Document:

CONSULTING
AGREEMENT

 

This
Consulting Agreement is made as of this 8th day of January, 2017, by and between Acorn Energy, Inc. (the “Company”)
and Jan H. Loeb (“Loeb”).

 

R
E C I T A L S:

 

WHEREAS,
the Board of Directors (the “Board”) of the Company has appointed Loeb to serve as the Company’s president and
chief executive officer;

 

WHEREAS,
Loeb is owner of Leap Tide Capital Management LLC (“Leap Tide”);

 

WHEREAS,
the Company and Leap Tide executed a Consulting Agreement as of January 7, 2016 (the “Original Consulting Agreement”),
pursuant to which Leap Tide has been providing the consulting services of Loeb to the Company as provided for therein;

 

WHEREAS,
the Board desires to engage Loeb directly, upon the terms and conditions hereinafter set forth, to continue his provision of consulting
services to the Company upon the expiration of the Original Consulting Agreement; and

 

WHEREAS,
Loeb has agreed to provide such consulting services to the Company, upon the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereby agree as follows:

 

	1.	Engagement.
    The Company hereby agrees to engage Loeb to render the consulting services described herein, and Loeb hereby accepts such
    engagement.
	 	 
	2.	Term.
    The engagement of Loeb by the Company as provided in Section 1 shall commence on the date hereof and continue through and
    until January 7, 2018 unless further extended or earlier terminated as hereinafter provided (the period of such engagement,
    the “Term”).
	 	 
	3.	Services.
    Loeb shall provide such consulting services to the Company as Loeb and the Company shall mutually agree upon from time to
    time. Loeb shall serve as the Company’s principal executive officer in the capacities of president and chief executive
    officer, with all the power and authority and executing all the functions associated with such offices, and shall commit sufficient
    business time to effectively discharge the responsibilities of the Company’s president and chief executive officer,
    without any additional compensation. The foregoing notwithstanding, nothing in this Agreement shall restrict Loeb from performing
    his other duties at Leap Tide and/or accepting consulting or employment arrangements or other positions outside of his activities
    for the Company. 

 

    	 

    	 

    

 

	4.	Payment
    and Expenses.

 

	 	(a)	Cash
    Payment. The Company shall pay to Loeb compensation in the amount of $17,000.00 per month during the Term. 
	 	 	 
	 	(b)	Options.
    Loeb shall be granted options to purchase 35,000 shares of Common Stock. The options shall be issued on February 21, 2017,
    shall be exercisable at an exercise price equal to the closing price of the common stock on February 17, 2017 and will allow
    for cashless exercise if there is no effective registration statement covering the issuance or resale of the shares. The vesting
    period, exercise period and other terms shall otherwise be substantially the same as the terms of the options granted by the
    Company to its outside directors.
	 	 	 
	 	(c)	Expenses.
    Loeb shall be entitled to reimbursement for any out of pocket expenses (travel, transportation, office, etc.) incurred in
    connection with the consulting services rendered pursuant hereto. 
	 	 	 
	 	(d)	D&O
    Coverage. The Company has confirmed that Loeb will be covered by the Company’s primary and excess D&O insurance
    policy in his capacities of director as well as president and chief executive officer, notwithstanding the fact that he is
    not an employee of the Company, on the same basis as the other directors and executive officers of the Company. 
	 	 	 
	 	(e)	No
    Other Compensation. Other than as set forth herein or otherwise agreed in writing, Loeb shall not receive any other compensation
    or benefits in connection with this Agreement or his service as a director and president and chief executive officer of the
    Company. 

 

	5.	Termination.
    Either party may terminate the Term for any or no reason upon thirty (30) days’ notice to the other party, provided
    however, that in the event of termination by the Company, Loeb shall still be entitled to the payments provided for in Section
    4(a) through the end of the given Term.
	 	 
	6.	Covenants
    of Loeb. 

 

	 	(a)	Loeb
    recognizes that the knowledge of, information concerning, and relationship with, customers, suppliers and agents, and the
    knowledge of the Company’s business methods, systems, plans and policies which Loeb will establish, receive or obtain
    as a consultant to the Company, are valuable and unique assets of the business of the Company. Loeb will not, during or following
    the Term, use or disclose any such knowledge or information pertaining to the Company, its customers, suppliers, agents, policies
    or other aspects of its business, for any reason or purpose, whatsoever except pursuant to Loeb’s duties hereunder or
    as otherwise authorized by the Company in writing. The foregoing restriction shall not apply, following termination of Loeb’s
    engagement hereunder, to knowledge or information which (i) is in or enters the public domain without violation of this Agreement
    or other obligations of confidentiality by Loeb or his agents or representatives, (ii) Loeb can demonstrate was in his possession
    on a non-confidential basis prior to the commencement of this engagement with the Company, or (iii) Loeb can demonstrate was
    received or obtained by him on a non-confidential basis from a third party who did not acquire it wrongfully or under an obligation
    of confidentiality, subsequent to the termination of Loeb’s engagement hereunder.

