Document:

Exhibit 4.1

 

PURSUANT TO THE TERMS OF THIS WARRANT, ALL OR A PORTION OF THIS
WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT SHARES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE AMOUNT
SET FORTH ON THE FACE HEREOF. 

 

FLEXENERGY GREEN SOLUTIONS, INC.

 

WARRANT

 

	Warrant No.	 	Original Issue Date: [        ], 2021

 

FlexEnergy Green Solutions,
Inc., a Delaware corporation (the “Company”), hereby certifies that, as partial compensation for its services as an
underwriter to the Company, Roth Capital Partners, LLC or its registered assigns (the “Holder”), is entitled to purchase
from the Company up to a total of [        ]1
shares (the “Warrant Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”), at any time and from time to time from and after 180 days following the effective date of the Registration Statement
on Form S-1 (File No. 333-260111), and through and including [         ], 2024,
the third anniversary of such effective date (the “Expiration Date”), in accordance with FINRA Rule 5110, and
subject to the following terms and conditions:

 

1. Definitions. As
used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144.

 

“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required
by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or
required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” 
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority
so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally
are open for use by customers on such day.

 

“Common Stock”
means the common stock of the Company, par value $0.0001 per share, and any securities into which such common stock may hereafter
be reclassified or for which it may be exchanged as a class.

 

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

 

“Exercise Price” means $[        ]2,
subject to adjustment in accordance with Section 8.

 

“Fundamental Transaction”
means any of the following: (1) the Company effects any merger or consolidation of the Company with or into another Person, (2) the
Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer
or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender
or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash
or property.

 

 

1
2.5% of the securities issued in the offering to Roth Capital Partners.

2120%
of the initial public offering price as set forth in the final prospectus.

 

    

     

    

 

“New York Courts” means the
state and federal courts sitting in the State of New York.

 

“Original Issue Date”
means the Original Issue Date first set forth on the first page of this Warrant.

 

“Person” means
an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Prospectus”
means the prospectus, dated [          ], 2021, filed with the Securities and Exchange
Commission pursuant to Rule 424 promulgated under the Securities Act.

 

“Rule 144”
means Rule 144 promulgated by the Securities and Exchange Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the Securities and Exchange Commission having substantially
the same effect as such Rule.

 

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

 

“Subsidiary”
means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the Securities
and Exchange Commission under the Exchange Act.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not quoted on any
Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC (or any similar
organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed
or quoted as set forth in (i) or (ii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the
Nasdaq Capital Market or OTC Markets Group electronic quotation system on which the Common Stock is listed or quoted for trading on the
date in question.

 

2. Exercise and Duration
of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time from and after 180 days
following the effective date of the Registration Statement on Form S-1 (File No. 333-260111) (the “Effective Date”),
through and including the Expiration Date, in accordance with FINRA Rule 5110. At 11:59 p.m., New York City time on the Expiration
Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem
any portion of this Warrant without the prior written consent of the affected Holder. Neither this Warrant nor any shares of Common Stock
issuable upon exercise of this Warrant, shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging,
short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant, or any security
issuable upon exercise of this Warrant, by any person for a period of 180 days immediately following the effective date of the Registration
Statement on Form S-1 (File No. 333-260111), except as provided in FINRA Rule 5110(g)(2).

 

    

     

    

 

3. Registration of Transfers.
The Company shall register the transfer of any portion of this Warrant, upon surrender of this Warrant, with the Form of Assignment
attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new
Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”),
evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion
of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee
thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

 

4. Delivery of Common Stock.

 

(a) To effect exercises hereunder,
the Holder shall not be required to physically surrender this Warrant unless all of the Warrant Shares represented by this Warrant are
being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the Company at its address for notice set forth
herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder,
the Company shall promptly (but in no event later than two Trading Days after the Date of Exercise (as defined herein)) issue and deliver
to the Holder, a certificate for the Warrant Shares issuable upon such exercise. The Company shall, upon request of the Holder and subsequent
to the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities
and Exchange Commission, use its reasonable best efforts to deliver Warrant Shares hereunder electronically through the Depository Trust
Corporation or another established clearing corporation performing similar functions, if available, provided, that, the Company
may, but will not be required to change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically
through the Depository Trust Corporation. A “Date of Exercise” means the date on which the Holder shall have delivered
to the Company: (i) the Exercise Notice, appropriately completed and duly signed and (ii) if applicable, payment of the Exercise
Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b) If by the second Trading
Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 4(a),
then the Holder will have the right to rescind such exercise.

 

(c) If by the second Trading
Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 4(a),
and if after such second Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall (1)  reimburse the Holder the amount by which
(x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock or Warrants
so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the shares of Common Stock, on the
Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In.

 

    

     

    

 

(d) The Company’s obligations
to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against
any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or
any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder
in connection with the issuance of Warrant Units. Nothing herein shall limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect
to the Company’s failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant
to the terms hereof.

 

5. Charges, Taxes and Expenses.
Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer
tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which
taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be
payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than
that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving Warrant Shares upon exercise hereof.

 

6. Replacement of Warrant.
If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for
and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety
bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of
a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s
obligation to issue the New Warrant.

 

7. Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or
any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all
times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the purposes of this
Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common
Stock receivable upon the exercise of this Warrant above the Exercise Price, (ii) shall take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise
of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available
out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, the number
of shares of Common Stock which are then issuable upon exercise of this Warrant (without regard to any limitations on exercise).

 

8. Certain Adjustments.
The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as
set forth in this Section 8.

 

    

     

    

 

(a) Stock Dividends and Splits.
If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a
distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common
Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then
in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common
Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after
the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to
clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b) Fundamental Transactions.
If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have the right thereafter
to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to
receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder
of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash
or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s option and request, any successor
to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form of
this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration
for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring
that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

  

(c) Number of Warrant Shares.
Simultaneously with any adjustment to the Exercise Price pursuant to this Section 8, the number of Warrant Shares that may be purchased
upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price
payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior
to such adjustment.

 

(d) Calculations. All
calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the
Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(e) Notice of Adjustments.
Upon the occurrence of each adjustment pursuant to this Section 8, the Company at its expense will promptly compute such adjustment
in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable),
describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon
written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent.

 

    

     

    

 

(f) Notice of Corporate Events.
If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock,
including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any
Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental
Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company
shall deliver to the Holder a notice describing the material terms and conditions of such transaction (but only to the extent such disclosure
would not result in the dissemination of material, non-public information to the Holder) at least 10 calendar days prior to the applicable
record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction,
and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise
this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure
to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

 

9. Payment of Exercise
Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a)       Cash Exercise.
The Holder may deliver immediately available funds; or

 

(b)      Cashless
Exercise. The Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which event the
Company shall issue to the Holder the number of Warrant Units determined as follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares to be issued to the Holder.

