Document:

Exhibit 10.12

 

STOCK GRANT AGREEMENT

 

STOCK GRANT AGREEMENT,
dated as of December 22, 2017 (the “Agreement”),
among FC Global Realty Incorporated, a Nevada corporation formerly known as Photomedex, Inc. (the “Company”),
and Dr. Dolev Rafaeli, Dennis M. McGrath and Yoav Ben-Dror (each a “Note Holder,” and collectively, the “Note
Holders”). The Company and the Note Holders are sometimes individually referred to in this Agreement as a “Party”
and, collectively, as the “Parties.” Capitalized terms used, but not otherwise defined, in this Agreement have
the meanings ascribed to them in the Contribution Agreement (as defined below).

 

RECITALS

 

A.            On
March 31, 2017, the Company, First Capital Real Estate Operating Partnership, L.P., First Capital Real Estate Trust Incorporated
and FC Global Realty Operating Partnership LLC entered into an Interest Contribution Agreement (the “Contribution Agreement”).

 

B.            On
October 12, 2017, pursuant to the Contribution Agreement, the Company issued to the Note Holders the Payout Notes in consideration
for all outstanding compensation liabilities owed to the Note Holders by the Company.

 

C.            The
Company and Opportunity Fund I-SS, LLC (the “Fund”) are entering into a Securities Purchase Agreement on or
about the date hereof (the “Series B Purchase Agreement”), pursuant to which the Fund will acquire $1.5 million
of the Company’s newly designated Series B Preferred Stock (the “Series B Financing”) at the initial closing
that is expected to occur on or about the date hereof.

 

D.            Concurrent
with the Series B Financing, the Company and the Note Holders are entering into this agreement to (1) cause the early conversion
of the Payout Notes into 5,628,291 shares of the Company’s Common Stock (the “Payout Shares”), (2) effectuate
the release of all security interests associated with the Payout Notes, (3) obtain the agreement of the Note Holders to provide
certain support services to the Company, (4) obtain the conditional resignation of certain of the Note Holders from the Board of
Directors of the Company, (5) provide for the issuance of 1,857,336 additional shares of Common Stock to the Note Holders as consideration
for the various agreements of the Note Holders contained in this Agreement (the “Additional Shares”), (6) provide
for Cash Payments (as defined below) to the Note Holders in amounts equal to the interest payments that would have been made to
the Note Holders absent the conversion of the Payout Notes, (7) provide for certain registration rights to the Note Holders, (8)
require certain security holders of the Company to provide Shareholder Approval as described below, and (9) provide for certain
other representations, warranties, covenants and agreements as specified in this Agreement.

 

     

     

    

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual conditions and covenants contained in this Agreement, and for other good and valuable consideration,
the sufficiency and receipt of which is hereby acknowledged, it is hereby stipulated, consented to, and agreed by and among the
Parties as follows:

 

1.             Conversion
of Payout Notes. On the Closing Date (as defined below), the Company and the Note Holders agree to accomplish the following:

 

(a)           The Payout Notes shall be converted into the Payout Shares and the Company shall issue to each of the Note Holders the number of
Payout Shares specified opposite each such Note Holder’s name on Appendix A to this Agreement in conversion of, and
in full satisfaction of, all the obligations of the Company under the Payout Notes.

 

(b)           Each
Note Holder agrees that upon receipt of their Payout Shares all obligations under their Payout Note will be satisfied and discharged
in full and any liens or security interests in any of the Company’s assets as security for the Company’s obligations
under such Payout Notes shall be terminated and released without further action by or on behalf of the Note Holders. Each of the
Note Holders hereby authorize the Company, after issuance to the Payout Shares to each of the Note Holders, to take any action
as may be necessary to effectuate a release of such security interests including filing UCC-3 termination statements in the appropriate
jurisdictions. For the avoidance of doubt, upon issuance of the Payout Shares to the Note Holders, that certain Security Agreement,
dated October 12, 2017, among the Company and the Note Holders shall automatically be terminated and of no further force and effect
with all obligations of the parties thereunder released.

 

2.             Requirement
to Make Cash Payments. The Company shall make the cash payments to the Note Holders (the “Cash Payments”)
in the amounts and on the dates specified in Appendix B to this Agreement in consideration of the services to be provided
by such individuals under Section 4 (the “Services”). The Cash Payments will be paid through the Company’s
customary payroll system in accordance with its payroll policy and the Note Holders shall be eligible to participate in the Company’s
health plan during the period that they provide the Services. The Note Holders agree that the Company may, at its option, prepay
the Cash Payments at any time without any penalty or premium. Notwithstanding the foregoing, if the Company instructs the Note
Holders to cease providing the Services or otherwise attempts or does terminate the Note Holders as Service providers for any reason,
such cessation of Services or termination will not affect the Company’s obligation to make the Cash Payments.

 

3.             Issuance
of Additional Shares; Shareholder Approval.

 

(a)           Promptly,
and, in any event, within ten (10) days after obtaining Shareholder Approval (as defined below), the Company shall issue to each
Note Holder the number of Additional Shares set forth opposite such Note Holder’s name on Appendix A to this Agreement.

 

(b)           The
rules and regulations of The Nasdaq Stock Market require approval from the Company’s stockholders prior to the issuance of
the Additional Shares that are in excess of 19.99% of the Company’s issued and outstanding Common Stock on the date of this
Agreement. Therefore, as promptly as possible following the Closing Date, the Company shall prepare and file with the Securities
and Exchange Commission a proxy statement and take all actions necessary under Nevada law and the listing rules of The Nasdaq Stock
Market to hold a special meeting of its stockholders to authorize and approve the issuance of the Additional Shares to the Note
Holders (the “Shareholder Approval”).

 

    - 2 - 

     

    

 

4.             Provision
of Support Services.

 

(a)           During
the period from the Closing Date and ending on the later of (i) the effective date of the resignations provided for in Section
5 below (the “Resignation Effective Date”), or (ii) December 31, 2018, the Note Holders shall provide the Company
with the following Services:

 

(i)           Dennis
M. McGrath shall provide assistance and support to the Company’s
Chief Financial Officer, General Counsel and auditors in connection with annual audit and quarterly filings as they relate to historical
information and background during the period that Mr. McGrath was an officer of the Company and he will also provide assistance
and support in connection with all SEC, Sarbanes-Oxley and tax compliance matters, as well as vendor and litigation support, particularly
as it relates to prior merger and acquisition transactions involving the Company.

 

(ii)          Dr.
Dolev Rafaeli shall provide assistance and support with regard to litigation, litigation-related and other third-party claim matters
arising during the period when Dr. Rafaeli was an officer of the Company or that occur after such period but relate to facts and
circumstances occurring during such period, including, without limitation, support in handling No!No! product liability claims
and potential litigation involving HSN. Dr. Rafaeli will also provide assistance and support in connection with any tax audits
or tax compliance matters involving periods during which Dr. Rafaeli was an officer of the Company.

 

(iii)         Yoav
Ben-Dror shall provide assistance and support with respect to the winding down of the operations of the Company’s international
subsidiaries and certain domestic subsidiaries to the extent that Mr. Ben-Dror has information regarding those domestic subsidiaries.

 

(b)           The
Company and the Note Holders shall mutually agree upon what portion of the Cash Payments shall be deemed to be compensation for
the aforementioned services and shall treat such portion of the Cash Payments as compensation for the services described above.
Dr. Dolev Rafaeli and Dennis M. McGrath will continue to receive the employee benefits that they are currently receiving, including
existing health and disability benefits, so long as they continue to provide the services described above. Once Dr. Dolev Rafaeli
and Dennis M. McGrath no longer provide such services, they will receive COBRA coverage in accordance with, and as further described
in, Section 6.20 of the Contribution Agreement to be fully paid for or reimbursed to Mesrs. Rafaeli and McGrath by the Company.

 

5.             Resignations
of Dr. Dolev Rafaeli and Dennis McGrath. Dr. Dolev Rafaeli and Dennis McGrath hereby resign from the Board of Directors of
the Company effective upon the last to occur of (a) receipt of all of the Payout Shares and all of the Additional Shares, (b) receipt
of all of the Cash Payments (either in accordance with the schedule provided in Appendix B or, at the Company’s option,
in one lump sum on an accelerated basis), and (c) the date that the Payout Shares and the Additional Shares have been registered
for re-sale in accordance with the Registration Rights Agreement (as defined below). Dr. Dolev Rafaeli and Dennis McGrath hereby
represent and warrant to the Company that their resignation is not the result of any disagreement that either of them have with
the Company or the Board of Directors regarding the Company’s financial or accounting policies or operations.

 

    - 3 - 

     

    

 

6.             Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on or about
the date of this Agreement and concurrently with the closing of the transactions contemplated by the Series B Purchase Agreement
(the “Series B Closing”) and this Agreement shall have no force or effect unless and until Series B Closing
has occurred. The Closing is further conditioned upon the following:

 

(a)           The
Company and the Note Holders shall have entered into a Registration Rights Agreement in the form of Exhibit A to this Agreement
(the “Registration Rights Agreement”).

