Document:

RIGHTS
OFFERING BACKSTOP AGREEMENT

 

This
Rights Offering Backstop Agreement (this “Agreement”), is made and entered into as of the date set forth on the signature
page hereto, by and between Acorn Energy, Inc., a Delaware corporation (the “Company”), and the stockholders of the
Company set forth on the signature page hereto (the “Backstop Purchasers”).

 

WHEREAS,
the Company has proposed to distribute, at no charge, to holders of record of its common stock, par value $0.01 per share (the
“Common Stock”) as of the close of business on the record date of the rights offering (the “Record Date”),
non-transferable rights (the “Rights”) to subscribe for and purchase additional shares of Common Stock at a subscription
price of $0.24 per share of Common Stock (the “Subscription Price” and such offering, the “Rights Offering”);

 

WHEREAS,
pursuant to the Rights Offering, stockholders of record will receive one (1) Right for every one (1) share of Common Stock held
by them as of the Record Date, and each Right will entitle the holder to purchase 0.312 shares of Common Stock at the Subscription
Price (the “Right”);

 

WHEREAS,
the Company desires to raise a total of $2,400,000 in connection with the Rights Offering;

 

WHEREAS,
in order to provide assurance that the Rights Offering is fully subscribed, the Company has offered to the Backstop Purchasers
the opportunity, and the Backstop Purchasers have agreed and committed, to exercise their Rights in full and to purchase from
the Company upon expiration of the Rights Offering, at the Subscription Price, additional shares of Common Stock not otherwise
sold in the Rights Offering, subject to the terms and conditions of this Agreement.

 

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

 

Section
1. The Rights Offering.

 

(a)
The Company shall use its reasonable best efforts to commence and complete the Rights Offering as soon as reasonably practicable.
The Company has filed a Registration Statement on Form S-1 (the “Registration Statement”) for the Rights Offering
with the Securities and Exchange Commission (the “SEC”) and intends to cause the Registration Statement to be declared
effective by the SEC as soon as reasonably practicable.

 

(b)
The Backstop Purchasers shall cooperate with the Company in connection with the preparation and filing of the Registration Statement,
including promptly furnishing to the Company, following written request therefor, any and all information concerning the Backstop
Purchasers or their affiliates as may be required to be set forth in the Registration Statement under applicable law.

 

    	 	 	 

    	 

    

 

(c)
In connection with the Rights Offering, the Company shall distribute at no charge to each holder of Common Stock on the Record
Date for the Rights Offering (collectively, the “Eligible Common Stockholders”) the Rights to purchase shares of Common
Stock, at the per share Subscription Price. Each Eligible Common Stockholder shall be eligible to participate in the Rights Offering
and exercise its Rights pro rata based on each Eligible Common Stockholder’s ownership of Common Stock as of the Record
Date for the Rights Offering.

 

Section
2. Commitment.

 

Subject
to the terms and conditions set forth herein, the Backstop Purchasers hereby agree (on behalf of themselves and their affiliates)
to purchase from the Company, and the Company hereby agrees to sell to the Backstop Purchasers, at the Subscription Price, all
shares of Common Stock that will be available for purchase by the Backstop Purchasers (on behalf of themselves and their affiliates)
pursuant to their Rights (the “Commitment”) as set forth on Exhibit A attached hereto.

 

Section
3. Backstop Commitment.

 

(a)
Subject to the consummation of the Rights Offering and terms and conditions set forth herein, in order to provide assurance that
the Rights Offering will be fully subscribed, the Backstop Purchasers hereby commit to purchase from the Company, and the Company
hereby agrees to sell to the Backstop Purchasers, at the Subscription Price, any and all Unsubscribed Rights Shares, subject to
such amount, order and priority as set forth on Exhibit B attached hereto (the “Backstop Commitment”). The
“Unsubscribed Rights Shares” means a number of shares of Common Stock equal to the excess, if any, of (i) the aggregate
number of shares of Common Stock that may be purchased pursuant to all Rights issued by the Company in connection with the Rights
Offering (including any Rights not issued and/or allocated due to the provisions of applicable state or foreign securities laws),
over (ii) the aggregate number of shares of Common Stock that are purchased by the Eligible Common Stockholders in the Rights
Offering pursuant to the exercise of the Subscription Rights. The “Total Commitment Amount” means the maximum amount
that the Backstop Purchasers agree to pay for their aggregate subscription of shares of Common Stock pursuant to their respective
Commitments and Backstop Commitments.

 

(b)
Within one (1) business days after the closing of the Rights Offering, the Company shall issue to the Backstop Purchasers a notice
(the “Subscription Notice”) setting forth the number of shares of Common Stock subscribed for in the
Rights Offering pursuant to the exercise of the Subscription Rights by the Eligible Common Stockholders and the aggregate gross
proceeds of the Rights Offering and, accordingly, the number of Unsubscribed Rights Shares to be acquired by the Backstop Purchasers
pursuant to the Backstop Commitment at the Rights Subscription Price. Shares of Common Stock acquired by the Backstop Purchasers
pursuant to the Backstop Commitment are collectively referred to as the “Backstop Acquired Shares.”

 

(c)
On the terms and subject to the conditions set forth in this Agreement, the closing of the Backstop Commitment (the “Closing”)
shall take place remotely via the exchange of documents and signatures on the later of (i) the fourth (4th) business
day following the issuance by the Company of the Subscription Notice and (ii) the date that all of the conditions to the Closing
set forth in Section 6 of this Agreement have been satisfied or waived or such other time and date as shall be agreed between
the Company and the Backstop Purchaser (the date on which the Closing occurs, the “Closing Date”).

 

    	 	2	 

    	 

    

 

(d)
At the Closing (i) the Company shall issue to the Backstop Purchasers the Backstop Acquired Shares against payment by or on behalf
of the Backstop Purchasers of the aggregate Rights Subscription Price for all such shares by wire transfer in immediately available
funds to the account designated by the Company in writing at least three (3) business day prior to the Closing.

 

Section
4. Representations and Warranties by the Backstop Purchasers.

 

Each
Backstop Purchaser with respect to itself represents and warrants to the Company as follows:

 

(a)
Existence and Good Standing; Authority. If the Backstop Purchaser is a corporation, partnership or limited liability company
duly organized, the Backstop Purchaser is validly existing and in good standing under the laws of its state or country of organization.

 

(b)
Authorization; Enforceability. This Agreement has been duly and validly authorized, executed and delivered by the Backstop
Purchaser and constitutes a binding obligation of the Backstop Purchaser enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

(c)
Accredited Investor. The Backstop Purchaser is an “accredited investor” as that term is defined in Regulation
D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

(d)
Information; Knowledge of Business. The Backstop Purchaser is familiar with the business in which the Company is engaged.
The Backstop Purchaser has knowledge and experience in financial and business matters; is familiar with the investments of the
type that it is undertaking to purchase; is fully aware of the problems and risks involved in making an investment of this type;
and is capable of evaluating the merits and risks of this investment. The Backstop Purchaser acknowledges that, prior to executing
this Agreement, it (and each of its representatives) has had the opportunity to ask questions of and receive answers or obtain
additional information from a representative of the Company concerning the financial and other affairs of the Company.

 

(e)
Investment Intent. The Backstop Purchaser is acquiring shares of Common Stock for its own account, with the intention of
holding such shares for investment and with no present intention of participating, directly or indirectly, in a distribution of
the shares, and such Backstop Purchaser will not make any sale, transfer or other disposition of any Backstop Acquired Shares
for a period of six (6) months from the Closing Date.

