Document:

EXHIBIT
10.1

       

      COALOGIX
INC.

       

      COMMON
STOCK PURCHASE AGREEMENT

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
OF CONTENTS

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	 
      	 	 
      	 	 
      	 	
                                                            Page

                                                          
	 	 	 	 	 
	
                                                            1.

                                                          	 	
                                                            PURCHASE
      AND SALE OF COMMON STOCK  

                                                          	 	
                                                            1

                                                          
	 
      	 	
                                                            1.1.

                                                          	 	
                                                            Sale
      and Issuance of Common Stock

                                                          	 	
                                                            1

                                                          
	 
      	 	
                                                            1.2.

                                                          	 	
                                                            Closing;
      Delivery

                                                          	 	
                                                            1

                                                          
	 
      	 	
                                                            1.3.

                                                          	 	
                                                            Defined
      Terms Used in this Agreement

                                                          	 	
                                                            2

                                                          
	      
                                                            2.

                                                          	 	REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY	 	3
	 
      	 	
                                                            2.1.

                                                          	 	
                                                            Organization,
      Good Standing, Corporate Power and Qualification

                                                          	 	
                                                            3

                                                          
	 
      	 	
                                                            2.2.

                                                          	 	
                                                            Capitalization

                                                          	 	
                                                            4

                                                          
	 
      	 	
                                                            2.3.

                                                          	 	
                                                            Subsidiaries
      and Affiliates

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.4.

                                                          	 	
                                                            Authorization

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.5.

                                                          	 	
                                                            Valid
      Issuance of Shares

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.6.

                                                          	 	
                                                            Governmental
      Consents and Filings

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.7.

                                                          	 	
                                                            Litigation

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.8.

                                                          	 	
                                                            Compliance
      with Other Instruments

                                                          	 	
                                                            5

                                                          
	 
      	 	
                                                            2.9.

                                                          	 	
                                                            Rights
      of Registration and Voting Rights

                                                          	 	
                                                            6

                                                          
	 
      	 	
                                                            2.10.

                                                          	 	
                                                            No
      Company Operations or Material Liabilities

                                                          	 	
                                                            6

                                                          
	 
      	 	
                                                            2.11.

                                                          	 	
                                                            Changes

                                                          	 	
                                                            6

                                                          
	 
      	 	
                                                            2.12.

                                                          	 	
                                                            Corporate
      Documents

                                                          	 	
                                                            7

                                                          
	 
      	 	
                                                            2.13.

                                                          	 	
                                                            Offering

                                                          	 	
                                                            7

                                                          
	 
      	 	
                                                            2.14.

                                                          	 	
                                                            Preemptive
      Rights

                                                          	 	
                                                            7

                                                          
	 
      	 	
                                                            2.15.

                                                          	 	
                                                            Consents

                                                          	 	
                                                            7

                                                          
	 
      	 	
                                                            2.16.

                                                          	 	
                                                            Employment
      and Non-Competition Agreements

                                                          	 	
                                                            7

                                                          
	 
      	 	
                                                            2.17.

                                                          	 	
                                                            Qualified
      Business Stock

                                                          	 	
                                                            8

                                                          
	      
                                                            3.

                                                          	 	      
                                                            REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER  

                                                          	 	8
	 
      	 	
                                                            3.1.

                                                          	 	
                                                            Authorization

                                                          	 	
                                                            8

                                                          
	 
      	 	
                                                            3.2.

                                                          	 	
                                                            Compliance
      with Other Instruments

                                                          	 	
                                                            8

                                                          
	 
      	 	
                                                            3.3.

                                                          	 	
                                                            Purchase
      Entirely for Own Account

                                                          	 	
                                                            8

                                                          
	 
      	 	
                                                            3.4.

                                                          	 	
                                                            Disclosure
      of Information

                                                          	 	
                                                            8

                                                          
	 
      	 	
                                                            3.5.

                                                          	 	
                                                            Restricted
      Securities

                                                          	 	
                                                            9

                                                          
	 
      	 	
                                                            3.6.

                                                          	 	
                                                            No
      Public Market

                                                          	 	
                                                            9

                                                          
	 
      	 	
                                                            3.7.

                                                          	 	
                                                            Suitability
      of Investment

                                                          	 	
                                                            9

                                                          

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        TABLE
OF CONTENTS

        (continued)

      

      
        
          
            
               

                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      	 	 	 	 	 	 	

                                                                              Page

                                                                            
	 	 	 	 	 	 	 
	  	 	
                                                                              3.8.

                                                                            	 	
                                                                              Legends

                                                                            	 	
                                                                              9

                                                                            
	 
      	 	
                                                                              3.9.

                                                                            	 	
                                                                              Accredited
      Investor

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              3.10.

                                                                            	 	
                                                                              Foreign
      Investors

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              3.11.

                                                                            	 	
                                                                              Residence

                                                                            	 	
                                                                              10

                                                                            
	      
                                                                              4.

                                                                            	 	      
                                                                              CONDITIONS
      TO THE PURCHASER’S OBLIGATIONS AT CLOSING 

                                                                            	 	10
	 
      	 	
                                                                              4.1.

                                                                            	 	
                                                                              Qualifications

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              4.2.

                                                                            	 	
                                                                              Representations
      and Warranties of Company

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              4.3.

                                                                            	 	
                                                                              Opinion
      of Company Counsel

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              4.4.

                                                                            	 	
                                                                              Covenants
      of the Company

                                                                            	 	
                                                                              10

                                                                            
	 
      	 	
                                                                              4.5.

                                                                            	 	
                                                                              Secretary’s
      Certificate

                                                                            	 	
                                                                              10

                                                                            
	      
                                                                              5.

                                                                            	 	      
                                                                              CONDITIONS
      TO THE COMPANY’S OBLIGATIONS AT CLOSING 

                                                                            	 	11
	 
      	 	
                                                                              5.1.

                                                                            	 	
                                                                              Qualifications

                                                                            	 	
                                                                              11

                                                                            
	 
      	 	
                                                                              5.2.

                                                                            	 	
                                                                              Representations
      and Warranties of the Purchasers

                                                                            	 	
                                                                              11

                                                                            
	      
                                                                              6.

                                                                            	 	      
                                                                              COVENANTS
      OF THE COMPANY 

                                                                            	 	11
	 
      	 	
                                                                              6.1.

                                                                            	 	
                                                                              Proceedings
      and Documents

                                                                            	 	
                                                                              11

                                                                            
	 
      	 	
                                                                              6.2.

                                                                            	 	
                                                                              Securities
      Laws Compliance

                                                                            	 	
                                                                              11

                                                                            
	 
      	 	
                                                                              6.3.

                                                                            	 	
                                                                              Use
      of Proceeds

                                                                            	 	
                                                                              12

                                                                            
	 
      	 	
                                                                              6.4.

                                                                            	 	
                                                                              Pre-Closing
      Access and Information

                                                                            	 	
                                                                              13

                                                                            
	 
      	 	
                                                                              6.5.

                                                                            	 	
                                                                              Conduct
      of the Company's Business.

                                                                            	 	
                                                                              13

                                                                            
	 
      	 	
                                                                              6.6.

                                                                            	 	
                                                                              Notices
      to Purchasers

                                                                            	 	
                                                                              14

                                                                            
	 
      	 	
                                                                              6.7.

                                                                            	 	
                                                                              Exclusivity

                                                                            	 	
                                                                              14

                                                                            
	      
                                                                              7.

                                                                            	 	      
                                                                              SURVIVAL
      PERIOD; INDEMNIFICATION 

                                                                            	 	14
	 
      	 	
                                                                              7.1.

                                                                            	 	
                                                                              Survival
      of Representations, Warranties and Covenants

                                                                            	 	
                                                                              14

                                                                            
	 
      	 	
                                                                              7.2.

                                                                            	 	
                                                                              Indemnification

                                                                            	 	
                                                                              15

                                                                            
	 
      	 	
                                                                              7.3.

                                                                            	 	
                                                                              Limitations
      on Indemnification

                                                                            	 	
                                                                              15

                                                                            
	      
                                                                              8.

                                                                            	 	      
                                                                              MISCELLANEOUS 
      

                                                                            	 	15
	 
      	 	
                                                                              8.1.

                                                                            	 	
                                                                              Transfer;
      Successors and Assigns

                                                                            	 	
                                                                              15

                                                                            
	 
      	 	
                                                                              8.2.

                                                                            	 	
                                                                              Governing
      Law

                                                                            	 	
                                                                              15

                                                                            
	 
      	 	
                                                                              8.3.

                                                                            	 	
                                                                              Counterparts

                                                                            	 	
                                                                              15

                                                                            
	 
      	 	
                                                                              8.4.

                                                                            	 	
                                                                              Titles
      and Subtitles

                                                                            	 	
                                                                              16

                                                                            

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

       

      
        TABLE
OF CONTENTS

        (continued)

         

      

      
        
          
            
              
                
                  
                    	 	 	 	 	 	 	

                            Page

                          
	 	 	 	 	 	 	 
	  
    	 	
                            8.5.

                          	 	
                            Notices

                          	 	
                            16

                          
	 
      	 	
                            8.6.

                          	 	
                            No
      Finder’s Fees

                          	 	
                            17

                          
	 
      	 	
                            8.7.

                          	 	
                            Fees
      and Expenses

                          	 	
                            17

                          
	 
      	 	
                            8.8.

                          	 	
                            Default
      in Funding Commitment

                          	 	
                            17

                          
	 
      	 	
                            8.9.

                          	 	
                            Board
      of Directors

                          	 	
                            19

                          
	 
      	 	
                            8.10.

                          	 	
                            Management
      Option Pool

                          	 	
                            19

                          
	 
      	 	
                            8.11.

                          	 	
                            Stockholders’
      Agreement

                          	 	
                            20

                          
	 
      	 	
                            8.12

                          	 	
                            Amendments
      and Waivers

                          	 	
                            20

                          
	 
      	 	
                            8.13.

                          	 	
                            Severability

                          	 	
                            20

                          
	 
      	 	
                            8.14.

                          	 	
                            Delays
      or Omissions

                          	 	
                            20

                          
	 
      	 	
                            8.15.

                          	 	
                            Entire
      Agreement

                          	 	
                            21

                          
	 
      	 	
                            8.16.

                          	 	
                            Publicity

                          	 	
                            21

                          
	 
      	 	
                            8.17.

                          	 	
                            Right
      to Conduct Activities

                          	 	
                            21

                          
	 
      	 	
                            8.18.

                          	 	
                            Termination

                          	 	
                            22

                          

                  

                

              

            

          

        

      

       

      Exhibit
A         Schedule of
Purchasers

      Exhibit
B         Disclosure
Schedule

      Exhibit
C         Form of Legal Opinion of
Company Counsel

      Exhibit
D         New Options

       

      
        
          
          

        

        
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      COMMON STOCK PURCHASE
AGREEMENT

       

      This
Common Stock Purchase Agreement (the “Agreement”) is made as of
April 8, 2009 by and among CoaLogix Inc., a Delaware corporation (the “Company”), Acorn Energy, Inc.,
a Delaware corporation (“Acorn”), EnerTech Capital
Partners III L.P., a Delaware limited partnership (“EnerTech”) and the persons who
are designated as “Management Stockholders” on the signature pages to this
Agreement (collectively, “Management Stockholders” and
individually “Management
Stockholder”).

       

      RECITALS

       

      A.           The
Company, Acorn and EnerTech previously entered into that certain Common Stock
Purchase Agreement dated as of February 29, 2008 pursuant to which EnerTech
purchased 15,441 shares of the Company’s Common Stock, $0.001 par value per
share (the “Common
Stock”) at a price of $126.1566 per share, and that certain Common Stock
Purchase Agreement dated as of May 13, 2008 pursuant to which Acorn purchased
12,464 shares of Common Stock and EnerTech purchased 2,200 shares of Common
Stock at a price of $126.1566 per share.

       

      B.           Acorn
presently owns 85% of the issued and outstanding shares of Common Stock, and
EnerTech presently owns 15% of the issued and outstanding shares of Common
Stock.

       

      C.           Acorn
and EnerTech desire to purchase additional shares of Common Stock, and the
Company desires to issue additional shares of Common Stock to Acorn and EnerTech
on the terms as set forth herein below.  The Management Stockholders
desire to purchase shares of Common Stock, and the Company desires to issue
shares of Common Stock to the Management Stockholders on the terms as set forth
herein below.

       

      The
parties hereby agree as follows:

       

      1.           Purchase and Sale of Common
Stock.

       

      1.1.         
Sale and Issuance of
Common Stock.  Subject to the terms and conditions of this
Agreement, Acorn, EnerTech and the Management Stockholders (hereinafter
collectively referred to as the “Purchasers” or individually as
a “Purchaser”) agree to
purchase at the Closing and the Company agrees to sell and issue to Acorn,
EnerTech and the Management Stockholders at each Closing (as hereinafter
defined) that number of shares of the Company’s Common Stock set forth opposite
Acorn’s, EnerTech’s and the Management Stockholders’ names on Exhibit A, pro rated for
each Installment (as hereinafter defined) related to such Closing, at a
purchase price of $7.20 per share, payable as set forth in Section 1.2(b) (the
“Purchase
Price”).  The shares of Common Stock issued to the Purchasers
pursuant to this Agreement shall be referred to in this Agreement as the “Shares.”

       

      1.2.          Closing;
Delivery.

       

      (a)           The closing of each purchase
and sale of the Shares shall take place at 10:00 a.m., on the date on the
business day on which the last of the conditions set forth in Sections 4 and 5 of this Agreement
that are capable of being satisfied before each Closing are fulfilled or waived
in accordance with this Agreement, at the offices of the Company, 11701 Mt.
Holly Road, Charlotte, NC 28214 or at such other time and place as the Company,
Acorn and EnerTech mutually agree upon, orally or in writing (which time and
place are each designated as a “Closing”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)           At
each Closing, the Purchase Price will be funded by the Purchasers in
installments (individually, an “Installment” and collectively, the
“Installments”) in accordance with the schedule of Use of Proceeds as set forth
in Section 6.3
and the terms of such Section.  The Purchasers covenant and agree that
at each Closing they will fund and pay to the Company each Installment described
in Section 6.3
within three business days of receiving from the Company a written request for
funding (the “Funding
Notice”) which satisfies the requirements for the applicable Installments
set forth in Section
6.3.  In connection with the Purchasers’ payment of any
Installment, the Company shall promptly deliver to each of the Purchasers a
certificate representing the Shares being purchased by each of the Purchasers at
a particular Closing against payment of the respective Installment therefor by
wire transfer to a bank account designated by the Company.

       

      1.3.          Defined Terms Used in this
Agreement.  In addition to the terms defined above, the
following terms used in this Agreement shall be construed to have the meanings
set forth or referenced below.

       

      “Affiliate” means with respect
to any person or entity (a “Person”) any Person which,
directly or indirectly, controls, is controlled by, or is under common control
with such Person, including, without limitation, any partner, officer, director,
or member of such Person and any venture capital fund now or hereafter existing
which is controlled by or under common control with one or more general partners
or shares the same management company with such Person.

       

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

       

      “Company Intellectual Property”
means all trademarks, service marks, tradenames, copyrights, trade secrets,
licenses, information and proprietary rights and processes and all patents and
patent rights owned or possessed by the Company.

       

      “EES Suit” shall have the
meaning given to it in Section
6.3.

       

      “Evonik Suit” shall have the
meaning given to it in Section
6.3.

       

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

       

      “Funding Notice” shall have the
meaning given to it in Section
1.2(b).

       

       “Key Employee” means any
executive-level employee (including Vice President level positions) as well as
any employee who either alone or in concert with others develops, invents,
programs or designs any Company Intellectual Property.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Management Stockholders” has
the meaning assigned to it in the opening paragraph of the
Agreement.

