Document:

Exhibit
10.1

 

PLACEMENT
AGENT AGREEMENT

 

October 30, 2014

 

Acorn Energy, Inc.

3903 Centerville Road

Wilmington, DE 19807

 

Dear Mr. Moore:

 

This
Placement Agent Agreement (this “Agreement”) confirms the retention of Maxim Group LLC (“Maxim”
or the “Placement Agent”) by Acorn Energy, Inc., a Delaware corporation (the “Company”),
to act, on an exclusive basis, as the Company’s Placement Agent in connection with the proposed “best efforts”
private placement (the “Private Placement”) of shares (the “Shares”) of common stock,
par value $.01 per share, of the Company (the “Common Stock”), together with warrants (each a “Warrant”
and collectively, the “Warrants”) to purchase shares of Common Stock (the “Warrant Shares”)
at an exercise price equal to $1.30 per Warrant Share (the “Exercise Price”). The Shares and Warrants to be
sold in the offering are hereinafter collectively referred to as the “Securities”. The investors purchasing
Securities in connection with the financing contemplated hereunder are referred to herein each as an “Investor”
and collectively as the “Investors.”

 

		1.	PLACEMENT

 

(a)          The
Private Placement shall be a “best efforts” placement up to a maximum of $4.499 million (the “Private Placement
Maximum Amount”) of Shares and Warrants, at an offering price equal to $1.05 per Share and accompanying one half of
a Warrant (the “Purchase Price”). Each Share purchased by an Investor shall be accompanied by one half of a
Warrant. Each full Warrant will to allow an Investor to purchase an additional share of Common Stock. The Warrants shall terminate
five and one half years from their the date of issuance.

 

(b)          The
Placement Agent will, on an exclusive basis, conduct the Private Placement on a “best efforts” basis to accredited
investors only, as defined in Regulation D (as defined below). The Company shall conduct a closing (the “Closing”)
on a date subsequent to the date on which the Private Placement Maximum Amount is subscribed for by Investors and accepted by
the Company (the “Closing Date”). Unless terminated earlier in the Company’s sole discretion, the offering
period for the Private Placement (“Private Placement Offering Period”) will expire on the date on which the
Private Placement Maximum Amount is subscribed for and accepted by the Company at the Closing. The Closing shall be undertaken
in a manner agreed to by the Company and Placement Agent. Unless, as of or prior to the Closing Date all conditions of the Private
Placement have been satisfied by the Company and the Investors thereof, the Private Placement will be terminated and all subscription
proceeds will be returned to Investors without interest or deduction.

 

	Members
    NASD & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 2 of 31

 

(c)          The
Private Placement will be made pursuant to Subscription Documents (as defined in Section 2 below) to be entered into by the Investors.
The Securities will not be registered under the Securities Act of 1933, as amended, or any applicable successor statute (the “Securities
Act”), but will be issued in reliance on the private offering exemption available under Section 4(2) of the Securities
Act and the Rules and Regulations, as defined below, promulgated thereunder, including Regulation D (“Regulation D”).
The Placement Agent understands that all subscriptions for Shares and Warrants are subject to acceptance by the Company. The Company
reserves the right in its sole discretion to accept or reject any or all subscriptions for Securities, in whole or in part, regardless
whether any funds have been deposited into an escrow account. Any subscription monies received by Placement Agent from Investors
will be handled in accordance with Rule 15c2-4 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
whether or not Placement Agent is subject to the Exchange Act. As used herein, the term “Rules and Regulations”
means the applicable rules and regulations promulgated under the Securities Act and the Exchange Act.

 

(d)          Until
the Closing (as defined above) is held, all subscription funds received shall be held by American Stock Transfer & Trust Company
LLC (the “Escrow Agent”) pursuant to an Escrow Agreement dated October 23, 2014 by and among the Company, the
placement Agent and the Escrow Agent (the “Escrow Agreement”). The Placement Agent shall not have any independent
obligation to verify the accuracy or completeness of any information contained in any Subscription Documents or the authenticity,
sufficiency or validity of any check delivered by any prospective Investor in payment for the Shares and Warrants, nor shall Placement
Agent incur any liability with respect to any such verification or failure to verify, unless it had actual knowledge that any
information in the Subscription Documents was untrue. All subscription checks and funds shall be promptly and directly delivered
without offset or deduction to the Escrow Agent.

 

		2.	SUBSCRIPTION
                                         DOCUMENTS AND RELATED MATTERS

 

(a)          The
Placement Agent and its counsel and the Company and its counsel have or will jointly prepare a form of Securities Purchase Agreement
(the “Purchase Agreement”), a form of Warrant, a form of registration rights agreement (the “Registration
Rights Agreement, and together with the Purchase Agreement, the Warrant and the Escrow Agreement, the “Subscription
Documents”) setting forth the rights, privileges and restrictions granted to and imposed on the Securities and such
other documents required in connection with the Private Placement, which Subscription Documents shall contain such representations,
warranties, conditions and covenants as are customary in private placements of equity securities with United States accredited
investors. The Placement Agent and its counsel have had or will have an opportunity to review the final form of the Subscription
Documents prior to the distribution thereof to prospective Investors, and the Subscription Documents will be the only offering
documents (other than cover letters which may be used by the Placement Agent) shown to prospective Investors. The Placement Agent
and its counsel will advise the Company and its counsel in writing of those jurisdictions in which the Securities may be offered
and sold, and the Company agrees that it will prepare and file all required documentation in such jurisdictions that are reasonably
acceptable to the Company to qualify the Private Placement for an exemption from registration in such acceptable jurisdictions.
The Placement Agent further agrees that the Securities will be offered or sold only in such jurisdictions and in the manner specified
by the Company; provided, however, that to the extent that the Company has prepared and filed any of the required documentation
without assistance from the Placement Agent and its counsel, the Placement Agent shall not be responsible for independently verifying
such written advice with respect to the jurisdictions in which the Securities may be offered and sold and with respect to the
manner in which the Securities may be offered and sold in such jurisdictions. Notwithstanding the foregoing, the Placement Agent
shall determine whether it is licensed to offer and sell the Securities in each jurisdiction in which it intends to do so.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

	[tlogo]	Acorn Energy

    October 30, 2014

    Page 3 of 31

 

(b)          The
Private Placement will be made in accordance with the requirements of Section 4(2) under the Securities Act and/or Regulation
D only to investors that qualify as accredited investors, as defined in Rule 501(a) under the Securities Act (“Accredited
Investors”), purchasing for their own account for investment purposes only and not for distribution in violation of
securities laws. Furthermore, prospective Investors will have been provided access to the management of the Company and afforded
the opportunity to ask questions.

 

(c)          The
Company recognizes, agrees and confirms that the Placement Agent (or any selling agent permitted to be utilized by the Placement
Agent under Section 3(a) hereof): (i) will use and rely primarily on the information contained in the Subsciption Documents and
on information available from generally recognized public sources in performing the services contemplated by this Agreement without
having independently verified the same; (ii) is authorized, as the Company’s exclusive placement agent in connection with
the Private Placement, to transmit to any prospective Investor a copy or copies of the Subscription Documents and any other documentation
supplied to the Placement Agent for transmission to any prospective Investor by or on behalf of the Company or by any of the Company’s
officers, representatives or agents, in connection with the performance of the Placement Agent’s services hereunder or any
transaction contemplated hereby; (iii) does not assume responsibility for the accuracy or completeness of any information contained
in the Subscription Documents or any such other information (other than the information provided to the Company by Placement Agent
which relates to the Placement Agent and is contained within the Subscription Documents); (iv) will not make a formal appraisal
of the Company or any assets of the Company or the securities being offered by the Company in the Private Placement; and (v) retains
the right to continue to perform due diligence of the Company during the course of the Company’s engagement of the Placement
Agent. The Placement Agent agrees to keep all information (the “Information”) regarding the business and financial
condition of the Company furnished by the Company to the Placement Agent, and the Subscription Documents confidential and will
not make use thereof, except in connection with services hereunder for the Company, unless: (i) disclosure is required by law
or requested by any government, regulatory or self-regulatory agency or body; (ii) any such Information is or becomes generally
available to the public; or (iii) any Information was or became available to the Placement Agent on a non-confidential basis from
a source other than the Company or any of its representatives.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 4 of 31

 

		3.	PLACEMENT
                                         AGENT MATTERS

 

(a)          Subject
to the provisions of this Agreement and to the performance by the Company of all of its obligations to be performed hereunder,
the Placement Agent agrees to use its best efforts to assist in arranging for sales of the Shares and Warrants. The Company recognizes
that “best efforts” does not assure that the Private Placement will be consummated. It is understood and agreed that
this Agreement does not create any partnership, joint venture or other similar relationship between or among the Placement Agent
and the Company, and that the Placement Agent is acting only as a sales agent. The Company hereby agrees that, subject to the
Company’s prior approval, the Placement Agent shall have the right to utilize other selling broker-dealers in connection
with the Private Placement on terms approved by the Placement Agent.

 

(b)          For
the services of the Placement Agent hereunder, the Company will pay or caused to be paid to Placement Agent, at the Closing, (i)
a cash payment equal to 8.0% of the gross proceeds received by the Company from the sale of the Shares and Warrants, in lawful
money of the United States by check or wire transfer of immediately available funds, plus (ii) compensation warrants to purchase
a number of Shares equal to 5.0% of the Shares sold in the Private Placement (the “Placement Agent Warrants”).
The Placement Agent Warrants will be nonexercisable for six (6) months after the Closing Date and will expire five (5) years after
the Closing Date. The Placement Agent Warrants will be exercisable at a price per Share equal to $1.26.

