Document:

PATENT COLLATERAL ASSIGNMENT AND SECURITY
AGREEMENT

 

THIS PATENT COLLATERAL ASSIGNMENT AND SECURITY
AGREEMENT (this “Agreement”), dated as of March __, 2013, is by Xzeres Corp.,
a Nevada corporation (“Debtor”), with its chief executive office at 9025 SW Hillman Ct., Suite 3126, Wilsonville,
Oregon 97070, in favor of RENEWABLE POWER RESOURCES, LLC, a Delaware limited liability company, located at 430 East 56th
Street, 4G, New York, New York 10022 (together with its successors and assigns, “Lender”).

W I T N E
S S E T H :

WHEREAS, Debtor has adopted, used and is
using, and is the owner of the entire right, title, and interest in and to the patents and applications therefor described in Exhibit
A hereto and made a part hereof;

WHEREAS, Lender entered into or are about
to enter into financing arrangements pursuant to which Lender may make loans and advances and provide other financial accommodations
to Debtor and XZERES ENERGY SERVICES CORP., a Nevada corporation (“Energy” and, collectively with Debtor, collectively,
the “Borrowers”), pursuant to the Loan and Security Agreement, dated on or about the date hereof, by and among Borrowers
and Lender (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced,
the “Loan Agreement”) and the other agreements, documents and instruments referred to therein or at any time executed
and/or delivered in connection therewith or related thereto, including, but not limited to, this Agreement (all of the foregoing,
together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced, being collectively referred to herein as the “Loan Documents”);

WHEREAS, in order to induce Lender to enter
into the Loan Agreement and the other Loan Documents and to make loans and advances and provide other financial accommodations
to Borrowers pursuant thereto, Debtor has agreed to secure the payment and performance of the Obligations (as defined in the Loan
Agreement) and to accomplish same by granting to Lender certain collateral security as set forth herein.

NOW, THEREFORE, in consideration of the
premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Debtor hereby
agrees as follows:

1. Grant of Security Interest. As
collateral security for the prompt performance, observance and payment in full of all of the Obligations, Debtor hereby grants
to Lender a continuing security interest in and a general lien upon, and a conditional assignment of, the following (being collectively
referred to herein as the “Collateral”): (a) all of Debtor’s now existing or hereafter acquired right, title,
and interest in and to all of Debtor’s patents and all applications for registration, registrations and recordings relating
to the foregoing as may at any time be filed in the United States Patent and Trademark Office or in any similar office or agency
in the United States of America, any State or Province thereof, any political subdivision thereof or in any other country, including,
without limitation, the patents and applications described in Exhibit A hereto, together with all rights and privileges arising
under applicable law with respect

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to Debtor’s use of any patents, and all reissues, divisions,
continuations and renewals thereof (all of the foregoing being collectively referred to herein as the “Patents”); (b)
all present and future license and distribution agreements (subject to the rights of the licensors therein) pertaining to the Patents,
(c) all income, fees, royalties and other payments at any time due or payable with respect thereto, including, without limitation,
payments under all licenses at any time entered into in connection therewith; (d) the right to sue for past, present and future
infringements thereof; (e) all rights corresponding thereto throughout the world; and (f) any and all other proceeds of any of
the foregoing, including, without limitation, all damages and payments or claims by Debtor against third parties for past or future
infringement of the Patents.

2. Obligations Secured. The security
interest, lien and other interests granted to Lender pursuant to this Agreement shall secure the prompt performance, observance
and payment in full of any and all of the Obligations.

3. Representations, Warranties and Covenants.
Debtor hereby represents, warrants and covenants with and to Lender the following (all of such representations, warranties and
covenants being continuing so long as any of the Obligations are outstanding):

(a)               
Debtor shall pay and perform all of the Obligations according to their terms.

(b)              
All of the existing Collateral is valid and subsisting in full force and effect, and Debtor owns the sole, full and clear
title thereto, and the right and power to grant the security interest and conditional assignment granted hereunder. Debtor shall,
at Debtor’s expense, perform all acts and execute all documents necessary to maintain the existence of the Collateral consisting
of registered Patents as registered patents and to maintain the existence of all of the Collateral as valid and subsisting, including,
without limitation, the filing of any renewal affidavits and applications. The Collateral is not subject to any liens, claims,
mortgages, assignments, licenses, security interests or encumbrances of any nature whatsoever, except: (i) the security interests
granted hereunder and pursuant to the Loan Agreement, (ii) the security interests permitted under the Loan Agreement, and (iii)
the licenses permitted under Section 3(e) below.