 

Y = the number of Warrant Shares with respect to which this
Warrant is being exercised.

 

A = the average of the daily volume weighted
average price for the Common Stock for the five Trading Days immediately prior to (but not including) the Exercise Date.

 

B = the Exercise Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall
be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the
date this Warrant was originally issued.

 

10. Limitations on Exercise.
Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise
of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or
other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons
whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the
Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common Stock (including for such purpose the
shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict the number of shares of
Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that
such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 8 of this Warrant. This restriction
may not be waived. Notwithstanding anything to the contrary contained in this Warrant, (a) no term of this Section may be waived
by any party, nor amended such that the threshold percentage of ownership would be directly or indirectly increased, (b) this restriction
runs with the Warrant and may not be modified or waived by any subsequent holder hereof and (c) any attempted waiver, modification
or amendment of this Section will be void ab initio.

 

    

     

    

 

11. No Fractional Shares.
No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares which would,
otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing price of one share of
Common Stock as reported by the applicable Trading Market on the date of exercise, or round up to the nearest whole share of Common Stock.

 

12. Notices. Whenever
notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in writing, will be mailed
(a) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express
courier, postage prepaid, or by email or (b) if delivered from outside the United States, by International Federal Express or email,
and (c) will be deemed given (i) if delivered by first-class registered or certified mail domestic, three (3) Business
Days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) Business Day after so mailed, (iii) if
delivered by International Federal Express, two (2) Business Days after so mailed and (iv) if delivered by email, upon confirmation
of transmission, and will be delivered and addressed as follows:

 

(i) if to the Company, to:

 

	 	 	FlexEnergy Green Solutions, Inc.,  

	 	 	
    112 Corporate Drive

    Portsmouth, NH 03801

	 	 	Attn: Chief Financial Officer 

	 	 	Email:  wes.kimmel@flexenergy.com

 

with a copy to:

 

	 	 	Rutan & Tucker, LLP

	 	 	
    18575 Jamboree Road

    Suite 900

    Irvine, CA 92612

	 	 	Attn:   Gregg Amber

	 	 	
    Email: gamber@rutan.com 

 

(ii) if to the Holder, at
the address of the Holder appearing on the books of the Company.

  

13. Miscellaneous.

 

(a) No Rights as a Stockholder
Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as
a stockholder of the Company prior to the exercise hereof as set forth in Section 4 except as expressly set forth in Section 8. Without
limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section 9(b) or to receive
cash payments pursuant to Section 4(c) and 8(b), in no event shall the Company be required to net cash settle an exercise of this Warrant.

 

    

     

    

 

(b) This Warrant shall be binding
on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing
in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or
cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder and their successors
and assigns. The foregoing sentence shall be subject to the restrictions on waivers and amendments set forth in Section 10 of this
Warrant.

 

(c) All questions concerning
the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that
all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and the transactions herein contemplated
(“Proceedings”) (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be
commenced exclusively in the New York Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York
Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the
jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto
hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any
provisions of this Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

(d) The headings herein are
for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

 

(e) In case any one or more
of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms
and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree
upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Warrant.

 

(f) Prior to exercise of this
Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with respect to the Common
Stock.

 

[Signature Page Follows]

 

    

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

 

	 	FLEXENERGY GREEN SOLUTIONS, INC.
	 	 
	 	 
	 	By:	                 
	 	Name:
	 	Title:

  

    

     

    

 

EXERCISE NOTICE

FLEXENERGY GREEN SOLUTIONS, INC.

WARRANT DATED [          ]

 

The undersigned Holder hereby irrevocably elects
to purchase    shares of Common Stock pursuant to the above referenced Warrant. Capitalized terms used herein
and not otherwise defined have the respective meanings set forth in the Warrant.

 

	(1)	The undersigned Holder hereby exercises its right to purchase

 

__________ shares of Common Stock pursuant to the Warrant.

 

	(2)	The holder shall pay the sum of $______________to the Company in accordance with the terms of the Warrant.

 

	(3)	Pursuant to this Exercise Notice, the Company shall deliver to the holder Common Stock in accordance with the terms of the Warrant.

 

	(4)	By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under Section 10 of the Warrant to which this notice relates.

  

	Dated:	 	 	Name of Holder: 
	 	 	 	 
	 	 	 	(Print)	 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

  

    

     

    

 

FLEXENERGY GREEN SOLUTIONS, INC.

WARRANT DATED [         ]

WARRANT NO.

 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned
hereby sells, assigns and transfers unto    the right represented by the above-captioned Warrant to purchase______shares
of Common Stock to which such Warrant relates and appoints      attorney to transfer said right on the books
of the Company with full power of substitution in the premises.

 

	Dated: 	 	 	 
	 	 	 	 
	 	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 	 	 
	 	 	 	Address of Transferee
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	In the presence of:Exhibit 10.5

 

FLEXENERGY
ENERGY SYSTEMS, INC.

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is entered by and between FlexEnergy Energy Systems, Inc., a Delaware corporation
(the “Company”), and Mark G. Schnepel (“Executive”).

 

1.              Duties
and Scope of Employment.

 

(a)            Title
and Duties. As of the Effective Date (as defined in Section 3 below), Executive will be employed and serve as President
and Chief Executive Officer of the Company. During the Employment Term, and without any additional compensation in connection with such
service, Executive shall also serve as an officer of such affiliates of the Company as the Board may determine from time to time. During
the Employment Term (as defined in Section 3 below), Executive will have authority and render such business and professional
services in the performance of Executive’s duties as are customarily associated with Executive’s position(s) provided
above, and Executive agrees to perform such other duties and functions as may from time to time be reasonably determined by the Board.
The “Board” means (i) the board of directors of FlexEnergy Green Solutions, Inc. (“FGS”)
if the Company is a direct or indirect subsidiary of FGS; or (ii) the board of directors or analogous governing body of the Company
if the Company is not a direct or indirect subsidiary of FGS.

