Document:

Exhibit 10.1

 

 

 

 

 

ENERPULSE TECHNOLOGIES, INC. WARRANT
AGENCY AGREEMENT

 

WARRANT AGENCY AGREEMENT
(this “Warrant Agreement”) made as of May 16, 2014 (the “Issuance Date”), between Enerpulse Technologies,
Inc., a Nevada corporation, with offices at 2451 Alamo Ave SE, Albuquerque, New Mexico, 87106 (“Company”), and Securities
Transfer Corporation, with offices at 2591 Dallas Parkway, Suite 102, Frisco, TX 75034 (“Warrant Agent”).

 

WHEREAS, the Company
is engaged in a public offering (the “Offering”) of Common Stock and Warrants and, in connection therewith, has determined
to issue and deliver up to 5,000,000 Warrants (the “Warrants”) to the public investors, with each such Warrant evidencing
the right of the holder thereof to purchase one and one-half share of common stock, par value $0.001 per share, of the Company's
Common Stock (the “Common Stock”) for $0.96, subject to adjustment as described herein; and

 

WHEREAS,
the Company has filed with the Securities and Exchange Commission a Registration Statement, No. 333-191471 on
Form S-1 (as the same may be amended from time to time, the “Registration Statement”) for the registration, under the
Securities Act of 1933, as amended (the “Act”) of, among other securities, the Warrants and the Common Stock issuable
upon exercise of the Warrants (the “Warrant Shares”), and such Registration Statement was declared effective on May
13, 2014; and

 

WHEREAS, the Company
desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance,
registration, transfer, exchange and exercise of the Warrants; and

 

WHEREAS, the Company
desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the
respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS, all acts and
things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned
by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained, the parties hereto agree as follows:

 

1.          Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this
Warrant Agreement.

 

2.           Warrants.

 

2.1          Form
of Warrant. Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit A hereto,
the provisions of which are incorporated herein, and shall be signed by, or bear the facsimile signature of, the Chief Executive
Officer, President, Chief Financial Officer or Treasurer, Secretary or Assistant Secretary of the Company and shall bear a facsimile
of the Company’s seal. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased
to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same
effect as if he or she had not ceased to be such at the date of issuance. All of the Warrants shall initially be represented by
one or more book-entry certificates (each a “Book-Entry Warrant Certificate”).

 

2.2.         Effect
of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Warrant Agreement, a Warrant shall
be invalid and of no effect and may not be exercised by the holder thereof.

 

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2.3.         Registration.

 

2.3.1.          Warrant
Register. The Warrant Agent shall maintain books (“Warrant Register”), for the registration of original issuance
and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and
register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions
delivered to the Warrant Agent by the Company. To the extent the Warrants are DTC eligible as of the Issuance Date, all of the
Warrants shall be represented by one or more Book-Entry Warrant Certificates deposited with the Depository Trust Company (the “Depository”)
and registered in the name of Cede & Co., a nominee of the Depository. Ownership of beneficial interests in the Book-Entry
Warrant Certificates shall be shown on, and the transfer of such ownership shall be effected through, records maintained (i) by
the Depository or its nominee for each Book-Entry Warrant Certificate; (ii) by institutions that have accounts with the Depository
(such institution, with respect to a Warrant in its account, a “Participant”); or (iii) directly on the book-entry
records of the Warrant Agent with respect only to owners of beneficial interests that represent such direct registration.

 

If the Warrants are
not DTC Eligible as of the Issuance Date or the Depository subsequently ceases to make its book-entry settlement system available
for the Warrants, the Company may instruct the Warrant Agent regarding making other arrangements for book-entry settlement within
ten (10) days after the Depository ceases to make its book-entry settlement available. In the event that the Company does not make
alternative arrangements for book-entry settlement within ten (10) days or the Warrants are not eligible for, or it is no longer
necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depository
to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant
Agent to deliver to the Depository definitive Warrant Certificates in physical form evidencing such Warrants. Such definitive Warrant
Certificates shall be in substantially the form annexed hereto as Exhibit A.

 

2.3.2.          Beneficial
Owner; Registered Holder. The term “beneficial owner” shall mean any person in whose name ownership of a beneficial
interest in the Warrants evidenced by a Book-Entry Warrant Certificate is recorded in the records maintained by the Depository
or its nominee. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem
and treat the person in whose name such Warrant shall be registered upon the Warrant Register (“registered holder”),
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other
writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise
thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.4           Uncertificated
Warrants. Notwithstanding the foregoing and anything else herein to the contrary, the Warrants may be issued in uncertificated
form.

 

3.           Terms
and Exercise of Warrants.

 

3.1.         Exercise
Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the registered holder thereof, subject to the provisions
of such Warrant and of this Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated therein,
at the price of $0.96 per one and one-half share, subject to the subsequent adjustments provided in Section 4 hereof. The term
“Exercise Price” as used in this Warrant Agreement refers to the price per one and one-half share at which Common Stock
may be issued at the time a Warrant is exercised.

 

3.2.         Duration
of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on the Issuance Date
and terminating at 5:00 P.M., New York City time on May 21, 2019 (“Expiration Date”). Each Warrant not exercised on
or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant
Agreement shall cease at the close of business on the Expiration Date.

 

3.3.         Exercise
of Warrants.

 

3.3.1.          Exercise
and Payment. A registered holder may exercise a Warrant by delivering, not later than 5:00 P.M., New York time, on any business
day during the Exercise Period (the “Exercise Date”) to the Warrant Agent at its corporate trust department (i) the
Warrant Certificate evidencing the Warrants to be exercised, or, in the case of a Book-Entry Warrant Certificate, the Warrants
to be exercised (the “Book-Entry Warrants”) shown on the records of the Depository to an account of the Warrant Agent
at the Depository designated for such purpose in writing by the Warrant Agent to the Depository from time to time, (ii) an election
to purchase the Warrant Shares underlying the Warrants to be exercised (“Election to Purchase”), properly completed
and executed by the registered holder on the reverse of the Warrant Certificate or, in the case of a Book-Entry Warrant Certificate,
properly delivered by the Participant in accordance with the Depository’s procedures, and (iii) the Exercise Price for each
Warrant to be exercised in lawful money of the United States of America by certified or official bank check or by bank wire transfer
in immediately available funds.

 

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If any of (A) the Warrant Certificate or
the Book-Entry Warrants, (B) the Election to Purchase, or (C) the Exercise Price therefor, is received by the Warrant Agent after
5:00 P.M., New York time, on the specified Exercise Date, the Warrants will be deemed to be received and exercised on the business
day next succeeding the Exercise Date. If the date specified as the Exercise Date is not a business day, the Warrants will be deemed
to be received and exercised on the next succeeding day that is a business day. If the Warrants are received or deemed to be received
after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned
to the registered holder or Participant, as the case may be, as soon as practicable. In no event will interest accrue on funds
deposited with the Warrant Agent in respect of an exercise or attempted exercise of Warrants. The validity of any exercise of Warrants
will be determined by the Company in its sole discretion and such determination will be final and binding upon the registered holder
or Participant, as applicable, and the Warrant Agent. Neither the Company nor the Warrant Agent shall have any obligation to inform
a registered holder or the Participant, as applicable, of the invalidity of any exercise of Warrants.

 

The Warrant Agent shall
deposit all funds received by it in payment of the Exercise Price in the account of the Company maintained with the Warrant Agent
for such purpose and shall advise the Company via email or telephone at the end of each day on which funds for the exercise of
the Warrants are received of the amount so deposited to its account. The Warrant Agent shall promptly confirm by email or telephone
advice to the Company.

 

3.3.2.          Issuance
of Certificates. The Warrant Agent shall, by 3:00 P.M., Texas Time on the business day following the Exercise Date of any Warrant,
advise the Company or the transfer agent and registrar in respect of (a) the Warrant Shares issuable upon such exercise as to the
number of Warrants exercised in accordance with the terms and conditions of this Warrant Agreement, (b) the instructions of each
registered holder or Participant, as the case may be, with respect to delivery of the Warrant Shares issuable upon such exercise,
and the delivery of definitive Warrant Certificates, as appropriate, evidencing the balance, if any, of the Warrants remaining
after such exercise, (c) in case of a Book-Entry Warrant Certificate, the notation that shall be made to the records maintained
by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance,
if any, of the Warrants remaining after such exercise and (d) such other information as the Company or such transfer agent and
registrar shall reasonably require.

 

The Company shall,
by 5:00 P.M., New York time, on the third business day next succeeding the Exercise Date of any Warrant and the clearance of the
funds in payment of the Exercise Price, execute, issue and deliver to the Warrant Agent, the Warrant Shares to which such registered
holder or Participant, as the case may be, is entitled, in fully registered form, registered in such name or names as may be directed
by such registered holder or the Participant, as the case may be. Upon receipt of such Warrant Shares, the Warrant Agent shall,
by 5:00 P.M., New York time, on the third Business Day next succeeding such Exercise Date, transmit such Warrant Shares to or upon
the order of the registered holder or Participant, as the case may be.

 

In lieu of delivering
physical certificates representing the Warrant Shares issuable upon exercise, provided the Company’s transfer agent is participating
in the Depository’s Fast Automated Securities Transfer program, the Company shall use its reasonable best efforts to cause
its transfer agent to electronically transmit the Warrant Shares issuable upon exercise to the Depository by crediting the account
of the Depository or of the Participant through its Deposit Withdrawal Agent Commission system. The time periods for delivery described
in the immediately preceding paragraph shall apply to the electronic transmittals described herein.

 

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3.3.3.          Valid
Issuance. All shares of Common Stock issued upon the proper exercise of a Warrant in conformity with this Warrant Agreement
shall be validly issued, fully paid and nonassessable.

