Document:

Unassociated Document

    

      THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS AND HAVE BEEN TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A
VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF. THE SECURITIES
MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION AND
QUALIFICATION WITHOUT AN OPINION OF COUNSEL FOR THE HOLDER, CONCURRED IN BY
COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
REQUIRED.

       

      
        	
                Corporation:

              	
                Energy
      and Power Solutions, Inc.

              
	
                Number
      of Shares:

              	
                18,843
      Shares

              
	
                Class
      of Stock:

              	
                Common
      Stock

              
	
                Initial
      Exercise Price:

              	
                $4.29864
      Per Share

              
	 
      	 
      

      

      STOCK
PURCHASE WARRANT

      To
Purchase Shares of Common Stock

      of

      ENERGY
AND POWER SOLUTIONS, INC.

       

      
        	
                Issue
      Date:

              	
                November
      29, 2007

              
	
                Expiration
      Date:

              	
                November
      29, 2012

              
	 
      	 
      

      

      THIS
CERTIFIES that, for value received, Robert W. Peach (the "Warrantholder"), is
entitled, upon the terms and subject to the conditions hereinafter set forth, at
any time on or prior to November 29, 2007, but not thereafter, to subscribe for
and purchase from Energy and Power Solutions, Inc., a California corporation
(the "Company"), Eighteen
Thousand Eight Hundred Forty-Three (18,843) shares of the Company's Common Stock
(the "Shares").
The exercise price ("Warrant Price") of
Common Stock under this Warrant shall be $4.29864 per share. The Warrant Price
and the number of shares for which the Warrant is exercisable shall be subject
to adjustment as provided herein.

       

      
        	
                1.

              	
                Title to Warrant; Restrictions
      on Transfer. This Warrant or any rights hereunder may not be
      transferred or assigned, in whole or in part, to any person or entity by
      the Warrantholder without the Company's prior written consent, provided,
      however, that the Warrantholder may transfer the Warrant to an affiliate
      of the Warrantholder upon notice to the Company, prior to the expiration
      hereof (a "Permitted Transfer"). Further, any Permitted Transfer of the
      Warrant must comply with the legend set forth on the first page of this
      Warrant and be accompanied by surrender, in person or by duly authorized
      attorney, of this Warrant together with the Assignment Form attached
      hereto as Exhibit A
      properly endorsed.

              

      

       

      
        	
                2.

              	
                Exercise of Warrant. The
      purchase rights represented by this Warrant are exercisable by the
      Warrantholder hereof, in whole or in part, at any time before the close of
      business at the Company's headquarters by the surrender of this Warrant
      and the Subscription Form attached hereto as Exhibit B duly
      executed at the office of the Company, and upon payment of the Warrant
      Price of the Shares thereby purchased (by cash or by check or bank draft
      payable to the order of the Company or by cancellation of indebtedness of
      the Company to the Warrantholder hereof, if any, at the time of exercise
      in an amount equal to the Warrant Price of the Shares thereby purchased,
      or as provided in Section 3 hereof); whereupon the Warrantholder of this
      Warrant shall be entitled to receive a certificate for the number of
      Shares of Common Stock so purchased. The Company agrees that if at the
      time of the surrender of this Warrant for exercise the Warrantholder
      hereof shall be entitled to exercise this Warrant, the Shares so purchased
      shall be deemed to be issued to such Warrantholder as the record owner of
      such Shares as of the close of business on the date on which this Warrant
      shall have been exercised as
aforesaid.

              

      

       

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

      Certificates
for Shares purchased hereunder shall be delivered to the Warrantholder hereof
within thirty (30) days after the date on which this Warrant shall have been
exercised as aforesaid.

       

      The
Company covenants that all shares of Common Stock which may be issued upon
exercise of rights represented by this Warrant will, upon exercise of the rights
represented by this Warrant and the payment of the Warrant Price for such
Shares, be fully paid and nonassessable and free from all taxes, liens and
charges in respect of the issue thereof.

       

      
        	
                3.

              	
                Alternative Exercise. At
      any time, the Warrantholder of record hereof may, at such Warrantholder's
      sole option, in lieu of making payment upon exercise in accordance with
      the provisions of Section 2 above and to the extent permitted by
      applicable statutes and regulations, elect to receive shares of Common
      Stock equal to the value (as determined below) of this Warrant by
      surrender of the Warrant at the principal office of the Company together
      with notice of such election in which event the Company shall issue to
      such Warrantholder that number of shares of Common Stock computed using
      the following formula:

              

      

       

      
        
          	 
      	
                  X =
      Y(A-B)

                             
      A

                

        

      

      

      Where: X
= the number of shares of Common Stock to be issued to such Warrantholder
pursuant to this Section 3.

