Document:

Neither
the issuance and sale of this Note nor any shares of Series A Preferred Stock issuable upon conversion of this Note, Nor any shares
of common stock issuable upon conversion of the shares of Series A Preferred Stock (collectively, the “Securities”)
have been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state
securities laws. None of the Securities may be offered for sale, sold, transferred or assigned (i) in the absence of (a) an effective
registration statement for such Securities under the Securities Act, or (b) an opinion of counsel (selected by Holder and reasonably
acceptable to Parent), in a form reasonably acceptable to Parent, that such Securities may be offered for sale, sold, assigned
or transferred pursuant to an exemption from registration or (ii) unless the Holder provides Parent with assurance (reasonably
satisfactory to Parent) that such Securities can be sold, assigned or transferred pursuant to Rule 144.

 

POWERFLEET,
INC.

 

CONVERTIBLE
PROMISSORY NOTE

 

	No:
    1	Issuance
    Date: October 3, 2019
	Principal:
    $5,000,000.00	 

 

FOR
VALUE RECEIVED, PowerFleet, Inc., a Delaware corporation (“Parent”), hereby promises to pay to the order
of [______] or its registered assigns (“Holder”) the amount set out above as the principal (as reduced pursuant
to the terms hereof, the “Principal”) when due, whether upon the Maturity Date (as defined below), acceleration
or otherwise (in each case, in accordance with the terms hereof) and to accrue interest (“Interest”) on all
outstanding Principal at the interest rate of ten percent (10%) per annum, subject to Section 4 below (the “Interest
Rate”), from October 3, 2019 (the “Issuance Date”) until the same becomes due and payable, whether
upon the Maturity Date, acceleration, conversion or otherwise (in each case, in accordance with the terms hereof). This Convertible
Promissory Note, including all Convertible Promissory Notes issued in exchange, transfer or replacement hereof, is referred to
herein as this “Note.” This Note is an unsecured obligation of Parent.

 

This
Note is being issued to Holder, as contemplated by Section 4.01 of that certain Investment and Transaction Agreement, dated as
of March 13, 2019 (as subsequently amended by that certain Amendment No. 1 dated as of May 16, 2019, that certain Amendment No.
2 dated as of June 27, 2019 and that certain Amendment No. 3 dated as of the Issuance Date and as may be further amended, supplemented
or modified from time to time in accordance with the terms of the Investment Agreement, the “Investment Agreement”),
by and among Parent, I.D. Systems, Inc., a Delaware corporation (“IDSY”), PowerFleet US Acquisition Inc., a
Delaware corporation and wholly-owned subsidiary of Parent, and the investors set forth on Schedule I, annexed thereto, as such
Schedule may be amended from time to time in accordance with the terms of the Investment Agreement. Capitalized terms used and
not defined herein shall have the respective meanings ascribed to them in the Investment Agreement. This Note, which is referred
to as a Convertible Note in the Investment Agreement, is subject to the following terms and conditions:

 

1.
Definitions. For purposes of this Note:

 

(a)
“Conversion Amount” has the meaning set forth in Section 5(a).

 

(b)
“Conversion Date” has the meaning set forth in Section 5(a).

 

    	 	 	 

     

    

 

(c)
“Event of Default” has the meaning set forth in Section 7(a).

 

(d)
“Default Interest Event” has the meaning set forth in Section 4(a).

 

(e)
“Maturity Date” has the meaning set forth in Section 2.

 

(f)
“Maximum Rate” has the meaning set forth in Section 4(b).

 

(g)
“Note Conversion Shares” has the meaning set forth in Section 5.

 

(h)
“Note Conversion Price” means the then current “Series A Issue Price,” as defined in and determined
under the Parent Charter.

 

(i)
“Note Underlying Shares” means the shares of Parent Common Stock issuable upon conversion of the Note Conversion
Shares.

 

(j)
“Parent Stockholder Approval” has the meaning set forth in Section 6(a).

 

(k)
“Prepayment Premium” means, as of the date of determination, the amount, not less than zero, equal to ten percent
(10.0%) of the Principal amount less all accrued Interest up to such date.

 

(l)
“Proposal” has the meaning set forth in Section 6(a).

 

(m)
“Proxy Statement” has the meaning set forth in Section 6(b)(i).

 

(n)
“Stockholders Meeting” has the meaning set forth in Section 6(a).

 

2.
Maturity. Unless this Note has been previously converted or indefeasibly prepaid in full in accordance with the
terms of Section 5 or Section 3 below, respectively, the entire outstanding Principal balance and all accrued but unpaid Interest
thereon shall become fully due and payable on September 30, 2020 (the “Maturity Date”).

 

3.
Prepayment; Payments.

 

(a)
No amounts due under this Note may be prepaid in whole or in part prior to the Maturity Date without the written consent of Holder,
except that Parent may prepay, in full and not in part, the Principal amount, together with all accrued but unpaid Interest up
to the date of prepayment, if concurrently with (and in addition to) such payment, Parent pays to Holder, in cash, the Prepayment
Premium. The Prepayment Premium shall also be payable in the event of conversion of this Note prior to the Maturity Date in accordance
with Section 5(a) or an Event of Default. Parent acknowledges and agrees that the Prepayment Premium shall be paid regardless
of whether the prepayment was made voluntarily or involuntarily, or before or after any acceleration of Parent’s obligations
under this Note, and regardless of whether the payment is made in connection with an Event of Default, as liquidated damages and
compensation for the costs of making funds available under this Note, and as a consequence of a reasonable calculation of Holder’s
lost profits in view of the difficulties and impracticability of determining actual damages resulting from such payment.

 

    	 	-2-	 

     

    

 

(b)
Payments made by Parent to Holder under this Note shall be credited first to enforcement or collection costs, if any, second,
to the Prepayment Premium, if any, third, to all accrued (through the date of prepayment) and unpaid Interest, and the remainder,
if any, applied to the Principal balance. Whenever any payment of cash is to be made by Parent to any Person pursuant to this
Note, such payment shall be made by wire transfer of immediately available funds in lawful money of the United States of America.
Amounts repaid or prepaid may not be reborrowed. All amounts payable by Parent hereunder shall be made without set-off or counterclaim.

 

4.
Interest; Interest Rate.

 

(a)
Interest on this Note shall accrue from and after the Issuance Date until the indefeasible payment in full of all amounts due
under this Note. Interest shall be computed on the basis of actual number of days elapsed over a 360-day year. Interest on this
Note shall accrue at the Interest Rate; provided, however, that if Holder shall default in payment of Principal
or Interest or any other amount becoming due hereunder, whether at scheduled maturity, by mandatory prepayment, acceleration or
otherwise, or if any other Event of Default has occurred, or if this Note shall not have been converted and any portion of the
Principal or Interest shall remain outstanding after the Maturity Date (each, a “Default Interest Event”),
then commencing on the date of the occurrence of such Default Interest Event and on each monthly anniversary thereafter, the Interest
Rate shall increase by 100 basis points until the indefeasible payment in full of all amounts due under this Note or in the case
of an Event of Default, such Event of Default has been cured, but in no event shall the Interest Rate exceed seventeen and one-half
percent (17.5%) per annum. From and after the occurrence of any Default Interest Event or in the case of an Event of Default,
until such Event of Default has been cured, all accrued and unpaid Interest shall be payable upon demand. If this Note converts
pursuant to Section 5, Interest shall be due upon such conversion and shall be payable by way of inclusion of Interest in the
Conversion Amount in accordance with Section 5, otherwise, all Interest shall be payable in cash in accordance with the terms
hereof.

 

(b)
Notwithstanding the foregoing, Parent and Holder intend for this Note to comply in all respects with all provisions of Law and
not to violate, in any way, any legal limitations on interest charges. Accordingly, if, for any reason, Parent is required to
pay, or has paid, Interest at a rate in excess of the highest rate of interest that may be charged by Holder or that Parent may
legally contract to pay under applicable Law (the “Maximum Rate”), then the applicable interest rate shall
be deemed to be reduced, automatically and immediately, to the Maximum Rate, and such Interest payable hereunder shall be computed
and paid at the Maximum Rate and the portion of all prior payments of Interest in excess of then applicable Maximum Rate shall
be deemed to have been payments in reduction of the outstanding principal of this Note and applied as partial prepayments.

 

5.
Conversion of Note. This Note shall be convertible into shares of Series A Preferred Stock (the “Note Conversion
Shares”), on the terms and conditions set forth in this Section 5.

 

(a)
Conversion upon Parent Stockholder Approval. If Parent Stockholder Approval is obtained before the Maturity Date, then
the entire outstanding Principal balance and all accrued but unpaid Interest thereon, together with the applicable Prepayment
Premium (such aggregate amount, the “Conversion Amount”) will automatically upon the effectiveness of such
Parent Stockholder Approval, without further action, notice or deed on the part of any Person, convert into a number of Note Conversion
Shares equal to the quotient (rounded up to the nearest whole number of shares) of (i) the applicable Conversion Amount divided
by (ii) the Note Conversion Price. Notwithstanding anything set forth in this Note to the contrary, the Note Conversion Shares
shall be deemed to have been issued on the date on which the Parent Stockholder Approval is obtained (the “Conversion
Date”). From and after the Conversion Date, this Note shall represent the right of Holder to receive the Note Conversion
Shares in accordance with Section 5(b), and Holder shall be deemed for all purposes a record holder of the Note Conversion Shares
as of the Conversion Date, regardless of whether such Note Conversion Shares have been received by Holder or this Note has been
surrendered in accordance with Section 19 (which actions shall be purely ministerial in nature and shall not affect the deemed
issuance of the Note Conversion Shares to Holder on the Conversion Date).

