Document:

ex10_217.htm

Exhibit 10.2.17

RESTRICTED STOCK UNIT AGREEMENT

THIS RESTRICTED STOCK UNIT AGREEMENT is made and entered into as March 12, 2010 by and between MGIC Investment Corporation, a Wisconsin corporation (the “Company”), and Jeffrey H. Lane (the “Employee”).

INTRODUCTION

The Company is awarding Restricted Stock Units to the Employee under the MGIC Investment Corporation 2002 Stock Incentive Plan (the “Plan”) and this Agreement.

The parties mutually agree as follows:

1.             Award of RSUs. Subject to the terms and conditions set forth herein, the Company awards the Employee 100,000 Restricted Stock Units, which shall be the “RSUs” as such term is used in this Agreement.

2.             Restrictions.  RSUs may not be sold, transferred or otherwise alienated or hypothecated.  The Company’s Common Stock, $1.00 par value (the “Stock”), shall be delivered in settlement of the RSUs on a ratio of one share of Stock for each RSU, and such Stock may be sold, transferred and otherwise alienated or hypothecated except in the case of a Sale (as hereinafter defined) as specifically provided in Paragraph 4(b), upon the occurrence of the applicable Release Date determined as follows: the Release Date for 50,000 RSUs shall be March 1, 2011; the Release Date for 25,000 RSUs shall be September 1, 2011; and the Release Date for 25,000 RSUs shall be March 1, 2012.

	
  

	
3.

	
Intentionally Omitted.

4.             Transfer After Release Date; Securities Law Restrictions; Holding Period.

(a)           Except as otherwise provided in Paragraph 4(b) below, Stock issued upon the applicable Release Date with respect to RSUs granted hereunder shall be freely transferable by the Employee on the Release Date.

(b) The Employee agrees that, during the Holding Period, the Employee will not make a Sale of the Holding Period Shares. “Holding Period” means a period beginning on the Release Date and ending on the earlier of (i) the first anniversary of the Release Date and (ii) the first date on which the Employee is no longer subject to the reporting requirements of Section 16(a) of the Act (as such term is defined in the Annex). “Holding Period Shares” means a number of shares of Stock for which a Release Date shall occur that are released on such Release Date equal to the lesser of (1) 25% of the aggregate number of RSUs that are released on the Release Date and (2) 50% of the difference between (i) the aggregate number of RSUs that are released on the Release Date and (ii) the aggregate number of shares that are withheld to satisfy withholding tax requirements under Paragraph 10(b) of this Agreement. “Sale” means a transfer for value, except that, (i) the transfer to the Company of Holding Period Shares in payment of the exercise price of an option granted to the Employee by the Company shall not be a Sale if there is no Sale for the remainder of the Holding Period of a number of shares of Stock received upon exercise of such option that are not less than the number of Holding Period Shares so transferred in connection with such exercise, and (ii) an involuntary transfer, including Holding Period Shares converted in a merger, is not a Sale; it is understood that neither a pledge nor a gift, including to an entity in which the Employee has an interest (provided that in the case of such an entity, such entity does not make a Sale for the remainder of the Holding Period), is a transfer for value. At the option of the Company, an appropriate legend may be placed on certificates for Stock noting the requirements to hold such Stock imposed by this Paragraph 4(b). When such requirements terminate, the Employee shall be entitled to have the foregoing legend removed from such certificates.

  

 

  

 

	
  

	
(c)

	
Intentionally Omitted.

(d)           Except as otherwise provided in the parenthetical in clause (ii) of the definition of Sale, if a transfer that is not a Sale occurs, the Holding Period for the shares involved in such transfer shall terminate at the time of such transfer.

5.             Termination Without Cause Or For Good Reason. If the Employee’s employment with the Company or any of its subsidiaries is terminated by the Company without Cause (as defined below) or by the Employee with Good Reason (as defined below), a Release Date shall be deemed to have occurred for all RSUs for which a Release Date has not yet occurred and, except as otherwise provided in Paragraph 4 hereof, all Stock deliverable on settlement of the RSUs shall be freely transferable.

“Cause” for termination by Company of the Employee’s employment shall, for purposes of this Agreement, be limited to: (i) the engaging by the Employee in intentional conduct not taken in good faith which has caused demonstrable and serious financial injury to Company, as evidenced by a determination in a binding and final judgment, order or decree of a court or administrative agency of competent jurisdiction, in effect after exhaustion or lapse of all rights of appeal, in an action, suit or proceeding, whether civil, criminal, administrative or investigative; (ii) conviction of a felony (as evidenced by binding and final judgment, order or decree of a court of competent jurisdiction, in effect after exhaustion of all rights of appeal) which substantially impairs the Employee’s ability to perform his duties or responsibilities; and (iii) continuing willful and unreasonable refusal by the Employee to perform the Employee’s duties or responsibilities (unless significantly changed without the Employee’s consent).

“Good Reason” for termination by the Employee of his employment with the Company shall, for purposes of this Agreement, be limited to Employee’s resignation from the Company within thirty (30) days of the occurrence of any of the following events: (a) a reduction in Employee’s base salary below $700,000 per year; (b) a failure to issue, within ten (10) days after the applicable Release Date, any Stock to be issued hereunder; or (c) a required relocation of Employee’s primary place of employment by more than fifty (50) miles from the location in effect as of the date of this Agreement; provided, however, that item (b) shall constitute Good Reason only if Employee provides ten (10) days advance written notice to Company of his intention to resign for Good Reason and Company fails to issue such shares within ten (10) days following receipt of such notice.