       

       “Material Adverse Effect” means
a material adverse effect on the business, assets (including intangible assets),
liabilities, financial condition, property, prospects or
results of operations of the Company or any of the SCR-Tech
Entities.

       

      “Original Purchasers” means
Acorn and EnerTech.

       

       “Purchasers” has the meaning
assigned to it in Section
1.1.

       

      “SCR-Tech Entities” means
CoaLogix Tech inc. (formerly known as CESI-TECH Technologies, Inc.), CoaLogix
Solutions Inc. (formerly known as CESI-SCR, Inc.), SCR-Tech LLC and MetalliFix
LLC.

       

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

       

      “Shares” has the meaning
assigned to it in Section
1.1.

       

      “Stockholders’ Agreement” means
that certain agreement by and among the Company and the Original Purchasers,
dated as of February 29, 2008 and as amended and restated effective the date
hereof.

       

      “Transaction Agreements” means
this Agreement, the Funding Notices and any other agreements, instruments or
documents entered into in connection with this Agreement.

       

      “Use of
Proceeds”  means the amounts and uses of the Installments as
set forth in the table  in Section
6.3.

       

      2.           Representations and
Warranties of the Company.  The Company
hereby represents and warrants to the Purchasers that, except as set forth on
the Disclosure
Schedule attached to this Agreement which exceptions shall be deemed to
be part of the representations and warranties made hereunder, the following
representations are true and complete as of the date hereof and will be true and
correct as of the date of each Closing following any Funding Notice, except as
otherwise indicated. The Disclosure
Schedule shall be arranged in sections corresponding to the numbered and
lettered sections and subsections contained in this Section 2, and the
disclosures in any section or subsection of the Disclosure
Schedule shall qualify other sections and subsections in this Section 2 only to the
extent it is readily apparent from a reading of the disclosure that such
disclosure is applicable to such other sections and subsections.

       

      For
purposes of these representations and warranties, the phrase “to the Company’s
knowledge” shall mean the knowledge after reasonable investigation of the Key
Employees of the Company.

       

      2.1.           Organization, Good Standing,
Corporate Power and Qualification.  The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to
carry on its business as presently conducted and as proposed to be
conducted.  The Company is duly qualified to transact business and is
in good standing in each jurisdiction in which the failure to so qualify would
have a Material Adverse Effect.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.2.        
 Capitalization.  The
authorized capital of the Company consists, immediately prior to the Closing
(unless otherwise noted), of:

       

      (a)           5,300,000 shares of Common Stock,
2,940,125 shares of which are issued and outstanding immediately prior to the
Closing.  All of the outstanding shares of Common Stock have been duly
authorized, are fully paid and nonassessable and were issued in compliance with
all applicable federal and state securities laws.  The Company holds
no treasury stock.

       

      (b)           Section
2.2(c) of the Disclosure
Schedule sets forth the options that the Company is committed to granting
following the Closing.

       

      (c)           Section
2.2(c) of the Disclosure
Schedule sets forth the capitalization of the Company immediately
following the Closing relating to the initial Installment including the number
of shares of the following: (i) issued and outstanding Common Stock;
(ii) the name of each holder of options for Common Stock, together with the
number of shares for which such options are exercisable with respect to each
holder, the applicable vesting schedule, if any, and the applicable exercise
price; (iii) stock options not yet issued but reserved for issuance; and
(iv) warrants or stock purchase rights, if any.  Except for (A)
the rights provided in Sections 4 and 5 of the
Stockholders’ Agreement, and (B) the securities and rights described in Section 2.2(b) of
this Agreement and Section
2.2(c) of the Disclosure
Schedule, there are no outstanding options, warrants, rights (including
conversion or preemptive rights and rights of first refusal or similar rights)
or agreements, orally or in writing, to purchase or acquire from the Company, or
sell to the Company, any shares of Common Stock, or contracts, commitments,
understandings, or arrangements by which the Company is or may become bound to
issue Common Stock or any securities convertible into or exchangeable for shares
of Common Stock.  Except as set forth on Section
2.2(c) of the Disclosure
Schedule, no current or former shareholder of the Company's capital stock
has, or with the giving of notice or any other actions may have, any appraisal
rights or the right to obtain payment of the fair value of that shareholder's
shares of Common Stock.  Except for as provided in the Stockholders’
Agreement, no shareholder of the Company or other person has any right to
designate members to serve on the Company's board of directors or any committee
thereof.

       

      (d)           Except
as set forth on Section
2.2(d) of the Disclosure
Schedule, all outstanding shares of the Company’s Common Stock and all
shares of the Company’s Common Stock underlying outstanding options are subject
to a right of first refusal in favor of the Company upon any proposed transfer
(other than transfers for estate planning purposes).  Except as set
forth on Section
2.2(d) of the
Disclosure Schedule, none of the Company’s stock purchase agreements or
stock option documents contains a provision for acceleration of vesting (or
lapse of a repurchase right) upon the occurrence of any event or combination of
events. Except as set forth on Section
2.2(d) of the Disclosure
Schedule, the Company has never adjusted or amended the exercise price of
any stock options previously awarded, whether through amendment, cancellation,
replacement grant, repricing, or any other means.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      2.3.           Subsidiaries and
Affiliates.  Except as set forth on Section
2.3 of the Disclosure Schedule, the Company does not own, directly or
indirectly, any capital stock or other equity securities of any corporation or
have any direct or indirect equity ownership in any business.

       

      2.4.           Authorization.  All
corporate action required to be taken by the Company’s Board of Directors and
stockholders in order to authorize the Company to enter into the Transaction
Agreements, and to issue the Shares at each Closing, has been taken or, in the
case of the stockholders, will be taken prior to each
Closing.  Subject to the terms of Sections 1.2(b) and
6.3, all action on the part of the officers of the Company necessary for
the execution and delivery of the Transaction Agreements, the performance of all
obligations of the Company under the Transaction Agreements to be performed as
of each Closing, and the issuance and delivery of the Shares has been taken or
will be taken prior to each Closing.  The Transaction Agreements, when
executed and delivered by the Company, shall constitute valid and legally
binding obligations of the Company, enforceable against the Company in
accordance with their respective terms except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or
other laws of general application relating to or affecting the enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other equitable
remedies, or (iii) to the extent the indemnification provisions contained
in the Stockholders’ Agreement may be limited by applicable federal or state
securities laws.

       

      2.5.           Valid Issuance of
Shares.  The Shares, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement,
will be validly issued, fully paid and nonassessable and free of restrictions on
transfer other than restrictions on transfer under this Agreement, the
Stockholders’ Agreement, applicable state and federal securities laws and liens
or encumbrances created by or imposed by the Purchasers.  Assuming the
accuracy of the representations of the Purchasers in Section 3 of this
Agreement, the Shares will be issued in compliance with all applicable federal
and state securities laws.

       

      2.6.           Governmental Consents and
Filings.  Assuming the accuracy of the representations made by
the Purchasers in Section 3 of this
Agreement, no consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or
local governmental authority is required on the part of the Company in
connection with the consummation of the transactions contemplated by this
Agreement, except for  filings, if any, pursuant to Regulation D of
the Securities Act, and applicable state securities laws, which have been made
or will be made in a timely manner.

       

      2.7.           Litigation.  There
is no claim, action, suit, proceeding, arbitration, complaint, charge or
investigation pending or, to the Company’s knowledge, currently threatened that
questions the validity of the Transaction Agreements or the right of the Company
to enter into them, or to consummate the transactions contemplated by the
Transaction Agreements.

       

      2.8.           Compliance with Other
Instruments.  The execution, delivery and performance of the
Transaction Agreements and the consummation of the transactions contemplated by
the Transaction Agreements will not result in any violation or be in conflict
with or constitute, with or without the passage of time and giving of notice,
either (i) a default under any instrument, judgment, order, writ, decree,
contract or agreement to which the Company is a party or by which it is bound or
(ii) an event which results in the creation of any lien, charge or encumbrance
upon any property or assets of the Company or the suspension, revocation,
forfeiture, or nonrenewal of any permit or license applicable to the
Company.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      2.9.          Rights of Registration and
Voting Rights.  Except as provided in the Stockholders’
Agreement, the Company is not under any obligation to register under the
Securities Act any of its currently outstanding securities or any securities
issuable upon exercise or conversion of its currently outstanding
securities.  Except as contemplated in the Stockholders’ Agreement, no
stockholder of the Company has entered into any agreements with respect to the
voting of capital shares of the Company.

       

      2.10.        No Company Operations or
Material Liabilities.  The Company is a holding company without
operations other than the ownership of stock of its
subsidiaries.  The Company, excluding its subsidiaries, has no
material liabilities or obligations, contingent or otherwise, other than
liabilities (i) under that certain Stock Purchase Agreement, dated November 7,
2007, by and among the Company, Acorn, Catalytica Energy Systems, Inc. and with
respect to Article 11 thereof only, Renegy Holdings, Inc., (ii) under this
Agreement and the Common Stock Purchase Agreements by and among the parties
hereto dated February 29, 2008 and May 13, 2008, or (iii) as set forth on Section
2.10 of the Disclosure
Schedule.

       

      2.11.        Changes.  To
the Company’s knowledge, since May 13, 2008, there has not been:

       

      (a)           any
change in the assets, liabilities, financial condition or operating results of
the SCR-Tech Entities, except changes in the ordinary course of business that
have not caused, in the aggregate, a Material Adverse Effect on the SCR-Tech
Entities;

       

      (b)           any
damage, destruction or loss, whether or not covered by insurance, that would
have a Material Adverse Effect on the SCR-Tech Entities;

       

      (c)           any
waiver or compromise by the Company of a valuable right or of a material debt
owed to any of the SCR-Tech Entities;

       

      (d)           any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any
obligation by the Company, except in the ordinary course of business and the
satisfaction or discharge of which would not have a Material Adverse Effect on
the SCR-Tech Entities;

       

      (e)           any
material change to a material contract or agreement by which CoaLogix or the
SCR-Tech Entities or any of their assets is bound or subject, except changes in
the ordinary course of business that have not caused, in the aggregate, a
Material Adverse Effect on the SCR-Tech entities;

       

      (f)           any
mortgage, pledge, transfer of a security interest in, or lien, created by the
Company, with respect to any of the material properties or assets of the
SCR-Tech Entities, except (i) liens for taxes not yet due or payable and liens
that arise in the ordinary course of business and do not materially impair the
Company’s or the SCR-Tech Entities’ ownership or use of such property or assets
or (ii) as set forth on Section
2.11(f) of the
Disclosure Schedule;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (g)           any
sale, assignment or transfer of any Company Intellectual Property that could reasonably be
expected to result in a Material Adverse Effect to the SCR-Tech
Entities;

       

      (h)           receipt
of notice that there has been a loss of, or material order cancellation by, any
major customer of any of the SCR-Tech Entities; or

       

      (i)           except
as set forth on Section
2.11(i) of the
Disclosure Schedule, any other event or condition of any character, other
than events affecting the economy or the Company’s industry generally, that
could reasonably be expected to result in a Material Adverse Effect to the
SCR-Tech Entities.

       

      To the
Company’s knowledge, since May 13, 2008 (x) the SCR-Tech Entities have carried
on and operated their business in the ordinary course of business and (y) the
SCR-Tech Entities have not suffered a Material Adverse Effect.

       

      2.12.       Corporate
Documents.  The Certificate of Incorporation, amendments
thereto, and Bylaws of the Company are in the form provided to the
Purchasers.  The copy of the minute books of the Company provided to
the Purchasers contains minutes of all meetings of directors and stockholders
and all actions by written consent without a meeting by the directors and
stockholders since May 13, 2008 and accurately reflects in all material respects
all actions by the directors (and any committee of directors) and stockholders
with respect to all transactions referred to in such minutes.

       

      2.13.       Offering.  Subject
in part to the truth and accuracy of the Purchasers’ representations set forth
in Article III of this Agreement, the offer, sale and issuance of the Shares as
contemplated by this Agreement are exempt from the registration requirements of
the Securities Act of 1933, as amended, and neither the Company nor any
authorized agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

       

      2.14.       Preemptive
Rights.  The Company has fully satisfied (including with
respect to rights of timely notification) or obtained enforceable waivers in
respect of any preemptive or similar rights directly or indirectly affecting any
of its securities.

       

      2.15.       Consents.  All
consents, approvals, releases, filings, terminations and waivers by third
parties necessary to complete the transactions contemplated hereby that are set
forth in Section
2.15 of the Disclosure
Schedule have been obtained and delivered to the Purchasers and such
consents, approvals, releases, filings, terminations and waivers have not
expired or been withdrawn.

       

      2.16.       Employment and
Non-Competition Agreements.  William McMahon, Michael Mattes,
Frank Wenz, Michael Cooper, Eric Dana and Joe Cogdell are bound by and have
executed employment agreements with the Company and the SCR-Tech Entities, as
applicable as well as joinder agreements to become parties to the Stockholders’
Agreement.  All other employees of the SCR-Tech Entities have entered
into non-competition agreements with applicable SCR-Tech Entities.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      2.17.      
Qualified Business
Stock.  The Shares when issued in accordance with the terms and
conditions hereof, will be “Qualified Business Stock” as defined in Section
1202(c) of the Code for qualifying holders.

       

      3.           Representations and
Warranties of the Purchasers.  Each of the Purchasers hereby
represents and warrants, individually and not jointly, to the Company that with
respect to only itself:

       

      3.1.         Authorization.  The
Purchaser has full power, authority and capacity to enter into the Transaction
Agreements.  The Transaction Agreements to which the Purchaser is a
party, when executed and delivered by the Purchaser, will constitute valid and
legally binding obligations of the Purchaser, enforceable in accordance with
their terms, except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and any other laws of general
application affecting enforcement of creditors’ rights generally, and as limited
by laws relating to the availability of a specific performance, injunctive
relief, or other equitable remedies, or (b) to the extent the
indemnification provisions contained in the Stockholders’ Agreement may be
limited by applicable federal or state securities laws.

       

      3.2.         Compliance with Other
Instruments.  The execution and delivery of this Agreement by
the Purchaser, and the performance by the Purchaser of its obligations
hereunder, will not conflict, or result in any violation of, or default under,
any provision of any charter, bylaws, trust agreement, partnership agreement or
other governing instrument applicable to the Purchaser, or any agreement or
other instrument to which the Purchaser is a party or by which the Purchaser or
any of the Purchaser’s properties are bound, or any permit, franchise, judgment,
decree, order, rule or regulation applicable to the Purchaser or the Purchaser’s
business or properties.

       

      3.3.         Purchase Entirely for Own
Account.  This Agreement is made with the Purchaser in reliance
upon the Purchaser’s representation to the Company, which by the Purchaser’s
execution of this Agreement, the Purchaser hereby confirms, that the Shares to
be acquired by the Purchaser will be acquired for investment for the Purchaser’s
own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Purchaser has no present
intention of selling, granting any participation in, or otherwise distributing
the same.  By executing this Agreement, the Purchaser further
represents that the Purchaser does not presently have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Shares. The Purchaser has not been formed for the specific purpose of acquiring
the Shares.

       

      3.4.         Disclosure of
Information.  The Purchaser has had an opportunity to discuss
the Company’s business, management, financial affairs and the terms and
conditions of the offering of the Shares with the Company’s management. Except
as set forth in the Transaction Agreements, no representations or warranties,
whether written or oral, have been made to the Purchaser by the Company or any
officer, employee, affiliate or agent of the Company.  The foregoing,
however, does not limit or modify the representations and warranties of the
Company in Section
2 of this Agreement or the right of the Purchaser to rely
thereon.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

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

       

      3.6.         No Public
Market.  The Purchaser understands that no public market now
exists for the Shares, and that the Company has made no assurances that a public
market will ever exist for the Shares.

