Document:

THE SECURITIES REPRESENTED BY THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
FILED UNDER THE SECURITIES ACT OF 1933 OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT, THE AVAILABILITY
OF WHICH EXEMPTION MUST BE ESTABLISHED TO THE REASONABLE SATISFACTION OF THE COMPANY.  THE TRANSFER OF THIS INSTRUMENT IS
RESTRICTED AS DESCRIBED HEREIN.

 

August 16th, 2013

 

ENERPULSE,
INC.

WARRANT

 

This Warrant is issued,
for value received, to FREEPOINT COMMERCE MARKETING LLC (the “Investor” or the “Holder”), by ENERPULSE,
INC., a Delaware corporation (the “Company”), in connection with the sale by the Company to the Holder of a senior
convertible note (the “Note”) pursuant to that certain Convertible Note Purchase Agreement dated August 16, 2013 (the
“Purchase Agreement”).

 

1.           Purchase
of Shares. Subject to the terms and conditions of this Warrant, the Holder of this Warrant is entitled, upon surrender of
this Warrant at the principal office of the Company (or at such other place as the Company may notify the Holder hereof in
writing), to purchase from the Company a number of shares of Common Stock equal to the quotient determined by dividing (i)
$262,500 by (ii) the per share public offering price of the Common Stock in an initial public offering (the
“Warrant Stock”). The number of shares of Warrant Stock are subject to adjustment as provided in Section 7
hereof.  

 

2.           Exercise Price.
The purchase price for each share of Warrant Stock purchased subject to this Warrant (the “Exercise Price”) shall be
1.2 times the per share public offering price of the Company’s Common Stock in an initial public offering. For purposes of
this Warrant, if the Company offers securities other than shares of Common Stock in an initial public offering, the “per
share public offering price” of the Common Stock shall be deemed to be the fair market value of one share of Common Stock
as of the date of such initial public offering, as determined by agreement of the Company and Holder or, if they cannot so agree,
by an investment banking firm or financial institution of nationally recognized standing chosen by Holder, the expenses of which
shall be paid one-half by the Company and one-half by Holder.

 

3.           Exercise Right.
This Warrant shall immediately vest. This Warrant shall become exercisable, in whole or in part, on such date as the Company completes
an initial public offering and at any time and from time to time thereafter until and including 11:59 p.m., Eastern Standard Time,
on July 1, 2016.

 

 

    	 

    	 

    

 

4.           Method of
Exercise; Expenses.

 

(a)           While this Warrant
remains outstanding and exercisable, the Holder may exercise, in whole or in part, and from time to time, the purchase rights evidenced
hereby. Such exercise will be effected by:

 

(i)           the surrender
of this Warrant, together with a duly executed copy of the form of subscription attached hereto, to the Secretary of the Company
at its principal offices; and

 

(ii)           subject to
Section 4(e) below, the payment to the Company in cash or check of an amount equal to the aggregate Exercise Price for the
number of shares of Warrant Stock being purchased.

 

(b)           The Company will
pay all expenses, taxes (other than transfer taxes) and other charges payable in connection with the preparation, issuance and
delivery of this Warrant and the Warrant Stock.

 

(c)           Each exercise
of this Warrant will be deemed to have been effected immediately prior to the close of business on the day on which this Warrant
will have been surrendered to the Company as provided in Section 4(a). At such time, the person or persons in whose name
or names any certificates for the shares of Warrant Stock will be issuable upon such exercise will be deemed to have become the
Holder or holders of record of the Warrant Stock represented by such certificates.

 

(d)           If this Warrant
is exercised in part only, the Company shall, if this Warrant is surrendered for cancellation, execute and deliver a new Warrant
of the same tenor evidencing the right of the Holder to purchase the balance of the Warrant Stock purchasable hereunder upon the
same terms and conditions as herein set forth.

 

(e)           Notwithstanding
any provisions herein to the contrary, if the fair market value of one share of Warrant Stock is greater than the Exercise Price
(at the date of calculation as set forth below), then in lieu of exercising this Warrant for cash, the Holder may elect to receive
shares of Warrant Stock equal to the value (as determined below) of this Warrant (or the portion hereof being canceled) by surrender
of this Warrant at the principal office of the Company together with the properly endorsed subscription notice and notice of such
election in which event the Company shall issue to the Holder a number of shares of Warrant Stock computed using the following
formula:

 

X = Y(A-B)

A

 

	Where	X =	the number of shares of Warrant Stock to be issued to the Holder;
	 	Y =	the number of shares of Warrant Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the number of shares of Warrant Stock purchasable in respect of the portion hereof being canceled (at the date of such calculation);

 

 

    	 

    	 

    

 

	 	A =	the fair market value of one share of the Warrant Stock (at the date of such calculation); and
	 	B =	the Exercise Price (as adjusted to the date of such calculation).

For purposes of the above calculation,
fair market value of one share of Warrant Stock shall be determined in good faith by a committee of independent individuals (who
may or may not be directors) unanimously approved by the Company’s Board of Directors; provided, however, that
if a public market for the common stock exists at the time of such exercise, the fair market value per share shall be the average
of the closing bid and asked prices of the common stock quoted in the Over-The-Counter Market Summary or the last reported sale
price of the common stock or the closing price quoted on the NASDAQ National Market System or on any exchange on which the common
stock is listed, whichever is applicable, as published in the Eastern Edition of The Wall Street Journal
for the five trading days prior to the date of determination of fair market value.

