Document:

FIRST AMENDMENT TO LICENSE AGREEMENT

 

This First Amendment
(this “First Amendment”)
to the License Agreement is now entered into as of October 20, 2012 (the “Effective Date”),
by and among Svelte Medical Systems, Inc., a Delaware corporation having its principal place of business at 657 Central Avenue,
New Providence, New Jersey 07974 (“Svelte,” or “Licensor”); InspireMD Ltd.,
an Israeli corporation having its principal place of business at 4 Menorat Hamor St., Tel Aviv, Israel L3 67448 (“InspireMD,”
or “Licensee”); and InspireMD, Inc., a Delaware corporation and the sole stockholder of Licensee (“InspireMD
US”). Licensor, Licensee and InspireMD US are hereinafter individually referred to as a “Party,”
and collectively referred to as the “Parties.”

 

RECITALS

 

WHEREAS, Licensor and
Licensee have entered into that certain License Agreement dated March 19, 2010, as supplemented by that certain letter dated March
15, 2010 (the “License Agreement”); and

 

WHEREAS, capitalized
terms used but not defined herein shall have the meanings attributed to such terms in the License Agreement; and

 

WHEREAS, Licensee is
willing to (i) waive the $85,000 in regulatory fees for the CE Mark that are owed by Licensor to Licensee under Section 3.1 of
the License Agreement; (ii) make full payment of all presently owed Royalties in the amount of $205,587 due to Licensor as of September
30, 2012 under Section 3.2 of the License Agreement, along with a single written report for the time period of all sales through
the most recent quarter as required by Section 3.3 of the License Agreement; and (iii) reduce the Worldwide Royalty and US Royalty
in exchange for $1,763,000, payable in shares of common stock of InspireMD US, valued at the closing price of InspireMD US’s
common stock on the trading day immediately preceding the date hereof (the “Stock Grant”); and

 

WHEREAS, Licensor wishes
to (i) avoid these regulatory fees and receive royalty payments along with a single current written report as set forth above,
(ii) receive the Stock Grant and (iii) reduce the Worldwide Royalty and US Royalty that will be owed by Licensee on a prospective
basis for the licensed rights granted to the Licensed Product and Licensed Processes, and Licensee wishes to receive such a lowered
rate.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and obligations set forth in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:

 

1.Miscellaneous.

 

(a)Clarification.
All payments under the License Agreement and this First Amendment refer to US currency.

 

(b)Exhibit
B. Exhibit B of the License Agreement is
amended as attached in Exhibit B hereto to include the patent number and issue
date.

 

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(c)Construction.
The terms of this First Amendment amend and modify the License Agreement as if fully set forth in the License Agreement. If there
is any conflict between the terms, conditions and obligations of this First Amendment and the License Agreement, this First Amendment’s
terms, conditions and obligations shall control. All other provisions of the License Agreement not specifically modified by this
First Amendment are preserved. This First Amendment may be executed in counterparts (including via facsimile or .pdf), each of
which shall be deemed an original, and all of which together shall constitute one and the same document.

 

2.Amendments
to the License Agreement.

 

(a)Section
3.1 of the License Agreement is hereby deleted in its entirety and replaced with the following:

 

“3.1Regulatory
Cost Sharing. All regulatory costs for receiving FDA Approval for conducting clinical
trials, manufacture, distribution and sale for the Licensed Product shall be borne in equal portions by the Parties, provided
however that Licensor's obligations under this Section shall not exceed $200,000 with no portion payable prior to completion of
enrollment in the US IDE clinical trial.”

 

(b)Section
3.2 of the License Agreement is hereby deleted in its entirety and replaced with the following:

 

“3.2 Royalty
& Other Licensing Fee.

 

(a) Licensee
shall pay Licensor a royalty in the aggregate amount of two and nine-tenths percent (2.9%) of Net Sales (the “Worldwide
Royalty”) actually received by Licensee from the sale of any Licensed Product in any country other than the United
States.

 

(b) Licensee
shall pay Licensor a royalty equal to the sum of (i) two and nine-tenths percent (2.9%) of Net Sales (the “US Royalty”,
together with the Worldwide Royalty, and without distinction between them, the “Royalty”) actually received
by Licensee from the sale of any Licensed Product in the United States.”

 

(c)Section
3.3 of the License Agreement is hereby deleted in its entirety and replaced with the following:

 

“3.3Report.Beginning
with the calendar quarter ending September 30, 2012, within forty-five (45) days after the close of each calendar quarter during
the term of the License Agreement, Licensee will submit to Licensor a written report. The initial report will list the following
required items for the entire time period from the Effective Date of the License Agreement through September 30, 2012, and all
subsequent quarterly reports will cover only that quarterly time period, and every report should include: (i) the total number
of the Licensed Products as to which Royalty Bearing Sales were made during that time period; (ii) the aggregate Net Sales received
by Licensee during that time period; and (iii) the amount of Royalties payable to Licensor by Licensee under this Agreement for
such time period.”