 

(c)          Upon
receipt by the Company from a proposed Investor of completed Subscription Documents, and such other documents as the Company requests,
the Company will determine in its sole discretion whether it wishes to accept or reject the subscription.

 

		4.	PAYMENT
                                         BY COMPANY OF EXPENSES

 

The
Company will pay for all expenses in connection with the Private Placement, whether or not a Closing takes place, including, without
limitation: (i) the preparation, printing, reproduction, filing, distribution and mailing of all documents relating to the Private
Placement, including the fees and expenses of counsel to the Company, and the cost of all copies thereof; (ii) all fees and expenses
incurred by the Placement Agent in connection with the Private Placement up to a maximum of $50,000 for all such fees and expenses
(of which a maximum of $45,000 shall be for all such legal fees, disbursements and expenses); (iii) the issuance, sale, transfer
and delivery of the Shares and Warrants, including any transfer or similar taxes payable for the issuance thereof and the fees
of any transfer agent or registrar; and (iv) all Escrow Agent fees.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 5 of 31

 

		5.	TERMINATION
                                         OF PRIVATE PLACEMENT

 

The
Placement Agent’s engagement hereunder may be terminated: (i) on November 6, 2014 (the “Termination Date”),
or such earlier date as subscriptions for the Private Placement Maximum Amount have been accepted by the Company, provided however
that the Company reserves the right to reject subscriptions in whole or in part, for any or no reason; (ii) by the Company upon
giving written notice to the Placement Agent in the event that the Placement Agent shall be in material breach of any representation,
warranty or covenant made by it in this Agreement, provided the Placement Agent shall not have cured any such breach or alleged
breach within fifteen (15) days after receipt of written notice from the Company of any such breach, or (iii) by the Placement
Agent immediately upon giving written notice to the Company in the event during the course of the Placement Agent’s due
diligence it deems it necessary to terminate this Agreement, but, with respect to clause (iii), only in the event that:

 

(a)          the
Company shall be in material breach of any representation, warranty or covenant made by it in this Agreement, any Subscription
Document or any other document relating to the Private Placement, provided the Company shall not have cured any such breach or
alleged breach within fifteen (15) days after receipt of written notice from the Placement Agent of any such breach; or

 

(b)          (i)
any calamitous domestic or international event or act or occurrence has taken place and, in Placement Agent’s opinion, has
or will materially disrupt general securities markets in the United States in the immediate future; or (ii) if trading on the
New York Stock Exchange, the American Stock Exchange, NASDAQ Capital Market, or in the over-the-counter market shall have been
suspended for a period of 30 days or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices
for securities shall have been required on the over-the-counter market by the Financial Industry Regulator Authority Inc. (“FINRA”)
or by order of the SEC or any other government authority having jurisdiction; or (iii) if the United States shall have become
subject to an act of terrorism or involved in a war, major hostilities or the like; or (iv) if a banking moratorium has been declared
by a New York State or federal authority; or (v) if the Company shall have sustained a material loss, whether or not insured,
by reason of fire, flood, accident or other calamity; or (vi) if there shall have been such material adverse change in the conditions
or prospects of the Company; or (vii) if there shall have been such material adverse general market conditions as in the Placement
Agent’s reasonable judgment would make it inadvisable to proceed with the Private Placement or the sale or delivery of the
Securities.

 

Any
termination hereunder shall not affect the Company’s obligation to pay and reimburse the fees, expenses and reimbursements
accruing prior to such termination to the extent provided for in Section 4 of this Agreement. All such fees, expenses and reimbursements
due shall be paid to the Placement Agent on or before the Termination Date (in the event such fees, expenses and/or reimbursements
are earned or owed as of the Termination Date) or upon the Closing (in the event such fees, expenses and reimbursements are due
pursuant to the terms of Sections 3 or 4 hereof).

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 6 of 31

 

		6.	PRIVATE
                                         PLACEMENT OFFERING PERIOD; CLOSINGS

 

Subject
to the terms and conditions set forth herein, the Securities which are the subject of the Private Placement will be offered as
described in Section 1(b) hereof. Unless, as of or prior to the Termination Date all conditions of the Private Placement have
been satisfied by the Company and Investors thereof, the Private Placement will be terminated and all subscription proceeds will
be returned to Investors without interest thereon or deduction therefrom. At or promptly after the Closing, the Company shall
deliver instruments representing the Shares and Warrants to the Investors, duly executed by the Company, together with such other
closing documentation as may be required by Placement Agent in its reasonable discretion in order to effect the Closing to Placement
Agent.

 

		7.	REPRESENTATIONS,
                                         WARRANTIES AND COVENANTS OF THE COMPANY

 

The
Company hereby represents, warrants, covenants and agrees with and to Placement Agent: (i) as of the date hereof, and (ii) as
of the Closing Date, as follows.

 

(a)          Since
December 31, 2011, the Company has filed all reports, schedules, forms, statements or other documents required to be filed by
the Company under the Securities Act or the Exchange Act (the foregoing materials filed during such period, including the
exhibits thereto and documents incorporated by reference therein, the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension;
as of their respective filing or amendment dates, the SEC Reports complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated thereunder; and as of their respective filing or amendment
dates, the SEC Reports did not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(b)          Friedman,
LLP, whose reports relating to the Company are included in the SEC Reports, is an independent registered public accounting firm
as required by the Securities Act, the Exchange Act and the Rules and Regulations and, to the Company’s knowledge, such
accountants are not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”).

 

(c)          Except
as disclosed in the SEC Reports, since December 31, 2011: (i) the Company has not declared, paid or made any dividends or other
distributions of any kind on or in respect of its capital stock, and (ii) there has been no material adverse change (or, to the
knowledge of the Company, any development which has a high probability of involving a material adverse change in the future),
whether or not arising from transactions in the ordinary course of business, in or affecting: (A) the business, condition (financial
or otherwise), results of operations, shareholders’ equity, properties or prospects of the Company and its Subsidiaries
(as defined below), taken as a whole; (B) the long-term debt or capital stock of the Company or any of its Subsidiaries; or (C)
the offering or consummation of any of the other transactions contemplated by this Agreement (a “Material Adverse Change”).
Since the date of the latest balance sheet presented in the SEC Reports, neither the Company nor any Subsidiary has incurred or
undertaken any liabilities or obligations, whether direct or indirect, liquidated or contingent, matured or unmatured, or entered
into any transactions, including any acquisition or disposition of any business or asset, which are material to the Company and
the Subsidiaries taken as a whole, except for liabilities, obligations and transactions which are disclosed in the SEC Reports.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 7 of 31

 

(d)          Except
as set forth in the Purchase Agreement and the disclosure schedules thereto (“Disclosure Schedule”), the authorized,
issued and outstanding shares of capital stock of the Company were as set forth in the SEC Reports. Except as disclosed in the
SEC Reports or the Disclosure Schedule, neither the Company nor any Subsidiary has outstanding warrants, options to purchase,
or any preemptive rights or other rights to subscribe for or to purchase, or any contracts or commitments to issue or sell, any
Relevant Security (as defined below). All of the issued and outstanding shares of capital stock of the Company, including the
outstanding Common Stock and warrants of the Company, are fully paid and non-assessable and have been duly and validly authorized
and issued, in compliance with all applicable state, federal and foreign securities laws and not in violation of or subject to
any preemptive or similar right that does or will entitle any Person (as defined below), upon the issuance or sale of any security,
to acquire from the Company or any Subsidiary any Relevant Security, except for any adjustments to the exercise price and the
number of shares of Common Stock underlying certain warrants issued to certain warrant holders which contain anti-dilutive protections.
As used herein, the term “Relevant Security” means any shares of Common Stock or other security of the Company
or any Subsidiaries that is convertible into, or exercisable or exchangeable for shares of Common Stock or equity securities,
or that holds the right to acquire any shares of Common Stock or equity securities of the Company or any Subsidiary or any other
such Relevant Security. As used herein, the term “Person” means any foreign or domestic individual, corporation,
trust, partnership, joint venture, limited liability company or other entity.

 

(e)          The
Shares, the Warrants, the Placement Agent Warrants and the shares of Common Stock issuable upon exercise of the Placement Agent
Warrants have been duly authorized and reserved for issuance and, when issued and paid for, will be duly and validly issued, fully
paid and non-assessable, and will have been issued in compliance with all applicable state, federal and foreign securities laws
and will not have been issued in violation of or subject to any preemptive or similar right that does or will entitle any Person
to acquire any Relevant Security from the Company or any Subsidiaries upon issuance or sale of the Securities in the offering.
When issued, the Warrants and the Placement Agent Warrants will each constitute valid and binding obligations of the Company to
issue and sell, upon exercise thereof and payment of the respective exercise prices therefor, the number and type of securities
of the Company called for thereby in accordance with the terms thereof and such Warrants and Placement Agent Warrants are enforceable
against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally; (ii) as enforceability of any indemnification
or contribution provision may be limited under foreign, federal and state securities laws; and (iii) that the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion
of the court before which any proceeding therefor may be brought.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 8 of 31

 

(f)          The
Warrant Shares and the Shares issuable upon exercise of the Placement Agent Warrants are duly authorized for issuance and will,
upon exercise of the Warrants or the Placement Agent Warrants, as the case may be, and payment of the exercise price thereof,
be duly and validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to preemptive
or similar rights to subscribe for or purchase securities of the Company. The issuance of such securities is not subject to any
statutory preemptive rights under the laws of the State of Delaware or the Company’s organization documents as in effect
at the time of issuance, rights of first refusal or other similar rights of any security holder of the Company (except for such
preemptive or contractual rights as were waived).

