Document:

EX-10.8

 Exhibit 10.8 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

This Amended and Restated Loan and Security Agreement (this “Agreement”) is entered into as of December 31, 2013, by and between
COMERICA BANK (“Bank”) and NORTHERN POWER SYSTEMS, INC., a Delaware corporation (“Borrower”). 

RECITALS: Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the
terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 
 Borrower and Bank are parties to a Loan and
Security Agreement dated December 1, 2011, as amended (the “Existing Loan Agreement”) which provides terms and conditions for a secured revolving line of credit for advances in an aggregate amount from time to time outstanding
of up to Six Million Dollars ($6,000,000) guaranteed by the Export-Import Bank of the United States. 
 On or about December 31, 2013, Northern Power
Systems Utility Scale, Inc., a Delaware corporation, was merged into Borrower pursuant to a Certificate of Merger filed with the Secretary of State of the State of Delaware, with the surviving entity being the Borrower. 

Borrower has requested certain amendments to the Existing Loan Agreement. 

AGREEMENT: The parties agree that the Existing Loan Agreement is as follows: 

ARTICLE 1. DEFINITIONS AND CONSTRUCTION. 
 1.1
Definitions. As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A or as otherwise set forth herein. Any term used in the Code and not defined herein shall have the meaning given to the term
in the Code. 
 1.2 Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be construed in accordance with GAAP and
all calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules. 

ARTICLE 2. LOAN AND TERMS OF PAYMENT. 
 2.1 Credit
Extensions. 
 (a) Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of America, the
aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. 

2.2 Overadvances. Reserved. 
 2.3 Interest Rates,
Payments, and Calculations. The interest rate, payments and calculations are set forth in the Ex-Im Facility Documents. 
 2.4 Crediting
Payments. Reserved. 
 2.5 Fees. Borrower shall pay to Bank the following: 

(a) Facility Fee. Borrower shall pay the facility fee as set forth in the Ex-Im Loan Documents. 

  

					
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 (b) Unused Facility Fee. Reserved. 

(c) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date, and, after the Closing Date, all Bank
Expenses, as and when they become due. 
 2.6 Term. This Agreement shall become effective on the Closing Date and, subject to Section 13.8,
shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation
to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default. 

ARTICLE 3. CONDITIONS OF LOANS. 
 3.1 Conditions
Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following: 

(a) this Agreement; 
 (b) an
officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement and the Loan Documents, accompanied by certified copies of Borrower’s organizational documents; 

(c) a financing statement (Form UCC-1); 

(d) an agreement to furnish insurance; 

(e) stock pledge agreements executed by Borrower and WPH for the Shares and the certificates for the Shares, together with Assignment(s)
Separate from Certificate, duly executed in blank; 
 (f) a guaranty executed and delivered by WPH in form satisfactory to Bank, accompanied
by an officer’s certificate of WPH with respect to incumbency and resolutions authorizing such execution and delivery; 
 (g) a
subordination agreement executed and delivered by WPH in form satisfactory to Bank, accompanied by an officer’s certificate of WPH with respect to incumbency and resolutions authorizing such execution and delivery; 

(h) payment of the fees and Bank Expenses then due specified in Section 2.5; 

(i) current SOS Reports indicating that except for Permitted Liens, there are no other security interests or Liens of record in the Collateral;

 (j) an audit of the Collateral, the results of which shall be satisfactory to Bank; 

(k) current financial statements, including (i) audited statements for WPH’s most recently ended fiscal year, together with an
unqualified opinion of WPH’s accountants regarding those statements (unless such qualification is solely the result of a “going concern” related to 

  

					
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insufficient access to capital and/or negative profits), (ii) company prepared consolidated and consolidating balance sheets and income statements for the most recently ended month in
accordance with Section 6.2, and (iii) such other updated financial information as Bank may reasonably request; 
 (l) a current
Borrowing Base Certificate as contemplated by Section 6.2(i); 
 (m) a current Compliance Certificate in accordance with
Section 6.2; 
 (n) a Collateral Information Certificate in form satisfactory to Bank; 

(o) an Automatic Loan Payment Authorization; and 

(p) copies of the documents evidencing the Merger; and 

(q) such other documents or certificates, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

3.2 Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is
further subject to the following conditions: 
 (a) timely receipt by Bank of the Payment/Advance Form as provided in Section 2.1; and

 (b) the representations and warranties contained in Article 5 shall be true and correct in all material respects on and as of the
date of such Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit
Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date). The making of each Credit Extension shall be deemed to be a
representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2. 

ARTICLE 4. CREATION OF SECURITY INTEREST. 
 4.1 Grant
of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties
under the Loan Documents. Except as set forth in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security interest in
later-acquired Collateral, in each case, subject only to Permitted Liens. Borrower also hereby agrees not to sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property (other than the
Excluded IP), except in connection with Permitted Liens and Permitted Transfers; or (b) directly or indirectly enter into any agreement with any Person that prohibits or restricts or limits the ability of Borrower to create, incur, pledge or
suffer to exist any Lien in favor of Bank upon any of Borrower’s Intellectual Property (other than the Excluded IP). Notwithstanding any termination of this Agreement, Bank’s Lien on the Collateral shall remain in effect until
Payment-in-Full. 
 4.2 Perfection of Security Interest. Borrower authorizes Bank to file at any time financing statements, continuation statements,
and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder, and (ii) contain any other information required by the Code for the sufficiency
of filing office acceptance of any 

  

					
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financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of organization and any organizational identification number issued to Borrower,
if applicable. Any such financing statements may be filed by Bank at any time in any jurisdiction whether or not Revised Article 9 of the Code is then in effect in that jurisdiction. Borrower shall from time to time endorse and deliver to Bank,
at the request of Bank, all Negotiable Collateral and other documents that Bank may reasonably request, in form satisfactory to Bank, to perfect and continue perfection of Bank’s security interests in the Collateral and in order to fully
consummate all of the transactions contemplated under the Loan Documents. Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to exercise in its good faith credit
judgment to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third party bailee, Borrower shall take such commercially reasonable steps as Bank reasonably requests
for Bank to (i) obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank, (ii) obtain “control” of any Collateral consisting of investment
property, deposit accounts, securities accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Division 9 of the Code) by causing the securities intermediary or depositary
institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security
interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances in pledge and to decline to honor any drafts thereon or
any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. 

4.3 Right to Inspect. Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time
during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral in
order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral. 
 4.4 Lock Box.

 (a) Borrower agrees that the Obligations shall be on a “remittance basis”. Borrower shall at its sole expense
establish and maintain (and Bank, at Bank’s option, may establish and maintain at Borrower’s expense): 
 (i) A United States Post
Office lock box (the “Lock Box”), to which Bank shall have exclusive access and control. Borrower expressly authorizes Bank, from time to time, to remove the contents from the Lock Box, for disposition in accordance with this
Agreement. Borrower agrees to notify all account debtors and other parties obligated to Borrower that all payments made to Borrower (other than payments by electronic funds transfer) shall be remitted, for the credit of Borrower, to the Lock Box,
and Borrower shall include a like statement on all invoices; and 
 (ii) A non-interest bearing deposit account with Bank which shall be
titled as designated by Bank (the “Dominion of Funds Account”) to which Bank shall have exclusive access and control. Borrower agrees to notify all account debtors and other parties obligated to Borrower that all payments made to
Borrower by electronic funds transfer shall be remitted to the Dominion of Funds Account, and Borrower, at Bank’s request, shall include a like statement on all invoices. Borrower shall execute all documents and authorizations as required by
Bank to establish and maintain the Lock Box and the Dominion of Funds Account. 

  

					
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 (b) Borrower shall hold in trust for Bank all amounts that Borrower receives despite the
directions to make payments to the Lock Box or Dominion of Funds Account, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit into the Lock Box or Dominion of
Funds Account, as applicable. 
 All items or amounts which are remitted to the Dominion of Funds Account, or otherwise delivered by or for
the benefit of Borrower to Bank on account of partial or full payment of, or with respect to, any Collateral shall, on a daily basis, be applied to the payment of outstanding Advances, whether then due or not, with the balance, if any, deposited to
Borrower’s operating account maintained at Bank. After the occurrence and during the continuance of an Event of Default, all items or amounts remitted to the Lock Box, the Dominion of Funds Account or that Bank has otherwise received shall, in
Bank’s sole discretion, be applied to the payment of any Obligations, whether then due or not, in such order or at such time of application as Bank may determine in its sole discretion. Borrower agrees that Bank shall not be liable for any loss
or damage which Borrower may suffer as a result of Bank’s processing of items or its exercise of any other rights or remedies under this Agreement, including without limitation indirect, special or consequential damages, loss of revenues or
profits, or any claim, demand or action by any third party arising out of or in connection with the processing of items or the exercise of any other rights or remedies under this Agreement. Borrower agrees to indemnify and hold Bank harmless from
and against all such third party claims, demands or actions, and all related expenses or liabilities, including, without limitation, attorney’s fees and INCLUDING CLAIMS, DAMAGES, FINES, EXPENSES, LIABILITIES OR CAUSES OF ACTION OF WHATEVER
KIND RESULTING FROM BANK’S OWN NEGLIGENCE except to the extent (but only to the extent) caused by Bank’s gross negligence or willful misconduct. 

ARTICLE 5. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants as follows: 

5.1 Due Organization and Qualification. Borrower and each Subsidiary is an entity duly existing under the laws of the State of Delaware and qualified
and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 

5.2 Due Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly
authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s organizational documents, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower
is not in default under any agreement by which it is bound, except to the extent such default would not reasonably be expected to cause a Material Adverse Effect. 

5.3 Collateral. Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear of Liens, adverse
claims, and restrictions on transfer or pledge except for Permitted Liens. Except for laptop computers and cell phones in the possession of Borrower’s employees and agents used for business purposes while out of the office, all Collateral is
located solely in the Collateral States. The Accounts are bona fide existing obligations. The property or services giving rise to such Accounts has been delivered or rendered to the account debtor or its agent for immediate shipment to and
unconditional acceptance by the account debtor. All Inventory is in all material respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made. Except as set forth in the
Schedule, none of the Collateral is maintained or invested with a Person other than Bank or Bank’s Affiliates. 

  

					
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 5.4 Intellectual Property. Borrower is the sole owner of the Intellectual Property, except for
(a) licenses granted by Borrower to its customers in the ordinary course of business, (b) software that is commercially available to the public and (c) non-material intellectual property licensed to Borrower. To the best of
Borrower’s knowledge, each of the Copyrights, Trademarks and Patents is valid and enforceable, and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that
any part of the Intellectual Property violates the rights of any third party except to the extent such claim would not reasonably be expected to cause a Material Adverse Effect. 

5.5 Name; Location of Chief Executive Office; Location of Inventory and Equipment. Except as disclosed in the Schedule, Borrower has not done business
under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive office of Borrower is located in the Chief Executive Office State at the
address indicated in Section 10. Except as disclosed in the Schedule, all inventory and equipment of Borrower is located at the address indicated in Section 10 hereof. 

5.6 Actions, Suits, Litigation, or Proceedings. Except as set forth in the Schedule, there are no actions, suits, litigation or proceedings, at law or
in equity, pending by or against Borrower or any Subsidiary before any court, administrative agency, or arbitrator in which a likely adverse decision would reasonably be expected to have a Material Adverse Effect. 

5.7 No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrower and any Subsidiary
that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating results of operations for the
period then ended. There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank. 

5.8 Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value of Borrower’s
assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement. 

5.9 Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee
benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that would reasonably be expected to have a Material
Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of
the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied in all
material respects with all the provisions of the Federal Fair Labor Standards Act. Borrower is in compliance with all environmental laws, regulations and ordinances except where the failure to comply is not reasonably likely to have a Material
Adverse Effect. Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which would reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused to be filed
all tax returns required to be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such
returns or pay such taxes would not reasonably be expected to have a Material Adverse Effect. 

  

					
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 5.10 Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities of any
Person, except for Permitted Investments and Borrower has no Subsidiaries, except as set forth on the Schedule. 
 5.11 Government Consents. Borrower
and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business
as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 
 5.12 Inbound
Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any inbound license or other similar agreement, the failure, breach, or termination of which would reasonably be expected to cause a Material Adverse
Effect, or that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. 

5.13 Full Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement furnished to Bank taken
together with all such certificates and written statements furnished to Bank in connection with the Loan Documents or the transactions contemplated thereby contains any untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements contained in such certificates or statements, in light of the circumstances in which it is made, not misleading, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and
based upon reasonable assumptions are not to be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the projected or forecasted results. 

ARTICLE 6. AFFIRMATIVE COVENANTS. Borrower covenants that, until Payment-in-Full, Borrower shall do all of the following: 

6.1 Good Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ organizational existence and good standing
in the Borrower State, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the organizational
identification number issued to Borrower by the authorities of the jurisdiction in which Borrower is organized, if applicable. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA. Borrower shall comply in all material respects with all applicable Environmental Laws, and maintain all material permits, licenses and approvals required thereunder where the failure to do so would
reasonably be expected to have a Material Adverse Effect. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, and shall maintain, and
shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be expected to have a Material Adverse Effect. 

6.2 Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: 

(a) as soon as available, but in any event within 30 days after the end of each calendar month, a company prepared consolidated and
consolidating balance sheet and income statement covering WPH and its Subsidiaries’ operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; 

  

					
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 (b) as soon as available, but in any event within 150 days after the end of WPH’s
fiscal year, audited consolidated and consolidating financial statements of WPH and its Subsidiaries prepared in accordance with GAAP, consistently applied, together with an opinion which is unqualified (unless such qualification is solely the
result of a “going concern” related to insufficient access to capital and/or negative profits) or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably
acceptable to Bank; 
 (c) if applicable, copies of all statements, reports and notices sent or made available generally by WPH and/or
Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; 

(d) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could
result in damages or costs to Borrower or any Subsidiary of Five Hundred Thousand Dollars ($500,000) or more; 
 (e) if applicable, promptly
upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems; 

(f) as soon as available, but in any event not later than January 31 of each calendar year, Borrower’s financial and business
projections and budget for the immediately following year, with evidence of approval thereof by Borrower’s board of directors; 
 (g)
such budgets, sales projections, operating plans or other financial information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time; 

(h) within 30 days of the last day of each fiscal quarter, a report signed by Borrower, in form reasonably acceptable to Bank, listing
any applications or registrations that Borrower has made or filed in respect of any Patents, Copyrights or Trademarks and the status of any outstanding applications or registrations, as well as any material change in Borrower’s Intellectual
Property, including but not limited to any subsequent ownership right of Borrower in or to any Trademark, Patent or Copyright not specified in any Intellectual Property Security Agreement delivered to Bank by Borrower in connection with this
Agreement; 
 (i) within 3 Business Days after the 15th day and last day of each calendar month, Borrower shall provide Bank the
Export-Related Borrowing Base Certificate (as defined in the Borrower Agreement included in the Ex-Im Facility Documents) and reports detailing agings of Borrower’s accounts receivable and accounts payable and a schedule of Inventory bound for
export, each report to be in form satisfactory to Bank; 
 (j) within 30 days after the last day of each month, Borrower shall deliver
to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed by a Responsible Officer in substantially the form of Exhibit E hereto; and 

(k) immediately upon becoming aware of the occurrence or existence of an Event of Default hereunder, a written statement of a Responsible
Officer setting forth details of the Event of Default, and the action which Borrower has taken or proposes to take with respect thereto. 