 

    	2

    	 

    

 

	 	(b)	All
    memoranda, notes, records or other documents made or compiled by Loeb or made available to Loeb while engaged concerning customers,
    suppliers, agents or personnel of the Company, or the Company’s business methods, systems, plans and policies, shall
    be the Company’s property and shall be delivered to the Company on termination of Loeb’s engagement or at any
    other time on request.
	 	 	 
	 	(c)	During
    the term of Loeb’s engagement and for one year thereafter, Loeb shall not, except pursuant to and in furtherance of
    Loeb’s duties hereunder, directly or indirectly solicit or initiate contact with any employee of the Company or its
    subsidiaries with a view to inducing or encouraging such employee to leave the employ of the Company for the purpose of being
    hired by Loeb, an employer affiliated with Loeb or any competitor of the Company.
	 	 	 
	 	(d)	Loeb
    acknowledges that the provisions of this section are reasonable and necessary for the protection of the Company and that the
    Company will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, Loeb agrees that, in addition
    to any other relief to which the Company may be entitled in the form of actual or punitive damages, the Company shall be entitled
    to seek and obtain injunctive relief from a court of competent jurisdiction for the purposes of restraining Loeb from any
    actual or threatened breach of such covenants.

 

	7.	Independent
    Contractor Status. It is the express intention of the Company and Loeb that Loeb performs the covered services under this
    Agreement, including his services as president and chief executive officer of the Company, as an independent contractor. Nothing
    in this Agreement shall in any way be construed to constitute Loeb as an employee. 
	 	 
	8.	Entire
    Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof.
    This Agreement may not be modified or extended except by a writing signed by both parties hereto. This Agreement shall be
    binding upon and inure to the benefit of the parties and their respective legal representatives, successors and assigns.
	 	 
	9.	Governing
    Law. This Agreement and all matters and issues collateral thereto shall be governed by the laws of the State of Delaware
    applicable to contracts performed entirely therein.
	 	 
	10.	Severability.
    If any provision of this Agreement, as applied to either party or to any circumstance, shall be adjudged by a court to be
    void and unenforceable, the same shall in no way affect any other provision of this Agreement or the validity or enforceability
    thereof.

 

    	3

    	 

    

 

	11.	Notices.
    All notices or other communications hereunder shall be given in writing and shall be deemed given if served personally,
    mailed by registered or certified mail, return receipt requested or sent by nationally recognized courier service, to the
    parties at the addresses below, or at such other address or addresses as they may hereafter designate in writing.

 

If
to the Company:

3844
Kennett Pike

Suite
204-4

Mall
Building

Powder
Mill Square

Greenville,
Delaware 19807

 

If
to Loeb:

10451
Mill Run Circle

Suite
400

Owings
Mills, MD 21117

 

[Remainder
of page intentionally left blank]

 

    	4

    	 

    

 

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

 

	 	ACORN
    ENERGY, INC.
	 	 
	 	By:	/s/
    Michael Barth
	 	Name:	Michael
    Barth
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	By:	/s/
    Jan H. Loeb
	 	Name:	Jan
    H. Loeb

 

    	5PROMISSORY
NOTE

 

	$250,000	February
    15, 2017

 

FOR
VALUE RECEIVED, Acorn Energy, Inc., a Delaware corporation, (the “Maker”), with an address at 10451 Mill Run Circle,
Suite 400, Owings Mills, Maryland 21117-5577, promises to pay to the order of Christopher E. Clouser (the “Holder”),
the principal amount of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) (the “Principal Amount”), together with interest
thereon from the date hereof, in accordance with the terms of this Promissory Note (this “Note”), as hereafter set
forth.

 

This
Note is one of a series of notes of the same tenor (the “Bridge Notes’) issued to lenders who made and/or committed
to make loans to the Maker on or about the date hereof.

 

1.
Interest. Interest will accrue on the unpaid balance of the Principal Amount of this Note from the date hereof until the
February 15, 2018 at the rate of 12.5% per annum. Interest on any unpaid Principal Amount of this Note outstanding after February
15, 2018 shall accrue at the rate of 16.5% per annum. Interest on this Note shall be computed on the basis of the actual number
of days elapsed over a year comprised of 365 days.

 

2.
Repayment of Principal. The unpaid Principal Amount of the Loan together with interest accrued thereon shall be repayable
on April 30, 2018, or if the obligation to repay the Principal Amount of and interest accrued on this Note shall be accelerated
to an earlier date under Sections 4(b) or 6 hereof, such earlier date (such original or accelerated maturity date being referred
to herein as the “Maturity Date”).

 

3.
Application of Payments. Any payments on account of this Note, when paid, shall be applied first to the payment of all
interest then due on the unpaid balance of the Principal Amount and the balance, if any, shall be applied in reduction of the
unpaid balance of the Principal Amount. Any payment under this Note on a day on which Holder is not open to conduct business shall
be made on the next succeeding business day.