 

(g)          
Except for the subsidiaries within the meaning of Rule 405 under the Securities Act set forth in the SEC Reports (the “Subsidiaries”),
the Company holds no ownership or other interest, nominal or beneficial, direct or indirect, in any corporation, partnership,
joint venture or other business entity. All of the issued and outstanding shares of capital stock of the Subsidiaries have been
duly and validly authorized and issued and are fully paid and non-assessable and, except as otherwise disclosed in the SEC Reports
and/or the Disclosure Schedules, are owned directly by the Company, free and clear of any lien, charge, mortgage, pledge, security
interest, claim, equity, trust or other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever (any
“Lien”). Except as otherwise disclosed in the SEC Reports, no director, officer or key employee of the Company
holds any direct equity, debt or other pecuniary interest in the Subsidiaries or any Person with whom the Company or any Subsidiary
does any material business or is in privity of contract with, other than, in each case, indirectly through the ownership by such
individuals of shares of Common Stock or ownership of less than 1% of the outstanding equity securities of such Person.

 

(h)          Each
of the Company and the Subsidiaries has been duly incorporated, formed or organized, and validly exists as a corporation, partnership
or limited liability company in good standing under the laws of its jurisdiction of incorporation, formation or organization.
Each of the Company and the Subsidiaries has all requisite power and authority to carry on its respective business as it is currently
being conducted and as described in the SEC Reports, and to own, lease and operate its respective properties. Each of the Company
and the Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation, partnership or limited
liability company in each jurisdiction in which the character or location of its properties (owned, leased or licensed) or the
nature or conduct of its business makes such qualification necessary, except, in each case, for those failures to be so qualified
or in good standing which (individually and in the aggregate) would not reasonably be expected to have a material adverse effect
on: (i) the business, condition (financial or otherwise), results of operations, shareholders’ equity, properties or prospects
of the Company and the Subsidiaries, taken as a whole; (ii) the long-term debt or capital stock of the Company or any Subsidiary;
or (iii) the offering or consummation of any of the other transactions contemplated by this Agreement (any such effect being a
“Material Adverse Effect”).

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 9 of 31

 

(i)          None
of the Company or the Subsidiaries: (i) is in violation of its certificate or articles of incorporation, memorandum and articles
of association, by-laws, certificate of formation, limited liability company agreement, joint venture agreement, partnership agreement
or other organizational documents, (ii) is in default under, and no event has occurred which, with notice or lapse of time or
both, would constitute a default under or result in the creation or imposition of any Lien upon any of its property or assets
pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or
by which it is bound or to which any of its property or assets is subject, or (iii) is in violation in any respect of any law,
rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or governmental agency
or body, foreign or domestic, except in the case of clauses (ii) and (iii) where such violation or default, as the case may be,
would not have or reasonably be expected to result in a Material Adverse Effect.

 

(j)          The
Company has full right, power and authority to execute and deliver this Agreement, the Placement Agent Warrants, the Subscription
Documents and all other agreements, documents, certificates and instruments required to be delivered pursuant to this Agreement
and the Subscription Documents. The Company has duly and validly authorized this Agreement, the Placement Agent Warrants and the
Subscription Documents and each of the transactions contemplated thereby. This Agreement, the Placement Agent Warrants and the
Subscription Documents have been duly and validly executed and delivered by the Company and constitute the legal, valid and binding
obligations of the Company and are enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

(k)          The
execution, delivery, and performance of this Agreement, the Placement Agent Warrants, the Subscription Documents and all other
agreements, documents, certificates and instruments required to be delivered pursuant to this Agreement, the Placement Agent Warrants
and the Subscription Documents, and consummation of the transactions contemplated by this Agreement, the Placement Agent Warrants
and the Subscription Documents, do not and will not: (i) conflict with, require consent under or result in a breach of any of
the terms and provisions of, or constitute a default (or an event which with notice or lapse of time, or both, would constitute
a default) under, or result in the creation or imposition of any Lien upon any property or assets of the Company or any Subsidiary
pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement, instrument, franchise, license or permit
to which the Company or any Subsidiaries is a party or by which the Company or any Subsidiary or their respective properties,
operations or assets may be bound or (ii) violate or conflict with any provision of the certificate or articles of incorporation,
by-laws, certificate of formation, limited liability company agreement, partnership agreement or other organizational documents
of the Company or any Subsidiaries, or (iii) violate or conflict with any law, rule, regulation, ordinance, directive, judgment,
decree or order of any judicial, regulatory or other legal or governmental agency or body, domestic or foreign, except in the
case of subsections (i) and (iii) for any default, conflict or violation that would not have or reasonably be expected to have
a Material Adverse Effect.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 10 of 31

 

(m)          Except
as disclosed in the SEC Reports, each of the Company and the Subsidiaries has all consents, approvals, authorizations, orders,
registrations, qualifications, licenses, filings and permits of, with and from all judicial, regulatory and other legal or governmental
agencies and bodies and all third parties, foreign and domestic (collectively, the “Consents”), required to
own, lease and operate its properties and conduct its business as it is now being conducted and as disclosed in the SEC Reports,
and each such Consent is valid and in full force and effect, except where such failure would not have or reasonably be expected
to result in a Material Adverse Effect. Neither the Company nor any Subsidiary has received notice of any investigation or proceedings
which results in or, if decided adversely to the Company or any Subsidiary, could reasonably be expected to result in, the revocation
of, or imposition of a materially burdensome restriction on, any Consent. No Consent contains a materially burdensome restriction.

 

(n)          Each
of the Company and the Subsidiaries is in compliance with all applicable laws, rules, regulations, ordinances, directives, judgments,
decrees and orders, foreign and domestic, except for any non-compliance the consequences of which would not have or reasonably
be expected to have a Material Adverse Effect. Neither the Company, nor any of its Affiliates (within the meaning of Rule 144
under the Securities Act) (“Affiliates”) has received any notice or other information from any regulatory or
other legal or governmental agency which could reasonably be expected to result in any default or potential decertification by
the Company, or any of its Subsidiaries. 

 

(o)          No
Consent of, with or from any judicial, regulatory or other legal or governmental agency or body or any third party, foreign or
domestic is required for the execution, delivery and performance by the Company of this Agreement, the Placement Agent Warrants
or the Subscription Documents or the Company’s consummation of each of the transactions contemplated by this Agreement,
the Placement Agent Warrants and the Subscription Documents, including the issuance, sale and delivery of the Securities to be
issued, sold and delivered hereunder, except for the registration under the Securities Act of the Warrant Shares, and such Consents
as may be required under state securities or blue sky laws or the by-laws and rules of the NASDAQ Capital Market.

 

(p)          Except
as disclosed in the Subscription Documents or the SEC Reports, there is no judicial, regulatory, arbitral or other legal or governmental
proceeding or other litigation or arbitration, domestic or foreign, pending to which the Company or any Subsidiary is a party
or of which any property, operations or assets of the Company or any Subsidiaries is the subject which, individually or in the
aggregate, if determined adversely to the Company or any Subsidiary, would reasonably be expected to have a Material Adverse Effect.
To the Company’s knowledge, no such proceeding, litigation or arbitration is threatened or contemplated.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 11 of 31

 

(q)          The
financial statements, including the notes thereto, and the supporting schedules included in the SEC Reports comply in all material
respects with the requirements of the Securities Act and the Exchange Act, and present fairly the financial position as of the
dates indicated and the cash flows and results of operations for the periods specified of the Company and its consolidated Subsidiaries.
Except as otherwise stated in the SEC Reports, said financial statements have been prepared in conformity with United States generally
accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved, except
in the case of unaudited financials which are subject to normal year end adjustments and do not contain certain footnotes. The
supporting schedules included in the SEC Reports present fairly the information required to be stated therein. No other financial
statements or supporting schedules are required to be included or incorporated by reference in the SEC Reports. The other financial
and statistical information included in the SEC Reports present fairly the information included therein and, except for the financial
projections provided in the SEC Reports, have been prepared on a basis consistent with that of the financial statements that are
included in the SEC Reports and the books and records of the respective entities presented therein.

 

(r)          The
Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange
Act) and such controls and procedures are effective in ensuring that material information relating to the Company, including its
Subsidiaries, is made known to the principal executive officer and the principal financial officer. The Company has utilized such
controls and procedures in preparing and evaluating the disclosures in the SEC Reports.

 

(s)          Except
as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific
authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP
and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s general
or specific authorization; and (D) the recorded accountability for assets is compared with existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Except as described in the SEC Reports, since December 31, 2011,
there has been no change in the Company’s internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

(t)          Neither
the Company nor any of its Affiliates has taken, directly or indirectly, any action which constitutes or is designed to cause
or result in, or which could reasonably be expected to constitute, cause or result in, the stabilization or manipulation of the
price of any security to facilitate the sale or resale of the Securities.

 

(v)         Neither
the Company nor any of its Affiliates has, prior to the date hereof, made any offer or sale of any securities which are required
to be “integrated” pursuant to the Securities Act or the Rules and Regulations with the offer and sale of the Securities
pursuant to the Private Placement. Except as disclosed in the SEC Reports, neither the Company nor any of its Affiliates has sold
in connection with the issuance of, or issued, any Relevant Security during the six-month period preceding the Closing Date, including
but not limited to any sales pursuant to Rule 144A or Regulation D or Regulation S under the Securities Act, other than shares
of Common Stock issued pursuant to employee benefit plans, qualified stock option plans or employee compensation plans or pursuant
to outstanding options, rights or warrants as described in the SEC Reports.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 12 of 31

 

(w)          No
director or officer of the Company is subject to any non-competition agreement or non-solicitation agreement with any employer
or prior employer which could materially affect his ability to be and act in his respective capacity of the Company.

