Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of February 25, 2015, by and among LabStyle
Innovations Corp., a corporation organized under the laws of the State of Delaware (the “Company”), and each
of the several purchasers signatory hereto (each, a “Purchaser” and, collectively, the “Purchasers”).

 

This Agreement is
being entered into pursuant to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser
(the “Purchase Agreement”).

 

The Company and
each Purchaser hereby agrees as follows:

 

1.           Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. In addition to the other capitalized terms used and defined elsewhere herein, as used in
this Agreement, the following terms shall have the following meanings:

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the shares of Common Stock, $0.0001 par value per share of the Company.

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 75th calendar
day following the Closing Date (or, if the Initial Registration Statement is reviewed by the Commission, the 150th calendar
day following Closing Date).

 

"Exchange
Act" means the Securities Exchange Act of 1934 and the rules promulgated thereunder, as amended.

 

“Filing
Date” means the 60th calendar day following the Closing Date.

 

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

 

“Initial
Registration Statement” means the initial Registration Statement covering the Registrable Securities filed pursuant to
this Agreement.

 

“Person”
means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.

 

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

 

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

 

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“Registrable
Securities” means (a) all of the Shares, (b) all of the Warrant Shares, and (c) any securities issued or issuable upon
any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, provided that
“Registrable Securities” shall not include any shares of Common Stock owned by any Purchaser which are then the subject
of an effective Registration Statement or otherwise eligible to be sold without volume limitations pursuant to Rule 144(b).

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2 hereof, including the
Prospectus, amendments and supplements to any such registration statement or Prospectus, including pre- and post-effective amendments,
all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration
statement.

 

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

 

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

 

“SEC Guidance”
means any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff, including the
Commission’s Compliance and Disclosure Interpretations and Manual of Publicly Available Telephone Interpretations.

 

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

 

“Shares”
means the shares of Common Stock sold pursuant to the Purchase Agreement.

 

“Warrants”
means the Series A Warrants and Series B Warrants issued the Purchasers pursuant to the Purchase Agreement.

 

“Warrant
Shares” means the Common Stock issuable upon exercise of the Warrants.

 

2.           Registration

 

(a)          Mandatory
Registration. On or prior to the Filing Date, the Company shall prepare and file with the Commission the Initial Registration
Statement covering the resale of all of the Registrable Securities for a resale offering to be made on a continuous basis. Subject
to the terms of this Agreement, the Company shall use its commercially best efforts to cause a Registration Statement to be declared
effective under the Securities Act as promptly as possible after the filing thereof, but in any event prior to the applicable Effectiveness
Date, and shall use its commercially best efforts to keep such Registration Statement, with respect to each Holder, continuously
effective under the Securities Act until the earlier to occur of (i) the date on which such Holder may sell all Registrable Securities
then held without restriction by volume limitations of Rule 144 promulgated under the Securities Act of 1933 (“Rule 144”),
or (ii) all Registrable Securities covered by such Registration Statement have been sold by such Holder (the “Effectiveness
Period”).

 

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(b)          Registration
Penalties. If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date, or (ii) the Initial Registration
Statement is not declared effective by the Commission on or prior to its required Effectiveness Date (either such failure or breach
being referred to as an “Event,” and the date on which such Event occurs being referred to as “Event
Date”), then in addition to any other rights the Holders may have hereunder or under applicable law: on each such Event
Date, and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and
not as a penalty, equal to one percent (1.0%) of the aggregate investment amount paid by such Holder for Securities pursuant to
the Purchase Agreement, up to a maximum of five percent (5%) of such aggregate investment amount. Liquidated damages payable by
the Company pursuant to this Section 2 shall be payable within ten (10) Business Days of an Event Date and the first (1st)
Trading Day of each thirty (30) day period following an Event Date. The parties agree that the Company shall not be liable for
liquidated damages under this Agreement with respect to any Registrable Securities that the Company was not permitted to include
on such Registration Statement by the Commission as contemplated by Section 2(d) hereof.

 

(c)          Reserved.

 

(d)          In
the event that the Commission does not permit the Company to register in any Registration Statement all of the Registrable Securities,
the Company shall amend such Registration Statement to register such maximum portion as permitted by SEC Guidance, including such
guidance pertaining to Rule 415 (provided that the Company shall use diligent efforts to advocate with the Commission for the registration
of all of the Registrable Securities in accordance with the SEC Guidance that are not then registered on an effective Registration
Statement). Notwithstanding any other provision of this Agreement, if any SEC Guidance sets forth a limitation on the number of
Registrable Securities permitted to be registered on a particular Registration Statement (and notwithstanding that the Company
used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable Securities),
the number of Registrable Securities to be registered on such Registration Statement will be reduced pro-rata among all other Holders,
and the number of Registrable Securities to be registered on such Registration Statement will first be reduced by Registrable Securities
represented by the Warrant Shares (applied, in the case that some Warrant Shares may already be registered, to the Holders on a
pro rata basis based on the total number of unregistered Warrant Shares held by such Holders), and second by Registrable Securities
represented by the Shares (applied, in the case that some Common Stock may already be registered, to the Holders on a pro rata
basis based on the total number of unregistered Shares held by such Holders).

 

(e)          In
connection with any filing of any Registration Statement hereunder, a Holder shall provide to the Company a singed selling stockholder
questionnaire in the form attached hereto as Annex A.