       

      Y = the
number of shares of Common Stock issuable upon exercise of this Warrant in
accordance with Section 2.

       

      A = the
Fair Market Value of the Common Stock (as defined in accordance with Section 12
below).

       

      B =
Warrant Price (as adjusted pursuant to Section 10 below, if
applicable).

       

      
        	
                4.

              	
                No Fractional Shares or
      Scrip. No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. With respect to any
      fraction of a share called for upon the exercise of this Warrant, an
      amount equal to such fraction multiplied by the then current Fair Market
      Value of the Common Stock shall be paid in cash to the Warrantholder of
      this Warrant.

              

      

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      
        	
                5.

              	
                Charges, Taxes and
      Expenses. Issuance of certificates for shares of Common Stock upon
      the exercise of this Warrant shall be made without charge to the
      Warrantholder hereof for any issue or transfer tax or other incidental
      expense in respect of the issuance of such certificates, all of which
      taxes and expenses shall be paid by the Company, and such certificates
      shall be issued in the name of the Warrantholder of this Warrant or in
      such name or names as may be directed by the Warrantholder of this
      Warrant; provided, however, that in the event certificates for shares of
      Common Stock are to be issued in a name other than the name of the
      Warrantholder of this Warrant, this Warrant when surrendered for exercise
      shall be accompanied by the Assignment Form attached hereto duly executed
      by the Warrantholder hereof; and provided further, that upon any transfer
      involved in the Stock, the Company may require, as a condition thereto,
      the payment of a sum sufficient to reimburse it for any transfer tax
      incidental thereto.

              

      

       

      
        	
                6.

              	
                No Rights as
      Shareholder. This Warrant does not entitle the Warrantholder hereof
      to any voting rights or other rights as a shareholder of the Company prior
      to the exercise thereof.

              

      

       

      
        	
                7.

              	
                Exchange of Warrant.
      This Warrant is exchangeable, upon the surrender hereof by the
      Warrantholder at the above-mentioned office or agency of the Company, for
      a new Warrant of like tenor.

              

      

       

      
        	
                8.

              	
                Loss, Theft, Destruction or
      Mutilation of Warrant. Upon receipt by the Company of evidence
      reasonable satisfactory to it of the loss, theft, destruction, or
      mutilation of this Warrant, and in case of loss, theft, or destruction, of
      indemnity or security reasonably satisfactory to it, and upon
      reimbursement to the Company of all reasonable expenses incidental
      thereto, and upon surrender and cancellation of this Warrant, if
      mutilated, the Company will make and deliver a new Warrant of like tenor,
      in lieu of this Warrant.

              

      

       

      
        	
                9.

              	
                Saturday, Sundays and Holidays,
      Etc. If the last appointed day for the taking of any action or the
      expiration of any right required or granted herein shall be a Saturday or
      a Sunday or a legal holiday, then such action may be taken or such right
      may be exercised on the next succeeding day not a Saturday, Sunday or
      legal holiday.

              

      

       

      
        	
                10.

              	
                Reclassification, Etc.
      In the event of changes in the outstanding Common Stock of the Company by
      reason of stock dividends, split-ups, reverse-split recapitalizations,
      reclassifications, mergers, consolidations, combinations or exchanges of
      shares, separations, reorganizations, liquidations, conversion of all
      outstanding shares of Common Stock into any other class of shares, or the
      like, the number and class of shares available under the Warrant in the
      aggregate and the Warrant Price shall be correspondingly adjusted by the
      Board of Directors of the Company. The adjustment shall be such as will
      give the Warrantholder of the Warrant on exercise for the same aggregate
      Warrant Price the total number, class and kind of shares as he would have
      owned had the Warrant be exercised prior to the event and had he continued
      to hold such Shares until after the event requiring
      adjustment.

              

      

       

      
        	
                11.

              	
                Authorized Shares. The
      Company covenants that during the period the Warrant is outstanding, it
      will reserve from its authorized and unissued Common Stock a sufficient
      number of shares to provide for the issuance of Common Stock upon the
      exercise of any purchase rights under this Warrant. The Company further
      covenants that its issuance of this Warrant shall constitute full
      authority to its officers who are charged with the duty of executing stock
      certificates to execute and issue the necessary certificates for shares of
      the Company's Common Stock upon the exercise of the purchase rights under
      this Warrant and the payment of the Warrant Price for such
      Shares.

              

      

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      
        	
                12.

