Document:

Termination Agreement

 Exhibit 10.2 
 TERMINATION AGREEMENT 
 This Termination Agreement
(this “Agreement”) is made and entered into as of this 28th day of April, 2011 by and between The W Group, Inc., a Delaware corporation (“The W Group”), and Thomas J. Somodi (“Holder”). 

RECITALS 

WHEREAS, Holder is the owner of 144,444.44 shares (the “Exchanged Shares”) of common stock of The W Group, par value
$0.0001 per share (“The W Group Common Stock”). 
 WHEREAS, The W Group and Holder entered into (1) that
certain Employment Agreement, dated as of April 16, 2005 (as amended by that certain Amendment to Employment Agreement, dated as of January 1, 2008, between The W Group and Holder, and as the same may have otherwise been amended,
supplemented, restated or modified prior to the date hereof, the “Initial Employment Agreement”), and (2) that certain Subscription Agreement, dated as of April 16, 2005 (as amended by that certain Amendment to
Subscription Agreement, dated as of January 1, 2008, between The W Group and Holder, and as the same may have otherwise been amended, supplemented, restated or modified prior to the date hereof, the “Subscription Agreement”).

 WHEREAS, Format, Inc. a Nevada corporation that is to be renamed Power Solutions International, Inc. (the
“Company”), and The W Group have entered into that certain Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), by and among the Company, The W Group and the Company’s
wholly-owned subsidiary, PSI Merger Sub, Inc., a Delaware corporation (“Merger Sub”), pursuant to which (subject to the terms and conditions contained therein) Merger Sub shall merge with and into The W Group, and The W Group shall
continue as the surviving corporation as a wholly-owned subsidiary of the Company (the “Merger”). 
 WHEREAS,
pursuant to the Merger Agreement (subject to the terms and conditions contained therein), upon the closing of the Merger, the Company shall issue shares of common stock of the Company, par value $0.001 per share (“Company Common
Stock”), and shares of Series A Convertible Preferred Stock of the Company, par value $0.001 per share (“Company Preferred Stock”), to the stockholders of The W Group in exchange for all of the outstanding shares of The W
Group Common Stock held by such stockholders at the closing of the Merger 
 WHEREAS, pursuant to the Merger Agreement (subject
to the terms and conditions contained therein), upon the closing of the Merger, Holder is individually entitled to receive shares of Company Common stock and shares of Company Preferred Stock (collectively, the “Holder Merger
Consideration”) in exchange for the Exchanged Shares. 
 WHEREAS, Holder and Gary Winemaster (“Buyer”)
have entered into a Purchase and Sale Agreement, dated as of the date hereof, pursuant to which (subject to the terms and conditions set forth therein), Holder shall sell to Buyer, and Buyer shall purchase from Holder, all of the Holder Merger
Consideration. 

 WHEREAS, contemporaneously with the Closing, the Company and Holder will execute and deliver
an employment agreement, substantially in the form attached as Exhibit A (the “New Employment Agreement”), which will set forth the terms and conditions of Holder’s employment with the Company. 

WHEREAS, contemporaneously with the Closing, the Company and Holder will execute and deliver a registration rights agreement,
substantially in the form attached as Exhibit B (the “Registration Rights Agreement”), which will provide the Holder, Buyer and certain other stockholders of the Company with “piggyback” registration rights with
respect to shares of Company Common Stock. 
 NOW, THEREFORE, in consideration of the premises and the agreements set forth
below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 Exchange 

Section 1.1 Termination of Initial Employment Agreement and Subscription Agreement. 

(a) Termination and Limited Release 
 (i) Termination. Upon the terms and subject to the satisfaction or waiver of the conditions set forth in this Agreement, at the Closing and without any further action by The W Group or Holder, each
of the Initial Employment Agreement (the term of which expired prior to the date hereof) and the Subscription Agreement, including all of the respective rights and obligations of The W Group and Holder thereunder (including all such rights and
obligations that would otherwise survive a termination thereof), shall terminate and be of no further force or effect. The parties hereto hereby acknowledge and agree that, for the avoidance of doubt, the respective rights and obligations of The W
Group and Holder under the Initial Employment Agreement and the Subscription Agreement shall survive and continue in full force and effect until the Closing (including, for the avoidance of doubt, the execution and delivery by the Company and
Holder, and the effectiveness, of the New Employment Agreement). 
 (ii) Limitation on Rights under the Subscription
Agreement. Neither The W Group nor Holder shall exercise any of its rights under Sections 9, 10 or 12 of the Subscription Agreement prior to the earlier of (A) the Closing (whereupon the Subscription Agreement will terminate), or
(B) the termination of this Agreement pursuant to Section 4.13 hereof. 
 (iii) The W Group Limited Release.
The W Group hereby agrees, on behalf of itself and each of its subsidiaries, successors and assigns, that, effective as of the 

  
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Closing, The W Group releases Holder from any and all claims, obligations, rights, causes of action and liabilities, of whatever kind or nature, whether known or unknown, whether foreseen or
unforeseen, arising on or before such date, which The W Group or any of its affiliates, subsidiaries, successors or assigns ever had, now has or hereafter can, shall or may have for, upon or by reason of any matter, cause or thing whatsoever, which
are based upon or arise under the Initial Employment Agreement or the Subscription Agreement. 
 (iv) Holder Limited
Release. Holder hereby agrees that, effective as of the Closing, Holder releases The W Group, the Company and any of their respective affiliates and subsidiaries and their respective officers, directors, partners, members, managers, employees,
stockholders, agents and representatives, as well as their respective successors and assigns, from any and all claims, obligations, rights, causes of action and liabilities, of whatever kind or nature, whether known or unknown, whether foreseen or
unforeseen, arising on or before such date, which Holder ever had, now has or hereafter can, shall or may have for, upon or by reason of any matter, cause or thing whatsoever, which are based upon or arise under the Initial Employment Agreement or
the Subscription Agreement. 
 Section 1.2 Closing. Subject to the terms and conditions hereof, the closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place at the time and date that the closing of the Merger is effected (the “Closing Date”) and shall be subject to, and conditioned upon, the
closing of the Merger. The Closing shall take place at the offices of Katten Muchin Rosenman LLP, 525 West Monroe St., Chicago, Illinois 60661, or at such other place as the parties hereto may agree in writing. At the Closing, Holder shall deliver
or cause to be delivered to the Company the New Employment Agreement, the Registration Rights Agreement and each of the other Transaction Documents, each duly executed by Holder. 

ARTICLE II 

Representations, Warranties and Covenants of Holder 
 Holder does hereby make the following representations and warranties, the truth and correctness of each of which, as of the date hereof and as of the Closing Date, is a condition to the obligations of The
W Group to consummate the transactions contemplated hereby. 
 Section 2.1 Existence and Power. 

(a) Holder has the power and capacity to execute and deliver this Agreement, the New Employment Agreement, the Purchase and Sale
Agreement, the Registration Rights Agreement and each of the other agreements entered into by and between the Company and Holder in connection with the transactions contemplated hereby (collectively, the “Transaction Documents”), to
perform his obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. 
 (b) The
execution by Holder of this Agreement and each of the other Transaction Documents and the consummation by Holder of the transactions contemplated hereby and thereby (i) do not require the consent, approval, authorization, order, registration or
qualification of, or filing with, any governmental or self-regulatory authority or court, or body or 

  
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arbitrator having jurisdiction over Holder; and (ii) do not and will not (A) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Holder is a party, or (B) result in a violation of any Requirement of Law applicable to
Holder, except, in all of the above, where the failure to make such filings or obtain such consents, approvals, authorizations, orders, registrations or qualifications would not, and where such defaults, terminations, amendments, accelerations,
cancellations, or violations would not, individually or in the aggregate, reasonably be expected to have a material adverse effect (X) on the transactions contemplated by this Agreement or the other Transaction Documents or (Y) on the
authority or ability of Holder to enter into and perform his obligations under this Agreement and the other Transaction Documents. For purposes hereof, “Requirement of Law” means any judgment, order (whether temporary, preliminary
or permanent), writ, injunction, decree, statute, rule, regulation, notice, law or ordinance and shall also include any rules, regulations and interpretations of any applicable self-regulatory organizations. 

Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by Holder and
constitutes a legal, valid and binding obligation of Holder, enforceable against Holder in accordance with its terms, except as such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. As of the Closing Date, each of the other Transaction Documents to which Holder is a party will have been duly executed and
delivered by Holder and will constitute a legal, valid and binding obligation of Holder, enforceable against Holder in accordance with its terms, except as such enforcement may be subject to (x) bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (y) general principles of equity. 
 Section 2.3 Title to Exchanged Shares. Holder is the sole beneficial owner of, has sole investment power over (including the sole power to dispose of), and has good and valid title to, the
Exchanged Shares, subject to the liens thereon of The W Group’s lenders being released on the Closing Date. Except pursuant to the Merger Agreement, the Purchase Sale Agreement and the Voting Agreement with the Company being executed by Holder
in connection with the transactions contemplated by the Merger Agreement, Holder has not, and will not have, at any time, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of any of the Exchanged Shares
or the Holder Merger Consideration, or any of Holder’s rights in any of the Exchanged Shares or the Holder Merger Consideration, or (ii) given any Person any transfer order, power of attorney or other authority of any nature whatsoever
with respect to any of the Exchanged Shares or the Holder Merger Consideration. For purposes hereof, “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization or a government or any department or agency thereof or any other legal entity. 
 Section 2.4
Legal Proceedings. There is no suit, action, proceeding (including any compliance, enforcement or disciplinary proceeding), arbitration, formal or informal inquiry, audit, inspection, investigation or formal order of investigation of
complaint, to which Holder is a party pending or, to the knowledge of Holder, threatened or contemplated, before any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body that challenges the validity
or propriety of any of the transactions contemplated hereby. 