 

    	 	3	 

    	 

    

 

(f)
No Manipulation or Stabilization of Price. In connection with the Rights Offering, the Backstop Purchaser has not taken
and will not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected
to cause or result in, under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise,
stabilization or manipulation of the price of any security of the Company in order to facilitate the sale or resale of any securities
of the Company, and it is not aware of any such action taken or to be taken by any person.

 

(g)
No Registration. The Backstop Purchaser understands (A) that the offer and sale of the Backstop Acquired Shares to be purchased
by it pursuant to the terms of this Agreement have not been registered under the Securities Act or any state securities laws,
(B) the Company shall not be required to effect any registration or qualification of the Backstop Acquired Shares under the Securities
Act or any state securities laws, except pursuant to the Registration Rights Agreement to be entered by and between the Company
and the Backstop Purchaser, (C) that the Backstop Acquired Shares will be issued in reliance upon exemptions contained in the
Securities Act or interpretations thereof and in the applicable state securities laws, and (D) that the Backstop Acquired Shares
may not be offered for sale, sold or otherwise transferred except pursuant to a registration statement under the Securities Act
or in a transaction exempt from or not subject to registration under the Securities Act. Further, the following legends (or similar
language) shall be placed on such certificate(s) representing the Backstop Acquired Shares:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR REGISTERED AND/OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY
NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND REGISTRATION AND/OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, (B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES
ACT, AND REGISTRATION AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS PROVIDED THAT AT THE ISSUER’S REQUEST,
THE TRANSFEROR THEREOF SHALL HAVE DELIVERED TO THE ISSUER AN OPINION OF COUNSEL (WHICH OPINION SHALL BE IN FORM, SUBSTANCE AND
SCOPE REASONABLY SATISFACTORY TO THE ISSUER) TO THE EFFECT THAT SUCH SECURITIES MAY BE SOLD OR TRANSFERRED PURSUANT TO AN EXEMPTION
FROM SUCH REGISTRATION, OR (C) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144 PROMULGATED UNDER THE SECURITIES ACT.

 

(h)
Sufficiency of Funds. The Backstop Purchaser has and will have available funds sufficient to pay the aggregate Subscription
Price for all Common Stock to be purchased by the Backstop Purchaser hereunder.

 

(i)
Ownership of Common Stock. The number of shares of Common Stock owned directly and beneficially by such Backstop
Purchaser and its affiliates as of the date hereof is set forth on Exhibit A hereto.

 

    	 	4	 

    	 

    

 

Section
5. Representations and Warranties of the Company.

 

(a)
Existence and Good Standing; Authority. The Company is a corporation validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted.

 

(b)
Authorization; Enforceability. The Company has all corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder. The execution, delivery and performance by the Company of this Agreement and the consummation
of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company,
and no further approval or authorization is required on the part of the Company. This Agreement constitutes the valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as such may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization or other similar laws affecting creditors’ rights generally and by general
equitable principles and except as may be limited by applicable law and public policy.

 

(c)
Valid Issuance of Shares. All of the shares of Common Stock to be issued pursuant to this Agreement will be, as of the
date of their issuance, duly authorized by all necessary corporate action on the part of the Company and, when issued and delivered
by the Company against payment therefor as provided in this Agreement, (1) will be validly issued, fully paid and nonassessable,
(2) will be free and clear of all liens, encumbrances or claims and (3) will not be subject to any statutory or contractual preemptive
rights or other similar rights of stockholders.

 

Section
6. Conditions.

 

(a)
The Backstop Purchasers’ obligation to purchase shares of Common Stock pursuant to their Commitment and their Backstop Commitment,
as applicable, is subject to the following conditions: (i) the Company shall be in compliance with its obligations under this
Agreement in all material respects; (ii) the representations and warranties of the Company set forth in this Agreement shall be
true and correct as of the date of this Agreement and the consummation of the Rights Offering.

 

(b)
The Company’s obligations hereunder are subject to the representations and warranties of the Backstop Purchasers hereunder
being true and correct in all material respects.

 

(c)
The Closing of the transactions contemplated by this Agreements is further subject to the satisfaction or waiver of customary
conditions, including (i) receipt of all applicable regulatory approvals, (ii) compliance with covenants, (iii) the absence of
a material adverse effect on the Company or on the ability of the Backstop Purchasers, to perform their obligations under this
Agreement, (iv) satisfaction of conditions, (v) the effectiveness of the registration statement related to the Rights Offering
and (vi) consummation of the Rights Offering.

 

    	 	5	 

    	 

    

 

Section
7. Termination.

 

(a)
By the Backstop Purchasers. The Backstop Purchasers may terminate this Agreement (i) upon the occurrence of a suspension
of trading in the Common Stock by the OTCQB, or (ii) if the Company materially breaches its obligations under this Agreement and
such breach is not cured within five (5) business days following written notice to the Company.

 

(b)
By the Company. The Company may terminate this Agreement (i) in the event the Board of Directors, in its reasonable judgment,
determines that it is not in the best interests of the Company and its stockholders to proceed with the Rights Offering, (ii)
if consummation of the Rights Offering is prohibited by applicable law, rules or regulations, or (iii) if the Backstop Purchasers
materially breach their obligations under this Agreement and such breach is not cured within five (5) business days following
written notice to the Backstop Purchasers of such breach.

 

(c)
Other. The parties hereto may terminate this Agreement if the transactions contemplated hereby are not consummated within
180 days of the date of this Agreement through no fault of the terminating party. In addition, this Agreement shall terminate
upon the parties’ mutual written consent.

 

(d)
Effect of Termination. The Company and the Backstop Purchasers hereby agree that any termination of this Agreement pursuant
to this Section 7 (other than termination by one party in the event of a breach of this Agreement by the other party or
a misrepresentation of any of the statements made hereby by the other party), shall be without liability to the Company or the
Backstop Purchasers.

 

Section
8. Governing Law; Dispute Resolution.

 

(a)
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect
to any choice or conflict of laws provision or rule (whether of the State of New York or any other jurisdiction) that would cause
the application of the Laws of any jurisdiction other than the State of New York.

 

(b)
Any controversy or claim arising out of or relating to this Agreement shall be settled exclusively by arbitration in accordance
with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) in the City of
New York, County of New York, and judgment upon the award rendered by the arbitrator may be entered in any court located in any
jurisdiction. The parties expressly consent to the binding arbitral jurisdiction of the AAA in any and all proceedings and the
respective entry of award thereof as judgment in any of the permitted courts. Such arbitration shall be conducted by three arbitrators
appointed in accordance with the rules of the AAA as then in effect, each of whom shall be an attorney admitted to practice in
the State of New York with not less than twenty years of corporate and securities transactional legal experience. Each of the
parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any such proceeding and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such proceeding brought
in any such court has been brought in an inconvenient forum.

 

    	 	6	 

    	 

    

 

(c)
Each party irrevocably consents to the service of process in any action or proceeding by mailing copies thereof by registered
or certified United States mail, postage prepaid, return receipt requested, to the following addresses:

 

	If
    to the Company, to:	Acorn
    Energy, Inc.
	 	1000
    N West Street, Suite 1200
	 	Wilmington,
    DE 19801
	 	Telephone:
    (410) 654-3315
	 	Attn.:
    Chief Executive Officer
	 	 
	with
    a copy to:	Eilenberg
    & Krause LLP
	(which
    shall not constitute notice)	11
    East 44th Street, 19th Floor
	 	New
    York, NY 10017
	 	Telephone:
    (212) 986-9700
	 	Attn.:
    Sheldon Krause, Esq.

