Document:

Exhibit 10.2

 

WARRANT AGREEMENT

 

WARRANT AGREEMENT, dated
as of October 22, 2012 between XZERES, CORP., a Nevada corporation (the “Company”), and the investor listed on the
signature page hereto (the “Investor”).

 

WHEREAS, in connection
with the private placement (the “Private Placement”) of up to 1,904,762 shares of the Company’s Series A Convertible
Preferred Stock (the “Series A Shares”), the Company also proposes to issue to the Investor warrants as hereinafter
described (the “Warrants’) to purchase up to an aggregate of 2,875,143 shares, subject to adjustment as hereinafter
provided (the “Shares”), of Company common stock, par value $.01 per share (the “Common Stock”), each Warrant
entitling the holder thereof to purchase 1.5 shares of Common Stock; and

 

WHEREAS, the Company proposes
to issue certificates evidencing the Warrants (the “Warrant Certificates”);

 

WHEREAS, the Company and
the Investor desire to set forth in this Warrant Agreement, among other things, the form and provisions of the Warrant Certificates
and the terms and conditions under which they may be issued, transferred, exchanged, replaced, redeemed and surrendered in connection
with the exercise and redemption of the Warrants; and

 

WHEREAS, this Warrant Agreement
is being executed by the Company concurrently with the Subscription Agreement and the Registration Rights Agreement in connection
with the Private Placement and the Company and the Investor desire that certain rights and obligations set forth in such agreements
shall be applicable to the Warrants;

 

NOW, THEREFORE,
in consideration of the premises and of the mutual agreements herein contained, the parties hereto agree as follows:

 

    	 

    	 

    

   

ARTICLE I

 

DISTRIBUTION OF WARRANT CERTIFICATES

 

SECTION 1.1Form of Warrant Certificates.
The Warrant Certificates shall be issued in registered form only and, together with the purchase and assignment forms to be printed
on the reverse thereof, shall be substantially in the form of Exhibit A attached hereto and, in addition, may have such letters,
numbers or other marks of identification or designation and such legends, summaries, or endorsements stamped, printed, lithographed
or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement or as,
in any particular case, may be required, in the opinion of counsel for the Company, to comply with any law or with any rule or
regulation of any regulatory authority or agency, or to conform to customary usage.

 

SECTION 1.2Execution of Warrant
Certificates. The Warrant Certificates shall be executed on behalf of the Company by its Chairman or President, either manually
or by facsimile signature printed thereon, under its corporate seal, affixed or in facsimile, attested by the manual or facsimile
signature of its Secretary or Assistant Secretary. In case any authorized officer of the Company who shall have signed any of the
Warrant Certificates shall cease to be such officer of the Company either before or after delivery thereof by the Company, the
signature of such person on such Warrant Certificates, nevertheless, shall be valid and may be issued and delivered to those persons
entitled to receive the Warrants represented thereby with the same force and effect as though the person who signed such Warrant
Certificates had not ceased to be such officer of the Company.

 

SECTION 1.3 Registration. The
Warrant Certificates shall be numbered and shall be registered in a Warrant register. The Company shall be entitled to treat the
registered holder of any Warrant in the warrant register (the “Holder”) as the owner in fact thereof for all purposes
(notwithstanding any notation of ownership or other writing thereon made by anyone) and shall not be bound to recognize any equitable
or other claim to or interest in such Warrant on the part of any other person, and shall not be liable for any registration of
transfer of Warrants which are registered or to be registered in the name of a fiduciary or the nominee of a fiduciary unless made
with the actual knowledge that a fiduciary or nominee is committing a breach of trust in requesting such registration of transfer,
or with knowledge of such facts that its participation therein amounts to bad faith. The Warrants shall be registered initially
in the name of the Investor in such denominations as the Investor may request in writing to the Company.

 

    	2

    	 

    

   

SECTION 1.4 Mutilated, Lost, Stolen
or Destroyed Warrant Certificates. In case any of the Warrant Certificates shall be mutilated, lost, stolen or destroyed, the
Company shall, upon the written request of the Holder thereof, issue and deliver to such Holder, in replacement therefor, a new
Warrant Certificate of like tenor and representing an equivalent right or interest. If the Warrant Certificate being replaced is
mutilated, such Warrant Certificate shall be surrendered to the Company for cancellation. If the Warrant Certificate being replaced
is lost, stolen or destroyed, the Holder of such Warrant Certificate shall furnish to the Company such security or indemnity as
may be required by it to save it harmless from any loss as a result of such replacement and evidence satisfactory to the Company
of such loss, theft or destruction; provided, however, that if the Holder of such Warrant Certificate is the original Holder
thereof, the written undertaking of such Holder shall be sufficient security and indemnity.

 

SECTION 1.5Restrictions on
Dispositions. The Investor represents and warrants to the Company that the warrants are being purchased by the Investor for
its own account and not with a view to the distribution thereof in violation of the Securities Act of 1993, as amended (the “Securities
Act”), and that the Investor will not transfer or dispose of any such Warrants and will not transfer or dispose of any Shares
except pursuant to (i) an effective registration statement under the Securities Act, (ii) any available rule or exemption from
registration under the Securities Act permitting such disposition or (iii) an opinion of counsel, reasonably satisfactory to counsel
for the Company, that an exemption from such registration is available.

 

SECTION 1.6 Certificates
to Bear Legends. The Warrants shall be subject to a stop-transfer order and the Warrant Certificates shall bear the
following legend:

 

“NEITHER THE WARRANTS REPRESENTED
BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. SUCH WARRANTS AND SECURITIES CANNOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT, (ii)
ANY AVAILABLE RULE OR EXEMPTION FROM REGISTRATION UNDER SUCH ACT PERMITTING SUCH DISPOSITION OF SECURITIES OR (iii) AN OPINION
OF COUNSEL, REASONABLY SATISFACTORY TO COUNSEL FOR THIS CORPORATION, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.”

 

    	3

    	 

    

   

The Shares issued upon exercise of the Warrants
shall be subject to a stop-transfer order and the certificate or certificates evidencing any such Shares shall bear the following
legend:

 

“THE SHARES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNTIL REGISTERED UNDER SUCH ACT OR UNLESS OTHERWISE IN COMPLIANCE WITH SUCH ACT.”

 

Certificates for Shares
without legend shall be issued if such Shares are sold pursuant to an effective registration statement under the Securities Act
or if the Company has received an opinion from counsel, reasonably satisfactory to counsel for the Company, that such legend is
no longer required under the Securities Act.

 

You represent that (i)
you are an “accredited investor” within the meaning of Rule 501 under the Securities Act, (ii) by reason of your business
and financial experience, and the business and financial experience of those persons retained by you to advise you with respect
to your investment in the Warrants, you, together with such advisors, have such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the prospective investment, and you are able to
bear the economic risk of such investment and, at the present time, are able to afford a complete loss of such investment, and
(iii) you have had an opportunity to investigate the business and financial condition of the Company, and to obtain such information
as you require from the officers and directors of the Company.

