Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of April 1, 2016, by and among Real Goods Solar, Inc., a Colorado
corporation, with headquarters located at 833 West South Boulder Road, Louisville, CO 80027 (the "Company"),
and the investors listed on the Schedule of Buyers attached hereto (each, a "Buyer" and collectively, the
"Buyers").

 

WHEREAS:

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the "Securities
Purchase Agreement"), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to each Buyer (i) senior secured convertible notes of the Company (the "Notes"),
which will, among other things, be convertible (upon conversion, amortization or otherwise) into the Company's Class A common stock,
par value $0.0001 per share (the "Common Stock") (the shares of Common Stock issuable pursuant to the terms of
the Notes, collectively, the "Conversion Shares") and (ii) warrants (the "Warrants") which will
be exercisable to purchase shares of Common Stock (as exercised, collectively, the "Warrant Shares") in accordance
with the terms of the Warrants.

 

B.           In
accordance with the terms of the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the "1933 Act"), and applicable state securities laws.

 

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

 

1.           Definitions.

 

Capitalized terms used herein
and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used in
this Agreement, the following terms shall have the following meanings:

 

(a)          "Additional
Effective Date" means the date an Additional Registration Statement is declared effective by the SEC.

 

(b)          "Additional
Effectiveness Deadline" means the date which is the earlier of (x) (i) in the event that the Additional Registration Statement
is not subject to a review by the SEC, forty-five (45) calendar days after the earlier of the Additional Filing Date and the Additional
Filing Deadline or (ii) in the event that the Additional Registration Statement is subject to a review by the SEC, sixty (60) calendar
days after the earlier of the Additional Filing Date and the Additional Filing Deadline and (y) the fifth (5th) Business
Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Additional Registration
Statement will not be reviewed or will not be subject to further review; provided, however, that if the Additional Effectiveness
Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Additional Effectiveness Deadline shall
be extended to the next Business Day on which the SEC is open for business.

 

    	 	 	 

     

    

 

(c)          "Additional
Filing Date" means the date on which an Additional Registration Statement is filed with the SEC.

 

(d)          "Additional
Filing Deadline" means if Cutback Shares are required to be included in any Additional Registration Statement, (I) the
later of (i) the date sixty (60) days after the date substantially all of the Registrable Securities registered under the immediately
preceding Registration Statement are sold and (ii) the date six (6) months from the Initial Effective Date or the most recent Additional
Effective Date, as applicable or (II) if the staff of the SEC requires pursuant to written comments a date that is later than the
date set forth in clause (I) above, such earliest date permitted by the staff of the SEC.

 

(e)          "Additional
Registrable Securities" means, (i) any Cutback Shares not previously included on a Registration Statement and (ii) any
capital stock of the Company issued or issuable with respect to the Notes, the Conversion Shares, the Warrants, the Warrant Shares,
or the Cutback Shares, as applicable, as a result of any stock split, stock dividend, recapitalization, exchange or similar event
or otherwise, without regard to any limitations on conversion, amortization and/or redemption of the Notes or exercise of the Warrants,
in each case, not previously included on a Registration Statement.

 

(f)           "Additional
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering the resale of any Additional Registrable Securities.

 

(g)          "Additional
Required Registration Amount" means any Cutback Shares not previously included on a Registration Statement, without regard
to any limitations on conversion, amortization and/or redemption of the Notes or exercise of the Warrants.

 

(h)          "Business
Day" means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are
authorized or required by law to remain closed.

 

(i)           "Closing
Date" shall have the meaning set forth in the Securities Purchase Agreement.

 

(j)           "Cutback
Shares" means any of the Initial Required Registration Amount or the Additional Required Registration Amount of Registrable
Securities not included in all Registration Statements previously declared effective hereunder as a result of a limitation on the
maximum number of shares of Common Stock of the Company permitted to be registered by the staff of the SEC pursuant to Rule 415.
The number of Cutback Shares shall be allocated pro rata among the Investors with each Investor
entitled to elect the portion of its Conversion Shares and/or Warrant Shares that are to be considered Cutback Shares. For
the purpose of determining the Cutback Shares, in order to determine any applicable Required Registration Amount, unless an Investor
gives written notice to the Company to the contrary with respect to the allocation of its Cutback Shares, first the Warrant Shares
shall be excluded on a pro rata basis among the Investors until all of the Warrant Shares have been excluded, and second the Conversion
Shares shall be excluded on a pro rata basis among the Investors until all of the Conversion Shares have been excluded.

 

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(k)          "Effective
Date" means the Initial Effective Date and the Additional Effective Date, as applicable.

 

(l)           "Effectiveness
Deadline" means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

 

(m)         "Eligible
Market" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global Select Market, The New
York Stock Exchange, Inc., the OTC Bulletin Board, the OTC QX or the OTC QB.

 

(n)          "Filing
Deadline" means the Initial Filing Deadline and the Additional Filing Deadline, as applicable.

 

(o)          "Initial
Effective Date" means the date that the Initial Registration Statement has been declared effective by the SEC.

 

(p)          "Initial
Effectiveness Deadline" means the date which is the earlier of (x) (i) in the event that the Initial Registration Statement
is not subject to a review by the SEC, seventy-five (75) calendar days after the Closing Date or (ii) in the event that the Initial
Registration Statement is subject to a review by the SEC, ninety (90) calendar days after the Closing Date and (y) the fifth (5th)
Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Initial Registration
Statement will not be reviewed or will not be subject to further review; provided, however, that if the Initial Effectiveness Deadline
falls on a Saturday, Sunday or other day that the SEC is closed for business, the Initial Effectiveness Deadline shall be extended
to the next Business Day on which the SEC is open for business.

 

(q)          "Initial
Filing Date" means the date on which the Initial Registration Statement is filed with the SEC.

 

(r)           "Initial
Filing Deadline" means the date which is forty-five (45) calendar days after the Closing Date.

 

(s)          "Initial
Registrable Securities" means (i) the Conversion Shares issued or issuable pursuant to the terms of the Notes, (ii) the
Warrant Shares issued or issuable upon exercise of the Warrants and (iii) any capital stock of the Company issued or issuable with
respect to the Notes, the Conversion Shares, the Warrant Shares or the Warrants as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, in each case without regard to any limitations on conversion, amortization
and/or redemption of the Notes or exercise of the Warrants.

 

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(t)           "Initial
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering the resale of the Initial Registrable Securities.

 

(u)          "Initial
Required Registration Amount" means 200% of the sum of (i) the maximum number of Conversion Shares issued and issuable
pursuant to the Notes determined utilizing the Equity Conditions Conversion Price (as defined in the Notes) and (ii) the maximum
number of Warrant Shares issued and issuable pursuant to the Warrants, each as of the Trading Day immediately preceding the applicable
date of determination, without regard to any limitations on conversion, amortization and/or redemption of the Notes or exercise
of the Warrants.