 

(b)            Obligations.
During the Employment Term, and excluding any periods of vacation, sick leave, or other leave to which the Executive is entitled, Executive
will perform Executive’s duties faithfully and to the best of Executive’s ability and will devote such time as reasonably
necessary to fulfill Executive’s responsibilities in the position. Executive and the Company agree that the Company represents Executive’s
principal business focus. Except as may otherwise be approved by the Company from time to time, Executive’s services shall be primarily
performed at the Company’s office at Portsmouth, New Hampshire, or other locations less than 50 miles from such location determined
by the Company. Executive agrees to travel as reasonably necessary to fulfill Executive’s responsibilities in the position. During
the Employment Term, Executive agrees that Executive shall maintain loyalty to the Company, shall take no action that would be injurious
to the Company interests, and shall comply with all rules, regulations and policies of the Company. During the Employment Term, it shall
not be a violation of this Agreement for Executive to (i) serve on up to two (2) civic or charitable boards or committees (and
other board and committees from time to time as approved by the Board), (ii) deliver lectures, fulfill speaking engagements or teach
at educational institutions, or (iii) manage personal investments and business endeavors, so long as such activities do not significantly
interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

 

(c)            Executive’s
Employability. Executive represents and warrants that: (i) Executive has the right to execute, deliver and perform Executive’s
duties under this Agreement, and (ii) Executive is not a party to any other agreements, arrangements or obligations (e.g., confidentiality
agreements, noncompetition agreements), whether written, oral or implied, which include terms that would limit Executive’s ability
to execute, deliver and perform Executive’s duties under this Agreement or which are otherwise inconsistent with this Agreement.
This warranty will remain in full force and effect throughout the Employment Term (as defined in Section 3 below).

 

2.              Compensation.

 

(a)            Base
Salary. During the Employment Term, the Company will pay Executive as compensation for Executive’s services a base salary at
rate of $24,625.00 per month (the “Base Salary”). The Base Salary will be paid in regular installments in accordance
with the Company’s normal payroll practices, subject to applicable deductions and withholdings. The first and last payment will
be adjusted, if necessary, to reflect a commencement or termination date other than the first or last working day of a pay period.

 

     

     

    

 

(b)            Annual
Bonus. Executive shall be eligible for an annual bonus (collectively the “Annual Bonus”) during the Employment
Term in a target amount equal to 50% of Base Salary, to be earned based on such targets, criteria, terms and conditions as be determined
by the Board (or a duly authorized committee thereof) in its sole discretion, subject to the terms of this Agreement. Any such Annual
Bonus (i) will only be determined and awarded after the completion of the audited financial statements for FGS with respect to the
applicable annual period for which the Annual Bonus is to be earned; (ii) will only be awarded and paid if both (A) Executive
remains employed with the Company during the full annual period for which the Annual Bonus is to be earned and (B) (I) Executive
remains employed with the Company through the award and payment of the Annual Bonus or (II) subject to Section 4(b),
Executive’s employment with the Company is terminated by the Company without Cause between the last day of the annual period for
which the Annual Bonus is to be earned and the date on which the Annual Bonus would otherwise be paid; and (iii) will be paid
as soon as practicable, but not later than 45 days, after the completion and public release of audited financial statements for FGS with
respect to the applicable annual period for which the Annual Bonus is earned.

 

(c)            Equity
Incentives.

 

(i)            Incentive
Award Plan Eligibility. Executive shall be eligible to participate in, and receive one or more grants under, the FlexEnergy Green
Solutions, Inc. 2021 Incentive Award Plan (the “Incentive Plan”). Any such awards and the terms and conditions
thereof shall be subject to the discretion of the board of directors of FGS and set forth in award documentation as such board of directors
deems reasonably necessary in connection with any such award.

 

(ii)            Issuance
of Shares One Year After IPO. The Company agrees to cause the issuance to Executive under the Incentive Plan (pursuant to then-current
forms of award agreement under the Incentive Plan), after the one (1) year anniversary of the IPO (as defined in Section 3
below), of an amount of shares of common stock of FGS equal to 1.2% of the total number of shares initially available under the Plan if
(A) Executive remains employed by the Company throughout the one (1)-year period immediately following the IPO, (B) Executive
is terminated by the Company without Cause (defined below) during one (1)-year period immediately following the IPO, or (C) Executive
terminates this Agreement for Good Reason.  For the avoidance of doubt, no shares will be issued to Executive if Executive fails
to remain employed by the Company during the one (1)-year period immediately following the IPO under any other circumstances (ex. resignation
by Executive without Good Reason, termination by the Company for Cause).

 

(iii)           Initial
Stock Option Award. Without limiting Sections 2(c)(i) or 2(c)(ii) above, the Company will recommend to
the FGS board of directors that Executive receive a stock option award to purchase, (A) at an exercise price determined by
the FGS board of directors in accordance with the requirements of the Incentive Plan, (B) (I) shares of common stock of FGS
in an amount equal to 2% of the total number of shares initially available under the Plan, to be initially vested and exercisable upon
grant, and (II) shares of common stock of FGS in an amount equal to 8% of the total number of shares initially available under the
Plan, to vest and become exercisable over a four (4)-year period with 25% vesting on each anniversary of the IPO (defined below) subject
to Executive’s continuous service through the applicable anniversary, (C) not subject to any adjustment pursuant to Section 12
of the Incentive Plan, without Executive’s written consent, that would reduce the number of shares subject to the stock option or
increase the exercise price applicable to the stock option (except to provide equitable adjustment with respect to a reverse stock split
or other event specified in Section 12(i) of the Incentive Plan having a substantively similar effect on the outstanding capital
of FGS), and (D) otherwise subject to the general terms and conditions of the Incentive Plan. Notwithstanding the foregoing, it is
hereby acknowledged and agreed that no stock option award to Executive has been approved by the FGS board of directors, and Executive
has no right to receive (and neither the Company nor FGS has any obligation to issue) any stock option award unless and until the FGS
board of directors has actually approved any such stock option award and the full terms thereof (including the applicable exercise price).

 

    -2-

     

    

 

(d)            Expense
Reimbursement. During the Employment Term, the Executive shall be entitled to reimbursement of reasonable out-of-pocket business expenses
incurred by Executive in furtherance of Company’s business in accordance with Company’s policies with respect thereto as in
effect from time to time (the “Expense Reimbursement”). All reimbursements provided under this Agreement shall be made
or provided in accordance with the requirements of Section 409A including, where applicable, the requirement that (i) any reimbursement
is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement); (ii) the
amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other
calendar year; (iii) the reimbursement of an eligible expense shall be made no later than the last day of the calendar year following
the year in which the expense is incurred; and (iv) the right to reimbursement or in kind benefits is not subject to liquidation
or exchange for another benefit.

 

(e)            Vacation.
Executive shall be entitled to a minimum of three (3) weeks paid vacation per year, in accordance with the Company’s standard
vacation policy.

 

(f)             Employee
Benefits. During the Employment Term, Executive will be considered a full-time employee and be entitled to participate in the employee
benefit plans and programs currently and hereafter maintained by the Company of general applicability to other Employees of Executive’s
classification at the Company (the “Benefits”). The Company reserves the right to cancel or change the Benefit plans
and programs it offers to its employees at any time. In the event of any dispute between this Agreement and the terms of any Benefit summary
plan description, the terms of the summary plan description shall control.