 

    	4

    	 

    

  

ARTICLE II

 

WARRANT EXERCISE PRICE AND EXERCISE OF WARRANTS

 

SECTION 2.1 Exercise Price.
Each Warrant Certificate shall, when signed by the Chairman or President and by the Secretary or Assistant Secretary of the Company,
entitle the registered holder thereof to purchase from the Company 1.5 shares of Common Stock for each Warrant evidenced thereby
at a purchase price of $0.385 per Share (the “Exercise Price”), at any time on or after the date hereof and before
5:00 p.m. California time on October 23, 2017 (the “Expiration Date”) or such adjusted number of shares at such adjusted
purchase price as may be established from time to time pursuant to the provisions of Article III hereof, payable in full at the
time of exercise of the Warrant in cash or by certified or official bank check or money order payable to the order of the Company.
No adjustment shall be made for any dividends on any Shares issuable upon exercise of a Warrant. Except as the context otherwise
requires, the term “Exercise Price” as used in this Agreement shall mean the purchase price upon exercise of a Warrant
to purchase one share of Common Stock, reflecting all appropriate adjustments made in accordance with the provisions of Article
III hereof.

 

SECTION 2.2 Exercisability
of Warrants. The Warrants shall be exercisable, during the period commencing on October 23, 2012 and terminating October 23,
2017 (the “Warrant Exercise Period”).

 

SECTION 2.3 Procedure for Exercise
of Warrants. During the period specified in Section 2.2 hereof, Warrants may be exercised by surrendering the Warrant Certificates
representing such Warrant to the Company, or its agent, with the election to purchase form set forth on the Warrant Certificate
duly completed and executed, accompanied by payment in full to the Company of the Exercise Price in effect at the time of such
exercise for each share of Common Stock with respect to which such Warrants are being exercised. Such Exercise Price shall be paid
in full by certified or official bank check or money order, payable in United States currency to the order of the Company. The
date on which Warrants are exercised in accordance with this Section 2.3 is sometimes referred to herein as the “Date of
Exercise” of such Warrants.

 

    	5

    	 

    

  

SECTION 2.4 Issuance of Common Stock.
As soon as practicable after the Date of Exercise of any warrants, the Company shall issue a certificate or certificates
for the number of full shares of Common Stock to which such holder is entitled, registered in accordance with the instructions
set forth in the election to purchase and shall mail such certificate to the Registered Holders thereof. All shares of Common Stock
issued upon the exercise of any Warrants shall be validly authorized and issued, fully paid and nonassessable, and free from all
preemptive rights, taxes, liens and charges created by the Company in respect of the issue thereof. Each person in whose name any
such certificate for shares of Common Stock is issued shall for all purposes be deemed to have become the holder of record of the
Common Stock represented thereby on the Date of Exercise of the Warrants resulting in the issuance of such shares which shall be
the date of issuance, irrespective of the date of delivery of such certificate for shares of Common Stock.

 

SECTION 2.5 Certificates
for Unexercised Warrants. In the event that less than all of the Warrants represented by a Warrant Certificate are exercised,
the Company shall execute and mail, by first-class mail, and within fifteen (15) days of the Date of Exercise, to the registered
Holder of such Warrant Certificate, or such other person as shall be designated in the election to purchase, a new Warrant Certificate
representing the number of full Warrants not exercised. In no event shall a fraction of a Warrant be exercised, and the Company
shall distribute no Warrant Certificate representing fractions of Warrants under this or any other section of this Agreement.

 

SECTION 2.6 Reservation
of Shares. The Company shall at all times reserve and keep available for issuance upon the exercise of Warrants a number of
its authorized but unissued shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants.

 

    	6

    	 

    

   

ARTICLE III

 

ADJUSTMENTS AND NOTICE PROVISIONS

 

SECTION 3.1 Adjustment
of Exercise Price. Subject to the provisions of this Article III, the Exercise Price in effect from time to time shall be subject
to adjustment, as follows:

 

(a)In
case the Company shall (i) declare a dividend or make a distribution on the outstanding shares of Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or
reclassify the outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately after
the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall
be adjusted so that it shall equal the price determined by multiplying the Exercise Price in effect immediately prior thereto
by a fraction, of which the numerator shall be the number of shares of Common Stock outstanding immediately before such dividend,
distribution, subdivision, combination or reclassification, and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such dividend, distribution, subdivision, combination or reclassification. Any shares of Common
Stock issuable in payment of a dividend shall be deemed to have been issued immediately prior to the record date for such dividend
for purposes of calculating the number of outstanding shares of Common Stock under Sections 3.1(b), 3.1(c) and 3.1(d) below. Such
adjustments shall be made successively whenever any event specified above shall occur.

 

(b)In case the Company shall fix a
record date for the issuance of rights or warrants to all holders of Common Stock entitling them (for a period expiring within
forty-five (45) days after such record date) to subscribe for or purchase shares of Common Stock for less than the Exercise Price,
the Exercise Price shall be adjusted immediately thereafter so that it shall equal such lesser price. Shares of Common Stock owned
or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment
shall be made successively whenever such a record date is fixed. To the extent that any such rights or warrants are not so issued
or expire unexercised, the Exercise Price then in effect shall be readjusted to the Exercise Price which would then be in effect
if such unissued or unexercised rights or warrants had not been issuable.

 

    	7

    	 

    

   

(c)In case the Company shall fix a
record date for the making of a distribution to all holders of shares of Common Stock (i) of shares of any class other than Common
Stock, (ii) of evidences of its indebtedness, (iii) of assets (excluding cash dividends or distributions, and dividends or distributions
referred to in Section 3.1(a) above) or (iv) of rights or warrants to acquire securities of the Company (excluding those rights
or warrants referred to in Section 3.1(b) above), then in each such case the Exercise Price in effect immediately after the record
date shall be determined by multiplying the Exercise Price in effect immediately prior thereto by a fraction, of which the numerator
shall be the total number of shares of Common Stock outstanding on such record date multiplied by the Current Market Price per
share on such record date, less the aggregate fair market value as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a duly adopted board resolution certified by the Company’s Secretary or Assistant
Secretary, of said shares or evidences of indebtedness or assets or rights or warrants so distributed, and of which the denominator
shall be the total number of shares of Common Stock outstanding on such record date multiplied by such Current Market Price per
share. Such adjustment shall be made successively whenever such a record date is fixed. In the event that such distribution is
not so made, the Exercise Price then in effect shall be readjusted to the Exercise Price which would then be in effect if such
record date had not been fixed.