       

      3.7.         Suitability of
Investment.  The Purchaser has such knowledge and experience in
financial, business and tax matters that the Purchaser is capable of evaluating
the merits and risks relating to the Purchaser’s investment in the Shares and
making an investment decision with respect to the Company.  The
Purchaser acknowledges that it has had the opportunity to review this Agreement
and the transactions contemplated by this Agreement with its own legal
counsel.  The Purchaser is not relying on any statements or
representations of the Company or any of its agents for legal advice with
respect to this investment or the transactions contemplated by this Agreement
other than as set forth in the Transaction Agreements.

       

      3.8.         Legends.  The
Purchaser understands that the Shares and any securities issued in respect of or
exchange for the Shares, may bear one or all of the following
legends:

       

      (a)           “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”), AND HAVE BEEN ACQUIRED
FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF.  NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE ACT, UNLESS SUCH TRANSFER SHALL (I) CONSTITUTE A ROUTINE SALE UNDER RULE 144
OF THE ACT OR (II) BE OF SHARES THAT ARE ELIGIBLE FOR RESALE UNDER RULE
144(B)(1) OF THE ACT.”

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (b)           Any
legend set forth in, or required by, the other Transaction
Agreements.

       

      (c)           Any
legend required by the securities laws of any state to the extent such laws are
applicable to the Shares represented by the certificate so
legended.

       

      3.9.          Accredited
Investor.  The Purchaser is an accredited investor as defined
in Rule 501(a) of Regulation D promulgated under the Securities
Act.

       

      3.10.        Foreign
Investors.  If the Purchaser is not a United States person (as
defined by Section 7701(a)(30) of the Code), such Purchaser hereby
represents that it has satisfied itself as to the full observance of the laws of
its jurisdiction in connection with any invitation to subscribe for the Shares
or any use of this Agreement, including (i) the legal requirements within
its jurisdiction for the purchase of the Shares, (ii) any foreign exchange
restrictions applicable to such purchase, (iii) any governmental or other
consents that may need to be obtained, and (iv) the income tax and other
tax consequences, if any, that may be relevant to the purchase, holding,
redemption, sale, or transfer of the Shares.  Such Purchaser’s
subscription and payment for and continued beneficial ownership of the Shares,
will not violate any applicable securities or other laws of the Purchaser’s
jurisdiction.

       

      3.11.        Residence.  The
office or offices of the Purchaser in which its principal place of business is
located is the address or addresses of the Purchaser set forth on Exhibit
A.

       

      4.           Conditions to the
Purchasers’ Obligations at Closing and Funding.  Except as
otherwise indicated, the obligations of the Purchasers to purchase Shares at
each Closing and fund each Installment in accordance with the terms of Section 1.2(b) are
subject to the fulfillment, on or before each Closing, of each of the following
conditions, unless otherwise waived:

       

      4.1.          Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in
connection with the lawful issuance and sale of the Shares pursuant to this
Agreement shall be obtained and effective as of such Closing.

       

      4.2.          Representations and
Warranties of Company.  The representations and warranties of
the Company contained in Section 2 shall be true and correct in all material
respects as of each Closing, except that any such representation and warranties
shall be true and correct in all respects where such representation and warranty
is qualified with respect to materiality in Section 2, and the
Company shall have performed and complied with all covenants, agreements,
obligations and conditions contained in this Agreement that are required to be
performed or complied with by it on or before each Closing.  An
officer of the Company has delivered a certificate to the Purchasers certifying
compliance with this Section 4.2 at each Closing, and such certificate shall
contain an update to the Disclosure Schedule covering
the period of time from the date of the last such certificate, if
needed.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      4.3.          Opinion of Company
Counsel.  At the Closing relating to the initial Installment,
the Purchasers shall have received from General Counsel of the Company, Joe B.
Cogdell, an opinion, dated as of the date of such Closing, in substantially the
form of Exhibit C (but without assumptions related to issuance of the
Shares).

       

      4.4.          Covenants of the
Company.  The Company shall have in all material respects
performed the obligations and complied with the covenants required by this
Agreement to be performed or complied with by it at or prior to the
Closing.

       

      4.5.          Secretary’s
Certificate.  The Secretary of the Company has delivered to the
Purchasers at the Closing a certificate certifying (i) the Certificate of
Incorporation, as amended and Bylaws of the Company and (ii) resolutions of the
Board of Directors of the Company approving the Transaction Agreements and the
transactions contemplated under the Transaction Agreements.

       

      5.           Conditions to the Company’s
Obligations at Closing.  The obligations of the Company to sell
Shares to the Purchasers in accordance with Section 1.2(b) are
subject to the fulfillment, on or before each Closing, of each of the following
conditions, unless otherwise waived:

       

      5.1.          Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in
connection with the lawful issuance and sale of the Stock pursuant to this
Agreement shall be obtained and effective as of the Closing.

       

      5.2.          Representations and
Warranties of the Purchasers.  The representations and
warranties of the Purchasers contained in Section 3 shall be
true and correct in all material respects as of Closing, except that any such
representation and warranty shall be true and correct in all respects where such
representation and warranty is qualified with respect to materiality in Section 3, and the
Company shall have performed and complied with all covenants, agreements,
obligations and conditions contained in this Agreement that are required to be
performed or complied with by it on or before Closing.

       

      6.           Covenants of the
Company.

       

      6.1.          Proceedings and
Documents.  The Purchasers shall receive all such counterpart
original and certified or other copies of such documents as reasonably
requested.  Such documents may include good standing
certificates.

       

      6.2.          Securities Laws
Compliance.  The Company shall make in a timely manner any
filings required by applicable federal or state securities or Blue Sky laws, or
those of any other applicable jurisdiction.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      6.3.          Use of
Proceeds.  The Company agrees that the Installments shall be
used by it for the purposes set forth below in this Section, and shall not be
used to reduce any outstanding indebtedness of the Company (other than in
accordance with the terms of the documents governing the Company’s outstanding
senior indebtedness to Square 1 Bank) or to make payments to any stockholder or
affiliate of the Company.  The conditions for funding each
Installment, if any, which must be satisfied before the Company can send a
Funding Notice to the Purchasers with respect to any Installment are set forth
opposite each Installment below.  Once the conditions for funding, if
any, have been satisfied for any particular Installment, the Company may send a
Funding Notice to the Purchasers.  If there are no conditions for
funding a particular Installment, the Company may send a Funding Notice to the
Purchasers for such Installment at any time after Closing.  The
Company may send a Funding Notice for any part or all of a particular
Installment, provided that the amount requested to be funded by the Purchasers
shall have satisfied any applicable conditions for funding, if
any.  In the event that less than all of an Installment is the subject
of a Funding Notice, the Shares delivered at the related Closing shall be
reduced proportionately.

       

      Use
of Proceeds

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Amount
      and Use of Installment

                                  	 
      	
                                    Conditions
      for Installment Funding

                                  
	
                                    $5,500,000
      – Plant Expansion

                                  	 
      	
                                    None

                                  
	 	 	 
	
                                    $200,000
      – ERP System

                                  	 
      	
                                    None

                                  
	 	 	 
	
                                    $500,000
      – Database Optimization Software

                                  	 
      	
                                    If
      CoaLogix proceeds with the database optimization software, DSIT Solutions
      Ltd. (“DSIT”) will be the preferred vendor, and CoaLogix will use its best
      efforts to work with DSIT to structure a contract that will be prudent and
      feasible for CoaLogix and DSIT.

                                  
	 	 	 
	
                                    $400,000
      – Micro-Bench Reactor

                                  	 
      	
                                    None

                                  
	 	 	 
	
                                    $575,000
      – Technology Development

                                  	 
      	
                                    None

                                  
	 	 	 
	
                                    $2,506,000
      – Additional Technology Development

                                  	 
      	
                                    The
      Company shall prepare development and commercialization plans for each
      technology which the Company desires to pursue, with each such development
      and commercialization plan hereinafter referred to as a “Plan”.  The
      Plan shall contain performance milestones for funding this
      Installment.  Each Plan must be approved by the Company’s Board
      of Directors (the “Board
      of Directors”).  The Company will submit a Funding Notice
      for the applicable installment to the Purchasers upon determination by the
      Board of Directors that one or more funding milestones as set forth in the
      approved Plan has been
satisfied.

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                $1,827,000
      – Legal Expense for the lawsuit filed by SCR-Tech against Evonik Energy
      Services, LLC, et al. (the “Evonik Suit”) and the
      lawsuit filed by Environmental Energy Systems, Inc. against the Company
      (the “EES
      Suit”).

              	 
      	
                Management
      of the Company will apprise the Board of Directors on a quarterly basis of
      the status and developments with respect to the Evonik Suit and EES
      Suit.  The Board of Directors shall assess on a quarterly basis
      at the Company’s regularly scheduled meetings of the Board of Directors
      the cost-benefit justification presented by management and the merits and
      probability of outcomes supplied by lead litigation counsel in the Evonik
      Suit and EES Suit.  Upon the Board of Directors determining and
      approving the amount of funding required for each of the Evonik Suit and
      EES Suit, the Company will send a Funding Notice to the Purchasers for the
      dollar amount of funding so approved by the Board of
      Directors.

              

      

       

      6.4.          Access and
Information.  From the date hereof through the date of payment
of all the Purchase Price by the Purchasers, the Company will give the
Purchasers and their authorized representatives (including accountants, legal
counsel and environmental consultants) full access at all reasonable times, upon
reasonable notice, to all of the offices and other facilities of the Company, to
all contracts, agreements, commitments, books and records of the Company, and to
the personnel (including auditors) of the Company.

       

      6.5.          Conduct of the Company's
Business.

       

      (a)           Except
as contemplated by this Agreement, during the period from the date of this
Agreement through the date of payment of all the Purchase Price by the
Purchasers, the Company shall conduct the operations of the Company according to
its ordinary course of business and consistent with past practice, and shall use
commercially reasonable efforts to preserve intact its business organization,
keep available the services of its officers and employees, and maintain
satisfactory relationships with suppliers, contractors, distributors, customers
and others having business relationships with the Company.  During the
period from the date of this Agreement through the date of payment of all the
Purchase Price by the Purchasers, the Company agrees that it will not take any
action reasonably within its control, or omit to take any action reasonably
within its control, which would cause any of the representations and warranties
of the Company in this Agreement to become untrue.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (b)           Without
limiting the foregoing, during the period from the date of this Agreement
through the date of payment of all the Purchase Price by the Purchasers, the
Company shall not take any of the actions specified in Section 2.11 without
the prior written consent of the Purchasers.

       

      6.6.          Notices to
Purchasers.  Prior to the date of payment of all the Purchase
Price by the Purchasers, the Company shall give prompt written notice to the
Purchasers of: (a) any breach or default by the Company of the representations,
warranties, covenants or agreements hereunder or under any document or
instrument contemplated hereby; (b) any notice or other communication from any
third party alleging that the consent of such third party is or may be required
in connection with the transactions contemplated by this Agreement; (c) any
notice or other communication from any governmental authority in connection with
the transactions contemplated by this Agreement; (d) any Material Adverse
Effect; and (e) any claim, action, or proceeding against the Company which could
reasonably be expected to have a Material Adverse Effect.

       

      6.7.          Exclusivity.  From
the date hereof through the date of Closing of the initial Installment, the
Company shall not, nor shall it authorize or permit any officer, director or
employee of or any investment banker, broker, attorney, accountant, or other
representative retained by the Company to, solicit, initiate or encourage
(including by way of furnishing information) submission of any proposal or offer
from any person which constitutes, or may reasonably be expected to lead to, a
Financing Proposal.  As used herein, a “Financing Proposal” shall mean
any proposal for a merger or other business combination involving the Company,
or any proposal or offer to acquire in any manner an equity interest in or a
material portion of the assets of the Company (other than sales in the ordinary
course of business consistent with past practice) or to extend indebtedness to
the Company.  If the Company receives a Financing Proposal prior to
the Closing, the Company shall notify the Purchasers immediately and shall
provide to the Purchasers a copy of any written documentation of such Financing
Proposal.  In addition, the Company shall not entertain or enter into
any agreement which would permit any party to obtain an equity interest in the
Company prior to the earlier of January 1, 2011 or the date of payment of all of
the Purchase Price other than the Company granting stock options in the normal
course, exercise of stock options and sale of the Shares under this
Agreement.

       

      7.           Survival Period;
Indemnification.

       

      7.1.          Survival of
Representations, Warranties and Covenants.  Unless otherwise set forth
in this Agreement, the representations and warranties of the Company and the
Purchasers contained in or made pursuant to this Agreement  (x) shall
survive the execution and delivery of this Agreement and the Closing until the
date that is one year after the date of payment of all the Purchase Price by the
Purchasers, except that the representations and warranties in Sections
2.1, 2.2, 2.3, 2.4 and
2.5 shall survive the Closing
indefinitely, and (y) shall in no way be affected by any investigation of the
subject matter thereof made by or on behalf of the Purchasers or the Company and
shall bind the parties’ successors and assigns (including, without limitation,
any successor to the Company by way of acquisition, merger or otherwise),
whether so expressed or not.  This Section 7 shall survive the Closing
and the covenants contained in this Agreement shall survive the Closing for the
periods contemplated by their terms.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      7.2.          Indemnification.  The Company and each
Purchaser shall, with respect to the representations, warranties and agreements
made by them herein, indemnify, pay, defend and hold the Company or each
Purchaser, as the case may be, and each of the Company or each Purchaser’s
officers, directors, partners, employees and agents and their respective
Affiliates, as the case may be, (the “Indemnitees”) harmless against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of counsel for such Indemnitees in
connection with any investigative, administrative or judicial proceeding
(collectively, “Losses”), whether or not such Indemnitees
shall be designated a party thereto, which may be (a) imposed on such
Indemnitee, or (b) incurred by such Indemnitee, as a result of (i) the violation
or breach of any representation, warranty or covenant of the Company or a
Purchaser, as the case may be, under this Agreement or the Stockholders’
Agreement; (ii) a Purchaser’s investment in or ownership of the Shares; or (iii)
actions or omissions by any agent, representative or employee of the Company or
a Purchaser, as the case may be.

       

      7.3.          Limitations on
Indemnification.  The Company or each Purchaser, as the case
may be, shall not have liability under Section 7.2 until the
aggregate amount of Losses of the Indemnitees exceeds $50,000, in which case the
Indemnitees shall be entitled to Losses as follows: in the case of the Company
as an Indemnitee, an amount up to the Purchase Price of the Shares paid by the
indemnifying party for its Shares, and in the case of a Purchaser as an
Indemnitee, an amount up to the Purchase Price of the Shares paid by such
Purchaser for its Shares.

       

      8.           Miscellaneous.

       

      8.1.          Transfer; Successors and
Assigns.  The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties.  The Company may not assign this Agreement or
any rights or obligations hereunder without the prior written consent of a
majority of the Shares.  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.

       

      8.2.          Governing
Law.  This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Delaware, without regard to
its principles of conflicts of laws.

       

      8.3.          Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.  This Agreement may also be executed and delivered by
facsimile signature and in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      8.4.          Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

       

      8.5.          Notices.  All
notices and other communications given or made pursuant to this Agreement shall
be in writing and shall be deemed effectively given (the “Effective
Date”):  (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, and if not so confirmed, then on the
next business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1) day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt.  All
communications shall be sent to the respective parties at their address as set
forth below or on the signature page or Exhibit A, or to
such e-mail address, facsimile number or address as subsequently modified by
written notice given in accordance with this Section
8.5.

