Document:

Asset Purchase Agreement

 Exhibit 10.4 
 Execution Version 
 * AN ASTERISK INDICATES WHERE PORTIONS OF THIS AGREEMENT
HAVE 
 BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT 
 MADE TO THE SECURITIES AND EXCHANGE COMMISSION. THESE NON-PUBLIC 
 PORTIONS
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND 
 EXCHANGE COMMISSION. 
 ASSET PURCHASE AGREEMENT 
 among 
 CARLSON SOLAR, 
 a California
corporation 
 MARY CARLSON, 
 an individual Resident of the State of California, 
 SCOTT CARLSON, 
 an individual Resident of the State of California, 
 BRITTANY CARLSON, 
 an individual Resident of the State of California, 
 BRANDON CARLSON, 
 an individual
Resident of the State of California, 
 and 
 REAL GOODS CARLSON, INC., 
 a California corporation 
 Dated as of January 1, 2008 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE I	 	    DEFINITIONS	  	1
			
	        1.1	 	Definitions	  	1
			
	ARTICLE II	 	    PURCHASE AND SALE	  	8
			
	        2.1	 	Transferred Assets	  	8
	        2.2	 	Excluded Assets	  	8
	        2.3	 	Assumed Liabilities	  	8
	        2.4	 	Excluded Liabilities	  	8
	        2.5	 	Vector Contract	  	8
			
	ARTICLE III	 	    PURCHASE PRICE	  	8
			
	        3.1	 	Purchase Price	  	8
	        3.2	 	Adjustments to Purchase Price	  	9
	        3.3	 	Allocation of Purchase Price	  	10
			
	ARTICLE IV	 	    REPRESENTATIONS AND WARRANTIES OF SELLER AND THE SHAREHOLDERS	  	10
			
	        4.1	 	Organization, Qualification and Authority	  	10
	        4.2	 	No Violations	  	11
	        4.3	 	Financial Statements	  	11
	        4.4	 	Interim Changes	  	12
	        4.5	 	Licenses and Permits	  	13
	        4.6	 	Real Property	  	13
	        4.7	 	Transferred Assets	  	14
	        4.8	 	Seller Contracts	  	14
	        4.9	 	Environmental and Safety Matters	  	14
	        4.10	 	Litigation	  	15
	        4.11	 	Seller’s Employees	  	15
	        4.12	 	Seller’s Employee Benefits	  	16
	        4.13	 	Insurance	  	17
	        4.14	 	Broker’s or Finder’s Fee	  	17
	        4.15	 	Intellectual Property	  	17
	        4.16	 	Motor Vehicles	  	18
	        4.17	 	Tax Returns; Taxes	  	18

  

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	        4.18	 	Affiliate Interests	  	18
	        4.19	 	Governmental and Other Third Party Consents	  	18
	        4.20	 	Customers and Vendors	  	18
	        4.21	 	Legal and Other Compliance	  	18
	        4.22	 	Inventories	  	19
	        4.23	 	Notes, Accounts Receivable and Accounts Payable	  	19
	        4.24	 	Outstanding Bids, Bid Bonds and Performance Bonds	  	19
	        4.25	 	Product and Service Warranties; Defects; Liability	  	20
	        4.26	 	Powers of Attorney	  	20
	        4.27	 	Booked Jobs and Work in Process	  	20
	        4.28	 	No Omissions or Misstatements	  	20
			
	ARTICLE V	 	    REPRESENTATIONS AND WARRANTIES OF BUYER	  	20
			
	        5.1	 	Power and Authority	  	20
	        5.2	 	Consents and Approvals	  	21
	        5.3	 	Broker’s Finder’s Fee	  	21
			
	ARTICLE VI	 	    COVENANTS OF PARTIES	  	21
			
	        6.1	 	Confidentiality	  	21
	        6.2	 	Required Consents	  	21
	        6.3	 	Noncompete	  	21
	        6.4	 	Employee Matters	  	23
	        6.5	 	Cooperation and Information Sharing	  	23
	        6.6	 	Collection of Accounts Receivables	  	24
	        6.7	 	Use of Name	  	24
	        6.8	 	Transferred Vehicles	  	24
	        6.9	 	Financial Statements	  	24
	        6.10	 	Taxes	  	25
	        6.11	 	Waiver of Bulk Sale Law	  	25
	        6.12	 	Securities Matters	  	25
	        6.13	 	Further Assurances	  	26
			
	ARTICLE VII	 	    CLOSING DELIVERIES	  	26
			
	        7.1	 	Deliveries by Seller and the Shareholders	  	26
	        7.2	 	Deliveries by Buyer	  	27

  

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	ARTICLE VIII	 	    INDEMNIFICATION	  	28
			
	        8.1	 	Indemnification	  	28
	        8.2	 	Limitations of Indemnity	  	28
	        8.3	 	Indemnification Procedures — Third Party Claims	  	29
	        8.4	 	Indemnification Procedures — Other Claims, Indemnification Generally	  	30
	        8.5	 	Exclusive Remedy	  	30
	        8.6	 	Escrow	  	31
			
	ARTICLE IX	 	    MISCELLANEOUS	  	31
			
	        9.1	 	Publicity	  	31
	        9.2	 	Expenses	  	31
	        9.3	 	Entire Agreement; Amendments and Waivers	  	31
	        9.4	 	Notices	  	31
	        9.5	 	Waivers and Amendments	  	33
	        9.6	 	Governing Law	  	33
	        9.7	 	Consent to Jurisdiction and Venue	  	33
	        9.8	 	Attorneys’ Fees and Costs	  	34
	        9.9	 	Counterparts	  	34
	        9.10	 	Invalidity	  	34
	        9.11	 	Negotiated Agreement	  	35
	        9.12	 	Assignment	  	35
	        9.13	 	Severability	  	35

  

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 Execution Version 
 ASSET PURCHASE AGREEMENT 
 ASSET PURCHASE AGREEMENT (the
“Agreement”) dated as of January 1, 2008, among CARLSON SOLAR, a California corporation (“Seller”), MARY CARLSON, an individual resident of the state of California, BRANDON CARLSON, an individual resident of
the state of California, BRITTANY CARLSON, an individual resident of the state of California and SCOTT CARLSON, an individual resident of the state of California, (each, a “Shareholder” and collectively, the
“Shareholders”), and REAL GOODS CARLSON, INC., a California corporation (“Buyer”). 
 R E C I T A L S:

 WHEREAS, Seller owns, operates and conducts a business which provides and installs photovoltaic modules in the State of California
(the “Business”); 
 WHEREAS, the Shareholders own 100% of the issued and outstanding capital stock of Seller; 

WHEREAS, except for the Excluded Assets (as defined below), Seller and the Shareholders desire to sell and transfer the Transferred Assets (as defined
below) to Buyer, and Buyer desires to purchase the Transferred Assets from Seller, subject to the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained in this Agreement and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound hereby, agree as follows: 
 Article I 
 Definitions 
 1.1 Definitions. For purposes of this Agreement, the following terms shall have
the respective meanings set forth below: 
 “Action” means any judicial or administrative action, claim, suit, investigation,
hearing, demand or proceeding by or before any Governmental Authority. 
 “Accounts Payable” means Seller’s ordinary
course current liabilities determined in accordance with Seller’s ordinary and customary accounting practices, consistently applied. 
 “Affiliate” of any specified Person means (i) any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person and (ii) any 5% shareholder
or member of such Person. For purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  

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 “Agreement” means this Agreement and includes all of the schedules and exhibits annexed
hereto. 
 “Allocation” has the meaning set forth in Section 3.3. 
 “Assignment and Assumption Agreement” means the Assignment Agreement from Seller in the form of Exhibit A hereto. 
 “Assumed Liabilities” means only the (i) obligations arising after the Closing Date under the Contracts set forth on Schedule B hereto,
(ii) Job Accounts Payable and Out-of-Pocket Cost for Work in Process as set forth on Schedule E hereto, and (iii) obligations for Assumed Warranty Work. 
 “Assumed Warranty Work” means installation and service work directly related to the replacement or repair of solar systems covered by a manufacturer’s warranty or a customer contract warranty for
which Buyer’s expense for such work, not reimbursed by a manufacturer, does not exceed $5,000 for each such replacement or repair. 
 “Booked Jobs” means jobs for which the sales and services contract has been executed but work on the job has yet to begin. 
 “Bankruptcy Laws” means the United States Bankruptcy Code (Title 11, United States Code) and any state or federal laws pertaining to insolvency, as the same may be amended from time to time.

 “Bill of Sale” means a Bill of Sale from Seller in the form of Exhibit C hereto. 
 “Business” has the meaning set forth in the recitals to this Agreement. 
 “Business Day” means any weekday, except for any weekday on which banks are to close in California. 
 “Cap” has the meaning set forth in Section 8.2(a). 
 “Closing” means the closing of the purchase and sale of the Transferred Assets contemplated by this Agreement. 
 “Closing Date” means, subject to the satisfaction of the conditions set forth herein, the earlier of (i) January 1, 2008, or (ii) such other date as is mutually acceptable to Buyer and
Seller following satisfaction or waiver of the conditions contained in Article VII. 
 “Closing Inventory Value”
means $1,235,260.28 which is the value of the Inventory owned by Seller and related to the Business, excluding Obsolete Inventory, at Seller’s cost, as of the Closing Date, as set forth on Schedule C hereto.  
 “Closing Statement” has the meaning set forth in Section 3.2(b). 
 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act, as amended from time to time. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Completed Jobs” means (i) solar installation with respect to which all work has been performed and the building has passed a final
inspection, or (ii) solar installation with respect to which all work has been performed and for which a final inspection is not required. 
  

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 “Competing Transaction” means any business combination or recapitalization
involving Seller or any acquisition or purchase of all or a significant portion of the Transferred Assets of, or any material equity interest in, either Seller or any other similar transaction with respect to Seller involving any Person or entity
other than Buyer or its Affiliates. 
 “Contract” means any contract, lease, license, instrument, purchase order,
sales order or other agreement or binding commitment, whether or not in written form. 
 “Court Order” means any judgment,
decree, injunction, order or ruling of any Governmental Authority or authority that is binding on any Person or its property under applicable Law. 
 “Customer Rebates Receivable” means rebates from the state of California under the California Solar Initiative program and the California Energy Commission program. 
 “Deductible” has the meaning set forth in Section 8.2. 
 “Disputed Items” has the meaning set forth in Section 3.2(c). 
 “Employee Benefit Plan” means any employee benefit plan or compensation plan, agreement or arrangement covering present or former
employees of Seller (including those within the meaning of ERISA Section 3(3)), stock purchase plan, stock option plan, fringe benefit plan, change in control plan, severance plan, bonus plan, pension plan and any other deferred compensation
agreement or plan or funding arrangement. 
 “Employee Pension Benefit Plan” has the meaning set forth in ERISA
Section 3(2). 
 “Employee Welfare Benefit Plan” has the meaning set forth in ERISA Section 3(1). 
 “Employment Agreement” has the meaning set forth in Section 7.1(e). 
 “Encumbrance” means any lien, charge, claim, security interest, mortgage, pledge or other encumbrance of any nature whatsoever.

 “Environmental Laws” means all federal, state and municipal statutes, regulations, common law and similar provisions
having the force or effect of law, all orders, permits, licenses and approvals with respect to the environment, public health and safety, occupational health and safety, product liability and transportation including without limitation all such
standards of conduct or bases of obligations relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, control or cleanup of any
contaminant, waste, hazardous materials, substances, chemical substances or mixtures, pesticides, toxic chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “Escrow Agreement” means the escrow agreement in the form of Exhibit D hereto. 
 “Escrow Amount” means the amount held in escrow pursuant to the Escrow Agreement. 
  

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 “Escrow Agent” means the Escrow Agent as defined in the Escrow Agreement. 
 “Excluded Assets” means any (i) rights of Seller under this Agreement, (ii) all Contracts that relate solely to the Excluded Assets or
the Excluded Liabilities, (iii) Seller’s corporate seal, corporate minute book, stock records book and any books and records relating to Seller’s ownership or operation of the Business in the ordinary course of the operation thereof or
required by applicable law to be retained by Seller, (iv) any claims for refunds or rebates of any previously paid Taxes, (v) Seller’s Real Property, (vi) cash and cash equivalents on hand on the Closing Date, (vii) receivables for all
Completed Jobs as of the Closing Date as set forth on Schedule E hereto, (viii) any Obsolete Inventory (ix) Customer Rebates Receivable directly related to Completed Jobs described on Schedule 2.2, (x) Xantrex and Kyocera warranty
payments for warranty work completed by Seller prior to the Closing Date, and (xi) the personal property described on Schedule 2.2. 
 “Excluded Liabilities” means all liabilities or obligations of Seller, of whatever nature, whether known or unknown, absolute or contingent, matured or unmatured that are not Assumed Liabilities, including, without
limitation, (i) any of Seller’s outstanding indebtedness for borrowed money, including, without limitation, any indebtedness related to the Motor Vehicles listed on Schedule 4.16, and any unpaid interest, fees, prepayment penalties and
expenses thereon, (ii) Seller’s Accounts Payable as of the Closing Date, (iii) Seller’s Job Accounts Payable for any Completed Job as of the Closing Date as set forth on Schedule E hereto, (iv) any unpaid payroll withholding Tax
obligations of Seller as of the Closing Date, and (v) Excluded Warranty Work. 
 “Excluded Warranty Work” means installation
and service work directly related to the replacement or repair of solar systems covered by warranty which is not Assumed Warranty Work. 
 “Final Closing Inventory” means all Inventory owned by Seller and related to the business, excluding Obsolete Inventory, as of the Closing Date as determined in accordance with Section 3.2. 
 “Final Closing Inventory Value” means the value of the Final Closing Inventory, at Seller’s cost, of the Inventory, on the Closing
Statement. 
 “Final Closing Inventory Adjustment “ means the amount by which the Final Closing Inventory Value is more or
less than the Closing Inventory Value. 
 “GAAP” means generally accepted accounting principles in effect in the United
States consistently applied as in effect on the date of the Agreement. 
 “Governmental Authority” means any
(a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature, or any political subdivision thereof, (b) federal, state, local, municipal, foreign or other government, or
(c) governmental or quasi-governmental authority of any nature (including any governmental division, department, agency, commission, instrumentality, official, organization, body or other entity and any court, arbitrator or other tribunal).

