Document:

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is entered into between United Development Funding IV (“UDF IV”) and Stacey Dwyer (“Dwyer”).
This Agreement is intended to set out the terms and conditions of Dwyer’s employment relationship with UDF IV and to state
both the obligations and rights of the parties in regard to each other. The parties agree to each of the following:

 

1.Employment/Duties.
UDF IV will employ Dwyer in the position of Chief Operating Officer. Dwyer will perform those duties that are typically performed
by the Chief Operating Officer of a public company.  Dwyer will report to the Chief Executive Officer of UDF IV, Hollis
Greenlaw (“Greenlaw”). Dwyer also will perform those duties assigned to her by Greenlaw or his designee.

 

2.Employment
Period.  Dwyer’s employment with UDF IV pursuant to this Agreement shall be for a one-year period beginning on February 17,
2014 (the “Effective Date”), and shall automatically renew on each anniversary of the Effective Date for consecutive
one-year periods until it is terminated under Section 7 of this Agreement (the “Employment Period”). The parties agree
that the obligations created in Sections 6, 8, 10, and 11 of this Agreement will survive the termination of Dwyer’s employment
with UDF IV.

 

3.Dwyer’s
Responsibilities. Dwyer agrees that during the Employment Period she will devote her full business time during standard
business hours and her best efforts and abilities to the performance of her duties for UDF IV. Dwyer will at all times comply with
all of UDF IV’s policies and procedures as well as all applicable state and federal laws and regulations. Dwyer will act
in UDF IV’s best interest at all times. Dwyer will perform her duties for UDF IV using the highest professional standards
of ethics and integrity. Dwyer also will use her best efforts and skills to preserve the business of UDF IV and the goodwill of
its employees and persons having business relations with UDF IV.

 

4.No Limitations.
 Dwyer represents that she is under no contractual, judicial or other restraint that limits her right or legal ability to enter
into this Agreement and to carry out her duties and responsibilities to UDF IV.

 

5.Compensation/Benefits.

 

(a)Base
Salary. UDF IV will pay to Dwyer a Base Salary of $400,000.00 per year. The Base Salary will be paid in equal installments
on UDF IV’s regularly-scheduled paydays and will be subject to legally-required deductions. On each anniversary of Dwyer’s
employment under this Agreement, UDF IV will review Dwyer’s Base Salary and make any increases it thinks are appropriate.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 1

    	 

    

 

(b)Bonus.
UDF IV will pay an annual minimum guaranteed Bonus to Dwyer of $350,000.00. The total amount of the Bonus earned, in addition to
the minimum guaranteed Bonus of $350,000, will be based on a combination of UDF IV and her individual performance as determined
in the discretion of the Board of Trustees of UDF IV or its delegate. The Bonus for a preceding calendar year will be paid to Dwyer
on or before June 30th of the year following the year that the Bonus was earned. Subject to applicable securities law,
Dwyer will have the discretion to receive the Bonus in cash or in UDF IV’s common shares of beneficial interest, par value
$0.01 per share (the “Common Shares”), or any combination thereof.

 

(c)Initial
Equity Award. Upon commencement of her employment, UDF IV will provide Dwyer with 82,410 Common Shares which will vest annually
over four years after the Effective Date, subject to Dwyer’s continued employment with UDF IV through such date. Specifically
20,602.5 Common Shares will be eligible to vest on each anniversary of the Effective Date. To the extent required by UDF IV, the
grant shall be reflected in an agreement specifically evidencing such grant, which shall control in the event of a conflict with
this Section 5(c).

 

(d)Annual
Equity Grant. Upon or promptly following each anniversary of the Effective Date, Dwyer will be eligible to receive an “Annual
Equity Grant” of 12,500 Common Shares. Each Annual Equity Grant will vest five years after the applicable grant date, subject
to Dwyer’s continued employment with UDF IV through such date, and will otherwise be subject to the terms and conditions
of UDF IV’s equity incentive plan (if any) as then in effect. Notwithstanding the foregoing, if the closing price per share
of the Common Shares is less than $18.00 as of any anniversary of the Effective Date, the Annual Equity Grant with respect thereto
shall not be made, and shall instead be deferred to the next anniversary of the Effective Date on which the closing price per share
of the Common Shares is at least $18.00.