 

(v)          "Investor"
means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee
or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 9.

 

(w)         "Lead
Investor" means Hudson Bay Master Fund Ltd.

 

(x)           "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

(y)          "Principal
Market" means The NASDAQ Capital Market.

 

(z)          "register,"
"registered," and "registration" refer to a registration effected by preparing and filing one
or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415, and the declaration
or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

(aa)        "Registrable
Securities" means the Initial Registrable Securities and the Additional Registrable Securities.

 

(bb)        "Registration
Statement" means the Initial Registration Statement and the Additional Registration Statement, as applicable.

 

(cc)        "Required
Holders" means the holders representing at least fifty-five (55%) of the Registrable Securities and shall include the
Lead Investor so long as the Lead Investor and/or any of its Affiliates collectively hold at least five percent (5%) of the Registrable
Securities.

 

(dd)        "Required
Registration Amount" means either the Initial Required Registration Amount or the Additional
Required Registration Amount, as applicable.

 

(ee)        "Rule
415" means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous
or delayed basis.

 

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(ff)          "SEC"
means the United States Securities and Exchange Commission.

 

(gg)        "Trading
Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

2.           Registration.

 

(a)          Initial
Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Initial Filing
Deadline, file with the SEC the Initial Registration Statement on Form S-3 covering the resale of all of the Initial Registrable
Securities. In the event that Form S-3 is unavailable for such a registration, the Company shall use such other form as is available
for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of
Section 2(e). The Initial Registration Statement prepared pursuant hereto shall register for resale at least the number of shares
of Common Stock equal to the Initial Required Registration Amount determined as of the date the Initial Registration Statement
is initially filed with the SEC, subject to adjustment as provided in Section 2(f). The Initial Registration Statement shall contain
(except if otherwise required pursuant to written comments received from the SEC upon a review of the Initial Registration Statement
or if otherwise directed by the Required Holders) the "Plan of Distribution" and "Selling Shareholders"
sections in substantially the form attached hereto as Exhibit B. The Company shall use its best efforts to have the Initial
Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Initial Effectiveness
Deadline. By 9:30 a.m. New York time on the Business Day following the Initial Effective Date, the Company shall file with the
SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Initial
Registration Statement.

 

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(b)          Additional
Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing
Deadline, file with the SEC an Additional Registration Statement on Form S-3 covering the resale of all of the Additional Registrable
Securities not previously registered on an Additional Registration Statement hereunder. To the extent the staff of the SEC does
not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement, the Company shall
file no later than the Additional Filing Deadline, Additional Registration Statements successively trying to register on each such
Additional Registration Statement the maximum number of remaining Additional Registrable Securities until the Additional Required
Registration Amount has been registered with the SEC. In the event that Form S-3 is unavailable for such a registration, the Company
shall use such other form as is available for such a registration on another appropriate form reasonably acceptable to the Required
Holders, subject to the provisions of Section 2(e). Each Additional Registration Statement prepared pursuant hereto shall register
for resale at least that number of shares of Common Stock equal to the Additional Required Registration Amount determined as of
the date such Additional Registration Statement is initially filed with the SEC. Each Additional Registration Statement shall contain
(except if otherwise required pursuant to written comments received from the SEC upon a review of such Additional Registration
Statement or if otherwise directed by the Required Holders) the "Plan of Distribution" and "Selling Shareholders"
sections in substantially the form attached hereto as Exhibit B. The Company shall use its best efforts to have each Additional
Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Additional Effectiveness
Deadline. By 9:30 a.m. New York time on the Business Day following the Additional Effective Date, the Company shall file with the
SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Additional
Registration Statement.

 

(c)          Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the
number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable
Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers
any of such Investor's Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number
of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock included in a
Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered by such
Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of Registrable Securities then
held by such Investors which are covered by such Registration Statement. In no event shall the Company include any securities other
than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.

 

(d)          Legal
Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 ("Legal Counsel"), which shall be Schulte Roth & Zabel LLP or
such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably cooperate with
each other in performing the Company's obligations under this Agreement.

 

(e)          Ineligibility
for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder,
the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form reasonably acceptable
to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

 

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(f)           Sufficient
Number of Shares Registered. Subject to Section 2(b), in the event the number of shares available under a Registration Statement
filed pursuant to Section 2(a) or Section 2(b) is insufficient to cover the Required Registration Amount of Registrable Securities
required to be covered by such Registration Statement or an Investor's allocated portion of the Registrable Securities pursuant
to Section 2(c), the Company shall amend the applicable Registration Statement (if permissible), or file a new Registration Statement
(on the short form available therefor, if applicable), or both, so as to cover at least the Required Registration Amount as of
the Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement, in each case, as
soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises (but taking into account
any position of the staff of the SEC with respect to the date on which the staff of the SEC will permit such amendment to the Registration
Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC). The Company shall use its best
efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing
thereof. For purposes of the foregoing provision, the number of shares available under a Registration Statement shall be deemed
"insufficient to cover all of the Registrable Securities" if at any time the number of shares of Common Stock available
for resale under the Registration Statement is less than the Required Registration Amount. The calculation set forth in the foregoing
sentence shall be made without regard to any limitations on the conversion, amortization and/or redemption of the Notes or exercise
of the Warrants and such calculation shall assume (i) that the Notes are then convertible in full into shares of Common Stock at
the then prevailing Conversion Rate (as defined in the Notes) (ii) the initial outstanding principal amount of the Notes remains
outstanding through the scheduled Maturity Date (as defined in the Notes) and no redemptions of the Notes occur prior to the scheduled
Maturity Date and (iii) the Warrants are then exercisable in full into shares of Common Stock at the then prevailing Exercise Price
(as defined in the Warrants).

