Document:

EXHIBIT 4.5

 

AMENDMENT
TO WARRANTS

 

This AMENDMENT TO WARRANTS
(“Amendment”) is made effective as of October 16, 2012, by and between Green Ballast, Inc., a Delaware
corporation (“Company”), and GEMINI MASTER FUND, LTD., a Cayman Islands company (“Holder”).

 

WITNESSETH:

 

WHEREAS, on or about
April 15, 2011 the Company issued to the Holder three 7-year warrants to purchase Common Stock of the Company, including (A) a
warrant to purchase 1,500,000 shares of Common Stock at an exercise price of $0.30, (B) a warrant to purchase 1,500,000 shares
of Common Stock at an exercise price of $0.40, and (C) a warrant to purchase 2,000,000 shares of Common Stock at an exercise price
of $0.60, which warrants were amended and restated on or about October 21, 2011 and subject to one or more further amendments thereafter
(as amended, the “Warrants”); capitalized terms used herein and not otherwise defined shall have the meanings
ascribed thereto in the Warrants;

 

WHEREAS, on or about
the date hereof the Company is entering into one or more financing transactions, and in connection with such financing transactions
the Exercise Price under the Warrants has been automatically reduced to equal $0.25 pursuant to the terms of the Warrants; and

 

WHEREAS, in contemplation
of future financing transactions, the Holder has agreed to waive and amend one of the adjustment provisions in the Warrants as
set forth herein;

 

NOW THEREFORE, in consideration
of the foregoing premises and the mutual covenants set forth in this Amendment, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1)   Exercise
Price Reduction. The Company and the Holder acknowledge and agree that as a result of the Company's financing transactions,
the Exercise Price under each of the Warrants has been reduced to equal $0.25 as of the date hereof (subject to further adjustment
in accordance with the terms of the Warrants).

 

2)   Waiver.
Notwithstanding Section 3(b) of the Warrants, the number of Warrant Shares issuable upon exercise of each of the Warrants shall
not be increased as a result of the reduction in the Exercise Price provided for in Section 1 above, such that the total number
of Warrant Shares issuable upon exercise of all the Warrants equals 5 million shares of Common Stock in the aggregate (subject
to adjustment in accordance with the terms of the Warrants).

 

3)   Amendment.
Section 3(b) of the Warrants (Subsequent Equity Sales) is hereby deleted from each of the Warrants, effective immediately
following the adjustments contained herein.

 

    	 

    	 

    

 

		4)	Miscellaneous.

 

		a)	New Warrant. Promptly following the Holder's request, the Company shall issue one or more
amended and restated Warrants reflecting all amendments to date under the Warrants in exchange for the outstanding Warrants.

 

		b)	Full Force and Effect. Except as otherwise expressly provided herein, the Warrants and other
transaction documents pursuant to which the Warrants were issued and all documents entered into in connection therewith and the
other agreements and transactions contemplated thereby (“Transaction Documents”) shall remain in full
force and effect. Except for the modification contained herein, this Amendment shall not in any way waive or prejudice any of the
rights or obligations of the Holder or the Company under the Transaction Documents, under any law, in equity or otherwise, and
such modifications shall not constitute a waiver or modification of any other provision of the Transaction Documents nor a waiver
or modification of any subsequent default or breach of any obligation of the Company or of any subsequent right of the Holder.

 

		c)	Governing Law. This Amendment shall be governed by and construed in accordance with the
internal laws of the State of New York.

 

		d)	Counterparts. This Amendment may be executed in any number of counterparts, each of which
will be deemed an original, but all of which together will constitute one and the same instrument. This Amendment may be executed
by facsimile or by email of a digital image format or portable document format of the signature page hereto.

 

[Signature Page Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this Amendment to be duly executed effective the date first written above.

 

	 	GREEN BALLAST, INC.
	 	 