 

3.3.4.          No
Fractional Exercise. Warrants may be only be exercised such that a whole number of Warrant Shares is issuable upon exercise;
provided, however, that a holder may request the exercise of all of its remaining Warrants even if the aggregate number of Warrant
Shares issuable upon such exercise as calculated hereunder includes a fractional Warrant Share. No fractional Warrant Shares are
to be issued upon the exercise of Warrants, but rather the number of Warrant Shares to be issued shall be rounded up or down, as
applicable, to the nearest whole number. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised, a
new Warrant Certificate for the number of unexercised Warrants remaining shall be executed by the Company and countersigned by
the Warrant Agent as provided in Section 2 of this Warrant Agreement, and delivered to the holder of this Warrant Certificate at
the address specified on the books of the Warrant Agent or as otherwise specified by such registered holder. If fewer than all
the Warrants evidenced by a Book-Entry Warrant Certificate are exercised, a notation shall be made to the records maintained by
the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance of
the Warrants remaining after such exercise.

 

3.3.5           No
Transfer Taxes. The Company shall not be required to pay any stamp or other tax or governmental charge required to be paid
in connection with any transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that
any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or other
charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is
due.

 

3.3.6           Date
of Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall for all purposes be
deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the Exercise
Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment
is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such
shares at the close of business on the next succeeding date on which the stock transfer books are open.

 

3.3.7           Cashless
Exercise Under Certain Circumstances.

 

(i)          The
Company shall provide to the registered holder prompt written notice of any time that the Company is unable to issue the Warrant
Shares via DTC transfer or otherwise (without restrictive legend), because (A) the Commission has issued a stop order with respect
to the Registration Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, or (D) otherwise (each a “Restrictive Legend Event”). To the extent that a Restrictive
Legend Event occurs after the registered holder has exercised a Warrant in accordance with the terms of the Warrants but prior
to the delivery of the Warrant Shares, the Company shall, at the election of the registered holder to be given within five (5)
days of receipt of notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase and
the Company shall return all consideration paid by registered holder for such shares upon such rescission or (B) treat the attempted
exercise as a cashless exercise as described in the next paragraph and refund the cash portion of the exercise price to the registered
holder.

 

(ii)         If
a Restrictive Legend Event has occurred and no exemption from the registration requirements is available, the Warrant shall only
be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to make
any cash payments or net cash settlement to the registered holder in lieu of issuance of the Warrant Shares. Upon a “cashless
exercise”, the Holder shall be entitled to receive a certificate (or book entry) for the number of Warrant Shares equal to
the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A)	= the VWAP on the Business Day immediately preceding the date on which the registered holder elects to exercise the Warrant by means of a “cashless exercise,” as set forth in the applicable Election to Purchase;

 

	 	(B)	= the Exercise Price of the Warrant, as it may have been adjusted hereunder; and

 

	 	(X)	= the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

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Upon receipt of an
Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a email copy of the Election to Purchase
to the Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise. The Company shall calculate
and transmit to the Warrant Agent, and the Warrant Agent shall have no obligation under this section to calculate, the number of
Warrant Shares issuable in connection with the cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock
Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board or OTCQX, as applicable, (c)
if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board or OTCQX and if prices for the Common Stock
are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.

 

3.3.8           Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the registered holder the number of Warrant Shares that are not disputed.

 

4.          Adjustments.

 

4.1        Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time after the Issuance Date subdivides (by any stock
split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time after the Issuance Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 4.1 shall become
effective at the close of business on the date the subdivision or combination becomes effective. The Company shall promptly notify
Warrant Agent of any such adjustment and give specific instructions to Warrant Agent with respect to any adjustments to the warrant
register.

 

4.2         Adjustment
Upon Issuance of Shares of Common Stock. If the Company at any time after the Issuance Date issues or sells any shares of Common
Stock or securities convertible or exercisable into (including the issuance or sale of shares of Common Stock owned or held by
or for the account of the Company, but excluding any Excluded Securities issued or sold or deemed to have been issued or sold)
for a consideration per share (the “New Issuance Price”) less than a price equal to the Exercise Price in effect immediately
prior to such issue or sale (such Exercise Price then in effect is referred to as the “Applicable Price”) (the foregoing
a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced
to an amount equal to the New Issuance Price. For purposes of this Warrant Agreement, “Excluded Securities” shall mean
(a) shares of Common Stock or options issuable to employees, officers, directors, consultants or advisors of the Company pursuant
to any stock or option plan duly adopted for such purpose, by the board of directors of the Company, (b) shares of Common Stock
issued in the Offering, and (c) securities issuable upon the exercise or exchange of or conversion of any securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the Issuance Date, provided that such
securities have not been amended since the Issuance Date to increase the number of such securities or to decrease the exercise
price, exchange price or conversion price of such securities. For the avoidance of doubt, no adjustment to the Exercise Price under
this Section 4.2 shall be accompanied by any adjustment in the number of Warrant Shares to be delivered upon exercise of any Warrant.

 

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4.3Adjustment
for Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution to all
holders of Common Stock of any evidences of indebtedness or assets or subscription rights or warrants (excluding those referred
to in Section 4.1 or other dividends paid out of retained earnings), then in each such case the Exercise Price shall be adjusted
by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled
to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned
above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record
date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided
to the registered holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable
to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately
after the record date mentioned above.

 

4.4. Reclassification,
Consolidation, Purchase, Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another
person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition
of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock
are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders
of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person whereby such other
person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other
person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or
share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of a Warrant, the registered holder shall have the right to receive, for each Warrant Share that would have been issuable
upon such exercise immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock, if
any, of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of
shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction. For purposes of
any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the registered holder shall be given the same choice as to the
Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall
cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
and for which shareholders received any equity securities of the Successor Entity, to assume in writing all of the obligations
of the Company under this Warrant Agreement in accordance with the provisions of this Section 4.4 pursuant to written agreements
and shall, upon the written request of the registered holder of a Warrant, deliver to the registered holder in exchange for this
Warrant created by this Warrant Agreement a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to the Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity), if any, plus any Alternate Consideration, receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which the Warrant is exercisable immediately prior to such Fundamental
Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock, if any, plus
any Alternate Consideration (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of such Warrant immediately prior to the consummation of such Fundamental Transaction).
Upon the occurrence of any such Fundamental Transaction the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of this Warrant Agreement and the Warrant referring to
the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant Agreement and the Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

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The Company shall instruct
the Warrant Agent to mail by first class mail, postage prepaid, to each registered holder of a Warrant, written notice of the execution
of any such amendment, supplement or agreement. Any supplemented or amended agreement entered into by the successor corporation
or transferee shall provide for adjustments, which shall be as nearly equivalent as may be practicable to the adjustments provided
for in Section 4. The Warrant Agent shall be under no responsibility to determine the correctness of any provisions contained in
such agreement relating either to the kind or amount of securities or other property receivable upon exercise of warrants or with
respect to the method employed and provided therein for any adjustments and shall be entitled to rely upon the provisions contained
in any such agreement. The provisions of this Section 4.4 shall similarly apply to successive reclassifications, changes, consolidations,
mergers, sales and conveyances of the kind described above.

 

4.5           Other
Events. If any event occurs of the type contemplated by the provisions of Section 4.1, 4.2, 4.3 or 4.4 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other
rights with equity features to all holders of Common Stock for no consideration), then the Company's Board of Directors will in
good faith make an adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the registered
holder.

 

4.6.          Notices
of Changes in Warrant. Upon every adjustment of the Exercise Price or the number of shares issuable upon exercise of a Warrant,
the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from
such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a
Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon
the occurrence of any event specified in Sections 4.1, 4.2 or 4.3, then, in any such event, the Company shall give written notice
to each registered holder, at the last address set forth for such holder in the warrant register, of the record date or the effective
date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.

 

4.7.          No
Fractional Shares. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled,
upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round up
or down, as applicable, to the nearest whole number the number of the shares of Common Stock to be issued to the registered holder.

 

4.8.          Form
of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued
after such adjustment may state the same Exercise Price and the same number of shares as is stated in the Warrants initially issued
pursuant to this Warrant Agreement. However, the Company may at any time in its sole discretion make any change in the form of
Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued
or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

 

5.           Transfer
and Exchange of Warrants.

 

5.1.          Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by
appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants
shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the
Warrant Agent to the Company from time to time upon request.

 

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5.2.          Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or
transfer reasonably acceptable to Warrant Agent, duly executed by the registered holder thereof, or by a duly authorized attorney,
and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the registered holder
of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise
provided herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be transferred only in whole
and only to the Depository, to another nominee of the Depository, to a successor depository, or to a nominee of a successor depository;
provided further, however, that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent
shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel
for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend.
Upon any such registration of transfer, the Company shall execute, and the Warrant Agent shall countersign and deliver, in the
name of the designated transferee a new Warrant Certificate or Warrant Certificates of any authorized denomination evidencing in
the aggregate a like number of unexercised Warrants.

 

5.3.          Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the
issuance of a Warrant Certificate for a fraction of a Warrant.

 

5.4.          Service
Charges. A transfer fee service charge shall be made for any exchange or registration of transfer of Warrants.

 

5.5.          Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the
terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for
such purpose.