  
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 ARTICLE III 
 Representations, Warranties and Covenants of The W Group 
 The W Group does
hereby make the following representations and warranties, the truth and correctness of each of which, as of the date hereof and as of the Closing Date, is a condition to the obligations of Holder to consummate the transactions contemplated hereby.

 Section 3.1 Existence and Power. 
 (a) The W Group is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the power, authority and capacity to own its properties, to carry on
its business as currently conducted and proposed to be conducted, to execute and deliver this Agreement and each of the other agreements entered into by The W Group in connection with the transactions contemplated by this Agreement, to perform The W
Group’s obligations hereunder, and to consummate the transactions contemplated hereby. 
 (b) The execution, delivery and
performance of this Agreement and the consummation by The W Group of the transactions contemplated hereby, (i) do not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental or
self-regulatory authority or court, or body or arbitrator having jurisdiction over The W Group; (ii) do not and will not (A) conflict with or violate any provision of the Certificate of Incorporation of The W Group (the
“Certificate of Incorporation”) or the Bylaws of The W Group (the “The W Group Bylaws”), (B) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which The W Group or any of its subsidiaries is a party, or (C) result in a violation of any
Requirement of Law applicable to The W Group or any of its subsidiaries; except, in the case of clauses (i), (ii)(B) and (ii)(C) above, where the failure to make such filings or obtain such consents, approvals, authorizations, orders, registrations
or qualifications would not, and where such defaults, terminations, amendments, accelerations, cancellations, or violations would not, individually or in the aggregate, reasonably be expected to have a material adverse effect (I) on the
business, condition (financial or otherwise), properties or results of operations of The W Group and its subsidiaries, considered as one enterprise, (II) on the transactions contemplated by this Agreement or (III) on the authority or ability of The
W Group to enter into and perform its obligations under this Agreement. 
 Section 3.2 Valid and Enforceable Agreement;
Authorization. The execution, delivery and performance of this Agreement by The W Group and the consummation by The W Group of the transactions contemplated by this Agreement have been duly authorized by the board of directors of The W Group,
and no further consent, authorization or approval is required therefor by The W Group or its board of directors or The W Group’s stockholders under the Certificate of Incorporation, The W Group Bylaws or applicable law. This Agreement has been
duly executed and delivered by The W Group and constitutes a legal, valid and binding obligation of The W Group, enforceable against The W Group in accordance with its terms, except that such 

  
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enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and
(b) general principles of equity. 
 Section 3.3 Legal Proceedings. There is no suit, action, proceeding
(including any compliance, enforcement or disciplinary proceeding), arbitration, formal or informal inquiry, audit, inspection, investigation or formal order of investigation of complaint, to which The W Group or any of its subsidiaries or the
Company is a party pending or, to the knowledge of The W Group, threatened or contemplated, before any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body that challenges the validity or propriety
of any of the transactions contemplated hereby. 
 ARTICLE IV 

Miscellaneous Provisions 
 Section 4.1 Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or
(iii) one business day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications for each of the Company, The W Group and
Holder shall be as set forth on Schedule I hereof. 
 Section 4.2 Entire Agreement. This Agreement, the New
Employment Agreement and the other documents and agreements executed in connection with the transactions contemplated hereby embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede
all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative
to such subject matter, including any term sheets, emails or draft documents. 
 Section 4.3 Assignment; Binding
Agreement. No party hereto shall have the right to assign any or all of its respective rights or obligations under this Agreement without the written consent of each of the other parties hereto. This Agreement and the various rights and
obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. 
 Section 4.4 Counterparts. This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile or other electronic transmission shall be deemed for all purposes as constituting good and valid execution and delivery of this
Agreement by such party. 
 Section 4.5 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to specific performance of the terms
and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. 

  
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 Section 4.6 Governing Law; Jurisdiction; Jury Trial. All questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the State of Illinois 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 suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement 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 HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

Section 4.7 No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any Person not a party
hereto, or any such Person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. 

Section 4.8 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged
(other than in accordance with its terms), in whole or in part, except by a writing executed by each of the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective
or binding unless such waiver shall be in writing and signed by the party hereto claimed to have given such waiver or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of this
Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any
noncompliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach. 
 Section 4.9 Construction; Interpretation; Certain Terms. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. Section, schedule, exhibit, recital and party references are to this Agreement unless otherwise stated. The words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this
Agreement as a whole and not to any particular section or provision of this Agreement, and reference to a particular section of this Agreement shall include 

  
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all subsections thereof. The term “including” as used in this Agreement shall mean including, without limitation, and shall not be deemed to indicate an exhaustive enumeration of the
items at issue. All terms and words used in this Agreement, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require. No party hereto, nor its counsel,
shall be deemed the drafter of this Agreement for purposes of construing the provisions of this Agreement. 
 Section 4.10
No Broker. Each party hereto represents and warrants that it has not engaged any third party as broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions
contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible. 
 Section 4.11
Further Assurances. Each of The W Group and Holder hereby agrees to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably
request in connection with the transactions contemplated by this Agreement. 
 Section 4.12 Headings. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

Section 4.13 Termination. This Agreement shall terminate automatically upon the termination of the Merger Agreement and shall
be terminable by any party hereto after May 31, 2011, but prior to the Closing, if the Merger has not been consummated on or prior to such date, except that the right to terminate under this Section 4.13 will not be available to any
party hereto whose breach of any of the provisions of, or failure to fulfill any of its obligations under, this Agreement has been a principal cause of, or resulted in, the failure to consummate the Merger by such date. 

*  *  *  *  *  * 

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

			
	THE W GROUP:
	
	THE W GROUP, INC.
		
	By:	 	 /s/ Gary S. Winemaster

	Name:	 	Gary S. Winemaster
	Title:	 	President
	
	HOLDER:
	
	 /s/ Thomas J. Somodi

	Thomas J. Somodi

[Signature Page to Termination Agreement] 

 Schedule I 

Notice Information 

The Company: 
 Power Solutions
International, Inc. 
 c/o The W Group 

655 Wheat Lane 
 Wood Dale, IL 60191 

Fax: (630) 350-0103 
 with a copy to:

 Katten Muchin Rosenman LLP 
 525 W.
Monroe Street 
 Chicago, IL 60661-3693 

Attn: Mark D. Wood, Esq. 
 Fax:
(312) 577-8858 
 Group: 
 The W Group, Inc. 
 655 Wheat Lane 
 Wood Dale, IL 60191 
 Fax: (630) 350-0103 

with a copy to: 
 Katten Muchin Rosenman LLP

 525 W. Monroe Street 
 Chicago, IL
60661-3693 
 Attn: Mark D. Wood, Esq. 

Fax: (312) 577-8858 

 Holder: 
 Thomas J. Somodi 
 c/o The W Group 
 655 Wheat Lane 
 Wood Dale, IL 60191 
 Fax: (630) 350-0103 
 with a copy to: 

Freeborn & Peters LLP 
 311 South
Wacker Drive 
 Suite 3000 
 Chicago, IL
60606 
 Attn: Todd R. Southwell, Esq. 

Fax: 312-360-6994 

 Exhibit A 

Form of New Employment Agreement 
 [Copy of New Employment Agreement attached as Exhibit 10.3 to this Form 8-K] 

 Exhibit B 

Form of Registration Rights Agreement 
 [Copy of Registration Rights Agreement attached as Exhibit 10.10 to this Form 8-K] 

 PURCHASE AND SALE AGREEMENT 

This Purchase and Sale Agreement (this “Agreement”) is made and entered into as of this 28th day of April, 2011, by and between Thomas J. Somodi
(“Seller”) and Gary S. Winemaster (“Buyer”) and shall be effective on the Closing Date (as defined in the Merger Agreement (as defined below))(the “Effective Date”). 

RECITALS 

WHEREAS, Seller is the owner of 144,444.44 shares (the “Exchanged Shares”) of common stock, par value $0.0001 per share
(“The W Group Common Stock”), of The W Group, Inc., a Delaware corporation (“The W Group”). 

