Document:

Exhibit 10.1

 

TECHNOLOGY LICENSE AGREEMENT

 

This Agreement is made and entered into as of the Effective Date,
by and between:

 

Dow Global Technologies LLC, a limited liability company
existing under the laws of the State of Delaware, United States of America having its principal place of business at 2040 Dow Center,
Midland, Michigan 48674 (hereinafter called “Licensor”), and

 

Real Goods Solar Inc., d/b/a RGS Energy, a company organized
and existing under the laws of Colorado and having its principal place of business at 110 16th Street, Suite 300,
Denver, Colorado 80202 (hereinafter called “Licensee”)

 

Recitals:

 

WHEREAS, Licensor has been engaged in the research and development
of photovoltaic shingles and ancillary products and owns specialized knowledge, information, experience, patents and patent applications
relating to the manufacture and use of products;

 

WHEREAS, Licensee is desirous of manufacturing, using and selling
photovoltaic shingles and ancillary products and services products; and

 

WHEREAS, Licensor is willing to provide Licensee with the benefit
of such knowledge, information, experience, patents and patent applications, as well as registered trademarks, for the manufacture,
sale and use of such Products.

 

NOW, THEREFORE, in consideration of the terms and conditions set
forth herein, the Parties hereby agree as follows:

 

Article
1            Definitions

 

In this Agreement, each of the following terms shall have the following
meanings, unless otherwise required by context:

 

1.01       “Affiliate”
means (a) parent companies (if any) that own, directly or indirectly, a majority of that Party, and (b) any other company
that is majority-owned, directly or indirectly, by a Party or by its parent companies in item (a).

 

1.02       “Agreement”
means this agreement and all its appendices.

 

1.03       “Business
Plan” means the business plan set forth at Appendix E.

 

1.04       “Calendar
Quarter” means the three month period ending March 31, June 30, September 30, or December 31, as applicable.

 

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1.05       “Confidential
Information” means any and all confidential or proprietary information and materials of one Party that is disclosed to the
other Party, including commercial, financial, and technical information, know-how, existing and future technology, inventions,
manufacturing data, specifications, designs, concepts, techniques, methodologies, data, documents, results of experimentation and
testing, specifications, business plans, and trade secrets. Confidential Information will not include: (a) information that
becomes part of the public domain through no action or fault of the receiving Party; (b) information that the receiving Party
can show was in its possession before disclosure by the disclosing Party to the receiving Party and was not acquired, directly
or indirectly, from the disclosing Party; (c) information that has been independently developed by the receiving Party without
reference to the information disclosed to the receiving Party by the disclosing Party; and (d) information received from a
Third Party that, to the best of the receiving Party’s knowledge, is lawfully in possession of the same and has the right
to make such disclosure.

 

1.06       “Effective
Date” means September 29, 2017.

 

1.07       “Field”
means Products for use in the photovoltaic generation of solar energy.

 

1.08       “Improvement”
means (a) any new or modified product that performs the same function as a Product but (i) does so in a better or more
economical way (including by reason of better quality, ease of use, efficacy, safety or performance); (ii) has a longer service
life; (iii) has additional or broader functions or applicability; (iv) costs less to manufacture, package, distribute
or otherwise commercialize; (v) has a better appearance; or (vi) is more marketable for any reason, than the Licensed
Products; or (b) any enhancement or modification to the technology that is the subject of the Licensed Patents.

 

1.09       “Licensee
Improvement” means an Improvement conceived, made or reduced to practice solely by Licensee and/or its Affiliates.

 

1.10       “Licensor
Improvements” means an Improvement conceived, made or reduced to practice by Licensor and/or its Affiliates in the course
of providing services under the Technical Service Agreement.

 

1.11       “Major
Improvement” means a Licensee Improvement that is a significant redesign (which is either patent protected or maintained
as a trade secret) of Products that significantly enhances the salability of the Products, for example one that reduces total installed
cost of Products in an array on a building or structure by more than 10% based on the installed cost of initial Products commercialized
by Licensee, as determined by the Parties negotiating in good faith.

 

1.12       “Milestone
Payment” is defined in Article 4.01(b).

 

1.13       “Net
Sales Price” means amounts received by Licensee from customers under invoices for purchase of Products and ancillary services
(e.g. design of array, installation), less returns, allowances or credits, rebates, excise, sale, use or value-added taxes, costs
of packing, transportation and insurance, delivery charges, cash and trade discounts allowed, import duties and commissions to
agents. Revenues received for ancillary products (e.g. inverters) sold by Licensee at a commercially reasonable price relative
to comparable products in the market will not be included in the calculation of Net Sales Price. In addition amounts received for
services that are not connected to design or installation of arrays of products (e.g. power monitoring services) and that arise
subsequent to (i.e. more than three months after) to the initial sale, lease or power purchase agreement (e.g. contracts entered
more than six months after installation) are not included in Net Sales Price.

 

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1.14       “Party”
means either Licensor or Licensee and “Parties” shall mean Licensor and Licensee.

 

1.15       “Patents”
means those patents and published patent applications, which are owned or controlled by Licensor at the Effective Date, and as
set forth as “Patents Group A” in Appendix A-1 and “Patents Group G” in Appendix A-2 and each
such Group shall include also all the patents which may issue on the said applications; including any and all foreign counterparts,
divisions, extensions, continuations, continuations-in-part, reexaminations, and reissued patents of the above patents and patent
applications. Any patents that may be filed on Licensor Improvements are within the scope of Patents.

 

1.16       “Product(s)”
means photovoltaic devices and modules and components thereto including particularly, photovoltaic laminate structures, connecter
components, base plate components, system parts and the like whether as a kit or separately where the device, module, component,
their manufacture, or their use is covered by the claims of Patents or using Technical Information.

 

1.17       “Quarterly
Installed Capacity” means the designed power production capacity of Products (a) sold or distributed during a Calendar
Quarter, whether or not actual installation has occurred or (b) installed during the Calendar Quarter if a Running Royalty
of those Products was not accounted for under 1.18(a) during the Calendar Quarter or a previous Calendar Quarter. For example,
if Licensee sells Products in June to a builder who holds the Products for later installation in August, that will count toward
Quarterly Installed Capacity in the Calendar Quarter ending June 30 and will not count to Quarterly Installed Capacity in
the Calendar Quarter ending September 30. Clause 1.18(b) is intended to identify use of Products under alternative business
models, such as power purchase agreements, where there is not a clear sale or distribution of the Products.

 

1.18       “Related
Person” means:

 

(a)        A
Party’s corporate parent(s), as well as any other entity directly or indirectly controlled by a Party or one or more of
such parent(s), and

 

(b)        the
officers, directors, employees, agents, or other representatives and subcontractors (and subcontractors’ employees) of a
Party or of the persons named or described in item (a).

 

For the purposes of this definition,
“control” shall mean the possession, directly or indirectly of the power to direct or cause the direction of the management
and policies of an entity, whether through the ownership of voting securities or otherwise.

 

1.19       “Running
Royalty” is defined in Article 4.01(c).

 

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1.20       “Technical
Information” means the intellectual property, technology and know-how related to Products (including but not limited to intellectual
property such as data, plans, specifications, flow sheets, designs and drawings, software, copyrights, customer lists, reports,
operation manuals, economics, business projections and the like) that Licensor owns or has control of. The information described
in the Technology Package is included within the definition of “Technical Information”. Licensor Improvements are included
in Technical Information.

 

1.21       “Technology
Package” means the Technical Information relating to the topics listed in Technical Appendix A to the Technology Service
Agreement.

 

1.22       “Technical
Service Agreement” means the executed agreement between Licensor’s Affiliate and Licensee in the form of Appendix F.

 

1.23       “Territory”
means the entire globe.

 

1.24       “Third
Party” means any person or entity that is not a Party to this Agreement.

 

1.25       “Trademark”
means the trademarks listed in Schedule A of Appendix B.

 

1.26       “Trademark
License” means the trademark license agreement between Licensor’s Affiliate and Licensee in the form as set forth in
Appendix B.

 

1.27       “Upfront
Payment” is defined in Article 4.01(a).

 

1.28       “US
Government Restrictions” is defined in Article 2.03.

 

Article
2            Grant of License

 

2.01       Subject
to the terms and conditions set forth herein, Licensor hereby grants to Licensee a license to make, have made for the Licensee
for subsequent use or sale by the Licensee, offer for sale, sell, use, import and export the Products in the Territory and the
Field under the Patents and the Technical Information. Other than the have made rights recited above, Licensee has no right to
grant a sublicense to any Third Party of the license granted hereunder to make or have made Products, and no sublicensee shall
be permitted to grant any further licenses of the Patents and Technical Information. Nothing herein shall limit Licensee’s
right to grant rights to third parties to promote, offer for sale and sell Products on behalf of Licensee (e.g., as a sales representative)
or Products purchased from Licensee (e.g., as a distributor).

 

2.02       This
license is exclusive subject to the following terms:

 

(a)        In
regard to Patents Group G, this license is exclusive but subject to the license to the U.S. government and other U.S. government
rights associated with the Solar America Initiative or SunShot projects of the Department of Energy under which the Patents Group
G were developed.

 

(b)        The
U.S. government has rights to use, reproduce, distribute, or publish Technical Information that was developed by Licensor under
the Solar America Initiative or the SunShot projects of the U.S. Department of Energy.

 

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2.03       Licensee
acknowledges that some of the Patents in Patent Group G and accordingly the Products that practice those Patents may be subject
to U.S. commercialization obligations as set forth in Appendix C (“US Government Restrictions”). Licensee agrees
to manufacture products embodying the subject inventions of the Patents in Group G substantially in the United States as set forth
in the Business Plan.

 

2.04       If,
prior to five (5) years from the Effective Date or 50 megawatts of cumulative Quarterly Installed Capacity whichever occurs
first, due to an enforcement action for violation of the US Government Restrictions while Licensee manufactures the Products substantially
in accordance with the Business Plan, Licensee becomes subject to any out-of-pocket fine or payment and/or is prevented from manufacturing,
selling, distributing or using Products, Licensor shall pay to Licensee an amount equal to Licensee’s out-of-pocket expenditures
for such fines and payments, plus damages incurred by Licensee, with such total amount not to exceed seventy-five percent (75%)
of the sum of the Upfront Payment and Milestone Payment paid by Licensee to Licensor.

 

2.05       Licensor
shall provide assistance to Licensee in order to obtain UL certification for the Products, solely as provided in the Technical
Service Agreement. If UL certification for the Powerhouse 3.0 version of the Product is not obtained within two (2) years
after the Effective Date, and such failure is not due in any material part to Licensor’s failure to provide assistance as
provided in the Technical Service Agreement, this license may be converted to a non-exclusive license upon sixty (60) days
written notice from Licensor to Licensee.

 

2.06       If
Licensee has not installed cumulatively 50 megawatts of Quarterly Installed Capacity within five (5) years of the date on
which UL certification for the first generation Product to be made and sold by Licensee (anticipated to be PowerHouse 3.0 version
of the Product) is obtained, this license may be converted to a non-exclusive license upon sixty (60) days written notice
from Licensor to Licensee.

 

2.07       All
right, title and interest in Licensee Improvements, and all of Licensee’s patents and patent applications claiming Licensee
Improvements, shall remain the sole and exclusive property of Licensee.

 

Article 3            Transfer
of Technical Information, Trademark License, Patent Procurement Activities, Minimum Efforts

 

3.01       Licensor
shall disclose and transfer the Technical Information to Licensee through (i) delivery of the Technology Package within twenty
(20) days after receipt of the Upfront Payment of Article 4.01(a), and (ii) such additional assistance (in person
or by telephone or video conference, as the Parties agree) will be provided as set forth in the Technical Service Agreement.

 

3.02       Licensor’s
Affiliate and Licensee shall execute the Trademark License simultaneously with or promptly after execution of this agreement and
no later than upon receipt of the Upfront Payment of Article 4.01(a).

 

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3.03       Licensor’s
Affiliate and Licensee shall execute the Asset Transfer Agreement as set out in Appendix D simultaneously with or promptly after
execution of this agreement and no later than upon receipt of the Upfront Payment of Article 4.01(a).

 

3.04       Licensor’s
Affiliate and Licensee shall execute the Technical Service Agreement as set out in Appendix F simultaneously with or promptly after
execution of this agreement and no later than upon receipt of the Upfront Payment of Article 4.01(a).

 

3.05       Solely
during the time during which Licensee has an exclusive license hereunder, Licensee will have the primary responsibility to conduct
the prosecution of the Patents using counsel of its choice acceptable to Licensor, with such acceptance not to be unreasonably
withheld, delayed or conditioned.

 

(a)          Licensor
will be kept informed of progress and will be given an opportunity to comment upon prosecution decisions. Licensor will cooperate
with Licensee in the prosecution of the Patents, including executing and delivering to Licensee, at Licensee’s request,
all instruments and documents, including powers of attorney, needed to prosecute the Patents and providing any other assistance
reasonably requested by Licensee. Licensor will be given copies of written communications between patent offices and Licensee’s
outside counsel regarding the Patents.