 

3.              Effective
Date; Term of Employment.

 

(a)            Employment
Term; Effective Date. The “Employment Term” under this Agreement will commence on the Effective Date and will continue
until the Executive’s employment terminated by either the Company or Executive as provided in Section 3(b) of this Agreement.
This Agreement shall only become a legally effective agreement binding on Executive and the Company on the closing date (the “Effective
Date”) of an initial public offering of the common stock of FGS pursuant to a registration statement filed under the Securities
Act of 1933, as amended (an “IPO”). If an IPO does not close on or before November 10, 2021, then this Agreement
shall thereafter be void and no legal force or effect.

 

(b)            Termination.
Notwithstanding anything else contained in this Agreement, Executive’s employment hereunder shall terminate upon the earliest to
occur of the following:

 

(i)             Death.
Immediately upon Executive’s death.

 

(ii)            Termination
by Executive.

 

(1)            Generally.
If terminated by Executive without Good Reason, upon written notice by Executive to the Board that Executive is terminating employment
(a “Resignation Notice”), which termination shall be effective 60 days after the date of such notice, or such earlier
date as specified in writing by the Company in its sole discretion during such 60-day period; or

 

(2)            For
Good Reason. If terminated by Executive for Good Reason, upon written notice by Executive to Company that Executive is terminating
Executive’s employment for Good Reason and that sets forth the factual basis supporting the Good Reason, which termination shall
be effective 30 days after the date of such notice, or such earlier date as specified in writing by the Company in its sole discretion
during such 30-day period. For the avoidance of doubt, such termination shall not constitute a termination for Good Reason if Company
cures the conditions identified in Executive’s notice as provided in Section 3(d)(iii).

 

    -3-

     

    

 

(iii)            Termination
by the Company.

 

(1)            For
Cause. If terminated by the Company for Cause (defined below), upon written notice by the Company to Executive that Executive’s
employment is being terminated for Cause, which termination shall be effective on the date of such notice or such later date as specified
in writing by the Company;

 

(2)            Without
Cause or Disability. If terminated by the Company for reasons other than for Cause or Disability, upon written notice by Company to
Executive that Executive’s employment is being terminated, which termination shall be effective immediately after the date of such
notice or such later date as specified in writing by the Company; or

 

(3)            For
Disability. If terminated by the Company because of Executive’s Disability (defined below), upon written notice by the Company
to Executive that Executive’s employment is being terminated as a result of Executive’s Disability, which termination shall
be effective 30 days after the date of such notice or such later date as specified in writing by the Company, unless within such period
Executive becomes capable of rendering services of the character contemplated hereby (and a physician chosen by the Company so certifies
in writing) and Executive in fact resumes such services.

 

(c)            Deemed
Termination for Cause. Notwithstanding anything in this Agreement to the contrary, if (i) the Company at any time determines
that Cause existed at the time of Executive’s termination or written notice thereof, (ii) Executive has breached or breaches
the terms of Section 5, then upon written notice by the Company to Executive (i) the Executive’s termination shall be
deemed be (or have been) terminated by the Company for Cause pursuant to Section 3(b)(iii)(1) (including for purposes
of Section 4 and Section 6(g)(ii)(1)), (ii) the Company may immediately cease payments of any Basic Severance
Payments and/or any Extended Severance Payments that may otherwise be due to Executive, and (iii) the Company may recover from Executive
any Basic Severance Payments and/or any Extended Severance Payments that may have already been paid to Executive. The cessation and recovery
of such any payments shall be in addition to, and not as an alternative to, any other remedies at law or in equity available to the Company
with respect to the matters constituting Cause, including, without limitation, the right to specific performance and/or injunctive or
other relief.

 

(d)            Certain
Definitions.

 

(i)            Definition
of Cause. For purposes of this Agreement, “Cause” means any of the following: (A) conviction of, or the entry
of a plea of guilty or no contest to, a felony, a crime of moral turpitude, or any other crime that causes the Company public disgrace
or disrepute, or which materially and adversely affects the Company’s operations or financial performance or the relationship the
Company has with its customers; (B) gross negligence or willful misconduct with respect to the Company, including, without limitation
fraud, embezzlement, theft or proven dishonesty in the course of Executive’s employment or other service; (C) alcohol abuse
or use of either illegal drugs or controlled drugs (other than in accordance with a physician’s prescription); (D) refusal
to perform any lawful, material obligation or fulfill any duty (other than any duty or obligation of the type described in clause (F) below)
to the Company (other than due to a disability, as determined by the Committee), which refusal, if curable, is not cured within 15 days
after delivery of written notice thereof (and for the avoidance of doubt, the relevant refused obligation or duty will be specifically
identified in such written notice); (E) material breach of any agreement with or duty owed to the Company, which breach, if curable,
is not cured within 15 days after the delivery of written notice thereof (and for the avoidance of doubt, if applicable, the relevant
breached duty will be specifically identified in such written notice); (F) any breach of any obligation or duty to the Company (whether
arising by statute, common law or agreement) relating to confidentiality, non-competition, non-solicitation, trade secrets, and/or proprietary
rights; (G) material violation of the Company’s written policies or codes of conduct, including those related to discrimination,
harassment, performance of illegal or unethical practices, and ethical misconduct; or (H) in the case of a director, repeated failure
to participate in Board meetings (including meetings of any Board committee of which the director is a member) on a regular basis despite
having received proper notice of meetings in advance.

 

    -4-

     

    

 

(ii)            Definition
of Disability. For purposes of this Agreement, “Disability” means Executive’s inability to perform one
or more of the essential functions of Executive’s job due to Executive’s
physical or mental impairment, with or without reasonable accommodation as required by law,
for any period aggregating more than 120 days in any 365 consecutive day period; provided however, that (A) if
the Company determines that Executive has become Disabled, the Company shall notify Executive of its determination; (B) Executive
may then request a reasonable accommodation (as that term is defined under the Americans with Disabilities Act) from the Company to assist
in his/her return to work; (C) the Company will determine whether Executive’s request can be reasonably accommodated without
undue hardship no later than 30 days after Executive requests an accommodation (with additional time being provided in the event of Executive
or Executive’s medical provider delaying in providing information that is necessary to the Company’s determination); and (D) in
the event Executive’s request cannot be reasonably accommodated (and/or presents an undue hardship), the Company may, by notice
given in the manner provided in this Agreement, terminate Executive’s employment hereunder.