WHEREAS, The W Group and Seller entered into (1) that certain Employment Agreement, dated as of April 16, 2005 (as amended by
that certain Amendment to Employment Agreement, dated as of January 1, 2008, between The W Group and Seller, and as the same may have otherwise been amended, supplemented, restated or modified prior to the date hereof, the “Initial
Employment Agreement”), and (2) that certain Subscription Agreement, dated as of April 16, 2005 (as amended by that certain Amendment to Subscription Agreement, dated as of January 1, 2008, between The W Group and Seller, and
as the same may have otherwise been amended, supplemented, restated or modified prior to the date hereof, the “Subscription Agreement”). 
 WHEREAS, Format, Inc., a Nevada corporation to be renamed Power Solutions International, Inc. (the “Company”), and The W Group have entered into that certain Agreement and Plan of Merger,
dated as of the date hereof (the “Merger Agreement”), by and among the Company, The W Group and the Company’s wholly-owned subsidiary, PSI Merger Sub, Inc., a Delaware corporation (“Merger Sub”),
pursuant to which (subject to the terms and conditions contained therein) Merger Sub shall merge with and into The W Group, and The W Group shall continue as the surviving corporation as a wholly-owned subsidiary of the Company (the
“Merger”). 
 WHEREAS, pursuant to the Merger Agreement (subject to the terms and conditions contained
therein), upon the closing of the Merger, the Company shall issue shares of common stock of the Company, par value $0.001 per share (such stock and any securities into which such stock may be reclassified after the Effective Date, the
“Company Common Stock”), and shares of Series A Convertible Preferred Stock of the Company, par value $0.001 per share (such stock and any securities into which such stock may be reclassified after the Effective Date, the
“Company Preferred Stock”), to the stockholders of The W Group in exchange for all of the outstanding shares of The W Group Common Stock held by such stockholders at the closing of the Merger. 

WHEREAS, pursuant to the Merger Agreement (subject to the terms and conditions contained therein), upon the closing of the Merger, Seller
is individually entitled to receive 1,000,000 shares of Company Common Stock (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split (as defined in the Merger Agreement)) and similar
events after the Effective Date) (the “Seller Common Shares”) and 

 
9,596.09002 shares of Company Preferred Stock (subject to proportionate adjustment for stock splits, stock dividends, stock combinations and similar events after the Effective Date) (the
“Seller Preferred Shares” and, together with the Seller Common Shares, the “Seller Shares”) in exchange for the Exchanged Shares. 
 WHEREAS, on the Effective Date, the Company and Seller will execute and deliver an Employment Agreement, which shall set forth the terms and conditions of Seller’s employment with the Company.

 WHEREAS, The W Group and Seller have entered into a Termination Agreement, dated as of the date hereof (the
“Termination Agreement”), pursuant to which (subject to the terms and conditions contained therein), on the Effective Date, the Initial Employment Agreement and the Subscription Agreement shall terminate and be of no further force
or effect. 
 WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to Buyer, all of the Seller Shares,
upon the terms and conditions set forth in this Agreement. 
 WHEREAS, capitalized terms used but not defined elsewhere in this
Agreement shall have the meanings assigned to them in Section 4.10 hereof. 
 NOW, THEREFORE, in consideration of the
premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 

Purchase and Sale 
 Section 1.1 Purchase and Sale of the Seller Shares. Effective as of the Effective Date, Seller and Buyer hereby agree that, on the Sale Closing Date (as defined in Section 1.2), Seller
shall sell and convey to Buyer, and Buyer shall purchase and acquire from Seller, all of the Seller Shares (including all of Seller’s right, title and interest therein and thereto), free and clear of all Encumbrances (other than any Encumbrance
created by Buyer and as expressly provided in Section 1.2), in exchange for the consideration set forth in Section 1.3. 
 Section 1.2 Closing. Subject to the terms and conditions hereof, the closing of the transactions contemplated by this Agreement (the “Sale Closing”) shall take place at a time
and date selected by Buyer by notice to Seller; provided that such date shall be within 90 days after the Effective Date (the date so selected by Buyer, the “Sale Closing Date”). The Closing shall take place at the offices of Katten
Muchin Rosenman LLP, 525 West Monroe St., Chicago, Illinois 60661, or at such other place as the parties hereto may agree in writing. At the Sale Closing, (a) Seller shall deliver and convey to Buyer all of the Seller Shares (including all of
Seller’s right, title and interest therein and thereto), together with such other documents or instruments of conveyance or transfer as may be necessary or desirable to transfer to and confirm in Buyer all right, title and interest in and to
the Seller Shares, free and clear of all Encumbrances (other than any Encumbrance created by Buyer and as expressly provided in this Section 1.2); provided, however, that 410,000 of the Seller Common Shares (subject to proportionate adjustment
for stock splits, stock dividends, stock combinations (including the Reverse Split) and 

  
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similar events after the Effective Date) and 3,934.39691 of the Seller Preferred Shares (subject to proportionate adjustment for stock splits, stock dividends, stock combinations and similar
events after the Effective Date) shall be deposited with the Escrow Agent (as defined below) pursuant to the Escrow Agreement (as defined below), for release only in accordance therewith (the Seller Common Shares and Seller Preferred Shares
deposited with the Escrow Agent pursuant to the Escrow Agreement, collectively, the “Escrowed Shares”), (b) Buyer shall pay the Initial Payment Amount (as defined in Section 1.3(a)) to Seller, by wire transfer in
immediately available funds, and (c) Seller and Buyer shall enter into an escrow agreement with an escrow agent selected by Buyer and reasonably acceptable to Seller (the “Escrow Agent”), which escrow agreement shall provide
that (i) the Seller Shares deposited with the Escrow Agent pursuant thereto shall be immediately released and delivered to Buyer upon the payment by Buyer to Seller of the Additional Payment Amount (as defined in Section 1.3(b)),
(ii) the Seller Shares deposited with the Escrow Agent pursuant thereto shall, at the election of Seller following an Additional Payment Default (as defined in Section 1.3), be forfeited back to Seller (any such election, a
“Default Election”) and (iii) Buyer shall be entitled to receive dividends on, and exercise voting rights with respect to, all of the Escrowed Shares while they are on deposit with the Escrow Agent, and which escrow agreement
shall otherwise be on terms mutually acceptable to Seller and Buyer (the “Escrow Agreement”). Notwithstanding the foregoing, at the election of Buyer, Seller and Buyer shall enter into a pledge and security agreement, rather than an
escrow agreement, whereby Buyer shall pledge the Escrowed Shares (which shall not be encumbered in any way) to Seller to secure Buyer’s obligation to pay the Additional Payment Amount to Seller and Seller will take a first priority lien on such
Escrowed Shares, which pledge and security agreement shall be on terms mutually acceptable to Seller and Buyer (and in such case, for purposes hereof, the term “Escrow Agreement” shall mean such pledge and security agreement).

 Section 1.3 Consideration for the Purchase of the Seller Share. 

(a) Initial Payment. On the Sale Closing Date, upon delivery by Seller of the Seller Shares to Buyer (but subject to the deposit
of the Escrowed Shares with the Escrow Agent pursuant to the Escrow Agreement) as set forth in Section 1.2), Buyer shall pay to Seller $2,500,000 in cash (the “Initial Payment Amount”), by wire transfer of immediately available
funds. 
 (b) Additional Payment. After (but not before) the date (the “Additional Payment Trigger
Date”) that is the earlier of (i) the date of the commencement of employment of a new Chief Financial Officer of the Company (replacing Seller in such position) and (ii) the second anniversary of the Effective Date, but in no
event later than the date (the “Additional Payment Deadline”) that is the later of (X) the date that is 60 days after the Additional Payment Trigger Date and (Y) the date that is eight months after the Effective Date,
Buyer shall pay to Seller $1,750,000 in cash (the “Additional Payment Amount”), by wire transfer of immediately available funds (provided, however, that if the Additional Payment Date occurs in 2011, Buyer shall use commercially
reasonable efforts to make such payment by the last Business Day of 2011). The failure of Buyer to pay to Seller the Additional Payment Amount by the date that is 60 days after the Additional Payment Deadline shall constitute an “Additional
Payment Default.” The obligation of Buyer to pay the Additional Payment Amount to Seller shall terminate and be of no further force or effect upon a Default Election made by Seller following an Additional Payment Default. 

  
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 (c) Tranche I Shares. Within 90 days following the last day of the Tranche I Vesting
Period, Buyer shall deliver and convey to Seller 3,933,333 shares1/ of Company Common Stock (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split) and similar events after the Effective Date) (the
“Tranche I Shares”), free and clear of all Encumbrances (other than any Encumbrance created by Seller). For purposes hereof, “Tranche I Vesting Period” means the first period of ten (10) consecutive Trading
Days commencing after the Commencement Date and ending prior to the Expiration Date on each of at least seven (7) of which the Common Stock Market Value is equal to or greater than
$0.63562/ (subject to proportionate adjustment for stock
splits, stock dividends, stock combinations (including the Reverse Split) and similar events after the Effective Date). In the event that, prior to the occurrence of a Tranche I Vesting Period, the Company is consummating a merger or consolidation
with or into another entity in which the Company is not the surviving entity (a “Sale Transaction”) and in which the value of the consideration to be received for each outstanding share of Company Common Stock by the holders thereof
is equal to or greater than $0.6356 (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split) and similar events after the Effective Date), as determined in good faith by the
Company’s board of directors (the “Board”), Buyer shall deliver the Tranche I Shares to Seller prior to such consummation as if the Tranche I Vesting Period had occurred immediately prior thereto. In the event that, prior to
the occurrence of a Tranche I Vesting Period, the Company shall consummate a Sale Transaction in which the value of the consideration to be received for each outstanding share of Company Common Stock by the holders thereof is less than $0.6356, as
determined in good faith by the Board, then, immediately upon consummation of such Sale Transaction, any right of Seller to receive from Buyer, and any obligation of Buyer to deliver to Seller, the Tranche I Shares shall terminate and be of no
further force or effect. 
 (d) Tranche II Shares. Within 90 days following the last day of the Tranche II Vesting
Period, Buyer shall deliver and convey to Seller 4,720,000 shares3/ of Company Common Stock (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split) and similar events after the Effective Date) (the
“Tranche II Shares”), free and clear of all Encumbrances (other than any Encumbrance created by Seller). For purposes hereof, “Tranche II Vesting Period” means the first period of ten (10) consecutive Trading
Days commencing after the Commencement Date and ending prior to the Expiration Date on each of at least seven (7) of which the Common Stock Market Value is equal to or greater than
$0.79454/ (subject to proportionate adjustment for stock
splits, stock dividends, stock combinations (including the Reverse Split) and similar events after the Effective Date). In the event that, prior to the occurrence of a Tranche II Vesting Period, the Company is consummating a Sale Transaction in
which the value of the consideration to be received for each outstanding share of Company Common Stock by the holders thereof is equal to or greater than $0.7945 (subject to proportionate adjustment for stock splits, stock dividends, stock
combinations (including the Reverse Split) and similar events after the Effective Date), as determined in good faith by the Board, Buyer shall deliver the Tranche II Shares to Seller prior to such consummation as if the Tranche II Vesting Period had
occurred immediately prior 
  

	1/	122,917 shares giving effect to the Reverse Split as if it occurred on the Effective Date. 