 

3.           Registration
Procedures.

 

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

 

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(a)          Prepare
and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period, (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus
supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii)
respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement
or any amendment thereto, and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act
with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period
in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth
in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

(b)          Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied
by an instruction to suspend the use of the Prospectus (entirely or in a particular jurisdiction, as the case may be) until the
requisite changes have been made) as promptly as reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading
Day prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day
following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement
is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review” of such Registration
Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to a Registration
Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or any other
federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional
information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening
of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included
in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or
any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any
revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading
and (vi) of the occurrence or existence of any pending corporate development with respect to the Company that the Company believes
may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued
availability of a Registration Statement or Prospectus, provided that, any and all of such information shall remain confidential
to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such information confidential, each such Holder makes
no acknowledgement that any such information is material, non-public information.

 

(c)          Use
its commercially best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of
any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(d)          Subject
to the terms of this Agreement, consent to the use of such Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto, except after the giving of any notice pursuant to Section 3(b) until the delivery of the Advice contemplated
by Section 9(b).

 

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(e)          Cooperate
with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting a filing with the FINRA
Corporate Financing Department pursuant to NASD Rule 2710, as requested by any such Holder, and pay the filing fee required by
such filing within two (2) Trading Days of request therefor.

 

(f)          Prior
to any resale of Registrable Securities by a Holder, use its commercially best efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, however, that
the Company shall not be required in connection therewith or as a condition thereto to (1) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(f), (2) subject itself to general taxation in any such
jurisdiction, or (3) file a general consent to service of process in any such jurisdiction.

 

(g)          If
requested by a Holder, cooperate with such Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, and to enable such Registrable Securities
to be in such denominations and registered in such names as any such Holder may request.

 

(h)          Upon
the occurrence of any event contemplated by Section 3(b), as promptly as reasonably possible under the circumstances taking into
account the Company’s good faith assessment of any adverse consequences to the Company and its shareholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the
Holders in accordance with clauses (iii) through (vi) of Section 3(b) above to suspend the use of any Prospectus until the requisite
changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its commercially
best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

		(i)	Comply with all applicable rules and regulations of the Commission.

 

(j)          Require
each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned
by such Holder and the natural persons thereof that have voting and dispositive control over the shares. In the event of the failure
by such Holder to comply with the Company’s request within fifteen (15) days from the date of such request, the Company shall
be permitted to exclude such Holder from a Registration Statement, without being subject to the payment of liquidated damages to
such Holder. At such time that such Holder complies with the Company’s request the Company shall use its commercially best
efforts to include such Holder on the Registration Statement.

 

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(k)          Within
five (5) Trading Days after a Registration Statement which covers the Registrable Securities is ordered effective by the Commission,
deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities confirmation
that such Registration Statement has been declared effective by the Commission.

 

(l)          In
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter(s) of such offering.

 

(m)          Use
its commercially best efforts to cooperate with the sellers in the disposition of the Registrable Securities covered by such registration
statement, including without limitation in the case of an underwritten offering, using commercially best efforts to cause key executives
of the Company and its subsidiaries to participate under the direction of the managing underwriter in a “road show”
scheduled by such managing underwriter in such locations and of such duration as in the judgment of such managing underwriter are
appropriate for such underwritten offering.

 

(n)          In
connection with the preparation and filing of each Registration Statement registering Registrable Securities under the Securities
Act, and before filing any such Registration Statement or any other document in connection therewith, give the participating Holders
of Registrable Securities and their respective counsel, the opportunity to (i) review any such Registration Statement, each prospectus
included therein or filed with the SEC, each amendment thereof or supplement thereto and any other document to be filed, including
the Company's response to SEC comments, and (ii) provide comments to such documents if necessary to cause the description relating
to such Holders to be accurate.

 

4.            Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred
to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the Commission, (B) with respect to filings required to be made with any trading market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in
writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities) and (D) with respect to any filing that may be required to be made by any broker through
which a Holder intends to make sales of Registrable Securities with the FINRA pursuant to FINRA Rule 5110, so long as the broker
is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance,
(vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement and (vii) reasonable fees and disbursements of
a single special counsel for the Holders (selected by Holders of the majority of the Registrable Securities requesting such registration),
up to $15,000 for each registration. In addition, the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries
and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees
and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.
In no event shall the Company be responsible for any broker or similar commissions of any Holder.

 

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5.            Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder,
the officers, directors, members, partners, agents and employees (and any other Persons with a functionally equivalent role of
a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each Person who controls
any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors,
members, stockholders, partners, agents and employees (and any other Persons with a functionally equivalent role of a Person holding
such titles, notwithstanding a lack of such title or any other title) of each such controlling Person, to the fullest extent permitted
by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable
attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any
untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus
or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only
to the extent, that (i) such untrue statements or omissions are based upon information regarding such Holder furnished to the Company
by such Holder for use therein (including the information included on Annex A hereto), or to the extent that such information
relates to such Holder’s proposed method of distribution of Registrable Securities or (ii) the Holder used an outdated or
defective Prospectus which the Company had previously notified such Holder was outdated or defective pursuant to Sections 3(b)(iii)-(vi)
and for which the Company had not yet provided the Advice contemplated in Section 9(b). The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this
Agreement of which the Company is aware.

 

(b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder’s
failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished by such Holder to the Company for inclusion in such Registration
Statement or such Prospectus (including the information included on Annex A) or (ii) to the extent that such information
relates to such Holder’s proposed method of distribution of Registrable Securities set forth in such Prospectus or in any
amendment or supplement thereto or (iii) the use by such Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated
in Section 9(b). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of
the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

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(c)          Conduct
of Indemnification Proceedings.

 

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

 

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

 

(iii)        Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the
Indemnifying Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such
fees and expenses applicable to such actions for which such Indemnified Party is judicially determined not to be entitled to indemnification
hereunder.

