Document:

Form of Warrant

 Exhibit 10.6 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR
(III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON APRIL 29, 2016 (THE “EXPIRATION DATE”). 

No. [—] 
 POWER SOLUTIONS INTERNATIONAL, INC. 
 WARRANT TO PURCHASE — SHARES OF 
 COMMON STOCK, PAR VALUE $0.001 PER SHARE 

For VALUE RECEIVED,
                     (“Warrantholder”), is entitled to purchase, subject to the provisions of this Warrant, from Power Solutions
International, Inc., a Nevada corporation (the “Company”), at any time after the Automatic Conversion Date and not later than 5:00 P.M., Eastern time, on the Expiration Date (as defined above), at an exercise price per share equal to
$0.40625 (the exercise price in effect being herein called the “Warrant Price”), [—] shares (“Warrant Shares”) of the Company’s Common Stock, par value $0.001 per share
(“Common Stock”). The number of Warrant Shares purchasable upon exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time as described herein. This Warrant is being issued pursuant to the Purchase
Agreement, dated as of April 29, 2011 (the “Purchase Agreement”), among the Company and the initial holders of the Company Warrants (as defined below). Capitalized terms used herein have the respective meanings ascribed thereto in the
Purchase Agreement unless otherwise defined herein. 
 Section 1. Registration. The Company shall maintain books for
the transfer and registration of the Warrant. Upon the initial issuance of this Warrant, the Company shall issue and register the Warrant in the name of the Warrantholder. 
 Section 2. Transfers. As provided herein, this Warrant may be transferred only pursuant to a registration statement filed under the Securities Act of 1933, as amended (the “Securities
Act”), or an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant from time to time upon the books to be maintained by the Company for that purpose, upon surrender hereof for transfer, properly
endorsed or accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company, including, if required by the Company, an opinion of its counsel to the effect

 
that such transfer is exempt from the registration requirements of the Securities Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall
be issued to the transferee and the surrendered Warrant shall be canceled by the Company. 
 Section 3. Exercise of
Warrant. Subject to the provisions hereof, the Warrantholder may exercise this Warrant, in whole or in part, at any time from and after the Automatic Conversion Date and prior to its expiration upon surrender of the Warrant, together with
delivery of a duly executed Warrant exercise form, in the form attached hereto as Appendix A (the “Exercise Agreement”) and payment by certified check or wire transfer of immediately available funds (or, in certain circumstances, by
cashless exercise as provided below) of the aggregate Warrant Price for that number of Warrant Shares then being purchased, to the Company during normal business hours on any Business Day at the Company’s principal executive offices (or such
other office or agency of the Company as it may designate by notice to the Warrantholder). The Warrant Shares so purchased shall be deemed to be issued to the Warrantholder or the Warrantholder’s designee, as the record owner of such shares, as
of the close of business on the date on which this Warrant shall have been surrendered (or the date evidence of loss, theft or destruction thereof and security or indemnity satisfactory to the Company has been provided to the Company), the Warrant
Price shall have been paid and the completed Exercise Agreement shall have been delivered. Certificates for the Warrant Shares so purchased shall be delivered to the Warrantholder within three (3) Business Days after this Warrant shall have
been so exercised. The certificates so delivered shall be in such denominations as may be requested by the Warrantholder and shall be registered in the name of the Warrantholder or such other name as shall be designated by the Warrantholder, as
specified in the Exercise Agreement. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the Warrantholder a new
Warrant representing the right to purchase the number of shares with respect to which this Warrant shall not then have been exercised. As used herein, “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York
City are open for the general transaction of business. Each exercise hereof shall constitute the re-affirmation by the Warrantholder that the representations and warranties contained in Section 5 of the Purchase Agreement are true and correct
in all material respects with respect to the Warrantholder as of the time of such exercise. 
 If (1) a certificate
representing the Warrant Shares is not delivered to the Warrantholder within three (3) Business Days of the due exercise of this Warrant by the Warrantholder and (2) prior to the time such certificate is received by the Warrantholder, the
Warrantholder, or any third party on behalf of the Warrantholder or for the Warrantholder’s account, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Warrantholder of
shares represented by such certificate (a “Buy-In”), then the Company shall pay in cash to the Warrantholder (for costs incurred either directly by such Warrantholder or on behalf of a third party) the amount by which the total purchase
price paid for such shares of Common Stock as a result of the Buy-In (including brokerage commissions, if any) exceeds the proceeds received by such Warrantholder as a result of the sale to which such Buy-In relates. The Warrantholder shall provide
the Company written notice indicating the amounts payable to the Warrantholder in respect of the Buy-In. 

  
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 Section 4. Compliance with the Securities Act of 1933. Except as provided in the
Purchase Agreement, the Company may cause the legend set forth on the first page of this Warrant to be set forth on each Warrant, and a similar legend on any security issued or issuable upon exercise of this Warrant, unless counsel for the Company
is of the opinion as to any such security that such legend is unnecessary. 
 Section 5. Payment of Taxes. The
Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the Warrantholder in respect of which such shares are issued, and in such case, the Company shall not be required to
issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount of such tax or has established to the Company’s reasonable satisfaction that such tax has been paid. The
Warrantholder shall be responsible for income taxes due under federal, state or other law, if any such tax is due. 

Section 6. Mutilated or Missing Warrants. In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company
shall issue in exchange and substitution of and upon surrender and cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of
Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto,
if requested by the Company. 
 Section 7. Reservation of Common Stock. From and after the Automatic Conversion
Date, the Company shall at all applicable times thereafter keep reserved until issued (if necessary) as contemplated by this Section 7, out of the authorized and unissued shares of Common Stock, sufficient shares to provide for the exercise of
the rights of purchase represented by this Warrant. The Company agrees that all Warrant Shares issued upon due exercise of the Warrant shall be, at the time of delivery of the certificates for such Warrant Shares, duly authorized, validly issued,
fully paid and non-assessable shares of Common Stock of the Company. 
 Section 8. Adjustments. Subject and pursuant
to the provisions of this Section 8, the Warrant Price and number of Warrant Shares subject to this Warrant shall be subject to adjustment from time to time as set forth hereinafter. 