 

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(d)A
new Section 3.5 of the License Agreement is hereby added after Section 3.4:

 

“3.5Tax
Withholding.Licensor will be fully responsible for all tax consequences under
the License Agreement and First Amendment. Licensor expressly authorizes Licensee to retain from any Royalty or other consideration
due to Licensor at the source in Israel any withholding taxes required by law, and Licensee agrees to provide a receipt to Licensor
for any such withheld funds sufficient for Licensor to seek a credit or deduction from the relevant taxing authority as applicable.”

 

(e)A
new Section 5.7 of the License Agreement is hereby added after Section 5.6:

 

“5.7Sufficiency
of Licensor’s IP Rights. Licensor expressly represents and warrants that there
is no other patent right that it owns, or has any other right or permission to use, anywhere worldwide, now or hereafter acquired,
that covers the SHS or Licensed Product, in part or in whole, or any method of making or using the foregoing (the “Other
Patent Rights”), except for the Licensed Patent as set forth
on Exhibit B attached hereto. Licensor also expressly agrees that breach
of this provision will be material, and Licensor hereby additionally grants a non-exclusive, worldwide license, free of any additional
royalty, to any such Other Patent Rights to permit Licensee to enjoy the benefit of the license rights granted under the License
Agreement; provided that this additional grant will only become effective in the event of a breach of this Section.”

 

3.Stock
Grant. Within three (3) days of the execution of this First Amendment, InspireMD US shall
issue Licensor such number of shares of common stock of InspireMD US (the “Shares”)
equal to a fraction, the numerator of which shall be $1,763,000 and the denominator of which shall be the closing price of InspireMD
US’s common stock on its principal exchange on the trading day immediately preceding the date hereof, which was $2.05 per
share.

 

4.Representations
and Warranties of Licensor. Licensor hereby represents and warrants as of
the date hereof, to Licensee and InspireMD US as follows:

 

(a)Organization
and Good Standing.  Licensor is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and has the requisite power and authority to own its properties
and to carry on its business as now being conducted. Licensor is duly qualified or registered as a foreign corporation to do business
and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably
be expected to have a Licensor Material Adverse Effect. As used in this Agreement, “Licensor Material Adverse
Effect” means any material adverse effect on the business, properties,
assets, operations, results of operations, condition (financial or otherwise), prospects of Licensor and its subsidiaries, taken
as a whole, or on the transactions contemplated hereby.

 

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(b)Authorization
Enforcement; Validity. Licensor has the requisite corporate power and authority to enter into
and perform its obligations under this First Amendment. The execution and delivery of this First Amendment by Licensor and the
consummation by Licensor of the transactions contemplated hereby have been duly authorized by Licensor’s Board of Directors
and no further filing, consent or authorization is required by Licensor, its Board of Directors or its stockholders to perform
its obligations hereunder. This First Amendment has been duly executed and delivered by Licensor and constitutes the legal, valid
and binding obligations of Licensor, enforceable against Licensor in accordance with its terms, except as such enforceability may
be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

 

(c)No
Conflicts. The execution, delivery and performance of this First Amendment by Licensor and the
consummation by Licensor of the transactions contemplated hereby will not (i) result in a violation of any certificate of incorporation,
certificate of formation, any certificate of designations or other constituent documents of Licensor or any of its subsidiaries
or bylaws of Licensor or any of its subsidiaries, or (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which Licensor or any of its subsidiaries is a party, or (iii) result
in a violation of any applicable law, rule, regulation, order, judgment or decree applicable to Licensor or any of its subsidiaries
or by which any property or asset of Licensor or any of its subsidiaries is bound or affected, except in the cases of clauses (ii)
and (iii) such as would not reasonably be expected to have a Licensor Material Adverse Effect. 

  

(d)No
Public Sale or Distribution. Licensor is acquiring the Shares for its own account and not with
a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered
or exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”);
provided, however, that by making the representations herein, Licensor does not agree to hold any of the Shares for any minimum
or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration
statement or an exemption from registration under the Securities Act.

 

(e)Accredited
Investor Status. At the time Licensor was offered the Shares, Licensor was, and as of date hereof,
Licensor is, an “accredited investor” within the meaning of Rule 501 of Regulation D, as promulgated under the Securities
Act. 

 

(f)Reliance
on Exemptions. Licensor understands that the Shares have not been,
and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Licensor’s
representations as expressed herein. Licensor understands that the Shares are “restricted securities” under applicable
U.S. federal and state securities laws and that, pursuant to these laws, Licensor must hold the Shares indefinitely unless they
are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration
and qualification requirements is available. Licensor acknowledges that InspireMD US has no obligation to register or qualify any
of the Shares for resale. Licensor further acknowledges that if an exemption from registration or qualification is available, it
may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the
Shares, and on requirements relating to InspireMD US which are outside of Licensor’s control, and which Licensor is under
no obligation and may not be able to satisfy.