 

4.
Optional Prepayment; Mandatory Prepayment.

 

(a)
The Maker may prepay the unpaid balance of the Principal Amount in whole at any time or in part from time to time without premium
or penalty; provided, that any such prepayment is accompanied by interest accrued and unpaid on the amount so prepaid to the date
of such prepayment.

 

(b)
In the event of the sale of all or any portion of the Maker’s shares of DSIT Solutions Ltd. (the “DSIT Shares”),
the Maker shall pay the net proceeds of such sale to the Holder and to the holders of the other Bridge Notes pro rata to the aggregate
outstanding principal amount of such Bridge Notes, respectively, to be applied against the obligations of the Maker to the Holder
under this Note and to the other holders of the Bridge Notes.

 

    	 

    	 

    

 

5.
Conversion into OMX Holdings, Inc. Shares. If all or part of the Principal Amount of this Note and/or interest accrued
thereon shall remain unpaid after the Maturity Date, then at the election of the Holder made in writing at any time following
the Maturity Date, and with the consent of the Maker at the time of such conversion, the Holder may receive in satisfaction of
such overdue amounts, shares of the OMX Holdings, Inc. common stock owned by Maker, based on an independent valuation for OMX
to be obtained at the time of such conversion.

 

6.
Default. The term “Default,” as used herein, means the occurrence of any one or more of the following events:

 

(a)
Maker shall fail to make any payment of the principal or any interest accrued thereon when such payment shall become due;

 

(b)
Maker or any subsidiary of Maker shall sell or transfer a substantial portion of its assets other than in the ordinary course
of business, other than a sale the net proceeds of which are utilized to make payment against the Principal Amount of this Note
and the other Bridge Notes and any interest accrued thereon; or

 

(c)
Maker shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to
itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of its or any substantial part of its property, or shall
consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other
proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally, or
shall admit in writing its inability, to pay its debts as they become due, or shall take any other action to authorize any of
the foregoing.

 

Upon
the occurrence of a Default, upon written notice by the Holder to the Maker, the maturity of this Note may be accelerated and
the unpaid balance of the Principal Amount then outstanding together with interest accrued and unpaid thereon shall be declared
to be immediately due and payable.

 

7.
Address for Payments. All payments of the unpaid balance of the Principal Amount and interest thereon shall be paid in
lawful money of the United States of America during regular business hours of the Holder at Holder’s address set forth at
the foot hereof or at such other place as the Holder or any other holder of this Note may at any time or from time to time designate
in writing to the Maker.

 

8.
Remedies Cumulative. Each right, power and remedy of the Holder as provided for in this Note or now or hereafter existing
at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right,
power, or remedy provided for in this Note or now or hereafter existing at law or in equity or by statute or otherwise, and the
exercise or beginning of the exercise by the Holder of any one or more of such rights, powers, or remedies shall not preclude
the simultaneous or later exercise by the Holder of any or all such other rights, powers, or remedies. No failure or delay by
the Holder to insist upon the strict performance of any term, condition, covenant, or agreement of this Note, or to exercise any
right, power, or remedy consequent upon a breach thereof, shall constitute a waiver of any such term, condition, covenant, or
agreement or of any such breach, or preclude the Holder from exercising any such right, power, or remedy at any later time or
times. By accepting payment after the due date of any amount payable under this Note, the Holder shall not be deemed to waive
the right to declare an event of default for failure to effect such prompt payment of any such other amount.

 

    	2

    	 

    

 

9.
Governing Law. This Note shall be governed by and construed under the laws of the State of Delaware without reference to
the choice of law provisions thereof. Any proceeding relating to any dispute arising out of or related to this Note shall be brought
exclusively in the state or federal courts located in Wilmington, Delaware.

 

10.
Waivers, Etc. All parties to this Note, including endorsers, sureties and guarantors, if any, hereby waive presentment
for payment, demand, protest, notice of non-payment or dishonor, and of protest, and any and all other notices and demands whatsoever
and agree to remain bound hereunder until the interest and Principal Amount are paid in full notwithstanding any (a) release,
surrender, waiver, addition, substitution, exchange, compromise, modification of or to or indulgence granted with respect to this
Note or all or any part of any collateral or security for this Note; (b) extension or extensions of time for payment which may
be granted, even though the period of extension may be indefinite; and (c) inaction by, or failure to assert any legal right available
to the holder of this Note.

 

IN
WITNESS WHEREOF, the Maker has executed this instrument, the day and year first above written.

 

	 	ACORN
    ENERGY, INC.
	 	 
	 	By:	                                          
	 	Name:	Jan
    Loeb
	 	Title:	President
    & Chief Executive Officer

 

AGREED
AND ACCEPTED:

 

____________________________

 

Name:
Christopher E. Clouser

 

Address:

 

_____________________________

 

_____________________________

 

    	3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]