 

(x)          The
Company is not and, at all times up to and including consummation of the transactions contemplated by this Agreement and the Subscription
Documents, and after giving effect to application of the net proceeds of the Private Placement, will not be, subject to registration
as an “investment company” under the Investment Company Act of 1940, as amended, and is not and will not be an entity
“controlled” by an “investment company” within the meaning of such act.

 

(y)          No
relationship, direct or indirect, exists between or among any of the Company or any Affiliate of the Company, on the one hand,
and any director, officer, shareholder, customer or supplier of the Company or any Affiliate of the Company, on the other hand,
which is required by the Securities Act, the Exchange Act or the Rules and Regulations to be described in the SEC Reports, which
is not so described as required. There are no outstanding loans, advances (except normal advances for business expenses in the
ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors
of the Company or any of their respective family members, except as described in the SEC Reports. The Company has not, in violation
of the Sarbanes-Oxley, directly or indirectly, including through a Subsidiary (other than as permitted under the Sarbanes-Oxley
for depositary institutions), extended or maintained credit, arranged for the extension of credit, or renewed an extension of
credit, in the form of a personal loan to or for any director or executive officer of the Company.

 

(z)          The
Company is in material compliance with the provisions of Sarbanes-Oxley and the Rules and Regulations promulgated thereunder and
related or similar rules and regulations promulgated by the Nasdaq Stock Market or any other governmental or self-regulatory entity
or agency, except for such violations which, singly or in the aggregate, would not have a Material Adverse Effect. Without limiting
the generality of the foregoing: (i) all members of the Company’s board of directors who are required to be “independent”
(as that term is defined under applicable laws, rules and regulations), including, without limitation, all members of the audit
committee of the Company’s board of directors, meet the qualifications of independence as set forth under applicable laws,
rules and regulations and (ii) the audit committee of the Company’s board of directors has at least one member who is an
“audit committee financial expert” (as that term is defined under applicable laws, rules and regulations).

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 13 of 31

 

(aa)         Except
for this Agreement, there are no contracts, agreements or understandings between the Company and any Person that would give rise
to a valid claim against the Company or the Placement Agent for a brokerage commission, finder’s fee or other like payment
in connection with the transactions contemplated by this Agreement or, to the Company’s knowledge, any arrangements, agreements,
understandings, payments or issuance with respect to the Company or any of its officers, directors, shareholders, partners, employees,
Subsidiaries or Affiliates that may affect the Placement Agent’s compensation.

 

(bb)         The
Company and the Subsidiaries own or lease all such properties as are necessary to the conduct of its business as presently operated
and as proposed to be operated as described in the SEC Reports. The Company and the Subsidiaries have good and marketable title
in fee simple to all real property and good and marketable title to all personal property owned by them, in each case free and
clear of all Liens except such as are described in the SEC Reports or such as do not (individually or in the aggregate) materially
affect the business or prospects of the Company or the Subsidiaries. Any real property and buildings held under lease or sublease
by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are
not material to, and do not interfere with, the use made and proposed to be made of such property and buildings by the Company
and the Subsidiaries. Neither the Company nor the Subsidiaries has received any notice of any claim adverse to its ownership of
any real or personal property or of any claim against the continued possession of any real property, whether owned or held under
lease or sublease by the Company or the Subsidiaries.

 

(cc)         The
Company and the Subsidiaries: (i) own or possess adequate right to use all patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations, copyrights, licenses, formulae, customer lists, and know-how
and other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures, “Intellectual Property”) necessary for the conduct of their respective
businesses as being conducted and as described in the SEC Reports and (ii) have no knowledge that the conduct of their respective
businesses do or will conflict with, and they have not received any notice of any claim of conflict with, any such right of others.
Except as set forth in the SEC Reports, neither the Company nor any Subsidiary has granted or assigned to any other Person any
right to sell the current products and services of the Company and its Subsidiaries or those products and services described in
the SEC Reports. To the Company’s best knowledge, there is no infringement by third parties of any such Intellectual Property;
there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the
Company’s or any Subsidiary’s rights in or to any such Intellectual Property, and the Company is unaware of any facts
which would form a reasonable basis for any such claim; there is no pending or, to the Company’s knowledge, threatened action,
suit, proceeding or claim by others that the Company or any Subsidiary infringes or otherwise violates any patent, trademark,
copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would form a
reasonable basis for any such claim.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 14 of 31

 

(dd)         The
agreements and documents described in the SEC Reports conform in all material respects to the descriptions thereof contained therein
and there are no agreements or other documents required to be filed with the Securities and Exchange Commission (the “Commission”)
as exhibits to the SEC Reports that have not been so described or filed. Each agreement or other instrument (however characterized
or described) to which the Company is a party or by which its property or business is or may be bound or affected and (i) that
is referred to in the SEC Reports or attached as an exhibit thereto, or (ii) is material to the Company’s business, has
been duly and validly executed by the Company, is in full force and effect in all material respects and is enforceable against
the Company and, to the Company’s knowledge, the other parties thereto, in accordance with its terms, except (x) as such
enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally,
(y) as enforceability of any indemnification or contribution provision may be limited under the foreign, federal and state securities
laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the
equitable defenses and to the discretion of the court before which any proceeding therefor may be brought, and none of such agreements
or instruments has been assigned by the Company, and neither the Company nor, to the Company’s knowledge, any other party
is in breach or default thereunder and, to the Company’s knowledge, no event has occurred that, with the lapse of time or
the giving of notice, or both, would constitute a breach or default thereunder. To the Company’s knowledge, performance
by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable
law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction
over the Company or any of its assets or businesses, including, without limitation, those relating to environmental laws and regulations,
except for such violations which, singly or in the aggregate, would not have a Material Adverse Effect.

 

(ee)         No
securities of the Company have been sold by the Company for the three years preceding the date hereof, except as disclosed in
the SEC Reports, and no securities of the Company have been sold by or on behalf of, or for the benefit of, any person or persons
controlling, controlled by, or under common control with the Company, except as disclosed in any Section 16 reports filed with
respect to such persons.

 

(ff)         The
disclosures in the SEC Reports concerning the effects of foreign, federal, state and local regulation on the Company’s business
as currently contemplated are correct in all material respects and do not omit to state a material fact necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading.

 

(gg)         Each
of the Company and the Subsidiaries has accurately prepared and filed all federal, state, foreign and other tax returns that are
required to be filed by it and has paid or made provision for the payment of all taxes, assessments, governmental or other similar
charges, including without limitation, all sales and use taxes and all taxes which the Company or any Subsidiary is obligated
to withhold from amounts owing to employees, creditors and third parties, with respect to the periods covered by such tax returns
(whether or not such amounts are shown as due on any tax return). No deficiency assessment with respect to a proposed adjustment
of the Company’s or any Subsidiary’s federal, state, local or foreign taxes is pending or, to the Company’s
knowledge, threatened. The accruals and reserves on the books and records of the Company and the Subsidiaries in respect of tax
liabilities for any taxable period not finally determined are adequate to meet any assessments and related liabilities for any
such period and, since the date of the Company’s most recent audited financial statements, the Company and the Subsidiaries
have not incurred any liability for taxes other than in the ordinary course of its business. There is no tax lien, whether imposed
by any federal, state, foreign or other taxing authority, outstanding against the assets, properties or business of the Company
or any Subsidiary.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 15 of 31

 

(hh)         No
labor disturbance by the employees of the Company or the Subsidiaries currently exists or, to the Company’s knowledge, is
likely to occur. Neither the Company nor the Subsidiaries is in material breach of the terms of any collective bargaining agreement
to which it is a party.

 

(ii)         Intentionally
Omitted

 

(jj)         The
Company and each of its Subsidiaries are in compliance in all material respects with the applicable requirements of the U.S. Federal
Trade Commission (the “FTC”) and equivalent foreign commissions and agencies governing advertising, product
promotion and with other applicable provisions of federal, state, local and other U.S. and foreign laws and regulations applicable
to their businesses as presently conducted.

 

(kk)         Except
as disclosed in the SEC Reports, the Company and the Subsidiaries have at all times operated their respective businesses in material
compliance with all Environmental Laws, and no material expenditures are or will be required in order to comply therewith. Neither
the Company nor any Subsidiary has received any notice or communication that relates to or alleges any actual or potential violation
or failure to comply with any Environmental Laws that will result in a Material Adverse Effect. As used herein, the term “Environmental
Laws” means all applicable laws and regulations, including any licensing, permits or reporting requirements, and any
action by a federal state or local government entity pertaining to the protection of the environment, protection of public health,
protection of worker health and safety, or the handling of hazardous materials, including without limitation, the Clean Air Act,
42 U.S.C. § 7401, et seq., the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §
9601, et seq., the Federal Water Pollution Control Act, 33 U.S.C. § 1321, et seq., the Hazardous Materials Transportation
Act, 49 U.S.C. § 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 690-1, et seq., and the Toxic
Substances Control Act, 15 U.S.C. § 2601, et seq.