 

6.              Limitations
on Exercise. Neither the Warrant Agent nor the Company shall effect any exercise of any Warrant, and a registered holder
shall not have the right to exercise any portion of a Warrant, to the extent that after giving effect to the issuance of shares
of Common Stock after exercise as set forth on the applicable Election to Purchase, the registered holder (together with such registered
holder’s Affiliates (as defined in Rule 405 under The Securities Act of 1933), and any other persons acting as a group together
with the registered holder or any of the registered holder’s Affiliates), would beneficially own in excess of 4.99% of the
Company’s Common Stock. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by
the registered holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of the Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon exercise of the remaining, nonexercised portion of any Warrant beneficially owned by the registered holder or any of its Affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 6, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the registered
holder that neither the Warrant Agent nor the Company is representing to the registered holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the registered holder is solely responsible for any schedules required to be filed in
accordance therewith. To the extent that the limitation contained in this Section 6 applies, the determination of whether a Warrant
is exercisable (in relation to other securities owned by the registered holder together with any Affiliates) and of which portion
of a Warrant is exercisable shall be in the sole discretion of the registered holder, and the submission of an Election to Purchase
shall be deemed to be the registered holder’s determination of whether such Warrant is exercisable (in relation to other
securities owned by the registered holder together with any Affiliates) and of which portion of a Warrant is exercisable, and neither
the Warrant Agent nor the Company shall have any obligation to verify or confirm the accuracy of such determination and neither
of them shall have any liability for any error made by the registered holder. In addition, a determination as to any group status
as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. For purposes of this Section 6, in determining the number of outstanding shares of Common Stock, a registered holder
may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual
report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of
Common Stock outstanding. The provisions of this Section 6 shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 6 to correct this subsection (or any portion hereof) which may be defective or inconsistent
with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of a Warrant.

 

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7.           Other
Provisions Relating to Rights of Holders of Warrants.

 

7.1.          No
Rights as Stockholder. Except as otherwise specifically provided herein, a registered holder, solely in its capacity as a holder
of a Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any
purpose, nor shall anything contained in this Warrant Agreement be construed to confer upon a registered holder, solely in its
capacity as the registered holder of a Warrant, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the registered holder of the Warrant Shares which it is then entitled to receive upon the due exercise of a Warrant.
A Warrant does not entitle the registered holder thereof to any of the rights of a stockholder.

 

7.2.          Lost,
Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant
Agent may on such terms as to indemnity (including obtaining an open penalty bond protecting the Warrant Agent) or otherwise as
they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new
Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall
constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed
Warrant shall be at any time enforceable by anyone.

 

7.3.          Reservation
of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of
Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant
Agreement.

 

8.           Concerning
the Warrant Agent and Other Matters.

 

8.1           Concerning
the Warrant Agent. The Warrant Agent:

 

a)           shall
have no duties or obligations other than those set forth herein and no duties or obligations shall be inferred or implied;

 

b)           may
rely on and shall be held harmless by the Company in acting upon any certificate, statement, instrument, opinion, notice, letter,
facsimile transmission, telegram or other document, or any security delivered to it, and reasonably believed by it to be genuine
and to have been made or signed by the proper party or parties;

 

c)           may
rely on and shall be held harmless by the Company in acting upon written or oral instructions or statements from the Company with
respect to any matter relating to its acting as Warrant Agent;

 

d)           may
consult with counsel satisfactory to it (including counsel for the Company) and shall be held harmless by the Company in relying
on the advice or opinion of such counsel in respect of any action taken, suffered or omitted by it hereunder in good faith and
in accordance with such advice or opinion of such counsel;

 

e)           solely
shall make the final determination as to whether or not a Warrant received by Warrant Agent is duly, completely and correctly executed,
and Warrant Agent shall be held harmless by the Company in respect of any action taken, suffered or omitted by Warrant Agent hereunder
in good faith and in accordance with its determination;

 

    	9

    	 

    

f)            shall
not be obligated to take any legal or other action hereunder which might, in its judgment subject or expose it to any expense or
liability unless it shall have been furnished with an indemnity satisfactory to it; and

 

g)           shall
not be liable or responsible for any failure of the Company to comply with any of its obligations relating to the Registration
Statement or this Warrant Agreement, including, without limitation, obligations under applicable regulation or law.

 

8.2           Payment
of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the
Warrant Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall
not be obligated to pay any transfer taxes in respect of the Warrants or such shares. The Warrant Agent shall not register any
transfer or issue or deliver any Warrant Certificate(s) or Warrant Shares unless or until the persons requesting the registration
or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such tax, if any, or shall have established
to the reasonable satisfaction of the Company that such tax, if any, has been paid.

 

8.3               Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.3.1.       Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the
office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing
a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of
30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant
(who shall, with such notice, submit his Warrant for inspection by the Company), then the holder of any Warrant may apply to the
Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s
cost. Any successor Warrant Agent (but not including the initial Warrant Agent), whether appointed by the Company or by such court,
shall be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal
office in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers
and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be
vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect
as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary
or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring
to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request
of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for
more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities,
duties, and obligations.

 

8.3.2.          Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment.

 

8.3.3.          Merger
or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated
or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Warrant Agreement without any further act.

 

8.4.        Fees
and Expenses of Warrant Agent.

 

8.4.1.          Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration in an amount separately agreed to between Company and Warrant
Agent for its services as Warrant Agent hereunder and will reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

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8.4.2.          Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged,
and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for
the carrying out or performing of the provisions of this Warrant Agreement.

 

8.5.        Liability
of Warrant Agent.

 

8.5.1.          Reliance
on Company Statement. Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent shall deem
it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a statement signed by the President of the Company and delivered to the Warrant Agent. The
Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this
Warrant Agreement.

 

8.5.2.          Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, claims, losses, damages,
costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement
except as a result of the Warrant Agent’s gross negligence, willful misconduct, or bad faith.

 

8.5.3.          Limitation
of Liability. The Warrant Agent’s aggregate liability, if any, during the term of this Warrant Agreement with respect
to, arising from, or arising in connection with this Warrant Agreement, or from all services provided or omitted to be provided
under this Warrant Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid
or payable hereunder by the Company to Warrant Agent as fees and charges, but not including reimbursable expenses.

 

8.5.4           Disputes.
In the event any question or dispute arises with respect to the proper interpretation of this Warrant Agreement or the Warrant
Agent’s duties hereunder or the rights of the Company or of any holder of a Warrant, the Warrant Agent shall not be required
to act and shall not be held liable or responsible for refusing to act until the question or dispute has been judicially settled
(and the Warrant Agent may, if it deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory
judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all parties interested in
the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory
to the Warrant Agent and executed by the Company and each other interested party. In addition, the Warrant Agent may require for
such purpose, but shall not be obligated to require, the execution of such written settlement by all the Warrant holders, as applicable,
and all other parties that may have an interest in the settlement.

 

8.5.5           Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with respect to the validity
or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of
any covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible to make any adjustments
required under the provisions of Section 4 hereof or responsible for the manner, method, or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this
Warrant Agreement or any Warrant or as to whether any shares of Common Stock will when issued be valid and fully paid and nonassessable.

 

8.6.        Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform the same
upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants
exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase of shares
of Common Stock through the exercise of Warrants.

 

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9.           Miscellaneous
Provisions.

 

9.1.        Successors.
All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.

 

9.2.        Notices.
Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by the holder
of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by
certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another
address is filed in writing by the Company with the Warrant Agent), as follows:

 

Enerpulse Technologies, Inc.

2451 Alamo Ave SE,

Albuquerque, New Mexico, 87106

Attn: Chief Executive Officer

 

Any notice, statement or demand authorized
by this Warrant Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be
sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within
five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent
with the Company), as follows:

 

Securities Transfer Corporation

2591 Dallas Parkway

Suite 102

Frisco, TX 75034

Attn: Kevin Halter Jr.

 

with a copy in each case to: 

 

Greenberg Traurig, LLP

1201 K Street

Suite 1100

Sacramento, CA 95814

Attn: Mark C. Lee, Esq.  

 

9.3.         Applicable
law. The validity, interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed in all respects
by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising
out of or relating in any way to this Warrant Agreement shall be brought and enforced in the courts of the State of New York or
the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenience
forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or
certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim.

 

9.4.         Persons
Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from
any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the parties hereto and the registered holders of the Warrants and, for purposes of Sections 3.3, 9.3 and 9.8, the Underwriter,
any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or
agreement hereof. The Underwriters shall be deemed to be an express third-party beneficiary of this Warrant Agreement with respect
to Sections 3.3, 9.3 and 9.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant
Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Underwriters with respect to the Sections
3.3, 9.3 and 9.8 hereof) and their successors and assigns and of the registered holders of the Warrants.

 

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9.5.         Examination
of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the
Warrant Agent in the city of Denver, State of Colorado, for inspection by the registered holder of any Warrant. The Warrant Agent
may require any such holder to submit his Warrant for inspection by it.

 

9.6.          Counterparts.
This Warrant Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall
for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.7.          Effect
of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and shall not
affect the interpretation thereof.

 

9.8           Amendments.
This Warrant Agreement may be amended by the parties hereto without the consent of any registered holder for the purpose of curing
any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or adding or changing any other
provisions with respect to matters or questions arising under this Warrant Agreement as the parties may deem necessary or desirable
and that the parties deem shall not adversely affect the interest of the registered holders. All other modifications or amendments,
including any amendment to increase the Exercise Price or shorten the Exercise Period, shall require the written consent of the
Underwriter and the registered holders of a majority of the then outstanding Warrants.

 

9.9           Severability.
This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall
not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in lieu
of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant
Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

9.10         Force
Majeure. In the event either party is unable to perform its obligations under the terms of this Warrant Agreement because
of acts of God, strikes, failure of carrier or utilities, equipment or transmission failure or damage that is reasonably beyond
its control, or any other cause that is reasonably beyond its control, such party shall not be liable for damages to the other
for any damages resulting from such failure to perform or otherwise from such causes. Performance under this Warrant Agreement
shall resume when the affected party or parties are able to perform substantially that party’s duties.