	2/	$20.3392 giving effect to the Reverse Split as if it occurred on the Effective Date. 

	3/	147,500 shares giving effect to the Reverse Split as if it occurred on the Effective Date. 

	4/	$25.424 giving effect to the Reverse Split as if it occurred on the Effective Date. 

  
 - 4 -

 
thereto. In the event that, prior to the occurrence of a Tranche II Vesting Period, the Company shall consummate a Sale Transaction in which the value of the consideration to be received for each
outstanding share of Company Common Stock by the holders thereof is less than $0.7945, as determined in good faith by the Board, then, immediately upon consummation of such Sale Transaction, any right of Seller to receive from Buyer, and any
obligation of Buyer to delver to Seller, the Tranche II Shares shall terminate and be of no further force or effect. 
 (e)
Tranche III Shares. Within 90 days following the last day of the Tranche III Vesting Period, Buyer shall deliver and convey to Seller 3,146,656 shares5/ of Company Common Stock (subject to proportionate adjustment for stock splits, stock dividends, stock combinations
(including the Reverse Split) and similar events after the Effective Date) (the “Tranche III Shares” and, collectively with the Tranche I Shares and the Tranche II Shares, the “Tranche Shares”), free and clear of
all Encumbrances (other than any Encumbrance created by Seller). For purposes hereof, “Tranche III Vesting Period” means the first period of ten (10) consecutive Trading Days commencing after the Commencement Date and ending
prior to the Expiration Date on each of at least seven (7) of which the Common Stock Market Value is equal to or greater than $0.95346/ (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse
Split) and similar events after the Effective Date). In the event that, prior to the occurrence of a Tranche III Vesting Period, the Company is consummating a Sale Transaction in which the value of the consideration to be received for each
outstanding share of Company Common Stock by the holders thereof is equal to or greater than $0.9534 (subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split) and similar events after
the Effective Date), as determined in good faith by the Board, Buyer shall deliver the Tranche III Shares to Seller prior to such consummation as if the Tranche III Vesting Period had occurred immediately prior thereto. In the event that, prior to
the occurrence of a Tranche III Vesting Period, the Company shall consummate a Sale Transaction in which the value of the consideration to be received for each outstanding share of Company Common Stock by the holders thereof is less than $0.9534, as
determined in good faith by the Board, then, immediately upon consummation of such Sale Transaction, any right of Seller or any other person or entity to receive from Buyer, and any obligation of Buyer to deliver to Seller, the Tranche III Shares
shall terminate and be of no further force or effect. 
 (f) Cash Payment Election. Notwithstanding the foregoing, in
lieu of delivering shares of Company Common Stock as may required by Section 1.3(c), (d) or (e), and in full satisfaction of Buyer’s obligation (if any) to make such delivery, Buyer may elect to pay to Seller an amount of cash, by
wire of transfer of immediately available funds by the delivery deadline set forth in such Section, an amount in cash equal to the product of the applicable threshold Common Stock Market Value (i.e., $0.6356 in the case of Section 1.3(c),
$0.7945 in the case of Section 1.3(d) and $0.9534 in the case of Section 1.3(e), in each case subject to proportionate adjustment for stock splits, stock dividends, stock combinations (including the Reverse Split) and similar events after
the Effective Date), multiplied by the number of shares of Company Common Stock that Buyer would otherwise be required to deliver pursuant to such Section. Upon any such payment, any obligation of Buyer to deliver shares pursuant to
Section 1.3(b), (c) or (d), as applicable, shall terminate and be of no further force or effect. 
  

	5/	98,333 shares giving effect to the Reverse Split as if it occurred on the Effective Date. 

	6/	$30.5088 giving effect to the Reverse Split as if it occurred on the Effective Date. 

  
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 ARTICLE II 
 Representations, Warranties and Covenants of Seller 
 Seller does hereby
make the following representations and warranties, as of the date hereof, as of the Effective Date and as of the Sale Closing Date: 
 Section 2.1 Power and Authority. 
 (a) Seller has the power and
capacity to execute and deliver this Agreement, the Escrow Agreement and each of the other agreements entered into by and between Seller and Buyer in connection with the transactions contemplated hereby (collectively, the “Transaction
Documents”), to perform his obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby (collectively, the “Transactions”). 

(b) The execution by Seller of this Agreement and each of the other Transaction Documents and the consummation by Seller of the
transactions contemplated hereby and thereby (i) do not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental or self-regulatory authority or court, or body or arbitrator having
jurisdiction over Seller; and (ii) do not and will not (A) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Seller is a party, or (B) result in a violation of any Requirement of Law applicable to Seller, except in all of the above, where the failure to make
such filings or obtain such consents, approvals, authorizations, orders, resignations or qualifications would not, and where such defaults, terminations, amendments, accelerations, cancellations, or violations would not, individually or in the
aggregate, reasonably be expected to have a material adverse effect (X) on the Transactions or (Y) on the authority or ability of Seller to enter into and perform his obligations under this Agreement and the other Transaction Documents.
For purposes hereof, “Requirement of Law” means any judgment, order (whether temporary, preliminary or permanent), writ, injunction, decree, statute, rule, regulation, notice, law or ordinance and shall also include any rules,
regulations and interpretations of any applicable self-regulatory organizations. 
 Section 2.2 Valid and Enforceable
Agreement; Authorization. This Agreement has been duly executed and delivered by Seller and constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforcement may be
subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. As of the Sale Closing Date, each of
the other Transaction Documents to which Seller is a party will have been duly executed and delivered by Seller and will constitute a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as
such enforcement may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (y) general principles of equity. 

  
 - 6 -

 Section 2.3 Title to Exchanged Shares and Seller Shares. Seller is the sole
beneficial owner of, has the sole investment power over (including the sole power to dispose of), and has good and valid title to, the Exchanged Shares, subject to the liens thereon of The W Group’s lenders being released on the Effective Date,
and at all times on and after the Effective Date through (and including) the Sale Closing Date will be the sole beneficial owner of, have the sole investment power over (including the sole power to dispose of), and have good and valid title to, all
of the Seller Shares. At the Sale Closing, Seller shall transfer good and valid title to the Seller Shares to Buyer, free and clear of all Encumbrances (other than any Encumbrance created by Buyer and as expressly provided in Section 1.2).
Except pursuant to this Agreement and the Voting Agreement being entered into between Seller and the Company as of the Effective Date, Seller has not, and will not have, at any time, in whole or in part, (i) assigned, transferred, hypothecated,
pledged or otherwise disposed of any of the Exchanged Shares or the Seller Shares, or any of Seller’s rights in any of the Exchanged Shares or the Seller Shares, or (ii) given any Person any transfer order, power of attorney or other
authority of any nature whatsoever with respect to any of the Exchanged Shares or the Seller Shares. 
 Section 2.4
Legal Proceedings. There is no suit, action, proceeding (including any compliance, enforcement or disciplinary proceeding), arbitration, formal or informal inquiry, audit, inspection, investigation or formal order of investigation of
complaint, to which Seller is a party pending or, to the knowledge of Seller, threatened or contemplated, before any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body that challenges the validity
or propriety of any of the Transactions. 
 Section 2.5 Securities Laws. 

(a) Seller is an “Accredited Investor” as defined in Rule 501(a) of Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”). 
 (b) Seller has received all documents, materials and information which Seller deems necessary or appropriate for evaluating an investment in the Company or which have been requested by Seller and has had
a reasonable opportunity to ask questions of the Company and its representatives regarding the Company and the terms and conditions of the Transactions, and the Company has answered all such inquiries that Seller or Seller’s representatives
have put to it. Seller has had access to all additional information necessary to verify the accuracy of the information set forth in any materials furnished by the Company to Seller, and has taken all the steps necessary to evaluate the merits and
risks of an investment as proposed hereunder. 
 (c) Seller has such knowledge and experience in finance, securities,
investments and other business matters so as to be able to evaluate the merits and risks of the Transactions and protect the interests of Seller in connection with the Transactions. 

(d) Seller understands that an investment in the Company Common Stock is a highly speculative venture involving a high degree of
financial risk and Seller is familiar with the various risks of an investment in the Company as proposed herein, and can afford to bear such risks, including the risks of losing Seller’s entire investment. 