 

(ll)         Except
as set forth in the SEC Reports, neither the Company nor any Subsidiary is a party to an “employee benefit plan,”
as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”) which: (i) is subject
to any provision of ERISA and (ii) is or was at any time maintained, administered or contributed to by the Company or any Subsidiary
and covers any employee or former employee of the Company or any Subsidiary or any ERISA Affiliate (as defined hereafter). These
plans are referred to collectively herein as the “Employee Plans.” For purposes of this Section, “ERISA
Affiliate” of any person or entity means any other person or entity which, together with that person or entity, could
be treated as a single employer under Section 414(m) of the Internal Revenue Code of 1986, as amended (the “Code”),
or is an “affiliate,” whether or not incorporated, as defined in Section 407(d)(7) of ERISA, of the person or entity.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 16 of 31

 

(mm)         The
SEC Reports identify each employment, severance or other similar agreement, arrangement or policy and each material plan or arrangement
providing for insurance coverage (including any self-insured arrangements), workers’ compensation, disability benefits,
severance benefits, supplemental unemployment benefits, vacation benefits, retirement benefits or for deferred compensation, profit-sharing,
bonuses, stock options, stock appreciation or other forms of incentive compensation, or post-retirement insurance, compensation
or benefits which: (i) is not an Employee Plan, (ii) is entered into, maintained or contributed to, as the case may be, by the
Company or any Subsidiary or any of their respective ERISA Affiliates, and (iii) covers any officer or director or former officer
or director of the Company or any Subsidiary or any of their respective ERISA Affiliates. These contracts, plans and arrangements
are referred to collectively in this Agreement as the “Benefit Arrangements.” Each Benefit Arrangement has
been maintained in substantial compliance with its terms and with requirements prescribed by any and all statutes, orders, rules
and regulations that are applicable to that Benefit Arrangement.

 

(nn)         Except
as set forth in the SEC Reports or for which disclosure is not required to be disclosed in the SEC Reports, there is no liability
in respect of post-retirement health and medical benefits for retired employees of the Company or any Subsidiary or any of their
respective ERISA Affiliates other than medical benefits required to be continued under applicable law, determined using assumptions
that are reasonable in the aggregate, over the fair market value of any fund, reserve or other assets segregated for the purpose
of satisfying such liability (including for such purposes any fund established pursuant to Section 401(h) of the Code). With respect
to any of the Company’s or any Subsidiary’s Employee Plans which are “group health plans” under Section
4980B of the Code and Section 607(1) of ERISA, there has been material compliance with all requirements imposed there under such
that the Company or any Subsidiary or their respective ERISA Affiliates have no (and will not incur any) loss, assessment, tax
penalty, or other sanction with respect to any such plan.

  

(oo)         Except
as set forth in the SEC Reports, neither the Company nor any Subsidiary is a party to or subject to any employment contract or
arrangement providing for annual future compensation, or the opportunity to earn annual future compensation (whether through fixed
salary, bonus, commission, options or otherwise) of more than $120,000 to any named executive officer or director.

 

(pp)         The
execution of this Agreement, the Subscription Documents, the Placement Agent Warrant, or consummation of the Private Placement
does not constitute a triggering event under any Employee Plan or any other employment contract, whether or not legally enforceable,
which (either alone or upon the occurrence of any additional or subsequent event) will or may result in any payment (of severance
pay or otherwise), acceleration, increase in vesting, or increase in benefits to any current or former participant, employee or
director of the Company or any Subsidiary other than an event that is not material to the financial condition or business of the
Company or any Subsidiary, either individually or taken as a whole.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 17 of 31

 

(qq)         No
“prohibited transaction” (as defined in either Section 406 of the ERISA or Section 4975 of Code), “accumulated
funding deficiency” (as defined in Section 302 of ERISA) or other event of the kind described in Section 4043(b) of ERISA
(other than events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred
with respect to any employee benefit plan for which the Company or any Subsidiary would have any liability; each employee benefit
plan of the Company or any Subsidiary is in compliance in all material respects with applicable law, including (without limitation)
ERISA and the Code; the Company has not incurred and does not expect to incur liability under Title IV of ERISA with respect to
the termination of, or withdrawal from any “pension plan”; and each employee benefit plan of the Company or any Subsidiary
that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action
or by failure to act, which could cause the loss of such qualification.

 

(rr)         Neither
the Company, any Subsidiary nor, to the Company’s knowledge, any of their respective employees or agents has at any time
during the last five (5) years: (i) made any unlawful contribution to any candidate for foreign office, or failed to disclose
fully any contribution in violation of law, or (ii) made any payment to any federal or state governmental officer or official
or other Person charged with similar public or quasi-public duties, other than payments that are not prohibited by the laws of
the United States of any jurisdiction thereof.

 

(ss)         The
Company has not offered, or caused the Placement Agent to offer, the Securities to any Person or entity with the intention of
unlawfully influencing: (i) a customer or supplier of the Company or any Subsidiary to alter the customer’s or supplier’s
level or type of business with the Company or any Subsidiary or (ii) a journalist or publication to write or publish favorable
information about the Company, any Subsidiary or its products or services.

 

(tt)         As
of the date hereof and as of the Closing Date, and except as contemplated by this Agreement, neither the Company nor any Subsidiary
operates within the United States or any state or territory thereof in such a manner so as to violate any of the following laws:
(i) the Bank Secrecy Act, as amended, (ii) the Uniting and Strengthening of America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, as amended, (iii) the Foreign Corrupt Practices Act of 1977, as amended, (iv) the
Currency and Foreign Transactions Reporting Act of 1970, as amended, (v) the Employee Retirement Income Security Act of 1974,
as amended, (vi) the Money Laundering Control Act of 1986, as amended, (vii) the rules and regulations promulgated under any such
law, or any successor law, or any judgment, decree or order of any applicable administrative or judicial body relating to such
law, and (viii) any corresponding law, rule, regulation, ordinance, judgment, decree or order of any state or territory of the
United States or any administrative or judicial body thereof.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 18 of 31

 

(uu)         The
operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
record keeping and reporting requirements and money laundering statutes of the United States and, to the Company’s knowledge,
all other jurisdictions to which the Company and its Subsidiaries are subject, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency (collectively,
the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws
is pending or, to the best knowledge of the Company, threatened.

 

(vv)         Neither
the Company nor, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the Private Placement, or lend, contribute or otherwise make
available such proceeds to any joint venture partner or other person or entity, for the purpose of financing the activities of
any person currently subject to any U.S. sanctions administered by OFAC.

 

(ww)       There are no claims, payments, arrangements, agreements or understandings relating to the payment of a finder’s, consulting
or origination fee by the Company or any officer director or stockholder of the Company (each, an “Insider”)
with respect to the sale of the Securities hereunder. Except as described in the SEC Reports, the Company has not made any direct
or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s fee, consulting fee or otherwise,
in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital
to the Company; (ii) to any FINRA member; or (iii) to any person or entity that has any direct or indirect affiliation or association
with any FINRA member, within the 180 days prior to the date hereof. None of the net proceeds of the Private Placement will be
paid by the Company to any participating FINRA member or its affiliates, except as specifically authorized herein. No officer,
director or beneficial owner of 5% or more of the Company’s Common Stock (any such individual or entity, a “Company
Affiliate”) or, to the Company’s knowledge, any beneficial owner of the Company’s securities other than
Company Affiliates (whether debt or equity, registered or unregistered, regardless of the time acquired or the source from which
derived) (any such non-Company Affiliate, a “Beneficial Owner”) has any direct or indirect affiliation or association
with any FINRA member (as determined in accordance with the rules and regulations of FINRA); no Company Affiliate, and to the
Company’s knowledge, no Beneficial Owner, is an owner of stock or other securities of any member of FINRA (other than securities
purchased on the open market); no Company Affiliate, and to the Company’s knowledge, no Beneficial Owner, has made a subordinated
loan to any member of FINRA; and no proceeds from the sale of Securities (excluding Placement Agent commissions) will be paid
to any FINRA member, or any persons associated with or affiliated with any member of FINRA. No person to whom securities of the
Company have been privately issued within the 180-day period prior to the date hereof has any relationship or affiliation or association
with any member of FINRA; and no FINRA member participating in the offering has a conflict of interest with the Company. For this
purpose, a “conflict of interest” exists when a member of FINRA and/or its associated persons, parent or affiliates
in the aggregate beneficially own 10% or more of the Company’s outstanding subordinated debt or common equity, or 10% or
more of the Company’s preferred equity. “FINRA member participating in the offering” includes any associated
person of a FINRA member that is participating in the Private Placement, any member of such associated person’s immediate
family and any affiliate of a FINRA member that is participating in the Private Placement. 

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 19 of 31

 

(xx)        None
of the Company or their respective directors or officers or, to the best knowledge of the Company, any agent, employee, affiliate
or other person acting on behalf of the Company has engaged in any activities sanctionable under the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010, the Iran Sanctions Act of 1996, the National Defense Authorization Act for Fiscal
Year 2012, the Iran Threat Reduction and Syria Human Rights Act of 2012 or any Executive Order relating to any of the foregoing
(collectively, and as each may be amended from time to time, the “Iran Sanctions”); and the Company will not
directly or indirectly use the proceeds of the Private Placement, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of engaging in any activities sanctionable
under the Iran Sanctions.

 

(yy)         As
used in this Agreement, references to matters being “material” with respect to the Company or its Subsidiaries
shall mean a material event, change, condition, status or effect related to the condition (financial or otherwise), properties,
assets (including intangible assets), liabilities, business, prospects, operations or results of operations of the Company or
the Subsidiaries, either individually or taken as a whole, as the context requires.

 

(zz)         As
used in this Agreement, the term “knowledge of the Company” (or similar language) shall mean the knowledge
of the officers and directors of the Company and the Subsidiaries who are named in the SEC Reports, with the assumption that,
in the case of officers, such officers shall have made reasonable and diligent inquiry of the matters presented (with reference
to what is customary and prudent for the applicable individuals in connection with the discharge by the applicable individuals
of their duties as officers of the Company or the Subsidiaries).