 

(d)          Contribution.

 

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

 

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(ii)         The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in
the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute,
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of
all of such Holder’s Registrable Securities pursuant to such Registration Statement or Prospectus exceeds the amount of any
damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission.

 

(e)         Remedies
Not Exclusive. The indemnity and contribution agreements contained in this Section are in addition to any liability that the
Indemnifying Parties may have to the Indemnified Parties.

 

6.          Preconditions
to Participation in Underwritten Registrations. No Holder of Registrable Securities may participate in any underwritten registration
hereunder unless such Holder (i) agrees to enter into a written underwriting agreement with the managing underwriter and containing
such provisions as are customary in the securities business for such an arrangement between such underwriter and companies of the
Company's size and investment stature, and (ii) provides any relevant information and completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements, and other documents required under the terms of such underwriting arrangements,
provided, however, that (i) the representations and warranties by, and the other agreements on the part of, the Company to and
for the benefit of the underwriters shall also be made to and for the benefit of such Holders of Registrable Securities and (ii)
no such Holder shall be required to make, and the Company shall use its commercially best efforts to ensure that no underwriter
requires any Holder to make, any representations and warranties to, or agreements with, any underwriter in a registration effected
pursuant to this Agreement other than customary representations, warranties and agreements relating to such Holder's title to Registrable
Securities and authority to enter into the underwriting agreement.

 

7.          Reserved.

 

8.          Reports
Under the Exchange Act. With a view to making available to the Purchasers the benefits of Rule 144, the Company agrees, so
long as a Purchaser owns Registrable Securities, to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144 for so long as any Holder of Registrable
Securities is an “affiliate” as such term is defined under Rule 144; and

 

(b)          furnish
to any Purchaser promptly upon request: (i) a written statement by the Company, if true or applicable, that it has complied with
the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the Company (it being understood that if such documents
are available via the Commission’s website, such documents need not be provided), and (iii) such other information as may
be reasonably requested to permit the Purchasers to sell such securities pursuant to Rule 144 without registration, it being understood
and agreed that the foregoing shall not constitute an obligation of the Company to remain publicly reporting under the Exchange
Act.

 

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9.           Miscellaneous.

 

(a)          Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

(b)          Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(b)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its commercially best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

(c)          Amendments
and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a
majority in interest of the then outstanding Registrable Securities (including, for this purpose, any Registrable Securities issuable
upon exercise of the Warrants). If a Registration Statement does not register all of the Registrable Securities pursuant to a waiver
or amendment done in compliance with the previous sentence or otherwise, then the number of Registrable Securities to be registered
for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does
not directly or indirectly affect the rights of other Holders may be given by such Holder or Holders of all of the Registrable
Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not
be amended, modified, or supplemented except in accordance with the provisions of the first sentence of this Section 9(c).

 

(d)          Assignment
of Registration Rights. The rights of each Holder hereunder, including the right to have the Company register for resale Registrable
Securities in accordance with the terms of this Agreement, shall be automatically assignable by each Holder to any Person who acquires
all or a portion of the Registrable Securities if such assignment shall be undertaken in accordance with Section 5.7
of the Purchase Agreement. Such rights to assignment and related obligations shall apply to the Holders (and to subsequent) successors
and assigns.

 

(e)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger or similar transaction)
its rights or obligations hereunder without the prior written consent the Holders of a majority of the then outstanding Registrable
Securities. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase
Agreement.

 

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

 

    	10

    	 

    

 

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

 

(h)          Governing
Law; Disputes. All questions concerning the governing law, construction, validity, enforcement and interpretation of and disputes
regarding this Agreement shall be determined in accordance with the provisions of the Purchase Agreement.

 

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

 

(j)           Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

(k)          Independent
Nature of Holders’ Obligations and Rights. The Company acknowledges that the obligations of each Holder under this Agreement
are several and not joint with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance
of the obligations of any other Holder under this Agreement. The Company acknowledges that nothing contained herein, and no action
taken by any Holder pursuant hereto (including, but not limited to, the (i) inclusion of a Holder in the Registration Statement
and (ii) review by, and consent to, such Registration Statement by a Holder) shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. The Company acknowledges
that each Holder shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising
out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding
for such purpose. The Company acknowledges that it has elected to provide all Holders with the same terms for the convenience of
the Company and not because it was required or requested to do so by the Holders. The Company acknowledges that such procedure
with respect to this Agreement in no way creates a presumption that the Holders are in any way acting in concert or as a group
with respect to this Agreement or the transactions contemplated hereby.

 

(Signature Pages Follow)

 

    	11

    	 

    

 

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

 

	 	LABSTYLE INNOVATIONS CORP.
	 	 	 
	 	By:	 
	 	 	
        Name:

	 	 	
        Title:

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	 

    	 

    

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS
AGREEMENT FOR PURCHASERS]

 

Name of Purchaser: __________________________

 

Signature of Authorized Signatory of Purchaser: __________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

[SIGNATURE PAGES CONTINUE]EX-10.4

 Exhibit 10.4 

THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), entered into as of May 10, 2006, amended as of
January 1, 2008, amended and restated as of October 31, 2008, further amended as of March 19, 2010, further amended and restated effective as of January 1, 2012, and further amended and restated effective as of December 16,
2014, by and between Gary Kolstad (the “Executive”), residing at the address currently on file with CARBO Ceramics Inc., a Delaware corporation (the “Company”), and the Company. 