  
 - 7 -

 (e) Seller acknowledges that no public market for the Company Common Stock presently exists
and none may develop in the future and that Seller may find it difficult or impossible to liquidate Seller’s investment in the Company Common Stock at a time when it may be desirable to do so, or at any other time. 

(f) Seller has been advised by the Company that none of the Tranche Shares have been registered under the Securities Act; that the
Tranche Shares will be issued on the basis of the statutory exemption provided by Section 4(1) of the Securities Act and under available exemptions from state securities laws; that the Transactions have not been reviewed by, passed on or
submitted to any federal or state agency or self regulatory organization where an exemption or preemption is being relied upon; and that Buyer’s reliance thereon is based in part upon the representations made by Seller in this Agreement.

 (g) Seller acknowledges that he has been informed by Buyer of, or is otherwise familiar with, the nature of the limitations
imposed by the Securities Act and the rules and regulations thereunder on the transfer of the Tranche Shares. In particular, Seller agrees that no sale, assignment or transfer of any of the Tranche Shares shall be valid or effective, and the Company
shall not be required to give any effect to such a sale, assignment or transfer, unless (i) the sale, assignment or transfer of such Tranche Shares is registered under the Securities Act, it being understood that none of the Tranche Shares are
currently registered for sale and that the Company has no obligation or intention to so register the Tranche Shares (except pursuant to the Registration Rights Agreement (as defined in the Termination Agreement)), or (ii) such Tranche Shares
are sold, assigned or transferred in accordance with all the requirements and limitations of Rule 144 under the Securities Act (“Rule 144”), it being understood that Rule 144 would not be available at the present time for the sale
of the Tranche Shares, or (iii) such sale, assignment or transfer is otherwise exempt from registration under the Securities Act. Seller further understands that, in connection with any sale, assignment or transfer of any of the Tranche Shares
or a sale of any of the Tranche Shares pursuant to registration under the Securities Act, Seller shall be required to deliver to the Company (A) an opinion, satisfactory to the Company, of legal counsel acceptable to the Company regarding the
availability of exemptions from registration under federal or applicable state securities laws, and (B) such other documents as may be reasonably required by the Company. Each certificate or instrument representing any of the Tranche Shares
shall bear a legend substantially to the foregoing effect. 
 (h) Seller will acquire the Tranche Shares for Seller’s own
account for investment and not with a view to the sale or distribution thereof or the granting of any participation therein, except pursuant to transactions registered under, or exempt from the registration requirements of, federal and applicable
state securities laws, and has no present intention of, or any existing agreements or arrangements with respect to, distributing or selling to others any of the Tranche Shares or granting any participation therein. 

(i) The Tranche Shares were not offered to Seller by any means of general solicitation or general advertising. 

  
 - 8 -

 ARTICLE III 
 Representations, Warranties and Covenants of Buyer 
 Buyer does hereby make
the following representations and warranties, as of the date hereof, as of the Effective Date and as of the Sale Closing Date: 

Section 3.1 Existence and Power. 
 (a) Buyer has the power and capacity to execute and deliver this Agreement, the Escrow Agreement and each of the other Transaction Documents to which he is a party, to perform his obligations hereunder
and thereunder, and to consummate the Transactions. 
 (b) The execution by Buyer of this Agreement and each of the other
Transaction Documents to which he is a party and the consummation by Buyer of the Transactions (i) do not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental or self-regulatory
authority or court, or body or arbitrator having jurisdiction over Buyer; and (ii) do not and will not (A) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Buyer is a party, or (B) result in a violation of any Requirement of Law applicable to Buyer, except in all of
the above, where the failure to make such filings or obtain such consents, approvals, authorizations, orders, resignations or qualifications would not, and where such defaults, terminations, amendments, accelerations, cancellations, or violations
would not, individually or in the aggregate, reasonably be expected to have a material adverse effect (X) on the transactions contemplated by this Agreement or the other Transaction Documents or (Y) on the authority or ability of Buyer to
enter into and perform his obligations under this Agreement and the other Transaction Documents. 
 Section 3.2 Valid
and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by Buyer and constitutes a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as such
enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. As of the Sale
Closing Date, each of the other Transaction Documents to which Buyer is a party will have been duly executed and delivered by Buyer and will constitute a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its
terms, except as such enforcement may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (y) general principles of
equity. 
 Section 3.3 Title to Exchanged Shares. Buyer shall transfer good and valid title to any Tranche Shares
delivered to Seller pursuant to Section 1.3(c), (d) or (e), free and clear of all Encumbrances (other than any Encumbrance created by Seller). 
 Section 3.4 Legal Proceedings. There is no suit, action, proceeding (including any compliance, enforcement or disciplinary proceeding), arbitration, formal or informal inquiry,

  
 - 9 -

 
audit, inspection, investigation or formal order of investigation of complaint, to which Buyer is a party pending or, to the knowledge of Buyer, threatened or contemplated, before any court,
administrative or regulatory body, governmental authority, arbitrator, mediator or similar body that challenges the validity or propriety of any of the Transactions. 
 Section 3.5 Securities Laws. 
 (a) Buyer is an “Accredited
Investor” as defined in Rule 501(a) of Regulation D. 
 (b) Buyer has received all documents, materials and
information which Buyer deems necessary or appropriate for evaluating an investment in the Company or which have been requested by Buyer and has had a reasonable opportunity to ask questions of the Company and its representatives regarding the
Company and the terms and conditions of the Transactions, and the Company has answered all such inquiries that Buyer or Buyer’s representatives have put to it. Buyer has had access to all additional information necessary to verify the accuracy
of the information set forth in any materials furnished by the Company to Buyer, and has taken all the steps necessary to evaluate the merits and risks of an investment as proposed hereunder. 

(c) Buyer has such knowledge and experience in finance, securities, investments and other business matters so as to be able to evaluate
the merits and risks of the Transactions and protect the interests of Buyer in connection with the Transactions. 
 (d) Buyer
understands that an investment in the Company Common Stock is a highly speculative venture involving a high degree of financial risk and Buyer is familiar with the various risks of an investment in the Company as proposed herein, and can afford to
bear such risks, including the risks of losing Buyer’s entire investment. 
 (e) Buyer acknowledges that no public market
for the Company Common Stock presently exists and none may develop in the future and that Buyer may find it difficult or impossible to liquidate Buyer’s investment in the Company Common Stock at a time when it may be desirable to do so, or at
any other time. 
 (f) Buyer has been advised by the Company that none of the Seller Shares have been registered under the
Securities Act; that the Seller Shares will be issued on the basis of the statutory exemption provided by Section 4(1) of the Securities Act and under available exemptions from state securities laws; that the Transactions have not been reviewed
by, passed on or submitted to any federal or state agency or self regulatory organization where an exemption or preemption is being relied upon; and that Seller’s reliance thereon is based in part upon the representations made by Buyer in this
Agreement. 
 (g) Buyer acknowledges that he has been informed by Seller of, or is otherwise familiar with, the nature of the
limitations imposed by the Securities Act and the rules and regulations thereunder on the transfer of the Seller Shares. In particular, Buyer agrees that no sale, assignment or transfer of any of the Seller Shares shall be valid or effective, and
the Company shall not be required to give any effect to such a sale, assignment or transfer, unless (i) the sale, assignment or transfer of such Seller Shares is registered under the Securities Act, it being understood that none of the Seller
Shares are currently registered for sale and that the 

  
 - 10 -

 
Company has no obligation or intention to so register the Seller Shares (except pursuant to the Registration Rights Agreement), or (ii) such Seller Shares are sold, assigned or transferred
in accordance with all the requirements and limitations of Rule 144, it being understood that Rule 144 would not be available at the present time for the sale of the Seller Shares, or (iii) such sale, assignment or transfer is otherwise exempt
from registration under the Securities Act. Buyer further understands that, in connection with any sale, assignment or transfer of any of the Seller Shares or a sale of any of the Seller Shares pursuant to registration under the Securities Act,
Buyer shall be required to deliver to the Company (A) an opinion, satisfactory to the Company, of legal counsel acceptable to the Company regarding the availability of exemptions from registration under federal or applicable state securities
laws, and (B) such other documents as may be reasonably required by the Company. Each certificate or instrument representing any of the Securities shall bear a legend substantially to the foregoing effect. 

(h) Buyer will acquire the Seller Shares for Buyer’s own account for investment and not with a view to the sale or distribution
thereof or the granting of any participation therein, except pursuant to transactions registered under, or exempt from the registration requirements of, federal and applicable state securities laws, and has no present intention of, or any existing
agreements or arrangements with respect to, distributing or selling to others any of the Seller Shares or granting any participation therein (other than as provided in this Agreement). 

(i) The Seller Shares were not offered to Buyer by any means of general solicitation or general advertising. 

ARTICLE IV 

Miscellaneous Provisions 
 Section 4.1 Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or
(iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications for each of Seller and Buyer shall be as set
forth on Schedule I hereof. 
 Section 4.2 Entire Agreement. This Agreement, the Escrow Agreement and the
other documents and agreements executed in connection with the Transactions embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written
agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including any term
sheets, emails or draft documents. 
 Section 4.3 Assignment; Binding Agreement. No party hereto shall assign any or
all of its respective rights or obligations under this Agreement without the written consent of the other party hereto. This Agreement and the various rights and obligations arising hereunder shall inure to the benefit of and be binding upon the
parties hereto and their successors and permitted assigns. 