 

If
to the Backstop Purchasers, to the addresses set forth on the signature page hereto.

 

However,
the foregoing shall not limit the right of a party to effect service of process on any other party by any other legally available
method.

 

Section
9. Indemnification.

 

(a)
The Company hereby agrees to indemnify the Backstop Purchasers and their affiliates and each of their respective officers, directors,
partners, employees, agents and representatives for losses arising out of the Rights Offering and the Registration Statement and
prospectus and claims, suits or proceedings challenging the authorization, execution, delivery, performance or expiration of the
Rights Offering, this Agreement and certain ancillary agreements and/or any of the transactions contemplated thereby, other than
losses arising out of or related to any breach by the Backstop Purchasers of this Agreement.

 

(b)
The Backstop Purchasers hereby agree, severally and not jointly, to indemnify the Company and its affiliates and each of their
respective officers, directors, partners, employees, agents and representatives for losses arising out of or relating to statements
or omissions in the registration statement or prospectus for the Rights Offering (or any amendment or supplement thereto) made
in reliance on or in conformity with written information relating to the Backstop Purchasers furnished to the Company by or on
behalf of the Backstop Purchasers expressly for use therein.

 

Section
10. Amendment; Waiver; Counterparts. This Agreement may not be amended, modified or waived except in a writing signed by
each party hereto. This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of
which, when taken together, shall constitute one agreement. Delivery of an executed counterpart of this Agreement by fax or e-mail
shall be effective as delivery of a manually executed counterpart of this Agreement and shall be construed as an original for
all purposes.

 

Section
11. Entire Agreement. This Agreement constitutes the entire understanding among the parties hereto with respect to the
subject matter hereof and replaces and supersedes all prior agreements and understandings, both written on oral, between the parties
hereto with respect to the subject matter hereof and shall become effective and binding as of the Record Date subject to the mutual
exchange of fully executed counterparts on or prior to the Record Date.

 

    	 	7	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of June [__], 2019 by their respective o thereunto
duly authorized.

 

	ACORN
    ENERGY, INC.	 	LEAPTIDE
    CAPITAL MANAGEMENT LLC
	 	 	 	 	 
	By:
    	     	 	By:
    	                   
	Name:	 	 	Name:	 
	Title	 	 	Title	 

 

	 	 	 
	Michael
    Osterer	 	Gary
    Mohr
	 	 	 
	ACCEPTED
        AND AGREED TO

        WITH
        RESPECT TO SECTION 2:
	 	 
	 	 	 
	 	 	 
	Jan
    H. Loeb	 	 

 

    	 	8	 

    	 

    

 

EXHIBITS
AND SCHEDULES:

 

	Exhibit
    A:	Ownership
    of Common Stock by Backstop Purchaser
	 	 
	Exhibit
    B:	Backstop
    Commitments/Allocations 

 

    	 	9	 

    	 

    

 

EXHIBIT
A

 

Ownership
of Common Stock by Backstop Purchaser and Affiliates

 

	Backstop
    Purchaser	 	Shares
    of Common Stock Owned	 	Rights
	 	 	 	 	 
	Gary
    Mohr	 	197,014	 	61,468
	Michael
    Osterer	 	1,788,129	 	557,896
	Leap
    Tide Capital Management LLC (includes shares owned by its sole manager Jan H. Loeb)	 	1,479,454	 	461,589

 

    	 	10	 

    	 

    

 

EXHIBIT
B

 

Backstop
Purchasers’ Commitment Allocation Schedule

 

	Order
                                         and

        Priority
	 	Backstop

        Purchaser
	 	Total

        Commitment

        Amount
	 	Allocation
	 	 	 	 	 	 	 
	1st
                                         Priority

         

         
	 

         

         
	Gary
                                         Mohr

        Michael
        Osterer

        Leap
        Tide Capital Management LLC
	 

         

         
	$100,000

        $100,000

        $100,000
	 

         

         
	Gary
    Mohr, Michael Osterer and Leap Tide shall each acquire 1/3 of the first $300,000 of aggregate Subscription Price of Unsubscribed
    Rights Shares, on a pro rata basis; should Messrs. Mohr or Osterer fail to purchase  any or all of their respective
    portions of the 1st Priority Unsubscribed Rights Shares, Leap Tide shall purchase such unpurchased Unsubscribed
    Rights Shares
	 	 	 	 	 	 	 
	2nd
    Priority	 	Leap
    Tide Capital Management LLC	 	No
    Cap	 	Leap
    Tide shall acquire all Unsubscribed Rights Shares not purchased by the Backstop Purchasers pursuant to the First Priority

 

    	 	11	 

    	 

    

 

EXHIBIT
C

 

Registration
Rights Agreement

 

    	 	12REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of the date set forth on the signature page hereto,
by and between Acorn Energy, Inc., a Delaware corporation (the “Company”), and the undersigned investors
set forth on the signature page hereto (the “Investors”).

 

RECITALS:

 

WHEREAS,
the Company and the Investors are parties to that certain Rights Offering Backstop Agreement, dated as of the date hereof (the
“Backstop Agreement”) pursuant to which the Investors have agreed to purchase from the Company, and the Company
has agreed to sell to the Investor, on a private basis, shares of common stock, $0.01 par value per share (the “Common
Stock”) of the Company, subject to such amount, order and priority as set forth on Exhibit A and Exhibit B
of the Backstop Agreement (the “Backstop Commitment”), in connection with and following the expiration
of the Rights Offering (as such term is defined in the Backstop Agreement) conducted by the Company; and

 

WHEREAS,
in connection with the consummation of the transactions contemplated by the Backstop Agreement, the parties desire to enter into
this Agreement in order to create certain registration rights for the Investors as set forth below.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valid consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

Section
1. Certain Definitions.

 

In
addition to the terms defined elsewhere in this Agreement, the following terms shall have the following meanings:

 

“Affiliate”
of any Person means any other Person which directly, or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, such Person. The term “control” (including the terms “controlling,”
“controlled” and “under common control with”) as used with respect to any Person means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise.

 

“Agreement”
means this Registration Rights Agreement, including all amendments, modifications and supplements and any exhibits or schedules
to any of the foregoing, and shall refer to this Registration Rights Agreement as the same may be in effect at the time such reference
becomes operative.

 

“Backstop
Agreement” means the agreement specified in the first Recital hereto, as such agreement may be amended from time to
time.

 

    	 

    	 

    

 

“beneficially
own” means, with respect to any Person, securities of which such Person or any of such Person’s Affiliates,
directly or indirectly, has “beneficial ownership” as determined pursuant to Rule 13d-3 and Rule 13d-5 of the
Exchange Act, including securities beneficially owned by others with whom such Person or any of its Affiliates has agreed to
act together for the purpose of acquiring, holding, voting or disposing of such securities; provided that a Person
shall not be deemed to “beneficially own” (i) securities tendered pursuant to a tender or exchange offer made by
such Person or any of such Person’s Affiliates until such tendered securities are accepted for payment, purchase or
exchange, (ii) any security as a result of an oral or written agreement, arrangement or understanding to vote such security
if such agreement, arrangement or understanding: (a) arises solely from a revocable proxy given in response to a public proxy
or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange Act, and (b) is
not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report).
Without limiting the foregoing, a Person shall be deemed to be the beneficial owner of all Registrable Shares owned of record
by any majority-owned subsidiary of such Person.