 

    	 	-3-	 

     

    

 

(b)
Notice of Issuance; Delivery of Note. Parent shall, as soon as practicable (but in no event later than three (3) Business
Days) after the Conversion Date, issue and deliver to Holder or to its nominees, a notice of issuance or uncertificated shares
in lieu of certificates for the full number of Note Conversion Shares deemed issued on the Conversion Date in accordance with
the provisions of such Section 5(a).

 

6.
Proxy Statement; Stockholders Meeting.

 

(a)
Stockholders Meeting. At any time following the execution and delivery of this Note, Parent may, but shall not be obligated
to, call a meeting of its stockholders, which may be its annual meeting of stockholders (the “Stockholders Meeting”)
to seek approval of Parent’s stockholders for the issuance of all of the Note Conversion Shares in accordance with Nasdaq
Listing Rule 5635 (the “Proposal” and the approval of the Proposal by the holders of the requisite number of
shares of Parent Common Stock as contemplated by this Section 6, the “Parent Stockholder Approval”). In connection
with the Stockholders Meeting, Parent, acting through the Parent Board, shall (i) recommend the approval of the Proposal by Parent’s
stockholders in the Proxy Statement (as defined below), unless such recommendation would result in a violation of the fiduciary
duties of the Parent Board under applicable Law, (ii) otherwise comply with all legal and Nasdaq requirements applicable to such
meeting, (iii) use its reasonable best efforts to solicit from its stockholders proxies in favor of (it being understood that
a proxy card will be deemed voted “in favor of” a matter to be acted upon by Parent’s stockholders if it provides
the stockholder with the ability to either vote for, vote against or abstain from voting on, such matter) the approval of the
Proposal and (iv) subject to the parenthetical in the immediately preceding clause (iii), take all other actions reasonably necessary
or advisable to secure the approval of the Proposal in order to satisfy the requirement of applicable Law and the rules and regulations
of Nasdaq.

 

(b)
Proxy Materials.

 

(i)
In the event Parent calls a Stockholders Meeting, Parent shall cause to be prepared and filed with the SEC proxy materials, including
a proxy statement and form of proxy (collectively, as amended or supplemented, the “Proxy Statement”), for
use at the Stockholders Meeting. Parent shall use its reasonable best efforts to ensure that the Proxy Statement complies as to
form in all material respects with the rules and regulations promulgated by the SEC under the Securities Act and the Exchange
Act, and with all other applicable Law. The Proxy Statement shall include (i) a statement to the effect that the Parent Board
has determined that the Proposal is in the best interests of Parent and its stockholders and has approved and declared advisable
the issuance of the Note Conversion Shares and (ii) the recommendation of the Parent Board in favor of the approval of the Proposal,
unless such recommendation would result in a violation of the fiduciary duties of the Parent Board under applicable Law.

 

    	 	-4-	 

     

    

 

(ii)
Parent, on the one hand, and Holder, on the other hand, shall furnish all information concerning such party and its Affiliates
to the other, and provide such other assistance, as may be reasonably requested by such other party and shall otherwise reasonably
assist and cooperate with the other in the preparation of the content of the Proxy Statement related to the Proposal, and the
resolution of any comments received by Parent from the SEC. Parent shall give Holder the reasonable opportunity to review and
comment on the Proxy Statement (solely with respect to the Proposal) and Parent shall give due consideration to Holder’s
comments with respect thereto. Parent shall make all necessary filings with respect to the Proposal under the Securities Act and
the Exchange Act and any necessary state securities Laws or “blue sky” notice requirements in connection with the
issuance of the Note Conversion Shares. Parent shall use its reasonable best efforts to cause the Proxy Statement to be delivered
to its stockholders in accordance with applicable Law and the rules and regulations of Nasdaq. Notwithstanding anything herein
to the contrary, to the extent reasonably practicable, Parent shall cooperate and consult, in good faith, with Holder with respect
to the filing with, or submission to, the SEC and Nasdaq of all forms, reports, applications or other documents to be so filed
or submitted in connection with the Proposal, which shall include, without limitation, providing Holder the reasonable opportunity
to review and comment on any such form, report, application or other document. Parent shall give due consideration to Holder’s
comments with respect to any such form, report, application or other document.

 

(iii)
If at any time prior to the receipt of the Parent Stockholder Approval, any information relating to Parent or Holder, or any of
their respective Affiliates, directors or officers, should be discovered by such party which is required to be set forth in an
amendment or supplement to the Proxy Statement, so that such document would not include any misstatement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, the party which discovers such information shall promptly notify the other party and
an appropriate amendment or supplement describing such information shall be promptly filed with the SEC and, with respect to the
Proxy Statement, to the extent required by applicable Law, disseminated to the stockholders of Parent.

 

(iv)
Parent shall notify Holder promptly of the receipt of any comments, whether written or oral, from the SEC or the staff of the
SEC and of any request by the SEC or the staff of the SEC for amendments or supplements to the Proxy Statement related to the
Proposal or for additional information and shall supply, within one (1) day of receipt thereof, Holder with copies of all correspondence
between Parent or its representatives on the one hand, and the SEC or the staff of the SEC, on the other hand, with respect to
the Proposal. Parent shall give Holder and its counsel a reasonable opportunity to participate in preparing the proposed response
by Parent and/or Parent to comments received from the SEC or its staff related to the Proposal and to provide comments on any
proposed response thereto, and Parent shall give due consideration to any such comments and shall not submit any such response
without Holder’s prior review. Parent shall use reasonable best efforts to respond promptly to any comments of the SEC or
its staff with respect to the Proxy Statement. No amendment or supplement to the content of the Proxy Statement related to the
Proposal shall be made by Parent without Holder’s prior review.

 

7.
Events of Default.

 

(a)
Event of Default. Each of the following events shall constitute an “Event of Default”:

 

(i)
Parent breaches any covenant or agreement in this Note (including, for the avoidance of doubt, any covenant or agreement set forth
in Section 6) and, to the extent such breach is curable, fails to cure such breach within 10 days after having received written
notice from Holder thereof;

 

    	 	-5-	 

     

    

 

(ii)
Parent breaches in any material respect any covenant, agreement or representation or warranty in any other Transaction Document
and, to the extent such breach is curable, fails to cure such breach within 10 days after having received written notice from
Holder thereof;

 

(iii)
Parent’s failure to pay to Holder any amount of Principal or Interest when and as due under this Note;

 

(iv)
the occurrence of a breach, default or event of default under any now or hereafter existing indebtedness of the Parent or any
Subsidiary which gives rise to the acceleration of such indebtedness;

 

(v)
the incurrence of any indebtedness by Parent or any Subsidiary of Parent other than incurrences of indebtedness by Powerfleet
Israel Holding Company Ltd. under its existing credit agreement with Bank Hapoalim B.M. in accordance with the terms of such agreement
as in effect on the Issuance Date;

 

(vi)
the issuance, delivery or sale of, any equity securities of Parent or any Subsidiary of Parent or any securities convertible into
or exchangeable or exercisable for equity securities of Parent or any Subsidiary of Parent, other than the issuance of any Parent
Common Stock;

 

(vii)
Parent files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium Law or any other
Law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors
or takes any corporate action in furtherance of any of the foregoing; or

 

(viii)
an involuntary petition is filed against Parent (unless such petition is dismissed or discharged within 60 days) under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar
official) is appointed to take possession, custody or control of any material part of the property of Parent (unless such appointment
is dismissed or discharged within 60 days).

 

(b)
Rights upon Event of Default. Upon the occurrence of any Event of Default described in clause (vii) or (viii) of Section
7(a), all Principal and Interest outstanding under this Note, together with the Prepayment Premium, shall become immediately due
and payable in full, without presentment, demand, notice, protest or legal process of any kind, all of which are hereby expressly
waived by Parent, and upon the occurrence of any other Event of Default, Holder may at its option, without presentment, demand,
notice, protest or legal process of any kind, all of which are hereby expressly waived by Parent, declare all Principal and Interest
outstanding under this Note due and payable; and in either case, Holder may exercise any other remedy specifically granted under
this Note, the other Transaction Documents and now or hereafter existing in equity, at law, or by virtue of statute (including,
without limitation, the Uniform Commercial Code).

 

8.
Noncircumvention. Parent hereby covenants and agrees that Parent will not, by amendment of its certificate of incorporation,
bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required
to protect the rights of Holder.