	 	By:	/s/ J. Kevin Adams
	 	Name: J. Kevin Adams
	 	Title: CEO
	 	 
	 	GEMINI MASTER FUND, LTD.
	 	By:      GEMINI STRATEGIES LLC, INC.
	 	as investment manager
	 	 
	 	By:	/s/ Steven Winters
	 	Name: Steven Winters
	 	Title:   PresidentFIRST AMENDING AGREEMENT dated December 7, 2012 (“Amendment
#1”) to the Letter Loan Agreement dated June 28, 2011

 

		Borrower:	Pioneer Electrogroup Canada Inc. (“Electrogroup”)

Pioneer Transformers
Ltd. (“Transformers”)

Bemag Transformer Inc.
(“Bemag”) *

Pioneer Wind Energy
Systems Inc. (“Systems”) **

 

			* While 7834080 Canada Inc. appeared on our Letter Loan Agreement dated June 28, 2011,
the entity amalgamated into Bemag Transforer Inc. on July 31, 2011 and therefore is no longer a Borrower.

			** Participation of Systems to the Letter Loan Agreement will be terminated and access to the
Facilities will cancelled on or before December 31st 2012.

 

		Lender:	Bank of Montreal (the “Bank”)

 

		Guarantor:	The Borrowers, Bernard Granby Realty Inc. (“Granby”) and any other present or future Subsidiaries of the
Borrowers (collectively, the “Guarantors”)

 

Reference is made to the June 28, 2011
Letter Loan Agreement (the “Agreement”) by which the Bank agreed to establish certain credit facilities in favour of
the Borrower. Following a recent review of the terms and conditions established in the Agreement, the Bank has agreed to amend
the Fee section, found on page 11 of the Agreement and which now reads as follows:

 

	FEES:	 	
        The
        Borrowers undertake to pay the following fees to the Bank:

         

        - All
        standard fees relating to banking operations and treasury management unless otherwise

           confirmed by the Bank from time to time.

         

        - A
non-refundable Facility Fee of CDN$50,000 representing 50bps on the Facility C

           commitment amount which was paid on the
date of the signature of the Letter Loan Agreement. 

 

This Amendment #1 is hereby incorporated
into and made a part of the Agreement, the terms and provisions of which, except to the extent modified by this Amendment #1 is
ratified and confirmed and continue unchanged in full force and effect. The Borrower acknowledges and agrees that it has no defences,
setoffs, counterclaims or deductions of any nature with respect to their obligations to Bank. Any reference to the Agreement in
this or any other instrument, document or agreement related thereto or executed in connection therewith shall mean the Agreement
as amended by this Amendment #1. The Agreement and this Amendment #1 shall be construed as integrated and complementary of each
other, and augmenting and not restricting Bank's powers, rights, remedies and security. All the capitalized terms used by that
are not defined herein shall have the meaning ascribed thereto in the Agreement.

 

The parties agree and covenant that this
Amendment #1 shall not constitute or create a novation of the respective obligations of the parties under the Agreement or any
other document. The Borrower confirms that the Security Documents constituted in favor of the Bank by the Borrower are expressly
reserved and remain in full force and effect without novation.

 

Yours truly,

 

Bank of Montreal

 

 

By:          /s/
Peter Clair                     

(duly authorized)

 

    	 

    	 

    

  

ACCEPTANCE

 

We hereby accept the foregoing amendment.

 

Signed in Fort Lee, NJ this 7th
day of December 2012

 

BORROWERS

 

PIONEER ELECTROGROUP CANADA INC.,

herein acting and represented by its shareholder

PIONEER POWER SOLUTIONS, INC.

 

 

By:/s/ Nathan Mazurek                         

Nathan Mazurek

President

 

PIONEER TRANSFORMERS LTD.

 

 

By:/s/ Nathan Mazurek                         

Nathan Mazurek

President

 

PIONEER WIND ENERGY SYSTEMS INC.,

herein acting and represented by its shareholder

PIONEER ELECTROGROUP CANADA INC.

 

 

By:/s/ Nathan Mazurek                         

Nathan Mazurek

Chairman

 

BEMAG TRANSFORMER INC.

