Document:

Date of Grant: _____________

 

L2 MEDICAL DEVELOPMENT COMPANY

 

Restricted
Stock Award Agreement

 

THIS AGREEMENT is made
by and between L2 Medical Development Company (“SCQO” or the “Company”) and _______________
(“Recipient”).

 

1. Award of
Restricted Stock. In consideration for services rendered by the Recipient, SCQO hereby grants to Recipient, in the manner
and subject to the conditions hereinafter provided, _____________________ (__________) shares of SCQO’s Common Stock (the
“Restricted Stock”). As used in this Agreement, the term “Restricted Stock” refers to the stock
granted under this Agreement and includes all securities received (a) in replacement of the Restricted Stock, (b) as a result of
stock dividends or stock splits in respect of the Restricted Stock, and (c) in replacement of the Restricted Stock in a recapitalization,
merger, reorganization or the like.

 

This Restricted Stock
is specifically conditioned on compliance with the terms and conditions set forth herein. The Restricted Stock is being issued
pursuant the L2 Medical Development Company 2012 Equity Incentive Plan (the “Plan”), which is incorporated herein
for all purposes. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this
Agreement, the provisions of the Plan will be controlling and determinative.

 

2. Vesting of
Restricted Stock.

 

2.1 Vesting.
The right to unrestricted ownership in the Restricted Stock under this Agreement shall vest with respect to _______________ (__________)
shares of Restricted Stock upon each monthly anniversary of the Date of Grant set forth above, until all of such Restricted Stock
has vested on the date ________ (___) months from the Date of Grant.

 

2.2 Permitted Forfeiture
of Unvested Restricted Stock. Recipient acknowledges that to the extent the Restricted Stock has not vested in accordance with
Section 2.1 at such time as Recipient is no longer serving as either an employee of, a non-employee Recipient of, or active consultant
providing services to SCQO or any of its Subsidiaries, such unvested Restricted Stock shall immediately be forfeited and all
rights of the Recipient to such Restricted Stock shall terminate without further obligation on the part of SCQO. Upon the forfeiture
of any Restricted Stock, such forfeited Restricted Stock shall be immediately transferred to SCQO without further action by the
Recipient.

 

The Restricted Stock
may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent that
the Restricted Stock is subject to vesting and in the event of termination of employment with or services to SCQO or any Subsidiary
for any reason.

 

2.3 Deliveries by
SCQO. A certificate evidencing the Restricted Stock shall be issued by SCQO in Recipient’s name, pursuant to which
Recipient shall have voting rights and shall be entitled to receive all dividends unless and until the shares of Restricted Stock
are forfeited pursuant to this Agreement. The certificate shall bear a legend evidencing the nature of the Restricted Stock, and
SCQO may cause the certificate to be delivered upon issuance to the Secretary of the Company or to such other depository as may
be designated by the Company for safekeeping until all vesting and forfeiture restrictions lapse pursuant to the terms of this
Agreement. Upon the lapse of the vesting and forfeiture restrictions, SCQO shall cause a new certificate or certificates to be
issued without legend in the name of the Recipient.

 

    	 

    	 

    

 

Notwithstanding any other
provisions of this Agreement, the issuance or delivery of any shares under this Agreement (whether vested or unvested) may be postponed
for such period as may be required to comply with applicable requirements of any national securities exchange or any requirements
under any federal or state securities law or regulation. SCQO shall not be obligated to (a) issue or deliver any Restricted Stock
if the issuance or delivery thereof shall constitute a violation of any provision of any law or regulation of any governmental
authority or any national securities exchange, (b) qualify the issuance of the Restricted Stock in any jurisdiction, or (c) register
the shares of Restricted Stock with the SEC.

 

3. Adjustments.
Should any change be made to the Common Stock of SCQO by reason of any stock split, reverse stock split, stock dividend, combination
of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without SCQO’s receipt
of consideration, SCQO shall make appropriate adjustments to the number and/or class of securities in effect under this Agreement
in order to prevent the dilution or enlargement of benefits thereunder; provided however, that the number of shares subject to
this Agreement shall always be a whole number and SCQO shall make such adjustments as are necessary to insure this Restricted
Stock Award is set as whole shares.

 

4. Suspension and
Cancellation of Stock

 

4.1 Mandatory Suspension
and Cancellation of Stock. In the event SCQO reasonably believes Recipient has committed an act of misconduct including,
but limited to acts specified below, SCQO may suspend Recipient’s right in his Restricted Stock Award granted hereunder
pending final determination by the Board of Directors of the Company (the “Board”). If Recipient is determined
by the Board to have:

 

(a)          committed an act
of embezzlement, fraud, dishonesty, breach of fiduciary duty to SCQO or a subsidiary;

 

(b)          deliberately disregarded
the rules or policies of SCQO or a subsidiary which resulted in loss, damage or injury to SCQO or a subsidiary;

 

(c)          made any unauthorized
disclosure of any trade secret or confidential information of SCQO or a subsidiary;

 

(d)          induced any partner,
collaborator, client or customer of SCQO or a subsidiary to break any contract with SCQO or a subsidiary or induced any principal
for whom SCQO or a subsidiary acts as agent to terminate such agency relations;

 

(e)          engaged in any
substantial conduct which constitutes unfair competition with SCQO or a subsidiary; or

 

(f)          violated any requirement
of the Foreign Corrupt Practices Act or any analogous foreign regulations,

 

    	 

    	 

    

 

neither Recipient nor
Recipient’s estate shall be entitled to shares of the Restricted Stock hereunder, whether vested or unvested. The determination
of the Board shall be final and conclusive. In making its determination, the Board shall give the Recipient an opportunity to appear
and be heard at a hearing before the full Board and present evidence on Recipient’s behalf.

 

5. Reservation of
Shares. SCQO agrees that prior to the issuance of the Restricted Stock represented by this Agreement, there shall be reserved
for issuance such number of SCQO’s authorized and unissued shares as shall be necessary to satisfy the terms and conditions
of this Agreement.

 

6. Rights of Recipients.

 

6.1 No Obligation
To Employ. Nothing in this Agreement will confer or be deemed to confer on Recipient any right to continue in the employ of,
or to continue any other relationship with, SCQO or a subsidiary or to limit in any way the right of SCQO or a subsidiary to
terminate Recipient’s employment or other relationship at any time, with or without cause.

 

6.2 Compliance With
Code Section 162(m). At all times when SCQO determines that compliance with Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”) is required or desired, the Restricted Stock if granted to a Named Executive Officer
shall comply with the requirements of Code Section 162(m). In addition, in the event that changes are made to Code Section 162(m)
to permit greater flexibility with respect to this Agreement SCQO may, subject to this Section 6, make any adjustments it deems
appropriate.

 

7. Recipient Representations.

 

7.1 Purchase for Own
Account. Recipient represents that he is acquiring the Restricted Stock solely for his own account and beneficial interest
for investment and not for sale or with a view to distribution of the Restricted Stock or any part thereof, has no present intention
of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same,
and does not presently have reason to anticipate a change in such intention.

 

7.2 Information and
Sophistication. Recipient hereby: (a) acknowledges that he has received all the information he has requested from the Company
and he considers necessary or appropriate for deciding whether to acquire the Restricted Stock, (b) represents that he has had
an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the
Restricted Stock and to obtain any additional information necessary to verify the accuracy of such information and (c) further
represents that he has such knowledge and experience in financial and business matters that he is capable of evaluating the merits
and risk of this investment.

 

7.3 Ability to Bear
Economic Risk. Recipient acknowledges that investment in the Restricted Stock involves a high degree of risk, and represents
that he is able, without materially impairing his financial condition, to hold the Restricted Stock for an indefinite period of
time and to suffer a complete loss of his investment.