  

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6.             Other Terminations.  If the Employee’s employment with the Company and all of its subsidiaries is terminated prior to March 1, 2012 on account of (i) his death or disability, (ii) termination by the Company and all subsidiaries thereof, with Cause or (iii)  termination by the Employee without Good Reason, then all RSUs shall be forfeited to the Company on the date of such termination unless the Management Development, Nominating and Governance Committee of the Company’s Board of Directors  (the “Management Development Committee”) or other Committee of such Board administering the Plan (the Management Development Committee or such other Committee is herein referred to as the “Committee”) determines, on such terms and conditions, if any, as the Committee may impose, that all or a portion of the Stock deliverable on settlement of RSUs shall be released to the Employee and the restrictions of Paragraph 2 applicable thereto shall terminate. Absence of the Employee on leave approved by a duly elected officer of the Company, other than the Employee, shall not be considered a termination of employment during the period of such leave.

The Release Date for the RSUs may occur on multiple dates, each of which is a Release Date for the number of RSUs determined as provided in Paragraph 2.  Hence, any forfeiture of RSUs applies only to the RSUs for which a Release Date had not yet occurred on the date of forfeiture.  The preceding sentence has been included in this Agreement for the purpose of avoiding any doubt that the result described in the preceding sentence would occur; therefore, such result will occur under prior agreements awarding restricted stock or RSUs to the Employee even though a comparable provision is not included in such agreements.

	
  

	
7.

	
Intentionally Omitted.

	
  

	
8.

	
Intentionally Omitted.

9.             Rights of RSUs.  RSUs represent only the right to receive as Stock on the terms provided herein.  Except to the extent forfeited as provided herein, on a Release Date, the applicable RSUs shall be settled by the issuance (or transfer from treasury) of shares of Stock and certificates for such Stock shall be delivered to the Employee.  The Employee with respect to RSUs shall have no rights as a holder of Stock, including the right to vote or to receive dividends, until certificates for such Stock are actually delivered in settlement of the RSUs.  Notwithstanding the preceding sentence, on the next Payroll Date (as defined below) after each Release Date, the Company shall make a payment in cash equal to the aggregate amount that would have been paid as dividends on the shares of Stock issued or transferred in settlement if such shares had been outstanding on each dividend record date on and after the date of this Agreement and prior to the date on which such Shares are issued (or transferred from treasury). “Payroll Date” means a date on which the Company or a subsidiary makes a bi-weekly payment of wages to the Employee.

  

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10.           Tax Withholding.  (a)  It shall be a condition of the obligation of the Company to deliver Stock in settlement of RSUs, and the Employee agrees, that the Employee shall pay to the Company upon its demand, such amount as may be requested by the Company for the purpose of satisfying its liability to withhold federal, state, or local income or other taxes incurred by reason of the award of the RSUs or the delivery of Stock in settlement of RSUs.

(b)           If the Employee does not satisfy the withholding obligations prior to the Tax Date (as defined below) by paying sufficient cash to the Company or transferring ownership of a sufficient number of other shares of Stock to the Company as provided in Paragraph 10(c), then the withholding tax requirements arising from the settlement of RSUs in Stock shall be satisfied through a withholding by the Company of shares of Stock that would otherwise be delivered to the Employee.  In such event, the Company shall withhold that number of shares of Stock that would otherwise be delivered in settlement of RSUs having a Fair Market Value (as such term is defined in the Plan) on the day prior to the Tax Date equal to the amount required to be withheld as a result of the settlement of RSUs in Stock.  As used herein, “Tax Date” means the date on which the Employee must include in his gross income for federal income tax purposes the fair market value of the Stock delivered in settlement of the RSUs.

(c)           If the Employee desires to use cash or other shares of Stock to satisfy the withholding obligations set forth above, the Employee must:  (i) make an election to do so in writing on a form provided by the Company, (ii) deliver such election form to the Company by the deadline specified by the Company, and (iii) deliver to the company the required cash or other shares of Stock having a Fair Market Value on the Tax Date (as defined above) equal to the amount required to be withheld.

11.           Adjustments in Event of Change in Stock.  In the event of any change in the outstanding shares of Stock (“capital adjustment”) for any reason, including but not limited to, any stock splits, stock dividend, recapitalization, merger, consolidation, reorganization, combination or exchange of shares or other similar event which, in the judgment of the Committee, could distort the implementation of the award of RSUs or the realization of the objectives of such award, the Committee shall make such adjustments in the shares deliverable on settlement of RSUs, or in the terms, conditions or restrictions of this Agreement as the Committee deems equitable, except that (i) in the event of any stock split, reverse stock split, stock dividend, combination or reclassification of the Stock that occurs after the date of this Agreement (collectively, “future capital adjustment”), the number of RSUs shall be proportionally adjusted for any increase or decrease in the number of outstanding shares resulting from such future capital adjustment, any such adjustment rounded down to the next lower whole share, and (ii) if there is any other adjustment by the Committee applicable to RSUs held by persons other than the Employee, such adjustment shall also be made for the RSUs subject to this Agreement.