 

“Common
Stock” has the meaning set forth in the first Recital hereto.

 

“Company”
has the meaning set forth in the introductory paragraph.

 

“Demand
Registration” has the meaning set forth in Section 2(a).

 

“Demand
Registration Statement” has the meaning set forth in Section 2(a).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Governmental
Entity” means any national, federal, state, municipal, local, territorial, foreign or other government or any department,
commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or
arbitral body or public or private tribunal.

 

“Holdback
Agreement” has the meaning set forth in Section 6.

 

“Holdback
Period” has the meaning set forth in Section 6.

 

“Investors”
mean the Persons named as such in the first paragraph of this Agreement.

 

“Minimum
Number” means One Million Dollars (1,000,000) Registrable Shares.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, incorporated organization,
association, corporation, institution, public benefit corporation, Governmental Entity or any other entity.

 

“Piggyback
Registration” has the meaning set forth in Section 3(a).

 

    	2

    	 

    

 

“Prospectus”
means the prospectus or prospectuses (whether preliminary or final) included in any Registration Statement and relating to
Registrable Shares, as amended or supplemented and including all material incorporated by reference in such prospectus or prospectuses.

 

“Registrable
Shares” means shares of Common Stock acquired by any Investor pursuant to such Investor’s Backstop Commitment
under the Backstop Agreement, provided, however, that such shares of Common Stock shall cease to be Registrable Shares
when such securities (a) have been sold pursuant to an effective registration statement or Rule 144 under the Securities Act,
(b) have been sold in a transaction where a subsequent public distribution of such securities would not require registration under
the Securities Act, (c) are eligible for sale pursuant to Rule 144 under the Securities Act without limitation thereunder on volume
or manner of sale, (d) are not outstanding or (e) have been transferred in violation of Section 10. It is understood and agreed
that, once such shares of Common Stock ceases to be a Registrable Share, such security shall cease to be a Registrable Share for
all purposes of this Agreement and the Company’s obligations regarding Registrable Shares hereunder shall cease to apply
with respect to such security.

 

“Registration
Expenses” has the meaning set forth in Section 7(a).

 

“Registration
Statement” means any registration statement of the Company which covers any of the Registrable Shares pursuant to the
provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all documents incorporated by reference in such Registration Statement.

 

“SEC”
means the Securities and Exchange Commission or any successor agency.

 

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

 

“Shares”
means any shares of Common Stock.

 

“Suspension
Period” has the meaning set forth in Section 5.

 

“Termination
Date” means the first date on which there are no Registrable Shares or there are no Investors.

 

“underwritten
offering” means a registered offering in which securities of the Company are sold to one or more underwriters on a firm-commitment
basis for reoffering to the public.

 

Other
Terms: In addition to the above definitions, unless the context requires otherwise:

 

(i)
any reference to any statute, regulation, rule or form as of any time shall mean such statute, regulation, rule or form as amended
or modified and shall also include any successor statute, regulation, rule or form from time to time;

 

    	3

    	 

    

 

(ii)
“including” shall be construed as inclusive without limitation, in each case notwithstanding the absence of any express
statement to such effect, or the presence of such express statement in some contexts and not in others;

 

(iii)
references to “Section” are references to Sections of this Agreement;

 

(iv)
words such as “herein”, “hereof”, “hereinafter” and “hereby” when used in this
Agreement refer to this Agreement as a whole;

 

(v)
references to “business day” mean any day except Saturday, Sunday and any day which shall be a legal holiday or a
day on which banking institutions in the State of New York generally are authorized or required by law or other governmental action
to close; and

 

(vi)
references to “dollars” and “$” mean U.S. dollars.

 

Section
2. Demand Registration.

 

(a)
Right to Request Registration. Subject to the provisions hereof, on and after the sixth months from the date of the consummation
of the transactions contemplated by the Backstop Agreement and until the Termination Date, Investors collectively holding the
Minimum Number may at any time request registration for resale under the Securities Act of all or part of the Registrable Shares
(a “Demand Registration”). Subject to Section 2(d) and Sections 5 and 7 below, the Company shall use reasonable
best efforts (i) to file a Registration Statement registering for resale such number of Registrable Shares as requested to be
so registered pursuant to this Section 2(a) (a “Demand Registration Statement”) within 45 days after the Investors’
request therefor and (ii) if necessary, to cause such Demand Registration Statement to be declared effective by the SEC as soon
as practical thereafter. If permitted under the Securities Act, such Registration Statement shall be one that is automatically
effective upon filing. The Demand Registration Statement shall allow the offer and sale of the Registrable Shares on a continuous
basis pursuant to Rule 415 under the Securities Act, unless the Company is not eligible to use a form which allows such offer
and sale in which case the Demand Registration Statement shall allow such offer and resale for so long a period as permitted by
the Securities Law and the rules thereunder.

 

(b)
Number of Demand Registrations. Subject to the limitations of Sections 2(a), 2(d) and 4(a), the Investor shall be entitled
to request up to three (3) Demand Registrations in the aggregate. A Registration Statement shall not count as a permitted Demand
Registration unless and until it has become effective.

 

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(c)
Priority on Demand Registrations. The Company may include Shares other than Registrable Shares in a Demand Registration
for any accounts (including for the account of the Company) on the terms provided below; and if such Demand Registration is an
underwritten offering, such Shares may be included only with the consent of the managing underwriters of such offering. If the
managing underwriters of the requested Demand Registration advise the Company and the Investors requesting such Demand Registration
that in their opinion the number of Shares proposed to be included in the Demand Registration exceeds the number of Shares which
can be sold in such underwritten offering without materially delaying or jeopardizing the success of the offering (including the
price per share of the Shares proposed to be sold in such underwritten offering), the Company shall include in such Demand Registration
(i) first, the number of Registrable Shares that the Investors propose to sell, and (ii) second, the number of Shares proposed
to be included therein by any other Persons (including Shares to be sold for the account of the Company) allocated among such
Persons in such manner as the Company may determine. If the number of Shares which can be sold is less than the number of Shares
proposed to be registered pursuant to clause (i) above by the Investors, the number of Shares to be sold shall be allocated to
the Investors.

 

(d)
Restrictions on Demand Registrations. The Investor shall not be entitled to request a Demand Registration (i) within twelve
(12) months after the Investor has sold Shares in a Demand Registration, (ii) if there is effective a Demand registration Statement
which permits the offer and sale of the Registrable Shares on a continuous basis under Rule 415 or (iii) at any time when the
Company is diligently pursuing a primary or secondary underwritten offering pursuant to a Piggyback Registration.

 

(e)
Underwritten Offerings. The Investor shall be entitled to request an underwritten offering pursuant to a Demand Registration,
but only if the number of Registrable Shares to be sold in the offering would reasonably be expected to yield gross proceeds to
the Investor of at least the Minimum Amount (based on then-current market prices) and only if the request is not made within six
(6) months after the Investor has sold Shares in an underwritten offering pursuant to a Demand Registration. If any of the Registrable
Shares covered by a Demand Registration are to be sold in an underwritten offering, the Company shall have the right to select
the managing underwriter or underwriters to lead the offering.