(c)               
Debtor shall not assign, sell, mortgage, lease, transfer, pledge, hypothecate, grant a security interest in or lien upon,
encumber, grant an exclusive or non-exclusive license relating to the Collateral, or otherwise dispose of any of the Collateral
or any of the Patents, in each case without the prior written consent of Lender, except as otherwise permitted herein or in the
Loan Agreement. Nothing in this Agreement shall be deemed a consent by Lender to any such action, except as such action is expressly
permitted hereunder.

(d)              
Debtor shall, at Debtor’s expense, promptly perform all acts and execute all documents reasonably requested at any
time by Lender to evidence, perfect, maintain, record or enforce the security interest in and conditional assignment of the Collateral
granted hereunder or to otherwise further the provisions of this Agreement. Debtor hereby authorizes Lender to execute and file
one or more financing statements (or similar documents) with respect to the Collateral. Debtor further authorizes Lender to have
this Agreement or any other similar security agreement filed with the United States Commissioner of Patents and Trademarks or any
other appropriate federal, state or government office.

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(e)               
 As of the date hereof Debtor does not have any Patents registered, or subject to pending applications, in the United States
Patent and Trademark Office or any similar office or agency in the United States of America, any State or Province thereof, or
any political subdivision thereof, other than those described in Exhibit A hereto and has not granted any licenses with respect
thereto other than as set forth in Exhibit B hereto.

(f)               
Debtor shall, concurrently with the execution and delivery of this Agreement, execute and deliver to Lender five (5) originals
of a Special Power of Attorney in the form of Exhibit C annexed hereto for the implementation of the assignment, sale or other
disposition of the Collateral pursuant to Lender’s exercise of the rights and remedies granted to Lender hereunder.

(g)              
Lender may, in its discretion, pay any amount or do any act which Debtor fails to pay or do as required hereunder or as
requested by Lender to preserve, defend, protect, maintain, record or enforce the Obligations, the Collateral, or the security
interest and conditional assignment granted hereunder, including, but not limited to, all filing or recording fees, court costs,
collection charges, reasonable attorneys’ fees and legal expenses. Debtor shall be liable to Lender for any such payment,
which payment shall be deemed an advance by Lender to Debtor, shall be payable on demand together with interest at the rate then
applicable to the Obligations set forth in the Loan Agreement and shall be part of the Obligations secured hereby.

(h)              
Debtor shall not file any application for the registration of a Patent with the United States Patent and Trademark Office
or any similar office or agency in the United States of America, any State or Province thereof, any political subdivision thereof
or in any other country unless Debtor has given Lender thirty (30) days prior written notice of such action. If, after the date
hereof, Debtor shall (i) obtain any registered patent, including any reissue, division, continuation, continuation in part, or
extension of any patent, file any patent application, including any application for reissue or extension of any patent, or any
divisional, continuation, or continuation in part application in the United States Patent and Trademark Office or in any similar
office or agency in the United States of America, any State or Province thereof, any political subdivision thereof or in any other
country, or (ii) become the owner of any patent or patent applications used in the United States of America, or any State or Province
thereof, political subdivision thereof or in any other country, the provisions of Section 1 hereof shall automatically apply thereto.
Upon the request of Lender, Debtor shall promptly execute and deliver to Lender any and all assignments, agreements, instruments,
documents and such other papers as may be requested by Lender to evidence the security interest in and conditional assignment of
such Patent in favor of Lender.

(i)                
Debtor has not abandoned any of the Patents and Debtor will not do any act, nor omit to do any act, whereby the Patents
may become abandoned, invalidated, unenforceable, avoided, or avoidable. Debtor shall notify Lender immediately if it knows or
has reason to know of any reason why any application, registration, or recording with respect to the Patents may become abandoned,
canceled, invalidated, avoided, or avoidable.

(j)                
Debtor shall render any assistance, as Lender shall determine is necessary, to Lender in any proceeding before the United
States Patent and Trademark Office, any federal or state court, or any similar office or agency in the United States of America,
any State or Province thereof, any political subdivision thereof or in any other country, to maintain such

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application and registration of the Patents as Debtor’s
exclusive property and to protect Lender’s interest therein, including, without limitation, filing of renewals, affidavits
of use, affidavits of incontestability and opposition, interference, and cancellation proceedings.