  

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12.           Change in Control.  If a “Change in Control of the Company” (as defined in the Annex attached hereto) occurs, notwithstanding anything herein, a Release Date shall be deemed to have occurred for all RSUs on the date of the Change in Control of the Company.  The Employee agrees that such Annex may be amended by the Company on one or more occasions without the consent or approval of the Employee if in the determination of the Committee such amendment is necessary or appropriate to conform the provisions of such Annex to Treasury Regulation 1.409A-1 et seq. or any position published by the IRS with respect to Section 409A of the Internal Revenue Code of 1986, as amended.  The right of the Company to make such an amendment does not depend on whether the RSUs are subject to such Section but will enable the Company to have uniform provisions governing a change of control among all agreements having such change of control provisions, including those under which compensation is subject to such Section.  Any such amendment will become effective upon notice to the Employee.  The Company will seek to give the Employee notice of an amendment with reasonable promptness after the Committee has approved the amendment.

13.           Powers of Company Not Affected; No Right to Continued Employment.

(a)           The existence of the RSUs shall not affect in any way the right or power of the Company or its stockholders to make or authorize any combination, subdivision or reclassification of the Stock or any reorganization, merger, consolidation, business combination, exchange of shares, or other change in the Company’s capital structure or its business, or any issue of bonds, debentures or stock having rights or preferences equal, superior or affecting any Stock to be issued in settlement of RSUs or the rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.  The determination of the Committee as to any such adjustment shall be conclusive and binding for all purposes of this Agreement.

(b)           Nothing herein contained shall confer upon the Employee any right to continue in the employment of the Company or any subsidiary or interfere with or limit in any way the right of the Company or any subsidiary to terminate the Employee’s employment at any time, subject, however, to the provisions of any agreement of employment between the Company or any subsidiary and the Employee.  The Employee acknowledges that a termination of his or her employment could occur at a time before which the restrictions referred to in Paragraph 2 above have lapsed, resulting in the forfeiture of the RSUs by the Employee, unless otherwise provided herein.  In such event, the Employee will not be able to realize the value of the Stock that underlies the RSUs nor will the Employee be entitled to any compensation on account of such value.

14.           Intentionally Omitted.

15.           Miscellaneous.  (a) This Agreement shall be governed and construed in accordance with the laws of the State of Wisconsin applicable to contracts made and to be performed therein between residents thereof.

(b)           The waiver by the Company of any provision of this Agreement shall not operate or be construed to be a subsequent waiver of the same provision or waiver of any other provision hereof.

  

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(c)           The RSUs shall be deemed to have been awarded pursuant to the Plan and the action of the Committee authorizing such awards, which Committee action was part of the action taken by the Company’s Board of Directors to approve the award of the RSUs; as a result, such awards are subject to the terms and conditions of the Plan. In the event of any conflict between the terms hereof and the provisions of the Plan, the provisions of the Plan shall prevail.  Any and all terms used herein, unless specifically defined herein shall have the meaning ascribed to them in the Plan.  A copy of the Plan is available on request of the Employee made in writing or by e-mail to the Company’s Secretary.

(d)           Any notice, filing or delivery hereunder or with respect to RSUs shall be given to the Employee at either his usual work location or his home address as indicated in the records of the Company, and shall be given to the Committee or the Company at 250 East Kilbourn Avenue, Milwaukee 53202, Attention: Chief Executive Officer.  All such notices shall be given by first class mail, postage pre-paid, or by personal delivery.

(e)           This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns and shall be binding upon and inure to the benefit of the Employee and the personal representative(s) and heirs of the Employee, except that the Employee may not transfer any interest in any RSUs.

(f)           As a condition to the grant of the RSUs, the Employee must execute an agreement not to compete in the form provided to the Employee by the Company.

(g)           Paragraph 15(g) of the Restricted Stock Unit Agreement dated as of January 28, 2010 by and between the Company and the Employee is incorporated herein as if set forth herein in its entirety.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Employee has hereunto affixed his hand and seal, all as of the day and year set forth above.

	  	  	
MGIC INVESTMENT CORPORATION

	  	  	  	  	  
	  	  	
By:

	
/s/ Ralph J. Gundrum

	  
	  	  	
Title:

	
Assistant Secretary

	  
	  	  	  	  	  
	
Sign Here:

	
ð

	  	
/s/ Jeffrey H. Lane

	
(SEAL)

	  	  	
Name:

	
Jeffrey H. Lane

	  

  

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ANNEX

Definition of “Change in Control of the Company” and Related Terms

1              Change in Control of the Company.  A “Change in Control of the Company” shall be deemed to have occurred if an event set forth in any one of the following paragraphs shall have occurred:

(i)          any Person (other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any of its subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock in the Company (“Excluded Persons”)) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after July 22, 1999, pursuant to express authorization by the Board of Directors of the Company (the “Board”) that refers to this exception) representing more than 50% of the total fair market value of the stock of the Company or representing 50% or more of the total voting power of the stock of the Company; or