 

5.           Certificates
for Shares. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of
shares of Warrant Stock so purchased will be issued as soon as practicable thereafter, and in any event within ten (10) business
days of the delivery of the subscription notice.

 

6.           Valid Issuance
of Shares. The Company covenants that: (i) it will at all times keep reserved for issuance upon exercise hereof such number
of shares of Warrant Stock as will be issuable upon such exercise, and (ii) the shares of Warrant Stock, when issued pursuant to
the exercise of this Warrant, will be duly and validly issued, fully paid and non-assessable and free from all taxes, liens, charges
and preemptive or similar rights with respect to the issuance thereof.

 

7.           Adjustments.
The Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows:

 

(a)           Merger, Sale
of Assets, etc. If at any time while this Warrant or any portion hereof is outstanding and unexpired, there shall be (i) a
reorganization (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), (ii)
a merger or consolidation of the Company with or into another entity in which the Company is not the surviving entity or a merger
(including a reverse triangular merger) in which the Company is the surviving entity but the shares of the Company’s capital
stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form
of securities, cash, or otherwise, or (iii) a sale or transfer of all or substantially all of the Company’s properties and
assets to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall
be made so that Holder shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein
and upon payment of the Exercise Price then in effect, the number of shares of stock or other securities or property of the successor
entity resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon
exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or transfer if
this Warrant had been exercised immediately before such reorganization, consolidation, merger, sale or transfer, all subject to
further adjustment as provided in this Section 7. The foregoing provisions of this Section 7(a) shall similarly apply
to successive reorganizations, consolidations, mergers, sales and transfers and to the stock or securities of any other entity
that are at the time receivable upon the exercise of this Warrant. If the per share consideration payable to the holder hereof
for shares in connection with any such transaction is in a form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company’s Board of Directors. In all events, appropriate adjustment
(as determined in good faith by the Company’s Board of Directors) shall be made in the application of the provisions of this
Warrant with respect to the rights and interest of Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

 

 

    	 

    	 

    

(b)           Reclassification,
etc. If the Company, at any time while this Warrant or any portion hereof remains outstanding and unexpired, by reclassification
of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same
or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire
such number and kind of securities as would have been issuable as the result of such change with respect to the securities that
were subject to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further adjustment as provided in this Section 7.

 

(c)           Split, Subdivision
or Combination of Shares. If the Company at any time while this Warrant or any portion hereof remains outstanding and unexpired,
shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number
of securities of the same class, the Exercise Price for such securities shall be proportionately decreased, and the number of shares
of such securities for which this Warrant may be exercised shall be proportionately increased, in the case of a split or subdivision,
or the Exercise Price for such securities shall be proportionately increased and the number of shares of such securities for which
this Warrant may be exercised shall be proportionately decreased, in the case of a combination.

 

(d)           Adjustments
for Dividends in Stock or Other Securities or Property. If at any time while this Warrant or any portion hereof remains outstanding
and unexpired the holders of the securities as to which purchase rights under this Warrant exist at the time shall have received,
or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without
payment therefor, other or additional stock or other securities or property (other than cash) of the Company by way of dividend,
then and in each case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable
upon exercise of this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional
stock or other securities or property (other than cash) of the Company that such holder would hold on the date of such exercise
had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter,
during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other additional
stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions
of this Section 7.

 

    	 

    	 

    

 

(e)           Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 7, the Company at
its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to Holder a
certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall, upon the written request, at any time, of Holder, furnish or cause to be furnished to Holder a like
certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time would be received upon the exercise of the Warrant.

 

(f)           No Impairment.
The Company shall not, by amendment of its Certificate or through any 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 hereunder by the Company, but shall at all times in good faith assist in the carrying
out of all the provisions of this Section 7 and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of Holder against impairment.

 

8.           No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional shares will be issued upon the exercise of this Warrant,
but in lieu of such fractional shares the Company will make a cash payment therefor on the basis of the Exercise Price then in
effect.

 

9.           Piggyback
Registration. If, following the date on which the Warrant becomes exercisable, the Company at any time proposes to register
under the Securities Act of 1933, as amended (the “Securities Act”), any of its securities, whether or not for
sale for its own account, on a form and in a manner which would permit registration of the Warrant Stock held or purchasable by
Holder for sale to the public under the Securities Act, the Company shall give written notice of the proposed registration to Holder
not later than thirty (30) days prior to the filing thereof. Holder shall have the right to request that all or any part of its
Warrant Stock be included in such registration. Holder can make such a request by giving written notice to the Company within ten
(10) business days after the giving of such notice by the Company. Warrant Stock proposed to be registered and sold pursuant to
an underwritten offering for the account of Holder shall be sold on the terms and subject to the conditions of one or more underwriting
agreements negotiated between the Company and the prospective underwriters selected or approved by the Company. Holder shall have
the right to receive a copy of the form of underwriting agreement and shall have an opportunity to hold discussions with the lead
underwriter of the terms of such underwriting agreement. The Company may withdraw any registration statement at any time before
it becomes effective, or postpone or terminate the offering of securities, without obligation or liability to Holder. Except as
otherwise required by state securities or blue sky laws or the rules and regulations promulgated thereunder, all expenses, disbursements
and fees incurred by the Company and the Holder in connection with any registration under this Section 9 shall be borne
by the Company, except that the following expenses shall be borne by Holder if incurred by Holder: (i) the costs and expenses of
counsel to Holder to the extent Holder retains counsel; (ii) discounts, commissions, fees or similar compensation owing to underwriters,
selling brokers, dealer managers or other industry professionals, to the extent relating to the distribution or sale of Holder’s
Warrant Stock; and (iii) transfer taxes with respect to the securities sold by Holder. The Company shall indemnify each Holder,
each of its officers, directors and partners, legal counsel, and accountants and each person controlling Holder within the meaning
of Section 15 of the Securities Act, if Warrant Stock of Holder is included in the securities with respect to which registration,
qualification, or compliance has been effected pursuant to this Agreement, against all expenses, claims, losses, damages, and liabilities
(or actions, proceedings, or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus, offering circular, or other document (including any related registration
statement, notification, or the like) incident to any such registration, qualification, or compliance, or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, or any violation by the Company of the Securities Act or any rule or regulation thereunder applicable to the Company
and relating to action or inaction required by the Company in connection with any such registration, qualification, or compliance,
and shall reimburse Holder, each of its officers, directors, partners, legal counsel, and accountants and each person controlling
Holder for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any
such claim, loss, damage, liability, or action, provided that the Company will not be liable in any such case to the extent
that any such claim, loss, damage, liability, or expense arises out of or is based on any untrue statement or omission based upon
written information furnished to the Company by Holder and stated to be specifically for use therein.

