Document:

EX-10.2

 Exhibit 10.2 

Execution Version 
 FIRST
AMENDMENT TO AMENDED AND RESTATED 
 CREDIT AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT (this “Agreement”) is dated as of
June 20, 2016, by and among OCULAR THERAPEUTIX, INC., a Delaware corporation, (“Borrower”), MIDCAP FUNDING III TRUST, a Delaware statutory trust, in its capacity as administrative agent (“Agent”)
for the lenders under the Credit Agreement (as defined below) (“Lenders”), and the Lenders. 
 W I T
N E S S E T H: 
 WHEREAS, Borrower, Lenders and Agent are parties to that
certain Amended and Restated Credit and Security Agreement, dated as of December 3, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein have
the meanings given to them in the Credit Agreement except as otherwise expressly defined herein), pursuant to which Lenders have agreed to provide to Borrower certain loans and other extensions of credit in accordance with the terms and conditions
thereof; 
 WHEREAS, Borrower, Agent and Lenders desire to amend certain provisions of the Credit Agreement in accordance with, and
subject to, the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises, the covenants and
agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, Lenders and Agent hereby agree as follows: 

1. Acknowledgment of Obligations. Borrower hereby acknowledges, confirms and agrees that all Credit Extensions made prior to the
date hereof, together with interest accrued and accruing thereon, and fees, costs, expenses and other charges owing by Borrower to Agent and Lenders under the Credit Agreement and the other Financing Documents, are unconditionally owing by Borrower
to Agent and Lenders, without offset, defense or counterclaim of any kind, nature or description whatsoever except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
creditor’s rights generally. 

 2. Amendments to Credit Agreement. Subject to the terms and conditions of this
Agreement, including, without limitation, the conditions to effectiveness set forth in Section 5 below, the Credit Agreement is hereby amended as follows: 

(a) Section 15 of the Credit Agreement is hereby amended by inserting the following new definition of Specified SVB Letter
of Credit to such section in appropriate alphabetical sequence: 
 ““Specified SVB Letter of Credit” means
letter of credit number SVBSF011096 issued by Silicon Valley Bank for the account of Borrower and for the benefit of WS NV 15 Crosby Drive, LLC, Borrower’s landlord for its location at 15 Crosby Drive, Bedford, Massachusetts, in the initial
stated amount of $1,500,000 and any renewal thereof or replacement letter of credit issued by Silicon Valley Bank for the same purpose and for the same or a lesser amount.” 

(b) Section 15 of the Credit Agreement is hereby amended by deleting clause (k) of the definition of Permitted Liens
contained in such section and inserting the following in lieu thereof: 
 “(k) Liens in favor of Silicon Valley Bank on
cash and/or securities in connection with the provision by Silicon Valley Bank to Borrower of cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards and check cashing services)
and letters of credit, in an aggregate amount not to exceed (1) at any time while the Specified SVB Letter of Credit remains outstanding, the lesser of (a) the amount outstanding for such cash management services and letters of credit and
(b) the sum of (i) the then current stated amount of the Specified SVB Letter of Credit plus (ii) Four Hundred Thousand Dollars ($400,000.00), and (2) at any other time, the lesser of (a) the amount outstanding for
such cash management services and letters of credit and (b) Four Hundred Thousand Dollars ($400,000.00).” 
 3. No Other
Amendments. Except for the amendments set forth and referred to in Section 2, the Credit Agreement and the other Financing Documents shall remain unchanged and in full force and effect and Borrower hereby ratifies and reaffirms
all of its obligations under the Credit Agreement and the other Financing Documents as amended by this Agreement. Nothing in this Agreement is intended, or shall be construed, to constitute a novation or an accord and satisfaction of any of
Borrower’s Obligations or to modify, affect or impair the perfection or continuity of Agent’s security interests in, security titles to or other liens, for the benefit of itself and the Lenders, on any Collateral for the Obligations. 