 

(aaa)        The
Company will not offer the Securities for sale hereunder on the basis of any communications or documents relating to the Placement
Agent or the Securities except the Subscription Documents and the exhibits thereto and documents described or referred to therein
and other communications containing information that does not conflict with the information contained in the Subscription Documents.

 

(bbb)        The
Company will utilize the proceeds in the Private Placement for working capital.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 20 of 31

 

(ccc)        In
addition to the foregoing, to the extent not set forth herein, the Placement Agent may rely on the representations and warranties
made by the Company in the Purchase Agreement provided by the Company and used in connection with the Private Placement.

 

		8.	REPRESENTATIONS,
                                         WARRANTIES AND COVENANTS OF THE PLACEMENT AGENT

 

The
Placement Agent hereby represents and warrants to, and covenants with, the Company that:

 

(a)          This
Agreement, the Escrow Agreement and all other documents to be entered into by Placement Agent in connection with the transactions
described in the Subscription Documents have been duly authorized, executed and delivered by Placement Agent and constitute the
legal, valid and binding obligation of Placement Agent, enforceable against it in accordance with its terms, except insofar as
enforcement of the indemnification or contribution provisions hereof may be limited by applicable laws or principles of public
policy and subject, as to enforcement, to the availability of equitable remedies and limitations imposed by bankruptcy, insolvency,
reorganization and other similar laws and related court decisions relating to or affecting creditors’ rights generally.

 

(b)          Placement
Agent will cooperate with the Company to ensure that the offering and sale of the Securities will comply with the requirements
of the Securities Act, including, without limitation, the general conditions contained in Regulation D and the federal securities
laws, and will follow the reasonable advice of the Company with respect to the manner in which to offer and sell the Securities
so as to ensure that the offering and sale thereof will comply with the securities laws of any jurisdiction in which Securities
are offered by the Placement Agent, and the Placement Agent will not make an offer of Securities in any jurisdiction in which
the Company advises it in writing that such offer would be unlawful for the Placement Agent to offer or sell securities.

 

(c)          The
Placement Agent is: (i) a registered broker-dealer under the Exchange Act; (ii) a member in good standing of the FINRA; and (iii)
registered as a broker-dealer in each jurisdiction in which it is required to be registered as such in order to offer and sell
the Securities in such jurisdiction.

 

(d)          The
Placement Agent has not and will not make an offer of Securities (or of any securities, the offering of which may be integrated
with the Private Placement) on the basis of any communications or documents relating to the Company or the Securities except the
Subscription Documents and the exhibits thereto and documents described, referred to or incorporated by reference therein.

 

(e)          The
Placement Agent will not transmit to the Company any written offer from an offeree to purchase Securities unless, immediately
prior thereto, it reasonably believes that: (i) the offeree is an Accredited Investor; and (ii) the offeree meets all other offeree
and/or purchaser suitability standards, if any, required under applicable securities laws and regulations.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

	[tlogo]	Acorn Energy

    October 30, 2014

    Page 21 of 31

 

(f)          The
Placement Agent will notify the Company of the jurisdictions in which the Securities are being offered by it or will be offered
by it pursuant to this Agreement, and will notify the Company of the status of the offering conducted pursuant to this Agreement.

 

(g)          The
Placement Agent is duly organized and validly existing and in good standing as a limited liability company under the laws of the
State of New York, with full power and authority to perform its obligations under this Agreement.

 

(h)          No
consent, approval, authorization or order of any court or governmental authority or agency is required for the performance by
the Placement Agent of its obligations under this Agreement, other than those that have been previously obtained by the Placement
Agent.

 

		9.	COVENANTS

 

(a)          The
Company covenants to the Placement Agent that it shall:

 

(i)          Notify
the Placement Agent as soon as practicable, and confirm such notice promptly in writing of the receipt of any notification with
respect to the modification, rescission, withdrawal or suspension of the qualification or registration of the Securities or of
an exemption from such registration or qualification in any jurisdiction. The Company will use reasonable efforts to prevent the
issuance of any such modification, rescission, withdrawal or suspension and, if any such modification, rescission, withdrawal
or suspension is issued, to obtain the lifting thereof as promptly as possible.

 

(ii)         Not,
directly or indirectly, in connection with the Private Placement or as otherwise agreed to in this Agreement, accept any offer
to buy from, or sell to, any person or entity any Securities except through the Placement Agent.

 

(iii)        Not
solicit any offer to buy or offer to sell Securities by any form of general solicitation or advertising, including, without limitation,
any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast
over the Internet, television or radio or at any seminar or meeting whose attendees have been invited by any general solicitation
or advertising.

 

(iv)        At
all times during the period commencing on the date hereof and ending on the Closing Date, provide to each prospective Investor
or his purchaser representative, if any, on reasonable request, such information concerning the Private Placement, the Company,
the Securities and any other relevant matters as it possesses or can acquire without unreasonable effort or expense and extend
to each prospective Investor or his purchaser representative, if any, the opportunity to ask questions of, and receive answers
from the Company concerning the terms and conditions of the Private Placement and the business of the Company and to obtain any
other additional information, to the extent it possesses the same or can acquire it without unreasonable effort or expense, as
such prospective Investor or purchaser representative may consider necessary in making an informed investment decision or in order
to verify the accuracy of the information furnished to such prospective Investor or purchaser representative, as the case may
be.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 22 of 31

 

(v)         Notify
the Placement Agent promptly of the acceptance or rejection of any subscription.

 

(vi)        File
five (5) copies of a Notice of Sales of Securities on Form D with the SEC no later than 15 days after the first sale of the Securities,
if required by law. The Company shall file promptly such amendments to such Notices on Form D as shall become necessary and shall
also comply with any filing requirement imposed by the laws of any state or jurisdiction in which offers and sales are made. The
Company shall furnish the Placement Agent with copies of all such filings.

 

(vii)       Place
the following legend or one substantially similar thereto, among others, on all certificates representing the Securities:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND
SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

 

(viii)      Not,
directly or indirectly, engage in any act or activity which may jeopardize the status of the offering and sale of the Securities
as exempt transactions under the Securities Act or under the securities or “blue sky” laws of any jurisdiction in
which the Private Placement may be made.

 

(ix)         Not
sell and shall use its commercially reasonable efforts to ensure that none of its Affiliates shall sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security that would be integrated with the offer or sale of the Securities
in a manner that would require the registration under the Securities Act of the issue, offer or sale of the Securities to the
Investors.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 23 of 31

 

(x)          
Not, during the period commencing on the date hereof and ending on the Closing Date, issue any press release or other communication
or hold any press conference with respect to the Company, its financial condition, results of operations, business properties,
assets, liabilities or future prospects of the Private Placement, without the prior consent of the Placement Agent, which consent
will not be unreasonably withheld.

 

(xi)         Give
prompt written notice to the Placement Agent of any material breach by it of any representation, warranty or other agreement contained
in this Agreement, the Placement Agent Warrants or any Subscription Document to which the Company, the Placement Agent and Investor
has relied or is relying on in connection with the Private Placement, as well as any events or occurrences arising after the date
hereof, which would reasonably be likely to cause any such representation, warranty or other agreement of such party, as the case
may be, to be materially incorrect or breached as of and after the Closing Date. However, no disclosure by any party pursuant
to this Section shall be deemed to cure any breach of any such representation, warranty or other agreement.

 

(xii)        In
addition to the foregoing, to the extent not set forth herein, the Placement Agent may rely on the covenants made by the Company
in the Subscription Documents used in connection with the Private Placement.

 

(xiii)       It
is expressly agreed that, in the event that the Closing takes place, if the Company decides thereafter to engage any placement
agent, underwriter or investment bank on a fee basis in connection with any IPO, follow-on, PIPE or registered direct offering
of securities of the Company or any of its subsidiaries (a “Subsequent Offering”) for a period of twelve (12)
months from the Closing Date of the Private Placement, the Company shall give prompt written notice of such an event to Placement
Agent, and Placement Agent shall be entitled to a five (5) business day right of first refusal, beginning on the day Placement
Agent receives such written notice from the Company of such Subsequent Offering, to act as an a placement agent, underwriter or
investment bank, as applicable, for such Subsequent Offering with at least 25% of the economics. If such right of first refusal
is exercised by Placement Agent, the terms of any such engagement of Placement Agent will be separately agreed upon between the
Company and Placement Agent and will be no less favorable to the Company than the engagement the Company negotiated with such
other placement agent, underwriter or investment bank. In lieu of offering the Placement Agent the right of first refusal to participate
in such Subsequent Offering as a placement agent, underwriter or investment bank as described above, the Company may raise capital
on its own behalf through any placement agent, underwriter or investment bank of its own choosing so long as it pays to the Placement
Agent an amount equal to 25% of the economics payable to such other placement agent, underwriter or investment bank. Placement
Agent shall have no right of first refusal as described above with respect to any Subsequent Offering or other financing done
directly by the Company without engagement of a placement agent, underwriter or investment bank.

 

(b)          The
Placement Agent covenants to the Company that it shall:

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 24 of 31

 

(i)          Notify
the Company as soon as practicable, and confirm such notice promptly in writing of the receipt of any notification with respect
to the suspension or termination of the Placement Agent’s license, qualification or registration as a broker-dealer under
the Securities Exchange Act of 1934 or any similar state securities laws or its FINRA membership. The Placement Agent will use
commercially reasonable efforts to prevent and/or cure any suspension or termination of such license, qualification, registration
and/or membership.