Bank shall have a right from time to time hereafter to audit Borrower’s Accounts and appraise Collateral at Borrower’s expense,
provided that such audits will be conducted no more often than every six (6) months unless an Event of Default has occurred and is continuing. Bank agrees to coordinate the timing of such audits with Borrower to accommodate Borrower’s
standard monthly closing procedures so long as no Event of Default has occurred and is continuing beyond any applicable cure period or waived by Bank. 

  

					
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 Borrower may deliver to Bank on an electronic basis any certificates, reports or information
required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. If Borrower
delivers this information electronically, it shall also deliver to Bank by U.S. Mail, reputable overnight courier service, hand delivery, facsimile or .pdf file within five (5) Business Days of submission of the unsigned electronic copy the
certification of monthly financial statements, the intellectual property report, the Borrowing Base Certificate and the Compliance Certificate, each bearing the physical signature of the Responsible Officer. 

6.3 Inventory; Returns. Borrower shall keep all Inventory in good and merchantable condition, free from all material defects except for Inventory for
which adequate reserves have been made. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the Closing Date.
Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving more than $500,000.00. 
 6.4 Taxes.
Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning
income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting
to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by
GAAP) by Borrower. 
 6.5 Insurance. 

(a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers, and all other
hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted in the locations where Borrower’s business is conducted on the date hereof. Borrower shall also maintain liability and other
insurance in amounts and of a type that are customary to businesses similar to Borrower’s. 
 (b) All such policies of insurance shall
be in such form, with such companies, and in such amounts as reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional
lender loss payee, and all liability insurance policies shall show Bank as an additional insured and specify that the insurer must give at least twenty (20) days’ notice to Bank before canceling its policy for any reason other than
nonpayment of premium in which case the insurer must give at least ten (10) days’ notice to Bank prior to cancellation of the policy. Upon Bank’s request, Borrower shall deliver to Bank certified copies of the policies of insurance
and evidence of all premium payments. If no Event of Default has occurred and is continuing, proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided
that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest. If an Event of Default has occurred and is continuing, all proceeds payable under any such policy shall, at Bank’s
option, be payable to Bank to be applied on account of the Obligations. 

  

					
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 6.6 Accounts. Borrower and its Subsidiaries shall maintain all their depository and operating accounts
with Bank and their primary investment accounts with Bank or Bank’s Affiliates (covered by satisfactory control agreements), except that Borrower and its Subsidiaries may maintain deposit, operating and investment accounts in an aggregate
amount not to exceed U.S. $400,000 at other banks (including banks outside of the United States) and without the need for control agreements. 
 6.7
Financial Covenants. Borrower shall at all times maintain the following financial ratios and covenants: 
 (a) EBITDA. An
EBITDA of not less than the amounts set forth below at the indicated dates, measured as of the end of each fiscal quarter for the one fiscal quarter then-ending, as follows: 
  

			
	 Fiscal Quarter Date
	  	 Minimum EBITDA Amount

	 December 31, 2013
	  	- $3,500,000
	 March 31, 2014
	  	- $5,200,000

 6.8 Registration of Intellectual Property Rights. 

(a) Borrower shall register or cause to be registered on an expedited basis (to the extent not already registered) with the United States
Patent and Trademark Office or the United States Copyright Office, as the case may be, those registrable intellectual property rights now owned or hereafter developed or acquired by Borrower, to the extent that Borrower, in its reasonable business
judgment, deems it appropriate to so protect such intellectual property rights. 
 (b) Borrower shall give Bank written notice in accordance
with Section 6.2(viii) of any applications or registrations of intellectual property rights filed with the United States Patent and Trademark Office and United States Copyright Office, including the date of such filing and the registration or
application numbers, if any. 
 (c) Borrower shall (i) give Bank not less than thirty (30) days prior written notice of the filing
of any applications or registrations with the United States Copyright Office, including the title of such intellectual property rights to be registered, as such title will appear on such applications or registrations, and the date such applications
or registrations will be filed; (ii) prior to the filing of any such applications or registrations, execute such documents as Bank may reasonably request for Bank to maintain its perfection in such intellectual property rights to be registered
by Borrower; (iii) upon the request of Bank, either deliver to Bank or file such documents simultaneously with the filing of any such applications or registrations; (iv) upon filing any such applications or registrations, promptly provide
Bank with a copy of such applications or registrations together with any exhibits, evidence of the filing of any documents requested by Bank to be filed for Bank to maintain the perfection and priority of its security interest in such intellectual
property rights, and the date of such filing. 
 (d) Borrower shall (i) protect, defend and maintain the validity and enforceability of
the Trademarks, Patents, Copyrights, and trade secrets, (ii) use commercially reasonable efforts to detect infringements of the Trademarks, Patents and Copyrights and promptly advise Bank in writing of material infringements detected and
(iii) not allow any material Trademarks, Patents or Copyrights to be abandoned, forfeited or dedicated to the public without the written consent of Bank, which shall not be unreasonably withheld or delayed. 

  

					
		 	- 10 -	 	LOAN AND SECURITY AGREEMENT

 6.9 Consent of Inbound Licensors. Prior to entering into or becoming bound by any license or other similar
agreement (other than licenses for over-the-counter software or technology that is commercially available to the public), Borrower shall provide written notice to Bank of the material terms of such license or agreement with a description of its
likely impact on Borrower’s business or financial condition. 
 6.10 Further Assurances. At any time and from time to time Borrower shall
execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement. 

ARTICLE 7. NEGATIVE COVENANTS. Borrower covenants and agrees that until Payment-in-Full, Borrower will not do any of the following without Bank’s
prior written consent: 
 7.1 Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.

 7.2 Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control. Change its
name or the Borrower State or relocate its chief executive office without 30 days prior written notification to Bank; replace its chief executive officer or chief financial officer without 15 days prior written notification to Bank;
engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or incidental to the businesses currently engaged in by Borrower; change its fiscal year end; have a Change in Control. 

7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business
organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, or
enter into any agreement to do any of the same, except where (i) such transactions do not in the aggregate exceed $500,000.00 during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect
to such transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower is the surviving entity. 
 7.4
Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on
Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank. 
 7.5 Encumbrances. Create, incur, assume or allow any Lien with
respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person that Borrower in
the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property. Borrower also hereby agrees not to: (a) sell, transfer, assign, mortgage, pledge, lease, grant a security interest
in, or encumber Borrower’s real property located at 29 Pitman Road, Barre, Vermont 05641 (“Vermont Facility”), except in connection with Permitted Liens and Permitted Transfers; or (b) directly or indirectly enter into any
agreement with any Person that prohibits or restricts or limits the ability of Borrower to create, incur, pledge or suffer to exist any Lien in favor of Bank upon the Vermont Facility. 

7.6 Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any capital
stock, except that Borrower may repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase. 

  

					
		 	- 11 -	 	LOAN AND SECURITY AGREEMENT

 7.7 Investments. Directly or indirectly acquire or own, or make any Investment in or to any Person, or
permit any of its Subsidiaries to do so, other than Permitted Investments, or maintain or invest any of its property with a Person other than Bank or Bank’s Affiliates or permit any Subsidiary to do so unless such Person has entered into a
control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property to
Borrower. Further, Borrower shall not enter into any license or agreement with any Prohibited Territory or with any Person organized under or doing business in a Prohibited Territory. Notwithstanding anything to the contrary contained herein, except
for Permitted Investments, Borrower shall not, at any time, make or permit any Investment in any Subsidiary that is not a Domestic Subsidiary. 
 7.8
Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower or WPH except for transactions that are in the ordinary course of Borrower’s business, upon fair
and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
 7.9
Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt and the terms of the subordination agreement
relating to such Subordinated Debt, or amend any provision of any document evidencing such Subordinated Debt, except in compliance with the terms of the subordination agreement relating to such Subordinated Debt, or amend any provision affecting
Bank’s rights contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent. 
 7.10 Inventory and
Equipment. Store the Inventory or the Equipment with a bailee, warehouseman, or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party
that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of
business and except for such other locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment only at the locations set forth in the Schedule 7.10 and such other locations of which Borrower gives Bank prior
written notice and as to which Bank files a financing statement where needed to perfect its security interest. In connection with clause (a) of this Section 7.10, Borrower shall cause to be executed and delivered to Bank a lessor’s
agreement, in form and substance acceptable to Bank, within one week of closing on the sale and leaseback of the Vermont Location, pursuant to which the lessor acknowledges Bank’s security interest in the Inventory at the Vermont Location and
permits Bank access to and possession of such Inventory. 
 7.11 No Investment Company; Margin Regulation. Become or be controlled by an
“investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying
margin stock, or use the proceeds of any Credit Extension for such purpose. 
 7.12 Payments of Subsidiary’s Expenses. Make any payment in
respect of rent, payroll or any other operating expenses of any of its Subsidiaries other than payments of such expenses for Northern Power Systems, AG not to exceed U.S. $2,100,000 in the aggregate in any fiscal year. 

  

					
		 	- 12 -	 	LOAN AND SECURITY AGREEMENT

 ARTICLE 8. EVENTS OF DEFAULT 

Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement: 

8.1 Payment Default. If Borrower fails to pay any of the Obligations when due; 

8.2 Covenant Default. 
 (a) If Borrower
fails to perform any obligation under Section 6.4, 6.5 or 6.6 or violates any of the covenants contained in Article 7 of this Agreement; or 

(b) If Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this Agreement, in
any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within ten
(10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent
attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days)
to attempt to cure such default, so long as Borrower continues to diligently attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions
will be made; 
 8.3 Material Adverse Change. If there occurs any circumstance or circumstances that would reasonably be expected to have a Material
Adverse Effect. 
 8.4 Defective Perfection. If Bank shall receive at any time following the Closing Date an SOS Report indicating that except for
Permitted Liens, Bank’s security interest in the Collateral is not prior to all other security interests or Liens of record reflected in the report; 

8.5 Attachment. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or
comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within five (5) days, or if Borrower is
enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s
assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or
governmental agency, and the same is not paid within five (5) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has
been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be made during such cure period); 
 8.6 Insolvency. If
Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be
made prior to the dismissal of such Insolvency Proceeding); 

  

					
		 	- 13 -	 	LOAN AND SECURITY AGREEMENT

 8.7 Other Agreements. If there is a default or other failure to perform in any agreement to which Borrower
is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of $500,000.00 or that would reasonably be expected to have
a Material Adverse Effect; 
 8.8 Subordinated Debt. If Borrower makes any payment on account of Subordinated Debt, except to the extent the payment
is allowed under any subordination agreement entered into with Bank; 
 8.9 Judgments; Settlements. If a judgment or judgments for the payment of
money in an amount, individually or in the aggregate, of at least $500,000 shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the
satisfaction or stay of the judgment); or if a settlement or settlements is agreed upon for an amount individually or in the aggregate of at least $500,000 except for settlements that are covered by insurance with a reputable carrier as to which the
relevant insurance company has acknowledged full coverage. 
 8.10 Misrepresentations. If any material misrepresentation or material misstatement
exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document. 

8.11 Guaranty. If any guaranty of all or a portion of the Obligations (a “Guaranty”) ceases for any reason to be in full force and
effect, or any Guarantor fails to perform any obligation under any Guaranty or a security agreement securing any Guaranty (collectively, the “Guaranty Documents”), or any event of default occurs under any Guaranty Document or any
guarantor revokes or purports to revoke a Guaranty, or any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth in any Guaranty Document or in any certificate delivered to Bank in
connection with any Guaranty Document, or if any of the circumstances described in Sections 8.3 through 8.9 occur with respect to any Guarantor. 

ARTICLE 9. BANK’S RIGHTS AND REMEDIES. 
 9.1
Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, in accordance with applicable law,
all of which are authorized by Borrower: 
 (a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan
Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.6 (insolvency), all Obligations shall become immediately due and payable without any action by Bank); 

(b) Demand that Borrower (i) deposit cash with Bank in an amount equal to the amount of any Letters of Credit remaining undrawn, as
collateral security for the repayment of any future drawings under such Letters of Credit, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of the Letters of Credit, and Borrower shall
promptly deposit and pay such amounts; 
 (c) Cease advancing money or extending credit to or for the benefit of Borrower under this
Agreement or under any other agreement between Borrower and Bank; 

  

					
		 	- 14 -	 	LOAN AND SECURITY AGREEMENT

 (d) Settle or adjust disputes and claims directly with account debtors for amounts, upon terms
and in whatever order that Bank reasonably considers advisable; 
 (e) Make such payments and do such acts as Bank considers necessary or
reasonable to protect its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so requires, and to make the Collateral available to Bank as Bank may designate during normal business hours. Borrower authorizes Bank
to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination appears to
be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to
occupy the same, without charge by Borrower, WPH or any affiliate of Borrower or WPH, in order to exercise any of Bank’s rights or remedies provided herein, at law, in equity, or otherwise; 

(f) Set off and apply to the Obligations then due any and all (i) balances and deposits of Borrower held by Bank, and
(ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank; 
 (g) Ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without
charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s
benefit; 
 (h) Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or
on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the
Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.
If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank, and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank
may resell the Collateral and Borrower shall be credited with the proceeds of the sale; 
 (i) Bank may credit bid and purchase at any public
sale; 
 (j) Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard
to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and 

(k) Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower. 

  

					
		 	- 15 -	 	LOAN AND SECURITY AGREEMENT

 Bank may comply with any applicable state or federal law requirements in connection with a
disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 
 9.2
Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful
attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into
Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors;
(d) dispose of any Collateral; (e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account
debtors, for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature
of Borrower where permitted by law; provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of
Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed and Bank’s obligation to provide
advances hereunder is terminated. 
 9.3 Accounts Collection. At any time after the occurrence and during the continuation of an Event of Default,
Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account. Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s
trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit. 

9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under
the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; (b) set up such reserves under the Revolving Line as Bank deems necessary to
protect Bank from the exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank deems prudent. Any
amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided, and shall be secured by the Collateral. Any payments made by Bank
shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. 
 9.5
Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral for sale. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 

9.6 No Obligation to Pursue Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for
them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any
other Person for any of the Obligations. 
 9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and
all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right 

  

					
		 	- 16 -	 	LOAN AND SECURITY AGREEMENT

 
or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver,
election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower
expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise. 
 9.8
Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations. 