 

    	 

    	 

    

 

10.           No Stockholder
Rights. Prior to exercise of this Warrant, the Holder will not be entitled to any rights of a stockholder with respect to the
shares of Warrant Stock, including (without limitation) the right to vote such shares, receive dividends or other distributions
thereon, or be notified of stockholder meetings.

 

11.           Transferability.
Subject to compliance with applicable federal and state securities laws, this Warrant and all rights hereunder are transferable
in whole or in part by the Holder of this Warrant. In the event of a partial transfer, the Company will issue to the new Holders
one or more appropriate new warrants.

 

12.           Loss, Theft
Destruction. The Company represents and warrants that upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant certificate or any stock certificate relating to the Warrant Stock,
and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender and cancellation
of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

13.            Limitation
of Liability. No provision hereof, in the absence of affirmative action by Holder to purchase shares of Warrant Stock, and
no enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability of Holder for the purchase
price of any Warrant Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors
of the Company.

 

    	 

    	 

    

 

14.           Successors
and Assigns. The terms and provisions of this Warrant will inure to the benefit of, and be binding upon, the Company and the
Holders hereof and their respective successors and permitted assigns.

 

15.           Amendments
and Waivers. Any waiver or amendment of any term of this Warrant must be in writing signed by the Holder and by the Company
and will be binding upon any subsequent holder of this Warrant.

 

16.           Notices.

 

           (a)           In addition
to any other notices contemplated hereunder, the Company shall provide Holder with written notice of a public offering of its securities
at least thirty (30) days’ prior to the date thereof.

 

           (b)           All notices
required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party
to be notified, (b) when sent by confirmed telex, electronic mail or facsimile if sent during normal business hours of the recipient,
if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the party to be notified at the address set forth on the books
of the Company or at such other address as such party may designate by ten (10) days advance written notice to the other party
hereto.

 

17.           Governing
Law. This Warrant will be governed by the laws of the State of Delaware (without giving effect to the conflict of law principles
thereof).

 

18.           Disputes.

 

(a)           Arbitration.
Except as otherwise provided in Section 18(b), any dispute, claim, question, or disagreement involving the interpretation
or enforcement of any provision of this Warrant or breach hereof or otherwise arising under or in connection with this Warrant
shall be submitted to binding arbitration in Wilmington, Delaware, in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (expedited procedures) then in effect. There shall be three (3) arbitrators, all of whom shall be neutral,
and at least one (1) of whom shall be an attorney licensed to practice law in the State of Delaware for at least ten (10) years.
The arbitrators shall have the authority to exclude evidence found to be irrelevant, redundant, or prejudicial beyond its probative
value, and are instructed to exercise that authority consistently with reasonably expediting the proceeding. The arbitrators may
order specific performance, preliminary and final injunctive relief, and other equitable relief. The award of the arbitrators may
be entered and enforced in any court of competent jurisdiction. In all cases where there is a dispute over the fair market value
of the Company or the value of any securities thereof or over the Exercise Price, the arbitration shall be conducted as a “baseball
style” arbitration where each party or side will submit one and only one proposed value to the arbitrators and the arbitrators
shall then be instructed and shall determine that the value is exactly equal to one of the proposed valuations.

 

    	 

    	 

    

 

(b)           Injunctive
Relief. The parties agree that damages cannot reasonably compensate the parties in the event of a violation of the covenants
and restrictions in this Warrant and that it may be difficult to ascertain the damages which would be suffered by the parties in
such cases. By reason thereof, the parties hereby agree injunctive relief is essential for the protection of the parties. The parties
hereby agree and consent that, in the event of any such actual or threatened breach or violation, any party may obtain injunctive
relief in order to prevent the potential or continuing violation of the terms of this Warrant from any court of competent jurisdiction
located in the State of Connecticut or the State of Arizona; provided, however, that any determination of fair market
value of the Company or the value of any securities thereof shall be made by binding arbitration in accordance with the provisions
of Section 18(a), and such arbitration may proceed concurrently with any action for injunctive relief. Any such injunction
shall be available upon the posting of a bond in the amount of Five Thousand Dollars ($5,000), and the parties hereby consent to
the issuance of any such injunction upon the posting of such bond. The award of permanent or temporary injunctive relief shall
in no way limit any other remedies to which a party may be entitled as a result of any such breach.