(k)              
(i) No material infringement or unauthorized use presently is being made of any of the Patents that would adversely affect
in any material respect the fair market value of the Collateral or the benefits of this Agreement granted to Lender, including,
without limitation, the validity, priority or perfection of the security interest granted herein or the remedies of Lender hereunder
and (ii) there has been no judgment holding any of the Patents invalid or unenforceable, in whole or in part, nor is the validity
or enforceability of any of the Patents presently being questioned in any litigation or proceeding to which Debtor is a party.
Debtor shall promptly notify Lender if Debtor (or any affiliate or subsidiary thereof) learns of any use by any person of any process
or product which infringes on any Patent or is likely to cause confusion with any Patent. If requested by Lender, Debtor, at Debtor’s
expense, shall join with Lender in such action as Lender, in Lender’s discretion, may deem advisable for the protection of
Lender’s interest in and to the Patents.

(l)                
Debtor assumes all responsibility and liability arising from the use of the Patents and Debtor hereby indemnifies and holds
Lender harmless from and against any claim, suit, loss, damage, or expense (including reasonable attorneys’ fees and legal
expenses) arising out of any alleged defect in any product manufactured, promoted, or sold by Debtor (or any affiliate or subsidiary
thereof) in connection with any Patent or out of the manufacture, promotion, labeling, sale or advertisement of any such product
by Debtor (or any affiliate or subsidiary thereof). The foregoing indemnity shall survive the payment of the Obligations, the termination
of this Agreement and the termination or non-renewal of the Loan Agreement.

(m)            
Debtor shall promptly pay Lender for any and all expenditures made by Lender pursuant to the provisions of this Agreement
or for the defense, protection or enforcement of the Obligations, the Collateral, or the security interests and conditional assignment
granted hereunder, including, but not limited to, all filing or recording fees, court costs, collection charges, travel expenses,
and reasonable attorneys’ fees and legal expenses. Such expenditures shall be payable on demand, together with interest at
the rate then applicable to the Obligations set forth in the Loan Documents and shall be part of the Obligations secured hereby.

4. Events of Default. The occurrence
or existence of any Event of Default under the Loan Agreement and the other Loan Documents is referred to herein individually as
an “Event of Default”, and collectively as “Events of Default”.

5. Rights and Remedies. At any time
an Event of Default exists or has occurred and is continuing, in addition to all other rights and remedies of Lender, whether provided
under this Agreement, the Loan Agreement, the other Loan Documents, applicable law or otherwise, Lender shall have the following
rights and remedies which may be exercised without notice to, or consent by, Debtor except as such notice or consent is expressly
provided for hereunder:

(a)               
Lender may require that neither Debtor nor any affiliate or subsidiary of Debtor make any use of the Patents for any purpose
whatsoever. Lender may make use of any Patents for the sale of goods, completion of work-in-process or rendering of services or

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otherwise in connection with enforcing any other security interest
granted to Lender by Debtor or any subsidiary or affiliate of Debtor or for such other reason as Lender may determine.

(b)              
Lender may grant such license or licenses relating to the Collateral for such term or terms, on such conditions, and in
such manner, as Lender shall in its discretion deem appropriate. Such license or licenses may be general, special or otherwise,
and may be granted on an exclusive or non-exclusive basis throughout all or any part of the United States of America, its territories
and possessions, and all foreign countries.

(c)               
Lender may assign, sell or otherwise dispose of the Collateral or any part thereof, either with or without special conditions
or stipulations except that if notice to Debtor of intended disposition of Collateral is required by law, the giving of five (5)
days prior written notice to Debtor of any proposed disposition shall be deemed reasonable notice thereof and Debtor waives any
other notice with respect thereto. Lender shall have the power to buy the Collateral or any part thereof, and Lender shall also
have the power to execute assurances and perform all other acts which Lender may, in its discretion, deem appropriate or proper
to complete such assignment, sale, or disposition. In any such event, Debtor shall be liable for any deficiency.

(d)              
In addition to the foregoing, in order to implement the assignment, sale, or other disposition of any of the Collateral
pursuant to the terms hereof, Lender may at any time execute and deliver on behalf of Debtor, pursuant to the authority granted
in the Powers of Attorney described in Section 3(f) hereof, one or more instruments of assignment of the Patents (or any application
for registration, registration, or recording relating thereto), in form suitable for filing, recording, or registration. Debtor
agrees to pay Lender on demand all costs incurred in any such transfer of the Collateral, including, but not limited to, any taxes,
fees, and reasonable attorneys’ fees and legal expenses. Debtor agrees that Lender has no obligation to preserve rights to
the Patents against any other parties.

(e)               
Lender may first apply the proceeds actually received from any such license, assignment, sale or other disposition of any
of the Collateral to the costs and expenses thereof, including, without limitation, reasonable attorneys’ fees and all legal,
travel and other expenses which may be incurred by Lender. Thereafter, Lender may apply any remaining proceeds to such of the Obligations
as Lender may in its discretion determine. Debtor shall remain liable to Lender for any of the Obligations remaining unpaid after
the application of such proceeds, and Debtor shall pay Lender on demand any such unpaid amount, together with interest at the rate
then applicable to the Obligations set forth in the Loan Agreement.