 

(d)In case the Company shall sell and
issue shares of Common Stock after the closing of the Private Placement, or rights, options, warrants or convertible or exchangeable
securities containing the right to subscribe for or purchase shares of Common Stock (excluding (i) shares, rights, options, warrants
or convertible or exchangeable securities issued in any of the transactions described in Section 3.1(a), (b) or (c) above, and
(ii) the Warrants and any shares issued on exercise thereof), at a price per share of Common Stock lower than the Exercise Price
on the date the Company fixes the offering price of such shares, rights, options, warrants or convertible or exchangeable securities,
then the Exercise Price shall be adjusted so that it shall equal such lower price. Such adjustment shall be made successively whenever
such an issuance is made. In case the Company shall sell and issue shares of Common Stock, or rights, options, warrants or convertible
or exchangeable securities containing the right to subscribe for or purchase shares of Common Stock for a consideration consisting,
in whole or in part, of property other than cash or its equivalent or services, then in determining the “price per share
of Common Stock” and the “consideration received by the Company” for purposes of the first sentence of this Section
3.1(d), the Board of Directors of the Company shall determine, in good faith, the fair value of said property or services, and
such determination, which shall be described in a duly adopted board resolution certified by the Company’s Secretary or Assistant
Secretary, in the absence of fraud or bad faith, shall be binding upon all holders of Warrants. In case the Company shall sell
and issue rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase
shares of Common Stock together with one or more other securities as part of a unit at a price per unit, then in determining the
“price per share of Common Stock” and the “consideration received by the Company” for purposes of the first
sentence of this Section 3.1(d), the Board of Directors of the Company shall determine, in good faith, whose determination shall
be described in a duly adopted board resolution certified by the Company’s Secretary or Assistant Secretary, the fair value
of the rights, options, warrants or convertible or exchangeable securities then being sold as part of such unit, and such determination,
in the absence of fraud or bad faith, shall be binding upon all Holders of Warrants.

 

    	8

    	 

    

  

(e)For the purpose
of any computation above, the “Current Market Price” at any date (the “Computation Date”) shall be deemed
to be the average of the daily closing prices of the Common Stock for twenty (20) consecutive trading days ending the tenth trading
day before such date. The closing price for each day shall be the last reported sale price or, in case no such reported sale takes
place on such date, the average of the last reported bid and asked prices, in either case on the principal national securities
exchange on which the Common Stock is admitted to trading or listed if that is the principal market for the Common Stock or if
not listed or admitted to trading on any national securities exchange or if such national securities exchange is not the principal
market for the Common Stock, the closing bid price as reported by the NASDAQ System or its successor, if any, or such other generally
accepted source of publicly reported bid and asked quotations as the Company may reasonably designate. If the price of the Common
Stock is not so reported or the Common Stock is not publicly traded, the Current Market Price per share as of any Computation Date
shall be determined by the Board of Directors in good faith on the basis of such quotation of the last reported sales price or
on such other basis as it considers appropriate.

 

(f)All calculations under this
Section 3.1 shall be made to the nearest one-hundredth of a cent.

 

(g)For the purposes of all calculations
under this Section 3.1, shares of Common Stock or other securities held in the treasury of the Company shall not be deemed to be
outstanding, and the sale or other disposition of any shares of Common Stock or other securities held in the treasury of the Company
shall be deemed an issuance thereof.

 

SECTION 3.2 No Adjustments Required.
No adjustment in the Exercise Price in accordance with the provisions of Section 3.1(a), (b), (c) or (d) hereof need be made if
such adjustment would amount to a change in such Exercise Price of less than $.005; provided, however, that the amount
by which any adjustment is not made by reason of the provisions of this Section 3.2 shall be carried forward and taken into account
at the time of any subsequent adjustment in the Exercise Price.

 

    	9

    	 

    

   

SECTION 3.3 Adjustment
to Number of Shares. Upon each adjustment of the Exercise Price pursuant to Section 3.1(a), (b), (c) or (d) hereof, each Warrant
shall thereupon evidence the right to purchase that number of shares of Common Stock (calculated to the nearest hundredth of a
share) obtained by multiplying the number of shares of Common Stock purchasable immediately prior to such adjustment upon exercise
of the Warrant by the Exercise Price in effect immediately prior to such adjustment and dividing the product so obtained by the
Exercise Price in effect immediately after such adjustment.

 

SECTION 3.4 Reorganizations.
In case of any capital reorganization, other than in the cases referred to in Section 3.1 hereof, or the consolidation or merger
of the Company with or into another corporation (other than a merger or consolidation in which the Company is the continuing corporation
and which does not result in any reclassification of the outstanding shares of Common Stock or the conversion of such outstanding
shares of Common Stock into shares of other stock or other securities or property), or the sale of the property of the Company
as an entirety or substantially as an entirety (collectively such actions being hereinafter referred to as “Reorganizations”),
there shall thereafter be deliverable upon exercise of any Warrant (in lieu of the number of shares of Common Stock theretofore
deliverable) the number of shares of stock or other securities or property to which a holder of the number of shares of Common
Stock which would otherwise have been deliverable upon the exercise of such Warrant would have been entitled upon such Reorganization
if such Warrant had been exercised in full immediately prior to such Reorganization. In case of any Reorganization, appropriate
adjustment, as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a duly
adopted resolution certified by the Company’s Secretary or Assistant Secretary, shall be made in the application of the provisions
herein set forth with respect to the rights and interests of warrant holders so that the provisions set forth herein shall thereafter
be applicable, as nearly as possible, in relation to any shares or other property thereafter deliverable upon exercise of warrants.
The Company shall not effect any such Reorganization, unless upon or prior to the consummation thereof the successor corporation,
or if the Company shall be the surviving corporation in any such Reorganization and is not the issuer of the shares of stock or
other securities or property to be delivered to holders of shares of the Common Stock outstanding at the effective time thereof,
then such issuer shall assume by written instrument the obligation to deliver to the registered holder of any warrant Certificate
such shares of stock, securities, cash or other property as such holder shall be entitled to purchase in accordance with the foregoing
provisions. In the event of a sale or conveyance or other transfer of all or substantially all of the assets of the Company as
a part of a plan for liquidation of the Company, all rights to exercise any Warrant shall terminate thirty (30) days after the
Company gives written notice to each registered Holder of a Warrant Certificate that such sale or conveyance or other transfer
has been consummated.

 

    	10

    	 

    

  

SECTION 3.5 Verification
of Computations. The Company shall select a firm of independent public accountants, which selection may be changed from time
to time, to verify the computations made by the Company in accordance with this Article III. The certificate, report or other written
statement of any such firm delivered to the Company within fifteen days shall be conclusive evidence of the correctness of any
computation made under Article III.

 

SECTION 3.6 Notice of
Certain Actions. In the event the Company shall:

 

(a)declare any dividend payable in
capital stock to all holders of Common Stock (or other equity securities) or make any other distribution to all holders of Common
Stock (or other equity securities); or

 

(b)offer to the holders of Common Stock
(or other equity securities) rights to subscribe for or purchase any shares of any class of stock or any other rights or options;
or

 

(c)effect any reclassification of Common
Stock (or other equity securities) or any capital reorganization, or any consolidation or merger, or any sale, transfer or other
disposition of its property, assets and business substantially as an entirety, or the liquidation, dissolution or winding up of
the Company, including any such transaction giving rise to the rights of Holders of Warrants under Section 3.4;

 

then, in each such case, the Company
shall cause written notice of such proposed action to be mailed to each registered Holder of a Warrant Certificate. Such
notice shall specify the date on which the books of the Company shall close, or a record be taken, for determining holders of
Common Stock (or other equity securities) entitled to receive such stock dividend or other distribution or such rights or
options, or the date on which such reclassification, reorganization, consolidation, merger, sale, transfer, other
disposition, liquidation, dissolution, winding up or exchange shall take place or commence, as the case may be, and the date
as of which it is expected that holders of record of Common Stock (or other equity securities) shall be entitled to receive
securities or other property deliverable upon such action, if any such date has been fixed. Such notice shall be mailed, in
the case of any action covered by Sections 3.6(a) or (b) above, at least twenty (20) days prior to the record date for
determining holders of the Common Stock (or other equity securities) for purposes of receiving such payment or offer, and, in
the case of any action covered by Section 3.6(c) above, at least twenty (20) days prior to the earlier of the date upon which
such action is to take place or any record date to determine holders of Common Stock (or other equity securities) entitled to
receive such securities or other property.