 

    	 	-6-	 

     

    

 

9.
Rights of Note Conversion Shares. Upon issuance, the Note Conversion Shares shall have all the rights, preferences,
powers, privileges and restrictions of the Series A Preferred Stock described in the Parent Charter as then in effect. For the
avoidance of doubt, the Note Conversion Shares shall be convertible into Note Underlying Shares at the conversion price equal
to the then current Series A Conversion Price in accordance with the Parent Charter.

 

10.
Voting Rights. Holder shall have no voting rights as Holder of this Note, except as required by Law, including,
but not limited to, the General Corporation Law of the State of Delaware, and as expressly provided in this Note, the Parent Charter
or any other Transaction Documents. For the avoidance of doubt, Holder shall have no right to vote as a holder of Note Conversion
Shares unless and until this Note is converted in accordance with Section 5 and then subject to the terms of the Parent Charter.

 

11.
Amendment. Provisions of this Note may be amended, modified or waived only by the written consent of Parent and
the Holder.

 

12.
Transfer. This Note, the Note Conversion Shares issuable upon conversion of this Note and the Note Underlying Shares
may not be offered for sale, sold, transferred or assigned (a) in the absence of (i) an effective registration statement for this
Note, the Note Conversion Shares issuable upon conversion of this Note or the Note Underlying Shares, or (ii) an opinion of counsel
(selected by Holder and reasonably acceptable to Parent), in a form reasonable acceptable to Parent, that this Note, the Note
Conversion Shares issuable upon conversion of this Note and the Note Underlying Shares may be offered for sale, sold, assigned
or transferred pursuant to an exemption from registration; provided that such opinion of counsel shall not be required
in connection with any such sale, assignment or transfer to an institutional accredited investor that prior to such sale, assignment
or transfer is a holder of Notes or an Affiliate of Holder, or (b) Holder provides Parent with assurance (reasonably satisfactory
to Parent) that such Note, the Note Conversion Shares issuable upon the conversion of this Note or the Note Underlying Shares
can be sold, assigned or transferred pursuant to Rule 144.

 

13.
Reissuance of this Note.

 

(a)
Transfer. The Note may be transferred or otherwise assigned only by surrender of this Note and issuance of a new Note in
accordance with this Section 13, and neither this Note nor any interests therein may be sold, transferred or assigned to any Person
except upon satisfaction of the conditions specified in this Section 13. If this Note is to be transferred or assigned, Holder
shall surrender this Note to Parent, whereupon Parent will forthwith issue and deliver upon the order of Holder a new Note (in
accordance with Section 13(d)), registered as Holder may request, representing the outstanding Principal being transferred by
Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 13(d))
to Holder representing the outstanding Principal not being transferred. Notwithstanding anything to the contrary in this Section
13, transfers of this Note shall be subject to Section 12.

 

(b)
Lost, Stolen or Mutilated Note. Upon receipt by Parent of evidence reasonably satisfactory to Parent of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by
Holder to Parent in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, Parent shall
execute and deliver to Holder a new Note (in accordance with Section 13(d)) representing the outstanding Principal.

 

    	 	-7-	 

     

    

 

(c)
Note Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by Holder at the principal
office of Parent, for a new Note or Notes (in accordance with Section 13(d) and in Principal amounts of at least $1,000) representing
in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by Holder at the time of such surrender.

 

(d)
Issuance of New Notes. Whenever Parent is required to issue a new Note pursuant to the terms of this Note, such new Note:
(i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note and subject to the
other provisions of this Section 13, the Principal remaining outstanding, (iii) shall have an issuance date, as indicated on the
face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as
this Note, and (v) shall represent accrued Interest on the Principal of such new Note, from the Issuance Date.

 

14.
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The rights and remedies of Holder
provided in this Note shall be cumulative and in addition to all, and not exclusive of any, other rights and remedies available
to Holder under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit Holder’s right to pursue actual and consequential damages
for any failure by Parent to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by Holder and shall not, except as expressly
provided herein, be subject to any other obligation of Parent (or the performance thereof). Parent acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to Holder and that the remedy at law for any such breach may be
inadequate. Parent therefore agrees that, in the event of any such breach or threatened breach, Holder shall be entitled, in addition
to all other available remedies, to seek an injunction restraining any breach, and to seek to specifically enforce this Note (including,
without limitation, Section 5) without the necessity of showing economic loss and without any bond or other security being required.

 

15.
Payments of Enforcement Costs. If (a) this Note is collected or enforced through any legal proceeding or Holder
otherwise takes action to collect amounts then due under this Note or to enforce the provisions of this Note or (b) there occurs
any bankruptcy, reorganization, receivership of Parent or other proceedings affecting Parent’s creditors’ rights and
involving a claim under this Note, then Parent shall pay the costs incurred by Holder for such collection, enforcement or action
or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, reasonable
attorneys’ fees and disbursements.

 

16.
Construction; Headings. This Note shall be deemed to be jointly drafted by Parent and Holder and shall not be construed
against any Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of,
or affect the interpretation of, this Note.

 

17.
No Waiver. No failure or delay on the part of Holder in the exercise of any power, right or privilege hereunder
shall affect any such power, right or privilege or operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

    	 	-8-	 

     

    

 

18.
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice
shall be given in accordance with the Investment Agreement. Parent shall provide Holder with prompt written notice of all actions
taken pursuant to this Note to the extent required hereunder, including in reasonable detail a description of such action and
the reason therefor.

 

19.
Cancellation. After all Principal, accrued Interest and other amounts at any time owed on this Note have been indefeasibly
paid in full or converted in accordance with Section 5, as the case may be, this Note shall automatically be deemed canceled,
shall, subject to Section 13(b), be surrendered to Parent at the principal office of Parent for cancellation and shall not be
reissued.

 

20.
Waiver of Notice. To the extent permitted by Law, Parent hereby waives demand, notice, presentment, protest, honor,
dishonor and all other demands and notices (other than the notices expressly provided for in this Note) in connection with the
delivery, acceptance, default or enforcement of this Note.

 

21.
Governing Law. This Note shall be governed by and construed in accordance with the Law of the State of Delaware
without giving effect to the principles of conflicts of law thereof or of any other jurisdiction that would result in the application
of the Law of any other jurisdiction.

 

(Signature
page follows)

 

    	 	-9-	 

     

    

 

IN
WITNESS WHEREOF, Parent has caused this Note to be duly executed as of the Issuance Date set forth above.

 

	 	POWERFLEET,
    INC.
	 	 	 
	 	By:	 
	 	Name: 	Ned
    Mavrommatis
	 	Title:	Chief
    Financial Officer

 

ACKNOWLEDGED
AND ACCEPTED:

 

	[_______]	 
	 	 	 
	By:	 	 
	Name:	[_______]	 
	Title:	[_______]	 

 

Signature
Page to PowerFleet, Inc. Convertible Promissory NoteREGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”)
is made and entered into as of October 3, 2019 (the “Agreement Date”), by and among PowerFleet, Inc., a Delaware
corporation (the “Company”), and the several investors signatory hereto (each an “Investor”
and collectively, the “Investors”).

 

This
Agreement is made pursuant to the Investment and Transaction Agreement, dated as of March 13, 2019, by and among the Company,
the Investors and the other parties signatory thereto (the “Investment Agreement”).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and each of the Investors agree as follows:

 

1. Definitions.
Capitalized terms used herein but not otherwise defined herein have the meanings assigned to such terms in the Investment Agreement.
As used in this Agreement, the following terms shall have the following meanings:

 

“1933
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“1934
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly Controls, is Controlled by, or is under common
Control with, such Person.

 

“Agreement”
shall have the meaning set forth in the preamble to this Agreement.

 

“Allowable
Grace Period” shall have the meaning set forth in Section 2(e).

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any securities into which such common stock
may hereinafter be reclassified.

 

“Company”
shall have the meaning set forth in the preamble to this Agreement.

 

“Control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Cutback
Shares” means any Registrable Securities not included in a Demand Registration Statement as a result of a limitation
on the maximum number of shares of Common Stock permitted to be registered by the staff of the SEC pursuant to Rule 415.

 

“Demand
Notice” shall have the meaning set forth in Section 2(a).

 

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

 

    	 	 	 

    	 

    

 

“Effective
Date” means the date that each Registration Statement filed pursuant to Section 2(a) is first declared effective
by the SEC.

 

“Effectiveness
Deadline” means, with respect to each Demand Registration Statement or New Demand Registration Statement, the sixtieth
(60th) calendar day following the applicable Filing Deadline (or, in the event the SEC reviews and has written comments
to such Demand Registration Statement or New Demand Registration Statement, the one hundred twentieth (120th) calendar
day following the applicable Filing Deadline); provided, however, that if the Company is notified by the SEC that
such Demand Registration Statement will not be reviewed or is no longer subject to further review and comments, the Effectiveness
Deadline as to such Registration Statement shall be the fifth (5th) Trading Day following the date on which the Company
is so notified if such date precedes the dates otherwise required above; provided, further, that if the Effectiveness
Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Effectiveness Deadline shall be extended
to the next Business Day on which the SEC is open for business; provided, further, if the Demand Notice giving rise
to such Demand Registration Statement or New Demand Registration Statement was delivered within the first fifteen (15) calendar
days of a fiscal quarter, then the Effective Deadline otherwise calculated under this definition shall be extended (up to fifteen
(15) calendar days) by a like number of calendar days.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(b).