       

      If notice
is given to the Company, it shall be sent to:

       

      CoaLogix

      11701 Mt.
Holly Road

      Charlotte,
NC 28214

      Attn:
CEO

      

      A copy
shall also be sent to:

      

      CoaLogix

      11701 Mt.
Holly Road

      Charlotte,
NC 28214

      Attn:
General Counsel

      

      If notice
is given to Acorn, it shall be sent to:

      

      Acorn
Energy, Inc.

      4 W.
Rockland Road

      P.O. Box
9

      Montchanin,
Delaware 19710

      

      A copy
shall also be sent to:

       

      Acorn
Energy, Inc.

      11701 Mt.
Holly Road

      Charlotte,
NC 28214

      Attn:
General Counsel

      

      If notice
is given to EnerTech, it shall be sent to the address set forth on Exhibit A. A copy
shall also be sent to:

       

      Dechert
LLP

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      Cira
Centre

      2929 Arch
St.

      Philadelphia,
PA 19104-2808

      Fax No.
(215) 994-2222

      Attention:  Ian
A. Hartman, Esq.

      

      If notice
is given to a Management Stockholder, it shall be sent to the address set forth
on Exhibit
A.

      

      8.6.          No Finder’s
Fees.  Except as set forth in Section
8.6 of the Disclosure
Schedule, each party represents that it neither is nor will be obligated
for any finder’s fee, commission or other compensation in connection with this
transaction.  Each Purchaser agrees to indemnify and to hold harmless
the Company from any liability for any commission or compensation in the nature
of a finder’s fee arising out of this transaction (and the costs and
expenses of defending against such liability or asserted liability) for which
the Purchaser or any of its officers, employees, or representatives is
responsible.  The Company agrees to indemnify and hold harmless each
Purchaser from any liability for any commission or compensation in the
nature of a finder’s or broker’s fee arising out of this transaction (and the
costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives
is responsible.

       

      8.7.          Fees and
Expenses.  At Closing, the Company shall pay the reasonable
fees and expenses of Dechert LLP, special counsel to EnerTech Capital Partners
III L.P., and Eilenberg Kraus & Paul LLP, counsel to Acorn, in connection
with the financing; provided, however, the amount of such legal fees and
expenses the Company shall be liable to pay will be limited to an aggregate of
$15,000.

       

      8.8.          Default in Funding
Commitment.

       

      (a)           In
the event an Original Purchaser does not pay an Installment after receipt of a
Funding Notice per the terms of Section 1.2(b) (the
“Defaulting Original
Purchaser”), the Original Purchaser will be in default of its obligation
to pay such Installment (a “Default”).  Upon the
occurrence of a Default, the Company will notify both Original Purchasers in
writing of the existence of the Default (the “Default
Notice”).  The Defaulting Original Purchaser will have three
(3) business days from the Effective Date of the Default Notice to pay its
Installment and cure the Default.  In the event the Defaulting
Original Purchaser does not cure the Default and pay the Installment (the “Defaulted Installment”), then
the non-defaulting Original Purchaser shall have the right to assume part or all
of the Defaulting Original Purchaser’s funding obligation under the Defaulted
Installment and take delivery of the Shares purchased with payment for same no
later than ten (10) business days after the Effective Date of the Default
Notice.  The percentage of the amount of the Defaulted Installment
paid by the non-defaulting Original Purchaser shall be known as the “Payment
Percentage”.

       

      (b)           After
the occurrence of a Default by an Original Purchaser, the non-defaulting
Original Purchaser shall thereafter have the right, but not the obligation, to
purchase (on an Installment by Installment basis) up to that number of Shares
that is derived by multiplying the Payment Percentage by the total number of
Shares that the Defaulting Original Purchaser could have acquired in connection
with such Installment had there not been a Default by the non-defaulting
Original Purchaser serving written notice of such election to the Company and
the Defaulting Original Purchaser no later than two (2) business days after the
Effective Date of any future Funding Notice.  In the event the
non-defaulting Original Purchaser does not have the right to or does not elect
to assume the entire funding obligation of a remaining Installment as specified
in a future Funding Notice, the Defaulting Original Purchaser will have the
right and obligation to purchase that portion of the Shares covered by such
future Funding Notice not purchased by the non-defaulting Original
Purchaser.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (c)           In
the event of a Default by an Original Purchaser and the non-defaulting Original
Purchaser does not elect to assume the obligation of paying any of the Defaulted
Installment, then the Defaulting Original Purchaser shall have the right and
obligation to make payment of any remaining Installments after receipt of
applicable Funding Notices; provided, however, the provisions of subparagraphs
(a) and (b) above shall continue to apply in the case of any additional Default
by the Defaulting Original Purchaser.

       

      (d)           In
the event a Management Stockholder Defaults (the “Defaulting Management
Stockholder”), the Company will send the Defaulting Management
Stockholder and all non-defaulting Purchasers a Default Notice.  The
Defaulting Management Stockholder will have three (3) business days from the
Effective Date of the Default Notice to pay its Installment and cure the
Default.  In the event the Defaulting Management Stockholder does not
cure the Default, then the non-defaulting Management Stockholders shall have the
right to pay part or all of the Defaulted Installment in the proportion of the
number of Shares which they have agreed to purchase under this Agreement as
adjusted to reflect any additional Shares purchased pursuant to this Section
8.8.  In the event the non-defaulting Management Stockholders
do not pay any or all of the Defaulted Installment, the non-defaulting
Management Stockholders may agree among themselves as to which Management
Stockholders, including Management Stockholders who are not parties to this
Agreement, may pay any portion of the Defaulted Installment not paid by the
non-defaulting Management Stockholders.  In the event the
non-defaulting Management Stockholders do not agree to pay all of the Defaulted
Installment, then the Original Purchasers may purchase any portion of the
Defaulted Installment not paid by the non-defaulting Management Stockholders in
the proportion of the number of shares of Common Stock held by each or in any
other proportion to which they agree.  Any party desiring to elect to
assume the obligation of payment of any portion of a Defaulted Installment in
accordance with the terms of this subparagraph shall serve written notice of
same upon all other Purchasers.  Any right to elect to make payment on
a Defaulted Installment shall expire three (3) business days after the date of
the occurrence giving rise to elect such right to make payment on a Defaulted
Installment, and payment of same shall be made no later than ten (10) business
days after the Effective Date of the Default Notice or the occurrence giving
rise to such right to elect payment on a Defaulted Installment.

       

      (e)             After
the occurrence of a Default by a Management Stockholder, each non-defaulting
Management Stockholder shall thereafter have the right, but not the obligation,
to purchase (on an Installment by Installment basis) up to that number of Shares
that is derived by multiplying the Management Stockholder’s Payment Percentage
by the total number of Shares that the Defaulting Management Stockholder could
have acquired in connection with such Installment had there not been a Default
by the non-defaulting Management Stockholder serving written notice of such
election to the Company and the Defaulting Management Stockholder no later than
two (2) business days after the Effective Date of any future Funding
Notice.  In the event the non-defaulting Management Stockholders do
not have the right to or do not elect to assume the entire funding obligation of
a remaining Installment as specified in a future Funding Notice, the Defaulting
Management Stockholder will have the right and obligation to purchase that
portion of the Shares covered by such future Funding Notice not purchased by the
non-defaulting Management Stockholders.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (f)           In
the event of a Default by a Management Stockholder and the non-defaulting
Management Stockholders do not elect to assume the obligation of paying any of
the Defaulted Installment, then the Defaulting Management Stockholder shall have
the right and obligation to make payment of any remaining Installments after
receipt of applicable Funding Notices; provided, however, the provisions of
subparagraphs (d) and (e) above shall continue to apply in the case of any
additional Default by the Defaulting Management Stockholder.

       

      (g)           The
remedies described above in this Section 8.8 regarding
a Default shall be the exclusive remedies available to the parties hereto with
respect to a Default.

       

      8.9.          Board of
Directors.  The parties agree that the Board of Directors shall
search for and elect as soon as possible an additional member to the Board of
Directors, and that such additional member shall be an independent director in
accordance with Section 9.4 (iii) of the Stockholders Agreement.  In
addition, consistent with Acorn’s right under Section 9.4 (ii) of the
Stockholders Agreement, Acorn will designate immediately Richard Giacco to serve
as an additional member of the Board of Directors.

       

      8.10.       Management Option
Pool.

       

      (a)           The
Purchasers agree that the number of shares of Common Stock available for
issuance to employees of the Company under the Company’s stock option plan shall
be increased by 115,063 shares of Common Stock.  The Company shall
grant to the senior officers of the Company (the “Senior Officers”) listed in
Exhibit D the
additional stock options set forth opposite their respective names on Exhibit D (the “New Options”).  The
grant of the New Options will occur at Closing and the exercise price shall be
$7.20 per share.  The Company shall have the appropriate legal
documents prepared to properly document the granting and the terms of the New
Options in accordance with this Section
8.10.

       

      (b)           The
New Options will be subject to the following double trigger vesting schedule: as
to each Senior Officer, the New Options will vest over a four-year term with 25%
vesting after one year and 6.25% vesting quarterly over the following three
years; provided, however, the maximum cumulative number of New Options that may
vest at any applicable vesting date will be limited to the number of New Options
granted to the Senior Officer multiplied by a fraction, the numerator of which
is the total Purchase Price paid by the Purchasers as of the applicable vesting
date for their Shares with respect to the Installments dedicated for Plant
Expansion (up to $2,750,000), Technology Development and Additional Technology
Development and the denominator of which is $5,831,000 (which is 50% of the
Plant Expansion of $5,500,000 ($2,750,000) and 100% of the Technology
Development ($575,000) and Additional Technology Development
($2,506,000)).

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      (c)           In
the event a change of control (as defined in the Senior Officers’ current stock
option agreements) should occur, then vesting shall accelerate on account of
such change of control with respect to that number of a Senior Officers’ New
Options determined by multiplying the number of a Senior Officers’ New Options
by the fraction described in the immediately preceding subparagraph and
utilizing the date of the occurrence of the change of control to determine the
amount of the numerator.

       

      (d)           Any
New Options that shall not have satisfied the double trigger vesting schedule
described above by the end of the four-year vesting period shall expire and not
be exercisable.  The New Options will be subject to the terms of the
Company’s stock option plan and the Senior Officers’ individual stock option
agreement.

       

      8.11.       Stockholders’
Agreement.  The Stockholders’ Agreement shall be amended and
restated effective the date hereof as necessary to reflect the terms of this
Agreement as well as the terms set forth in this paragraph.  Section 7
of the Stockholders’ Agreement shall be amended to permit Management
Stockholders, as defined in the Stockholders’ Agreement, to tag along and sell
their shares of Common Stock purchased by them hereunder on the same terms the
selling Key Holder is selling its shares of Common Stock.  A provision
shall be added to the Stockholders’ Agreement providing the parties thereto with
the right to purchase securities offered for sale by the Company in the future
on a pro rata basis.

       

      8.12.       Amendments and
Waivers.  Any term of this Agreement may be amended, terminated
or waived only with the written consent of the Company and the
Purchasers.  Any amendment or waiver effected in accordance with this
Section 8.12
shall be binding upon the Company, the Purchasers, and each transferee of the
Shares, each future holder of all such securities and the Company.  In
the event a nonmaterial provision of this Agreement is required to be amended by
the Purchasers after the Closing, the Company will not unreasonably withhold its
consent to such amendment.

       

      8.13.       Severability.  The
invalidity of unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provision.

       

      8.14.       Delays or
Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any party under this Agreement, upon any breach or default
of any other party under this Agreement, shall impair any such right, power or
remedy of such non-breaching or non-defaulting party nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of
or in any similar breach or default thereafter occurring; nor shall any waiver
of any single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring.  Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such
writing.  All remedies, either under this Agreement or by law or
otherwise afforded to any party, shall be cumulative and not
alternative.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      8.15.       Entire
Agreement.  This Agreement (including the Exhibits hereto, if
any), the other Transaction Agreements, the Stockholders’ Agreement and the
Management Rights Letter entered into by and among the parties hereto as of
February 29, 2008 constitute the full and entire understanding and agreement
between the parties with respect to the subject matter hereof, and any other
written or oral agreement relating to the subject matter hereof existing between
the parties are expressly canceled.  In the event of any conflict
between the terms of this Agreement and the Common Stock Purchase Agreement
dated February 29, 2008 and the Common Stock Purchase Agreement dated May 13,
2008, the terms and conditions of this Agreement shall control.

       

      8.16.       Publicity.  The
Company may disclose the existence of the financing, as well as the investment
in the Company by the Purchasers, solely to the Company’s investors, investment
bankers, lenders, accountants, legal counsel, bona fide prospective investors
and employees, in each case only where such persons or entities were under
appropriate nondisclosure obligations.  In addition, the Company may
disclose to third parties that the Purchasers are investors in the Company
without the requirement for nondisclosure agreements.  The Company is
permitted to issue a press release within 60 days of the Closing disclosing that
the Purchasers have invested in the Company; provided that the release does not
disclose the amount or other specific terms of the investment and the final form
of the press release is approved in advance in writing by the
Purchasers.  The Company may not use the name of EnerTech, or any of
its Affiliates in any trade publication, in any marketing materials or otherwise
to the general public without the prior written consent of EnerTech, which
consent may be withheld in the sole discretion of EnerTech. Notwithstanding the
foregoing, nothing in this Section 8.16 shall
prevent Acorn from complying with its obligations under the Exchange Act or
under the rules or regulations of any stock exchange or other market on which
the Acorn’s securities are listed for trading or the Company from taking any
action required to assist Acorn in such matters.

       

      8.17.       Right to Conduct
Activities.  The Company acknowledges and agrees that (i) the
Original Purchasers and each of their respective partners, affiliates and
affiliates of its partners engage in a wide variety of activities and have
investments in many other companies, some of which may be competitive with the
business of the Company; (ii) subject to any fiduciary obligations of the
Original Purchasers’ designees to the Company’s Board of Directors, except as
waived by the Company pursuant to this Section, it is critical that the Original
Purchasers be permitted to continue to develop their current and future business
and investment activities without any restriction arising from an investment by
the Original Purchasers in the Company, the rights of the Original Purchasers to
designate directors of the Company or any other relationship, contractual or
otherwise, between the Original Purchasers, on the one hand, and the Company or
any of its affiliates, on the other hand; and (iii) from time to time, in
connection with the foregoing activities of the Purchasers (collectively, the
“Activities”), the
Original Purchasers may have information that may be useful to the Company or
its other stockholders (which information may or may not be known by the member
of the Company’s Board of Directors designated by the Original Purchasers), and
neither the Original Purchasers nor any director so designated shall have any
duty to disclose any information known to such person or entity to the Company
or any of its other stockholders. In addition, the Original Purchasers shall not
be liable for any claim arising out of, or based upon, (i) the investment by the
Original Purchasers in any entity competitive to the Company, (ii) actions taken
by any partner, officer or other representative of the Original Purchasers to
assist any such competitive company, whether or not such action was taken as a
board member of such competitive company, or otherwise, and whether or not such
action has a detrimental effect on the Company, unless such claim arises
directly from the Original Purchasers’ misuse of confidential information in
material breach of Section 3.4 of the
Stockholders’ Agreement.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      8.18.       Termination.  Except
with respect to provisions that expressly survive the termination of this
Agreement, this Agreement may be terminated at any time:  (a) by the
Purchasers prior to a Closing if a court of competent jurisdiction or
governmental or regulatory body shall have issued an order, decree or ruling, or
taken any other action, restraining, enjoining or otherwise prohibiting the
Closing of the transactions contemplated hereby and such order, decree, ruling
or other action shall have become final and non-appealable; or (b) with respect
to the initial Closing, by either the Purchasers or the Company if the initial
Closing shall not have occurred by 8:00 p.m., New York City Time, on July 1,
2009 and the terminating parties are not in material breach of this
Agreement.