 

7.4 Foreign
Persons.  If Recipient is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code
of 1986, as amended), Recipient hereby represents that he has satisfied himself as to the full observance of the laws of his jurisdiction
in connection with any invitation to purchase the Restricted Stock or any use of this Agreement, including (a) the legal requirements
within his jurisdiction for the purchase of the Restricted Stock, (b) any foreign exchange restrictions applicable to such purchase,
(c) any government or other consents that may need to be obtained, and (d) the income tax and other tax consequences, if any, that
may be relevant to the purchase, holding, redemption, sale or transfer of the Restricted Stock. The Company’s offer and sale
and Recipient’s subscription and payment for and continued beneficial ownership of the Restricted Stock will not violate
any applicable securities or other laws of Recipient’s jurisdiction.

 

    	 

    	 

    

 

7.5 Further Assurances.
Recipient agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such
further instruments and documents and take such further action as the Company may reasonably require in order to carry out the
full intent and purpose of this Agreement and to comply with state or federal Restricted Stock laws or other regulatory approvals.

 

8. Securities Law
and Other Regulatory Compliance.  SCQO shall not be obligated to issue any Restricted Stock with respect to this Agreement
unless such shares are at that time effectively registered or exempt from registration under the federal securities laws and the
offer and sale of the shares are otherwise in compliance with all applicable securities laws. Recipient may be required to furnish
representations or undertakings deemed appropriate by SCQO to enable the offer and sale of the shares or subsequent transfers
of any interest in such shares to comply with applicable securities laws. Evidences of ownership of shares acquired with respect
to this Agreement shall bear any legend required by, or useful for purposes of compliance with, applicable securities laws or this
Agreement.

 

9. Restricted Securities.
Recipient understands that the Restricted Stock are characterized as “restricted securities” under the Securities Act
inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under the Securities
Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain
limited circumstances. Accordingly, the Restricted Stock, absent an effective registration statement, can only be sold pursuant
to an exemption from registration, such as Rule 701 or Rule 144 of the Securities Act. Recipient understands that the Company is
under no obligation to register any of the securities sold hereunder.

 

10. Restrictive
Legends and Stop-Transfer Orders.

 

10.1 Legends.
Recipient understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s)
evidencing the Restricted Stock, together with any other legends that may be required by state or federal securities laws, the
Company’s Articles of Incorporation or Bylaws, any other agreement between Recipient and the Company or any agreement between
Recipient and any third party:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT.

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO VESTING AND FORFEITURE RESTRICTIONS AS SET FORTH IN THE RESTRICTED STOCK AWARD AGREEMENT BETWEEN
THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH
RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

    	 

    	 

    

 

10.2 Stop-Transfer
Instructions. Recipient agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may
issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own
securities, it may make appropriate notations to the same effect in its own records.

 

10.3 Refusal to Transfer.
The Company will not be required (a) to transfer on its books any Restricted Stock that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement, or (b) to treat as owner of such Restricted Stock, or to accord the right
to vote or pay dividends, to any purchaser or other transferee to whom such Restricted Stock have been so transferred.

 

11. Attorneys’
Fees. In the event of any litigation, arbitration, or other proceeding arising out of this Agreement, the prevailing party
shall be entitled to an award of costs, including an award of reasonable attorneys’ fees. Any judgment, order, or award entered
in any such proceeding shall designate a specific sum as an award of attorneys’ fees and costs incurred. This attorneys’
fee provision is intended to be severable from the other provisions of this Agreement, shall survive any judgment or order entered
in any proceeding, and shall not be deemed merged into any such judgment or order, so that such further fees and costs as may be
incurred in the enforcement of an award or judgment or in defending it on appeal shall likewise be recoverable by further order
of a court or panel or in a separate action as may be appropriate.

 

12. Miscellaneous
Provisions.

 

12.1 Notice. All
notices to be given by either party to the other shall be in writing and may be transmitted by personal delivery, facsimile transmission,
overnight courier or mail, registered or certified, postage prepaid with return receipt requested; provided, however, that notices
of change of address or telex or facsimile number shall be effective only upon actual receipt by the other party. Notices shall
be delivered at the following addresses, unless changed as provided for herein.

 

	 	To the Recipient:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	To SCQO:	L2 Medical Development Company	 
	 	 	2451 Alamo Ave SE	 
	 	 	Albuquerque, NM 87106	 

 

12.2 Entire Agreement.
This Agreement constitutes the entire contract between the parties hereto with regard to the subject matter hereof. They supersede
any other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to
the subject matter hereof.

 

12.3 Severability;
Conflicts. Should any provision of this Agreement be held to be invalid or illegal, such illegality shall not invalidate the
whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the illegal part or narrowed to
permit its enforcement, and the rights and obligations of the parties shall be construed and enforced accordingly.

 

12.4 Choice of Law;
Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, as such laws
are applied to contracts entered into and performed in such state. Any action brought in connection with this Agreement shall be
subject the exclusive jurisdiction of the state and federal courts sitting in Nevada in any action on a claim arising out of, under
or in connection with this Agreement or the transactions contemplated by this Agreement.

 

    	 

    	 

    

 

12.5 Binding Effect.
This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, executors, and
successors.

 

12.6 Counterparts.
This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute one and the same
instrument.

 

[Signature Page Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
this Restricted Stock Award Agreement has been executed as of the ___ day of ________, 20__.

 

	SCQO:	 
	 	 
	L2 MEDICAL DEVELOPMENT COMPANY	 
	 	 
	 	 
	Name: 	 	 
	TITLE: 	 	 
	 	 
	RECIPIENT:	 
	 	 
	 	 
	[NAME]ENERPULSE, INC.

(2011 NON- QUALIFIED DEFERRED COMPENSATION
PLAN)

 

ARTICLE I

PURPOSE AND INTENT

 

Section 1.1 Purpose
of Plan. Effective as of October 1, 2011, Enerpulse, Inc., (“COMPANY”), a taxable corporation organized under
the laws of the State of Delaware, established a deferred compensation plan, the ENERPULSE, INC., 2011 NON-QUALIFIED DEFERRED COMPENSATION
PLAN effective as of October 1, 2011. The purpose of the plan is to assist Company in attracting and retaining high-ranking executive
officers and key high-ranking management personnel, and encouraging their long-term commitment to the success of Company.

 

Section 1.2 Intent
and Construction. This plan is intended to be an unfunded and unsecured plan maintained by the Company primarily for the
purpose of providing deferred compensation for a select group of management or highly compensated employees. The plan is further
intended to be construed and administered in conformance with the applicable requirements of section 409A of the Internal Revenue
Code, the guidance issued by the Department of the Treasury with respect to the application of section 409A, the Employee Retirement
Income Security Act of 1974, as amended, and to be maintained by the Company pursuant to this written plan document for the purpose
of providing deferred compensation for the plan participants. This plan document shall be administered and construed in a manner
consistent with said intent and according to the laws of the State of Delaware to the extent that such laws are not preempted by
the laws of the United States of America.

 

ARTICLE II

DEFINITIONS

 

Section 2.1 Definitions.
When used in this document with initial capital letters, the terms defined in this Section 2.1 shall have the meanings respectively
ascribed to them unless a different meaning is plainly required by the context.

 

(a) Beneficiary.
“Beneficiary” means the person, persons or trust designated by a Participant to receive any benefits which may become
payable under the Plan by reason of the death of the Participant.

 

(b) Board of Directors.
“Board of Directors” means the Board of Directors of the Company.

 

(c) Business Day.
“Business Day” means a day on which the New York Stock Exchange is open for trading.