 

“Event”
shall have the meaning set forth in Section 2(c).

 

“Event
Date” shall have the meaning set forth in Section 2(c).

 

“Filing
Deadline” means, with respect to each Demand Registration Statement required to be filed pursuant to Section 2(a),
(i) the thirtieth (30th) day following the delivery to the Company by any Investor of a Demand Notice if Form S-3 is
then available to register the Registrable Securities to be covered by such Demand Registration Statement or (ii) the sixtieth
(60th) day following the delivery to the Company by any Investor of a Demand Notice if Form S-3 is then unavailable
to register the Registrable Securities to be covered by such Demand Registration Statement; provided, however,
that if the Filing Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Filing Deadline
shall be extended to the next Business Day on which the SEC is open for business.

 

“FINRA”
shall have the meaning set forth in Section 2(d)(ii).

 

“Governmental
Authority” means any U.S. or other national, federal, state, provincial, county, municipal or local government, foreign
or domestic, or the government of any political subdivision of any of the foregoing, or any entity, authority, agency, ministry,
board or other similar body exercising executive, legislative, judicial, arbitral, regulatory or administrative authority or functions
of or pertaining to government, including any authority or other self-regulatory organization or quasi-governmental entity established
to perform any of such functions.

 

“Grace
Period” shall have the meaning set forth in Section 2(e).

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c)(i).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c)(i).

 

    	 	- 2 -	 

    	 

    

 

“Investment
Agreement” shall have the meaning set forth in the Recitals.

 

“Investor”
or “Investors” shall have the meaning set forth in the preamble to this Agreement.

 

“Liquidated
Damages” shall have the meaning set forth in Section 2(c).

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

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

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, Governmental Authority or any other form of entity not specifically
listed herein.

 

“Piggyback
Registration” shall have the meaning set forth in Section 2(g)(i).

 

“Principal
Market” means the NASDAQ Global Market.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the 1933 Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

 

“Registrable
Securities” means all of (i) the Shares and (ii) any securities issued or issuable upon any stock split, dividend or
other distribution, recapitalization or similar event with respect to the foregoing, provided, that the Holder has completed
and delivered to the Company a Selling Stockholder Questionnaire; and provided, further, that securities shall cease
to be Registrable Securities (x) upon a sale pursuant to a Registration Statement or Rule 144 under the 1933 Act (in which case,
only such security sold shall cease to be a Registrable Security) or (y) at such time as they may be sold pursuant to Rule 144
without any limitation thereunder (including with respect to volume or manner of sale) or need for current public information
or similar requirements.

 

“Registration
Statements” means any one or more registration statements of the Company filed under the 1933 Act that covers the resale
of any of the Registrable Securities pursuant to the provisions of this Agreement (including, without limitation, any Demand Registration
Statements, any New Demand Registration Statements and any Remainder Demand Registration Statements), amendments and supplements
to such Registration Statements, including post-effective amendments, all exhibits and all material incorporated by reference
or deemed to be incorporated by reference in such Registration Statements.

 

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

 

    	 	- 3 -	 

    	 

    

 

“Rule
144” means Rule 144 promulgated by the SEC pursuant to the 1933 Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“Rule
415” means Rule 415 promulgated by the SEC pursuant to the 1933 Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the SEC pursuant to the 1933 Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

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

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the SEC staff
and (ii) the 1933 Act.

 

“Selling
Stockholder Questionnaire” means a questionnaire in the form attached as Annex B hereto, or such other form of
questionnaire as may reasonably be adopted by the Company from time to time.

 

“Series
A Preferred Shares” means (i) the shares of Series A Preferred Stock issued to the Investors on the Agreement
Date pursuant to the Investment Agreement and (ii) any additional shares of Series A Preferred Stock that are issued or issuable
to the Investors at any time and from time to time after the Agreement Date, including, without limitation, shares of Series A
Preferred Stock issued as payment-in-kind dividends on their respective shares of Series A Preferred Stock in accordance with
the terms thereof.

 

“Shares”
means (i) the shares of Common Stock issued or issuable upon conversion of any Series A Preferred Shares (including, without limitation,
upon any change in the Series A Conversion Price (as that term is defined in the Parent Charter) such that additional shares of
Common Stock become issuable upon conversion of the Series A Preferred Shares), and (ii) any shares of Common Stock issued or
issuable with respect to such Series A Preferred Shares or Conversion Shares as a result of any stock split, stock dividend, recapitalization
or similar event.

 

“Trading
Day” means any day on which the Common Stock is traded on the Principal Market (or, if not traded on the Principal Market,
on any applicable Trading Market); provided that “Trading Day” shall not include any day on which the Common Stock
is scheduled to trade on the Principal Market (or, if not traded on the Principal Market, on any applicable Trading Market) for
less than 4.5 hours; provided, further, that in the event that the Common Stock is not listed or quoted as set forth on a Trading
Market, then Trading Day shall mean a Business Day.

 

“Trading
Market” means whichever of the Principal Market, New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market,
the NASDAQ Capital Market or the OTC Bulletin Board (or any successors to any of the foregoing) on which the Common Stock is listed
or quoted for trading on the date in question.

 

“Transfer
Agent” means American Stock Transfer & Trust Company, LLC, or any successor transfer agent for the Company.

 

    	 	- 4 -	 

    	 

    

 

2. Registration.

 

(a) Registration
Statements. At any time and from time to time following the Agreement Date, any Investor may make up to three (3) demands
for the Company to register under the 1933 Act all of the Registrable Securities not then covered by an existing and effective
Registration Statement by delivering to the Company a written notice of each such demand (each, a “Demand Notice”).
On or prior to each Filing Deadline, the Company shall prepare and file with the SEC a Registration Statement covering the resale
of all of such Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is
not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities
as the Holders may reasonably specify (each, a “Demand Registration Statement”). The Demand Registration Statement
shall be on Form S-3 (except if the Company is then ineligible to register for resale the Registrable Securities on Form S-3,
in which case such registration shall be on such other form available to register for resale the Registrable Securities as a secondary
offering) subject to the provisions of Section 2(e) and shall contain (except if otherwise required pursuant to written
comments received from the SEC upon a review of such Registration Statement) the “Plan of Distribution” section
attached hereto as Annex A. Notwithstanding the registration obligations set forth in this Section 2, in the event
the SEC informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered
for resale as a secondary offering on a single registration statement, the Company agrees to promptly (1) inform each of the holders
thereof and use its commercially reasonable efforts to file amendments to the Demand Registration Statement as required by the
SEC and/or (2) withdraw the Demand Registration Statement and file a new registration statement (a “New Demand Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the
SEC, on Form S-3 or such other form available to register for resale the Registrable Securities as a secondary offering; provided,
however, that prior to filing such amendment or New Demand Registration Statement, the Company shall be obligated to use
its commercially reasonable efforts to advocate with the SEC for the registration of all of the Registrable Securities in accordance
with the SEC Guidance. Notwithstanding any other provision of this Agreement, if any SEC Guidance sets forth a limitation of the
number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and
notwithstanding that the Company used diligent efforts to advocate with the SEC for the registration of all or a greater number
of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will first be reduced by the Registrable Securities not acquired or
issued, directly or indirectly, pursuant to the Investment Agreement or the terms of the Series A Preferred Shares issued pursuant
to the Investment Agreement (whether pursuant to registration rights or otherwise) (applied, in the case that some Registrable
Securities may be registered, to the Holders on a pro rata basis based on the total number of unregistered Registrable
Securities held by such Holders) and second, by the Registrable Securities acquired or issued, directly or indirectly, pursuant
to the Investment Agreement or the terms of the Series A Preferred Shares issued pursuant to the Investment Agreement (applied,
in the case that some Registrable Securities may be registered, to the Holders on a pro rata basis based on the total number
of unregistered Registrable Securities held by such Holders, subject to a determination by the SEC that certain Holders must be
reduced first based on the number of Registrable Securities held by such Holders). In the event the Company amends the Demand
Registration Statement or files a New Demand Registration Statement, as the case may be, under clauses (1) or (2) above, the Company
will use its commercially reasonable efforts to file with the SEC, as promptly as allowed by SEC Guidance provided to the Company
or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available to register
for resale those Registrable Securities that were not registered for resale on the Demand Registration Statement, as amended,
or the New Demand Registration Statement (the “Remainder Demand Registration Statements”).