 “Governmental Permits” has the meaning set forth in Section 4.5. 
 “Grantor” means Gaiam Energy Tech, Inc., or an Affiliate thereof, provided that such Affiliate shall not include Gaiam, Inc.

 “Gross Sales” means solar installation sales and services as invoiced on a sales or service contract. 
 “Gross Profit” means Gross Sales less all of the following costs directly expended by Buyer for the installations and services on the
applicable job: permits and fees, bonding, site construction and excavation, utility connections, utility service upgrades, solar equipment, solar system components, installation, labor supervision, returns, sales tax, freight costs, engineering and
design costs, subcontractor services, charge backs and per diem travel expenses for engineering, design and installation personnel. 
 “Historical Financials” means the unaudited balance sheets and statements of income of Seller as of and for the fiscal years ended December 31, 2006, December 31, 2005 and December 31, 2004 (including
the footnotes thereto if any), and the unaudited balance sheet and statements of income and cash flows for the 10-month period ended October 31, 2007, attached hereto as Schedule 4.3. 
  

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 “Indemnification Acknowledgement” has the meaning set forth in Section 8.2(a)(ii).

 “Indemnitee” has the meaning set forth in Section 8.2(a). 
 “Indemnitor” has the meaning set forth in Section 8.2(a). 
 “Incentive Plan” means the Grantor’s 2007 Long-Term Incentive Plan. 
 “Intellectual Property” means all patents, trademarks, service marks, copyrights, trade names, maskworks, net lists, schematics,
know-how, trade secrets, recipes, formulas, mixtures, inventory, ideas, algorithms, processes, computer software programs, or applications (in both source code and object code form), tangible or intangible proprietary information or material, other
intellectual property, and all registrations and applications and renewals for any of the foregoing and all goodwill associated therewith. 
 “Inventory” means normal items of inventory, which, in Buyer’s reasonable determination, are current, suitable and merchantable at customary prices for the filing of orders in the normal course of business, and are not
Obsolete Inventory, damaged or defective. 
 “Job Accounts Payable” means Accounts Payable incurred in connection with, or
arising out of, a specific job, whether recorded or not recorded, asserted or not asserted as of the date of the Closing. 
 “Knowledge” and “Knowledge of Seller” means, the actual knowledge or awareness of each Shareholder that each Shareholder would have obtained after reasonable due diligence or inquiry in light of the
circumstances. 
 “Latest Balance Sheet” means the unaudited balance sheet of Seller for the ten-month period ended
October 31, 2007 included in the Historical Financials and prepared in accordance with Seller’s customary and ordinary accounting practices. 
 “Laws” means any statute, law, ordinance, regulation, order or rule of any governmental authority, including without limitation those covering environmental, energy, safety, health, transportation,
bribery, record keeping, zoning, antidiscrimination, antitrust, wage and hour, and price and wage control matters, as well as any applicable principle of common law. 
 “Liability” means any liability or obligation (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, whether incurred directly or consequential and whether due or to become due), including any Tax or other liability arising out of applicable statutory, regulatory or common law, any contractual obligation and any obligation arising out
of tort. 
 “Losses” means any and all damages, costs, liabilities, losses (including consequential losses), judgments,
penalties, fines, expenses or other costs, including reasonable attorney’s fees, expert fees and costs of investigation, enforcement and collection suffered or incurred by an Indemnitee. 
  

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 “Material Adverse Effect” means a material adverse effect on (i) the Transferred
Assets, operations, personnel, condition (financial or otherwise) or prospects of Seller, considered as a whole, or (ii) the ability of any Shareholder, Seller or Buyer (as applicable) to consummate the transactions contemplated hereby, or
(iii) the Historical Financials as audited following the Closing Date. 
 “Noncompete Period” has the meaning set forth
in Section 6.2. 
 “Notice of Claim” has the meaning set forth in Section 8.2(a)(i). 
 “Obsolete Inventory” means inventory that is obsolete, slow-moving or not currently saleable. 
 “Operating Accounts Payable” means Accounts Payable not incurred in connection with, or arising out of, a specific job. 
 “Option” has the meaning set forth in Section 3.1(b). 
 “Option Agreement” means the stock option agreement by and between the Grantor and the Seller to be entered into within 30 days
following the Closing Date. 
 “Option Shares” has the meaning set forth in Section 3.1(b). 
 “Ordinary Course of the Business” means a manner generally consistent with past business practices as evidenced by historical events,
trends and customary approach. 
 “Out-of-Pocket Cost” means expenses paid by Seller for materials and labor which were
incurred in connection with, or arising out of, a specific job. 
 “Periodic Taxes” has the meaning set forth in
Section 6.10(a). 
 “Permitted Liens” means the following liens which are set forth on Schedule D (i) liens
for Taxes, fees, levies, duties or other governmental charges of any kind which are not yet delinquent or are being contested in good faith by appropriate proceedings which suspend the collection thereof and for which appropriate reserves have been
established in accordance with GAAP; and (ii) liens for mechanics, material, laborers, employees, suppliers or similar liens arising by operation of law for sums which are not yet delinquent or which are being contested in good faith by
appropriate proceedings or with respect to which arrangements for payment and/or release have been made and for which appropriate reserves have been established in accordance with Seller’s customary and ordinary accounting practices
consistently applied. 
 “Person” means any individual, partnership, limited liability company, limited liability
partnership corporation, association, joint stock company, trust, joint venture, unincorporated organization or governmental entity (or any department, agency or political subdivision thereof). 
  

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 “Product” has the meaning set forth in Section 4.25. 
 “Purchase Price” has the meaning set forth in Section 3.1. 
 “Purchase Price Adjustment” has the meaning set forth in Section 3.2(a). 
 “Required Consents” has the meaning set forth in Section 4.2. 
 “Seller Contract” has the meaning set forth in Section 4.8. 
 “Seller’s Real Property” means all real property owned by Seller. 
 “Tax” means any federal, state, local or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, capital gain, intangible, environmental (pursuant to Section 59A of the Code or otherwise), custom duties, capital stock, franchise, employee’s income withholding, foreign withholding, social security
(or its equivalent), unemployment, disability, real property, personal property, sales, use, transfer, value added, registration, alternative or add on minimum, estimated or other tax, including any interest, penalties or additions to tax in respect
of the foregoing, whether disputed or not, and any obligation to indemnify, assume or succeed to the liability of any other Person in respect of the foregoing, and the term “Tax Liability” shall mean any liability (whether known or
unknown, whether absolute or contingent, whether liquidated or unliquidated, and whether due or to become due) with respect to Taxes. 
 “Tax Period” has the meaning set forth in Section 6.10(a). 
 “Tax Return” means any return,
declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
 “Third Party Claim” means a claim or demand made by any Person who is not a party hereto against an Indemnitee. 
 “Transaction Documents” means, collectively, this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the Employment
Agreement and the Escrow Agreement. 
 “Transferred Assets” means all properties, contracts, agreements, privileges, rights,
interests and claims, real and personal, tangible and intangible, of every type and description that are owned, leased, held, used or useful in the Business in which Seller has any right, title or interest or in which Seller acquires any right,
title or interest on or before the Closing Date, including, Governmental Permit, Seller Contracts, Intellectual Property, equipment, vehicles, real property, receivables and customer deposits for any Work in Process and Booked Jobs, as of the
Closing Date, as set forth on Schedule E hereto, Customer Rebates Receivable for Work in Process, Xantrex and Kyocera warranty payments for warranty work completed after the Closing Date, and deposits relating to the Business that are held by
third parties for the account of Seller or for security for Seller’s performance of its obligations, and all goodwill associated with the foregoing, but excluding any Excluded Assets. 
 “Transferred Vehicles” has the meaning set forth in Section 7.1(b). 
 “Vector Contract” has the meaning set forth in Section 2.5. 
 “WARN” has the meaning set forth in Section 4.11. 
 “Work in Process” means solar installation jobs that are not Completed Jobs or Booked Jobs. 
  

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 Article II 
 Purchase and Sale 
 2.1 Transferred Assets. Subject to the terms and conditions set forth in
this Agreement, Seller shall sell, transfer, convey, assign and deliver to Buyer, and Buyer shall purchase and acquire from Seller, on the Closing Date, all of Seller’s right, title and interest in, to and under the Transferred Assets, free and
clear of all Encumbrances, other than Permitted Liens. All of the Transferred Assets are intended to be transferred to Buyer, whether or not described in the Schedules hereto. 
 2.2 Excluded Assets. Seller is not selling and Buyer is not purchasing or assuming obligations with respect to the Excluded Assets, and
following Closing, Buyer will not have any right, title, interest or obligation with respect to the Excluded Assets. 
 2.3 Assumed
Liabilities. At the Closing, Buyer will assume and agree to pay or perform, as the case may be, the Assumed Liabilities. 
 2.4
Excluded Liabilities. Buyer shall assume no liabilities of Seller of any nature other than the Assumed Liabilities. Concurrently with the Closing, Seller will pay, or cause to be paid, and discharge any Excluded Liability over $50,000 as set
forth on Schedule 2.4 hereto. Buyer shall have no liability for or obligation with respect to any Excluded Liability, whether recorded or not recorded, asserted or not asserted as of the date of the Closing; provided, however that to the
extent that Buyer will pay any Excluded Liability set forth on Schedule 2.4 following the Closing Date, Buyer will pay such Excluded Liability promptly upon receipt of the wire payment instructions. 
 2.5 Vector Contract. Notwithstanding the foregoing provisions of Article II, in the case of the contract by and between Coachella Valley Mosquito
& Vector Control District and Seller dated as of November 13, 2007 (the “Vector Contract”), Buyer and Seller agree that Buyer shall receive the accounts receivable and the customer deposits and shall assume the Accounts Payable
directly related to the Vector Contract subject to the adjustment set forth on Schedule 2.5 hereto. The Vector Contract will be adjusted and reimbursement made to Seller or Buyer, if necessary, by calculation of the following categories as
set forth on Schedule 2.5: (i) total revenue paid to Seller, (ii) total costs paid by Seller, (iii) percentage completion of installation, (iv) payment received by Seller, (v) payment of costs made by Seller,
(vi) accounts receivable for Vector Contract as of the Closing Date, and (vii) Accounts Payable for the Vector Contract as of the Closing Date. 
 Article III 
 Purchase Price 
 3.1 Purchase Price. 
 (a) At Closing,
in consideration of the sale and transfer of the Transferred Assets, Buyer shall pay the purchase price of $2,550,000 plus the Closing Inventory Value (the “Purchase Price”) as follows: 
 (i)* of the Purchase Price will be placed in an escrow pursuant to an Escrow Agreement in the form of Exhibit D hereto to provide a
fund for (i) the payment of any post-closing adjustment to the Purchase Price pursuant to Section 3.2; and (ii) the payment of any post-closing indemnification claims pursuant to Section 8.6 (the “Escrow Amount”);

  

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 (ii) any amount necessary for the payment and discharge of any Excluded Liability
pursuant to Section 2.4 shall be paid in accordance with Section 2.4; 
 (iii) $* shall be retained by
Buyer in consideration of payments received by the Seller for the Vector Contract; 
 (iv) $* shall be retained by Buyer in
consideration of the transfer of all customer deposits for Booked Jobs to Buyer; and 
 (v) the remainder of the Purchase
Price will be delivered to Seller at Closing by wire transfer of immediately available funds pursuant to wire instructions delivered by Seller to Buyer not later than two Business Days prior to the Closing Date. 
 (b) As additional consideration of the sale and transfer of the Transferred Assets, effective as of the Closing Date, Buyer shall grant, or cause to be
granted, to Seller an option (the “Option”) to purchase 30,000 shares (the “Option Shares”) of the Grantor’s Class A Common Stock, par value $.0001 per share at the exercise price of $*, subject and
pursuant to all terms and conditions stated in the Option Agreement and in the Incentive Plan. Except as otherwise provided in the Option Agreement or the Incentive Plan, the Option may not be exercised after the close of business on January 1,
2015. Grantee shall, subject to the limitations of the Option Agreement and the Incentive Plan, have the right to exercise the Option by purchasing all or any part of the vested Option Shares then available for purchase (less any Option Shares
previously purchased upon exercise of this Option) pursuant to the following vesting schedule: (i) Fifty percent (50%) of the Option Shares shall vest upon the earlier to occur of the consummation of a Qualified Public Offering, as defined
in the Option Agreement, or the Sale of the Company, as defined in the Option Agreement, and (ii) only after the occurrence of a Qualified Public Offering or the Sale of the Company, the remaining fifty percent (50%) of the Option Shares
shall vest over time pursuant to the Option Agreement. Buyer and Seller acknowledge that, immediately following the Closing, Seller will transfer or assign the Option Shares to each Shareholder according to their percentage ownership interest in the
Seller. 
 3.2 Adjustments to Purchase Price. 
 (a) The Purchase Price shall be increased or decreased, as the case may be, on a * basis by an amount equal to the Final Closing Inventory Adjustment (the “Purchase Price Adjustment”). 
 (b) Within 10 days after the Closing Date, Buyer shall conduct a physical count of Seller’s Inventory on-hand and Buyer shall provide a calculation
in reasonable detail of the Final Closing Inventory Adjustment, if any, and, if applicable, the Purchase Price Adjustment (the “Closing Statement”). Seller will cooperate with Buyer in connection with the preparation of the Closing
Statement. 
 (c) At any time within 10 days following the delivery of the Closing Statement pursuant to Section 3.2(b) hereof, Seller
may deliver a written objection specifying those items on the Closing Statement which it disputes (such items, the “Disputed Items”). If Seller does not so object in writing, the Closing Statement shall be final and binding on the
parties. If Seller objects to the Closing Statement, the parties shall agree on the amount, if any, which is not in dispute, and attempt to resolve the Disputed Items by negotiation. If the parties are unable to resolve the Disputed Items within 10
days of the objection by Seller, the parties shall 