 

9.11         Consequential
Damages. Notwithstanding anything in this Warrant Agreement to the contrary, neither party to this Warrant Agreement
shall be liable to the other party for any consequential, indirect, special or incidental damages under any provision of this Warrant
Agreement or for any consequential, indirect, punitive, special or incidental damages arising out of any act or failure to act
hereunder even if that party has been advised of or has foreseen the possibility of such damages.

 

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IN WITNESS WHEREOF, this Warrant Agreement
has been duly executed by the parties hereto as of the day and year first above written.

 

	 	ENERPULSE TECHNOLOGIES, INC.
	 	 
	 	By:	 /s/ Joseph E. Gonnella
	 	Name:	 Joseph E. Gonnella
	 	Title:	 Chief Executive Officer
	 	 
	 	SECURITIES TRANSFER CORPORATION
	 	 
	 	By:	 /s/ Kevin Halter Jr.
	 	Name:	 Kevin Halter Jr. 
	 	Title:	 President

 

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Exhibit A

 

[FORM
OF WARRANT CERTIFICATE]

 

EXERCISABLE
ONLY IF COUNTERSIGNED BY THE WARRANT

AGENT
AS PROVIDED HEREIN.

 

Warrant Certificate Evidencing Warrants
to Purchase

Common Stock,
par value of $0.001 per share, as
described herein.

 

ENERPULSE TECHNOLOGIES, INC.

 

	No. ___________	[CUSIP_________]

 

	VOID AFTER 5:00 P.M., NEW YORK TIME,
	ON MAY 21, 2019

 

This certifies that
________________________ or registered assigns is the registered holder of _____________________ warrants to purchase certain securities
(each a “Warrant”). Each Warrant entitles the holder thereof, subject to the provisions contained herein and
in the Warrant Agreement (as defined below), to purchase from Enerpulse Technologies, Inc., a Nevada corporation (the “Company”),
one and one-half shares (collectively, the “Warrant Shares”) of Common Stock, par value $0.001 per share, of
the Company (“Common Stock”), at the Exercise Price set forth below. The price at which each one and one-half
share of Common Stock may be purchased at the time each Warrant is exercised (the “Exercise Price”) is $0.96
initially, subject to adjustments as set forth in the Warrant Agreement (as defined below).

 

Capitalized terms used
but not defined herein shall have the meaning ascribed to them in the Warrant Agreement.

 

Subject to the terms
of the Warrant Agreement, each Warrant evidenced hereby may be exercised in whole but not in part at any time, as specified herein,
on any Business Day (as defined below) occurring during the period (the “Exercise Period”) commencing the date
of detachability of the Warrants from the Common Stock as set forth in Section 2.4 of the Warrant Agreement and terminating on
the earlier to occur of 5:00 P.M., New York City time, on May 21, 2019 (the “Expiration Date”). Each Warrant
remaining unexercised after 5:00 P.M., New York City time, on the Expiration Date shall become void, and all rights of the holder
of this Warrant Certificate evidencing such Warrant shall cease.

 

The holder of the Warrants
represented by this Warrant Certificate may exercise any Warrant evidenced hereby by delivering, not later than 5:00 P.M.,
New York time, on any Business Day during the Exercise Period (the “Exercise Date”) to Securities Transfer Corporation
(the “Warrant Agent”, which term includes any successor warrant agent under the Warrant Agreement described
below) at its corporate trust department at 2591 Dallas Parkway, Suite 102, Frisco, TX 75034 (i) this Warrant Certificate or, in
the case of a Book-Entry Warrant Certificate (as defined in the Warrant Agreement), the Warrants to be exercised (the “Book-Entry
Warrants”) as shown on the records of The Depository Trust Company (the “Depository”) to an account
of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository, (ii) an election
to purchase (“Election to Purchase”), properly executed by the holder hereof on the reverse of this Warrant
Certificate or properly executed by the institution in whose account the Warrant is recorded on the records of the Depository (the
“Participant”), and substantially in the form included on the reverse of this Warrant Certificate and (iii) the
Exercise Price for each Warrant to be exercised in lawful money of the United States of America by certified or official bank check
or by bank wire transfer in immediately available funds, unless cashless exercise is permitted under the Warrant Agreement.

 

As used herein, the
term “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law or executive order to remain closed.

 

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Warrants may be exercised
only in whole numbers of Warrants. Warrants may be only be exercised such that a whole number of Warrant Shares is issuable upon
exercise; provided, however, that a holder may request the exercise of all of its remaining Warrants even if the aggregate number
of Warrant Shares issuable upon such exercise as calculated hereunder includes a fractional Warrant Share. No fractional Warrant
Shares are to be issued upon the exercise of Warrants, but rather the number of Warrant Shares to be issued shall be rounded up
or down, as applicable, to the nearest whole number. If fewer than all of the Warrants evidenced by this Warrant Certificate are
exercised, a new Warrant Certificate for the number of Warrants remaining unexercised shall be executed by the Company and countersigned
by the Warrant Agent as provided in Section 2 of the Warrant Agreement, and delivered to the registered holder of this Warrant
Certificate at the address specified on the books of the Warrant Agent or as otherwise specified by such registered holder.

 

This Warrant Certificate
is issued under and in accordance with the Warrant Agreement, dated as of May 16, 2014 (the “Warrant Agreement”),
between the Company and the Warrant Agent and is subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the holder of this Warrant Certificate and the beneficial owners of the Warrants represented by this
Warrant Certificate consent by acceptance hereof. Copies of the Warrant Agreement are on file and can be inspected at the above-mentioned
office of the Warrant Agent and at the office of the Company at 2451 Alamo Ave SE, Albuquerque, New Mexico, 87106.

 

The Company shall provide
to the registered holder prompt written notice of any time that the Company is unable to issue the Warrant Shares via DTC transfer
or otherwise (without restrictive legend), because (A) the Commission has issued a stop order with respect to the Registration
Statement, (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily
or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily
or permanently, or (D) otherwise (each a “Restrictive Legend Event”). To the extent that a Restrictive Legend
Event occurs after the registered holder has exercised a Warrant in accordance with the terms of the Warrants but prior to the
delivery of the Warrant Shares, the Company shall, at the election of the registered holder to be given within five (5) days of
receipt of notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase and the Company
shall return all consideration paid by registered holder for such shares upon such rescission or (B) treat the attempted exercise
as a cashless exercise as described in the next paragraph and refund the cash portion of the exercise price to the registered holder.

 

If a Restrictive
Legend Event has occurred and no exemption from the registration requirements is available, the Warrant shall only be exercisable
on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to make any cash payments
or net cash settlement to the registered holder in lieu of issuance of the Warrant Shares. Upon a “cashless exercise”,
the Holder shall be entitled to receive a certificate (or book entry) for the number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where:

 

	 	(A)	= the VWAP on the Business Day immediately preceding the date on which the registered holder elects to exercise the Warrant by means of a “cashless exercise,” as set forth in the applicable Election to Purchase;

 

	 	(B)	= the Exercise Price of the Warrant, as it may have been adjusted hereunder; and

 

	 	(X)	= the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

Upon receipt of an
Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to Purchase to the
Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise. The Company shall calculate
and transmit to the Warrant Agent, and the Warrant Agent shall have no obligation under this section to calculate, the number of
Warrant Shares issuable in connection with the cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock
Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not
then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink
Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share
of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the
Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

    	16

    	 

    

The Exercise Price,
if applicable, and the number of Warrant Shares purchasable upon the exercise of each Warrant shall be subject to adjustment as
provided pursuant to Section 4 of the Warrant Agreement.

 

Upon due presentment
for registration of transfer or exchange of this Warrant Certificate at the stock transfer division of the Warrant Agent, the Company
shall execute, and the Warrant Agent shall countersign and deliver, as provided in Section 5 of the Warrant Agreement, in the name
of the designated transferee one or more new Warrant Certificates of any authorized denomination evidencing in the aggregate a
like number of unexercised Warrants, subject to the limitations provided in the Warrant Agreement.

 

Neither this Warrant
Certificate nor the Warrants evidenced hereby entitles the registered holder thereof to any of the rights of a shareholder of the
Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights
to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors
of the Company or any other matter.

 

The Warrant Agreement
and this Warrant Certificate may be amended as provided in the Warrant Agreement including, under certain circumstances described
therein, without the consent of the holder of this Warrant Certificate or the Warrants evidenced thereby.

 

THIS WARRANT CERTIFICATE
AND ALL RIGHTS HEREUNDER AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

 

This Warrant Certificate
shall not be entitled to any benefit under the Warrant Agreement or be valid or obligatory for any purpose, and no Warrant evidenced
hereby may be exercised, unless this Warrant Certificate has been countersigned by the manual signature of the Warrant Agent.

 

    	17

    	 

    

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.

 

Dated as of May __, 2014

 

	 	ENERPULSE TECHNOLOGIES, INC.
	 	 
	 	By:	 
	 	Name:	 Joseph E. Gonnella
	 	Title:	 Chief Executive Officer

 

Securities Transfer Corporation,

as Warrant Agent

 

	By: 	 	 
	Name:	 Kevin Halter Jr.	 
	Title:	 President	 

 

 

    	 

    	 

    

[REVERSE]

 

Instructions for Exercise of Warrant

 

To exercise the Warrants
evidenced hereby, the holder or Participant must, by 5:00 P.M., New York time, on the specified Exercise Date, deliver to
the Warrant Agent at its stock transfer division, a certified or official bank check or a bank wire transfer in immediately available
funds, in each case payable to the Warrant Agent at Account No. ____, in an amount equal to the Exercise Price in full for
the Warrants exercised. In addition, the Warrant holder or Participant must provide the information required below and deliver
this Warrant Certificate to the Warrant Agent at the address set forth below and the Book-Entry Warrants to the Warrant Agent in
its account with the Depository designated for such purpose. The Warrant Certificate and this Election to Purchase must be received
by the Warrant Agent by 5:00 P.M., New York time, on the specified Exercise Date.