 

    	 	- 5 -	 

    	 

    

 

(b) Effectiveness
Period. The Company shall use its commercially reasonable efforts to cause each Registration Statement to be declared effective
by the SEC as soon as practicable and, with respect to any Demand Registration Statement or New Demand Registration Statement,
as applicable, no later than the Effectiveness Deadline applicable to such Registration Statement (including filing with the SEC
a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the 1933 Act within five (5) Business
Days after the date that the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration
Statement will not be “reviewed,” or not be subject to further review and the effectiveness of such Registration Statement
may be accelerated), and shall use its commercially reasonable efforts to keep each Registration Statement continuously effective
under the 1933 Act until the earlier of (i) such time as all of the Registrable Securities covered by such Registration Statement
have been sold by the Holders or (ii) the date that all Registrable Securities covered by such Registration Statement may be sold
without any restriction under Rule 144 as determined by counsel to the Company pursuant to a written opinion letter to such effect,
addressed and reasonably acceptable to the Transfer Agent (the “Effectiveness Period”). The Company shall request
effectiveness of a Registration Statement as of 5:00 p.m. New York City time on a Trading Day. The Company shall promptly notify
the Holders via facsimile or electronic mail of a “.pdf” format data file of the effectiveness of a Registration Statement
within one (1) Business Day of the Effective Date with respect to such Registration Statement. The Company shall, by 9:30 a.m.
New York City Time on the first (1st) Trading Day after such Effective Date, file a final Prospectus with the SEC,
as required by Rule 424(b). Failure to so notify the Holders on or before the second (2nd) Business Day after such
notification or effectiveness or failure to file a final Prospectus as aforesaid shall be deemed an Event under Section 2(c).

 

(c) Liquidated
Damages. If: (i) any Demand Registration Statement is not filed with the SEC on or prior to the Filing Deadline applicable
to such Demand Registration Statement; (ii) the Demand Registration Statement or New Demand Registration Statement, as applicable,
is not declared effective by the SEC (or otherwise does not become effective) for any reason on or prior to the Effectiveness
Deadline applicable to such Registration Statement; (iii) after its Effective Date and during the Effectiveness Period with respect
thereto, (A) such Registration Statement ceases for any reason (including without limitation by reason of a stop order, or the
Company’s failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities
for which it is required to be effective or (B) the Holders are not permitted to utilize the Prospectus therein to resell such
Registrable Securities, in the case of (A) and (B), for more than an aggregate of thirty (30) Trading Days (which need not be
consecutive) (other than during an Allowable Grace Period); or (iv) a Grace Period exceeds the length of an Allowable Grace Period
(any such failure or breach in clauses (i) through (iv) above being referred to as an “Event,” and, for purposes
of clauses (i) or (ii), the date on which such Event occurs, or for purposes of clause (iii), the date on which such thirty (30)
Trading Day period is exceeded, or for purposes of clause (iv) the date on which such Allowable Grace Period is exceeded, being
referred to as an “Event Date”), then in addition to any other rights the Holders may have hereunder or under
applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall
not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash,
as partial liquidated damages and not as a penalty (“Liquidated Damages”), equal to 1.0% of the aggregate purchase
price paid by such Holder for any Registrable Securities held by such Holder on the Event Date and covered by such Registration
Statement. The parties agree that (1) notwithstanding anything to the contrary herein or in the Investment Agreement, no Liquidated
Damages shall be payable for any period after the expiration of the Effectiveness Period, and in no event shall the aggregate
amount of Liquidated Damages payable to a Holder exceed, in the aggregate, 5.0% of the aggregate purchase price paid by such Holder
for its Registrable Securities and (2) in no event shall the Company be liable in any thirty (30)-day period for Liquidated Damages
under this Agreement in excess of 1.0% of the aggregate purchase price paid by the Holders for their Registrable Securities that
are covered by such Registration Statement. If the Company fails to pay any Liquidated Damages pursuant to this Section 2(c)
in full within five (5) Business Days after the date payable, the Company will pay interest thereon at a rate of 1.0% per
month (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date
such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. The Liquidated Damages pursuant
to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in
the case of the first Event Date. In the event that the Company registers, or the applicable Event applies to, some but not all
of the Registrable Securities, the 1.0% of Liquidated Damages referred to above for any monthly period shall be reduced to equal
the percentage determined by multiplying 1.0% by a fraction, the numerator of which shall be the number of Registrable Securities
(other than Cutback Shares) requested to be registered in such Registration Statement and for which there is not an effective
Registration Statement at such time and the denominator of which shall be the number of Registrable Securities at such time. The
Filing Deadline and/or the Effectiveness Deadline, as applicable, for a Registration Statement shall be extended without default
or Liquidated Damages hereunder in the event that the Company’s failure to file or obtain the effectiveness of the Registration
Statement on a timely basis results from the failure of a Holder to timely provide the Company with information requested by the
Company and necessary to complete the Registration Statement in accordance with the requirements of the 1933 Act (in which case
the Filing Deadline and/or the Effectiveness Deadline, as applicable, would be extended with respect to Registrable Securities
held by such Holder). For the avoidance of doubt, the Company will not owe any Liquidated Damages with respect to (x) any securities
that are not deemed to be Registrable Securities because they may be sold without any limitations under Rule 144 and (y) any Cutback
Shares provided that the Company complies with its obligations with respect to such Cutback Shares under Section 2(a).

 

    	 	- 6 -	 

    	 

    

 

(d) Selling
Stockholder Questionnaires.

 

(i) At
least seven (7) Trading Days prior to the first anticipated filing date of a Registration Statement for any registration under
this Agreement, the Company will notify each Holder of the information the Company requires from that Holder other than the information
contained in the Selling Stockholder Questionnaire, if any, which shall be completed and delivered to the Company together with
a completed Selling Stockholder Questionnaire promptly upon request Each Holder further agrees that it shall not be entitled to
be named as a selling securityholder in the Registration Statement or use the Prospectus for offers and resales of Registrable
Securities at any time, unless such Holder has returned to the Company a completed and signed Selling Stockholder Questionnaire
and a response to any requests for further information as described in the previous sentence. If a Holder of Registrable Securities
returns a Selling Stockholder Questionnaire or a request for further information, in either case, after its respective deadline,
the Company shall use its commercially reasonable efforts to take such actions as are required to name such Holder as a selling
security holder in the Registration Statement or any pre-effective or post-effective amendment thereto and to include (to the
extent not theretofore included) in the Registration Statement the Registrable Securities identified in such late Selling Stockholder
Questionnaire or request for further information. Each Holder acknowledges and agrees that the information in the Selling Stockholder
Questionnaire or request for further information as described in this Section 2(e) will be used by the Company in the preparation
of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

(ii) Each
Holder acknowledges that the Company may require each selling Holder to furnish to the Company a certified statement as to (i)
the number of shares of Common Stock beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry
Regulatory Authority (“FINRA”) affiliations, (iii) any natural persons who have the power to vote or dispose
of the Common Stock and (iv) any other information as may be requested by the SEC, FINRA or any state securities commission. During
any periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities
because any Holder fails to furnish any information called for by this Section 2(d) within three (3) Trading Days of the
Company’s request, any Liquidated Damages that are accruing at such time as to such Holder only shall be tolled and any
Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information
is delivered to the Company.

 

    	 	- 7 -	 

    	 

    

 

(e) Grace
Periods. Notwithstanding anything to the contrary herein, at any time after a Registration Statement has been declared effective
by the SEC, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of
such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (a “Grace
Period”); provided, however, the Company shall promptly (i) notify the Holders in writing of the existence
of material non-public information giving rise to a Grace Period (provided that the Company shall not disclose the content of
such material non-public information to the Holders) or the need to file a post-effective amendment, as applicable, and the date
on which such Grace Period will begin, and (ii) notify the Holders in writing of the date on which the Grace Period ends; provided,
further, that no single Grace Period shall exceed thirty (30) consecutive days, and during any three hundred sixty-five
(365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of sixty (60) days (each Grace Period complying
with this provision being an “Allowable Grace Period”). For purposes of determining the length of a Grace Period,
the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above
and shall end on and include the later of the date the Holders receive the notice referred to in clause (ii) above and the date
referred to in such notice; provided, however, that no Grace Period shall be longer than an Allowable Grace Period.
Notwithstanding anything to the contrary, the Company shall cause the Transfer Agent to deliver unlegended shares of Common Stock
to a transferee of a Holder in accordance with the terms of the Investment Agreement in connection with any sale of Registrable
Securities with respect to which a Holder has entered into a contract for sale prior to the Holder’s receipt of the notice
of a Grace Period and for which the Holder has not yet settled.

 

(f) Form
of Registration Statement. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable
to the Holders and (ii) undertake to register the Registrable Securities on Form S-3 promptly after such form is available, provided,
that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering such Registrable Securities has been declared effective by the SEC.

 

(g) Right
to Piggyback Registration.

 

(i) If,
at any time following the Agreement Date when any Registrable Securities remain outstanding, (A) there is not one or more effective
Registration Statements covering all of the Registrable Securities and (B) the Company proposes for any reason to register any
shares of Common Stock under the 1933 Act (other than pursuant to a registration statement on Form S-4 or Form S-8 (or a similar
or successor form)) with respect to an offering of Common Stock by the Company for its own account or for the account of any of
its stockholders, it shall at each such time promptly give written notice to the Holders of its intention to do so (but in no
event less than thirty (30) days before the anticipated filing date) and, to the extent permitted under the provisions of Rule
415 under the 1933 Act, include in such registration all Registrable Securities with respect to which the Company has received
written requests (which, for the avoidance of doubt, shall not constitute a demand under Section 2(a)) for inclusion therein
within fifteen (15) days after receipt of the Company’s notice (a “Piggyback Registration”). Such notice
shall offer the Holders the opportunity to register such number of shares of Registrable Securities as each such Holder may request
and shall indicate the intended method of distribution of such Registrable Securities.