 

(b)           The
Company shall have entered into a shareholder voting support and confidentiality agreement in the form of Exhibit B with
the security holders of the Company identified in such form of agreement.

 

7.             Representations
of Note Holders. Each Note Holder hereby represents and warrants to the Company that such Note Holder owns the Payout Note
in the principal amount specified opposite his name on Appendix A beneficially and of record, free and clear of all claims,
charges, liens, contracts, rights, options, security interests, mortgages, encumbrances and restrictions of every kind and nature.
No Note Holder has never transferred or agreed to transfer their Payout Notes or otherwise dispose of their Payout Note, other
than pursuant to this Agreement. There is no restriction affecting the ability of any Note Holder to transfer the legal and beneficial
title and ownership of the Payout Notes to the Company for cancellation upon conversion thereof in accordance with this Agreement.
Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the performance
of this Agreement in compliance with its terms and conditions by any Note Holder will conflict with or result in any violation
of any agreement, judgment, decree, order, statute or regulation applicable to such Note Holder, or any breach of any agreement
to which such Note Holder is a party, or constitute a default thereunder, or result in the creation of any claim of any kind or
nature on, or with respect to such Note Holder or such Note Holder’s assets, including, without limitation, such Note Holder’s
Payout Note.

 

8.             Non-Disparagement.
Each Party agrees with each other Party hereto, not to disparage any Party hereto and further agrees to take no action which is
intended, or would reasonably be expected, to harm the reputation of any Party hereto or which would reasonably be expected to
lead to unwanted or unfavorable publicity for any Party hereto; provided, that this provision shall not apply with respect to any
case or controversy among the parties in contemplation or in connection with any litigation, arbitration or mediation.

 

9.             Further
Assurances. At the request of the Company and without further consideration, the Note Holders will execute and deliver such
other instruments of conversion, transfer, conveyance, assignment and confirmation as may be reasonably requested in order to effectively
convert, transfer, convey and assign to the Company for conversion, the Payout Notes and to release any security interest in the
Company’s assets that constitutes collateral for the Company’s obligations under the Payout Notes.

 

    - 4 - 

     

    

 

10.           Fees
and Expenses. Each party shall be responsible for his or its own attorneys’ fees and costs in connection with the drafting
and negotiation of this Agreement and the consummation of the transactions contemplated hereby.

 

11.           Reliance.
The Parties acknowledge and represent that: (a) they have read the Agreement; (b) they clearly understand the Agreement and each
of its terms; (c) they fully and unconditionally consent to the terms of this Agreement; (d) they have had the benefit and advice
of counsel of their own selection; (e) they have executed this Agreement, freely, with knowledge, and without influence or duress;
(f) they have not relied upon any other representations, either written or oral, express or implied, made to them by any person;
and (g) the consideration received by them has been actual and adequate.

 

12.           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via (i) facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile number
specified in this Section or (ii) electronic mail (i.e., Email) prior to 6:30 p.m. (Eastern) on a business day, (b) the next business
day after the date of transmission, if such notice or communication is delivered via (i) facsimile at the facsimile number specified
in this Section or (ii) electronic mail (i.e., Email) on a day that is not a business day or later than 6:30 p.m. (Eastern) on
any business day, or (c) the business day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (d) upon actual receipt by the Party to whom such notice is required to be given, if sent by any means other than facsimile
or Email transmission. The address for such notices and communications shall be as follows.

 

	If to the Company:	410 Park Ave
	 	New York, NY 10022
	 	Attention: Suneet Singal
	 	Email: ssingal@photomedex.com; copy to
	 	mpupach@photomedex.com
	 	 
	With a copy to:	BEVILACQUA PLLC
	 	1050 Connecticut Ave., NW, Suite 500
	 	Washington, DC 20036
	 	Attention: Louis A. Bevilacqua, Esq.
	 	Email: lou@bevilacquapllc.com
	 	 
	If to the Note Holders:	Dolev Rafaeli
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	Dennis M. McGrath
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	Yoav Ben-Dror
	 	 	 
	 	 	 
	 	 	 

 

    - 5 - 

     

    

 

or such other address
as may be designated in writing hereafter, in the same manner, by such Person.

 

13.           Entire
Agreement. This Agreement and the exhibits and appendices hereto and other agreements referred to herein contain the entire
agreement and understanding concerning the subject matter hereof between the parties and supersedes and replaces all prior negotiations,
proposed agreement and agreements, written or oral. Each of the parties hereto acknowledges that none of the parties hereto, agents
or counsel of any party, has made any promise, representation or warranty whatsoever, express or implied, not contained herein
concerning the subject hereto, to induce it to execute this Agreement and acknowledges and warrants that it is not executing this
Agreement in reliance on any promise, representation or warranty not contained herein.

 

14.           Amendments.
This Agreement may not be modified or amended in any manner except by an instrument in writing specifically stating that it is
a supplement, modification or amendment to the Agreement and signed by each of the Parties hereto against whom such modification
or amendment shall be claimed to be effective.

 

15.           Enforceability.
Should any provision of this Agreement be declared or be determined by any court or tribunal to be illegal or invalid, the validity
of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall
be severed and deemed not to be part of this Agreement.

 

16.           Governing
Law. This Agreement shall be governed, interpreted, and construed in accordance with the laws of the State of New York without
giving effect to the conflict of laws principles thereof.

 

17.           Counterparts;
Facsimile Signature. 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. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other
transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective
for all purposes.

 

[remainder of page intentionally
left blank]

 

    - 6 - 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	FC
Global Realty Incorporated
	 	 
	 	 By:	/s/
Suneet Singal
	 	 	Name: Suneet
Singal
Title: Chief
Executive Officer
	 	 	 
	 	NOTE HOLDERS:
	 	 
	 	/s/ Yoav Ben-Dror
	 	Yoav
Ben-Dror
	 	 
	 	/s/ Dolev Rafaeli
	 	Dr.
Dolev Rafaeli
	 	 
	 	/s/ Dennis M. McGrath
	 	Dennis
M. McGrath

 

     

     

    

 

APPENDIX A

 

Schedule of Note Holders

 

	Name of Note Holder	Principal Amount of Payout Note	Number of Payout Shares to be Received	
        Number of Additional Shares
        to be Received

         

	
        Dr. Dolev Rafaeli

         
	$3,133,934.00	3,134,876	1,034,509
	
        Dennis M. McGrath

         
	$977,666	977,960	322,727
	
        Yoav Ben-Dror

         
	$1,515,000	1,515,455	500,100

 

     

     

    

 

APPENDIX B

 

Cash Payments

 

Twelve (12) monthly payments made on the
1st of each month beginning January 1, 2018 in the following amounts:

 

Yoav: $10,310.42

 

Dolev: $21,328.16

 

Dennis: $6,653.56

 

     

     

    

 

EXHIBIT B

 

SHAREHOLDER VOTING SUPPORT AND CONFIDENTIALITY
AGREEMENT

 

SHAREHOLDER VOTING
SUPPORT AND CONFIDENTIALITY AGREEMENT (this “Agreement”), dated as of December 22, 2017, by and among Dr. Dolev
Rafaeli, Dennis M. McGrath and Yoav Ben-Dror (each, a “Note Holder” and together, the “Note Holders”)
and those holders of securities of FC Global Realty Incorporated, formerly PhotoMedex, Inc., a Nevada corporation (the “Company”),
listed on Schedule I annexed hereto (each a “Securityholder” and collectively, the “Securityholders”).

 

RECITALS

 

The Company and the
Note Holders have entered into a Stock Grant Agreement, dated as of the date hereof (the “Stock Grant Agreement”),
pursuant to which the Company has agreed to issue an aggregate of 1,857,336 shares (the “Shares”) of the Common
Stock, par value $.01 per share, of the Company (the “Common Stock”) to the Note Holders as consideration for
the various agreements of the Note Holders contained in the Stock Grant Agreement. Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the Stock Grant Agreement.

 

As of the date hereof,
each Securityholder is the record owner of the number and type of securities of the Company set forth opposite the name of such
Securityholder on Schedule I hereto.

 

As a condition to the
willingness of the Note Holders to enter into the Stock Grant Agreement and as an inducement and in consideration therefor, each
Securityholder has agreed to enter into this Agreement.

 

AGREEMENT

 

The parties, intending
to be legally bound, agree as follows:

 

SECTION 1. Securityholder
Meetings; Voting. Each Securityholder hereby agrees that from and after the date hereof and until this Agreement is terminated
in accordance with Section 8, such Securityholder shall appear in person or by proxy at any meeting of the Securityholders of the
Company called for purposes, and any adjournment or postponement thereof, or in any other circumstances upon which a vote, consent
or other approval with respect to the Stock Grant Agreement or the transactions contemplated by the Stock Grant Agreement is sought
by the Company and approved by the board of directors of the Company and recommended to the Securityholders of the Company by the
board of directors that include any of the following: (i) the adoption of the Stock Grant Agreement and the transactions contemplated
by the Stock Grant Agreement or (ii) the approval of issuance of the Shares as contemplated by the Stock Grant Agreement.