WITNESSETH 
 WHEREAS, the
Company wishes to employ the Executive as President and Chief Executive Officer of the Company and the Executive wishes to serve the Company in such capacity. 

NOW, THEREFORE, in consideration of the conditions and covenants set forth herein, it is agreed as follows: 

1. Employment, Duties and Agreements. 

(a) The Company hereby employs the Executive, and the Executive hereby agrees to be employed by the Company during the Term, as the
Company’s President and Chief Executive Officer on the terms and conditions set forth herein, “Term” shall mean the period commencing on June 1, 2006 (the “Effective Date”) and ending on December 31,
2007; provided, that the Term shall be extended automatically for successive one-year periods, at the rate of Base Salary and on other terms then in effect pursuant to this Agreement, unless written notice of an election not to extend is
given by either party to the other at least ninety (90) days prior to the date the Term would then otherwise expire absent its extension; provided, that the Term may be terminated prior to its scheduled expiration date in accordance with
Section 3 hereof. Upon any expiration of the Term, the Executive’s employment with the Company shall be at will. 
 (b) The
Executive shall have such responsibilities and duties as the Board of Directors of the Company (the “Board”) may from time to time reasonably determine consistent with the Executive’s position as President and Chief Executive
Officer of the Company. In rendering his services hereunder, the Executive shall be subject to, and shall act in accordance with, all reasonable instructions and directions of the Board and all applicable policies and rules thereof. The Executive
shall devote the Executive’s full working time to the performance of the Executive’s responsibilities and duties hereunder. During the Term, the Executive will not, without the prior written consent of the Board, render services, whether
or not compensated, to any other person or entity as an employee, independent contractor, director or otherwise; provided, however, that nothing herein shall restrict the Executive from rendering services to not-for-profit
organizations, including, without limitation, any country club of which he is a member, or managing the Executive’s personal investments during the Executive’s non-working time. 

(c) During the Term, the Executive will not engage in any other business affiliation with respect to any entity, including, without
limitation, the establishment of a proprietorship or the participation in a partnership or joint venture, or acquire any equity interest in any entity (other than the Company) if (i) such engagement or ownership would interfere with the
full-time performance of his responsibilities and duties hereunder or (ii) such entity is engaged in any of the businesses of the Company or its subsidiaries, including without limitation, the production, supply or distribution of proppants
used in the hydraulic fracturing of natural gas and oil wells. The Executive represents and warrants that, as of the Effective Date, the Executive will not be engaged in any such business affiliation and will not own any such equity interests. 

2. Compensation. During the Term, the Executive shall be entitled to the following compensation. 

(a) Effective as of January 1, 2014, the Company shall pay the Executive a base salary at the rate of $800,000 per annum, payable in
accordance with the Company’s normal payroll practices (“Base Salary”). The Board shall have the right to review the Executive’s performance and compensation from time to time and may, in its sole discretion, increase his
Base Salary based on such factors as the Board deems appropriate. 
 (b) (i) Subject to Section 2(b)(ii), the Executive will be
paid an incentive bonus (the “Incentive Bonus”) with respect to the 2015 fiscal year and each fiscal year of the Term thereafter pursuant to the Company’s Annual Incentive Arrangement, as amended from time to time (the
“AIA”); provided, that for purposes of the Executive’s annual bonus under the AIA, “X” (as used in Section 5(a) of the AIA) shall mean (x) 0.5% with respect to the Company’s EBIT (as defined in
the AIA) up to $75,000,000 and (y) 0.9% with respect to the Company’s EBIT in excess of $75,000,000. Any such Incentive Bonus paid pursuant to this Section 2(b)(i) shall be paid to the Executive

 
in accordance with the terms of the AIA; provided, however, that the second proviso in Section 5(a) of the AIA, all of Section 7 of the AIA and all of Section 8 of
the AIA shall each not apply to any Incentive Bonus paid pursuant to this Section 2(b)(i). 
 (ii) With respect to each fiscal year
during the Term that commences following the date on which grants of Awards may no longer be made under the 2014 CARBO Ceramics Inc. Omnibus Incentive Plan, the Executive’s Incentive Bonus with respect to such fiscal year will be equal to the
sum of (i) 0.5% of the Company’s EBIT up to $75,000,000, plus (ii) 0.9% of EBIT in excess of $75,000,000. Any Incentive Bonus paid pursuant to this Section 2(b)(ii) shall be paid to the Executive as soon as practicable and in any
event no later than the earlier of (i) thirty (30) days after the completion of the audited financial statements and determination of EBIT (the “EBIT Determination Date”) for such fiscal year and (ii) two and one half
(2 1/2) months following the end of such fiscal year. 
 (c) The Executive shall be
entitled to four (4) weeks of paid vacation during each calendar year of the Term in accordance with the Company’s standard vacation policy and practices. The Executive shall take vacations only at such times as are consistent with
reasonable business needs of the Company. 
 (d) The Company shall reimburse the Executive for all reasonable, ordinary and necessary
expenses incurred by the Executive in the performance of the Executive’s duties hereunder, provided that the Executive accounts to the Company for such expenses in a manner reasonably prescribed by the Company. 