 

    	11

    	 

    
 

SECTION 3.7 Notice of
Adjustments. Whenever any adjustment is made pursuant to this Article III, the Company shall cause written notice of such adjustment
to be mailed to each registered Holder of a Warrant Certificate within thirty (30) days thereafter, such notice to include in reasonable
detail (i) a description of the events precipitating the adjustment and (ii) the computation of any adjustments, the Exercise Price,
the number of shares or the securities or other property purchasable upon exercise of each Warrant after giving effect to such
adjustment, verified by the independent accountants pursuant to Section 3.5 above.

 

SECTION 3.8 Warrant
Certificate Amendments. Irrespective of any adjustments pursuant to this Article III, Warrant Certificates theretofore or thereafter
issued need not be amended or replaced.

 

SECTION 3.9 Fractional
Shares. The Company shall not be required upon the exercise of any Warrant to issue fractional shares of Common Stock which
may result from adjustments in accordance with this Article III to the Exercise Price or number of shares of Common Stock purchasable
under each Warrant. If more than one Warrant is exercised at one time by the same registered holder, the number of full shares
of Common Stock which shall be deliverable shall be computed based on the number of shares deliverable in exchange for the aggregate
number of Warrants exercised. With respect to any final fraction of a share called for upon the exercise of any Warrant or Warrants,
the Company shall pay a cash adjustment to the registered Holder in respect of such final fraction in an amount equal to the same
fraction of the market value of a share of Common Stock, as determined by the Company on the basis of the closing market price
per share of Common Stock on the business day next preceding the date of such exercise. The registered holder of each Warrant Certificate,
by his acceptance of the Warrant Certificate, shall expressly waive any right to receive any fractional share of Common Stock upon
exercise of the Warrants. All calculations under this Section 3.10 shall be made to the nearest 1/100th of a share.

 

    	12

    	 

    

   

ARTICLE IV

 

OTHER PROVISIONS RELATING TO RIGHTS OF

REGISTERED HOLDERS OF WARRANT CERTIFICATES

 

SECTION 4.1 Rights of
Warrant Holders; Voting. No Warrant Certificate shall entitle the registered holder thereof to any of the rights of a shareholder
of the Company, including without limitation the right to vote, to receive dividends and other distributions, to receive any notice
of, or to attend, meetings of stockholders or any other proceedings of the Company. Notwithstanding the foregoing, all holders
of Warrants, other than the Company and its Affiliates, shall be entitled to exercise any rights to vote or to grant or withhold
consent provided for in this Warrant Agreement to the extent so provided.

 

SECTION 4.2 Registration
Rights. The Company covenants and agrees with the Investor and any subsequent Holders of the Shares that the Investor and such
subsequent Holders shall have the same registration rights with respect to the Shares as if they had been purchasers under that
certain Registration Rights Agreement, dated concurrently herewith, between the Company and the purchaser of the Series A Shares
of the Company listed therein.

 

SECTION 4.3 Subscription
Agreement Rights. The Company covenants and agrees with the Investor and any subsequent Holders of the Shares that the Investor
and such subsequent Holders shall have the same rights and obligations with respect to the Shares as if they had been purchasers
under that certain Subscription Agreement, dated concurrently herewith, between the Company and the purchaser of Series A Shares
listed therein (the “Subscription Agreement”). All of the representations and warranties, agreements and covenants
of the Company under the Subscription Agreement are hereby incorporated by reference into this Warrant Agreement as though made
to and for the benefit of the Investor and any subsequent Holders of the Shares. In addition, the rights and privileges of the
Company and of the Series A Shares set forth in the Subscription Agreement are incorporated by reference into this Warrant Agreement
for the benefit of the Company or the Investor and any subsequent Holders, as the case may be.

 

    	13

    	 

    

  

ARTICLE V

 

SPLIT UP, COMBINATION, EXCHANGE,

TRANSFER AND CANCELLATION OF WARRANT CERTIFICATES

 

SECTION 5.1 Split Up,
Combination, Exchange and Transfer of Warrant Certificates. Prior to the expiration of the Warrant Exercise Period, Warrant
Certificates, subject to the provisions of Section 5.2 hereof, may be split up, combined or exchanged for other Warrant Certificates
representing a like aggregate number of Warrants or may be transferred in whole or in part. Any holder desiring to split up, combine
or exchange a Warrant Certificate or Warrant Certificates shall make such request in writing delivered to the Company and shall
surrender the Warrant Certificate or Warrant Certificates so to be split up, combined or exchanged at said office. Upon any such
surrender for split up, combination, exchange or transfer, the Company shall execute and deliver to the person entitled thereto
a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The Company shall not be required to effect
any split up, combination, exchange or transfer which will result in the issuance of a Warrant Certificate evidencing a fraction
of a Warrant. The Company may require the holder to pay a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any split up, combination or exchange of Warrant Certificates prior to the issuance of any new Warrant Certificate.

 

SECTION 5.2 Cancellation
of Warrant Certificates. Any Warrant Certificate surrendered upon the exercise of Warrants or for split up, combination or
exchange, or purchased or otherwise acquired by the Company, shall be cancelled and shall not be reissued by the Company; and,
except as provided in Section 2.5 hereof in case of the exercise of less than all of the Warrants evidenced by a Warrant Certificate,
or in Section 5.1 hereof in case of a split up, combination, exchange or transfer, no Warrant Certificate shall be issued hereunder
in lieu of such cancelled Warrant Certificate. Any Warrant Certificate so cancelled shall be destroyed by the Company.

 

    	14

    	 

    

   

ARTICLE VI

 

OTHER MATTERS

 

SECTION 6.1 Notices.
Any notice or demand required by this Agreement to be given or made by the Warrant Agent or by the registered Holder of any Warrant
Certificate to or on the Company shall be sufficiently given or made if sent by first-class or registered mail, postage prepaid,
addressed as follows:

Xzeres Corp. 

9025 SW Hillman Ct, Suite 3126 

Portland, OR 97070 

Attn: CEO

 

Any notice or demand required by this Agreement
to be given or made by the Company to or on the registered Holder of any Warrant Certificate shall be sufficiently given or made,
whether or not such holder receives the notice, three (3) days after mailing if sent by first-class or registered mail, postage
prepaid, addressed to such registered holder at his last address as shown on the books of the Company. Otherwise, such notice or
demand shall be deemed given when received by the party entitled thereto.