 

(iii)            Definition
of Good Reason. For purposes of this Agreement, “Good Reason” means any of the following within the prior 90 days
without Executive’s approval: (A) any material diminution of Executive’s authority, duties or responsibilities with or
to the Company, other than (i) a paid leave of absence at the direction of and approved by the Board or (ii) an unpaid administrative
leave imposed for the purposes of investigating or addressing misconduct by Executive; (B) the Board assigns Executive duties or
responsibilities that are materially inconsistent with Executive’s position; (C) any material breach of this Agreement by the
Company, including, without limitation, a reduction in Executive’s Base Salary below the amount specified in Section 2(a) without
Executive’s consent; or (D) a change in the geographic location at which Executive must primarily perform services to a location
more than 50 miles from Portsmouth, New Hampshire without Executive’s approval. Executive must give the Company written notice of
Executive’s intention to terminate employment for Good Reason, which notice must state the grounds on which the proposed termination
for Good Reason is based. Executive must provide such written notice of the occurrence of these grounds no later than 90 days after their
initial occurrence. The Company may remedy these condition(s) within 15 days of receiving notice from Executive and no “Good
Reason” will exist if the Company remedies such condition(s) during such 15-day period.

 

(iv)            Definition
of Change in Control Period. For purposes of this Agreement, a “Change in Control Period ” means the one (1)-year
period commencing six (6)-months prior to a Change in Control (as defined in the Incentive Plan).

 

(e)            Transition
Assistance. For a period of 30 days following the effective date of Executive’s resignation, Executive shall make himself or
herself available to the Company and/or its agents (i) for the purpose of facilitating an efficient transition of Executive’s
job related responsibilities and duties to other designated individuals, and (ii) to respond to questions from the Company and/or
its agents regarding information and/or activities in which Executive was engaged while employed by the Company; provided that the foregoing
time period is based on Executive’s reasonable efforts to cooperate, Executive will not be entitled to additional compensation for
such availability and cooperation; and further provided that such assistance shall be reasonable and not substantially interfere or conflict
with Executive’s responsibilities to any new employer.

 

    -5-

     

    

 

4.              Payments
upon Termination.

 

(a)            Generally;
Accrued Obligations. If Executive’s employment is terminated for any reason, then the Company shall pay Executive the Accrued
Obligations promptly following the effective date of such termination. “Accrued Obligations” means (A) the portion
of Executive’s Base Salary that has accrued prior to any termination of Executive’s employment with Company and has not yet
been paid, any bonus that has been awarded to Executive as of the date of termination of Executive’s employment but has not yet
been paid to Executive, (B) and the amount of any unreimbursed Expense Reimbursement. Executive’s entitlement to any other
compensation or benefit under any plan of Company shall be governed by and determined in accordance with the terms of such plans, except
as otherwise specified in this Agreement.

 

(b)            Termination
by the Company without Cause or Termination for Good Reason. If the Company terminates Executive’s employment without Cause
or the Executive terminates Executive’s employment for Good Reason, then, in addition to the Accrued Obligations, and subject to
(A) the Executive signing a separation and release agreement in the form attached as Exhibit A, and as such form may
be updated by the Company from time to time at any time to conform with changes in applicable laws (a “General Release”)
and (B) the General Release becoming effective and irrevocable, all within 60 days after the date of termination (or such shorter
period as set forth in the General Release), the Company shall pay Executive:

 

(i)             the
Basic Severance Payments, or

 

(ii)            if
the Board, in its sole discretion, elects (by written notice to Executive within 10 days following the termination of Executive’s
employment) that the Company will pay Extended Severance Payments to Executive instead of the Basic Severance Payments pursuant to Section 4(b)(i),
the Extended Severance Payments (instead of the Basic Severance Payments); and

 

if applicable pursuant to
Section 2(b), an Annual Bonus with respect to the preceding annual period.

 

(c)            Terminations
without Cause during a Change in Control Period. If the Company terminates Executive’s employment without Cause during a Change
in Control Period, then, in addition to the Accrued Obligations, and subject to (i) the Executive signing a General Release and (ii) the
General Release becoming effective and irrevocable, all within 60 days after the date of termination (or such shorter period as set forth
in the General Release), the Company shall pay Executive the Extended Severance Payments.

 

(d)            COBRA
Premiums.

 

(i)             Subject
to Section 4(d)(ii), if (A) Executive is entitled to Basic Severance Payments or Extended Severance Payments (including,
without limitation, Executive’s timely execution and delivery of a General Release that has become effective and irrevocable), and
(B) Executive is eligible for and timely and properly elects continuation health care coverage pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985 (“COBRA”), then the Company will pay or promptly reimburse the COBRA premium amounts
required for the continued coverage of Executive and Executive’s dependents (if any) under the Company’s group health care
plans at the same levels that would have applied if Executive’s employment had not terminated (if possible) until the end of the
Basic Severance Term or Extended Severance Term, as applicable (or until such earlier time as Executive ceases to be eligible for COBRA
coverage, if earlier) (the “COBRA Premiums”). Notwithstanding the foregoing, if the Company determines, in its sole
discretion, that it cannot pay the COBRA Premium without a substantial risk of violating applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), the Company instead shall pay Executive a monthly cash payment equal to the applicable
COBRA Premium for that month.

 

    -6-

     

    

 

(ii)            If,
however, health care insurance benefits are available to Executive from a new employer, the Company shall have no further obligation relating
to payment of additional COBRA Premiums. Executive agrees to promptly inform the Company if and when health care insurance benefits are
available from a new employer, and to reimburse the Company for any amounts paid with respect to COBRA Premiums to the extent paid after
health care insurance benefits are available to Executive from a new employer.

 

(e)            Certain
Definitions.

 

(i)             Basic
Severance Payments; Basic Severance Term. For purposes of this Agreement, “Basic Severance Payments” means, to
the extent applicable, the monthly cash severance at the Base Salary rate, less standard withholdings and deductions, to be paid during
the Basic Severance Term. For purposes of this Agreement, “Basic Severance Term” means the six (6)-month period immediately
following the termination date of Executive’s employment.

 

(ii)            Extended
Severance Payments; Extended Severance Term. For purposes of this Agreement, “Extended Severance Payments” means,
to the extent applicable, the monthly cash severance at the Base Salary rate, less standard withholdings and deductions, to be paid during
the applicable Extended Severance Term. For purposes of this Agreement, “Extended Severance Term” means the one (1)-year
period immediately following the termination date of Executive’s employment.

 

(f)             Execution
of General Release. For the avoidance of doubt, the Company shall not be obligated to pay Executive any severance payments unless
a General Release has been timely executed and delivered by Executive and such General Release has become effective and irrevocable.

 

(g)            Limited
Rights to Severance Payments. For clarity, (i) entitlement to severance payments of any kind pursuant to this Agreement
shall only be possible if (A) the Company terminates Executive’s employment without Cause, or (B) Executive terminates
this Agreement for Good Reason; and (ii) no severance payment obligations shall arise out of (W) a termination of this Agreement
by the Company with Cause, (X) a termination of this Agreement by the Executive without Good Reason, or (Y) a termination of
this Agreement due to Executive’s death or Disability.