(a) If the Company shall, at any time or from time to time while this Warrant is outstanding, pay a dividend or make a distribution on
its Common Stock in shares of Common Stock, subdivide its outstanding shares of Common Stock into a greater number of shares or combine its outstanding shares of Common Stock into a smaller number of shares (including pursuant to the Reverse Split)
or issue by reclassification of its outstanding shares of Common Stock any shares of its capital stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), then
(i) the Warrant Price in effect immediately prior to the date on which such change shall become 

  
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effective shall be adjusted by multiplying such Warrant Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such change and
the denominator of which shall be the number of shares of Common Stock outstanding immediately after giving effect to such change and (ii) the number of Warrant Shares purchasable upon exercise of this Warrant shall be adjusted by multiplying
the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior to the date on which such change shall become effective by a fraction, the numerator of which is shall be the Warrant Price in effect immediately prior to the
date on which such change shall become effective and the denominator of which shall be the Warrant Price in effect immediately after giving effect to such change, calculated in accordance with clause (i) above. Such adjustments shall be made
successively whenever any event listed above shall occur. 
 (b) If any capital reorganization, reclassification of the capital
stock of the Company, consolidation or merger of the Company with another corporation in which the Company is not the survivor, or sale, transfer or other disposition of all or substantially all of the Company’s assets to another corporation
shall be effected, then, as a condition of such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition, lawful and adequate provision shall be made whereby each Warrantholder shall thereafter have the right to
purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets as would have been
issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of the Warrant, had such reorganization, reclassification, consolidation, merger,
sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made with respect to the rights and interests of each Warrantholder to the end that the provisions hereof (including, without limitation,
provision for adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company shall not
effect any such consolidation, merger, sale, transfer or other disposition unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger, or the
corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity, shall assume the obligation to deliver to the Warrantholder, at the last address of the Warrantholder appearing on the books of the Company, such
shares of stock, securities or assets as, in accordance with the foregoing provisions, the Warrantholder may be entitled to purchase, and the other obligations under this Warrant. The provisions of this paragraph (b) shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions. 
 (c) In case
the Company shall fix a payment date for the making of a distribution to all holders of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences
of indebtedness or assets (other than cash dividends or cash distributions payable out of consolidated earnings or earned surplus or dividends or distributions referred to in Section 8(a)), or subscription rights or warrants, the Warrant Price
to be in effect after such payment date shall be determined by multiplying the Warrant Price in effect immediately prior to such payment date 

  
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by a fraction, the numerator of which shall be the total number of shares of Common Stock outstanding multiplied by the Market Price (as defined below) per share of Common Stock immediately prior
to such payment date, less the fair market value (as determined by the Company’s Board of Directors in good faith) of said assets or evidences of indebtedness so distributed, or of such subscription rights or warrants, and the denominator of
which shall be the total number of shares of Common Stock outstanding multiplied by such Market Price per share of Common Stock immediately prior to such payment date. “Market Price” as of a particular date (the “Valuation Date”)
shall mean the following: (a) if the Common Stock is then listed on any national stock exchange, the closing sale price of one share of Common Stock on such exchange on the last trading day prior to the Valuation Date; (b) if the Common
Stock is then quoted on the OTC Bulletin Board (the “Bulletin Board”) or a similar quotation system or association, the closing sale price of one share of Common Stock on the Bulletin Board or such other quotation system or association on
the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low asked price quoted thereon on the last trading day prior to the Valuation Date; or (c) if the Common Stock
is not then listed on a national stock exchange or quoted on the Bulletin Board or such other quotation system or association, the fair market value of one share of Common Stock as of the Valuation Date, as determined in good faith by the Board of
Directors of the Company and the Required Holders (as defined below). If the Common Stock is not then listed on a national securities exchange, the Bulletin Board or such other quotation system or association, the Board of Directors of the Company
shall respond promptly, in writing, to an inquiry by the Warrantholder prior to the exercise hereunder as to the fair market value of a share of Common Stock as determined by the Board of Directors of the Company. In the event that the Board of
Directors of the Company and the Required Holders are unable to agree upon the fair market value in respect of subpart (c) of this paragraph, the Company and the Required Holders shall jointly select an appraiser, who is experienced in such
matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne equally by the Company and the Required Holders. Such adjustment shall be made successively whenever such a payment date is fixed.

 (d) An adjustment to the Warrant Price shall become effective immediately after the payment date in the case of each dividend
or distribution and immediately after the effective date of each other event which requires an adjustment. 
 (e) In the event
that, as a result of an adjustment made pursuant to this Section 8, the Warrantholder shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, the number of such other shares so receivable
upon exercise of this Warrant shall be subject thereafter to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in this Warrant. 

(f) Except as provided in subsection (g) hereof, if and whenever the Company shall issue or sell, or is, in accordance with any of
subsections (f)(l) through (f)(7) hereof, deemed to have issued or sold, any Additional Shares of Common Stock for no consideration or for a consideration per share less than the Warrant Price in effect immediately prior to the time of such issue or
sale, then and in each such case (a “Trigger Issuance”) the then-existing Warrant 

  
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Price, shall be reduced, as of the close of business on the effective date of the Trigger Issuance, to the lowest price per share at which any share of Common Stock was issued or sold or deemed
to be issued or sold; provided, however, that in no event shall the Warrant Price after giving effect to such Trigger Issuance be greater than the Warrant Price in effect prior to such Trigger Issuance. 

For purposes of this subsection (f), “Additional Shares of Common Stock” shall mean all shares of Common Stock issued by the
Company or deemed to be issued pursuant to this subsection (f), other than Excluded Issuances (as defined in subsection (g) hereof). 
 For purposes of this subsection (f), the following subsections (f)(l) to (f)(7) shall also be applicable: 
 (f)(1) Issuance of Rights or Options. In case at any time the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe
for or to purchase, or any options for the purchase of, Common Stock or any stock or security convertible into or exchangeable for Common Stock (such warrants, rights or options being called “Options” and such convertible or exchangeable
stock or securities being called “Convertible Securities”), whether or not such Options or the right to convert or exchange any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is
issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any,
received or receivable by the Company as consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such
Options which relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the conversion or exchange thereof, by (ii) the total number of
shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such Options) shall be less than the Warrant Price in effect immediately prior to
the time of the granting of such Options, then the total number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such
Options shall be deemed to have been issued for such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Warrant
Price. Except as otherwise provided in subsection 8(f)(3), no adjustment of the Warrant Price shall be made upon the actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options or upon the actual issue of such
Common Stock upon conversion or exchange of such Convertible Securities. 