ARTICLE 10. NOTICES. 
 Unless otherwise
provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which
may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile or email to Borrower or to Bank, as
the case may be, at its addresses set forth below: 
  

					
	 If to Borrower:
	 	 Northern Power Systems, Inc.
 29 Pitman
Road
 Barre, Vermont 05641
 Attn: Chief Financial Officer

FAX: (802) 461-2998
	  	
			
	 with a copy to:
	 	 Northern Power Systems, Inc.
 281 Winter
Street
 Waltham, MA 02451
 Attn: General Counsel

FAX: (617) 871-1433
	  	
			
	 If to Bank:
	 	 Comerica Bank
 M/C 7578

39200 Six Mile Rd.
 Livonia, MI 48152

Attn: National Documentation Services
	  	
			
	 with a copy to:
	 	 Comerica Bank
 100 Federal Street

28th Floor

Boston, MA 02110
 Attn: Song Hu

FAX: (      )                

Email: shu@comerica.com
	  	

 The parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the
foregoing manner given to the other. 

  

					
		 	- 17 -	 	LOAN AND SECURITY AGREEMENT

 ARTICLE 11. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to
principles of conflicts of law. Each of Borrower and Bank hereby submits to the exclusive jurisdiction of the State and Federal courts located in the State of California. THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND
FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES. 

ARTICLE 12. REFERENCE PROVISION. 
 In the
event the Jury Trial Waiver set forth above is not enforceable, the parties elect to proceed under this Judicial Reference Provision. 
 (a)
With the exception of the items specified in Section 12(b), below, any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any other document, instrument or
agreement between the undersigned parties (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the
California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as
otherwise provided in the Loan Documents, venue for the reference proceeding will be in the Superior Court in the County where the real property involved in the action, if any, is located or in a County where venue is otherwise appropriate under
applicable law (the “Court”). 
 (b) The matters that shall not be subject to a reference are the following:
(i) foreclosure of any security interests in real or personal property, (ii) exercise of selfhelp remedies (including, without limitation, set-off), (iii) appointment of a receiver and (iv) temporary, provisional or ancillary
remedies (including, without limitation, writs of attachment, writs of possession-temporary restraining orders or preliminary injunctions). This Agreement does not limit the right of any party to exercise or oppose any of the rights and remedies
described in clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the right of any
party to a reference pursuant to this Agreement. 
 (c) The referee shall be a retired Judge or Justice selected by mutual written agreement
of the parties. If the parties do not agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A
request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. 

(d) The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject
to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all
issues of law or fact within one hundred twenty (120) days after the date of the conference and (iii) report a statement of decision within twenty (20) days after the matter has been submitted for decision. 

  

					
		 	- 18 -	 	LOAN AND SECURITY AGREEMENT

 (e) The referee will have power to expand or limit the amount and duration of discovery. The
referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to
“priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to
discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 
 (f) Except
as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with
respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any
hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to
award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 
 (g) The
referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the
reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a court proceeding, including without
limitation motions for summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference. Pursuant to CCP §
644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will be final, binding and conclusive. The parties reserve the right to appeal from the
final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different
judgment, which new trial, if granted, is also to be a reference proceeding under this provision. 
 (h) If the enabling legislation which
provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will
be conducted by a retired judge or Justice, in accordance with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such
arbitration proceeding. 
 (i) THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE
PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES
THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. 

  

					
		 	- 19 -	 	LOAN AND SECURITY AGREEMENT

 ARTICLE 13. GENERAL PROVISIONS. 

13.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the
parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which
consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right with notice given to the Borrower but without the consent of Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or any
interest in, Bank’s obligations, rights and benefits hereunder. 
 13.2 Indemnification. Borrower shall defend, indemnify and hold harmless Bank
and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement and/or the Loan Documents; and
(b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank, its officers, employees and agents as a result of or in any way arising out of, following, or consequential to transactions between Bank and Borrower whether under
this Agreement, or otherwise (including without limitation reasonable attorneys’ fees and expenses), except for losses caused by Bank’s gross negligence or willful misconduct. 

13.3 Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement. 

13.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of
determining the legal enforceability of any specific provision. 
 13.5 Correction of Loan Documents. Bank may correct patent errors and fill in any
blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 
 13.6 Amendments in Writing, Integration. All
amendments to or terminations of this Agreement or the other Loan Documents must be in writing signed by the parties. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the
subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents. 
 13.7 Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement. 
 13.8 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force
and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities
described in Section 13.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run. 

13.9 Confidentiality. In handling any confidential information, Bank and all employees and agents of Bank shall exercise the same degree of care that
Bank exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby 

  

					
		 	- 20 -	 	LOAN AND SECURITY AGREEMENT

 
received or received pursuant to this Agreement except that disclosure of such information may be made (i) to the subsidiaries or Affiliates of Bank in connection with their present or
prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the Loans provided such prospective transferee has agreed to be subject to the terms of this Section or otherwise has entered
into a comparable confidentiality agreement in favor of Borrower with a copy delivered to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as may be required in connection with
the examination, audit or similar investigation of Bank, (v) to Bank’s accountants, auditors and regulators, and (vi) as Bank may determine in connection with the enforcement of any remedies hereunder. Confidential information
hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Bank when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or
(b) is disclosed to Bank by a third party, provided Bank does not have actual knowledge that such third party is prohibited from disclosing such information. 

13.10 Amendment and Restatement. It is intended by the parties hereto that (a) all obligations of the parties under the Existing Loan Agreement
shall continue to exist under and be evidenced by this Agreement and the other Loan Documents; and (b) except as expressly stated herein or amended hereby, the Existing Loan Agreement and the other Loan Documents are ratified and confirmed as
remaining unmodified and in full force and effect with respect to all obligations thereunder; it being understood that it is the intent of the parties hereto that this Agreement does not constitute a novation of rights, obligations and liabilities
of the respective parties existing under the Existing Loan Agreement and such rights, obligations and liabilities shall continue and remain outstanding, and that this Agreement amends, restates and replaces in its entirety the Existing Loan
Agreement. On the Effective Date, each Loan Document that was in effect immediately prior to the Effective Date other than the Existing Loan Agreement and such other Loan Documents that are amended or amended and restated in connection herewith
shall continue to be effective and, unless the context otherwise requires, any reference to the Existing Loan Agreement contained therein shall be deemed to refer to this Agreement and any reference to the Loans or Obligations shall be deemed to
refer to the Loans and Obligations under this Agreement. Prior to the Effective Date, all Loan Documents (as defined in the Existing Loan Agreement) shall remain in full force in effect in accordance with their existing terms. 

[end of Agreement, signatures on next page] 
  

  

					
		 	- 21 -	 	LOAN AND SECURITY AGREEMENT

 IN WITNESS WHEREOF, the parties hereto have caused this Loan and Security Agreement to be executed as of the date
first above written. 
  

													
	Northern Power Systems, Inc.	 		 	Comerica Bank
					
	By:	 	/s/ Ciel Caldwell	 		 	By:	 	/s/ Song Hu
	Name:	 		 	Ciel Caldwell	 		 	Name:	 		 	Song Hu
	Title:	 		 	CFO	 		 	Title:	 		 	VP

  

					
		 	      LEGAL APPROVED
		 	Initials:	 	/s/ EJM
		 	  Date: 	 	11/17/14

  

					
		 	- 22 -	 	LOAN AND SECURITY AGREEMENT

 Exhibit A: Definitions 

“Accounts” means all presently existing and hereafter arising accounts, contract rights, payment intangibles and all other forms of
obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower and any and all credit insurance, guaranties, and other
security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 

“Advance” or “Advances” means a cash advance or cash advances under the Export Loan. 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls
or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and partners. 

“Bank Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses, whether generated in-house or
by outside counsel) incurred in connection with the preparation, negotiation, administration, and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable attorneys’ fees and expenses (whether generated
in-house or by outside counsel) incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is brought and, if suit is
instituted, whether at the trial court level, appellate level, in a bankruptcy, probate or administrative proceeding or otherwise. 
 “Borrower
State” means Delaware, the state under whose laws Borrower is organized. 
 “Borrower’s Books” means all of Borrower’s
books and records including: ledgers; records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information.

 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized or
required to close. 
 “Cash” means unrestricted cash and cash equivalents. 

“Change in Control” shall mean a transaction in which any “person” or “group” (within the meaning of Section 13(d)
and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then
outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction.

 “Chief Executive Office State” means Vermont, where Borrower’s chief executive office is located. 

“Closing Date” means the date of this Agreement. 

“Code” means the California Uniform Commercial Code as amended or supplemented from time to time. 

“Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described
on Exhibit B, except to the extent any such property (i) is non-assignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under
applicable law, including, without limitation, Sections 9406 and 9408 of 

 
the Code), (ii) the granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall
automatically become part of the Collateral, or (iii) constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign
corporations entitled to vote. 
 “Collateral State” means the state or states where the Collateral is located, which are Vermont,
California and Washington. 
 “Compliance Certificate” means a certificate of Borrower’s chief executive officer or financial officer
(i) setting forth Borrower’s compliance with the financial covenants set forth in Section 6.7 as of the date of those statements and (ii) stating that no Event of Default or Default has occurred, or if any such Event of Default
or Default exists, stating its nature, the period of its existence, and what action Borrower proposes to take to correct or remedy it. 

“Consolidated Net Income (or Deficit)” means the consolidated net income (or deficit) of any Person and its Subsidiaries, after deduction of
all expenses, taxes, and other proper charges, determined in accordance with GAAP, after eliminating therefrom all extraordinary nonrecurring items of income. 

“Consolidated Total Interest Expense” means with respect to any Person for any period, the aggregate amount of interest required to be paid
or accrued by a Person and its Subsidiaries during such period on all Indebtedness of such Person and its Subsidiaries outstanding during all or any part of such period, whether such interest was or is required to be reflected as an item of expense
or capitalized, including payments consisting of interest in respect of any capitalized lease or any synthetic lease, and including commitment fees, agency fees, facility fees, balance deficiency fees and similar fees or expenses in connection with
the borrowing of money. 
 “Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or
otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or
discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued
for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to
protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or
other support arrangement. 
 “Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like
protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 

“Credit Extension” means each Advance or any other extension of credit by Bank to or for the benefit of Borrower hereunder. 

 “Domestic Subsidiary” means any Subsidiary whose principal place of business is located in the
United States of America. 
 “EBITDA” means with respect to any fiscal period an amount equal to the sum of (a) Consolidated Net
Income of the Borrower and its Subsidiaries for such fiscal period, plus (b) in each case to the extent deducted in the calculation of the Borrower’s Consolidated Net Income and without duplication, (i) depreciation and
amortization for such period, plus (ii) income tax expense for such period, plus (iii) Consolidated Total Interest Expense paid or accrued during such period, plus (iv) non-cash expense associated with granting
stock options, plus (v) all non-cash or non-recurring expenses or charges for such period as approved by Bank on a case-by-case basis and minus, to the extent added in computing Consolidated Net Income, and without duplication,
all extraordinary and non-recurring revenue and gains (including income tax benefits) for such period, all as determined in accordance with GAAP. 

“Environmental Laws” means all laws, rules, regulations, orders and the like issued by any federal state, local foreign or other governmental
or quasi-governmental authority or any agency pertaining to the environment or to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive materials, asbestos or other similar materials. 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and
attachments in which Borrower has any interest. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations thereunder. 
 “Event of Default” has the meaning assigned in Article 8. 

“Ex-Im” means the Export-Import Bank of the United States. 

“Ex-Im Facility Documents” means the Ex-Im Facility Letter Agreement, the Master Revolving Note (in the current principal amount of
$6,000,000), the Loan Authorization Notice, the Borrower Agreement and the Economic Impact Certification, each dated as of February 28, 2013, as the same may be amended from time to time. 

“Excluded IP” means Intellectual Property acquired by the Borrower through the Merger. 

“Export Loans” means the loans advanced to Borrower under and pursuant to the Ex-Im Facility Documents. 

“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time. 

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without
limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all
Contingent Obligations. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of
the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief. 

 “Intellectual Property” means all of Borrower’s right, title, and interest in and to the
following: 
 (a) Copyrights, Trademarks and Patents; 

(b) Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or
hereafter existing, created, acquired or held; 
 (c) Any and all design rights which may be available to Borrower now or hereafter existing,
created, acquired or held; 
 (d) Any and all claims for damages by way of past, present and future infringement of any of the rights
included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; 

(e) All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use
to the extent permitted by such license or rights; 
 (f) All amendments, renewals and extensions of any of the Copyrights, Trademarks or
Patents; and 
 (g) All proceeds and products of the foregoing, including without limitation all payments under insurance or any indemnity or
warranty payable in respect of any of the foregoing. 
 “Inventory” means all present and future inventory in which Borrower has any
interest. 
 “Investment” means any beneficial ownership of (including stock, partnership or limited liability company interest or other
securities) any Person, or any loan, advance or capital contribution to any Person. 
 “IRC” means the Internal Revenue Code of 1986, as
amended, and the regulations thereunder. 
 “Letter of Credit” means a commercial or standby letter of credit or similar undertaking issued
by Bank at Borrower’s request pursuant to the terms of the Ex-Im Facility Documents. 
 “Lien” means any mortgage, lien, deed of
trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” means, collectively, this Agreement, the Ex-Im Facility
Documents, any note or notes executed by Borrower, and any other document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time. 

“Material Adverse Effect” means (i) a material adverse change in Borrower’s business or financial condition, or (ii) a
material impairment in the prospect of repayment of all or any portion of the Obligations or in otherwise performing Borrower’s obligations under the Loan Documents, or (iii) a material impairment in the perfection, value or priority of
Bank’s security interests in the Collateral. 
 “Merger” means the merger of Northern Power Systems Utility Scale, Inc., a Delaware
corporation, into Borrower pursuant to a Certificate of Merger filed with the Secretary of State of the State of Delaware on December 31, 2013, with the surviving entity being the Borrower. 

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments
(including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing. 

 “Obligations” means all debt, principal, interest, Bank Expenses, Ex-Im Facility Loans and other
amounts owed to Bank or any of its Affiliates by Borrower pursuant to this Agreement, the Ex-Im Facility Documents or any other agreement with the Bank or any of its Affiliates, whether absolute or contingent, due or to become due, now existing or
hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing from Borrower to others that Bank or any of its Affiliates may have obtained by
assignment or otherwise. 
 “Patents” means all patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Payment-in-Full” means
the payment and satisfaction of all of the Obligations (excluding contingent indemnification obligations as to which no claim has been asserted), and the termination of all of Bank’s obligations and commitments to make Credit Extensions. 