 

(c)           Waiver of Jury
Trial. EACH PARTY HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH
RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS WARRANT, ANY OTHER AGREEMENT CONTEMPLATED HEREBY OR THEREBY OR THE VALIDITY,
PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF.

 

(d)           Attorneys’
Fees. The arbitrators may award to the substantially prevailing party in their discretion attorneys’ fees and all other
fees, costs, and expenses of enforcing any right of such substantially prevailing party under or with respect to this Warrant,
including, without limitation, such reasonable fees and expenses of attorneys and accountants.

 

 

 

 

 

 

 

 

 

[SIGNATURES ON FOLLOWING PAGE]

    	 

    	 

    

 

		 
	 	COMPANY:
	 	 
	 	Enerpulse,
Inc. 

	 	 
	 	 
	 	By: ___________________
	 	Name: ________________
	 	Its: ___________________
	 	 
	 	 
	 	HOLDER:
	 	 
	 	Freepoint
Commerce Marketing LLC 

	 	 
	 	 
	 	By: ___________________
	 	Name: ________________
	 	Its: ___________________

 

 

 

 

    	 

    	 

    

SUBSCRIPTION

 

Enerpulse, Inc.

Attention: Corporate Secretary

 

The undersigned, the
Holder of the attached Warrant, hereby irrevocably elects to purchase, pursuant to the provisions of the attached Warrant, _______
shares of Common Stock of Enerpulse, Inc., a Delaware corporation (or such other securities issuable hereunder).

 

Payment of the exercise price per share
required under such Warrant accompanies this Subscription.

 

	 	WARRANT HOLDER:
	 	 	 
	 	____________________________
	 	 	 
	 	 	 
	Date:__________	By:	____________________________
	 		Name:
	 		Title:MARKETING AGREEMENT

 

THIS
MARKETING AGREEMENT (the "Agreement") is made effective this 16th day of August 2013 (the "Effective
Date"), by and between Freepoint Commerce Marketing LLC ("FREEPOINT") and Enerpulse, Inc. ("ENERPULSE")
(ENERPULSE and FREEPOINT being sometimes referred to in the singular as "Party" and collectively as "Parties").

 

RECITALS

 

WHEREAS,
FREEPOINT and ENERPULSE have entered into the Convertible Note Purchase Agreement and the Senior Subordinated Convertible Promissory
Note, and the Enerpulse, Inc. Warrant dated, 16th , August 2013 (collectively the "Note Agreement");

 

WHEREAS, in consideration of FREEPOINT entering into
the Note Agreement, ENERPULSE wishes to grant FREEPOINT the sole and exclusive right to market the Products in the Territory;

 

THEREFORE,
in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereby agree as follows:  

 

AGREEMENT

 

1. For purposes of this Agreement,
the terms listed below shall have the meaning ascribed to them in this Section. 

 

"Affiliates" when used
with respect to any Person shall mean any Person which, directly or indirectly, controls or is controlled by or is under common
control with another Person. For purposes of this definition, "control" (including the correlative meanings of the terms
"controlled by" and "under common control with"), with respect to any Person, shall mean possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of another Person, whether through
the ownership of voting securities or by contract or otherwise.

 

“Bankrupt” means that
a Party: (i) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (ii) becomes insolvent or is unable
to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (iii) makes a general
assignment, arrangement or composition with or for the benefit of its creditors; (iv) institutes or has instituted against it a
proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar
law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation; (v) has a resolution passed
for its winding-up, official management or liquidation, other than pursuant to a consolidation, amalgamation or merger; (vi) seeks
or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or
other similar official for all or substantially all of its assets; (vii) has a secured party take possession of all or substantially
all of its assets, or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all of its assets; (viii) files an answer or other pleading admitting or failing to contest the allegations
of a petition filed against it in any proceeding of the foregoing nature; (ix) causes or is subject to any event with respect to
it which, under applicable law, has an analogous effect to any of the events specified in clauses (i) to (viii) (inclusive); or
(x) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

 

    	 

    	 

    

 

"Confidential Information"
shall mean information relating to the business, prospective business, technical processes, finances, price lists or lists of customers
and suppliers of a Party which is provided to the other Party in connection with this Agreement and is designated as "confidential"
or "proprietary" by such Party. Notwithstanding the above, "Confidential Information" shall not include information
which (i) was known to the Party receiving the information prior to the date of this Agreement, (ii) has been generally
known to others in the trade or business of the Parties, (iii) has been part of public knowledge or the literature otherwise
than as a result of any breach of confidence by the Party receiving the information, (iv) has become available to the Party
receiving the information from a third party not representing either of the Parties, or (v) has been independently acquired
by the Party receiving the information as a result of work carried out by an employee of such Party to whom no disclosure of such
information shall have been made.

 

"ENERPULSE" shall mean, for purpose of this
Agreement, ENERPULSE and any Affiliate or joint venture in which ENERPULSE is a participant.

 

"Freepoint Purchase Price" shall mean the amount,
per unit, paid to ENERPULSE for the Products. For purposes of this Agreement, the Purchase Price shall be the “Distributor
Price” contained in Enerpulse’s Distributor Price List attached herein as Exhibit ‘A’.