 

(b)          Bills
and fees from the U.S. outside counsel and foreign agents will be paid directly by Licensee, with such amounts creditable in full
against future payments due to Licensor as set forth in Section 4.01(d). Licensor will continue to pay the annuities and
maintenance fees relating to the Patents directly.

 

(c)          No
Patent will be abandoned without mutual consent of the Licensor and Licensee and for Patents Group G, appropriate prior notice
to the U.S. Government. Licensor will remain responsible for such notices to the U.S. government.

 

If at any time the license granted herein ceases to be exclusive,
Licensor shall then have full rights to control patent procurement and prosecution at its own cost. Licensee shall cooperate in
transferring responsibility back to Licensor in a manner to avoid loss of rights as to patent properties but shall have no further
rights or obligations under this Section 3.05.

 

3.06       The
Business Plan is an initial indication as of the Effective Date of actions and objectives that Licensee will seek to fulfill. The
Parties recognize that the Business Plan will be subject to ongoing adjustments and changes in the course of Licensee’s activities,
for example due to changes in external conditions and new information learned or developed by Licensee. Material changes to the
Business Plan (including particularly changes to location of manufacture of products embodying subject inventions covered by Patents
Group G) must be approved by Licensor, which approval shall not be unreasonably withheld, delayed or conditioned. Licensee will
show diligence in qualifying, manufacturing, and marketing Products, however Licensee’s failure to meet all the goals (excluding
provisions of the Business Plan regarding the location of manufacturing components of the Products) of the Business Plan will not
constitute a material breach of this Agreement if diligence is shown.

 

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Article 4            Royalties
and Payments and Effect of Non-Payment

 

4.01       In
consideration of the License granted to Licensee hereunder, Licensee shall pay to Licensor as follows:

 

(a)          Upfront
Payment. One million US Dollars ($1,000,000.00) shall be due and owing by Licensee within ten (10) days after the Effective
Date and shall be paid as per Article 5.06.

 

(b)          Milestone
Payment. Within thirty (30) days after receipt of UL or IEC certification for the PowerHouse 3.0 version of the Products
(whichever is received first), two million US Dollars ($2,000,000) shall be due and owing by Licensee and shall be paid as per
Article 5.06.

 

(c)          Running
Royalty. Within thirty (30) days after the end of each Calendar Quarter beginning with the Calendar Quarter in which
UL or IEC certification (whichever is obtained first) is received, Licensee will pay a Running Royalty. The Running Royalty shall
be paid as per Article 5.06. The Running Royalty is calculated as follows:

 

(i)        where
Products are sold and no alternative value capture methods are employed by the Licensee (as described in subsection (ii) below),
the Running Royalty equals two and one-half percent (2.5%) of the Net Sales Price of each Licensed Product sold by Licensee during
the respective preceding Calendar Quarter.

 

(ii)       where
Licensee or its Affiliate maintains ownership of the Products and alternative value capture such as leasing or power purchase agreements
are used, the Running Royalty equals Quarterly Installed Capacity in watts x the dollar/watt price stated in Licensee’s contract
with the customer x 2.5%.

 

(d)          Offset.
The Milestone Payment and the Running Royalty may be offset by the actual and reasonable amount spent by Licensee in regard to
patent procurement pursuant to Article 3.05.

 

(e)          Adjustment
of Running Royalty Rate. For Products that include a Major Improvement, Licensee may notify Licensor of the Major Improvement
and where the Parties agree that there has been a Major Improvement the Parties will negotiate in good faith an adjustment to
the Running Royalty rate.

 

4.02       All
payments made hereunder shall not be refundable for any reason or event whatsoever, including, but not limited to, invalidation
of any Patent.

 

4.03       The
royalties and payments in this Article are the only monetary consideration due to Licensor under this Agreement.

 

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Article 5          Accounting,
Report, Inspection and Place of Payment

 

5.01       Reporting:

 

(a)          The
Parties will exchange information on progress toward UL and IEC certification for each Product regularly until the Milestone Payment
has been made, and no less frequently than within thirty (30) days of the end of each Calendar Quarter following the Upfront
Payment. If a Party has no new information to exchange, it shall notify the other party of such fact.

 

(b)          After
payment of the Milestone Payment, concurrently with payment of the Running Royalty due pursuant to Article 4.01(c), Licensee
shall report to Licensor all information necessary to calculate the Running Royalty due under this Agreement pursuant to Article 4.01(c).
The royalty report shall include at least the following information: the total amount of Products sold, installed or licensed;
the Quarterly Installed Capacity for Products leased or part of power purchase agreements; the Net Sales Price for Products sold;
and any adjustment to the Running Royalty rate that has been agreed to and applied pursuant to Article 4.01(e). The royalty
report(s) shall be sent and shall be deemed to be validly given and effectively served, by air mail or express courier, or transmitted
by facsimile with a confirming copy sent by overnight mail or courier service to:

 

Dow Global Technologies LLC

North America Financial & Statutory Accounting

3100 James Savage Rd.

Midland, MI 48674, USA

Attn: Royalty Accounting

Facsimile: +1-989-638-9704

 

5.02       If
any fees or royalties are subject to withholding tax in any country in the Territory, Licensee may withhold such tax and pay it
in the name of Licensor. Licensee shall indicate each country where such withholding occurred and the amount withheld in such country
on the royalty report that Licensee provides under Article 5.01. Licensee shall provide to Licensor tax receipts showing the
tax payment in the name of Licensor and any other documents or information reasonably necessary in order for Licensor to claim
foreign tax credit for the withholding payment.

 

5.03       Any
charges, fees, or royalties described hereunder and paid by Licensee are inclusive of all applicable income, sales, use, gross-receipts,
excise, personal property, real property, intangibles, or other similar taxes. Licensor shall be solely responsible for remitting
all the applicable taxes to the appropriate taxing authority in each jurisdiction. Each Party shall bear sole responsibility for
all taxes, assessments, and other real or personal property-related levies on its owned or leased real or personal property, for
franchise or similar taxes on its business, for employment taxes on its employees, and for intangible taxes on property it owns
or licenses.

 

5.04       The
Parties agree to reasonably cooperate with each other in good faith to accurately determine and reflect each Party’s tax
liability. Each Party shall provide and make available to the other any resale certificates and other exemption certificates or
information reasonably requested by either Party.

 

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5.05       Licensor
may, at its own expense and discretion, have an independent auditor who is subject to confidentiality obligations acceptable to
Licensee and who is acceptable to Licensee, with such acceptance not to be unreasonably withheld, delayed or conditioned, audit
the records of Licensee no more than once per year to ensure that Licensor is receiving all royalties and interest to which Licensor
is entitled under this Agreement. The auditor shall not disclose any Confidential Information of Licensee to Licensor except as
directly required to communicate whether all royalties and interest to which Licensor is entitled under this Agreement have been
paid, and the amount of any underpayment or overpayment. No part of the auditor’s compensation may be based on the amount
of any underpayment of the amounts payable by Licensee hereunder that is determined through the auditor’s activity. If the
audit determines that the royalty due was underpaid by five percent (5%) or more in a calendar year, Licensee shall pay for all
reasonable documented expenses payable by Licensor to the auditor to perform the audit.

 

5.06       Unless
otherwise specified in writing by Licensor, all payments, fees or royalties due hereunder shall be made in U.S. Dollars and shall
be made by wire transfer to Licensor’s account at:

 

	Bank Name	:	
	Account Name	:	
	ABA No.	:	
	Account No.	:	
	Ref.	:	

 

5.07       Any
late payments under this Agreement that are not disputed by Licensee in good faith shall accrue interest at a rate of five percent
(5%) over the nominal annual prime lending rate (as quoted at Citibank NY, New York on the day payment is due), compounded daily,
from the date payment is due until Licensee pays all principal and interest in full.

 

5.08       Licensee
shall retain records relevant to Milestone Payment and Running Royalties for at least three years from the date payment is due.

 

Article 6            Treatment
of Confidential Information

 

From the Effective Date until ten (10) years after the expiration
date or the termination date of this Agreement, each Party agrees not to disclose or use the other Party’s Confidential Information,
except in the performance of its obligations or the exercise or enforcement of its rights under this Agreement. Neither Party shall
disclose the other Party’s Confidential Information to any employee or consultant unless such employee or consultant is bound
to keep such Confidential Information confidential pursuant to the terms of a written agreement or code of professional conduct.
Each Party agrees to hold the other Party’s Confidential Information in confidence and exercise the same degree of care that
it exercises with its own Confidential Information, but in no event less than a reasonable degree of care. In the event of any
conflict between this Agreement and the Confidentiality Agreement between the Parties dated November 5, 2014, this Agreement
shall control.

 

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Article 7            Limitation
of Warranty and Indemnification by Licensee

 

7.01       Licensor
warrants that it is authorized to enter into this Agreement to provide Licensee with the rights granted hereunder and to perform
its obligations hereunder and represents that it owns or has the right to extend the license granted in Article 2. Licensee
warrants that it is authorized to enter into this Agreement, to provide Licensor with the rights granted hereunder and to perform
its obligations hereunder.

 

7.02       The
manufacture and sale or other disposition of the Products by Licensee as well as quality guarantees to customers, including responsibility
for product liability, acquisition of approval with respect to any standards, legal or otherwise, applicable to the Products manufactured
and sold by Licensee, and servicing and advertising of the Products manufactured and sold by Licensee pursuant to this Agreement
shall be entirely at Licensee’s own account and responsibility, and Licensor shall not be responsible to Licensee or to any
Third Party therefor.

 

7.03       Nothing
herein shall be construed as the making by Licensor of any warranty or representation that the Technical Information meets any
current or future standards or requirements of authorities, legal or otherwise, applicable to the Products in any countries in
which the Products are to be manufactured or sold.

 

7.04       Technology
licensed to Licensee hereunder is supplied to Licensee in good faith. Licensee shall have complete control and responsibility over
the implementation and use of any information made available under this Agreement, and Licensor and its Affiliates and Related
Persons shall not be responsible for defective implementation of the Technical Information by Licensee. It is understood that Licensor
does not otherwise warrant or guarantee that such Technical Information may be used with complete safety and without hazard to
employees and customers of Licensee or that Product are fit for any particular purpose or effective by any performance standard.
It is Licensee’s responsibility to determine for its own satisfaction whether it wishes to adopt Technical Information and
to produce, use, sell and distribute Products.

 

7.05       Licensor
represents and warrants to Licensee that:

 

(a)          The
Patents and the Technical Information as defined in Articles 1.15 and 1.20, respectively, include information for the
purpose of manufacturing Products. Should either Licensor or Licensee determine that Licensor owns other patents and/or technical
information required for the sale, installation, manufacture or use of the Products, the Parties will negotiate in good faith
to include those patents in the Patents and technical information the Technical Information licensed under this Agreement on terms
consistent with this Agreement.

 

(b)          Patents
are to Licensor’s knowledge valid and enforceable.

 

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(c)          Licensor
or its relevant Affiliate will undertake to provide in good faith all services and commitments as provided by the Technical Service
Agreement, which, together with Licensor’s commitments under Articles 2.05 (relating to regulatory certifications),
and 3.01 (relating to Technical Information), the Parties agree is the sole and controlling agreement for providing such
assistance to be rendered by Licensor to Licensee to make Products.

 

(d)          Licensor
has no actual knowledge of Patents or Technical Information being subject to any pending or threatened inquiries or overtures
by potential licensors, claims, cease-and-desist letters, or litigation.

 

7.06       Indemnification.

 

(a)          Licensee
shall defend and indemnify Licensor and Licensor’s Related Persons against any and all liability and/or loss (including
but not limited to attorneys’ fees and other litigation expenses) arising out of claims of third parties (“Claims”)
against Licensor and its Related Persons relating to Licensee’s manufacture, sale, lease or use of Products.

 

(b)          The
foregoing release and indemnity obligations shall apply irrespective of any actual or alleged negligence or strict liability or
breach of warranty or breach of any duty or other legal responsibility of Licensor or Licensor’s Related Persons, except
that the release and indemnity shall not apply to any loss or liability proximately caused by the willful misconduct of Licensor
or Licensor’s Related Persons. The indemnity shall apply (but not be limited) to all personal injuries, illnesses, and deaths,
and to all property losses and damages, not only of the parties to this Agreement, but also of each and every other person.

 

7.07       The
provisions of Section 7.06 shall be effective to, and only to, the maximum extent, scope and amount permitted by the applicable
law and shall be so construed, interpreted and enforced by any reviewing arbitrator or court. If such provisions are determined
to exceed the maximum extent, scope or amount of protection permitted by the applicable law, said provisions shall be construed,
interpreted and enforced so as to preserve the maximum protection that is permitted by the applicable law.

 

7.08       Neither
Licensor nor Licensee shall settle or compromise any claim or lawsuit without the prior written consent of the other if the settlement
or compromise places any obligation on the other Party.