 

(f)
Effective Period of Demand Registrations. Upon the date of effectiveness of any Demand Registration for an underwritten
offering and if such offering is priced promptly on or after such date, the Company shall use reasonable best efforts to keep
such Demand Registration Statement effective for sale on a continuous basis under Rule 415, or if such rule is unavailable to
the Company, for a period equal to 60 days from such date or such shorter period which shall terminate when all of the Registrable
Shares covered by such Demand Registration have been sold by the Investor. If the Company shall withdraw any Demand Registration
pursuant to Section 5 before such 60 days end and before all of the Registrable Shares covered by such Demand Registration have
been sold pursuant thereto, the Investors shall be entitled to a replacement Demand Registration which shall be subject to all
of the provisions of this Agreement. A Demand Registration shall not count against the limit on the number of such registrations
set forth in Section 2(b) if (i) after the applicable Registration Statement has become effective, such Registration Statement
or the related offer, sale or distribution of Registrable Shares thereunder becomes the subject of any stop order, injunction
or other order or restriction imposed by the SEC or any other governmental agency or court for any reason not attributable to
the Investors or their Affiliates (other than the Company and its controlled Affiliates) and such interference is not thereafter
eliminated so as to permit the completion of the contemplated distribution of Registrable Shares or (ii) in the case of an underwritten
offering, the conditions specified in the related underwriting agreement, if any, are not satisfied or waived for any reason not
attributable to the Investor or its Affiliates (other than the Company and its controlled Affiliates), and as a result of any
such circumstances described in clause (i) or (ii), less than 75% of the Registrable Shares covered by the Registration Statement
are sold by the Investor pursuant to such Registration Statement.

 

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Section
3. Piggyback Registrations.

 

(a)
Right to Piggyback. Whenever prior to the Termination Date, the Company proposes to register any Shares under the Securities
Act (other than on a registration statement on Form S-8, F-8, S-4 or F-4), whether for its own account or for the account of one
or more holders of Shares (other than the Investors), and the form of registration statement to be used may be used for any registration
of Registrable Shares (a “Piggyback Registration”), the Company shall give written notice to the Investors
of its intention to effect such a registration and, subject to Sections 3(b) and 3(c), shall include in such registration statement
and in any offering of Shares to be made pursuant to that registration statement all Registrable Shares with respect to which
the Company has received a written request for inclusion therein from the Investors within 10 days after the Investors’
receipt of the Company’s notice or, in the case of a primary offering, such shorter time as is reasonably specified by the
Company in light of the circumstances (provided that only Registrable Shares of the same class or classes as the Shares
being registered may be included). The Company shall have no obligation to proceed with any Piggyback Registration and may abandon,
terminate and/or withdraw such registration for any reason at any time prior to the pricing thereof.

 

(b)
Priority on Primary Piggyback Registrations. If a Piggyback Registration is initiated as a primary underwritten offering
on behalf of the Company and the managing underwriters advise the Company and the Investors (if the Investors have elected to
include Registrable Shares in such Piggyback Registration) that in their opinion the number of Shares proposed to be included
in such offering exceeds the number of Shares (of any class) which can be sold in such offering without materially delaying or
jeopardizing the success of the offering (including the price per share of the Shares proposed to be sold in such offering), the
Company shall include in such registration and offering (i) first, the number of Shares that the Company proposes to sell, and
(ii) second, the number of Shares requested to be included therein by holders of Shares, including the Investors (if the Investors
have elected to include Registrable Shares in such Piggyback Registration), pro rata among all such holders on the basis of the
number of Shares requested to be included therein by all such holders or as such holders and the Company may otherwise agree (with
allocations among different classes of Shares, if more than one are involved, to be determined by the Company).

 

(c)
Priority on Secondary Piggyback Registrations. If a Piggyback Registration is initiated as an underwritten registration
on behalf of a holder of Shares other than the Investors, and the managing underwriters advise the Company that in their opinion
the number of Shares proposed to be included in such registration exceeds the number of Shares (of any class) which can be sold
in such offering without materially delaying or jeopardizing the success of the offering (including the price per share of the
Shares to be sold in such offering), then the Company shall include in such registration (i) first, the number of Shares requested
to be included therein by the holder(s) requesting such registration, (ii) second, the number of Shares requested to be included
therein by other holders of Shares including the Investors (if the Investors have elected to include Registrable Shares in such
Piggyback Registration) and (iii) third, the number of Shares that the Company proposes to sell, pro rata among such holders on
the basis of the number of Shares requested to be included therein by such holders or as such holders and the Company may otherwise
agree (with allocations among different classes of Shares, if more than one are involved, to be determined by the Company).

 

    	6

    	 

    

 

(d)
Selection of Underwriters. If any Piggyback Registration is a primary or secondary underwritten offering, the Company shall
have the right to select the managing underwriter or underwriters to administer any such offering.

 

(e)
Basis of Participations. The Investor may not sell Registrable Shares in any offering pursuant to a Piggyback Registration
unless it (a) agrees to sell such Shares on the same basis provided in the underwriting or other distribution arrangements approved
by the Company and that apply to the Company and/or any other holders involved in such Piggyback Registration and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting agreements, lockups and other documents required
under the terms of such arrangements.

 

Section
4. Suspension Periods.

 

(a)
Suspension Periods. The Company may (i) delay the filing or effectiveness of a Registration Statement in conjunction with
a Demand Registration or or (ii) prior to the pricing of any underwritten offering or other offering of Registrable Shares pursuant
to a Demand Registration, delay such underwritten or other offering (and, if it so chooses, withdraw any registration statement
that has been filed), but in each case described in clauses (i) and (ii) only if the Company determines in its sole discretion
(x) that proceeding with such an offering would require the Company to disclose material information that would not otherwise
be required to be disclosed at that time and that the disclosure of such information at that time would not be in the Company’s
best interests, or (y) that the registration or offering to be delayed would, if not delayed, materially adversely affect the
Company and its subsidiaries taken as a whole or materially interfere with, or jeopardize the success of, any pending or proposed
material transaction, including any debt or equity financing, any acquisition or disposition, any recapitalization or reorganization
or any other material transaction, whether due to commercial reasons, a desire to avoid premature disclosure of information or
any other reason. Any period during which the Company has delayed a filing, an effective date or an offering pursuant to this
Section 5 is herein called a “Suspension Period”. If pursuant to this Section 4 the Company delays or withdraws
a Demand Registration requested by the Investors, the Investors shall be entitled to withdraw such request and, if it does so,
such request shall not count against the limitation on the number of such registrations set forth in Section 2. The Company shall
provide prompt written notice to the Investors of the commencement and termination of any Suspension Period (and any withdrawal
of a registration statement pursuant to this Section 4), but shall not be obligated under this Agreement to disclose the reasons
therefor. The Investors shall keep the existence of each Suspension Period confidential and refrain from making offers and sales
of Registrable Shares (and direct any other Persons making such offers and sales to refrain from doing so) during each Suspension
Period. In no event (i) may the Company deliver notice of a Suspension Period to the Investors more than three times in any calendar
year and (ii) shall a Suspension Period or Suspension Periods be in effect for an aggregate of 180 days or more in any calendar
year.

 

    	7

    	 

    

 

(b)
Other Lockups. Notwithstanding any other provision of this Agreement, the Company shall not be obligated to take any action
hereunder that would violate any lockup or similar restriction binding on the Company in connection with a prior or pending registration
or underwritten offering.

 

Section
5. Holdback Agreements.