 

"Freepoint Sale Price"
shall mean the price at which FREEPOINT sells the Products to third parties. The Manufacturer’s Suggested Retail Price (“MSRP)”
shall be specified in Enerpulse’s Distributor Price List attached herein as Exhibit ‘A’. For the avoidance of
doubt, the Parties acknowledge that the MSRP is a suggested price provided by ENERPULSE and FREEPOINT shall be entitled to establish
its own Freepoint Sale Price.

 

"Person" shall mean and
includes natural persons, corporations, limited liability companies, limited partnerships, general partnerships, joint stock companies,
joint ventures, associations, companies, trusts, lenders, trust companies, -land trusts, business trusts, or other organizations,
irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.

 

"Products" shall
mean Enerpulse PCI Plugs designed for Natural Gas fueled internal combustion engines.

 

"Territory" shall mean the installed base of
natural gas fueled internal combustion engines in all countries of North America.

 

		2.	EXCLUSIVE MARKETING RIGHT

 

2.1           ENERPULSE
hereby grants FREEPOINT the sole and exclusive right to market, for the purpose of sale, the Products in the Territory and Freepoint
is granted any appurtenant rights that would be necessary for Freepoint to fully exercise the exclusive right of sale. Such appurtenant
rights shall include, by way of example, and not be limited to, the right to import or export Products into or out of Mexico, Canada,
or the United States.

 

    	 

    	 

    

 

2.2          The
Parties acknowledge and agree that FREEPOINT shall have the right to, in its sole discretion, hire such employees, engage such
consultants and appoint such agents as it deems appropriate to carry out the rights granted hereunder.

 

2.3           The Parties agree that,
beginning in Calendar Year 2015, ENERPULSE and FREEPOINT will establish reasonable minimum performance threshholds for the sale
of Product by Freepoint in Territory required to maintain its Exclusive Marketing Right. FREEPOINT and ENERPULSE shall meet to
discuss such reasonable thresholds no later than 30 days prior to the beginning of the first day of 2015.

 

		3.	DUTIES OF FREEPOINT

 

3.1          Throughout
the Term, FREEPOINT shall:

 

3.1.1           Promote
and sell the Products throughout the Territory and deliver Products to third party purchasers at the Freepoint Sale Price;

 

3.1.2           Provide
commercial and service infrastructure;

 

3.1.3           Develop
and implement a comprehensive marketing strategy for the sale of Products;

 

3.1.4           Pay
ENERPULSE for any Products purchased during any calendar month during the Term in accordance with the relevant invoice.

  

3.3          FREEPOINT
shall not, and shall ensure that its officers, employees and agents do not, make any representation or give any warranty in
relation to the Products other than those which are contained in ENERPULSE's current printed literature or packaging or which
have been specifically previously authorized in writing by ENERPULSE.

 

		4.	DUTIES OF ENERPULSE

 

4.1          Throughout
the Term, ENERPULSE shall:

 

4.1.1           Manufacture
and supply FREEPOINT with Products according to FREEPOINT's demand schedule at the Freepoint Purchase Price;

 

4.1.2           Train
FREEPOINT sale engineers, as necessary, in proper usage and specifications associated with the Products;

 

4.1.3           Provide
FREEPOINT with ongoing technical and commercial assistance with respect to the Products, on an "as needed" basis;

 

4.1.4           Provide
FREEPOINT with updated test results and related technical papers as they are received or completed.         

 

4.1.5           Provide
FREEPOINT with such literature, catalogs, and other information as may be necessary to market and sell the Products, at
a cost agreed to by the parties;

 

    	 

    	 

    

 

4.1.6           Obtain
and maintain all licenses, permits and authorizations as may be required from time to time in connection with the supply
of the Products to the Territory;

 

4.1.7           Take
all reasonable steps to transition any existing customer discussions or contacts to FREEPOINT;

 

4.1.8           List
FREEPOINT as an additional insured party on its general liability insurance policies.

 

			4.2           ENERPULSE shall invoice FREEPOINT
for any Products purchased by FREEPOINT in accordance with its normal operating procedure. The amount of such invoice shall be
equal to the Freepoint Purchase Price multiplied by the number of Product units delivered to FREEPOINT during such month. Payment
shall be made to ENERPULSE by FREEPOINT within 30 days of invoice date.

 

		5.	BRANDING

 

5.1           FREEPOINT
is authorized to identify itself as the exclusive marketer of Products in the Territory by nameplate at its office and/or in its
letter subject to such indication having been previously approved in writing by ENERPULSE (such approval not to be unreasonably
withheld or delayed) and provided that such indication shall cease on the expiration or earlier termination of the Agreement (for
any cause);

 

5.2           FREEPOINT
shall be entitled to make use of any trademarks, whether registered or arising under common law, associated with the Products or
ENERPULSE, for the purpose of marketing the Products.