 

7.09       Insurance:
Licensee shall procure, pay premiums for and maintain in full force and effect at least the following insurance coverage: Comprehensive
General Liability Insurance (including contractual liability, products liability/completed operations and professional liability)
with a bodily injury, death and property damage combined single limit of not less than $5,000,000 per occurrence. The Comprehensive
General Liability coverage required by this section can be a combination of primary and excess or umbrella liability insurance
policies. On or before providing Products to third parties, Licensee will furnish Licensor a certificate(s) from an insurance carrier
showing all insurance set forth above. The certificate(s) will include the following statement: “The insurance certified
hereunder is applicable to all contracts between Dow Global Technologies LLC (DGTL) and the Insured. This insurance may be canceled
or altered only after thirty (30) days’ written notice to DGTL.” The insurance, and the certificate(s), will (1) name
Dow Global Technologies LLC (including Affiliates and DGTL and its Affiliates officers, directors, employees, servants, agents,
successors, and assigns) as additional insureds with respect to Licensee’s performance under this Agreement, (2) provide
that such insurance is primary to any liability insurance carried by DGTL, and (3) provide that underwriters and insurance
companies of Licensee may not have any right of subrogation against DGTL (including its Affiliates and DGTL’s and its Affiliates’
officers, directors, employees, servants, agents, successors and assigns). Licensee shall be solely responsible for the payment
of any deductibles under the coverage required to be maintained hereunder.

 

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7.10       EXCEPT
AS PROVIDED IN THIS AGREEMENT, LICENSOR DOES NOT UNDERTAKE, AND LICENSEE HEREBY EXPRESSLY WAIVES, ANY REPRESENTATIONS OR WARRANTEES
WHATSOEVER FOR THE RIGHTS AND LICENSES GRANTED HEREUNDER EITHER EXPRESS OR IMPLIED, IN FACT OR IN LAW, INCLUDING, WITHOUT LIMITATION,
ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT OF ANY THIRD PARTY INTELLECTUAL
PROPERTY RIGHTS ASSOCIATED WITH THE USE OF THE PATENTS OR THE TECHNICAL INFORMATION.

 

7.11       Licensor
and its Affiliates are under no obligation to hold Licensee harmless against infringement of Third Party patents.

 

7.12       Licensor’s
entire, complete and cumulative liability under this Agreement, under warranties extended, and otherwise, regardless of the theory
giving rise to such liability shall not exceed all payments payable to Licensor under Article 4 of this Agreement.

 

7.13       Nothing
in this Agreement shall be construed as:

 

(i)        a
warranty or representation that anything made, used, sold, or otherwise disposed of under any license granted in this Agreement
is or will be free from infringement of patents of Third Parties;

 

(ii)       a
requirement that Licensor or Licensee shall file any patent application, secure any patent, or maintain any patent in force; or

 

(iii)        conferring
a right to use in advertising, publicity, or otherwise any trademark or tradename of Licensor or Affiliate of Licensor except as
specifically provided for in Appendix B, and except that Licensee may refer to Products being based upon technology developed by
Dow in connection with Licensee’s promotion, sale and maintenance of the Products.

 

Article 8            Term
and Termination

 

8.01       The
term of this Agreement shall commence upon the Effective Date and shall continue in full force and effect until the later of the
last to expire Patent or ten (10) years after the first commercial sale or use of Products bearing a Running Royalty. Upon
the expiration of this Agreement, Licensee shall have a fully paid paid-up license to continue to use the Technical Information
in the Territory and Field and both Parties shall be released from all the obligations under this Agreement, except in regard to
Article 2.03, Article 7 and Article 18 (Export Control).

 

    	 	-12-	 

     

    

 

8.02       If
Licensee materially breaches this Agreement and fails to cure such breach within sixty (60) days after receipt of written
notice describing such alleged breach in detail or fails to agree with Licensor on a plan to effect such a cure within a reasonable
time period, with such agreement not to be unreasonably withheld, conditioned or delayed, Licensor may terminate this Agreement
and revoke the license grant in Article 2 upon written notice to Licensee. Upon termination of the license grant in Article 2,
Licensee shall immediately return all Technical Information to Licensor and destroy (or cause to be destroyed) all other Confidential
Information of Licensor in the possession of Licensee or its Related Persons, except Licensee may keep a copy of this Agreement
in its legal archives for enforcement and compliance purposes. Thereafter, Licensee shall not use Technical Information for any
purpose except as licensed in writing under a separate contract.

 

8.03       While
not to be considered an exhaustive list of material breaches, the following items shall be considered material breaches: failure
to make payments due and failure to comply with the obligations of Articles 2.03 (US Government Restrictions) or Article 18
(Export Controls).

 

8.04       Licensee
may terminate this license upon ninety (90) days written notice to Licensor. Upon termination of the license grant in Article 2,
Licensee shall provide Licensor with a full copy of all files related to patent prosecution occurring pursuant to Article 3.05
and immediately return all Technical Information to Licensor and destroy (or cause to be destroyed) all other Confidential Information
of Licensor in the possession of Licensee or its Related Persons, except Licensee may keep a copy of this Agreement in its legal
archives for enforcement and compliance purposes. Thereafter, Licensee shall not use Technical Information for any purpose except
as licensed in writing under a separate contract.

 

8.05       Termination
or expiration of this Agreement shall not, in any way, affect, impair or destroy any right or remedy of the Parties which has accrued
prior to such termination.

 

Article 9            Force
Majeure

 

Neither Party shall be liable to the other Party for failure or
delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is
caused by riots, civil commotions, wars, hostilities between nations, governmental laws, orders or regulations, embargoes, actions
by the government or any agency thereof, acts of God, storms, fires, accidents, strikes, sabotages, explosions, or other similar
contingencies beyond the reasonable control of the respective Parties.

 

Article 10         Notice

 

All notices or other communications required or permitted to be
given hereunder will be in writing and delivered to the addresses of the Parties set forth below and will be deemed to have been
duly given, unless otherwise provided: (a) if delivered by hand, when delivered with written evidence of receipt; (b) if
delivered by internationally recognized overnight courier, one (1) business day after deposit with such courier; (c) if
delivered by facsimile (with electronic evidence of receipt), then on the business day such facsimile is transmitted or if not
transmitted on a business day, the first business after such facsimile was transmitted; or (d) if delivered by e-mail (with
electronic evidence of receipt), then on the business day of receipt.

 

    	 	-13-	 

     

    

 

	To:	Licensor

Dow Global Technologies LLC

2040 Dow Center

Midland, MI 48674, USA

Attention: Intellectual Property – Legal Department

FAX: +1-989-636-3237

With a copy to:

 

	To:	Licensee

RGS Energy

110 16th Street, Suite 300

Denver, Colorado 80202

Attention: Dennis Lacey

email: dennis.lacey@rgsenergy.com

FAX: 303-223-9206

 

Article 11          Assignment

 

Except as otherwise provided herein, this Agreement may not be assigned
by Licensee, by operation of law or otherwise, without the prior written consent of the Licensor, which consent shall not be unreasonably
withheld, conditioned or delayed. Any assignment in contravention of the foregoing shall be void and of no effect. Licensor may
assign this Agreement only to a transferee of the Patents and will provide written notice to Licensee of any such assignment.

 

Article 12          Jurisdiction
and Venue

 

Both Parties consent to jurisdiction and venue in the US District
Court for the Eastern District of Michigan (or, if the US District Court lacks subject matter jurisdiction, in the Michigan 42nd
Circuit Court) for the sole purpose of interpreting and enforcing this Agreement.

 

Article 13          Governing
Law

 

This Agreement and all questions arising out of or under this Agreement
shall be governed by and interpreted in accordance with the laws of the state of Michigan, regardless of the laws that might otherwise
govern under applicable principles of conflicts of law thereof.

 

Article 14          Waiver

 

Any failure of either Party to enforce, at any time or for any period
of time, any of the provision of this Agreement shall not be construed as a waiver of such provisions or of the right of such Party
thereafter to enforce each and every such provision.

 

    	 	-14-	 

     

    

 

Article 15          Entire
Agreement

 

This Agreement constitutes the entire and only agreement between
the Parties hereto with respect to the subject matter of this Agreement and supersedes any other commitments, agreements or understandings,
written or verbal, that the Parties hereto may have had. No modification, change and amendment of this Agreement shall be binding
upon the Parties hereto except by mutual express consent in writing of subsequent date signed by authorized officer or representative
of each of the Parties hereto.

 

Article 16          Headings

 

The headings of articles and paragraphs used in this Agreement are
inserted for convenience of reference only and shall not affect the interpretation of the respective articles and paragraphs of
this Agreement.

 

Article 17          Severability

 

If any of the provisions contained in this Agreement shall be held
to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect the other provisions of this
Agreement and this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein.

 

Article 18          Export
Controls

 

The Parties are aware of the Export Administration Regulations of
the United States Department of Commerce and each hereby provides its assurance that any Technical Information or data disclosed
hereunder, to the extent such Technical Information or data can be exported or re-exported hereunder, shall only be exported or
re-exported under a validated license or other authorization as may be required under United States law and regulations. This obligation
survives expiration or termination of this Agreement.

 

Article 19          Publicity

 

Licensee and Licensor will cooperate and agree upon an appropriate
press release to be released after receipt of the Upfront Payment by Licensor.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement
to be executed in two (2) copies by their respective duly authorized officer or representative as of the day first above written.

 

    	 	-15-	 

     

    

 

	Dow Global Technologies, LLC	 	Real Goods Solar Inc., d/b/a RGS Energy
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	Mark A. Whiteman	 	Name:	 
	 	 	 	 	 
	Title:	President	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

 

Attachments:

Appendix A – Patents

Appendix B – Trademark License Agreement

Appendix C – U.S. Commercialization Obligations

Appendix D – Form of Asset Transfer Agreement

Appendix E – Business Plan

Appendix F – Form of Technical Service Agreement

 

    	 	-16-	 

     

    

 

Appendix A

Appendix A-1 PATENTS – Group A

 

	CASE 

    REFERENCE	TITLE	APPLICATION

    NUMBER	PUBLICATION 

    NUMBER	GRANT 

    NUMBER	EXPIRATION 

    DATE
	71276-CN-PCT	INTERFACE
    SYSTEM AND METHOD FOR PHOTOVOLTAIC CLADDING TO STANDARD CLADDING	201280037686.0	104145421	 	07/27/2032
	71276-US-PCT	14/234211	2015-0083197	 	07/27/2032
	71275-CN-PCT	PHOTOVOLTAIC
    DEVICES WITH AN IMPROVED POSITIONING AND LOCKING FEATURES AND METHOD OF ASSEMBLY	201280037700.7	 	 	07/27/2032
	71275-EP-EPT	12751172.3	2737547	 	07/27/2032
	7
    1275-JP-PCT	2014-523077	2014-525000	 	07/27/2032
	7I275-US-PCT	14/234705	 	 	07/27/2032
	71274-US-PCT	PHOTOVOLTAIC
    DEVICES WITH AN IMPROVED THERMAL MANAGEMENT FEATURES	14/342413	 	 	09/19/2032
	71274-CN-PCT	2012800458903	CN103907202	201280045890.7	9/19/2032
	72587-US-PCT	AN
    APPARATUS AND METHOD FOR LOCATING A DISCONTINUITY IN A SOLAR ARRAY	14/398164	2015-0107642	 	04/12/2033
	72592-CN-PCT	HIGH
    UTILIZATION PHOTO-VOLTAIC DEVICE	201380028685.4	104335356	 	05/29/2033
	72588-CN-PCT	FLEXIBLE
    BUILDING INTEGRATED PV DEVICE	201280074505.1	104428991	 	07/05/2032
	72588-US-PCT	14/407112	2015-0222224	 	07/05/2032
	73998-CN-PCT	REINFORCEMENT
    PV LAMINATE	201380064135.8	104854713	 	11/25/2033
	73998-EP-EPT	13808329.0	2936564	 	11/25/2033
	73998-US-PCT	14/440428	2015-0287856	 	11/25/2033
	76776-WO-PCT	BASE
    PLATE FOR PHOTOVOLTAIC MODULE	PCT/US15/054636	WO/2016/060924	 	10/08/2035
	76776-CA-PCT	2964258	 	 	 
	76776-CN-PCT	 	106797195	 	 
	76776-EP-EPT	 	3207631	 	 
	76776US-PCT	 	2017-0248344	 	 
	76773-WO-PCT	CONNECTOR
    FOR JOINING PHOTOVOLTAIC COMPONENTS	PCT/US15/043385	WO/2016/076926	 	08/03/2035
	76773-CA-PCT	2966405	 	 	 
	76773-CN-PCT	 	107005199	 	 
	76773-EP-EPT	 	3219007	 	 
	76773-US-PCT	15/526483	 	 	 

 

    	 	-17-	 

     

    

 