 

(e)Supplemental
Retirement Program. Dwyer will be eligible to participate in a to-be-created nonqualified Supplemental Employee Retirement
Program or an equivalent program. On each anniversary of Dwyer’s employment under this Agreement, UDF IV will fund her account
in an amount equal to 10% of her Base Salary and her account will accrue interest at a compounded rate of 10% per annum.

 

(f)Employee
Benefits. Dwyer will be eligible for the same employee benefits that UDF IV provides to its other senior executives. Such benefits
may include, but are not limited to, health insurance, life insurance, and participation in UDF IV’s 401k Retirement Plan,
provided she meets the specific eligibility requirements for each benefit. UDF IV will provide copies of its employee benefit plans
and summaries to Dwyer.

 

6.Confidentiality/Confidential
Information/Nondisparagement.

 

(a)Dwyer
will not disclose the terms of this Agreement except as necessary to her financial advisor and/or attorney or as required by law.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 2

    	 

    

 

(b)During
her employment under this Agreement, UDF IV and its current and future affiliated and related entities (the “UDF Group”)
will provide confidential and proprietary information to Dwyer regarding their analyses, methodologies, computer programs, operations,
products, services, strategies, processes, ideas, plans, forecasts, and lists as well as other non-public information regarding
their business, investors, clients, affiliates, and employees (“Confidential Information”). Dwyer understands and agrees
that the Confidential Information is the sole and exclusive property of the UDF Group. Dwyer also understands and agrees that during
and after the Employment Period she will not directly or indirectly use or disclose any Confidential Information for any reason
other than to perform her duties for UDF IV. The parties agree that the restrictions in this paragraph do not cover information
in the public domain, provided that Dwyer is not directly or indirectly responsible for such information entering the public domain
without the UDF Group’s consent.

 

(c)Dwyer
agrees that upon the termination of her employment under this Agreement for any reason, she will immediately return to UDF IV all
Confidential Information in her possession or under her control and she will not keep a copy of any Confidential Information.

 

(d)Dwyer
agrees that, during her employment with UDF IV and thereafter, she will not disparage UDF IV, or its past and present investors,
officers, trustees or employees or its affiliates. In addition, UDF IV agrees that, during Dwyer’s employment and thereafter,
UDF IV will use reasonable efforts to cause its senior executive officers not disparage Dwyer. Notwithstanding the foregoing, nothing
in this Section 6(d) shall prevent any person from making any truthful statement to the extent (i) necessary with respect to any
litigation, arbitration or mediation involving this Agreement, or any other agreement to which Dwyer and UDF IV are parties, including,
but not limited to, the enforcement thereof, or (ii) required by law or by any court, arbitrator, mediator or administrative of
legislative body (including any committee thereof) with actual or apparent jurisdiction to order such person to disclose or make
accessible such information.

 

		7.	Termination of Employment.

 

(a)Death
or Disability. The Employment Period shall automatically terminate upon the death of Dwyer or upon her having a disability
to the extent that she cannot perform the essential functions of her position as determined in good faith by a physician reasonably
acceptable to UDF IV. Dwyer agrees to submit to a reasonable number of examinations by a physician reasonably acceptable to UDF
IV, and Dwyer hereby authorizes the disclosure and release to UDF IV of the results of such examinations. If Dwyer’s employment
with UDF IV under this Agreement terminates because of her death or a disability, UDF IV will pay to Dwyer or her estate the full
amount of her compensation due through the date of the termination of her employment. The compensation due will not include any
unpaid Bonus or Annual Equity Grant.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 3

    	 

    

 