 

		6.	REPRESENTATIONS, WARRANTIES, AND COVENANTS

 

6.1           For
purposes of this Agreement, the Parties represent and warrant to the other Party, as of the date hereof, and on a continuing
basis, that:

 

6.1.1           With
respect to ENERPULSE, it is a corporation duly organized and in good standing under the laws of the jurisdiction of its organization
and is authorized to do business in each jurisdiction in which performance of the Services and its obligations hereunder requires
such authorization. With respect to FREEPOINT, it is a limited liability company duly organized and in good standing under the
laws of the jurisdiction of its organization and is authorized to do business in each jurisdiction in which performance of its
obligations hereunder requires such authorization;

 

6.1.2           This
Agreement to which it is a party has been duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation;

 

6.1.3           It
has obtained from the relevant authorities all necessary permits, licenses, authorizations or registrations permitting it its performance
under this Agreement, and obligations required under this Agreement and has complied with all applicable laws, regulations, customs
and other formalities in respect of its performance hereunder; 

 

    	 

    	 

    

 

6.1.4           The
execution, delivery and performance of this Agreement does not violate any applicable law (or the its organizational
documents, or any other agreement to which it is a party or by which its property is bound and does not require any license
of any governmental or other regulatory body except for those already obtained and in force and effect;

 

6.2          For
purposes of this Agreement, ENERPULSE represents and warrants that it has all rights to any Intellectual Property associated with
the Products, and it is not aware of any third party claim for infringement or violation of any patent, trademark, or copyright.

 

6.3          For
purposes of this Agreement, ENERPULSE covenants that, as of the date hereof, and during the Term, that it has not entered into,
nor shall it enter into at any time during the Term, any other agreement that would authorize any other party, or grant any other
party the right, to market, sell, dispose of, or transact in, the Products in the Territory.

 

6.4          In
the event a potential transaction for Products would involve both ENERPULSE’s and FREEPOINT’s marketing “territory”,
the Parties represent and warrant that they will work together in a reasonable manner to ensure each Party receives the benefit
it would be entitled to from such transaction had both “territories” not been involved. In addition to the foregoing,
the Parties shall take reasonable steps to ensure a single entity faces the counterparty to such potential transaction.

 

		7.	INDEMNIFICATION AND
PRODUCT WARRANTY

 

7.1
         FREEPOINT and ENERPULSE each agree to indemnify, defend and hold harmless the other Party, and its directors, officers, employees,
agents and permitted assigns, from and against all claims, losses, liabilities, damages, judgments, awards, fines, penalties,
costs, fees and expenses (including reasonable attorneys’ fees and disbursements), whether arising out of a breach of
contract, tort, products liability, or any other legal theory (“Losses”) directly incurred in connection with or directly
arising out of:

 

7.1.1           Any
breach of representation or warranty or failure to perform any covenant or agreement in any Transaction Document by said
Party;

 

7.1.2           Claims
by third parties arising as a result of the indemnifying Party’s acts or omissions; and

 

7.1.3           Any
violation of applicable laws by the indemnifying Party.

 

			7.2         In
the event of any claim being brought against FREEPOINT that the use, sale, or possession of the Products in accordance with this
Agreement infringes the intellectual property rights, whether related to a patent, trade secret, copyright, or trademark, of a
third party, ENERPULSE shall indemnify FREEPOINT and will keep FREEPOINT indemnified against any damages, including legal costs,
that are awarded and to be paid to any such third party in respect of such claim.

 

    	 

    	 

    

 

			7.3           ENERPULSE shall be responsible
for any and all warranty claims made by any third party with respect to the Products. In the event any third party files or commences
any warranty action or proceeding against FREEPOINT, FREEPOINT shall immediately inform ENERPULSE of such claim or action, and
ENERPULSE shall be responsible for resolving such claim. FREEPOINT shall take any reasonable actions that may be necessary to aide
ENERPULSE in protecting its interest in the Products and in resolving such claims. In addition to the foregoing, ENERPULSE shall
indemnify FREEPOINT for any warranty claim or proceeding brought by any third party.

 

		8.	TERM AND TERMINATION

 

8.1           Term. Unless
terminated earlier pursuant to 8.2 below, this Agreement shall endure until such time as may be agreed by the Parties
in writing.

 

		8.2	Early Termination. Notwithstanding
the foregoing, either Party may terminate this Agreement upon the passage of two (2) calendar years from the Effective date hereof,
upon one hundred and eighty (180) days’ written notice to the other Party.

 

		9.	DEFAULT

 

9.1           Default.
Notwithstanding any other provision of this Agreement, an “Event of Default” shall be deemed to occur in respect of
this Agreement when:

 

9.1.1           A
Party fails to make payment when due under this Agreement within three Business Days of a written demand therefore (excluding any
payment that is the subject of a good faith dispute but only to the extent of such disputed amount).

 

9.1.2           Except
with respect to a failure to make payment as provided in Section 9.1.1 above, a Party fails to perform any material obligation
under this Agreement, which is not cured to the satisfaction of the other Party (in its sole discretion) within thirty Business
Days from the earlier of (i) the date that such Party receives notice that corrective action is needed and (ii) the date such Party
becomes aware of such failure.

 

9.1.3           A
Party breaches any representation, warranty made or repeated or deemed to have been made or repeated by the Party in any material
respect when made or repeated or deemed to have been made or repeated under this Agreement, or any warranty or representation proves
to have been incorrect or misleading in any material respect when made or repeated or deemed to have been made or repeated under
this Agreement; provided, however, that if such breach is curable, such breach is not cured to the reasonable satisfaction
of the other Party (in its sole discretion) within ten Business Days from the date that such Party receives notice that corrective
action is needed.

 

9.1.4           A
Party becomes or is Bankrupt.

 

9.1.5           Any
Person forecloses on or exercises its rights under any lien on any portion of the assets of ENERPULSE and, as a result, FREEPOINT
believes that its rights and privileges under this Agreement could be interfered with or adversely affected.