 

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(d) Change in Control.
“Change in Control” means, for purposes of the interpretation of this Plan in conformance with section 409A of the
Code and the applicable guidance issued by the Department of the Treasury with respect to the application of section 409A, with
respect to a Plan Participant, a Change in Control event must relate to: (i) the corporation for which the Participant is performing
services at the time of the Change in Control event, (ii) the corporation that is liable for the payment of the deferred compensation
(or all corporations liable for the payment if more than one corporation is liable), or (iii) a corporation that is a majority
shareholder of a corporation identified in part (i) or part (ii) above, or any corporation in a chain of corporations in which
each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in part (i)
or part (ii) above. For purposes of this provision, a majority shareholder is a shareholder owning more than fifty percent (50%)
of the total fair market value and total voting power of such corporation. Also, for purposes of this provision, section 318(a)
of the Code applies to determine stock ownership. Additionally, for purposes of this provision and in conformance with section
409A and the applicable guidance issued by the Department of the Treasury with respect to the application of section 409A, a change
in the ownership of a corporation or a change in the effective control of a corporation is determined in accordance with the provisions
described below in this definition.

 

(i) A change in the
ownership of a corporation shall occur on the date that any one person, or more than one person acting as a group, in one transaction
or a series of transactions, directly or indirectly, acquires ownership of stock of the corporation that, together with stock held
by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the corporation. However, if any one person or more than one person acting as a group, is considered to own more than
fifty percent (50%) of the total fair market value or total voting power of the stock of the corporation, the acquisition of additional
stock by the same person or persons shall not be considered to cause a change in the ownership of the corporation (or to cause
a change in the effective control of the corporation). An increase in the percentage of stock owned by any one person, or persons
acting as a group, as a result of a transaction, in one transaction or a series of transactions, directly or indirectly, in which
the corporation acquires its stock in exchange for property shall be treated as an acquisition of stock for purposes of this provision.

 

(ii) For purposes
of paragraph (i) above, persons will not be considered to be acting as a group solely because they purchase or own stock of the
same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting
as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar
business transaction with the corporation. If a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as
a group with other shareholders in a corporation prior to the transaction giving rise to the change and not with respect to the
ownership interest in the other corporation.

 

(iii) A change in
the effective control of a corporation shall occur on the date that either:

 

(A) any one person,
or more than one person acting as a group, in one transaction or a series of transactions, directly or indirectly, acquires (or
has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership
of stock of the corporation possessing thirty-five percent (35%) or more of the total voting power of the stock of the corporation;
or

 

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(B) a majority of members
of the board of directors of the corporation is replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the board of directors of the corporation prior to the date of the appointment
or election, provided that for purposes of this subparagraph (B) the term “corporation” shall be determined in accordance
with the requirements of section 409A of the Code and the applicable guidance issued by the Department of the Treasury with respect
to the application of section.

 

(iv) A change in the
ownership of a substantial portion of the assets of a corporation shall occur on the date that any one person, or more than one
person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than forty percent
(40%) of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.
For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed
of, determined without regard to any liabilities associated with such assets.

 

(v) The provisions
of this subsection (e) regarding the definition of the term “Change in Control,” shall be determined and administered
in accordance with section 409A and the applicable guidance issued by the Department of the Treasury with respect to the application
of section 409A.

 

(e) Code. “Code”
means the Internal Revenue Code of 1986, any amendments thereto, and any regulations or rulings issued thereunder.

 

(f) Compensation.
“Compensation” means, with respect to a Participant, remuneration for services performed during a taxable year as defined
herein and as determined for purposes of the interpretation of the Plan:

 

(i) except as provided
herein and in the succeeding paragraphs of this subsection, Compensation means wages within the meaning of section 3401(a) of the
Code (for purposes of income tax withholding) but determined without regard to any rules that limit the remuneration included in
wages based on the nature or location of the employment or the services performed or the limitations imposed on tax-qualified plans
described in section 401(a) of the Code, and shall include any elective deferral as defined in section 402(g)(3) of the Code and
any amount which is contributed or deferred at the election of the Participant by reason of section 125 of the Code, section 134(f)
of the Code, section 403(b) of the Code, or section 457 of the Code;

 

(ii) Compensation means
fees paid to members of the Board of Directors who are not employees of the Company;

 

(iii) Compensation
shall be further determined in accordance with the following rules and requirements:

 

(A) Compensation shall
be determined by including bonuses (other than vacation bonuses or Performance-Based Compensation), sick pay and short-term disability
benefits;

 

(B) Compensation shall
not include: any remuneration not paid in cash; the value of life insurance coverage included in the Participant's wages under
section 79 of the Code; any car allowance or moving expense or mileage reimbursement; severance pay; and amounts deferred under
any plan of deferred compensation except this Plan (other than elective deferrals under tax-qualified plans enumerated in part
(i) above).

 

(g) Company.
“Company” means the Enerpulse, Inc., a Delaware corporation.

 

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(h) Deferral Election
Form. “Deferral Election Form” means the form approved by the Company from time to time for use by a Participant
to elect to defer compensation under the Plan.

 

(i) Deferred Compensation
Account. “Deferred Compensation Account” means the account established and maintained for a Participant as a record
of any deferred amounts that may be credited to the account of the Participant pursuant to the Plan and measured in dollars pursuant
to the provisions of the Plan, which shall be maintained for bookkeeping purposes only.

 

(j) Disability.
“Disability” means, with respect to a Participant, the Participant is: (i) unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months; (ii) by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and
health plan covering employees of the Company; or (iii) determined to be totally disabled by the Social Security Administration.

 

(k) ERISA. “ERISA”
means the Employee Retirement Income Security Act of 1974, any amendments thereto, and any regulations or rulings issued thereunder.

 

(l) Participant.
“Participant” means an individual who has satisfied the eligibility and participation requirements of Article III of
the Plan and is determined to be a Participant pursuant to and in accordance with Article III of the Plan.

 

(m) Performance-Based
Compensation. “Performance-Based Compensation” means compensation the amount of which, or the entitlement to which,
is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance
period of at least twelve (12) consecutive months; organizational or individual performance criteria are considered preestablished
if established in writing by not later than ninety (90) days after the commencement of the period of service to which the criteria
relates, provided that the outcome is substantially uncertain at the time the criteria are established; Performance-Based Compensation
may include payments based on performance criteria that are not approved by the Board of Directors.

 

(n) Plan. “Plan”
means the “ENERPULSE, INC., 2011 NON-QUALIFIED DEFERRED COMPENSATION PLAN” established by the Company, effective as
of October 1, 2011, which is unfunded and maintained by the Company primarily for the purpose of providing deferred compensation
for a select group of management or highly compensated employees of the Company.

 

(o) Separation from
Service. “Separation from Service” means the complete and intended termination of the employment relationship with
the Company and all corporations or entities or organizations with whom the Company would be considered a single employer pursuant
to subsections (b) and (c) of section 414 of the Code determined in conformance with section 409A of the Code and section 1.409A-1(h)
of the Final Treasury Regulations or the corresponding provisions in future guidance issued by the Department of the Treasury and
the Internal Revenue Service.

 

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(p) Trust. “Trust”
means the Trust dated as of October 1, 2011 established by the Company and Wells Fargo Bank, N.A., Delaware, Colorado as Trustee
to which contributions shall be made to provide the Company with a source of funds for purposes of satisfying the obligations of
the Company under the Plan. The Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an
unfunded plan. The Participants and their Beneficiaries shall have no beneficial ownership interest in any assets held in the Trust.

 

(q) Trustee.
“Trustee” means the corporation; person or persons selected by the Company to serve as Trustee of the Trust, initially,
New Mexico Bank & Trust, Albuquerque, New Mexcio.

 

(r) Valuation Date.
“Valuation Date” means each Business Day during the calendar year.

 

(s) Vested.
“Vested” means, for purposes of determining the benefit that may be payable to or on behalf of a Participant under
the Plan, an interest in the benefit described under the Plan which may be payable to or on behalf of the Participant in accordance
with and subject to the terms of the Plan.