  

    	15

    	 

    
  

Any notice pursuant to
this Agreement to be given by the Company to the Investor shall be sufficiently given if sent by first-class mail, postage prepaid,
addressed as follows:

 

Ronald Elvidge

1343 Locust Street

Walnut Creek, CA 94596

  

SECTION 6.2 Defects
in Notice. Failure to file any certificate or notice or to mail any notice, or any defect in any certificate or notice pursuant
to this Agreement shall not affect in any way the rights of any registered Holder of a Warrant Certificate or the legality or validity
of any adjustment made pursuant to Article III hereof, or any transaction giving rise to any such adjustment, or the legality or
validity of any action taken or to be taken by the Company.

 

SECTION 6.3 Opinion
of Counsel. Concurrently with the initial issuance of the Warrants hereunder, counsel to the Company shall deliver to the Investor
an opinion, dated the date of such issuance, satisfactory to counsel for the Investor, to the effect that (i) the Warrants and
this Agreement have been authorized by all necessary corporate action, (ii) the Warrants and this Agreement have been duly executed
and delivered and constitute legal, valid and binding agreements of the Company enforceable in accordance with their terms, except
as such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in
effect relating to creditors’ rights generally and (b) general principles of equity (regardless of whether such enforcement
is considered in a proceeding in equity or at law), (iii) the Company has reserved out of its authorized and unissued Shares,
a number of Shares sufficient to provide for the exercise of the rights of purchase represented by the Warrants and (iv) the Shares,
when issued upon exercise of Warrants in accordance with the terms of the Warrants and this Agreement, will be validly issued,
fully paid and nonassessable and free of preemptive rights.

 

    	16

    	 

    
 

SECTION 6.4 Supplements
and Amendments. The Company and the Investor may from time to time supplement or amend this Agreement, without the approval
of any Holder, in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or
inconsistent with any other provision herein or to make any other provisions in regard to matters or questions arising hereunder
which the Company and the Investor may deem necessary or desirable and which shall not be inconsistent with the provisions of the
Warrants and which shall not adversely affect the interests of the Holders.

 

SECTION 6.5 Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Investor shall bind and inure to
the benefit of them and their respective successors and assigns hereunder including any Holder of the Shares.

 

SECTION 6.6 Termination.
This Agreement shall terminate at the close of business on the Expiration Date. Notwithstanding the foregoing, this Agreement will
terminate on any earlier date when all Warrants have been exercised. The provisions of Sections 4.2 and 4.3 shall survive both
such terminations.

 

SECTION 6.7 Governing
Law. The validity, interpretation and performance of this Agreement, of each Warrant Certificate issued hereunder and of the
respective terms and provisions thereof shall be governed by the law of the State of California (without regard to principles of
conflicts of laws thereof).

 

SECTION 6.8 Standing.
Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be
construed, to confer upon, or give to, any person or corporation other than the Company and the Investor any right, remedy or claim
under or by reason of this Agreement or of any covenant, condition, stipulation, promise or agreement contained herein.

 

    	17

    	 

    
 

SECTION 6.9 Headings.
The descriptive headings of the articles and sections of this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions hereof.

 

SECTION 6.10 Counterparts.
This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original; but
such counterparts shall together constitute but one and the same instrument.

 

SECTION 6.11 Attorney’s
Fees. In any action or proceeding brought to enforce any provision of this Warrant Agreement or where any provision hereof
or thereof is validly asserted as a defense, the successful party shall be entitled to recover reasonable attorneys’ fees
in addition to any other available remedy. The Company shall pay all costs and expenses, including without limitation reasonable
attorney’s fees and all expenses and disbursements of counsel, incurred by any Holder of Warrants or Shares in any action
to protect or enforce the rights of such Holder hereunder; provided, however, that no such payment by the Company shall be required
unless such Holder shall have prevailed in such action.

 

IN WITNESS WHEREOF, this
Agreement has been duly executed by the parties

hereto as of the day and year first above written.

 

	XZERES CORP.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title	 	 
	 	 	 
	RONALD ELVIDGE	 
	 	 	 
	By: 	 	 

 

    	18

    	 

    

   

[LEGEND]

 

Exhibit A

FORM OF WARRANT CERTIFICATE

 

No.

 

CERTIFICATE FOR 1,428,571 WARRANTS

EXERCISABLE COMMENCING OCTOBER 23, 2012 AND
ENDING

5:00 P.M. CALIFORNIA TIME, ON

OCTOBER 23, 2017

 

XZERES CORP.,

A NEVADA CORPORATION

 

COMMON STOCK PURCHASE WARRANT CERTIFICATE

 

THIS CERTIFIES that

or registered assigns is the registered holder
(the “Registered Holder”) of the number of Warrants set forth above, each of which represents the right to purchase
1.5 fully paid and non-assessable shares of Common Stock, par value $.01 per share (the “Common Stock”), of Xzeres
Corp., a Nevada corporation (the “Company”), at the exercise price per share of Common Stock (the “Exercise Price”)
set forth in the Warrant Agreement dated as of October 23, 2012 (the “Warrant Agreement”) between the Company and (                   
) at any time during the Warrant Exercise Period hereinafter referred to, by surrendering this Warrant Certificate, with the form
of election to purchase set forth hereon duly executed and by paying in full the Exercise Price, plus transfer taxes, if any. Payment
of the Exercise Price may be made at the option of the holder hereof in United States currency by certified check or official bank
check or money order payable to the order of the Company.

 

This Warrant may be exercised
at any time after October 23, 2012 and on or prior to October 23, 2017. No warrant may be exercised after October 23, 2017 (the
“Expiration Date”). All Warrants evidenced hereby shall thereafter become void.

 

    	19

    	 

    

  

Upon the exercise of less
than all of the Warrants evidenced by this Warrant Certificate, there shall be issued to the Registered Holder a new Warrant Certificate
in respect of the Warrants not exercised.

 

Prior to the Expiration Date,
the Registered Holder shall be entitled to exchange this Warrant Certificate, with or without other Warrant Certificates, for another
Warrant Certificate or Warrant Certificates for the same aggregate number of Warrants, upon surrender of this Warrant Certificate
at the office of the Company.

 

The validity, interpretation
and performance of this Warrant Certificate shall be governed by the laws of the State of California (without regard to the principles
of conflicts of laws thereof).

 

IN WITNESS WHEREOF,
the Company has caused this Warrant Certificate to be duly executed under its facsimile seal.

 

	 	XZERES CORP.
	 	 	 
