Document:

Exhibit 4.3

EMPLOYMENT AND NON-COMPETITION AGREEMENT

 

This Employment
Agreement (“Agreement”) dated June 10, 2003, effective as of an employment starting date to be decided between
the parties and that will occur not later than September 1, 2003 (“Effective Date”), by and between Can-Fite
Biopharma Ltd., an Israeli company with its principal offices in 10 Bareket Street, Petach Tikva, Israel, (the “Company”),
and Moti Farbstein (I.D. Number: 057682205), an individual whose address is 22 Degania Street, Ganei Tikva (the “Employee”).

 

WITNESSETH:

 

WHEREAS, the
Company desires to employ Employee as its Director of Clinical Operations . and Administrative Affairs (or any other title to be
agreed upon between the Company and the Employee), and Employee desires to be employed by the Company in such capacity, on the
terms and conditions set forth below:

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual promises and covenants herein contained, the parties hereto agree as follows:

 

1.                    DEFINITIONS.

 

1.1.        Capitalized
terms shall have the meanings ascribed to them in this Agreement.

 

2.                    EMPLOYMENT;
DUTIES.

 

2.1.        The
Company hereby employs Employee, and Employee hereby accepts employment, to serve in a position of Director of Clinical
Operations and Administrative Affairs (or any other title to be agreed upon between the Company and the Employee) on the
terms and conditions set forth below.

 

2.2.        Employee
shall have responsibility for performing such other services and duties as are normally incident to the position held by Employee
and are commensurate with Employee’s background, education and professional standing and as are requested, from time to time,
of Employee by the Company’s management.

 

2.3.        Unless
otherwise agreed by the Company, Employee shall perform his duties hereunder at the Company’s facilities in Israel, which
are currently located at Petach Tikva, Israel. Employee hereby acknowledges that the Company may change the location of its
facilities to a new location, and agrees that, subject to applicable law, such change, in and of itself, will not be deemed
to have adversely changed Employee’s terms of employment hereunder, provided that the distance between the Company’s present
and new facilities will not exceed 60 kilometers.

 

    	 

    	 

    

 

2.4.        Employee shall devote
his or her entire business time, attention and efforts to the performance of his or her duties and responsibilities under this
Agreement and the business and affairs of the Company. Employee shall not during the term of this Agreement be engaged (whether
or not during normal business hours) in any other business or professional activity whether or not such activity is pursued for
gain, profit or other pecuniary advantage.

 

2.5.        The
Employee shall be employed by the Company on a full time basis. The Employee’s employment with the Company is in accordance
with the standard Company policy regarding work days and organized holidays, which may be amended at any time by the management
of the Company, provided such policy does not violate any applicable laws. The Company’s policy, as of the date hereof,
is to operate five (5) days a week (Sunday to Thursday (inclusive)) and that all standard Jewish holidays shall be regarded as
organized holidays.

 

2.6.        With
regard to this Agreement and with regard to the Employee’s employment with the Company, no other agreement; or provision from any
other agreement; or custom, or customary practice which exists or which will come into existence in the future between the Company
and its employees, will be applicable to the employment relationship between the Company and the Employee.

 

3.                    TERM.

 

Employee’s
employment with the Company shall commence on the Effective Date and, subject to Section 7.2 below, shall be for an indefinite
period of time; provided, however, that termination of the employment of the Employee shall be upon sixty days (60) days prior
written notice to the other party. The aforementioned notwithstanding, termination by the Company during a 3 months period following
the Effective Date, termination by the company will be upon a ninety (90) prior written notice; and further provided that if the
Company terminates the agreement before the Effective Date, the Employee will be entitled to a 3 months salary and benefits. In
the event of termination of employment, the Employee, if requested by the Company, shall continue to render his services, and shall
be paid his regular compensation up to the date of termination. Notwithstanding the aforesaid, the employment may be terminated
for cause pursuant to Section 7.2 hereof in which case employment shall cease immediately.

 

4.                    COMPENSATION
AND BENEFITS

 

As compensation for the
performance of his or her duties on behalf of the Company, Employee shall be entitled to the compensation set forth in Schedule
A attached hereto. The “Salary” (as defined in Schedule A) and the other benefits payable to Employee hereunder
shall be reviewed on an annual basis, in accordance with the Company’s general practice.

 

The employee will in due course
receive options according to the Company’s stock option plan and subject to the approval of the Board of Directors.

 

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5.                    REPRESENTATIONS
AND WARRANTIES BY EMPLOYEE

 

Employee hereby represents and warrants to the Company
as follows:

 

5.1.        Neither
the execution and delivery of this Agreement nor the performance by Employee of his or her duties and other obligations hereunder
violate or will violate any statute, law, determination or award, or conflict with or constitute a default under (whether immediately,
upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which Employee
is a party or by which he or she is bound.

 

5.2.        Employee
has the full right, power and legal capacity to enter and deliver this Agreement and to perform his or her duties and other obligations
hereunder. This Agreement constitutes the legal, valid and binding obligation of Employee enforceable against him or her in accordance
with its terms. No approvals or consents of any persons or entities are required for Employee to execute and deliver this Agreement
or perform his or her duties and other obligations hereunder.

 

6.                    NONDISCLOSURE
AND COMPETITVE ACTIVITY

 

6.1.        The
terms of the undertaking attached hereto as Schedule B, which was signed by the Employee on June 22, 2003 shall
be incorporated herein and constitute an integral part of this Agreement for any purpose.

 

7.                    REMEDIES.

 

7.1.        If
Employee breaches any or all of the covenants set forth in Schedule B attached hereto, the Company will be entitled to
the following remedies:

 

		7.1.1.	Damages
from Employee;

 

		7.1.2.	In addition to its right to damages and any other rights
it may have, to obtain injunctive or other equitable relief to restrain any breach or threatened breach or otherwise to specifically
enforce the provisions of Schedule B attached hereto, it being agreed that money damages alone would be inadequate to compensate
the Company and would be an inadequate remedy for such breach.

 

		7.1.3.	The rights and remedies of the parties to this Agreement are cumulative and not alternative.

 

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7.2.                    TERMINATION.

 

7.3.        Employee’s
employment hereunder shall commence on the Effective Date, and shall continue for the period set forth in Section 3 hereof unless
sooner terminated upon the first to occur of the following events:

 

		7.3.1.	The Employee has reached the “Retirement Age”,
as such term is defined in the Equal Retirement Age for the Employee Act - 1987, as shall be amended from time to time.