 

Section 2.2 Rules
of Interpretation. An individual shall be considered to have attained a given age on the individual's birthday for that
age (and not on the day before). The birthday of any individual born on a February 29 shall be deemed to be February 28 in any
year that is not a leap year. Notwithstanding any other provision of this Plan or any election or designation made under the Plan,
any individual who feloniously and intentionally kills the Participant or Beneficiary shall be deemed for all purposes of this
Plan and all elections and designations made under this Plan to have died before the Participant or Beneficiary. A final judgment
of conviction of felonious and intentional killing is conclusive for the purposes of this Section 2.2. In the absence of a conviction
of felonious and intentional killing, the Company shall determine whether the killing was felonious and intentional for the purposes
of this Section 2.2. Whenever appropriate, words used herein in the singular may be read in the plural, or words used herein in
the plural may be read in the singular; the masculine may include the feminine and the feminine may include the masculine; and
the words “hereof,” “herein” or “hereunder” or other similar compounds of the word “here”
shall mean and refer to this entire Plan and not to any particular paragraph or section of this Plan unless the context clearly
indicates to the contrary. The titles given to the various sections of this Plan are inserted for convenience of reference only
and are not part of this Plan, and they shall not be considered in determining the purpose, meaning or intent of any provision
hereof. Any reference in this Plan to a statute or regulation shall be considered also to mean and refer to any subsequent amendment
or replacement of that statute or regulation. This document shall, except to the extent that federal law is controlling, be construed
and enforced in accordance with the laws of the State of Delaware.

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

 

Section 3.1 Eligibility.
Eligibility to participate in the Plan shall be limited and selective; only a select group of high-ranking executive officers,
key high-ranking management personnel, and members of the Board of Directors of the Company shall be eligible to participate in
the Plan. Eligibility shall be determined by the Board of Directors of the Company, and such determination shall be final, conclusive
and binding upon all parties in interest.

 

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Section 3.2 Participation.
A high-ranking executive officer, a key high-ranking management person, or a member of the Board of Directors determined to be
eligible to participate in the Plan by the Board of Directors of the Company pursuant to Section 3.1 of the Plan shall become a
Participant in the Plan as of the date on which the Board of Directors determines such eligible individual to be a Participant
in the Plan. If the Board of Directors determines that a high-ranking executive officer, a key high-ranking management person,
or a member of the Board of Directors is eligible to become a Participant in the Plan, the Board of Directors shall inform that
individual in writing of the determination of eligibility and participation and the date on which the individual shall become a
Participant in the Plan. Once an individual becomes a Participant in the Plan, the individual shall remain a Participant until
the benefits which may be payable to the individual under the Plan have been distributed to or on behalf of the individual.

 

Section 3.3 Suspension
of Eligibility. Notwithstanding any provision apparently to the contrary in the Plan document or in any written communications,
summary, resolution or document or oral communication, in the event the Board of Directors of the Company determines that a Participant
will no longer be eligible to actively participate in the Plan, then, subject to the rules and requirements of section 409A of
the Code and applicable guidance issued by the Department of the Treasury, the compensation deferral elections made by that individual
in accordance with the provisions of the Plan will be terminated and no additional amounts shall be deferred and credited to the
Deferred Compensation Account of that individual under the Plan until such time as the individual is again determined to be eligible
to participate in the Plan by the Board of Directors of the Company and makes a new election under the provisions of the Plan;
except, however, that the amounts credited to the Deferred Compensation Account of such individual shall continue to be adjusted
pursuant to the other provisions of the Plan until fully distributed.

 

ARTICLE IV

BENEFITS

 

Section 4.1 Deferred
Compensation. Subject to the conditions and restrictions imposed under the Plan, a Participant may elect to defer receipt
of Compensation and Performance-Based Compensation. Compensation and Performance-Based Compensation may only be deferred to the
extent that the Participant is or may be entitled to receive such compensation and the total amount deferred by a Participant shall
be limited, if necessary, to satisfy Social Security taxes (including Medicare), other employment taxes, federal, state, or local
income taxes, employee benefit plan deferrals or contributions, and any other required or necessary withholding requirements as
determined in the sole and absolute discretion of the Plan administrator. For each calendar year, subject to the limitations of
this Section 4.1, a Participant may elect to defer up to one hundred percent (100%) of any Performance-Based Compensation payable
pursuant to a bonus or incentive plan, and up to one hundred percent (100%) of Compensation. Upon such deferral, the Participant
will have no further right to such deferred compensation other than as provided under the Plan. Unless an allocation is made to
another account under the terms of the Plan, any Compensation and Performance-Based Compensation deferred under the Plan by a Participant
shall be credited to the account of the Participant and allocated to the Deferred Compensation Account of the Participant.

 

    	6

    	 

    

 

Section 4.2 Deferral
Elections. Compensation for services performed by a Participant during a calendar year and Performance-Based Compensation
for services during a performance period of at least twelve (12) consecutive months in which the Participant performs services
may be deferred at the election of the Participant and credited to the Deferred Compensation Account of the Participant only if
the election is made pursuant to the rules and requirements of this Section 4.2.

 

(a) The General
Rule. Except as otherwise provided in this Section 4.2, Compensation for services performed by a Participant during a calendar
year may be deferred at the election of the Participant only if the election to defer such Compensation is made and becomes irrevocable
not later than the last day of the calendar year immediately preceding the calendar year during which services are to be performed.

 

(b) Performance-Based
Compensation. In the case of Performance-Based Compensation based upon a performance period of at least twelve (12) months,
provided that the Participant performs services continuously from a date no later than the date upon which the performance criteria
are established through a date no earlier than the date upon which the Participant makes an initial deferral election, an initial
deferral election may be made with respect to the Performance-Based Compensation no later than the date that is six (6) months
before the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be
made after such compensation has become both substantially certain to be paid and readily ascertainable. For purposes of this provision,
the performance criteria shall be established in writing no later than ninety (90) days after the commencement of the performance
period.

 

(c) First Year of
Eligibility. In the case of the first year in which the employee becomes eligible to participate in the Plan, the employee
may make an initial deferral election within thirty (30) days after the date the employee becomes eligible to participate in the
Plan (as defined in section 1.409A-1(c) of the Final Treasury Regulations or the corresponding provision in subsequent guidance
issued by the Department of the Treasury to include any other plan that would be considered together with this Plan as the same
plan), with respect to Compensation paid for services to be performed subsequent to the election. With respect to Performance-Based
Compensation, an initial deferral election may be made with respect to such Performance-Based Compensation on or before the date
that is six (6) months before the end of the performance period, provided that the service provider performs services continuously
from the later of the beginning of the performance period or the date the performance criteria are established through the date
an election is made, and provided further that in no event may an election to defer Performance-Based Compensation be made after
such compensation has become substantially certain to be paid and readily ascertainable. The election will be deemed to apply to
compensation paid for services performed subsequent to the election provided that the election applies to the portion of the compensation
equal to the total amount of the compensation for the service period multiplied by the ratio of the number of days remaining in
the performance period after the election over the total number of days in the performance period.

 

Section 4.3 Discretionary
Amounts. Irrespective of any Compensation or Performance-Based Compensation that may be deferred by a Participant pursuant
to the provisions of the Plan, the Board of Directors of the Company may at any time and from time to time, in its sole and absolute
discretion, determine to credit the Deferred Compensation Account of a Participant with an amount determined by the Board of Directors
of the Company in its sole and absolute discretion. The discretion of the Board of Directors of the Company as to whether a discretionary
amount may be credited to the Deferred Compensation Account of a Participant and, if so, the amount to be credited, shall be separately
exercised with respect to each Participant. An amount may, therefore, differ from Participant to Participant both as to the amount
and as to the percentage of compensation.

 

    	7

    	 

    

 

ARTICLE V

VALUATION OF DEFERRED COMPENSATION ACCOUNT

 

Section 5.1 Deferred
Amount. Amounts credited to the Deferred Compensation Account of a Participant in accordance with the provisions of the
Plan, shall be adjusted in accordance with the provisions of this Article V no less frequently than as of the last Business Day
of each calendar quarter.

 

Section 5.2 Value
of Amounts Credited to the Account. As of the Valuation Date for which the current value is determined (the “current
Valuation Date”), the value of any amounts credited to the Deferred Compensation Account of a Participant determined as of
the immediately preceding Valuation Date (the “previous Account value”) for which the value was determined shall be
increased or decreased by the following adjustments made in the sequence below.