 

(h)            No
Continued Vesting. For the avoidance of doubt, vesting of any grants under the Incentive Plan or any other stock, stock option or
other incentive awards shall cease upon the date of any termination of Executive’s employment, and shall not continue to vest for
the remainder of any Noncompetition Period, Non-Solicitation Period or during any applicable Basic Severance Term or Extended Severance
Term.

 

(i)             Execution
of General Release. In accordance with Section 4(b), Section 4(c) and Section 4(d),
to receive the payments set forth in those Sections, Executive’s or Executive’s estate’s, if applicable, General Release
must be executed, effective and irrevocable before the expiration of 60 days after the date of termination. The payments specified in
these Sections will begin as soon as practicable (not to exceed 30 days) after the General Release is executed, effective and irrevocable,
but if the 60-day period could span two (2) tax years, the payments must be made in the later year. For example, if the Company terminates
Executive’s employment without Cause on December 15, Executive has 60 days—until February 13 —for a General
Release to be sign and become effective and irrevocable. In this case, payments due in accordance with Section 4(b), Section 4(c) or
Section 4(d) may not begin until the following year, even if the release was signed, effective and irrevocable in December.
If Executive’s or Executive’s estate’s, if applicable, General Release is not executed, effective and irrevocable before
the end of the 60-day-period, then the Executive and Executive’s estate forfeit, on behalf of Executive and all who might claim
through Executive, the payments that would otherwise be due under the applicable Section of this Agreement.

 

    -7-

     

    

 

5.              Confidentiality
and Invention Assignment Agreement. Executive has executed, and as applicable shall execute, the Company’s Confidentiality and
Invention Assignment Agreement, the current form of is attached as Exhibit B, and as updated from time to time (“CIIA”),
the provisions of which are hereby incorporated by reference and shall govern the Executive’s obligations and responsibilities with
regard to the Company Confidential Information (as that term is defined in the CIIA), the assignment of intellectual property, and other
matters. Executive agrees to comply with the terms of the CIIA. To the extent that any provision of the CIIA conflicts with any provision
in this Agreement, the provisions requiring Executive to comply with the higher standard shall govern.

 

6.              Restrictive
Covenants.

 

(a)            Acknowledgement.
Executive agrees that, during the Employment Term, Executive (i) has a duty of loyalty to the Company, and (ii) shall not engage
in or undertake any action that conflicts with the undivided loyalty owed by Executive to the Company. Executive represents and warrants
that Executive has no other agreements, relationships, or commitments to any other person or entity that conflict with the provisions
of this Agreement, Executive’s obligations to the Company under this Agreement, or Executive’s ability to perform Executive’s
duties to the Company. Executive acknowledges and agrees that: (A) Executive’s employment with the Company has brought Executive
into close contact with Confidential Information of the Company and its customers, vendors, suppliers, employees, and independent contractors;
and (B) the agreements and covenants contained in this Section 6 are essential, reasonable, and no broader than necessary
to protect the reasonable business interests and goodwill of the Company. Executive further acknowledges, represents, and agrees that
the terms of this Section 6 do not and will not pose an undue hardship on Executive, and that Executive will be able to maintain
gainful employment notwithstanding the terms of this Section 6. Executive further acknowledges, represents, and agrees that
he/she has received valuable consideration (including, but not limited to, a payment of five hundred dollars ($500.00) that is expressly
for the purposes of serving as consideration for this Section 6) that is sufficient to support the promises being made by
Executive herein. Accordingly, Executive covenants and agrees to the following restrictive covenants.

 

(b)            Non-Solicitation
of Company Employees and Contractors. Executive agrees that during the Non-Solicitation Period (defined below), Executive shall not
directly or indirectly (i) hire, employ, recruit, solicit, lure or entice away, or in any other manner persuade or attempt to persuade,
any employee of the Company to discontinue such employee’s employment with the Company or (ii) solicit or encourage any independent
contractor providing services to the Company to terminate or diminish its relationship with the Company; provided, that, the foregoing
shall not be breached by general advertisements not targeted at employees or independent contractors of the Company.

 

(c)            Non-Solicitation
of Company Customers. Executive agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly (i) solicit
or assist in the solicitation by any third party of any Covered Customer (defined below) for the purpose of providing services or products
that compete with, or are similar to, the service or product offerings of the Company, except when such solicitation is done on behalf
of the Company, or (ii) discourage any Covered Customer from obtaining of services or products from the Company.

 

(d)            Non-Interference
with Vendors and Service Providers. Executive agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly
negatively influence or otherwise interfere with the Company’s relationships with vendors, suppliers, consultants, advisors, or
other service providers of the Company.

 

    -8-

     

    

 

(e)            Non-Competition
with the Company. Executive agrees that, during the Non-Competition Period, Executive shall not directly or indirectly, as a director,
manager, member, stockholder, partner, owner, employee, consultant, or agent of any business, or in any other capacity, other than on
behalf of the Company, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit Executive’s
name to be used by, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation,
or other entity), or otherwise assist any person or entity that engages in or owns, invests in, operates, manages, or controls any venture
or enterprise in all or a part of the Restricted Area, that engages in (A) the manufacture, sale, lease, service or other manner
of offering of products or services that provide natural gas or hydrogen fueled distributed power generation with a single unit nameplate
capacity of up to 5MW (which excludes, for the avoidance of doubt, the manufacture, sale, lease, service or other manner of offering of
batteries, solar or wind powered energy generation equipment, or electrochemical (non-combustion) powered fuel cells), (B) the manufacture,
sale, lease, service or other manner of offering of heat exchanger/transfer products that can operate with gases at a temperature above
1000° Fahrenheit or (C) any other new line of business, products or services offered or in development by FGS or any direct or
indirect subsidiary thereof during the prior six months of the Employment Term and in which Executive has had material involvement (the
 “Restricted Business”). Notwithstanding the foregoing, nothing in this Agreement shall prevent Executive from owning,
directly or indirectly, for passive investment purposes not intended to circumvent this Agreement, less than 2% of the publicly traded
common equity securities of any company engaged in the Business (so long as Executive has no power to manage, operate, advise, consult
with, or control the competing enterprise and no power, alone or in conjunction with other affiliated parties, to select a director, manager,
general partner, or similar governing official of the competing enterprise other than in connection with the normal and customary voting
powers afforded Executive in connection with any permissible equity ownership).