	76772-WO-PCT[2]	INTEGRATED FRAME FOR PHOTOVOLTAIC MODULE	PCT/US15/56606	WO/2016/077041	 	10/21/2035
	76772-CA-PCT[2]	2966327	 	 	 
	76772-CN-PCT[2]	201580058800.1	 	 	 
	76772-EP-EPT[2]	 	3219006	 	 
	76772-US-PCT[2]	15/526480	 	 	 
	77730-WO-PCT	ASYMMETRICAL INTEGRATED FRAME FOR PHOTOVOLTAIC MODULE	PCT/US16/038344	 	 	06/20/2036
	77774-WO-PCT	IRREGULAR PHOTOVOLTAIC ROOFING SYSTEM	PCT/US16/040607	 	 	07/01/2036
	77776-WO-PCT	ALIGNMENT FEATURES FOR A PHOTOVOLTAIC ROOFING SYSTEM AND A METHOD OF FORMING A PHOTOVOLTAIC ROOFING SYSTEM	PCT/US16/040934	 	 	07/05/2036
	77992-WO-PCT	INSTALLATION INDICATORS FOR A PHOTOVOLTAIC ROOFING SYSTEM AND A METHOD OF FORMING A PHOTOVOLTAIC ROOFING SYSTEM	PCT/US16/041442	 	 	07/08/2036
	77775-WO-PCT	WATER TIGHT PHOTOVOLTAIC ROOFING SYSTEM	PCT/US16/040936	 	 	07/05/2036
	78292-US-PSP	PHOTOVOLTAIC ELEMENTS INCLUDING DRAINAGE ELEMENTS	 	 	 	 
	70983-US-NP	THROUGH ROOF CONNECTOR ASSEMBLY FOR A PHOTOVOLTAIC BUILDING SHEATHING ELEMENT	 	 	8695291	 

 

    	 	-18-	 

     

    

 

Appendix A-2 PATENTS – Group G

 

	CASE 

REFERENCE	TITLE	APPLICATION 

NUMBER	PUBLICATION 

NUMBER	GRANT 

NUMBER	EXPIRATION 

DATE	GOVERNMENT 

CONTRACT ID
	67666-US-PCT	PHOTOVOLTAIC DEVICE ASSEMBLY AND METHOD	12/989743	2012-0118349	9147786	08/10/2031	SAI
	67666-CN-PCT	200980116089.5	102017181	200980116089.5	05/01/2029
	67666-AU-PCT	2009244549	 	2009244549	05/01/2029
	67666-CA-PCT	2723395	 	2723395	05/01/2029
	67666-JP-PCT	2011-507681	2011-520268	5416204	05/01/2029
	67666-MX-PCT	MX/a/2010/012073	 	314326	05/01/2029
	67666-US-PCD	14/797857	2015-0318427	 	05/01/2029
	67666-EP-EPD	15187493.0	2999009	 	05/01/2029
	74454-WO-PCT	SUPPORT STRUCTURE FOR SOLAR MODULE	PCT/US14/033137	WO/2014/193542	 	04/07/2034
	74454-CA-PCT	2912798	 	 	04/07/2034
	74454-CN-PCT	201480028389.9	105706358	 	04/07/2034
	74454-EP-EPT	14720464.8	3005421	 	04/07/2034
	74454-J P-PCT	2016-516648	 	 	04/07/2034
	74454-US-PCT	14/786083	2016-0087575	 	04/07/2034
	74471-CN-PCT	SUPPORT STRUCTURE FOR SOLAR MODULE CONNECTOR SYSTEM FOR PHOTOVOLTAIC ARRAY	201480039908.1	105378941	 	06/04/2034	Sunshot
	74471-EP-E PT	14736522.5	3022774	 	06/04/2034
	7447I-JP-PCT	2016-527990	 	 	06/04/2034
	74471-US-PCT	14/898608	2016-0156307	 	06/04/2034

 

    	 	-19-	 

     

    

 

Appendix B

TRADEMARK LICENSE AGREEMENT

 

This Trademark License Agreement (“Agreement”)
is made as of the Effective Date by and between The Dow Chemical Company a company organized and duly registered under the
laws of the State of Delaware, United States of America, and having its principal place of business at 2030 Dow Center, Midland,
Michigan 48674, United States of America, (referred to as “LICENSOR”); and Real Goods Solar Inc., d/b/a RGS
Energy, a company organized and existing under the laws of Colorado and having its principal place of business at 110 16th
Street, Suite 300, Denver, Colorado 80202 (“LICENSEE”).

 

PRELIMINARY STATEMENTS

 

WHEREAS, LICENSOR is the owner of the rights
in certain trademarks and LICENSEE desires to obtain a license to use these trademarks in connection with the manufacture and sale
or distribution of photovoltaic technology from technology licensed from an affiliate of LICENSOR as described and governed by
the Technology License Agreement, as defined below;

 

NOW, THEREFORE, in consideration of the promises
and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties, the parties agree as follows:

 

AGREEMENT

 

1.           DEFINITIONS:
The following terms shall have the meanings as set forth below:

 

1.1          “Effective
Date” shall be as defined in Article 1.06 of the Technology License Agreement.

 

1.2          “Products”
shall be as defined in the Technology License Agreement.

 

1.3          “Technology
License Agreement” shall mean the Technology License Agreement entered between Dow Global Technologies LLC and LICENSEE
dated as of the Effective Date.

 

1.4          “Term”
shall have the meaning given in Section 9.

 

1.5          “Territory”
shall mean the countries listed in Schedule A.

 

1.6          “Trademark(s)”
shall mean the POWERHOUSE trademark as identified on Schedule A.

 

1.7          “Use
Guidelines” shall mean the use guidelines for the Trademark that are set forth on Schedule B, as may be amended
and updated by LICENSOR from time to time.

 

    	 	-20-	 

     

    

 

2.           LICENSE
GRANT:

 

2.1          Commencing
on the Effective Date and for the Term of this Agreement, LICENSOR hereby grants to LICENSEE a limited, exclusive, non-assignable,
non-transferable, terminable royalty-free personal license to use the Trademarks solely in connection with the manufacture, promotion,
use, sale of the Products in the Territory and with services ancillary thereto, including support and maintenance of the Products,
subject to all the terms and conditions contained herein. Such use shall be additionally subject to all the terms and conditions
of the Technology License Agreement and used in conformance with the Use Guidelines.

 

2.2          LICENSEE
agrees that it will only use the Trademark on Products which are produced and packaged by LICENSEE in strict compliance with the
standards and directions set forth in the Technology License Agreement.

 

3.           NON-TRANSFERABILITY:
Except as otherwise provided herein, the license granted in this Agreement is not assignable or transferable by LICENSEE without
the prior written consent of the LICENSOR. LICENSEE shall have the right to sublicense to its Affiliates as defined by the Technology
License and to assign this Agreement in connection with a permitted assignment of the Technology License Agreement without consent
from the LICENSOR. Each sublicensed Affiliate shall be bound by all the terms of this Agreement. Any attempt to transfer this Agreement
in violation of this section shall be void and have no effect. This Agreement and each and every covenant, term and condition herein
are binding upon and inure to the benefit of the parties and their respective successors and permitted assignees.

 

4.           OWNERSHIP:

 

4.1          LICENSEE
recognizes the great value of the goodwill associated with the Trademarks and acknowledges that the Trademarks and all rights therein
and goodwill pertaining thereto belong exclusively to LICENSOR. LICENSEE agrees that all use of the Trademarks by LICENSEE shall
inure to, and be for the benefit of LICENSOR, and shall be deemed to be use of the Trademarks by LICENSOR. LICENSEE also agrees
that all goodwill arising from LICENSEE’S use of the Trademarks shall inure to the benefit of LICENSOR.

 

4.2          LICENSEE
shall not alter the Trademarks in any manner, and shall faithfully reproduce the Trademarks as prescribed by LICENSOR, as set forth
in this Agreement and any usage guidelines issued by LICENSOR from time to time. LICENSEE acknowledges that any trademark usage
guidelines issued by LICENSOR may be modified from time to time by LICENSOR, and LICENSEE agrees to incorporate all such changes
as soon as possible after notification.

 

4.3          LICENSEE
shall not have the right to use any trademark of LICENSOR on any goods not approved by LICENSOR.

 

4.4          LICENSEE
agrees that nothing in this Agreement shall give LICENSEE any right, title or interest in the Trademarks, other than the right
to use the Trademarks in accordance with the license granted in this Agreement. LICENSEE also agrees that it will not challenge
the title or any rights of LICENSOR in and to the Trademarks or challenge the validity of this Agreement.

 

    	 	-21-	 

     

    

 

5.           PROTECTION
OF TRADEMARKS: In order to preserve all rights and goodwill in the Trademarks or any other trademarks of LICENSOR, it is
further agreed that:

 

5.1          LICENSEE
agrees to assist LICENSOR in the procurement of any registration for, or to protect any of LICENSOR’S rights to, the Trademarks.
During this Agreement and thereafter LICENSEE shall not have the right to obtain trademark, copyright, or design patent registrations
of the Trademarks or any trademark confusingly similar to Trademarks.

 

5.2          LICENSEE
shall, as soon as it becomes aware of any use by others of a trade name, trademark, or trade dress of goods, including any promotion
or advertising that could amount to infringement of LICENSOR’s rights in the Trademarks, or unfair competition with Trademarks,
immediately provide written notice of such use to LICENSOR. LICENSOR shall have the sole right to determine whether or not any
action shall be taken on account of any such infringements or imitations.

 

5.3          LICENSEE
shall not have the right to institute proceedings for infringement of any licensed Trademark, or to institute proceedings against
a competitor for unfair competition or improper use of the Trademarks, or to incur any costs or obligations on behalf of LICENSOR,
unless LICENSEE has prior written consent from LICENSOR.

 

5.4          If
LICENSEE becomes aware that a third party alleges that the Trademarks are invalid or that the use of the Trademarks infringes any
rights of another party or that the Trademarks are otherwise contested, LICENSEE shall immediately give LICENSOR full particulars
thereof in writing and shall make no comment or admission to any third party in respect thereof.

 

5.5          LICENSEE
shall give full cooperation to LICENSOR in any action, claim or proceeding brought or threatened against the Trademarks, including
listing LICENSEE as a named party if such is needed in the reasonable discretion of LICENSOR to enforce LICENSOR’S rights.

 

6.           USE
OF TRADEMARKS/MAINTENANCE OF QUALITY: LICENSEE acknowledges that the continued maintenance of the high quality standards
of the products associated with the Trademarks and the value of the Trademarks and their associated goodwill are essential elements
of the License granted herein. LICENSEE agrees that all Products shall be of high and merchantable quality. Therefore, the quality,
style and all other aspects of the Products shall at all times be subject to the control and approval of LICENSOR pursuant to the
procedures set forth in this Section 6.

 

6.1          Treatment:
LICENSEE shall comply with all instructions and guidelines for trademark use issued by LICENSOR from time to time. LICENSEE shall
use its best efforts to ensure the Trademarks are:

 

		(a)	Prominently and conspicuously displayed in all capital
letters distinguished and distinctive from surrounding text;

 

    	 	-22-	 

     

    

 

		(b)	Not modified in any manner without the prior written
consent of LICENSOR;

 

		(c)	Followed by a generic descriptive term;

 

		(d)	Follow the Trademark with a superscript “TM”
on all tags, labels and printed materials;

 

		(e)	Footnoted: “TM Trademark of The Dow Chemical Company,
used under license.”

 

6.2          Inspection:
The Trademarks shall at all times be used by LICENSEE only on or in connection with the Products. LICENSEE shall permit LICENSOR
and its agents to inspect LICENSEE’S facilities, methods, processes, containers, materials and premises where the Products
are made or warehoused with reasonable prior written notice, during normal business hours and without disruption to LICENSEE’S
business operations to ensure that the Products are in compliance with and conform to LICENSOR’S quality control specifications.

 

6.3          Samples:
To ensure LICENSEE’S use of the Trademarks complies with this Agreement, LICENSEE shall, upon request, supply to LICENSOR,
at LICENSEE’S expense, samples of all product labels, advertising, promotional and other materials bearing the Trademarks
before finalization of such items and shall use its best efforts to provide such materials to LICENSOR more than thirty (30) business
days prior to LICENSEE’S intended use of such items. Additionally, in the event LICENSEE materially changes the manner in
which it uses or displays the Trademarks, LICENSEE shall notify LICENSOR and if requested, furnish LICENSOR with representative
specimens of such materials prior to finalization. LICENSEE shall use its best efforts to provide such materials to LICENSOR at
least thirty (30) business days prior to LICENSEE’S intended use of such items. LICENSOR shall use reasonable commercial
efforts to expedite its review of and response regarding any materials submitted to LICENSOR under this Section 6. In the
event LICENSOR reasonably believes that any use of the Trademarks by LICENSEE does not comply with LICENSOR’s instructions,
guidelines or the spirit of this Agreement, LICENSOR may request specific changes and LICENSEE shall use its best efforts to implement
such changes as soon as possible.