       

      [Remainder
of Page Intentionally Left Blank]

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      The
parties have executed this Common Stock Purchase Agreement as of the date first
written above.

       

      
        
          
            
              	 
      	
                      COALOGIX
      INC.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ William J. McMahon

                    
	 
      	
                      Name:

                    	
                      William
      J. McMahon

                    
	 
      	
                      Title:

                    	
                      CEO

                    
	 
      	 
      	 
      
	 
      	
                      ACORN
      ENERGY, INC.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/
      John A. Moore

                    
	 
      	
                      Name:

                    	
                      John
      A. Moore

                    
	 
      	
                      Title:

                    	
                      CEO

                    
	 
      	 
      	 
      
	 
      	
                      ENERTECH
      CAPITAL PARTNERS III L.P.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      ECP
      III Management L.P.,

                    
	 
      	 
      	
                      Its
      general partner

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      ECP
      III Management LLC,

                    
	 
      	 
      	
                      Its
      general partner

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Scott Ungerer

                    
	 
      	
                      Name:

                    	
                      Scott
      Ungerer

                    
	 
      	
                      Title:

                    	
                      CEO

                    
	 
      	 
      	 
      
	 
      	
                      MANAGEMENT
      STOCKHOLDERS

                    
	 
      	 
      	 
      
	 
      	
                      /s/ William J. McMahon

                    
	 
      	
                      WILLIAM
      J. MCMAHON

                    
	 
      	 
      	 
      
	 
      	
                      /s/ Michael F. Mattes

                    
	 
      	
                      MICHAEL
      F. MATTES

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
              	
                /s/ Eric B. Dana

              
	 
      	
                ERIC
      B. DANA

              
	 
      	 
      	 
      
	 
      	
                /s/ Joe B.  Cogdell,
      Jr.

              
	 
      	
                JOE
      B. COGDELL, JR.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBITS

       

      
        
          
            
              
                
                  	
                          Exhibit A
      -

                        	 
      	
                          Schedule
      of Purchasers

                        
	 	 	 
	
                          Exhibit B
      -

                        	 
      	
                          Disclosure
      Schedule

                        
	 	 	 
	
                          Exhibit
      C -

                        	 
      	
                          Form
      of Legal Opinion of Company Counsel

                        
	 	 	 
	
                          Exhibit
      D-

                        	 
      	
                          New
      Options

                        

                

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

       

      SCHEDULE
OF PURCHASERS

      

      
        
          
            
              
                
                  
                    	
                            Purchaser

                          	 	
                            Shares of Common Stock

                          	 	 	
                            Purchase Price

                          	 
	
                            Acorn
      Energy, Inc.

                            4
      W. Rockland Road

                            P.O.
      Box 9

                            Montchanin,
      DE 19710

                          	 	 	781,111	 	 	$	5,623,999.20	 
	 
      	 	 	 	 	 	 	 	 
	
                            EnerTech
      Capital Partners III L.P.

                            435
      Devon Park Drive

                            700
      Building

                            Wayne,
      PA  19087

                          	 	 	781,111	 	 	$	5,623,999.20	 
	 
      	 	 	 	 	 	 	 	 
	
                            William
      J. McMahon

                            3937
      Cindy Lane

                            Denver,
      NC 28037

                          	 	 	6,944	 	 	$	49,996.80	 
	 
      	 	 	 	 	 	 	 	 
	
                            Michael
      F. Mattes

                            142
      Lake Pointe Drive

                            Fort
      Mill, SC 29708

                          	 	 	8,333	 	 	$	59,997.60	 
	 
      	 	 	 	 	 	 	 	 
	
                            Eric
      B. Dana

                            219
      Hobbs Street

                            Davidson,
      NC 28036

                          	 	 	10,417	 	 	$	75,002.40	 
	 
      	 	 	 	 	 	 	 	 
	
                            Joe
      B. Cogdell, Jr.

                            3100
      Valencia Terrace

                            Charlotte,
      NC 28211

                          	 	 	10,417	 	 	$	75,002.40	 

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
B

       

      DISCLOSURE
SCHEDULE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
C

       

      FORM
OF LEGAL OPINION

      OF

      COMPANY
COUNSEL

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
D

       

      NEW
OPTIONS

       

      
        
          
            
              
                
                  
                    
                      	
                              Senior Officer

                            	 	
                              No. of New Options

                            	 
	
                              William
      J. McMahon

                            	 	
                              40,513

                            	 
	
                              Michael
      F. Mattes

                            	 	
                              20,256

                            	 
	
                              Frank
      Wenz

                            	 	
                              5,069

                            	 
	
                              Michael
      Cooper

                            	 	
                              5,069

                            	 
	
                              Eric
      B. Dana

                            	 	
                              5,069

                            	 
	
                              Joe
      B. Cogdell, Jr.

                            	 	
                              5,069EXHIBIT
10.2

    

    COALOGIX
INC.

     

    AMENDED
AND RESTATED

     

    STOCKHOLDERS’
AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	 
      	
                              Page

                            
	
                              1.

                            	
                              Definitions.

                            	
                              1

                            	 
	
                              2.

                            	
                              Registration
      Rights

                            	
                              4

                            	 
	 
      	
                              2.1.

                            	
                              Participation
      in Subsequent Registration Rights

                            	
                              4

                            	 
	      
                              3.

                            	Information
      Rights	
                              4

                            	 
	 
      	
                              3.1.

                            	
                              Delivery
      of Financial Statements

                            	
                              4

                            	 
	 
      	
                              3.2.

                            	
                              Inspection

                            	
                              5

                            	 
	 
      	
                              3.3.

                            	
                              Termination
      of Information and Inspection Covenants

                            	
                              5

                            	 
	 
      	
                              3.4.

                            	
                              Confidentiality

                            	
                              6

                            	 
	
                              4.

                            	
                              Right
      of First Offer on Company Offerings

                            	
                              6

                            	 
	 
      	
                              4.1.

                            	
                              Right
      of First Offer

                            	
                              6

                            	 
	 
      	
                              4.2.

                            	
                              Management
      Shareholders Rights

                            	
                              7

                            	 
	 
      	
                              4.3.

                            	
                              Termination

                            	
                              7

                            	 
	
                              5.

                            	
                              Rights
      of Refusal and Co-Sale

                            	
                              8

                            	 
	 
      	
                              5.1.

                            	
                              Company
      Right of First Refusal

                            	
                              8

                            	 
	 
      	
                              5.2.

                            	
                              Secondary
      Refusal Right of Key Holders

                            	
                              8

                            	 
	 
      	
                              5.3.

                            	
                              Consideration;
      Closing

                            	
                              8

                            	 
	 
      	
                              5.4.

                            	
                              Right
      of Co-Sale

                            	
                              9

                            	 
	 
      	
                              5.5.

                            	
                              Drag-Along
      Right

                            	
                              10

                            	 
	 
      	
                              5.6.

                            	
                              Effect
      of Failure to Comply

                            	
                              11

                            	 
	 
      	
                              5.7.

                            	
                              Assistance
      with Pledging of Interests

                            	
                              12

                            	 
	
                              6.

                            	
                              Exempt
      Transfers

                            	
                              12

                            	 
	 
      	
                              6.1.

                            	
                              Transfers
      to Affiliates, Etc

                            	
                              12

                            	 
	 
      	
                              6.2.

                            	
                              Public
      Offering

                            	
                              12

                            	 
	
                              7.

                            	
                              Key
      Holder Buy/Sell

                            	
                              13

                            	 
	 
      	
                              7.1.

                            	
                              Triggering
      Notice

                            	
                              13

                            	 
	 
      	
                              7.2.

                            	
                              Response
      Notice

                            	
                              13

                            	 
	 
      	
                              7.3.

                            	
                              Cure
      Period

                            	
                              13

                            	 
	 
      	
                              7.4.

                            	
                              Closing

                            	
                              14

                            	 
	
                              8.

                            	
                              Stock
      Option Plan

                            	
                              14

                            	 
	
                              9.

                            	
                              Additional
      Covenants

                            	
                              14

                            	 
	 
      	
                              9.1.

                            	
                              Insurance

                            	
                              14

                            	 

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                	 
      	
                        9.2.

                      	
                        Employee
      Agreements

                      	
                        14

                      	 
	 
      	
                        9.3.

                      	
                        Employee
      Vesting

                      	
                        14

                      	 
	 
      	
                        9.4.

                      	
                        Board
      of Directors

                      	
                        15

                      	 
	 
      	
                        9.5.

                      	
                        Meetings
      of the Board of Directors

                      	
                        15

                      	 
	 
      	
                        9.6.

                      	
                        Successor
      Indemnification

                      	
                        15

                      	 
	 
      	
                        9.7.

                      	
                        Transactions
      with Related Parties

                      	
                        15

                      	 
	 
      	
                        9.8.

                      	
                        Actions
      Requiring Majority Stockholder Approval

                      	
                        15

                      	 
	 
      	
                        9.9.

                      	
                        Actions
      Requiring Super-Majority Stockholder Approval

                      	
                        16

                      	 
	 
      	
                        9.10.

                      	
                        Termination
      of Covenants

                      	
                        17

                      	 
	
                        10.

                      	
                        Miscellaneous

                      	
                        17

                      	 
	 
      	
                        10.1.

                      	
                        Transfers,
      Successors and Assigns

                      	
                        17

                      	 
	 
      	
                        10.2.

                      	
                        Governing
      Law

                      	
                        17

                      	 
	 
      	
                        10.3.

                      	
                        Counterparts

                      	
                        17

                      	 
	 
      	
                        10.4.

                      	
                        Titles
      and Subtitles

                      	
                        17

                      	 
	 
      	
                        10.5.

                      	
                        Notices

                      	
                        17

                      	 
	 
      	
                        10.6.

                      	
                        Amendments
      and Waivers

                      	
                        18

                      	 
	 
      	
                        10.7.

                      	
                        Severability

                      	
                        18

                      	 
	 
      	
                        10.8.

                      	
                        Additional
      Stockholders

                      	
                        18

                      	 
	 
      	
                        10.9.

                      	
                        Entire
      Agreement

                      	
                        19

                      	 
	 
      	
                        10.10.

                      	
                        Transfers
      of Rights

                      	
                        19

                      	 
	 
      	
                        10.11.

                      	
                        Delays
      or Omissions

                      	
                        19

                      	 
	 
      	
                        10.12.

                      	
                        Effectiveness

                      	
                        19

                      	 
	 
      	
                        10.13.

                      	
                        Legend
      on Stock Certificates

                      	
                        19

                      	 
	
                        Schedule
      A

                      	
                        -         
        Schedule of Stockholders

                      	 
      	 

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      EXECUTION
VERSION

       

    

    AMENDED
AND RESTATED

    STOCKHOLDERS’
AGREEMENT

     

    THIS AMENDED AND RESTATED
STOCKHOLDERS’ AGREEMENT (the “Agreement”) is made as of
April 8, 2009 by and among CoaLogix Inc., a Delaware corporation (the “Company”), and each of the
stockholders listed on Schedule A hereto, each person to whom the rights of
a Stockholder are assigned pursuant to Section 10.1 and each person who
hereafter becomes a signatory to this Agreement pursuant to Section 10.8 (each,
a “Stockholder” and,
collectively, the “Stockholders”).

     

    RECITALS

     

    WHEREAS, the Company, EnerTech
(as defined below) and Acorn Energy (as defined below) previously entered into
that certain Stockholders’ Agreement as of February 29, 2008 (the “Original Agreement”), and such
parties desire to amend and restate the Original Agreement as set forth in this
Agreement; and

     

    WHEREAS, EnerTech, Acorn
Energy and the individual Management Stockholders listed on Schedule A
(collectively, the “Purchasers”) and the Company
are parties to the Common Stock Purchase Agreement dated the date hereof (the
“Purchase Agreement”);
and

     

    WHEREAS, in order to induce
the Purchasers to enter into the Purchase Agreement and to induce the Purchasers
to invest funds in the Company pursuant to the Purchase Agreement, the
Stockholders and the Company hereby agree that this Agreement shall govern the
rights of the Stockholders to receive certain information from the Company, to
participate in future equity offerings by the Company and certain other matters
as set forth in this Agreement;

     

    NOW, THEREFORE,  for
and in consideration of the mutual promises of the parties hereto and other good
and valuable consideration, the receipt of sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree to amend and restate the
Original Agreement in its entirety, and the Original Agreement is hereby amended
and restated in its entirety as follows.

     

    1.  Definitions.  For purposes of
this Agreement:

     

    “Acorn Energy” shall mean Acorn
Energy, Inc and it Affiliates.

     

    “Affiliate” shall mean with
respect to any individual, corporation, partnership, association, trust, or any
other entity (in each case, a “Person”), any Person which,
directly or indirectly, controls, is controlled by or is under common control
with such Person, including, without limitation any general partner, officer or
director of such Person and any venture capital fund now or hereafter existing
which is controlled by or under common control with one or more general partners
or shares the same management company with such Person.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    “Common Stock” shall mean
shares of the Company’s common stock, $0.001 par value per share.

     

    “Company Notice” means written
notice from the Company notifying a selling Stockholder that the Company intends
to exercise its Right of First Refusal as to some or all of the Transfer Stock
with respect to any Proposed Transfer.

     

    “EnerTech” shall mean EnerTech
Capital Partners III L.P. and its Affiliates.

     

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

     

    “GAAP” shall mean U.S.
generally accepted accounting principles.

     

     “IPO” means the Company’s first underwritten public offering
of its Common Stock under the Securities Act.

     

    “Key Holders” means Acorn Energy and EnerTech, so long as they are
Stockholders owning at least five percent (5.0%) of the issued and outstanding
capital stock of the Company. If either Acorn Energy or EnerTech no longer owns
at least five percent of the issued and outstanding capital stock of the
Company, but still owns some capital stock of the Company, such former Key
Holder shall still be a Stockholder.

     

    “Key Holder Secondary Notice”
means written notice from a Key Holder notifying the Company and the selling Key
Holder or Stockholder, as the case may be, that such Key Holder intends to
exercise its Secondary Refusal Right as to a portion of the Transfer Stock with
respect to any Proposed Transfer.

     

    “Key Holder Stock” means any
Common Stock now owned or subsequently acquired by any Key Holder or such Key
Holder’s permitted transferees or assigns.

     

    “Management Stockholder” means
a Stockholder currently employed in the management of the Company, for so long
as such Stockholder is employed in such a capacity.

     

    “New Securities” shall mean
equity securities of the Company, whether now authorized or not, or rights,
options, or warrants to purchase said equity securities, or securities of any
type whatsoever that are, or may become, convertible into or exchangeable into
or exercisable for said equity securities (collectively “New Securities”).

     

    “Proposed Transfer” means any
proposed assignment, sale, offer to sell, pledge, mortgage, hypothecation,
encumbrance, disposition of or any other like transfer or encumbering of any
Common Stock (or any interest therein) proposed by any of the Stockholders;
provided that
Proposed Transfer shall not include any merger, consolidation or like transfer
effected pursuant to a vote of the Stockholders of Common Stock of the
Company.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Proposed Transfer Notice”
means written notice from a Stockholder setting forth the terms and conditions
of a Proposed Transfer.

     

    “Prospective Transferee” means
any Person to whom a Stockholder proposes to make a Proposed
Transfer.

     

     “Registrable Securities” means
(i) the Common Stock owned by either Key Holder, and (ii) any Common Stock of
the Company issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of the shares
referenced in clause (i), excluding in all
cases, however, any Registrable Securities sold by a Person in a transaction in
which such Person’s rights under Section 2 hereof
are not assigned or any shares for which registration rights have
terminated.