 

Each Securityholder
hereby agrees that from and after the date hereof and until this Agreement is terminated in accordance with Section 8, such Securityholder
shall exercise all of his, her or its rights as a holder of securities of the Company to vote as follows to the extent that the
following are approved by the board of directors of the Company and recommended to the Securityholders of the Company: (i) in favor
of the adoption of the Stock Grant Agreement and the approval of the transactions contemplated by the Stock Grant Agreement; (ii)
in favor of any proposal seeking approval for the issuance to the Note Holders or their designees of Common Stock equal to 20%
or more of the Common Stock or 20% or more of the voting power outstanding before the issuance, in order that the Company may issue
all Shares to the Note Holders or their designees under the Stock Grant Agreement (the “20% Proposal”); (iii)
against any proposal made in opposition to, or in competition with, the matters set forth in (i) or (ii) above; and (iv) against
any other action that is intended, or would reasonably be expected to, impede, interfere with, delay, postpone, discourage or adversely
affect the adoption of the Stock Grant Agreement and approval of the transactions contemplated by the Stock Grant Agreement at
any meeting of the Securityholders of the Company. It is the intention of this paragraph that each Securityholder shall be obligated
to vote in accordance with the above regardless of the particular wording of any proposal put forth to the Securityholders of the
Company, in a manner consistent with the purpose of authorizing the Stock Grant Agreement and the issuance to the Note Holders
or their designees of shares of Common Stock of the Company having the maximum voting power as is contemplated by the Stock Grant
Agreement.

 

     

     

    

 

SECTION 2. Restriction
on Transfer.

 

(a) Except as provided
by Sections 2(c) and 2(d), each Securityholder agrees that he, she or it will not directly or indirectly, prior to the termination
of this Agreement: (i) transfer, assign, sell, lend, sell short, gift-over, pledge, encumber, hypothecate, exchange or otherwise
dispose (whether by sale, liquidation, dissolution, dividend or distribution), or offer or solicit to do any of the foregoing,
of any or all of the equity securities and/or any debt or similar securities that are convertible into equity securities of the
Company held by him, her or it, including any additional equity securities and/or any debt or similar securities that are convertible
into equity securities of the Company which Securityholder may subsequently acquire, including all additional equity securities
which may be issued to Securityholder upon the exercise of any options, warrants or other securities convertible into or exchangeable
for securities of the Company (all such securities of such Securityholder, “Subject Securities”) or any right
or interest therein, or consent to any of the foregoing (any such action, a “Transfer”), (ii) enter or offer
to enter into any derivative arrangement with respect to, or create or suffer to exist any liens or encumbrances with respect to,
any or all of the Subject Securities or any right or interest therein, in either case that would reasonably be expected to prevent
or delay such Securityholder’s compliance with his, her or its obligations hereunder; (iii) enter of offer to enter into
any contract, option or other agreement, arrangement or understanding with respect to any Transfer; (iv) grant any proxy, power-of-attorney
or other authorization or consent with respect to any Subject Securities with respect to any matter that is, or that could be exercised
in a manner, inconsistent with the transactions contemplated by the Stock Grant Agreement and this Agreement or the provisions
thereof and hereof; (v) deposit any Subject Securities into a voting trust, or enter into a voting agreement or arrangement with
respect to any Subject Securities; or (vi) enter or offer to enter into any contract or agreement that would be breached by, or
take any other action that would reasonably be expected to prevent or delay such Securityholder’s compliance with its obligations
hereunder.

 

(b) Each Securityholder
hereby acknowledges and agrees that the Company shall be entitled, during the term of this Agreement, to cause any transfer agent
for the Subject Securities to decline to effect any Transfer and to note stop transfer restrictions on the stock register and other
records relating to Subject Securities, and each Securityholder agrees to execute and deliver any further documents reasonably
requested by the Company in furtherance of the same.

 

(c) Notwithstanding
the foregoing, the restrictions set forth in this Section 2 shall not apply to the exercise of any option, warrant or other securities
convertible or exchangeable for securities of the Company.

 

(d) Notwithstanding
the foregoing, the restrictions set forth in this Section 2 shall not apply to any Transfer by First Capital Real Estate Operating
Partnership, LP or First Capital Real Estate Trust Incorporated, in each case, to any holder of a security issued by any such person.

 

    2 

     

    

 

SECTION 3. Representations
and Warranties of Securityholders. Each Securityholder on its own behalf hereby represents and warrants to the Note Holders
as follows:

 

(a) The Securityholder
is the record owner of the equity securities and/or any debt or similar securities that are convertible into equity securities
of the Company set forth opposite the name of the Securityholder on Schedule I to this Agreement. As of the date of this Agreement,
the equity securities and/or any debt or similar securities that are convertible into equity securities of the Company set forth
opposite the name of the Securityholder on Schedule I to this Agreement represent all of the shares of equity securities and/or
any debt or similar securities that are convertible into equity securities of the Company owned of record by the Securityholder.

 

(b) If the Securityholder
is a corporation, partnership, limited liability company or other entity, such Securityholder is an entity duly organized, validly
existing and in good standing under the laws of its jurisdiction, and has all requisite organizational power and authority to execute
and deliver this Agreement and to consummate the transactions contemplated hereby, and has taken all necessary organizational action
to authorize the execution, delivery and performance of this Agreement.

 

(c) If the Securityholder
is an individual, such Securityholder has the valid capacity to execute and deliver this Agreement and has duly executed and delivered
this Agreement.

 

(d) If the Securityholder
is a corporation, partnership, limited liability company or other entity, this Agreement has been duly authorized, executed and
delivered by such Securityholder.

 

(e) This Agreement
constitutes a valid and binding obligation of the Securityholder, enforceable against the Securityholder in accordance with its
terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other laws
of general application affecting enforcement of creditors’ rights generally.

 

(f) The execution,
delivery and performance by the Securityholder of this Agreement does not require any consent, approval, authorization or permit
of, action by, filing with or notification to any governmental authority or other third party, other than any consent, approval,
authorization, permit, action, filing or notification the failure of which to make or obtain would not, individually or in the
aggregate, be reasonably expected to prevent or materially delay the consummation of the transactions contemplated by the Stock
Grant Agreement or the Securityholder’s ability to observe and perform its material obligations hereunder (a “Securityholder
Material Adverse Effect”).

 

(g) The execution,
delivery and performance by the Securityholder of this Agreement will not (i) result in a violation of, or default (with or without
notice or lapse of time, or both) under, require consent under or give rise to a right of termination, cancellation or acceleration
of any obligation or the loss of any benefit under any (A) contract, trust, commitment, agreement, understanding or arrangement
of any kind (a “Contract”) or (B) permit, concession, franchise, right or license binding upon the Securityholder,
(ii) result in the creation of any pledges, liens, claims, security interests, proxies, voting trusts or agreements, options, rights
(other than community property interests), understandings or arrangements or any other encumbrance or restriction whatsoever on
title transfer (collectively, “Encumbrances”), other than Encumbrances imposed by federal or state securities
laws (collectively, “Permitted Encumbrances”), upon any of the properties or assets of the Securityholder, (iii)
if the Securityholder is a corporation, partnership, limited liability company or other entity, conflict with or result in any
violation of any provision of the organizational documents of such Securityholder, or (iv) conflict with or violate any applicable
laws, other than, in the case of clauses (i), (ii) and (iv), as would not, individually or in the aggregate, be reasonably expected
to have a Securityholder Material Adverse Effect. The consummation by the Securityholder of the transactions contemplated by this
Agreement will not (i) violate any provision of any judgment, order or decree applicable to the Securityholder or (ii) require
any consent, approval, or notice under any statute, law, rule or regulation applicable to such Securityholder.

 

    3 

     

    

 

(h) The Securityholder’s
Subject Securities are now, and at all times during the term hereof will be, held by the Securityholder or by a nominee or custodian
for the benefit of the Securityholder, free and clear of all Encumbrances, except for (i) any such Encumbrances arising hereunder,
(ii) Permitted Encumbrances and (iii) any Encumbrance imposed by any margin account in with the Subject Securities may be held
(provided, that the Securityholder retains voting and dispositional control of any such Subject Securities).

 

(i) The Securityholder
understands and acknowledges that the Note Holders are entering into the Stock Grant Agreement in reliance upon the Securityholder’s
execution and delivery of this Agreement.

 

(j) No broker, investment
bank, financial advisor or other person is entitled to any broker’s, finder’s, financial adviser’s or similar
fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Securityholder.

 

SECTION 4. Representations
and Warranties of the Note Holders. Each Note Holder hereby represents and warrants to the Securityholders as follows:

 

(a) This Agreement
has been duly authorized, executed and delivered by the Note Holder, and, assuming this Agreement constitutes a valid and binding
obligation of the other parties hereto, constitutes a valid and binding obligation of Note Holder, enforceable against the Note
Holder in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally.

 

(b) The execution,
delivery and performance by the Note Holder of this Agreement does not require any consent, approval, authorization or permit of,
action by, filing with or notification to any governmental authority or other third party, other than any consent, approval, authorization,
permit, action, filing or notification the failure of which to make or obtain would not, individually or in the aggregate, be reasonably
expected to prevent or materially delay the consummation of the transactions contemplated by the Stock Grant Agreement or Note
Holder’s ability to observe and perform the Note Holder’s material obligations hereunder (a “Note Holder Material
Adverse Effect”).