(f)               
Debtor shall supply to Lender or to Lender’s designee, Debtor’s knowledge and expertise relating to the manufacture,
sale and distribution of the products and services to which the Patents relate and Debtor’s customer lists and other records
relating to the Patents and the distribution thereof.

(g)              
Nothing contained herein shall be construed as requiring Lender to take any action at any time. All of Lender’s rights
and remedies, whether provided under this Agreement, the other Loan Documents, applicable law, or otherwise, shall be cumulative
and not exclusive and shall be enforceable alternatively, successively, or concurrently as Lender may deem expedient. No failure
or delay on the part of Lender in exercising any of its options, power

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or rights or partial or single exercise thereof, shall constitute
a waiver of such option, power or right.

6. Jury Trial Waiver; Other Waivers and
Consents; Governing Law.

(a)               
The validity, interpretation and enforcement of this Agreement and any dispute arising hereunder, whether in contract, tort,
equity or otherwise, shall be governed by the internal laws of the State of New York, but excluding any principles of conflicts
of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of
New York.

(b)              
Debtor irrevocably consents and submits to the non-exclusive jurisdiction of the state and federal courts located in the
state of New York, New York County, and waives any objection based on venue or forum non conveniens with respect
to any action instituted therein arising under this Agreement or any of the other Loan Documents or in any way connected with or
related or incidental to the dealings of the parties hereto in respect of this Agreement or any of the other Loan Documents or
the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and whether in contract, tort,
equity or otherwise, and agrees that any dispute with respect to any such matters shall be heard only in the courts described above
(provided that Lender shall have the right to bring any action or proceeding against Debtor or its property in the courts of any
other jurisdiction which Lender deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce its
rights against Debtor or its property).

(c)               
Debtor hereby waives personal service of any and all process upon it and consents that all such service of process may be
made by certified mail (return receipt requested) directed to its address set forth in the Loan Agreement and service so made shall
be deemed to be completed five (5) days after the same shall have been so deposited in the U.S. mails, or, at Lender’s option,
by service upon Debtor in any other manner provided under the rules of any such courts. Within thirty (30) days after such service,
Debtor shall appear in answer to such process, failing which Debtor shall be deemed in default and judgment may be entered by Lender
against Debtor for the amount of the claim and other relief requested.

(d)              
DEBTOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF DEBTOR AND LENDER
IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. DEBTOR HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT LENDER MAY FILE AN ORIGINAL
COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF DEBTOR TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY.

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(e)               
 Notwithstanding any other provision contained herein, Lender shall not have any liability to Debtor (whether in tort, contract,
equity or otherwise) for losses suffered by Debtor in connection with, arising out of, or in any way related to the transactions
or relationships contemplated by this Agreement, or any act, omission or event occurring in connection herewith, unless it is determined
by a final and non-appealable judgment or court order binding on Lender, that the losses were the result of acts or omissions constituting
gross negligence or willful misconduct by Lender. In any such litigation, Lender shall be entitled to the benefit of the rebuttable
presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Agreement
and the other Loan Documents.

7. Miscellaneous.

(a)               
All notices, requests other communications provided for hereunder shall be given in the form and manner and delivered to
Debtor and Lender at their respective addresses specified in the Loan Agreement, or, as to any party, at such other address as
shall be designated by such party in a written notice to the other party in accordance with the terms of the Loan Agreement. Notices
given in accordance with the Loan Agreement shall be deemed to satisfy all notice requirements under this Agreement.

(b)              
Capitalized terms used herein and not defined herein shall have the meanings specified in the Loan Agreement. All references
to the plural herein shall also mean the singular and to the singular shall also mean the plural. All references to Debtor or Lender
pursuant to the definitions set forth in the recitals hereto, or to any other person herein, shall include their respective successors
and assigns. The words “hereof,” “herein,” “hereunder,” “this Agreement” and words
of similar import when used in this Agreement shall refer to this Agreement as a whole and not any particular provision of this
Agreement and as this Agreement now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced. An Event of Default shall exist or continue or be continuing until such Event of Default is waived in accordance with
the terms of the Loan Agreement or is cured in a manner satisfactory to Lender. All references to the term “Person”
or “Persons” herein shall mean any individual, sole proprietorship, partnership, corporation (including, without limitation,
any corporation which elects subchapter S status under the Internal Revenue Code of 1986, as amended), limited liability company,
limited liability partnership, business trust, unincorporated association, joint stock company, trust, joint venture or other entity
or any government or any agency, instrumentality or political subdivision thereof.