  
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 (f)(2) Issuance of Convertible Securities. In case the Company shall
in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to exchange or convert any such Convertible Securities are immediately exercisable, and the price per share
for which Common Stock is issuable upon such conversion or exchange (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount received or receivable by the Company as
consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the total number of shares of
Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, then the total number of shares of Common Stock issuable
upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of such Convertible Securities and thereafter shall be deemed to be outstanding for
purposes of adjusting the Warrant Price; provided that (a) except as otherwise provided in subsection 8(f)(3), no adjustment of the Warrant Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such
Convertible Securities and (b) no further adjustment of the Warrant Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of
the Warrant Price have been made pursuant to the other provisions of subsection 8(f). 
 (f)(3) Change in
Option Price or Conversion Rate. Upon the happening of any of the following events, namely, if the purchase price provided for in any Option referred to in subsection 8(f)(l) hereof, the additional consideration, if any, payable upon the
conversion or exchange of any Convertible Securities referred to in subsection 8(f)(l) or 8(f)(2), or the rate at which Convertible Securities referred to in subsection 8(f)(l) or 8(f)(2) are convertible into or exchangeable for Common Stock, shall
change at any time (including, but not limited to, changes under or by reason of provisions designed to protect against dilution), the Warrant Price in effect at the time of such event shall forthwith be readjusted to the Warrant Price which would
have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold.
On the termination of any Option for which any adjustment was made pursuant to this subsection 8(f) or any right to convert or exchange Convertible Securities for which any adjustment was made pursuant to this subsection 8(f) (including without
limitation upon the redemption or purchase for consideration of such Convertible Securities by the Company), the Warrant Price then in effect hereunder shall forthwith be changed to the Warrant Price which would have been in effect at the time of
such termination had such Option or Convertible Securities, to the extent outstanding immediately prior to such termination, never been issued. 

  
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 (f)(4) Stock Dividends. Subject to the provisions of this
Section 8(f), in case the Company shall declare or pay a dividend or make any other distribution upon any stock of the Company (other than the Common Stock) payable in Common Stock, Options or Convertible Securities, then any Common Stock,
Options or Convertible Securities, as the case may be, issuable in payment of such dividend or distribution shall be deemed to have been issued or sold without consideration. 

(f)(5) Consideration for Stock. In case any shares of Common Stock, Options or Convertible Securities shall be
issued or sold for cash, the consideration received therefor shall be deemed to be the gross amount received by the Company therefor, before deduction therefrom of any expenses incurred or any underwriting commissions or concessions paid or allowed
by the Company in connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company shall
be deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company, before deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in
connection therewith. In case any Options shall be issued in connection with the issue and sale of other securities of the Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the
parties thereto, such Options shall be deemed to have been issued for such consideration as determined in good faith by the Board of Directors of the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the Company
and, in connection therewith, other Options or Convertible Securities (the “Additional Rights”) are issued, then the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional
Rights (as determined using the Black-Scholes option pricing model or another method mutually agreed to by the Company and the Required Holders). The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the
Warrantholder as to the fair market value of the Additional Rights. In the event that the Board of Directors of the Company and the Required Holders are unable to agree upon the fair market value of the Additional Rights, the Company and the
Required Holders shall jointly select an appraiser, who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the Company and the holders of the Company
Warrants. 
 (f)(6) Record Date. In case the Company shall take a record of the holders of its Common
Stock for the purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (ii) to subscribe for or purchase Common Stock, Options or Convertible Securities, then
such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such
right of subscription or purchase, as the case may be. 

  
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 (f)(7) Treasury Shares. The number of shares of Common Stock
outstanding at any given time shall not include shares owned or held by or for the account of the Company or any of its wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation or retirement thereof) shall be
considered an issue or sale of Common Stock for the purpose of this subsection (f). 
 (g) Anything herein to the contrary
notwithstanding, the Company shall not be required to make any adjustment of the Warrant Price in the case of the issuance of (A) capital stock, Options or Convertible Securities issued to directors, officers, employees or consultants of the
Company in connection with their service as directors of the Company, their employment by the Company or their retention as consultants by the Company pursuant to an equity compensation program approved by the Board of Directors of the Company or
the compensation committee of the Board of Directors of the Company, (B) shares of Common Stock issued upon the conversion or exercise of Options or Convertible Securities issued prior to the date hereof, provided such securities are not
amended after the date hereof to increase the number of shares of Common Stock issuable thereunder or to lower the exercise or conversion price thereof, (C) securities issued pursuant to the Merger Agreement and securities issued upon the
exercise or conversion of those securities, provided such securities are not amended after the date hereof to increase the number of shares of Common Stock issuable thereunder or to lower the exercise or conversion price thereof, (D) securities
issued pursuant to the Purchase Agreement and securities issued upon the exercise or conversion of those securities, and (E) shares of Common Stock issued or issuable by reason of a dividend, stock split or other distribution on shares of
Common Stock (but only to the extent that such a dividend, split or distribution results in an adjustment in the Warrant Price pursuant to the other provisions of this Warrant) (collectively, “Excluded Issuances”). 

(h) Upon any adjustment to the Warrant Price pursuant to Section 8(f) above, the number of Warrant Shares purchasable hereunder
shall be adjusted by multiplying such number by a fraction, the numerator of which shall be the Warrant Price in effect immediately prior to such adjustment and the denominator of which shall be the Warrant Price in effect immediately thereafter.