 

    	 

    	 

    

 

9.1.6           A
Party consolidates or amalgamates with, merges with or into, or transfers all or substantially all its assets to, another entity
and, at the time of such consolidation, amalgamation, merger or transfer, (i) the resulting, surviving or transferee entity fails
to assume all the obligations of such Party under this Agreement, either by operation of law or by an agreement satisfactory to
the other Party or otherwise, or (ii) in the reasonable opinion of the other Party, the creditworthiness of the successor, surviving
or transferee entity, taking into account any guaranty, is materially weaker than the predecessor entity immediately prior to the
consolidation, amalgamation, merger or transfer.

 

9.1.7           With
respect to ENERPULSE, a third party makes any claim that FREEPOINTS use, possession, or sale of the Products violated any intellectual
property rights of any third party.

 

9.2          Suspension
and Termination.

 

9.2.1           Notwithstanding
any other provision of this Agreement, upon the occurrence of an Event of Default with respect to a Party (the “Defaulting
Party”), the other Party (the “Performing Party”) shall be entitled to do either or both of the following: (i)
suspend its performance under this Agreement, including making payments under this Agreement (except for any undisputed sums due
under this Agreement) or (ii) terminate this Agreement upon notice to the Defaulting Party, effective upon the date specified in
such notice (which shall be no earlier than the date of receipt of such notice and shall be the "Termination Date").

 

9.2.2           The
Defaulting Party shall indemnify and hold harmless the Performing Party for all liabilities incurred as a result of the Event of
Default or in the exercise of any remedies under this Agreement.

 

9.2.3           Cooperation
after Termination Date. Notwithstanding an early termination of this Agreement by ENERPULSE due to a default under Section
9.1.1, 9.1.2, or 9.1.3 by FREEPOINT, ENERPULSE shall remain obligated under this Agreement to continue to assist FREEPOINT in respect
of liquidating any Products remaining in FREEPOINT's inventory in a timely manner.

 

9.2.4           Return
of Inventory. In the event of an early termination of this Agreement by FREEPOINT due to a default under Section 9.1.1, 9.1.2,
or 9.1.3 by ENERPULSE, ENERPULSE shall, at FREEPOINT's option, and in addition to any other remedies FREEPOINT may have under this
Agreement or applicable law, repurchase any remaining Products in FREEPOINT's inventory at the Freepoint
Sale Price.

 

			9.2.5           Limitation
on Damages. Excepting the limited indemnity obligation set out
in section 7.2 above, without prejudice to the express remedies set forth herein, the parties’ liability for damages is limited
to direct, actual damages only and neither party shall be liable for lost profits or other business interruption damages or special,
consequential, incidental, punitive, exemplary or indirect damages, in tort, contract or otherwise, of any kind, arising out of
or in any way connected with the performance, the suspension of performance, the failure to perform, or the termination of this
agreement; provided, however, that, this limitation shall not apply with respect to any third-party claim for which indemnification
is available under this agreement. each party acknowledges the duty to mitigate damages hereunder.

 

    	 

    	 

    

 

		10.	INDEPENDENT CONTRACTORS

 

10.1         With
respect of the subject matter of this Agreement, the Parties are and remain independent contractors. This Agreement shall not be
deemed to create a joint venture, partnership, association, or agency between the Parties. The Parties understand and agree that
this Agreement is not a contract of employment, or an offer to enter into a contract of employment. The Parties further agree that
FREEPOINT shall have sole control of the manner and means of exercising its rights hereunder. ENERPULSE shall not have the right
to require that FREEPOINT or its employees do anything that would jeopardize the relationship of independent contractor between
the Parties. FREEPOINT shall have the right to appoint and shall be solely responsible for its own workforce, who shall be its
own employees.

 

		11.	CHOICE OF LAW

 

11.1         this
Agreement and all matters arising in connection therewith, including validity and enforcement, shall be governed by, interpreted
and construed in accordance with the laws of the state of Delaware, without giving effect to its conflicts of laws principles that
would result in the application of a different law. Each Party hereby submits itself to the exclusive jurisdiction of any federal
court of competent jurisdiction situated in the state of Delaware or, if any federal court declines to exercise or does not have
jurisdiction, in any Delaware state court and to service of process by certified mail, delivered to the Party at its last designated
address.

 

11.2         Jurisdiction.
each party hereby irrevocably waives, to the fullest extent permitted
by applicable law, any objection to the jurisdiction of any such court or to the venue therein or any claim of inconvenient forum
of such court. 

 

11.3         Waiver
of Jury Trial. each party further waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by jury in respect of any proceeding relating to this agreement

 

		12.	CONFIDENTIALITY

 

12.1         During
the term of this Agreement and for a period of two (2) years following its termination (for whatever cause) or expiration,
each Party will keep confidential the terms and conditions of this Agreement (but may acknowledge the existence of the relationship
between the Parties) and all Confidential Information received from the other Party and will not use the same but, to the extent
necessary to implement the provisions of this Agreement, each Party may disclose the Confidential Information to such of its customers,
officers, or employees as may be reasonably necessary or desirable provided that before any such disclosures each Party shall make
such persons aware of its obligations of confidentiality under this Agreement and shall at all times use its best efforts to procure
compliance by such persons therewith.

 

		13.	FORCE
MAJEURE

 

13.1.           The
obligations of a Party under this Agreement shall be suspended during the period and to the extent that such Party is prevented
or hindered from complying therewith by any cause beyond its reasonable control including (insofar as beyond such control but without
prejudice to the generality of the foregoing expression) strikes, lock-outs, labor disputes, act of God, war, riot, civil commotion,
malicious damage, compliance with any law or governmental order, rule, regulation or direction, accident, breakdown of plant or
machinery, fire, flood or storm.