(c)               
This Agreement, the other Loan Documents and any other document referred to herein or therein shall be binding upon Debtor
and its successors and assigns and inure to the benefit of and be enforceable by Lender and its successors and assigns.

(d)              
If any provision of this Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not
invalidate this Agreement as a whole, but this Agreement shall be construed as though it did not contain the particular provision
held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such
extent as shall be permitted by applicable law.

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(e)               
 Neither this Agreement nor any provision hereof shall be amended, modified, waived or discharged orally or by course of
conduct, but only by a written agreement signed by an authorized officer of each of Debtor and Lender. Lender shall not, by any
act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its rights, powers and/or remedies unless
such waiver shall be in writing and signed by an authorized officer of Lender. Any such waiver shall be enforceable only to the
extent specifically set forth therein. A waiver by Lender of any right, power and/or remedy on any one occasion shall not be construed
as a bar to or waiver of any such right, power and/or remedy which Lender would otherwise have on any future occasion, whether
similar in kind or otherwise.

(f)               
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by facsimile or other
electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this
Agreement. Any party delivering an executed counterpart of this Agreement by facsimile or other electronic method of transmission
shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or
binding effect of this Agreement.

 

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IN WITNESS WHEREOF, Debtor and Lender have
executed this Agreement as of the day and year first above written.

 

Xzeres Corp.,
as Debtor

 

By:

Name:

Title:

 

ACKNOWLEDGMENT OF GRANTOR

 

 

On this ____ day of March, 2013 before me
personally appeared ____________________, who proved to me on the basis of satisfactory evidence to be the person who executed
the foregoing agreement on behalf of Xzeres Corp., who being by me duly sworn did
depose and say that he is an authorized officer of said company, that the said instrument was signed on behalf of said company
as authorized by its Board of Directors and that he acknowledged said instrument to be the free act and deed of said company.

 

 

Notary Public

{seal}

 

 

 

 

 

 

 

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[SIGNATURES CONTINUED
FROM PREVIOUS PAGE]

 

 

 

RENEWABLE POWER RESOURCES, LLC,

as Lender

 

By:

Name:

Title:

 

 

    	10[Execution]

GUARANTEE

 

 

GUARANTEE dated
as of March __, 2013 (“Guarantee”) made by XZERES WIND EUROPE LIMITED (the “Guarantor”), in favor
of RENEWABLE POWER SOURCES, LLC, a Delaware limited liability company, as Lender (the “Lender”) under the Loan
Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to
the Loan and Security Agreement dated as of March __, 2013 (as the same may be amended, supplemented or otherwise modified from
time to time, the “Loan Agreement”) among XZERES CORP., a Nevada corporation (“Xzeres”),
and its wholly-owned subsidiary, XZERES ENERGY SERVICES CORP., a Nevada corporation (“Energy” and, collectively
with Xzeres, jointly and severally, “Borrower”), and Lender, the Lender has agreed to make extensions of credit to
the Borrower upon the terms and subject to the conditions set forth therein;

WHEREAS, the Guarantor
will derive substantial direct and indirect benefit from the making of the Loans; and

WHEREAS, in consideration
of the loan and advances to be made to Borrower, Guarantor has agreed to guarantee payment and performance of the Borrower’s
obligations under the Loan Agreement and the other Loan Documents;

NOW, THEREFORE, to
induce the Lender to make loans and extensions of credit to the Borrower under the Loan Agreement and for other consideration the
receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby agrees with the Lender as follows:

1.                 
Defined Terms. (a) Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have
the meanings given to them in the Loan Agreement.

(b)              
As used herein, “Obligations” shall mean all loans, advances, debts, expense reimbursement, fees, liabilities,
and obligations, for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance
is then required or contingent, or amounts are liquidated or determinable) owing by Borrower to Lender, of any kind or nature,
present or future, whether or not evidenced by any note, agreement or other instruments, whether arising under any of the Loan
Documents or under any other agreement between any Borrower and Lender, and all covenants and duties regarding such amounts. This
term includes all principal, interest (including interest accruing at the then applicable rate provided in the Loan Agreement after
the maturity of the Loans and interest accruing at the then applicable rate provided in the Loan Agreement after the filing of
any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for
post-filing or post-petition interest is allowed

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in such proceeding), Fees, Charges, expenses,
attorneys’ fees and any other sum chargeable to any Borrower under any of the Loan Documents, and all principal and interest
due in respect of the Loans and all obligations and liabilities of the Guarantor under this Guarantee.