	 	By:	 
	 	Title:	 

 

 

[Seal]                          Attest:

  

 

Assistant Secretary

 

    	20

    	 

    

   

ELECTION TO PURCHASE

 

The undersigned hereby
irrevocably elects to exercise Warrants represented by this Warrant Certificate and to purchase the shares of Common Stock issuable
upon the exercise of said Warrants, and requests that Certificates for such shares be issued and delivered as follows:

 

ISSUE TO:

 

 

(Name)

 

 

(Address, Including Zip Code)

 

 

(Social Security or Tax Identification
Number)

 

DELIVER TO:

 

(Name)

 

 

at

(Address, Including Zip Code)

 

If the number of Warrants
hereby exercised is less than all the Warrants represented by this Warrant Certificate, the undersigned requests that a new Warrant
Certificate representing the number of full Warrants not exercised be issued and delivered as set forth below.

 

DATED:

 

Name of Warrantholder or Assignee:

 

Address:

 

    	21

    	 

    

   

In full payment of the purchase price with
respect to the Warrants exercised and transfer taxes, if any, the undersigned hereby tenders payment of $______ by certified check
or official bank check or money order payable in United States currency to the order of the Company.

 

Dated:

 

 

Signature

 

(Signature must conform in all respects to
name of holder as specified on the face of the Warrant Certificate.)

 

PLEASE INSERT SECURITY OR TAX IDENTIFICATION
NUMBER OF HOLDER

 

    	22Exhibit 10.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of October 22, 2012, by and among XZERES Corp, a Nevada
Corporation (the “Company”), and the investors signatory hereto (each a “Investor” and collectively,
the “Investors”).

 

This Agreement is made pursuant
to the Securities Subscription Agreement, dated as of the date hereof among the Company and the Investors (the “Subscription
Agreement”).

 

The Company and the Investors
hereby agree as follows:

 

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

 

“Advice” has
the meaning set forth in Section 6(c).

 

“Commission Comments”
means written comments pertaining solely to Rule 415 which are received by the Company
from the Commission, and a copy of which shall have been provided by the Company to the Holders, to a filed Registration Statement
which requires the Company to limit the amount of Registrable Securities which may be included therein to a number of Registrable
Securities which is less than such amount sought to be included thereon as filed with the Commission.

 

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

 

“Effectiveness Period”
means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing on the Effective
Date of such Registration Statement and ending on the earliest to occur of (a) the fifth anniversary of such Effective Date, (b)
such time as all of the Registrable Securities covered by such Registration Statement have been publicly sold by the Holders of
the Registrable Securities included therein, or (iii) such time as all of the Registrable Securities covered by such Registration
Statement may be sold by the Holders pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders.

 

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

 

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

 

    	1

    	 

    

 

 

“Indemnified Party”
has the meaning set forth in Section 5(c).

 

“Indemnifying Party”
has the meaning set forth in Section 5(c).

 

“Losses”
has the meaning set forth in Section 5(a).

 

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

 

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

 

“Registrable Securities”
means: (i) the Shares, (ii) the Warrant Shares, (iii) any shares of Common Stock issuable pursuant to the Purchase Agreement, and
(iv) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event,
or any exercise price adjustment with respect to any of the securities referenced in (i), (ii), or (iii) above.

 

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

 

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

 

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

 

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

 

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

 

“Shares” means
the shares of Common Stock issuable upon conversion of the Series A Convertible Preferred Stock.

 

    	2

    	 

    

 

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

 

2.           Registration.

 

(a)      Demand
Registrations. Holders of 60% or more of the Registrable Securities may request that the Company file a registration statement
with respect to at least 25% of such shares of Registrable Securities or any lesser percentage, provided that, in each case, the
anticipated net proceeds from such offering exceed $1,000,000. The Company is not obligated to effect a requested registration
(A) prior to the earlier of (i) October 1, 2014 and (ii) six months following the effective date of a registration statement for
a public offering of the Company’s securities, or (B) after the Company has completed two such requested registrations. In
addition, holders of 25% or more of Registrable Securities may request the Company to effect a registration on Form S-3 (if the
Company is eligible to utilize such form), provided that such registration is limited to one per twelve month period and results
in net proceeds of at least $1,000,000. All expenses of two of such registrations (except underwriting fees, discounts or commissions
or fees of counsel for selling shareholders) are to be paid by the Company.

 

(b)        Piggyback
Registrations. The holders of Registrable Securities shall have “piggyback” registration rights on all registrations,
subject to the right of the Company and its underwriters to reduce, on a pro-rata basis, the number of shares proposed to be registered
by all investors as they deem necessary. All expenses of piggyback registrations (except underwriting fees, discounts or commissions
or fees of counsel for selling shareholders) are to be paid by the Company.

 

(c)        the
Company shall prepare and file with the Commission a Registration Statement under the Securities Act which shall include the Registrable
Securities. Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from
the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter,
which shall not occur without such Holder’s consent) the “Plan of Distribution” attached hereto as Annex A. The
Company (A) shall use its best efforts to cause such Registration Statement to become effective as soon as practicable; (B) use
its reasonable best efforts to keep the Registration Statement continuously effective during the entire Effectiveness Period; (C)
shall take all other reasonable action necessary under any federal or state law or regulation of any governmental authority to
permit all such Registrable Securities to be sold or otherwise disposed of; and (D) shall maintain such compliance with each such
federal and state law and regulation of any governmental authority for the period necessary for Holder to promptly effect the proposed
sale or other disposition, until such time that all of such Registrable Securities are no longer, by reason of Rule 144 under the
Securities Act, required to be registered for the sale thereof by such Holders.

 

(d)        The
initial Registration Statement shall contain 1) Common Shares (to be issuable upon conversion of the Series A Preferred Shares
into Common Shares), and 2) the Warrant Shares. In the event that the amount of securities which may be included in the Registration
Statement filed is limited due to Commission Comments, any required cutbacks of Shares or Warrant Shares shall be applied to the
Investors on a pro-rata basis based upon the number of such shares sought to be included in such Registration Statement. By 5:00
p.m. (New York City time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company
shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection
with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).

 

    	3

    	 

    

 

(e)       If
all of the Registrable Securities cannot be included in the Registration Statement filed pursuant to Section 2(a) or 2(b) due to
Commission Comments, then the Company shall prepare and file by the applicable Filing Date for such Registration Statement(s),
such number of additional Registration Statements as may be necessary in order to ensure that all Registrable Securities are
covered by an existing and effective Registration Statement. Any Registration Statements to be filed under this Section shall be
for an offering to be made on a continuous basis pursuant to Rule 415, on Form S-3 (or on such other form appropriate for such
purpose). Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the
Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter,
which shall not occur without such Holder’s consent) the “Plan of Distribution” attached hereto as Annex A.

 

(f)        The
Company will use its best efforts, during the period that such registration statement is required to be maintained hereunder, to
(A) file such post-effective amendments and supplements thereto as may be required by the Securities Act and the rules and regulations
thereunder; (B) furnish to the Holder such numbers of copies of a final prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities
owned by Holder; and (C) cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing
the Registrable Securities to be sold, which certificates will not bear any restrictive legends.

 

(g)       Each
Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in a Registration
Statement and shall not be required to pay any liquidated or other damages under Section 2(c) to any Holder who fails to furnish
to the Company a fully completed Selling Holder Questionnaire at least two Trading Days prior to the Filing Date (subject to the
requirements set forth in Section 3(a)).