(b)Without
Cause. Either party may terminate Dwyer’s employment under this Agreement without cause by giving the other party at
least 60 days written notice of the intent to terminate.  Upon giving such notice the parties shall meet and in good faith
confer regarding Dwyer’s work responsibilities during the notice period. During the notice period following either party’s
notice of intent to terminate the employment relationship, Dwyer agrees to use her best efforts to continue her work for UDF IV
and UDF IV agrees to continue compensating Dwyer until her termination date with her same compensation and benefits as before the
notice was given. If Dwyer terminates this Agreement without cause, then she will forfeit any unpaid Bonus and any unvested Annual
Equity Grant. If UDF IV terminates this Agreement without cause, it will pay to her a pro rata amount of Bonus through the date
of her termination but no partial Annual Equity Grant will be made to her. Such pro rata bonus shall be paid to Dwyer at the time
referred to in Section 5(b), and such payment is subject to Dwyer’s execution (and nonrevocation) of a release of claims
acceptable to UDF IV within 21 days following her date of termination.

 

(c)For
Cause. UDF IV may terminate Dwyer’s employment immediately upon the delivery of a written notice to Dwyer that her employment
is being terminated “for cause” as defined in Section 7(d). If Dwyer’s employment with UDF IV is terminated “for
cause,” UDF IV shall pay to Dwyer only that compensation which is due to her through the date of her termination. The compensation
due will not include any unpaid Bonus or Annual Equity Grant.

 

 

(d)Definition
of “For Cause.” For purposes of this Agreement, “for cause” shall mean: (a) Dwyer’s material
and persistent failure to perform her duties in accordance with this Agreement, unless such failure is due to Dwyer’s disability;
(b) Dwyer’s material violation of this Agreement or any material representation made by her; (c) the appropriation (or willful
attempted appropriation) by Dwyer of a material business opportunity of the UDF Group that is not waived in writing by the UDF
Group; (d) the theft or embezzlement by Dwyer of any material real or personal property, tangible or intangible, of the UDF Group
or its investors; (e) an act of fraud by Dwyer upon, or bad faith or willful misconduct toward the UDF Group or its investors;
(f) conduct by Dwyer constituting gross negligence that is materially injurious to the UDF Group or any of their investors; or
(g) the conviction of, the indictment for (or its procedural equivalent), or the entering of a guilty plea or plea of no contest
by Dwyer with respect to, a felony, the equivalent thereof, or any other crime with respect to which imprisonment is a possible
punishment.

 

8.Restrictive
Covenants. In consideration for the commitments made by UDF IV to disclose its Confidential Information to Dwyer, Dwyer
agrees to the restrictions set out in this Section 8. Dwyer recognizes and agrees that these restrictions are necessary to protect
UDF IV’s good will, Confidential Information, and other business interests.

 

(a)Non-Competition.
The parties agree that Dwyer’s job duties under this Agreement will be performed on a nation-wide basis and therefore a nation-wide
post-employment non-competition restriction is appropriate and necessary to protect UDF IV’s Confidential Information from
being disclosed to or used by its competitors. Therefore, Dwyer agrees that during her employment with UDF IV and for a one-year
period following the termination of her employment with UDF IV, she will not, without the prior written consent of UDF IV, directly
or indirectly, within the United States, perform any of the services that she performs for UDF IV under this Agreement on behalf
of any person or entity engaged in a business that is similar to the business performed by the UDF Group and/or that is in competition
with the UDF Group.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 4

    	 

    

 

(b)Non-Solicit.
Dwyer agrees that during her employment with UDF IV and for the one-year period following the termination of her employment with
UDF IV, she will not, directly or indirectly, on her own behalf or on behalf of any other person or entity, solicit, induce, encourage,
or attempt to solicit, induce, or encourage any investor or vendor of the UDF Group that she has had personal contact with to discontinue
or in any way change their business relationship with the UDF Group.

 

(c)Non-Hire.
Dwyer agrees that during her employment with UDF IV and for a one-year period following the termination of her employment with
UDF IV, she will not, without the prior written consent of UDF IV, directly or indirectly, on her own behalf or on behalf of any
other person or business entity, (i) hire any person employed by the UDF Group during the term of this Agreement, (ii) attempt
to influence any person employed by the UDF Group at the time of her termination to leave his or her employment or (iii) use or
disclose to any person or business entity any personal information regarding any of the UDF Group’s employees.