(e) The Executive shall be entitled to such benefits and perquisites as are generally made available to senior executive officers of the
Company. 
 3. Early Termination of the Term. The Term shall terminate prior to its scheduled expiration date upon the occurrence of
any of the following events. 
 (a) The Term and the Executive’s employment hereunder shall terminate upon written notice to the
Executive by the Company specifying Disability as the basis for such termination. In respect of such termination, the Company shall pay to the Executive (i) within thirty (30) days after such termination, the Executive’s earned but
unpaid Base Salary, earned but unused vacation (determined in accordance with the Company’s standard vacation policy and practices) and reimbursement for expenses incurred (in accordance with Section 2(d) hereof), all as of the date of
such termination (the “Accrued Obligations”), and (ii) as soon as practicable and in any event no later than the earlier of (x) the date on which all other AIA Participants (as defined in the AIA) receive payment of their
AIA Awards (as defined in the AIA) in respect of the fiscal year in which such termination takes place (or the EBIT Determination Date for such fiscal year if Section 2(b)(ii) applies or no such payments are approved to other AIA Participants)
and (y) two and one half (2 1/2) months following the end of such fiscal year, an amount equal to the Incentive Bonus for such fiscal year (calculated in accordance with the first sentence of
Section 2(b)(i) or (ii), as applicable) multiplied by a fraction, the numerator of which is the number of days in the period commencing on January 1 of such fiscal year and ending on the date of such termination (inclusive) and the
denominator of which is 365 (the “Termination Bonus Amount”). The Executive shall not be entitled to any further compensation or payments under this Agreement. “Disability” shall mean a physical or mental impairment
of the Executive that (A) qualifies the Executive for (x) disability benefits under any long-term disability plan maintained by the Company or (y) Social Security disability benefits or (B) has prevented or, at the date of
determination, will reasonably be likely to prevent, the Executive from performing the essential functions of his position for a period of six (6) consecutive months. The existence of a Disability shall be determined by the Board in its
absolute discretion. The Executive agrees to submit to medical examinations by a licensed medical doctor selected by the Board to determine whether a Disability exists, as the Board may request from time to time. 

(b) The Company may terminate the Term and the Executive’s employment hereunder for Cause. Termination for Cause shall be effective upon
written notice to the Executive by the Company specifying that such termination is for Cause. In respect of such termination, the Company shall pay to the Executive, within thirty (30) days after such termination, the Accrued Obligations. The
Executive shall not be entitled to any further compensation or payments under this Agreement. “Cause” shall mean: (i) any material violation by the Executive of this Agreement; (ii) any failure by the Executive
substantially to perform his duties hereunder; (iii) any act or omission involving dishonesty, fraud, willful misconduct or gross negligence on the part of the Executive that is or may be materially injurious to the Company; and (iv) any
felony or other crime involving moral turpitude committed by the Executive. If the basis for terminating the Executive’s employment for Cause is the result of a violation or failure described in clause (i) or (ii) of the foregoing
definition of “Cause” and the majority of the Board (excluding the Executive, if he is a member 

  
 2 

 
of the Board) reasonably determines that such violation or failure is capable of being remedied, the Board shall give the Executive thirty (30) days’ prior written notice of the
Company’s intent to terminate the Executive’s employment for Cause, which notice shall set forth the violation or failure forming the basis for the determination to terminate the Executive’s employment for Cause. The Executive shall
have the right to remedy such violation or failure within a reasonable period of time (as determined by the Board), provided that the Executive begins to take appropriate steps to remedy such violation or failure within ten (10) days of
the date of such written notice and diligently prosecutes such efforts thereafter. The Term and the Executive’s employment hereunder may not be terminated for Cause unless a majority of the Board (excluding the Executive, if he is a member of
the Board) finds in good faith that termination for Cause is justified and, if the basis for terminating the Executive’s employment for Cause arises as a result of a violation or failure described in clause (i) or (ii) of the
definition of “Cause”, that the violation or failure has not been remedied within the period of time designated by the Board or that there is no reasonable prospect that the Executive will remedy the violation or failure forming the basis
for terminating his employment for Cause. 
 (c) The Term and the Executive’s employment hereunder shall terminate upon the death of
the Executive. In respect of such termination, the Company shall pay to the Executive’s estate or any beneficiary previously designated by the Executive in writing (a “Designated Beneficiary”) (i) within thirty
(30) days after such termination, the Accrued Obligations, and (ii) as soon as practicable and in any event no later than the earlier of (x) the date on which all other AIA Participants receive payment of their AIA Awards in respect
of the fiscal year in which such termination takes place (or the EBIT Determination Date for such fiscal year if Section 2(b)(ii) applies or no such payments are approved to other AIA Participants) and (y) two and one half (2 1/2) months following the end of such fiscal year, an amount equal to the Termination Bonus Amount for such fiscal year. The Executive, his estate and his Designated Beneficiary shall not be entitled
to any further compensation or payments under this Agreement. 
 (d) The Company may terminate the Term and the Executive’s employment
hereunder at any time without Cause. Such termination without Cause shall be communicated by written notice to the Executive from the Company and shall be effective as of the date on which the Executive experiences a “separation from
service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations (as amended) promulgated under the United States Internal Revenue Code of 1986 (as amended) (“Separation from Service”). In respect of such
termination, the Company shall pay to the Executive (i) within thirty (30) days after such Separation from Service, the Accrued Obligations, and (ii) as soon as practicable and in any event no later than the earlier of (x) the
date on which all other AIA Participants receive payment of their AIA Awards in respect of the fiscal year in which such Separation from Service takes place (or the EBIT Determination Date for such fiscal year if Section 2(b)(ii) applies or no
such payments are approved to other AIA Participants) and (y) two and one half (2 1/2) months following the end of such fiscal year, an amount equal to the Termination Bonus Amount for such
fiscal year. In addition, in consideration for the Executive’s execution, within seventy-five (75) days following the Executive’s Separation from Service, of a general release of claims in form and substance satisfactory to the
Company, the Company shall pay to the Executive (or to the Executive’s estate or Designated Beneficiary, if the Executive should die during the payout period described in this sentence) an amount equal to two times (2x) the
Executive’s Base Salary (at the level in effect immediately preceding such Separation from Service) (the “Severance Payment”) as follows: (A) on the seventy-fifth
(75th) day following the Separation from Service, a lump sum equal to the lesser of (I) the Severance Payment or (II) the amount described in Section 1.409A-1(b)(9)(iii)(A) of the
Treasury Regulations (as amended) promulgated under the United States Internal Revenue Code of 1986 (as amended) for the year in which the Separation from Service occurs and (B) the remainder of the Severance Payment (if any) in equal
installments, in accordance with the Company’s normal payroll practices, over the eighteen (18)-month period commencing on the earlier to occur of (I) the six (6)-month anniversary of the date of the Executive’s Separation from
Service or (II) the Executive’s death. The Executive (or his estate or Designated Beneficiary) shall not be entitled to any further compensation or payments under this Agreement. In no event shall any portion of the Severance Payment be paid
later than December 31 of the second year following the year in which the Separation from Service occurs. The Severance Payment will not constitute compensation for any purpose under any retirement plan or other employee benefit plan, program,
arrangement or agreement of the Company, and no period during which the Severance Payment is being paid shall constitute a period of employment with the Company for any such purposes. 