“Permitted Indebtedness” means: 

(a) Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document; 

(b) Indebtedness existing on the Closing Date and disclosed in the Schedule; 

(c) Indebtedness not to exceed $500,000.00 in the aggregate in any fiscal year of Borrower secured by a lien described in clause (c) of
the defined term “Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness, 

(d) Subordinated Debt; 
 (e)
Indebtedness to trade creditors incurred in the ordinary course of business; and 
 (f) Extensions, refinancings and renewals of any items of
Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investment” means: 

(a) Investments existing on the Closing Date disclosed in the Schedule; 

(b) (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof
maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either
Standard & Poor’s Corporation or Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one (1) year from the date of investment therein, and (iv) Bank’s money market
accounts; 
 (c) Repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase agreements
(i) in an aggregate amount not to exceed $500,000.00 in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases, or (ii) in any amount where the consideration for
the repurchase is the cancellation of indebtedness owed by such former employees to Borrower regardless of whether an Event of Default exists; 

 (d) Investments accepted in connection with Permitted Transfers; 

(e) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Domestic Subsidiaries not to exceed
$500,000.00 in the aggregate in any fiscal year; 
 (f) Investments not to exceed $500,000.00 in the aggregate in any fiscal year consisting
of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or
its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board of Directors; 
 (g) Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of
Borrower’s business; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to
customers and suppliers who are not Affiliates, in the ordinary course of business, provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary; and 

(i) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of
technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed $500,000.00 in the aggregate in any fiscal year. 

“Permitted Liens” means the following: 

(a) Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the
Advances) or arising under this Agreement or the other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests; 

(c) Liens not to exceed $500,000.00 in the aggregate (i) upon or in any Equipment acquired or held by Borrower or any of its Subsidiaries
to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such Equipment at the time of its acquisition, provided that the Lien is
confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment; 
 (d) Liens incurred in connection
with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the properly encumbered by
the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase; and 

 (e) Liens arising from judgments, decrees or attachments in circumstances not constituting an
Event of Default under Sections 8.5 (attachment) or 8.9 (judgments). 
 “Permitted Transfer” means the conveyance, sale, lease,
transfer or disposition by Borrower or any Subsidiary of: 
 (a) Inventory in the ordinary course of business; 

(b) Non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of
business; 
 (c) Worn-out or obsolete Equipment; or 

(d) Other assets of Borrower or its Subsidiaries that do not in the aggregate exceed $200,000.00 at any time during the term of this Agreement.

 “Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 

“Prohibited Territory” means any person or country listed by the Office of Foreign Assets Control of the United States Department of Treasury
as to which transactions between a United States Person and that territory are prohibited. 
 “Responsible Officer” means each of the Chief
Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower. 
 “Schedule” means the
schedule of exceptions attached hereto and approved by Bank, if any. 
 “SOS Reports” means the official reports from the Secretaries of
State of each Collateral State, Chief Executive Office State and the Borrower State and other applicable federal, state or local government offices (including, but not limited to, the United States Patent and Trademark Office or the United States
Copyright Office) identifying all current security interests filed in the Collateral and Liens of record as of the date of such report. 

“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms
reasonably acceptable to Bank (and identified as being such by Borrower and Bank). 
 “Subsidiary” means any corporation, partnership or
limited liability company or joint venture in which (i) any general partnership interest or (ii) more than 50% of the stock, limited liability company interest or joint venture of which by the terms thereof ordinary voting power to elect
the Board of Directors, managers or trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 
 “Vermont
Location” means 29 Pitman Road, Barre, Vermont 05641. 
 “WPH” means Wind Power Holdings, Inc., a Delaware corporation. 

 Exhibit B: Collateral Description Attachment to Loan and Security Agreement 

All of Debtor’s right, title and interest in and to all personal property of Debtor of every kind, whether presently existing or hereafter created or
acquired, and wherever located, including but not limited to: (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable
documents), equipment (including all accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for
sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and
records with respect to any of the foregoing, and the computers and equipment containing said books and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including, without limitation, insurance proceeds, and all
supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time. 

Notwithstanding the foregoing, the Collateral shall not include any copyrights, patents, trademarks, servicemarks and applications therefor, now owned or
hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”); provided, however, that the Collateral shall include all
accounts and general intangibles that consist of rights to payment from the sale, licensing or disposition of all or any part of, or rights in, the Intellectual Property (the “Rights to Payment”). Notwithstanding the foregoing, if a
judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of December 31, 2013, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment. 

 Exhibit C: Loan Advance/Paydown Request Form 

Exhibit D; Borrowing Base Certificate 

Exhibit E; Compliance Certificate 

 SCHEDULE OF EXCEPTIONS 

TO LOAN AND SECURITY AGREEMENT 

Permitted Indebtedness (Exhibit A) 
 Indebtedness in
the aggregate principal amount of $12,500,000 evidenced by Promissory Notes made by Borrower or Northern Power Systems Utility Scale, Inc. to WPH, which indebtedness is subordinated to the Obligations pursuant to a Subordination Agreement by WPH in
favor of Bank. 
 Permitted Investments (Exhibit A) 

None. 
 Permitted Liens (Exhibit A) 

Mortgage Deed dated October 6, 2005 and recorded in Book 212 at Pages 481-484 of the Town of Barre Land Records on Borrower’s real property and
equipment located at 29 Pitman Road, Barre, Vermont 05641 in favor of Vermont Economic Development Authority. 
 Due Organization and Qualification
(Section 5.1). 
 Northern Power Systems AG is a corporation organized under the laws of Switzerland. 

Collateral (Section 5.3) 
 Northern Power Systems, AG
maintains an operating account at CreditSuisse. 
 Prior Names (Section 5.5) 

Borrower was originally incorporated under the name of CB Wind Acquisition Corp. 

Location of Inventory and Equipment (Section 5.5) 

281 Winter Street, Waltham, MA (office equipment) 

Litigation (Section 5.6) 
 None. 

Subsidiaries (Section 5.10) 
 (1) Northern Power
Systems, AG, a corporation organized in Switzerland 
 (2) Northern Power Systems S.r.l., a corporation organized in Italy 

 Inbound Licenses (Section 5.12) 

None 
 Collateral Locations (Section 7.10) 

29 Pitman Road, Barre, Vermont 05641 
 5225 7th Street E. Building 6 Fife, WA 98424 

 AMENDMENT NO. 1 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

This Amendment No. 1 to Amended and Restated Loan and Security Agreement (“Amendment”) is made on June 30, 2014
(“First Amendment Effective Date”) between NORTHERN POWER SYSTEMS, INC., a Delaware corporation (“Borrower”) and COMERICA BANK, a Texas banking association (“Bank”). 

Borrower and Bank entered into an Amended and Restated Loan and Security Agreement dated December 31, 2013 (“Loan and Security
Agreement”) providing terms and conditions governing certain loans and other credit accommodations extended by Bank to Borrower (“Indebtedness”). 

Borrower and Bank have agreed to amend the terms of the Loan and Security Agreement as provided in this Amendment. 

Accordingly, Borrower and Bank agree as follows: 

1. Capitalized Terms. In this Amendment, capitalized terms that are used without separate definition shall have the meanings given to them in the Loan
and Security Agreement. 
 2. Amendments. The Loan and Security Agreement is amended as follows: 

(a) The following terms and their respective definitions are hereby added to Exhibit A of the Loan and Security Agreement in their respective
alphabetical order: 
 “Guarantor(s)” means WPH and NPSBC. 

“Liquid Assets” means, in respect of any applicable Person(s) and as of any applicable date of determination, the sum of
unrestricted cash, unrestricted marketable securities, FDIC insured accounts and United States government securities of such Person(s) at such time, but excluding any assets held in a “401K” account, individual retirement account
(IRA), pension or other type of retirement account or annuity, Rule 144 securities, securities pledged to secure any debt whether or not the debt is currently outstanding, securities not fully transferable until conditions are met, and assets held
in joint accounts with any party who is not a Borrower or Guarantor. 
 “NPSBC” means Northern Power Systems Corp., a
corporation organized under the Province of British Columbia. 
 “Unencumbered” means, in respect of any property or asset
of any Person(s), such property or asset is free and clear of all Liens (other than Liens to or in favor of Bank), and no Lien of any nature whatsoever (other than Liens to or in favor of Bank) shall be placed or exist upon or in respect of any such
property or asset. 
 (b) The following terms, which are defined in the Loan and Security Agreement, are hereby deleted: 

“EBITDA” 
 (c)
The following terms, which are defined in Exhibit A of the Loan and Security Agreement, are given the following amended definitions: 

“Ex-Im Facility Documents” means the Ex-Im Facility Letter Agreement, the Master Revolving Note (in the principal amount of
$6,000,000), the Loan Authorization Notice, the Borrower Agreement and the Economic Impact Certification, each dated as of June 30, 2014, as the same may be amended from time to time. 

 “Permitted Transfer” means the conveyance, sale, lease, transfer or disposition
by Borrower or any Subsidiary of licenses and similar arrangements for the use of the Intellectual Property of Borrower or its Subsidiaries in the ordinary course of business. 

“WPH” means Wind Power Holdings LLC, a Delaware limited liability company. 

(d) Clauses (a), (b) and (c) of Section 6.2 of the Loan and Security Agreement are hereby deleted in their entirety and replaced
with the following: 
 “(a) as soon as available, but in any event within 30 days after the end of each calendar month, a company
prepared consolidated and consolidating balance sheet and income statement covering NPSBC and its Subsidiaries’ operations during such period, in a form reasonably acceptable to Bank and certified by a Responsible Officer; 

(b) as soon as available, but in any event within 120 days after the end of NPSBC’s fiscal year, audited consolidated and
consolidating financial statements of NPSBC and its Subsidiaries prepared in accordance with GAAP, consistently applied, together with an opinion which is unqualified (unless such qualification is solely the result of a “going concern”
related to insufficient access to capital and/or negative profits) or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; 

(c) if applicable, copies of all statements, reports and notices sent or made available generally by NPSBC, WPH and/or Borrower to its security
holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission;”. 

(e) Section 6.6 of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following: 

“6.6 Accounts. Borrower and Guarantors shall maintain all their depository and operating accounts with Bank and
their primary investment accounts with Bank or Bank’s Affiliates (covered by satisfactory control agreements), except that Borrower and Guarantors may maintain deposit, operating and investment accounts in an aggregate amount not to exceed U.S.
$500,000 at other banks (including banks outside of the United States) and without the need for control agreements.” 
 (f)
Section 6.7 of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following: 

“6.7 Financial Covenants. Borrower shall at all times maintain the following financial covenant: 

(a) Liquid Assets. At all times, be and remain the owner of Unencumbered Liquid Assets having a value (as such value is determined by
Bank) of not less than One Million Five Hundred Thousand Dollars ($1,500,000). 
 (g) Section 7.1 of the Loan and Security Agreement is
hereby deleted in its entirety and replaced with the following: 
 “7.1 Intentionally Deleted.” 

  
 2 

 3. Consent. Bank confirms that, notwithstanding the provisions of Section 8.11 of the Loan and
Security Agreement, it consents to the dissolution of WPH at any time (the “Dissolution”) provided that Bank shall have received, in form and substance satisfactory to Bank, each of the following: 

(a) a stock pledge agreement executed by NPSBC for all shares of stock of Borrower owned by NPSBC and the certificates for such stock, together
with Assignment(s) Separate from Certificate, duly executed in blank; 
 (b) a guaranty executed and delivered by NPSBC, in form satisfactory
to Bank, accompanied by an officer’s certificate of NPSBC with respect to incumbency and resolutions authorizing such execution and delivery and certified copies of NPSBC’s organizational documents; 

(c) a security agreement executed and delivered by NPSBC, in form satisfactory to Bank, pursuant to which NPSBC grants to Bank a first priority
security interest in all tangible and intangible personal property of NPSBC, wherever located and whether now owned or hereafter acquired, together with all replacements thereof, substitutions therefor, accessions thereto and all proceeds and
products of all the foregoing; 
 (d) a financing statement covering all assets of NPSBC in favor of Bank; and 

(e) current SOS Reports indicating that there are no other security interests or Liens of record filed against the assets of NPSBC. 

This provision is not a waiver of or consent to any other event, condition, transaction, act or omission whether related or unrelated to the Dissolution which
would otherwise be a violation of the terms and conditions of the Loan and Security Agreement. 
 4. Representations. Borrower represents, covenants
and agrees that: 
 (a) Notwithstanding anything to the contrary in the Loan and Security Agreement, the Revolving Line is hereby terminated
and cancelled, there being no Advances currently outstanding or hereafter permitted under such Revolving Line or the Loan and Security Agreement. 

(b) The representations, warranties and covenants set forth in the Loan and Security Agreement shall continue to be applicable to the Ex-Im
Facility Documents until Payment-in-Full of the Ex-Im Facility Loans. 
 (c) Except as expressly modified in this Amendment, (i) the
representations and warranties set forth in the Loan and Security Agreement and in each Loan Document remain true and correct in all respects, except to the extent that they expressly speak as of a specific prior date, and (ii) the covenants
set forth in the Loan and Security Agreement continue to be satisfied in all respects, and are legal, valid and binding obligations with the same force and effect as if entirely restated in this Amendment. 

(d) When executed, this Amendment will be a duly authorized, legal, valid, and binding obligation of Borrower enforceable in accordance with
its terms, and will not conflict with or violate any of Borrower’s formation documents or any agreement, instrument, law, or order to which Borrower or any material portion of its assets is subject or bound. 

(e) The bylaws of the Borrower delivered to Bank on or about December 1, 2011 remain in full force and effect, have not been amended,
repealed or rescinded in any respect and may continue to be relied upon by Bank until written notice to the contrary is received by Bank, and Borrower continues to be in good standing under the laws of the States of Delaware and Vermont. 

  
 3 

 (f) There is no default continuing under the Loan and Security Agreement, or any related
document, agreement, or instrument, and no event has occurred or condition exists that is or, with the giving of notice or lapse of time or both, would be such a default. 

5. Conditions Precedent. The effectiveness of this Amendment is subject to Bank’s receipt of or Borrower’s satisfaction of all of the
following: 
 (a) this Amendment, duly executed by Borrower and the documents identified on attached Schedule 5, and such other agreements
and instruments reasonably requested by Bank pursuant thereto (including such documents as are necessary to create and perfect Bank’s interest in the Collateral), each duly executed by Borrower and/or other party as applicable; 

(b) payment of Bank’s expenses (including reasonable attorneys’ fees) incurred through the date of this Amendment (it being
acknowledged that the Bank is not charging an amendment fee in connection with this Amendment); and 
 (c) such other documents and
completion of such other matters as Bank may reasonably deem necessary or appropriate. 
 6. Post-Closing Condition. It is a condition to this
Amendment that Borrower satisfy the following condition by the date indicated, and failure to do so shall constitute an Event of Default: 

(a) By August 31, 2014, Borrower shall have delivered to Bank a pledge agreement in form and content satisfactory to Bank pursuant to
which Borrower pledges 65% of the issued and outstanding equity interests of Northern Power Systems S.r.l. to Bank as security for the Obligations, along with the original certificates, if any, representing the pledged equity interests and an
assignment separate from certificate on Bank’s form, duly executed in blank;. 
 7. No Other Changes. Except as specifically provided in this
Amendment, it does not vary the terms and provisions of any of the Loan Documents. This Amendment shall not impair the rights, remedies, and security given in and by the Loan Documents. The terms of this Amendment shall control any conflict between
its terms and those of the Loan and Security Agreement. 
 8. Ratification. Except for the modifications under this Amendment, the parties ratify and
confirm the Loan and Security Agreement and the Loan Documents and agree that they remain in full force and effect. 
 9. Further Modification; No
Reliance. This Amendment may be altered or modified only by written instrument duly executed by Borrower and Bank. In executing this Amendment, Borrower is not relying on any promise or commitment of Bank that is not in writing signed by Bank.
This Amendment shall not be more strictly construed against any one of the parties as compared to any other. 
 10. Successors and Assigns. This
Amendment shall inure to the benefit of and be binding upon the parties and their respective successors and assigns. 
 11. Governing Law. The
parties agree that the terms and provisions of this Amendment shall be governed by and construed in accordance with the internal laws of the State of California, without regard to principles of conflicts of law. 

