separate payment under Treasury Regulation Section 1.409A-2(b).

 

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7.17       Survival.
As provided in Section 1.3 with respect to expiration of the Term, Articles VI and VII and specified parts of Articles IV and V,
including parts relating to the Company’s obligations to provide payments or benefits to the Executive upon termination of
employment or expiration of the Term, shall survive the termination or expiration of this Agreement for any reason.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the Effective Date.

 

	INSPIREMD, INC.	 	EXECUTIVE	 
	 	 	 	 
	By: 	/s/ Alan W. Milinazzo	 	/s/ Craig Shore	 
	 	Alan W. Milinazzo	 	Craig Shore, an individual	 
	Its:	President and Chief Executive Officer	 	 	 

 

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EXHIBIT A

 

Definitions

 

For purposes of this
Agreement, the following capitalized terms have the meanings set forth below:

 

“Base Amount”
shall mean an amount equal to the sum of:

 

(i)          the
Executive’s annual base salary at the highest annual rate in effect at any time during the Term; and

 

(ii)         the
greater of (i) the Executive’s target bonus under Section 2.3 in effect during the fiscal year in which termination of employment
occurs, or (ii) the average of the Incentive Compensation (as defined in Section 2.3) actually earned by the Executive (A) with
respect to the two consecutive annual Incentive Compensation periods ending immediately prior to the year in which termination
of the Executive’s employment with the Company occurs or, (B) if greater, with respect to the two consecutive annual Incentive
Compensation periods ending immediately prior to the Change in Control Date; provided, however, that if the Executive was not eligible
for Incentive Compensation for such two consecutive Incentive Compensation periods, the amount included pursuant to this clause
(ii) shall be the Incentive Compensation paid to the Executive for the most recent annual Incentive Compensation period. In the
event the Incentive Compensation paid to the Executive for any such prior Incentive Compensation period represented a prorated
full-year amount because the Executive was not employed by the Company for the entire Incentive Compensation period, the Incentive
Compensation paid to the Executive for such period for purposes of this clause (ii) shall be an amount equal to such prorated full-year
amount.

 

“Board”
shall mean the Board of Directors of the Company. Any obligation of the Board other than termination for Cause under this Agreement
may be delegated to an appropriate committee of the Board, including its compensation committee, and references to the Board herein
shall be references to any such committee, as appropriate.

 

“Cause”
shall mean termination of the Executive’s employment because of the Executive’s: (i) involvement in fraud, misappropriation
or embezzlement related to the business or property of the Company; (ii) conviction for, or guilty plea to, or plea of nolo contendere
to, a felony or crime of similar gravity in the jurisdiction in which such conviction or guilty plea occurs; (iii) a material breach
by the Executive of this Agreement, and the duties described therein, or any other agreement to which the Executive and the Company
or a member of the Company Group are parties, including, without limitation, wrongful disclosure of Confidential Information or
violation of Article VI of this Agreement; (iv) commission by the Executive of acts that are dishonest and demonstrably injurious
to a member of the Company Group, monetarily or otherwise; (v) any violation by the Executive of any fiduciary duties owed by him
to the Company or a member of the Company Group; (vi) the Executive’s failure or refusal to satisfactorily perform the duties
and responsibilities required to be performed by the Executive under the terms of this Agreement or necessary to carry out the
Executive’s job duties; and (vii) willful or material violation of, or willful or material noncompliance with, any securities
law, rule or regulation or stock exchange listing rule adversely affecting the Company Group, including, without limitation (a)
if the Executive has undertaken to provide any chief financial officer certification required under the Sarbanes-Oxley Act of 2002,
including the rules and regulations promulgated thereunder (the “Sarbanes-Oxley Act”), and he willfully fails
to take reasonable and appropriate steps to determine whether or not the certificate was accurate or otherwise in compliance with
the requirements of the Sarbanes-Oxley Act or (b) the Executive’s willful failure to establish and administer effective systems
and controls applicable to his area of responsibility necessary for the Company to timely and accurately file reports pursuant
to Section 13 or 15(d) of the Exchange Act.