  
 - 11 -

 Section 4.4 Counterparts. This Agreement may be executed in multiple
counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile or other
electronic transmission shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. 
 Section 4.5 Specific Performance. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to specific performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity.

 Section 4.6 Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois
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 suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement 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 HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

Section 4.7 No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any Person not a party
hereto, or any such Person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. 

Section 4.8 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged
(other than in accordance with its terms), in whole or in part, except by a writing executed by each of the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective
or binding unless such waiver shall be in writing and signed by the party hereto claimed to have given such waiver or consented thereto. Except to the extent otherwise agreed in writing, 

  
 - 12 -

 
no waiver of any term, condition or other provision of this Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any
subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any noncompliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach.

 Section 4.9 Construction; Interpretation; Certain Terms. Section, schedule, exhibit, recital and party references
are to this Agreement unless otherwise stated. The words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular section or provision of this
Agreement, and reference to a particular section of this Agreement shall include all subsections thereof. The term “including” as used in this Agreement shall mean including, without limitation, and shall not be deemed to indicate an
exhaustive enumeration of the items at issue. All terms and words used in this Agreement, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require. No
party hereto, nor its counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions of this Agreement. 
 Section 4.10 Definitions. For purposes of this Warrant, the following terms shall have the following meanings: 
 (a) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the city of Chicago, Illinois are authorized or required by law to remain closed.

 (b) “Commencement Date” means the date that is the later of the Reverse Split Effective Date and the date
that is six months after the Sale Closing Date. 
 (c) “Common Stock Market Value” on any Trading Day means, on
such Trading Day, the last reported sale price of the Company Common Stock on the Principal Market on such Trading Day, or if no such sale is made on such day, the mean of the closing bid and asked prices on such Trading Day on the Principal Market.

 (d) “Encumbrance” means any mortgage, lien, pledge, charge, security interest, title retention agreement,
option, equity or other adverse claim. 
 (e) “Expiration Date” means the fifth anniversary of the Effective
Date. 
 (f) “Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization or a government or any department or agency thereof or any other legal entity. 
 (g) “Principal Market” means the OTC Bulletin Board (or successor thereto); provided, however, that, if after the Commencement Date the Common Stock is listed on a U.S. national
securities exchange, the “Principal Market” shall mean such U.S. national securities exchange; provided, further, that if the Common Stock is not listed on the OTC Bulletin Board (or successor thereto) or a U.S. national securities
exchange, “Principal Market” shall mean the principal securities exchange or trading market for the Common Stock. 

  
 - 13 -

 (h) “Reverse Split Effective Date” means the date on which the Reverse
Split (as defined in the Merger Agreement) becomes effective. 
 (i) “Trading Day” means any day on which the
Company Common Stock is traded on the Principal Market; provided that “Trading Day” shall not include any day on which the Company Common Stock is scheduled to trade, or actually trades, on the Principal Market for less than 4.5 hours.

 Section 4.11 No Broker. Each party hereto represents and warrants that it has not engaged any third party as
broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the Transactions other than such fees and expenses for which it shall be solely responsible. 

Section 4.12 Further Assurances. Each of Seller and Buyer hereby agrees to execute and deliver, or cause to be executed and
delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the Transactions. 
 Section 4.13 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning or interpretation hereof. 

Section 4.14 Termination. This Agreement shall terminate automatically upon the termination of the Merger Agreement or the
Termination Agreement and shall be terminable by any party hereto after May 31, 2011, but prior to the Sale Closing, if the Merger has not been consummated on or prior to such date, except that the right to terminate under this
Section 4.14 will not be available to any party hereto whose breach of any of the provisions of, or failure to fulfill any of its obligations under, this Agreement or any other agreement or instrument to which such party is a party has been a
principal cause of, or resulted in, the failure to consummate the Merger by such date. 

*  *  *  *  *  * 

  
 - 14 -

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

			
	SELLER:
		
	By:	 	 /s/ Thomas J. Somodi

		 	Thomas J. Somodi
	
	BUYER:
		
	By:	 	 /s/ Gary S. Winemaster

		 	Gary S. Winemaster

  
 [Signature
Page to Purchase and Sale Agreement] 

 Schedule I 

Notice Information 

Seller: 
 Thomas J. Somodi

 c/o The W Group 
 655 Wheat Lane

 Wood Dale, IL 60191 
 Fax:
(650) 350-0103 
 with a copy to: 

Freeborn & Peters LLP 
 311 South
Wacker Drive 
 Suite 3000 
 Chicago, IL
60606 
 Attn: Todd R. Southwell, Esq. 

Fax: 312-360-6994 
 Buyer:

 Gary S. Winemaster 
 c/o The W
Group 
 655 Wheat Lane 
 Wood Dale, IL
60191 
 Fax: (650) 350-0103 

with a copy to: 
 Katten Muchin Rosenman LLP

 525 W. Monroe Street 
 Chicago, IL
60661-3693 
 Attn: Mark D. Wood, Esq. 

Fax: (312) 577-885Employment Agreement

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this
“Agreement”), entered into as of April 29, 2011 (the “Execution Date”) and effective as of January 1, 2011 (the “Effective Date”), by and between Thomas J. Somodi
(“Employee”) and Power Solutions International, Inc., a Nevada Corporation (the “Company”). 

R E C I T A L S: 
 WHEREAS, the Company desires to employ Employee for its own operations and for the operations of its subsidiary and related entities, including, but not limited to, The W Group, Inc. and Power Great
Lakes, Inc. (collectively with the Company, the “Entities”); and 
 WHEREAS, Employee is willing to be employed
by the Company and to perform services on behalf of the Entities; 
 NOW, THEREFORE, in consideration of the recitals and the
mutual promises set forth in this Agreement, the parties hereto agree as follows: 
 1. Employment and Duties.

 A. Position and Duties. As of the Effective Date, Employee shall (i) serve as the Chief Operating
Officer for the Company and for the other Entities, (ii) serve as acting Chief Financial Officer for the Company and for the other Entities, which position he shall hold until the commencement of employment with the Company of a new Chief
Financial Officer, and (iii) perform duties consistent with such positions, as directed by the Company’s Chief Executive Officer and Board of Directors (the “Board”). Employee and the Company agree that, following the
Effective Date, the Company may modify Employee’s position and duties to the extent such modifications are consistent with the role of a Company executive and Employee’s knowledge, skills and expertise. The Company shall endeavor to hire a
new Chief Financial Officer as soon as reasonably possible after the Execution Date. 
 B. Non-Exclusive
Services. Employee agrees to perform to the best of his ability such duties as may be reasonably assigned to Employee and devote his time and energy as may be necessary. While it is expected that employment hereunder will be Employee’s
primary business pursuit, the Company recognizes that Employee has other significant personal, business and corporate responsibilities, obligations and interests. Employee is expressly permitted to maintain and expand such responsibilities,
obligations and interests provided they do not materially interfere with Employee’s duties on behalf of the Company. 
 C. Performance Standard. In furtherance of Section 1.A herein, Employee shall perform Employee’s duties in a conscientious, reasonable and competent manner

 
and shall strive to promote the success and best interests of the Company. In addition, Employee agrees to perform his services hereunder in accordance with ordinary business custom and good
taste, with integrity, honesty and responsibility. 
 2. [INTENTIONALLY OMITTED] 

3. Term. Employee’s employment with the Company pursuant to this Agreement shall be effective as of the Effective Date and
continue in effect until the earlier of (i) the date on which Employee dies or otherwise incurs a termination of employment with the Company, and (ii) December 31, 2012 (such period, the “Term”). In the event that the
Term expires on December 31, 2012 and Employee’s employment with the Company continues, such employment shall be at-will; provided, however, that Executive’s obligations under Sections 6 through 8 hereof shall continue
in full force and effect. 
 4. Compensation. The Company agrees to provide the following payments and consideration to
Employee as full payment for the services to be performed pursuant to this Agreement. Such payments and consideration may be paid or provided by the Company or through any Entity: 

A. Salary. For calendar year 2011, Employee shall receive a total salary of five hundred thousand dollars
($500,000). From the Execution Date through and including December 31, 2011, Employee shall receive a portion of such salary equal to the excess of five hundred thousand dollars ($500,000) over the sum of any amounts of salary for calendar year
2011 paid to Employee on or prior to the Execution Date. For calendar year 2012, Employee shall receive an annual salary of five hundred thousand dollars ($500,000). Any annual salary payable hereunder shall be paid pursuant to the Company’s
payroll procedures and polices as in effect from time to time. 
 B. Incentive Compensation. For each of
calendar years 2011 and 2012, Employee will be eligible to receive a performance bonus based on the Company’s and Employee’s performance during such year, as determined in the sole discretion, exercised in good faith, of the Board (or a
committee thereof). Any such bonus shall be paid no earlier than January 1, and no later than April 30, of the calendar year following the calendar year in which such bonus is earned. 