 

(ii)         Not
solicit any offer to buy or offer to sell Securities by any form of general solicitation or advertising, including, without limitation,
any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast
over the Internet, television or radio or at any seminar or meeting whose attendees have been invited by any general solicitation
or advertising. 

 

(iii)        Not,
directly or indirectly, engage in any act or activity which may jeopardize the status of the offering and sale of the Securities
as exempt transactions under the Securities Act or under the securities or “blue sky” laws of any jurisdiction in
which the Private Placement may be made. 

 

		10.	CONDITIONS OF CLOSING

 

(a)          The
obligations of the Placement Agent pursuant to this Agreement shall be subject, in its discretion, to the continuing accuracy
of the representations and warranties of the Company contained herein and in each certificate and document contemplated under
this Agreement to be delivered to Placement Agent or otherwise at the Closing (including, without limitation, all Subscription
Documents), as of the date hereof and as of the Closing Date, to the performance by the Company of its obligations hereunder,
and to the following conditions:

 

(i)          At
the Closing, Placement Agent shall have received the favorable legal opinion of Eilenberg & Krause LLP, outside legal counsel
to the Company, in the form and substance attached hereto as Exhibit A.

 

(ii)         Prior
to the Closing, the Placement Agent shall be satisfied with the information presented through its due diligence investigation
and analysis of (A) the Company’s arrangements with its officers, directors, employees, affiliates, customers and suppliers,
(B) the completed historical financial statements of the Company and (C) the Company’s projected financial results.

 

(iii)        Promptly
after the Closing, the Placement Agent shall have received the Shares and Warrants sold to the Investors in the Private Placement,
duly executed and made out in the name of such Investors for the number of Shares and Warrants purchased.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 25 of 31

 

(iv)        At
the Closing, Placement Agent shall have received the applicable fees and Placement Agent Warrants payable to Placement Agent as
described in Section 3 hereof. The Placement Agent Warrant shall be in the form attached hereto as Exhibit B.

 

(v)         At
the Closing, Placement Agent shall have received a certificate of the chief executive officer of the Company, dated, as applicable,
as of the date of such Closing, to the effect that, as of the date of this Agreement and as of the applicable date, the representations
and warranties of the Company contained herein were and are accurate in all material respects, except for such changes as are
contemplated by this Agreement and except as to representations and warranties that were expressly limited to a state of facts
existing at a time prior to the Closing Date, and that, as of the applicable date, the obligations to be performed by the Company
hereunder on or prior thereto have been fully performed in all material respects.

 

(vi)        At
the Closing, Placement Agent shall have received a certificate of the Secretary of the Company, dated, as applicable, as of the
date of the Closing, certifying to the organizational documents, good standing in its state of incorporation of the Company and
each Subsidiary and board resolutions relating to the Private Placement of the Securities from the Company.

 

(vii)       On
or prior to the Closing Date, Placement Agent shall have been furnished with: (A) such information, documents and certificates
as it may reasonably require for the purpose of enabling it to review the matters referred to in this Section 10 and in order
to evidence the accuracy, completeness or satisfaction of any of the representations, warranties, covenants, agreements or conditions
herein contained, and (B) such other closing documentation as may be reasonably required in order to affect the Closing or as
Placement Agent may otherwise reasonably request.

 

(viii)      All
proceedings taken in connection with the issuance, sale and delivery of the Securities shall be reasonably satisfactory in form
and substance to Placement Agent and its counsel.

 

(ix)         Any
certificate or other document signed by any officer of the Company and delivered to Placement Agent and its counsel as required
hereunder shall be deemed a representation and warranty by the Company hereunder as to the statements made therein. If any condition
to Placement Agent’s obligations hereunder have not been fulfilled as and when required to be so fulfilled, Placement Agent
may terminate this Agreement in accordance with Section 5 hereof, including, without limitation, after any applicable cure periods,
or, if Placement Agent so elects, in writing waive any such conditions which have not been fulfilled or extended the time for
their fulfillment. In the event that Placement Agent elects to terminate this Agreement, Placement Agent shall notify the Company
of such election in writing. If, within twelve (12)months after the date on which this Agreement is terminated, the Company completes
any private financing of equity, equity-linked or debt(other than bank financing)or other capital raising activity of the Company
(other than the exercise by any person or entity of any options, warrants or other convertible securities other than the Warrants
issued pursuant to this Agreement) with any of the Investors who were first introduced to the Company in connection with the Private
Placement contemplated hereby by the Placement Agent, the Company will pay to the Placement Agent upon the closing of such financing
the compensation set forth in Sections 3(b) hereof. Upon such termination, neither party shall have any further liability nor
obligation to the other except as provided in this Section 10(a)(ix) and in Sections 4,5 and 11 hereof.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 26 of 31

 

(b)          The
respective obligations of the Company pursuant to this Agreement shall be subject, in its discretion, to the continuing accuracy
of the representations and warranties of Placement Agent contained herein and in each certificate and document contemplated under
this Agreement to be delivered to the Company or otherwise at the Closing, as of the date hereof and as of the Closing Date, to
the performance by Placement Agent of its obligations hereunder, and to the following conditions:

 

(i)          All
proceedings taken in connection with the issuance, sale and delivery of the Securities shall be reasonably satisfactory in form
and substance to the Company and its counsel.

 

(ii)         On
or prior to the Closing Date the Company shall have been furnished with: (A) such information, documents and certificates as it
may reasonably require for the purpose of enabling it to review the matters referred to in this Section 10 and in order to evidence
the accuracy, completeness or satisfaction of any of the representations, warranties, covenants, agreements or conditions herein
contained, and (B) such other closing documentation as may be reasonably required in order to effect the Closing or as the Company
may otherwise reasonably request.

 

		11.	INDEMNIFICATION

 

(a)          In
addition to and without limiting any other right or remedy available to the Placement Agent and the Indemnified Parties (as hereinafter
defined), the Company agrees to indemnify and hold harmless Placement Agent and each of the other Indemnified Parties from and
against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements,
and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses
and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise (including, without limitation,
the costs, expenses and disbursements, as and when incurred, of investigating, preparing, pursuing or defending any such action,
suit, proceeding or investigation (whether or not in connection with litigation in which any Indemnified Party is a party)) (collectively,
“Losses”), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with,
Placement Agent’s acting for the Company, including, without limitation, any act or omission by Placement Agent in connection
with its acceptance of or the performance or non-performance of its obligations under this Agreement, any breach by the Company
of any representation, warranty, covenant or agreement contained in this Agreement (or in any instrument, document or agreement
relating hereto), or the enforcement by Placement Agent of its rights under this Agreement or these indemnification provisions,
except to the extent that any such Losses are found in a final judgment by a court of competent jurisdiction (not subject to further
appeal) to have resulted primarily and directly from the gross negligence or willful misconduct of the Indemnified Party seeking
indemnification hereunder.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 27 of 31

 

(b)          The
Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to the Company for or in connection with the engagement of Placement Agent by the Company or for any other reason, except to the
extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal)
to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful misconduct.

 

(c)          These
Indemnification Provisions shall extend to the following persons (collectively, the “Indemnified Parties”):
Placement Agent, its present and former affiliated entities, managers, members, officers, employees, legal counsel, agents and
controlling persons (within the meaning of the federal securities laws), and the officers, directors, partners, stockholders,
members, managers, employees, legal counsel, agents and controlling persons of any of them. These indemnification provisions shall
be in addition to any liability, which the Company may otherwise have to any Indemnified Party.

 

(d)          If
any action, suit, proceeding or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification,
it shall notify the Company with reasonable promptness; provided, however, that any failure by an Indemnified Party
to notify the Company shall not relieve the Company from its obligations hereunder. The Company shall have the right to assume
the defense of any claim, lawsuit or action (collective, an “action”) for which the Indemnified Party seeks indemnification
hereunder, subject to other provisions stated herein with counsel reasonably satisfactory to the Indemnified Party. The Indemnified
Party shall have the right to employ separate counsel in any such action to participate in the defenses thereof at its own expense;
provided, however, that the reasonable fees and expenses of such counsel shall be at the expense of the Company if (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense ad to employ counsel, or (iii) the named parties to any such action (including any impleaded parties) include
both the Indemnified Party and the Company and the Indemnified Party shall have reasonably concluded, based on advise of counsel,
that there may be legal defenses available to the Indemnified Party which are different from, or in conflict with, any legal defenses
which may be available tot eh Company (in which event the Company shall not have the right to assume the defense of such action
on behalf of the Indemnified Party, it being understood, however, that the Company shall not be liable for the reasonable fees
and expenses of more than one separate firm of attorneys for all Indemnified Parties in each jurisdiction in which counsel is
needed). Any such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Company and
any counsel designated by the Company. The Company shall be liable for any settlement of any claim against Indemnified Party made
with the Company’s written consent. The Company shall not, without the prior written consent of Placement Agent, settle
or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement,
compromise or consent (i) includes, as an unconditional term thereof, the giving by the claimant to all of the Indemnified Parties
of an unconditional release from all liability in respect of such claim, and (ii) does not contain any factual or legal admission
by or with respect to an Indemnified Party or an adverse statement with respect to the character, professionalism, expertise or
reputation of any Indemnified Party or any action or inaction of any Indemnified Party.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 28 of 31

 

(e)          In
order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions
is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification
may not be enforced in such case, even though the express provisions hereof provide for indemnification in such case, then the
Company shall contribute to the Losses to which any Indemnified Party may be subject (i) in accordance with the relative benefits
received by the Company and its stockholders, subsidiaries and affiliates, on the one hand, and the Indemnified Party, on the
other hand, and (ii) if (and only if) the allocation provided in clause (i) of this sentence is not permitted by applicable law,
in such proportion as to reflect not only the relative benefits, but also the relative fault of the Company, on the one hand,
and the Indemnified Party, on the other hand, in connection with the statements, acts or omissions which resulted in such Losses
as well as any relevant equitable considerations. No person found liable for a fraudulent misrepresentation shall be entitled
to contribution from any person who is not also found liable for fraudulent misrepresentation. The relative benefits received
(or anticipated to be received) by the Company and its stockholders, subsidiaries and affiliates shall be deemed to be equal to
the aggregate consideration payable or receivable by such parties in connection with the transaction or transactions to which
this Agreement relates relative to the amount of fees actually received by Placement Agent in connection with such transaction
or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties exceed the
amount of fees previously received by Placement Agent pursuant to this Agreement.