 (i) To the extent permitted by applicable law and the listing requirements of any stock market or exchange on which the
Common Stock is then listed, the Company from time to time may decrease the Warrant Price by any amount for any period of time if the period is at least twenty (20) days, the decrease is irrevocable during the period and the Board shall have
made a determination that such decrease would be in the best interests of the Company, which determination shall be conclusive. Whenever the Warrant Price is decreased pursuant to the preceding sentence, the Company shall provide written notice
thereof to the Warrantholder at least five (5) days prior to the date the decreased Warrant Price takes effect, and such notice shall state the decreased Warrant Price and the period during which it will be in effect. 

  
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 Section 9. Fractional Interest. The Company shall not be required to issue
fractions of Warrant Shares upon the exercise of this Warrant. If any fractional share of Common Stock would, except for the provisions of the first sentence of this Section 9, be deliverable upon such exercise, the Company, in lieu of
delivering such fractional share, shall pay to the exercising Warrantholder an amount in cash equal to the Market Price of such fractional share of Common Stock on the date of exercise. 

Section 10. [INTENTIONALLY OMITTED] 
 Section 11. Benefits. Nothing in this Warrant shall be construed to give any person, firm or corporation (other than the Company and the Warrantholder) any legal or equitable right, remedy or
claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of the Company and the Warrantholder. 

Section 12. Notices to Warrantholder. Upon the happening of any event requiring an adjustment of the Warrant Price, the
Company shall promptly give written notice thereof to the Warrantholder at the address appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted number of Warrant Shares resulting from such event and setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is based. Failure to give such notice to the Warrantholder or any defect therein shall not affect the legality or validity of the subject adjustment.

 Section 13. Identity of Transfer Agent. The Transfer Agent for the Common Stock as of the date of initial
issuance of this Warrant is Pacific Stock Transfer Company. Upon the appointment of any subsequent transfer agent for the Common Stock or other shares of the Company’s capital stock issuable upon the exercise of the rights of purchase
represented by the Warrant, the Company will mail to the Warrantholder a statement setting forth the name and address of such transfer agent. 
 Section 14. Notices. Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by facsimile, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by
mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier. All notices shall be addressed as follows: if to the Warrantholder, at its address as set forth in the
Company’s books and records and, if to the Company, at the address as follows, or at such other address as the Warrantholder or the Company may designate by ten days’ advance written notice to the other: 

If to the Company: 
 c/o The W Group 
 655 Wheat Lane 

  
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 Wood Dale, Illinois 60191 

Attention: Chief Financial Officer 
 Fax: (630) 350-0103 
 With a copy to: 

Katten Muchin Rosenman LLP 
 525 West Monroe Street 
 Chicago, Illinois 60661-3693 

Attention: Mark D. Wood, Esq. 
 Fax: (312) 577-8858 
 Section 15. Registration Rights. The
initial Warrantholder is entitled to the benefit of certain registration rights with respect to the shares of Common Stock issuable upon the exercise of this Warrant as provided in the Registration Rights Agreement, and any subsequent Warrantholder
may be entitled to such rights. 
 Section 16. Successors. All the covenants and provisions hereof by or for the
benefit of the Warrantholder shall bind and inure to the benefit of its respective successors and assigns hereunder. 

Section 17. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company and, by accepting this Warrant, the Warrantholder, each irrevocably submits to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Warrant and the
transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Warrant.
The Company and, by accepting this Warrant, the Warrantholder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL
HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER. 
 Section 18. [INTENTIONALLY OMITTED] 

Section 19. Cashless Exercise. Notwithstanding any other provision contained herein to the contrary, from and after the
six-month anniversary of the Closing Date and so long as the 

  
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Company is required under the Registration Rights Agreement to have effected the registration of the Warrant Shares for resale to the public pursuant to a Registration Statement (as such term is
defined in the Registration Rights Agreement), if the Warrant Shares may not be freely sold to the public for any reason (including, but not limited to, the failure of the Company to have effected the registration of the Warrant Shares or to have a
current prospectus available for delivery or otherwise, but excluding the period of any Allowed Delay (as defined in the Registration Rights Agreement), the Warrantholder may elect to receive, by the surrender of this Warrant (or such portion of
this Warrant being so exercised) together with a Net Issue Election Notice, in the form annexed hereto as Appendix B, duly executed, to the Company, without the payment by the Warrantholder of the aggregate Warrant Price in respect of the shares of
Common Stock to be acquired, such number of fully paid, validly issued and nonassessable shares of Common Stock as is computed using the following formula: 
 X = Y (A - B) 
 A 

where 
 X = the number of
shares of Common Stock to which the Warrantholder is entitled upon such cashless exercise; 
 Y = the total number of shares of
Common Stock covered by this Warrant for which the Warrantholder has surrendered purchase rights at such time for cashless exercise (including both shares to be issued to the Warrantholder and shares as to which the purchase rights are to be
canceled as payment therefor); 
 A = the “Market Price” of one share of Common Stock as at the date the net issue
election is made; and 
 B = the Warrant Price in effect under this Warrant at the time the net issue election is made.

 Section 20. No Rights as Stockholder. Prior to the exercise of this Warrant, the Warrantholder shall not have or
exercise any rights as a stockholder of the Company by virtue of its ownership of this Warrant. 
 Section 21.
Amendment; Waiver. This Warrant is one of a series of Warrants of like tenor issued by the Company pursuant to the Purchase Agreement and initially covering an aggregate of 24,000,000 shares of Common Stock (collectively, the “Company
Warrants”). Any term of this Warrant may be amended or waived (including the adjustment provisions included in Section 8 of this Warrant) upon the written consent of the Company and the holders of Company Warrants representing at least 66
2/3% of the number of shares of Common Stock then subject to all outstanding Company Warrants (the “Required Holders”); provided, that (x) any such amendment or waiver must apply to all Company Warrants; and (y) the number
of Warrant Shares subject to this Warrant, the Warrant Price and the Expiration Date may not be amended, and the right to exercise this Warrant may not be altered or waived, without the written consent of the Warrantholder. 

  
 -12-

 Section 22. Section Headings. The section headings in this Warrant are for the
convenience of the Company and the Warrantholder and in no way alter, modify, amend, limit or restrict the provisions hereof. 

  
 -13-

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of the 29th
day of April, 2011. 
  