C. Equity Compensation. During the Term, Employee shall be eligible to receive equity compensation under any equity
plan established and maintained by the Company, as determined in the sole discretion, exercised in good faith, of the Board (or a committee thereof). Any such award of equity compensation shall be governed by the terms and conditions of the equity
plan under which it is granted. 
 D. Expense Reimbursements. The Company shall reimburse Employee for all
substantiated reasonable and necessary expenses incurred in carrying out Employee’s duties under this Agreement pursuant to the Company’s business expense reimbursement policies and practices as in effect from time to time. The Company
further agrees to reimburse Employee of up to sixty-two thousand five hundred dollars ($62,500) of his substantiated, reasonable attorneys’, accountants’ and advisor fees and costs associated

  
 2 

 
with the negotiation and execution of this Agreement, the Termination Agreement, dated as of April 20, 2011, by and between The W Group, Inc. and Employee, the Purchase and Sale Agreement,
dated as of April 20, 2011, by and between Employee and Gary Winemaster (the “Purchase and Sale Agreement”), and the transactions contemplated hereby and thereby, within ten (10) business days following the Execution Date.
Reimbursement of any other fees or costs of attorneys, accountants or advisors of or to Employee shall be subject to the prior approval of the Company’s Chief Executive Officer. 

E. Benefits. Employee shall be eligible to participate in the Company’s 401(k) retirement plan and
health-related plans (including any family, dental and vision benefits offered thereunder) on the same terms and conditions that apply to other similarly situated executives of the Company from time to time. To the extent permissible under the
Company’s health-related plans, any underlying group insurance polices, and applicable law or regulation (without penalty to the Company), the Company agrees that, upon any termination of Employee’s employment, the Company will continue to
provide Employee with substantially similar family coverage under the Company’s health-related plans as provided to Employee while he was an employee of the Company until Employee is eligible for Medicare; provided, however, that
Employee shall pay the full cost to the Company of any such coverage. The Company shall not unreasonably or in bad faith fail to include language in any Company health-related plan if the lack of such language would prohibit Employee from being
eligible for any continuation coverage pursuant to this Section 4.D. If Employee fails to timely reimburse the Company for the cost of any such coverage, the Company’s obligation to continue to provide such coverage shall cease.

 F. Life Insurance. 

I. Employee has procured and owns a life insurance policy on Employee’s life that provides for a death benefit of two
million dollars ($2,000,000) (“Life Insurance Policy I”). The Company acknowledges that Life Insurance Policy I is owned by Employee and that Employee may, in his sole discretion, name a beneficiary upon such policy. The Company
shall not be named as a beneficiary upon Life Insurance Policy I and shall have no collateral interest in the policy or right of reimbursement as to premium payments made with respect to Life Insurance Policy I. Employee shall have sole
responsibility for paying the premiums to maintain such policy. 
 II. The Company has procured and owns a life
insurance policy on Employee’s life which provides for a death benefit to the Company of three million dollars ($3,000,000) (“Life Insurance Policy II”). To the extent permissible, the Company agrees to transfer Life Insurance
Policy II to Employee as soon as administratively feasible following the Execution Date. Following any such transfer, Employee shall have sole responsibility for paying the premiums to maintain such policy. 

  
 3 

 G. Paid Time Off. Employee shall be eligible to take paid time off
under the Company’s paid time off polices on the same terms and conditions that apply to other similarly situated senior management employees of the Company from time to time; provided; however, that Employee shall be entitled to
a minimum of twenty-five (25) days of paid time off per calendar year. 
 H. Insurance. The Company
shall use its commercially reasonable best efforts to obtain and maintain in full force and effect liability insurance applicable to directors and officers in reasonable amounts from established and reputable insurers (subject to appropriate cost
considerations), as determined in good faith by the Board. To the extent the Company maintains liability insurance applicable to directors, officers, employees, controlling persons, agents or fiduciaries of the Company, Employee shall be covered by
such policy or policies in such a manner as to provide Employee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Employee is a director thereof, or of the Company’s officers, if
Employee is not a director of the Company but is an officer thereof, or of Company’s key employees, controlling persons, agents or fiduciaries, if Employee is not an officer or director of the Company, but is a key employee, controlling person,
agent or fiduciary thereof, as the case may be. The Company shall advise Employee as to the general terms of, and the amounts of coverage provided by, any liability insurance policy described in this Section 4.G and shall promptly notify
Employee if, at any time, any such insurance policy will no longer be maintained, the amount of coverage under any such insurance policy will be decreased or the terms of any such insurance policy will materially change. 

5. Employment Termination. 
 A. Termination without Cause During Term. If, prior to the end of the Term, the Company terminates Employee’s employment without Cause (defined below) and such termination constitutes a
Separation from Service (defined below), Employee shall be (I) entitled to receive the remainder of the salary he would have received pursuant to Section 4.A hereof if he had remained employed through and including December 31, 2012
and (II) eligible for the health-related plan continuation coverage described in (and subject to the terms of) Section 4.D hereof. Employee’s salary severance amount shall be paid as salary continuation pursuant to the Company’s
payroll schedule as in effect on the date of Employee’s Separation from Service; provided, however, that, to the extent that Employee is a “specified employee” (within the meaning of Treasury Regulation
Section 1.409A-1(i)) on the date of his Separation from Service, any salary severance amounts that would otherwise be payable under this Section 5.A during the six (6) month period immediately following Employee’s Separation from
Service shall be paid on the first payroll date following the six (6) month anniversary of Employee’s Separation from Service. Notwithstanding the foregoing, Employee agrees that he (i) shall forfeit his right to receive any salary
continuation pursuant to this Section 5.A or any health-related plan continuation coverage if he breaches any of his obligations under Sections 6 through 8 hereof, fails to timely execute a general release of claims against the Entities
(including their employees, directors, agents and affiliates), or revokes such release during any applicable revocation period; and (ii) in the event of any such breach, failure, or revocation, shall reimburse the Company for the gross amounts
of any salary continuation payments already made prior to the occurrence of such breach, failure or revocation. 

  
 4 

 B. Other Termination. If Employee’s employment with the Company
terminates under any circumstances other than those described in Section 5.A hereof (including after expiration of the Term), Employee shall not be entitled to any severance payments or benefits, other than eligibility for the health-related
plan continuation coverage described in (and subject to the terms of) Section 4.E hereof, which health-related continuation coverage shall not be affected by such termination. Notwithstanding the foregoing or anything else to the contrary
contained herein, Employee agrees that he shall forfeit his right to receive any such health-related plan continuation coverage if he breaches any of his obligations under Sections 6 through 8 hereof, fails to timely execute a general release of
claims against the Entities (including their employees, directors, agents and affiliates), or revokes such release during any applicable revocation period. 
 C. No Additional Obligations. Except as otherwise expressly provided in this Agreement, the Company shall have no additional obligations under this Agreement upon the termination of Employee’s
employment. 
 D. Notice of Termination. Any termination by the Company of Employee’s employment
under Section 5.A hereof shall be communicated to Employee by written notice and such written notice shall include in reasonable detail the basis for termination. Such employment termination shall become effective as of the date such notice is
provided to Employee, unless the Company specifies a later date in such notice. 
 E. Definitions.

 I. As used in this Agreement, “Cause” shall mean the occurrence of one or more of the
following: 
  

	 	•	 	 A conviction or a plea of nolo contendere by Employee of a felony, or other crime involving dishonesty, disloyalty or fraud;

  

	 	•	 	 action by the Employee constituting gross negligence, willful misconduct or unlawful conduct, which results in significant financial loss or liability
to any Entity or, in any material respect, impairs the reputation, goodwill or business of any Entity; 

  

	 	•	 	 the Board’s good faith determination, following consultation with an independent medical doctor, that Employee suffers from a physical or mental
illness or injury that renders Employee incapable of performing his duties, with or without a reasonable accommodation, and that does or may be expected to continue for more than six (6) months during any consecutive twelve (12)-month period;

  
 5 

	 	•	 	 Employee’s liquidation, assignment or other transfer of (or direct or indirect transfer of any of the economic or other rights associated with) an
aggregate of more than fifty percent (50%) of the shares of Common Stock Employee has at any time received from Gary Winemaster pursuant to the Purchase and Sale Agreement (subject to appropriate adjustment for stock splits, stock dividends,
stock combinations and other similar events); 

  

	 	•	 	 Employee’s breach of any provision in Sections 6 through 8 hereof; and 

 

	 	•	 	 the continued failure of the Employee for thirty (30) consecutive days, after prior written notice of such failure and following a reasonable
opportunity by Employee to cure, to perform the duties assigned to Employee in accordance herewith. 