(e) During the one-year period following a Change in Control of the Company, the Company may terminate the Term and the Executive’s
employment hereunder without Cause or the Executive may voluntarily terminate the Term and his employment hereunder for Good Reason. If such termination is made by the Company without Cause, 

  
 3 

 
it shall be communicated by written notice to the Executive from the Company and shall be effective upon the Executive’s Separation from Service. In respect of any such termination, in lieu
of all other amounts or benefits to which the Executive would otherwise be entitled pursuant to any other provisions of Section 3 of this Agreement, the Company shall pay to the Executive (or to the Executive’s estate or Designated
Beneficiary, if the Executive should die during the payout period described in this sentence) (i) within thirty (30) days after such Separation from Service, the Accrued Obligations and (ii) an amount equal to the sum of (A) the
Incentive Bonus with respect to the fiscal year immediately preceding the fiscal year in which such Separation from Service takes place (calculated in accordance with the first sentence of Section 2(b)(i) or (ii), as applicable) multiplied by a
fraction, the numerator of which is the number of days in the period commencing on January 1 of the fiscal year in which such Separation from Service takes place and ending on the date of such Separation from Service (inclusive) and the
denominator of which is 365 and (B) two times (2x) the Executive’s Base Salary (at the level in effect immediately preceding such Separation from Service) (together, the “CiC Severance Payment”) as follows:
(A) within two and one half (2  1⁄2) months following the Separation from Service, a lump sum equal to the lesser of (I) the CiC Severance Payment or
(II) the amount described in Section 1.409A-1(b)(9)(iii)(A) of the Treasury Regulations (as amended) promulgated under the United States Internal Revenue Code of 1986 (as amended) for the year in which the Separation from Service occurs and
(B) the remainder of the CiC Severance Payment (if any) in equal installments, in accordance with the Company’s normal payroll practices, over the eighteen (18)-month period commencing on the earlier to occur of (I) the six (6)-month
anniversary of the date of the Executive’s Separation from Service or (II) the Executive’s death. The Executive (or his estate or Designated Beneficiary) shall not be entitled to any further compensation or payments under this Agreement.
In no event shall any portion of the CiC Severance Payment be paid later than December 31 of the second year following the year in which the Separation from Service occurs. The CiC Severance Payment will not constitute compensation for any
purpose under any retirement plan or other employee benefit plan, program, arrangement or agreement of the Company, and no period during which the CiC Severance Payment is being paid shall constitute a period of employment with the Company for any
such purposes. 
 (f) For purposes of Section 3(e) hereof: 

(1) “Change in Control” shall mean (i) the occurrence of a change in control of the Company of a nature
that would be required to be reported or is reported in response to Item 5.01 of the current report on Form 8-K, as in effect on the Effective Date, pursuant to Sections 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”); or (ii) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s outstanding securities (other than any Person who was a “beneficial owner” of securities of the Company
representing 30% or more of the combined voting power of the Company’s outstanding securities prior to the Effective Date); or (iii) individuals who constitute the Board on the Effective Date (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the members of the Board, provided that any person becoming a director subsequent to the Effective Date whose appointment to fill a vacancy or to fill a new Board position was approved by a
vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company’s shareholders was approved by the same nominating committee serving under an Incumbent Board, shall be, for
purposes of this clause (iii), considered as though he were a member of the Incumbent Board; or (iv) the occurrence of any of the following of which the Incumbent Board does not approve (A) merger or consolidation in which the Company is
not the surviving corporation or (B) sale of all or substantially all of the assets of the Company; or (v) stockholder approval pursuant to a proxy statement soliciting proxies from stockholders of the Company, by someone other than the
then current management of the Company, of a plan of reorganization, merger or consolidation of the Company with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan of
reorganization are exchanged or converted into cash or property or securities not issued by the Company. 
 (2) “Good
Reason” shall mean, without the Executive’s express written consent, the occurrence of any one or more of the following: (i) the assignment of the Executive to duties materially inconsistent with the Executive’s authorities,
duties, responsibilities and status (including offices, titles, and reporting requirements) as an officer of the Company, or other changes in the Executive’s authorities, duties or responsibilities, if such assignment or changes result in a
material diminution in the Executive’s authorities, duties, or responsibilities from those in effect immediately prior to the Change in Control, including a failure to reelect the Executive to, or a removal of him from, any office of the
Company that the Executive held immediately prior to the Change in Control; or (ii) the Company’s requiring the Executive to be based at a location more than 50 miles from Houston, Texas 