 

3.          Registration
Procedures.

 

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

 

(a)       Not
less than four Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement
thereto, the Company shall furnish to each Holder copies of the “Selling Stockholders” section of such document, the
“Plan of Distribution” and any risk factor contained in such document that addresses specifically this transaction
or the Selling Stockholders, as proposed to be filed which documents will be subject to the review of such Holder. The Company
shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Stockholder”
section thereof differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as amended or supplemented).
The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which it (i) characterizes
any Holder as an underwriter, (ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter, or (iii)
reduces the number of Registrable Securities being registered on behalf of a Holder except in accordance with Article 2 of this
Agreement, without such Holder’s express written authorization.

 

    	4

    	 

    

 

 

(b)        (i)
Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the
applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus
to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration
Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all
correspondence from and to the Commission relating to such Registration Statement that would not result in the disclosure to the
Holders of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions
of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities
covered by each Registration Statement.

 

(c)        Notify
the Holders in writing as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three Trading Days prior
to such filing and, in the case of (v) below, not less than three Trading Days prior to the financial statements in any Registration
Statement becoming ineligible for inclusion therein) (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment
to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall
provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as
a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material
and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same
has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments
or supplements to a Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission
of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time
that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in
the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

    	5

    	 

    

 

 

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

 

(e)        Furnish
to each Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits
that have not been filed via EDGAR promptly after the filing of such documents with the Commission.

 

(f)       The
Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement
thereto.

 

(g)        Prior
to any public offering of Registrable Securities, register or qualify such Registrable Securities for offer and sale under the
securities or Blue Sky laws of all jurisdictions within the United States as any Holder may request, to keep each such registration
or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration
Statements.

 

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

 

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

 

    	6

    	 

    

 

 

4.        Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred
to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed
for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses
is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. Selling commissions applicable to the sale of Registrable Securities and all
fees and expenses of legal counsel for any Holder shall be borne by such Holder.

 

5.        Indemnification.

 

(a)    
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify
and hold harmless each Holder, the officers, directors, agents, investment advisors, partners, members and employees of each of
them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable
law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs
of preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising
out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus
or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were
made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely
upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the
extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities
and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus
or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A
hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use
by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only
if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission
giving rise to such Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat or
assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

    	7

    	 

    

 

 

(b)        Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder’s
failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue statement of a material fact
contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto,
or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or
to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it
being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in
any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v),
the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only
if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission
giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater
in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving
rise to such indemnification obligation.

 

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

 

    	8

    	 

    

 

 

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

 

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

 

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

 

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

 

    	9

    	 

    

 

 

The indemnity and contribution
agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

6.        Miscellaneous

 

(a)
    With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit
the sale of the Restricted Securities to the public without registration, after such time as a public market exists for the Common
Stock of the Company, the Company agrees to use its reasonable efforts to:

 

(i)
    Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at
all times after the effective date that the Company becomes subject to the reporting requirements of the Securities Act or the
Securities Exchange Act of 1934, as amended.

 

(ii)    
File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (at any time after it has become subject to such
reporting requirements);

 

(iii)    
So long as a Purchaser owns any Restricted Securities to furnish to the Purchaser forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of said Rule 144 (at any time after 90 days after the effective
date of the first registration statement filed by the Company for an offering of its securities to the general public), and of
the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the
most recent annual or quarterly report of the Company, and such other reports and documents of the Company and other information
in the possession of or reasonably obtainable by the Company as a Purchaser may reasonably request in availing itself of any rule
or regulation of the Commission allowing a Purchaser to sell any such securities without registration.

 

(b)    
Transfer of Registration Rights. The rights to cause the Company to register securities granted Investors above
may be assigned to a transferee or assignee reasonably acceptable to the Company in connection with any transfer or assignment
of Registrable Securities by a purchaser provided that the Company is first given notice of the transfer or assignment and: (i)
such transfer may otherwise be effected in accordance with applicable securities laws, and (ii) either (A) such assignee or transferee
acquires at least 50,000 shares of Preferred Shares and/or Common Shares issued upon conversion thereof (appropriately adjusted
for Recapitalizations) or, if lesser, all of such shares held by the purchaser or (B) such transferee is a family member of the
Investor or a trust for the benefit of the Investor or a family member of the Investor. Notwithstanding the foregoing, the rights
to cause the Company to register securities may be assigned to any constituent partner of a Investor, without compliance with
item (ii) above.

 

    	10

    	 

    

 

 

(c)    Standoff
Agreement. Each Investor agrees in connection with the Company’s public offering of the Company’s securities that,
upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, not to sell,
make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Registrable Securities (other than
those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be,
for such period of time (not to exceed ninety (90) days) from the effective date of such registration as may be requested by the
underwriters.

 

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

 

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

 

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

 

(g)    Amendments
and Waivers. The provisions of this Agreement, including the provisions of this Section 6(j), may not be amended, modified
or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Holders of no less than a majority in interest of the then outstanding Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively
to the rights of certain Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders
of at least a majority of the Registrable Securities to which such waiver or consent relates; provided, further that no
amendment or waiver to any provision of this Agreement relating to naming any Holder or requiring the naming of any Holder as an
underwriter may be effected in any manner without such Holder’s prior written consent. Section 2(a) may not be amended or
waived except by written consent of each Holder affected by such amendment or waiver.

 

    	11

    	 

    

 

 

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

 

	 	If to the Company:	 	XZERES Corp
	 	 	 	 
	 	 	 	9025 SW Hillman Ct, Suite 3126
	 	 	 	 
	 	 	 	Portland, OR 97070
	 	 	 	 
	 	 	 	Attn: CEO

 

	 	If to a Investor:	 	To the address set forth under such Investor’s name on the signature pages hereto.

 

	 	With a copy to:	 	Telles, Walker & Kochenderfer, LLP
	 	 	 	1350 Treat Blvd., Suite 400
	 	 	 	Walnut Creek, CA 94597
	 	 	 	Attention:  Robert L. Telles, Jr., Esq.
	 	 	 	Rtelles@twklaw.com
	 	 	 	 
	 	If to any other Person who is then the registered Holder:

 

	 	 	To the address of such Holder as it appears in the stock transfer books of the Company

 

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

 

(i)
    Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations
hereunder without the prior written consent of each Holder. Each Holder may assign their respective rights hereunder in the manner
and to the Persons as permitted under the Purchase Agreement.