 

The
restrictions in this Section 5 shall apply for as long as any Investor is the beneficial owner of any Registrable Shares. If the
Company sells Shares or other securities convertible into or exchangeable for (or otherwise representing a right to acquire) Shares
in a primary underwritten offering pursuant to any registration statement under the Securities Act (but only if the Investor is
provided its piggyback rights, if any, in accordance with Sections 3(a) and 3(b)), or if any other Person sells Shares in a secondary
underwritten offering pursuant to a Piggyback Registration in accordance with Sections 3(a) and 3(b), and if the managing underwriters
for such offering advise the Company (in which case the Company promptly shall notify the Investors) that a public sale or distribution
of Shares outside such offering would materially adversely affect such offering, then, if requested by the Company, the Investors
shall agree, as contemplated in this Section 6, not to (and to cause its majority-controlled Affiliates not to) sell, transfer,
pledge, issue, grant or otherwise dispose of, directly or indirectly (including by means of any short sale), or request the registration
of, any Registrable Shares (or any securities of any Person that are convertible into or exchangeable for, or otherwise represent
a right to acquire, any Registrable Shares) for a period (each such period, a “Holdback Period”) beginning
on the 10th day before the pricing date for the underwritten offering and extending through the earlier of (i) the 90th day after
such pricing date (subject to customary automatic extension in the event of the release of earnings results of or material news
relating to the Company) and (ii) such earlier day (if any) as may be designated for this purpose by the managing underwriters
for such offering (each such agreement of the Investor, a “Holdback Agreement”). Each Holdback Agreement shall
be in writing in form and substance satisfactory to the Company and the managing underwriters. Notwithstanding the foregoing,
the Investors shall not be obligated to make a Holdback Agreement unless the Company and each selling shareholder in such offering
also execute agreements substantially similar to such Holdback Agreement. A Holdback Agreement shall not apply to (i) the exercise
of any warrants or options to purchase shares of the Company (provided that such restrictions shall apply with respect
to the securities issuable upon such exercise) or (ii) any Shares included in the underwritten offering giving rise to the application
of this Section 5.

 

    	8

    	 

    

 

Section
6. Registration Procedures.

 

(a)
Whenever the Investors request that any Registrable Shares be registered pursuant to this Agreement, the Company shall use reasonable
best efforts to effect, as soon as practical as provided herein, the registration and the sale of such Registrable Shares in accordance
with the intended methods of disposition thereof, and, pursuant thereto, the Company shall, as soon as practical as provided herein:

 

(i)
subject to the other provisions of this Agreement, use reasonable best efforts to prepare and file with the SEC a Registration
Statement with respect to such Registrable Shares and cause such Registration Statement to become effective (unless it is automatically
effective upon filing);

 

(ii)
use reasonable best efforts to prepare and file with the SEC such amendments and supplements to such Registration Statement and
the Prospectus used in connection therewith as may be necessary to comply with the applicable requirements of the Securities Act
and to keep such Registration Statement effective for the relevant period required hereunder, but no longer than is necessary
to complete the distribution of the Shares covered by such Registration Statement, and to comply with the applicable requirements
of the Securities Act with respect to the disposition of all the Shares covered by such Registration Statement during such period
in accordance with the intended methods of disposition set forth in such Registration Statement;

 

(iii)
use reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement,
or the lifting of any suspension of the qualification or exemption from qualification of any Registrable Shares for sale in any
jurisdiction in the United States;

 

(iv)
deliver, without charge, such number of copies of the preliminary and final Prospectus and any supplement thereto as the Investors
may reasonably request in order to facilitate the disposition of the Registrable Shares of the Investor covered by such Registration
Statement in conformity with the requirements of the Securities Act;

 

(v)
use reasonable best efforts to register or qualify such Registrable Shares under such other securities or blue sky laws of such
U.S. jurisdictions as the Investors reasonably request and continue such registration or qualification in effect in such jurisdictions
for as long as the applicable Registration Statement may be required to be kept effective under this Agreement (provided
that the Company will not be required to (I) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this subparagraph (v), (II) subject itself to taxation in any such jurisdiction or (III) consent
to general service of process in any such jurisdiction);

 

(vi)
notify the Investors and each distributor of such Registrable Shares identified by the Investors, at any time when a Prospectus
relating thereto would be required under the Securities Act to be delivered by such distributor, of the occurrence of any event
as a result of which the Prospectus included in such Registration Statement contains an untrue statement of a material fact or
omits a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, and, at the request of the Investors, the Company shall use reasonable best efforts to prepare, as soon as practical,
a supplement or amendment to such Prospectus so that, as thereafter delivered to any prospective purchasers of such Registrable
Shares, such Prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

    	9

    	 

    

 

(vii)
in the case of an underwritten offering in which the Investors participate pursuant to a Demand Registration or a Piggyback Registration,
enter into an underwriting agreement, containing customary provisions (including provisions for indemnification, lockups, opinions
of counsel and comfort letters), and take all such other customary and reasonable actions as the managing underwriters of such
offering may request in order to facilitate the disposition of such Registrable Shares (including, making members of senior management
of the Company available at reasonable times and places to participate in “road-shows” that the managing underwriter
determines are necessary to effect the offering);

 

(viii)
in the case of an underwritten offering in which the Investor participates pursuant to a Demand Registration or a Piggyback Registration,
and to the extent not prohibited by applicable law, (A) make reasonably available, for inspection by the managing underwriters
of such offering and one attorney and accountant acting for such managing underwriters, pertinent corporate documents and financial
and other records of the Company and its subsidiaries and controlled Affiliates, (B) cause the Company’s officers and employees
to supply information reasonably requested by such managing underwriters or attorney in connection with such offering, (C) make
the Company’s independent accountants available for any such managing underwriters’ due diligence and have them provide
customary comfort letters to such underwriters in connection therewith; and (D) cause the Company’s counsel to furnish customary
legal opinions to such underwriters in connection therewith; provided, however, that such records and other information
shall be subject to such confidential treatment as is customary for underwriters’ due diligence reviews;

 

(ix)
use reasonable best efforts to cause all such Registrable Shares to be listed on each primary securities exchange (if any) on
which securities of the same class issued by the Company are then listed;

 

(x)
provide a transfer agent and registrar for all such Registrable Shares not later than the effective date of such Registration
Statement and, a reasonable time before any proposed sale of Registrable Shares pursuant to a Registration Statement, provide
the transfer agent with printed certificates for the Registrable Shares to be sold;

 

(xi)
make generally available to its shareholders a consolidated earnings statement (which need not be audited) for a period of 12
months beginning after the effective date of the Registration Statement as soon as reasonably practicable after the end of such
period, which earnings statement shall satisfy the requirements of an earning statement under Section 11(a) of the Securities
Act and Rule 158 thereunder; and

 

    	10

    	 

    

 

(xii)
promptly notify the Investors and the managing underwriters of any underwritten offering, if any:

 

(1)
when the Registration Statement, any pre-effective amendment, the Prospectus or any Prospectus supplement or any post-effective
amendment to the Registration Statement has been filed and, with respect to the Registration Statement or any post-effective amendment,
when the same has become effective;

 

(2)
of any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for any additional
information regarding the Investors;

 

(3)
of the notification to the Company by the SEC of its initiation of any proceeding with respect to the issuance by the SEC of any
stop order suspending the effectiveness of the Registration Statement; and

 

(4)
of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Shares
for sale under the applicable securities or blue sky laws of any jurisdiction.