 

(f)            Non-Disparagement.
Executive also agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly (i) disparage the Company,
its affiliates and their respective directors, officers, managers, managers, employees, or agents, or (ii) make any public statement
that could reasonably be expected to materially and adversely affects the reputation, brand, or business of the Company. This provision
does not apply to any statements made to governmental agencies for the purposes of asserting, or participating in any investigation by
such agencies concerning, Executive’s statutory rights. In the event of a termination of Executive’s employment (other than
a termination for Cause, including pursuant to Section 3(c)), subject to a General Release for Executive being signed, delivered,
effective and irrevocable, and further subject to Executive’s compliance and continuing compliance with Executive’s continuing
obligations of this Agreement (including this Section 6), then the Company shall cause the FGS board of directors and FGS
executive officers (while such individuals serve in such capacities) not to disparage Executive during the remainder of the Non-Solicitation
Period. This provision does not apply to any statements or other disclosures by the Company, the FGS board of directors or FGS executive
officers for the purpose of or necessary for compliance with federal or state securities laws, as well as rules of any securities
exchange on which any securities of the Company, including FGS, are then traded.

 

(g)            Certain
Defined Terms. The following terms, when used in this Section 6, will have the respective meanings set forth below:

 

(i)            “Restricted
Area” means the area within the United States, Canada and each other country and territory for which the Company has provided
products or services or in which the Company has otherwise done business during Executive’s employment with the Company; provided
however if any court of competent jurisdiction determines that the geographic scope of such Restricted Area is unreasonable, the “Restricted
Area” means with respect to the United States, Canada and each other country and territory for which the Company has provided products
or services or in which the Company has otherwise done business during Executive’s employment with the Company, the area within
each state or territory thereof for which the Company has provided products or services or in which the Company has otherwise done business
during Executive’s employment with the Company; provided however if any court of competent jurisdiction determines that the geographic
scope of such Restricted Area is unreasonable, the “Restricted Area” means with respect to the United States, Canada and each
other country and territory for which the Company has provided products or services or in which the Company has otherwise done business
during Executive’s employment with the Company, the area within each county or similar jurisdiction thereof for which the Company
has provided products or services or in which the Company has otherwise done business during Executive’s employment with the Company;
provided, however if any court of competent jurisdiction determines that the geographic scope of such Applicable Area is
unenforceable, the “Restricted Area” means within 50 miles of any location at which the Company has provided products or services
or in which the Company has otherwise done business during Executive’s employment with the Company.

 

    -9-

     

    

 

(ii)            “Non-Competition
Period” means:

 

(1)            the
period during Executive’s employment with the Company and for the one (1)-year period after the end of Executive’s employment
with the Company if Executive’s employment (A) is terminated by the Company for Cause, (B) is terminated by the Company
without Cause during a Change in Control Period, or (C) is terminated by Executive other than for Good Reason.

 

(2)            the
period during Executive’s employment with the Company and for the six (6)-month period after the end of Executive’s employment
with the Company if Executive’s employment is terminated in any circumstances not provided in Section 6(g)(ii)(1)(A),
(B) or (C) above; provided, however, that the Board may, in its sole discretion, elect (by written
notice to Executive within 10 days following the termination of Executive’s employment) that the Company will pay Extended Severance
Payments to Executive (instead of any Basic Severance Payments), in which case the “Non-Competition Period” instead means
the period during the Executive’s employment with the Company and for the one (1)-year period after the end of Executive’s
employment with the Company.

 

(iii)           “Non-Solicitation
Period” means the period during Executive’s employment with the Company and for the one (1)-year period after the end
of Executive’s employment with the Company.

 

(iv)           “Company”
includes the Company and any of the Company’s affiliates.

 

(v)            “Covered
Customers” means persons; firms; associations; partnerships; corporations; limited liability companies; institutions, local,
state, federal and foreign entities or agencies; and other entities (A) to which the Company provided services or products before
or during Executive’s employment with the Company, (B) in relation to which Executive has provided any of the Services, or
(C) that the Company (or Executive in connection with the Services) has contacted or solicited with respect to the provision of services
or products before or during Executive’s employment with the Company.

 

(vi)           An
 “employee” or “independent contractor” of the Company is any person who is an employee or independent
contractor, respectively, of any of the Company on the date hereof or who becomes an employee or independent contractor of the Company
during Executive’s employment with the Company.

 

(h)            Remedies.
If Executive breaches any of the provisions contained in this Section 6, the Company shall have the remedies set forth below,
each of which shall be enforceable, and each of which is in addition to, and not in lieu of, any other rights and remedies available to
the Company at law or in equity. The provisions of this Section 6 are intended to be for the benefit of the Company and its
affiliates, and any of the Company or its affiliate may enforce such provisions. Executive recognizes and acknowledges that a breach of
the covenants contained in this Section 6 will cause irreparable harm to the goodwill and business of the Company, the exact
amount of which will be difficult to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, in the
event of an alleged or threatened breach by Executive of any of the provisions of this Section 6, the Company may, in addition
to all other rights and remedies existing in its favor, seek specific performance and/or injunctive or other relief in order to enforce
or prevent any violations of the provisions hereof. Additionally, if Executive breaches Executive’s obligations under Section 5
or Section 6, then the Company may immediately cease payments of any Basic Severance Payments and/or any Extended Severance
Payments and may recover any Basic Severance Payments and/or any Extended Severance Payments paid to Executive after such breach. The
cessation and recovery of such payments shall be in addition to, and not as an alternative to, any other remedies at law or in equity
available to the Company including, without limitation, the right to specific performance and/or injunctive or other relief.

 

    -10-

     

    

 

(i)             Severability.
In the event any provision of this Section 6 shall be determined by a court of competent jurisdiction to be unenforceable
by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive
in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the
maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable,
all as determined by such court in such action. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable
because of the scope or duration of or the area covered by such provision, the parties agree that the court making such determination
shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable
provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and
phrases, and such modified provision shall then be enforceable and shall be enforced. In the event that any court determines that the
time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties
agree that such covenants will remain in full force and effect, first, for the greatest time period, and second, in the greatest geographical
area that would not render them unenforceable.

 

(j)             Enforceability.
The Parties each acknowledge that the other party acted in good faith in the negotiation and execution of the provisions in this Section 6.
In particular, the Parties acknowledge that given the nature of Executive’s duties and responsibilities (and Executive’s associated
influence over the Company’s business and its relationships with its customers), the restrictions and duration of the obligations
set forth in this Section 6 are reasonable and no broader than necessary to protect the legitimate business interests of the
Company and the goodwill thereof. Executive further acknowledges that the restrictions and duration of this Section 6 do not
and will not impose an unreasonable hardship upon Executive. The Parties further agree that the requirements of this Section 6
shall survive the termination of Executive’s employment with the Company.