			
	POWER SOLUTIONS INTERNATIONAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 APPENDIX A 
 POWER SOLUTIONS INTERNATIONAL, INC. 
 WARRANT EXERCISE FORM 

To Power Solutions International, Inc.: 
 The undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant (“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price and
surrender of the Warrant,                  shares of Common Stock (“Warrant Shares”) provided for therein, and requests that certificates for the
Warrant Shares be issued as follows: 
  

					
		 	  
 Name
	 	
			
		 	  
	 	
		 	Address	 	
			
		 	  
	 	
			
		 	  
 Federal Tax ID or Social
Security No.
	 	
			
	and delivered by	 	(certified mail to the above address, or	 	
		
		 	(electronically (provide DWAC
Instructions:                                       
 ), or
		
		 	(other (specify):
                                         
                                         
    ).

 and, if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise
of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Warrantholder or the undersigned’s Assignee as below indicated and delivered to the
address stated below. 
  

							
	Dated:             ,     	 		 		 	
	  
 Note: The signature must correspond with the name of the
Warrantholder as written on the first page of the Warrant in every particular, without alteration or enlargement or any change whatever, unless the Warrant
 has been assigned.
	 		 	  
 Signature:
	 	  
  

 
  

Name (please print)

				
		 		 		 	  

		 		 		 	  

		 		 		 	Address
		 		 		 	
		 		 		 	  
 Federal Identification
or

		 		 		 	Social Security No.
				
		 		 		 	Assignee:
		 		 		 	  

		 		 		 	  

		 		 		 	  

 APPENDIX B 
 POWER SOLUTIONS INTERNATIONAL, INC. 
 NET ISSUE ELECTION NOTICE 

To: Power Solutions International, Inc. 

Date:[                    ] 

The undersigned hereby elects under Section 19 of this Warrant to surrender the right to purchase
[                ] shares of Common Stock pursuant to this Warrant and hereby requests the issuance of
[                ] shares of Common Stock. The certificate(s) for the shares issuable upon such net issue election shall be issued in the name of the undersigned
or as otherwise indicated below. 
  

	
	  

	Signature
	
	  

	Name for Registration
	
	  

	Mailing AddressWarrant

 Exhibit 10.7 
 POWER SOLUTIONS INTERNATIONAL, INC. 
 COMMON STOCK WARRANT 

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES REPRESENTED BY THIS WARRANT MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS OR (B) AN OPINION, IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY, OF LEGAL COUNSEL ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. ANY TRANSFEREE OF THE
SECURITIES SHOULD CAREFULLY REVIEW THE TERMS HEREOF. THE SECURITIES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON THE FACE HEREOF. 
 This certifies that, for good and valuable consideration, receipt of which is hereby acknowledged, Roth Capital Partners, LLC (“Holder”) is entitled to purchase, subject to the terms and
conditions of this Warrant, from Power Solutions International, Inc., a Nevada corporation (the “Company”), 3,360,000 fully paid and nonassessable shares of the Company’s common stock, $0.001 par value per share
(“Common Stock”), in accordance with Section 2 hereof during the period commencing on April 29, 2011 (the “Commencement Date”) and ending at 5:00 p.m. California time, April 29, 2016 (the
“Expiration Date”), at which time this Warrant will expire and become void unless earlier terminated as provided herein. The shares of Common Stock of the Company for which this Warrant is exercisable, as adjusted from time to time
pursuant to the terms hereof, are hereinafter referred to as the “Shares.” Capitalized terms used and not defined elsewhere in this Warrant have the respective meanings assigned to such terms in Section 17 hereof. 

1. Exercise Price. The initial purchase price for the Shares shall be $0.4125 per share. Such price shall be subject to
adjustment pursuant to the terms hereof (such price, as adjusted from time to time, is hereinafter referred to as the “Exercise Price”). 
 2. Exercise and Payment. 
 (a) Cash Exercise. At any
time from and after the date of effectiveness of the Reverse Split (as defined in Section 3), this Warrant may be exercised, in whole or in part, from time to time by the Holder, during the term hereof, by surrender of this Warrant and a notice
of exercise in the form annexed hereto as Exhibit A (each, a “Notice of Exercise”) duly completed and executed by the Holder to the Company at the principal executive offices of the Company, together with payment in the amount
obtained by multiplying the Exercise Price then in effect by the number of Shares thereby purchased, as designated in the Notice of Exercise. Payment may be in cash or by check payable to the order of the Company. 

 (b) Net Issuance. In lieu of payment of the Exercise Price described in
Section 2(a), the Holder may elect to receive, without the payment by the Holder of any additional consideration, shares equal to the value of this Warrant or any portion hereof by the surrender of this Warrant or such portion to the Company,
with a net issue election notice in the form annexed hereto as Exhibit B (each, a “Net Issuance Election”) duly executed, at the principal executive offices of the Company. Thereupon, the Company shall issue to the Holder such
number of fully paid and nonassessable Shares as is computed using the following formula: 
  

					
	where:	  	X = Y	  	(A-B)
		  		  	    A
			
		  	X =	  	the number of Shares to be issued to the Holder pursuant to this Section 2(b).
			
		  	Y =	  	the number of Shares covered by this Warrant in respect of which the Net Issuance Election is made pursuant to this Section 2(b).
			
		  	A =	  	the fair market value of one share of Common Stock, as determined in accordance with the provisions of this Section 2(b).
			
		  	B =	  	the Exercise Price in effect under this Warrant at the time the Net Issuance Election is made pursuant to this Section 2(b).

For purposes of this Section 2(b), the “fair market value” per share of the Common Stock shall mean: 

(i) if the Common Stock is traded on a national securities exchange or admitted to unlisted trading privileges on such an exchange, or
is quoted in an over-the-counter quotation system, the last reported sale price of the Common Stock on such exchange or quotation system on the last Trading Day before the effective date of exercise of the net issuance election or, if no such sale
is made on such Trading Day, the mean of the closing bid and asked prices such Trading Day on such exchange or over-the-counter quotation system; or 
 (ii) if the Common Stock is not so listed or admitted to unlisted trading privileges or quoted in an over-the-counter quotation system or bid and ask prices are not reported, the price per share of Common
Stock which the Company could obtain from a willing buyer for shares sold by the Company for authorized but unissued shares of Common Stock, as such price shall be determined by mutual agreement of the Company and the Holder. 