 

For
the avoidance of doubt, the provisions of clauses (vii), (viii), (xi) and (xii) of this Section 6(a) shall apply only in respect
of an underwritten offering.

 

(b)
No Registration Statement (including any amendments thereto) shall contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the statements therein not misleading, and no Prospectus
(including any supplements thereto) shall contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, in each case, except
for any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact made
in reliance on and in conformity with written information furnished to the Company by or on behalf of the Investors or any underwriter
or other distributor specifically for use therein.

 

(c)
At all times after the Company has filed a registration statement with the SEC pursuant to the requirements of the Securities
Act and until the Termination Date, the Company shall use reasonable best efforts to continuously maintain in effect the registration
statement of Common Stock under Section 12 of the Exchange Act and to use reasonable best efforts to file all reports required
to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, all
to the extent required to enable the Investors to be eligible to sell Registrable Shares (if any) pursuant to Rule 144 under the
Securities Act.

 

(d)
The Company may require the Investors and each distributor of Registrable Shares as to which any registration is being effected
to furnish to the Company information regarding such Person and the distribution of such securities as the Company may from time
to time reasonably request in connection with such registration.

 

    	11

    	 

    

 

(e)
The Investors agree by having their Common Stock treated as Registrable Shares hereunder that, upon being advised in writing by
the Company of the occurrence of an event pursuant to Section 6(a)(vi), the Investors will immediately discontinue (and direct
any other Persons making offers and sales of Registrable Shares to immediately discontinue) offers and sales of Registrable Shares
pursuant to any Registration Statement (other than those pursuant to a plan that is in effect prior to such time and that complies
with Rule 10b5-1 of the Exchange Act) until it is advised in writing by the Company that the use of the Prospectus may be resumed
and is furnished with a supplemented or amended Prospectus as contemplated by Section 6(a)(vi), and, if so directed by the Company,
the Investor will deliver to the Company all copies, other than permanent file copies then in the Investors’ possession,
of the Prospectus covering such Registrable Shares current at the time of receipt of such notice.

 

(f)
The Company may prepare and deliver an issuer free-writing prospectus (as such term is defined in Rule 405 under the Securities
Act) in lieu of any supplement to a prospectus, and references herein to any “supplement” to a Prospectus shall include
any such issuer free-writing prospectus. Neither the Investors nor any other seller of Registrable Shares may use a free-writing
prospectus to offer or sell any such shares without the Company’s prior written consent.

 

(g)
It is understood and agreed that any failure of the Company to file a registration statement or any amendment or supplement thereto
or to cause any such document to become or remain effective or usable within or for any particular period of time as provided
in Section 2, 4 or 6 or otherwise in this Agreement, due to reasons that are not reasonably within its control, or due to any
refusal of the SEC to permit a registration statement or prospectus to become or remain effective or to be used because of unresolved
SEC comments thereon (or on any documents incorporated therein by reference) despite the Company’s good faith and reasonable
best efforts to resolve those comments, shall not be a breach of this Agreement.

 

(h)
It is further understood and agreed that the Company shall not have any obligations under this Section 6 at any time on or after
the Termination Date, unless an underwritten offering in which the Investor participates has been priced but not completed prior
to the Termination Date, in which event the Company’s obligations under this Section 6 shall continue with respect to such
offering until it is so completed (but not more than 60 days after the commencement of the offering).

 

(i)
Notwithstanding anything to the contrary in this Agreement, the Company shall not be required to file a Registration Statement
or include Registrable Shares in a Registration Statement unless it has received from the Investors, at least five days prior
to the anticipated filing date of the Registration Statement, requested information required to be provided by the Investor for
inclusion therein.

 

Section
7. Registration Expenses.

 

(a)
All expenses incident to the Company’s performance of or compliance with this Agreement, including all registration and
filing fees, fees and expenses of compliance with securities or blue sky laws, FINRA fees, listing application fees, printing
expenses, transfer agent’s and registrar’s fees, cost of distributing Prospectuses in preliminary and final form as
well as any supplements thereto, and fees and disbursements of counsel for the Company and all independent certified public accountants
and other Persons retained by the Company (all such expenses being herein called “Registration Expenses”) (but
not including any underwriting discounts or commissions attributable to the sale of Registrable Shares or fees and expenses of
counsel and any other advisor representing any underwriters or other distributors), shall be borne by the Company. The Investors
shall bear the cost of all underwriting discounts and commissions associated with any sale of Registrable Shares and shall pay
all of its own costs and expenses, including all fees and expenses of any counsel (and any other advisers) representing the Investor
and any stock transfer taxes.

 

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(b)
The obligation of the Company to bear the expenses described in Section 7(a) shall apply irrespective of whether a registration,
once properly demanded or requested becomes effective or is withdrawn or suspended; provided, however, that Registration
Expenses for any Registration Statement withdrawn solely at the request of the Investor (unless withdrawn following commencement
of a Suspension Period pursuant to Section 4) shall be borne by the Investor.

 

Section
9. Indemnification.

 

(a)
The Company shall indemnify, to the fullest extent permitted by law, the Investors and each Person who controls an Investor (within
the meaning of the Securities Act) against all losses, claims, damages, liabilities, judgments, costs (including reasonable costs
of investigation) and expenses (including reasonable attorneys’ fees) arising out of or based upon any untrue or alleged
untrue statement of a material fact contained in any Registration Statement or Prospectus or any amendment thereof or supplement
thereto or arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, except insofar as the same are made in reliance and in conformity with information
furnished in writing to the Company by the Investor expressly for use therein. In connection with an underwritten offering in
which the Investor participates conducted pursuant to a registration effected hereunder, the Company shall indemnify each participating
underwriter and each Person who controls such underwriter (within the meaning of the Securities Act) to the same extent as provided
above with respect to the indemnification of the Investors.

 

(b)
In connection with any Registration Statement in which the Investors are participating, the Investors shall furnish to the Company
in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus,
or amendment or supplement thereto, and shall indemnify, severally and not jointly, to the fullest extent permitted by law, the
Company, its officers and directors and each Person who controls the Company (within the meaning of the Securities Act) against
all losses, claims, damages, liabilities, judgments, costs (including reasonable costs of investigation) and expenses (including
reasonable attorneys’ fees) arising out of or based upon any untrue or alleged untrue statement of material fact contained
in the Registration Statement or Prospectus, or any amendment or supplement thereto, or arising out of or based upon any omission
or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading,
but only to the extent that the same are made in reliance and in conformity with information furnished in writing to the Company
by or on behalf of the Investor expressly for use therein.

 

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(c)
Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying Person of any claim
with respect to which it seeks indemnification and (ii) permit such indemnifying Person to assume the defense of such claim with
counsel reasonably satisfactory to the indemnified Person. Failure so to notify the indemnifying Person shall not relieve it from
any liability that it may have to an indemnified Person except to the extent that the indemnifying Person is materially and adversely
prejudiced thereby. The indemnifying Person shall not be subject to any liability for any settlement made by the indemnified Person
without its consent (but such consent will not be unreasonably withheld). An indemnifying Person who is entitled to, and elects
to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (in addition to
one local counsel) for all Persons indemnified (hereunder or otherwise) by such indemnifying Person with respect to such claim
(and all other claims arising out of the same circumstances), unless in the reasonable judgment of any indemnified Person there
may be one or more legal or equitable defenses available to such indemnified Person which are in addition to or may conflict with
those available to another indemnified Person with respect to such claim, in which case such maximum number of counsel for all
indemnified Persons shall be two rather than one). If an indemnifying Person is entitled to, and elects to, assume the defense
of a claim, the indemnified Person shall continue to be entitled to participate in the defense thereof, with counsel of its own
choice, but, except as set forth above, the indemnifying Person shall not be obligated to reimburse the indemnified Person for
the costs thereof. The indemnifying Person shall not consent to the entry of any judgment or enter into or agree to any settlement
relating to a claim or action for which any indemnified Person would be entitled to indemnification by any indemnified Person
hereunder unless such judgment or settlement imposes no ongoing obligations on any such indemnified Person and includes as an
unconditional term the giving, by all relevant claimants and plaintiffs to such indemnified Person, a release, satisfactory in
form and substance to such indemnified Person, from all liabilities in respect of such claim or action for which such indemnified
Person would be entitled to such indemnification. The indemnifying Person shall not be liable hereunder for any amount paid or
payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified
Person unless the indemnifying Person has also consented to such judgment or settlement.