(ii)     during any 12 consecutive month period, the following individuals cease for any reason to constitute a majority of the number of directors of the Company then serving:  (A) individuals who, on July 22, 1999, constituted the Board and (B) any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Act) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then still in office who either were directors on July 22, 1999, or whose initial appointment, election or nomination for election as a director which occurred after July 22, 1999 was approved by such vote of the directors then still in office at the time of such initial appointment, election or nomination who were themselves either directors on July 22, 1999 or initially appointed, elected or nominated by such majority vote as described above ad infinitum (collectively the “Continuing Directors”); provided, however, that individuals who are appointed to the Board pursuant to or in accordance with the terms of an agreement relating to a merger, consolidation, or share exchange involving the Company (or any direct or indirect subsidiary of the Company) shall not be Continuing Directors for purposes of this Agreement until after such individuals are first nominated for election by a vote of at least a majority of the then Continuing Directors and are thereafter elected as directors by the shareholders of the Company at a meeting of shareholders held following consummation of such merger, consolidation, or share exchange; and, provided further, that in the event the failure of any such persons appointed to the Board to be Continuing Directors results in a Change in Control of the Company, the subsequent qualification of such persons as Continuing Directors shall not alter the fact that a Change in Control of the Company occurred; or

  

 

  

 

(iii)        a merger, consolidation or share exchange of the Company with any other corporation is consummated or voting securities of the Company are issued in connection with a merger, consolidation or share exchange of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable stock exchange requirements, other than (A) a merger, consolidation or share exchange which would result in the voting securities of the Company entitled to vote generally in the election of directors outstanding immediately prior to such merger, consolidation or share exchange continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof entitled to vote generally in the election of directors of such entity or parent outstanding immediately after such merger, consolidation or share exchange, or (B) a merger, consolidation or share exchange effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than an Excluded Person) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after July 22, 1999, pursuant to express authorization by the Board that refers to this exception) representing at least 50% of the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors; or

(iv)        the sale or disposition by the Company of all or substantially all of the Company’s assets to a Person (in one transaction or a series of related transactions within any period of 12 consecutive months), other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (a) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock; (b) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (c) a Person that owns, directly or indirectly, 50% or more of the total value or voting power of all of the outstanding stock of the Company; or (d) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding voting stock of the Company.  It is understood that in no event shall a sale or disposition of assets be considered to be a sale of substantially all of the assets unless the assets sold or disposed of have a total gross fair market value of at least 40% of the total gross fair market value of all of the Company’s assets immediately prior to such sale or disposition.

2              Related Definitions.  For purposes of this Annex, the following terms, when capitalized, shall have the following meanings:

(i)  Act.  The term “Act” means the Securities Exchange Act of 1934, as amended.

(ii)  Affiliate and Associate.  The terms “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule l2b-2 of the General Rules and Regulations under the Act.

(iii)  Beneficial Owner.  A Person shall be deemed to be the “Beneficial Owner” of any securities:

  

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(a)            which such Person or any of such Person’s Affiliates or Associates has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (A) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase, or (B) securities issuable upon exercise of Rights issued pursuant to the terms of the Company’s Rights Agreement, dated as of July 22, 1999, between the Company and Wells Fargo Bank Minnesota, National Association (as successor Rights Agent), as amended from time to time (or any successor to such Rights Agreement), at any time before the issuance of such securities;

(b)           which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule l3d-3 of the General Rules and Regulations under the Act), including pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this Subsection 2(iii)(b) as a result of an agreement, arrangement or understanding to vote such security if the agreement, arrangement or understanding: (A) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations under the Act and (B) is not also then reportable on a Schedule l3D under the Act (or any comparable or successor report); or

(c)           which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in Subsection 2(iii)(b) above) or disposing of any voting securities of the Company.

(iv)   Person.  The term “Person” shall mean any individual, firm, partnership, corporation or other entity, including any successor (by merger or otherwise) of such entity, or a group of any of the foregoing acting in concert.

(v)   Stock.  The term “stock” shall have the meaning contemplated by Treasury Regulation 1.409A-1 et seq.

-3-Unassociated Document

     

    THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF
ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE
SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

    

    
      
        
          	 	
                  WARRANT TO PURCHASE
      STOCK

                
	 	 
	
                  Company:

                	
                  Energy
      and Power Solutions, Inc., a California corporation

                
	
                  Number
      of Shares:

                	
                  142,000

                
	
                  Class
      of Stock:

                	
                  Series
      B Preferred

                
	
                  Warrant
      Price:

                	
                  $1.72
      per share

                
	
                  Issue
      Date:

                	
                  December
      31, 2009

                
	
                  Expiration
      Date:

                	
                  The  earlier  of:  (i)  the  6th  anniversary  after  the  Issue  Date  or  (ii)
      two (2) years after the initial public offering of Company’s
      stock

                
	
                  Credit
      Facility:

                	
                  This
      Warrant is issued in connection with the Term Loan referenced in the Loan
      and Security Agreement between Company and Silicon Valley Bank dated
      December 31, 2009.

                

        

      

    

    

    THIS
WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK
(Silicon Valley Bank, together with any registered holder from time to time of
this Warrant or any holder of the shares issuable or issued upon exercise of
this Warrant, "Holder") is entitled to purchase the number of fully paid and
nonassessable shares of the class of securities (the "Shares") of the Company at
the Warrant Price, all as set forth above and as adjusted pursuant to Article 2
of this Warrant, subject to the provisions and upon the terms and conditions set
forth in this Warrant.

    

    ARTICLE
1. EXERCISE.

    

    1.1           Method of Exercise.
Holder may exercise this Warrant by delivering a duly executed Notice of
Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company. Unless Holder is exercising the conversion right set
forth in Article 1.2, Holder shall also deliver to the Company a check, wire
transfer (to an account designated by the Company), or other form of payment
acceptable to the Company for the aggregate Warrant Price for the Shares being
purchased.