 

 

By:/s/ Nathan Mazurek                         

Nathan Mazurek

President

 

The undersigned, acting as guarantor, hereby
accepts the foregoing terms and conditions and agrees to be bound thereby.

 

Signed in Fort Lee, NJ
this 7th day of December 2012

 

GUARANTOR

 

BERNARD GRANBY REALTY INC.

 

 

By:/s/ Nathan Mazurek                         

Nathan Mazurek

PresidentAMENDING AGREEMENT
NO. 2

 

 

THIS
AMENDING AGREEMENT is entered into as of the 11th day
of February, 2013

 

 

		BETWEEN:	BANK OF MONTREAL

(the "Lender")

 

		AND EACH OF:	PIONEER ELECTROGROUPCANADA
INC., a Canadian corporation

 

PIONEER TRANSFORMERS
LTD., a Canadian corporation

 

BEMAG TRANSFORMER
INC., a Canadian corporation

 

(collectively,
the "Borrowers")

 

 

WHEREAS
the Lender and the Borrowers have entered into a letter loan agreement dated June 28, 2011,
as amended by a first amending agreement dated December 7, 2012 pursuant to which the Lender
agreed to grant the Facilities to the Borrowers (collectively, the
''Letter Loan Agreement");

 

WHEREAS
each of Pioneer Transformers Ltd. and Bernard Granby Realty Inc. amalgamated on January 1st,
2013 and Pioneer Transformers Ltd. is the corporation resulting from such amalgamation.

 

WHEREAS
the parties wish to amend the Letter Loan Agreement to reflect such amalgamation and to amend other terms and conditions of the
Letter Loan Agreement;

 

NOW
THEREFORE in consideration of the mutual covenants herein
set forth, it is agreed as follows:

 

ARTICLE
1

INTERPRETATION

 

		1.1	All capitalized terms herein, unless otherwise expressly
defined herein, shall have the meanings ascribed to them in the Letter Loan Agreement.

		1.2	The Letter Loan Agreement and all documents or agreements
incidental or rela.ted thereto shall henceforth be read and construed in conjunction with this Agreement; and the Letter Loan
Agreement and this Agreement shall henceforth have effect as far as practicable as though the provisions thereof were contained
in one instrument.

 

		1.3	All the terms, conditions and provisions of the Letter
Loan Agreement not otherwise amended by this Agreement shall remain unchanged and have full force and effect.

 

    	 

    	 

    

 

ARTICLE
2

AMENDMENTS
TO THE LETTER LOAN AGREEMENT

 

		2.1	The section "BORROWERS"
of the Letter Loan Agreement is hereby deleted and replaced by the following:

 

		“BORROWERS:	Pioneer Electrogroup Canada
Inc. (“Electrogroup")

Pioneer Transformers
Ltd. (“Transformers")

Bemag
Transformer Inc. ("Bemag”)

(Electrogroup, Transformers and
Bemag, collectively the "Borrowers")"

 

		2.2	The section "GUARANTORS" of the Letter
Loan Agreement is hereby deleted and replaced by the following:

 

		“GUARANTORS:	The Borrowers and any other
present or future Subsidiaries of the Borrowers (collectively, the "Guarantors")"

 

		2.3	The section "SECURITY" of the Letter
Loan Agreement is hereby deleted and replaced by the following:

 

		“SECURITY:	All amounts owing from time
to time under or pursuant to any of the

Facilities shall be secured at all times by the following Security

Documents :

 

		-	First ranking hypothec in
the amount of $25,000,000 on the universality of all present and future immovable property and movable property of the Obligors
including, without limitation, the immovable property of
Bemag located at 33 Racine, Farnham, Quebec, but excluding
the immovable property of Transformers located at 612 Bernard Road, Granby, Quebec (the “Granby Property”);

		-	Security under section 427 of the Bank Act by the Borrowers;

		-	Movable hypothec and pledge by Electrogroup
on all shares of the other Borrowers;

		-	General Security Agreement by Transformers registered in the Province of
Ontario;

		-      	General
Security Agreement by Bemag registered in the Province of British Columbia;

		-	Cross corporate guarantee by each Borrower.