 

(d)
The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made
by or on behalf of the indemnified Person or any officer, director or controlling Person of such indemnified Person and shall
survive the transfer of securities and the Termination Date but only with respect to offers and sales of Registrable Shares made
before the Termination Date or during the period following the Termination Date referred to in Section 6(h).

 

(e)
If the indemnification provided for in or pursuant to this Section 8 is due in accordance with the terms hereof, but is held by
a court to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses referred to herein,
then each applicable indemnifying Person, in lieu of indemnifying such indemnified Person, shall contribute to the amount paid
or payable by such indemnified Person as a result of such losses, claims, damages, liabilities or expenses in such proportion
as is appropriate to reflect the relative fault of the indemnifying Person on the one hand and of the indemnified Person on the
other in connection with the statements or omissions which result in such losses, claims, damages, liabilities or expenses as
well as any other relevant equitable considerations. The relative fault of the indemnifying Person on the one hand and of the
indemnified Person on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
indemnifying Person or by the indemnified Person, and by such Person’s relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. In no event shall the liability of the indemnifying Person be
greater in amount than the amount for which such indemnifying Person would have been obligated to pay by way of indemnification
if the indemnification provided for under Section 8(a) or 8(b) hereof had been available under the circumstances.

 

    	14

    	 

    

 

Section
9. Securities Act Restrictions.

 

The
Registrable Shares are restricted securities under the Securities Act and may not be offered or sold except pursuant to an effective
registration statement or an available exemption from registration under the Securities Act. Accordingly, the Investor shall not,
directly or through others, offer or sell any Registrable Shares except pursuant to a Registration Statement as contemplated herein
or pursuant to Rule 144 or another exemption from registration under the Securities Act, if available. Prior to any transfer of
Registrable Shares other than pursuant to an effective registration statement, the Investor shall notify the Company of such transfer
and the Company may require the Investor to provide, prior to such transfer, such evidence that the transfer will comply with
the Securities Act (including written representations or an opinion of counsel) as the Company may reasonably request. The Company
may impose stop-transfer instructions with respect to any Registrable Shares that are to be transferred in contravention of this
Agreement. Any certificates representing the Registrable Shares may bear a legend (and the Company’s share registry may
bear a notation) referencing the restrictions on transfer contained in this Agreement (and the Purchase Agreement, if any), until
such time as such securities have ceased to be (or are to be transferred in a manner that results in their ceasing to be) Registrable
Shares. Subject to the provisions of this Section 9, the Company will replace any such legended certificates with unlegended certificates
promptly upon surrender of the legended certificates to the Company or its designee and cause shares that cease to be Registrable
Shares to bear a general unrestricted CUSIP number, in order to facilitate a lawful transfer or at any time after such shares
cease to be Registrable Shares.

 

Section
11. Miscellaneous.

 

(a)
Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in
writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, by fax or email transmission,
upon confirmation of receipt, or (b) on the second business day following the date of dispatch if delivered by a recognized next
day courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may
be designated in writing by the party to receive such notice.

 

	If
    to the Company, to:	Acorn
    Energy, Inc.
	 	1000
    N West Street
	 	Suite
    1200
	 	Wilmington,
    DE 19801
	 	Telephone:
    (410) 654-3315___

 

	 	Attn.: Chief Executive Officer
	 	 
	with a copy to:	Eilenberg & Krause LLP
	(which shall not constitute notice)	11 East 44th Street, 19th Floor
	 	New York, NY 10017
	 	Telephone: (212) 994-4770
	 	Attn.: Sheldon Krause, Esq.

 

If
to the Investors, to the addresses in the Company’s records.

 

(b)
No Waivers. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

 

(c)
Assignment. Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof
shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right,
remedy, obligation or liability hereunder without such consent shall be void, except an assignment, in the case of a merger or
consolidation where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which
is the survivor of such merger or consolidation or the purchaser in such sale.

 

(d)
No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any
person or entity other than the Company and the Investor, any benefits, rights, or remedies (except as specified in Section 9
hereof).

 

(e)
Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York,
without giving effect to any choice or conflict of laws provision or rule (whether of the State of New York or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of New York.

 

(f)
Dispute Resolution. Any controversy or claim arising out of or relating to this Agreement shall be settled exclusively
by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”)
in the City of New York, County of New York, and judgment upon the award rendered by the arbitrator may be entered in any court
located in any jurisdiction. The parties expressly consent to the binding arbitral jurisdiction of the AAA in any and all proceedings
and the respective entry of award thereof as judgment in any of the permitted courts. Such arbitration shall be conducted by three
arbitrators appointed in accordance with the rules of the AAA as then in effect, each of whom shall be an attorney admitted to
practice in the State of New York with not less than twenty years of corporate and securities transactional legal experience.
Each of the parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any such proceeding
and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such proceeding
brought in any such court has been brought in an inconvenient forum.

 

    	15

    	 

    

 

(g)
Counterparts and Electronic Transmission. This Agreement may be executed in any number of separate counterparts, including
via electronic means, each such counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this Agreement may be delivered by fax or other electronic transmission
(including “.pdf”, “.tif” or similar format) and will be deemed as sufficient as if actual signature pages
had been delivered.

 

(h)
Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes and replaces all other prior agreements, written or oral, among the parties hereto with respect to the subject
matter hereof.

 

(i)
Captions. The headings and other captions in this Agreement are for convenience and reference only and shall not be used
in interpreting, construing or enforcing any provision of this Agreement.

 

(j)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic
or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon
such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of
the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the fullest extent possible.

 

(k)
Restriction on Third-Party Registration Rights. The Company agrees that it shall not grant any registration rights to any
third party (i) unless such rights are expressly made subject to the rights of Investor in a manner consistent with this Agreement
or (ii) if such registration rights are senior to, or take priority over, the registration rights granted to the Investor under
this Agreement.

 

(l)
Amendment. No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer
of a duly authorized representative of each party.

 

(m)
Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and
things and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto
reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

 

[Signature
page follows]

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of , 2019 by their respective officers thereunto
duly authorized.

 

	ACORN
    ENERGY, INC.	 	LEAPTIDE
    CAPITAL MANAGEMENT LLC
	 	 	 
	By:	     	 	By:	 
	Name:	 	 	Name:	 
	Title	 	 	Title	                    
	 	 	 	 	 
	 	 	 
	Michael
    Osterer	 	Gary
    Mohr
	 	 	 	 	 
	 	 	 	 	 
	Jan
    H. Loeb	 	 	 

 

    	17

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