 

(c) The execution,
delivery and performance by the Note Holder of this Agreement will not (i) result in a violation of, or default (with or without
notice or lapse of time, or both) under, require consent under or give rise to a right of termination, cancellation or acceleration
of any obligation or the loss of any benefit under any (A) Contract or (B) permit, concession, franchise, right or license binding
upon the Note Holder, (ii) result in the creation of Encumbrances (other than Permitted Encumbrances) upon any of the properties
or assets of the Note Holder, (iii) conflict with or violate any applicable laws, other than, in the case of clauses (i) and (ii),
as would not, individually or in the aggregate, be reasonably expected to have a Note Holder Material Adverse Effect. The consummation
by the Note Holder of the transactions contemplated by this Agreement will not (i) violate any provision of any judgment, order
or decree applicable to the Note Holder or (ii) require any consent, approval, or notice under any statute, law, rule or regulation
applicable to the Note Holder.

 

    4 

     

    

 

SECTION 5. Confidentiality.

 

(a) Confidentiality
by the Securityholders. Except as otherwise required by applicable law, each Securityholder agrees to treat and hold as confidential,
any confidential or proprietary information of the Note Holders relating, except for any such information which is generally known
to the public or becomes generally known to the public, other than as a result of a disclosure by such Securityholder and not due
to the breach of this Agreement (“Confidential Information”), and to refrain from disclosing any Confidential
Information, except in accordance with the provisions of this Section 5. Unless otherwise public information, the existence of
any business negotiations, discussions, consultations or agreements in progress between the parties hereto, or between the Note
Holders and certain third parties, shall not be released to any form of public media without the prior written consent of the Note
Holders. Each Securityholder agrees that it shall treat all Confidential Information with at least the same degree of care as it
accords to its own information of like nature, and each Securityholder represents that it exercises at least reasonable care to
protect its own confidential information. Each Securityholder may disclose Confidential Information only to those of its employees,
officers, directors, shareholders, partners, members, or owners of a similar equity interest in such Securityholder, or any of
such Securityholder’s agents or representatives (all such persons or entities, collectively, “Securityholder Representatives”)
who (i) need to know such information for the purposes of advising such Securityholder with respect to the Stock Grant Agreement
and the consummation of the transactions contemplated by the Stock Grant Agreement and (ii) are informed by such Securityholder
of the confidential nature of the Confidential Information and the obligations under this Agreement with respect to such Confidential
Information. Each Securityholder also agrees to be responsible for enforcing the terms of this Agreement as to its Securityholder
Representatives and maintaining the confidentiality of the Confidential Information and to take such action, legal or otherwise,
to the extent necessary to cause them to comply with the terms and conditions of this Agreement and thereby prevent any disclosure
or prohibited use of Confidential Information by any of its Securityholder Representatives.

 

(b) Disclosure Required
by Law. Notwithstanding the foregoing, each Securityholder or any of the Securityholder’s Representatives may disclose
Confidential Information without Note Holders’ consent to the extent required by law or legal process (provided that, unless
prohibited by law, it first provides prompt notice to the Note Holders so that the Note Holders may seek a protective order or
other appropriate remedy or consent to the disclosure). In the event a Securityholder or any of the Securityholder’s Representatives
are required to so disclose Confidential Information, such Securityholder or such Representative may furnish that portion (and
only that portion) of the Confidential Information that such person or entity has been advised by legal counsel that it is legally
compelled or otherwise required to disclose, and such person or entity shall use all reasonable efforts to obtain reliable assurance
that confidential treatment will be accorded any Confidential Information so disclosed and, if requested by the Note Holders, shall
use reasonable efforts to assist the Note Holders in obtaining an order or other assurance that confidential treatment will be
accorded to such Confidential Information so disclosed. Notwithstanding the foregoing or anything else in this Agreement to the
contrary, the Company may disclose the terms and conditions of this Agreement as required by the rules and regulations of any national
securities exchange, NASDAQ, or other market on which its securities are listed or qualified, the Securities and Exchange Commission
or other applicable governmental or regulatory body. If the Company discloses the terms and conditions of this Agreement as provided
in the immediately preceding sentence it shall use best efforts to give the other parties reasonable advance notice of such disclosure.

 

(c) Securityholder
Acknowledgment. Each Securityholder also acknowledges and agrees that it is aware of the restrictions imposed by the United
States federal securities laws and other applicable foreign and domestic laws on a person or entity in possession of material non-public
information about a public company and that such Securityholder will comply with such laws.

 

SECTION 6. Fiduciary
Responsibilities. No Securityholder executing this Agreement who is or becomes during the term hereof a director or officer
of the Company makes (or shall be deemed to have made) any agreement or understanding herein in his or her capacity as such director
or officer. Without limiting the generality of the foregoing, each Securityholder signs solely in his or her capacity as the record
owner of such Securityholder’s Subject Securities and nothing herein shall limit or affect any actions taken by such Securityholder
(or a designee of such Securityholder) in his or her capacity as an officer or director of the Company in exercising his or her
or the Company’s or the Company’s Board of Directors’ rights in connection with the Stock Grant Agreement or
otherwise and such actions shall not be deemed to be a breach of this Agreement.

 

    5 

     

    

 

SECTION 7. Power
of Attorney. Each Securityholder hereby irrevocably designates and appoints the Company and its duly authorized officers and
agents as its agent and attorney in fact, which appointment is coupled with an interest, to act on such Securityholder’s
behalf to execute any proxy relating to any meeting of the Securityholders of the Company called for the purposes set forth herein
and to do all other lawfully permitted acts to further such purposes with the same legal force and effect as if executed by such
Securityholder.

 

SECTION 8. Termination.

 

(a) This Agreement,
and all rights and obligations of the parties hereunder, shall terminate immediately upon the earliest to occur of the following:

 

(i) the first Business
Day following the date of the approval of the 20% Proposal by the Company’s stockholders;

 

(ii) the mutual written
consent of the Note Holders and the Securityholders; or

 

(iii) December 31,
2018.

 

(b) Except as set forth
in Section 8(c), upon termination of this Agreement, except in the case of liability for any willful breach by any party to this
Agreement prior to termination from which liability termination shall not relieve any such party, all obligations of the parties
under this Agreement will terminate, without any liability or other obligation on the part of any party hereto to any person or
entity in respect hereof or the transactions contemplated hereby, and no party shall have any claim against another (and no person
shall have any rights against such party), whether under contract, tort or otherwise.

 

(c) Section 4 of this
Agreement shall survive the termination of this Agreement until the first anniversary of the date of this Agreement. Section 8
of this Agreement shall survive the termination of this Agreement indefinitely.

 

SECTION 9. Expenses.
All fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such fees or expenses, whether or not the transactions contemplated by the Stock Grant Agreement are consummated.

 

SECTION 10. Miscellaneous.

 

(a) Liabilities
Several. The agreements, obligations, representations and warranties of the Securityholders hereunder are made severally and
not jointly.

 

(b) Effectiveness
of Agreement. The agreements, obligations, representations and warranties of the Securityholders set forth in this Agreement
shall not be effective or binding upon any Securityholder until after such time as the Stock Grant Agreement is executed and delivered
by the parties thereto.

 

(c) Notices.
All notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be
deemed given to a party when (i) delivered to the appropriate address by hand or by nationally recognized overnight courier service;
or (ii) transmitted by telecopy or e-mail (with confirmation of transmission) by the transmitting equipment confirmed with a copy
delivered as provided in clause (i), in each case to the following addresses, facsimile numbers or e-mail addresses and marked
to the attention of the person (by name or title) designated below (or to such other address, telecopy number, e-mail address or
person as a party may designate by notice to the other parties).

 

    6 

     

    

 

If to the Note Holders, to:

 

	 	Dolev Rafaeli	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Dennis M. McGrath	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Yoav Ben-Dror	 
	 	 	 
	 	 	 
	 	 	 

 

If to a Securityholder, to the address
set forth on Schedule I attached hereto.

 

If to the Company, to:

 

FC Global Realty Incorporated

410 Park Ave

New York, NY 10022

Attention: Suneet Singal

Email: ssingal@photomedex.com; copy
to mpupach@photomedex.com

 

With a copy (which shall not constitute
notice) to:

 

BEVILACQUA PLLC

1050 Connecticut Ave., NW, Suite
500

Washington, DC 20036

Attention: Louis A. Bevilacqua,
Esq.

Email: lou@bevilacquapllc.com

 

(d) Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

(e) Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together
shall constitute one and the same instrument. This Agreement or any counterpart may be executed and delivered by facsimile copies
or delivered by electronic communications by portable document format (.pdf), each of which shall be deemed an original to the
other parties.

 

(f) Entire Agreement;
No Third Party Beneficiaries. This Agreement constitutes the entire agreement, and supersedes all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter of this Agreement and is not intended to confer, nor
shall it confer, upon any person other than the parties hereto any legal or equitable rights or remedies or benefits of any nature
whatsoever.