 

		7.3.2.	The death or disability of Employee (for purposes of
this Section 7.2, “disability” shall be deemed to have occurred if Employee is unable, due to any physical or mental
disease or condition, to perform his normal duties of employment for 120 days in any 12-month period);

 

		7.3.3.	Termination
                                                                                  by the Company for just cause. Any of the
                                                                                  following actions or omissions by Employee shall
                                                                                  constitute just cause:

 

7.3.3.1.          Material breach by
Employee of any of the covenants set forth in Schedule B attached hereto;

 

7.3.3.2.          Material breach by Employee of any provision of this Agreement other than Schedule B attached hereto which is not cured by Employee
within fifteen (15) days after his receipt of notice thereof from the Company containing a description of the breach or breaches
alleged to have occurred;

 

7.3.3.3.          Any act of moral turpitude by Employee or action
by Employee to intentionally harm the Company.

 

		7.3.4.	Termination
                                                                                  by Employee for just cause. Any of the following
                                                                                  actions or omissions by the Company shall constitute
                                                                                  just cause:

 

7.3.4.1.          Material
breach by the Company of any provision of this Agreement which is not cured by the Company within fifteen (15) days after its
receipt of notice thereof from Employee containing a description of the breach or breaches alleged to have occurred;

 

7.3.4.2.          Any action by the Company to intentionally
harm Employee.

 

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7.4.                  Upon
termination pursuant to Section 7.3 above, Employee (or his or her estate or guardian in the event of termination pursuant to
subsection 7.3.1 above) shall be entitled to receive the Salary accrued but unpaid as of the date of termination, and accrued
vacation pay and all other payments required by law and/or by this Agreement, The Company will be entitled to deduct and
offset any amount owed by the Employee to the Company, including but not limited, to equipment and property belonging to the
Company and not returned by the Employee, from the Company’s Severance Contribution, and in this capacity will be
entitled to instruct the insurance company to transfer any such amount owed to the Company from any monies held by the
insurance company for the benefit of the Employee.

 

8.                    NOTICES

 

All notices
and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event
be deemed to be given upon receipt (a) five (5) days after deposit with the Postal Service, if delivered by mail, (b) upon delivery,
if delivered by hand, or (c) one (1) business day after the business day of facsimile transmission.

 

9.                    MISCELLANEOUS

 

All documents, exhibits and Schedules
attached to this Agreement constitute an integral part hereof. If any provision of this Agreement shall be declared by a court
of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, the remaining conditions and
provisions or portions thereof shall nevertheless remain in full force and effect and enforceable, and no provision shall be deemed
dependent upon any other covenant or provision unless so expressed herein. This Agreement and all Schedules attached hereto contain
the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no agreements, representations
or warranties relating to the subject matter of this Agreement which are not set forth herein. No modification of this Agreement
shall be valid unless made in writing and signed by the parties hereto. The rights, benefits, duties and obligations under this
Agreement shall inure to, and be binding upon, the Company, its successors assigns and any successor to the Company or to all or
substantially all of the Company’s business and/or assets, and upon Employee and his or her legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. This Agreement constitutes a personal service agreement, and the performance
of Employee’s obligations hereunder may not be transferred or assigned by Employee. The failure of either party to insist upon
the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment
of future compliance therewith or with any other term, condition or provision hereof, and said terms, conditions and provisions
shall remain in full force and effect. No waiver of any term or condition of this Agreement on the part of either party shall be
effective for any purpose whatsoever unless such waiver is in writing and signed by such party. The headings of sections are inserted
for convenience and shall not affect any interpretation of this Agreement. This Agreement may be executed by any of the parties
hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same instrument.

 

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10.                    GOVERNING
LAW

 

This Agreement shall be governed
by, and construed and interpreted in accordance with, the laws of the State of Israel, and the sole and exclusive place of jurisdiction
in any matter arising out of or in connection with this Agreement shall be applicable courts in Tel-Aviv.

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the day and year first above written.

 

	 	 	 	Can-Fite Biopharma Ltd. (the “Company”)
	 	 	 	 
	Date:	22/6/03	 	By:	/s/ Ilan Cohn
	 	 	 	 
	 	 	 	Title: Ilan Cohn, Ph.D., President & CEO
	 	 	 	 
	 	 	 	Employee
	 	 	 	 
	Date:	22/6/03	 	/s/
    Moti Farbstein
	 	 	 	Moti Farbstein

 

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SCHEDULE A

 

COMPENSATION

 

(a)          Monthly
Salary.

The Company shall pay Employee an aggregate
monthly salary of 22,000 New Israeli Shekels (NIS 22,000), which will be comprised of an amount of 16,000 New Israeli Shekels
(NIS 16,000) as a base salary (the “Base Salary”) and an amount of 6,000 New Israeli Shekels (NIS 6,000) as
payment for overtime pay (the “Overtime Payment”) (the Base Salary and the Overtime Payment will, collectively,
be referred to herein as the “Salary”). Accordingly, the Salary shall be inclusive of all overtime and other
similar compensation and shall be payable not later than the 10th day of each month with respect to the preceding month, in accordance
with the Company’s payroll practices. The Employee shall be entitled to receive cost-of-living adjustments “Tosefet
Yoker” or other statutory or mandatory required increase in salary. The Company shall deduct from the salary all national
insurance fees, health insurance fees, income tax and any other amounts required by law, and shall provide the Employee with requisite
documentation regarding such deductions.

 

The duties
of the Employee in accordance with this Agreement involve duties that require of him special personal care and loyalty, and therefore
the directives of the Work Hours and Rest Law, 1951, or any law to be enacted in its place, will not be applicable to the Employee
or to his activities which he will perform for the Company. The Employee will not be entitled to remuneration according to the
Work Hours and Rest Law, 1951.]

 

(b)          Managers
Insurance.

Within ten days after the end of each
month during the employment of Employee hereunder (or such other day as is consistent with the Company’s general practices),
the Company shall pay an aggregate amount equal to 18-1/3% of the Employee’s monthly Salary for the preceding month to a
Managers Insurance (Bituach Manahalim) policy (the “Policy”) and/or a comprehensive pension plan (“Pension
Plan”) through an agency and with an insurance company or a pension fund, to be selected by the Employee, to be divided
as follows: 8-1/3% towards Severance (the “Company’s Severance Contribution”); 5% toward provident (compensation).
In addition the Company shall pay up to 2-1/2% of the Employee’s Salary towards loss of (working capacity) disability insurance
(depending on the cost to the Company necessary to provide coverage). Similarly, at the beginning of each month the Company shall
deduct from the Salary of Employee an amount equal to 5% of the Employee’s monthly Salary for the preceding month, and shall
pay such amount as premium payable in respect of the provident compensation component of Policy. In the event the Employee elects
to be insured under a Pension Plan, the allocations shall be modified in accordance with the Pension Plans policies, provided,
in any event they do not exceed the amounts set forth above.

 

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(c)          Section
14 of the Severance Compensation Law –   1963.