  
 4 

 
(except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business obligations immediately prior to the Change in Control) if such
action constitutes a material change in the geographic location where the Executive must perform services; or (iii) the Company materially breaches this Agreement or any other written agreement with the Executive under which the Executive
provides services to the Company; or (iv) a material reduction in the Executive’s base compensation as of the date of the Change in Control; provided, in each case, that within thirty (30) days following the occurrence of any of the
events set forth herein, the Executive shall have delivered written notice to the Company of his intention to terminate his employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to the
Executive’s right to terminate employment for Good Reason, the Company shall not have cured such circumstances within thirty (30) days following the Company’s receipt of such notice, and the Executive’s Separation from Service
with the Company shall have occurred within sixty (60) days following such failure to cure. 
 4. Restrictive Covenants. 

(a) The Executive agrees that all information pertaining to the prior, current or contemplated business of the Company and its corporate
affiliates, and their officers, directors, employees, agents, shareholders and customers (excluding (i) publicly available information (in substantially the form in which it is publicly available) unless such information is publicly available
by reason of unauthorized disclosure by the Executive or by any person or entity of whose intention to make such unauthorized disclosure the Executive is aware and (ii) information of a general nature not pertaining exclusively to the Company
that generally would be acquired in similar employment with another company) constitutes a valuable and confidential asset of the Company. Such information includes, without limitation, information related to trade secrets, customer lists,
production techniques, and financial information of the Company. In connection with the performance and execution of his duties, the Company shall make such information available to the Executive during the Term and the Executive agrees that he
shall, during the Term and continuing thereafter, (A) hold all such information in trust and confidence for the Company and its corporate affiliates, and (B) not use or disclose any such information to any person, firm, corporation or
other entity other than under court order or other legal or regulatory requirement. 
 (b) To protect the confidential information described
in Section 4(a), upon expiration of the Term and continuing for a period ending two (2) years after the Executive’s employment by the Company terminates for any reason whatsoever, the Executive agrees that the Executive will not,
directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity,
in whatever form, engaged in a Competing Business. For the purposes of this Agreement, a “Competing Business” is defined as any business that provides the same or similar products or services as the Company or its subsidiaries,
including without limitation any business which engages in the production or supply of ceramic, resin-coated sand or other proppants for use in the hydraulic fracturing of natural gas and oil wells, or for foundry or grinding media purposes. 

(c) During the Term and continuing for a period ending twelve (12) months after the Executive’s employment by the Company terminates
for any reason whatsoever, the Executive agrees that the Executive will not, directly or indirectly, individually or on behalf of other persons, solicit, aid or induce (i) then remaining employees of the Company or its corporate affiliates to
leave their employment with the Company or its corporate affiliates in order to accept employment with or render services to or with another person, firm, corporation or other entity, or assist or aid any other person, firm, corporation or other
entity in identifying or hiring such employees or (ii) any customer of the Company or its corporate affiliates who was a customer of the Company or its corporate affiliates at any time during which the Executive was actively employed by the
Company to purchase products or services then sold by the Company or its corporate affiliates from another person, firm, corporation or other entity, or assist or aid any other person or entity in identifying or soliciting any such customer. 

(d) Prior to agreeing to, or commencing to, act as an employee, officer, director, trustee, principal, agent or other representative of any
type of business other than as an employee of the Company during the period in which the non-competition agreement, as described in Section 4(b), applies, the Executive shall (i) disclose such agreement in writing to the Company and
(ii) disclose to the other entity with which he proposes to act in such capacity, or to the other principal together with whom he proposes to act as a principal, the existence of this Agreement, including, in particular, the non-disclosure
agreement contained in Section 4(a), the non-competition agreement contained in Section 4(b), and the non-solicitation agreement contained in Section 4(c). 

  
 5 

 (e) With respect to the restrictive covenants set forth in Sections 4(a), 4(b) and 4(c), the
Executive acknowledges and agrees as follows. 
 (i) The specified duration of a restrictive covenant shall be extended by
and for the term of any period during which the Executive is in violation of such covenant. 
 (ii) The restrictive covenants
are in addition to any rights the Company may have in law or at equity. 
 (iii) It is impossible to measure in money the
damages which will accrue to the Company in the event that the Executive breaches any of the restrictive covenants. Therefore, if the Executive breaches any restrictive covenant, the Company and its corporate affiliates shall be entitled to an
injunction restraining the Executive from violating such restrictive covenants. If the Company or any of its corporate affiliates shall institute any action or proceeding to enforce a restrictive covenant, the Executive hereby waives the claim or
defense that the Company or any of its corporate affiliates has an adequate remedy at law and the Executive agrees not to assert in any such action or proceeding the claim or defense that the Company or any of its corporate affiliates has an
adequate remedy at law. The foregoing shall not prejudice the Company’s or its corporate affiliates’ right to require the Executive to account for and pay over to the Company or its corporate affiliates, and the Executive hereby agrees to
account for and pay over, the compensation, profits, monies, accruals or other benefits derived or received by the Executive as a result of any transaction constituting a breach of the restrictive covenants. 

(f) The restrictions in this Section 4 shall be in addition to any restrictions imposed on the Executive by statute or at common law.