 

    	 	- 8 -	 

    	 

    

 

(ii) Notwithstanding
the foregoing, (1) if such registration involves an underwritten public offering, the Holders must sell their Registrable Securities
to, if applicable, the underwriter(s) at the same price and subject to the same underwriting discounts and commissions that apply
to the other securities sold in such offering (it being acknowledged that the Company shall be responsible for other expenses
as set forth in Section 4) and shall enter into customary underwriting documentation for selling stockholders in an underwritten
public offering, and (2) if, at any time after giving written notice of its intention to register any Registrable Securities pursuant
to Section 2(g)(i) and prior to the effective date of the registration statement filed in connection with such registration,
the Company shall determine for any reason not to cause such registration to become effective under the 1933 Act, the Company
shall deliver written notice to the Holders and, thereupon, shall be relieved of its obligation to register any Registrable Securities
in connection with such registration; provided, however, that nothing contained in this Section 2(g)(ii)
shall limit the Company’s liabilities and/or obligations under this Agreement, including, without limitation, the obligation
to pay Liquidated Damages under Section 2(c).

 

(iii) If
the managing underwriter or underwriters with respect to such underwritten offering advise the Company in writing that in its
or their opinion the number of securities proposed to be offered by selling security holders in such registration exceeds the
number of securities which can be sold in such offering without a material adverse effect on such offering, the Company will include
in such registration only the number of securities of such selling security holders which, in the opinion of such underwriter
or underwriters, can be sold, selected pro rata (based on the number of Registrable Securities requested to be included)
among the Holders that have requested Registrable Securities to be included in such registration; provided, that any securities
to be sold by stockholders of the Company other than the Holders shall be cut back first (on a pro rata basis, based on
the number of securities requested to be included by each such stockholder).

 

3. Registration
Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a) not
less than five (5) Trading Days prior to the filing of a Registration Statement and not less than one (1) Trading Day prior to
the filing of any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K, and Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K and any similar or successor reports), furnish to the Holder copies of such
Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject
to the review of such Holder (it being acknowledged and agreed that if a Holder does not object to or comment on the aforementioned
documents within such five (5) Trading Day or one (1) Trading Day period, as the case may be, then the Holder shall be deemed
to have consented to and approved the use of such documents); the Company shall not file any Registration Statement or amendment
or supplement thereto in a form to which a Holder reasonably objects in good faith, provided that, the Company is notified of
such objection in writing within the five (5) Trading Day or one (1) Trading Day period described above, as applicable;

 

(b) (i)
prepare and file with the SEC such amendments (including post-effective amendments) and supplements, to each Registration Statement
and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective
as to the applicable Registrable Securities for its Effectiveness Period (except during an Allowable Grace Period); (ii) cause
the related Prospectus to be amended or supplemented by any required prospectus supplement (subject to the terms of this Agreement),
and, as so supplemented or amended, to be filed pursuant to Rule 424 (except during an Allowable Grace Period); (iii) respond
as promptly as reasonably practicable to any comments received from the SEC with respect to each Registration Statement or any
amendment thereto and, as promptly as reasonably possible, provide the Holders true and complete copies of all correspondence
from and to the SEC relating to such Registration Statement that pertains to the Holders as “Selling Stockholders”
but not any comments that would result in the disclosure to the Holders of material and non-public information concerning the
Company; and (iv) comply with the provisions of the 1933 Act and the 1934 Act with respect to the disposition of all Registrable
Securities covered by a Registration Statement during its Effectiveness Period; provided, however, that each Holder
shall be responsible for the delivery of the Prospectus to the Persons to whom such Holder sells any of the Registrable Securities
(including in accordance with Rule 172 under the 1933 Act), and each Holder agrees to dispose of Registrable Securities in compliance
with the plan of distribution described in the Registration Statement and otherwise in compliance with applicable federal and
state securities laws; in the case of amendments and supplements to a Registration Statement which are required to be filed pursuant
to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form
10-Q or Form 8-K or any analogous report under the 1934 Act, the Company shall have incorporated such report by reference into
such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which
the 1934 Act report which created the requirement for the Company to amend or supplement such Registration Statement was filed;

 

    	 	- 9 -	 

    	 

    

 

(c) notify
the Holders (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the
use of the Prospectus until the requisite changes have been made) as promptly as reasonably practicable (and, in the case of (i)(A)
below, not less than two (2) Trading Days prior to such filing, in the case of (iii) and (iv) below, not more than one (1) Trading
Day after such issuance or receipt, in the case of (v) below, not less than one (1) Trading Day after a determination by the Company
that the financial statements in any Registration Statement have become ineligible for inclusion therein and, in the case of (vi)
below, not more than one (1) Trading Day after the occurrence or existence of such development) and (if requested by any such
Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any prospectus
supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when the SEC notifies the Company
whether there will be a “review” of such Registration Statement and whenever the SEC comments in writing on any Registration
Statement (in which case the Company shall provide to each of the Holders true and complete copies of all comments that pertain
to the Holders as a “Selling Stockholder” or to the “Plan of Distribution” and all written responses thereto,
but not information that the Company believes would constitute material and non-public information with respect to the Company);
and (C) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii)
of any request by the SEC or any other Governmental Authority for amendments or supplements to a Registration Statement or Prospectus
or for additional information that pertains to the Holders as “Selling Stockholders” or the “Plan of Distribution”;
(iii) of the issuance by the SEC or any other Governmental Authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to
such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement
thereto, in light of the circumstances under which they were made), not misleading;

 

(d) use
commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, as soon as practicable;

 

    	 	- 10 -	 

    	 

    

 

(e) if
requested by a Holder, furnish to such Holder, without charge, at least one (1) conformed copy of each Registration Statement
and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the SEC; provided, that the Company shall have no obligation
to provide any document pursuant to this clause that is available on the SEC’s EDGAR system;

 

(f) prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company
to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in
any such jurisdiction;

 

(g) if
requested by the Holders, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free,
to the extent permitted by the Investment Agreement and under law, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such Holders may reasonably request;

 

(h) following
the occurrence of any event contemplated by Section 3(c)(iii)-(v), as promptly as reasonably practicable (taking into account
the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure
of such event), prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements
or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an
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 (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they
were made), not misleading;

 

(i) cooperate
with the placement agent and any registered broker dealer that is required to make a filing with FINRA pursuant to Rule 5100 in
connection with the resale of any Registrable Securities by any Holder and pay the filing fee required for the first such filing;

 

(j) if
at any time the Company receives a Demand Notice, take all such action as shall be necessary to (1) register the Common Stock
under Section 12 of the 1934 Act in order to enable the Holders to use the Registration Statement to be filed in response to such
Demand Notice pursuant to Section 2(a) for the sale of their Registrable Securities, such action to be taken as soon as
practicable after the Company’s receipt of such Demand Notice, and in no event later than the Effective Date of such Registration
Statement; and (2) use reasonable best efforts to cause all the Registrable Securities covered by a Registration Statement (A)
to be listed on each Trading Market on which securities of the same class or series issued by the Company are then listed, and
(B) to be registered with or approved by such other Governmental Authorities as may be necessary to enable the Holders to consummate
the disposition of the Registrable Securities;

 

    	 	- 11 -	 

    	 

    

 

(k) if
the Company does not then have a transfer agent, provide and cause to be maintained a registrar and transfer agent for all Registrable
Securities covered by any Registration Statement from and after a date not later than the Effective Date of such Registration
Statement; and

 

(l) if
the Company does not then have a CUSIP number for the Registrable Securities, shall provide a CUSIP number for all Registrable
Securities, not later than the Effective Date of the Registration Statement therefor.