(i)          It
is hereby agreed that upon termination of employment under this Agreement, the Company shall release to the Employee all amounts
accrued in the Managers Insurance on account of both the Company’s and Employee’s contributions. It is hereby clearly agreed and
understood that the amounts accrued in the Managers Insurance on account the Company’s contribution [i.e. 13.33% of each monthly
Salary payment] shall be in lieu and in full and final substation of any severance pay the Employee shall be or become entitled
to under any applicable Israeli law.

 

(ii)          The
Company hereby waives in advance any right to any amounts accrued in the Managers Insurance, unless the Employee is either not
entitled to Severance Pay according to Section 17 of the Severance Compensation Act, 1963, or has withdrawn amounts from the Managers
Insurance not due or as a result of an “Entitling Event”, as such term is defined in the General Approval of
the Labor Minister, dated June 30, 1998, issued in accordance to the said Section 14 (the “General Approval”),
in which case the Company may have the right to deny the employee only the amounts attributed to the Company’s Severance
Contribution accrued in the Managers Insurance.

 

(iii)          Sub-Sections
(i) and (ii) are in accordance with Section 14 of the Severance Compensation Act, 1963 and the General Approval, a copy of which
is attached hereby to this Schedule A as Exhibit A.

 

(d)          Study
Fund (Keren Hishtalmut).

At the end of each month, during the employment
of the Employee hereunder (or such other day as is consistent with the Company’s general practices), the Company shall pay
an amount equal to up to 7-1/2% of the Employee’s monthly Salary for the preceding month (the “Maximum Amount”),
but in no event an amount which exceeds the amount which is qualified for tax purposes for the Employee (the “Tax Amount”),
to a Study Fund (Keren Hishtalmut) designated by the Employee (the “Fund”), and shall deduct from the Salary
of the Employee an amount equal to up to 2-1/2% of the Employee’s monthly Salary for the preceding month and pay the same
to the Fund. Any amounts resulting from the Maximum Amount less the Tax Amount, shall be paid to the Employee after deduction
at source of any applicable taxes, payable on the date stated in Section (a) above ..

 

(e)          Vacation/Sick
Leave/Vacation allowance (Recuperation Pay).

The Employee shall be entitled to Eighteen (18) working days
of paid vacation annually during the term of this Agreement (prorated for any calendar year during which he is employed hereunder).
The Employee may carry forward the unused portion of such vacation for a period of two years only, provided, however, that he
or she use at least 4 days of that portion each year. The value of any unused vacation shall be paid to the Employee, pro rata,
on the basis of the Salary, at the end of the month during which such excess vacation time may be accrued. Nothing in this Section
may derogate from the Employee’s rights and benefits by applicable law.

 

The Employee
will be entitled to eighteen (18) days of fully paid sick leave per year. The Employee may carry forward any unused sick leave,
not to exceed the maximum prescribed by law. The Company is entitled to offset any sick leave payment against any monies received
by the Employee due to his loss of working capacity insurance.

 

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The Employee will be entitled to receive annual payment for
Recuperation Days (Dmei Havraa’) at the rate defined by law from time to time for each Recuperation Day.

 

(f)          Company
Automobile.

While the Employee is actively
employed by the Company, the Company will lease an automobile from a leasing Company, chosen at the Company’s sole
discretion, and will place such automobile at the disposal of the Employee under the terms of the Company’s general
leasing plan (to be provided to the Employee upon provision of the automobile). The make, size and design of the automobile
will be subject to the Company’s sole discretion. The Employee shall abide by all traffic laws and regulations, drive
cautiously and care for the proper maintenance of the car. The Company shall bear all of the fixed and variable maintenance
costs and actual expenses incurred directly in connection with his use of such automobile, including licenses, insurance,
gas, repairs, etc. but excluding any fines. The Employee will be compensated for all taxes he will be liable to as a
consequence of the benefits of Employee under this Section (“Gilum”).

 

(g)          Out
of Pocket Expenses.

The Company shall pay or reimburse the Employee for all normal,
usual and necessary expenses incurred or paid by the Employee in the performance of his duties hereunder, against receipt by the
Company of appropriate vouchers, receipts or other proof of the Employee’s expenditures, all subject to guidelines regarding such
expenses which shall be approved by Board of Directors from time to time.

 

(h)          Reimbursement
of Travel Expenses.

The Employee will be entitled for reimbursement of his actual
travel expense from his home to the Company’s facilities and back, against receipt by the Company of appropriate vouchers, receipts
or other proof of the Employee’s expenditures, all subject to guidelines regarding such reimbursement of Travel Expenses as shall
be set by the Company’s Procedures.

 

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SCHEDULE B

 

THIS UNDERTAKING
(the “Undertaking”), is entered into as of the 22 day of June, 2003, by Moti Farbstein, ID No 057682205,
an individual residing at Ganei Tikva (the Employee)

 

WHEREAS the
Employee has entered or intends to enter an Employment Agreement (the “Employment Agreement”), with Can-Fite Biopharma
Ltd., an Israeli company (“the Company”); and

 

WHEREAS the Employee agreed to enter into this Undertaking

 

NOW, THEREFORE, the Employee undertakes
and warrants towards the Company and any subsidiary and parent company of the Company as follows:

 

		1.	ACKNOWLEDGMENT

 

Employee acknowledges that (a)
he or she occupies a position of trust and confidence with the Company and shall continue to occupy such position of trust
and confidence with the Company, and has or shall become familiar with the following, any and all of which constitute confidential
information of the Company, (collectively, the “Confidential Information”): (i) any and all trade secrets concerning
the business and affairs of the Company, product specifications, data, know-how, formulae, compositions, processes, designs, sketches,
photographs, graphs, drawings, samples, inventions and ideas, past, current and planned research and development, current and
planned manufacturing and distribution methods and processes, customer lists, current and anticipated customer requirements, price
lists, market studies, business plans, computer software and programs (including object code and source code), computer software
and database technologies, systems, structures and architectures (and related processes, formulae, compositions, improvements,
devices, know-how, inventions, discoveries, concepts, ideas, designs, methods and information), of the Company and any other information,
however documented, of the Company that is a trade secret within the meaning of applicable law; (ii) any and all information concerning
the business and affairs of the Company (which includes historical financial statements, financial projections and budgets, historical
and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, personnel training and techniques
and materials), however documented; and (iii) any and all notes, analysis, compilations, studies, summaries, and other material
prepared by or for the Company containing or based, in whole or in part, on any information included in the foregoing; (b)
the business of the Company is international in scope; (c) the products and services of the Company are or shall be
marketed throughout the world; (d) the Company competes with or shall compete with other businesses that are or could be
located in any part of the world; (e) the provisions of this Undertaking are reasonable and necessary to protect and preserve
the Company’s business, and (f) the Company would be irreparably damaged if Employee were to breach the covenants
set forth in Sections 2,3, and 4 of this Undertaking.For purposes of this Undertaking, Confidential Information does not include
any of the foregoing items which have become publicly known and made generally available through no wrongful act of Employee or
of others who were under confidentiality obligations as to item or items involved

 

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		2.	CONFIDENTIAL
INFORMATION

 

		2.1	Employee agrees at all times
during the term of his or her employment and thereafter, to hold in strictest confidence, and not to use, except for the benefit
of the Company or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the
Company, any Confidential Information of the Company. Employee shall not: (i) use any such information, directly or indirectly,
for himself or herself or others; and (ii) take any such material or reproductions thereof from the Company’s facilities at any
time during his or her employment by the Company except as required in connection with Employee’s duties to the Company. Employee
agrees to return all such material and reproductions thereof (whether or not merged with other works) in his or her possession
to the Company, promptly upon request and in any event immediately upon termination of employment.