4. Representations and Warranties. To induce Agent and Lenders to enter into this Agreement, Borrower does hereby warrant,
represent and covenant to Agent and Lenders that (i) each representation or warranty of Borrower set forth in the Credit Agreement and other Financing Documents are hereby restated and reaffirmed as true, accurate and complete in all material
respects on and as of the date hereof as if such representation or warranty were made on and as of the date hereof (provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof, and provided, further, that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date),
(ii) both before and after giving effect to this Agreement, no Default or Event of 

  
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Default has occurred and is continuing and (iii) Borrower has the power and is duly authorized and has obtained all necessary consents and has taken all necessary actions to enter into,
deliver and perform this Agreement and this Agreement is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms. 

5. Condition Precedent to Effectiveness of this Agreement. This Agreement shall become effective as of the date (the
“Amendment Effective Date”) upon which: 
 (a) Borrower shall have reimbursed Agent and Lenders for all
fees, costs and expenses presented as of the Amendment Effective Date; 
 (b) Agent shall notify Borrower in writing that
Agent has received one or more counterparts of this Agreement duly executed and delivered by Borrower, Agent and Lenders, in form and substance satisfactory to Agent and Lenders; and 

(c) Agent shall have received all other documents and instruments as Agent or any Lender may reasonably deem necessary or
appropriate to effectuate the intent and purpose of this Agreement. 
 6. Release. 

(a) In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Borrower, on behalf of itself and each of its Affiliates and Subsidiaries and each of their respective successors, assigns, and other legal representatives, hereby absolutely, unconditionally
and irrevocably releases, remises and forever discharges Agent and each Lender and their respective successors and assigns, and their respective present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers,
attorneys, employees, agents and other representatives (Agent, Lenders and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all
demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of
set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at
law and in equity, which Borrower or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause
or thing whatsoever which arises at any time on or prior to the Amendment Effective Date, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Credit Agreement or any of the other Financing
Documents or transactions thereunder or related thereto. 
 (b) Borrower understands, acknowledges and agrees that its
release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release. 

  
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 (c) Borrower agrees that no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 

7. Covenant Not To Sue. Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby
absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and
discharged by Borrower pursuant to Section 6 above. If Borrower or any of its successors, assigns or other legal representatives violates the foregoing covenant, Borrower, for itself and its successors, assigns and legal representatives,
agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by any Releasee as a result of such violation. 

8. Advice of Counsel. Each of the parties represents to each other party hereto that it has discussed this Agreement with its
counsel. 
 9. Severability of Provisions. In case any provision of or obligation under this Agreement shall be invalid,
illegal or unenforceable in any applicable jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby. 
 10. Counterparts. This Agreement may be executed in multiple counterparts (including by electronic mail (pdf)
transmittal of executed signature pages), each of which shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. 

11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
MARYLAND APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS. 

12. Entire Agreement. The Credit Agreement as and when amended through this Agreement embodies the entire agreement between the
parties hereto relating to the subject matter thereof and supersedes all prior agreements, representations and understandings, if any, relating to the subject matter thereof. 

13. No Strict Construction, Etc. The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any provisions of this Agreement. Time is of the essence for this Agreement. 

  
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 14. Costs and Expenses. Borrower absolutely and unconditionally agrees to pay or
reimburse upon demand for all reasonable fees, costs and expenses incurred by Agent and the Lenders in connection with the preparation, negotiation, execution and delivery of this Agreement and any other Financing Documents or other agreements
prepared, negotiated, executed or delivered in connection with this Agreement or transactions contemplated hereby. 

[Remainder of page intentionally blank; signature pages follow.] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the day and year specified at the beginning hereof. 
  

			
	BORROWER:
	
	OCULAR THERAPEUTIX, INC.
		