 

ELECTION
TO PURCHASE

TO
BE EXECUTED IF WARRANT HOLDER DESIRES

TO
EXERCISE THE WARRANTS EVIDENCED HEREBY

 

 

The undersigned hereby
irrevocably elects to exercise, on __________, ____ (the “Exercise Date”), _____________ Warrants, evidenced
by this Warrant Certificate, to purchase, _________________ shares (the “Warrant Shares”) of Common Stock, par
value of $0.001 per share (the “Common Stock”) of Enerpulse Technologies, Inc., a Nevada corporation (the “Company”),
and represents that on or before the Exercise Date

 

£
such holder has tendered payment for such Warrant Shares by certified or official bank check or bank wire transfer in immediately
available funds to the order of the Company c/o Securities Transfer Corporation, 2591 Dallas Parkway, Suite 102, Frisco, TX 75034,
in the amount of $_____________ in accordance with the terms hereof, or

 

£
[if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
3.3.7 of the Warrant Agreement, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant
to the cashless exercise procedure set forth in subsection 3.3.7.

 

The undersigned requests that said number
of Warrant Shares be in fully registered form, registered in such names and delivered, all as specified in accordance with the
instructions set forth below.

 

If said number of Warrant
Shares is less than all of the Warrant Shares purchasable hereunder, the undersigned requests that a new Warrant Certificate evidencing
the remaining balance of the Warrants evidenced hereby be issued and delivered to the holder of the Warrant Certificate unless
otherwise specified in the instructions below.

 

    	19

    	 

    

 

 

	 

 

Dated: ______________ __, ____

 

	 	Name	 	 
	 	 	(Please Print)	 
	 	 	 	 
	 	/ / /  / - /  /  /- /  /   /  /  /
	 	(Insert Social Security or Other Identifying Number of Holder)
	 	 	 	 
	 	Address	 	 
	 	 	 	 
	 	 	 	 
	 	Signature	 	 

 

This Warrant may only
be exercised by presentation to the Warrant Agent at one of the following locations:

 

By hand at:

 

Securities Transfer Corporation

2591 Dallas Parkway

Suite 102

Frisco, TX 75034

Attn: Kevin Halter Jr.

 

 

By mail at:

 

Securities Transfer Corporation

2591 Dallas Parkway

Suite 102

Frisco, TX 75034

Attn: Kevin Halter Jr.

 

The method of delivery of this Warrant
Certificate is at the option and risk of the exercising holder and the delivery of this Warrant Certificate will be deemed to be
made only when actually received by the Warrant Agent. If delivery is by mail, registered mail with return receipt requested, properly
insured, is recommended. In all cases, sufficient time should be allowed to assure timely delivery.

 

(Instructions as to form and delivery of
Warrant Shares and/or Warrant Certificates)

 

	Name in which Warrant Shares	 	 	 
	are to be registered if other than	 	 	 
	in the name of the registered holder	 	 	 
	of this Warrant Certificate:	 	 	 
	 	 	 	 
	Address to which Warrant Shares	 	 	 
	are to be mailed if other than to the	 	 	 
	address of the registered holder of	 	 	 
	this Warrant Certificate as shown on	 	 	 
	the books of the Warrant Agent:	 	 	 
	 	 	(Street Address)	 
	 	 	 	 
	 	 	 	 
	 	 	(City and State) (Zip Code)	 
	 	 	 	 
	Name in which Warrant Certificate	 	 	 
	evidencing unexercised Warrants, if any,	 	 	 
	are to be registered if other than in the	 	 	 
	name of the registered holder of this	 	 	 
	Warrant Certificate:	 	 	 

 

    	20

    	 

    

 

	Address to which certificate representing unexercised Warrants, if any, are to be mailed if other than to the address of  the registered holder of this Warrant  Certificate as shown on the books of  the Warrant Agent:	 	 	 
	 	 	(Street Address)
	 	 	 
	 	 	 	 
	 	 	(City and State) (Zip Code)
	 	 	 
	 	 	Dated:
	 	 	 
	 	 	 	 
	 	 	Signature
	 	 	 
	 	 	Signature must conform in all respects to the name of the holder as specified on the face of this Warrant Certificate.  If Warrant Shares, or a Warrant Certificate evidencing unexercised Warrants, are to be issued in a name other than that of the registered holder hereof or are to be delivered to an address other than the address of such holder as shown on the books of the Warrant Agent, the above signature must be guaranteed by a an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).
	SIGNATURE GUARANTEE	 	 
	 	 	 
	Name of Firm                                                   	 	 
	Address                                                             	 	 
	Area Code	 	 
	and Number                                                   	 	 
	Authorized	 	 
	Signature                                                       	 	 
	Name                                                                	 	 
	Title                                                                  	 	 
	Dated:                                                               , 200___	 	 

 

    	21

    	 

    

 

ASSIGNMENT

 

(FORM
OF ASSIGNMENT TO BE EXECUTED IF WARRANT HOLDER

DESIRES
TO TRANSFER WARRANTS EVIDENCED HEREBY)

 

FOR VALUE RECEIVED,
_________________ hereby sell(s), assign(s) and Transfer(s) unto 

________________________________________________________

__________________________________

_______________________________________

 

	(Please print name and address	(Please insert social security or
	including zip code of assignee)	other identifying number of assignee)

 

the rights represented by the within Warrant
Certificate and does hereby irrevocably constitute and appoint ____________ Attorney to transfer said Warrant Certificate on the
books of the Warrant Agent with full power of substitution in the premises.

 

	 	 	Dated:
	 	 	 
	 	 	 
	 	 	Signature
	 	 	 
	 	 	(Signature must conform in all respects to the name of the holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).
	SIGNATURE GUARANTEE	 	 
	Name of Firm                                                   	 	 
	Address                                                             	 	 
	Area Code	 	 
	and Number                                                   	 	 
	Authorized	 	 
	Signature                                                       	 	 
	Name                                                                	 	 
	Title                                                                  	 	 
	Dated:                                                 , 20___	 	 

 

 

 

    	22AMENDED
AND RESTATED

 

VIRTUS
INVESTMENT PARTNERS, INC.

 

OMNIBUS INCENTIVE AND EQUITY PLAN

 

Effective as of January 1, 2014

 

 

 

 

 

 

 

 

    	 

    	 

    

 

AMENDED AND RESTATED

VIRTUS INVESTMENT
PARTNERS, INC. 

OMNIBUS INCENTIVE
AND EQUITY PLAN 

 

SECTION 1

 

PURPOSE

 

The purpose
of the Plan is to foster and promote the long-term financial success of the Company and to materially increase shareholder value
by (a) providing flexibility to the Company to implement annual and long term incentives that are consistent with the Company’s
goals, (b) encouraging and providing for the acquisition of an ownership interest in the Company by Employees, and (c) enabling
the Company to attract and retain the services of high quality Employees, Directors and Consultants upon whose judgment, interest
and special effort the successful conduct of its operations is largely dependent.

 

 

SECTION 2

 

DEFINITIONS

 

2.1Definitions.
Whenever used herein, the following terms shall have the respective meanings set forth below:

 

(a)“Act”
means the Securities Exchange Act of 1934, as amended from time to time, or any successor thereto, and the applicable rulings and
regulations thereunder.

 

(b)“Adjustment
Event” means any stock dividend, stock split or share combination of, or extraordinary cash dividend on, the Common Stock
or recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares, warrants or rights
offering to purchase Common Stock at a price substantially below Fair Market Value, or other similar event affecting the Common
Stock.

 

(c)“Annual
Incentive Award” means an Award made pursuant to Section 9 with a Performance Cycle of one year or less.

 

(d)“Award”
means any award made pursuant to the Plan, including but not limited to the award of an Annual Incentive Award, a Long-Term Incentive
Award, an Option, a Stock Appreciation Right, a Restricted Stock Unit, Restricted Stock, or other award under the Plan.

 

(e)“Award
Agreement” means the electronic or written document by which each Award is evidenced, and which may, but need not be (as
determined by the Committee), executed or acknowledged by a Participant as a condition to receiving an Award or the benefits under
an Award, and which sets forth the terms and provisions applicable to Awards granted under the Plan to such Participant. Award
Agreements shall be subject to the terms and conditions of the Plan, whether or not explicitly provided in the particular Award
Agreement.

 

    	 

    	 

    

 

(f)“Beneficial
Owner” means any “person”, as such term is used in Section 13(d) of the Act, who, directly or indirectly, has
or shares the right to vote or dispose of such securities or otherwise has “beneficial ownership” of such securities
(within the meaning of Rule 13d-3 and Rule 13d-5 under the Act), including pursuant to any agreement, arrangement or understanding
(whether or not in writing).

 

(g)“Board”
or “Board of Directors” means the Board of Directors of the Company.

(h)“Cause”
means:

 

(i)the
willful failure by the Participant to perform substantially his duties as an Employee (other than due to physical or mental illness)
after reasonable notice to the Participant of such failure;

 

(ii)the
Participant’s engaging in serious misconduct that is injurious to the Company or any Subsidiary in any way, including, but
not limited to, by the way of damage to their respective reputations or standings in their respective industries;

 

(iii)the
Participant’s having been convicted of, or having entered a plea of nolo contendere to, a crime that constitutes a felony;
or

 

(iv) the
breach by the Participant of any written covenant or agreement with the Company or any Subsidiary not to disclose or misuse any
information pertaining to, or misuse any property of, the Company or any Subsidiary or not to compete or interfere with the Company
or any Subsidiary.

 

“Cause”
shall be determined in the sole discretion of the Company.