 

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(g)          Effect
of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) the Initial Registration Statement
when declared effective fails to register the Initial Required Registration Amount of Initial Registrable Securities other than
as a result of a limitation on the maximum number of shares of Common Stock of the Company permitted to be registered by the staff
of the SEC pursuant to Rule 415 (a "Registration Failure"),
(ii) a Registration Statement covering all of the Registrable Securities required to be covered thereby and required to be filed
by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the applicable Filing Deadline (a "Filing
Failure") or (B) not declared effective by the SEC on or before the applicable Effectiveness
Deadline, (an "Effectiveness Failure") or
(iii) on any day after the applicable Effective Date, sales of all of the Registrable Securities required to be included on such
Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r)) pursuant to such
Registration Statement or otherwise (including, without limitation, because of the suspension of trading or any other limitation
imposed by an Eligible Market, a failure to keep such Registration Statement effective, a failure to disclose such information
as is necessary for sales to be made pursuant to such Registration Statement, a failure to register a sufficient number of shares
of Common Stock or a failure to maintain the listing of the Common Stock) (a "Maintenance Failure")
then, as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying
shares of Common Stock (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without
limitation, specific performance or the additional obligation of the Company to register any Cutback Shares), the Company shall
pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one percent (1.0%)
of the aggregate principal amount outstanding of the Notes as of the applicable date of determination, whether or not included
in such Registration Statement, on each of the following dates: (i) the day of a Registration Failure, (ii) the day of a Filing
Failure; (iii) the day of an Effectiveness Failure; (iv) the initial day of a Maintenance Failure; (v) on the thirtieth day after
the date of a Registration Failure and every thirtieth day thereafter (in each case pro rated for periods totaling less than thirty
days) until such Registration Failure is cured; (vi) on the thirtieth day after the date of a Filing Failure and every thirtieth
day thereafter (in each case pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (vii) on
the thirtieth day after the date of an Effectiveness Failure and every thirtieth day thereafter (in each case pro rated for periods
totaling less than thirty days) until such Effectiveness Failure is cured; and (viii) on the thirtieth day after the initial date
of a Maintenance Failure and every thirtieth day thereafter (in each case pro rated for periods totaling less than thirty days)
until such Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred
to herein as "Registration Delay Payments." Registration Delay Payments shall
be paid on the earlier of (I) the dates set forth above and (II) the third Business Day after the event or failure giving rise
to the Registration Delay Payments is cured. In the event the Company fails to make Registration Delay Payments in a timely manner,
such Registration Delay Payments shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial
months) until paid in full. Notwithstanding anything herein to the contrary, in no event shall the aggregate amount of Registration
Delay Payments exceed, in the aggregate, 3% of the aggregate principal amount of the Notes outstanding for any thirty (30) day
period as determined on the last day of such thirty (30) day period. Notwithstanding anything herein to the contrary, the Company
shall not be obligated to pay any Registration Delay Payments with respect to any Registration Failure, Filing Failure, Effectiveness
Failure or Maintenance Failure to an Investor resulting solely from a failure of such Investor to perform its obligations under
this Agreement, including, without limitation, the failure to provide, after timely written request by the Company, information
necessary for inclusion in a Registration Statement to the Company pursuant to the terms of this Agreement. For the avoidance of
doubt, in no event shall a Registration Failure, Filing Failure, Effectiveness Failure or Maintenance Failure be deemed to arise
as a result of, but solely to the extent of, a limitation on the maximum number of shares of Common Stock of the Company permitted
to be registered by the staff of the SEC pursuant to Rule 415.

 

3.           Related
Obligations.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its
best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof
and, pursuant thereto, the Company shall have the following obligations:

 

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(a)          The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use
its best efforts to cause such Registration Statement relating to the Registrable Securities to become effective as soon as practicable
after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable Grace Periods (as defined in Section
3(r)), the Company shall keep each Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i)
the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement without restriction
or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto)
promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered
by such Registration Statement (the "Registration Period"). The Company shall ensure that each Registration Statement
(including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in
the case of prospectuses, in the light of the circumstances in which they were made) not misleading. The term "best efforts"
shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days after the later of the date
that (i) the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that
the staff has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Legal Counsel
pursuant to Section 3(c) (which approval is immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than two (2) Business Days after the submission of such request. The Company shall respond
in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than
fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in order for a Registration
Statement to be declared effective.

 

(b)          The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this
Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q, Form 8-K
or any analogous report under the Securities Exchange Act of 1934, as amended (the "1934 Act"), the Company shall
have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement
such Registration Statement.

 

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(c)          The
Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least five (5) Business Days
prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable
number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto
in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall
not be unreasonably withheld. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from
the SEC or the staff of the SEC to the Company or its representatives relating to any Registration Statement, (ii) promptly after
the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits and (iii)
upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all
amendments and supplements thereto. The Company shall reasonably cooperate with Legal Counsel in performing the Company's obligations
pursuant to this Section 3.

 

(d)          The
Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
(i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor,
all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the
prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as
such Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus,
as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities
owned by such Investor.

 

(e)          The
Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or "blue
sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions such amendments
(including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations
and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary
or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not
be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and
each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding
for such purpose.

 

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(f)           The
Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after
becoming aware of such event but in any event on the same Trading Day as such event, as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject
to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement or
omission, and deliver ten (10) copies of such supplement or amendment to Legal Counsel and each Investor (or such other number
of copies as Legal Counsel or such Investor may reasonably request). The Company shall also promptly notify Legal Counsel and each
Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration
Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to Legal
Counsel and each Investor by facsimile or email on the same day of such effectiveness and by overnight mail), (ii) of any request
by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of
the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate. By 9:30
a.m. New York City time on the date following the date any post-effective amendment has become effective, the Company shall file
with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to
such Registration Statement.

 

(g)          The
Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify
Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)          In
the event that the staff of the SEC requires any Investor seeking to sell securities under a Registration Statement filed pursuant
to this Agreement to be specifically identified as an "underwriter" in order to permit such Registration Statement to
become effective, and such Investor does not consent in writing to being so named as an underwriter in such Registration Statement,
then, in each such case, the Company shall reduce the total number of Registrable Securities to be registered on behalf of such
Investor, until such time as the staff of the SEC does not require such identification (which may result in none of the Registrable
Securities to be registered on behalf of such Investor being included in such Registration Statement) or until such Investor accepts
in writing such identification and the manner thereof. If any Investor is required under applicable securities laws to be described
in the Registration Statement as an underwriter or an Investor believes that it could reasonably be deemed to be an underwriter
of Registrable Securities, at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date
of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Investor may reasonably
request (i) a letter, dated such date, from the Company's independent certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to
the Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors.

 

    	 	11	 

     

    

 

(i)           If
any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an
Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make available
for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors
(collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents
and properties of the Company (collectively, the "Records"), as shall be reasonably deemed necessary by each Inspector,
and cause the Company's officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree in writing to hold in strict confidence and shall not make any disclosure (except
to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of
which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or
(c) the information in such Records has been made generally available to the public other than by disclosure in violation of this
Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement). Each Investor agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality
agreement between the Company and any Investor) shall be deemed to limit the Investors' ability to sell Registrable Securities
in a manner which is otherwise consistent with applicable laws and regulations.

 

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

 

(k)          The
Company shall use its best efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement to
be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if
any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure the inclusion
for quotation of all of the Registrable Securities on The NASDAQ Capital Market or (iii) if, despite the Company's best efforts,
the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the inclusion for quotation on another
Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing, to use its best efforts
to arrange for at least two market makers to register with the Financial Industry Regulatory Authority, Inc. ("FINRA")
as such with respect to such Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying
its obligation under this Section 3(k).