 

6.4          Approval
Required: The Powerhouse 2.0 Product and Powerhouse 3.0 Product as foreseen by the Business Plan are deemed accepted by LICENSOR
as Products in connection with which LICENSEE may use the Trademarks. Products that are materially different from the Powerhouse
2.0 Product or Powerhouse 3.0 Product as foreseen by the Business Plan will be subject to approval by LICENSOR, and shall not be
manufactured, used, distributed or sold by LICENSEE bearing the Trademark without such approval. Any products in violation of this
Section 6 shall be corrected or destroyed at LICENSEE’S expense. LICENSOR shall have the right to inspect any corrected
Products before they are used or sold.

 

6.5          When
using the Trademarks under this Agreement, LICENSEE agrees to comply with all laws pertaining to the use of trademarks in the Territory.

 

    	 	-23-	 

     

    

 

7.           INDEMNITY:
LICENSEE assumes complete responsibility for the Products and shall comply with all applicable statutes and regulations relating
to the manufacture, packaging, labeling, registration, use, sale and distribution of the Products. LICENSEE shall indemnify, defend
and hold harmless LICENSOR, its Affiliates and their Related Persons from and against any and all claims, damages, liabilities,
losses and expenses (including reasonable attorneys’ fees) incurred or suffered by LICENSOR arising from or relating to (a) LICENSEE’S
manufacture, packaging, labeling, registration, sale or distribution of the Products, or (b) LICENSEE’S breach of this
Agreement, or the Technology License Agreement.

 

8.           WARRANTY:
LICENSOR warrants that to the best of its knowledge, it is the owner of the Trademarks. As of the Effective Date of this Agreement,
LICENSOR is not aware of any claim that use of any of the Trademarks on Products infringes any valid third party trademark, trade
dress, copyright, or other rights. If LICENSOR becomes aware of any such claim of infringement, then LICENSOR reserves the right
to delete by written notice to LICENSEE, any of the trademarks licensed under this agreement which are the subject of such claim,
and LICENSEE shall stop using such deleted trademark.

 

9.           LICENSOR
will not object if LICENSEE uses the Trademark on Products outside the Territory. Such use will be at LICENSEE’S own risk
and LICENSOR has no obligations or liabilities in association with such use.

 

10.         If
LICENSEE believes it would be beneficial to file and obtain registrations of the POWERHOUSE Trademark in such additional countries,
they shall notify LICENSOR. LICENSEE and LICENSOR shall discuss in good faith whether LICENSOR will file such additional registrations.

 

11.         TERM
AND TERMINATION: This Agreement shall become effective as of the Effective Date, and shall remain in effect for as long
as the Technology License Agreement remains in effect and LICENSEE is not in material breach of any of the terms of the Agreement;
unless this Agreement has been terminated earlier according to the provisions of this Section 11. LICENSOR reserves the right
to add or delete specific marks licensed under this Agreement without terminating the underlying Agreement. Additionally, this
Agreement may be terminated at any time upon written notice only for the following reasons:

 

11.1        Breach:
If LICENSEE defaults in the performance or observance of any material provision of this Agreement, and such material default remains
uncured for a period of sixty (60) days after receipt of written notice specifying such default.

 

11.2        Bankruptcy:
Either party, may upon written notice to the other party, immediately terminate this Agreement at any time upon or during the bankruptcy,
receivership, insolvency, liquidation or dissolution of the other party, or upon or after the appointment of a receiver or trustee
for the property or assets of the other party, or upon or after an assignment for the benefit of creditors.

 

12.         CONDUCT
UPON TERMINATION: Upon and after termination of this Agreement, all rights granted to LICENSEE under this Agreement shall
immediately revert to LICENSOR, who shall remain free to license others to use the Trademarks in connection with the manufacture,
sale and distribution of the Products without restriction. LICENSEE shall immediately discontinue the manufacture, use and sale
of all Products bearing the Trademarks. LICENSEE will also refrain from further use of the Trademarks or any further reference
to the Trademarks, direct or indirect, or anything deemed by LICENSOR to be similar to Trademarks in connection with the manufacture,
sale, promotion or distribution of LICENSEE’S products. Any inventory bearing the Trademarks may only be sold with LICENSOR’S
prior express written permission, and only for a period of three months after termination.

 

    	 	-24-	 

     

    

 

13.         LIMITED
LIABILITY: To the full extent of any disclaimer permitted under applicable law, LICENSOR shall not, whether as a result
of breach of contract, warranty, tort (including negligence), patent infringement, copyright infringement or otherwise, have any
liability to LICENSEE nor shall LICENSOR be required to indemnify LICENSEE for incidental or consequential damages, including but
not limited to, loss of profit or revenues, loss of business opportunity, loss of use of the products or any associated equipment,
cost of capital, cost of substitute products, facilities or services, or downtime costs.

 

NOTICES: All notices, consents, approvals, or other communications
required or permitted hereunder shall be sent in writing and either: (a) personally delivered by courier service to such party
or a responsible officer of such party; (b) sent by certified mail, postage prepaid; or (c) transmitted by facsimile,
charges prepaid, confirmation by prepaid certified mail or courier service. All such notices and communications shall be deemed
to have been received: (a) if by courier, on the date of delivery; (b) if by certified mail, ten (10) days after
deposit in the mail; and (c) if by facsimile, on the second business day after transmission and the appropriate answer back
is received. All communications shall be sent to the addresses set forth below:

 

FOR LICENSOR

Bradley Bidwell, Trademark Counsel

The Dow Chemical Company

2040 Dow Center

Midland, MI 48674, USA

bwbidwell@dow.com

Fax: 989.636.3237

 

FOR LICENSEE

RGS Energy

110 16th Street, Suite 300

Denver, Colorado 80202

Attention: Dennis Lacey

email: dennis.lacev@rgsenergv.com

FAX: 303-223-9206

 

Or to such other address or person as each party may, from time
to time, designate to the other party by written notice.

 

14.         RELATIONSHIP
OF THE PARTIES: The parties to this Agreement remain independent contractors with a licensor/licensee relationship. This
Agreement does not create any partnership, joint venture, or agency relationship between them and does not give rise to any fiduciary
obligation between the parties and does not create any obligation between them other than those defined herein. Neither party has
authority to bind the other party, and no employment relationship is created by this Agreement.

 

    	 	-25-	 

     

    

 

15.         HEADINGS:
The section headings contained in this Agreement are intended only for convenience reference and shall not affect the interpretation
of this Agreement.

 

16.         NO
WAIVER: The failure of either party to enforce, or the delay by either party in enforcing, any of its rights under this
Agreement shall not prejudice or affect its rights hereunder. No waiver by either party shall operate as a waiver of any subsequent
or continuing breach, and no waiver shall be effective unless made in writing.

 

17.         VALIDITY:
If any provision of this Agreement is held to be invalid or unenforceable, this Agreement shall be construed without such provision.

 

18.         CHOICE
OF LAW: The governing law shall be the State of Michigan.

 

19.         ENTIRE
AGREEMENT: This Agreement, consisting of Sections 1 through 21 with Schedules A and B, and the Technology License
Agreement (which is expressly incorporated by reference herein), constitutes the entire understanding between the parties concerning
the subject matter hereof and supersedes all prior discussions, agreements and representations, whether oral or written. This Agreement
may be amended, altered or modified only by an instrument in writing duly executed by the authorized representations of both parties.

 

20.         DISPUTE
RESOLUTION: Both parties will attempt in good faith to resolve any dispute arising out of this Agreement promptly by negotiation
between the parties in the ordinary course of business. Senior representatives of each party will be available to meet and attempt
to resolve such dispute if not resolved within sixty (60) days. Notwithstanding the above, either party may seek a preliminary
injunction or other relief prior to the sixty (60) days to avoid irreparable harm or expiration of applicable statute of limitations.
Any dispute shall be resolved as per Article 12 of Technology License Agreement.

 

21.         ROYALTY:
The Royalty requirements of the Technology License Agreement are incorporated by reference herein.

 

    	 	-26-	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
understood, agreed to and caused this Agreement to be executed in duplicate originals by their duly authorized representatives
as of the date written beneath their respective signatures.

 

	LICENSOR	 
	The Dow Chemical Company	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Date:	 	 
	 	 	 
	LICENSEE	 	 
	Real Goods Solar Inc., d/b/a RGS Energy	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Date:	 	 

 

    	 	-27-	 

     

    

 

SCHEDULE A – TRADEMARKS

 

	Trademark	App / Reg Number	Country
	POWERHOUSE	9884263	China
	POWERHOUSE	4154481	United States of America

 

SCHEDULE B – USE GUIDELINES TO
“POWERHOUSE” TRADEMARK LICENSE

 

		1.	DEFINITIONS:

 

		A.	“Trademark” shall refer to the trademark
“POWERHOUSE”.

 

		B.	“Generic Descriptor” shall refer
to the term “building integrated photovoltaic” or “solar shingles” for POWERHOUSE, or its equivalent as
appropriate.

 

		C.	“Notice” shall collectively refer
to the small “TM” superscripted to the right of the Trademark.

 

		2.	TRADEMARK USAGE IN TEXT, SUCH AS ADVERTISING MATERIALS,
LABELS, WEBSITE AND PROMOTIONAL MATERIAL:

 

		A.	THE TRADEMARK SHOULD BE USED DISTINCTIVELY:
The trademark “POWERHOUSE” should always appear distinctive, such as in all caps from the surrounding text. Example:

 

All caps:          POWERHOUSETM
solar shingles

 

		B.	GENERIC DESCRIPTOR: uses in the text should
be followed by the generic descriptor (“solar shingles” or its equivalent) in lower case in (1) the MOST PROMINENT
use of the mark, (2) the FIRST USE IN RUNNING TEXT OR IN EACH NEW SECTION; and (3) ONCE EVERY PAGE OR FIELD OF VISION.

 

		C.	TRADEMARK NOTICE “TM” SYMBOL: The
trademark notice (TM symbol) SHOULD APPEAR superscripted at the end of the trademark: (1) ON THE MOST PROMINENT
USE; SUCH AS THE MAIN USE ON A LABEL OR THE HEADLINE OF A DOCUMENT; and (2) THE FIRST USE OF THE MARK IN RUNNING TEXT AND
IN EACH NEW SECTION; and (3) ONCE EVERY PAGE OR FIELD OF VISION.

 

		D.	FOOTNOTE: The following footnote must be legible
and be placed in an appropriate location on print applications in which the Word Mark appears or is used. For clarity, for written
text pieces containing a single subject and less than five pages in length, the Footnote should appear on the bottom of the last
page of the text. Written text pieces that are greater than five pages in length should have the footnote on each page that has
a trademark reference. For written pieces with multiple subject materials, such as the Intranet or Internet, the footnote should
appear as a footer on each page of the document. For slide presentations, the footnote should appear once, either at the beginning
or at end of the slide presentation.

 

    	 	-28-	 

     

    

 

The TM should match the convention
used on the Trademark:

 

TM Trademark of The Dow
Chemical Company, used under license.

 

		E.	DO NOT ALTER THE MARK: Do not alter the trademark
in spelling or usage. It should always be an adjective that modifies the generic. Avoid using the trademark in a possessive form.

 

    	 	-29-	 

     

    

 

Appendix C

U.S. Commercialization Obligations

 

SAI – CONTRACT #598 (880607BK)

 

(i) Preference for United States industry.

 

Notwithstanding any other provision of this clause, the Contractor
agrees that neither it nor any assignee will grant to any person the exclusive right to use or sell any subject invention in the
United States unless such person agrees that any products embodying the subject invention will be manufactured substantially in
the United States. However, in individual cases, the requirement for such an agreement may be waived by DOE upon a showing by the
Contractor or its assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential
licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture
is not commercially feasible.

 

(t) U.S. Competitiveness

 

The Contractor agrees that any products embodying any waived invention
or produced through the use of any waived invention will be manufactured substantially in the United States unless the Contractor
can show to the satisfaction of the DOE that it is not commercially feasible to do so. In the event the DOE agrees to foreign manufacture,
there will be a requirement that the Government’s support of the technology be recognized in some appropriate manner, e.g.,
recoupment of the Government’s investment, etc. The Contractor agrees that it will not license, assign or otherwise transfer
any waived invention to any entity unless that entity agrees to these same requirements. Should the Contractor or other such entity
receiving rights in the invention undergo a change in ownership amounting to a controlling interest, then the waiver, assignment,
license, or other transfer of rights in the waived invention is suspended until approved in writing by the DOE.

 

SUNSHOT – CONTRACT #606 (880607BT)

 

(i) Preference for United States industry.

 

Notwithstanding any other provision of this clause, the Contractor
agrees that neither it nor any assignee will grant to any person the exclusive right to use or sell any subject invention in the
United States unless such person agrees that any products embodying the subject invention will be manufactured substantially in
the United States. However, in individual cases, the requirement for such an agreement may be waived by DOE upon a showing by the
Contractor or its assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential
licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture
is not commercially feasible.