 

4. Registration
Expenses. All fees and expenses incidental to the Company’s performance of or compliance with its obligations under
this Agreement (excluding any underwriting discounts and selling commissions) shall be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement, provided, that, the fees and expenses of counsel
to the Holders shall be limited to the reasonable and customary fees and expenses of one (1) counsel with respect to any Registration
Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration
and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading
Market on which the Common Stock is then listed for trading, (B) with respect to compliance with applicable state securities or
Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment
under the laws of such jurisdictions as reasonably requested by the Holders and (C) if not previously paid by the Company, with
respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable
Securities with FINRA pursuant to Rule 5100, so long as the broker is receiving no more than a customary brokerage commission
in connection with such sale), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the Holders of a majority of
the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees
and disbursements of counsel for the Company, (v) 1933 Act liability insurance, if the Company so desires such insurance, and
(vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with
the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

 

5. Indemnification.

 

(a) Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless
each of the Holders, the officers, directors, agents, partners, members, managers, stockholders, Affiliates and employees of each
of them, each Person who controls any such Holder (within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act) and the officers, directors, partners, members, managers, stockholders, agents and employees of each such controlling Person,
to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable costs of preparation and investigation and reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, any Prospectus or any form of Prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus
or amendment or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation
or alleged violation by the Company of the 1933 Act, 1934 Act or any state securities law or any rule or regulation thereunder,
in connection with the performance of its obligations under this Agreement, in any such case except to the extent, and only to
the extent, that any such Losses arise out of or are based upon (A) such untrue statements, alleged untrue statements, omissions
or alleged omissions that are based solely upon information regarding such Holder furnished in writing to the Company by such
Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and approved by such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that each
Holder has approved Annex A hereto for this purpose), (B) in the case of an occurrence of an event of the type specified
in Section 3(c)(iii)-(v), the use by a Holder of an outdated or defective Prospectus after the Company has notified such
Holder in writing that the Prospectus is outdated or defective or (C) the Holder’s (or any other indemnified Person’s)
failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required, to the Persons
asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation
of the sale of Registrable Securities to such Person if such statement or omission was corrected in such Prospectus or supplement.
The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection
with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of an Indemnified Party and shall survive the transfer of the
Registrable Securities by the Holders.

 

    	 	- 12 -	 

    	 

    

 

(b) Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the 1933 Act and Section 20 of
the 1934 Act), and the directors, officers, agents and employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising out of or based upon (i) any untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of Prospectus, or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission to state a material fact required to be stated
therein or necessary to make the statements therein (in the case of any Prospectus, or any form of Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading, or (ii) any violation of the 1933 Act, 1934 Act or any
state securities law or any rule or regulation thereunder, in connection with the performance of any obligations under this Agreement,
in any such case to the extent, and only to the extent, that any such Losses arise out of (A) such untrue statements or omissions
that are contained in the information furnished by such Holder in writing to the Company expressly for use therein, (B) such information
that relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities that was reviewed
and approved by such Holder expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose), (C)
in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi), the use by such Holder of an
outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective,
or (D) such Holder’s failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if
required, to the Persons asserting an untrue statement or omission at or prior to the written confirmation of the sale of Registrable
Securities to such Person if such statement or omission was corrected in such Prospectus or supplement. In no event shall the
liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder
upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

    	 	- 13 -	 

    	 

    

 

(c) Conduct
of Indemnification Proceedings.

 

(i) If
any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”),
such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”)
in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all reasonable fees and expenses incurred in connection with
defense thereof; provided, that the failure of any Indemnified Party to give such prompt notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined
by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall
have materially and adversely prejudiced the Indemnifying Party.

 

(ii) An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
with the fees and expenses of such counsel being at the expense of such Indemnified Party unless: (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of
such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest exists if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in
writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have
the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided,
that the Indemnifying Party shall not be liable for the fees and expenses of more than one (1) separate firm of attorneys at any
time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected
without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which
any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

 

(iii) Subject
to the terms of this Agreement, all fees and expenses of the Indemnified Party (including reasonable fees and expenses to the
extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this
Section 5(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof
to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that
portion of such fees and expenses applicable to such Proceedings for which such Indemnified Party is finally judicially determined
to not be entitled to indemnification hereunder.

 

(d) Contribution.

 

(i) If
a claim for indemnification under Section 5(a) or 5(b) is, for any reason, unavailable to an Indemnified Party or
insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The
relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether
any action in question, including any untrue (or, if applicable, alleged untrue) statement of a material fact or omission (or,
if applicable, alleged omission) of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying
Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed
to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such
fees or expenses if the indemnification provided for in this Section 5 was available to such party in accordance with its
terms.

 

    	 	- 14 -	 

    	 

    

 

(ii) The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined
by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder
from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue statement or omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

(e) No
Limitation of Rights. The indemnity and contribution agreements contained in this Section 5 are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification
provisions under the Investment Agreement.

 

6. Miscellaneous.

 

(a) Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each
Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it
of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b) No
Piggyback on Registrations. From and after the Agreement Date and so long as any Series A Preferred Shares are outstanding,
neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities
of the Company in a Registration Statement (other than a Registration Statement subject to Section 2(g)) other than the
Registrable Securities and the Company shall not prior to the Effective Date of any Registration Statement enter into any agreement
providing any such right to any of its security holders. The Company shall not, from the date of a Demand Notice until the date
that is sixty (60) days after the Effective Date of the Registration Statement relating thereto, prepare and file with the SEC
a registration statement relating to an offering for its own account under the 1933 Act of any of its equity securities other
than a registration statement on Form S-8 or, in connection with an acquisition, on Form S-4.

 

(c) Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to
it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to any Registration
Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in such Registration
Statement.

 

    	 	- 15 -	 

    	 

    

 

(d) No
Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the Agreement Date, nor shall
the Company or any of its Subsidiaries, on or after the Agreement Date, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or that otherwise conflicts with the
provisions hereof.

 

(e) Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, or waived unless the same shall be in writing and signed by the Company and Holders holding a majority of the then
outstanding Registrable Securities, provided that any party may give a waiver (which shall be signed by such party and in writing)
as to itself. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter
that relates exclusively to the rights of Holders and that does not directly or indirectly affect the rights of other Holders
may be given by Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however,
that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of
the immediately preceding sentence.

 

(f) Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Investment Agreement.

 

(g) Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its
rights (except by merger or in connection with another entity acquiring all or substantially all of the Company’s assets)
or obligations hereunder without the prior written consent of all the Holders of the then outstanding Registrable Securities.
Each Holder may assign its respective rights hereunder in the manner and to the Persons as permitted under the Investment Agreement.

 

(h) Execution
and Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which when so executed shall be
deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective
when counterparts have been signed by each party and delivered to the other parties, it being understood that all parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of
a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on
whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature were
the original thereof.

 

(i) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Investment Agreement.

 

(j) Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(k) Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good
faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such
that may be hereafter declared invalid, illegal, void or unenforceable.

 

    	 	- 16 -	 

    	 

    

 

(l) Headings.
The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

 

(m) Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under this Agreement are several and not
joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance
of the obligations of any other Investor hereunder. The decision of each Investor to purchase shares of Series A Preferred Stock
pursuant to the Investment Documents has been made independently of any other Investor. Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed
to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Investors are in any way acting in concert with respect to such obligations or the transactions contemplated by this
Agreement. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its
investment hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment
in the Shares or enforcing its rights under the Investment Documents. Each Investor shall be entitled to protect and enforce its
rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Investor
to be joined as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Investors has
been provided with the same Agreement for the purpose of closing a transaction with multiple Investors and not because it was
required or requested to do so by any Investor.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGES TO FOLLOW]

 

    	 	- 17 -	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	POWERFLEET,
    INC.
	 	 	 
	 	By:	/s/
    Ned Mavrommatis
	 	Name:
    	Ned
    Mavrommatis
	 	Title:	Chief
    Financial Officer

 

[Signature
Page to Registration Rights Agreement]

 

    	 	 	 

    	 

    

 

	 	INVESTORS:
	 	 
	 	ABRY
    SENIOR EQUITY V, L.P.

 

	 	By:
    	/s/
    John Hunt
	 	Name:
    	John
    Hunt
	 	Title:
    	Managing
    Partner

 

	 	Address:
	 	Abry
    Partners
	 	888
    Boylston Street
	 	Suite
    1600
	 	Boston,
    MA 02199
	 	Attention:
    John Hunt
	 	Email:
    jhunt@abry.com
	 	 
	 	ABRY
    SENIOR EQUITY CO-INVESTMENT FUND V, L.P.

 

	 	By:
    	/s/
    John Hunt
	 	Name:
    	John
    Hunt
	 	Title:
    	Managing
    Partner

 

	 	Address:
	 	Abry
    Partners
	 	888
    Boylston Street
	 	Suite
    1600
	 	Boston,
    MA 02199
	 	Attention:
    John Hunt
	 	Email:
    jhunt@abry.com
	 	 
	 	ABRY
    INVESTMENT PARTNERSHIP, L.P.

 

	 	By:
    	/s/
    John Hunt
	 	Name:
    	John
    Hunt
	 	Title:
    	Managing
    Partner

 

	 	Address:
	 	Abry
    Partners
	 	888
    Boylston Street
	 	Suite
    1600
	 	Boston,
    MA 02199
	 	Attention:
    John Hunt
	 	Email:
    jhunt@abry.com

 

[Signature
Page to Registration Rights Agreement]

 

    	 	 	 

    	 

    

 

Annex
A

 

PLAN
OF DISTRIBUTION

 

The
selling stockholders, which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares
of common stock or interests in shares of common stock received after the date of this prospectus from a selling stockholder as
a gift, pledge, partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any
or all of their shares of common stock or interests in shares of common stock on any stock exchange, market or trading facility
on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices
at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at
negotiated prices.