    

    1.2           Conversion Right. In
lieu of exercising this Warrant as specified in Article 1.1, Holder may from
time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or
other securities otherwise issuable upon exercise of this Warrant minus the
aggregate Warrant Price of such Shares by (b) the fair market value of one
Share. The fair market value of the Shares shall be determined pursuant to
Article 1.3.

     

    SVB
Warrant Form April 2006

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

    1.3           Fair Market Value. If
the Company’s common stock is traded in a public market and the Shares are
common stock, the fair market value of each Share shall be the closing price of
a Share reported for the business day immediately before Holder delivers its
Notice of Exercise to the Company (or in the instance where the Warrant is
exercised immediately prior to the effectiveness of the Company’s initial public
offering, the “price to public” per share price specified in the final
prospectus relating to such offering). If the Company’s common stock is traded
in a public market and the Shares are preferred stock, the fair market value of
a Share shall be the closing price of a share of the Company’s common stock
reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company (or, in the instance where the Warrant is exercised
immediately prior to the effectiveness of the Company’s initial public offering,
the initial “price to public” per share price specified in the final prospectus
relating to such offering), in both cases, multiplied by the number of shares of
the Company’s common stock into which a Share is convertible. If the Company’s
common stock is not traded in a public market, the Board of Directors of the
Company shall determine fair market value in its reasonable good faith
judgment.

    

    1.4           Delivery of Certificate and
New Warrant. Promptly after Holder exercises or converts this Warrant
and, if applicable, the Company receives payment of the aggregate Warrant Price,
the Company shall deliver to Holder certificates for the Shares acquired and, if
this Warrant has not been fully exercised or converted and has not expired, a
new Warrant representing the Shares not so acquired.

    

    1.5           Replacement of
Warrants. On receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case
of loss, theft or destruction, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of mutilation on
surrender and cancellation of this Warrant, the Company shall execute and
deliver, in lieu of this Warrant, a new warrant of like tenor.

    

    1.6           Treatment of Warrant Upon
Acquisition of Company.

    

     1.6.1       "Acquisition".    
For the purpose of this Warrant, "Acquisition" means any sale, license, or other
disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the
Company's securities before the transaction beneficially own less than 50% of
the outstanding voting securities of the surviving entity after the
transaction.

    

    
       1.6.2       Treatment of Warrant at
Acquisition.

    

    

    A)           Upon
the written request of the Company, Holder agrees that, in the event of an
Acquisition that is not an asset sale and in which the sole consideration is
cash, either (a)
Holder shall exercise its conversion or purchase right under this Warrant and
such exercise will be deemed effective immediately prior to the consummation of
such Acquisition or (b) if Holder elects not to exercise the Warrant, this
Warrant will expire upon the consummation of such Acquisition. The Company shall
provide Holder with written notice of its request relating to the foregoing
(together with such reasonable information as Holder may request in connection
with such contemplated Acquisition  giving rise to such notice), which
is to be delivered to Holder not less than ten (10) days prior to the closing of
the proposed Acquisition.

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    B)           Upon
the written request of the Company, Holder agrees that, in the event of an
Acquisition that is an “arms length” sale of all or substantially all of the
Company’s assets (and only its assets) to a third party that is not an Affiliate
(as defined below) of the Company (a “True Asset Sale”), either (a) Holder shall
exercise its conversion or purchase right under this Warrant and such exercise
will be deemed effective immediately prior to the consummation of such
Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant
will continue until the Expiration Date if the Company continues as a going
concern following the closing of any such True Asset Sale. The Company shall
provide Holder with written notice of its request relating to the foregoing
(together with such reasonable information as Holder may request in connection
with such contemplated Acquisition giving rise to such notice), which is to be
delivered to Holder not less than ten (10) days prior to the closing of the
proposed Acquisition.

    

    C)           Upon
the closing of any Acquisition other than those particularly described in
subsections (A) and (B) above, the successor entity shall assume the obligations
of this Warrant, and this Warrant shall be exercisable for the same securities,
cash, and property as would be payable for the Shares issuable upon exercise of
the unexercised portion of this Warrant as if such Shares were outstanding on
the record date for the Acquisition and subsequent closing. The Warrant Price
and/or number of Shares shall be adjusted accordingly.

    

    As used
herein “Affiliate” shall mean
any person or entity that owns or controls directly or indirectly ten (10)
percent or more of the stock of Company, any person or entity that controls or
is controlled by or is under common control with such persons or entities, and
each of such person’s or entity’s officers, directors, joint venturers or
partners, as applicable.

    

    ARTICLE
2. ADJUSTMENTS TO THE
SHARES.

    

    2.1           Stock Dividends, Splits,
Etc. If the Company declares or pays a dividend on the Shares payable in
common stock, or other securities, then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without cost to Holder, the total number
and kind of securities to which Holder would have been entitled had Holder owned
the Shares of record as of the date the dividend occurred. If the Company
subdivides the Shares by reclassification or otherwise into a greater number of
shares or takes any other action which increase the amount of stock into which
the Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately
decreased. If the outstanding shares are combined or consolidated, by
reclassification or otherwise, into a lesser number of shares, the Warrant Price
shall be proportionately increased and the number of Shares shall be
proportionately decreased.