 

(i)“Change
in Control” means the first occurrence of:

 

(i)any
person (other than the Company or an employee benefit plan sponsored by the Company) acquiring “beneficial ownership”
(within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly
or indirectly, securities of the Company representing 25% or more of the combined voting power of the Company’s securities;

 

(ii)within
any 24-month period, the persons who were directors of the Company at the beginning of such period (the “Incumbent Directors”)
ceasing to constitute at least a majority of the Board of Directors (the “Board”) or the board of directors of any
successor to the Company; provided that any director elected or nominated for election to the Board by a majority of the
Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this sub-clause 2.1(i)(ii);

 

    	 

    	 

    

 

(iii)the
effective date of any merger, consolidation, share exchange, division, sale or other disposition of all or substantially all of
the assets of the Company which is consummated (a “Corporate Event”), if immediately following the consummation of
such Corporate Event those Persons who were stockholders of the Company immediately prior to such Corporate Event do not hold,
directly or indirectly, a majority of the voting power, in substantially the same proportion as prior to such Corporate Event,
of (x) in the case of a merger or consolidation, the surviving or resulting corporation or (y) in the case of a division or a sale
or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Corporate
Event, holds more than 25% of the consolidated assets of the Company immediately prior to such Corporate Event;

 

(iv)the
approval by stockholders of the Company of a plan of liquidation with respect to the Company; or

 

(v)the
occurrence of any other event occurs which the Board declares to be a Change in Control.

 

Notwithstanding anything herein
to the contrary, for purposes of any Award that constitutes nonqualified deferred compensation under Section 409A of the Code,
the Committee, in its discretion may specify a different definition of Change in Control in order to comply with or cause an Award
to be exempt from the provisions of Code section 409A.

 

(j)“Change
in Control Settlement Value” shall mean, with respect to a share of Common Stock, the excess of the Change in Control Stock
Value over the option price of the Option or the base price of the Stock Appreciation Right covering such share of Common Stock,
provided that , (i) with respect to any Option which is an Incentive Stock Option, the Change in Control Settlement
Value shall not exceed the maximum amount permitted for such Option to continue to qualify as an Incentive Stock Option and (ii)
in respect of that portion, if any, of any Option or Stock Appreciation Right that had not become exercisable on or before December
31, 2004, the Change in Control Settlement Value shall not exceed the maximum amount permitted for such Option or Stock Appreciation
Right to remain exempt from Section 409A of the Code.

 

(k)“Change
in Control Stock Value” shall mean the value of a share of Common Stock determined as follows:

 

(i)if the
Change in Control results from an event described in clause (iii) of the Change in Control definition, the highest per share price
paid for shares of Common Stock of the Company in the transaction resulting in the Change in Control; or

 

(ii)if
the Change in Control results from an event described in clause (i), (ii) (iv) or (v) of the Change in Control definition and no
event described in clause (iii) of the Change in Control definition has occurred in connection with such Change in Control, the
highest sale price of a share of Common Stock of the Company on any trading day during the 60 consecutive trading days immediately
preceding and following the date of such Change in Control as reported on the New York Stock Exchange Composite Tape, or other
national securities exchange or nationally recognized automated quotation system, on which the Common Stock is then principally
traded or listed.

 

    	 

    	 

    

  

(l)“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto, and the applicable rulings and
regulations thereunder.

 

(m)“Committee”
means the Compensation Committee of the Board (or such other committee of the Board that the Board shall designate), which shall
consist of two or more members, each of whom, serving at the pleasure of the Board, shall be a “non-employee director”
within the meaning of Rule 16b-3 (or any successor rule thereto), as promulgated under the Act, and an “outside director”
within the meaning of Section 162(m) of the Code and the Treasury regulations, rules and guidance promulgated thereunder. Notwithstanding
the foregoing, with respect to Awards granted to non-employee Directors, the Committee shall mean the entire Board.

 

(n)“Common
Stock” means the common stock of the Company.

 

(o)“Company”
means Virtus Investment Partners, Inc., a Delaware corporation, and any successor thereto.

 

(p)“Consultant”
means a person engaged to provide consulting or advisory services (other than as an Employee or a Director) to the Company or its
Subsidiaries.

 

(q)“Director”
means any individual who is a member of the Board of Directors.

 

(r)“Disability”
has the meaning given in the Company’s long-term disability insurance policy or program as in effect from time to time; provided
that a Participant shall not be treated as having incurred a Disability unless he or she qualifies for disability benefits under
such policy or program.

 

(s)“Dividend
Equivalents” means an amount equal to the cash dividends paid by the Company upon one share of Common Stock for each share
of Common Stock represented by an Award to a Participant in accordance with the Plan, credited at the discretion of the Committee
or as otherwise provided for by the Plan or in an Award Agreement.

 

(t-1)“Early
Retirement” means termination of a Participant’s employment or service on or after the Participant attains age 60 with
10 years of credited service with the Company and its Subsidiaries. For this purpose, “credited service” means credited
service as an employee or service as a director of the Company as determined and measured by the Company for service credit purposes.

 

(t)“Employee”
means an individual who is paid on the payroll of the Company or one of its Subsidiaries (as determined by the Committee in its
sole discretion); provided, however, that with respect to Incentive Stock Options, “Employee” means any person who
is considered an employee of the Company or any Subsidiary for purposes of Treasury Regulation Section 1.421-1(h).

 

    	 

    	 

    

 

(u)“Executive
Officer” means each person who is an officer of the Company or any Subsidiary and who is subject to the reporting requirements
under Section 16(a) of the Act.

 

(v)“Fair
Market Value” means, on any date: (i) the closing price reported for such day on the principal national securities exchange
or nationally recognized automated quotation system on which the Common Stock is then listed for trading or in the event that there
are no Common Stock transactions reported on such exchange or system on such date, Fair Market Value shall mean the closing price
on the immediately preceding date on which Common Stock transactions were so reported; (ii) if the Common Stock is then principally
listed in an over-the-counter market, the last sales price (or, if there is no last sales price reported, the average of the closing
bid and asked prices) for the Common Stock on such date, or on the immediately preceding date on which Common Stock transactions
were so reported; or (iii) if the Common Stock is not listed on such an exchange, system or market, the price as determined in
good faith by the Committee.

 

(w)“Family
Member” means as to a Participant, any (i) child, stepchild, grandchild, parent, stepparent, grandparent, spouse, mother-in-law,
father-in-law, son-in-law or daughter-in-law (including adoptive relationships), of such Participant, (ii) trusts for the exclusive
benefit of one or more such persons and/or the Participant and (iii) other entity owned solely by one or more such persons and/or
the Participant.

 

(x)“Long-Term
Incentive Award” means an Award made pursuant to Section 9 with a Performance Cycle or a combined Performance Cycle and Restricted
Period of more than one year.

 

(y)“Net-Exercise”
means a procedure based on such terms and conditions as the Committee shall establish by which the Participant will be issued a
number of whole shares of Common Stock upon the exercise of an Option determined in accordance with the following formula:

 

N = X(A-B)/A, where

 

“N” = the number
of shares of Common Stock to be issued to the Participant upon exercise of

the Option;

 

“X” = the total
number of shares of Common Stock with respect to which the Participant has elected to exercise the Option;

 

    	 

    	 

    

 

“A” = the Fair
Market Value of one (1) share of Common Stock determined on the exercise date; and

 

“B” = the exercise
price per share of Common Stock (as defined in the Participant’s Award

Agreement)

 

(z)“Option”
means the right to purchase shares of Common Stock at a stated price for a specified period of time. For purposes of the Plan,
an Option may be either (i) an “Incentive Stock Option” with the meaning of Section 422 of the Code or (ii) an Option
which is not an Incentive Stock Option (a “Non-Qualified Stock Option”).

 

(aa)“Participant”
means any Employee, any non-employee Director of the Company, or Consultant designated by the Committee to receive an Award under
the Plan, provided that non-employee Directors and Consultants shall not be eligible for Incentive Stock Options.

 

(bb)“Performance
Cycle” means the period selected by the Committee during which the performance of the Company or any Subsidiary or unit thereof
or any individual is measured for the purpose of determining the extent to which an Award subject to Performance Goals has been
earned.

 

(cc)“Performance
Goals” means the objectives for the Company, any Subsidiary or business unit thereof or individual that may be established
by the Committee, in its discretion, for a Performance Cycle with respect to any performance based Awards contingently awarded
under the Plan. The Performance Goals for Awards that are intended to constitute “performance-based” compensation within
the meaning of Section 162(m) of the Code are designated by the Committee and are based upon one or more performance goal measures
relating to; our assets under management, or AUM, including clients’
AUM, diversification across asset classes, geographies, clients and channels, and portfolio manager productivity; sales metrics,
including gross inflows, net flows, organic growth, organic growth rate, client redemption rates, market share, new account wins,
size of pipeline, diversification of sales across asset classes, geographies, clients and channels and sales productivity; financial
metrics, including operating income, operating income, as adjusted, net income, income before taxes, net income attributable to
common stockholders, economic net income, cash operating income, cash net income, free cash flow, net cash provided by operations,
earnings measures (including earnings before interest and taxes or earnings before interest, taxes, depreciation, and amortization),
operating income per share, operating income, as adjusted, per share, net income per share, income before taxes or net income attributable
to common stockholders per share, economic net income per share, cash operating income per share, cash net income per share, free
cash flow per share, net cash provided by operations per share, earnings (including earnings before taxes, earnings before interest
and taxes or earnings before interest, taxes, depreciation and amortization) per share, operating income margin, operating income,
as adjusted, margin and net income margin; investment performance, including investment performance by account or weighted by AUM,
investment performance ratings as measured by recognized third parties and risk adjusted investment performance; balance sheet,
capital and return measures, including return of capital or growth in return of capital, return on equity, return on capital or
invested capital, change in working capital, payout ratio level, debt to capital or debt to EBITDA ratio, shares repurchased, return
on investment, economic value created, gross revenues and investment management fees; strategic performance, including customer
service measures or indices, success of new product launches, employment expense as a percentage of revenue or revenue, as adjusted,
other operating expenses as a percentage of revenue or revenue, as adjusted, business expansion or consolidation, diversified business
distribution channels, enhancement of organizational and risk management capabilities and maintaining or building reputation of
brand, brand image and name awareness. 