12. No Defenses. Borrower acknowledges, confirms, and warrants to Bank that as of the date hereof Borrower has absolutely no defenses, claims, rights
of set-off, or counterclaims against Bank under, arising out of, or in connection with, this Amendment, the Loan and Security Agreement, the Loan Documents and/or the individual advances under the Indebtedness, or against any of the indebtedness
evidenced or secured thereby. 

  
 4 

 13. Expenses. Borrower shall promptly pay all out-of-pocket fees, costs, charges, expenses, and
disbursements of Bank incurred in connection with the preparation, execution, and delivery of this Amendment, and the other documents contemplated by this Amendment. 

14. Counterparts. This Amendment may be executed in one or more counterparts, and by separate parties on separate counterparts, all of which shall
constitute one and the same agreement. Facsimile copies of signatures or copies of signatures sent by electronic mail (as a “pdf” or “tif” attachment) shall be treated as manually signed originals for the purposes of this
Amendment and the documents to be delivered pursuant to Section 5. Any party delivering an executed counterpart of this Amendment by facsimile or electronic mail also shall deliver a manually executed counterpart of this Amendment, but the
failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. 

[end of amendment – signature page follows]  

  
 5 

 This Amendment No. 1 to Amended and Restated Loan and Security Agreement is executed and
delivered as of the First Amendment Effective Date. 
  

							
	COMERICA BANK	 	NORTHERN POWER SYSTEMS, INC.
				
	By:	 	/s/ Song Hu	 	By:	 	/s/ Ciel R. Caldwell
	Name:	 	Song Hu	 	Name:	 	Ciel R. Caldwell
	Title:	 	Vice President	 	Title:	 	Chief Financial Officer
			
		 		 	LEGAL APPROVED
				
		 		 	Initials:	 	/s/ EJM
		 		 	Date:	 	11/17/14

  
 6 

 Acknowledgement and Consent of Subordinated Creditor and Pledgor 

The undersigned acknowledges and consents to the execution, delivery and performance of the foregoing Amendment No. 1 to Amended and
Restated Loan and Security Agreement (“Loan Agreement Amendment”), which Loan Agreement Amendment amends that certain Loan and Security Agreement dated as of December 31, 2013, between Borrower and Bank (“Loan and
Security Agreement”) and $6,000,000 Master Revolving Note dated of even date herewith by Borrower to Bank (“Export Note”). 

The undersigned acknowledges that Wind Power Holdings, Inc., a Delaware corporation (the “Corporation”), merged with and into
a limited liability company (the “Merger”) on or about April 16, 2014, and the surviving entity is named Wind Power Holdings LLC, a Delaware limited liability company. The undersigned agrees that, notwithstanding the Merger, it
remains bound as successor to the Corporation under the Subordination Agreement dated as of December 1, 2011 (the “Subordination Agreement”) and the Stock Pledge Agreement dated as of December 1, 2011, as amended (the
“Stock Pledge Agreement”, together with the Subordination Agreement, the “WPH Agreements”). 
 The
undersigned agrees that (i) the WPH Agreements remain in full force and effect and (ii) it has absolutely no defenses, claims, rights of set-off, or counterclaims against Bank under, arising out of, or in connection with, the foregoing
Loan Agreement Amendment, the Loan and Security Agreement, the Export Note, or the other Loan Documents. The undersigned further represents that it is in compliance with all of the terms and conditions of the WPH Agreements. 

 

			
	 “Pledgor” and “Subordinated Creditor”

	 WIND POWER HOLDINGS LLC

		
	By:	 	/s/ Elliot J. Mark
	 Name:
	 	 Elliot J. Mark

	 Title:
	 	 Vice President

	 Dated:
	 	June 30, 2014

  
 7 

 SCHEDULE 5 

CLOSING CHECKLIST 
  

			
	 1.
	 	Good Standing Certificate (DE, Vermont) (Borrower)
	 2.
	 	Certified Copy of Articles of Organization (WPH)
	 3.
	 	Operating Agreement (WPH)
	 4.
	 	Authority to Support Another’s Borrowing and Incumbency Certificate (WPH)
	 5.
	 	Good Standing Certificate (DE) (WPH)
	 6.
	 	Copy of the Business Corporations Act Articles (NPS BC)
	 7.
	 	Copy of the Notice of Articles (NPS BC)
	 8.
	 	Authority to Support Another’s Borrowing and Incumbency Certificate (NPS BC)
	 9.
	 	Good Standing Certificate (NPS BC)
	 10.
	 	 UCC and Tax Lien Searches – Summary List only

(a) Borrower (DE)

	 11.
	 	UCC and Tax Lien Searches – WPH (DE)
	 12.
	 	PPSA Lien Searches – NPS BC (BC and ON)
	 13.
	 	[Officer’s Certificate with Incumbency Certificate and Resolutions (Borrower)]
	 14.
	 	Member’s Certificate with Incumbency Certificate and Resolutions (WPH)
	 15.
	 	Officer’s Certificate with Incumbency Certificate and Resolutions (NPS BC)
	 16.
	 	 Certificates of Insurance
 (a) General
Liability (naming Bank as additional insured)
 (b) Personal Property (naming Bank as lender’s loss payee)

	 17.
	 	Amendment No. 1 to Amended and Restated Loan and Security Agreement
	 18.
	 	Letter Agreement
	 19.
	 	$6,000,000 Master Revolving Note
	 20.
	 	Guaranty (WPH)
	 21.
	 	Guarantee (NPS BC)
	 22.
	 	Security Agreement (Deposit Account) – Borrower
	 23.
	 	Original Stock Certificate, with Assignment Separate from Certificate
	 24.
	 	Security Agreement (WPH)
	 25.
	 	Security Agreement (NPS BC)
	 26.
	 	UCC Financing Statement (Borrower – Securities Account)
	 27.
	 	UCC Financing Statement (WPH)
	 28.
	 	PPSA Filing (NPS BC)
	 29.
	 	Securities Account Control Agreement with Comerica Securities, Inc.
	 30.
	 	Joint Application for Working Capital Guaranty (with current Country Limitation Schedule provided by Comerica Trade Finance Group)
	 31.
	 	Loan Authorization Notice
	 32.
	 	Schedule A to Loan Authorization Notice
	 33.
	 	Borrower Agreement
	 34.
	 	Economic Impact Certification
	 35.
	 	Waiver Letter
	 36.
	 	Initial Borrowing Base Certificate (Export)
	 37.
	 	Evidence of Satisfaction of Minimum Credit Criteria and Additionality Test
	 38.
	 	Submission to Borrower of Country Limitation Schedule
	 39.
	 	Submission to Ex-Im Bank of Ex-Im Bank Facility Fee, Application Fee, Joint Application and Loan Authorization Notice
	 40.
	 	Submission to Ex-Im Bank of Notice of Loan Closing
	 41.
	 	Acknowledgment and Consent of WPH re Stock Pledge Agreement and Lien Subordination Agreement
	 42.
	 	Judicial Reference Letter – WPH
	 43.
	 	Judicial Reference Letter – NPSBC

 Schedule 5Exhibit 10.1

 

RX
Safes, Inc.

(the
“Company”)

 

2015
INCENTIVE PLAN

 

Section
1. PURPOSE

 

The
purpose of the RX Safes, Inc. 2015 Incentive Plan is to attract, retain and motivate employees, officers, directors, consultants,
agents, advisors and independent contractors of the Company and its Related Companies by providing them the opportunity to acquire
a proprietary interest in the Company and to align their interests and efforts to the long-term interests of the Company’s
stockholders.

 

Section
2. DEFINITIONS

 

Certain
capitalized terms used in the Plan have the meanings set forth in Appendix A.

 

Section
3. ADMINISTRATION

 

		3.1	Administration
                                         of the Plan

 

The
Plan shall be administered by the Board or its Compensation Committee. The Compensation Committee shall be composed of two or
more directors, each of whom is a “non-employee director” within the meaning of Rule 16b-3(b)(3) promulgated under
the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission. As used in this Plan, the term
“Compensation Committee” shall be construed as if followed by the words “(if any)”; nothing in this Plan
requires the Board to have a Compensation Committee.

 

		3.2	Delegation

 

Notwithstanding
the foregoing, the Board may delegate responsibility for administering the Plan with respect to designated classes of Eligible
Persons to different committees consisting of one or more members of the Board, subject to such limitations as the Board deems
appropriate, except with respect to Awards to any Participants who are then subject to Section 16 of the Exchange Act. Members
of any committee shall serve for such term as the Board may determine, subject to removal by the Board at any time. To the extent
consistent with applicable law, the Board or the Compensation Committee may authorize one or more officers of the Company to grant
Awards to designated classes of Eligible Persons, within limits specifically prescribed by the Board or the Compensation Committee;
provided, however, that no such officer shall have or obtain authority to grant Awards to himself or herself or to any person
then subject to Section 16 of the Exchange Act. All references in the Plan to the “Committee” shall be, as applicable,
to the Board, the Compensation Committee or any other committee or any officer to whom the Board or the Compensation Committee
has delegated authority to administer the Plan.

 

		3.3	Administration
                                         and Interpretation by Committee

 

(a)
Except for the terms and conditions explicitly set forth in the Plan and to the extent permitted by applicable law, the Committee
shall have full power and exclusive authority, subject to such orders or resolutions not inconsistent with the provisions of the
Plan as may from time to time be adopted by the Board, to

 

(i)
select the Eligible Persons to whom Awards may from time to time be granted under the Plan;

 

    	 

    	 

    

 

(ii)
determine the type or types of Awards to be granted to each Participant under the Plan;

 

(iii)
determine the number of shares of Common Stock, if any, to be covered by each Award granted under the Plan;

 

(iv)
determine the terms and conditions of any Award granted under the Plan;

 

(v)
approve the forms of notice or agreement for use under the Plan;

 

(vi)
determine whether, to what extent and under what circumstances Awards may be settled in cash, shares of Common Stock or other
property or canceled or suspended;

 

(vii)
determine whether, to what extent and under what circumstances cash, shares of Common Stock, other property and other amounts
payable with respect to an Award shall be deferred either automatically or at the election of the Participant;

 

(viii)
interpret and administer the Plan and any instrument evidencing an Award, notice or agreement executed or entered into under the
Plan;

 

(ix)
establish such rules and regulations as it shall deem appropriate for the proper administration of the Plan;

 

(x)
delegate ministerial duties to such of the Company’s employees as it so determines; and

 

(xi)
make any other determination and take any other action that the Committee deems necessary or desirable for administration of the
Plan.

 

(b)
The Committee shall have the right, without stockholder approval, to cancel or amend outstanding Options or SARs for the purpose
of repricing, replacing or regranting such Options or SARs with Options or SARs that have a purchase or grant price that is less
than the purchase or grant price for the original Options or SARs except in connection with adjustments provided in Section 15.

 

(c)
The effect on the vesting of an Award of a Company-approved leave of absence or a Participant’s working less than full-time
shall be determined by the Company’s chief human resources officer or other person performing that function or, with respect
to directors or executive officers, by the Committee, whose determination shall be final.

 

(d)
Decisions of the Committee shall be final, conclusive and binding on all persons, including the Company, any Participant, any
stockholder and any Eligible Person. A majority of the members of the Committee may determine its actions.

 

    	2

    	 

    

 

Section
4. SHARES SUBJECT TO THE PLAN

 

		4.1	Authorized
                                         Number of Shares

 

Subject
to adjustment from time to time as provided in subsection 15.1, a maximum of 25,000,000 shares of Common Stock shall be available
for issuance under the Plan. Shares issued under the Plan shall be drawn from authorized and unissued shares or shares now held
or subsequently acquired by the Company as treasury shares.

 

		4.2	Share
                                         Usage

 

(a)
Shares of Common Stock covered by an Award shall not be counted as used unless and until they are actually issued and delivered
to a Participant. If any Award lapses, expires, terminates or is canceled prior to the issuance of shares thereunder or if shares
of Common Stock are issued under the Plan to a Participant and thereafter are forfeited to or otherwise reacquired by the Company,
the shares subject to such Awards and the forfeited or reacquired shares shall again be available for issuance under the Plan.
Any shares of Common Stock

 

(i)
tendered by a Participant or retained by the Company as full or partial payment to the Company for the purchase price of an Award
or to satisfy tax withholding obligations in connection with an Award, or

 

(ii)
covered by an Award that is settled in cash, or in a manner such that some or all of the shares of Common Stock covered by the
Award are not issued,

 

shall
be available for Awards under the Plan. The number of shares of Common Stock available for issuance under the Plan shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested into additional shares of Common Stock or credited
as additional shares of Common Stock subject or paid with respect to an Award.

 

(b)
The Committee shall also, without limitation, have the authority to grant Awards as an alternative to or as the form of payment
for grants or rights earned or due under other compensation plans or arrangements of the Company.

 

(c)
Notwithstanding anything in the Plan to the contrary, the Committee may grant Substitute Awards under the Plan. Substitute Awards
shall not reduce the number of shares authorized for issuance under the Plan. In the event that an Acquired Entity has shares
available for awards or grants under one or more preexisting plans not adopted in contemplation of such acquisition or combination,
then, to the extent determined by the Committee, the shares available for grant pursuant to the terms of such preexisting plan
(as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such
acquisition or combination to determine the consideration payable to holders of common stock of the entities that are parties
to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the number of shares of Common
Stock authorized for issuance under the Plan; provided, however, that Awards using such available shares shall not be made after
the date awards or grants could have been made under the terms of such preexisting plans, absent the acquisition or combination,
and shall only be made to individuals who were not employees or directors of the Company or a Related Company prior to such acquisition
or combination. In the event that a written agreement between the Company and an Acquired Entity pursuant to which a merger or
consolidation is completed is approved by the Board and that agreement sets forth the terms and conditions of the substitution
for or assumption of outstanding awards of the Acquired Entity, those terms and conditions shall be deemed to be the action of
the Committee without any further action by the Committee, except as may be required for compliance with Rule 16b-3 under the
Exchange Act, and the persons holding such awards shall be deemed to be Participants.