  

 9 

 
appoint a firm of certified public accountants of national recognition mutually satisfactory to Seller and Buyer to review the Disputed Items and determine
the amount thereof in accordance with GAAP. Buyer and Seller shall use commercially reasonable efforts to cause such accounting firm to determine such amount as soon as is reasonably practicable. The fees and expenses of such accounting firm shall
be borne in equal portions by Seller and Buyer and the determination of such accounting firm shall be final and binding on the parties 
 (d)
If the Purchase Price Adjustment results in a decreased in the Purchase Price, if the aggregate amount of the Purchase Price Adjustment is less than the Escrow Amount, Buyer and Seller will deliver mutual instructions to the Escrow Agent in
accordance with the terms of the Escrow Agreement to deliver that portion of the Escrow Amount equal to the Purchase Price Adjustment to Buyer and the balance of the Escrow Amount shall remain in escrow to be distributed in accordance with the terms
of the Escrow Agreement. 
 (e) If the Purchase Price Adjustment results in an increase in the Purchase Price, Buyer will deliver that
portion of Purchase Price equal to the Purchase Price Adjustment to Seller by wire transfer of immediately available funds pursuant to wire instructions delivered by Seller to Buyer. 
 3.3 Allocation of Purchase Price. The Purchase Price shall be allocated among the Transferred Assets in the manner agreed upon by the parties
after the Closing (the “Allocation”). The parties to this Agreement expressly agree that the Allocation shall be used by them for all purposes including Tax, reimbursement and other purposes. Each party to this Agreement agrees that
it will report the transaction completed pursuant to this Agreement in accordance with the Allocation, including any report made under Section 1060 of the Code, and that no such party will take a position inconsistent with the Allocation except
with the prior written consent of the other parties hereto. 
 Article IV 
 Representations and Warranties of Seller and the Shareholders 
 As a material
inducement to Buyer to enter into this Agreement and to consummate the transactions contemplated herein, Seller and the Shareholders hereby, jointly and severally, represent and warrant to Buyer as follows: 
 4.1 Organization, Qualification and Authority. Seller is a corporation duly organized and validly existing under the laws of the State of
California and is in good standing and duly qualified to do business as a foreign corporation in all jurisdictions where the operation of its business or the ownership of its properties make such qualification necessary. Seller has full corporate
power and authority to own, lease and operate its facilities and the Transferred Assets as presently owned, leased and operated, and to carry on its respective business as it is now being conducted. The Shareholders own, at Closing, 100% of the
issued and outstanding stock of Seller, no other person or entity owns or holds, has any interest in, whether legal, equitable or beneficial, or has the right to purchase, any capital stock, membership interest or other security of Seller and Seller
does not own any capital stock, security, interest or other right, or any option or warrant convertible into the same, of any Person. Seller has the requisite corporate right, power and authority to execute, deliver and carry out the terms of this
Agreement, the other Transaction Documents and all other documents and agreements 

  

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necessary to give effect to the provisions of this Agreement and to consummate the transactions contemplated on the part of Seller hereunder. Each
Shareholder has the full right, power and authority to execute, deliver and carry out the terms of this Agreement, the other Transaction Documents (to the extent a party thereto) and all other documents and agreements necessary to give effect to the
provisions of this Agreement, to consummate the transactions contemplated on the part of such Shareholder hereunder, and to take all actions necessary, in their capacity as the shareholders of Seller, to permit or approve the actions of Seller taken
in connection with this Agreement. The execution, delivery and consummation of this Agreement, the other Transaction Documents and all other agreements and documents executed in connection herewith and therewith by Seller, have been duly authorized
by all necessary action on the part of Seller. No other action, consent or approval on the part of Seller, the Shareholders or any other person or entity, is necessary to authorize Seller’s due and valid execution, delivery and consummation of
this Agreement, the other Transaction Documents and all other agreements and documents executed in connection herewith. This Agreement, the other Transaction Documents and all other agreements and documents executed in connection herewith by Seller
and/or the Shareholders, upon due execution and delivery thereof, shall constitute the valid and binding obligations of Seller and each Shareholder, enforceable in accordance with their respective terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by general principles of equity. 
 4.2
No Violations. The execution and delivery of this Agreement and the other Transaction Documents and the performance by Seller and the Shareholders of their respective obligations hereunder and thereunder (a) do not and will not conflict
with or violate any provision of the articles of incorporation, bylaws, operating agreement or similar organizational documents of Seller, and (b) subject to obtaining all consents and approvals set forth on Schedule 4.2 hereto (the
“Required Consents”), do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (ii) result in the creation of any Encumbrance upon the
capital stock, membership interests or assets of Seller pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of, or (vi) require any authorization,
consent, approval, exemption or other action by or notice to any court or administrative, arbitration or governmental body or other third party pursuant to, any law, statute, rule or regulation or any Seller Contract, judgment or decree to which
Seller is subject or by which any of its assets are bound. 
 4.3 Financial Statements. 
 (a) Except as set forth on Schedule 4.3, the Historical Financials have been prepared in accordance with Seller’s ordinary and customary
accounting, consistent with past practices. The Historical Financials fairly present the financial position of Seller as of the dates specified and the results of operations in all material respects of Seller for the periods covered thereby, and
Seller does not have any material liabilities or obligations of any nature (absolute, accrued, contingent or otherwise) that are not either (i) reflected or fully reserved against on the Historical Financials or incurred in the Ordinary Course
of the Business subsequent to the date of the Historical Financials or (ii) set forth on the disclosure schedules hereto. 
 (b) None of
Seller nor any of its officers, directors or, to the Knowledge of Seller, any of their respective Affiliates (i) is contemplating the filing of a petition under the Bankruptcy Laws with respect to Seller, or the liquidation of all or any major
portion 

  

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of its or their assets or properties, or (ii) is aware of any Person contemplating the filing of any petition against Seller under the Bankruptcy Laws.
Seller is not contemplating materially changing its Business, as such Business is being conducted on the date hereof. 
 4.4 Interim
Changes. Except as set forth on Schedule 4.4, since December 31, 2006, there has been no: 
 (a) change in the condition,
financial or otherwise, of Seller, which has, or would reasonably be expected to have a Material Adverse Effect; 
 (b) loss, damage or
destruction of or to any of the material Transferred Assets, whether or not covered by insurance; 
 (c) sale, lease, transfer or other
disposition by Seller of, or mortgages or pledges of or the imposition of any Encumbrance on, any portion of the Transferred Assets other than in the Ordinary Course of Business consistent with past practice; 
 (d) increase in the compensation payable by Seller to any of the Shareholders, employees, directors, managers, independent contractors or agents, or any
increase in, or institution of, any bonus, insurance, pension, profit sharing or other employee benefit plan or arrangements made to, for or with the employees, directors, managers, shareholders or independent contractors of Seller, other than
increases in salaries of employees of the Business (other than the Shareholders) in the Ordinary Course of the Business consistent with past practice; 
 (e) adjustment or write off of accounts receivables or reduction in reserves for account receivables outside of the Ordinary Course of the Business or any change in the collection, payment or credit experience or
practices of Seller; 
 (f) change in the Tax or cash basis accounting methods or practices employed by Seller or change in depreciation or
amortization policies; 
 (g) issuance or sale by Seller or the Shareholders, or any Contract entered into by Seller or the Shareholders for
the issuance or sale, of any shares of capital stock or securities convertible into or exchangeable for capital stock of Seller; 
 (h)
payment by Seller of any dividend, distribution or extraordinary or unusual disbursement or expenditure; 
 (i) merger, consolidation or
similar transaction involving Seller; 
 (j) strike, work stoppage or other labor dispute adversely affecting the Business; 
 (k) termination, waiver or cancellation of any material rights or claims of Seller, under any Contract or otherwise; 
  

 12 

 (l) incurrence of indebtedness for borrowed money other than in the Ordinary Course of the Business
consistent with past practice; 
 (m) new Contract (or amendment to any existing Contract) obligating Seller to purchase goods or services
for a period of ninety (90) days or more, any amendment or termination of any Seller Contract or license relating to the Business or any waiver of material claims or rights of Seller against third parties other than in the Ordinary Course of
the Business consistent with past practice; 
 (n) agreement, arrangement or transaction between Seller and any Affiliate of Seller;

 (o) other transaction not in the Ordinary Course of the Business and consistent with past practice of the Business that, individually or
in the aggregate, could have a Material Adverse Effect; or 
 (p) binding commitment with respect to any of the foregoing. 
 4.5 Licenses and Permits. 
 (a) Seller
has all local, state and federal licenses, permits, registrations, certificates, contracts, consents, accreditations and approvals material to the Business (collectively, the “Governmental Permits”) necessary for Seller to occupy,
operate and conduct the Business as now conducted, and there do not exist any waivers or exemptions relating thereto. All such Governmental Permits are set forth on Schedule 4.5. There is no material default on the part of Seller or any other
party under any of the Governmental Permits. To Seller’s Knowledge, there exist no grounds for revocation, suspension or limitation of any of the Licenses or Permits. No notices have been received by Seller or the Shareholders with respect to
any threatened, pending, or possible revocation, termination, suspension or limitation of the Governmental Permits. Except as set forth on Schedule 4.5, the Governmental Permits may be assigned and transferred to Buyer pursuant to this
Agreement. 
 (b) To Seller’s Knowledge, each employee of Seller has all Governmental Permits required for each such employee to perform
such employee’s designated functions and duties for Seller in connection with conducting the Business. There is no default under, nor does there exist any grounds for revocation, suspension or limitation of, any such Governmental Permits.

 4.6 Real Property. 
 (a) Schedule 4.6 sets forth a complete and correct list of all real properties or premises that are leased or utilized in whole or in part by Seller. The properties listed on Schedule 4.6 constitute all the real properties
utilized in connection with the Business. As to each leased property, Schedule 4.6 sets forth the (i) lease term, (ii) annual rent and (iii) renewal option, if any. Complete and correct copies of all leases and guarantees of
leases have been made available to Buyer. 
  

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 (b) Seller is a tenant or possessor in good standing of each lease of premises utilized by Seller in
connection with the Business, free of any material default or breach on the part of Seller and, to Seller’s Knowledge, free of any material default or breach on the part of the lessors thereunder, and has use and occupancy of the premises
provided for in the leases therefor. 
 4.7 Transferred Assets. Except as set forth on Schedule 4.7, Seller has good and
marketable title to the Transferred Assets (other than real property, which is covered in Section 4.6) free and clear of all Encumbrances other than Permitted Liens. Seller’s machinery, equipment, vehicles and other tangible assets
constituting any part of the Transferred Assets have been maintained in good working condition (normal wear and tear excepted) and are sufficient for the conduct of the Business as presently conducted, except for obsolete items not presently in
service which are retained for parts. The assets reflected on the Latest Balance Sheet constitute all of the assets, properties and other rights used in the conduct of the Business except for those assets acquired or disposed of in the Ordinary
Course of the Business subsequent to the date of the Latest Balance Sheet, racking materials and miscellaneous parts which are not reflected in the Latest Balance Sheet and the Excluded Assets. Seller owns all the material assets necessary to, and
currently utilized in the operation of, the Business as presently conducted. Except as set forth on Schedule 4.7, no Shareholder or any of their affiliates (other than Seller) owns any of the assets currently utilized in the Business.

 4.8 Seller Contracts. Schedule 4.8 sets forth a list of all of Seller’s Contracts (the “Seller
Contracts”). True and correct copies of all Seller Contracts (and with respect to any oral Seller Contract, a summary of the principal terms thereof) have been provided to Buyer. Each Seller Contract is in full force and effect and
constitutes the valid, legal, binding and enforceable obligation of Seller and Seller is (and, except as set forth on Schedule 4.8, to Seller’s and each Shareholder’s Knowledge each other party thereto is not) in breach or default
of any terms or conditions thereunder. 
 4.9 Environmental and Safety Matters. 
 (a) Except as set forth on Schedule 4.9: 
 (i) Seller is and has been in material compliance at all times with all applicable Environmental Laws and has received no notice, report or information regarding any liabilities (whether accrued, absolute, contingent, unliquidated or
otherwise), or any corrective, investigatory or remedial obligations, arising under applicable Environmental Laws with respect to the past or present operations or properties of the Business; 
 (ii) Seller has obtained, and is and has been in material compliance at all times with all terms and conditions of, all Governmental Permits pursuant to
Environmental Laws for the occupation of its premises and the conduct of its operations; 
 (iii) Seller has filed, and is and has been in
material compliance at all times with, all disclosures, reporting and notifications required pursuant to Environmental Laws for the occupation of its premises and the conduct of its Business; 
 (iv) Seller has not received notice that any of the following exists at Seller’s properties (other than de minimis amounts of cleaning supplies) in
violation of applicable Environmental Laws: hazardous or toxic materials, substances, pollutants, contaminants or waste, polychlorinated biphenyl containing materials or equipment; 
  