              	
                Fair Market Value. The
      "Fair Market Value" of the Company's Common Stock shall be the closing
      price of the Common Stock on the Exercise Date as reported in The Wall
      Street Journal or another nationally recognized publication or service
      that reports such data, if the Common Stock is traded on one or more
      securities exchanges, or if there is no active trading market, the fair
      market value determined by the Company's Board of Directors, taking into
      consideration the cost basis of the securities, recent transactions in
      securities of the Company, developments concerning the Company, any
      business or financial data and projections of the Company then available,
      and such other factor or factors as the Company's Board of Directors may
      reasonably deem relevant, or if the Warrantholder notifies the Company
      that he, she or it objects to the value determined by the Company's Board
      of Directors pursuant to Section 12(c), the fair market value determined
      as follows: the Warrantholder and the Company shall each select an
      independent qualified appraiser. The two appraisers shall promptly select
      a third independent qualified appraiser, who shall be experienced in such
      appraisals. If the two appraisers are unable to select a third appraiser
      within 30 days, the third appraiser shall be selected by the highest
      official of the Orange County Office of the American Arbitration
      Association. The third appraiser shall determine the Fair Market Value
      within thirty (30) days after such appraiser's selection, which shall
      notify the Warrantholder of such determination. The cost and expense of
      any such appraisal shall be borne equally by such Warrantholder and the
      Company.

              

      

       

      
        	
                13.

              	
                Issue Date, Etc. The
      provisions of this Warrant shall be construed and shall be given effect in
      all respect as if it had been issued and delivered by the Company as of
      the date hereof. This Warrant shall be binding upon any successors or
      assigns of the Company. This Warrant is issued in and shall be governed by
      the laws of the State of
California.

              

      

       

      
        	
                14.

              	
                Registration Rights. The
      Shares issuable upon exercise of this Warrant shall be "Registrable
      Securities" or such other definition of securities entitled to
      registration rights pursuant to the Investor Rights Agreement, dated as of
      November 29, 2007, by and among the Company and certain "Investors" named
      therein, and the Warrantholder shall be entitled, subject to the terms and
      conditions of that agreement, to all registration rights granted to
      holders of Registrable Securities thereunder upon signing a counterpart
      signature page thereto and agreeing to become bound by such agreement as
      an "Investor" thereunder.

              

      

       

      
        	
                15.

              	
                Investment Representations and
      Warranties; Restrictions. The Warrantholder hereof represents and
      warrants that Warrantholder is familiar with the Company, the nature of
      its business, its financial prospects and the merits and risks of an
      investment in the Company, and has the capacity to protect Warrantholder's
      interests, as well as that Warrantholder is acquiring this Warrant, and
      the securities into which this Warrant may be exercised for investment for
      Warrantholder's own account and not with a view to resale in connection
      with any distribution. Warrantholder understands that this Warrant, and
      the securities into which this Warrant may be exercised have not been, and
      will not be registered under the Securities Act of 1933, as amended, or
      qualified under applicable state securities laws, by reason of a specific
      exemption from the registration provisions of the Securities Act and such
      state securities laws, the availability of which depends upon, among other
      things, the bona fide nature of the investment intent and representations
      of the Warrantholder as expressed herein. Warrantholder further
      acknowledges that the Common Stock acquired upon exercise of this Warrant
      may have restrictions upon its resale imposed by state and federal
      securities laws, and agrees that any Common Stock acquired upon exercise
      of this Warrant may be transferred only in compliance with the legend set
      forth on the first page of this
Warrant.

              

      

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      
        	
                16.

              	
                Notices. Unless
      otherwise provided, any notice required or permitted under this Warrant
      shall be given in writing and shall be deemed effectively given upon
      personal delivery to the party to be notified or three (3) days following
      deposit with the United States Post Office, by registered or certified
      mail, postage prepaid and addressed to the party to be notified (or one
      (1) day following timely deposit with a reputable overnight courier with
      next day delivery instructions), or upon confirmation of receipt by the
      sender of any notice by facsimile transmission, at the address indicated
      below or at such other address as such party may designate by ten (10)
      days' advance written notice to the other
  parties.

              

      

       

      
        	 
      	
                To
      Holder:

              	
                Robert
      W. Peach

                
                  7373 N. Scottsdale Road, Suite A-220

                  Scottsdale, Arizona 85253

                  Facsimile: (602) 224-9731

                

              
	 
      	 
      	 
      
	 
      	
                To
      the Company:

              	
                Energy,
      and Power Solutions, Inc.

                150
      Paularino Ave.

                Costa
      Mesa, CA 92626

                Attn:
      Chief Executive Officer

                Facsimile:
      (714) 957-1087

              

      

      

      
        	
                17.