 

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(g)Disclosure
of Information. Licensor acknowledges that it has been afforded: (i) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from, representatives of InspireMD US concerning the terms and
conditions of the Shares and the merits and risks of acquiring the Shares and (ii) access to information about InspireMD US and
InspireMD US’s financial condition, results of operations, business, properties, management and prospects sufficient to enable
Licensor to evaluate the acquisition of the Shares. The foregoing, however, does not limit or modify the representations and warranties
of InspireMD US in Section 5 of this Agreement or the right of Licensor to rely thereon.

 

(h)Legends.
Licensor understands that the certificates or other instruments representing the Share shall bear substantially the following legend
until (a) such Shares shall have been registered under the Securities Act and effectively disposed of in accordance with a registration
statement that has been declared effective or (b) in the opinion of counsel for InspireMD US, such Shares may be sold without registration
under the Securities Act, as well as any applicable “blue sky” or state securities laws, shall bear any legend as required
by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

  

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE
TO INSPIREMD US, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

5.Representations
and Warranties of InspireMD US.  InspireMD US hereby represents and warrants as of the
date hereof to Licensor as follows: 

 

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(a)Organization
and Qualification. Each of InspireMD US and its subsidiaries is an entity duly incorporated or
organized, as the case may be, and validly existing in good standing (if such concept is recognized in the jurisdiction of a subsidiary’s
incorporation or organization) under the laws of the jurisdiction in which it is incorporated or organized, as applicable, and
has the requisite power and authority to own its properties and to carry on its business as now being conducted. Each of InspireMD
US and its subsidiaries (to the extent applicable) is duly qualified or registered as a foreign corporation to do business and
is in good standing (if such concept is recognized in the relevant foreign jurisdiction) in every jurisdiction in which its ownership
of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure
to be so qualified or be in good standing would not reasonably be expected to have an InspireMD Material Adverse Effect. As used
in this Agreement, “InspireMD Material Adverse Effect” means
any material adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise),
prospects of InspireMD US and its subsidiaries, taken as a whole, or on the transactions contemplated hereby. 

 

(b)Authorization;
Enforcement; Validity. InspireMD US has the requisite corporate power and authority to enter
into and perform its obligations under this First Amendment and to issue the Shares in accordance with the terms hereof. The execution
and delivery of this First Amendment by InspireMD US and the consummation by InspireMD US of the transactions contemplated hereby,
including, without limitation, the issuance of the Shares, have been duly authorized by InspireMD US’s Board of Directors
and no further filing, consent or authorization is required by InspireMD US, its Board of Directors or its stockholders or perform
its obligations hereunder, except for any filings that may be required to be made by InspireMD US with the Securities and Exchange
Commission or state securities authorities after the date hereof. This First Amendment has been duly executed and delivered by
InspireMD US and constitutes the legal, valid and binding obligations of InspireMD US, enforceable against InspireMD US in accordance
with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

(c)Issuance
of Securities. The Shares are duly authorized and, upon issuance in accordance with the terms
hereof, shall be validly issued and free from all preemptive or similar rights, liens and charges with respect to the issue thereof
and the Shares shall be fully paid and nonassessable with the holders being entitled to all rights accorded to a holder of the
Shares. Assuming the accuracy of each of the representations and warranties set forth in Section 4 of this Agreement, the
offer and issuance by InspireMD US of the Shares is exempt from registration under the Securities Act.

 

(d)No
Conflicts. The execution, delivery and performance of this First Amendment by InspireMD US and
the consummation by InspireMD US of the transactions contemplated hereby and thereby (including, without limitation, the issuance
of the Securities) will not (i) result in a violation of any certificate of incorporation, certificate of formation, any certificate
of designations or other constituent documents of InspireMD US or any of its Subsidiaries, any capital stock of InspireMD US or
any of its subsidiaries or bylaws of InspireMD US or any of its subsidiaries, or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which InspireMD US or any of its subsidiaries
is a party, or (iii) result in a violation of any applicable law, rule, regulation, order, judgment or decree applicable to InspireMD
US or any of its subsidiaries or by which any property or asset of InspireMD US or any of its subsidiaries is bound or affected,
except in the cases of clauses (ii) and (iii) such as would not reasonably be expected to have an InspireMD Material
Adverse Effect. 

 

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(e)No
General Solicitation. Neither InspireMD US nor any of its subsidiaries, or to InspireMD US’s
knowledge, any of its or their affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Shares.

 

(f)SEC
Reports. As of their respective dates, all reports, schedules, forms, statements and other documents
required to be filed by InspireMD US under the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), including pursuant to Section 13(a) or 15(d) thereof, since
March 31, 2011 (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Reports”)
complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

Signatures
on the Following Page

 

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IN WITNESS WHEREOF, each Party has caused
its name to be hereunto subscribed, by its duly authorized officer as of the date indicated above.