 5. Arbitration of Disputes. 

(a) Any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or the interpretation or validity hereof
shall be settled exclusively and finally by arbitration. It is specifically understood and agreed that any disagreement, dispute or controversy which cannot be resolved between the parties, including without limitation any matter relating to
interpretation of this Agreement, may be submitted to arbitration irrespective of the magnitude thereof, the amount in controversy or whether such disagreement, dispute or controversy would otherwise be considered justiciable or ripe for resolution
by a court or arbitral tribunal. Notwithstanding this Section 5, the Company shall be entitled to institute a court action or proceeding for injunctive relief as provided in Section 4 of this Agreement. 

(b) The arbitration shall be conducted in accordance with the Commercial Arbitration Rules (the “Arbitration Rules”) of the
American Arbitration Association (“AAA”). 
 (c) The arbitral tribunal shall consist of one arbitrator. The parties to the
arbitration jointly shall directly appoint such arbitrator within thirty (30) days of initiation of the arbitration. If the parties shall fail to appoint such arbitrator as provided above, such arbitrator shall be appointed by the AAA as
provided in the Arbitration Rules and shall be a person who (i) maintains his principal place of business within thirty (30) miles of the City of Houston, Texas and (ii) has substantial experience in executive compensation. The
parties shall each pay an equal portion of the fees, if any, and expenses of such arbitrator. 
 (d) The arbitration shall be conducted
within thirty (30) miles of the City of Houston, Texas or in such other city in the United States of America as the parties to the dispute may designate by mutual written consent. 

(e) At any oral hearing of evidence in connection with the arbitration, each party thereto or its legal counsel shall have the right to
examine its witnesses and to cross-examine the witnesses of any opposing party. No evidence of any witness shall be presented unless the opposing party or parties shall have the opportunity to cross-examine such witness, except as the parties to the
dispute otherwise agree in writing or except under extraordinary circumstances where the interests of justice require a different procedure. 

(f) Any decision or award of the arbitral tribunal shall be final and binding upon the parties to the arbitration proceeding. The parties
hereto hereby waive to the extent permitted by law any rights to appeal or to seek review of such award by any court or tribunal. 
 (g)
Nothing herein contained shall be deemed to give the arbitral tribunal any authority, power, or right to alter, change, amend, modify, add to or subtract from any of the provisions of this Agreement. 

  
 6 

 (h) Notwithstanding anything to the contrary in this Agreement, the arbitration provisions set
forth in this Section 5 shall be governed exclusively by the Federal Arbitration Act, Title 9, United States Code. 
 6.
Miscellaneous.  
 (a) Each provision hereof is severable from this Agreement, and if one or more provisions hereof are declared
invalid the remaining provisions shall nevertheless remain in full force and effect. If any provision of this Agreement is so broad, in scope or duration or otherwise, as to be unenforceable, such provision shall be interpreted to be only so broad
as is enforceable. 
 (b) Any notice to be given hereunder shall be given in writing. Notice shall be deemed to be given when delivered by
hand to the party to whom notice is being given, or ten (10) days after being mailed, postage prepaid, registered with return receipt requested, or sent by facsimile transmission with a confirmation by registered or certified mail, postage
prepaid. Notices to the Executive should be addressed to the Executive as follows: 
 Gary Kolstad 

c/o CARBO Ceramics Inc. 
 575
North Dairy Ashford 
 Suite 300 

Houston, Texas 77079 
 Notices to the Company
should be sent as follows: 
 CARBO Ceramics Inc. 

575 North Dairy Ashford 

Suite 300 
 Houston, Texas
77079 
 Attn: Secretary 
 with copies sent to:

 Cleary Gottlieb Steen & Hamilton LLP 

One Liberty Plaza 
 New York, NY
10006 
 Attn: Christopher Austin, Esq. 

Either party may change the address or person to whom notices should be sent to by notifying the other party in accordance with this
Section 6(b). 
 (c) The failure to enforce at any time any of the provisions of this Agreement or to require at any time performance
by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity of this Agreement, or any part hereof, or the right of either party thereafter to enforce each and every such
provision in accordance with the terms of this Agreement. 
 (d) This Agreement contains the entire agreement between the parties with
respect to the employment of the Executive by the Company after the Effective Date and supersedes any and all prior understandings, agreements or correspondence between the parties regarding such employment. It may not be amended or extended in any
respect except by a writing signed by both parties hereto. 
 (e) The parties hereto acknowledge and agree that each party has reviewed and
negotiated the terms and provisions of this Agreement and has contributed to its preparation (with advice of counsel, if desired). Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not
be employed in the interpretation of this Agreement. Rather, the terms of this Agreement shall be construed fairly as to both parties hereto and not in favor of or against either party, regardless of which party generally was responsible for the
preparation of this Agreement. 
 (f) This Agreement shall be governed by, and interpreted in accordance with, the laws of Texas, without
reference to its principles of conflict of laws. 
 (g) This Agreement shall not be assignable by either party hereto without the written
consent of the other, provided, however, that the Company may, without the written consent of the Executive, assign this Agreement to (i) any entity with which the Company is merged or consolidated or to which the Company
transfers substantially all of its assets or (ii) any entity controlling, under common control with or controlled by the Company. 

  
 7 

 (h) This Agreement may be executed in several counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument. 
 (i) The headings in this Agreement are inserted for convenience
of reference only and shall not be a part of or control or affect the meaning of any provision hereof. 
 [Remainder of page intentionally
left blank] 

  
 8 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
representative and the Executive has hereunto set his hand as of the day and year above written. 
  

			
			CARBO CERAMICS INC.
		
	By:		  /s/ William C. Morris

			William C. Morris, Chairman
			Date: 12-23-2014
		
			  /s/ Gary A. Kolstad

			Gary Kolstad
			Date: 12-16-2014

  
 9

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