 

(d)Non-Access.
Dwyer agrees that following the termination of her employment with UDF IV, she will not access any computer system used by the
UDF Groups, download files or any information from any computer system used by the UDF Group, or in any way interfere, disrupt,
modify or change any computer program used by the UDF Group or any data stored on the UDF Group’s computer systems.

 

(e)Scope
and Duration of Restrictions. Dwyer expressly agrees that the character, duration and geographical scope of the restrictions
imposed under Sections 8(a) through 8(c) are reasonable in light of the circumstances as they exist at the date upon which this
Agreement has been executed. However, should a determination nonetheless be made by a court of competent jurisdiction at a later
date that the character, duration or geographical scope of any of the covenants contained herein is unreasonable in light of the
circumstances as they then exist, then it is the intention of both Dwyer and UDF IV that such covenant shall be construed by the
court in such a manner as to impose only those restrictions on the conduct of Dwyer which are reasonable in light of the circumstances
as they then exist and necessary to assure UDF IV of the intended benefit of such covenant.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 5

    	 

    

 

(f)Specific
Performance. Dwyer recognizes and agrees that a violation by her of her obligations under Sections 8(a) through 8(c) would
cause irreparable harm to UDF IV that would be difficult to quantify and that money damages may be inadequate. As such, Dwyer agrees
that UDF IV shall have the right to seek injunctive relief (in addition to, and not in lieu of any other right or remedy that may
be available to it) to prevent or restrain any such alleged violation without the necessity of posting a bond or other security
and without the necessity of proving actual damages. If a court of competent jurisdiction determines that Dwyer has violated the
obligations of any such covenant for a particular duration, then Dwyer agrees that such covenant will be extended by that duration.

 

9.Assignment.
 UDF IV may assign this Agreement, in whole or in part, to any person or entity that succeeds to ownership of all or substantially
all of the assets of UDF IV if such assignee assumes UDF IV’s obligations under this Agreement. Dwyer may not assign this
Agreement or any of her rights hereunder without the prior written consent of UDF IV.

 

10.Choice
of Law/Venue/Litigation. This Agreement and all matters or issues collateral thereto shall be governed by and construed
in accordance with the laws of the State of Texas. The parties agree that the venue for any litigation involving Section 6 or 8
of this Agreement will be in Dallas County, Texas and the parties consent to the courts of Dallas County having personal jurisdiction
over them. The prevailing party in any litigation relating to the terms of this Agreement shall, in addition to any other damages
or orders it/she has obtained in the litigation, have the non-prevailing party pay the cost of the prevailing party’s reasonable
attorney’s fees and court costs incurred in the litigation.

 

11.Arbitration.
Any controversy, dispute or claim, except as provided in Section 10 or to enforce the award of the arbitrator, arising out of or
relating to this Agreement or the terms and conditions of Dwyer’s employment by UDF IV, or to the termination of this Agreement,
including, but not limited to, claims of breach of contract, claims of employment discrimination under any federal, state or local
law, rule or regulation, claims of wrongful termination of employment, constructive discharge, personal injury (other than a workers
compensation claim), termination in violation of public policy, negligent hiring or supervision, defamation or intentional infliction
of emotional distress, shall be settled by final and binding arbitration in accordance with the Employment Arbitration Rules of
the American Arbitration Association, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. Each party has the right to pursue the same causes of action and obtain the same damages in arbitration that the party
could pursue in any court.

 

A party wishing to
pursue a claim under this Section must give the other party a written Notice of Claim within the applicable limitations period
for pursing such a claim in the state or federal court in Texas. The party receiving a Notice of Claim will within 30 days serve
the other party with a written response to the Notice of Claim. If the party initiating the claim is not satisfied with the response,
the party initiating the claim will notify the other party in writing that the claim will be resolved by arbitration. The arbitration
hearing will be held at a mutually agreeable site in Dallas, Texas. Prior to the hearing the parties will participate in a non-binding
mediation.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 6

    	 

    

 

12.Severability.
If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, in whole or in part, then both parties
will be relieved of all obligations arising under such provision, but only to the extent it is illegal, unenforceable, or void.
The parties intend that this Agreement will be deemed amended by modifying any such illegal, unenforceable, or void provision to
the extent necessary to make it legal and enforceable while preserving its intent, or if such is not possible, by substituting
therefor another provision that is legal and enforceable and achieves the same objectives. Notwithstanding the foregoing, if the
remainder of this Agreement will not be affected by such declaration or finding and is capable of substantial performance, then
each provision not so affected will be enforced to the extent permitted by law.