 

    	 	-30-	 

     

    

 

(t) U.S. Competitiveness

 

(1) DOE and the Contractor acknowledge that the project being funded,
at least in part, by this agreement is to develop and integrate high value components, including a photovoltaic cell, into a building
integrated photovoltaic (BIPV) module that will serve both as a roofing shingle and a photovoltaic cell. The Recipient agrees.
as a condition of DOE waiving certain rights to any subject invention under this agreement pursuant to this patent rights clause,
that the integration or assembly of the components for the BIPV module, including the integration of the photovoltaic cell into
the module, and any packaging activities shall be conducted in the United States for any BIPV module, that (i) embodies or
is made through the use of a subject invention and (ii) is intended for the United States market.

 

(2) The Contractor may ask for a waiver or modification to this
U.S. competitiveness provision by demonstrating to the satisfaction of DOE that compliance with the U.S. competitiveness provision
is no longer commercially feasible. In the event DOE agrees to a waiver or modification. There will be a requirement that the Government’s
support of the technology be recognized in some appropriate manner, e.g., recoupment of the Government’s investment, etc.
The Contractor further agrees to make the above condition binding on any assignee or licensee or any entity otherwise acquiring
rights to any waived subject invention, including subsequent assignees or licensees. Should the Contractor or other such entity
receiving rights in any waived subject invention undergo a change in ownership amounting to a controlling interest, then the waiver,
assignment, license or other transfer of rights in any waived subject invention is suspended until approved in writing by DOE.

 

    	 	-31-	 

     

    

 

Appendix D – Form of Asset Transfer
Agreement

 

See Attached.

 

    	 	-32-	 

     

    

 

Appendix E – Business Plan

 

    	 	-33-	 

     

    

 

 

RGS’ Proposed Business Plan
for Sales and Installations of Powerhouse 3.0:

 

To create customer awareness of Powerhouse 3.0 and to sell Powerhouse
3.0, RGS proposes the following:

 

		1)	Marketing and Branding

 

		a)	Using RGS’ established digital marketing strategy, RGS will create key-word and internet landing pages, websites or social
marketing channels to attract customers interested in re-roofing and solar. RGS anticipates that customer leads will be received,
consistent with its current programs for solar system marketing.

 

		b)	RGS acknowledges and greatly appreciates that the Dow brand name is highly recognizable and respected by US consumers and,
accordingly, the use of Dow’s name in marketing is necessary for optimizing marketability of Powerhouse 3.0. Dow agrees pursuant
to the Technology License Agreement and Trademark Agreement between the Parties, that RGS is permitted to identify Dow to be identified
in marketing materials as licensed technology from the Dow Chemical Company” or other similar designation as permitted in
the definitive agreement. This does not include the right to use the Dow Diamond mark.

 

		c)	RGS may employ marketing strategies such as:

 

		i)	Traditional print advertising in trade magazines and
potential customer facing periodicals.

 

		ii)	Utilizing TV/radio broadcasting such as cable networks
and home improvement shows, where potential customers can view or hear about Powerhouse 3.0, events, and tradeshows where potential
customers will have an opportunity to see the product and be educated on their use to improve their roof and see how they might
receive a return on a Powerhouse 3.0 investment.

 

		iii)	Public relations will be used to tell the Powerhouse
story and to provide education to the public about the product.

 

		iv)	Partner programs with a few key roofing installers to
achieve more referrals and create company advocates for a referral fee.

 

    	 	-34-	 

     

    

 

		v)	Digital marketing channels including social media and influencer marketing for word of mouth referrals and education of potential
customers.

 

		2)	Sales to Residential Homeowners

 

		a)	Using RGS’ established call center, we will approach potential customers from the landing pages and seek to arrange a
follow up with an RGS sales consultant operating from RGS’ call center. We anticipate having to increase the size of this
department.

 

		b)	Develop and utilize a referral network of authorized roofing installers for leads.

 

		c)	RGS expects to implement specific training programs for sales consultants and the Authorized Roofing Network for the Powerhouse
3.0 product.

 

		3)	Sales to Homebuilders

 

		a)	RGS will retain dedicated personnel devoted to the homebuilder industry.

 

		b)	The DOW name and reputation will be an asset to assist RGS with its introduction into the homebuilder marketplace. Much of
the marketing and sales strategies used for the above residential homeowner sales will also be used for the homebuilder industry.

 

		4)	Supply Chain

 

		a)	RGS anticipates that it will not itself physically manufacture Powerhouse products and will instead engage third-party manufacturers
as follows:

 

		i)	Solar Laminate – For Powerhouse 1 and 2, Dow manufactured
the solar panels using CIGS (Copper Indium Gallium Selenide) technology for the solar cells. A primary difference with Powerhouse
3 is switching from CIGS to traditional silicon solar cells. We are talking to various companies based in China to produce this
component by procuring all necessary materials (diodes, cells, frames, etc.). The manufacturer would produce this complete component
and deliver it to the injection molder of the Base Assembly.

 

		ii)	Base Assembly and Integrated Flashing System –
Dow developed molds for these components for the Powerhouse 2.0 products. These molds will be acquired by RGS as part of the Asset
Transfer Agreement. RGS commits that the molding and assembly activities for the Base Assembly and other molded products will
occur in the United States and is working with a US-located injection molder to perform the molding process for Powerhouse 3.0,
as well as provide additional services such as assembly, warehousing and shipping of the products as “kits” to our
Authorized Roofer Network.

 

    	 	-35-	 

     

    

 

		iii)	Wire Harnesses and Connectors (including integrated components)
– For the Powerhouse 3.0, RGS will be procuring, from a vendor to be determined, the same wire harnesses and connectors
previously used by Dow in the second-generation Powerhouse Shingle. For the commercialization of Powerhouse 3.0, minor updates
to the design are possible, such as to the plating, in order to limit potential setbacks with UL certification.

 

		iv)	Balance of Systems (“BOS”) and Inverters
– RGS, being a longtime EPC installer of solar systems, will continue to procure and supply this equipment from our existing
supply channels to the Authorized Roofer Network as required for the Powerhouse product.

 

		v)	Shipping and Warehouse – Our preliminary strategy will be to warehouse the products related to the Powerhouse “kits”
with the injection molder of the Base Plate. Should cost or capacity become an issue, RGS may lease additional spaces to manage
the supply to the Authorized Roofer networks in strategic locations across the United States.

 

		b)	Once all manufacturers are in place, RGS with the support of Dow as provided for in the Technical Service Agreement, will submit
for UL certification and upon approval, will launch the product into full-scale production. RGS will hire additional dedicated
procurement personnel to manage the flow of materials between the manufacturers and the Authorized Roofer Network to ensure projects
are installed in a timely fashion.

 

		c)	If any designated manufacturers do not want to participate, then Dow and RGS will work together to establish an acceptable
replacement manufacture that meets similar guidelines of the program.

 

		5)	Installation for Residential Homeowners

 

		a)	Ideally, RGS would like to establish programs with regional roofing firms or a larger number of local roofing firms. RGS will
develop relationships with these firms and provide certification and on-going product training for this network.

 

		b)	RGS may provide additional support services as needed to this network to ensure its success. Example services could include
interconnection and incentive support, site tech training, engineering support, and customer backlog management.

 

		c)	Further, we plan to draw on our existing service department which is supporting the Powerhouse lease portfolio that is currently
in place. We anticipate increasing the size of certain operational departments during the course of this growth as well as potentially
creating a specific Powerhouse team.

 

    	 	-36-	 

     

    

 

		6)	Customer Financing

 

		a)	RGS believes that the future sales for Powerhouse 3.0 will be significant and to achieve meaningful sales growth, facilities
need to be arranged to facilitate customer financing. RGS proposes to:

 

		i)	Utilize current financing relationships with 3rd
party financing providers to offer:

 

		(1)	Loan options that incorporate various terms and corresponding
rates

 

		(2)	Lease options

 

		ii)	Endeavor to see that customers can get financing for
both the cost of the Powerhouse 3 shingles as well as the additional expense of the re-roof.

 

		(1)	We believe that this “one stop” financing
solution enabling customers to wrap up the entire project into one convenient payment will greatly enhance the value proposition
to customers, resulting in greater sales success.

 

    	 	-37-	 

     

    

 

Appendix F – Form of Technical
Service Agreement

 

    	 	-38-Exhibit 4.1

 

STOCK OPTION PLAN OF NEXTSOURCE MATERIALS INC.

(as of October 1, 2017)

 

	 	1.	Purpose.

 

The purpose of this Plan is to advance the interests of
NextSource Materials Inc., a Minnesota corporation (the “Company”), by providing an additional incentive to attract,
retain and motivate highly qualified and competent persons who are key to the Company, including key employees, consultants, independent
contractors, Officers and Directors, and upon whose efforts and judgment the success of the Company and its Subsidiaries is largely
dependent, by authorizing the grant of options to purchase Common Stock of the Company and other related benefits to persons who
are eligible to participate hereunder, thereby encouraging stock ownership in the Company by such persons, all upon and subject
to the terms and conditions of this Plan.

 

2. Definitions.

 

As used herein, the following terms shall have
the meanings indicated:

 

(a) “Board” shall mean the Board
of Directors of the Company.

 

(b) “Cause” shall mean any of the
following:

	 	(i)	a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to perform his or her duties as an employee or consultant of the Company;

 

	 	(ii)	a determination by the Company that there has been a willful breach by the Optionee of any of the material terms or provisions of any employment or consulting agreement between such Optionee and the Company;

 

	 	(iii)	any conduct by the Optionee that either results in his or her conviction of a felony under the laws of the United States of America or any state thereof, or of an equivalent crime under the laws of any other jurisdiction;

 

	 	(iv)	a determination by the Company that the Optionee has committed an act or acts involving fraud, embezzlement, misappropriation, theft, breach of fiduciary duty or material dishonesty against the Company, its properties or personnel;

 

	 	(v)	any act by the Optionee that the Company determines to be in willful or wanton disregard of the Company’s best interests, or which results, or is intended to result, directly or indirectly, in improper gain or personal enrichment of the Optionee at the expense of the Company;

 

	 	(vi)	a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to comply with any rules, regulations, policies or procedures of the Company, or that the Optionee has engaged in any act, behavior or conduct demonstrating a deliberate and material violation or disregard of standards of behavior that the Company has a right to expect of its employees; or

 

	 	(vii)	if the Optionee, while employed by the Company and for two years thereafter, violates a confidentiality and/or noncompeting agreement with the Company, or fails to safeguard, divulges, communicates, uses to the detriment of the Company or for the benefit of any person or persons, or misuses in any way, any Confidential Information, provided however, that, if the Optionee has entered into a written employment agreement with the Company which remains effective and which expressly provides for a termination of such Optionee’s employment for “cause,” the term “Cause” as used herein shall have the meaning as set forth in the Optionee’s employment agreement in lieu of the definition of “Cause” set forth in this Section 2(b).

 

	 	(c)	“Change of Control” shall mean the acquisition by any person or group (as that term is defined in the Exchange Act, and the rules promulgated pursuant to that act) in a single transaction or a series of transactions of thirty percent (30%) or more in voting power of the outstanding stock of the Company and a change of the composition of the Board of Directors so that, within two years after the acquisition took place, a majority of the members of the Board of Directors of the Company, or of any corporation with which the Company may be consolidated or merged, are persons who were not Directors or Officers of the Company or one of its Subsidiaries immediately prior to the acquisition, or to the first of a series of transactions which resulted in the acquisition of thirty percent (30%) or more in voting power of the outstanding stock of the Company.

 

	 	(d)	“Code” shall mean the Internal
Revenue Code of 1986, as amended.

 

	 	(e)	“Committee” shall mean the stock option committee appointed by the Board or, if not appointed, the Board.

 

	 	(f)	 “Common Stock” shall mean the Company’s
Common Stock, par value $0.001 per share.

 

	 	(g)	“Consultant” means any person or corporation engaged to provide ongoing management or consulting services for the Company or any employee of such person or corporation, other than a Director or an Employee.

 

	 	(h)	“Director” shall mean a member of the Board and Management Company Employees of the Company.

 

	 	(i)	“Employee” shall mean any person, including Officers, Directors, Consultants and independent contractors, employed by the Company or any parent or Subsidiary of the Company within the meaning of Section 3401(c) of the regulations promulgated thereunder.

 

	 	(j)	“Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended.

 

	 	(k)	“Fair Market Value” of a Share on any date of reference shall be the Closing Price of a share of Common Stock on the business day immediately preceding such date, unless the Committee in its sole discretion shall determine otherwise in a fair and uniform manner. For this purpose, the “Closing Price” of the Common Stock on any business day shall be (i) if the Common Stock is listed or admitted for trading on any United States national securities exchange, or if actual transactions are otherwise reported on a consolidated transaction reporting system, the last reported sale price of the Common Stock on such exchange or reporting system, as reported in any newspaper of general circulation, (ii) if the common stock is listed for trading on the TSX, the last reported sale price of the common stock on such exchange, as reported in any newspaper of general circulation, (iii) if the Common Stock is quoted on The Nasdaq Stock Market (“Nasdaq”), or any similar system of automated dissemination of quotations of securities prices in common use, the mean between the closing high bid and low asked quotations for such day of the Common Stock on such system, or (iv) if neither clause (i), (ii) nor (iii) is applicable, the mean between the high bid and low asked quotations for the Common Stock as reported by the National Quotation Bureau Incorporated if at least two securities dealers have inserted both bid and asked quotations for the Common Stock on at least five of the 10 preceding days.