	By:	 	/s/ W. Bradford Smith                 (SEAL)
	Name:	 	Brad Smith
	Title:	 	Chief Financial Officer

 [Signatures continued on following page] 

  
 FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

			
	AGENT:
	
	MIDCAP FUNDING III TRUST,
	as Agent for Lenders
	
	By: Apollo Capital Management, L.P.,
	its investment manager
	
	By: Apollo Capital Management GP, LLC,
	its general partner
		
	By:	 	/s/ Maurice Amsellem                 (SEAL)
	Name:	 	Maurice Amsellem
	Title:	 	Its Authorized Signatory

 [Signatures continued on following page] 

  
 FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

			
	LENDERS:
	
	MIDCAP FUNDING III TRUST
	
	By: Apollo Capital Management, L.P.,
	its investment manager
	
	By: Apollo Capital Management GP, LLC,
	its general partner
		
	By:	 	/s/ Maurice Amsellem             (SEAL)
	Name:	 	Maurice Amsellem
	Title:	 	Its Authorized Signatory

 [Signatures continued on following page] 

  
 FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

			
	SILICON VALLEY BANK
		
	By:	 	/s/ Clark Hayes                 (SEAL)
	Name:	 	Clark Hayes
	Title:	 	Director, Healthcare and Life Sciences

 [Signatures continued on following page] 

  
 FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AND SECURITY AGREEMENT 
 SIGNATURE PAGE 

			
	FLEXPOINT MCLS SPV LLC
		
	By:	 	/s/ Daniel Edelman                 (SEAL)
	Name:	 	Daniel Edelman
	Title:	 	Vice President

  
 FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AND SECURITY AGREEMENT 
 SIGNATURE PAGETHE
REGISTERED HOLDER OF THIS UNIT PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT THE SECURITIES EVIDENCED BY THIS UNIT PURCHASE
OPTION MAY NOT BE SOLD, TRANSFERED OR ASSIGNED EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS UNIT PURCHASE OPTION
AGREES THAT THE SECURITIES EVIDENCED BY THIS UNIT PURCHASE OPTION WILL NOT BE SOLD, TRANSFERED, ASSIGNED, PLEDGED OR HYPOTHECATED,
OR BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC
DISPOSITION OF THIS UNIT PURCHASE OPTION OR THE SECURITIES EVIDENCED BY THIS UNIT PURCHASE OPTION, FOR A PERIOD OF ONE HUNDRED
EIGHTY (180) DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN TO ANY MEMBER PARTICIPATING IN THE OFFERING
AND THE OFFICERS OR PARTNERS THEREOF, IF ALL SECURITIES SO TRANSFERRED REMAIN SUBJECT TO THE LOCK-UP RESTRICTION SET FORTH ABOVE
FOR THE REMAINDER OF THE TIME PERIOD.

 

UNIT
PURCHASE OPTION

 

FOR
THE PURCHASE OF 15,484 UNITS

 

OF
INSPIREMD, INC.

 

1.
Unit Purchase Option.

 

THIS
CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf of Dawson James Securities, Inc. (“Dawson”
or “Holder”), as registered owner of this Unit Purchase Option, to InspireMD, Inc. (the “Company”),
Holder is entitled, at any time or from time to time commencing on the 180th day after the effective date (the “Effective
Date”) of the registration statement (the “Registration Statement”) pursuant to which certain units
are offered for sale to the public (the “Offering”) (the “Commencement Date”), and at or
before 5:00 p.m., Eastern Time, on the fifth anniversary of the Effective Date (the “Expiration Date”), but
not thereafter, to subscribe for, purchase and receive, in whole or in part, up to 15,484 units (the “Units”)
of the Company, each Unit consisting of 15,484 Preferred Shares each convertible into 100 shares of the Company’s common
stock, par value $0.0001 per share (the “Shares”) and 1,548,400 warrants, each to purchase one Share (the “Warrant(s)”).
Each Warrant is the same as the warrants included in the Units being registered for sale to the public (the “Public Warrants”)
under the Securities Act of 1933, as amended (the “Act”). If the Expiration Date is a day on which banking
institutions are authorized by law to close, then this Unit Purchase Option may be exercised on the next succeeding day which
is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not
to take any action that would terminate the Unit Purchase Option. This Unit Purchase Option is initially exercisable at $41.25
per Unit (or 125% of the public offering price of the Units being sold in the Offering) so purchased; provided, however, that
upon the occurrence of any of the events specified in Section 5 hereof, the rights granted by this Unit Purchase Option, including
the exercise price per Unit and the number of Units to be received upon such exercise, shall be adjusted as therein specified.
The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on
the context.