 

	
        Licensor:

         

        Svelte Medical Systems,
        Inc.

         

        By:     /s/
        Mark
        Pomeranz                         
	 	
        Licensee:

         

        InspireMD Ltd.

         

        By:     /s/
        Craig
        Shore                                     

	 	Name: Mark Pomeranz	 	 	Name: Craig Shore
	 	Title: COO	 	 	Title: Chief Financial Officer
	 	 	 	 	 
	 	 	
        InspireMD US:

         

        InspireMD, Inc.

         

        By:      /s/
        Craig
        Shore                                     

	 	 	 	 	Name: Craig Shore
	 	 	 	 	Title: Chief Financial Officer
	 	 	 	 	 

 

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EXHIBIT B

 

LICENSED PATENT(S)

 

 

 

	
        Title

         
	Application No.	Filing Date	Patent No.	Issue Date
	Hybrid Stent with Helical Connectors	12/582,251	October 20, 2009	8,114,149	February 14, 2012

 

    	9 of 9Unassociated Document

Exhibit 10.1

ESCROW AGREEMENT

THIS AGREEMENT is dated as of
_____________, 201_, by and among SQN AIF IV GP, LLC, a Delaware limited liability company (the “General Partner”), SQN Securities, LLC, a
Delaware limited liability company (the “Selling Agent”), SQN AIF IV, L.P., a Delaware limited partnership (the “Partnership”), and
Signature Bank, a New York State chartered bank, as escrow agent (the “Escrow Agent”).

WITNESSETH:

WHEREAS, the Partnership will offer and
sell up to 200,000 of its limited partnership interests (the “Units”) to investors meeting certain suitability standards at $1,000 per
Unit;

WHEREAS, each person who subscribes for
the purchase of Units (a “Subscriber”) will be required to pay his subscription in full at the time of subscription by check or wire (the
“Subscription Proceeds”);

WHEREAS, the Selling Agent has executed
an agreement (the “Selling Agent Agreement”) with the Partnership and the General Partner under which the Selling Agent will solicit
subscriptions in certain states on a “best efforts” basis for Subscription Proceeds of up to $200,000,000;

WHEREAS, under the terms of the Selling
Agent Agreement, the Subscription Proceeds are required to be held in an escrow account (the “Escrow Account”) subject to the receipt and
acceptance by the General Partner of subscriptions for 1,200 Units or $1,200,000, excluding any subscriptions, if any, by the General Partner and its
affiliates and Pennsylvania residents (the “Minimum Offering Amount”);

WHEREAS, no subscriptions to the
Partnership will be accepted after receipt and acceptance of subscriptions for 200,000 Units or $200,000,000 or the termination of the offering,
whichever is the first to occur; and

WHEREAS, to facilitate compliance with
the terms of the Selling Agent Agreement and Rule 15c2-4 adopted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
the Partnership, the General Partner and the Selling Agent desire to have the Subscription Proceeds deposited with the Escrow Agent until the Minimum
Offering Amount has been obtained and the Escrow Agent agrees to hold the Subscription Proceeds under the terms and conditions set forth in this
Agreement.

NOW, THEREFORE, in consideration of the
mutual covenants and conditions contained in this Agreement, the parties to this Agreement, intending to be legally bound, agree as
follows:

1.
        Appointment of Escrow Agent. The General Partner, the Partnership and the Selling Agent appoint
the Escrow Agent as the escrow agent to receive and to hold the Subscription Proceeds. The Escrow Agent agrees to serve in this capacity during the
term and subject to the provisions of this Agreement.

2.
        Deposit of Subscription Proceeds. Pending receipt of the Minimum Offering Amount, and subject to
Section 9, the Selling Agent and the General Partner shall (i) deposit the Subscription Proceeds of each Subscriber to whom they sell Units with the
Escrow Agent no later than 12:00 p.m. ET on a Business Day after receipt, and (ii) deliver to the Escrow Agent a copy of the Subscription Agreement. A
“Subscription Agreement” is the execution and subscription instrument signed by the Subscriber to evidence such Subscriber’s agreement
to purchase Units. Payment for each subscription for Units shall be in the form of a wire or check made payable to “Signature Bank as Escrow Agent
for SQN AIF IV, L.P.” for deposit into account #____________. Verification of the Subscription Proceeds by the Escrow Agent will be available via
direct, online access, telecopier, or other electronic media as soon as practicable after receipt. For the purposes of this Agreement, “Business
Day” is any day other than a Saturday, Sunday or any day on which commercial banks in New York, New York are authorized or required to
close.