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    2.2           Reclassification, Exchange,
Combinations or Substitution. Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or class
of the securities issuable upon exercise or conversion of this Warrant, Holder
shall be entitled to receive, upon exercise or conversion of this Warrant, the
number and kind of securities and property that Holder would have received for
the Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution, or other event. Such an event shall include
any automatic conversion of the outstanding or issuable securities of the
Company of the same class or series as the Shares to common stock pursuant to
the terms of the Company's Articles or Certificate (as applicable) of
Incorporation upon the closing of a registered public offering of the Company's
common stock. The Company or its successor shall promptly issue to Holder an
amendment to this Warrant setting forth the number and kind of such new
securities or other property issuable upon exercise or conversion of this
Warrant as a result of such reclassification, exchange, substitution or other
event that results in a change of the number and/or class of securities issuable
upon exercise or conversion of this Warrant. The amendment to this Warrant shall
provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article 2 including, without
limitation, adjustments to the Warrant Price and to the number of securities or
property issuable upon exercise of the new Warrant. The provisions of this
Article 2.2 shall similarly apply to successive reclassifications, exchanges,
substitutions, or other events.

    

    2.3           Adjustments for Diluting
Issuances. The Warrant Price and the number of Shares issuable upon
exercise of this Warrant or, if the Shares are preferred stock, the number of
shares of common stock issuable upon conversion of the Shares, shall be subject
to adjustment, from time to time in the manner set forth in the Company’s
Articles or Certificate of Incorporation as if the Shares were issued and
outstanding on and as of the date of any such required adjustment. The
provisions set forth for the Shares in the Company’s Articles or Certificate (as
applicable) of Incorporation relating to the above in effect as of the Issue
Date may not be amended, modified or waived, without the prior written consent
of Holder unless such amendment, modification or waiver affects the rights
associated with the Shares in the same manner as such amendment, modification or
waiver affects the rights associated with all other shares of the same series
and class as the Shares granted to Holder.

    

    2.4           No Impairment. The
Company shall not, by amendment of its Articles or Certificate (as applicable)
of Incorporation or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue, or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed under this Warrant by the Company, but shall at all times
in good faith assist in carrying out of all the provisions of this Article 2 and
in taking all such action as may be necessary or appropriate to protect Holder's
rights under this Article against impairment.

    

    2.5           Fractional Shares. No
fractional Shares shall be issuable upon exercise or conversion of this Warrant
and the number of Shares to be issued shall be rounded down to the nearest whole
Share. If a fractional share interest arises upon any exercise or conversion of
the Warrant, the Company shall eliminate such fractional share interest by
paying Holder the amount computed by multiplying the fractional interest by the
fair market value of a full Share.

    

    2.6           Certificate as to
Adjustments. Upon each adjustment of the Warrant Price, the Company shall
promptly notify Holder in writing, and, at the Company’s expense, promptly
compute such adjustment, and furnish Holder with a certificate of its Chief
Financial Officer setting forth such adjustment and the facts upon which such
adjustment is based. The Company shall, upon written request,
furnish Holder a certificate setting forth the Warrant Price in effect upon
the date thereof and the series of adjustments leading to such Warrant
Price.

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
3. REPRESENTATIONS AND
COVENANTS OF THE COMPANY.

    

    3.1           Representations and
Warranties. The Company represents and warrants to Holder as
follows:

    

     (a)           The
initial Warrant Price referenced on the first page of this Warrant is not
greater than (i) the price per share at which the Shares were last issued in an
arms-length transaction in which at least $500,000 of the Shares were sold and
(ii) the fair market value of the Shares as of the date of this
Warrant.

    

     (b)           All
Shares which may be issued upon the exercise of the purchase right represented
by this Warrant, and all securities, if any, issuable upon conversion of the
Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable, and free of any liens and encumbrances except for restrictions on
transfer provided for herein or under applicable federal and state securities
laws.

    
 

     (c)           The
Company’s capitalization table attached hereto as Schedule 1 is true
and complete as of the Issue Date.

    

    
      3.2           Notice  of  Certain  Events.   If  the  Company  proposes  at  any  time
(a) to
declare any dividend or distribution upon any of its stock, whether in cash,
property, stock, or other securities and whether or not a regular cash dividend;
(b) to offer for sale any shares of the Company's capital stock (or other
securities convertible into such capital stock), other than (i) pursuant to the
Company's stock option or other compensatory plans, (ii) in connection with
commercial credit arrangements or equipment financings, or (iii) in connection
with strategic transactions for purposes other than capital raising; (c) to
effect any reclassification or recapitalization of any of its stock;
(d) to
merge or consolidate with or into any other corporation, or sell, lease,
license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up; or (e) offer holders of registration rights the opportunity
to participate in an underwritten public offering of the Company's securities
for cash, then, in connection with each such event, the Company shall give
Holder: (1) at least 10 days prior written notice of the date on which a record
will be taken for such dividend, distribution, or subscription rights (and
specifying the date on which the holders of common stock will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters
referred to in (a) and (b) above; (2) in the case of the matters referred to in
(c) and (d) above at least 10 days prior written notice of the date when the
same will take place (and specifying the date on which the holders of common
stock will be entitled to exchange their common stock for securities or other
property deliverable upon the occurrence of such event); and (3) in the case of
the matter referred to in (e) above, the same notice as is given to the holders
of such registration rights. Company will also provide information requested by
Holder reasonably necessary to enable Holder to comply with Holder’s accounting
or reporting requirements.