 

    7 

     

    

 

(g) Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws
that might otherwise apply under applicable principles of conflicts of law thereof.

 

(h) Waiver of Jury
Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR LITIGATION
BETWEEN THE PARTIES HERETO ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

(i) Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned (in whole
or in part) by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other
parties, and any such assignment without such consent shall be null and void; notwithstanding the foregoing, each Note Holder may
assign any of the rights and benefits of this Agreement to any person that has or acquires any Shares. No assignment by any party
shall relieve such party of any of its obligations hereunder. Subject to the preceding sentences, this Agreement shall be binding
upon, and shall inure to the benefit of, and shall be enforceable by the parties hereto and their respective successors and assigns.

 

(j) Severability
of Provisions. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule
of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect,
insofar as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated
hereby are fulfilled to the extent possible.

 

(k) Specific Performance,
Jurisdiction, Enforcement.

 

(i) The parties agree
that irreparable damage for which money damages, even if available, would not be an adequate remedy, if any provision of this Agreement
is not performed in accordance with its specific terms or is otherwise breached. Accordingly, the parties agree that, prior to
the valid termination of this Agreement in accordance with Section 9, each party shall be entitled to an injunction or injunctions,
or any other appropriate form of specific performance or equitable relief, to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement exclusively in the federal and state courts located in New York County,
New York, this being in addition to any other remedy to which they are entitled at law or in equity. Each party further agrees
that no other party shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition
to obtaining any remedy referred to in this Section 10(k), and each party hereto hereby irrevocably waives any right he, she or
it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

(ii) Each of the parties
(A) irrevocably submits itself to the exclusive jurisdiction of the federal and state courts located in the New York County, New
York for the purpose of any action, proceeding or litigation directly or indirectly based upon, relating to or arising out of this
Agreement or any of the transactions contemplated by this Agreement or the negotiation, execution or performance hereof or thereof,
or any other appropriate form of specific performance or equitable relief, (B) agrees that it will not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from any such court and (C) agrees that it will not bring any action,
proceeding or litigation relating to this Agreement or the transactions contemplated by this Agreement in any court other than
any of the federal and state courts located in the State of New York. Each of the parties hereby irrevocably waives, and agrees
not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action, proceeding or litigation with respect
to this Agreement, (X) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason
other than the failure to serve in accordance with this Section 10(k), (Y) any claim that it or its property is exempt or immune
from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment
prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (Z) to the fullest extent
permitted by the applicable law, any claim that (1) the suit, action or proceeding in such court is brought in an inconvenient
forum, (2) the venue of such suit, action or proceeding is improper or (3) this Agreement, or the subject matter of this Agreement,
may not be enforced in or by such courts.

 

    8 

     

    

 

(iii) Each of the
parties hereby irrevocably consents to service being made through the notice procedures set forth in Section 10(c) and agrees that
service of any process, summons, notice or document by personal delivery or by registered mail (return receipt requested and first-class
postage prepaid) to the respective addresses set forth in Section 10(c) and on the signature pages hereto shall be effective service
of process for any action, proceeding or litigation in connection with this Agreement or the transactions contemplated hereby.
Nothing in this Section 10(k) shall affect the right of any party to serve legal process in any other manner permitted by law.

 

(l) Amendment.
No amendment or modification of this Agreement shall be effective unless it shall be in writing and signed by each of the parties
hereto, and no waiver or consent hereunder shall be effective against any party unless it shall be in writing and signed by such
party.

 

(m) Miscellaneous.

 

(i) Any word or term
used in this Agreement in any form shall be masculine, feminine, neuter, singular or plural, as proper reading requires. The words
“herein”, “hereof”, “hereby” or “hereto” shall refer to this Agreement unless otherwise
expressly provided. Any reference in this Agreement to a Section or any exhibit or schedule shall be a reference to a Section of,
and an exhibit or schedule to, this Agreement unless the context otherwise requires. Any reference in this Agreement to a “Business
Day” shall mean a day in which the New York branch of the Federal Reserve Bank is open for business during its normal hours
of operation.

 

(ii) In any action
or proceeding brought to enforce any provision of this Agreement, or where any provision of this Agreement is validly asserted
as a defense, the successful party shall be entitled to recover its actual attorneys’ fees and all disbursements in addition
to any other available remedy.

 

[Signature Page Follows]

 

    9 

     

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered as of the date first written above.

 

	 	NOTE HOLDERS:
	 	 
	 	Yoav Ben-Dror
	 	 
	 	Dolev Rafaeli
	 	 
	 	Dennis M. McGrath

 

	 	SECURITYHOLDERS:
	 	 
	 	By:
OP Fund I Manager, LLC
	 	 
	 	 By:	 
	 	 	Name: Kristen Pigman
Title: Director

 

	 	FIRST CAPITAL REAL ESTATE OPERATING
PARTNERSHIP, LP
	 	 
	 	By: First Capital Real Estate Trust
Incorporated, its general partner
	 	 
	 	By:	 
	 	 	Name: Suneet Singal
Title: Chief Executive Officer

 

	 	 
	 	Yoav Ben-Dror
	 	 
	 	Dolev Rafaeli
	 	 
	 	Dennis M. McGrath

 

     

     

    

 

SCHEDULE I

 

	Name and Address	Security Held
	
        First Capital Real Estate
Operating Partnership, LP

        60 Broad Street, 34th
Floor

        New York NY 10004

        Attention: Suneet Singal

         
	
        879,234 shares of Common Stock and
        79,389.64 shares of non-voting Series A Convertible Preferred Stock (currently convertible into 1,984,741 shares of Common Stock).

         

	Opportunity
                                         Fund I-SS, LLC
 c/o
                                         OP Fund I Manager, LLC
 2481
                                         Sunrise Blvd, Suite 200 
 Gold
                                         River, CA 95670
 Attention:
                                         Kristen E. Pigman

                                                                                 
	1,500,000
    shares of Series B Preferred Stock.
	
        Dolev Rafaeli

        __________________

        __________________

         
	
        149,774 shares of Common Stock, 3,134,876
        additional shares of Common Stock that will be issued on the date hereof upon conversion of the Payout Note, 1,034,509 additional
        shares of Common Stock that will be issued following stockholder approval pursuant to the terms of the Share Grant Agreement, 33,750
        additional shares of Common Stock subject to restriction agreements, vested options to purchase 35,600 shares of Common Stock,
        and unvested options to purchase 1,900 shares of Common Stock.

         

	
        Dennis M. McGrath

        __________________

        __________________

         
	
        26,528 shares of Common Stock, 977,960
        additional shares of Common Stock that will be issued on the date hereof upon conversion of the Payout Note, 322,727 additional
        shares of Common Stock that will be issued following stockholder approval pursuant to the terms of the Share Grant Agreement, 24,750
        additional shares of Common Stock subject to restriction agreements, vested options to purchase 37,490 shares of Common Stock and
        unvested options to purchase 1,400 shares of Common Stock.

         

	
        Yoav Ben-Dror

        __________________

        __________________

         
	299,184 shares of common stock, 1,515,455 additional shares of Common Stock that will be issued on the date hereof upon conversion of the Payout Note, 500,100 additional shares of Common Stock that will be issued following stockholder approval pursuant to the terms of the Share Grant Agreement, and warrants to purchase 11,500 shares of common stock.Exhibit 10.13

 

REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of December 22, 2017, by
and among FC Global Realty Incorporated, formerly known as PhotoMedex, Inc., a Nevada corporation (the “Company”)
and Dr. Dolev Rafaeli, Dennis M. McGrath and Yoav Ben-Dror (each, a “Note Holder” and together, the “Note
Holders”).

 

RECITALS

 

A.       On
October 12, 2017, the Company issued to the Note Holders Secured Convertible Payout Notes Due October 12, 2018 (the “Payout
Notes”) in consideration for all outstanding compensation liabilities owed to the Note Holders by the Company.

 

B.       On
the date hereof, the Company and the Note Holders have entered into a stock grant agreement (the “Stock Grant Agreement”),
pursuant to which the parties agreed to (1) cause the early conversion of the Payout Notes into an aggregate of 5,628,291 shares
of the Company’s Common Stock (the “Payout Shares”), (2) effectuate the release of all security interests
associated with the Payout Notes, (3) obtain the agreement of the Note Holders to provide certain support services to the Company,
(4) obtain the conditional resignation of certain of the Note Holders from the Board of Directors of the Company, (5) provide
for the issuance of 1,857,336 additional shares of Common Stock to the Note Holders as consideration for the various agreements
of the Note Holders contained in the Stock Grant Agreement (the “Additional Shares”) and (6) provide for Cash
Payments (as defined in the Stock Grant Agreement) to the Note Holders.

 

C.       On
November 14, 2017, the Company filed a Registration Statement on Form S-3 (File No. 333-221578) relating to the registration of
the Payout Shares (the “Prior Registration Statement”)

 

C.       In
accordance with the terms of the Stock Grant Agreement, the Company has also agreed to provide certain registration rights for
the Additional Shares under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “Securities Act”), and applicable state securities laws.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Note Holders hereby agree as follows:

 

1.            
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Stock Grant Agreement will
have the respective meanings given such terms in the Stock Grant Agreement. As used in this Agreement, the following terms have
the respective meanings set forth in this Section 1 and other terms are defined throughout this Agreement:

 

    1 

     

    

 

“Business
Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

“Commission” means the United States Securities and Exchange Commission.