 

    	 

    	 

    

 

2.
Exercise.

 

(a)
Exercise Procedure. In
order to exercise this Unit Purchase Option, the exercise form attached hereto must be duly executed and completed and delivered
to the Company, together with this Unit Purchase Option and payment of the Exercise Price for the Units being purchased payable
in cash or by certified check or official bank check. If the subscription rights represented hereby shall not be exercised at
or before 5:00 p.m., Eastern time, on the Expiration Date, this Unit Purchase Option shall become and be void without further
force or effect, and all rights represented hereby shall cease and expire.

 

(b)
Legend. If
required by applicable law at the time of any exercise, each certificate for the securities purchased under this Unit Purchase
Option shall bear a legend as follows unless such securities have been registered under the Act:

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”)
or applicable state law. The securities may not be offered for sale, sold or otherwise transferred except pursuant to an effective
registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law.”

 

(c)
Cashless Exercise.

 

(i) In
lieu of the payment of the Exercise Price multiplied by the number of Units for which this Unit Purchase Option is exercisable
(and in lieu of being entitled to receive Shares and Warrants) in the manner required by Section 2(a), the Holder shall have the
right (but not the obligation) to convert any exercisable but unexercised portion of this Unit Purchase Option into Units consisting
of Shares and Warrants (the “Conversion Right”) as follows:

 

(A) Upon
exercise of the Conversion Right, the Company shall deliver to the Holder (without payment by the Holder of any of the Exercise
Price in cash) that number of Shares equal to the quotient obtained by dividing (x) the Value of the portion of the Unit Purchase
Option being converted by (y) the Current Market Price of a Share.

 

(B) The
“Value” of the portion of the Unit Purchase Option being converted shall equal the remainder derived by subtracting
(a) (i) the Exercise Price multiplied by (ii) the number of Units underlying the portion of this Unit Purchase Option being converted
from (b) the Current Market Value of a Unit multiplied by the number of Units underlying the portion of the Unit Purchase Option
being converted.

 

(C) As
used herein, the term “Current Market Value” per Unit at any date means the remainder derived by subtracting
(x) the exercise price of the Warrants multiplied by the number of Shares issuable upon exercise of the Warrants underlying one
Unit from (y) the Current Market Price of the Shares multiplied by the number of Shares underlying the Preferred Shares and underlying
the Warrants included within one Unit.

 

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(D) The
“Current Market Price” of a Share shall mean (i) if the Shares are listed on a national securities exchange
or quoted the OTC Bulletin Board (or any successor exchange or entity), the closing or last sale price of the Shares in the principal
trading market for the Shares on the last trading day preceding the day in question as reported by the exchange or the OTC Bulletin
Board, as the case may be; (ii) if the Shares are not listed on a national securities exchange or quoted on the OTC Bulletin Board,
but are traded in the residual over-the-counter market, the closing bid price for the Shares on the last trading day preceding
the date in question for which such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and
(iii) if the fair market value of the Shares cannot be determined pursuant to clause (i) or (ii) above, such price as the Board
of Directors of the Company shall determine, in good faith.

 

(ii) The
Cashless Exercise Right may be exercised by the Holder on any business day on or after the Commencement Date and not later than
the Expiration Date by delivering the Unit Purchase Option with the duly executed exercise form attached hereto with the cashless
exercise section completed to the Company, exercising the Cashless Exercise Right and specifying the total number of Units the
Holder will purchase pursuant to such Cashless Exercise Right.