    

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      3.3           Registration  Under  Securities  Act  of  1933,  as  amended.    The
Company
agrees that the Shares or, if the Shares are convertible into common stock of
the Company, such common stock, shall have certain “piggyback” and Form S-3
registration rights pursuant to and as set forth in the Company’s Investor
Rights Agreement or similar agreement. The provisions set forth in
the Company’s Investors’ Right Agreement or similar agreement relating to the
above in effect as of the Issue Date may not be amended, modified or waived
without the prior written consent of Holder unless such amendment, modification
or waiver affects the rights associated with the Shares in the same manner as
such amendment, modification, or waiver affects the rights associated with all
other shares of the same series and class as the Shares granted to
Holder.

    

    

    3.4             No Shareholder
Rights. Except as provided in this Warrant, Holder will not have any
rights as a shareholder of the Company until the exercise of this
Warrant.

    

    ARTICLE
4. REPRESENTATIONS,
WARRANTIES OF HOLDER. Holder represents and warrants to the Company as
follows:

    

    4.1             Purchase for Own
Account. This Warrant and the securities to be acquired upon exercise of
this Warrant by Holder will be acquired for investment for Holder’s account, not
as a nominee or agent, and not with a view to the public resale or distribution
within the meaning of the Act. Holder also represents that Holder has not been
formed for the specific purpose of acquiring this Warrant or the
Shares.

    

    4.2             Disclosure of
Information. Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment
decision with respect to the acquisition of this Warrant and its underlying
securities. Holder further has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of
this Warrant and its underlying securities and to obtain additional information
(to the extent the Company possessed such information or could acquire it
without unreasonable effort or expense) necessary to verify any information
furnished to Holder or to which Holder has access.

    

    4.3             Investment
Experience. Holder understands that the purchase of this Warrant and its
underlying securities involves substantial risk. Holder has experience as an
investor in securities of companies in the development stage and acknowledges
that Holder can bear the economic risk of such Holder’s investment in this
Warrant and its underlying securities and has such knowledge and experience in
financial or business matters that Holder is capable of evaluating the merits
and risks of its investment in this Warrant and its underlying securities and/or
has a preexisting personal or business relationship with the Company and certain
of its officers, directors or controlling persons of a nature and duration that
enables Holder to be aware of the character, business acumen and financial
circumstances of such persons.

    

    4.4             Accredited Investor
Status. Holder is an “accredited investor” within the meaning of
Regulation D promulgated under the Act.

    

    4.5       
     The Act. Holder
understands that this Warrant and the Shares issuable upon exercise or
conversion hereof have not been registered under the Act in reliance upon a
specific exemption therefrom, which exemption depends upon, among other things,
the bona fide nature of Holder’s investment intent as expressed herein. Holder
understands that this Warrant and the Shares issued upon any exercise or
conversion hereof must be held indefinitely unless subsequently registered under
the Act and qualified under applicable state securities laws, or unless
exemption from such registration and qualification are otherwise
available.

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
5. MISCELLANEOUS.

    

    5.1           Term . This Warrant
is exercisable in whole or in part at any time and from time to time on or
before the Expiration Date.

    

    5.2           Legends. This Warrant
and the Shares (and the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

    

    THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION
OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM
REGISTRATION.

    

    5.3           Compliance with Securities
Laws on Transfer. This Warrant and the Shares issuable upon exercise of
this Warrant (and the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) may not be transferred or assigned in whole or
in part without compliance with applicable federal and state securities laws by
the transferor and the transferee (including, without limitation, the delivery
of investment representation letters and legal opinions reasonably satisfactory
to the Company, as reasonably requested by the Company). The Company shall not
require Silicon Valley Bank (“Bank”) to provide an opinion of counsel if the
transfer is to Bank’s parent company, SVB Financial Group (formerly Silicon
Valley Bancshares), or any other affiliate of Bank. Additionally, the Company
shall also not require an opinion of counsel if there is no material question as
to the availability of current information as referenced in Rule 144(c), Holder
represents that it has complied with Rule 144(d) and (e) in
reasonable detail, the selling broker represents that it has complied with Rule
144(f), and the Company is provided with a copy of Holder's notice of proposed
sale.

     

    5.4           Transfer Procedure.
After receipt by Bank of the executed Warrant, Bank will transfer all of this
Warrant to SVB Financial Group by execution of an Assignment substantially in
the form of Appendix 2. Subject to the provisions of Article 5.3 and upon
providing the Company with written notice, SVB Financial Group and any
subsequent Holder may transfer all or part of this Warrant or the Shares
issuable upon exercise of this Warrant (or the Shares issuable directly or
indirectly, upon conversion of the Shares, if any) to any transferee, provided,
however, in connection with any such transfer, SVB Financial Group or any
subsequent Holder will give the Company notice of the portion of the Warrant
being transferred with the name, address and taxpayer identification number of
the transferee and Holder will surrender this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable). The
Company may refuse to transfer this Warrant or the Shares to any person who
directly competes with the Company, unless, in either case, the stock of the
Company is publicly traded.

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    5.5           Notices . All notices
and other communications from the Company to Holder, or vice versa, shall be
deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address as may have been
furnished to the Company or Holder, as the case may (or on the first business
day after transmission by facsimile) be, in writing by the Company or such
Holder from time to time. Effective upon receipt of the fully executed Warrant
and the initial transfer described in Article 5.4 above, all notices to Holder
shall be addressed as follows until the Company receives notice of a change of
address in connection with a transfer or otherwise:

    

      SVB
Financial Group
  Attn:
Treasury Department

      3003
Tasman Drive, HA 200

      Santa
Clara, CA 95054 
  Telephone:
408-654-7400
 
Facsimile: 408-496-2405

    

    Notice to
the Company shall be addressed as follows until Holder receives notice of a
change in address:

    

      Energy
and Power Solutions, Inc. 