 

13.Waiver.
The delay or failure of either party to assert or exercise any right, remedy or privilege hereunder, with actual or constructive
notice or knowledge of the breach of any representation, warranty or provision in this Agreement, shall not constitute a waiver
of any such right, remedy, privilege or breach provided such action is within a reasonable period of time.

 

14.Entire
Agreement. This Agreement constitutes the parties’ entire agreement with respect to the subject matter hereof and
supersedes all agreements, representations, warranties, statements, promises and understandings, whether oral or written, with
respect to the subject matter hereof. This Agreement may not be amended, altered, or modified except by a writing signed by both
parties.

 

15.Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall constitute an original, and all of which shall constitute
one and the same agreement.

 

16.Notice.
 Any notices required to be given under this Agreement shall be in writing and shall be delivered either in person, via
email to the other party’s business email address, or via certified mail addressed to the following:

 

If to UDF IV:

1301 Municipal
Way

Grapevine,
TX 76051

Attention:
Hollis Greenlaw

 

If to Dwyer:

3303 Park
View Ct.

Colleyville,
TX 76034

 

17.Acknowledgment.
By signing below, the parties certify and represent that they have carefully read and considered the foregoing Agreement and they
fully understand all provisions of this Agreement. The parties also certify and represent that they understand the consequences
of signing this Agreement and they are signing this Agreement voluntarily.

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 7

    	 

    

 

 

 

	 	 	UNITED
DEVELOPMENT FUNDING IV

	 	 	 	 
	 	 	 	 
		 	By:  	 
	Stacey Dwyer	 	 	Hollis M. Greenlaw, Chief Executive Officer
	 	 	 	 
	February 21, 2014	 	February 21, 2014
	Date signed	 	Date signed

 

    	EMPLOYMENT
                                         AGREEMENT – PAGE 8NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

ENERPULSE
TECHNOLOGIES, INC.

 

WARRANT

 

	Warrant No. [  ]	Original Issue Date:  [  ], 2014

 

Enerpulse Technologies,
Inc., a Nevada corporation (the “Company”), hereby certifies that, for value received, [underwriter] or
its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of [ ] shares
of Common Stock (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”),
at any time and from time to time from and after the 181st day immediately following the date of effectiveness of that
certain registration statement on Form S-1 (File No. 333-191471) filed by the Company, in accordance with FINRA Rule 5110(g)(1),
and through and including the five year anniversary of the date of effectiveness of that certain registration statement on Form
S-1 (File No. 333-191471), which such date is [ ], 2019 (the “Expiration Date”), and subject to the following
terms and conditions:

 

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

 

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

 

“Business
Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

    	 

    	 

    

 

“Common Stock”
means the common stock of the Company, $0.001 par value per share, and any securities into which such common stock may hereafter
be reclassified or for which it may be exchanged as a class.

 

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

 

“Exercise
Price” means $[exercise price of warrants issued in the offering], subject to adjustment in accordance with Section 9.

 

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

 

“New York
Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Trading Market”
means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market, OTC Bulletin Board, or the OTC Markets Group, Inc. OTCQX or OTCQB tier on which the Common Stock is listed or quoted
for trading on the date in question.

 

    	-2-

    	 

    

 

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of this Warrant.

 

2.          Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

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

 

(b)          This
Warrant may not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative,
put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of
180 days immediately following the date of effectiveness of that certain registration statement on Form S-1 (File No. 333-191471)
filed by the Company, except as provided in FINRA Rule 5110(g)(2).

 

4.          Exercise
and Duration of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time from
and after the 181st day immediately following the date of effectiveness of that certain registration statement on Form
S-1 (File No. 333-191471) filed by the Company, in accordance with FINRA Rule 5110(g)(1), and through and including the Expiration
Date. At 5:30 p.m., New York City time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be
and become void and of no value. The Company may not call or redeem any portion of this Warrant without the prior written consent
of the affected Holder.