 

     

     

    

 

If the information set forth in clauses (i) through (iii)
above is unavailable or inapplicable to the Company (e.g., if the Company’s Common Stock is not then publicly traded or quoted),
then the “Fair Market Value” of a Share shall be the fair market value (i.e., the price at which a willing seller would
sell a Share to a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of all relevant
facts) of a share of the Common Stock on the business day immediately preceding such date as the Committee in its sole and absolute
discretion shall determine in a fair and uniform manner.

 

	 	(l)	“Incentive Stock Option” shall mean an incentive stock option as defined in Section 422 of the Code.

 

	 	(m)	“Insider” means (i) a director or senior officer of the Company, (ii) a director or senior officer of a company that is an Insider or subsidiary of the Company, (iii) a person that beneficially owns or controls, directly, or indirectly, voting shares carrying more than 10% of the voting rights attached to all outstanding voting shares of the Company, or the Company itself if it holds any of its own securities.

 

	 	(n)	“Management Company Employee” means an individual employed by a person providing management services to the Company, which services are required for the ongoing successful operations of the business enterprise of the Company.

 

	 	(o)	“Non-Statutory Stock Option” or “Non-qualified Stock Option” shall mean an Option, which is not an Incentive Stock Option.

 

	 	(p)	“Officer” shall mean the Company’s chairman, president, principal financial officer, principal accounting officer (or, if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company. Officers of Subsidiaries shall be deemed Officers of the Company if they perform such policy-making functions for the Company. As used in this paragraph, the phrase “policy-making function” does not include policy-making functions that are not significant. Unless specified otherwise in a resolution by the Board, an “executive officer” pursuant to Item 401(b) of Regulation S-K (17 C.F.R. § 229.401(b)) shall be only such person designated as an “Officer” pursuant to the foregoing provisions of this paragraph.

 

	 	(q)	“Option” (when capitalized) shall mean any stock option granted under this Plan.

 

	 	(r)	“Optioned Shares” mean the Shares, which may be acquired on exercise of an Option.

 

	 	(s)	“Optionee” shall mean a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such person under this Plan by reason of the death of such person.

 

	 	(t)	“Plan” shall mean this Stock Option Plan of NextSource Materials Inc., which may be further amended or restated from time to time.

 

	 	(u)	“Share” or “Shares” shall mean a share or shares, as the case may be, of the Common Stock, as adjusted in accordance with Section 10 of this Plan.

 

	 	(v)	“Subsidiary” shall mean any corporation (other than the Company) in any unbroken chain of corporations beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

	 	(w)	“TSX” means the Toronto Stock Exchange or any successor thereto.

 

	 	(x)	“TSX Manual” means the Toronto Stock Exchange Company Manual.

 

	 	(y)	“U.S. Optionee” means an Optionee who is a citizen of the United States or a resident of the United States, in each case as defined in section 7701(a)(30) and section 7701(b)(1) of the Code.

 

	 	3.	Shares and Options.

 

Subject to adjustment in accordance with Section 10 hereof,
the Company may issue up to forty-six million, (46,000,000) Options to acquire Shares held in the Company’s treasury
or from authorized and unissued Shares through the exercise of Options issued pursuant to the provisions of this Plan. If any Option
granted under this Plan shall terminate, expire, or be canceled, forfeited or surrendered as to any Shares, the Shares relating
to such lapsed Option shall be available for issuance pursuant to new Options subsequently granted under this Plan. Upon the grant
of any Option hereunder, the authorized and unissued Shares to which such Option relates shall be reserved for issuance to permit
exercise under this Plan. Subject to the provisions of Section 15 hereof, an Option granted hereunder shall be either an Incentive
Stock Option or a Non-Statutory Stock Option as determined by the Committee at the time of grant of such Option and shall clearly
state whether it is an Incentive Stock Option or Non-Statutory Stock Option. No Incentive Stock Option shall be granted more than
10 years after the earlier of (i) the date on which this Plan is adopted by the Board or (ii) the date on which this Plan is approved
by shareholders of the Company.

 

	 	4.	Limitations.

 

Options otherwise qualifying as Incentive Stock Options
hereunder will not be treated as Incentive Stock Options to the extent that the aggregate Fair Market Value (determined at the
time the Option is granted) of the Shares, with respect to which Options meeting the requirements of Code Section 422(b) are exercisable
for the first time by any individual during any calendar year (under all stock option or similar plans of the Company and any Subsidiary),
exceeds U.S. $100,000.

 

     

     

    

 

5. Conditions for Grant of Options.

 

	 	(a)	Each Option shall be evidenced by an option agreement that may contain any term deemed necessary or desirable by the Committee, provided such terms are not inconsistent with this Plan or any applicable law. Optionees shall be those persons selected by the Committee from the class of all regular Employees of the Company or its Subsidiaries, including Employees, Directors and Officers who are regular employees of the Company, Directors who are not regular employees of the Company, as well as Consultants to the Company. Any person who files with the Committee, in a form satisfactory to the Committee, a written waiver of eligibility to receive any Option under this Plan shall not be eligible to receive any Option under this Plan for the duration of such waiver.

 

	 	(b)	For so long as the Shares are listed on the TSX, the Company covenants that all Employees, Consultants or Management Company Employees shall be bona fide Employees, Consultants or Management Company Employees as the case may be, of the Company or its Subsidiaries.

 

	 	(c)	In granting Options, the Committee shall take into consideration the contribution the prospective Optionee has made, or is expected to make, to the success of the Company or its Subsidiaries and such other factors as the Committee shall determine. The Committee shall also have the authority to consult with and receive recommendations from Officers and other personnel of the Company and its Subsidiaries with regard to these matters. The Committee may from time to time in granting Options under this Plan prescribe such terms and conditions concerning such Options as it deems appropriate, provided that such terms and conditions are not more favorable to an Optionee than those expressly permitted herein; provided further, however, that to the extent not cancelled pursuant to Section 9(b) hereof, upon a Change in Control, any Options that have not yet vested, may, in the sole discretion of the Committee, vest upon such Change in Control.

 

	 	(d)	The Options granted to Employees under this Plan shall be in addition to regular salaries, consulting fees, pension, life insurance or other benefits related to their employment with the Company or its Subsidiaries. Neither this Plan nor any Option granted under this Plan shall confer upon any person any right to employment or continuance of employment (or related salary and benefits) by the Company or its Subsidiaries.

 

	 	(e)	If and for so long as the Shares are listed on the TSX:

 

	 	(i)	the number of Options granted to Insiders within a 12 month period may not exceed 10% of the number of issued and outstanding Shares, unless the Company has obtained Disinterested Shareholder Approval (as such term is defined in the TSX Manual) for such an issuance;

 

	 	(ii)	the maximum aggregate number of Shares that may be reserved under the Plan for issuance to any one individual in any 12 month period shall not exceed 5% of the issued and outstanding Shares at the time of grant; unless the Company has obtained Disinterested Shareholder Approval (as such term is defined in the TSX Manual) for such an issuance;

 

	 	(iii)	the maximum aggregate number of Shares that may be reserved under the Plan or other share compensation arrangements of the Company for issuance to any one Consultant during any 12 month period shall not exceed 2% of the issued and outstanding Shares at the time of grant;

 

	 	(iv)	the maximum aggregate number of Shares that may be reserved under the Plan or other share compensation arrangement of the Company for issuance to persons who are employed in investor relations activities (as defined in the TSX Manual) during any 12 month period shall not exceed 2% of the issued and outstanding Shares at the time of grant; and

 

	 	(v)	the Board shall, through the establishment of the appropriate procedures, monitor the trading in the securities of the Company by all Optionees performing Investor Relations Activities.

 

	 	(f)	Subject to the policies of the TSX, an Option shall vest and may be exercised (in each case to the nearest full Share) during the period for which the option is granted in accordance with a vesting schedule as the Board may determine in its discretion.

 

	 	(g)	Subject to TSX approval, the exercise price per Optioned Share under an Option may be reduced at the discretion of the Board or Committee if:

 

	 	a.	at least six months has elapsed since the later of the date such Option was granted and the date the exercise price for such Option was last amended; and

 

	 	b.	disinterested shareholder approval of the shareholders of the Company is obtained for any reduction in the exercise price under an Option held by an Insider of the Company;

 

provided that if the exercise price is reduced to the then Discounted
Market Price (as such term is defined in the TSX Manual), the TSX four month hold period will apply from the date of the amendment
and further provided that no such conditions will apply in the case of an adjustment made under subsection 10(a) hereof. Notwithstanding
anything to the contrary herein, the exercise price of an outstanding Option held by a U.S. Optionee will not be reduced below
the Fair Market Value of a Share on the date of such modification of the Option.

 

6. Exercise Price.

 

The exercise price per Share of any Option shall be
any price determined by the Committee but in no event shall the exercise price per Share of any Option be less than the Fair Market
Value of the Shares underlying such Option on the date such Option is granted and, in the case of an Incentive Stock Option granted
to a 10% stockholder, as described in Section 15, the per Share exercise price will not be less than 110% of the Fair Market Value.
Re-granted Options, or Options, which are canceled and then re-granted covering such canceled Options, will, for purposes of this
Section 6, be deemed to have been granted on the date of the re-granting.

 

     

     

    

 

7. Deemed Exercise of Options.

 

	 	(a)	An Option shall be deemed exercised when (i) the Company has received written notice of such exercise in accordance with the terms of the Option, (ii) full payment of the aggregate option price of the Shares as to which the Option is exercised has been made, (iii) the Optionee has agreed to be bound by the terms, provisions and conditions of any applicable stockholders’ agreement, and (iv) arrangements that are satisfactory to the Committee in its sole discretion have been made for the Optionee’s payment to the Company of the amount that is necessary for the Company or the Subsidiary employing the Optionee to withhold in accordance with applicable Federal, Provincial or state tax withholding requirements. Unless further limited by the Committee in any Option, the exercise price of any Shares purchased pursuant to the exercise of such Option shall be paid in cash, by certified or official bank check or by money order.

 

	 	(b)	No Optionee shall be deemed to be a holder of any Shares subject to an Option unless and until a stock certificate or certificates for such Shares are issued to such person(s) under the terms of this Plan. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Section 10 hereof.

 

	 	8.	Exercise of Options.

 

Any Option shall become exercisable in such amounts, at
such intervals, upon such events or occurrences and upon such other terms and conditions as shall be provided in an individual
Option agreement evidencing such Option, except as otherwise provided in Section 5(c) or this Section 8.

 

	 	(a)	The expiration date(s) of an Option shall be determined by the Committee at the time of grant, but in no event shall an Option be exercisable after the expiration of 10 years from the date of grant of the Option.

 

	 	(b)	Unless otherwise expressly provided in any Option as approved by the Committee, notwithstanding the exercise schedule set forth in any Option, each outstanding Option, may, in the sole discretion of the Committee, become fully exercisable upon the date of the occurrence of any Change of Control, but, unless otherwise expressly provided in any Option, no earlier than six months after the date of grant, and if and only if Optionee is in the employ of the Company on such date.

 

	 	(c)	The Committee may in its sole discretion accelerate the date on which any Option may be exercised and may accelerate the vesting of any Shares subject to any Option or previously acquired by the exercise of any Option.

 

9. Termination of Option Period.

 

	 	(a)	Unless otherwise expressly provided in any Option Agreement, and subject to any applicable limitations contained in Section 15(c) of this Plan, the unexercised portion of any Option shall automatically and without notice immediately terminate and become forfeited, null and void at the time of the earliest to occur of the following:

 

	 	(i)	the expiration of a period not to exceed one year (such period to be determined by the Board in its sole discretion) after the date on which the Optionee’s employment is terminated for any reason other than by reason of (a) Cause, (b) the termination of the Optionee’s employment with the Company by such Optionee following less than 60 days’ prior written notice to the Company of such termination (an “Improper Termination”), (c) a mental or physical disability (within the meaning of Section 22(e) of the Code) as determined by a medical doctor satisfactory to the Committee, or (d) death;

 

	 	(ii)	immediately upon (a) the termination by the Company of the Optionee’s employment for Cause, or (b) an Improper Termination;

 

	 	(iii)	the later of (a) the expiration of a period not to exceed one year (such period to be determined by the Board in its sole discretion) after the date on which the Optionee’s employment is terminated by reason of a mental or physical disability (within the meaning of Code Section 22(e)) as determined by a medical doctor satisfactory to the Committee, or (b) one year after the date on which the Optionee shall die if such death shall occur during such period;

 

	 	(iv)	one year after the date of termination of the Optionee’s employment by reason of death of the employee ; or

 

	 	(v)	the expiration date of the Option established on the date of grant and set forth in the Option Agreement.