 

    	 	12	 

     

    

 

(l)           The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend in accordance with Section 2(g) of the
Securities Purchase Agreement) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable
such certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request and registered
in such names as the Investors may request.

 

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

 

(n)          The
Company shall use its best efforts to cause the Registrable Securities covered by a Registration Statement to be registered with
or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(o)          The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter
next following the applicable Effective Date of a Registration Statement.

 

(p)          The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.

 

(q)          Within
two (2) Business Days after a Registration Statement which covers Registrable Securities is declared effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

    	 	13	 

     

    

 

(r)           Notwithstanding
anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public
information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the Board of Directors
of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required
(a "Grace Period"); provided, that the Company shall promptly (i) notify the Investors in writing of the existence
of material, non-public information giving rise to a Grace Period (provided that in each notice the Company will not disclose the
content of such material, non-public information to the Investors) and the date on which the Grace Period will begin, and (ii)
notify the Investors in writing of the date on which the Grace Period ends; and, provided further, that no Grace Period shall exceed
five (5) consecutive days and during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate
of twenty (20) days and the first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior
Grace Period (each, an "Allowable Grace Period"). For purposes of determining the length of a Grace Period above,
the Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on
and include the later of the date the Investors receive the notice referred to in clause (ii) and the date referred to in such
notice. The provisions of Section 3(g) hereof shall not be applicable during the period of any Allowable Grace Period. Upon expiration
of the Grace Period, the Company shall again be bound by the first sentence of Section 3(f) with respect to the information giving
rise thereto unless such material, non-public information is no longer applicable. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance
with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which
an Investor has entered into a contract for sale, prior to the Investor's receipt of the notice of a Grace Period and for which
the Investor has not yet settled.

 

(s)          Neither
the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing
with the SEC, the Principal Market or any Eligible Market without such Investor's prior written consent and any Investor being
deemed an underwriter by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction
Document (as defined in the Securities Purchase Agreement); provided, however, that the foregoing shall not prohibit
the Company from including the disclosure found in the "Plan of Distribution" section attached hereto as Exhibit B
in the Registration Statement.

 

(t)           Neither
the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on
or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing
the rights granted to the Buyers in this Agreement or otherwise conflicts with the provisions hereof.

 

    	 	14	 

     

    

 

4.           Obligations
of the Investors.

 

(a)          At
least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify each
Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such
Investor's Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations
of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities of a particular
Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect and
maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with
such registration as the Company may reasonably request.

 

(b)          Each
Investor, by such Investor's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has
notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities from such
Registration Statement.

 

(c)          Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of Section 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of copies of the supplemented
or amended prospectus as contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement
or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence
of Section 3(f) and for which the Investor has not yet settled.

 

(d)          Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.           Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company shall also reimburse the
Investors for the fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to
Sections 2 and 3 of this Agreement which amount shall be limited to $15,000 for each such registration, filing or qualification.

 

    	 	15	 

     

    

 

6.           Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, partners, members, employees, agents, representatives of such Investor, and each Person, if any, who controls
any Investor within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Person"), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement
or expenses, joint or several (collectively, "Claims"), incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an Indemnified Party
is or may be a party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws
of any jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company
files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made,
not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including,
without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses (i)
through (iv) being, collectively, "Violations"). Subject to Section 6(c), the Company shall reimburse the Indemnified
Persons, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable expenses incurred
by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6(a): shall not apply to (i) a Claim by an Indemnified Person arising out
of or based upon a Violation (x) which occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto; (y) solely arising out of or based upon a violation or alleged violation by the Indemnified Person
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement, or (z) solely arising
out of or based upon a violation by the Indemnified Person of this Agreement; and (ii) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	 	16	 

     

    

 

(b)          In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
the directors, officers, employees, agents, representatives of the Company, and each Person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against any Claim or Indemnified Damages
to which any of them may become subject insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation,
in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Investor expressly for use in connection with such Registration Statement; and, subject
to Section 6(c), such Investor shall reimburse the Indemnified Party, promptly as such expenses are incurred and are due and payable,
for any legal fees or other reasonable expenses incurred by the Indemnified Party in connection with investigating or defending
any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to
contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however,
that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed
the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	 	17	 

     

    

 

(c)          Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, as applicable,
the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding
sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the
Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall reasonably cooperate with
the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at
all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable
for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such Claim or litigation and such settlement shall not include any admission
as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall
be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in
its ability to defend such action.

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)          The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.           Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved
in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller
of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement.

 

    	 	18	 

     

    

 

8.           Reports
Under the 1934 Act.

 

With a view to making available
to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that
may at any time permit the Investors to sell securities of the Company to the public without registration ("Rule 144"),
the Company agrees to:

 

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

 

(b)          file
with the SEC in a timely manner (which includes in reliance on, and after compliance with the deadlines required by, Rule 12b-25
of the 1934 Act) all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company
remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions
of Rule 144; and

 

(c)          furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.           Assignment
of Registration Rights.

 

The rights under this Agreement
shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor's Registrable Securities
if: (i) the Investor agrees in writing with the transferee to assign such rights, and a copy of such agreement is furnished to
the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such transferee, and (b) the securities with respect to
which such registration rights are being assigned; (iii) immediately following such transfer or assignment the further disposition
of such securities by the transferee is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the
time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee agrees in writing with
the Company to be bound by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with
the applicable requirements of the Securities Purchase Agreement.

 

10.         Amendment
of Registration Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance
with this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that
it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration (other than the
reimbursement of legal fees) also is offered to all of the parties to this Agreement.

 

    	 	19	 

     

    

 

11.         Miscellaneous.

 

(a)          A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) when sent, when sent by electronic mail; or (iv) one Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and email
addresses for such communications shall be:

 

If to the Company:

 

Real Goods Solar, Inc.

833 West South Boulder Road,

Louisville, CO 80027

Telephone:     (303) 222-8541

Facsimile:      1-877-835-4834

E-mail:           Dennis.Lacey@rgsenergy.com

Attention:       Dennis Lacey

 

With a copy (for informational
purposes only) to:

 

Brownstein Hyatt Farber Schreck, LLP

410 Seventeenth Street, Suite 2200

Denver, CO 80202

Telephone:     (303) 223-1100

Facsimile:      (303) 223-1111

E-mail:           KMacdonald@BHFS.com

Attention:       Kristin M.
Macdonald

 

If to the Transfer Agent:

 

Computershare Trust Company, N.A.

8742 Lucent Blvd. Suite 225

Highlands Ranch CO 80129

Telephone: (303) 262-0684

Facsimile: (303) 226-0609

Attention: Brenda Baril

 

    	 	20	 

     

    

 

If to Legal Counsel:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Telephone:    (212) 756-2000

Facsimile:     (212) 593-5955

Attention:      Eleazer Klein,
Esq.