 

		2.2	Except with prior written
authorization by the Company, Employee agrees not to disclose or publish any of the Confidential Information or material of the
Company, its clients, partners, shareholders or suppliers, or any other party to whom the Company owes an obligation of confidence,
at any time during or after his or her employment with the Company.

 

		2.3	The Employee further agrees
that unless the Employee first obtains the prior written approval of the Company or any of it’s authorized representatives, he
or she shall neither issue, produce, publish, put out, print, distribute or circulate any article, abstract, commentary, critique
or any other kind of publication, nor shall he or she deliver any lecture, either for consideration or without, which includes
Confidential Information, material or any other proprietary information or trade secrets of the Company.

 

		2.4	Employee agrees, during his
or her employment with the Company, not to improperly use or disclose any proprietary information or trade secrets of any former
or concurrent employer or other person or entity and that he or she will not bring onto the premises of the Company any unpublished
document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer,
person or entity.

 

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		2.5	Employee recognizes that the Company has received and
in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. Employee agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary
in carrying out such Employee’s work for the Company consistent with the Company’s agreement with such third party.

 

		3.	INVENTIONS.

 

		3.1	Employee has attached hereto,
                                                                as Exhibit A, a list describing all inventions, original
                                                                works of authorship, developments, improvements, and trade secrets
                                                                which were made by Employee prior to his or her employment with
                                                                the Company (collectively referred to as “Prior Inventions”),
                                                                which belong to Employee, which relate to the Company’s
                                                                proposed business, products or research and development, and which
                                                                are not assigned to the Company hereunder; or, if no such list
                                                                is attached, Employee represents that there are no such Prior
                                                                Inventions. If in the course of his or her employment with the
                                                                Company, Employee incorporates into a product, process or machine
                                                                of the Company a Prior Invention owned by Employee or in which
                                                                Employee has an interest, the Company is hereby granted and shall
                                                                have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide
                                                                license to make, have made, modify, use and sell such Prior Invention
                                                                as part of or in connection with such product, process or machine

 

		3.2	The Employee will disclose and deliver to the Company for the exclusive use and benefit of the
Company any Inventions (which in this paragraph shall mean any discovery, technique, design, formula, method of manufacture, inventions,
secret process, improvements, and modifications (whether or not capable of protection by rights in the nature of intellectual property))
which the Employee alone or with one or more others has made or discovered during the Term of Employment and which pertain to or
result from any work which the Employee has done or may hereafter do for the Company, promptly upon the making, devising, or discovering
of the same, and will give all information and data in his possession as to the exact mode of working, producing, and using the
same and also all such explanations and instructions as may in the view of the Company be necessary to enable the full and effectual
working, production, or use of the same and will at the expense of the Company furnish it with all necessary plans, drawings, formulae,
and models.

 

		3.3	The Employee will without
charge to but at the expense of the Company execute and do all acts, matters, documents, and things to enable the Company or its
nominee to apply for and obtain protection for the Inventions in any or all countries and to vest title in the Company or such
nominee absolutely.

 

		3.4	The Employee hereby irrevocably
appoints the Company to be his attorney in his name and on his behalf to execute and do such acts, matters, documents, and things
as aforesaid and generally to use his name for the purpose of giving to the Company (or its nominee) the full benefit of the provisions
of this section. In favor of any third party a certificate signed by any director or the secretary of the Company that an instrument
or act falls within the authority hereby conferred shall be conclusive evidence that such is the case.

 

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		3.5	During the Term of Employment and at all times thereafter the Employee will (whether by omission
or commission) do nothing to affect or imperil the validity of the protection for the Inventions obtained or applied for by the
Company or its nominee pursuant to this paragraph. The Employee will at the direction and expense of the Company render all assistance
within his or her power to obtain and maintain such protection or application or any extension thereof.

 

		3.6	Nothing in this Undertaking shall oblige the Company to seek patent or other protection for any
Invention nor to exploit any Invention.

 

		3.7	The Employee shall promptly disclose to the Company all copyright works or designs originated,
conceived, written, or made by him or her alone or with others (except only those works originated, conceived, written, or made
by him or her prior to being employed by the Company) and shall until such rights shall be fully and absolutely vested in the Company
hold them in trust for the Company.

 

		3.8	The Employee hereby assigns to the Company by way of future assignment all copyright, design right,
and other proprietary rights, if any, for the full terms thereof throughout the world in respect of all copyright works and designs
originated, conceived, written, or made by the Employee (except only those works or designs originated, conceived, written, or
made by the Employee wholly outside his or her normal working hours and wholly unconnected with his or her being employed by the
Company) during the period of his or her employment hereunder and during all previous periods of employment with the Company.

 

		3.9	The Employee will at the request and expense of the Company
do all things necessary or desirable to substantiate the rights of the Company under Section 4.8, and it is hereby acknowledged
and agreed that the provisions of this paragraph shall survive any termination of the Employment.

 

		3.10	For the removal of any doubt,
                                                                 it is hereby clarified that the provisions contained in Sections
                                                                 4.2 and 4.8 above will apply also to any “Service Inventions”
                                                                 as defined in the Israeli Patent Law, 1967 (the “Patent
                                                                 Law”). However, in no event will such Service Invention
                                                                 become the property of the Employee and the provisions contained
                                                                 in Section 132(b) of the Patent Law shall not apply unless the
                                                                 Company provides in writing otherwise. The Employee will not
                                                                 be entitled to royalties or other payment with regard to any
                                                                 Prior Inventions, Service Inventions or any of the intellectual
                                                                 property rights set forth above, including any commercialization
                                                                 of such Prior Inventions, Service Inventions or other intellectual
                                                                 property rights.