3.
        Investment of Subscription Proceeds. Subject to Section 9, the Escrow Agent shall deposit all
Subscription Proceeds into Signature Bank’s Monogram Insured Money Market Deposit Account For Business. Interest accrued on Subscription Proceeds
held in the Escrow Account shall not be an asset of the Partnership, but shall be added to the Subscription Proceeds and disbursed in accordance with
the terms of this Agreement. Such amounts of interest are referred to in this Agreement as “Interest Proceeds.”

4.
        Escrow Account Statements and Information. The Escrow Agent agrees to send to the General
Partner and/or the Selling Agent a copy of the Escrow Account periodic statement, upon request in accordance with the Escrow Agent’s regular
practices for providing account statements to its non-escrow clients and to also provide the General Partner and/or Selling Agent, or their designee,
upon request other deposit account information, including Account balances, by telephone or by computer communication, to the extent practicable. The
General Partner and Selling Agent agree to complete and sign all forms or agreements reasonably required by the Escrow Agent for that purpose. The
General Partner and Selling Agent each consent to the Escrow Agent’s release of such Account information to any of the individuals designated by
the General Partner or Selling Agent, which designation has been signed by any of the persons in Schedule II. Further, the General Partner and Selling
Agent have an option to receive e-mail notification of incoming and outgoing wire transfers. If this e-mail notification service is requested and
subsequently approved by the Escrow Agent, the General Partner and/or Selling Agent agrees to provide a valid e-mail address and other information
necessary to set-up this service and sign all forms and agreements required for such service. The General Partner and Selling Agent each consent to the
Escrow Agent’s release of wire transfer information to the designated e-mail address(es). The Escrow Agent’s liability for failure to comply
with this section shall not exceed the cost of providing such information.

5.
        No Claims or Encumbrances. Subscription Proceeds deposited into the Escrow Account shall not be
claimed or encumbered by the General Partner, the Partnership, the Selling Agent, the Escrow Agent, or any affiliates or creditors of any of the
preceding until after such time as the Subscription Proceeds are distributed pursuant to Section 6(a).

6.
        Distribution of Subscription Proceeds.

(a)
        The Escrow Agent shall promptly distribute the deposited Subscription Proceeds, including any Interest
Proceeds as calculated pursuant to Section 8, to the General Partner after receipt by the Escrow Agent of notice from the General Partner certifying
that subscriptions for the Minimum Offering Amount have been received and accepted by the General Partner. Such notice shall state the date on which
the initial closing date and release of the deposited Subscription Proceeds and all related Interest Proceeds shall occur. The Escrow Agent shall make
such distributions to the General Partner on the initial closing date provided that such notice is received by 3:00 p.m. ET on a Business Day for the
Escrow Agent to process such instructions that Business Day. If any date that is a deadline under this Agreement for giving the Escrow Agent notice or
instructions or for the Escrow Agent to take action is not a Business Day, then such date shall be the Business Day immediately preceding that
date.

(b)
        If subscriptions for the Minimum Offering Amount have not been received and accepted by ___________,
2014, or if the offering is terminated by the General Partner on any date prior to such date, the General Partner shall notify the Escrow Agent of such
event, and the Escrow Agent shall promptly distribute to each Subscriber a refund check made payable to such Subscriber in an amount equal to the
deposited Subscription Proceeds received from such Subscriber plus their pro rata portion of the Interest Proceeds calculated pursuant to Section
8.

(c)
        If a subscription for Units is rejected by the General Partner or duly cancelled by a Subscriber after
the Subscription Proceeds relating to the subscription have been deposited in the Escrow Account, the General Partner shall notify the Escrow Agent of
the rejection, and the Escrow Agent shall promptly distribute to the Subscriber a refund check made payable to such Subscriber in an amount equal to
the deposited Subscription Proceeds received from such Subscriber plus any Interest Proceeds calculated pursuant to Section 8.

7.
        Separate Partnership Account. Subject to Section 9, during the continuation of the offering
after the Escrow Agent has performed its duties described in Section 6, any additional Subscription Proceeds may be deposited by the Selling Agent and
the General Partner directly in a separate Partnership account which shall not be subject to the terms of this Agreement.

8.
        Calculation of and Payment of Interest.

(a)
        If the Subscription Proceeds and any Interest Proceeds become distributable to the Subscribers pursuant
to Section 6, the General Partner shall compute the pro rata share of interest paid or earned on the applicable Subscription Proceeds, shall inform the
Escrow Agent of these amounts and the Escrow Agent shall distribute the Interest Proceeds pro rata to the Subscribers.