              	
                Termination. Unless
      previously exercised, this Warrant shall automatically terminate on or
      prior to: (i) the effective date of any liquidation, sale, merger, or
      change of control of the Company in one or more series of related
      transactions (the "Exercise
      Event"); or (ii) within ten (10) days after the effective date of a
      Registration Statement and expiration of any applicable "lock-up" period
      covering the Shares. The Company shall notify the Warrantholder at least
      ten (10) days prior to any Exercise
Event.

              

      

       

      (Remainder
of Page Intentionally Left Blank)

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officers thereunto duly authorized.

       

      
        	 
      	
                ENERGY
      AND POWER SOLUTIONS, INC.

                 

                 

                By:           /s/ Peter
      Ludlum_______________________________

                Name:      Peter
      Ludlum

                Its:           Chief
      Financial Officer

              
	 
      	 
      
	 
      	
                WARRANTHOLDER:

                 

                 

                /s/ Robert W.
      Peach_______________________________

                Name:  Robert
      W. Peach

              

      

      

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

     

    EXHIBIT
A

     

    TO STOCK
PURCHASE WARRANT

     

    ASSIGNMENT
FORM

     

    FOR VALUE
RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns
and transfers unto the Assignee named below all of the rights of the undersigned
under this Warrant, with respect to the number of Shares of Common Stock set
forth below:

     

    No. of
Shares: ___________________

     

    Name/Address
of Assignee Of Common Stock:

     

    _________________________________

    _________________________________

    _________________________________

     

    and does
hereby irrevocably constitute and appoint as Attorney ________________________
_______________________ to register such transfer on the books of
______________________ _______________________ for the purpose, with full power
of substitution in the premises. If the number of Shares of Common Stock to
which rights are so transferred does not include all of the Shares of Common
Stock issuable as provided in this Warrant, a new Warrant of like tenor and date
for the balance of the Shares issuable thereunder shall be delivered to the
undersigned.

     

    Date:                      ____________________________

     

    Signature:               __________________________________

     

    Witness:                 __________________________________

     

    NOTICE:
The signature to this Assignment must correspond with the name as written upon
the face of the within Warrant in every particular, without alteration or
enlargement or any change whatever.

     

    The
signature to this assignment must be guaranteed by a national bank or by a firm
having a membership on the New York Stock Exchange.

     

    

    
      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
B

     

    TO STOCK
PURCHASE WARRANT

     

    SUBSCRIPTION
FORM

    (To be
executed only upon exercise of Warrant)

     

    The
undersigned registered owner of this Warrant irrevocably exercises this Warrant
for and purchases ___________ Shares of the Common Stock of Energy and Power
Solutions, Inc.(not more than the number of Shares of Common Stock purchasable
with this Warrant), and herewith makes payment therefor, all at the price and on
the terms and conditions specified in this Warrant and requests that
certificates for the Shares of Common Stock hereby purchased be issued in the
name of and delivered to _________________________________ whose address is
__________________________________________________________ and, if such Shares
shall not include all of the Shares issuable as provided in this Warrant, that a
new Warrant of like tenor and date for the balance of the Shares issuable
thereunder be delivered to the undersigned.

     

    By
signing below, the undersigned represents and warrants that the Shares of Common
Stock will be held by it for investment and for its own account and not with a
view to, or for, resale, transfer or distribution, and that it has no present
intention in participating directly or indirectly in a distribution of the
Common Stock.

     

    The
undersigned agrees that it will not directly or indirectly, offer, transfer,
sell, assign, pledge, hypothecate or otherwise dispose of any of the Common
Stock (or solicit any offers to buy, purchase or otherwise acquire or take a
pledge of any of the Common Stock) except in compliance with the Securities Act
of 1933, as amended, any applicable state securities act and the rules and
regulations thereunder.

     

    The
undersigned further represents and warrants that this Subscription Form has been
duly authorized and executed by the undersigned and that the undersigned has
good title to the portion of the Warrant so exercised free and clear of all
encumbrances, claims liens or other charges and that the execution and delivery
by the undersigned of this Subscription Form will not violate any agreement to
which the undersigned is a party or by which its assets or properties may be
bound.

     

    
      	 
      	
              Dated: _______________

            
	 
      	
              _______________________________

              (Signature
      of Registered Owner)

              _______________________________

              (Street
      Address)

              _______________________________

              (City,
      State and Zip Code)

            

    

    

    NOTICE:
If the person to whom the certificate evidencing Shares of Common Stock is not
the registered owner of the Warrant, then the signature to this Subscription
Form must be guaranteed by a national bank or by a firm having a membership on
the New York Stock Exchange.