 14 

 (v) The transactions contemplated by this Agreement do not impose any obligations under Environmental
Laws for site investigation or cleanup or notification to or consent of any government agencies or third parties that have the right to enforce Environmental Laws; 
 (vi) Seller has not received any notice from any Person that there are facts, events or conditions relating to the past or present properties or operations of the Business which will (x) prevent, hinder or limit
continued compliance with applicable Environmental Laws, (y) give rise to any corrective, investigatory or remedial obligations on the part of Buyer pursuant to applicable Environmental Laws, or (z) give rise to any liabilities on the part
of Buyer (whether accrued, absolute, contingent, unliquidated or otherwise) pursuant to applicable Environmental Laws, including without limitation those liabilities relating to onsite or offsite hazardous substance releases, personal injury,
property damage or natural resources damage; and 
 (vii) Seller has not assumed or, to Seller’s Knowledge, succeeded (by operation of
law or otherwise), to any liabilities or obligations of any third party under Environmental Laws for which Buyer will have any liability following the Closing Date. 
 (b) Seller has delivered to Buyer true and correct copies of all environmental studies conducted by Seller. 
 4.10 Litigation. Neither Seller nor any of the Shareholders have received notice of any violation of any law, rule, regulation, ordinance or order of any court or federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality (including, without limitation, legislation and regulations applicable to environmental protection, civil rights, public health and safety and occupational health) since November 1, 2002.
Except as set forth on Schedule 4.10 (for which Buyer assumes no liability), there are no lawsuits, proceedings, actions, arbitrations, governmental investigations, claims, inquiries or proceedings pending or, to Seller’s Knowledge,
threatened involving Seller, any Shareholder, any of the Transferred Assets or the Business, and no reasonable basis exists for the bringing of any such claim. 
 4.11 Seller’s Employees. Schedule 4.11 hereto sets forth: (i) a complete list of all of Seller’s employees and rates of pay, (ii) true and correct copies of any and all fringe
benefits and personnel policies, (iii) the employment dates and job titles of each such person, (iv) categorization of each such person as a full time or part time employee of Seller, and (v) whether any such person has an employment
agreement. Seller has not altered the compensation of any employee within the past thirty (30) days. For purposes of this Section, “part time employee” means an employee who is employed for an average of fewer than twenty
(20) hours per week or who has been employed for fewer than six (6) of the twelve (12) months preceding the date on which notice is required pursuant to the federal “Worker Adjustment and Retraining Notification Act”
(“WARN”), 29 U.S.C. Section 2102 et seq. Except as set forth on Schedule 4.11, Seller has no employment agreements with its employees and all such employees are employed on an “at will” basis. Schedule
4.11 sets forth all former employees of Seller utilizing or eligible to utilize COBRA health insurance. All Persons with whom Seller has engaged as independent contractors are properly classified as independent contractors for Tax purposes.

  

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 4.12 Seller’s Employee Benefits. 
 (a) Schedule 4.12 lists each Employee Benefit Plan that Seller maintains or to which Seller contributes and each such Employee Benefit Plan (and
each related trust, insurance contract, or fund) has been maintained, funded and administered in accordance with the terms of such Employee Benefit Plan and complies in form and in operation in all material respects with the applicable requirements
of ERISA and the Code. No Action or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other than routine claims for benefits) is pending. 
 (b) Except as set forth in Schedule 4.12, each of the following is true: 
 (i) Seller is not a party to any collective bargaining agreements. Seller is in compliance with all applicable laws respecting employment and employment
practices, terms and conditions of employment and wages and hours and occupational safety and health, and is not engaged in any unfair labor practice within the meaning of Section 8 of the National Labor Relations Act in all cases, except where
the failure to comply could not reasonably be expected to have a Material Adverse Effect and, there is no Action, grievance or other proceeding pending or, to Seller’s Knowledge, threatened in writing, or any investigation pending or threatened
against Seller relating to any thereof, and no basis exists for any such action, suit or legal, administrative, arbitration, grievance or other proceeding or governmental investigation; 
 (ii) there is no labor strike, dispute, slowdown or stoppage actually pending or, to Seller’s Knowledge, threatened against Seller; 
 (iii) none of the employees of Seller is represented by any labor union and, there are no attempts being made to organize any of such employees;

 (iv) no agreement (including any collective bargaining agreement), arbitration or court decision, decree or order or governmental order
which is binding on Seller in any way limits or restricts Seller from relocating or closing any of its operations; 
 (v) Seller has not
experienced any organized work stoppage in the last five years; 
 (vi) there are no charges, administrative proceedings or formal
employee-related complaints (including without limitation wage-based allegations or discrimination allegations based upon sex, age, marital status, race, national origin, sexual preference, handicap or veteran status) pending or, threatened, or any
investigation pending or threatened before a court or the Equal Employment Opportunity Commission or the Department of Labor or any other federal, state or local agency. There have been no audits of the equal employment opportunity practices of
Seller, and no basis for any such claim exists; and 
  

 16 

 (vii) except for the transactions contemplated by this Agreement, within the period 90 days prior to the
Closing Date, Seller has not temporarily or permanently closed or shut down any single site of employment or any facility or any operating unit, department or service within a single site of employment, as such terms are used in WARN. During such
period, Seller has not terminated or laid off more than 125 employees in the aggregate. 
 4.13 Insurance. Seller has in effect and
has continuously maintained insurance coverage for all of its operations, personnel and assets, and for the Transferred Assets and the Business. A complete and accurate list of all such insurance policies is set forth in Schedule 4.13 hereto,
which policies have previously been provided to Buyer. Schedule 4.13 also sets forth a summary of Seller’s current insurance coverage (listing the nature of coverage, carrier, limits, expiration dates, and whether such policies are
“claims made” or “occurrence based”), and includes a list of any pending insurance claims relating to Seller. Seller is not in default or breach with respect to any provision contained in any such insurance policies, nor has
Seller failed to give any notice or to present any claim thereunder in due and timely fashion. 
 4.14 Broker’s or Finder’s
Fee. Except as set forth on Schedule 4.14, neither Seller nor the Shareholders has employed, or is liable for the payment of any fee to, any finder, broker, consultant or similar person in connection with the transactions contemplated
under this Agreement. 
 4.15 Intellectual Property. 
 (a) Seller owns or licenses all Intellectual Property used in connection with, or material to, the Business. All Intellectual Property used in connection with, or material to, the Business is listed and described in
Schedule 4.15. No proceedings have been instituted or are pending or, to Seller’s Knowledge, threatened which challenge the validity of the ownership by Seller of any of the Intellectual Property set forth on Schedule 4.15. Seller
has not licensed anyone to use any of Intellectual Property set forth on Schedule 4.15 and to Seller’s Knowledge there has been no use or infringement of any the Intellectual Property set forth on Schedule 4.15 by any other
person. 
 (b) Seller has provided to Buyer true, correct and complete copies of (i) all documents, if any, relative to patents, patent
applications and inventions and discoveries that may be patentable, and all registered and unregistered trademarks, trade names and service marks, registered and unregistered copyrights, and maskworks owned by Seller and included in the Intellectual
Property set forth on Schedule 4.15, including the jurisdictions in which each such intellectual property right has been issued or registered or in which any application for such issuance and registration has been filed, and (ii) of all
licenses, sublicenses and other agreements as to which Seller is a party and pursuant to which Seller is authorized to use any third party patents, trademarks or copyrights, including software (other than off-the-shelf software subject to a
click-through or shrink-wrap license), or any other third party intellectual property which are or are presently expected to be incorporated in, or are or expected to form a part of any existing Seller product, or which are or are presently expected
to be utilized in the development, modification or support of any existing Seller product. 
 (c) All patents, registered trademarks, service
marks and registered copyrights held by Seller and related to the Business are validly issued and presently subsisting. 
  

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 (d) Seller is the owner or licensee of all right, title and interest in and to all of the Intellectual
Property set forth on Schedule 4.15, free and clear of all Encumbrances, and has the right to use without payment to a third party all of the Intellectual Property set forth on Schedule 4.15, other than in respect of licenses listed in
Schedule 4.15(d). 
 4.16 Motor Vehicles. Schedule 4.16 sets forth a complete and accurate list of all vehicles utilized
in the Business, whether owned or leased, the type of vehicle and vehicle identification number. All such vehicles are properly titled, licensed and registered in accordance with applicable law. 
 4.17 Tax Returns; Taxes. Seller has filed or will timely file all federal, state and local Tax Returns and Tax reports required by such
authorities to be filed. Seller has paid all Taxes, assessments, governmental charges, penalties, interest and fines due or claimed to be due by any federal, state or local authority. There is no pending Tax examination or audit of, nor any action,
suit, investigation or claim asserted or, to Seller’s Knowledge, threatened against Seller by any federal, state or local authority; and Seller has not been granted any extension of the limitation period applicable to any Tax claims.

 4.18 Affiliate Interests. Except as provided in Schedule 4.18, Seller is not a party to any transaction with: (a) any
of the Shareholders, or any employee, officer, or director of Seller, (b) any relative of any of the Shareholders or (c) any Person that, directly or indirectly, is controlled by or under common control with Seller or with any such
employee, officer, director, manager or relative, including without limitation any contract, agreement or other arrangement (i) providing for the furnishing of services by such person, (ii) providing for the rental or use of real or
personal property from or to such person, (iii) providing for the guaranty of any obligation of such person, (iv) requiring any payment to such person which will continue beyond the Closing Date or (v) establishing any right or
interest of such person in any of the Transferred Assets. 
 4.19 Governmental and Other Third Party Consents. Other than the Required
Consents, neither Seller nor Shareholders are required to obtain any consent from, provide any notice to, or is required to make any declaration or filing with, any Governmental Authority or any other Person in connection with the execution,
delivery and performance of this Agreement or any other agreement. All consents required to be obtained or made in connection with the execution, delivery and performance of this Agreement or any other Transaction Document will at the Closing be in
full force and effect. The time within which any administrative or judicial appeal, reconsideration, rehearing or other review of any such consent of any Governmental Authority may be taken or instituted has lapsed, and no such appeal,
reconsideration or rehearing or other review has been taken or instituted. 
 4.20 Customers and Vendors. No customer accounting for
more than 5% of the sales of the Business as of December 31, 2006 has canceled any contract reflected on the Latest Balance Sheet or notified Seller or either Shareholder that it intends to cancel any such contract with Seller. No vendor of the
Business as of December 31, 2006 has stopped doing business with Seller or notified Seller or either Shareholder that it intends to stop doing business with Seller 
 4.21 Legal and Other Compliance. Except as set forth on Schedule 4.21, Seller has operated the Business in compliance with all applicable Laws and no Action, charge, complaint or notice has been filed or
commenced against Seller alleging any failure so to 

  

 18 

 
comply. Neither the ownership or use of the Transferred Assets or any other assets or properties of Seller nor the conduct of the Business conflicts with the
rights of any other Person or violates, or with the giving of notice or the passage of time or both will violate, conflict with or result in a default, right to accelerate or loss of rights under, any terms or provisions of its certificate of
incorporation or by-laws or any Encumbrance, lease, license, agreement, understanding, Law or any order, judgment or decree to which either Seller is a party or by which it may be bound or affected. Neither Shareholder nor Seller has any Knowledge
of any proposed Laws, governmental takings, condemnations or other proceedings which would be applicable to the Business, or their assets, operations or properties and which could reasonably be expected to have a Material Adverse Effect. 

4.22 Inventories. Since the date of the Latest Balance Sheet, no inventory has been sold or disposed of except through sales in the Ordinary
Course of the Business and there has been no material write-up or write-down in the value of inventory. 
 4.23 Notes, Accounts Receivable
and Accounts Payable. 
 (a) All notes, accounts receivable (billed and unbilled) and retainage accounts of Seller with respect to the
Business are reflected properly on Seller’s books and records in accordance with Seller’s ordinary and customary accounting practice, consistently applied, are valid receivables, arose from bona fide transactions in the Ordinary Course of
the Business subject to no setoffs or counterclaims (except as and to the extent recorded as accounts payable), to the Knowledge of Seller are collectible, except as reflected in the reserve or allowance for bad debts in the Latest Balance Sheet, as
adjusted for the passage of time in accordance with Seller’s ordinary and customary accounting practice, consistently applied. 
 (b)
All Accounts Payable, billings in excess of costs and estimated earnings on uncompleted contracts and accrued expenses of Seller are reflected properly on Seller’s books and records in accordance with Seller’s ordinary and customary
accounting practice, consistently applied. Except as set forth on Schedule 4.23(b), all Accounts Payable of Seller are current and, in the period from the date hereof through the Closing, will be paid in the Ordinary Course of the
Business. 
 4.24 Outstanding Bids, Bid Bonds and Performance Bonds. 
 (a) Schedule 4.24(a)(i) sets forth a true, correct and complete list of each outstanding Bid in connection with the Business which would
require the execution of a contract containing terms (including pricing terms) materially less favorable to the Business than the terms contained in the standard form contracts or standard end-user price lists. Schedule 4.24(a)(ii) sets
forth a true, correct and complete list of such Bids with respect to which (i) Seller has outstanding bid bonds or similar sureties or (ii) Seller is required to obtain such bonds or sureties, and sets forth a brief description of such
bonds, sureties or requirements for bonds or sureties. The outstanding Bids set forth in Schedule 4.24(a)(i) have not been awarded or performed in any respect by Seller and no payments have been received by Seller in respect of such
outstanding Bids. 
  