 

    	 

    	 

    

 

Performance Goals may reflect absolute entity performance
or a relative comparison of entity performance to the performance of a peer group or other external measure. The targeted level
or levels of performance with respect to performance goals may be established at such levels and in such terms as the Committee
may determine, in its discretion, including absolute entity performance, as a goal relative to performance in prior periods, or
a relative comparison of entity performance to the performance of one or more third parties or other companies, a peer group or
special index or other group selected for comparison, or other external measure. The Committee may specify that any performance
goals will be calculated before or after specific or identified items such as extraordinary or nonrecurring, special income, expense
or other items, before or after changes in accounting principles or standards, before or after capital charges, before or after
revenues, operations, earnings or losses of discontinued operations or acquisitions, or before or after awards under the Plan or
other incentive compensation.

 

(dd)“Plan”
means the Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan, as set forth herein and as the same may be amended
from time to time.

 

(ee)“Restricted
Period” means the period during which Restricted Stock Units or shares of Restricted Stock are subject to forfeiture or restrictions
on transfer (if applicable) pursuant to Section 8 of the Plan.

 

(ff)“Restricted
Stock” means Common Stock awarded to a Participant pursuant to the Plan which is subject to a Restricted Period in accordance
with Section 8 of the Plan.

 

(gg)“Restricted
Stock Unit” means a Participant’s right to receive pursuant to the Plan one share of Common Stock at the end of a Restricted
Period in accordance with Section 8 of the Plan.

 

(hh)“Retirement”
means termination of a Participant’s employment or service on or after the Participant attains age 65 with 5 years of credited
service with the Company and its Subsidiaries. For this purpose, “credited service” means credited service as an employee
or service as a director of the Company as determined and measured by the Company for service credit purposes.

 

(ii)“Securities
Act” means the Securities Act of 1933, as amended from time to time, or any successor thereto, and the applicable rulings
and regulations thereunder.

 

    	 

    	 

    

  

(jj)“Stock
Appreciation Right” means the right to receive a payment from the Company, in cash or Common Stock, in an amount determined
under Section 7 of the Plan.

 

(kk)“Subsidiary”
means any corporation, partnership or limited liability company in which the Company owns, directly or indirectly, 50% or more
of the total combined voting power of all classes of stock of such corporation or of the capital interest or profits interest of
such partnership or limited liability company.

 

2.2Construction.
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision
of the Plan. Except when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine
gender, the singular shall include the plural, and the plural shall include the singular.

 

SECTION 3

 

ELIGIBILITY AND PARTICIPATION

 

Participants
in the Plan shall be those Employees, non-employee Directors, and Consultants selected by the Committee to participate in the Plan.

 

 

SECTION 4

 

ADMINISTRATION

 

4.1Power
to Grant and Establish Terms of Awards. The Committee shall have the authority, subject to the terms of the Plan, to determine
the Participants to whom Awards shall be granted, the Fair Market Value of shares of Common Stock or other property, and the terms,
conditions and restrictions of any and all Awards, including but not limited to the number of shares of Common Stock to be covered
by each Award, the time or times at which Awards shall be granted, and the terms and provisions of the instruments by which Awards
shall be evidenced; to designate Options as Incentive Stock Options or Non-Qualified Stock Options; to determine the period of
time during which restrictions on Restricted Stock or Restricted Stock Units shall remain in effect; to establish and administer
any Performance Goals applicable to Awards granted hereunder, as well as to determine the terms and conditions of any Annual Incentive
and Long-Term Incentive Awards; to determine the method(s) for satisfaction of any tax withholding obligation arising in connection
with Awards, including by the withholding or delivery of shares of Common Stock; to determine whether an Award will be settled
in shares of Common Stock, cash, or in any combination thereof; and to determine all other matters relating to Awards and the Plan.
The terms and conditions of each Award shall be determined by the Committee at the time of grant, and, except as provided in the
Plan or any Award Agreement, such terms and conditions shall not be subsequently changed in a manner which would be adverse to
the Participant without the consent of the Participant to whom such Award has been granted. The Committee may establish different
terms and conditions for different Participants receiving Awards and for the same Participant for each Award such Participant may
receive, whether or not granted at different times. The grant of any Award to any Participant shall neither entitle such Participant
to, nor disqualify him from, the grant of any other Awards.

 

    	 

    	 

    

 

4.2Administration.
The Committee shall be responsible for the administration of the Plan. Any Award granted by the Committee may be subject to such
conditions, not inconsistent with the terms of the Plan, as the Committee shall determine. The Committee, by majority action thereof,
is authorized to prescribe, amend and rescind rules and regulations relating to the Plan, any Award Agreement or any other form
of agreement or other document employed by the Company in the administration of the Plan or of any Award; to provide for conditions
deemed necessary or advisable to protect the interests of the Company; to interpret the Plan, any Award Agreement or any other
form of agreement or other document employed by the Company in the administration of the Plan or of any Award; and to make all
other determinations necessary or advisable for the administration and interpretation of the Plan, any Award Agreement or any other
form of agreement or other document employed by the Company in the administration of the Plan or of any Award, to carry out its
provisions and purposes. Determinations, interpretations or other actions made or taken by the Committee pursuant to the provisions
of the Plan, any Award Agreement or any other form of agreement or other document employed by the Company in the administration
of the Plan or of any Award, shall be final, binding and conclusive for all purposes and upon all persons. The Committee is authorized
to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other
determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent
not inconsistent with the provisions of the Plan or applicable law. The Committee and each member thereof, and any person acting
pursuant to authority delegated by the Committee, shall be entitled, in good faith, to rely or act upon any report or other information
furnished by any Executive Officer, other officer or Employee of the Company or a Subsidiary or affiliate, the Company’s
auditors, consultants, legal counsel, or any other agents assisting in the administration of the Plan. Members of the Committee,
any person acting pursuant to authority delegated by the Committee, and any officer or Employee of the Company or a Subsidiary
or affiliate acting at the direction or on behalf of the Committee or a delegatee, shall not be personally liable for any action
or determination taken or made or omitted in good faith with respect to the Plan.

 

    	 

    	 

    

  

4.3Delegation.
Actions of the Committee may be taken by the vote of a majority of its members. To the extent not inconsistent with applicable
law and the applicable rules and regulations of the New York Stock Exchange and any other national securities exchange or nationally
recognized automated quotation system on which shares of Common Stock are then principally listed or traded, (a) the Committee
may delegate any of its powers under the Plan to a subcommittee of the Committee or to one of its members, (b) the Committee may
allocate among its members or to one or more officers or Employees of the Company any of its administrative responsibilities and
(c) notwithstanding anything to the contrary contained herein, the Committee may delegate the determination of Awards granted to
Employees who are not Executive Officers to one or more officers of the Company, as designated by the Committee from time to time.

 

4.4Restrictive
Covenants and Other Conditions. The Committee may condition the grant of any Award under the Plan upon the Participant to whom
such Award would be granted agreeing in writing to certain conditions in addition to the provisions regarding exercisability of,
the vesting or payment of any Award (such as restrictions on the ability to transfer the underlying shares of Common Stock) or
covenants in favor of the Company and/or its Subsidiaries (including, without limitation, covenants not to compete, not to solicit
employees and customers that may have effect following the termination of the Participant’s employment and, whether before
or after the Award has been exercised or has vested, as applicable, including, without limitation, the requirement that the Participant
disgorge any profit, gain or other benefit received in respect of the Award prior to any breach of any such covenant by the Participant).

 

4.5409A
Compliance. The Plan is intended to be administered in a manner consistent with the requirements, where applicable, of Section
409A of the Code. Where reasonably possible and practicable, the Plan shall be administered in a manner to avoid the imposition
on Participants of immediate tax recognition and additional taxes pursuant to Section 409A of the Code. To that end, and without
limiting the generality of the foregoing, unless otherwise expressly provided herein or in any Award Agreement, any amount payable
or shares distributable hereunder in connection with any Award (including upon the satisfaction of any applicable performance criteria)
shall be paid not later than two and one-half months (or such other time as is required to cause such amounts not to be treated
as deferred compensation under Section 409A of the Code) following the end of the taxable year of the Company or the Participant
in which the Participant’s rights with respect to the corresponding Award (or portion thereof) ceased to be subject to a
substantial risk of forfeiture. Notwithstanding the foregoing, neither the Company nor the Committee shall have any liability to
any person in the event Section 409A of the Code applies to any such Award in a manner that results in adverse tax consequences
for the Participant or any of his beneficiaries or transferees.

 

4.6Clawback.
Notwithstanding anything in this Plan to the contrary, each Award to a Participant is expressly subject to the provisions in this
Section 4.6, unless otherwise expressly provided in the Award Agreement. The Company may enforce any forfeiture determined by the
Committee to be appropriate under this Section 4.6 by all legal means available, including, without limitation, by withholding
the value of the amount required to be returned to the Company and forfeited hereunder from other sums owed by the Company to the
Participant.