 

	 	(b)	The Committee in its sole discretion may, by giving written notice (“cancellation notice”), cancel effective upon the date of the consummation of any corporate transaction described in Subsection 10(d) hereof, any Option that remains unexercised on such date. Such cancellation notice shall be given a reasonable period of time prior to the proposed date of such cancellation and may be given either before or after approval of such corporate transaction.

 

	 	(c)	Upon termination of Optionee’s employment as described in this Section 9, or otherwise, any Option (or portion thereof) not previously vested or not yet exercisable pursuant to Section 8 of this Plan shall be immediately canceled.

 

10. Adjustment of Shares.

 

	 	(a)	If at any time while this Plan is in effect or unexercised Options are outstanding, there shall be any increase or decrease in the number of issued and outstanding Shares through the declaration of a stock dividend or through any recapitalization resulting in a stock split, combination or exchange of Shares (other than any such exchange or issuance of Shares through which Shares are issued to effect an acquisition of another business or entity or the Company’s purchase of Shares to exercise a “call” purchase option), then and in such event:

 

     

     

    

 

	 	(i)	appropriate adjustment shall be made in the maximum number of Shares available for grant under this Plan, so that the same percentage of the Company’s issued and outstanding Shares shall continue to be subject to being so optioned;

 

	 	(ii)	appropriate adjustment shall be made in the number of Shares and the exercise price per Share thereof then subject to any outstanding Option, so that the same percentage of the Company’s issued and outstanding Shares shall remain subject to purchase at the same aggregate exercise price; and

 

	 	(iii)	such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive.

 

	 	(b)	Subject to the prior consent of the TSX and the specific terms of any Option, the Committee may change the terms of Options outstanding under this Plan, with respect to the option price or the number of Shares subject to the Options, or both, when, in the Committee’s sole discretion, such adjustments become appropriate by reason of a corporate transaction described in Subsection 10(d) hereof, or otherwise, provided that any adjustment to an outstanding Option held by a U.S. Optionee will be made in a manner that complies with, and does not create adverse tax consequences under, section 409A of the Code.

 

	 	(c)	Except as otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible into or exchangeable for shares of its capital stock of any class, either in connection with a direct or underwritten sale, or upon the exercise of rights or warrants to subscribe therefor or purchase such Shares, or upon conversion of obligations of the Company into such Shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of or exercise price of Shares then subject to outstanding Options granted under this Plan.

 

	 	(d)	Without limiting the generality of the foregoing, the existence of outstanding Options granted under this Plan shall not affect in any manner the right or power of the Company to make, authorize or consummate:

 

	 	(i)	any or all adjustments, reclassifications, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business;

 

	 	(ii)	any merger or consolidation of the Company or to which the Company is a party;

 

	 	(iii)	any issuance by the Company of debt securities, or preferred or preference stock that would rank senior to or above the Shares subject to outstanding Options;

 

	 	(iv)	any purchase or issuance by the Company of Shares or other classes of common stock or common equity securities;

  

	 	(v)	the dissolution or liquidation of the Company;

 

	 	(vi)	any sale, transfer, encumbrance, pledge or assignment of all or any part of the assets or business of the Company; or

 

	 	(vii)	any other corporate act or proceeding, whether of a similar character or otherwise.

 

	 	(e)	The Optionee shall receive written notice within a reasonable time prior to the consummation of such action advising the Optionee of any of the foregoing. The Committee may, in the exercise of its sole discretion, in such instances declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise his or her Option.

 

11. Transferability.

 

No Option or stock appreciation right granted hereunder
shall be sold, pledged, assigned, hypothecated, disposed or otherwise transferred by the Optionee other than by will or the laws
of descent and distribution and no Option or stock appreciation right shall be exercisable during the Optionee’s lifetime
by any person other than the Optionee.

 

	 	12.	Issuance of Shares.

 

As a condition of any sale or issuance of Shares upon
exercise of any Option, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary
or advisable to assure compliance with any such law or regulation including, but not limited to, the following:

 

	 	(i)	a representation and warranty by the Optionee to the Company, at the time any Option is exercised, that he or she is acquiring the Shares to be issued to him for investment and not with a view to, or for sale in connection with, the distribution of any such Shares; and

 

	 	(ii)	an agreement and undertaking to comply with all of the terms, restrictions and provisions set forth in any then applicable stockholders’ agreement relating to the Shares, including, without limitation, any restrictions on transferability, any rights of first refusal and any option of the Company to “call” or purchase such Shares under then applicable agreements, and

 

	 	(iii)	any restrictive legend or legends, to be embossed or imprinted on Share certificates, that are, in the discretion of the Committee, necessary or appropriate to comply with the provisions of any securities law or other restriction applicable to the issuance of the Shares.

 

     

     

    

 

	 	(iv)	if and for so long as the Shares are listed on the TSX, the exercise price is reduced to Discounted Market Price, Options will be subject to a four month hold period commencing from the date of grant and any Shares issued pursuant to the exercise of an Option prior to the expiry of the hold period will bear the following TSX legend (or similar wording, with the same effect):

 

“Without prior written approval of the TSX and compliance
with all applicable securities legislation, the securities represented by this certificate may not be sold, transferred, hypothecated
or otherwise traded on or through the facilities of the TSX or otherwise in Canada or to or for the benefit of a Canadian resident
until [four months + 1 day from the date of grant.]”

 

	 	13.	Stock Appreciation Rights.

 

The Committee may grant stock appreciation rights to Employees
in tandem with Options that have been or are granted under the Plan. A stock appreciation right shall entitle the holder to receive,
with respect to each Share as to which the right is exercised, payment in an amount equal to the excess of the Share’s Fair
Market Value on the date the right is exercised over its Fair Market Value on the date the right was granted. Such payment will
be made in cash. The Committee may establish a maximum appreciation value payable for stock appreciation rights.

 

14. Administration of this Plan.

 

	 	(a)	This Plan shall be administered by the Committee, which shall consist of not less than two Directors. The Committee shall have all of the powers of the Board with respect to this Plan. Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board and any vacancy occurring in the membership of the Committee may be filled by appointment by the Board.

 

	 	(b)	Subject to the provisions of this Plan and the policies of the TSX, the Committee shall have the authority, in its sole discretion, to:

 

(i) grant Options;

 

(ii) determine the exercise price
per Share at which Options may be exercised;

 

(iii) determine the Optionees to whom, and time or times
at which, Options shall be granted;

 

(iv) determine the number of Shares
to be represented by each Option;

 

	 	(v)	determine the terms, conditions and provisions of each Option granted (which need not be identical) and, with the consent of the holder thereof, modify or amend each Option, provided that no modification of an outstanding Option held by a U.S. Optionee will be made if it would result in adverse tax consequences under Section 409A of the Code;

 

	 	(vi)	defer (with the consent of the Optionee) or accelerate the exercise date of any Option; and

 

	 	(vii)	make all other determinations deemed necessary or advisable for the administration of this Plan, including re-pricing, canceling and re-granting Options.

 

	 	(c)	The Committee, from time to time, may adopt rules and regulations for carrying out the purposes of this Plan. The Committee’s determinations and its interpretation and construction of any provision of this Plan shall be final, conclusive and binding upon all Optionees and any holders of any Options granted under this Plan.

 

	 	(d)	Any and all decisions or determinations of the Committee shall be made either:

 

	 	(i)	by a majority vote of the members of the Committee at a meeting of the Committee; or

 

	 	(ii)	without a meeting by the unanimous written approval of the members of the Committee.

 

	 	(e)	No member of the Committee, or any Officer or Director of the Company or its Subsidiaries, shall be personally liable for any act or omission made in good faith in connection with this Plan.

  

15. Incentive Stock Options for 10% Stockholders; Other
Limitations on Incentive Stock Options.

 

	 	(a)	Notwithstanding any other provisions of this Plan to the contrary, an Incentive Stock Option shall not be granted to any person owning directly or indirectly (through attribution under Section 424(d) of the Code) at the date of grant, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company (or of its Subsidiary) at the date of grant unless the exercise price of such Option is at least 110% of the Fair Market Value of the Shares subject to such Option on the date the Option is granted, and such Option by its terms is not exercisable after the expiration of 5 years from the date such Option is granted.

 

	 	(b)	An Incentive Stock Option may be granted only to a person who is an employee of the Company or of any parent or subsidiary of the Company (within the meaning of section 424 of the Code).

 

	 	(c)	Incentive Stock Options are subject to the limitations contained in Section 9(a) of this Plan and the applicable Option Agreement. In addition, in order to retain its status as an Incentive Stock Option, the following rules related to timing of exercise of the Incentive Stock Option following termination of employment apply, and failure to exercise within the applicable time period will result in loss of status as an Incentive Stock Option.

 

	 	(i)	If a U.S. Optionee who has been granted an Incentive Stock Option ceases to be an employee of the Company (or by a subsidiary of the Company within the meaning of Section 424 of the Code) for any reason, whether voluntary or involuntary, other than death, permanent disability or just cause, then in order for the Option to retain Incentive Stock Option status, the Incentive Stock Option must be exercised by the earlier of (a) the date that is one year after the date of cessation of employment or (b) the expiration of the term of such Incentive Stock Option. For the purposes of this Section, the employment of a U.S. Optionee who has been granted an Incentive Stock Option will not be considered interrupted or terminated upon (a) sick leave, military leave or any other leave of absence approved by the Committee that does not exceed ninety (90) days in the aggregate; provided, however, that if reemployment upon the expiration of any such leave is guaranteed by contract or applicable law, such ninety (90) day limitation will not apply, or (b) a transfer from one office of the Company (or of any subsidiary) to another office of the Company (or of any parent or subsidiary) or a transfer between the Company and any parent or subsidiary.

 

     

     

    

 

	 	(ii)	If a U.S. Optionee who has been granted Incentive Stock Options ceases to be employed by the Company (or by any parent or subsidiary of the Company within the meaning of Section 424 of the Code) because of a permanent disability, such U.S. Optionee may exercise such Incentive Stock Option (to the extent such Incentive Stock Option was exercisable on the date of permanent disability at any time prior to the earlier of (a) the expiration date of the Option established on the date of grant and set forth in the Option Agreement; or (b) the date that is later of (i) the expiration of a period not to exceed one year (such period to be determined by the Board in its sole discretion) after the date on which the U.S. Optionee’s employment is terminated by reason of a mental or physical disability (within the meaning of Code Section 22(e)) as determined by a medical doctor satisfactory to the Committee, or (ii) one year after the date on which the U.S. Optionee shall die if such death shall occur during such period.

 

	 	(d)	In the event that this Plan is not approved by the shareholders of the Company within twelve (12) months before or after the date on which this Plan is adopted by the Board, any Incentive Stock Option granted under this Plan will automatically be deemed to be a Non-Statutory Stock Option.

 

16. Interpretation.

 

	 	(a)	This Plan shall be administered and interpreted so that all Incentive Stock Options granted under this Plan will qualify as Incentive Stock Options under Section 422 of the Code. If any provision of this Plan should be held invalid for the granting of Incentive Stock Options or illegal for any reason, such determination shall not affect the remaining provisions hereof, and this Plan shall be construed and enforced as if such provision had never been included in this Plan.

 

	 	(b)	This Plan shall be governed by the laws of the Province of Ontario, Canada.

 

	 	(c)	Headings contained in this Plan are for convenience only and shall in no manner be construed as part of this Plan or affect the meaning or interpretation of any part of this Plan.

 

	 	(d)	Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.

 

	 	(e)	Time shall be of the essence with respect to all time periods specified for the giving of notices to the company hereunder, as well as all time periods for the expiration and termination of Options in accordance with Section 9 hereof (or as otherwise set forth in an option agreement).

 

17. Amendment and Discontinuation of this Plan.

 

Subject to the policies of the TSX, either the Board or
the Committee may from time to time amend this Plan or any Option without the consent or approval of the stockholders of the Company;
provided, however, that, except to the extent provided in Section 9, no amendment or suspension of this Plan or any Option issued
hereunder shall substantially impair any Option previously granted to any Optionee without the consent of such Optionee.

 

Notwithstanding any provision in a plan allowing amendments without security
holder approval, specific security holder approval is required for the following:

(a) a reduction in the exercise price or purchase price benefiting an insider
of the issuer;

(b) an extension of the term benefiting an insider of the issuer;

(c) any amendment to remove or to exceed the insider participation limit;

	 	(d)	an increase to the maximum number of securities issuable, either as a fixed number or a fixed percentage of the listed issuer's outstanding capital represented by such securities; and

(e) amendments to an amending provision within a security
based compensation arrangement.

 

18. Termination Date.

 

This Plan shall terminate ten years after the date of adoption
by the Board of Directors.

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