 

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		4.	GENERAL

 

		4.1	The Employee acknowledges
that the provisions of this Undertaking serve as an integral part of the terms of his employment and reflect the reasonable requirements
of the Company in order to protect its legitimate interests with respect to the subject matter hereof. If any provision of this
Undertaking (including any sentence, clause or part thereof) shall be adjudicated to be invalid or unenforceable, such provisions
shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to apply
only with respect to the operation of such provision in the particular jurisdiction in which such adjudicate is made. In addition,
if any particular provision contained in this undertaking shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, it shall be construed by limiting and reducing such provision as to such characteristic
so that the provision is enforceable o the fullest extent compatible with applicable law as it shall then appear.

 

		4.2	The provisions of this Undertaking shall remain in full force and effect also following the termination
of the employment relationship between the Company and the Employee for whatever reason. This Undertaking shall not serve in any
manner as to derogate from any of the Employee’s obligations and liabilities under any applicable law.

 

	Signature:	/s/ Moti Farbstein	 
	 	Moti Farbstein	 

 

    	15

    	 

    

 

Exhibit A

 

LIST OF PRIOR
INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

 

	Title	Date	Identifying Number
	 	 	or Brief Description
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

x
No inventions or improvements

 

 ̈ Additional
Sheets Attached

 

	Signature of Employee	/s/ Moti Farbstein	 
	 	 	 
	Print Name of Employee:	Moti Farbstein	 

 

	Date:	22/6/03	 

 

    	16

    	 

    

 

SCHEDULE A

 

COMPENSATION

 

		(a)	Monthly Salary.

The Company shall pay Employee
an aggregate monthly salary of Twenty Two Thousand New Israeli Shekels (NIS 22,000), (the the “Salary”). Accordingly,
the Salary shall be inclusive of all overtime and other similar compensation and shall be payable not later than the 10th day
of each month with respect to the preceding month, in accordance with the Company’s payroll practices. The Employee shall
be entitled to receive cost-of-living adjustments “Tosefet Yoker” or other statutory or mandatory required increase
in salary. The Company shall deduct from the salary all national insurance fees, health insurance fees, income tax and any other
amounts required by law, and shall provide the Employee with requisite documentation regarding such deductions.

 

The duties of the Employee in accordance
with this Agreement involve duties that require of him special personal care and loyalty, and therefore the directives of the Work
Hours and Rest Law, 1951, or any law to be enacted in its place, will not be applicable to the Employee or to his activities which
he will perform for the Company. The Employee will not be entitled to remuneration according to the Work Hours and Rest Law, 1951.

 

		(b)	Managers Insurance.

Within ten days after the end
of each month during the employment of Employee hereunder (or such other day as is consistent with the Company’s general
practices), the Company shall pay an aggregate amount equal to 18-1/3% of the Employee’s monthly Salary for the preceding
month to a Managers Insurance (Bituach Manahalim) policy (the “Policy”) and/or a comprehensive pension plan
(“Pension Plan”) through an agency and with an insurance company or a pension fund, to be selected by the Employee,
to be divided as follows: 8-1/3% towards Severance (the “Company’s Severance Contribution”); 5% toward
provident (compensation). In addition the Company shall pay up to 2-1/2% of the Employee’s Salary towards loss of (working
capacity) disability insurance (depending on the cost to the Company necessary to provide coverage). Similarly, at the beginning
of each month the Company shall deduct from the Salary of Employee an amount equal to 5% of the Employee’s monthly Salary
for the preceding month, and shall pay such amount as premium payable in respect of the provident compensation component of Policy.
In the event the Employee elects to be insured under a Pension Plan, the allocations shall be modified in accordance with the
Pension Plans policies, provided, in any event they do not exceed the amounts set forth above.

 

		(c)	Section
14 of the Severance Compensation Law – 1963.

		(i)	It is hereby agreed that upon termination of employment under this Agreement, the Company shall
release to the Employee all amounts accrued in the Managers Insurance on account of both the Company’s and Employee’s contributions.
It is hereby clearly agreed and understood that the amounts accrued in the Managers Insurance on account the Company’s contribution
[i.e. 13.33% of each monthly Salary payment] shall be in lieu and in full and final substation of any severance pay the Employee
shall be or become entitled to under any applicable Israeli law.

 

    	17

    	 

    

 

		(ii)	The Company
                                                                                  hereby waives in advance any right to any amounts
                                                                                  accrued in the Managers Insurance, unless the
                                                                                  Employee is either not entitled to Severance
                                                                                  Pay according to Section 17 of the Severance
                                                                                  Compensation Act, 1963, or has withdrawn amounts
                                                                                  from the Managers Insurance not due or
                                                                                  as a result of an “Entitling Event”,
                                                                                  as such term is defined in the General Approval
                                                                                  of the Labor Minister, dated June 30, 1998,
                                                                                  issued in accordance to the said Section 14
                                                                                  (the “General Approval”), in
                                                                                  which case the Company may have the right to
                                                                                  deny the employee only the amounts attributed
                                                                                  to the Company’s Severance Contribution
                                                                                  accrued in the Managers Insurance.

 

		(iii)	Sub-Sections
                                                                                   (i) and (ii) are in accordance with Section
                                                                                   14 of the Severance Compensation Act, 1963
                                                                                   and the General Approval, a copy of which is
                                                                                   attached hereby to this Schedule A as Exhibit
                                                                                   A.

 

		(d)	Study
Fund (Keren Hishtalmut).

At the end of each month, during the employment of the Employee
hereunder (or such other day as is consistent with the Company’s general practices), the Company shall pay an amount equal to
up to 7-1/2% of the Employee’s monthly Salary for the preceding month (the “Maximum Amount”), but in no event
an amount which exceeds the amount which is qualified for tax purposes for the Employee (the “Tax Amount”), to
a Study Fund (Keren Hishtalmut) designated by the Employee (the “Fund”), and shall deduct from the Salary of
the Employee an amount equal to up to 2-1/2% of the Employee’s monthly Salary for the preceding month and pay the same to the
Fund. Any amounts resulting from the Maximum Amount less the Tax Amount, shall be paid to the Employee after deduction at source
of any applicable taxes, payable on the date stated in Section (a) above ..

 

		(e)	Vacation/Sick Leave/Vacation allowance (Recuperation
Pay).

The Employee shall be entitled to Eighteen (18) working days
of paid vacation annually during the term of this Agreement (prorated for any calendar year during which he is employed hereunder).
The Employee may carry forward the unused portion of such vacation for a period of two years only, provided, however, that he
or she use at least 4 days of that portion each year. The value of any unused vacation shall be paid to the Employee, pro rata,
on the basis of the Salary, at the end of the month during which such excess vacation time may be accrued. Nothing in this Section
may derogate from the Employee’s rights and benefits by applicable law.

 

The Employee
will be entitled to eighteen ( 18) days of fully paid sick leave per year. The Employee may carry forward any unused sick leave,
not to exceed the maximum prescribed by law. The Company is entitled to offset any sick leave payment against any monies received
by the Employee due to his loss of working capacity insurance.