(c)               
The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Guarantee shall refer to this Guarantee as a whole and not to any particular provision of this Guarantee, and section and
paragraph references are to this Guarantee unless otherwise specified.

(d)              
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

2.                 
Guarantee. (a) Guarantor hereby unconditionally and irrevocably guarantees to the Lender and its successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations.

(b)              
The Guarantor further agrees to pay any and all reasonable expenses (including, without limitation, all fees and disbursements
of counsel) which may be paid or incurred by the Lender in enforcing, or obtaining advice of counsel in respect of, any rights
with respect to, or collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against,
the Guarantor under this Guarantee.

(c)               
The Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of the
Guarantor hereunder without impairing this Guarantee or affecting the rights and remedies of the Lender hereunder.

(d)              
No payment or payments made by the Borrower, any other guarantor or any other Person or received or collected by the Lender
from the Borrower, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation
or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding any such payment or payments,
other than payments made by the Guarantor in respect of the Obligations or payments received or collected from the Guarantor in
respect of the Obligations, remain liable for the Obligations hereunder until the Obligations are indefeasibly paid in full.

(e)               
The Guarantor agrees that whenever, at any time, or from time to time, it shall make any payment to the Lender on account
of its liability hereunder, it will notify the Lender in writing that such payment is made under this Guarantee for such purpose.

3.                 
No Subrogation. Notwithstanding any payment or payments made by the Guarantor hereunder or any set-off or application
of funds of the Guarantor by the Lender, the Guarantor shall not be entitled to be subrogated to any of the rights of the Lender
against the Borrower or any other guarantor or any collateral security or guarantee or right of offset held by the Lender for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from any Borrower
or any other Person in respect of payments made by the Guarantor hereunder until all amounts owing to the Lender

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by the Borrower on account of the Obligations
are indefeasibly paid in full. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when
all of the Obligations shall not have been indefeasibly paid in full, such amount shall be held by the Guarantor in trust for the
Lender, segregated from other funds of the Guarantor and shall forthwith upon receipt by the Guarantor, be turned over to the Lender
in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Lender, if required), to be applied against
the Obligations, whether matured or unmatured, in such order as the Lender may elect.

4.                 
Amendments, etc. with respect to the Obligations; Waiver of Rights. The Guarantor shall remain obligated hereunder
notwithstanding that, without any reservation of rights against the Guarantor and without notice to or further assent by the Guarantor,
any demand for payment of any of the Obligations made by the Lender may be rescinded and any of the Obligations continued, and
the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Lender, and the Loan Agreement and the other Loan Documents and
any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole
or in part, as the Lender) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any
time held by the Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. The Lender
shall not have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations
or for this Guarantee or any property subject thereto. When making any demand hereunder against the Guarantor, the Lender may,
but shall be under no obligation to, make a similar demand on the Borrower or any other guarantor, and any failure by the Lender
to make any such demand or to collect any payments from the Borrower or any such other guarantor or any release of the Borrower
or such other or guarantor shall not relieve the Guarantor of the obligations or liabilities hereunder, and shall not impair or
affect the rights and remedies, express or implied, or as a matter of law, of the Lender against the Guarantor. For the purposes
hereof “demand” shall include the commencement and continuance of any legal proceedings.

5.                 
Guarantee Absolute and Unconditional. The Guarantor waives any and all notice of the creation, renewal, extension
or accrual of any of the Obligations and notice of or proof of reliance by the Lender upon this Guarantee or acceptance of this
Guarantee, and the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon this Guarantee; and all dealings between the Borrower and the Guarantor,
on the one hand, and the Lender on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance
upon this Guarantee. The Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment
to or upon the Borrower or the Guarantor with respect to the Obligations. The Guarantor understands and agrees that this Guarantee
shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity, regularity
or enforceability of the Loan Agreement, or any other Loan Document, any of the Obligations or any other collateral security therefor
or guarantee or right of offset with respect thereto at any time or from time

    	3

    	 

    

to time held by the Lender (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by
the Borrower against the Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower
or the Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for the
Obligations, or of the Guarantor under this Guarantee, in bankruptcy or in any other instance. When pursuing its rights and remedies
hereunder against any Guarantor, the Lender may, but shall be under no obligation to, pursue such rights and remedies as it may
have against the Borrower or any other Person or against any collateral security or guarantee for the Obligations or any right
of offset with respect thereto, and any failure by the Lender to pursue such other rights or remedies or to collect any payments
from the Borrower or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrower or any such other Person or any such collateral security, guarantee or right of
offset, shall not relieve the Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Lender against the Guarantor. This Guarantee shall remain in full force
and effect and be binding in accordance with and to the extent of its terms upon the Guarantor and the successors and assigns thereof,
and shall inure to the benefit of the Lender, and its successors, indorsees, transferees and assigns, until all the Obligations
and the obligations of the Guarantor under this Guarantee shall have been satisfied by indefeasible payment in full in cash.