     

    

    
      
        
           

        

        
          B-1Unassociated Document

     

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

    

    
      
        
          	 	
                  WARRANT TO PURCHASE
      STOCK

                
	 	 
	
                  Company:

                	
                  Energy
      and Power Solutions, Inc., a California corporation

                
	
                  Number
      of Shares:

                	
                  142,000

                
	
                  Class
      of Stock:

                	
                  Series
      B Preferred

                
	
                  Warrant
      Price:

                	
                  $1.72
      per share

                
	
                  Issue
      Date:

                	
                  December
      31, 2009

                
	
                  Expiration
      Date:

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

                
	
                  Credit
      Facility:

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

                

        

      

    

    

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

    

    ARTICLE
1. EXERCISE.

    

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

    

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

     

    SVB
Warrant Form April 2006

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

    1.6           Treatment of Warrant Upon
Acquisition of Company.

    

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

    

    
       1.6.2       Treatment of Warrant at
Acquisition.

    

    

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

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

    ARTICLE
2. ADJUSTMENTS TO THE
SHARES.

    

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

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

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

    

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

    

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

    

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

    

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

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
3. REPRESENTATIONS AND
COVENANTS OF THE COMPANY.

    

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

    

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

    

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

    
 

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

    

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

    

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

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

    

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
5. MISCELLANEOUS.

    

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

    

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

    

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

    

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

     

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

     

    SVB Warrant Form April 2006

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

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

    

      SVB
Financial Group
  Attn:
Treasury Department

      3003
Tasman Drive, HA 200

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

    

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

    

      Energy
and Power Solutions, Inc. 

      Attn:
Peter Ludlum

      150
Paularino Avenue, Suite A120

      Costa
Mesa, CA 92626 

      Telephone:  714-957-1087

      Facsimile:  714-957-1093

    

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

    

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

    

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

    

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

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

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

     

    [Signature
page follows.]

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          “COMPANY”

                                        	 	
                                          Date:

                                        	December
      30, 2009
	 
      	 	 
      	 
      
	
                                          ENERGY
      AND POWER SOLUTIONS, INC.

                                        	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          By:

                                        	/s/
      Jay B. Zoellner	 	
                                          By:

                                        	/s/
      Peter Ludlum
	 
      	 
      	 	 
      	 
      
	
                                          Name:

                                        	Jay
      B. Zoellner  	 	
                                          Name:

                                        	Peter
      Ludlum
	 
      	
                                          (Print)

                                        	 	 
      	
                                          (Print)

                                        
	
                                          Title:

                                        	
                                          President

                                        	 	
                                          Title:

                                        	
                                          Chief Financial Officer

                                        
	 
      	 	 
      	 
      
	
                                          “HOLDER”

                                        	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                          SILICON
      VALLEY BANK

                                        	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          By:

                                        	/s/
      Kurt Miklinski    	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                          Name:

                                        	Kurt
      Miklinski  	 	 
      	 
      
	 
      	
                                          (Print)

                                        	 	 
      	 
      
	
                                          Title:

                                        	Vice
      President  	 	 
      	 
      

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    SVB Warrant Form April 2006

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    APPENDIX 1

     

    NOTICE OF
EXERCISE

     

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

     

      
[or]

     

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

     

    [Strike
paragraph that does not apply.]

     

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

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	 
	 
      	
                              Holders
      Name

                            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
                              (Address)

                            	 

                    

                  

                

              

            

          

        

      

    

    

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

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              HOLDER:

                            
	 
      	 
      	 
      
	 
      	 
      
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              Name:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              Title:

                            	 
      
	 
      	 
      	 
      
	 
      	
                              (Date):

                            	 
      

                    

                  

                

              

            

          

        

      

    

     

    SVB Warrant Form April 2006

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    APPENDIX 2

    

    ASSIGNMENT

    

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

    

    
      
        	 
      	
                Name:

              	
                SVB
      Financial Group

              
	 
      	
                Address:

              	
                3003
      Tasman Drive (HA-200)

              
	 
      	 
      	
                Santa
      Clara, CA 95054

              
	 
      	 
      	 
      
	 
      	
                Tax
      ID:

              	
                91-1962278

              

      

    

    

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

    

    
      
        
          
            
              
                
                  	 
      	
                          SILICON
      VALLEY BANK

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	
                          Name:

                        	 
      
	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

    

    
      
        
          	
                  Date:

                	 
      

        

      

    

     

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

    

    
      
        
          
            
              
                
                  
                    	 
      	
                            SVB
      FINANCIAL GROUP

                          
	 
      	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	
                            Name:

                          	 
      
	 
      	
                            Title:

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