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 (b) Schedule 4.24(b) sets forth a true, correct and complete list of (i) all outstanding
performance bonds or similar sureties currently in effect for the benefit of Seller’s customers, (ii) all performance bonds or similar sureties required, to the Knowledge of Seller or either Shareholder, to be obtained, but not yet
obtained, by Seller for the benefit of any of Seller’s current customers and (iii) all performance bonds or similar sureties that will be required to be obtained by Seller for the benefit of any of Seller’s potential customers
pursuant to the terms of any outstanding Bid set forth in Schedule 4.24(a)(i) if such Bid is awarded to Seller. 
 4.25
Product and Service Warranties; Defects; Liability. Except as disclosed on Schedule 4.25 (which matters have not had and could not reasonably be expected to have a Material Adverse Effect), each product manufactured, sold, leased,
delivered, installed or maintained by Seller in connection with the Business (“Product”) has been in conformity in all material respects with all applicable Laws, contractual commitments and express and implied warranties and Seller
does not have any Liability (and, to the Knowledge of Seller or either Shareholder, there is no basis for any present or future Action giving rise to any Liability) for replacement or repair thereof or other damages in connection therewith. Except
as set forth in Schedule 4.25, no claims have been asserted against Seller during the past six years relating to, and, to the Knowledge of Seller or either Shareholder, there have been no Actions with respect to, any injury to individuals or
property as a result of the manufacture, sale, lease, ownership, possession, installations, maintenance or use of any Product. 
 4.26
Powers of Attorney. There are no outstanding powers of attorney executed on behalf of Seller in respect of Seller’s assets or Liabilities or the Business. 
 4.27 Booked Jobs and Work in Process. Schedule 4.27 sets forth a true, correct and complete list of Seller’s Booked Jobs and Work in Process as of the Closing Date. 
 4.28 No Omissions or Misstatements. None of the information included in this Agreement and Schedules hereto, or other documents furnished or to be
furnished by the Shareholders or Seller, or any of its representatives, contains any untrue statement of a material fact or is misleading in any material respect or omits to state any material fact necessary in order to make any of the statements
herein or therein not misleading in light of the circumstances in which they were made. Copies of all documents referred to in any Schedule hereto have been delivered or made available to Buyer and constitute true, correct and complete copies
thereof and include all amendments, schedules, appendices, supplements or modifications thereto or waivers thereunder. 
 Article V 

 Representations and Warranties of Buyer 
 As an inducement to Seller and the Shareholders to enter into this Agreement and to consummate the transactions contemplated hereunder, Buyer hereby represents and warrants to Seller and the Shareholders, as follows:

 5.1 Power and Authority. Buyer is a corporation duly organized and existing in good standing under the laws of the state of
California. Buyer has all requisite corporate power and authority to enter into this Agreement and to assume and perform fully its obligations hereunder. The execution and delivery of this Agreement and the performance by Buyer of its obligations
hereunder have been duly and validly authorized by all necessary corporate action. This Agreement is a valid and binding obligation of Buyer enforceable in accordance with its terms. 
  

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 5.2 Consents and Approvals. No filings with, notices to, or approvals of any governmental or
regulatory body are required to be obtained or made by Buyer for the consummation by Buyer of the transactions contemplated hereby. 
 5.3
Broker’s Finder’s Fee. Buyer has not employed, or is liable for the payment of any fee to, any finder, broker, consultant or similar person in connection with the transactions contemplated under this Agreement for which Seller could
have any responsibility. 
 Article VI 
 Covenants of Parties 
 6.1 Confidentiality. Each party will hold, and will cause its
employees, consultants, advisors and agents to hold, in confidence the terms of this Agreement and any non-public information concerning the other parties obtained pursuant to this Agreement. Notwithstanding the preceding provisions, a party may
disclose such information to the extent required by any applicable Law (including disclosure requirements under federal and state securities laws and disclosure required in connection with any judicial or administrative proceeding of any
Governmental Authority), but the party proposing to disclose such information will first notify and consult with the other parties concerning the proposed disclosure, to the extent reasonably feasible. Each party also may disclose such information
to employees, consultants, advisors, agents and actual or potential lenders whose knowledge is necessary to facilitate the consummation of the transactions contemplated by this Agreement. Each party’s obligation to hold information in
confidence will be satisfied if it exercises the same care with respect to such information as it would exercise to preserve the confidentiality of its own similar information. 
 6.2 Required Consents. Seller will use its commercially reasonable efforts to obtain, as soon as possible and at its expense, all Required
Consents in accordance with applicable Law and in form and substance reasonably satisfactory to Buyer unless specifically waived in writing by Buyer at or prior to the Closing. Buyer will cooperate with Seller to obtain all Required Consents, but
Buyer will not be required to agree to any unreasonable changes in, or the imposition of any unreasonable condition to the transfer to Buyer of any lease, contract (including Seller Contracts), agreement or Governmental Permit as a condition to
obtaining any Required Consent. Seller will also use its commercially reasonable efforts to obtain, at its expense, such estoppel certificates or similar documents from lessors of the real property and Persons who are parties to Seller Contracts as
Buyer may reasonably request. 
 6.3 Noncompete. 
 (a) Seller and each Shareholder agrees that during the * period following the Closing Date (the “Noncompete Period”), that it, he or she shall not, directly or indirectly, either for itself, himself
or herself, or for any other Person participate in the Business in the counties of * in the state of * (to the extent Seller was engaged in the Business in those counties on or prior to the Closing Date). For purposes of this Agreement, the
term “participate” includes any direct or indirect interest in any enterprise, whether as an officer, director, manager, employee, partner, member, sole proprietor, agent, representative, independent contractor, consultant,
franchisor, franchisee, creditor, owner or 

  

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otherwise; provided that the term “participate” shall not include (i) ownership of less than 2% of the stock of a publicly held
corporation whose stock is traded on a national securities exchange or in the over the counter market, (ii) Scott Carlson’s presentation of seminars or teaching the principles of solar technology or (iii) Scott Carlson’s engagement in
the business of providing * for a fee * including without limitation *; provided, however, that in the case of subsection (iii) hereto, (a) Scott Carlson shall not engage in such business in excess of * per year, or such additional
time reasonably permitted by Buyer, (b) Scott Carlson shall not engage in such business during the normal business hours of Buyer, (c) Buyer shall have no liability to any Shareholder or any third party related to or arising from Scott
Carlson’s activities under subsection (iii) hereof and (d) Scott Carlson shall indemnify and hold Buyer harmless from and against any such liability. 
 (b) Non-Solicitation. During the * period following the Closing Date, Seller and each Shareholder shall not, directly or indirectly, (i) induce or attempt to induce any employee of the Business who was an
employee of Seller on the Closing Date (a “Seller Employee”) to leave the employ of the Business or in any way interfere with the relationship between the Business and any Seller Employee, (ii) induce or attempt to induce any
customer or supplier of the Business that was a customer or supplier of Seller on the Closing Date (a “Seller Customer/Supplier”) to cease doing business with the Business, (iii) knowingly induce or attempt to induce any Seller
Employee to leave the employ of Buyer or any of its Affiliates or in any way interfere with the relationship between Buyer or any of its Affiliates and any Seller Employee , or (ii) knowingly induce or attempt to induce any Seller
Customer/Supplier to cease doing business with Buyer or any of its Affiliates. Seller and each Shareholder agrees that this covenant is reasonable with respect to its duration, geographical area and scope. 
 (c) Specific Performance. Seller and each Shareholder agrees that Buyer may suffer irreparable harm from a breach by Seller or any Shareholder of
any of the covenants or agreements contained in this Section 6.3. In the event of an alleged or threatened breach by Seller or any Shareholder of any of the provisions of this Section 6.3, Buyer or its successors or assigns may, in
addition to all other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof. To the
extent of any breach of this Section 6.2 by Seller or any Shareholder, as established by a final, nonappealable order of a court of competent jurisdiction, the Noncompete Period with respect to such breaching Seller or Shareholder shall
automatically be extended by the length of such breach. 
 (d) Scope, etc. If at the time of enforcement of any of the provisions of
this Section 6.3, a court holds that the restrictions stated therein are unreasonable under the circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall
be substituted for the stated period, scope or area. Seller and each Shareholder acknowledge that, without provisions contained in this Section 6.3, Buyer would not have entered into this Agreement. 
  

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 6.4 Employee Matters. 
 (a) Seller will pay to employees employed in the Business all compensation, including salaries, commissions, bonuses, deferred compensation, severance,
insurance, pensions, profit sharing, vacation, sick pay and other compensation or benefits to which they are entitled for time periods ending on or before the Closing Date. Seller will not, without the prior written consent of Buyer, materially
change the compensation or benefits of any employees of the Business after the date of this Agreement. 
 (b) Seller will be responsible for
maintenance and distribution of benefits accrued under any Employee Benefit Plan maintained by Seller pursuant to and if required by the provisions of such plans to employees employed in the Business for the time period ending on or before the
Closing Date. Buyer will not assume any liability for any such benefits or any fiduciary or administrative responsibility to account for or dispose of any such accrued benefits under any Employee Benefit Plans maintained by Seller. 
 (c) All claims and obligations under, pursuant to or in connection with any welfare, medical, insurance, disability or other Employee Benefit Plans of
Seller, or arising under any Law affecting employees of Seller incurred on or before the Closing Date or resulting or arising from events or occurrences occurring on or before the Closing Date (including, without limitation, any liability for
(i) employees who have incurred a disability on or before the Closing Date, (ii) employees on or eligible for COBRA continuation, (iii) employees or dependents hospitalized on or before the Closing Date, and (iv) any retroactive
assessment resulting from under funding of any Employee Benefit Plan by any employer sponsors thereof prior to the Closing Date) will remain the responsibility of Seller, whether or not such employees are hired by Buyer after the Closing. Buyer will
have, and will assume, no obligation or liability under or in connection with any such Employee Benefit Plan or, for any period prior to the Closing, arising under any such Law. Notwithstanding anything contained in this Agreement to the contrary,
Buyer will have and will assume no obligations or liability arising from or related to the failure of any of the Employee Benefit Plans of Seller to comply with the applicable provisions of ERISA or any other law governing or applicable to such
Employee Benefit Plans. 
 (d) All claims and obligations under, pursuant to or in connection with any compensation or bonus plan of Seller
(including, without limitation, any phantom stock plan, stock plan, option plan, or other similar plan or arrangement) pursuant to which any employee, director or officer of Seller receives or is entitled to receive compensation, in any form, solely
as a result of the consummation of the transactions contemplated by this Agreement will remain the responsibility of Seller, whether or not the employees participating in such plans are hired by Buyer after the Closing. Buyer will have, and will
assume, no obligation or liability under or in connection with any such plan. 
 (e) Seller understands that Buyer may hire some or all of
Seller’s employees, and will give Seller reasonable notice prior to the Closing Date with respect to employees it intends to hire. Notwithstanding the foregoing, Buyer shall have no obligation to hire any of the employees and shall have no
liabilities of any kind in connection with any such employees arising from their employment by Seller or the termination thereof (including COBRA liabilities). Any employees hired by Buyer shall enter into a new employment relationship with Buyer
subject to terms and conditions established by Buyer and Buyer shall have no responsibility for any payroll taxes, accrued vacation pay, fringe benefits or other prepaid or deferred obligations for any employee of Seller who enters into the
employment of Buyer arising from any period before such employee enters into an employment relationship with Buyer. On the Closing Date, Seller shall terminate all employees. Any notification required by any federal, state or local law governing
layoffs or terminations, including, without limitation, WARN, shall be given by Seller. Compliance with all such laws shall be Seller’s sole responsibility and liability. 
 6.5 Cooperation and Information Sharing. 
 (a) Buyer and Seller will cooperate with each other in defending or prosecuting any action, suit, proceeding, investigation or audit of the other relating to Buyer’s Tax returns for all periods up and including the Closing date and any
audit of Buyer or Seller with respect to the sales, transfer and similar transactions contemplated by this Agreement. Buyer and Seller shall respond to all reasonable inquiries related to such matters and to provide, to the extent possible,
substantiation of transactions and make available and furnish appropriate documents and personnel in connection therewith. 
 (b) For a
period of seven years after the Closing Date (or such longer period as may be required by any governmental agency or ongoing legal proceeding), neither Seller nor Buyer shall dispose of or destroy any of the business records and files of the
Business, without first giving the other thirty days’ written notice, who then shall have the right, at its option and expense, to take 

  

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possession of the records and files. Each party shall allow the other and its representatives access to all business records and files of the Business,
during regular business hours and upon reasonable notice at such other party’s principal place of business or at any location where such records are stored, and the parties shall have the right, each at its own expense, to make copies of any
such records and files. 
 (c) Buyer shall make available to Seller, at Seller’s expense, personnel to assist in locating and obtaining
records and files maintained by Buyer and any of Buyer’s personnel previously in Seller’s employ whose assistance or participation of or preparation for existing or future litigation, arbitration, tax return preparation or other similar
matters in which Seller or the Shareholders is involved and which is related to the Business. 
 6.6 Collection of Accounts
Receivables. Seller agrees to use reasonable collection methods to collect its accounts receivables consistent with its historical practice and agrees to not use any collection methods that will unduly disrupt Buyer’s ongoing relationship
with its customers. Nothing in this Section shall preclude Seller, upon 10 days prior notice to Buyer, which shall not be unreasonably with held, from utilizing courts of competent jurisdiction to collect its accounts receivables. 
 6.7 Use of Name. On the Closing Date, Seller shall change its name to exclude the words “Carlson Solar” or any name confusingly similar
thereto and following the Closing Date, Seller shall refrain from using the name “Carlson Solar” or any name confusingly similar thereto, provided however Seller is authorized to endorse any checks, money orders or negotiable instruments
received by it in payment of its accounts receivable in the name of Carlson Solar. 
 6.8 Transferred Vehicles. To the extent that
Buyer has not received all of the titles for the Transferred Vehicles on the Closing Date, Seller agrees to take all action necessary at Seller’s sole expense, to promptly deliver such undelivered vehicle titles to Buyer following the Closing
Date. 
 6.9 Financial Statements. At least three business days prior to the Closing Date, Seller will cause to be delivered to Buyer
complete copies of all monthly and quarterly financial statements and operating reports for the Business for periods ending after the date of the Latest Balance Sheet. Such financial statements shall be prepared in accordance with Seller’s
ordinary and customary accounting practices consistently applied, subject to normal year-end adjustments and the absence of footnote disclosures. 
  