(b)
        The General Partner agrees and represents to the Escrow Agent that any interest or other income earned
on the Escrow Account shall for the purposes of reporting such income to the appropriate taxing authorities be deemed to be earned by
the General Partner, unless the Escrow
Funds are returned to the Subscribers in accordance with this Agreement. The General Partner represents that it is a US person as that term is defined
by the Internal Revenue Service. To the extent that the income is not earned by the General Partner, then the General Partner shall assume the
responsibility, if any, of reporting to the appropriate taxing authorities that it has received that income as nominee for others. The General Partner
agrees to provide the Escrow Agent with a certified tax identification number by signing and returning a Form W-9 to the Escrow Agent upon execution of
this Escrow Agreement. The General Partner understands that, in the event the General Partner’s tax identification number is incorrect or is not
certified to the Escrow Agent, the Internal Revenue Code, as amended from time to time, may require withholding of a portion of any interest or other
income earned on the Escrow Funds. The General Partner agrees to assume any and all obligations imposed, now or hereafter, by the applicable tax law
and/or applicable taxing authorities, with respect to any interest or other income earned on the Escrow Funds and to indemnify and hold the Escrow
Agent harmless from any liability or obligation on account of taxes, assessments, additions for late payment, interest, penalties, expenses and other
governmental charges that may be assessed or asserted against the Escrow Agent in connection with or relating to any payment made or other activities
performed under the terms of this Agreement, including without limitation any liability for the withholding or deduction of (or the failure to withhold
or deduct) the same, and any liability for the failure to obtain proper certifications or to report properly to governmental authorities in connection
with this Agreement, including costs and expenses (including reasonable legal fees and expenses) interest and penalties, in each such case to the
extent applicable to, or arising in respect of, the interest earned on the Escrow Account, unless such liability is caused by the Escrow Agent’s
gross negligence or willful misconduct or bad faith. The foregoing indemnification and agreement to hold harmless shall survive the termination of this
Agreement.

9.
        Subscriptions of Pennsylvania Residents.

(a)
        The Escrow Agent shall deposit Subscription Proceeds from Pennsylvania residents into a separate escrow
account having account #____________, titled ________________________ to be held in escrow pursuant to this Agreement for up to 120 days after the
respective Subscription Proceeds of each investor are received, except as provided in (b) below. Funds shall be released from that account in
accordance with Section 6 (and Subscription Proceeds from Pennsylvania residents may be deposited in a separate Partnership account in accordance with
Section 7) only if the aggregate of all Subscription Proceeds received and accepted by the General Partner, including those from Pennsylvania
residents, total $10,000,000 or more. The Selling Agent and the General Partner will specifically identify subscriptions of Pennsylvania residents to
the Escrow Agent and will not commingle those subscriptions with subscriptions of residents of other states.

(b)
        If the total Subscription Proceeds, including Subscription Proceeds received from Pennsylvania
residents, of at least $10,000,000 have not been received at the end of the first 120 day escrow period, the Partnership must notify the Pennsylvania
Subscribers in writing by certified mail or any other means whereby a receipt of delivery is obtained within 10 calendar days after the end of the
escrow period that they have a right to have their Subscription Proceeds returned to them, together with any interest earned thereon and without
deduction for any fees. If a Subscriber requests the return of the Subscriber’s Subscription Proceeds within 10 calendar days after receipt of
notification, the General Partner must promptly notify the Escrow Agent in writing to return that Subscriber’s Subscription Proceeds within 15
calendar days after the General Partner’s receipt of the Subscriber’s request. If the Subscriber does not timely request the return of the
Subscriber’s Subscription Proceeds, then the Subscriber’s Subscription Proceeds shall continue to be held in the escrow account for an
additional 120 day period under the terms and conditions of this Agreement, and this Section 9 shall again apply to the Subscriber’s Subscription
Proceeds.

10.
        Compensation and Expenses of Escrow Agent. The General Partner shall compensate the Escrow Agent
for its services under this Agreement as set forth in Schedule I. In addition, the General Partner shall be obligated to reimburse the Escrow Agent for
all fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable and documented
attorneys’ fees. Neither the modification, cancellation, termination or rescission of this Agreement, nor the resignation or termination of the
Escrow Agent, shall affect the right of Escrow Agent (i) to retain the amount of any fee which has been paid, or (ii) to be reimbursed or paid any
amount which has been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or
rescission. No party other than the General Partner shall be responsible for payment under this section. The Escrow Agent shall have no right to claim
or encumber deposited Subscription Proceeds for payment of fees.

11.
        Duties of Escrow Agent. The Escrow Agent shall not be obligated to accept any notice, make any
delivery, or take any other action under this Agreement unless the notice or request or demand for delivery or other action is in writing and given or
made by the party given the right or charged with the obligation under this Agreement to give the notice or to make the request or demand. In no event
shall the Escrow Agent be obligated to accept any notice, request, or demand from anyone other than the General Partner.

12.
        Liability of Escrow Agent.

(a)
        The Escrow Agent, in its capacity as escrow agent under this Agreement, shall not have any liability
for any loss sustained as a result of any investment made by the Escrow Agent in accordance with this Agreement, in accordance with applicable laws,
rules and regulations, pursuant to the direction of the General Partner or as a result of any liquidation of any investment prior to its maturity. Any
such investment of Escrow Account shall be made in compliance with Rule 15c2-4 of the Exchange Act.