Email:           eleazer.klein@srz.com

 

If to a Buyer, to its address, facsimile number
and/or email address set forth on the Schedule of Buyers attached hereto, with copies to such Buyer's representatives as set forth
on the Schedule of Buyers, or to such other address, facsimile number and/or email address to the attention of such other Person
as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine or email containing the time, date, recipient facsimile
number or e-mail address and an image of the first page of such transmission or (C) provided by a courier or overnight courier
service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	 	21	 

     

    

 

(e)          If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)           This
Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement,
the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

(g)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

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

 

(i)           This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(j)           Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    	 	22	 

     

    

 

(k)          All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the outstanding Notes then held by the Investors
have been converted for Registrable Securities without regard to any limitations on redemption, amortization and/or conversion
of the Notes and the outstanding Warrants then held by Investors have been exercised for Registrable Securities without regard
to any limitations on exercise of the Warrants.

 

(l)           The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

(m)         This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(n)          The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of
this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated herein.

 

* * * * * *

 

[Signature Page Follows]

 

    	 	23	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	COMPANY:
	 	 
	 	REAL GOODS SOLAR, INC.
	 	 	 
	 	By:	/s/ Dennis Lacey
	 	 	Name: Dennis Lacey
	 	 	Title:  Chief Executive Officer

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	BUYERS:
	 	 	 
	 	Hudson Bay Master Fund Ltd.
	 	 	 
	 	By: Hudson Bay Capital Management LP, as its Investment Manager
	 	 	 
	 	By:	/s/ George Antonopoulos
	 	 	Name: George Antonopoulos
	 	 	Title: Authorized Signatory

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

				BUYERS:
				
	 	 	 	 
				Empery Asset Master, Ltd.
	 	 	 	 	 
	 	 	 	By: Empery Asset Management, LP, its authorized agent
	 	 	 	 	 
					
					
				By:	
        /s/ Brett Director

					Name:  Brett Director
					Title: General Counsel
					

 

     

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

				BUYERS:
	 	 	 	 
				
				Empery Tax Efficient, LP
	 	 	 	 
	 	 	 	By: Empery Asset Management, LP, its authorized agent
	 	 	 	 
					
					
				By:	
        /s/ Brett Director

					Name:  Brett Director
					Title: General Counsel
					

 

     

     

    

  

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

				BUYERS:
	 	 	 	 
				
				Empery Tax Efficient II, LP
	 	 	 	 
	 	 	 	By: Empery Asset Management, LP, its authorized agent
	 	 	 	 
					
					
				By:	
        /s/ Brett Director

					Name:  Brett Director
					Title: General Counsel
					

 

     

     

    

  

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

				BUYERS:
	 	 	 	 
				
				Alto Opportunity Master Fund, SPC
	 	 	 	 
					
					
				By:	
        /s/ Daniel H. Kochav

					Name: Daniel H. Kochav
					Title: Director
					

 

    	 	 	 

     

    

 

SCHEDULE OF BUYERS

 

	
         

        Buyer
	 	Buyer Address

    and Facsimile Number	 	Buyer's Representative's Address
    

    and Facsimile Number
		 		 	
	Hudson Bay Master Fund Ltd.	 	
        c/o Hudson Bay Capital Management LP

        777 Third Avenue, 30th Floor

        New York, New York 10017

        Attention: Yoav Roth

        George Antonopoulos

        Facsimile: 646-214-7946

        Telephone: 212-571-1244

        E-mail: investments@hudsonbaycapital.com

        operations@hudsonbaycapital.com

        

        
	 	
        Schulte Roth & Zabel LLP

        919 Third Avenue

        New York, NY 10022

        Attn: Eleazer Klein, Esq.

        Facsimile: (212) 593-5955

        Telephone: (212) 756-2000

        Email: eleazer.klein@srz.com

	 	 	 	 	 
	Empery Asset Master, Ltd. 	 	
        c/o Empery Asset Management, LP

        One Rockefeller Plaza, Suite 1205

        New York, New York

        10020

        Attention: Ryan M. Lane

        Facsimile: (212) 608-3307

        Telephone: (212) 608-3300

        Email: notices@emperyam.com
	 	
	 	 	 	 	 
	Empery Tax Efficient, LP	 	
        c/o Empery Asset Management, LP

        One Rockefeller Plaza, Suite 1205

        New York, New York

        10020

        Attention: Ryan M. Lane

        Facsimile: (212) 608-3307

        Telephone: (212) 608-3300

        Email: notices@emperyam.com
	 	
	 	 	 	 	 
	Empery Tax Efficient II, LP	 	
        c/o Empery Asset Management, LP

        One Rockefeller Plaza, Suite 1205

        New York, New York

        10020

        Attention: Ryan M. Lane

        Facsimile: (212) 608-3307

        Telephone: (212) 608-3300

        Email: notices@emperyam.com
	 	
	 	 	 	 	 
	Alto Opportunity Master Fund, SPC	 	
        c/o Tenor Capital Management

        1180 Avenue of Americas, Suite 1940

        New York, NY 10036 

        Attention:

        Waqas Khatri (wkhatri@tenorcapital.com, +1-212-918-5213)

        operations@tenorcapital.com (Ravi Patel, Vidhi Patel, Carine Tabet,
        212-918-5303)
	 	

   

    	 	 	 

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Computershare Trust Company, N.A.

8742 Lucent Blvd. Suite 225

Highlands Ranch CO 80129

Telephone: (303) 262-0684

Facsimile: (303) 226-0609

Attention: Brenda Baril

 

		Re:	Real Goods Solar, Inc.

 

Ladies and Gentlemen:

 

[We
are][I am] counsel to Real Goods Solar, Inc., a Colorado corporation (the "Company"), and have represented the
Company in connection with that certain Securities Purchase Agreement, dated as of April 1,
2016 (the "Securities Purchase Agreement"), entered into by and among the Company and the buyers named
therein (collectively, the "Holders") pursuant to which the Company issued to the Holders senior secured convertible
notes (the "Notes") pursuant to which shares of the Company's Class A common stock, par value $0.0001 per share
(the "Common Stock") are issuable thereunder and warrants exercisable for shares of Common Stock (the "Warrants").
Pursuant to the Securities Purchase Agreement, the Company also has entered into a Registration Rights Agreement with the Holders
(the "Registration Rights Agreement") pursuant to which the Company agreed, among other things, to register the
resale of the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of Common Stock issuable
upon conversion of the Notes and upon exercise of the Warrants under the Securities Act of 1933, as amended (the "1933
Act"). In connection with the Company's obligations under the Registration Rights Agreement, on ____________ ___, 2016,
the Company filed a Registration Statement on Form S-3 (File No. 333-_____________) (the "Registration Statement")
with the Securities and Exchange Commission (the "SEC") relating to the Registrable Securities which names each
of the Holders as a selling shareholder thereunder.