 

The
selling stockholders may use any one or more of the following methods when disposing of shares or interests therein:

 

	 	o	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	o	block
    trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	o	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	o	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	o	privately
    negotiated transactions;
	 	 	 
	 	o	short
    sales effected after the effective date of the registration statement of which this prospectus is a part;
	 	 	 
	 	o	through
    the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	o	broker-dealers
    may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; and
	 	 	 
	 	o	a
    combination of any such methods of sale.

 

The
selling stockholders may, from time to time, pledge or grant a security interest in some or all of the shares of common stock
owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer
and sell the shares of common stock, from time to time, under this prospectus, or under an amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling
stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

    	 	 	 

    	 

    

 

In
connection with the sale of our common stock or interests therein, the selling stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course
of hedging the positions they assume. The selling stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these
securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

 

The
aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of
the common stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together
with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering.

 

The
selling stockholders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under
the Securities Act, provided that they meet the criteria and conform to the requirements of that rule.

 

The
selling stockholders and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests
therein may be “underwriters” within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions,
concessions or profit they earn on any resale of the shares may be underwriting discounts and commissions under the Securities
Act. Selling stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities Act will be
subject to the prospectus delivery requirements of the Securities Act.

 

To
the extent required, the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase
prices and public offering prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with
respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

 

In
order to comply with the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only
through registered or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has
been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied
with.

 

We
have advised the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act of 1934, as amended,
may apply to sales of shares in the market and to the activities of the selling stockholders and their affiliates. In addition,
we will make copies of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders
for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify
any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

 

We
have agreed to indemnify the selling stockholders against liabilities, including liabilities under the Securities Act and state
securities laws, relating to the registration of the shares offered by this prospectus.

 

We
have agreed with the selling stockholders to keep the registration statement of which this prospectus constitutes a part effective
until the earlier of (1) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance
with the registration statement or (2) the date on which the shares may be sold pursuant to Rule 144 of the Securities Act.

 

    	 	 	 

    	 

    

 

Annex
B

 

POWERFLEET,
INC.

 

SELLING
STOCKHOLDER NOTICE AND QUESTIONNAIRE

 

The
undersigned holder of shares of the common stock, par value $0.01 per share of PowerFleet, Inc. (the “Company”)
issued pursuant to a certain Investment and Transaction Agreement, dated as of March 13, 2019, by and among the Company, the Investors
named therein and the other parties signatory thereto (the “Agreement”), understands that the Company intends
to file with the Securities and Exchange Commission a registration statement (the “Resale Registration Statement”)
for the registration and the resale under Rule 415 of the Securities Act of 1933, as amended (the “1933 Act”),
of the Registrable Securities in accordance with the terms of the Agreement. All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Agreement.

 

In
order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale Registration Statement, a holder of Registrable
Securities generally will be required to be named as a selling stockholder in the related prospectus or a supplement thereto (as
so supplemented, the “Prospectus”), deliver the Prospectus to purchasers of Registrable Securities (including
pursuant to Rule 172 under the 1933 Act) and be bound by the provisions of the Agreement (including certain indemnification provisions,
as described below). Holders must complete and deliver this Notice and Questionnaire in order to be named as selling stockholders
in the Prospectus. Holders of Registrable Securities who do not complete, execute and return this Selling Stockholder Notice
and Questionnaire within seven (7) Trading Days (1) will not be named as selling stockholders in the Resale Registration Statement
or the Prospectus and (2) may not use the Prospectus for resales of Registrable Securities.

 

Certain
legal consequences arise from being named as a selling stockholder in the Resale Registration Statement and the Prospectus. Holders
of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or
not named as a selling stockholder in the Resale Registration Statement and the Prospectus.

 

NOTICE

 

The
undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives notice to the Company
of its intention to sell or otherwise dispose of Registrable Securities owned by it and listed below in Item (3), unless otherwise
specified in Item (3), pursuant to the Resale Registration Statement. The undersigned, by signing and returning this Notice and
Questionnaire, understands and agrees that it will be bound by the terms and conditions of this Notice and Questionnaire and the
Agreement.

 

    	 	 	 

    	 

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate
and complete:

 

QUESTIONNAIRE

 

1.
Name.

 

		(a)	Full
                                         Legal Name of Selling Stockholder:

 

	 	 

 

		(b)	Full
                                         Legal Name of Registered Holder (if not the same as (a) above) through which Registrable
                                         Securities Listed in Item 3 below are held:

 

	 	 

 

		(c)	Full
                                         Legal Name of Natural Control Person (which means a natural person who directly or indirectly
                                         alone or with others has power to vote or dispose of the securities covered by the questionnaire):

 

	 	 

 

2.
Address for Notices to Selling Stockholder:

 

	 
	 
	 
	Telephone:
	 
	Fax:
	 
	Contact
    Person:
	 
	E-mail address of Contact Person: 		

 

3.
Beneficial Ownership of Registrable Securities Issuable Pursuant to the Investment Agreement:

 

		(a)	Type
                                         and Number of Registrable Securities beneficially owned and issued pursuant to the Agreement:

 

	 	 
	 	 
	 	 

 

		(b)	Number
                                         of shares of Common Stock to be registered pursuant to this Notice for resale:

 

	 	 
	 	 
	 	 

 

4.
Broker-Dealer Status:

 

		(a)	Are
                                         you a broker-dealer?

 

Yes
[  ] No [  ]

 

    	 	 	 

    	 

    

 

	 	(b)	If “yes” to Section 4(a), did you receive
your Registrable Securities as compensation for investment banking services to the Company?

 

Yes
[  ] No [  ]

 

		Note:	If
                                         no, the SEC’s staff has indicated that you should be identified as an underwriter
                                         in the Registration Statement.

 

		(c)	Are
                                         you an affiliate of a broker-dealer?

 

Yes
[  ] No [  ]

 

	 	Note:	If yes, provide a narrative explanation below:

 

	 	 
	 	 

 

		(c)	If
                                         you are an affiliate of a broker-dealer, do you certify that you bought the Registrable
                                         Securities in the ordinary course of business, and at the time of the purchase of the
                                         Registrable Securities to be resold, you had no agreements or understandings, directly
                                         or indirectly, with any person to distribute the Registrable Securities?

 

Yes
[  ] No [  ]

 

	 	Note:	If no, the SEC’s staff has indicated that you
should be identified as an underwriter in the Registration Statement.

 

5.
Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the Registrable Securities listed above in Item 3.

 

Type
and amount of other securities beneficially owned:

 

	 	 
	 	 

 

6.
Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three (3) years.

 

State
any exceptions here:

 

	 	 
	 	 

 

    	 	 	 

    	 

    

 

7.
Plan of Distribution:

 

The
undersigned has reviewed the form of Plan of Distribution attached as Annex A to the Registration Rights Agreement, and hereby
confirms that, except as set forth below, the information contained therein regarding the undersigned and its plan of distribution
is correct and complete.

 

State
any exceptions here:

 

	 	 
	 	 

 

***********

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the Agreement Date and prior to the effective date of any applicable Resale Registration Statement. All notices
hereunder and pursuant to the Agreement shall be made in writing, by hand delivery, confirmed or facsimile transmission, first-class
mail or air courier guaranteeing overnight delivery at the address set forth below. In the absence of any such notification, the
Company shall be entitled to continue to rely on the accuracy of the information in this Notice and Questionnaire.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through
(7) above and the inclusion of such information in the Resale Registration Statement and the Prospectus. The undersigned understands
that such information will be relied upon by the Company in connection with the preparation or amendment of any such Registration
Statement and the Prospectus.

 

By
signing below, the undersigned acknowledges that it understands its obligation to comply, and agrees that it will comply, with
the provisions of the Exchange Act of 1934, as amended, and the rules and regulations thereunder, particularly Regulation M in
connection with any offering of Registrable Securities pursuant to the Resale Registration Statement. The undersigned also acknowledges
that it understands that the answers to this Questionnaire are furnished for use in connection with Registration Statements filed
pursuant to the Registration Rights Agreement and any amendments or supplements thereto filed with the SEC pursuant to the 1933
Act.

 

The
undersigned hereby acknowledges and is advised of the following Interpretation A.65 of the July 1997 SEC Manual of Publicly Available
Telephone Interpretations regarding short selling:

 

“An
Issuer filed a Form S-3 registration statement for a secondary offering of common stock which is not yet effective. One of the
selling stockholders wanted to do a short sale of common stock “against the box” and cover the short sale with registered
shares after the effective date. The issuer was advised that the short sale could not be made before the registration statement
become effective, because the shares underlying the short sale are deemed to be sold at the time such sale is made. There would,
therefore, be a violation of Section 5 if the shares were effectively sold prior to the effective date.”

 

By
returning this Questionnaire, the undersigned will be deemed to be aware of the foregoing interpretation.

 

I
confirm that, to the best of my knowledge and belief, the foregoing statements (including without limitation the answers to this
Questionnaire) are correct.

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

 

	Dated:	 	 	Beneficial Owner:	

 

	 	By:
    	 
	 	Name: 
    	
			
	 	Title:
    	

 

PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

_____________________

_____________________

_____________________

_____________________

 

	 	Tel: ______________	 
	 	Email:______________

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