(b)
        Any corporation into which the Escrow Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion, or consolidation to which the Escrow Agent shall be a party, or any corporation
to which substantially all the escrow business of the Escrow Agent may be transferred, shall be the Escrow Agent under this Agreement without further
action by the parties. In such event, however, and notwithstanding the provisions of Section 11, the General Partner may immediately upon written
notice remove the Escrow Agent.

(c)
        In performing any of its duties under this Agreement, or upon the claimed failure to perform its duties
under this Agreement, the Escrow Agent shall not be liable to anyone for any damages, losses, or expenses that it may incur as a result of the Escrow
Agent so acting, or failing to act; provided, however, that the Escrow Agent shall be liable for damages arising out of its willful misconduct or gross
negligence or bad faith under this Agreement, as determined by a court of competent jurisdiction. The Escrow Agent shall not incur any such liability
with respect to any action taken or omitted to be taken in reliance upon any document, including any written notice or instructions provided for in
this Agreement, not only as to its due execution and to the validity and effectiveness of its provisions but also as to the truth and accuracy of any
information contained therein, which the Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by proper person or
persons and to conform with the provision of this Agreement. The Escrow Agent may execute any of its powers and perform any of its duties hereunder
directly or through agents or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with such
counsel, accountants, and other skilled persons to be selected and retained by it.

(d)
        Each of the General Partner and the Selling Agent agrees to indemnify and hold harmless the Escrow
Agent, and its directors, officers, agents and employees, against any and all losses, claims, damages, liabilities, and expenses, including, without
limitation, reasonable costs of investigation and counsel fees and disbursement which may be incurred by it resulting from any act or omission of the
General Partner, the Partnership or the Selling Agent; except, that if the Escrow Agent shall be found to have engaged in willful misconduct or gross
negligence or bad faith under this Agreement by any court of competent jurisdiction, then, in that event, the Escrow Agent shall bear all such losses,
claims, damages and expenses. The indemnity provided by this Section shall survive the termination of this Agreement.

(e)
        In the event that the Escrow Agent shall be uncertain as to its duties or rights under this Agreement
or shall receive instructions, claims, or demands from any party to this Agreement that, in its opinion, conflict with any of the provisions of this
Agreement, the Escrow Agent shall be entitled to (i) refrain from taking any action and its sole obligation shall be to keep safely all property held
in escrow until it shall be directed otherwise in writing by all of the other parties to this Agreement or by a final order or judgment of a court of
competent jurisdiction or (ii) deliver the Escrow Funds to a court of competent jurisdiction.

13.
        Resignation or Removal of Escrow Agent. The Escrow Agent may resign after giving thirty
days’ prior written notice to the other parties to this Agreement provided that a substitute Escrow Agent has been appointed. The General Partner
and the Selling Agent may remove the Escrow Agent after giving thirty days’ prior written notice to the Escrow Agent. In either event, the duties
of the Escrow Agent shall terminate thirty days after the date of the notice (or as of an earlier date as may be mutually agreeable), and the Escrow
Agent shall then deliver the balance of the Subscription Proceeds and Interest Proceeds in its possession to a successor escrow agent appointed by the
other parties to this Agreement as evidenced by a written notice filed with the Escrow Agent. If the other parties to this Agreement are unable to
agree on a successor escrow agent or fail to appoint a successor escrow agent before the expiration of thirty days following the date of the notice of
the Escrow Agent’s resignation or removal, then the Escrow Agent may petition any court of competent jurisdiction for the appointment of a
successor escrow agent or other appropriate relief. Any resulting appointment shall be binding on all of the parties to this Agreement. On
acknowledgment by any successor escrow agent of the receipt of the then remaining balance of the Subscription Proceeds (and any interest paid or
investment income earned thereon while held by the Escrow Agent in the escrow account), the Escrow Agent shall be fully released and relieved of all
duties, responsibilities, and obligations under this Agreement.

14.
        Termination. This Agreement shall terminate and the Escrow Agent shall have no further
obligation with respect to this Agreement after the distribution of all Subscription Proceeds and Interest Proceeds as contemplated by this Agreement
or on the written agreement of all of the parties to this Agreement.