     

    “Right of Co-Sale” means the
right, but not an obligation, of a Key Holder or Management Stockholder to
participate in a Proposed Transfer on the terms and conditions specified in the
Proposed Transfer Notice.

     

    “Right of First Refusal” means
the right, but not an obligation, of a Key Holder or the Company, as the case
may be, or his, her or its permitted transferees or assigns, to purchase some or
all of the Transfer Stock with respect to a Proposed Transfer, on the terms and
conditions specified in the Proposed Transfer Notice.

     

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

     

    “Secondary Notice” means
written notice from the Company notifying the selling Key Holder and the other
Key Holder that the Company does not intend to exercise its Right of First
Refusal as to all shares of Transfer Stock with respect to any Proposed
Transfer.

     

    “Secondary Refusal Right” means
the right, but not an obligation, of each Key Holder to purchase up to its pro
rata portion (based upon the total number of shares of Common Stock then held by
all Key Holders) of Transfer Stock not purchased pursuant to the Company’ s
Right of First Refusal, on the terms and conditions specified in the Proposed
Transfer Notice.

     

    “Transfer Stock” means shares
of Common Stock subject to a Proposed Transfer.

     

    2.  Registration
Rights.  The
Company covenants and agrees as follows:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    2.1.           Participation in Subsequent
Registration Rights.  So
long as either Key Holder remains a Key Holder, from and after the date of this
Agreement, the Company shall not, without the prior written consent of each Key
Holder, enter into any agreement with any stockholder or prospective stockholder
of any securities of the Company which would grant such stockholder or
prospective stockholder registration rights in respect of Registrable
Securities, unless the Company shall thereunder grant each Key Holder
registration rights identical to the most favorable registration rights provided
to any other stockholder or prospective stockholder of any securities of the
Company.

     

    3.           Information
Rights.

     

    3.1.           Delivery of Financial
Statements.  So long as EnerTech owns
one percent (1.0%) of the issued and outstanding capital stock of the Company,
the Company shall deliver to EnerTech or its Affiliate, as the case may
be:

     

    (a)  as
soon as practicable, but in any event within ninety (90) days after the end of
each fiscal year of the Company, a balance sheet and income statement as of the
last day of such year; a statement of cash flows for such year and a comparison
between the actual figures for such year, the comparable figures for the prior
year and the comparable figures included in the Budget (as defined below) for
such year, with an explanation of any material differences between them and a
schedule as to the sources and applications of funds for such year, such
year-end financial reports to be in reasonable detail, prepared in accordance
with GAAP, of the Company;

     

    (b)  as
soon as practicable, but in any event within forty-five (45) days after the end
of each of the first three (3) quarters of each fiscal year of the Company, an
unaudited income statement, schedule as to the sources and application of funds
for such fiscal quarter, an unaudited balance sheet and a statement of
stockholder’s equity as of the end of such fiscal quarter;

     

    (c)   as
soon as practicable, but in any event with forty-five (45) days after the end of
each of the first three (3) quarters of each fiscal year of the Company, a
statement showing the number of shares of each class and series of capital stock
and securities convertible into or exercisable for shares of capital stock
outstanding at the end of the period, the number of common shares issuable upon
conversion or exercise of any outstanding securities convertible or exercisable
for common shares and the exchange ratio or exercise price applicable thereto
and number of shares of issued stock options and stock options not yet
issued but reserved for issuance, if any, all in sufficient detail as to permit
EnerTech or its Affiliate to calculate its percentage equity ownership in the
Company and certified by the Chief Financial Officer or Chief Executive Officer
of the Company as being true, complete and correct;

     

    (d)  as
soon as practicable, but in any event within thirty (30) days of the end of each
month, an unaudited income statement, an unaudited profit or loss
statement;

     

    (e)  as
soon as practicable, but in any event thirty (30) days prior to the end of each
fiscal year, a budget and business plan for the next fiscal year (collectively,
the “Budget”), prepared
on a monthly basis, including balance sheets and sources and applications of
funds statements for such months and, as soon as prepared, any other budgets or
revised budgets prepared by the Company;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (f)  with
respect to the financial statements called for in subsections (a)
and(b) of this Section 3.1, an
instrument executed by the Chief Financial Officer and President or Chief
Executive Officer of the Company and certifying that such financials were
prepared in accordance with GAAP consistently applied with prior practice for
earlier periods (with the exception of footnotes that may be required by GAAP)
and fairly present the financial condition of the Company and its results of
operation for the periods specified therein, subject to year-end audit
adjustment;

     

    (g) such
other information relating to the financial condition, business, prospects or
corporate affairs of the Company as EnerTech or any assignee of EnerTech may
from time to time reasonably request, provided, however,
that the Company shall not be obligated under this subsection (g)
or any other subsection of Section 3.1 to
(i) provide information which the Company reasonably deems in good faith to be a
trade secret or similar confidential information (unless covered by an
enforceable confidentiality agreement, in form acceptable to the Company) or
(ii) would adversely affect the attorney-client privilege between the Company
and its counsel;

     

    (h) if
for any period the Company shall have any subsidiary whose accounts are
consolidated with those of the Company, then in respect of such period the
financial statements delivered pursuant to the foregoing sections shall be the
consolidated and consolidating financial statements of the Company and all such
consolidated subsidiaries.

     

    (i)
notices describing in reasonable detail any claim, action, suit, proceeding,
arbitration, complaint, charge or investigation pending or to the knowledge of
the Company threatened against the Company or any officer or director of the
Company involving the Company or any default or breach by any party under any
agreement of the Company as soon as practicable, but in any event within five
(5) days after the Company becomes aware of such litigation or contract
default.

     

    3.2.           Inspection.  So long as EnerTech owns one percent (1.0%) of the
issued and outstanding capital stock of the Company, the Company shall
permit, at EnerTech’s expense, EnerTech to visit and inspect the Company’s
properties, to examine its books of account and records and to discuss the
Company’s affairs, finances and accounts with its officers, all at such
reasonable times as may be reasonably requested by at EnerTech; provided, however,
that the Company shall not be obligated pursuant to this Section 3.2 to
provide access to any information which it reasonably considers to be a trade
secret or similar confidential information (unless covered by an enforceable
confidentiality agreement in a form acceptable to the Company) or would
adversely affect the attorney-client privilege between the Company and its
counsel.

     

    3.3.           Termination of Information
and Inspection Covenants.  The covenants set forth in Section 3.1 and Section 3.2
shall terminate as to EnerTech and be of no further force or effect immediately
prior to the consummation of the sale of shares of Common Stock in the Company’s
IPO or when the Company first becomes subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the Exchange Act, unless EnerTech
ceases to own one percent (1.0%) of the issued and
outstanding capital stock of the Company prior to the occurrence of such
events, in which case the covenants shall terminate as of the date that EnerTech
no longer owns one percent (1.0%) of the issued
and outstanding capital stock of the Company.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    3.4.           Confidentiality.  Each
Stockholder agrees that such Stockholder will keep confidential and will not
disclose, divulge or use for any purpose, other than to monitor its investment
in the Company, any confidential information obtained from the Company pursuant
to the terms of this Agreement, unless such confidential information (i) is
known or becomes known to the public in general (other than as a result of a
breach of this Section
3.4 by such Stockholder), (ii) is or has been independently developed or
conceived by the Stockholder without use of the Company's confidential
information or (iii) is or has been made known or disclosed to the Stockholder
by a third party without a breach of any obligation of confidentiality such
third party may have to the Company; provided, however,
that a Stockholder may disclose confidential information (a) to its
attorneys, accountants, consultants, and other professionals to the extent
necessary to obtain their services in connection with monitoring its investment
in the Company, (b) to any prospective purchaser of any Registrable
Securities from such Stockholder as long as such prospective investor agrees to
be bound by the provisions of this Section 3.4,
(c) to any Affiliate, partner, member, stockholder or wholly owned
subsidiary of such Stockholder in the ordinary course of business, as long as
such Affiliate, partner, member stockholder or wholly owned subsidiary of such
Stockholder agrees to be bound by the provisions of this Section 3.4, or (d)
as may otherwise be required by law, provided that the Stockholder takes
reasonable steps to minimize the extent of any such required
disclosure.  The Company, EnerTech, and the Stockholders hereby
acknowledge that EnerTech invests in numerous companies, some of which may be
competitive with the Company’s business.  The Company, EnerTech and
the Stockholders agree that EnerTech shall not be liable for any claim arising
out of, or based upon, (i) the investment by EnerTech in any entity competitive
to the Company, (ii) actions taken by any partner, officer or other
representative of EnerTech to assist any such competitive company, whether or
not such action was taken as a board member of such competitive company, or
otherwise, and whether or not such action has a detrimental effect on the
Company, unless such claim arises directly from the EnerTech’s misuse of
confidential information in material breach of this Section
3.4.

     

    4.           Right
of First Offer on Company Offerings

     

    4.1.           Right of First
Offer.  Subject
to the terms and conditions specified in this Section 4.1, and
applicable securities laws, in the event the Company proposes to offer or sell
any New Securities other than the Common Stock to be issued under the Purchase
Agreement, the Company shall first make an offering of such New Securities to
EnerTech and Acorn (collectively, the “Offerees”, and individually,
an “Offeree”) in
accordance with the following provisions of this Section
4.1.  An Offeree shall be entitled to apportion the right of
first offer hereby granted it among itself and its partners, members and
Affiliates in such proportions as they each deem appropriate.

     

    (a)  The
Company shall deliver a notice, in accordance with the provisions of Section 10.5
hereof,  (the “Offer
Notice”) to the Offerees stating (i) its bona fide intention to
offer such New Securities, (ii) the number of such New Securities to be
offered, and (iii) the price and terms, if any, upon which it proposes to
offer such New Securities.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b)  By
written notification received by the Company, within twenty (20) calendar days
after mailing of the Offer Notice, an Offeree may elect to purchase or obtain,
at the price and on the terms specified in the Offer Notice, up to that portion
of such New Securities which equals the proportion that the number of shares of
Common Stock issued and then held by such Offeree bears to the total number of
shares of Common Stock of the Company issued and then held by all the
Stockholders.

     

    (c)  In
the event that the Company proposes to offer New Securities contingently, each
Offeree will be issued warrants (“Contingent Warrants”) to
purchase its pro rata portion of equity securities which may be purchased
pursuant to such New Securities, or into which such New Securities may become
convertible, as the case may be, in lieu of receiving such New Securities on the
same terms as stated in the Offer Notice. The exercise of such Contingent
Warrants will be subject to the same contingencies as the New Securities
proposed to be offered. An Offeree must exercise such Contingent Warrants within
twenty (20) calendar days after the Company has properly delivered a notice to
the Offeree, in accordance with Section 10.5 hereof,
that such Contingent Warrants may be exercised.

     

    (d)  If
the consideration proposed to be paid for New Securities is in property,
services or other non-cash consideration, the value of the consideration shall
be as agreed in good faith by the Offeree and the Company. If the Offeree and
the Company fail to agree in good faith as to the value of such consideration,
the price paid for such offered New Securities shall be deemed to be the value
of such consideration as calculated in accordance with GAAP.

     

    (e)  The
right of first offer in this Section 4.1 shall not
be applicable to: (i) the shares of Common Stock properly issued or deemed
issued to employees or directors of, or consultants to, the Company or any of
its subsidiaries pursuant to the Stock Option Plan (as defined in Section 8); or (ii)
securities issued in connection with any stock split or stock dividend of the
Company.

     

    (f)  The
right of first offer set forth in this Section 4.1 may
not be assigned or transferred except that such right is assignable by an
Offeree to any of its Affiliates.

     

    4.2.           Termination.

     

    (a)  The
provisions of this Section 4 shall
terminate upon the first to occur of (i) the consummation of an IPO or (ii) a
failure by an Offeree to elect to purchase a portion of New Securities to which
it is entitled under Section 4.1(b), or to
exercise its Contingent Warrants, if any, as provided under Section 4.1(c);
provided, however, in the case of the immediately preceding clause (ii) this
Section 4 shall
terminate only as to the Offeree who has failed to so elect or
exercise.

     

    4.3.            Management Stockholders’
Rights.  The parties hereto acknowledge that certain Management
Stockholders have a right of first offer to purchase New Securities of the
Company under the terms of their individual option agreements entered into in
connection with the Stock Option Plan, and the Company shall coordinate the
administration of the right of first offer described in Section 4.1 with the
right of first offer held by such Management Stockholders.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    5.           Rights
of Refusal and Co-Sale

     

    5.1.           Company Right of First
Refusal.  Each Stockholder hereby unconditionally and
irrevocably grants to the Company a Right of First Refusal to purchase all or
any portion of Transfer Stock that such Stockholder may propose to transfer in a
Proposed Transfer, at the same price and on the same terms and conditions as
those offered to the Prospective Transferee. Each Stockholder proposing to make
a Proposed Transfer must deliver a Proposed Transfer Notice to the Company and
the Key Holders, not later than 10 days prior to the consummation of such
Proposed Transfer.  Such Proposed Transfer Notice shall contain the
material terms and conditions of the Proposed Transfer and the identity of the
Prospective Transferee.  The Company must exercise its Right of First
Refusal under this Section 5.1 by giving
a Company Notice to such selling holder of Common Stock within fifteen (15) days
after delivery of the Proposed Transfer Notice.

     

    5.2.           Secondary Refusal Right of
Key Holders.

     

    (a)  Each
Key Holder hereby unconditionally and irrevocably grants to the other Key Holder
a Secondary Refusal Right to purchase the shares of Key Holder Stock not
purchased by the Company pursuant to the Company’s Right of First Refusal under
Section 5.1, as
provided in this Section
5.2.  If the Company does not intend to exercise its Right of
Refusal under Section
5.1 with respect to all Key Holder Stock subject to a Proposed Transfer,
the Company must deliver a Secondary Notice to the other Key Holder to that
effect no later than fifteen (15) days after the selling Key Holder delivers the
Proposed Transfer Notice to the Company.  To exercise its Secondary
Refusal Right, a Key Holder must deliver a Key Holder Secondary Notice to the
selling Key Holder and the Company within ten (10) days after the deadline for
delivery of the Secondary Notice.

     

    (b)  Each
Stockholder that is not a Key Holder hereby unconditionally and irrevocably
grants to the Key Holders a Secondary Refusal Right to purchase up to each Key
Holder’s pro rata portion (based upon the total number of shares of each Key
Holder’s Stock) of the Stockholder’s stock not purchased by the Company pursuant
to the Company’s Right of First Refusal under Section 5.1, as
provided in this Section
5.2.  If the Company does not intend to exercise its Right of
Refusal under Section
5.1 with respect to all of the selling Stockholder’s Common Stock subject
to a Proposed Transfer, the Company must deliver a Secondary Notice to the Key
Holders to that effect no later than fifteen (15) days after the selling
Stockholder delivers the Proposed Transfer Notice to the Company.  To
exercise its Secondary Refusal Right, a Key Holder must deliver a Key Holder
Secondary Notice to the selling Stockholder and the Company within ten (10) days
after the deadline for delivery of the Secondary Notice.

     

    5.3.           Consideration;
Closing.  If the consideration proposed to be paid for the
Transfer Stock is in property, services or other non-cash consideration, the
fair market value of the consideration shall be determined in good faith by the
Company’s Board of Directors.  If the Company or any Key Holder cannot
for any reason pay for the Transfer Stock in the same form of non-cash
consideration, the Company or such Key Holder may pay the cash value equivalent
thereof, as determined by the Board of Directors.  The closing of the
purchase of Transfer Stock by the Company and/or the other Key Holder, as the
case may be, shall take place, and all payments from the Company and/or the
other Key Holder, as the case may be, shall have been delivered to the selling
Stockholder by the later of (i) the date specified in the Proposed Transfer
Notice as the intended date of the Proposed Transfer and (ii) forty-five (45)
days after delivery of the Proposed Transfer Notice.