 

Unless otherwise specifically
indicated herein, all such security shall be first-ranking, subject only to Permitted Encumbrances."

 

		2.4	In the section "NO NOVATION"
of the Letter Loan Agreement, the words "and Granby'' are deleted.

 

    	 

    	 

    

 

		2.5	In Schedule II of the Letter Loan Agreement,
the reference to "Pioneer Wind Energy Systems Inc." in the first paragraph is deleted.

 

		2.6	In paragraph 1.15 of Schedule III (REPRESENTATIONS
AND WARRANTIES) of the Letter Loan Agreement, the reference to each of Pioneer Wind Energy Systems Inc., 7834080 Canada
Inc. and Bernard Granby Realty Inc. is deleted.

 

		2.7	In Schedule VI (NEGATIVE COVENANTS) of the Letter Loan
Agreement, paragraph 1.11 is deleted and replaced with the following:

 

		“1.11	make or pay any Distributions
for an amount exceeding 50% of Electrogroup's previous year's net income on a consolidated basis (non cumulative) and without
duplication for the calculation of Distributions."

 

ARTICLE
3

GENERAL
PROVISIONS

 

		3.1       
	Novation:  It is expressly understood
                   and agreed between the parties hereto that this Agreement does not constitute a novation of the terms and conditions
                   of the Facilities, the Letter Loan Agreement or the other Loan Documents, the Lender hereby reserving all of
                   its rights and recourses under the Facilities, the Letter Loan Agreement and the other Loan Documents. Nothing
                   set forth in this Agreement shall,
                   except as specifically set forth herein, be construed as altering the obligations
                   of the Obligors under the Facilities, the Letter Loan Agreement and the other Loan Documents. Nothing herein
                   shall in any way release the Obligors from their obligations to the Lender under the Facilities, the Letter
                   Loan Agreement and the other Loan Documents.

 

		3.2       
	Execution in Counterparts:  This
                   Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
                   each of which when so executed shall be deemed
                   to be an original and all of which taken together shall constitute but one and the same agreement.

 

		3.3	Governing Law: This Agreement shall be governed by and construed
in accordance with the Laws of the Province of Quebec and the federal laws of Canada applicable therein.

 

		3.4	Language: The parties hereby confirm
their express wish that this Agreement and all the documents and agreements directly or indirectly related thereto be drawn up
in English. Les parties reconnaissent leur volonté
expresse que la présente convention ainsi que tous les documents et conventions
qui s’y rattachent directement ou indirectement soient rédigés en langue anglaise.

 

    	 

    	 

    

 

S - 1

 

IN WITNESS
WHEREOF the parties hereto have executed this Agreement as of the day, month and year first above written.

 

LENDER:

 

BANK OF MONTREAL

 

 

	By:	/s/  Martin Bazinet
	 	Name:Martin Bazinet
	 	Title:Directeur / Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature page

 

Am ending Agreement No. 2

 

    	 

    	 

    

 

 

S - 2

  

 

 

 

ACCEPTANCE

 

Wc hereby accept the foregoing terms
and conditions.

 

Signed in Montreal, Quebec, thisday
of February, 2013

 

BORROWERS AND GUARANTORS

 

PIONEER ELECTROGROUP CANADA INC.,

herein acting and represented
by its shareholder Pioneer Power Solutions, Inc.

 

 

	By:	 	/s/  Andrew Minkow
	 	 	duly authorized
	 	 	Name:Andrew Minkow
	 	 	Title:CFO

 

 

 

PIONEER TRANSFORMERS
LTD.

 

 

	By:	 	/s/  James A. Wilkins
	 	 	duly authorized
	 	 	Name:James A. Wilkins
	 	 	Title:Vice-President

 

 

 

BEMAG TRANSFORMER
INC.

 

 

	By:	 	/s/  James A. Wilkins
	 	 	duly authorized
	 	 	Name:James A. Wilkins
	 	 	Title:Vice-President

 

 

 

 

 

 

 

 

 

Signature page

 

Am ending Agreement No. 2

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