 

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“Change
in Control” means the first to occur of the following events:

 

(i)          A
change in ownership of the Company. On the date any “Person” (as defined in subparagraph (iv) below) acquires ownership
of stock of the Company that, together with stock held by such Person, constitutes more than fifty percent (50%) of the total fair
market value or total voting power of the stock of the Company; provided, however, that there shall be no Change in Control and
this subparagraph (i) shall not apply if such acquiring Person is a corporation and 2/3’s of the Board of Directors of the
acquiring Person immediately after the transaction consists of individuals who constituted a majority of the Board immediately
prior to the acquisition of such fifty percent (50%) or more total fair market value or total voting power; and provided, further,
that if any Person is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company, the acquisition of additional stock by the same Person is not considered to be a Change in Control; or

 

(ii)         A
change in the effective control of the Company. On the date that either: (a) any Person acquires (or has acquired during the twelve
(12)-month period ending on the date of the most recent acquisition by such Person) ownership of stock of the Company possessing
thirty-five percent (35%) or more of the total voting power of the stock of the Company; or on the date a majority of members of
the Board is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority
of the Board before the date of the appointment or election; provided, however, that any such director shall not be considered
to be endorsed by the Board if his or her initial assumption of office occurs as a result of an actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board.

 

(iii)        A
change in the ownership of a substantial portion of the Company's assets. On the date any Person acquires (or has acquired during
the twelve (12)-month period ending on the date of the most recent acquisition by such Person) assets from the Company that have
a total gross fair market value equal to or more than eighty percent (80%) of the total gross fair market value of all of the assets
of the Company immediately before such acquisition or acquisitions. For this purpose, gross fair market value means the value of
the assets of the Company or the value of the assets being disposed of, determined without regard to any liabilities associated
with such assets. However, there is no Change in Control when there is such a sale or transfer to (i) a shareholder of the Company
(immediately before the asset transfer) in exchange for or with respect to the Company’s then outstanding stock; (ii) an
entity, at least fifty percent (50%) of the total value or voting power of the stock of which is owned, directly or indirectly,
by the Company; (iii) a Person that owns directly or indirectly, at least fifty percent (50%) of the total value or voting power
of the outstanding stock of the Company; or (iv) an entity, at least fifty percent (50%) of the total value or voting power of
the stock of which is owned, directly or indirectly, by a Person that owns, directly or indirectly, at least fifty percent (50%)
of the total value or voting power of the outstanding stock of the Company.

 

(iv)        For
purposes of subparagraphs (i), (ii) and (iii) above, “Person” shall have the meaning given in Code Section 7701(a)(1).
Person shall include more than one Person acting as a group as defined by the final Treasury Regulations issued under Section 409A
of the Code.

 

“Change
in Control Date” shall mean the date on which a Change in Control occurs.

 

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“Change
in Control Period” shall mean the 24 month period commencing on the Change in Control Date; provided, however, if
the Company terminates the Executive’s employment with the Company prior to the Change in Control Date, and it is reasonably
demonstrated that the Executive’s (i) employment was terminated at the request of an unaffiliated third party who has taken
steps reasonably calculated to effect a Change in Control or (ii) termination of employment otherwise arose in connection with
or in anticipation of the Change in Control, then the “Change in Control Period” shall mean the 24 month period beginning
on the date immediately prior to the date of the Executive’s termination of employment with the Company.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Company
Group” shall mean the Company, together with its subsidiaries including the Subsidiary.

 

“Comparable
Offer of Employment” shall mean: (i) that the proposed compensation, severance and benefits, in the aggregate, to
be paid by the Company or any successor to the Company in a Change in Control (including, without limitation the purchaser of all
or substantially all of the Company’s assets) offering employment are commensurate with the compensation, severance and benefits
payable to the Executive pursuant to this Agreement; (ii) the Executive incurs no demotion to his position with the Company from
the position the Executive held immediately prior to the Change in Control Date; or (iii) the Executive’s principal place
of employment has not changed to any location that is more than fifty (50) miles from his principal place of work immediately prior
to the Change in Control Date, without the prior written consent of the Executive.