 

(a) The value shall
be increased by the amounts credited to the Deferred Compensation Account, if any, pursuant to Article IV of the Plan.

 

(b) The value (as
determined above) shall be adjusted based upon the investment experience of assets of the Trust with respect to which the Trustee
invests pursuant to the terms and conditions of the Trust agreement, or otherwise separately accounted for and held in investment
vehicles pursuant to which assets may otherwise be invested and earnings and losses determined, to provide the basis on which earnings
and losses may be attributed or allocated to the Deferred Compensation Account of the Participant under the Plan. The investment
vehicle or vehicles and the funds available under such vehicle or vehicles shall be determined by the Company. However, if permitted
by the Company and in accordance with the terms and conditions established by the Company, for the purpose of providing the basis
on which earnings and losses may be attributed or credited to the Deferred Compensation Account of a Participant under the Plan,
a Participant may designate investment vehicles or funds to be used for purposes of measuring the value of the amount credited
to the Deferred Compensation Account of the Participant. If so permitted by the Company, the Company shall determine the manner
in which the election of such investment vehicles or funds shall be made and shall require the completion of a form made available
to the Participant by the Company for such purposes. Neither the trustee of a trust with respect to which assets may be held nor
the Company shall be obligated to make actual investments in any such investment vehicles or funds. The account established pursuant
to this subsection (b) shall be maintained for bookkeeping purposes only and shall not represent any actual investment made by
the Company or a trust. The Participant shall at all times remain an unsecured creditor of the Company.

 

(c) The value (as
adjusted above) shall be reduced by the amount distributed to or with respect to the Participant from such Deferred Compensation
Account.

 

    	8

    	 

    

 

ARTICLE VI

VESTING OF ACCOUNTS

 

Section 6.1 Vested
Benefit. A Participant shall be considered to be 100% Vested in the amount credited to the Deferred Compensation Account
of the Participant under the Plan.

 

Section 6.2 Nature
of Accounts. The Deferred Compensation Account of a Participant established under the Plan shall be maintained for bookkeeping
purposes only. The Company, the Deferred Compensation Account of the Participant and the Plan shall not be required to hold any
actual funds or other assets.

 

ARTICLE VII

DISTRIBUTION OF BENEFITS

 

Section 7.1 Distributable
Events. The amount credited to the Deferred Compensation Account of a Participant under this Plan may be distributed only
on account of one or more of the distribution events specified in this Section 7.1. In the event the Participant becomes eligible
to receive a benefit under the Plan, then, except as otherwise provided in this Section 7.1 and Section 7.2 of the Plan, the amount
credited to the Deferred Compensation Account shall be distributable as of the date on which occurs the earliest of the following
dates:

 

(a) the sale of the
Company;

 

(b) notwithstanding
any other distribution event in this Section 7.1, the time or fixed schedule specified under and in accordance with the provisions
of subsection (b) of Section 7.2 of the Plan;

 

(c) the date on which
occurs a Change in Control, effecting a change in the ownership or in the effective control of the Company or a change in the ownership
of a substantial portion of the assets of the Company, determined in conformance with the definition of that term in Section 2.1
of the Plan and section 409A of the Code and the guidance issued by the Department of the Treasury and the Internal Revenue Service
with respect to the application of section 409A of the Code; or

 

(d) the date on which
occurs the termination of the Plan, in accordance with Article XII of the Plan.

 

Section 7.2 Distribution
of Benefits. The manner in which benefits shall be distributed shall be determined in accordance with this Section 7.2.

 

(a) Distribution
Without Scheduled Distribution Election. Except as otherwise determined in subsections (b) and (c) of this Section 7.2 or as
otherwise provided in subsection (a) of Section 7.1, as of the date on which occurs a distributable event pursuant to Section 7.1
of the Plan, the deferred compensation benefit payable to or on behalf of a Participant if no election is made by the Participant
with respect to the time and form of the benefit payable under the Plan shall be payable in the form of a lump sum payment with
the payment to be made within five (5) Business Days immediately following the distributable event.

 

    	9

    	 

    

 

(b) Distribution
With Scheduled Distribution Election. An eligible Participant may elect a specified time or fixed schedule for a distribution
of the deferred compensation benefit payable under the Plan; provided, however, that objectively determinable amounts are payable
at a date or dates that are nondiscretionary and objectively determinable at the time the amount is deferred. For purposes of this
subsection (b), the following requirements shall apply:

 

(i) except as otherwise
provided under the terms of the Plan, the Participant must make an election of the method of benefit payments as soon as it is
administratively possible following the date the person becomes a Participant in the Plan, but in no event later than thirty (30)
days following such date; if the payment method is not elected by the Participant within such time, the Participant shall be deemed
to have elected to have his or her benefit paid in a lump sum cash payment as of the date determined in subsection (a) of this
Section 7.2;

 

(ii) if the distribution
election for a benefit payment is in the form of periodic payments, such election shall be limited to periodic payments over a
period of not less than one (1) year and not more than ten (10) years;

 

(iii) an election under
this subsection (b) shall provide whether the time or fixed schedule shall be effective even if that time or fixed schedule is
not the earliest to occur of the dates specified in Section 7.1 of the Plan;

 

(iv) if the distribution
election does not specifically provide that the time or fixed schedule is effective even if that time or fixed schedule is not
the earliest to occur of the dates specified in Section 7.1, then the earliest to occur of the dates specified in Section 7.1 shall
govern the distribution of the benefit;

 

(v) the payment of
installment payments shall be treated as the entitlement to a single payment, unless, with respect to the plan maintained for a
Participant as determined in accordance with section 1.409A-1(c) of the Treasury Regulations, the entitlement to a series of installment
payments is not treated as the entitlement to a single payment; instead, pursuant to an election by the Participant, the plan of
the Participant (and any other plan required to be aggregated with the plan under the final regulations issued with respect to
the application of section 409A of the Code) provides that at all times with respect to the amount deferred the right to the series
of installment payments is to be treated as a right to a series of separate payments as permitted under section 1.409A-2(b)(2)(iii)
of the Treasury Regulations:

 

(A) for this purpose,
a series of installment payments refers to an entitlement to the payment of a series of substantially equal periodic amounts to
be paid over a predetermined period of years, except to the extent any increase (or decrease) in the amount reflects reasonable
earnings (or losses) through the date the amount is paid, and

 

(B) a change in the
predetermined period or the commencement date is a change in the time and form of payment;

 

(vi) the Participant
may elect to change the timing of distribution or change the form of distribution subject to certain requirements; this subsequent
election shall be made in conformance with section 409A of the Code and the guidance issued by the Department of the Treasury with
respect to the application of section 409A; a subsequent election to delay the timing of distribution or to change the form of
distribution shall be effective only if the following conditions are met:

 

    	10

    	 

    

 

(A) an election related
to a distribution to be made upon a specified time or pursuant to a fixed schedule may not be made less than twelve (12) months
before the date of the first scheduled payment,

 

(B) the election shall
not take effect until at least twelve (12) months after the date on which the election is made, and

 

(C) except in the case
of elections relating to distributions on account of death or Disability, the additional deferral with respect to which such election
is made is for a period of not less than five (5) years from the date such payment would otherwise have been made.

 

(c) Distribution
Upon Death. Except in the event of an election by a Participant to the contrary, if a Participant dies prior to the completion
of the payment of the entire deferred compensation benefit payable under the Plan, the remaining payments shall continue to be
made to the designated Beneficiary of the Participant in the same form and manner as determined under the Plan.

 

Section 7.3 Designation
of Beneficiaries.