 

    	-3-

    	 

    

 

5.            Delivery
of Warrant Shares.

 

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

 

(b)          If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

 

(c)          If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of the Warrant Shares which the Holder anticipated receiving upon such exercise (a "Buy-In"), then the Company
shall (1) pay in cash to the Holder the amount by which (x) the Holder's total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of
the Common Stock on the Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall
provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In.

 

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

 

    	-4-

    	 

    

 

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

 

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

 

8.            Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

 

9.            Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

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

 

    	-5-

    	 

    

 

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

 

(c)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment.

 

(d)          Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(e)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise
of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon
which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the
Holder and to the Company’s Transfer Agent.

 

    	-6-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

where:

 

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

 

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

 

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

 

B = the Exercise Price.

 

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

 

    	-7-

    	 

    

 

11.   
      Limitations on Exercise. Notwithstanding anything to the contrary contained
herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in
respect hereof) shall be limited to the extent necessary to ensure that, following such exercise (or other issuance), the
total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose
beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the
Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common Stock (including for such
purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision
shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine
the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as
contemplated in Section 9 of this Warrant. This restriction may not be waived. Notwithstanding anything to the contrary
contained in this Warrant, (a) no term of this Section may be waived by any party, nor amended such that the threshold
percentage of ownership would be directly or indirectly increased, (b) this restriction runs with the Warrant and may not be
modified or waived by any subsequent holder hereof and (c) any attempted waiver, modification or amendment of this Section
will be void ab initio.

 

12.     
    No Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with
any exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash
equal to the product of such fraction multiplied by the closing price of one Warrant Share as reported by the applicable
Trading Market on the date of exercise.

 

13.    
     Notices. Any and all notices or other communications or deliveries hereunder (including,
without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in
this Section prior to 5:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on
a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day
following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the
party to whom such notice is required to be given. The addresses for such communications shall be: (i) if to the Company, to
2451 Alamo Ave. SE, Albuquerque, NM 87106, Attn: Chief Executive Officer, or to Facsimile No.: [] (or such other address
as the Company shall indicate in writing in accordance with this Section), or (ii) if to the Holder, to the address or
facsimile number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the
Company in accordance with this Section.

 

14.     
    Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 10
days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any
new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant
agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its
corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further
act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first
class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

 

    	-8-

    	 

    

 

15.   
      Miscellaneous.

 

(a)          This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder
any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed
by the Company and the Holder and their successors and assigns. The foregoing sentence shall be subject to the restrictions on
waivers and amendments set forth in Section 11 of this Warrant.

 

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

 

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

 

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

 

    	-9-

    	 

    

 

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

 

    	-10-

    	 

    

 

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

 

	 	ENERPULSE TECHNOLOGIES, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	-11-

    	 

    

 

EXERCISE
NOTICE

ENERPULSE TECHNOLOGIES, INC.

WARRANT DATED [], 2014

 

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

 

		(1)	The undersigned Holder hereby exercises its right to
purchase _________________ Warrant Shares pursuant to the Warrant.

 

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

 

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

 

		(4)	By its delivery of this Exercise Notice, the undersigned
represents and warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially
own in excess of the number of shares of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates.

 

	Dated: _____________, ______	Name of Holder:
	 	 
	 	(Print)	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

  

    	-12-

    	 

    

 

Warrant Shares Exercise Log

 

	Date	Number of Warrant 

Shares Available to be

 Exercised	Number of Warrant Shares 

Exercised	Number of 

Warrant Shares

 Remaining to 

be Exercised
	
         

         

         

         

         

         

         

         

         

         

         

         

         

         
	 	 	 

 

    	-13-

    	 

    

 

ENERPULSE
TECHNOLOGIES, INC. 

WARRANT DATED [           ], 2014

WARRANT NO. [ ]

 

FORM
OF ASSIGNMENT

 

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

 

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

 

Dated:_______________, ____

 

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

 

	In the presence of:	 
	 	 
	 	 

 

    	-14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]