 

(k)            Waiver
or Inapplicability of Non-Competition Obligations. Executive may submit to the Board a written description setting out a reasonable
description (including without limitation the identity of any associated employer and other relevant parties) of any contemplated activity
that would or may otherwise violate or contravene Executive’s obligations under Section 6(e) (the “Specified
Activity”), and request that the Board waive or otherwise confirm the inapplicability of Executive’s obligations under
Section 6(e) with respect to such Specified Activity. If and to the extent the Board confirms in writing to Executive
the waiver or inapplicability of Executive’s obligations under Section 6(e) with respect to the Specified Activity
(such waiver or confirmation, not to be unreasonably withheld based on the interests of the Company), then Executive shall thereafter
have no liability or obligation under Section 6(e) with respect to the Specified Activity.

 

7.              Assignment.
This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon
Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the
Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation
or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially
all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation or benefits pursuant
to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. None of the obligations of Executive
under this Agreement may be assigned or transferred. Any other attempted assignment, transfer, conveyance or other disposition of Executive’s
right to compensation or other benefits will be null and void.

 

    -11-

     

    

 

8.              Notices.
All notices, requests, demands and other communications called for under this Agreement will be in writing and will be delivered personally
by hand or by courier, mailed by United States first-class mail, postage prepaid, or sent by email or by other electronic means directed
to the party to be notified at the address or email address indicated for such party on the signature page to this Agreement, or
at such other address or email address as such party may designate by 10 days’ advance written notice to the other parties hereto.
All such notices and other communications will be deemed given upon personal delivery, three (3) days after the date of mailing,
or when sent if given via email or other electronic means.

 

9.              Severability.
In the event that any provision(s) of this Agreement becomes or is declared by an arbitrator or a court of competent jurisdiction
to be illegal, unenforceable or void, this Agreement will continue in full force and effect without such provision(s).

 

10.            Arbitration.

 

READ THE FOLLOWING ARBITRATION PROVISION
CAREFULLY. IT LIMITS CERTAIN OF YOUR RIGHTS, INCLUDING YOUR RIGHT TO OBTAIN REDRESS THROUGH COURT ACTION

 

(a)            Executive
and the Company agree that other than any claims (by Company or Executive) for injunctive relief, any dispute or controversy arising out
of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination
thereof, will be settled by binding arbitration to be held in New Hampshire in accordance with the National Rules for the Resolution
of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions
or other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to
the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.

 

(b)            The
arbitrator(s) will apply New Hampshire law to the merits of any dispute or claim, without reference to rules of conflicts of
law. The arbitration proceedings will be governed by federal arbitration law and by the Rules, without reference to state arbitration
law.

 

(c)            EXECUTIVE
HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES
TO SUBMIT ANY CLAIMS (OTHER THAN THOSE FOR INJUNCTIVE RELIEF) WHICH ARISE OUT OF, RELATE TO, OR ARE IN CONNECTION WITH THIS AGREEMENT,
OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION
CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS
OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, CLAIMS OF DISCRIMINATION, HARASSMENT, OR RETALIATION, OTHER
THAN CLAIMS FOR INJUNCTIVE RELIEF.

 

(d)            The
Parties each acknowledge and agree that they have had ample time to consider the terms of this arbitration agreement, that they each negotiated
it at arms-length with equal bargaining power,

 

	 	 
	 	Executive Signature Signifying Agreement To Arbitration

 

    -12-

     

    

 

11.            Integration/Waiver.
This Agreement, its exhibits, and the confidentiality and invention assignment agreement described in Section 5 above represent
the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous
agreements whether written or oral, including without limitation any employment agreement previously signed by Executive. To the extent
that any provision of the CIIA conflicts with any provision in this Agreement, the provisions requiring Executive to comply with the higher
standard shall govern. No waiver, alteration or modification of any of the provisions of this Agreement will be binding unless in writing
and signed by duly authorized representatives of the parties hereto.

 

12.            Tax
Withholding. All payments made pursuant to this Agreement will be subject to applicable taxes and other withholdings or deductions
authorized or required by law.

 

13.            Governing
Law; Consent to Personal Jurisdiction. THIS AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE STATE OF NEW HAMPSHIRE WITHOUT REGARD FOR
CONFLICTS OF LAWS PRINCIPLES. EACH PARTY EXPRESSLY CONSENTS TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE
DISTRICT OF NEW HAMPSHIRE SUBJECT TO THE ARBITRATION PROVISION SET FORTH IN SECTION 10.

 

14.            Attorneys’
Fees. In the event of arbitration or litigation arising from or relating to this Agreement, each party shall be responsible for such
party’s own attorneys’ fees and costs and expenses including expert witness fees.

 

15.            Construction
of Agreement. The parties have participated jointly in the negotiating and drafting of this Agreement. If a question concerning
intent or interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship.

 

16.            Captions.
Titles or captions contained in this Agreement are for convenience and are not intended to affect the substantive meaning of any provision.

 

17.            Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

18.            Code
Section 409A. To the fullest extent applicable, amount and other benefits payable under this Agreement are intended to
be exempt from the definition of “nonqualified deferred compensation” under section 409A of the Internal Revenue Code of 1986,
as amended (“Section 409A”) in accordance with one or more of the exemptions available under the final Treasury
regulations promulgated under Section 409A and, notwithstanding anything in the Agreement to the contrary, to the extent that any
such amount or benefit is or becomes subject to Section 409A due to a failure to qualify for an exemption from the definition of
nonqualified deferred compensation in accordance with such final Treasury regulations, this Agreement must be interpreted and administered
to the extent possible, or amended, to comply with the applicable requirements of Section 409A with respect to these amounts or benefits.

 

[Signature page follows]

 

    -13-

     

    

 

IN WITNESS WHEREOF, each of
the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above
written.

 

	 	“COMPANY”
	 	 
	 	FlexEnergy Energy Systems, Inc.
	 	 
	 	By: 	 
	 	Name: 	Wes Kimmel
	 	Title: 	Chief Financial Officer
	 	Date: 	October 27, 2021
	 	 
	 	Address:
	 	 
	 	112 Corporate Drive, Suite 3
	 	Portsmouth, NH 03801
	 	Attn.: Board of Directors
	 	Email: 	 
	 	 
	 	“EXECUTIVE”
	 	 
	 	 
	 	Mark G. Schnepel
	 	 
	 	Date: 	October 27, 2021
	 	 
	 	Address:
	 	 
	 	 
	 	 
	 	 
	 	Email: 	 

 

     

     

    

 

Exhibit A

 

Form of General Release

 

     

     

    

 

Exhibit B

 

Form of Confidentiality and Invention Assignment
Agreement

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