 

3. Transfer.

 

(a)
Restrictions—General. The
securities evidenced by this Unit Purchase Option shall not be sold, transferred, assigned, pledged or hypothecated, or be the
subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition
of, this Unit Purchase Option (or any securities underlying this Unit Purchase Option) for a period of one hundred eighty (180)
days following the Effective Date to anyone other than to any member participating in the offering and the officers or partners
thereof, if all securities so transferred remain subject to the lock-up restriction set forth above for the remainder of the time
period. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto
duly executed and completed, together with the Unit Purchase Option and payment of all transfer taxes, if any, payable in connection
therewith. The Company shall within three business days transfer this Unit Purchase Option on the books of the Company and shall
execute and deliver a new Unit Purchase Option or Unit Purchase Options of like tenor to the appropriate assignee(s) expressly
evidencing the right to purchase the aggregate number of Units purchasable hereunder or such portion of such number as shall be
contemplated by any such assignment.

 

(b)
Restrictions—Securities. The
securities evidenced by this Unit Purchase Option shall not be transferred unless and until (i) the Company has received the opinion
of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Act and
applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company, or (ii)
a registration statement or a post-effective amendment to the Registration Statement relating to such securities has been filed
by the Company and declared effective by the Securities and Exchange Commission (the “Commission”) and compliance
with applicable state securities law has been established.

 

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4. New
Unit Purchase Options to be Issued.

 

(a)
Partial Exercise. Subject
to the restrictions in Section 3 hereof, this Unit Purchase Option may be exercised or assigned in whole or in part. In the event
of the exercise or assignment hereof in part only, upon surrender of this Unit Purchase Option for cancellation, together with
the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price, the Company shall cause to be delivered
to the Holder without charge a new Unit Purchase Option of like tenor to this Unit Purchase Option in the name of the Holder evidencing
the right of the Holder to purchase the number of Units purchasable hereunder as to which this Unit Purchase Option has not been
exercised or assigned.

 

(b)
Loss, Theft, Destruction.
Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Unit Purchase
Option and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Unit
Purchase Option of like tenor and date. Any such new Unit Purchase Option executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

5. Adjustments. 

 

(a)
Exercise Price and Number of Securities.
The Exercise Price and the number of Units underlying the Unit Purchase Option shall be subject to adjustment from time to time
as hereinafter set forth:

 

(i)
If after the date hereof, and subject to the provisions of Section 5(c) below, the number of outstanding Shares is increased by
a stock dividend payable in Shares or by a split-up of Shares or other similar event, then, on the effective date thereof, the
number of Shares underlying each of the Units purchasable hereunder shall be increased in proportion to such increase in outstanding
shares. In such case, the number of Shares, and the exercise price applicable thereto, underlying the Warrants underlying each
of the Units purchasable hereunder shall be adjusted in accordance with the terms of the Warrants. For example, if the Company
declares a two-for-one stock dividend and immediately prior to such dividend this Unit Purchase Option is for the purchase of
one Unit at $10.00 per whole Unit (with each Warrant underlying the Units being exercisable for $12.00 per share), upon effectiveness
of the dividend, this Unit Purchase Option will be adjusted to allow for the purchase of one Unit at $10.00 per Unit, each Unit
entitling the holder to receive two Shares and two Warrants (each Warrant exercisable for $6.00 per share).

 

(ii)
If after the date hereof, and subject to the provisions of Section 5(c), the number of outstanding Shares is decreased by a consolidation,
combination or reclassification of the Shares or other similar event, then, on the effective date thereof, the number of Shares
underlying each of the Units purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares. In
such case, the number of Shares, and the exercise price applicable thereto, issuable upon exercise of the Warrants included in
each of the Units purchasable hereunder shall be adjusted in accordance with the terms of the Warrants. For example, if the Company
effects a one-for-two stock reverse stock split and immediately prior to such stock split this Unit Purchase Option is for the
purchase of one Unit at $10.00 per whole Unit (with each Warrant underlying the Units being exercisable for $12.00 per share),
upon effectiveness of the stock split, this Unit Purchase Option will be adjusted to allow for the purchase of one Unit at $10.00
per Unit, each Unit entitling the holder to receive 0.5 Shares and 0.5 Warrants (each Warrant exercisable for $24.00 per share).