 

    	18

    	 

    

 

The Employee will be entitled
to receive annual payment for Recuperation Days (Dmei Havraa’) at the rate defined by law from time to time for each Recuperation
Day.

 

		(f)	Company Automobile.

While the Employee is
actively employed by the Company, the Company will lease an automobile from a leasing Company, chosen at the Company’s
sole discretion, and will place such automobile at the disposal of the Employee under the terms of the Company’s
general leasing plan (to be provided to the Employee upon provision of the automobile). The make, size and design of the
automobile will be subject to the Company’s sole discretion. The Employee shall abide by all traffic laws and
regulations, drive cautiously and care for the proper maintenance of the car. The Company shall bear all of the fixed and
variable maintenance costs and actual expenses incurred directly in connection with his use of such automobile, including
licenses, insurance, gas, repairs, etc. but excluding any fines. The Employee will be compensated for all taxes he will be
liable to as a consequence of the benefits of Employee under this Section (“Gilum”).

 

		(g)	Out of Pocket
                                                                               Expenses.

The Company shall pay or reimburse the Employee for all normal,
usual and necessary expenses incurred or paid by the Employee in the performance of his duties hereunder, against receipt by the
Company of appropriate vouchers, receipts or other proof of the Employee’s expenditures, all subject to guidelines regarding such
expenses which shall be approved by Board of Directors from time to time.

 

		(h)	Reimbursement
                                                                               of Travel Expenses.

The Employee will be entitled for reimbursement of his actual
travel expense from his home to the Company’s facilities and back, against receipt by the Company of appropriate vouchers, receipts
or other proof of the Employee’s expenditures, all subject to guidelines regarding such reimbursement of Travel Expenses as shall
be set by the Company’s Procedures.

 

    	19THIS WARRANT HAS NOT BEEN REGISTERED
OR QUALIFIED FOR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED. OR ANY STATE SECURITIES LAW AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN EXECEPTION THEREFROM UNDER SUCH ACT AND
ANY SUCH LAWS THAT MAY BE APPLICABLE. THIS WARRANT IS TRANSFERABLE ONLY UPON THE CONDITIONS SPECIFIED HEREIN AND IN THAT CERTAIN
SHARE PURCHASE AGREEMENT, DATED AS OF, JANUARY 20, 2004, BETWEEN THE COMPANY AND THE PURCHASERS REFERRED TO THEREIN.

 

	Certificate No. _____________	Issue Date: _______________

 

Warrant
To Purchase

Series
A Preferred Stock

Of

Enerpulse,
Inc.

 

THIS IS TO CERTIFY that, for
value received, _______________, or its permitted assigns (the "Holder"). is entitled to purchase from Enerpulse,
Inc., a Delaware corporation (the "Company"), at any time during the Exercise Period (as hereinafter defined),
a total of __________ shares of the Company's Series A preferred stock, par value $0.001 per share (the "Series A Preferred
Stock"), at an exercise price of $1.40 per share, subject to adjustment as described in this Warrant, all on and subject
to the terms and conditions set forth in this Warrant.

 

The number of shares of Series
A Preferred Stock to be received upon the exercise of this Warrant and the price to be paid for each share of Series A Preferred
Stock may be adjusted from time to time as hereinafter set forth. The shares of Series A Preferred Stock deliverable upon such
exercise, and as adjusted from time to time, are hereinafter sometimes referred to as "Warrant Shares," and the
exercise price of a share of Series A Preferred Stock as adjusted from time to time is hereinafter sometimes referred to as the
''Exercise Price."

 

This Warrant is issued to the
Holder by the Company in connection with the transactions described in that certain Share Purchase Agreement dated as of ____________
(the "Purchase Agreement"), by and among the Company and the purchasers referred to therein.

 

SECTION 1.           Exercise of Warrant.

 

1.1           Exercise
Period. This Warrant may be exercised, in whole or in part, at any time and from time to time to and including 5:00 p.m., Denver
time, on the first anniversary of the Issue Date of this Warrant or, if such day is not a business day, on the next succeeding
business day (the "Exercise Period").

 

1.2           Exercise
Procedure. This Warrant may be exercised, by presentation and surrender hereof to the Company at its principal office, or at
tl1e office of its stock transfer agent, if any. with the Purchase Form annexed hereto duly executed (with signature guaranteed
if required by the Company or its stock transfer agent) and accompanied by payment of the Exercise Price for the number of Warrant
Shares specified in such form and any applicable taxes. Payment may be made at the option of Holder (i) by funds immediately available
and/or (ii) instructing the Company to withhold from the shares of Series A Preferred Stock to be issued upon exercise of this
Warrant a number of whole or fractional shares of

 

    	 

    	 

    

Series A Preferred Stock equal
to the number of shares for which the Warrant being. exercised (including any surrendered shares) multiplied by the Exercise Price
per share, divided by the Fair Market Value of a share of Series A Preferred Stock. For purposes of the cashless exercise procedure
described in clause (ii) of the preceding sentence, the term "Fair Market Value of a share of Series A Preferred Stock"
is determined as follows:

 

(a) If the Series A Preferred
Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange or listed for trading
on The NASDAQ National Market, the Fair Market Value of a share of Series A Preferred Stock shall be the last reported sale price
of the Series A Preferred Stock on such exchange or system on the last business day prior to the date of exercise of this Warrant
or, if no such sale is made on such day, the average closing bid and asked prices for such day on such exchange or system;

 

(b) If the Series A Preferred
Stock is not so listed or admitted to unlisted trading privileges. the Fair Market Value of a share of Series A Preferred
Stock shall be the mean of the last reported bid and asked prices reported by the National Quotation Bureau, Inc., on the last
business day prior to the date of the exercise of this Warrant; or

 

(c) If the Series A Preferred
Stock is not so listed or admitted to unlisted trading privileges and hid and asked prices are not so reported, the Fair Market
Value of a share of Series A Preferred Stock shall be an amount that would be received by the holder of such shares pursuant to
the Company's Amended and Restated Articles of Incorporation if the Company was liquidated and dissolved and its sole assets at
the time of such liquidation and dissolution consisted of cash in an amount equal to the Company Fair Market Value. "Company
Fair Market Value" means the amount which a: hypothetical willing buyer would pay a hypothetical willing seller(s) in cash
for one hundred percent (100%) of the then outstanding capital stock of the Company, with all in-the-money options and warrants
for capital stock having been exercised in accordance with their terms, in an arm's-length transact ion, with neither buyer nor
seller(s) being under any undue pressure to complete the transaction, and with all parties having equal access to, and accurate
knowledge of: all material facts.