6.                 
Reinstatement. This Guarantee shall continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Lender upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Borrower or the Guarantor, or upon or as a result
of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, any Borrower or the Guarantor
or any substantial part of its property, or otherwise, all as though such payments had not been made.

7.                 
Payments. The Guarantor hereby guarantees that payments hereunder will be paid to the Lender without set-off or counterclaim
in U.S. Dollars at the office of the Lender located at 430 East 56th Street, 4G, New York, New York 10022.

8.                 
Representations and Warranties. The Guarantor hereby represents and warrants that:

(a)               
(i) it is a private limited company duly organized, validly existing and in good standing under the laws of the jurisdiction
of its formation and has the power and authority and the legal right to own and operate its property, to lease the property it
operates and to conduct the business in which it is currently engaged, and (ii) it has the power and authority and the legal right
and capacity to execute and deliver, and to perform its obligations under, this Guarantee and has taken all necessary action to
authorize its execution, delivery and performance of this Guarantee;

(b)              
this Guarantee constitutes a legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms,
except as affected by bankruptcy,

    	4

    	 

    

insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally, general equitable
principles and an implied covenant of good faith and fair dealing;

(c)               
the execution, delivery and performance of this Guarantee will not violate any provision of any Requirement of Law or Contractual
Obligation of the Guarantor and will not result in or require the creation or imposition of any Lien on any of the properties or
revenues of the Guarantor pursuant to any Requirement of Law or Contractual Obligation of the Guarantor;

(d)              
no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental Authority
and no consent of any other Person (including, any shareholder or creditor of the Guarantor) is required in connection with the
execution, delivery, performance, validity or enforceability of this Guarantee;

(e)               
no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge
of the Guarantor, threatened by or against the Guarantor or against any of its properties or revenues (i) with respect to this
Guarantee, or any of the transactions contemplated hereby or (ii) which could have a material adverse effect on the business, property
or financial or other condition of the Guarantor;

(f)               
the statements concerning the financial condition and net worth of such Guarantor previously provided to the Lender are
true and correct; there is no event, fact, circumstance or condition known to such Guarantor which is inconsistent with any such
statements or is required to be disclosed in order to cause such statements not to be misleading.

The Guarantor agrees
that the foregoing representations and warranties shall be deemed to have been made by the Guarantor on the date of each borrowing
by the Borrower under the Loan Agreement on and as of such date of borrowing as though made hereunder on and as of such date.

9.                 
Notices. All notices, requests and demands to or upon the Lender or the Guarantor to be effective shall be in writing
(except as expressly provided herein) at their respective addresses set forth below or at such other address as may hereafter be
specified in a notice designated as a notice of change of address under this Section 9. Any notice or request required to be given
hereunder shall be given by (a) hand delivery, (b) overnight courier, (c) registered or certified mail, return receipt requested,
or (d) facsimile to the number set out below (or such other number as may hereafter be specified in a notice designated as a notice
of change of address) with electronic confirmation of its receipt. Any notice or request required to be given hereunder shall be
deemed given on the earlier of (i) actual receipt thereof, and (ii) (A) one (1) business day following posting thereof by a recognized
overnight courier, (B) three (3) days following posting thereof by registered or certified mail, return receipt requested, or (C)
upon the sending thereof when sent by facsimile with electronic confirmation of its receipt, in each case addressed to each party
at its address set forth below or at such other address as has been furnished in writing by a party to the other by like notice:

    	5

    	 

    

(i)                
 if to the Lender, at its address or transmission number for notices provided in the Loan Agreement; and

(ii)              
if to the Guarantor, at its address or transmission number for notices set forth under its signature below.

The Lender and the
Guarantor may change their respective addresses and transmission numbers for notices by notice in the manner provided in this Section.

10.             
Severability. Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

11.             
Integration. This Guarantee represents the agreement of the Guarantor with respect to the subject matter hereof and
there are no promises or representations by the Lender relative to the subject matter hereof not reflected herein.

12.             
Amendments in Writing; No Waiver; Cumulative Remedies. (a) None of the terms or provisions of this Guarantee may
be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantor and the Lender,
provided that any provision of this Guarantee may be waived by the Lender in a letter or agreement executed by the Lender or by
telex or facsimile transmission from the Lender.