 

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(iii)
In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 5(a)(i) or
5(a)(ii) hereof or that solely affects the par value of such Shares, or in the case of any merger or consolidation of the Company
with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and
that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance
to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Holder of this Unit Purchase Option shall have the right thereafter (until the expiration
of the right of exercise of this Unit Purchase Option) to receive upon the exercise hereof, for the same aggregate Exercise Price
payable hereunder immediately prior to such event plus the aggregate exercise price of the Shares underlying the Warrants immediately
prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, by a Holder
of the number of Shares of the Company obtainable upon exercise of this Unit Purchase Option and the underlying Warrants immediately
prior to such event; and if any reclassification also results in a change in Shares covered by Section 5(a)(i) or 5(a)(ii), then
such adjustment shall be made pursuant to Sections 5(a)(i) or 5(a)(ii) and this Section 5(a)(iii). The provisions of this Section
5(a)(iii) shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

 

(iv)
This form of Unit Purchase Option need not be changed because of any change pursuant to this Section 5, and Unit Purchase Options
issued after such change may state the same Exercise Price and the same number of Units as are stated in the Unit Purchase Options
initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Unit Purchase Options reflecting
a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date
or the computation thereof.

 

(b)
Substitute Unit Purchase Option.
In case of any consolidation of the Company with, or merger of the Company with, or merger of the Company into, another corporation
(other than a consolidation or merger which does not result in any reclassification or change of the outstanding Shares), the
corporation formed by such consolidation or merger shall execute and deliver to the Holder a supplemental Unit Purchase Option
providing that the holder of each Unit Purchase Option then outstanding or to be outstanding shall have the right thereafter (until
the stated expiration of such Unit Purchase Option) to receive, upon exercise of such Unit Purchase Option, the kind and amount
of shares of stock and other securities and property receivable upon such consolidation or merger, by a holder of the number of
Shares of the Company for which such Unit Purchase Option might have been exercised immediately prior to such consolidation, merger,
sale or transfer. Such supplemental Unit Purchase Option shall provide for adjustments which shall be identical to the adjustments
provided in this Section 5. The above provision of this Section 5 shall similarly apply to successive consolidations or mergers.

 

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(c)
Fractional Interests.
The Company shall not be required to issue certificates representing fractions of Shares or Warrants upon the exercise of the
Unit Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of Warrants,
Shares or other securities, properties or rights.

 

6. Reservation
and Listing. The Company shall
at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the
Warrants underlying the Unit Purchase Option, such number of Shares or other securities, properties or rights as shall be issuable
upon the conversion or exercise thereof. The Company further covenants and agrees that upon exercise of the Warrants underlying
the Unit Purchase Option and payment of the respective Warrant exercise price therefor, all Shares and other securities issuable
upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any
stockholder. As long as the Unit Purchase Option shall be outstanding, the Company shall use its best efforts to cause all (i)
Units issuable upon exercise of the Unit Purchase Option, and (ii) Shares issuable upon exercise of the Warrants included in the
Units issuable upon exercise of the Unit Purchase Option to be listed (subject to official notice of issuance) on all securities
exchanges (or, if applicable on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public
in connection with the Offering may then be listed and/or quoted; provided, however, that the Company shall only be required to
comply with (i) above to the extent the Units issued to the public in the Offering are still listed on a securities exchange. 

 

7. Certain
Notice Requirements.

 

(a)
Right to Notice.
Nothing herein shall be construed as conferring upon the Holders the right to vote or consent as a stockholder for the election
of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Unit Purchase Option and its exercise, any of the events described in Section 7(b) shall occur,
then, in one or more of said events, the Company shall give written notice of such event at least fifteen days prior to the date
fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend,
distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation,
winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may
be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders
of the Company with respect to the events enumerated in Section 7(b) at the same time and in the same manner that such notice
is given to all stockholders, even if less than fifteen days.