 

As soon
as practicable alter an exercise of this Warrant, but not later than seven (7) business days from the date of such exercise, the
Company shall issue and deliver to the Holder a certificate or certificates for the Warrant Shares issuable upon such exercise,
registered in the name of the Holder or the Holder's designee. If this Warrant should be exercised in part only the Company shall,
upon surrender of the Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the Holder thereof to
purchase the balance of the Warrant Shares purchasable thereunder.

 

In order
to assure the availability of an exemption from registration under the federal or applicable state securities laws, the Company
may condition the exercise of the Warrant upon the Holder delivering to the Company an investment letter in the form as customarily
used by the Company from time to time in connection with the exercise of non-registered options and warrants which arc issued by
the Company. It is further understood that certificates for the Warrant Shares, if any, to be issued upon exercise of this Warrant
may contain a restrictive legend in accordance with Section 5.2 hereof.

 

1.3           Reservation
of Shares. The Company shall at all times reserve and keep available out of its authorized but unissued Series A Preferred
Stock, solely for the purpose of issuance upon the exercise of this Warrant, the maximum
number of shares of Series A Preferred Stock issuable upon exercise of this Warrant. All shares of Series A Preferred Stock which
are so issuable shall, when issued and upon payment of the Exercise Price therefor, be duly and validly issued, fully paid and
non-assessable.

    	 

    	 

    

 

1.4           Fractional
Shares. In lieu of issuing fractional shares, the Company may, at its option. with respect to any fraction of a share called
for upon any exercise of this Warrant, pay to the Holder hereof an amount in cash equal to such fraction multiplied by the then
elective Exercise Price.

 

SECTION 2.           Exchange, Transfer or Replacement of Warrant.

 

2. 1           Warrant
Exchangeable for Different Denominations. This Warrant is exchangeable, without expense, at the option of the Holder, upon
presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for new Warrants in different
denominations entitling the Holder thereof to purchase in the aggregate the same number of shares of Series A Preferred Stock purchasable
hereunder. This Warrant may be divided by or combined with other Warrants which carry the same rights upon presentation hereof
at the principal office of the Company or at the office· Of its stock transfer agent, if any, together with a written notice
specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof. The term "this
Warrant'' as used herein includes any Warrants into which this Warrant may be divided or exchanged.

 

2.2           Transfer.
Subject to the provisions of the Purchase Agreement and Section 5 of this Warrant, the Holder may transfer or assign this Warrant
and all rights hereunder, in whole or from time to time in part. Upon surrender of this Warrant to the Company at its principal
office or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed (with signature
guaranteed , if required by the Company or its stock transfer agent) and funds sufficient to pay any transfer tax, the Company
shall, without charge, execute and deliver a new Warrant in the name of the assignee or assignees named in such instrument of assignment
and this Warrant shall promptly be canceled.

 

2.3           Replacement.
Upon receipt by the Company of evidence satisfactory to it of the ownership and the loss, theft, destruction or mutilation of any
certificate evidencing this Warrant, and in the case of any such loss, theft or destruction, upon receipt of indemnification reasonably
satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of such certificate, the Company
shall execute and deliver in lieu of such certificate a new certificate of like tenor, date and amount. Any such new Warrant certificate
executed and delivered; shall constitute an additional contractual obligation on the part of the Company, whether or not the original
Warrant certificate shall be at any time enforceable by anyone.

 

SECTION 3.           Adjustments.

 

3.1           Stock
Dividends, Subdivisions and Combinations. So long as this Warrant shall be outstanding, the Exercise Price in effect at any
time and the number and kind of securities purchasable upon the exercise of this Warrant shall be subject to adjustment from time
to time upon the happening of certain events as described herein, in case the Company shall (i) declare a dividend or make a distribution
on its outstanding shares of Series A Preferred Stock in shares of Series A Preferred Stock, (ii) subdivide or reclassify its outstanding
shares of Series A Preferred Stock into a greater number of shares or (iii) combine or reclassify its outstanding shares of Series
A Preferred Stock into a smaller number of shares, the Exercise Price in effect at the time of the record date for such dividend
or distribution, the sale of such securities or the effective date
of such subdivision, combination or reclassification shall be proportionately adjusted as of the effective date of such event by
multiplying such Exercise Price by a fraction:

 

(a)           the numerator of
which shall be the number of shares of Series A Preferred Stock outstanding immediately prior thereto, and

    	 

    	 

    

 

 

(b)           the
denominator of which shall be the total number of shares of Series A Preferred Stock outstanding immediately following such
event.

 

For example, if the Company declares
a 2-for-1 stock distribution and the Exercise Price immediately prior to such event was $ 1.00 per share, then the adjusted Exercise
Price immediately after such event would be $.50 per share. Such adjustment shall be made successively whenever any event listed
above shall occur.

 

No adjustment in the Exercise
Price shall be required unless such adjustment would require an increase or decrease of at least $0.01 in such price; provided,
however, that any adjustments which by reason of this paragraph are not required to be made shall be carried forward and
taken into account in any subsequent adjustment required to be made hereunder.

 

All calculations under this Section 3.1 shall be made to the
nearest cent or to the nearest Warrant Share, as the case may be.

 

In the event that at any time,
as a result of an adjustment made pursuant to this Section 3.1, the Holder of this Warrant thereafter shall become entitled to
receive any securities of the Company, other than Series A Preferred Stock, thereafter the number of such other securities so receivable
upon exercise of this Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Series A Preferred Stock contained in this Section 3.1.

 

3.2           Reclassification,
Reorganization or Merger. If at any time as a result of: (i) any capital reorganization or reclassification of outstanding
shares of Series A Preferred Stock of the Company (other than a dividend. subdivision or combination which gives rise to adjustment
of the Exercise Price pursuant to Section 3.1 of this Warrant). or (ii) any merger or consolidation of the Company with or into
another corporation (whether or not the Company is the surviving corporation). the Series A Preferred Stock issuable upon exercise
of this Warrant shall be changed into or exchanged for the same or a different number of shares of any class or classes of stock
or the Company or any other corporation, or other securities convertible into such shares, then, as a part of such reorganization,
reclassification, merger or consolidation, appropriate adjustments shall be made in the exercise rights of this Warrant so that:

 

(a) the Holder of this Warrant
shall thereafter be entitled to receive, upon exercise of this Warrant, the kind and amount of shares of stock, other securities,
money and property which such Holder would have received at the time of such capital reorganization, reclassification, merger or
consolidation, if such Holder had exercised this Warrant immediately prior to such capital reorganization, reclassification, merger
or consolidation, and

    	 

    	 

    

(b) this warrant shall t
hereafter be adjusted on terms as nearly equivalent as may be practicable for all adjustments theretofore provided in this Warrant.