 

(a) Right to Designate.
The Participant may designate, upon forms to be furnished by and filed with the Company, one or more primary Beneficiaries or alternative
Beneficiaries to receive all or a specified portion of any benefits which may be payable with respect to the Participant under
the Plan in the event of the Participant's death. The Participant may change or revoke any such designation from time to time without
notice to or consent from any Beneficiary. No such designation, change or revocation shall be effective unless executed by the
Participant and received and accepted by the Company during the lifetime of the Participant.

 

(b) Failure of Designation.
If a Participant fails to designate a Beneficiary, designates a Beneficiary and thereafter revokes such designation without naming
another Beneficiary, or designates one or more Beneficiaries and all such Beneficiaries so designated fail to survive the Participant,
then the benefits which may be payable with respect to the Participant under the Plan, or the part thereof as to which such Participant's
designation fails, as the case may be, shall be payable to the first class of the following classes of automatic Beneficiaries
with a member surviving the Participant and (except in the case of surviving issue) in equal shares if there is more than one member
in such class surviving the Participant:

 

		(i)	the surviving spouse of the Participant;

		(ii)	the surviving issue per stirpes and not per capita;

		(iii)	the surviving parents of the Participant;

		(iv)	the surviving brothers and sisters of the Participant;

		(v)	the representative of Participant's estate.

 

(c) Definitions.
When used herein and, unless the Participant has otherwise specified in the Participant's Beneficiary designation, when used in
a Beneficiary designation, “issue” means all persons who are lineal descendants of the person whose issue are referred
to, including legally adopted descendants and their descendants but not including illegitimate descendants and their descendants;
“child” means an issue of the first generation; “per stirpes” means in equal shares among living children
of the person whose issue are referred to and the issue (taken collectively) of each deceased child of such person, with such issue
taking by right of representation of such deceased child; and “survive” and “surviving” mean living after
the death of the Participant.

 

    	11

    	 

    

 

(d) Special Rules.
Unless the Participant has otherwise specified in the Beneficiary designation, the following rules shall apply:

 

(i) if there is not
sufficient evidence that a Beneficiary was living at the time of the death of the Participant, it shall be deemed that the Beneficiary
was not living at the time of the death of the Participant;

 

(ii) the automatic Beneficiaries
specified in subsection (b) of this Section 7.3 and the Beneficiaries designated by the Participant shall become fixed at the time
of the Participant's death so that, if a Beneficiary survives the Participant but dies before the receipt of all payments due such
Beneficiary hereunder, such remaining payments shall be payable to the representative of such Beneficiary's estate;

 

(iii) if the Participant
designates as a Beneficiary the person who is the spouse of the Participant on the date of the designation, either by name or by
relationship, or both, the dissolution, annulment or other legal termination of the marriage between the Participant and such person
shall automatically revoke such designation; except, however, that the foregoing shall not prevent the Participant from designating
a former spouse as a Beneficiary on a form executed by the Participant and received by the Company after the date of the legal
termination of the marriage between the Participant and such former spouse, and during the lifetime of the Participant;

 

(iv) any designation
of a Beneficiary by name that is accompanied by a description of relationship to the Participant shall be given effect without
regard to whether the relationship to the Participant exists either then or at the Participant's death;

 

(v) any designation
of a Beneficiary only by statement of relationship to the Participant shall be effective only to designate the person or persons
standing in such relationship to the Participant at the Participant's death.

 

(e) Validity of Designation.
A Beneficiary designation is permanently void if it either is executed or is filed by a Participant who, at the time of such execution
or filing, is then a minor under the law of the state of the legal residence of the Participant. The Company shall be the sole
judge of the content, interpretation and validity of a purported Beneficiary designation.

 

(f) No Beneficiary
Rights. Prior to the death of the Participant, no person designated to be a Beneficiary shall have any rights or interest in
the benefits credited under this Plan including, but not limited to, the right to be the sole Beneficiary or to consent to the
designation of Beneficiaries (or the changing of designated Beneficiaries) by the Participant.

 

Section 7.4 Death
Prior to Full Distribution. If, at the death of a Participant, any payment to the Participant was due or otherwise distributable
but not actually paid, the amount of such payment shall be payable to the Beneficiary as provided in this Article VII.

 

Section 7.5 Incompetent
Participants. If any person who may be eligible to receive a payment under the Plan has been legally declared incompetent
and a conservator or other person legally charged with the care of such person or of the estate of such person has been appointed,
any payment under the Plan to which the person is eligible to receive shall be paid to such conservator or other person legally
charged with the care of the person or the estate of the person. Any such payment shall be a payment for the account of such person
and a complete discharge of any liability of the Company and the Plan therefor.

 

    	12

    	 

    

 

ARTICLE VIII

BENEFIT LIMITATIONS AND WITHHOLDING

 

Section 8.1 Anti-Alienation
of Benefits. The amount credited to the Deferred Compensation Account of a Participant under the Plan, and any rights or
privileges pertaining thereto, may not be anticipated, alienated, sold, transferred, assigned, pledged, encumbered, or subjected
to any charge or legal process; and no interest or right to receive a benefit may be taken, either voluntarily or involuntarily,
for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony,
support, separate maintenance and claims in bankruptcy proceedings.

 

Section 8.2 Limitation
on Payment. Notwithstanding any provision in the Plan to the contrary, the payment of a benefit payable under the Plan
to a Participant or Beneficiary may be deferred or limited in order to comply with applicable securities laws, tax laws, judicial
determinations or orders, bank covenants, or any other applicable law as permitted or required under section 409A of the Code and
applicable guidance issued by the Department of the Treasury with respect to the application of section 409A.

 

Section 8.3 Tax
Withholding. The Company shall have the authority, duty and power to determine, withhold and report the amount of any applicable
employment taxes and any applicable foreign, federal, state, or local taxes as may be required under section 409A of the Code,
or other applicable provision of the Code, and guidance issued by the Department of the Treasury or the Internal Revenue Service
with respect to the application of section 409A or other applicable provision of the Code, and any other applicable law with respect
to any amount payable under the Plan. The Company shall have the authority, duty and power to reduce any benefit payable pursuant
to the Plan by the amount of any foreign, federal, state or local taxes required by law to be withheld by the Company under applicable
law with respect to such payment of benefits, and if required by law, the Participant's share of Federal Insurance Contributions
Act taxes, and any other employment taxes. Amounts required to be includable in income shall be reported on an individual's Form
W-2 or Form 1099, whichever is applicable, for the year includable in income. The Company may withhold from any cash payment under
the Plan payable to the Participant or Beneficiary an amount sufficient to cover any withholding taxes required or permitted to
be withheld from the Participant or Beneficiary. The Company may in accordance with and to the extent it is able under the laws
of the jurisdiction with respect to which a tax is owed, deduct the relevant amount from other earnings payable to the Participant
or Beneficiary. The Company shall be entitled to withhold and deduct from future wages of a Participant (or from other amounts
that may be due and owing to a Participant from the Company), including all payments under this Plan, or make other arrangements
for the collection of all legally required amounts necessary to satisfy any and all foreign, federal, state, or local tax withholding
and employment-related tax requirements.

 

ARTICLE IX

ADMINISTRATION OF THE PLAN

 

Section 9.1 Administrator.
The administrator of the Plan shall be the Company. However, except as otherwise provided herein, the Board of Directors of the
Company shall act on behalf of the Company with respect to the administration of the Plan and the performance of functions generally
assigned to the Company.

 

    	13

    	 

    

 

Section 9.2 Authority
of Administrator. The Board of Directors of the Company shall have the authority, duty and power to interpret and construe
the provisions of the Plan as it deems appropriate, to adopt, establish and revise rules, procedures and regulations relating to
the Plan, to determine the conditions subject to which any benefits may be payable, to resolve all factual and legal questions
concerning the status and rights of the Participants and others under the Plan, including, but not limited to, eligibility for
benefits and to make any other determinations which it believes necessary or advisable for the administration of the Plan. Benefits
under this Plan will be payable only if the Board of Directors of the Company decides in its discretion that the applicant is entitled
to them under the Plan. The Board of Directors of the Company shall have the duty and responsibility of maintaining records, making
the requisite calculations and disbursing payments hereunder. The determinations, interpretations, and regulations of the Board
of Directors of the Company and the calculations of the Board of Directors of the Company shall be final and binding on all persons
and parties concerned. The Chairman of the Board of Directors of the Company shall be the agent of the Plan for the service of
legal process in accordance with section 502 of ERISA.