 

    	12

    	 

    

 

 

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

 

(k)    
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard
to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates,
employees or agents) will be commenced in the California Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of Contra Costa County, California for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding,
any claim that it is not personally subject to the jurisdiction of any California Court, or that such Proceeding has been commenced
in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to
process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement
or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Agreement,
then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs
and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

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

 

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

 

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

 

    	13

    	 

    

 

 

(o)    
Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under this Agreement
are several and not joint with the obligations of each other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under this Agreement. Nothing contained herein or in any Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by this Agreement or any other Transaction Document.
Each Investor acknowledges that no other Investor will be acting as agent of such Investor in enforcing its rights under this
Agreement. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any
Proceeding for such purpose. The Company acknowledges that each of the Investors has been provided with the same Registration
Rights Agreement for the purpose of closing a transaction with multiple Investors and not because it was required or requested
to do so by any Investor.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW]

 

    	14

    	 

    

 

 

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

 

	 	XZERES Corp
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF INVESTORS TO FOLLOW]

 

    	15

    	 

    

 

 

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

 

	 	 	RONALD ELVIDGE
	 	 	 
	 	 	 
	 	 	ADDRESS FOR NOTICE
	 	 	 
	 	 	Street: 1343 Locust Street
	 	 	 
	 	 	City/State/Zip: Walnut Creek, CA 93=4596
	 	 	 
	 	 	Attention: Ronald Elvidge
	 	 	 
	 	 	Tel: 925-988-0222
	 	 	 
	 	 	Fax: 925-988-0401
	 	 	 
	 	 	Email: elvidge@sbcglobal.net

 

    	16

    	 

    

 

 

Annex A

 

Plan of Distribution

 

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

 

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

 

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

 

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

 

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

 

privately
negotiated transactions;

 

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

 

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

 

a combination
of any such methods of sale; and

 

any other
method permitted pursuant to applicable law.

 

The Selling Stockholders
may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from
the purchaser) in amounts to be negotiated. The Selling Stockholders do not expect these commissions and discounts to exceed what
is customary in the types of transactions involved.

 

The
Selling Stockholders may from time to time pledge or grant a security interest in some or all of the Shares owned by them and,
if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell shares of
Common Stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable
provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus.

 

    	17

    	 

    

 

 

Upon the Company being
notified in writing by a Selling Stockholder that any material arrangement has been entered into with a broker-dealer for the sale
of Common Stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker
or dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing
(i) the name of each such Selling Stockholder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii)
the price at which such the shares of Common Stock were sold, (iv)the commissions paid or discounts or concessions allowed to such
broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information
set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction. In addition, upon the
Company being notified in writing by a Selling Stockholder that a donee or pledgee intends to sell more than 500 shares of Common
Stock, a supplement to this prospectus will be filed if then required in accordance with applicable securities law.

 

The Selling Stockholders
also may transfer the shares of Common Stock in other circumstances, in which case the transferees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.

 

The Selling Stockholders
and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Discounts, concessions, commissions and similar selling expenses, if any, that can be attributed to the
sale of Shares will be paid by the Selling Stockholder and/or the purchasers. Each Selling Stockholder has represented and warranted
to the Company that it acquired the securities subject to this registration statement in the ordinary course of such Selling Stockholder’s
business and, at the time of its purchase of such securities such Selling Stockholder had no agreements or understandings, directly
or indirectly, with any person to distribute any such securities.

 

The Company has advised
each Selling Stockholder that it may not use shares registered on this Registration Statement to cover short sales of Common Stock
made prior to the date on which this Registration Statement shall have been declared effective by the Commission. If a Selling
Stockholder uses this prospectus for any sale of the Common Stock, it will be subject to the prospectus delivery requirements of
the Securities Act. The Selling Stockholders will be responsible to comply with the applicable provisions of the Securities Act
and Exchange Act, and the rules and regulations thereunder promulgated, including, without limitation, Regulation M, as applicable
to such Selling Stockholders in connection with resales of their respective shares under this Registration Statement.

 

The Company is required
to pay all fees and expenses incident to the registration of the shares, but the Company will not receive any proceeds from the
sale of the Common Stock. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages
and liabilities, including liabilities under the Securities Act.

 

    	18

    	 

    

 

 

Annex B

 

XZERES CORP

 

Selling Securityholder Notice and Questionnaire

 

The undersigned beneficial owner of common
stock (the “Common Stock”), of XZERES Corp, a Nevada Corporation (the “Company”) understands
that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a Registration Statement for the registration and resale of the Registrable Securities, in accordance with the terms of the Registration
Rights Agreement, dated as of October 2, 2012 (the “Registration Rights Agreement”), among the Company and the
Investors named therein. A copy of the Registration Rights Agreement is available from the Company upon request at the address
set forth below. All capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Registration
Rights Agreement.

 

The undersigned hereby provides the following information to the
Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name	 	 
	 	 	 	 
	 	(a)	 	Full Legal Name of Selling Securityholder
	 	 	 	 
	 	 	 	 
	 	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
	 	 	 	 
	 	 	 	 
	 	(c)	 	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by the questionnaire):
	 	 	 	 

 

2. Address for Notices to Selling Securityholder:

	 
	 
	 
	Telephone:	 
	Fax:	 
	Contact Person:	 

 

    	19

    	 

    

 

 

3. Beneficial Ownership of Registrable
Securities:

 

			

	 	Type and Principal Amount of Registrable Securities beneficially owned:
	 	 
	 	 
	`	 
	 	 

 

4. Broker-Dealer Status:

 

	(a)		Are you a broker-dealer?

 

    Yes [  ]    No [  ]

 

    Note:    If yes, the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

	(b)		Are you an affiliate of a broker-dealer?

 

    Yes [  ]        No [  ]

 

	(c)		If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable
Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you
had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

    Yes [  ]        No [  ]

 

	Note:		If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.

 

5. Beneficial Ownership of Other Securities
of the Company Owned by the Selling Securityholder.

 

Except
as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the Registrable Securities listed above in Item 3.

 

	 	 Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
	 	 
	 	 
	`	 
	

			

 

    	20

    	 

    

 

 

6. Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

		 
	 	State any exceptions here:
	 	 
	 	 

 

			

 

7. The Company has advised each Selling
Stockholder that it may not use shares registered on the Registration Statement to cover short sales of Common Stock made prior
to the date on which the Registration Statement is declared effective by the Commission, in accordance with 1997 Securities and
Exchange Commission Manual of Publicly Available Telephone Interpretations Section A.65. If a Selling Stockholder uses the prospectus
for any sale of the Common Stock, it will be subject to the prospectus delivery requirements of the Securities Act. The Selling
Stockholders will be responsible to comply with the applicable provisions of the Securities Act and Exchange Act, and the rules
and regulations thereunder promulgated, including, without limitation, Regulation M, as applicable to such Selling Stockholders
in connection with resales of their respective shares under the Registration Statement.

 

The undersigned agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein that may occur subsequent to the date hereof and prior to the Effective Date for
the Registration Statement.

 

By signing below, the undersigned consents to the disclosure of
the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the Registration
Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection
with the preparation or amendment of the Registration Statement and the related prospectus.

 

IN WITNESS WHEREOF the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

  

	Dated:	Beneficial Owner: 	
	 	 	 

 

	 	By:	 
	 	 	Name
	 	 	Title

 

    	21

    	 

    

 

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED
NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

Peter Hogan, Esq.

Partner

Richardson & Patel LLP

1100 Glendon Avenue, Suite 850

Los Angeles, California 90024

310.208.1182 (Tel)

310.208.1154 (Fax)

phogan@richardsonpatel.com

    	22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]