 

(b)
Enumerated Events.
The Company shall be required to give the notice described in this Section 7 upon one or more of the following events: (i) if
the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution
payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated
by the accounting treatment of such dividend or distribution on the books of the Company, or (ii) the Company shall offer to all
the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of
its property, assets and business shall be proposed.

 

    	6

    	 

    

 

(c)
Change in Exercise Price.
The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 5 hereof, send notice
to the Holders of such event and change (the “Price Notice”). The Price Notice shall describe the event causing
the change and the method of calculating same and shall be certified as being true and accurate by the Company’s President
and Chief Financial Officer.

 

(d)
Notice Delivery.
All notices, requests, consents and other communications under this Unit Purchase Option shall be in writing and shall be deemed
to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) If to the registered Holder
of the Unit Purchase Option, to the address of such Holder as shown on the books of the Company, or (ii) If to the Company, to
the following address or to such other address as the Company may designate by notice to the Holders:

 

InspireMD,
Inc.

Menorat
Mamaor 4

Tel
Aviv 67448 Israel

Facsimile:
+972 3 6917691

Attn:
Chief Financial Officer

 

8. Registration
Rights. 

 

(a)
Covenant to Register the Shares.

 

(i)
If requested in writing by the Holder, the Company agrees to register for resale the Shares underlying the Units (including the
Shares underlying the Warrants included in the Units) (collectively, the “Registrable Securities”). The Holder
may only make one demand request pursuant to this Section 8(a). The Company will use commercially reasonable efforts to file a
short-form registration statement on Form S-3 (the “Form S-3”) with the Commission covering the resale of the
Registrable Securities pursuant to Rule 415(a)(1)(i) within thirty (30) days after the Company is eligible to use such Form S-3.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to this Section.
The Company agrees to use its commercially reasonable efforts to cause the Form S-3 filing required herein to become effective
promptly. Notwithstanding anything to the contrary, the obligations of the Company pursuant to this Section 8 shall terminate
on the fifth anniversary of the effective date of the Registration Statement pursuant to which the Offering is being made.

 

    	7

    	 

    

 

(b)
General Terms. 

 

(i)
Indemnification. The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration
statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section
20 (a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage,
expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the Exchange Act or
otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant
to which the Company has agreed to indemnify the Placement Agent contained in Section 9 of the Placement Agency Agreement between
the Placement Agent and the Company, dated as of June 30, 2016. The Holder(s) of the Registrable Securities to be sold pursuant
to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against
all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred
in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange
Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing,
for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained
in Section 9.C of the Placement Agency Agreement pursuant to which the Placement Agent has agreed to indemnify the Company.

 

(ii)
Exercise of Unit Purchase Option. Nothing contained in this Unit Purchase Option shall be construed as requiring the Holder(s)
to exercise their Unit Purchase Option prior to or after the initial filing of any registration statement or the effectiveness
thereof.

 

(iii)
Documents Delivered to Holders. The Company shall deliver promptly to each Holder participating in the offering requesting
the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between
the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff
with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance
notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to
comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times, during normal business hours, as any such Holder shall reasonably request.

 

(iv)
Underwriting Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any,
selected by any Holders whose Registrable Securities are being registered pursuant to this Section 8, which managing underwriter
shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the
Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company
and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall
be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities. Such Holders shall
not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they
may relate to such Holders, their Shares and their intended methods of distribution.

 

    	8

    	 

    

 

(v)
Documents to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish
to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling
security holders.

 

(vi)
Damages. Should the registration or the effectiveness thereof required by Section 8 hereof be delayed by the Company or
the Company otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief
available to the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against
the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages
and without the necessity of posting bond or other security.

 

9. Miscellaneous.

 

(a)
Amendments.
The Company and Dawson may from time to time supplement or amend this Unit Purchase Option without the approval of any of the
Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent
with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the
Company and Dawson may deem necessary or desirable and that the Company and Dawson deem shall not adversely affect the interest
of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against
whom enforcement of the modification or amendment is sought.