 

    	3

    	 

    

 

(d)
Notwithstanding the other provisions in this subsection, the maximum number of shares that may be issued upon the exercise of
Incentive Stock Options shall equal the aggregate share number stated in subsection 4.1, subject to adjustment as provided in
subsection 15.1.

 

Section
5. ELIGIBILITY

 

An
Award may be granted to any employee, officer or director of the Company or a Related Company whom the Committee from time to
time selects. An Award may also be granted to any consultant, agent, advisor or independent contractor for bona fide services
rendered to the Company or any Related Company that:

 

(a)
are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction, and

 

(b)
do not directly or indirectly promote or maintain a market for the Company’s securities.

 

Section
6. AWARDS

 

		6.1	Form,
                                         Grant and Settlement of Awards

 

The
Committee shall have the authority, in its sole discretion, to determine the type or types of Awards to be granted under the Plan.
Such Awards may be granted either alone or in addition to or in tandem with any other type of Award. Any Award settlement may
be subject to such conditions, restrictions and contingencies as the Committee shall determine.

 

		6.2	Evidence
                                         of Awards

 

Awards
granted under the Plan shall be evidenced by a written, including an electronic, notice or agreement that shall contain such terms,
conditions, limitations and restrictions as the Committee shall deem advisable and that are not inconsistent with the Plan.

 

		6.3	Deferrals

 

The
Committee may permit or require a Participant to defer receipt of the payment of any Award if and to the extent set forth in the
instrument evidencing the Award at the time of grant. If any such deferral election is permitted or required, the Committee, in
its sole discretion, shall establish rules and procedures for such payment deferrals, which may include the grant of additional
Awards or provisions for the payment or crediting of interest or dividend equivalents, including converting such credits to deferred
stock unit equivalents; provided, however, that the terms of any deferrals under this subsection shall comply with all applicable
law, rules and regulations, including, without limitation, Section 409A of the Code.

 

    	4

    	 

    

 

		6.4	Dividends
                                         and Distributions

 

Participants
may, if and to the extent the Committee so determines and sets forth in the instrument evidencing the Award at the time of grant,
be credited with dividends paid with respect to shares of Common Stock underlying an Award in a manner determined by the Committee
in its sole discretion. The Committee may apply any restrictions to the dividends or dividend equivalents that the Committee deems
appropriate. The Committee, in its sole discretion, may determine the form of payment of dividends or dividend equivalents, including
cash, shares of Common Stock, Restricted Stock or Stock Units.

 

Section
7. OPTIONS

 

		7.1	Grant
                                         of Options

 

The
Committee may grant Options designated as Incentive Stock Options or Nonqualified Stock Options.

 

		7.2	Option
                                         Exercise Price

 

The
exercise price for shares purchased under an Option shall be at least 100% of the Fair Market Value on the Grant Date (and shall
not be less than the minimum exercise price required by Section 422 of the Code with respect to Incentive Stock Options), except
in the case of Substitute Awards.

 

		7.3	Term
                                         of Options

 

Subject
to earlier termination in accordance with the terms of the Plan and the instrument evidencing the Option, the maximum term of
a Nonqualified Stock Option shall be ten years from the Grant Date.

 

		7.4	Exercise
                                         of Options

 

The
Committee shall establish and set forth in each instrument that evidences an Option the time at which, or the installments in
which, the Option shall vest and become exercisable, any of which provisions may be waived or modified by the Committee at any
time.

 

To
the extent an Option has vested and become exercisable, the Option may be exercised in whole or from time to time in part by delivery
to or as directed or approved by the Company of a properly executed stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Committee, setting forth the number of shares with respect to which the Option is
being exercised, the restrictions imposed on the shares purchased under such exercise agreement, if any, and such representations
and agreements as may be required by the Committee, accompanied by payment in full as described in subsection 7.5 and Section
13. An Option may be exercised only for whole shares and may not be exercised for less than a reasonable number of shares at any
one time, as determined by the Committee.

 

    	5

    	 

    

 

		7.5	Payment
                                         of Exercise Price

 

The
exercise price for shares purchased under an Option shall be paid in full to the Company by delivery of consideration equal to
the product of the Option exercise price and the number of shares purchased. Such consideration must be paid before the Company
will issue the shares being purchased and must be in a form or a combination of forms acceptable to the Committee for that purchase,
which forms may include:

 

(a)
cash;

 

(b)
check or wire transfer;

 

(c)
having the Company withhold shares of Common Stock that would otherwise be issued on exercise of the Option that have an aggregate
Fair Market Value equal to the aggregate exercise price of the shares being purchased under the Option;

 

(d)
tendering (either actually or, so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by
attestation) shares of Common Stock owned by the Participant that have an aggregate Fair Market Value equal to the aggregate exercise
price of the shares being purchased under the Option;

 

(e)
so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted by law,
delivery of a properly executed exercise notice, together with irrevocable instructions to a brokerage firm designated or approved
by the Company to deliver promptly to the Company the aggregate amount of proceeds to pay the Option exercise price and any withholding
tax obligations that may arise in connection with the exercise, all in accordance with the regulations of the Federal Reserve
Board; or

 

(f)
such other consideration as the Committee may permit.

 

		7.6	Effect
                                         of Termination of Service

 

The
Committee shall establish and set forth in each instrument that evidences an Option whether the Option shall continue to be exercisable,
and the terms and conditions of such exercise, after a Termination of Service, any of which provisions may be waived or modified
by the Committee at any time. If not so established in the instrument evidencing the Option, the Option shall be exercisable according
to the following terms and conditions, which may be waived or modified by the Committee at any time:

 

(a)
Any portion of an Option that is not vested and exercisable on the date of a Participant’s Termination of Service shall
expire on such date.

 

(b)
Any portion of an Option that is vested and exercisable on the date of a Participant’s Termination of Service shall expire
on the earliest to occur of:

 

(i)
if the Participant’s Termination of Service occurs for reasons other than Cause, Retirement, Disability or death, the date
that is three months after such Termination of Service;

 

(ii)
if the Participant’s Termination of Service occurs by reason of Retirement, Disability or death, the one-year anniversary
of such Termination of Service; and

 

(iii)
the Option Expiration Date.

 

    	6

    	 

    

 

Notwithstanding
the foregoing, if a Participant dies after his or her Termination of Service but while an Option is otherwise exercisable, the
portion of the Option that is vested and exercisable on the date of such Termination of Service shall expire upon the earlier
to occur of (y) the Option Expiration Date and (z) the one-year anniversary of the date of death, unless the Committee determines
otherwise. Also notwithstanding the foregoing, in case a Participant’s Termination of Service occurs for Cause, all Options
granted to the Participant shall automatically expire upon first notification to the Participant of such termination, unless the
Committee determines otherwise. If a Participant’s employment or service relationship with the Company is suspended pending
an investigation of whether the Participant shall be terminated for Cause, all the Participant’s rights under any Option
shall likewise be suspended during the period of investigation. If any facts that would constitute termination for Cause are discovered
after a Participant’s Termination of Service, any Option then held by the Participant may be immediately terminated by the
Committee, in its sole discretion.

 

(c)
If the exercise of the Option following a Participant’s Termination of Service, but while the Option is otherwise exercisable,
would be prohibited solely because the issuance of Common Stock would violate either the registration requirements under the Securities
Act or the Company’s insider trading policy, then the Option shall remain exercisable until the earlier of (i) the Option
Expiration Date and (ii) the expiration of a period of three months (or such longer period of time as determined by the Committee
in its sole discretion) after the Participant’s Termination of Service during which the exercise of the Option would not
be in violation of such Securities Act or insider trading policy requirements.

 

Section
8. INCENTIVE STOCK OPTION LIMITATIONS

 

Notwithstanding
any other provisions of the Plan, the terms and conditions of any Incentive Stock Options shall also comply in all respects with
Section 422 of the Code, or any successor provision, and any applicable regulations thereunder, including, to the extent required
thereunder, the following:

 

		8.1	Dollar
                                         Limitation

 

To
the extent the aggregate Fair Market Value (determined as of the Grant Date) of Common Stock with respect to which a Participant’s
Incentive Stock Options become exercisable for the first time during any calendar year (under the Plan and all other stock option
plans of the Company and its parent and subsidiary corporations) exceeds $100,000, such portion in excess of $100,000 shall be
treated as a Nonqualified Stock Option. In the event the Participant holds two or more such Options that become exercisable for
the first time in the same calendar year, such limitation shall be applied on the basis of the order in which such Options are
granted.

 

		8.2	Eligible
                                         Employees.

 

Individuals
who are not employees of the Company or one of its parent or subsidiary corporations may not be granted Incentive Stock Options.

 

		8.3	Exercise
                                         Price

 

The
exercise price of an Incentive Stock Option shall be at least 100% of the Fair Market Value of the Common Stock on the Grant Date,
and in the case of an Incentive Stock Option granted to a Participant who owns more than 10% of the total combined voting power
of all classes of the stock of the Company or of its parent or subsidiary corporations (a “Ten Percent Stockholder”),
shall not be less than 110% of the Fair Market Value of the Common Stock on the Grant Date. The determination of more than 10%
ownership shall be made in accordance with Section 422 of the Code.

 

    	7

    	 

    

 

		8.4	Option
                                         Term

 

Subject
to earlier termination in accordance with the terms of the Plan and the instrument evidencing the Option, the maximum term of
an Incentive Stock Option shall not exceed ten years, and in the case of an Incentive Stock Option granted to a Ten Percent Stockholder,
shall not exceed five years.

 

		8.5	Exercisability

 

An
Option designated as an Incentive Stock Option shall cease to qualify for favorable tax treatment as an Incentive Stock Option
to the extent it is exercised (if permitted by the terms of the Option) (a) more than three months after the date of a Participant’s
Termination of Service if termination was for reasons other than death or disability, (b) more than one year after the date of
a Participant’s Termination of Service if termination was by reason of disability, or (c) after the Participant has been
on leave of absence for more than 90 days, unless the Participant’s reemployment rights are guaranteed by statute or contract.

 

		8.6	Taxation
                                         of Incentive Stock Options

 

In
order to obtain certain tax benefits afforded to Incentive Stock Options under Section 422 of the Code, the Participant must hold
the shares acquired upon the exercise of an Incentive Stock Option for two years after the Grant Date and one year after the date
of exercise.

 

A
Participant may be subject to the alternative minimum tax at the time of exercise of an Incentive Stock Option. The Participant
shall give the Company prompt notice of any disposition of shares acquired on the exercise of an Incentive Stock Option prior
to the expiration of such holding periods.

 

		8.7	Code
                                         Definitions

 

For
the purposes of this Section, “disability” “parent corporation” and “subsidiary corporation”
shall have the meanings attributed to those terms for purposes of Section 422 of the Code.

 

Section
9. STOCK APPRECIATION RIGHTS

 

		9.1	Grant
                                         of Stock Appreciation Rights

 

The
Committee may grant Stock Appreciation Rights to Participants at any time on such terms and conditions as the Committee shall
determine in its sole discretion. An SAR may be granted in tandem with an Option or alone (“freestanding”). The grant
price of a tandem SAR shall be equal to the exercise price of the related Option. The grant price of a freestanding SAR shall
be established in accordance with procedures for Options set forth in subsection 7.2. An SAR may be exercised upon such terms
and conditions and for the term as the Committee determines in its sole discretion; provided, however, that, subject to earlier
termination in accordance with the terms of the Plan and the instrument evidencing the SAR, the maximum term of a freestanding
SAR shall be ten years, and in the case of a tandem SAR, (a) the term shall not exceed the term of the related Option and (b)
the tandem SAR may be exercised for all or part of the shares subject to the related Option upon the surrender of the right to
exercise the equivalent portion of the related Option, except that the tandem SAR may be exercised only with respect to the shares
for which its related Option is then exercisable.

 

    	8

    	 

    

 

		9.2	Payment
                                         of SAR Amount

 

Upon
the exercise of an SAR, a Participant shall be entitled to receive payment in an amount determined by multiplying:

 

(a)
the difference between the Fair Market Value of the Common Stock on the date of exercise over the grant price of the SAR by

 

(b)
the number of shares with respect to which the SAR is exercised.

 

At
the discretion of the Committee as set forth in the instrument evidencing the Award, the payment upon exercise of an SAR may be
in cash, in shares, in some combination thereof or in any other manner approved by the Committee in its sole discretion.

 

		9.3	Waiver
                                         of Restrictions

 

Subject
to subsection 18.5, the Committee, in its sole discretion, may waive any other terms, conditions or restrictions on any SAR under
such circumstances and subject to such terms and conditions as the Committee shall deem appropriate.

 

Section
10. STOCK AWARDS, RESTRICTED STOCK AND STOCK UNITS

 

		10.1	Grant
                                         of Stock Awards, Restricted Stock and Stock Units

 

The
Committee may grant Stock Awards, Restricted Stock and Stock Units on such terms and conditions and subject to such repurchase
or forfeiture restrictions, if any, which may be based on continuous service with the Company or a Related Company or the achievement
of any performance goals, as the Committee shall determine in its sole discretion, which terms, conditions and restrictions shall
be set forth in the instrument evidencing the Award.

 

		10.2	Vesting
                                         of Restricted Stock and Stock Units

 

Upon
the satisfaction of any terms, conditions and restrictions prescribed with respect to Restricted Stock or Stock Units, or upon
a Participant’s release from any terms, conditions and restrictions of Restricted Stock or Stock Units, as determined by
the Committee, and subject to the provisions of Section 13:

 

(a)
the shares of Restricted Stock covered by each Award of Restricted Stock shall become freely transferable by the Participant,
and

 

(b)
Stock Units shall be paid in shares of Common Stock or, if set forth in the instrument evidencing the Awards, in cash or a combination
of cash and shares of Common Stock.

 

Any
fractional shares subject to such Awards shall be paid to the Participant in cash.

 

		10.3	Waiver
                                         of Restrictions

 

Subject
to subsection 18.5, the Committee, in its sole discretion, may waive the repurchase or forfeiture period and any other terms,
conditions or restrictions on any Restricted Stock or Stock Unit under such circumstances and subject to such terms and conditions
as the Committee shall deem appropriate.

 

    	9

    	 

    

 

Section
11. PERFORMANCE AWARDS

 

		11.1	Performance
                                         Shares

 

The
Committee may grant Awards of Performance Shares, designate the Participants to whom Performance Shares are to be awarded and
determine the number of Performance Shares and the terms and conditions of each such Award. Performance Shares shall consist of
a unit valued by reference to a designated number of shares of Common Stock, the value of which may be paid to the Participant
by delivery of shares of Common Stock or, if set forth in the instrument evidencing the Award, of such property as the Committee
shall determine, including, without limitation, cash, shares of Common Stock, other property, or any combination thereof, upon
the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.
Subject to subsection 18.5, the amount to be paid under an Award of Performance Shares may be adjusted on the basis of such further
consideration as the Committee shall determine in its sole discretion.