3. Reservation of Shares. From and after the date of effectiveness of the Reverse Split, the Company shall reserve and keep
reserved for issuance and delivery upon exercise of this Warrant such number of shares of Common Stock or other shares of capital stock of the Company from time to time issuable upon exercise of this Warrant. All such shares shall be duly
authorized, and when issued upon such exercise, shall be validly issued, fully paid and non-assessable, free and clear of all liens, security interests, charges and other encumbrances with respect to the issuance thereof and free and clear of all
preemptive rights. 

  
 2 

 For purposes of this Warrant, “Reverse Split” means a reverse stock split of the
Company’s outstanding shares of Common Stock in a ratio of One to Thirty-two (1:32), which has been approved by a majority of the Company’s voting shares (which includes the voting rights of the Series A Preferred Stock, as defined in that
certain Certificate of Designation of Series A Convertible Preferred Stock of the Company) subsequent to a validly filed Schedule 14A Proxy Statement filing; provided, that, such reverse stock split may be effected by providing that each thirty-two
(32) shares of Common Stock shall be exchanged for one share of common stock of the surviving entity in the Migratory Merger, in which case, the consummation of the Migratory Merger shall constitute the Reverse Split. 

4. Delivery of Stock Certificates; Issuance of New Warrant. Within a reasonable time after exercise, in whole or in part,
of this Warrant, the Company shall issue in the name of and deliver to the Holder a certificate or certificates for the number of fully paid and nonassessable shares of Common Stock which the Holder shall have requested in the Notice of Exercise or
Net Issuance Election, as applicable. If this Warrant is exercised in part, the Company shall deliver to the Holder a new Warrant for the unexercised portion of this Warrant at the time of delivery of such stock certificate or certificates.

 5. No Fractional Shares. No fractional shares or scrip representing fractional shares will be issued upon
exercise of this Warrant. If upon any exercise of this Warrant a fraction of a share results, the Company will pay the Holder the difference between the cash value of the fractional share and the portion of the Exercise Price allocable to the
fractional share. 
 6. Listing. The Company shall use its reasonable best efforts to (i) cause all of the
Shares from time to time issuable upon the exercise of this Warrant to be quoted or listed (as applicable) on the Principal Market at all times on which any other shares of Common Stock are quoted or listed thereon; and (ii) cause all of the
other shares of capital stock of the Company issuable upon exercise of this Warrant to be quoted or listed (as applicable) on each national securities exchange or automated quotation system, if any, upon which any other shares of the same class of
such other shares of capital stock of the Company are quoted or listed, at all times on which such other shares of the same class are so quoted or listed. 
 7. Charges, Taxes and Expenses. The Company shall pay all transfer taxes or other incidental charges, if any, in connection with the transfer of the Shares purchased pursuant to the exercise
hereof from the Company to the Holder. 
 8. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by
the Company of evidence reasonably 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 the Company, 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 and dated as of such cancellation, in lieu of this
Warrant. 
 9. Saturdays, Sundays, Holidays, Etc. If the last or appointed day for the taking of any action or the
expiration of any right required or granted herein shall be a day other than a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 

  
 3 

 10. Adjustment of Exercise Price and Number of Shares. The Exercise Price and
the number of and kind of securities purchasable upon exercise of this Warrant shall be subject to adjustment from time to time as follows: 
 (a) Subdivisions, Combinations and Other Issuances. If the Company shall at any time after the Commencement Date but prior to the expiration of this Warrant subdivide its outstanding
securities as to which purchase rights under this Warrant exist, by split-up or otherwise, or combine its outstanding securities as to which purchase rights under this Warrant exist (including pursuant to the Reverse Split), the number of Shares as
to which this Warrant is exercisable as of the date of such subdivision, split-up or combination will be proportionately increased in the case of a subdivision, or proportionately decreased in the case of a combination. Appropriate adjustments also
will be made to the Exercise Price, but the aggregate purchase price payable for the total number of Shares purchasable under this Warrant as of such date shall remain the same. 

(b) Stock Dividend. If at any time after the Commencement Date but prior to the expiration of this Warrant the Company
declares a dividend or other distribution on Common Stock payable in Common Stock or Convertible Securities without payment of any consideration by such holder for the additional shares of Common Stock or the Convertible Securities (including the
additional shares of Common Stock issuable pursuant to the terms thereof), then the number of Shares of Common Stock for which this Warrant may be exercised shall be increased as of the record date (or the date of such dividend distribution if no
record date is set) for determining which holders of Common Stock shall be entitled to receive such dividend, in proportion to the increase in the number of outstanding shares (and shares of Common Stock issuable pursuant to the terms of the
Convertible Securities) of Common Stock as a result of such dividend, and the Exercise Price shall be adjusted so that the aggregate amount payable for the purchase of all the Shares issuable hereunder immediately after the record date (or on the
date of such distribution, if applicable) for such dividend will equal the aggregate amount so payable immediately before such record date (or on the date of such distribution, if applicable). As used herein, “Convertible
Securities” means evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for, with or without payment of additional consideration, shares of Common Stock, either immediately or upon the
arrival of a specified date or the happening of a specified event or both. 
 (c) Other Distributions. If at any
time after the Commencement Date but prior to the expiration of this Warrant the Company distributes to holders of its Common Stock, other than as part of its dissolution or liquidation or the winding up of its affairs, any shares of its capital
stock, any evidence of indebtedness or any of its assets (other than cash, Common Stock or Convertible Securities), then the Company may, at its option, either (i) decrease the Exercise Price of this Warrant by an appropriate amount based upon
the value distributed on each share of Common Stock as determined in good faith by the Company’s board of directors or (ii) provide by resolution of the Company’s board of directors that on exercise of this Warrant, the Holder hereof
shall thereafter be entitled to receive, in addition to the Shares otherwise receivable on exercise hereof, the number of shares or other securities or property which would have been received had this Warrant at the time been exercised. 