    
      
         

      

      
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    5.4.           Right of
Co-Sale.

     

    (a)  If
any Transfer Stock subject to a Proposed Transfer by a Stockholder is not
purchased pursuant to Sections 5.1 and
5.2 above and
thereafter is to be sold to a Prospective Transferee, a Key Holder or Management
Stockholder may elect to exercise its Right of Co-Sale and participate on a
pro-rata basis in the Proposed Transfer on the same terms and conditions
specified in the Proposed Transfer Notice.  A Key Holder or Management
Stockholder who desires to exercise its Right of Co-Sale must give the selling
Stockholder written notice to that effect within fifteen (15) days after the
deadline for delivery of the Key Holder Secondary Notice as described above, and
upon giving such notice such Key Holder or Management Stockholder shall be
deemed to have effectively exercised the Right of Co-Sale.

     

    (b)  Each
Key Holder or Management Stockholder who timely exercises its Right of Co-Sale
by delivering the written notice provided for above in Section 5.4(a) may
include in the Proposed Transfer all or any part of his, her or its Common Stock
equal to the product obtained by multiplying (i) the aggregate number of shares
of Stockholder Common Stock subject to the Proposed Transfer (excluding shares
purchased by the Company pursuant to the Right of First Refusal of the Company)
by (ii) a fraction, the numerator of which is the number of shares of Common
Stock owned by such Key Holder or Management Stockholder immediately before
consummation of the Proposed Transfer  and the denominator of which is
the total number of shares of Common Stock owned, in the aggregate, by all
Stockholders immediately prior to the consummation of the Proposed
Transfer.  To the extent a Key Holder or Management Stockholder
exercises such right of participation in accordance with the terms and
conditions set forth herein, the number of shares of Common Stock that the
selling Stockholder may sell in the Proposed Transfer shall be correspondingly
reduced.

     

    (c)  Each
participating Key Holder or Management Stockholder shall effect its
participation in the Proposed Transfer by delivering to the transferring
Stockholder, no later than fifteen (15) days after such Key Holder’s or
Management Stockholder’s exercise of the Right of Co-Sale, one or more stock
certificates, properly endorsed for transfer to the Prospective Transferee,
representing the number of shares of Common Stock that such Key Holder or
Management Stockholder elects to include in the Proposed Transfer.

     

    (d)  The
terms and conditions of any sale pursuant to this Section 5.4 will be
memorialized in, and governed by, a written purchase and sale agreement with
customary terms and provisions for such a transaction.

    
      
         

      

      
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    (e)  Each
stock certificate a participating Key Holder or Management Stockholder delivers
to the selling Stockholder pursuant to subparagraph (c) above will be
transferred to the Prospective Transferee against payment therefor in
consummation of the sale of the Transfer Stock pursuant to the terms and
conditions specified in the Proposed Transfer Notice and the purchase and sale
agreement, and the selling Stockholder shall concurrently therewith remit to the
appropriate Key Holder or Management Stockholder the portion of the sale
proceeds to which such Key Holder or Management Stockholder is entitled by
reason of its participation in such sale.  If any Prospective
Transferee or Transferees refuse(s) to purchase securities subject to the Right
of Co-Sale from a Key Holder or Management Stockholder exercising its Right of
Co-Sale hereunder, no Stockholder may sell any Common Stock to such Prospective
Transferee or Transferee unless and until, simultaneously with such sale, such
selling Stockholder purchases all securities subject to the Right of Co-Sale
from such other Stockholders.

     

    (f)  If
any Proposed Transfer is not consummated within forty-five (45) days after
receipt of the Proposed Transfer Notice by the Key Holders, the Management
Stockholders, or the Company, as the case may be, the Stockholder proposing the
Proposed Transfer may not sell any of its Common Stock unless it first complies
in full with each provision of this Section
5.  The exercise or election not to exercise any right by any
Key Holder or Management Stockholder hereunder shall not adversely affect its
right to participate in any other sales of Transfer Stock subject to this Section
5.4.

     

    5.5.           Drag-Along
Right.

     

    (a)  In
the event that any Key Holder owns more than fifty percent (50%) of the
Company’s issued and outstanding capital stock and such Key Holder desires to
accept a bona fide offer (a "Purchase Offer") from any
person or persons, other than an Affiliate or another Stockholder, to purchase
all (a "Divestiture")
the shares of Common Stock then held by such Key Holder, then such Key Holder
shall promptly deliver to each of the other Stockholders a written notice (the
"Purchase Offer Notice")
stating such Key Holder’s intention to sell such shares pursuant to such
Purchase Offer and setting forth the terms and conditions of such Purchase
Offer, including, without limitation, the identity of the proposed purchaser and
the amount and type of consideration to be paid therefor.  The
Purchase Offer Notice shall include a copy of any written offer, letter of
intent, term sheet or contract of sale pertaining to the Purchase
Offer.

     

    (b)  In
connection with a Divestiture, any Key Holder owning more than fifty percent
(50%) of the Company’s issued and outstanding capital stock shall have the right
("Drag Along Right") to
require each other Stockholder to participate in such sale of Common Stock by
such Key Holder on the terms and conditions set forth in the Purchase Offer
Notice (which shall be the same terms and conditions (on a per share basis) as
are applicable to such Key Holder’s sale of shares of Common Stock to the
proposed purchaser).  Such Drag Along Right shall be exercisable by
such Key Holder including in its Purchase Offer Notice a statement to the effect
that such Key Holder elects to exercise its Drag Along Right in connection with
the proposed sale.  At any time prior to the closing of such sale,
such Key Holder may withdraw its election to exercise its Drag Along Right upon
written notice to the Stockholders.

    
      
         

      

      
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    (c)  The
closing of the purchase and sale of any shares of Common Stock to be sold
pursuant to the Drag Along Right shall occur concurrently with the closing of
the sale of the shares of the Common Stock by the Key Holder owning more than
fifty percent (50%) of the Company’s issued and outstanding capital stock, which
shall be a date not less than sixty (60) days after the giving of the Purchase
Offer Notice.  At any such closing, each Stockholder  shall
deliver to the purchaser a certificate or certificates representing the number
of shares of Common Stock to be sold by such Stockholder, duly endorsed in blank
or accompanied by a duly executed stock power in blank, with signatures duly
guaranteed and all requisite stock transfer stamps affixed
thereto.  All Stockholders shall be treated equally under this Section
5.5.  It shall be a condition of the obligation to sell under
this Section
5.5 that all facts and circumstances and all material aspects of any
transaction under this Section 5.5 shall be
disclosed.  The provisions of this Section 5.5 shall
terminate upon an IPO.

     

    5.6.           Effect of Failure to
Comply.

     

    (a)  Any
Proposed Transfer not made in compliance with the requirements of this Agreement
shall be null and void ab initio, shall not be recorded on the books of the
Company or its transfer agent and shall not be recognized by the
Company.  Each party hereto acknowledges and agrees that any breach of
this Agreement would result in substantial harm to the other parties hereto for
which monetary damages alone could not adequately
compensate.  Therefore, the parties hereto unconditionally and
irrevocably agree that any non-breaching party hereto shall be entitled to seek
protective orders, injunctive relief and other remedies available at law or in
equity (including, without limitation, seeking specific performance or the
rescission of purchases, sales and other transfers of Common Stock not made in
strict compliance with this Agreement).

     

    (b)  If
any Stockholder becomes obligated to sell any Common Stock to the Company under
this Agreement and fails to deliver such Common Stock in accordance with the
terms of this Agreement, the Company may, at its option, in addition to all
other remedies it may have, send to such Stockholder the purchase price for such
Common Stock as is herein specified and cancel on its books the certificate or
certificates representing the Common Stock to be sold.

     

    (c)  If
any Stockholder purports to sell any Common Stock in contravention of the terms
of this Agreement (a “Prohibited Transfer”), the
Company or a Key Holder, as the case may be, in addition to such remedies as may
be available by law, in equity or hereunder, is entitled to require the
following actions of such Stockholder, and such Stockholder will be bound by the
terms of such option:

     

    (i)           If
a Stockholder makes a Prohibited Transfer, a Key Holder or the Company, as the
case may be, who timely exercises his, her or its Right of First Refusal under
Sections 5.1
and 5.2 may
require such Stockholder, to sell to the other Key Holder or the Company, as the
case may be, the number of shares of Common Stock that such other Key Holder or
the Company, as the case may be, would have been entitled to purchase under
Sections 5.1
and 5.2 had the
Prohibited Transfer been effected pursuant to and in compliance with the terms
of Sections 5.1
and 5.2.

     

    (ii)           If
a Key Holder makes a Prohibited Transfer, the other Key Holder that timely
exercises its Right of Co-Sale under Section 5.4 may
require such Key Holder to purchase from it the number of shares of Common Stock
that such Key Holder would have been entitled to sell to the Prospective
Transferee under Section 5.4 had the
Prohibited Transfer been effected pursuant to and in compliance with the terms
of Section
5.4.

    
      
         

      

      
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    In each
case, the sale will be made on the same terms and subject to the same conditions
as would have applied had the Stockholder not made the Prohibited Transfer,
except that the sale (including, without limitation, the delivery of the shares
or the purchase price, as the case may be) must be made within ninety (90) days
after the Company or the other Key Holder, as the case may be, learns of the
Prohibited Transfer, as opposed to the timeframe proscribed in Sections 5.1, 5.2, 5.3, 5.4, or 5.5 as the case may
be.  Such Stockholder shall also reimburse the other Key Holder and
the Company, as the case may be, for any and all fees and expenses, including
legal fees and expenses, incurred pursuant to the exercise or the attempted
exercise of the Key Holder’s or the Company’s, as the case may be, rights under
Sections 5.1,
5.2, 5.3, 5.4, or 5.5 as the case may
be.

     

    5.7.           Assistance with Pledging of
Interests.  The rights of the Company and the Key Holders under
this Section 5
shall not pertain or apply to any pledge by a Key Holder of its Common Stock
which creates a mere security interest in such Common Stock. The Company shall
consent to any pledging of any Key Holder’s Common Stock and other matters
customarily requested of the Key Holders by the Key Holders’ lenders; provided that any
pledge of Common Stock shall be contingent upon the pledgee providing a written
instrument to the Company agreeing in writing that its lien is subject to the
terms of this Agreement.

     

    6.           Exempt
Transfers.

     

    6.1.           Transfers to Affiliates,
Etc.  Notwithstanding the foregoing or anything to the contrary
herein, the provisions of Sections 5.1, 5.2 and 5.4 shall not apply:
(i) in the case of a Key Holder that is an entity, upon a transfer by such Key
Holder to its stockholders, members, partners or other equity holders, (ii) to a
repurchase of Common Stock from a Key Holder by the Company at a price no
greater than that originally paid by such Key Holder for such Common Stock and
pursuant to an agreement containing vesting and/or repurchase provisions
approved by a majority of the Board of Directors, or (iii) to the sale or
transfer of Common Stock between Key Holders and their respective Affiliates;
provided, however, that such
transfer shall be contingent upon the transferee providing a written instrument
to the Company notifying the Company of such transfer and assignment and
agreeing in writing to be bound by the terms of this Agreement; and provided further,
notwithstanding any such permitted transfer, such transferred Common Stock shall
remain Common Stock and Key Holder Stock for all purposes hereunder, and such
transferee shall be treated as a Key Holder, as the case may be, (but only with
respect to the securities so transferred to the transferee) for all purposes of
this Agreement (including the obligations of a Key Holder with respect to
Proposed Transfers of such Capital Stock pursuant to Section 5); and provided, further, in the case
of any transfer pursuant to clause (i), that such transfer is made pursuant to a
transaction in which there is no consideration actually paid for such
transfer.

     

    6.2.           Public
Offering.  Notwithstanding the foregoing or anything to the
contrary herein, the provisions of Section 5 shall not
apply to the sale of any Common Stock to the public in an IPO, and the
provisions of Section
5 shall terminate and be of no further force or effect upon (a) the
consummation of the IPO, or (b) the Company first becoming subject to the
periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act,
whichever event shall first occur.

    
      
         

      

      
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    7.           Key Holder
Buy/Sell.

     

    7.1.           Triggering
Notice.  Either Key Holder (such Key Holder, the “Triggering Key Holder”) may
deliver a written notice in accordance with the provisions of Section 10.5
hereof,  (a “Triggering Notice”) to the
other Key Holder (the “Responding Key Holder”) and in
such event will also deliver a copy of the Triggering Notice to the Management
Stockholders in accordance with the provisions of Section 10.5 hereof stating:
(i) its intent to commence a purchase or sale of Key Holder Stock under this
Section 7 and
(ii) the per-share price (the “Per-Share Buy/Sell Price”)
which will be applicable to such transaction.

     

    7.2.           Response Notice and Election
Notice.  Within 90 days of the delivery of a Triggering Notice,
the Responding Key Holder shall deliver a written notice in accordance with the
provisions of Section 10.5 (the “Response Notice”) to the
Triggering Key Holder stating whether the Responding Key Holder has elected: (i)
to  purchase the entirety of the Triggering Key Holder’s Common Stock
at the Per-Share Buy/Sell Price or (ii) to sell the entirety of its Common Stock
to the Triggering Key Holder at the Per-Share Buy/Sell Price.  Within
90 days of the delivery of a Triggering Notice, Management Stockholders shall
have the right to deliver written notices in accordance with the provisions of
Section 10.5 (the “Election
Notice”) to the Triggering Key Holder and Responding Key Holder stating
the Management Stockholders’ intent to exercise its right to tag along and sell
the Management Stockholders’ Common Stock in accordance with the terms of this
Section 7.  Management Stockholders who elect to exercise their right
to tag along and sell their shares of Common Stock after delivering such
Election Notice shall sell their shares of Common Stock to whichever one of the
Triggering Key Holder and Responding Key Holder is the purchaser of the Common
Stock as described in Section 7.3 in
accordance with the terms and purchase price set forth in the Triggering
Notice.  The Management Stockholders’ tag along rights set forth in
this Section
7.2 shall not be applicable to (i) the shares of Common Stock properly
issued or deemed issued to employees or directors of, or consultants to, the
Company or any of its subsidiaries pursuant to the Stock Option Plan (as defined
in Section 8);
or (ii) securities issued in connection with any stock split or stock dividend
of the Company relating to the shares of Common Stock described in clause (i) of
this Section 7.2.

     

    7.3.           Cure
Period.  If no Response Notice is delivered within 90 days of a
Triggering Notice, the Triggering Key Holder shall deliver a written notice in
accordance with the provisions of Section 10.5 (the “Cure Period Notice”) to the
Responding Key Holder stating that the Responding Key Holder has failed to
deliver a Response Notice and stating that the Responding Key Holder (with a
copy to the Management Stockholders) has 15 days from delivery of the Cure
Period Notice (the “Cure
Period”) to deliver a Response Notice to the Triggering Key Holder. If
the Responding Key Holder does not deliver a Response Notice within the Cure
Period, the Triggering Key Holder shall, at its sole option, within ten days of
the conclusion of the Cure Period elect:  (i) to  purchase
the entirety of the Responding Key Holder’s Common Stock at the Per-Share
Buy/Sell Price or (ii) to sell the entirety of its Common Stock to the
Responding Key Holder at the Per-Share Buy/Sell Price.  The Management
Stockholders who earlier delivered an Election Notice shall sell their shares of
Common Stock to the purchaser as determined by the immediately preceding
sentence.  The Key Holders and the Management Stockholders who earlier
delivered an Election Notice shall thereupon effect a Closing of a sale or
purchase in accordance with the provisions of Section 7.4 pursuant to the terms
of the preceding sentence.