15.
        Notice. Any notices or instructions, or both, to be given under this Agreement shall be validly
given if set forth in writing and mailed by certified mail, return receipt requested, as follows:

If to the Escrow
Agent:

Signature Bank
 300
Park Avenue
 New York, New York 10022
 Attention: Charles Liggio, Group Director and Senior Vice President
 Telephone: 646-822-1608

Facsimile: 646-822-1621

Checks should be delivered to the
following address:

Signature
Bank
_________________

Wires to the Escrow Agent should be
directed to the following:

Signature Bank

ABA: ____________
A/C #: ___________
 Reference Account Number: __________________
 Ref: __________________

If to the Partnership:

SQN AIF IV, L.P.

c/o SQN AIF IV GP, LLC
 110 William Street, 26th Floor
 New York, New York 10038
 Telephone: (212) 422-2166
 Facsimile: (877)
214-1475

If to the General
Partner:

SQN AIF IV GP, LLC

110 William Street, 26th Floor
 New York, New York 10038
 Telephone: (212) 422-2166
 Facsimile: (877) 214-1475

If to the Selling
Agent:

SQN Securities,
LLC
 110 William Street, 26th Floor
 New York, New York 10038
 Telephone: (212) 422-2166
 Facsimile: (877) 214-1475

Any party may designate any other
address to which notices and instructions shall be sent by notice duly given in accordance with this Agreement.

16.
        Miscellaneous.

(a)
        This Agreement shall be governed by and construed and enforced in accordance with the laws of the State
of New York applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles that would defer
to the substantive laws of another jurisdiction and any action brought hereunder shall be brought in the courts of the State of New York, located in
the County of New York. Each party hereto irrevocably waives any objection on the grounds of venue, forum non conveniens or any similar grounds and
irrevocably consents to service of process by mail or in any manner permitted by applicable law and consents to the jurisdiction of said courts. Each
of the parties hereto hereby waives all right to trial by jury in any action, proceeding or counterclaim arising out of the transactions contemplated
by this Agreement.

(b)
        This Agreement sets forth the entire agreement and understanding of the parties in respect to this
Agreement and supersedes all prior agreements, arrangements and understandings relating to the subject matter hereof.

(c)
        This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions
hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance. The
failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce
the same. No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any
one or more instances shall be deemed to be construed as a further or continuing waiver of any such condition or breach or a waiver of any other
condition or of the breach of any other terms of this Agreement.

(d)
        This Agreement shall be binding on and shall inure to the benefit of the undersigned and their
respective successors and assigns.

(e)
        This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. All signatures of the parties to this Agreement may be transmitted by
facsimile, and such facsimile will, for all purposes, be deemed to be the original signature of such party whose signature it reproduces, and will be
binding upon such party; provided, however, that each party who produces a facsimile signature agrees, by the express terms hereof, to
place, promptly after transmission of his or her signature by fax, a true and correct original copy of his or her signature in overnight mail to the
address of the other party.

(f)
        References in this Agreement to “Sections” are references to Sections of this Agreement
unless the context clearly indicates otherwise.

IN WITNESS WHEREOF, the parties hereto
have executed this Escrow Agreement to be effective as of the day and year first above written.

	 
	   	   	   	Signature Bank,
 As Escrow Agent

	 
	 
	 
	   	   	   	By:
	   	 

	 
	   	   	   	 
	   	Name:

	 
	   	   	   	 
	   	Title:

	 
	 
	   	   	   	SQN AIF IV GP, LLC,
 As General Partner

	 
	 
	 
	   	   	   	By:
	   	 

	 
	   	   	   	 
	   	Name:

	 
	   	   	   	 
	   	Title:

	 
	 
	   	   	   	SQN SECURITIES, LLC,
 As Selling Agent

	 
	 
	 
	   	   	   	By:
	   	 

	 
	   	   	   	 
	   	Name:

	 
	   	   	   	 
	   	Title:

	 
	 
	   	   	   	SQN AIF IV, L.P.,
 As the Partnership

	 
	 
	   	   	   	By:
	   	SQN AIF IV GP, LLC, its general partner

	 
	 
	 
	   	   	   	By:
	   	 

	 
	   	   	   	 
	   	Name:

	 
	   	   	   	 
	   	Title:

 

SCHEDULE I TO ESCROW AGREEMENT

Compensation for Services of Escrow
Agent

SCHEDULE OF FEES

Fee: $3,500

SCHEDULE II TO ESCROW AGREEMENT

Certificate as to Authorized
Signatures

The specimen
signatures shown below are the specimen signatures of the individuals who have been designated as authorized representatives of
________________________ and are authorized to initiate and approve transactions of all types for the escrow account or accounts established under the
Agreement to which this Schedule II is attached, on behalf of _______________.

	Name / Title
	   	   	   	 Specimen Signature

	 
	 
	   	   	   	 

	Name
	   	   	   	Signature

	 
	 
	   	   	   	 

	Title
	   	   	   	 

	 
	 
	   	   	   	 

	Name
	   	   	   	Signature

	 
	 
	   	   	   	 

	Title
	   	   	   	 

	 
	 
	   	   	   	 

	Name
	   	   	   	Signature

	 
	 
	   	   	   	 

	Title
	   	   	   	 

	 
	 
	   	   	   	 

	Name
	   	   	   	Signature

	 
	 
	   	   	   	 

	Title

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