 

Section 9.3 Operation
of Plan and Claims Procedures. The Company shall be responsible for the general operation and administration of the Plan
and for carrying out the provisions thereof. The Company shall be responsible for the expenses incurred in the administration of
the Plan. The Company shall also be responsible for determining eligibility for payments and the amounts payable pursuant to the
Plan. The Company shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished
by any actuary, accountant, controller, counsel or other person employed or engaged by the Company with respect to the Plan. The
procedures for filing claims for payments under the Plan are described below. For claims procedures purposes, the “Claims
Manager” shall be the Company.

 

(a) Claims Forms.
It is the intent of the Company that benefits payable under the Plan shall be payable without the Participant having to complete
or submit any claims forms. However, a Participant who believes he or she is entitled to a payment under the Plan may submit a
claim for payments in writing to the Company. Any claim for payments under the Plan must be made by the Participant or his or her
beneficiary in writing and state the claimant's name and the nature of benefits payable under the Plan on a form acceptable to
the Company. If for any reason a claim for payments under the Plan is denied by the Company, the Claims Manager shall deliver to
the claimant a written explanation setting forth the specific reasons for the denial, specific references to the pertinent provisions
of the Plan on which the denial is based, a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why such material or information is necessary, and information on the procedures to be
followed by the claimant in obtaining a review of his or her claim, all written in a manner calculated to be understood by the
claimant. For this purpose:

 

(i) the claimant's
claim shall be deemed to be filed when presented in writing to the Claims Manager;

 

(ii) the Claims Manager's
explanation shall be in writing delivered to the claimant within ninety (90) days of the date the claim is filed.

 

    	14

    	 

    

 

(b) Review.
The claimant shall have sixty (60) days (expanded to one hundred and eighty (180) days in the case of a disability claim) following
his or her receipt of the denial of the claim to file with the Claims Manager a written request for review of the denial. For such
review, the claimant or the claimant's representative may review pertinent documents and submit written issues and comments.

 

(c) Decision on
Review. The Claims Manager shall decide the issue on review and furnish the claimant with a copy within sixty (60) days of
receipt of the claimant's request for review of the claimant's claim. The decision on review shall be in writing and shall include
specific reasons for the decision, written in a manner calculated to be understood by the claimant, as well as specific references
to the pertinent provisions in the Plan on which the decision is based. In no event may a claimant commence legal action for benefits
the claimant believes are due the claimant until the claimant has exhausted all of the remedies and procedures afforded the claimant
by this Section 9.3.

 

(d) Disability
Claims. Any review of an appeal of a determination with respect to the Participant's Disability must meet the following standards:
the review does not afford deference to the initial adverse determination; the review is conducted by an appropriate person who
is neither the party who made the initial adverse benefit determination that is the subject of the appeal nor a subordinate of
such party; the review provides for the appropriate person to consult with health care professionals with appropriate training
and experience in the field of medicine involved in the medical judgment in deciding the appeal of an adverse benefit determination
that is based in whole or in part on a medical judgment; and the review provides for the identification of the medical or vocational
experts whose advice was obtained in connection with the claimant's adverse benefit determination, without regard to whether the
advice was relied upon in making the determination. Furthermore, the ninety (90) day period described in these procedures shall
be reduced to forty-five (45) days in the case of a claim of the Participant's Disability. The forty-five (45) day period may be
extended by thirty (30) days if the Claims Manager determines the extension is necessary to circumstances outside the control of
the Plan, and the claimant is notified prior to the end of the forty-five (45) day period. If prior to the end of the thirty (30)
day extension period, the Claims Manager determines that additional time is necessary, the period may be extended for a second
thirty (30) day period, provided the claimant is notified prior to the end of the first thirty (30) day extension period and such
notice specifies the circumstances requiring the extension and the date as of which the Plan expects to render a decision. The
sixty (60) day period described in these procedures shall be reduced to forty-five (45) days with respect to the appeal of the
denial of the Participant's claim of Disability. The forty-five (45) day period may be extended by an additional forty-five (45)
days if the Claims Manager determines the extension is necessary to circumstances outside the control of the Plan, and the claimant
is notified prior to the end of the initial forty-five (45) day period.

 

(e) General Rules.
No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with
the claims procedure. The Claims Manager may require that any claim for benefits and any request for a review of a denied claim
be filed on forms to be furnished by the Claims Manager upon request. The Claims Manager may, in its discretion, hold one or more
hearings on a claim or a request for a review of a denied claim. Claimants may be represented by a lawyer or other representative
at their own expense, but the Claims Manager reserves the right to require the claimant to furnish written authorization. A claimant's
representative shall be entitled to copies of all notices given to the claimant.

 

(f) Deadline to
File Claim. To be considered timely under the Plan's claim and review procedure, a claim must be filed with the Company within
one (1) year after the claimant knew or reasonably should have known of the principal facts upon which the claim is based.

 

    	15

    	 

    

 

(g) Exhaustion
of Administrative Remedies. The exhaustion of the claim and review procedure is mandatory for resolving every claim and dispute
arising under this Plan. As to such claims and disputes:

 

(i) no claimant shall
be permitted to commence any legal action to recover Plan benefits or to enforce or clarify rights under the Plan under section
502 or section 510 of ERISA or under any other provision of law, whether or not statutory, until the claim and review procedure
set forth herein have been exhausted in their entirety; and

 

(ii) in any such legal
action all explicit and all implicit determinations by the Company (including, but not limited to, determinations as to whether
the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by
law.

 

(h) Deadline to
File Legal Action. No legal action to recover Plan benefits or to enforce or clarify rights under the Plan under section 502
or section 510 of ERISA or under any other provision of law, whether or not statutory, may be brought by any claimant on any matter
pertaining to this Plan unless the legal action is commenced in the proper forum before the earlier of:

 

(i) thirty (30) months
after the claimant knew or reasonably should have known of the principal facts on which the claim is based, or

 

(ii) six (6) months
after the claimant has exhausted the claim and review procedure.

 

(i) Knowledge of
Facts by Participant Imputed to Beneficiary. Knowledge of all facts that a Participant knew or reasonably should have known
shall be imputed to every claimant who is or claims to be a beneficiary of the Participant or otherwise claims to derive an entitlement
by reference to the Participant for the purpose of applying the previously specified periods.

 

Section 9.4 Participant's
Address. Each Participant shall keep the Company informed of his or her current address and the current address of his
or her beneficiary. The Company shall not be obligated to search for any person.

 

Section 9.5 Conflict
of Interest. If any individual to whom authority has been delegated or redelegated hereunder shall also be a Participant
in this Plan, such Participant shall have no authority with respect to any matter specifically affecting such Participant's individual
interest hereunder or the interest of a person superior to him or her in the Company (as distinguished from the interests of all
Participants and their Beneficiaries or a broad class of Participants and Beneficiaries), all such authority being reserved exclusively
to other individuals as the case may be, to the exclusion of such Participant, and such Participant shall act only in such Participant's
individual capacity in connection with any such matter.

 

Section 9.6 Service
of Process. In the absence of any designation to the contrary by the Company, the Chairman of the Board of Directors of
the Company is designated as the appropriate and exclusive agent for the receipt of service of process directed to the Plan in
any legal proceeding, including arbitration, involving the Plan.