 

(f)          Neither
termination nor completion of this Agreement shall affect these Indemnification Provisions which shall remain operative and in
full force and effect. The Indemnification Provisions shall be binding upon the Company and its successors and assigns and shall
inure to the benefit of the Indemnified Parties and their respective successors, assigns, heirs and personal representatives.

 

		12.	MISCELLANEOUS

 

(a)          The
agreements set forth in this Agreement have been made and are made solely for the benefit of the Company, the Placement Agent,
and the respective Affiliates, heirs, personal representatives and permitted successors and assigns thereof, and except as expressly
provided herein nothing expressed or mentioned herein is intended or shall be construed to give any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this Agreement or any representation, warranty or agreement
herein contained. The term “successors and assigns” as used herein shall not include any purchaser of any Securities
merely because of such purchase. Notwithstanding anything herein contained to the contrary, neither Placement Agent nor the Company
shall assign to an unaffiliated third party any of its obligations hereunder, without the prior written consent of the other party.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 29 of 31

 

(b)          Neither
party will be liable to the other by reason of any failure in performances of this Agreement if the failure arises out of the
unavailability of third party communication facilities or energy sources or acts of God, acts of governmental authority, acts
of terrorism, fires, strikes, delays in transportation, riots or war, or any cause beyond the reasonable control of such party.

 

(c)          Any
notice or other communication required or appropriate under the provisions of this Agreement shall be given in writing addressed
(or sent by facsimile transmission, with confirmation of receipt) as follows: (i) if to the Company, at the address set forth
above, Attention: John A. Moore, Chief Executive Officer, Fax No.: ____________; with a copy to Eilenberg & Krause LLP, 11
East 44th Street, New York, NY 10017 Attention: Sheldon Krause, Esq. Fax No.: (212) 986-2399, and (ii) if to Maxim,
Maxim Group LLC, 405 Lexington Avenue, New York, NY 10174, Attention: Mr. Clifford Teller, Fax No.: (212) 895-3783; with a copy
to Loeb & Loeb LLP, 345 Park Avenue, New York, New York 10154, Attention: Mitchell Nussbaum, Esq., Fax No.: (212) 407-4990,
or at such other address as any party may designate to the others in accordance with this Section 12(c).

 

(d)          This
Agreement shall be governed and construed in accordance with the laws of the State of New York, without giving effect to conflicts
of law provisions thereof.

 

(e)          Any
legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall be
instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York. The parties hereto hereby: (i) waives any objection which they may now have or hereafter have to the venue
of any such suit, action or proceeding, and (ii) irrevocably consents to the jurisdiction of the New York Supreme Court, County
of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.
The parties further agree to accept and acknowledge service of any and all process which may be served in any such suit, action
or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York and agree that service of process upon a party mailed by certified mail to such party’s address shall be deemed
in every respect effective service of process upon such party in any such suit, action or proceeding

 

(f)          This
Agreement constitutes the entire agreement between the parties hereto with respect to the Private Placement and supersedes any
and all prior agreements with respect to the matters addressed herein, and may be amended or modified only by a duly authorized
writing signed by such parties. This Agreement may be executed in any number of counterparts and by facsimile, each of which shall
be deemed an original and all of which shall constitute a single instrument.

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 30 of 31

 

(g)          Placement
Agent and the Company mutually agree that they will not disclose any confidential information received from the other party to
others except with the written permission of the other party or as such disclosure may be required by law. 

 

[SIGNATURE
PAGE FOLLOWS]

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, IL

 

    	 

    	 

    

 

		Acorn Energy

    October 30, 2014

    Page 31 of 31

 

This Placement
Agency Agreement is executed and shall be effective as of the date first written above.

 

	 	Very truly yours,
	 	 
	 	MAXIM GROUP LLC
	 	 
	 	By:	 
	 	 	Name: Clifford A. Teller
	 	 	Title: Executive Managing Director, Investment
    Banking

 

	ACCEPTED AND AGREED TO:	 
	 	 
	ACORN ENERGY, INC.	 
	 	 
	By:	 	 
	 	Name: John A. Moore	 
	 	Title: Chief Executive Officer	 

 

	 
	Members
    FINRA & SIPC
	405 Lexington
    Ave. * New York, NY 10174 *  tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com
	New York,
    NY * Long Island, NY * Chicago, ILExhibit 10.2

 

Lock-Up Agreement 

______________, 2014

Maxim Group LLC

405 Lexington Avenue

New York, NY 10174

 

Ladies and Gentlemen:

 

The undersigned understands
that Maxim Group LLC (“Maxim” or the “Placement Agent”) proposes to enter into an Placement
Agent Agreement (the “Placement Agent Agreement”) with Acorn Energy, Inc., a Delaware corporation (the “Company”),
providing for the private placement (the “Offering”) by the Placement Agent of shares (the “Shares”)
of the Company’s common stock, par value $0.01 per share (the “Common Stock”) and warrants exercisable
for Common Stock.

 

To
induce the Placement Agent to continue their efforts in connection with the Offering, the undersigned hereby agrees that, without
the prior written consent of Maxim, he or she will not, during the period commencing on the date hereof and ending 180 days after
the closing of the Offering (the “Lock-Up Period”), sell, offer, agree to sell, contract to sell, hypothecate,
pledge, grant any option to purchase, make any short sale of, or otherwise dispose of or hedge, directly or indirectly, any shares
of Common Stock, or any securities convertible into or exercisable or exchangeable for shares of Common Stock, whether any such
transaction described above is to be settled by delivery of shares of Common Stock, in cash or otherwise. The foregoing sentence
shall not apply to (a) transactions relating to shares of Common Stock or other securities acquired in open market transactions
after the completion of the Offering, (b) transfers of shares of Common Stock or securities convertible into or exercisable or
exchangeable for shares of Common Stock to (i) the spouse or any lineal descendant of the undersigned, (ii) any trust for the benefit
of the undersigned or the spouse or lineal descendant of the undersigned (or by gift to a charitable organization), (iii) the estate
of the undersigned, or (iv) any affiliate of the undersigned; provided that in the case of any transfer or distribution
pursuant to clause (b), each donee or distributee shall sign and deliver a lock-up agreement substantially in the form of this
agreement or (c) the exercise by the undersigned of the options to purchase shares of Common Stock held by the undersigned and
set forth on Schedule A hereto, which options are expiring during the Lock-Up Period, and the subsequent disposition of
shares of Common Stock solely to the extent required to satisfy the undersigned’s tax withholding obligations in connection
with the exercise of such options (such shares of Common Stock shall be referred to herein as “Permitted Disposition Shares”);
provided, however, that in no event shall the undersigned be permitted to sell more than 20% of such Permitted Disposition
Shares on any trading day. In addition, the undersigned agrees that, without the prior written consent
of Maxim, it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock. The undersigned
also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against
the transfer of the undersigned’s shares of Common Stock except in compliance with the foregoing restrictions.

 

    	 

    	 

    

  

If (a) the Company
issues an earnings release or material news, or a material event relating to the Company occurs, during the last 17 days of the
Lock-Up Period, or (b) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results
during the 16-day period beginning on the last day of the Lock-Up Period, the restrictions imposed by this agreement shall continue
to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material
news or material event, unless Maxim waives such extension.

 

No provision in this
agreement shall be deemed to restrict or prohibit the exercise or exchange by the undersigned of any option or warrant to acquire
shares of Common Stock, or securities exchangeable or exercisable for or convertible into shares of Common Stock; provided that
the undersigned does not transfer the shares of Common Stock acquired on such exercise or exchange during the Lock-Up Period, unless
otherwise permitted pursuant to the terms of this agreement. In addition, no provision herein shall be deemed to restrict or prohibit
the entry into or modification of a so-called “10b5-1” plan at any time (other than the entry into or modification
of such a plan in such a manner as to cause the sale of any shares of Common Stock or any securities convertible into or exercisable
or exchangeable for shares of Common Stock within the Lock-Up Period).

 

The undersigned understands
that the Company and the Placement Agent are relying upon this agreement in proceeding toward consummation of the Offering. The
undersigned further understands that this agreement is irrevocable and shall be binding upon the undersigned’s heirs, legal
representatives, successors and assigns.

 

The undersigned understands
that if the Placement Agent Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated
prior to consummation of the Offering, the undersigned shall be released from all obligations under this letter agreement.

 

Whether or not the
Offering actually occurs depends on a number of factors, including market conditions. Any Offering will only be made on and subject
to terms which are subject to negotiation between the Company, the Placement Agent and the purchasers in the Offering.

 

	 	Very truly yours,
	 	 
	 	 

 

    	2

    	 

    

  

SCHEDULE A

 

None.

 

    	3

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