 

“Commission
Comments” means written comments pertaining solely to Rule 415 which are received by the Company from the Commission
to a filed Registration Statement, which either (i) requires the Company to limit the number of Registrable Securities which may
be included therein to a number which is less than the number sought to be included thereon as filed with the Commission or (ii)
requires the Company to either exclude Registrable Securities held by specified Holders or deem such Holders to be underwriters
with respect to Registrable Securities they seek to include in such Registration Statement.

 

“Effective
Date” means, as to a Registration Statement, the date on which such Registration Statement is first declared effective
by the Commission.

 

“Effectiveness
Date” means (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the
earlier of: (i) the 150th day following the Filing Date and (ii) the fifth Trading Day following the date on which
the Company is notified by the Commission that the initial Registration Statement will not be reviewed or is no longer subject
to further review and comments; (b) with respect to any additional Registration Statements required to be filed pursuant to Section
2(a), the earlier of: (i) the 120th day following the applicable Filing Date for such additional Registration Statement(s)
and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such additional Registration
Statement(s) will not be reviewed or is no longer subject to further review; (c) with respect to a Registration Statement required
to be filed under Section 2(b), the earlier of: (i) the 120th day following the Filing Date, and (ii) the fifth Trading
Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed
or is no longer subject to further review and comments; and (d) with respect to any additional Registration Statements required
to be filed solely due to SEC Restrictions, the earlier of: (i) the 120th day following the applicable Restriction
Termination Date and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such
Registration Statement will not be reviewed or is no longer subject to further review and comments.

 

“Effectiveness
Period” means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing
on the Effective Date of such Registration Statement and ending on (a) the date that all of the Registrable Securities covered
by such Registration Statement have been publicly sold by the Holders of the Registrable Securities included therein, or (b) such
time as all of the Registrable Securities covered by such Registration Statement may be sold by the Holders without restriction
pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed
and acceptable to the Company’s transfer agent and the affected Holders.

 

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

 

    2 

     

    

 

“Filing
Date” means (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the
30th day following the date hereof; (b) with respect to any additional Registration Statements required to be filed
pursuant to Section 2(a), the 30th day following the Effective Date for the last Registration Statement filed pursuant
to this Agreement under Section 2(a); (c) with respect to a Registration Statement required to be filed under Section 2(b), the
30th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common
Stock; and (d) with respect to any additional Registration Statements required to be filed due to SEC Restrictions, the 30th
day following the applicable Restriction Termination Date.

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities
and, if other than the Note Holder, a Person to whom the rights hereunder have been properly assigned pursuant to Section 7 hereof.

 

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

 

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

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the 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.

 

“Registrable
Securities” means: (i) the Additional Shares issued to the Note Holders under the Stock Grant Agreement and (ii) any
securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any
price adjustment as a result of such stock splits, reverse stock splits or similar events with respect to any of the securities
referenced in (i) above. Notwithstanding the foregoing, a security shall cease to be a Registrable Security for purposes of this
Agreement from and after such time as the Holder of such security may resell such security without restriction under Rule 144,
as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the
Company’s transfer agent and the affected Holders.

 

“Registration
Statement” means the initial registration statement required to be filed in accordance with Section 2(a) and any additional
registration statements required to be filed under this Agreement, including in each case the Prospectus, amendments and supplements
to such registration statements or Prospectus, including pre- and post- effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference therein.

 

    3 

     

    

 

“Required
Holders” means the Holders of at least a majority of the Registrable Securities.

 

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

 

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

 

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

 

“Trading
Market” means any of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market,
the NASDAQ Capital Market, the OTCBB, the OTCQB, the OTCQX or any other market on which the Common Stock of the Company is listed
or quoted for trading on the date in question.

 

2.             Registration.

 

(a)            On or prior to the applicable Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering
the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement required to be filed under this Agreement shall
be filed on Form S-1 (or on such other form appropriate for such purpose) and contain (except if otherwise required pursuant to
written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization
of any Holder as an underwriter, which shall not occur unless such Holder consents in writing to such characterization) the “Plan
of Distribution” attached hereto as Annex A. The Company shall cause each Registration Statement required to be filed
under this Agreement to be declared effective under the Securities Act as soon as possible but, in any event, no later than its
Effectiveness Date, and shall use its commercially reasonable efforts to keep each such Registration Statement continuously effective
during its entire Effectiveness Period. By 5:00 p.m. (Eastern time) on the Business Day immediately following the Effective Date
of each Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act
the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is
technically required under such Rule). If for any reason other than due solely to SEC Restrictions (as defined below), a Registration
Statement is effective but not all outstanding Registrable Securities are registered for resale pursuant thereto, then the Company
shall prepare and file by the applicable Filing Date an additional Registration Statement to register the resale of all such unregistered
Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415.

 

    4 

     

    

 

(b)           Promptly following any date on which the Company becomes eligible to use a registration statement on Form S-3 to register Registrable
Securities for resale, the Company shall file a Registration Statement on Form S-3 covering all Registrable Securities (or a post-effective
amendment on Form S-3 to the then effective Registration Statement) and shall cause such Registration Statement to be filed by
the Filing Date for such Registration Statement and declared effective under the Securities Act as soon as possible thereafter,
but in any event by the Effectiveness Date therefor. Such Registration Statement shall contain (except if otherwise required pursuant
to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization
of any Holder as an underwriter, which shall not occur unless such Holder consents in writing to such characterization) the “Plan
of Distribution” attached hereto as Annex A. The Company shall use its commercially reasonable efforts to keep such
Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period. By 5:00 p.m. (Eastern
time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company shall file with
the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant
to such Registration Statement (whether or not such filing is technically required under such Rule).

 

(c)          
Notwithstanding anything to the contrary contained in this Section 2, if the Company receives Commission Comments, and following
discussions with and responses to the Commission (it being understood that the Company will permit the Holders and counsel to
the Holders to review and comment on such responses and any related amendments to the Registration Statement and incorporate any
and all reasonable comments of the Holders and counsel to the Holders relating thereto) in which the Company uses its commercially
reasonable efforts to cause as many Registrable Securities for as many Holders as possible to be included in the Registration
Statement filed pursuant to Section 2(a) without characterizing any Holder as an underwriter unless such Holder consents in writing
to such characterization (and in such regard uses its commercially reasonable efforts to cause the Commission to permit any Holder
or its counsel to participate in Commission conversations on such issue together with the Company’s counsel, and timely
conveys relevant information concerning such issue with the Holders or their counsel) (the day that such discussions and responses
are concluded shall be referred to as the “Tolling Date”), the Company is unable to cause the inclusion of
all Registrable Securities, then the Company may, following not less than three (3) Trading Days prior written notice to the Holders
(i) remove from the Registration Statement such Registrable Securities (the “Cut Back Shares”) and/or (ii)
agree to such restrictions and limitations on the registration and resale of the Registrable Securities, in each case as the Commission
may require in order for the Commission to allow such Registration Statement to become effective; provided, that in no
event may the Company characterize any Holder as an underwriter unless such Holder consents in writing to such characterization
(collectively, the “SEC Restrictions”). Unless the SEC Restrictions otherwise require, any cut-back imposed
pursuant to this Section 2(c) shall be allocated among the Registrable Securities of the Holders on a pro rata basis. The required
Effectiveness Date for such Registration Statement will be tolled until such time as the Company is able to effect the registration
of the Cut Back Shares in accordance with any SEC Restrictions if such Registrable Securities cannot at such time be resold by
the Holders thereof without restrictions pursuant to Rule 144 (such date, the “Restriction Termination Date”).
From and after the Restriction Termination Date, all provisions of this Section 2 shall again be applicable to the Cut Back Shares
(which, for avoidance of doubt, retain their character as “Registrable Securities”) if such Registrable Securities
cannot at such time be resold by the Holders thereof without volume limitations pursuant to Rule 144 so that the Company will
be required to file with and cause to be declared effective by the Commission such additional Registration Statements in the time
frames set forth herein as necessary to ultimately cause to be covered by effective Registration Statements all Registrable Securities.
For the avoidance of doubt, the time period starting from the Tolling Date and ending with the Restriction Termination Date shall
be excluded in calculating the applicable Effectiveness Date.

 

    5 

     

    

 

(d)         
Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B
(a “Selling Holder Questionnaire”). The Company shall not be required to include the Registrable Securities
of a Holder in a Registration Statement) to any Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire
at least two Trading Days prior to the Filing Date (subject to the requirements set forth in Section 3(a)).