 

The provisions of this Section
3.2 shall similarly apply to successive capital reorganizations, reclassifications, mergers and consolidations.

 

3.3           Offer's
Certificate. Whenever the Exercise Price or the kind of securities or property issuable upon the exercise of this Warrant,
or both, shall be adjusted, the Company shall make an officer's certificate setting forth, in reasonable detail the event requiring
such adjustment. the amount of the adjustment, the method by which such adjustment was calculated, the Exercise Price and the kind
of securities or property issuable upon the exercise of this Warrant after giving effect to such adjustment. The Company shall
cause copies of such certificate to be mailed (by first class mail postage prepaid) to the Holder of this Warrant promptly after
each adjustment.

 

3.4           Notices
to Warrant Holders. Whenever the Company contemplates the occurrence of an event which would give rise to adjustments in the
Exercise Price or the kind of securities or property issuable upon exercise of this Warrant, the Company shall mail to the Holder
of this Warrant, at least fifteen (15) days prior to the record date with respect to such event or, if no record date shall be
established, at least fifteen (15) days prior to such event, a notice specifying (i) the nature of the contemplated event, ( ii)
the date on which any such record is to be taken for the purpose of such event. (iii) the date on which such event is expected
to become effective and (iv) the time, if any is to be fixed, when the holders of record of Series A Preferred Stock (or other
securities) shall been titled to exchange their shares of Series A Preferred Stock (or other securities) for securities or other
property deliverable in connection with such event

 

SECTION 4.           Rights of the Holder.

 

The Holder of this Warrant shall not, by virtue hereof,
be entitled to any voting rights or other rights of a stockholder in the Company, either at law or equity (including, without limitation,
any rights to dividends) and the rights of the Holder are limited to those expressed in this Warrant.

 

SECTION 5.           Securities Law Compliance.

 

5.1           Investment
Representations. The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and any Warrant Shares to
be issued upon exercise hereof are being acquired solely for the Holder's own account and not as a nominee tor any other party.
and for investment, and that the Holder will not offer, sell, transfer, assign or otherwise dispose of this Warrant or any Warrant
Shares to be issued upon exercise hereof, except in accordance with the Securities Act of 1933, as amended (the "Act"),
and applicable state securities laws or applicable exemptions therefrom. Upon exercise of the Warrant, the Holder shall, if requested
by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of Series A Preferred Stock so purchased
are being acquired solely for the Holder's own account and not as a nominee for any other party, for investment and not with a
view toward distribution or resale.

 

5.2           Legend.
If appropriate, this Warrant and any Warrants issued upon exercise or substitution or upon assignment or transfer pursuant to the
provisions of this Warrant, and all Warrant Shares issued upon exercise hereof, shall be stamped or imprinted with legends setting
forth the restrictions on transfer arising under applicable federal and state securities laws.

    	 

    	 

    

 

 

SECTION 6.           Registration Rights Under the Securities Act
of 1933.

 

The Holder of this
Warrant shall have all of the rights, benefits, and obligations with respect to the Warrant Shares of a Holder of Registrable
Securities pursuant to that certain Registration Rights Agreement, dated as of ____________ , between the Company and the Holders
of Registrable Securities (as defined therein) (the "Registration Rights Agreement").In the event of the exercise
or surrender of this Warrant, the Holder of the Warrant Shares shall succeed to the rights in this Section 6.

 

SECTION 7.           Amendments.

 

Neither this Warrant
nor any term hereof may be changed, waived, discharged or terminated without the prior written consent of holder of a majority
of the Warrants outstanding; provided, however, that no such amendment shall, without the prior written consent of
the Holder of this Warrant, (i) shorten the Expiration Date of this Warrant, (ii) reduce the amount of Warrant Shares issuable
upon exercise of this Warrant (except in accordance with Section 3), (iii) increase the Exercise Price (except in accordance with
Section 3) or (iv) amend any provision of this Section 7. Any amendment effected pursuant to this Section 7 shall be binding upon
the Holder of this Warrant.

 

SECTION 8.           Governing Law.

 

This Warrant shall
be governed by the internal law, and not the law of conflicts, of the State of

Colorado.

 

SECTION 9.           Notices.

 

All notices and other
communications required or permitted hereunder shall be in writing and shall be effectively given: (i) upon personal delivery to
the party to be notified, (ii) when sent by confirmed facsimile (if sent during normal business hours of the recipient)
and, if not sent during normal business hours, then on the next business day, (iii) five (5) business days after having been sent
by registered or certified mail, return receipt requested, postage prepaid, or (iv) two (2) days after deposit with a nationally
recognized overnight courier, specifying next day delivery, witl1 written verification of receipt. Such notices and other communications
shall be sent (a) to the Company at Enerpulse, Inc. 2301 Yale Blvd. SE Unit A6, Albuquerque, NM 87106; and (b) to the Holder at
the address for such Holder set forth in the Purchase Agreement pursuant to which this Warrant was issued or such other address
designated by the Holder to the Company in writing.

 

 

IN WITNESS WHEREOF, Enerpulse, Inc. has
caused this Warrant to be executed by its officer thereunto duly authorized.

 

 

Enerpulse, Inc.

 

 

 

		By:	_______________________________________

			Louis Camilli, President

 

 

    	 

    	 

    

 

 

PURCHASE FORM

 

 

Dated           ________________, ___________________

 

____ (check if applicable) The
undersigned hereby irrevocably elects to exercise its rights pursuant to this Warrant to the extent of purchasing _________ shares
of Series A Preferred Stock. par value $0.001 per share (''Series A Preferred Stock''), of Enerpulse, Inc., a Delaware corporation,
and hereby makes payment of $____________, in cash, in payment of the exercise price thereof.

 

____(check if applicable)
The undersigned hereby irrevocably elects to exercise its rights pursuant to this Warrant to the extent of purchasing _______ shares
of Series A Preferred Stock and hereby authorizes you to cancel ______ of such shares without issuance to the undersigned as a
"cashless" payment of the exercise price of this Warrant.

 

 

 

 

INSTRUCTIONS FOR REGISTRATION OF STOCK

 

Name _____________________________________________

(Please typewrite or print in
block letters)

 

 

Address____________________________________________

 

Signature __________________________________________

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

 

FOR VALUE RECEIVED, _______________________hereby sells,
assigns and transfers unto

 

Name_________________________________________________________________

(Please typewrite or print in block letters)

 

Address_______________________________________________________________

 

the right to purchase Series
A Preferred Stock, par value $0.001 per share, of Enerpulse, Inc., a Delaware corporation (the "Company"), represented
by this warrant to the extent of ______________ shares a s to which such right is exercisable and does hereby irrevocably constitute
and appoint as Attorney, to transfer the same on the books of the Company with full power of substitution in the premises.

 

Date:__________________________

 

Signature ______________________________________

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