 

In connection with the foregoing,
[we][I] advise you that a member of the SEC's staff has advised [us][me] by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF
EFFECTIVENESS] and [we][I] have no knowledge that any stop order suspending its effectiveness has been issued or that any
proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities are available for resale
under the 1933 Act pursuant to the Registration Statement.

 

This
letter shall serve as our standing instruction to you that the shares of Common Stock are freely transferable by the Holders
pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free
issuance or reissuance of shares of Common Stock to the Holders as contemplated by the Company's Irrevocable Transfer Agent
Instructions dated April 1, 2016.

  

	 	Very truly yours,
	 	 
	 	[ISSUER'S COUNSEL]
	 	 
	 	By:_____________________

 

		CC:	[LIST NAMES OF HOLDERS]

 

    	 	A-1	 

     

    

 

EXHIBIT B

SELLING SHAREHOLDERS

 

The shares of Class A common
stock being offered by the selling shareholders are those issuable to the selling shareholders pursuant to the terms of the convertible
notes and upon exercise of the warrants. For additional information regarding the issuance of those convertible notes and warrants,
see "Private Placement of Convertible Notes and Warrants" above. We are registering the shares of Class A common stock
in order to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of the convertible
notes and the warrants issued pursuant to the Securities Purchase Agreement and [INSERT DESCRIPTION OF ANY OTHER MATERIAL RELATIONSHIP
BETWEEN THE COMPANY AND ANY SELLING SHAREHOLDER], the selling shareholders have not had any material relationship with us within
the past three years.

 

The table below lists the
selling shareholders and other information regarding the beneficial ownership of the shares of Class A common stock by each of
the selling shareholders. The second column lists the number of shares of Class A common stock beneficially owned by each selling
shareholder, based on its ownership of the convertible notes and warrants, as of ________, 2016, assuming conversion of all convertible
notes at the Conversion Price in effect as of the Trading Day immediately preceding the date the registration statement is initially
filed with the SEC and exercise of all warrants held by the selling shareholders on that date, after giving effect to the Beneficial
Ownership Blockers (as defined below).

 

The third column lists
the shares of Class A common stock being offered by this prospectus by the selling shareholders and does not take into account
any limitations on conversion, amortization, redemption or exercise of the notes and the warrants. The fourth column lists the
shares of Class A common stock held by each selling shareholder after completion of this offering and assumes that each selling
shareholder sells all of the shares covered by this prospectus and assumes full conversion of the Notes at the Conversion Price
in effect as of the Trading Day immediately preceding the date the registration statement is initially filed with the SEC and the
full exercise of the warrants held by each of the selling shareholders on that date, in each case, without regard to any limitations
on conversion, amortization, redemption or exercise. The fifth column lists the percentage ownership held by each selling shareholder
after completion of this offering to the extent such percentage exceed 1& of the total number of shares of Class A common stock
outstanding. The information presented regarding the selling shareholders is based, in part, on information the selling shareholders
provided to us in writing specifically for use herein.

 

In accordance with the
terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the resale of at least
200% of the sum of (i) the maximum number of shares of Class A common stock issued and issuable pursuant to the convertible notes
as of the Trading Day immediately preceding the date the registration statement is initially filed with the SEC, and (ii) the maximum
number of shares of Class A common stock issued and issuable upon exercise of the related warrants as of the Trading Day immediately
preceding the date the registration statement is initially filed with the SEC, in each case
without regard to any limitations on conversion, amortization, redemption or exercise. Because the conversion price
of the convertible notes may be adjusted, the number of shares that will actually be issued may be more or less than the number
of shares being offered by this prospectus.

 

    	 	Annex I-1	 

     

    

 

Under the terms of the
convertible notes and the warrants, a selling shareholder may not convert the convertible notes or exercise the warrants to the
extent such conversion or exercise would cause such selling shareholder, together with its affiliates, to beneficially own a number
of shares of Class A common stock which would exceed 9.99% of our then outstanding shares of Class A common stock following such
conversion or exercise, excluding for purposes of such determination shares of Class A common stock issuable upon conversion of
the convertible notes which have not been converted and upon exercise of the warrants which have not been exercised (the "Beneficial
Ownership Blockers"). The number of shares in the second column reflects this limitation. The selling shareholders may
sell all, some or none of their shares in this offering. See "Plan of Distribution."

 

[Each selling shareholder
who is a broker-dealer or affiliated with a broker-dealer have confirmed to us that they purchased the securities to be sold in
the ordinary course of business and had no agreements or understandings, directly or indirectly, with any person to distribute
the securities at the time of their purchase.]1

 

In addition to the assumptions
described above, beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment
power over securities. To our knowledge, unless otherwise indicated, all persons named in the table below have sole voting and
investment power with respect to their shares of Class A common stock. Percentage of beneficial ownership is based on [●]
shares of Class A common stock outstanding as of [●], 2016.

 

 

1
Insert to the extent necessary. 

 

    	 	Annex I-2	 

     

    

 

	Name of Selling Shareholder	 	Number of Shares of

Class A Common Stock

Owned Prior to

Offering	 	Maximum Number of

Shares of Class A

Common Stock to be

Sold Pursuant to this

Prospectus	 	Number of Shares of

Class A Common

Stock Owned After

Offering	 	Percentage of

Shares of Class A

Common Stock

Owned After

Offering (to the

extent greater than

1%)
	 	 	 	 	 	 	 	 	 
	Hudson Bay Master Fund Ltd. (1)	 	(2)	 	 	 	0	 	 
	 	 	 	 	 	 	 	 	 
	[Other Buyers] (3)	 	(4)	 	 	 	 	 	 

 

(1)         Hudson
Bay Capital Management, L.P., the investment manager of Hudson Bay Master Fund Ltd., has voting and investment power over these
securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital
Management, L.P. Each of Hudson Bay Master Fund Ltd. and Sander Gerber disclaims beneficial ownership over these securities.

 

(2)         Includes
[●] shares of Class A common stock issuable (i) under the Notes and/or (ii) upon exercise of the Warrants, which together
represent 9.99% of our outstanding shares of Class A common stock as of [●], 2016. Does not include additional shares of
Class A common stock issuable under the Notes and/or Warrants because the selling shareholder does not have the right to any shares
of Class A common stock with respect to the Notes or the Warrants if the selling shareholder, together with its affiliates, would
beneficially own in excess of 9.99% of the outstanding shares of our Class A common stock.

 

(3)

 

(4)

 

    	 	Annex I-3	 

     

    

 

PLAN OF DISTRIBUTION

 

We are registering the
shares of Class A common stock issuable pursuant to the terms of the convertible notes and upon exercise of the warrants to permit
the resale of these shares of Class A common stock by the holders of the convertible notes and warrants from time to time after
the date of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders of the shares of
Class A common stock. We will bear all fees and expenses incident to our obligation to register the shares of Class A common stock.