 

    	 

    	 

    

 

13.2          In
the event of either Party being so hindered or prevented such Party shall give notice of suspension as soon as reasonably practicable
to the other Party stating the date and extent of such suspension and the cause thereof and the omission to give such notice shall
forfeit the rights of such Party to claim such suspension. Any Party whose obligations have been suspended as aforesaid shall resume
the performance of such obligations as soon as reasonably practicable after the removal of the cause and shall so notify the other
Party. In the event that such cause continues for more than six (6) months, either Party may terminate this Agreement upon
giving to the other Party not less than sixty (60) days' notice.

 

		14.	ENTIRE AGREEMENT

 

14.1         This
Agreement constitutes the entire understanding between the Parties with respect to the subject matter of this Agreement and supersedes
all prior agreements, negotiations and discussions between the Parties relating thereto, with the exception of the Note Agreement
or any other agreement in furtherance thereof.

 

		15.	AMENDMENTS

 

 15.1         No
amendment or variation of this Agreement shall be effective unless in writing and signed by a duly authorized representative of
each of the Parties.

 

		16.	HEADINGS

 

16.1         Section
headings shall not form part of this Agreement for the purposes of its interpretation.

 

		17.	ASSIGNMENT

  

17.1         Neither
Party shall, without the prior written consent of the other Party, which shall not be unreasonably withheld or delayed, assign,
transfer, sub-contract, charge, delegate or deal in any other manner with this Agreement or its rights or duties hereunder or part
thereof, or purport to do any of the same, except, however, it is agreed that FREEPOINT may assign, in whole or in part, its rights
and obligations under this Agreement to an Affiliate without obtaining the consent of the Company. In the event that FREEPOINT
assigns any of its rights and interests to an Affiliate in accordance with this provision, it shall provide the Company with notice
of such assignment immediately upon such assignment

 

		18.	WAIVER

 

18.1         The
failure of a Party to exercise or enforce any rights under this Agreement shall not be deemed to be a waiver thereof nor operate
so as to bar the exercise or enforcement thereof at any time or times thereafter.

 

    	 

    	 

    

 

		19.	COUNTERPARTS

 

19.1         This
Agreement may be signed in two counterparts, both of which taken together shall constitute one and the same Agreement. Either Party
may enter into the Agreement by signing either such counterpart.

 

		20.	NOTICES

 

20.1         Any
notice given under this Agreement shall be in writing and shall be given by delivering the same by hand at, or by sending the same
by prepaid first class post (airmail if to an address outside the country of posting) or confirmed facsimile to the address of
the relevant Party set out in this Agreement or such other address as either Party may notify to the other from time to time. Notices
delivered in accordance with this provision shall be deemed delivered on the day delivered by hand or confirmed facsimile and three
(3) days after delivery by prepaid first-class post.

 

		21.	REMEDIES NOT EXCLUSIVE

 

21.1         No
remedy conferred by any of the provisions of this Agreement is intended to be exclusive of any other remedy and each and
every remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or
hereafter existing in law or in equity or by statute or otherwise.

 

		22.	SEVERABILITY

 

22.2         If
any court of competent jurisdiction finds any provision of this Agreement to be unenforceable or invalid, then such provision shall
be ineffective to the extent of the court's finding without affecting the enforceability or validity of the remaining provisions
of this Agreement.

 

[SIGNATURE PAGE TO FOLLOW]

 

    	 

    	 

    

 

WHEREFORE, the Parties have executed and delivered this Agreement
in two identical copies, each of which is deemed to be an original, effective as of the date first written above.

 

	 	ENERPULSE, INC.
	 	 
	 	By:	 
	 	 
	 	Name: Joseph E Gonnella
	 	 
	 	Title: Chief Executive Officer
	 	 
	 	FREEPOINT COMMERCE MARKETING LLC
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

    	 

    	 

    

  

Exhibit ‘A’

 

NATURAL
GAS FIXED IC ENGINE SEGMENT

DISTRIBUTOR
PRICE LIST

(Effective August 1, 2013)

  

	Plug Model	 	Distributor Price	 	 	MSRP	 	 	Engine Applications
	N-BE2CE	 	$	17.00	 	 	$	44.20	 	 	Cummins ,Cat, Clark
	N-BE1C	 	$	15.00	 	 	$	39.00	 	 	Cummins ,Cat, Clark
	N-BE2C	 	$	17.00	 	 	$	44.20	 	 	Clark
	N-AD1H	 	$	12.50	 	 	$	32.50	 	 	Several
	N-BE1H	 	$	17.00	 	 	$	44.20	 	 	Cummins ,Cat, Clark
	N-EF1H	 	$	12.50	 	 	$	32.50	 	 	Cummins ,Cat, Clark
	N-MH1H	 	$	62.50	 	 	$	162.50	 	 	Cat 3500 /3600
	N-PB1H	 	$	40.00	 	 	$	104.00	 	 	Cat 3300
	N-BE2H	 	$	19.00	 	 	$	49.35	 	 	Cat 3500, Waukesha
	N-BE2HE	 	$	25.00	 	 	$	58.50	 	 	Cummins , Clark, EMD
	N-RH1H	 	$	18.00	 	 	$	46.94	 	 	Waukesha, Clark w/o Pre-Combustion Chamber

 

Rev. 073113-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]