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 6.10 Taxes. 
 (a) Buyer and Seller shall equally divide any expense related to any state or local sales, use, transfer, excise, documentary or license taxes or fees or any other charge (including filing fees) imposed by any
Governmental Authority with respect to the transfer of any of the Transferred Assets pursuant to this Agreement; provided however that Buyer shall be responsible for the payment of such taxes or fees and Seller shall promptly reimburse Buyer for
Seller’s portion of such expense. 
 (b) Notwithstanding anything herein to the contrary, all Taxes imposed on a periodic basis,
including such taxes as real property, personal property (tangible and intangible), lease, motor vehicle and ad valorem taxes (“Periodic Taxes”) with respect to the Transferred Assets (other than Taxes discussed in (a) above)
for the taxable period including (but not ending on) the Closing Date (the “Tax Period”) shall be apportioned between Seller and Buyer as of the Closing Date based on the number of days in the Tax Period prior to and including the
Closing Date and the number of days in the Tax Period after the Closing Date. Seller shall be liable for the amount of such Taxes attributable to that portion of the Tax Period that ends on the Closing Date and Buyer shall be liable for the amount
of such Taxes attributable to that portion of the Tax Period after the Closing Date. Each party shall deliver to the other parties copies of any Periodic Tax notices received by the first party with respect to any Tax Periods within ten
(10) Business Days of the first party’s receipt thereof. The parties shall consult with each other regarding the accuracy of such Periodic Tax notice and shall fully cooperate with, and assist, each other in the contest of any erroneous
Periodic Taxes; provided, however, that (i) nothing herein shall relieve any party of its obligation to pay its share of such Periodic Taxes and (ii) upon request of the party receiving such Periodic Tax notice, the other parties shall
make financial arrangements to pay their share of such Periodic Taxes on terms and conditions reasonably acceptable to the other party. 
 6.11 Waiver of Bulk Sale Law. Buyer and Seller waive any requirement that this purchase and sale be subjected to the provisions of the Bulk Sale Law of California. Notwithstanding the foregoing, nothing in this
Section 6.11 shall relieve Seller of its indemnification of Buyer pursuant to Section 8.1. Nothing in this paragraph will stop or prevent either Buyer or Seller from asserting as a bar or defense to any proceeding brought under the bulk
sale law that such law does not apply to the sale contemplated under this agreement. 
 6.12 Securities Matters. Seller and
each Shareholder acknowledge that Buyer will require (at Buyer’s sole cost and expense) audited financial statements for the fiscal years ended December 31, 2005 and December 31, 2006, and reviewed financial statements for the period
from January 1, 2007 through the Closing Date. Seller and each Shareholder shall, at Buyer’s request, and to the extent necessary in connection with a public offering or private placement of any securities of Buyer or any Affiliate of
Buyer, cooperate with Buyer in connection with the audit and review of such financial statements to the extent necessary to enable Buyer to present the financial statements required by Form S-1 of the Securities and Exchange Commission or other
securities laws. Seller and each Shareholder shall render such assistance as may be reasonably necessary in connection with the audit and review of such financial statements and shall provide or make available such records or information relevant
thereto as are in its possession or under its control. In addition, Seller and each Shareholder shall use its reasonable best efforts to assist Buyer in connection with any offering or placement of securities of Buyer, or any Affiliate who is a
direct or indirect parent of Buyer, including, without limitation, 

  

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participation in underwriter due diligence sessions, at such times as required by Buyer (solely with respect to the Business) or any underwriter and by
providing all information necessary concerning the Business as required by Buyer and its underwriter. In addition, in connection with any offering or placement of securities of Buyer, or any Affiliate who is a direct or indirect parent of Buyer,
Scott Carlson shall use his reasonable best efforts to assist with participation in ‘road shows’ in his capacity as an employee of Buyer. 
 6.13 Further Assurances. On and after the Closing Date, each party will take all appropriate action, execute (or cause to be executed) and deliver, all documents, instruments of sale, transfer, conveyance, assignment and delivery,
and such consents, assurances, powers of attorney and other instruments, including, without limitation, evidence of the termination of any Encumbrances on the Transferred Assets, as may be reasonably requested by such party or its counsel in order
to vest in Buyer all right, title and interest of Seller in and to the Transferred Assets and otherwise in order to carry out the purpose and intent of this Agreement. Following the Closing Date, the parties shall cooperate with one another with
respect to completing all necessary reconciliations and reports of all of the accounting and financial activities and operations of and pertaining to Seller and the Business and the other transactions identified in or arising out of this Agreement.
The parties shall provide each other with access to and copies of all appropriate records and reports in furtherance hereof. Without limiting the foregoing, it is understood that any checks or other items of income, and all invoices and statements
relating to any expenses, liabilities or payables physically received by Seller but which belong to Buyer pursuant to the terms hereof, shall be delivered to Buyer and all invoices and statements relating to any expenses, liabilities or payables
physically received by Buyer but which belong to Seller pursuant to the terms hereof, shall be delivered to Seller. Buyer and Seller agree to reconcile all liabilities and expenses (including, without limitation, any Excluded Liabilities) to ensure
that the appropriate adjustments or payments are made between Seller and Buyer to reflect and carry out the terms and agreements set forth in this Agreement. 
 Article VII 
 Closing Deliveries 
 7.1 Deliveries by Seller and the Shareholders. Seller and the Shareholders shall deliver the following to Buyer at Closing: 
 (a) Lease Agreement. The Lease Agreement substantially in the form of Exhibit E hereto. 
 (b) Motor Vehicles. Titles for the vehicles set forth on Schedule 4.16 (the “Transferred Vehicles”); provided, that to the
extent that the titles for any of the Transferred Vehicles are held by a lender to Seller, such titles may be delivered by Seller promptly following the Closing Date in accordance with Section 6.7. 
 (c) Legal Opinion. The legal opinion of Swan Carpenter Wallis & McKenzie LLP, counsel to Seller in the form of Exhibit F
hereto. 
  

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 (d) Encumbrances. Evidence that all Encumbrances (other than Permitted Liens) on the Transferred
Assets of Seller shall have been released. 
 (e) Employment Agreement. The Employment Agreement with Scott Carlson, in the form of
Exhibit G hereto (the “Employment Agreement”). 
 (f) Compliance Certificate. A certificate signed by an
officer of Seller that each of the representations and warranties made by Seller in this Agreement is true and correct in all material respects (provided that any representations and warranties qualified by materiality shall be true and correct in
all respects) as of the Closing Date. 
 (g) Certified Resolutions. Certified copies of the resolutions of the Board of Directors and
the stockholders of Seller authorizing and approving this Agreement and the consummation of the transactions contemplated hereby. 
 (h)
Incumbency Certificate. An incumbency certificate relating to each person executing for Seller any document executed and delivered to Buyer pursuant to the terms hereof. 
 (i) Good Standing. Good standing certificates issued by the Secretary of State of California with respect to Seller. 
 (j) FIRPTA. An affidavit from Seller and each Shareholder complying with the Foreign Investment in Real Property Tax Act. 
 (k) Required Consents. Evidence that all of the Required Consents have been obtained in form and substance reasonably satisfactory to Buyer.

 (l) Delivery of Transaction Documents. The Bill of Sale, Assignment and Assumption Agreement, Escrow Agreement and such other
documents as Buyer or its counsel may reasonably request to evidence the transactions contemplated hereby. 
 7.2 Deliveries by Buyer.
Buyer shall deliver the following to Sellers at the Closing: 
 (a) Compliance Certificate. A certificate signed by an officer of Buyer
that each of the representations and warranties made by Buyer in this Agreement is true and correct in all material respects (provided that any representations and warranties qualified by materiality shall be true and correct in all respects) as of
the Closing Date. 
 (b) Certified Resolutions. Certified copies of the resolutions of the Board of Directors of Buyer authorizing and
approving this Agreement and the consummation of the transactions contemplated hereby. 
 (c) Incumbency Certificate. An incumbency
certificates relating to each person executing for Buyer any document executed and delivered to Seller pursuant to the terms hereof. 
  

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 (d) Deliveries. The Assignment and Assumption Agreement, the Escrow Agreement and such other
documents as Seller or their counsel may reasonably request to evidence the transactions contemplated hereby. 
 Article VIII

 Indemnification 
 8.1 Indemnification. 
 (a) By Seller. Seller and each Shareholder, jointly and severally, shall indemnify and hold
harmless Buyer, and its managers, members, officers, employees, Affiliates and agents, at all times from and after the Closing Date, against and in respect of Losses arising from: (i) any breach of any of the representations or warranties made
by Seller or the Shareholders in this Agreement or the Transaction Documents (without regard to any knowledge, materiality or Material Adverse Effect qualification contained therein); (ii) any breach of the covenants and agreements made by
Seller or the Shareholders in this Agreement or the Transaction Document (without regard to any knowledge, materiality or Material Adverse Effect qualification contained in such covenant or agreement); (iii) any Excluded Liabilities; and
(iv) any failure of Seller to provide notice pursuant to the bulk sales act or similar laws regarding the sale of the Transferred Assets. 
 (b) By Buyer. Buyer shall indemnify and hold harmless Seller and each Shareholder and their respective managers, members, directors, officers, employees, Affiliates and agents at all times from and after the Closing Date against and
in respect of Losses arising from or relating to: (i) any breach of any of the representations or warranties made by Buyer in this Agreement or the Transaction Documents (without regard to any knowledge, materiality or Material Adverse Effect
qualification contained therein); (ii) any breach of the covenants and agreements made by Buyer in this Agreement or the Transaction Documents (without regard to any knowledge, materiality or Material Adverse Effect qualification contained in
such covenant or agreement); (iii) the Assumed Liabilities; and (iv) the operation of the Business after the Closing Date. 
 8.2
Limitations of Indemnity. 
 (a) Notwithstanding the foregoing, (i) no amounts shall be payable under Section 8.1(a)(i)
unless and until the aggregate amount otherwise payable by Seller or the Shareholders exceeds * (the “Deductible”), in which event Seller or the Shareholders shall only be liable for all amounts in excess of such Deductible; and
(a) no claim for indemnification under Section 8.1(a)(i) shall first be asserted after the two year anniversary of the Closing Date; provided, however, that a claim for indemnification under Sections 4.1 (Organization, Qualification
and Authority), 4.7 (Transferred Assets), 4.9 (Environmental and Safety Matters), 4.12 (Seller’s Employee Benefits), 4.17 (Tax Returns; Taxes), or 4.21 (Legal and Other Compliance) may be asserted at any time prior to the expiration of the
statute of limitations applicable thereto. Subject to the following sentence, in no event shall the amount payable under Section 8.1(a)(i) exceed the aggregate of the * payable to Seller under this Agreement (the “Cap”).
Notwithstanding anything herein to the contrary, the Deductible shall not apply to a claim for (i) breach of any representation and warranty set forth in Sections 4.1 (Organization, Qualification and Authority), 4.9 (Environmental and Safety
Matters), 4.12 (Seller’s Employee Benefits), 4.14 (Brokers; Certain Expenses), 4.17 (Tax Returns; Taxes), or 4.21 (Legal and Other Compliance) and (ii) Losses arising from or relating to Excluded Warranty Work. Neither the Deductible nor
the Cap shall apply to a claim for fraud. 
  

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 8.3 Indemnification Procedures — Third Party Claims. 
 (a) The rights and obligations of a party claiming a right of indemnification hereunder (each, an “Indemnitee”) from a party to this
Agreement (each, an “Indemnitor”) in any way relating to a Third Party Claim shall be governed by the following provisions of this Section 8.2: 
 (i) The Indemnitee shall give prompt written notice to the Indemnitor of the commencement of any claim, action suit or proceeding, or any threat thereof, or any state of facts which Indemnitee determines will give
rise to a claim by the Indemnitee against the Indemnitor based on the indemnity agreements contained in this Agreement setting forth, in reasonable detail, the nature and basis of the claim and the amount thereof, to the extent known, and any other
relevant information in the possession of the Indemnitee (a “Notice of Claim”). The Notice of Claim shall be accompanied by any relevant documents in the possession of the Indemnitee relating to the claim (such as copies of any
summons, complaint or pleading which may have been served and, or any written demand or document evidencing the same). No failure to give a Notice of Claim shall affect, limit or reduce the indemnification obligations of an Indemnitor hereunder,
except to the extent such failure actually prejudices such Indemnitor’s ability successfully to defend the claim, action, suit or proceeding giving rise to the indemnification claim. 
 (ii) In the event that an Indemnitee furnishes an Indemnitor with a Notice of Claim, then upon the written acknowledgment by the Indemnitor given to the
Indemnitee within thirty (30) days of receipt of the Notice of Claim, stating that the Indemnitor is undertaking and will prosecute the defense of the claim under such indemnity agreements and confirming that as between the Indemnitor and the
Indemnitee, and that the claim covered by the Notice of Claim is subject to this Article VIII (an “Indemnification Acknowledgment”), then the claim covered by the Notice of Claim may be defended by the Indemnitor, at the sole cost
and expense of the Indemnitor; provided, however, that the Indemnitee is authorized to file any motion, answer or other pleading that may be reasonably necessary or appropriate to protect its interests during such thirty (30) day period.
However, in the event the Indemnitor does not furnish an Indemnification Acknowledgment to the Indemnitee or does not offer reasonable assurances to the Indemnitee as to Indemnitor’s financial capacity to satisfy any final judgment or
settlement, the Indemnitee may, upon written notice to the Indemnitor, assume the defense (with legal counsel chosen by the Indemnitee) and dispose of the claim, at the sole cost and expense of the Indemnitor. Notwithstanding receipt of an
Indemnification Acknowledgment, the Indemnitee shall have the right to employ its own counsel in respect of any such claim, action, suit or proceeding, but the fees and expenses of such counsel shall be at the Indemnitee’s own cost and expense,
unless (A) the employment of such counsel and the payment of such fees and expenses shall have been specifically authorized by the Indemnitor in connection with the defense of such claim, action, suit or proceeding or (B) the Indemnitee
shall have reasonably concluded based upon a written opinion of counsel that there may be specific defenses available to the Indemnitee which are different from or in addition to those available to the Indemnitor, in which case the costs and
expenses incurred by the Indemnitee shall be borne by the Indemnitor. 
 (iii) The Indemnitee or the Indemnitor, as the case may be, who is
controlling the defense of the claim, action, suit or proceeding, shall keep the other fully informed of such claim, action, suit or proceeding at all stages thereof, whether or not such 