 II. As used in this Agreement, “Separation from Service” shall mean Employee’s “separation from service” (within the meaning of Treasury Regulation
Section 1.409A-1(h)) with the Company. 
 6. Confidential Information. Employee acknowledges that by reason of his
employment by the Company, or while being associated with the Entities, Employee has had and will have access to and become informed of Confidential Information (defined below) that is a competitive asset of the Company, and agrees that the Entities
have a protectable interest in such Confidential Information. Therefore, Employee agrees that he shall not, directly or indirectly, disclose to any unauthorized person or use for his own purposes any such Confidential Information without the prior
written consent of the Company unless and to the extent that such Confidential Information (i) becomes or is generally known to the public and available for use by the public and industry other than as a result of Employee’s unauthorized
acts or omissions in breach of this Agreement, or (ii) is required to be disclosed by judicial process, law or securities exchange on which the securities of the Company or any of its affiliates are listed; provided, however, that
Employee, to the extent not prohibited by such process, law or exchange, shall give the Company written notice of the Confidential Information to be so disclosed pursuant to clause (ii) of this sentence as far in advance of its disclosure as is
reasonably practicable, shall cooperate with the Company in any efforts to protect the Confidential Information from disclosure (including efforts to secure a judicial order to such effect), and shall limit his disclosure of such Confidential
Information to the minimum disclosure required by such process, law or exchange. Employee acknowledges that all documents and other property including or reflecting Confidential Information furnished to Employee by any entity or otherwise acquired
or developed by an Entity or acquired, developed or known by Employee by reason of the performance of his duties for, or his association with, any of the Entities shall at all times be the property of the Company. Employee shall take all reasonable
steps to safeguard Confidential Information and protect it against disclosure, misuse, loss or theft. Employee shall deliver to the Company, at such time as the Company may request, all memoranda, notes, plans, records, reports, computer tapes,
printouts and software and other documents and data (and copies 

  
 6 

 
thereof) that constitute Confidential Information that Employee may then possess or have under his control. “Confidential Information” means (x) any and all trade secrets
concerning the business and affairs of any Entity, any product specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current and planned research and
development, current and planned manufacturing and distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including object code
and source code), database technologies, systems, structures, architectures processes, improvements, devices, discoveries, concepts, methods, and information of any Entity; (y) any and all information concerning the business and affairs of any
Entity (which includes financial statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, contractors, agents, suppliers and potential suppliers,
personnel training and techniques and materials, and purchasing methods and techniques), however documented; and (z) any and all notes, analysis, compilations, studies, summaries and other material prepared by or for any Entity containing or
based, in whole or in part, upon any information included in the foregoing. 
 7. Non-Compete. Employee acknowledges that
by reason of Employee’s duties and association with the Entities, Employee has or will become familiar with Confidential Information concerning the Entities and that Employee’s services are of special, unique and extraordinary value to the
Entities. Therefore, Employee agrees that during his employment with the Company and until the one (1) year anniversary of the termination thereof for any reason (the “Noncompete Period”), Employee shall not, without the prior
express written approval of the Company, other than in the legitimate exercise of his duties for the Company, directly or indirectly (i) own, manage, operate, or control any entity that engages in the business of designing, manufacturing,
marketing, distributing and/or otherwise supplying or providing power systems (and/or subsystems, components, kits and/or parts), other engine power products, telematics products and/or connected asset services (and/or other products and/or services
directly related to any of the foregoing) to manufacturers and suppliers of off-highway industrial equipment, or in any other business in which the Company engages as of the date on which Employee’s employment with the Company ends
(“Competitive Activity”), or (ii) be employed or engaged in a strategic, business development, or executive capacity (or any role involving services similar to those that Employee provided to the Entities or their affiliates),
whether or not for compensation, by any person or entity engaged in a Competitive Activity. The provisions in this Section 7 shall operate in the market areas of the United States and any other market areas of any other countries anywhere in
the world in which the Entities conduct or plan to conduct their business as of Employee’s separation from the Company. The foregoing shall not restrict the Employee from directly or indirectly owning stock of the Company or up to an aggregate
of two percent (2%) of the outstanding stock of any publicly held company engaged in a business competitive to the Entities’ business. 
 8. Non-Solicitation. Employee agrees that during his employment with the Company and until the one (1) year anniversary of the termination thereof, he shall not, directly or indirectly,
whether individually, as a director, stockholder, partner, owner, employee or agent of any business, or in any other capacity: (i) induce or attempt to induce any employee of any Entity to leave his or her employ or in any way interfere with
the relationship between any Entity and any employee thereof; (ii) solicit to hire or hire any person who was an employee of any Entity at 

  
 7 

 
any time during the one (1) year period prior to the date of Employee’s termination with the Company; or (iii) induce or attempt to induce any customer, developer, client, member,
supplier, vendor, licensee, licensor, franchisee or other business relation of any Entity to cease doing business with any Entity, or in any way interfere with the relationship between any such customer, developer, client, member, supplier, vendor,
licensee, licensor, franchisee or business relation of any Entity (including, without limitation, making any negative statements or communications about any Entity or any of their respective officers, directors, products or services). 

9. Enforcement. Employee acknowledges that the provisions of Sections 6 through 8 hereof are in consideration of good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged. Employee expressly agrees and acknowledges that the restrictions contained in Sections 6 through 8 hereof do not preclude Employee from earning a livelihood, nor do they
unreasonably impose limitations on Employee’s ability to earn a living. In addition, Employee agrees and acknowledges that the potential harm to any Entity of its non-enforcement outweighs any harm to Employee of its enforcement by injunction
or otherwise. Employee acknowledges that Employee has carefully read this Agreement and has given careful consideration to the restraints imposed upon Employee by this Agreement, and is in full accord as to their necessity. If, at the time of
enforcement of any of Sections 6 through 8 hereof, a court of competent jurisdiction or an arbitrator shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree
that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court or arbitrator shall be allowed to revise the restrictions contained herein to cover the
maximum period, scope and area permitted by law. Employee expressly acknowledges and agrees that the restrictions contained herein are reasonable in terms of duration, scope and area restrictions and are necessary to protect the Confidential
Information and the goodwill of the businesses of any Entity, and Employee agrees not to challenge the validity or enforceability of the restrictions contained herein. The parties hereto expressly agree that money damages would not be an adequate
remedy for breaching any provision of Sections 6 through 8 hereof. Therefore, in the event of a breach or threatened breach of any such provision, the Company and/or any other Entity or their respective successors or assigns shall be entitled to, in
addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without
the necessity of posting a bond or other security, or proving economic harm). 
 10. Assignment. This Agreement may not
be assigned by either the Company or Employee, except that this Agreement shall inure to the benefit of and be enforceable by the Employee’s estate and/or legal representative and the Company’s successors and assigns, including without
limitation, any individual or entity that may acquire all, or substantially all, of the Company’s assets and business or with and into which the Company may be consolidated or merged; and this provision shall apply in the event of any
subsequent merger or consolidation. 
 11. Notices. All notices given under this Agreement shall be in writing, and shall
be personally delivered or sent to the following address by registered mail, postage prepaid or at such other address as either party shall designate in writing to the other. 

  
 8 

					
	If to Employee:	  	The most recent address on the file with the Company
		
	If to Company:	  	 655 Wheat Lane

Wood Dale, Illinois 60191

		  	Attention:	 	Gary Winemaster

 12. Miscellaneous
Provisions. 
 A. Entire Agreement. This Agreement contains the entire agreement between the parties
hereto with respect to the transactions contemplated herein. No modification or amendment of this Agreement shall be effective unless in writing and signed by the parties hereto. 

B. Tax Withholding. The Company shall withhold from any amounts payable to Employee hereunder all federal, state,
city or other taxes the withholding of which the Company determines to be legally required pursuant to any applicable law or regulation (it being understood by the parties hereto that Employee shall be responsible for payment of all taxes, foreign
or otherwise, in respect to the payments provided herein). 
 C. Section 409A. The Company and
Employee intend this Agreement to be structured and interpreted to comply with, or to satisfy an exemption from, Section 409A of the Internal Revenue Code of 1986, as amended, and all regulations, guidance, compliance programs, and other
interpretative authority in effect thereunder, such that there are no adverse tax consequences, interest, or penalties therunder (“409A Tax”) imposed on Employee as a result of any payment hereunder. The Company and Employee agree
to cooperate in good faith to provide full effect to such intent; provided, however, that the Company shall have no liability for a 409A Tax imposed on Employee. 

D. Attorney Fees. In any action, proceeding or dispute in connection with this Agreement, the court resolving such
dispute may determine whether any party shall pay any of the reasonable attorneys fees or costs of any other party. 
 E. Further Assurances. Each party to this Agreement shall from time to time hereafter, and upon request, execute acknowledge and deliver such other instruments and documents as may be reasonably
required to carry out the terms and conditions of this Agreement. 
 F. Governing Law. This Agreement
shall be governed by and construed in accordance with the internal laws of the State of Illinois (regardless of its conflict of laws principles), and without reference to any rules of construction regarding the party responsible for the drafting
hereof. Each party hereto submits to venue in, and jurisdiction of, the State or Federal Court (as may be appropriate) nearest to the Company’s then headquarters. 

  
 9 

 G. Headings. The section headings in this Agreement are inserted for
convenience only and shall not modify or affect the construction or interpretation of any provision of this Agreement. 
 H. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument, and may be
delivered by facsimile or other form of electronic transmission. 
 I. Waiver. The failure of either party
hereto to insist on strict performance of this Agreement by the other, according to the terms and understandings herein set forth, shall not be construed as a waiver of the right to insist on such performance, and no waiver by either party hereto of
any breach by the other of any provision hereof shall be deemed a waiver of any other prior or subsequent breach. 
 J. Severability. If any provision hereof is invalid or unenforceable, the invalidity or unenforceability shall not affect any other provision hereof and this Agreement shall be construed in all
respects as if the invalid or unenforceable provision had been omitted. 
 [Signature Page Follows]

  
 10 

 Dated as of the Execution Date. 

 

							
	POWER SOLUTIONS INTERNATIONAL, INC.	 		  	THOMAS J. SOMODI
				
	By:	 	 /s/ Ryan A. Neely
	 		  	 /s/ Thomas J. Somodi

				
	Name:	 	Ryan A. Neely	 		  	
				
	Title:	 	President	 		  	

  
 [Signature
Page to T. Somodi Employment Agreement]

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