 

The selling shareholders
may sell all or a portion of the shares of Class A common stock held by them and offered hereby from time to time directly or through
one or more underwriters, broker-dealers or agents. If the shares of Class A common stock are sold through underwriters or broker-dealers,
the selling shareholders will be responsible for underwriting discounts or commissions or agent's commissions. The shares of Class
A common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions, pursuant to one or more of the following methods,

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing of options, whether such options are listed on an options exchange or otherwise;

 

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

 

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

 

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

 

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

 

		·	privately negotiated transactions;

 

		·	short sales;

 

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

 

    	 	Annex I-4	 

     

    

 

		·	a combination of any such methods of sale; and

 

		·	any other method permitted pursuant to applicable law.

 

The selling shareholders
may also sell shares of Class A common stock under Rule 144 promulgated under the Securities Act, if available, rather than under
this prospectus. In addition, the selling shareholders may transfer the shares of Class A common stock by other means not described
in this prospectus.

 

If the selling shareholders
effect such transactions by selling shares of Class A common stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling shareholders
or commissions from purchasers of the shares of Class A common stock for whom they may act as agent or to whom they may sell as
principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess
of those customary in the types of transactions involved). In connection with sales of the shares of Class A common stock or otherwise,
the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the
shares of Class A common stock in the course of hedging in positions they assume. The selling shareholders may also sell shares
of Class A common stock short and deliver shares of Class A common stock covered by this prospectus to close out short positions
and to return borrowed shares in connection with such short sales. We have advised each selling shareholder that it is the view
of the SEC that they may not use shares registered on the registration statement of which this prospectus is a part to cover short
sales of Class A common stock made prior to the date on which the registration statement of which this prospectus is a part shall
have been declared effective by the SEC. The selling shareholders may also loan or pledge shares of Class A common stock to broker-dealers
that in turn may sell such shares.

 

The selling shareholders
may pledge or grant a security interest in some or all of the convertible notes, warrants or shares of Class A common stock owned
by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell
the shares of Class A common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling
shareholders to include the pledgee, transferee or other successors in interest as selling shareholders under this prospectus.
The selling shareholders also may transfer and donate the shares of Class A common stock in other circumstances in which case the
transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling shareholders
and any broker-dealer participating in the distribution of the shares of Class A common stock may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of Class A common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount
of shares of Class A common stock being offered and the terms of the offering, including the name or names of any broker-dealers
or agents, any discounts, commissions and other terms constituting compensation from the selling shareholders and any discounts,
commissions or concessions allowed or reallowed or paid to broker-dealers.

 

    	 	Annex I-5	 

     

    

 

Under the securities laws
of some states, the shares of Class A common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of Class A common stock may not be sold unless such shares have been registered or qualified
for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling shareholder will sell any or all of the shares of Class A common stock registered pursuant to the registration
statement, of which this prospectus forms a part.

 

The selling shareholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of Class A common stock by the selling shareholders and
any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares
of Class A common stock to engage in market-making activities with respect to the shares of Class A common stock. All of the foregoing
may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities
with respect to the shares of Class A common stock.

 

We will pay all expenses
of the registration of the shares of Class A common stock pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or "blue sky" laws; provided, however, that a selling shareholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling shareholders against liabilities, including some liabilities under the Securities Act, in
accordance with the registration rights agreements, or the selling shareholders will be entitled to contribution. We may be indemnified
by the selling shareholders against civil liabilities, including liabilities under the Securities Act, that may arise from any
written information furnished to us by the selling shareholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to contribution.

 

Once sold under the registration
statement, of which this prospectus forms a part, the shares of Class A common stock will be freely tradable in the hands of persons
other than our affiliates.

 

    	 	Annex I-6Exhibit 10.3

 

		
        DEPOSIT ACCOUNT CONTROL AGREEMENT AND

        ACKNOWLEDGMENT OF SECURITY INTEREST

 

	Deposit Account Holder: Real Goods Solar, Inc._________	 	Secured Party:	 
	Address:	833 West South Boulder Road	 	Address:	 
	 	Louisville, CO 80027	 	 	 
	 	 	 	 	 

 

 

NOTICE TO
BANK OF HAWAII

 

	TO:	Bank of Hawaii	 	DATE	 
	 	130 Merchant Street, 17th Floor	 	 	 
	 	Honolulu, HI 96813	 	 	 

 

	RE:	Deposit Account Holder:	Real Goods Solar, Inc.	 

	 	Bank Institution:  	Bank of Hawaii 	 

 

Dear Madam or Sir:

 

This is to notify Bank of Hawaii (the “Bank”)
that, pursuant to a Senior Secured Convertible Note issued by Deposit Account Holder(s) identified above (individually and collectively,
the “Owner”), the secured party identified above (the “Secured Party”) has been granted a security interest
in the deposit accounts described as follows:

 

	(a)	x	The following deposit account(s), corresponding to the applicable account numbers, including all cash balances credited to the account(s) and all interest paid on the account(s) numbers (collectively, the “Account”) maintained by the Bank in the name of the Owner, as evidenced by the attached Account statement(s) issued by the Bank in the ordinary course of its business:

 

	Type of Deposit Account	Deposit Account Number	Bank Branch
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	(b)	 ̈	Transaction Exceptions (attach additional sheet, if necessary):  	N/A
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	.

 

The Bank is hereby notified of the Secured
Party’s security interest, and the provisions of the Control Agreement, including the provision that funds in the Account,
including any interest accrued thereon, is not to be paid to anyone other than to the Secured Party, unless specified above in
Section (b) and/or the Bank receives prior written instructions regarding payment from the Secured Party. This pledge will remain
in full force and effect until terminated pursuant to the terms and conditions of the Control Agreement below and on the following
page of this notice. By signing below, the Bank acknowledges receipt of this notice and the Bank’s agreement to the terms
and conditions of the Control Agreement. This notice is dated as of the date written above.

 

The Owner and the Secured Party each agrees to all of the additional
terms and conditions of the Control Agreement on the following page of this notice.

 

	Owner Authorization	 	Secured Party:
	REAL GOODS SOLAR, INC.	 	 	 
	 	 	 	By:	 
	 	 	 	 	 
	By 	 	 	By	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:

 

 

CONTROL
AGREEMENT AND ACKNOWLEDGMENT OF PLEDGE AND SECURITY INTEREST

 

By signing this Control Agreement and Acknowledgment
of Security Interest (this “Agreement”), the Bank acknowledges receipt of the above notice of the Secured Party’s
security interest in the Account, and will mark its records accordingly to indicate the pledge of, and the Secured Party’s
security interest in, the Account. By signing below, the Bank represents to the Secured Party that, in the ordinary course of the
Bank’s business, the Bank is a depository institution insured by the Federal Deposit Insurance Corporation, and regularly
maintains deposit accounts in the name of its customers. The Bank also agrees to all of the additional terms and conditions of
the Control Agreement on the following page of this notice.