 

(b)
Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Unit Purchase Option.

 

(c)
Entire Agreement.
This Unit Purchase Option (together with the other agreements and documents being delivered pursuant to or in connection with
this Unit Purchase Option) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

(d)
Binding Effect.
This Unit Purchase Option shall inure solely to the benefit of, and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to
have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Unit Purchase Option or any provisions
herein contained.

 

(e)
Governing Law.
This Unit Purchase Option shall be governed by and construed and enforced in accordance with the laws of the State of New York,
without giving effect to conflict of laws. The Company hereby agrees that any action, proceeding or claim against it arising out
of, or relating in any way to this Unit Purchase Option shall be brought and enforced in the courts of the State of New York or
of the United States of America for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7 hereof. Such mailing shall
be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and
the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all
of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection with
the preparation therefor.

 

    	9

    	 

    

 

(f)
Waivers.
The failure of the Company or the Holder to at any time enforce any of the provisions of this Unit Purchase Option shall not be
deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Unit Purchase Option or
any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Unit Purchase
Option. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Unit Purchase Option shall
be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such
waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver
of any other or subsequent breach, non-compliance or non-fulfillment.

 

(g)
Counterparts.
This Unit Purchase Option may be executed in one or more counterparts, and by the different parties hereto in separate counterparts,
each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement,
and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of
the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.

 

(h)
Exchange Agreement.
As a condition of the Holder’s receipt and acceptance of this Unit Purchase Option, Holder agrees that, at any time prior
to the complete exercise of this Unit Purchase Option by Holder, if the Company and Dawson enter into an agreement (the “Exchange
Agreement”) pursuant to which they agree that all outstanding Unit Purchase Options will be exchanged for securities
or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Balance
of page intentionally left blank]

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Unit Purchase Option to be signed by its duly authorized officer as of the 7th day
of July, 2016.

 

	 	InspireMD,
    Inc.
	 	 	 
	 	By:	/s/
    Craig Shore
	 	Name:	Craig
    Shore
	 	Title:	Chief
    Financial Officer

 

    	 

    	 

    

 

Form
To Be Used To Exercise Unit Purchase Option

 

InspireMD,
Inc.

[____]

[____]

Attn:
Chief Financial Officer

 

Date:
                          ,
201

 

The
undersigned hereby elects irrevocably to exercise all or a portion of the within Unit Purchase Option and to purchase         
Units of [_____], Inc., and hereby makes payment of $            (at the rate
of $           per Unit) in payment of the Exercise Price pursuant thereto.
Please issue the Shares and Warrants comprising the Units as to which this Unit Purchase Option is exercised in accordance with
the instructions given below.

 

or

 

The
undersigned hereby elects irrevocably to convert its right to purchase           
Units purchasable under the within Unit Purchase Option by surrender of the unexercised portion of the attached Unit Purchase
Option (with a “Value” based of $            based on a “Market
Price” of $          ). Please issue the securities comprising the Units as
to which this Unit Purchase Option is exercised in accordance with the instructions given below.

 

	 	 
	 	Signature
	 	 
	 	 

 

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
	 	(Print
    in Block Letters)	 
	 	 	 
	Address:	 	 

 

NOTICE:
THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN UNIT PURCHASE OPTION IN EVERY
PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS
BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

 

    	 

    	 

    

 

Form
To Be Used To Assign Unit Purchase Option

 

ASSIGNMENT

 

(To
be executed by the registered Holder to effect a transfer of the within Unit Purchase Option)

 

FOR
VALUE RECEIVED,           does hereby sell, assign and transfer unto           
the right to purchase          Units of [_____], Inc., (the “Company”)
evidenced by the within Unit Purchase Option and does hereby authorize the Company to transfer such right on the books of the
Company.

 

Dated:
                  , 201

 

	 	 
	 	Signature
	 	 
	 	 

 

NOTICE:
THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN UNIT PURCHASE OPTION IN EVERY
PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS
BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

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