 

		11.2	Performance
                                         Units

 

The
Committee may grant Awards of Performance Units, designate the Participants to whom Performance Units are to be awarded and determine
the number of Performance Units and the terms and conditions of each such Award. Performance Units shall consist of a unit valued
by reference to a designated amount of property other than shares of Common Stock, which value may be paid to the Participant
by delivery of such property as the Committee shall determine, including, without limitation, cash, shares of Common Stock, other
property, or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms
and conditions specified by the Committee. Subject to subsection 18.5, the amount to be paid under an Award of Performance Units
may be adjusted on the basis of such further consideration as the Committee shall determine in its sole discretion.

 

Section
12. OTHER STOCK OR CASH-BASED AWARDS

 

Subject
to the terms of the Plan and such other terms and conditions as the Committee deems appropriate, the Committee may grant other
incentives payable in cash or in shares of Common Stock under the Plan.

 

Section
13. WITHHOLDING

 

The
Company may require the Participant to pay to the Company the amount of:

 

(a)
any taxes that the Company is required by applicable federal, state, local or foreign law to withhold with respect to the grant,
vesting or exercise of an Award (“tax withholding obligations”); and

 

(b)
any amounts due from the Participant to the Company or to any Related Company (“other obligations”).

 

    	10

    	 

    

 

The
Company shall not be required to issue any shares of Common Stock or otherwise settle an Award under the Plan until such tax withholding
obligations and other obligations are satisfied. The Committee may permit or require a Participant to satisfy all or part of the
Participant’s tax withholding obligations and other obligations by:

 

(i)
paying cash to the Company,

 

(ii)
having the Company withhold an amount from any cash amounts otherwise due or to become due from the Company to the Participant,

 

(iii)
having the Company withhold a number of shares of Common Stock that would otherwise be issued to the Participant (or become vested,
in the case of Restricted Stock) having a Fair Market Value equal to the tax withholding obligations and other obligations, or

 

(iv)
surrendering a number of shares of Common Stock the Participant already owns having a value equal to the tax withholding obligations
and other obligations.

 

The
value of the shares so withheld or tendered may not exceed the employer’s minimum required tax withholding rate.

 

Section
14. ASSIGNABILITY

 

No
Award or interest in an Award may be sold, assigned, pledged (as collateral for a loan or as security for the performance of an
obligation or for any other purpose) or transferred by a Participant or made subject to attachment or similar proceedings otherwise
than by will or by the applicable laws of descent and distribution, except to the extent the Participant designates one or more
beneficiaries on a Company-approved form who may exercise the Award or receive payment under the Award after the Participant’s
death. During a Participant’s lifetime, an Award may be exercised only by the Participant. Notwithstanding the foregoing
and to the extent permitted by Section 422 of the Code, the Committee, in its sole discretion, may permit a Participant to assign
or transfer an Award subject to such terms and conditions as the Committee shall specify.

 

Section
15. ADJUSTMENTS

 

		15.1	Adjustment
                                         of Shares

 

In
the event, at any time or from time to time, a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Company’s
corporate or capital structure results in

 

(a)
the outstanding shares of Common Stock, or any securities exchanged therefor or received in their place, being exchanged for a
different number or kind of securities of the Company or

 

(b)
new, different or additional securities of the Company or any other company being received by the holders of shares of Common
Stock,

 

then
the Committee shall make proportional adjustments in

 

(i) the maximum number and kind of securities available for issuance under the Plan;

 

    	11

    	 

    

 

(ii)
the maximum number and kind of securities issuable as Incentive Stock Options as set forth in subsection 4.2; and

 

(iii)
the number and kind of securities that are subject to any outstanding Award and the per share price of such securities, without
any change in the aggregate price to be paid therefor.

 

The
determination by the Committee, as to the terms of any of the foregoing adjustments shall be conclusive and binding. Notwithstanding
the foregoing, the issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, for cash or property, or for labor or services rendered, either upon direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, outstanding Awards. Also notwithstanding
the foregoing, a dissolution or liquidation of the Company or a Company Transaction shall not be governed by this subsection but
shall be governed by subsections 15.2 and 15.3, respectively.

 

		15.2	Dissolution
                                         or Liquidation

 

To
the extent not previously exercised or settled, and unless otherwise determined by the Committee in its sole discretion, Awards
shall terminate immediately prior to the dissolution or liquidation of the Company. To the extent a vesting condition, forfeiture
provision or repurchase right applicable to an Award has not been waived by the Committee, the Award shall be forfeited immediately
prior to the consummation of the dissolution or liquidation.

 

		15.3	Change
                                         in Control

 

Notwithstanding
any other provision of the Plan to the contrary, unless the Committee shall determine otherwise in the instrument evidencing the
Award or in a written employment, services or other agreement between the Participant and the Company or a Related Company, in
the event of a Change in Control:

 

(a)
All outstanding Awards, other than Performance Shares and Performance Units, shall become fully and immediately exercisable, and
all applicable deferral and restriction limitations or forfeiture provisions shall lapse, immediately prior to the Change in Control
and shall terminate at the effective time of the Change in Control; provided, however, that with respect to a Change in Control
that is a Company Transaction, such Awards shall become fully and immediately exercisable, and all applicable deferral and restriction
limitations or forfeiture provisions shall lapse, only if and to the extent such Awards are not converted, assumed or replaced
by the Successor Company. For the purposes of this paragraph, an Award shall be considered converted, assumed or replaced by the
Successor Company if following the Company Transaction the option or right confers the right to purchase or receive, for each
share of Common Stock subject to the Award immediately prior to the Company Transaction, the consideration (whether stock, cash
or other securities or property) received in the Company Transaction by holders of Common Stock for each share held on the effective
date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders
of a majority of the outstanding shares); provided, however, that if such consideration received in the Company Transaction is
not solely common stock of the Successor Company, the Committee may, with the consent of the Successor Company, provide for the
consideration to be received upon the exercise of the Option, for each share of Common Stock subject thereto, to be solely common
stock of the Successor Company substantially equal in fair market value to the per share consideration received by holders of
Common Stock in the Company Transaction. The determination of such substantial equality of value of consideration shall be made
by the Committee, and its determination shall be conclusive and binding.

 

    	12

    	 

    

 

(b)
All Performance Shares or Performance Units earned and outstanding as of the date the Change in Control is determined to have
occurred shall be payable in full at the target level in accordance with the payout schedule pursuant to the instrument evidencing
the Award. Any remaining Performance Shares or Performance Units (including any applicable performance period) for which the payout
level has not been determined shall be prorated at the target payout level up to and including the date of such Change in Control
and shall be payable in full at the target level in accordance with the payout schedule pursuant to the instrument evidencing
the Award. Any existing deferrals or other restrictions not waived by the Committee in its sole discretion shall remain in effect.

 

(c)
Notwithstanding paragraphs 15.3(a) and 15.3(b), the Committee, in its sole discretion, may (unless otherwise provided in the instrument
evidencing the Award or in a written employment, services or other agreement between the Participant and the Company or a Related
Company) instead provide in the event of a Change in Control that is a Company Transaction

 

(i)
for adjustments to the Plan and outstanding Awards as contemplated by subsection 15.1 or

 

(ii)
that a Participant’s outstanding Awards shall terminate upon or immediately prior to such Company Transaction and that such
Participant shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (x) the value of the per
share consideration received by holders of Common Stock in the Company Transaction, or, if the Company Transaction is a sale of
assets or otherwise does not result in direct receipt of consideration by holders of Common Stock, the value of the deemed per
share consideration received, in each case as determined by the Committee in its sole discretion, multiplied by the number of
shares of Common Stock subject to such outstanding Awards (to the extent then vested and exercisable or whether or not then vested
and exercisable, as determined by the Committee in its sole discretion) exceeds (y) if applicable, the respective aggregate exercise
price or grant price for such Awards.

 

		15.4	Further
                                         Adjustment of Awards

 

Subject
to subsections 15.2 and 15.3, the Committee shall have the discretion, exercisable at any time before a sale, merger, consolidation,
reorganization, liquidation, dissolution or change in control of the Company, as defined by the Committee, to take such further
action as it determines to be necessary or advisable with respect to Awards. Such authorized action may include (but shall not
be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or restrictions on, Awards so as
to provide for earlier, later, extended or additional time for exercise, lifting restrictions and other modifications, and the
Committee may take such actions with respect to all Participants, to certain categories of Participants or only to individual
Participants. The Committee may take such action before or after granting Awards to which the action relates and before or after
any public announcement with respect to such sale, merger, consolidation, reorganization, liquidation, dissolution or change in
control that is the reason for such action.

 

    	13

    	 

    

 

		15.5	No
                                         Limitations

 

The
grant of Awards shall in no way affect the Company’s right to adjust, reclassify, reorganize or otherwise change its capital
or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

		15.6	Fractional
                                         Shares

 

In
the event of any adjustment in the number of shares covered by any Award, each such Award shall cover only the number of full
shares resulting from such adjustment.

 

		15.7	Section
                                         409A of the Code

 

Notwithstanding
anything in this Plan to the contrary,

 

(a)
any adjustments made pursuant to this Section 15 or any other amendments to Awards that are considered “deferred compensation”
within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Section 409A of the Code and

 

(b)
any adjustments made pursuant to this Section 15 or any other amendments to Awards that are not considered “deferred compensation”
subject to Section 409A of the Code

 

shall
be made in such a manner as to ensure that after such adjustment or amendment the Awards either

 

(i)
continue not to be subject to Section 409A of the Code or

 

(ii)
comply with the requirements of Section 409A of the Code.

 

Section
16. MARKET STANDOFF

 

In
the event of an underwritten public offering by the Company of its equity securities pursuant to an effective registration statement
filed under the Securities Act, no person may sell, make any short sale of, loan, hypothecate, pledge, grant any option for the
purchase of, or otherwise dispose of or transfer for value or otherwise agree to engage in any of the foregoing transactions with
respect to any shares issued pursuant to an Award granted under the Plan without the prior written consent of the Company or its
underwriters. Such limitations shall be in effect for such period of time as may be requested by the Company or such underwriters;
provided, however, that in no event shall such period exceed

 

(a)
180 days after the effective date of the registration statement for such public offering or

 

(b)
such longer period requested by the underwriter as is necessary to comply with regulatory restrictions on the publication of research
reports (including, but not limited to, NYSE Rule 472 or NASD Conduct Rule 2711).

 

In
the event of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting
the Company’s outstanding Common Stock effected as a class without the Company’s receipt of consideration, any new,
substituted or additional securities distributed with respect to any shares issued as or pursuant to an Award under the Plan shall
be immediately subject to the provisions of this Section 16, to the same extent such shares are at such time covered by such provisions.
In order to enforce the limitations of this Section 16, the Company may impose stop-transfer instructions with respect to the
purchased shares until the end of the applicable standoff period.

 

    	14

    	 

    

 

Section
17. AMENDMENT AND TERMINATION

 

		17.1	Amendment,
                                         Suspension or Termination

 

The
Board or the Compensation Committee may amend, suspend or terminate the Plan or any portion of the Plan at any time and in such
respects as it shall deem advisable; provided, however, that, to the extent required by applicable law, regulation or stock exchange
rule, stockholder approval shall be required for any amendment to the Plan; and provided, further, that any amendment that requires
stockholder approval may be made only by the Board and not by the Compensation Committee. Subject to subsection 17.3, the Committee
may amend the terms of any outstanding Award, prospectively or retroactively.

 

		17.2	Term
                                         of the Plan

 

Unless
sooner terminated as provided herein, the Plan shall terminate 10 years from the Effective Date. After the Plan is terminated,
no future Awards may be granted, but Awards previously granted shall remain outstanding in accordance with their applicable terms
and conditions and the Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted
more than 10 years after the later of:

 

(a)
the adoption of the Plan by the Board and

 

(b)
the adoption by the Board of any amendment to the Plan that constitutes the adoption of a new plan for purposes of Section 422
of the Code.

 

		17.3	Consent
                                         of Participant

 

The
amendment, suspension or termination of the Plan or a portion thereof or the amendment of an outstanding Award shall not, without
the Participant’s consent, materially adversely affect any rights under any Award theretofore granted to a Participant under
the Plan. Any change or adjustment to an outstanding Incentive Stock Option shall not, without the consent of the Participant,
be made in a manner so as to constitute a “modification” that would cause such Incentive Stock Option to fail to continue
to qualify as an Incentive Stock Option. Notwithstanding the foregoing, any adjustments made pursuant to Section 15 shall not
be subject to these restrictions.

 

Section
18. GENERAL

 

		18.1	No
                                         Individual Rights

 

No
individual or Eligible Person shall have any claim to be granted any Award under the Plan, and the Company has no obligation for
uniformity of treatment of Eligible Persons or Participants under the Plan. Furthermore, nothing in the Plan or any Award granted
under the Plan shall be deemed to constitute an employment contract or confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way
the right of the Company or any Related Company to terminate a Participant’s employment or other relationship at any time,
with or without cause.

 

    	15

    	 

    

 

		18.2	Issuance
                                         of Shares

 

Notwithstanding
any other provision of the Plan, the Company shall have no obligation to issue or deliver any shares of Common Stock under the
Plan or make any other distribution of benefits under the Plan unless, in the opinion of the Company’s counsel, such issuance,
delivery or distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities
Act or the laws of any state or foreign jurisdiction) and the applicable requirements of any securities exchange or similar entity.
The Company shall be under no obligation to any Participant to register for offering or resale or to qualify for exemption under
the Securities Act, or to register or qualify under the laws of any state or foreign jurisdiction, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, the Plan, or to continue in effect any such registrations
or qualifications if made. As a condition to the exercise of an Option or any other receipt of Common Stock pursuant to an Award
under the Plan, the Company may require:

 

(a)
the Participant to represent and warrant at the time of any such exercise or receipt that such shares are being purchased or received
only for the Participant’s own account and without any present intention to sell or distribute such shares and

 

(b)
such other action or agreement by the Participant as may from time to time be necessary to comply with the federal, state and
foreign securities laws.

 

At
the option of the Company, a stop-transfer order against any such shares may be placed on the official stock books and records
of the Company, and a legend indicating that such shares may not be pledged, sold or otherwise transferred, unless an opinion
of counsel (satisfactory to the Company, in its sole discretion) is provided stating that such transfer is not in violation of
any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The Committee may
also require the Participant to execute and deliver to the Company a purchase agreement or such other agreement as may be in use
by the Company at such time that describes certain terms and conditions applicable to the shares. To the extent the Plan or any
instrument evidencing an Award provides for issuance of stock certificates to reflect the issuance of shares of Common Stock,
the issuance may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the applicable rules
of any stock exchange.