 

(e)           
If: (i) a Registration Statement is not filed on or prior to its Filing Date covering the Registrable Securities required
under this Agreement to be included therein, or (ii) a Registration Statement is not declared effective by the Commission
on or prior to its required Effectiveness Date or if by the first Business Day immediately following the Effective Date in which
the Commission accepts filings on its EDGAR database, the Company shall not have filed a “final” prospectus for the
Registration Statement with the Commission under Rule 424(b) in accordance with the terms hereof (whether or not such a prospectus
is technically required by such Rule), or (iii) after its Effective Date, without regard for the reason thereunder or efforts
therefor, such Registration Statement ceases for any reason to be effective and available to the Holders as to all Registrable
Securities to which it is required to cover at any time prior to the expiration of its Effectiveness Period for more than an aggregate
of 30 Trading Days during any 12-month period, which need not be consecutive (any such failure or breach being referred to as
an “Event,” and for purposes of clauses (i) or (ii) the date on which such Event occurs, or for purposes
of clause (iii) the date on which such 30 Trading Day-period is exceeded, being referred to as “Event Date”),
then in addition to any other rights the Holders may have hereunder or under applicable law: on the last day of each 30-day period
after 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 1.0% of the
product obtained by multiplying (x) $1.00 by (y) the number of shares of Common Stock that are Registrable Securities and held
by the Holders (such product being the “Investment Amount”). The parties agree that in no event will the Company
be liable for liquidated damages under this Agreement in excess of 1.0% of the Investment Amount in any single month and that
the maximum aggregate liquidated damages payable to the Holders under this Agreement shall be ten percent (10%) of the Investment
Amount. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of each
30-day period prior to the cure of an Event, and shall cease to accrue (unless earlier cured) upon the expiration of the Effectiveness
Period.

 

    6 

     

    

 

(f)           
Section 3 of the Payout Notes relating to the registration of the Payout Shares is incorporated into this Agreement by reference
as if it were set forth in full herein, except that the Note Holders waive the breach by the Company of such Section 3 resulting
from the Company’s failure to file the Prior Registration Statement within thirty (30) days after the date of the Payout
Notes and acknowledge and agree that they shall not be entitled to any liquidated damages under Section 2(e) as a result of such
failure. The Company agrees that any failure by the Company to cause the Prior Registration Statement to go effective within one
hundred twenty (120) days following the date of the Payout Notes shall constitute an “Event” under Section 2(e) and
thereupon the Note Holders would be entitled to liquidated damages in accordance with Section 2(e).

 

3.          
Registration Procedures. In connection with the Company’s registration obligations hereunder:

 

(a)           
The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling
Stockholder” section thereof differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as
amended or supplemented). The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements
thereto in which it (i) characterizes any Holder as an underwriter, unless such Holder consents in writing to such characterization,
(ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter, or (iii) reduces the number of Registrable
Securities being registered on behalf of a Holder except pursuant to, in the case of subsection (iii), the Commission Comments,
without, in each case, such Holder’s express written authorization, unless such reduction is made pursuant to Section 2(c)
hereof. The Company shall also ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses
contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which
they were made) not misleading.

 

(b)          
The Company shall (i) prepare and file with the Commission such amendments, including post-effective amendments, to each Registration
Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously
effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such
additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, 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 each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide
the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement
that would not result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv)
comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration
Statement(s) and the disposition of all Registrable Securities covered by each Registration Statement.

 

    7 

     

    

 

(c)           
The Company shall notify the Holders as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three
Trading Days prior to such filing and, in the case of (v) below, not less than three Trading Days prior to the financial statements
in any Registration Statement becoming ineligible for inclusion therein) and (if requested by any such Person) confirm such notice
in writing no later than one 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 (the Company shall provide true and complete copies thereof and all written responses thereto that pertain to the Holders
as a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material
and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same
has become effective; (ii) of any request by the 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
of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time
that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that,
in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

(d)          
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Holders of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

(e)           
The Company shall provide to the Holders and their counsel with drafts of each Registration Statement and each amendment thereto
within a reasonable time in advance of the filing of the same with the Commission such that the Holders and their counsel may
review and comment on each such Registration Statement and each amendment thereto and the Company shall incorporate all reasonable
comments received from the Holders and their counsel with respect to such drafts prior to filing the same with the Commission.
The Company shall furnish to the Holders, without charge and at the option of the Company in electronic format, at least one conformed
copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by the Holders (including
those previously furnished) promptly after the filing of such documents with the Commission.

 

    8 

     

    

 

(f)           
The Company shall promptly deliver to the Holders, without charge, as many copies of each Prospectus or Prospectuses (including
each form of prospectus) and each amendment or supplement thereto as the Holders may reasonably request. The Company hereby consents
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.

 

(g)           
Prior to any public offering of Registrable Securities, the Company shall register or qualify such Registrable Securities for
offer and sale under the securities or Blue Sky laws of all jurisdictions within the United States as any Holder may request,
to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any
and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities
covered by the Registration Statements; provided, however, in connection with any such registration or qualification,
the Company shall not be required to (i) qualify to do business in any jurisdiction where the Company would not otherwise be required
to qualify, (ii) subject itself to general taxation in any such jurisdiction, (iii) file a general consent to service of process
in any jurisdiction, or (iv) make any change to the Company’s articles of incorporation or bylaws.

 

(h)          
The Company shall cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to the Registration Statement(s), which certificates shall be free, to the
extent permitted by the Stock Grant Agreement, of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any such Holders may request.

 

(i)           
Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, the Company shall prepare
a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading.

 

(j)            
The Company shall notify the Holders in writing of the happening of any event, as promptly as practicable after becoming aware
of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice
contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration Statement to
correct such untrue statement or omission. The Company shall also promptly notify the Holders in writing when a prospectus or
any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective.

 

    9 

     

    

 

(k)           
If any Holder is required under applicable securities laws to be described in the Registration Statement as an underwriter, at
the reasonable request of such Holder, the Company shall furnish to such Holder, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as a Holder may reasonably request: (i) a letter, dated such date, from
the Company’s independent certified public accountants in form and substance as is customarily given by independent certified
public accountants to underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion, dated as
of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance reasonably
acceptable to such counsel and as is customarily given in an underwritten public offering, addressed to the Holders.

 

(l)            
The Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless:
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning a Holder
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
such Holder and allow such Holder, at the Holder’s expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

 

(m)          
The Company shall use its commercially reasonable efforts to cause all of the Registrable Securities covered by a Registration
Statement to be listed on each national securities exchange on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange. The
Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(m).

 

(n)           
The Company shall cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend to the extent permitted by the Stock Grant
Agreement) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates
to be in such denominations or amounts, as the case may be, as the Holders may reasonably request and registered in such names
as the Holders may request.

 

(o)           
If requested by a Holder, the Company shall as soon as practicable: (i) incorporate in a prospectus supplement or post-effective
amendment such information as a Holder reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration
Statement if reasonably requested by a Holder holding any Registrable Securities.

 

    10 

     

    

 

4.            
Registration Expenses.

 

(a)           
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 (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed
or quoted for trading, (B) with respect to filings with FINRA by any underwriter’s counsel for compensation review pursuant
to FINRA Rule 5110, and (C) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing
of prospectuses is reasonably requested by a Holder), (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, and (vi) fees and
expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions incurred by any Holder.

 

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, agents, investment advisors, partners, members and employees 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, agents and employees of each such controlling Person, to the fullest extent permitted by applicable
law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs
of preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising
out of or relating to (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or in any blue
sky application or other document executed by the Company specifically for that purpose or based upon written information furnished
by the Company filed in any state or other jurisdiction in order to qualify any or all of the Registrable Securities under the
securities laws thereof (any such application, document or information herein called a “Blue Sky Application”),
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 form of 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 such untrue statements or omissions
are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement,
such Prospectus or such form of Prospectus, or such Blue Sky Application or in any amendment or supplement thereto, (ii) any violation
by the Company or its agents of any rule or regulation promulgated under the Securities Act applicable to the Company or its agents
and relating to action or inaction required of the Company in connection with such registration; or (iii) any failure to register
or qualify the Registrable Securities included in any such Registration Statement in any state where the Company or its agents
has affirmatively undertaken or agreed in writing that the Company will undertake such registration or qualification on the Note
Holder’s behalf and will reimburse the Note Holder, and each such officer, director or member and each such controlling
person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action. The Company shall notify the Holders promptly of the institution, threat or assertion of any
Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

    11 

     

    

 

(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, arising solely out of or based solely upon
any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or
in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading to the extent, but only to the extent that, such
untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by
such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for
use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto. 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.

 

(c)           
Conduct of Indemnification Proceedings. 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 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 proximately and materially adversely prejudiced the Indemnifying Party.

 

    12 

     

    

 

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 such Indemnified Party shall have been advised by counsel 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 such counsel shall be at the expense of the Indemnifying Party);
provided, that, the Indemnifying Party shall pay for no more than two separate sets of counsel for all Indemnified Parties
and such legal counsel shall be selected by the Required Holders. 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. 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.

 

All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party
may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)           
Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason
of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute
to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect
the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or 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 Section 5(c), any reasonable
attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party
would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such
party in accordance with its terms.