  
 4 

 (d) Merger. If at any time after the Commencement Date but prior to the
expiration of this Warrant there shall be a merger or consolidation of the Company with or into another corporation when the Company is not the surviving corporation, then the Holder shall thereafter be entitled to receive upon exercise of this
Warrant, during the period specified herein and upon payment of the aggregate Exercise Price then in effect, the number of shares or other securities or property of the successor corporation resulting from such merger or consolidation, which would
have been received by Holder for the Shares subject to this Warrant had this Warrant been exercised at such time. 
 (e)
Reclassification, Etc. If at any time after the Commencement Date but prior to the expiration of this Warrant there shall be a change or reclassification of the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, then the Holder shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect,
the number of shares or other securities or property resulting from such change or reclassification which would have been received by Holder for the Shares subject to this Warrant had this Warrant been exercised at such time. 

11. Notice of Adjustments; Notices. Whenever the Exercise Price or number of Shares purchasable hereunder is adjusted
pursuant to Section 10 hereof, the Company must execute and deliver to the Holder in accordance with Section 18(c) hereof a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment,
the method by which such adjustment was calculated and the Exercise Price and number of and kind of securities purchasable hereunder after giving effect to such adjustment, and must cause a copy of such certificate to be mailed (by first class mail,
postage prepaid) to the Holder. 
 12. Rights As Stockholder; Notice to Holders. Nothing contained in this Warrant
will be construed as conferring upon the Holder or Holder’s permitted transferees the right to vote or to receive dividends or to consent or to receive notice as a shareholder in respect of any meeting of shareholders for the election of
directors of the Company or of any other matter, or any rights whatsoever as shareholders of the Company. The Company will notify the Holder in accordance with Section 18(c) hereof if at any time prior to the expiration or exercise in full of
this Warrant, any of the following events occur: 
 (a) a dissolution, liquidation or winding up of the Company shall be
proposed; 
 (b) a capital reorganization or reclassification of the Common Stock (other than a subdivision or combination of
the outstanding Common Stock and other than a change in the par value of the Common Stock) or any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or change of Common Stock outstanding) or in the case of any sale or conveyance to another corporation of the property of the Company as an entirety or substantially as an entirety; or

  
 5 

 (c) a taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend) or other distribution, any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other rights. 
 Such giving of notice will be simultaneous with the giving of notice
to holders of Common Stock. Such notice must specify the record date or the date of closing the stock transfer books, as the case may be. Failure to provide such notice will not affect the validity of any action taken in connection with such
dividend, distribution or subscription rights, or proposed merger, consolidation, sale, conveyance, dissolution, liquidation or winding up. 
 13. Restricted Securities. The Holder understands that this Warrant and, subject to the last sentence of this Section 13, the Shares purchasable hereunder constitute “restricted
securities” under the federal securities laws inasmuch as they are, or will be, acquired from the Company in transactions not involving a public offering and accordingly may not, under such laws and applicable regulations, be resold or
transferred without registration under the Securities Act of 1933, as amended (the “1933 Act”), or an applicable exemption from such registration. Holder further acknowledges that a legend to the foregoing effect shall be placed on
any Shares issued to the Holder upon exercise of this Warrant. Notwithstanding the foregoing, if a Holder exercises a net issuance under Section 2(b), the Shares acquired upon such exercise will be deemed to be purchased under
Section 3(a)(9) of the 1933 Act, and for purposes of Rule 144 under the 1933 Act, Holder will be entitled to “tack” its holding period of this Warrant onto the holding period for such Shares. 

14. Certification of Investment Purpose. Holder covenants and agrees that, at the time of exercise hereof (and as a
condition to the Company’s issuance of Shares upon such exercise), it shall deliver to the Company a written certification executed by the Holder that (i) the securities acquired by it upon exercise hereof are for the account of such
Holder and acquired for investment purposes only and that such securities are not acquired with a view to, or for sale in connection with, any distribution thereof, and (ii) except in connection with a net issuance under Section 2(b),
Holder is an “Accredited Investor” as defined in Rule 501(a) of Regulation D as promulgated by the SEC under the 1933 Act. 
 15. Disposition of Shares; Transferability. 
 (a) Holder hereby
agrees not to make any disposition of any Shares purchased hereunder unless and until: 
 (i) Holder shall
have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition; and 
 (ii) Holder shall have complied with all requirements of this Warrant applicable to the disposition of the Shares. 
 The Company shall not be required (i) to transfer on its books any Shares which have been sold or transferred in violation of the provisions of this Section 15 or (ii) to treat as the owner
of the Shares, or otherwise to accord voting or dividend rights to, any transferee to whom the Shares have been transferred in contravention of the terms of this Warrant. 

  
 6 

 (b) Transfer. This Warrant shall be transferable only on the books of the
Company maintained at its principal office in Wood Dale, Illinois, or wherever its principal office may then be located, upon delivery thereof duly endorsed by the Holder or by its duly authorized attorney or representative, accompanied by proper
evidence of succession, assignment or authority to transfer as reasonably requested by the Company. Upon any registration of transfer, the Company shall execute and deliver a new Warrant or new Warrants registered in the name of the permitted
transferee of this Warrant. 
 (c) Limitations on Transfer. This Warrant may not be sold, transferred, assigned or
hypothecated (any such action, a “Transfer”) by the Holder except to (i) one or more persons, each of whom on the date of transfer is an officer of the Holder; (ii) a general partnership or general partnerships, the general
partners of which are the Holder and one or more persons, each of whom on the date of transfer is an officer of the Holder; (iii) a successor to the Holder in any merger or consolidation; (iv) a purchaser of all or substantially all of the
Holder’s assets; or (v) any person receiving this Warrant from one or more of the persons listed in this Section 15(c) at such person’s death pursuant to will, trust or the laws of intestate succession. This Warrant may be
divided or combined, upon request to the Company by the Holder, into a certificate or certificates representing the right to purchase the same aggregate number of Shares. If at the time of a Transfer, a registration statement is not in effect to
register this Warrant, the Company may require the Holder to make such representations and deliver such legal opinions, and may place such legends on certificates representing this Warrant, as may be reasonably required in the opinion of counsel to
the Company to permit a Transfer without such registration. 
 16. Registration Rights. The Holder shall be
entitled to the benefits of the Registration Rights Agreement, dated as of April 29, 2011, among the Company, the Holder, and the other Investors named therein, with respect to the filing of a registration statement to register resales of
Shares issued or issuable upon exercise of this Warrant. 
 17. Definitions. For purposes of this Warrant, the
following terms shall have the following meanings: 
 (a) “Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in the city of Chicago, Illinois are authorized or required by law to remain closed. 
 (b) “Migratory Merger” means the merger of the Company with and into a wholly-owned Subsidiary of the Company effected for the purpose of changing the Company’s jurisdiction
of incorporation from Nevada to Delaware. 
 (c) “Principal Market” means the OTC Bulletin Board (or
successor thereto); provided, however, that, if after the Commencement Date the Common Stock is listed on a U.S. national securities exchange, the “Principal Market” shall mean such U.S. national securities exchange;
provided, further, that if the Common Stock is not listed on the OTC Bulletin Board (or successor thereto) or a U.S. national securities exchange, “Principal Market” shall mean the principal securities exchange or
trading market for the Common Stock. 