 

		18.3	Indemnification

 

Each
person who is or shall have been a member of the Board, or a committee appointed by the Board, or an officer of the Company to
whom authority was delegated in accordance with Section 3, shall be indemnified and held harmless by the Company against and from
any loss, cost, liability or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting
from any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by reason
of any action taken or failure to act under the Plan and against and from any and all amounts paid by such person in settlement
thereof, with the Company’s approval, or paid by such person in satisfaction of any judgment in any such claim, action,
suit or proceeding against such person; provided, however, that such person shall give the Company an opportunity, at its own
expense, to handle and defend the same before such person undertakes to handle and defend it on such person’s own behalf.
This duty to indemnify shall not apply to the extent that:

 

(a)
such loss, cost, liability or expense is a result of such person’s own willful misconduct or

 

(b)
such indemnification is expressly prohibited by statute.

 

    	16

    	 

    

 

The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such person may be entitled
under the Company’s certificate of incorporation or bylaws, as a matter of law, or otherwise, or of any power that the Company
may have to indemnify or hold harmless.

 

		18.4	No
                                         Rights as a Stockholder

 

Unless
otherwise provided by the Committee or in the instrument evidencing the Award or in a written employment, services or other agreement,
no Award, other than a Stock Award, shall entitle the Participant to any cash dividend, voting or other right of a stockholder
unless and until the date of issuance under the Plan of the shares that are the subject of such Award.

 

		18.5	Compliance
                                         with Laws and Regulations

 

In
interpreting and applying the provisions of the Plan, any Option granted as an Incentive Stock Option pursuant to the Plan shall,
to the extent permitted by law, be construed as an “incentive stock option” within the meaning of Section 422 of the
Code. Any Award granted pursuant to the Plan is intended to comply with the requirements of Section 409A of the Code, including
any applicable regulations and guidance issued thereunder, and including transition guidance, to the extent Section 409A of the
Code is applicable thereto, and the terms of the Plan and any Award granted under the Plan shall be interpreted, operated and
administered in a manner consistent with this intention to the extent the Committee deems necessary or advisable to comply with
Section 409A of the Code and any official guidance issued thereunder. Any payment or distribution that is to be made under the
Plan (or pursuant to an Award under the Plan) to a Participant who is a “specified employee” of the Company within
the meaning of that term under Section 409A of the Code and as determined by the Committee, on account of a “separation
from service” within the meaning of that term under Section 409A of the Code, may not be made before the date which is six
months after the date of such “separation from service” unless the payment or distribution is exempt from the application
of Section 409A of the Code by reason of the short-term deferral exemption or otherwise. Notwithstanding any other provision in
the Plan, the Committee, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not
be required, to unilaterally amend or modify the Plan and any Award granted under the Plan so that the Award qualifies for exemption
from or complies with Section 409A of the Code; provided, however, that the Committee makes no representations that Awards granted
under the Plan shall be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A
of the Code from applying to Awards granted under the Plan.

 

		18.6	Participants
                                         in Other Countries or Jurisdictions

 

Without
amending the Plan, the Committee may grant Awards to Eligible Persons who are foreign nationals on such terms and conditions different
from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement
of the purposes of the Plan and shall have the authority to adopt such modifications, procedures, subplans and the like as may
be necessary or desirable to comply with provisions of the laws or regulations of other countries or jurisdictions in which the
Company or any Related Company may operate or have employees to ensure the viability of the benefits from Awards granted to Participants
employed in such countries or jurisdictions, meet the requirements that permit the Plan to operate in a qualified or tax-efficient
manner, comply with applicable foreign laws or regulations and meet the objectives of the Plan.

 

    	17

    	 

    

 

		18.7	No
                                         Trust or Fund

 

The
Plan is intended to constitute an “unfunded” plan. Nothing contained herein shall require the Company to segregate
any monies or other property, or shares of Common Stock, or to create any trusts, or to make any special deposits for any immediate
or deferred amounts payable to any Participant, and no Participant shall have any rights that are greater than those of a general
unsecured creditor of the Company.

 

		18.8	Successors

 

All
obligations of the Company under the Plan with respect to Awards shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all the business and/or assets of the Company.

 

		18.9	Severability

 

If
any provision of the Plan or any Award is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any
person, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed
or deemed amended to conform to applicable laws, or, if it cannot be so construed or deemed amended without, in the Committee’s
determination, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
person or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.

 

		18.10	Choice
                                         of Law and Venue

 

The
Plan, all Awards granted thereunder and all determinations made and actions taken pursuant hereto, to the extent not otherwise
governed by the laws of the United States, shall be governed by the laws of the State of Nevada without giving effect to principles
of conflicts of law. Participants irrevocably consent to the nonexclusive jurisdiction and venue of the state and federal courts
located in the State of Nevada.

 

		18.11	Legal
                                         Requirements

 

The
granting of Awards and the issuance of shares of Common Stock under the Plan are subject to all applicable laws, rules and regulations
and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

Section
19. EFFECTIVE DATE

 

The
effective date (the “Effective Date”) is the date on which the Plan is adopted by the Board. If the stockholders of
the Company do not approve the Plan within 12 months after the Board’s adoption of the Plan, any Incentive Stock Options
granted under the Plan will be treated as Nonqualified Stock Options.

 

    	18

    	 

    

 

APPENDIX
A

 

DEFINITIONS

 

“Acquired
Entity” means any entity acquired by the Company or a Related Company or with which the Company or a Related Company merges
or combines.

 

“Award”
means any Option, Stock Appreciation Right, Stock Award, Restricted Stock, Stock Unit, Performance Share, Performance Unit, or
other incentive payable in shares of Common Stock as may be designated by the Committee from time to time.

 

“Board”
means the Board of Directors of the Company.

 

“Cause”
means, unless otherwise defined in the instrument evidencing an Award or in a written employment, services or other agreement
between the Participant and the Company or a Related Company, dishonesty, fraud, serious or willful misconduct, unauthorized use
or disclosure of confidential information or trade secrets, or conduct prohibited by law (except minor violations), in each case
as determined by the Company’s chief human resources officer or other person performing that function or, in the case of
directors and executive officers, the Committee, whose determination shall be conclusive and binding.

 

“Change
in Control” means, unless the Committee determines otherwise with respect to an Award at the time the Award is granted or
unless otherwise defined for purposes of an Award in a written employment, services or other agreement between the Participant
and the Company or a Related Company, the occurrence of any of the following events:

 

(a)
An acquisition by any individual, entity or group, within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than
fifty percent (50%) of either:

 

(i)
the then outstanding shares of Common Stock of the Company (the “Outstanding Common Stock”) or

 

(ii)
the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election
of directors (the “Outstanding Voting Securities”);

 

excluding,
however, the following:

 

(iii)
any acquisition directly from the Company, other than an acquisition by virtue of the exercise, exchange or conversion of any
Convertible Securities unless such securities were themselves acquired directly from the Company,

 

(iv)
any acquisition by the Company;

 

(v)
any acquisition by any Person pursuant to a transaction which complies with clauses (b)(i), (b)(ii) and (b)(iii) of the definition
of Company Transaction; or

 

    	19

    	 

    

 

(b)
Within any period of 24 consecutive months, a change in the composition of the Board such that the individuals who, immediately
prior to such period, constituted the Board (such Board shall be hereinafter referred to as the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, for purposes hereof, that any individual
who becomes a member of the Board during such period, whose election, or nomination for election by the Company’s stockholders,
was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of
the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of
either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board
shall not be so considered as a member of the Incumbent Board; or

 

(c)
A Company Transaction; or

 

(d)
The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, other than to an entity
pursuant to a transaction which would comply with clauses (1), (2) and (3) of the definition of “Company Transaction”,
assuming for this purpose that such transaction were a Company Transaction.

 

For
purposes of the definition of “Change of Control” and “Company Transaction”, a series of transactions
undertaken with a common purpose shall be treated as a single transaction that begins at the consummation of the first transaction
in the series and ends at the consummation of the last transaction in the series.

 

“Company
Transaction” means the consummation of

 

(a)
a reorganization, merger or consolidation of the Company or

 

(b)
the sale or other disposition of all or substantially all of the assets of the Company and its direct and indirect subsidiaries
taken as a whole, except in each case a transaction pursuant to which

 

(i)
all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Common
Stock and Outstanding Voting Securities immediately prior to such transaction will beneficially own, directly or indirectly, more
than sixty percent (60%) of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such
transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets, either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such transaction, of the Outstanding Common Stock and Outstanding Voting Securities,
as the case may be,

 

(ii)
no person (other than the Company) will beneficially own, directly or indirectly, more than twenty-five percent (25%) of, respectively,
the outstanding shares of common stock of the Company resulting from such transaction or the combined voting power of the outstanding
voting securities of such Company entitled to vote generally in the election of directors, except to the extent that such ownership
existed with respect to the Company prior to the transaction, and

 

    	20

    	 

    

 

(iii)
individuals who were members of the Board immediately prior to the approval by the stockholders of the Company of such transaction
will constitute at least a majority of the members of the board of directors of the Company resulting from such transaction.

 

“Convertible
Security” means any security convertible into or exchangeable for shares of Common Stock of the Company, or any option,
warrant or other right to acquire shares of Common Stock of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Committee”
has the meaning set forth in subsection 3.2.

 

“Common
Stock” means the common stock of the Company.

 

“Company”
means RX Safes, Inc., a Nevada corporation

 

“Compensation
Committee” means the Compensation Committee (if any) of the Board.

 

“Disability”
means, unless otherwise defined by the Committee for purposes of the Plan or in the instrument evidencing an Award or in a written
employment, services or other agreement between the Participant and the Company or a Related Company, a mental or physical impairment
of the Participant that is expected to result in death or that has lasted or is expected to last for a continuous period of 12
months or more and that causes the Participant to be unable to perform his or her material duties for the Company or a Related
Company and to be engaged in any substantial gainful activity, in each case as determined by the Company’s chief human resources
officer or other person performing that function or, in the case of directors and executive officers, the Committee, whose determination
shall be conclusive and binding.

 

“Effective
Date” has the meaning set forth in Section 19.

 

“Eligible
Person” means any person eligible to receive an Award as set forth in Section 5.

 

“Entity”
means any individual, entity or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act).

 

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

 

“Fair
Market Value” means the closing price for the Common Stock on any given date during regular trading, or if not trading on
that date, such price on the last preceding date on which the Common Stock was traded, unless determined otherwise by the Committee
using such methods or procedures as it may establish.

 

“Grant
Date” means the later of:

 

(c)
the date on which the Committee completes the corporate action authorizing the grant of an Award or such later date specified
by the Committee and

 

(d)
the date on which all conditions precedent to an Award have been satisfied, provided that conditions to the exercisability or
vesting of Awards shall not defer the Grant Date.

 

    	21

    	 

    

 

“Incentive
Stock Option” means an Option granted with the intention that it qualify as an “incentive stock option” as that
term is defined for purposes of Section 422 of the Code or any successor provision.

 

“including”,
“include”, “includes” and words of similar import shall be construed broadly as if followed by the phrase
“without limitation”.

 

“Nonqualified
Stock Option” means an Option other than an Incentive Stock Option.

 

“Option”
means a right to purchase Common Stock granted under Section 7.

 

“Option
Expiration Date” means the last day of the maximum term of an Option.

 

“Outstanding
Company Common Stock” has the meaning set forth in the definition of “Change in Control.”

 

“Outstanding
Company Voting Securities” has the meaning set forth in the definition of “Change in Control.”

 

“Parent
Company” means a company or other entity which as a result of a Company Transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries.

 

“Participant”
means any Eligible Person to whom an Award is granted.

 

“Performance
Award” means an Award of Performance Shares or Performance Units granted under Section 11.

 

“Performance
Share” means an Award of units denominated in shares of Common Stock granted under subsection 11.1.

 

“Performance
Unit” means an Award of units denominated in cash or property other than shares of Common Stock granted under subsection
11.2.

 

“Plan”
means this RX Safes, Inc. 2015 Incentive Plan.

 

‘‘Related
Company” means any entity that is directly or indirectly controlled by, in control of or under common control with the Company.

 

“Restricted
Stock” means an Award of shares of Common Stock granted under Section 10. , the rights of ownership of which are subject
to restrictions prescribed by the Committee.

 

“Retirement”
means, unless otherwise defined in the instrument evidencing the Award or in a written employment, services or other agreement
between the Participant and the Company or a Related Company, retirement as defined for purposes of the Plan by the Committee
or the Company’s chief human resources officer or other person performing that function or, if not so defined, means Termination
of Service on or after the date the Participant reaches “normal retirement age” as that term is defined in Section
411(a)(8) of the Code.

 

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

 

    	22

    	 

    

 

“Stock
Appreciation Right” or “SAR” means a right granted under subsection 9.1 to receive the excess of the Fair Market
Value of a specified number of shares of Common Stock over the grant price.

 

“Stock
Award” means an Award of shares of Common Stock granted under Section 10, the rights of ownership of which are not subject
to restrictions prescribed by the Committee.

 

“Stock
Unit” means an Award denominated in units of Common Stock granted under Section 10.

 

“Substitute
Awards” means Awards granted or shares of Common Stock issued by the Company in substitution or exchange for awards previously
granted by an Acquired Entity.

 

“Successor
Company” means the surviving company, the successor company or Parent Company, as applicable, in connection with a Company
Transaction.

 

“Termination
of Service” means a termination of employment or service relationship with the Company or a Related Company for any reason,
whether voluntary or involuntary, including by reason of death, Disability or Retirement. Any question as to whether and when
there has been a Termination of Service for the purposes of an Award and the cause of such Termination of Service shall be determined
by the Company’s chief human resources officer or other person performing that function or, with respect to directors and
executive officers, by the Committee, whose determination shall be conclusive and binding. Transfer of a Participant’s employment
or service relationship between the Company and any Related Company shall not be considered a Termination of Service for purposes
of an Award. Unless the Committee determines otherwise, a Termination of Service shall be deemed to occur if the Participant’s
employment or service relationship is with an entity that has ceased to be a Related Company. A Participant’s change in
status from an employee of the Company or a Related Company to a consultant, advisor or independent contractor of the Company
or a Related Company or a change in status from a consultant, advisor or independent contractor of the Company or a Related Company
to an employee of the Company or a Related Company, shall not be considered a Termination of Service.

 

“Vesting
Commencement Date” means the Grant Date or such other date selected by the Committee as the date from which an Award begins
to vest.

 

    	23

    	 

    

 

PLAN
ADOPTION AND AMENDMENTS/ADJUSTMENTS

SUMMARY
PAGE

 

	 	Date of Board
 Action
	 	 	 	Action	 	 	 	Section/Effect
 of Amendment
	 	 	 	Date
of Shareholder

 Approval
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	                               ,
                                         2015	 	 	 	Initial Plan Adoption	 	 	 	 	 	 	 	                           ,
                                         2015	 

 

 

24

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