  

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party is represented by counsel. The parties hereto agree to render to each other such assistance as they may reasonably require of each other in order to
ensure the proper and adequate defense of any such claim, action, suit or proceeding. Subject to the Indemnitor furnishing the Indemnitee with an Indemnification Acknowledgment in accordance with Section 8.2(a)(ii), the Indemnitee shall
cooperate with the Indemnitor and provide such assistance, at the sole cost and expense of the Indemnitor, as the Indemnitor may reasonably request in connection with the defense of any such claim, action, suit or proceeding, including, but not
limited to, providing the Indemnitor with access to and use of all relevant corporate records and making available its officers and employees for depositions, pre trial discovery and as witnesses at trial, if required. In requesting any such
cooperation, the Indemnitor shall have due regard for, and attempt to not be disruptive of, the business and day to day operations of the Indemnitee and shall follow the requests of the Indemnitee regarding any documents or instruments which the
Indemnitee believes should be given confidential treatment. 
 (b) The Indemnitor shall not make or enter into any settlement of any claim,
action, suit or proceeding which Indemnitor has undertaken to defend, without the Indemnitee’s prior written consent (which consent shall not be unreasonably withheld or delayed), unless there is no obligation, directly or indirectly, on the
part of the Indemnitee to contribute to any portion of the payment for any of the Losses, the Indemnitee receives a general and unconditional release with respect to the claim (in form, substance and scope reasonably acceptable to the Indemnitee),
there is no finding or admission of any violation of law by, or effect on any other claim that may be made against the Indemnitee and, in the reasonable judgment of the Indemnitee, the relief granted in connection therewith is not likely to have a
Material Adverse Effect on the Indemnitee or the Indemnitee’s reputation or prospects. 
 (c) Any claim for indemnification that may be
made under more than one subsection under Section 8.1 may be made under the subsection that the claiming party may elect in its sole discretion, notwithstanding that such claim may be made under more than one subsection. 
 8.4 Indemnification Procedures — Other Claims, Indemnification Generally. 
 (a) A claim for indemnification for any matter not relating to a Third Party Claim under Section 8.2 may be asserted by giving reasonable notice
directly by the Indemnitee to the Indemnitor. The Indemnitee shall afford the Indemnitor access to all relevant corporate records and other information in its possession relating thereto. 
 (b) If any party becomes obligated to indemnify another party with respect to any claim for indemnification hereunder and the amount of liability with
respect thereto shall have been finally determined, the Indemnitor shall pay such amount to the Indemnitee in immediately available funds within ten (10) days following written demand by the Indemnitee. 
 8.5 Exclusive Remedy. The provisions for indemnification set forth in this Article VIII are the exclusive remedies of Buyer, Seller and the
Shareholders arising out of or in connection with this Agreement, and shall be in lieu of any rights under contract, tort, equity or otherwise (other than claims based on actual fraud or intentional breach of this Agreement). 
  

 30 

 8.6 Escrow. Any amount owing under this Article VIII shall be first paid from the Escrow Amount
(to the extent such amounts have not been released) with Seller or Buyer, as applicable, remaining liable for any deficiency. 
 Article IX

 Miscellaneous 
 9.1
Publicity. Except as required by law, neither Seller nor the Shareholders shall make any press release or other public announcement concerning this Agreement or the transactions contemplated hereby without advance written approval thereof by
Buyer. 
 9.2 Expenses. Except as provided in Article VIII, Seller and Buyer shall bear all of their own expenses in connection with
the execution, delivery and performance of this Agreement and the transactions contemplated hereby, including without limitation all fees and expenses of its agents, representatives, counsel and accountants. 
 9.3 Entire Agreement; Amendments and Waivers. This Agreement, together with all Exhibits and Disclosure Schedules hereto and the other Transaction
Documents, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. This Agreement may not
be amended or modified except by an instrument in writing signed by Buyer, Seller and the Shareholders. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. Neither the failure nor the delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver of such right, power
or privilege, and no single or partial exercise of any such right, power or privilege shall preclude any other or further exercise of any such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent
permitted by applicable Law, (a) no waiver that may be given by a party shall be applicable except in the specific instance for which it was given and (b) no notice to or demand on one party shall be deemed to be a waiver of any obligation
of such Party or the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the other Transaction Documents. 
 9.4 Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement will be
in writing and will be deemed to have been given (i) when delivered if personally delivered by hand (with written confirmation of receipt), (ii) when received if sent by a nationally recognized overnight courier service (receipt
requested), or (iii) when receipt is acknowledged by an affirmative act of the party receiving notice, if sent by facsimile, telecopy or other electronic transmission device (provided that such an acknowledgement does not include an
acknowledgment generated automatically by a facsimile or telecopy machine or other electronic transmission device). Notices, demands and communications to Buyer, Seller and the Shareholders will, unless another address is specified in writing, be
sent to the address indicated below: 
  

 31 

 If to Buyer, to: 
 Real Goods Carlson, Inc. 
 P.O. Box 593 
 13771 So. Highway 101 
 Hopland, CA 95449

 Attention: John Schaeffer 
 Telephone: (707) 744-2010 
 Facsimile: (707) 744-2104 
 E-Mail: john@realgoods.com 
 with a copy
(which shall not serve as notice) to: 
 Brownstein Hyatt Farber Schreck, LLP 
 410 Seventeenth Street, Suite 2200 
 Denver,
CO 80202 
 Attention: Jacquelyn Kilmer 
 Telephone: (303) 223-1100 
 Facsimile: (303) 223-1111 
 E-Mail: jkilmer@bhfs.com 
 and 

Gaiam, Inc. 
 360 Interlocken Blvd.

 Broomfield, CO 80021 
 Attention: John Jackson 
 Telephone: (303) 222-3809 
 Facsimile: (303) 222-3700 
 E-Mail:
john.jackson@gaiam.com 
 If to Seller to: 
 Carlson Solar, Inc. 
 44142 Merced Road 
 Hemet, CA 92544 
 Attention: Scott Carlson

 Telephone: (909) 732-0782 
 Facsimile: (951) 927-4433 
 E-Mail: scottsolar@hotmail.com 
  

 32 

 with a copy (which shall not serve as notice) to: 
 Swan Carpenter Wallis & McKenzie LLP 
 1600 E. Florida Ave Suite 211 
 Hemet, CA 92544 
 Attention: Bruce Wallis 
 Telephone: (951) 658-7162 
 Facsimile: (951) 658-2231 
 E-Mail:
bwallis@scwm-hemet.com 
 If to the Shareholders to: 
 Scott and Mary Carlson 
 44142 Merced Road 
 Hemet, CA 92544 
 Attention: Scott Carlson

 Telephone: (909) 732-0782 
 Facsimile: (951) 927-4433 
 E-Mail: scottsolar@hotmail.com 
 or at such other address or addresses as Buyer, Seller or the Shareholders, as the case may be, may specify by written notice given in accordance with this Section 9.4. 
 9.5 Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended and the terms hereof may be waived only by a
written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. 
 9.6 Governing Law. IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
THAT STATE (WITHOUT REGARD TO THE CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
 9.7 Consent to Jurisdiction and Venue. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENT AND AGREE THAT ALL ACTIONS, SUITS OR OTHER PROCEEDINGS ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
IN STATE OR FEDERAL COURTS LOCATED IN RIVERSIDE COUNTY, CALIFORNIA, WHICH COURTS SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY AND ALL CLAIMS, CONTROVERSIES AND DISPUTES ARISING OUT OF OR RELATED TO THIS AGREEMENT. NOTWITHSTANDING THE
FOREGOING, NOTHING CONTAINED IN THIS SECTION 9.7 SHALL PRECLUDE ANY PARTY FROM BRINGING ANY ACTION, SUIT OR OTHER PROCEEDING IN THE COURTS OF ANY OTHER LOCATION WHERE BUYER, SELLER OR SHAREHOLDERS OR ANY ONE OF THEM OR ANY OF ITS OR THEIR ASSETS OR
THE COLLATERAL MAY BE FOUND OR LOCATED OR TO ENFORCE ANY JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PARTY. 
  

 33 

 EACH OF SELLER AND EACH SHAREHOLDER, FOR ITSELF AND ITS PROPERTY, (A) IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY SUCH COURT AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION, SUIT OR OTHER PROCEEDING COMMENCED IN ANY SUCH COURT, (B) WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR ANY OBJECTION
THAT SUCH PERSON MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION OR IMPROPER VENUE AND (C) CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. 
 TO THE EXTENT PERMITTED UNDER THE APPLICABLE LAWS OF ANY SUCH JURISDICTION, EACH OF SELLER ANY AND EACH SHAREHOLDER HEREBY WAIVES, IN RESPECT OF ANY SUCH
ACTION, SUIT OR OTHER PROCEEDING, THE JURISDICTION OF ANY OTHER COURT OR COURTS THAT NOW OR HEREAFTER, BY REASON OF SUCH PARTY’S PRESENT OR FUTURE DOMICILE, OR OTHERWISE, MAY BE AVAILABLE TO IT. 
 9.8 Attorneys’ Fees and Costs. If any litigation or arbitration shall occur between the Parties, which litigation arises out of or as
a result of this Agreement or the acts of the Parties, or which seeks an interpretation or enforcement of this Agreement, the prevailing party shall be entitled to recover all costs and expenses of such litigation, including reasonable
attorney’s fees and costs. 
 9.9 Counterparts. This Agreement may be executed in two or more counterparts (delivery of which may
occur via facsimile), each of which shall be binding as of the date first written above, and, when delivered, all of which shall constitute one and the same instrument. A facsimile signature or electronically scanned copy of a signature shall
constitute and shall be deemed to be sufficient evidence of a party’s execution of this Agreement, without necessity of further proof. Each such copy shall be deemed an original, and it shall not be necessary in making proof of this Agreement
to produce or account for more than one such counterpart. 
 9.10 Invalidity. If any term or other provision of this Agreement is held
by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced under any applicable Law in any particular respect or under any particular circumstances, then, so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any Party, (a) such term or provision shall nevertheless remain in full force and effect in all other respects and under all other circumstances, and (b) all other
terms, conditions and provisions of this Agreement shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner so that the transactions contemplated hereby are fulfilled to the fullest extent possible. 
  

 34 

 9.11 Negotiated Agreement. The parties hereby acknowledge that the terms and language of this
Agreement were the result of negotiations among the Parties and, as a result, there shall be no presumption that any ambiguities in this Agreement shall be resolved against any particular party. Any controversy over construction of this Agreement
shall be decided without regard to events of authorship or negotiation. 
 9.12 Assignment. This Agreement shall inure to the benefit
of, and be binding upon, the parties and their respective successors and permitted assigns. In addition, it is the intent of the parties that the Indemnitees that are not a party hereto be third party beneficiaries of Article VIII of this Agreement.
Buyer, Seller or any Shareholder may not assign, transfer or delegate any of their rights or obligations hereunder or any interest herein, by operation of law or otherwise, without the prior written consent of the other Parties; provided, that Buyer
may assign its rights and obligations under this Agreement to any wholly owned affiliate of Gaiam, Inc. 
 9.13 Severability. If any
provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future applicable Laws during the term thereof, such provision shall be fully severable, this Agreement shall be construed and enforced as if such illegal,
invalid, or unenforceable provision had never comprised a part thereof, and the remaining provisions thereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance
therefrom. Furthermore, in lieu of such illegal, invalid, or unenforceable provision there shall be added automatically as a part of this Agreement a legal, valid, and enforceable provision as similar in terms to the illegal, invalid, or
unenforceable provision as may be possible, which shall to the greatest extent possible effect the original intent of the parties. 
  

 35 

 Execution Version 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 
  

			
	BUYER:
	
	REAL GOODS CARLSON, INC.
		