  
 7 

 (d) “SEC” means the United States Securities and Exchange
Commission. 
 (e) “Trading Day” means any day on which the Common Stock is traded on the Principal
Market; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade, or actually trades, on the Principal Market for less than 4.5 hours. 

18. Miscellaneous. 
 (a) Construction. Unless the context indicates otherwise, the term “Holder” shall include any permitted transferee or transferees of this Warrant pursuant to
Section 15(b), and the term “Warrant” shall include any and all warrants outstanding pursuant to this Warrant, including those evidenced by a certificate or certificates issued upon division, exchange, substitution or transfer
pursuant to Section 15. 
 (b) Restrictions. By receipt of this Warrant, the Holder makes the same
representations with respect to the acquisition of this Warrant as the Holder is required to make upon the exercise of this Warrant and acquisition of the Shares purchasable hereunder as required by Section 14 hereof. 

(c) 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:	  	Roth Capital Partners LLC
		  	24 Corporate Plaza
		  	Newport Beach, California 92660
		  	Attention: Managing Director
		
	To the Company:	  	Power Solutions International, Inc.
		  	655 Wheat Lane
		  	Wood Dale, Illinois 60191
		  	Attention: Chief Financial Officer

 (d)
Governing Law. This Warrant shall be governed by and construed under the laws of the State of Illinois as applied to agreements among Illinois residents entered into and to be performed entirely within Illinois. 

(e) Entire Agreement. This Warrant, the exhibits and schedules hereto, and the documents referred to herein, constitute the
entire agreement and understanding of the parties 

  
 8 

 
hereto with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings, whether oral or written, between the parties hereto with respect to
the subject matter hereof. 
 (f) Binding Effect. This Warrant and the various rights and obligations arising
hereunder shall inure to the benefit of and be binding upon the Company and its successors and assigns, and Holder and its successors and assigns. 
 (g) Waiver; Consent. This Warrant may not be changed, amended, terminated, augmented, rescinded or discharged (other than by performance), in whole or in part, except by a writing executed
by the parties hereto, and no waiver of any of the provisions or conditions of this Warrant or any of the rights of a party hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or
consented thereto. 
 (h) Severability. If one or more provisions of this Warrant are held to be unenforceable
under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and the balance shall be enforceable in accordance with its terms. 

(i) Counterparts. This Warrant may be signed in several counterparts, each of which shall constitute an original.

 [Signatures Follow on Next Page] 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Common Stock Warrant effective as
of the date hereof. 
  

							
	DATED: April 29, 2011	 		 	THE COMPANY:
			
		 		 	POWER SOLUTIONS INTERNATIONAL, INC., a Nevada corporation
				
		 		 	By:	 	 /s/ Ryan A. Neely

		 		 	Name:	 	Ryan A. Neely
		 		 	Its:	 	President
			
		 		 	HOLDER:
			
		 		 	ROTH CAPITAL PARTNERS, LLC, a California limited liability company
				
		 		 	By:	 	 /s/ Eric Rindahl

		 		 	Name:	 	Eric Rindahl
		 		 	Its:	 	Managing Director

 [Signature Page to
Placement Agent Warrant] 

 Exhibit A 
 NOTICE OF EXERCISE 
 To: Power Solutions International, Inc. 

1. The undersigned hereby elects to purchase
                 shares of common stock, $0.001 par value per share (“Stock”), of Power Solutions International, Inc., a Nevada corporation (the
“Company”), pursuant to the terms of the attached Warrant (the “Warrant”), and tenders herewith payment of the purchase price pursuant to the terms of the Warrant. 

2. Attached as Exhibit A is an investment representation letter addressed to the Company and executed by the undersigned as required by
Section 14 of the Warrant. 
 3. Please issue certificates representing the shares of Stock purchased hereunder in the
names and in the denominations indicated on Exhibit A attached hereto. 
 4. Please issue a new Warrant for the unexercised
portion of the attached Warrant, if any, in the name of the undersigned. 
  

							
		 		 	Holder:	 	  

 

							
		 		 	  

	Dated:	 	____________                    	 	By:	 	  

		 		 	Its:	 	  

 Exhibit B 
 NET ISSUANCE ELECTION NOTICE 
 To: Power Solutions International, Inc. 

1. The undersigned hereby elects under Section 2 of the attached Warrant to surrender the right to purchase
                 shares of common stock, $0.001 par value per share (“Stock”), of Power Solutions International, Inc., a Nevada corporation (the
“Company”), pursuant to the terms of the attached Warrant. 
 2. Attached as Exhibit A is an investment representation
letter addressed to the Company and executed by the undersigned as required by Section 14 of the Warrant. 
 3. Please
issue certificates representing the shares of Stock purchased hereunder in the names and in the denominations indicated on Exhibit A attached hereto. 
 4. Please issue a new Warrant for the unexercised portion of the attached Warrant, if any, in the name of the undersigned. 
  

							
		 		 	Holder:	 	  

 

							
		 		 	  

	Dated:	 	____________                    	 	By:	 	  

		 		 	Its:

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