(b)              
The Lender shall not by any act (except by a written instrument pursuant to paragraph 12(a) hereof), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default
or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of
the Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by the Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy which the Lender would otherwise have on any future occasion.

(c)               
The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

13.             
Section Headings. The section headings used in this Guarantee are for convenience of reference only and are not to
affect the construction hereof or be taken into consideration in the interpretation hereof.

14.             
Negative Covenants. Guarantor hereby agrees that it shall not accept or receive from any Borrower any intercompany
transfers or advances and shall not engage in any commercial transactions with any Borrower, except as permitted under the Loan
Agreement.

    	6

    	 

    

15.             
 Successors and Assigns. This Guarantee shall be binding upon the successors and assigns of the Guarantor and shall
inure to the benefit of the Lender and its successors and assigns.

16.             
APPLICABLE LAW. THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, THE LAWS OF WHICH GUARANTOR HEREBY EXPRESSLY ELECTS TO APPLY TO THIS GUARANTEE, WITHOUT GIVING EFFECT TO
PROVISIONS FOR CHOICE OF LAW THEREUNDER. GUARANTOR AGREES THAT ANY ACTION OR PROCEEDING BROUGHT TO ENFORCE OR ARISING OUT OF THIS
GUARANTEE SHALL BE COMMENCED IN ACCORDANCE WITH THE PROVISIONS OF THIS GUARANTEE.

17.             
WAIVER OF JURY TRIAL. GUARANTOR HEREBY WAIVES ANY AND ALL RIGHTS THAT IT MAY NOW OR HEREAFTER HAVE UNDER THE LAWS
OF THE UNITED STATES OF AMERICA OR ANY STATE TO A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING EITHER DIRECTLY OR INDIRECTLY IN
ANY ACTION OR PROCEEDING BETWEEN GUARANTOR, LENDER OR ITS SUCCESSORS AND ASSIGNS, OUT OF OR IN ANY WAY CONNECTED WITH THIS GUARANTEE,
THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL. IT IS INTENDED THAT SAID WAIVER SHALL APPLY TO ANY AND ALL DEFENSES,
RIGHTS, AND/OR COUNTERCLAIMS IN ANY ACTION OR PROCEEDINGS BETWEEN GUARANTOR AND LENDER. GUARANTOR WAIVES ALL RIGHTS TO INTERPOSE
ANY CLAIMS, DEDUCTIONS, SETOFFS OR COUNTERCLAIMS OF ANY KIND, NATURE OR DESCRIPTION IN ANY ACTION OR PROCEEDING INSTITUTED BY LENDER
WITH RESPECT TO THIS GUARANTEE, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS, THE COLLATERAL OR ANY MATTER ARISING THEREFROM OR RELATING
THERETO, EXCEPT COMPULSORY COUNTERCLAIMS.

18.             
CONSENT TO JURISDICTION. GUARANTOR HEREBY (a) IRREVOCABLY SUBMITS AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE
STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK, NEW YORK COUNTY WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF THIS GUARANTEE, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL OR ANY MATTER ARISING THEREFROM OR RELATING
THERETO, AND (b) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT THERETO.
IN ANY SUCH ACTION OR PROCEEDING, GUARANTOR WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS AND PAPERS THEREIN
AND AGREES THAT THE SERVICE THEREOF MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO GUARANTOR AT ITS OFFICES
SET FORTH HEREIN OR OTHER ADDRESS THEREOF OF WHICH LENDER HAS RECEIVED NOTICE AS PROVIDED IN THIS GUARANTEE. NOTWITHSTANDING THE
FOREGOING, GUARANTOR CONSENTS TO THE COMMENCEMENT BY LENDER OF ANY SUIT, ACTION OR PROCEEDING IN ANY OTHER JURISDICTION TO

    	7

    	 

    

ENFORCE LENDER'S RIGHTS AND GUARANTOR WAIVES
ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING.

[SIGNATURE
PAGE FOLLOWS]

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Guarantee to be duly executed and delivered as of the day and year first above written.

 

XZERES WIND EUROPE LIMITED

 

 

By:

 

Name:

 

Title:

 

Address:

___________________________

___________________________

Telephone:(___) ___-____

Facsimile:(___) ___-____

    	9

    	 

    

 

 

STATE OF 

COUNTY OF 

 

 

On this ____ day of
_______, 2013, before me personally came ______________________________, to me known, who, being duly sworn, did depose and say,
that he is the ____________________ of XZERES WIND EUROPE LIMITED, the corporation described in and which executed the foregoing
instrument; and that he signed his name thereto by order of the board of directors of said company.

 

 

 

_________________________________

Notary Public

 

    	10

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