	By:	 	  

	Name:	 	John Schaeffer
	Title:	 	President
	
	SELLER:
	
	CARLSON SOLAR
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	SHAREHOLDERS:
	
	  

	Robert Scott Carlson
	
	  

	Mary Carlson
	
	  

	Brandon Carlson
	
	  

	Brittany CarlsonIntercorporate Services Agreement

 Exhibit 10.6 
 INTERCORPORATE SERVICES AGREEMENT 
 AMONG 
 GAIAM, INC. AND ITS
SUBSIDIARIES 
 AND 
 REAL GOODS SOLAR, INC. 
 Dated as of
                     
  

 TABLE OF CONTENTS 
  

							
		  	Page
	ARTICLE I. RETENTION OF GAIAM	  	1
			
		  	 Section 1.1. Gaiam Services
	  	1
		  	 Section 1.2. Director Services Not Included
	  	2
		  	 Section 1.3. Outside Services
	  	2
		  	 Section 1.4. Disclaimer, Limited Liability; Indemnification
	  	2
		
	ARTICLE II. COMPENSATION	  	3
			
		  	 Section 2.1. Compensation for Services
	  	3
		  	 Section 2.2. Out-of-Pocket Costs
	  	3
		
	ARTICLE III. CONFIDENTIALITY	  	4
			
		  	 Section 3.1. Confidentiality
	  	4
		
	ARTICLE IV. MISCELLANEOUS	  	4
			
		  	 Section 4.1. Maintenance and Inspection of Records
	  	4
		  	 Section 4.2. Notices
	  	4
		  	 Section 4.3. Term; Renewal
	  	5
		  	 Section 4.4. Independent Contractor
	  	5
		  	 Section 4.5. Force Majeure
	  	5
		  	 Section 4.6. Entire Agreement
	  	5
		  	 Section 4.7. Amendments
	  	5
		  	 Section 4.8. Severability
	  	6
		  	 Section 4.9. Counterparts
	  	6
		  	 Section 4.10. Successors and Assigns
	  	6
		  	 Section 4.11. Governing Law
	  	6
		  	 Section 4.12. Submission to Jurisdiction; Service; Waivers
	  	6
		  	 Section 4.13. No Third-Party Beneficiaries
	  	6
		  	 Section 4.14. Titles and Headings
	  	7

  

 -i- 

 INTERCORPORATE SERVICES AGREEMENT 
 This Intercorporate Services Agreement (“Agreement”) is entered into effective as of
                         (the “Effective Date”), among Gaiam, Inc., a Colorado corporation, and its subsidiaries
(“Gaiam”), and Real Goods Solar, Inc., a Colorado corporation (“RGSI”). 
 Recitals 
 A.        Gaiam owns 100% of the outstanding shares of RGSI’s Class B common stock. 
 B.        RGSI has and will have the need for certain corporate services. They may include, but are not
limited to, executive, management, financial, audit, accounting, tax, treasury, human resources, payroll, technical, fulfillment, inventory management, customer service and certain occupancy and related office services as required from time to time
in the ordinary course of RGSI’s business (collectively, the “Gaiam Services”). RGSI has determined that it is not cost effective to obtain and separately maintain the infrastructure associated with the Gaiam Services,
particularly the costs associated with attracting and maintaining on its payroll on a full time basis a full complement of skilled employees. 
 C.        Gaiam is able and willing to provide the Gaiam Services to RGSI, and RGSI desires to engage Gaiam, as an independent contractor, to provide the Gaiam Services in accordance with the
terms set forth in this Agreement. 
 Agreement 
 For and in consideration of the mutual promises, representations and covenants contained in this Agreement, the parties agree as follows. 
 ARTICLE I. 
 RETENTION OF GAIAM 
 Section 1.1. Gaiam Services. 
 (a)        RGSI hereby engages and retains Gaiam to perform the Gaiam Services and Gaiam
hereby accepts and agrees to provide such Gaiam Services to RGSI upon the terms and conditions set forth in this Agreement. All Gaiam Services to be provided by Gaiam hereunder shall be performed at the request and under the direction of RGSI, and
Gaiam shall not have any power to act independently on behalf of RGSI other than as specifically authorized under this Agreement or from time to time by RGSI. Gaiam shall provide Gaiam Services in connection with routine functions related to the
ongoing ordinary course of RGSI’s business. The Gaiam Services rendered in connection with the conduct of RGSI’s business will be on a scale compared to that existing on the Effective Date, adjusted for internal corporate growth or
contraction, but not for major corporate acquisitions, divestitures or special projects, and adjustments may be required to the terms of this Agreement in the event of such major corporate acquisitions, divestitures or special projects. 

 

 (b)        Gaiam shall determine the
corporate facilities to be used in rendering the Gaiam Services and the individuals who will render such Gaiam Services. 
 (c)        Gaiam will use reasonable efforts to make the Gaiam Services available with substantially the same degree of care as it employs in making similar services available for its own
operations. 
 (d)        Those employees or agents of Gaiam who perform
similar services for Gaiam or for other affiliates of Gaiam, or both, will perform the Gaiam Services. 
 (e)        Nothing herein shall be deemed to restrict any party or its directors, officers, employees or agents from engaging in any business, or from contracting with other parties, including,
without limitation, other affiliates of Gaiam, for similar or different services. 
 (f)        As a part of the Gaiam Services, Gaiam agrees to make available to RGSI the Gaiam customer list. Provided, however, that RGSI agrees not to use, lease, sell or transfer in any other
manner, any Gaiam customer list and agrees that RGSI’s use of any Gaiam customer list shall be limited to use by RGSI only in its solar and renewable and sustainable energy business. In addition, all mailings to and contact with any Gaiam
customers shall be made exclusively by Gaiam on behalf of RGSI, and shall be subject to any limitations and guidelines relating to customer communications that Gaiam may impose from time to time including, without limitation, guidelines regarding
the frequency of communications. 
 Section 1.2. Director Services Not Included. The Gaiam Services do
not include any services that employees of Gaiam may provide to RGSI in their roles as members of RGSI’s board of directors or any other activity related to such board of directors. 
 Section 1.3. Outside Services. RGSI will continue to bear all other costs required for outside services within the scope
of the Gaiam Services including, but not limited to, the outside services of attorneys, auditors, trustees, consultants, transfer agents and registrars, and it is expressly understood that Gaiam assumes no liability for any expenses or services
other than those stated in this Article. 
 Section 1.4. Disclaimer, Limited Liability; Indemnification. 

 (a)        Except as expressly provided elsewhere in this Agreement, Gaiam
makes no express or implied representations, warranties or guarantees relating to the Gaiam Services or the quality or results of the Gaiam Services to be performed under this Agreement. 
 (b)        Gaiam, its directors, officers, employees, stockholders or agents shall not be
liable to RGSI or any third party, including any governmental agency, for any claims, demands, losses, liabilities, damages, costs or expenses, including attorneys’ and expert 

  

 -2- 

 
witness fees, arising from or in connection with the Gaiam Services, other than those arising from or in connection with the gross negligence or
willful misconduct of Gaiam or its directors, officers, employees, stockholders or agents (collectively, “Gaiam No Liability Claims”). 
 (c)        RGSI assumes all liability for, and agrees to defend, indemnify and hold Gaiam harmless from and against all Gaiam No Liability Claims. RGSI assumes all
liability for, and agrees to defend, indemnify and hold Gaiam’s directors, officers, employees, stockholders or agents harmless from, all Gaiam No Liability Claims to the same extent that Gaiam could assume such liability for, or defend,
indemnify and hold harmless, such entity or person. RGSI shall promptly advance expenses as incurred by Gaiam its directors, officers, employees, stockholders or agents in connection with RGSI’s obligations under this Section. 
 ARTICLE II.  
 COMPENSATION 
 Section 2.1. Compensation for Services. 
 (a)        Gaiam and RGSI shall agree on the aggregate annual amount for a particular year
that RGSI shall owe Gaiam for the Gaiam Services based upon the parties’ good faith estimates of the Gaiam Services to be required for that year and the estimated fees for such services (the “Gaiam Services Annual Amount”). The
Gaiam Services Annual Amount and formulae for various services making up the Gaiam Services Annual Amount, as well as any quarterly changes, must be approved by each of Gaiam’s and RGSI’s board of directors or their designated
representatives. 
 (b)        RGSI shall pay to Gaiam in advance quarterly
around the first business day of each quarter one fourth of the Gaiam Services Annual Amount. 
 (c)        From time to time upon a change to the Gaiam Services Annual Amount for a particular year, the parties, as applicable, shall promptly make appropriate payments to reflect such
change. 
 (d)        All charges under this Agreement are intended to be
equal to the actual cost of such charges without premium or mark-up; provided, however, that applicable administrative and other overhead costs associated with the Gaiam Services will be allocated and included in the Gaiam Services Annual Amount.
Such costs shall include, without limitation, those associated with product development, product shipping and handling, development and use of trademarks and other intellectual property, technological support, merchandising, and other costs.

 Section 2.2. Out-of-Pocket Costs. In addition to the fees paid for the Gaiam Services under this Agreement,
RGSI will promptly pay to Gaiam the amount of out-of-pocket costs incurred by Gaiam in rendering such services. 
 ARTICLE III.
 
 CONFIDENTIALITY 
 Section 3.1. Confidentiality. Each party shall hold and shall cause its directors, officers, employees, agents, consultants and advisors (“Representatives”) to hold in
strict confidence all 

  

 -3- 

 
information concerning the other party unless (i) such party is compelled to disclose such information by judicial or administrative process or, in the
opinion of its counsel, by other requirements of law or (ii) such information can be shown to have been (A) in the public domain through no fault of such party or (B) lawfully acquired on a non-confidential basis from other sources.
Notwithstanding the foregoing, such party may disclose such information to its Representatives so long as such persons are informed by such party of the confidential nature of such information and are directed by such party to treat such information
confidentially. If such party or any of its Representatives becomes legally compelled to disclose any documents or information subject to this Section, such party will promptly notify the other party (or parties) so that the other party (or parties)
may seek a protective order or other remedy or waive such party’s (or parties’) compliance with this Section. If no such protective order or other remedy is obtained or waiver granted, such party will furnish only that portion of the
information that it is advised by counsel is legally required and will exercise its reasonable efforts to obtain adequate assurance that confidential treatment will be accorded such information. Such party agrees to be responsible for any breach of
this Section by it and its Representatives. 
 ARTICLE IV.  
 MISCELLANEOUS 
 Section 4.1. Maintenance and Inspection
of Records. Gaiam shall keep accurate books, accounts and records regarding the Gaiam Services it provides under this Agreement as may be reasonably necessary for purposes of this Agreement. RGSI shall be permitted to inspect the books,
accounts and records of Gaiam at any reasonable time. 
 Section 4.2. Notices. All notices and other
communications hereunder shall be in writing, and shall be delivered by hand or mailed by registered or certified mail (return receipt requested) or transmitted by facsimile to the parties at the following addresses (or at such other addresses for a
party as shall be specified by like notice) and shall be deemed given on the date on which such notice is received: 
  

			
	If to Gaiam:	  	Gaiam, Inc.
		  	360 Interlocken Boulevard
		  	Broomfield, Colorado 80021
		  	Attention: Chief Financial Officer
		  	Phone: 303-222-3600
		  	Fax: 303-222-3609

  

 -4- 

			
	 If to RGSI:
	  	 Real Goods Solar, Inc.
 360 Interlocken
Boulevard
 Broomfield, Colorado 80021
 Attention: Chief Financial
Officer
 Phone: 303-222-8400
 Fax:
303-                

 Section 4.3. Term; Renewal. The initial term of this
Agreement shall commence as of the Effective Date and end on December 31, 2008, but shall be automatically renewed on a quarter-to-quarter basis after the expiration of the initial term. Gaiam may not terminate this agreement prior to eighteen
months after the Effective Date so long as Gaiam owns more than 20% of the outstanding common equity of RGSI. RGSI may terminate this Agreement by giving written notice of termination to Gaiam not less than ninety (90) days in advance of the
first day of each successive quarter. In the event of a material default hereunder by a party, the non-defaulting party may terminate this Agreement upon thirty (30) days prior written notice if such default remains uncured and is continuing
for twenty (20) days after receipt by the defaulting party of such written notice of intent to terminate. A final accounting and payment by one party to the other of all amounts payable hereunder shall be made pursuant to the terms hereof
within thirty (30) days following such termination. 
 Section 4.4. Independent Contractor. Gaiam
shall be an independent contractor and not an employee of, or partner or joint venturer with, RGSI. 
 Section 4.5.
Force Majeure. No party shall be in default of this Agreement or liable to the other party for any delay or default in performance where occasioned by any cause of any kind or extent beyond its control, including but
not limited to, armed conflict or economic dislocation resulting therefrom; embargoes; shortages of labor, raw materials, production facilities or transportation; labor difficulties; civil disorders of any kind; action of any civil or military
authorities (including, priorities and allocations); fires; floods and accidents. The dates on which the obligations of the party are to be fulfilled shall be extended for a period equal to the time lost by reason of any delay arising, directly or
indirectly from: 
 (a)        Any of the foregoing causes, or

 (b)        Inability of a party, as a result of causes beyond its
reasonable control, to obtain instruction or information from the other party in time to perform its obligations by such dates. 
 Section 4.6. Entire Agreement. This Agreement constitutes the entire understanding among the parties with respect to the subject matter hereof and all prior agreements or understandings shall be deemed
merged herein. No representations, warranties or certifications, express or implied, shall exist as between the parties except as stated herein. 
 Section 4.7. Amendments. No amendments, waivers or modifications hereof shall be made or deemed to have been made unless in writing, executed by the party or parties to be bound thereby. 

 

 -5- 

 Section 4.8. Severability. If any provision in this Agreement or
the application of such provision to any person or circumstance shall be invalid, illegal or unenforceable, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held
invalid, illegal or unenforceable shall not be affected thereby. 
 Section 4.9.
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 when taken together shall constitute this Agreement. 

 Section 4.10. Successors and Assigns. This Agreement shall not be assignable, in whole or in part,
directly or indirectly, by any party hereto without the prior written consent of the other party hereto, and any attempt to assign any rights or obligations arising, under this Agreement without such consent shall be void. This Agreement shall be
binding, upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 Section 4.11. Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the state of Colorado, without giving effect to any choice of law or conflict of
law provision or rule (whether of the state of Colorado or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the state of Colorado. 
 Section 4.12. Submission to Jurisdiction; Service; Waivers. WITH RESPECT TO ANY CLAIM ARISING OUT OF THIS
AGREEMENT, EACH PARTY (A) IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE JURISDICTION OF THE FEDERAL OR STATE COURTS LOCATED INBROOMFIELD COUNTY, COLORADO, (B) AGREES THAT THE VENUE FOR ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT SHALL BE EXCLUSIVE TO SUCH COURTS, AND (C) IRREVOCABLY WAIVES ANY OBJECTION IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT BROUGHT IN ANY
SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER IRREVOCABLY WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH CLAIM, SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER IT. EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY OF THE AFORESAID COURTS BY THE MAILING OF COPIES
OF SUCH PROCESS TO THE PARTY, BY CERTIFIED OR REGISTERED MAIL AT THE ADDRESS SPECIFIED IN SECTION 4.2. 
 Section 4.13.
No Third-Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other
right in excess of those existing without reference to this Agreement. 
  

 -6- 

 Section 4.14. Titles and Headings. Titles and headings to sections
herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
  
 [Remainder of this page intentionally left blank] 
  

 -7- 

 Executed as of the Effective Date. 
  

			
	GAIAM, INC.
		
	By:	 	  

		
	Title:	 	
	
	REAL GOODS SOLAR, INC.
		
	By:	 	  

		
	Title:	 	

  

 -8-

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