      Attn:
Peter Ludlum

      150
Paularino Avenue, Suite A120

      Costa
Mesa, CA 92626 

      Telephone:  714-957-1087

      Facsimile:  714-957-1093

    

    5.6           Waiver. This Warrant
and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

    

    5.7           Attorneys’ Fees. In
the event of any dispute between the parties concerning the terms and provisions
of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including
reasonable attorneys’ fees.

    

    5.8           Automatic Conversion upon
Expiration. In the event that, upon the Expiration Date, the fair market
value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than the Warrant
Price in effect on such date, then this Warrant shall automatically be deemed on
and as of such date to be converted pursuant to Section 1.2 above as to all
Shares (or such other securities) for which it shall not previously have been
exercised or converted, and the Company shall promptly deliver a certificate
representing the Shares (or such other securities) issued upon such conversion
to Holder.

    

    5.9           Counterparts. This
Warrant may be executed in counterparts, all of which together shall constitute
one and the same agreement.

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    5.10           Governing Law. This
Warrant shall be governed by and construed in accordance with the laws of
the State of California, without giving effect to its principles regarding
conflicts of law. 

     

    [Signature
page follows.]

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          “COMPANY”

                                        	 	
                                          Date:

                                        	December
      30, 2009
	 
      	 	 
      	 
      
	
                                          ENERGY
      AND POWER SOLUTIONS, INC.

                                        	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          By:

                                        	/s/
      Jay B. Zoellner	 	
                                          By:

                                        	/s/
      Peter Ludlum
	 
      	 
      	 	 
      	 
      
	
                                          Name:

                                        	Jay
      B. Zoellner  	 	
                                          Name:

                                        	Peter
      Ludlum
	 
      	
                                          (Print)

                                        	 	 
      	
                                          (Print)

                                        
	
                                          Title:

                                        	
                                          President

                                        	 	
                                          Title:

                                        	
                                          Chief Financial Officer

                                        
	 
      	 	 
      	 
      
	
                                          “HOLDER”

                                        	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                          SILICON
      VALLEY BANK

                                        	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          By:

                                        	/s/
      Kurt Miklinski    	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          Name:

                                        	Kurt
      Miklinski  	 	 
      	 
      
	 
      	
                                          (Print)

                                        	 	 
      	 
      
	
                                          Title:

                                        	Vice
      President  	 	 
      	 
      

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    
      SCHEDULE 1

       

      CAPITALIZATION TABLE

       

      [INTENTIONALLY OMITTED]

       

       

      SVB Warrant Form April
2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    APPENDIX 1

     

    NOTICE OF
EXERCISE

     

    1.           Holder  elects  to  purchase  ___________  shares  of  the  Common/Series
______
Preferred [strike one] Stock of __________________ pursuant to the terms of the
attached Warrant, and tenders payment of the purchase price of the shares in
full.

     

      
[or]

     

    1.           Holder
elects to convert the attached Warrant into Shares/cash [strike one] in the
manner specified in the Warrant. This conversion is exercised for _____________________
of the Shares covered by the Warrant.

     

    [Strike
paragraph that does not apply.]

     

    2.           Please
issue a certificate or certificates representing the shares in the name
specified below:

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	 
	 
      	
                              Holders
      Name

                            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
                              (Address)

                            	 

                    

                  

                

              

            

          

        

      

    

    

    3.           By
its execution below and for the benefit of the Company, Holder hereby restates
each of the representations and warranties in Article 4 of the Warrant as the
date hereof.

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              HOLDER:

                            
	 
      	 
      	 
      
	 
      	 
      
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              Name:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              Title:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              (Date):

                            	 
      

                    

                  

                

              

            

          

        

      

    

     

    SVB Warrant Form April 2006

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    APPENDIX 2

    

    ASSIGNMENT

    

    For value
received, Silicon Valley Bank hereby sells, assigns and transfers
unto

    

    
      
        	 
      	
                Name:

              	
                SVB
      Financial Group

              
	 
      	
                Address:

              	
                3003
      Tasman Drive (HA-200)

              
	 
      	 
      	
                Santa
      Clara, CA 95054

              
	 
      	 
      	 
      
	 
      	
                Tax
      ID:

              	
                91-1962278

              

      

    

    

    that
certain Warrant to Purchase Stock issued by Energy and Power Solutions,
Inc. (the
“Company”), on ____________, 2_____ (the “Warrant”) together with all
rights,
title and interest therein.

    

    
      
        
          
            
              
                
                  	 
      	
                          SILICON
      VALLEY BANK

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	
                          Name:

                        	 
      
	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

    

    
      
        
          	
                  Date:

                	 
      

        

      

    

     

    By its
execution below, and for the benefit of the Company, SVB Financial Group makes
each of the representations and warranties set forth in Article 4 of the Warrant
and agrees to all other provisions of the Warrant as of the date
hereof.

    

    
      
        
          
            
              
                
                  
                    	 
      	
                            SVB
      FINANCIAL GROUP

                          
	 
      	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	
                            Name:

                          	 
      
	 
      	
                            Title:

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