 

SEE THE FOLLOWING PAGE FOR ADDITIONAL CONTROL
AGREEMENT TERMS AND CONDITIONS

 

RETURN TO:

 

	 	 	 	 	 
	 	BANK
    OF HAWAII	 	 	 	(Bank)
	 	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	 	(Authorized Signer)
	 	 	 	 	 	 

  

Distribution: Original: Bank; Duplicate: Secured
Party; Triplicate: Relationship Officer; Quadruplicate: Account Owner

 

     

     

    

 

ADDITIONAL CONTROL AGREEMENT TERMS AND CONDITIONS

 

1.          Control
by Secured Party. Notwithstanding any other Account agreement between the Owner and the Bank, the Bank agrees to comply
with the Secured Party’s instructions as to the Account, including but not limited to the withdrawal or disposition of funds
credited to the Account, all without the further consent of the Owner. The Bank shall rely upon the Secured Party’s instructions
even if the Secured Party’s instructions are contrary to the terms of the Account agreement or contrary to any instructions
or demands that the Owner may give to the Bank.

 

2.          Customer’s
Rights in Account. The Bank will not permit the withdrawal or other disposition of any funds in the Account by the Owner
without the Secured Party’s written consent. In no event shall the Bank permit the Owner to change the ownership of the Account
or close the Account without the Secured Party’s prior written consent. The Secured Party’s power under this Agreement
to provide the Bank with instructions pursuant to Section 1 above includes, without limitation, the power to submit stop payment
orders for any checks, electronic transfers and other items being presented to the Bank by any means for payment from the Account.
The Owner confirms that the Bank shall comply with the instructions from the Secured Party even if the result of following such
instructions from the Secured Party results in the Bank’s dishonoring of items presented for payment from the Account.

 

3.          [RESERVED].1

 

4.          Priority
of the Secured Party’s Security Interest; Rights Reserved by the Bank. The Bank subordinates in favor of the Secured
Party any security interest, lien, encumbrance, claim, or right of recoupment or setoff it may have, now and in the future, against
the Owner’s interest in and to the Account, except that the Bank may debit the Account, from time to time, for any of the
Bank’s usual and customary charges for services rendered in connection with the Account and for the reversal of provisional
credits to the Account.

 

5.          Statements;
Account Renewal. The Bank will send copies of all Account statements to the Owner and to the Secured Party at the addresses
set forth on the first page of this Agreement. The Owner hereby authorizes the Bank to provide any additional information relating
to the Account to the Secured Party upon the Secured Party’s request without the Owner’s further consent. If the Account
is a time deposit account, the Bank may act upon the renewal term instructions of the Owner, as long as, the Owner’s instructions
are for the renewal of the Account, renewal term is not longer than the original term, and the instructions do not contradict any
of Secured Party’s prior instructions or the terms of this Agreement.

 

6.          Adverse
Claims and Interests. The Bank represents to the Secured Party that the Bank has not received notice of any security interest,
lien, encumbrance or other claim to the Account from any other person and has not entered into, and agrees with the Secured Party
that it will not enter into, any agreement with any other person under which the Bank is obligated to comply with instructions
from such other person as to the disposition of funds from the Account or other dealings with the Account. The Bank will promptly
notify the Secured Party if any other person claims that it has a security interest or other property interest in the Account.

 

7.          Returned
Items; Costs. If the Account is a checking or other transaction account, the Owner and the Secured Party understand and
agree that the Bank will pay returned items by debiting the Account. The Owner agrees to pay the amount of any returned item immediately
upon demand by the Bank. The Owner will be responsible for the Bank’s customary charges and for the repayment of any checks,
drafts or other orders for the payment of funds deposited into the Account that are returned unpaid for any reason.

 

8.          Indemnity.
The Owner will indemnify the Bank, its officers, directors, employees, and agents against claims, liabilities, and expenses
arising out of this Agreement, except to the extent the claims, liabilities, or expenses are caused by the Bank’s gross negligence
or willful misconduct.

 

9.          Termination;
Survival. The Secured Party may terminate this Agreement by written notice to the Bank and the Owner. The Bank may terminate
this Agreement upon thirty (30) days’ prior written notice to the Secured Party and the Owner. The Owner may not terminate
this Agreement, except with the written consent of the Secured Party.

 

10.         Jury
Trial Waiver. The Bank, the Secured Party and the Owner hereby waive trial by jury in any action, proceeding, claim, or
counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement.

 

11.         Entire
Agreement; Account Agreement. This Agreement is the entire agreement among the parties regarding the subject matter hereof
and supersedes any prior agreements and contemporaneous oral agreements of the parties concerning its subject matter. In the event
of any conflict between this Agreement and any other agreement between the Bank and the Owner relating to the Account, the terms
of this Agreement will control.

 

12.         Amendment;
Severability; Notices. To the extent a provision of this Agreement is unenforceable, this Agreement will be construed as
if the unenforceable provision were omitted. No amendment of, or waiver of a right under, this Agreement will be binding unless
it is in writing and signed by the Owner, the Secured Party and the Bank. A notice or other communication to a party under this
Agreement will be in writing and will be sent to the party’s address set forth below or to such other address as the party
may notify the other parties and, except as otherwise expressly provided for herein, will be effective on receipt. To the extent
that the Bank is precluded from making demand or giving notice hereunder by reason of the commencement of a bankruptcy or similar
proceeding, then such demand or notice shall be deemed to have been made or given at the commencement of such proceeding.

 

13.         Relations
of Parties; Successors and Assigns. Nothing contained in this Agreement shall create any agency, fiduciary, joint venture
or partnership relationship between the Owner, the Secured Party and the Bank. The provisions of this Agreement shall be binding
upon and inure to the benefit of the Bank, the Secured Party and the Owner and their respective successors and assigns.

 

14.         Counterparts.
This Agreement may be executed in any number of counterparts, all of which will constitute one instrument.

 

15.         Governing
Law. The Bank represents and warrants to the Secured Party that the Account agreement between the Bank and the Owner relating
to the establishment and general operation of the Account is governed by the laws of Hawaii. The Bank will not, without the Secured
Party’s prior written consent, amend the Account agreement so that the Account is governed by the law of another jurisdiction.
This Agreement will be governed by the laws of the State of Hawaii.

 

 

1 The references to the Notice of Exclusive Control are
not applicable, since the Secured Party will have full dominion over the account at all times.

 

    2

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