 

    13 

     

    

 

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), (i) no Person involved in the
sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable
Securities who was not guilty of fraudulent misrepresentation; and (ii) no Holder shall be required to contribute, in the aggregate,
any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

 

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.            
Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 or any other similar
rule or regulation of the Commission that may at any time permit the Holders to sell Registrable Securities of the Company to
the public without registration, the Company agrees, for so long as Registrable Securities are outstanding and held by the Holders,
to:

 

(a)         
make and keep public information available, as those terms are understood, defined and required in Rule 144;

 

(b)        
file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and
the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

 

(c)         
furnish to each Holder so long as such Holder owns Registrable Securities, promptly upon request, such information as may be reasonably
and customarily requested to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 

7.            
Assignment of Registration Rights. The rights under this Agreement shall be automatically assignable by the Note Holders
to any permitted transferee of all or any portion of such Note Holder’s Registrable Securities if: (i) such Note Holder
agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company
within five (5) Business Days after such assignment; (ii) the Company is, within five (5) Business Days after such transfer or
assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment
the further disposition of such securities by the transferee or assignee is restricted under the Securities Act or applicable
state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this
sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein;
and (v) such transfer shall have been made in accordance with the applicable requirements of the Stock Grant Agreement.

 

    14 

     

    

 

8.            
Miscellaneous.

 

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

 

(b)          
No Piggyback on Registrations. Neither the Company nor any of its security holders (other than the Holders in such capacity
pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities, and
the Company shall not during the Effectiveness Period enter into any agreement providing any such right to any of its security
holders.

 

(c)          
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 the Registration Statement.

 

(d)          
Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a
notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration Statement until such Holder's receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement or until it is advised in writing by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph.

 

(e)           
Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement
covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with stock option or other employee benefit plans, then the Company shall send to each Holder written notice of such determination
and, if within fifteen calendar days after receipt of such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable Securities such holder requests to be registered, subject
to customary underwriter cutbacks applicable to all holders of registration rights.

 

    15 

     

    

 

(f)           
Amendments and Waivers. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Required
Holders. Any amendment or waiver effected in accordance with this Section 8(f) shall be binding upon the Note Holders and the
Company. No such amendment shall be effective to the extent that it applies to less than all of the Holders. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless
the same consideration also is offered to all of the parties to this Agreement. 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 certain Holders and that
does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the Registrable
Securities to which such waiver or consent relates.

 

(g)          
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered if delivered in accordance with Section 12 of the Stock
Grant Agreement.

 

(h)          
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 its rights or obligations hereunder
without the prior written consent of each Holder. Each Holder may assign their respective rights hereunder in the manner and to
the Persons as permitted under the Stock Grant Agreement.

 

(i)            
Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that
any signature is delivered by facsimile or email transmission, such signature shall create a valid binding obligation of the party
executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile or email
signature were the original thereof.

 

(j)            
Mediation; Arbitration; Governing Law. In the event of a dispute between any of the parties arising under or relating in
any way whatsoever to this Agreement, the disputing parties shall attempt to resolve it through good faith negotiation. If the
dispute is not resolved through such negotiation, then the disputing parties shall attempt to resolve it through mediation in
the State of New York, USA, with a neutral, third-party mediator mutually agreed upon by the disputing parties. Unless otherwise
agreed by the disputing parties, the costs of mediation shall be shared equally. If the dispute is not resolved through mediation,
then upon written demand by one of the disputing parties it shall be referred to a mutually agreeable arbitrator. The arbitration
process shall be conducted in accordance with the laws of the United States of America and the State of New York, except as modified
herein. Venue for the arbitration hearing shall be the State of New York, USA. All remedies, legal and equitable, available in
court shall also be available in arbitration. The arbitrator’s decision shall be final and binding, and judgment may be
entered thereon in a court of competent jurisdiction. This Agreement shall be interpreted and enforced in accordance with the
laws of the United States of America and the State of New York, without regard to conflict of law principles thereof. In any dispute
arising out of or relating in way whatsoever to this Agreement, including arbitration, the substantially prevailing party shall
be entitled to recover its costs and attorney fees from the other disputing parties.

 

    16 

     

    

 

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

 

(l)           
Entire Agreement. This Agreement, the Stock Grant Agreement and the instruments referenced herein and therein constitute
the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the Stock
Grant Agreement and the instruments referenced herein and therein supersede all prior agreements and understandings among the
parties hereto with respect to the subject matter hereof and thereof.

 

(m)         
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 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.

 

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

 

(o)           
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder under this Agreement are several
and not joint with the obligations of each other Holder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder under this Agreement. Nothing contained herein or in the Stock Grant Agreement, and no action
taken by any Holder pursuant thereto, 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 or the Stock Grant Agreement. Each Holder acknowledges
that no other Holder will be acting as agent of such Holder in enforcing its rights under this Agreement. 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 each of the Holders has been provided with the same Registration Rights Agreement for the purpose of
closing a transaction with multiple Holders and not because it was required or requested to do so by any Holder.

 

[Signature
Page Follows]

 

    17 

     

    

 

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

	 	 	 
	 	COMPANY:
	 	 
	 	FC GLOBAL REALTY INCORPORATED
	 	 	 
	 	By:	  /s/ Suneet Singal 
	 	Name: Suneet Singal
	 	Title: Chief Executive Officer and
    President
	 	 
	 	NOTE HOLDERS:
	 	 
	 	/s/ Dolev Rafaeli 
	 	Dr. Dolev Rafaeli
	 	 
	 	/s/ Dennis M. McGrath 
	 	Dennis M. McGrath
	 	 
	 	/s/ Yoav Ben-Dror 
	 	Yoav Ben-Dror

 

     

     

    

 

Annex
A

Plan
of Distribution

 

The
Selling Stockholders and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time,
sell any or all of their shares of common stock on any stock exchange, market or trading facility on which the shares are traded
or quoted or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one
or more of the following methods when selling shares:

 

		●	ordinary
                                         brokerage transactions and transactions in which the broker-dealer solicits investors;

 

		●	block
                                         trades in which the broker-dealer will attempt to sell the shares as agent but may position
                                         and resell a portion of the block as principal to facilitate the transaction;

 

		●	purchases
                                         by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		●	an
                                         exchange distribution in accordance with the rules of the applicable exchange;

 

		●	privately
                                         negotiated transactions;

 

		●	through
                                         the writing of options on the shares;

 

		●	to
                                         cover short sales made after the date that this Registration Statement is declared effective
                                         by the Commission;

 

		●	broker-dealers
                                         may agree with the Selling Stockholders to sell a specified number of such shares at
                                         a stipulated price per share;

 

		●	a
                                         combination of any such methods of sale; and

 

		●	any
                                         other method permitted by applicable law.

 

The
selling stockholders may also sell shares under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”),
if available, rather than under this prospectus. The selling stockholders shall have the sole and absolute discretion not to accept
any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory at any particular time.

 

The
selling stockholders, alternatively, may sell all or any part of the shares offered in this prospectus through an underwriter.  The
selling stockholders have not entered into any agreement with a prospective underwriter and there is no assurance that any such
agreement will be entered into.

 

     

     

    

 

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

 

The
selling stockholders or their respective pledgees, donees, transferees or other successors in interest, may also sell the shares
directly to market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such
broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling stockholders and/or
the purchasers of shares for whom such broker-dealers may act as agents or to whom they sell as principal or both in amounts to
be negotiated. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk.
It is possible that a selling stockholder will attempt to sell shares of common stock in block transactions to market makers or
other purchasers at a price per share which may be below the then existing market price. We cannot assure that all or any of the
shares offered in this prospectus will be issued to, or sold by, the selling stockholders. The selling stockholders and any brokers,
dealers or agents, upon effecting the sale of any of the shares offered in this prospectus, may be deemed to be “underwriters”
as that term is defined under the Securities Act, the Exchange Act and the rules and regulations of such acts. In such event,
any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be
deemed to be underwriting commissions or discounts under the Securities Act.

 

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

 

The
selling stockholders and any other persons participating in the sale or distribution of the shares will be subject to applicable
provisions of the Exchange Act, and the rules and regulations under such act, including, without limitation, Regulation M. These
provisions may restrict certain activities of, and limit the timing of purchases and sales of any of the shares by, the selling
stockholders or any other such person. In the event that any of the selling stockholders are deemed an affiliated purchaser or
distribution participant within the meaning of Regulation M, then the selling stockholders will not be permitted to engage in
short sales of common stock. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from
simultaneously engaging in market making and certain other activities with respect to such securities for a specified period of
time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition, if a short sale
is deemed to be a stabilizing activity, then the selling stockholders will not be permitted to engage in a short sale of our common
stock. All of these limitations may affect the marketability of the shares.

 

     

     

    

 

If
a selling stockholder notifies us that it has a material arrangement with a broker-dealer for the resale of the common stock,
then we would be required to amend the registration statement of which this prospectus is a part, and file a prospectus supplement
to describe the agreements between the selling stockholder and the broker-dealer.

 

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

 

We
are required to pay all fees and expenses incident to the registration of the shares, including fees and disbursements of counsel
to the selling stockholders, but excluding brokerage commissions or underwriter discounts.

 

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

 

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]