    
      
         

      

      
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    7.4.           Closing.  The
closing of a sale or purchase under this Section 7 shall take
place, and stock certificates representing all of the shares of Common Stock of
the Selling Key Holder and Management Shareholders who delivered an Election
Notice, properly endorsed for transfer to the purchasing Key Holder, as well as
all payments from the purchasing Key Holder shall have been delivered to the
selling Key Holder and Management Shareholders who delivered an Election Notice
within forty-five (45) days after delivery of the Response Notice, the Cure
Period Notice or the expiration of the Cure Period, as the case may
be.

     

    8.           Stock Option
Plan.  Notwithstanding the foregoing or anything to the
contrary herein, the provisions of Sections 4 and 5 shall not apply to
the issuance of options under the Company’s 2008 Stock Option Plan a management
option plan (the “Stock Option
Plan”), provided that: (i) the total Company equity available for
issuance under the Stock Option Plan will not exceed 12.5% ownership of the
Company, on a fully diluted basis following Closing (as defined in the Purchase
Agreement); (ii) the exercise price per share for any options issued under the
Stock Option Plan on or after the date hereof will be equal to or greater than
the price per share paid by EnerTech under the Purchase Agreement; and (iii) the
option pool under the Stock Option Plan shall not be increased without
EnerTech’s written consent.

     

    9.           Additional
Covenants.

     

    9.1.           Insurance.  Acorn
Energy maintains Directors and Officers Errors and Omissions insurance
pursuant to a policy of insurance substantially in the form provided to
EnerTech. The Company and Acorn Energy will use reasonable best efforts to cause
such insurance policy to be maintained until such time as the Board of Directors
of the Company determines that such insurance should be discontinued. The policy
shall not be cancelable by Acorn Energy without prior approval of the Board of
Directors.

     

    9.2.           Employee
Agreements.  The
Company will cause each person now or hereafter employed by it or any subsidiary
(or engaged by the Company or any subsidiary as a consultant/independent
contractor) with access to confidential information and/or trade secrets to
enter into a proprietary information, inventions, non-competition and
non-solicitation agreement substantially in the form approved by the Board of
Directors and satisfactory to the Stockholders.

     

    9.3.           Employee
Vesting.  All future employees and consultants of the Company
who shall purchase, or receive options to purchase, shares of the Company’s
capital stock following the date hereof shall be required to execute stock
purchase or option agreements providing for vesting of shares over a four-year
period with the first 25% of such shares vesting following 12 months of
continued employment or services after the grant date of each such security, and
the remaining shares vesting in equal quarterly installments over the following
36 months. The issuance or transfer of any options to purchase shares of the
Company’s capital stock shall be contingent upon the holder or transferee
becoming a party to this Agreement by executing and delivering an additional
counterpart signature page to this Agreement, and thereafter such holder or
transferee shall be deemed a “Stockholder” for all purposes
hereunder.

    
      
         

      

      
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    9.4.           Board of
Directors.  Each Stockholder agrees to vote all of his, her or
its shares of voting securities in the Company, whether now owned or hereafter
acquired or which such Stockholder may be empowered to vote, from time to time
and at all times, in whatever manner shall be necessary to ensure that at each
annual or special meeting of stockholders at which an election of directors is
held or pursuant to any written consent of the stockholders, the following
persons shall be elected to the Board: five to seven individuals designated in
the following proportions: (i) one designee of EnerTech, for so long as EnerTech
remains a Key Holder , (ii) two designees of Acorn Energy, (iii) one to three
outside directors designated by the Stockholders voting together as a single
class, and (iv) the chief executive officer of the Company.

     

    9.5.           Meetings of the Board of
Directors.  The Board shall meet no less frequently than once
every quarter, with monthly telephone conversations on an as-needed
basis.  Each authorized committee of the Board shall include the
director elected by EnerTech.  EnerTech shall be entitled to appoint
an observer, who is approved by the Company’s Chief Executive, to all Board
meetings.  The Company will reimburse non-employee directors for all
reasonable out-of-pocket expenses incurred in attending board and committee
meetings.

     

    9.6.           Successor Indemnification.
In the event that the Company or any of its successors or assigns (i)
consolidates with or merges into any other entity and shall not be the
continuing or surviving corporation or entity of such consolidation or merger or
(ii) transfers or conveys all or substantially all of its properties and assets
to any person or entity, then, and in each such case, to the extent necessary,
proper provision shall be made so that the successors and assigns of the Company
assume the obligations of the Company with respect to indemnification of members
of the Board of Directors as in effect immediately prior to such transaction,
whether in the Company’s bylaws, Certificate of Incorporation, or elsewhere, as
the case may be.

     

    9.7.           Transactions with Related
Parties.  The Company shall not enter into any business
dealing, undertaking, contract, agreement, lease or other arrangement for the
furnishing to or by the Company of goods, services or space or any other
transaction with any Stockholder or any Affiliate of any Stockholder (an “Affiliate Contract”) and shall
not take any action pertaining to the rights and obligations of the Company
under such Affiliate Contract, without the approval of a majority of the
disinterested members of the Company’s Board of Directors.

     

    9.8.           Actions Requiring Majority
Stockholder Approval.  Consent of the Stockholders holding a
majority of the outstanding voting shares of Common Stock, which Stockholders
must include EnerTech, provided that (x) EnerTech holds 5% or more of the
Company’s issued and outstanding Common Stock and (y) EnerTech has exercised all
of its rights under Section 4 to acquire
New Securities prior to the termination of such rights under Section 4.2, shall be
required for any action that (including by way of merger, consolidation,
reclassification, reorganization or other similar event) creates, authorizes, or
issues: (i) any class of stock or securities of the Company having any right,
preference, privilege, power or priority superior to the Common Stock, or (ii)
any debt or lease transaction resulting in an obligation to the Company, in the
aggregate, in excess of $3,000,000.

    
      
         

      

      
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    9.9.           Actions Requiring
Super-Majority Stockholder Approval.  Consent of the holders of
more than 67% of the outstanding voting shares of the Common Stock shall be
required for any action that (including by way of merger, consolidation,
reclassification, reorganization or other similar event):

     

    (a) increases
or decreases the number of authorized shares of Common Stock or creates or
authorizes any obligation or security convertible into shares of Common
Stock,

     

    (b) liquidates,
dissolves or winds up the business and affairs of the Company or consents to any
of the foregoing,

     

    (c) amends
or waives any provision of the charter, by-laws or articles of the Company in a
manner which adversely affects the holders of the Common Stock,

     

    (d) acquires
any other corporation or entity,

     

    (e) adversely
alters, affects or changes the rights, preferences, privileges, powers, or
interests of, or the restrictions provided for the benefit of, the holders
of  the Common Stock,

     

    (f) creates,
authorizes shares of, or issues shares of any class or series of shares stock
having any right, preference, privilege, power or priority on parity with the
Common Stock,

     

    (g) effects
or authorizes any merger, recapitalization, reorganization, acquisition,
consolidation, liquidation, winding up, or sale of all or substantially all of
the assets of the Company,

     

    (h) makes
any loan or advance to, or own any stock or other securities of, any subsidiary
or other corporation, partnership, or other entity unless it is wholly owned by
the Company;

     

    (i)  makes
any loan or advance to any person, including, any employee or
director,

     

    (j)  guarantees
any indebtedness except for trade accounts of the Company or any subsidiary
arising in the ordinary course of business,

     

    (k) makes
any investment other than investments in prime commercial paper, money market
funds, certificates of deposit in any United States bank having a net worth in
excess of $100,000,000 or obligations issued or guaranteed by the United States
of America, in each case having a maturity not in excess of two years,
or

    
      
         

      

      
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    (l) enters
into or causes the Company to be a party to any transaction with any director,
officer or employee of the Company or any “associate” (as defined in Rule 12b-2
promulgated under the Exchange Act) of any such person or any Affiliate of the
Company.

     

    9.10.        Termination of
Covenants.  The
covenants set forth in this Section 9, shall
terminate and be of no further force or effect upon (a) the consummation of the
IPO, or (b) the Company first becoming subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the Exchange Act, whichever event
shall first occur.

     

    10.           Miscellaneous.

     

    10.1.        Transfers, Successors and
Assigns.  The
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the
parties.  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.

     

    10.2.        Governing
Law.  This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Delaware, without regard to its principles of conflicts of
laws.

     

    10.3.        Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.  This Agreement may also be executed and delivered by
facsimile signature and in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    10.4.        Titles and
Subtitles.  The
titles and subtitles used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

     

    10.5.        Notices.  All
notices and other communications given or made pursuant to this Agreement shall
be in writing and shall be deemed effectively given:  (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5)
days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt.  All communications shall be sent to the
respective parties at their address as set forth on the signature page or Schedule A
hereto, or to such email address, facsimile number or address as subsequently
modified by written notice given in accordance with this Section
10.5.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    If notice
is given to the Company or Acorn Energy, a copy shall also be sent
to:

     

    CoaLogix
Inc.

    11701 Mt.
Holly Road

    Charlotte,
NC 28214

    Attention:
General Counsel

    

    If notice
is given to EnerTech, a copy shall also be sent to:

     

    Dechert
LLP

    Cira
Centre

    2929 Arch
St.

    Philadelphia,
PA 19104-2808

    Fax No.
(215) 994-2222

    Attention:  Ian
A. Hartman, Esq.

    

    10.6.        Amendments and
Waivers.  This
Agreement may be amended or modified and the observance of any term hereof may
be waived (either generally or in a particular instance and either retroactively
or prospectively) only by a written instrument executed by each of the Key
Holders, provided that such consent shall not be required if the Key Holders do
not then own shares representing at least 50% of the outstanding Common
Stock.  Any amendment or waiver so effected shall be binding upon the
Company, the Stockholders and all of their respective successors and permitted
assigns whether or not such party, assignee or other shareholder entered into or
approved such amendment or waiver.  Notwithstanding the foregoing, (a)
this Agreement may not be amended or terminated and the observance of any term
hereunder may not be waived with respect to any Stockholder without the written
consent of such Stockholder unless such amendment, termination or waiver applies
to all Stockholders, respectively, in the same fashion and (b) the consent of
the Key Holders shall not be required for any amendment or waiver if such
amendment or waiver does not apply to the Key Holders.  The Company
shall give prompt written notice of any amendment or termination hereof or
waiver hereunder to any party hereto that did not consent in writing to such
amendment, termination or waiver.  No waivers of or exceptions to any
term, condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any
such term, condition or provision.

     

    10.7.        Severability.  The
invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provision.

     

    10.8.        Additional
Stockholders.  Notwithstanding anything to the contrary
contained herein, if the Company shall issue additional shares of Common Stock
or options under the Stock Option Plan after the date hereof, the Company’s
issuance to any purchaser of such shares of Common Stock or recipient of stock
options shall be contingent on such purchaser or option holder becoming a party
to this Agreement by executing and delivering an additional counterpart
signature page to this Agreement and thereafter such purchaser shall be deemed a
“Stockholder” for all purposes hereunder.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    10.9.        Entire
Agreement.  This
Agreement (including the Exhibits hereto, if any) and the other Transaction
Agreements (as defined in the Purchase Agreement) constitute the full and entire
understanding and agreement between the parties with respect to the subject
matter hereof, and any other written or oral agreement relating to the subject
matter hereof existing between the parties are expressly canceled.

     

    10.10.      Transfers of
Rights.  Each Stockholder
hereto hereby agrees that it will not, and may, not assign any of its rights and
obligations hereunder, unless such rights and obligations are assigned by such
Stockholder to (a) any person or entity to which Registrable Securities are
transferred by such Stockholder, or (b) to any Affiliate of such Stockholder,
and, in each case, such transferee shall be deemed a “Stockholder” for purposes
of this Agreement; provided that such
assignment of rights shall be contingent upon the transferee providing a written
instrument to the Company notifying the Company of such transfer and assignment
and agreeing in writing to be bound by the terms of this Agreement or such
transfer or assignment shall be void.

     

    10.11.      Delays or
Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any party under this Agreement, upon any breach or default
of any other party under this Agreement, shall impair any such right, power or
remedy of such non-breaching or non-defaulting party nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of
or in any similar breach or default thereafter occurring; nor shall any waiver
of any single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring.  Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such
writing.  All remedies, either under this Agreement or by law or
otherwise afforded to any party, shall be cumulative and not
alternative.

     

    10.12.      Effectiveness.  This
Agreement shall be effective as of the date hereof.

     

    10.13.      Legend on Stock
Certificates.  Each certificate representing shares of Common
Stock shall bear a legend substantially in the following form:

     

    “THE
SALE, TRANSFER, ASSIGNMENT, PLEDGE OR ENCUMBRANCE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF AN AMENDED AND
RESTATED STOCKHOLDERS’ AGREEMENT DATED AS OF APRIL 8, 2009 BY AND AMONG THE
ISSUER OF THIS SECURITY AND CERTAIN HOLDERS OF THE STOCK OF SUCH
CORPORATION.  COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY
WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
CORPORATION AT ITS PRINCIPAL EXECUTIVE OFFICE.”

     

    [Remainder
of Page Intentionally Left Blank]

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

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

     

    
      
        
          
            
              
                	 
      	
                        COALOGIX
      INC.:

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ William J. McMahon

                      
	 
      	
                        Name:

                      	
                        William
      J. McMahon

                      
	 
      	
                        Title:

                      	
                        CEO

                      
	 
      	 
      	 
      
	 
      	
                        ACORN
      ENERGY, INC.:

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ John A. Moore

                      
	 
      	
                        Name:

                      	
                        John
      A. Moore

                      
	 
      	
                        Title:

                      	
                        CEO

                      
	 
      	 
      	 
      
	 
      	
                        ENERTECH
      CAPITAL PARTNERS III L.P.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        ECP
      III Management L.P.,

                      
	 
      	 
      	
                        Its
      general partner

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        ECP
      III Management LLC,

                      
	 
      	 
      	
                        Its
      general partner

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ Scott Ungerer

                      
	 
      	
                        Name:

                      	
                        Scott
      Ungerer

                      
	 
      	
                        Title:

                      	
                        CEO

                      

              

            

          

        

      

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    
      	 
      	
              /s/ William J. McMahon

            
	 
      	
              WILLIAM
      J. MCMAHON

            
	 
      	 
      
	 
      	
              /s/ Michael F. Mattes

            
	 
      	
              MICHAEL
      F. MATTES

            
	 
      	 
      
	 
      	
              /s/ Frank Wenz

            
	 
      	
              FRANK
      WENZ

            
	 
      	 
      
	 
      	
              /s/ Michael Cooper

            
	 
      	
              MICHAEL
      COOPER

            
	 
      	 
      
	 
      	
              /s/ Eric B. Dana

            
	 
      	
              ERIC
      B. DANA

            
	 
      	 
      
	 
      	
              /s/ Joe B. Cogdell, Jr.

            
	 
      	
              JOE
      B. COGDELL, JR.

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    SCHEDULE
A

    Stockholders

    

    Acorn
Energy, Inc.

    4 W.
Rockland Road

    P.O. Box
9

    Montchanin,
Delaware 19710

    

    EnerTech
Capital Partners III L.P.

    435 Devon
Park Drive

    700
Building

    Wayne,
PA  19087

    

    Management
Stockholders

    

    William
J. McMahon

    

    Michael
F. Mattes

    

    Eric B.
Dana

    

    Joe B.
Cogdell, Jr.

    
      
         

      

      
        1

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