 

“Competing
Business” means any business or activity that (i) competes with any member of the Company Group for which the Executive
performed services or the Executive was involved in for purposes of making strategic or other material business decisions and (ii)
involves (A) the same or substantially similar types of products or services (individually or collectively) manufactured, marketed
or sold by any member of the Company Group during Term or (B) products or services so similar in nature to that of any member of
the Company Group during Term (or that any member of the Company Group will soon thereafter offer) that they would be reasonably
likely to displace substantial business opportunities or customers of the Company Group. Competing Business shall include, but
not be limited to, any entity or person engaged in the business of manufacturing and selling medical devices for the intravascular
or intra coronary treatment of vascular diseases, including stents and mesh technologies, and any other business the Company Group
is engaged in during Executive’s employment or that was seriously considered by the Company Group within the two years preceding
the termination of this Agreement.

 

“Confidential
Information” shall include Trade Secrets and confidential and proprietary information acquired by the Executive in
the course and scope of his activities under this Agreement, including information acquired from third parties, that (i) is not
generally known or disseminated outside the Company Group (such as non-public information), (ii) is designated or marked by any
member of the Company Group as “confidential” or reasonably should be considered confidential or proprietary, or (iii)
any member of the Company Group indicates through its policies, procedures, or other instructions should not be disclosed to anyone
outside the Company Group. Without limiting the foregoing definitions, some examples of Confidential Information under this Agreement
include (a) matters of a technical nature, such as scientific, trade or engineering secrets, “know-how”, formulae,
secret processes, inventions, and research and development plans or projects regarding existing and prospective customers and products
or services, (b) information about costs, profits, markets, sales, customer lists, customer needs, customer preferences and customer
purchasing histories, supplier lists, internal financial data, personnel evaluations, non-public information about medical devices
or products of any member of the Company Group (including future plans about them), information and material provided by third
parties in confidence and/or with nondisclosure restrictions, computer access passwords, and internal market studies or surveys
and (c) and any other information or matters of a similar nature.

 

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“Disability”
as used in this Agreement shall have the meaning given that term by any disability insurance the Company carries at the time of
termination that would apply to the Executive. Otherwise, the term “Disability” shall mean the inability of the Executive
to perform his duties and responsibilities under this Agreement as a result of a physical or mental illness, disease or personal
injury he has incurred. Any dispute as to whether or not the Executive has a “Disability” for purposes of this Agreement
shall be resolved by a physician reasonably satisfactory to the Chief Executive Officer and the Executive (or his legal representative,
if applicable). If the Chief Executive Officer and the Executive (or his legal representative, if applicable) are unable to agree
on a physician, then each shall select one physician and those two physicians shall pick a third physician and the determination
of such third physician shall be binding on the parties.

 

“Good Reason”
shall mean the purchaser of the Company’s assets or common stock in a Change in Control or the surviving entity of a Change
in Control does not offer the Executive a Comparable Offer of Employment. The Executive shall not have “Good Reason”
for purposes of this Agreement if the Executive receives a Comparable Offer of Employment, but refuses to accept such offer. Further,
“Good Reason” shall only exist if the Executive provides written notice to the Company (or its successor in interest
in a Change in Control) of the terms that the Executive alleges cause the offer to fail to be a Comparable Offer of Employment
within thirty (30) days of the Executive’s receipt of such offer, the Company (or its successor in interest) fails to modify
the offer to be a Comparable Offer of Employment within thirty (30) days of its receipt of such notice, and the Executive terminates
his employment no later than thirty (30) days following the end of such cure period.

 

“Person”
shall include individuals or entities such as corporations, partnerships, companies, firms, business organizations or enterprises,
and governmental or quasi-governmental bodies.

 

“Prohibited
Area” means North America, South America and the European Union, which Prohibited Area the parties have agreed to
as a result of the fact that those are the geographic areas in which the members of the Company Group conduct a preponderance of
their business and in which the Executive provides substantive services to the benefit of the Company Group.

 

“Section
409A” shall mean Section 409A of the Code and regulations promulgated thereunder (and any similar or successor federal
or state statute or regulations).

 

“Subsidiary”
shall mean InspireMD Ltd., a wholly-owned subsidiary of the Company.

 

“Trade
Secrets” are information of special value, not generally known to the public that any member of the Company Group
has taken steps to maintain as secret from Persons other than those selected by any member of the Company Group.

 

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