 

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Section 9.7 Errors
in Computations. The Company shall not be liable or responsible for any error in the computation of any Deferred Compensation
Account or the determination of any benefit payable to or with respect to any Participant resulting from any misstatement of fact
made by the Participant or by or on behalf of any survivor to whom such benefit shall be payable, directly or indirectly, to the
Company and used in determining the benefit. The Company shall not be obligated or required to increase the benefit payable to
or with respect to such Participant which, on discovery of the misstatement, is found to be understated as a result of such misstatement
of the Participant. However, the benefit of any Participant which is overstated by reason of any such misstatement or any other
reason shall be reduced to the amount appropriate in view of the truth (and to recover any prior overpayment).

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

Section 10.1 No
Employment Rights. Neither the Plan nor any action taken under the Plan shall be construed as providing any Participant
any right to be retained in the service or employ of the Company.

 

Section 10.2 Participants
Should Consult Advisors. Neither the Company, nor any of its directors, officers, employees or agents makes any representation
or warranty with respect to the foreign, federal, state or other tax, financial, estate planning, or the securities or other legal
implications of participation in the Plan. Participants should consult with their own tax, financial and legal advisors with respect
to their participation in the Plan.

 

Section 10.3 Unfunded
and Unsecured. The Plan shall at all times be considered entirely unfunded both for tax purposes and for purposes of Title
I of the Employee Retirement Income Security Act of 1974, as amended, and no provision shall at any time be made with respect to
segregating assets of the Company for payment of any amounts under the Plan. Any funds invested under the Plan shall continue for
all purposes to be part of the general assets of the Company and available to general creditors in the event of a bankruptcy (involvement
in a pending proceeding under the Federal Bankruptcy Code) or insolvency (inability to pay debts as they mature) of the Company.
The Company shall promptly notify the Trustee and the applicable Participants of such bankruptcy or insolvency. No Participant
or any other person shall have any interests in any particular assets of the Company by reason of the right to receive a benefit
under the Plan and to the extent the Participant or any other person acquires a right to receive benefits under the Plan, such
right shall be no greater than the right of any general unsecured creditor. The Plan constitutes a mere promise by the Company
for the payment of benefits payable under the Plan to the Participants in the future. Nothing contained in the Plan shall constitute
a guaranty by the Company or any other person or entity that any funds in any trust or the assets of the Company will be sufficient
to pay any benefit under the Plan. Furthermore, no Participant shall have any right to a benefit under the Plan except in accordance
with the terms of the Plan.

 

Section 10.4 Plan
Provisions. Except when otherwise required by the context, any singular terminology shall include the plural.

 

Section 10.5 Severability.
If a provision of the Plan shall be held to be illegal or invalid, the illegality or invalidity shall not affect the remaining
parts of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

Section 10.6 Applicable
Law. To the extent not preempted by the laws of the United States, the laws of the State of Delaware shall apply with respect
to the Plan.

 

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Section 10.7 The
Trust. To fulfill the obligations of the Company with respect to a Participant and any Beneficiary of the Participant under
the Plan, a Trust may be established by a trust agreement with a third party, the Trustee, to which cash or other property may
be contributed by the Company to provide for the benefit payments under the Plan. The Trustee for any such Trust shall have the
duty to hold such property and to invest the Trust assets and funds in accordance with the terms and conditions of a Trust agreement
entered into by and between the Company and the Trustee. All rights associated with the assets of the Trust, if any, shall be exercised
by the Trustee of the Trust or the person designated by such Trustee, and shall in no event be exercisable by or rest with a Participant
or the Beneficiary of the Participant. Any such Trust shall provide that in the event of the insolvency of the Company, the Trustee
shall hold the assets of the Trust for the benefit of the general creditors of the Company.

 

ARTICLE XI

AMENDMENT OF THE PLAN

 

Section 11.1 Amendment
of the Plan. The Board of Directors reserves the power to alter, amend or wholly revise the Plan at any time and from time
to time and the interest of each Participant is subject to the powers so reserved; provided, however, that no amendment shall be
effective to the extent that it would have a materially adverse impact on a Participant's reasonably expected economic benefit
under the Plan.

 

Section 11.2 Procedure
for Amendment. An amendment shall be authorized by the Board of Directors of the Company and shall be stated in an instrument
in writing signed in the name of the Company by a person or persons authorized by the Board of Directors. After the instrument
has been so executed, the Plan shall be deemed to have been amended in the manner therein set forth, and all parties interested
herein shall be bound thereby. No amendment to the Plan may reduce the Vested benefit payable under the Plan as determined prior
to the effective date of such amendment without the written consent of the Participant.

 

ARTICLE XII

TERMINATION OF PLAN

 

Section 12.1 Termination
of the Plan. Anything in this Plan to the contrary notwithstanding, the Plan shall permit an acceleration of the time and
form of a payment of the benefits payable under the Plan in accordance with one of the events described herein.

 

(a) In the event of
a complete liquidation and dissolution of the Company, the Company shall terminate the Plan within twelve (12) months of the liquidation
and dissolution of the Company, or with the approval of a bankruptcy court, and the value of the benefits payable under the Plan
to the Participants shall be determined as of that date and shall be distributed to the Participants or their Beneficiaries; provided,
however, that the benefits payable under the Plan are included in the gross income of the Participants or their Beneficiaries in
the latest of: (i) the calendar year in which the Plan termination occurs; (ii) the calendar year in which the amount is no longer
subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.

 

    	18

    	 

    

 

(b) The Company may,
at its sole and absolute discretion, determine to terminate the Plan, provided that: (i) the termination does not occur proximate
to a downturn in the financial health of the Company, (ii) all arrangements sponsored by the Company that would be aggregated with
the Plan pursuant to section 1.409A-1(c) of the Final Treasury Regulations or the corresponding provision in future guidance issued
by the Department of the Treasury if the same Participant participated in all of the arrangements are terminated; (iii) no payments
other than the payments that would be payable under the terms of the arrangements if the termination had not occurred are made
within twelve (12) months of the termination of the arrangements; (iv) all payments are made within twenty-four (24) months of
the termination of the arrangements; and (v) the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under section 1.409A-1(c) or the corresponding provision in future guidance issued by the Department of the Treasury
if the same Participant participated in both arrangements, at any time within three (3) years following the date of termination
of the arrangement.

 

(c) An acceleration
of the time of the payment of the value of the benefit payable under the Plan to the Participant shall also be allowed at any time
the Plan fails to meet the requirements of section 409A and the regulations issued thereunder as permitted under the final regulations
issued by the Department of the Treasury and the Internal Revenue Service. However, the payment made based upon the acceleration
for the failure to meet the requirements of section 409A and the regulations issued thereunder may not exceed the amount required
to be included in income as a result of the failure to comply with the requirements of section 409A and the regulations issued
thereunder.

 

(d) This Section 12.1
shall be construed and administered in a manner consistent with sections 409A of the Code and section 1.409A-3(j)(4)(ix) of the
Final Treasury Regulations or the corresponding provision in future guidance issued by the Department of the Treasury.

 

Section 12.2 Procedure
for Amendment to Terminate the Plan. An amendment to terminate the Plan shall be authorized by the Board of Directors of
the Company and shall be stated in an instrument in writing signed in the name of the Company by a person or persons authorized
by the Board of Directors. After the instrument has been so executed, the Plan shall be deemed to have been amended in the manner
therein set forth, and all parties interested herein shall be bound thereby.

 

Dated as of this 1st day of October, 2011.

 

	 	 	ENERPULSE, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

    	19

    	 

    

 

EXHIBIT A

COMPANY DEFERRED
COMPENSATION PLAN PARTICIPANTS

 

Name of Plan Participants

 

	 	1.	Louis S. Camilli; President
	 	 	Maximum 2011 Deferred Compensation:
	 	 	$42,307.76
	 	 	 
	 	2.	Charles Stewart; After-Market Sales
	 	 	Maximum 2011 Deferred Compensation:
	 	 	$45,538.46
	 	 	 
	 	3.	David L. Matheson; Executive Vice-President
	 	 	Sales / Marketing; Maximum 2011
	 	 	Deferred Compensation:
	 	 	$63,461.43

  

    	20

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