 

    	 

    	 

    

 

(a)In
the case of, and to the extent that, an Award will vest or be earned subject to the attainment of Performance Goals or targets,
including, without limitation, Annual Incentive Awards and Long-Term Incentive Awards, in the event and to the extent that the
Committee determines within three years of the date on which the Committee confirms or otherwise finally determines satisfaction
of the applicable Performance Goals or targets (or such later date as determined by the Committee and set forth in the Award Agreement
or otherwise specified by the Committee) that the performance certified by the Committee, on the basis of which such Award vested
or was determined to be earned, was based on materially inaccurate financial statements or other performance measure information,
then following the Committee’s review of the facts and circumstances underlying such event, a Participant shall return to
the Company and forfeit, to the extent permitted by applicable law, that portion (which may be all) of his or her Award (including
any Dividend Equivalents or other amounts credited thereon) or Common Stock, cash, or other equity-based or equity-related Award(s)
distributed in respect of a vested or earned Award, or the value thereof (regardless of whether vesting or satisfaction of other
conditions to the Award has occurred and Common Stock, cash, or other equity-based or equity-related Award(s) or any combination
thereof have been distributed) that the Committee, in its discretion, determines to be appropriate.

 

(b)If, following
the termination of a Participant’s employment with the Company for any reason, including, without limitation, due to death,
Disability, Early Retirement or Retirement, the Company becomes aware that (i) during such Participant’s employment with
the Company such Participant engaged in any activity that would have been grounds to terminate his or her employment or service
with the Company for Cause, as reasonably determined by the Committee, or (ii) following such Participant’s employment with
the Company, such Participant has breached any written covenant or agreement with the Company or any Subsidiary, as reasonably
determined by the Committee, not to disclose or misuse any information pertaining to, or misuse any property of, the Company or
any Subsidiary or not to compete or interfere with the Company, or not to solicit employees, agents, customers or clients of the
Company, then upon written demand by the Company, the Participant shall return to the Company and forfeit, to the extent permitted
by applicable law, that portion (which may be all) of his or her Award(s) (including any Dividend Equivalents or other amounts
credited thereon) or Common Stock, cash, or other equity-based or equity-related Award(s) or any combination thereof distributed
in respect of vested or earned Award(s), or the value thereof (regardless of whether vesting or satisfaction of other conditions
to the Award has occurred and Common Stock, cash, or other equity-based or equity-related Award(s) or any combination thereof distributed)
that the Committee, in its discretion, determines to be appropriate.

 

(c)Awards
(including Dividend Equivalents or other amounts credited thereon) or Common Stock, cash, or other equity-based or equity-related
Awards distributed in respect of vested or earned Awards, or the value thereof shall also be subject to forfeiture to the extent
required by applicable law (regardless of whether vesting or satisfaction of other conditions to the Award has occurred and Common
Stock, cash, or other equity-based or equity-related Award(s) or any combination thereof distributed). Further, if the Company
is required by applicable law, rule or regulation to include or adopt any additional “clawback” or “forfeiture”
provision relating to outstanding and/or vested or earned Awards or any future Awards, under the Dodd-Frank Wall Street Reform
and Consumer Protection Act or otherwise, then each Participant agrees that such clawback or forfeiture provision shall also apply
to any applicable Award made under this Plan as if such provision had been included in this Plan and such Award.

 

    	 

    	 

    

 

SECTION 5

 

STOCK SUBJECT TO PLAN

 

5.1Plan
Award Limitation. Subject to the provisions of Section 5.2, 5.3 and 5.4, the number of shares of Common Stock available for
delivery in connection with Awards under the Plan shall be 1.8 million shares.

 

The total number
of shares with respect to which Incentive Stock Options may be granted shall not exceed 1.8 million shares.

 

The type and
form of Awards under this Plan shall be in the discretion of the Committee.

 

The shares
to be delivered under the Plan may consist, in whole or in part, of Common Stock held in treasury or authorized but unissued Common
Stock, not reserved for any other purpose, or any combination thereof.

 

5.2Share
Counting Rules. Each share of Common Stock underlying an Award shall count as one share of Common Stock for purposes of determining
the number of shares of Common Stock granted pursuant to the limits set forth in Sections 5.1 and 5.5 of the Plan. If the exercise
price of an Option is paid by tender to the Company, or attestation to the ownership, of shares of Common Stock owned by the Participant,
or by means of a Net-Exercise, the number of shares available for issuance under the Plan shall be reduced by the gross number
of shares for which the Option is exercised. Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations
pursuant to Section 13.6 shall not again be available for issuance under the Plan. With respect to Stock Appreciation Rights, the
number of shares remaining for issuance under the Plan shall be determined as though the full number of shares corresponding to
the portion of a Stock Appreciation Right exercised had been issued. Shares of Common Stock issued in connection with awards that
are assumed, converted or substituted as a result of the Company’s acquisition of another company (including by way of merger,
combination or similar transaction) will not count against the number of shares that may be issued under the Plan, but shall be
available under the Plan by virtue of the Company’s assumption of the plan(s), arrangement(s) or agreement(s) of the acquired
company or business.

 

5.3Cancelled,
Terminated, or Forfeited Awards. Any shares of Common Stock subject to an Award issued under this Plan, which for any reason
expires, or is canceled, terminated or otherwise settled without the issuance of any consideration, whether in cash, Common Stock
or other property (including, without limitation, any shares issued in connection with a Restricted Stock Award that are subsequently
forfeited) shall again be available under the Plan.

 

    	 

    	 

    

 

5.4Adjustment
Due to Change in Capitalization. In the event of any Adjustment Event, (i) the aggregate number of shares of Common Stock available
for Awards under Section 5.1 (including the sub-limits identified in Section 5.1), (ii) the individual limitations on the number
of shares that may be awarded to any particular Participant in any particular period under Section 5.5 and (iii) the aggregate
number of shares subject to outstanding Awards and the respective prices and/or vesting and other applicable criteria applicable
to outstanding Awards shall be proportionately adjusted to reflect, as deemed equitable and appropriate by the Committee, such
Adjustment Event. To the extent deemed equitable and appropriate by the Committee, subject to any required action by stockholders,
in any merger, consolidation, reorganization, liquidation, dissolution, or other similar transaction, any Award granted under the
Plan shall pertain to the securities and other property, including cash, to which a holder of the number of shares of Common Stock
covered by the Award would have been entitled to receive in connection with such event.

 

Any shares
of stock (whether Common Stock, shares of stock into which shares of Common Stock are converted or for which shares of Common Stock
are exchanged for shares of stock distributed with respect to Common Stock) or cash or other property received with respect to
any Award granted under the Plan as a result of any Adjustment Event or any distribution of property shall, except as provided
in Section 11 or as otherwise provided by the Committee at or after the date an Award is made by the Committee, be subject to the
same terms and conditions, including restrictions on transfer, as are applicable to such shares of the original underlying Award
and any stock certificate(s) representing or evidencing any shares of stock so received shall be legended in such manner as the
Company deems appropriate.

 

5.5Individual
Award Limitations. Subject to Section 5.4:

 

(a)the total
number of shares of Common Stock subject to Options and Stock Appreciation Rights that may be awarded to any Participant during
a calendar year shall not exceed 250,000 shares, plus any unused shares pursuant to this subsection (a) as of the close of the
prior calendar year under this Plan;

 

(b)the total
number of shares of Common Stock subject to any Restricted Stock subject to Performance Goals or Restricted Stock Units subject
to Performance Goals that may be awarded to any Participant during a calendar year shall not exceed 250,000 shares or units, as
the case may be, plus any unused shares or units pursuant to this subsection (b) as of the close of the prior calendar year under
this Plan;

 

(c)the total
amount of any Annual Incentive Award paid to any Participant during a calendar year shall not exceed $10 million, plus any unused
amounts pursuant to this subsection (c) as of the close of the prior calendar year under this Plan; and (d) the total amount of
any Long-Term Incentive Award paid to any Participant during a calendar year shall not exceed $10 million, plus any unused amounts
pursuant to this subsection (d) as of the close of the prior calendar year under this Plan.

 

    	 

    	 

    

 

 

SECTION 6

 

STOCK OPTIONS

 

6.1Grant
of Options. Options may be granted to Participants at such time or times as shall be determined by the Committee; provided
that, in no event shall the Committee be permitted to grant Options conditioned on the surrender or cancellation of previously
granted Options. Options granted to non-employee Directors shall be in such amounts and intervals as determined by the Board from
time to time. Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options.
The date of grant of an Option under the Plan will be the date on which the Option is awarded by the Committee or, if so determined
by the Committee, the date on which occurs any event the occurrence of which is an express condition precedent to the grant of
the Option. Subject to Section 5.5, the Committee shall determine the number of Options, if any, to be granted to the Participant.
Each Option Award shall be evidenced by an Award Agreement that shall specify the type of Option granted, the exercise price, the
duration of the Option, the number of shares of Common Stock to which the Option pertains, and such other terms and conditions
not inconsistent with the Plan as the Committee shall determine.

 

6.2Option
Price. Non-Qualified Stock Options and Incentive Stock Options granted pursuant to the Plan shall have an exercise price that
is not less than the Fair Market Value on the date the Option is granted. Except in the event of an Adjustment Event, the Committee
shall not have the power or authority to reduce the exercise price of any outstanding Option, whether through amendment, through
the cancellation of existing grants and the issuance of new grants with lower exercise prices or by any other means. The Committee
shall not have the right to re- price outstanding Options or to grant new Options under the Plan in substitution for or upon the
cancellation of Options previously granted. Except in connection with a corporate transaction involving the Company (including,
without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, or exchange of shares), the terms of outstanding Awards may not be amended to reduce the exercise
price of outstanding Options or SARs or cancel outstanding Options or SARs in exchange for cash, other awards or Options or SARs
with an exercise price that is less than the exercise price of the original Options or SARs without stockholder approval.

 

6.3Exercise
of Options. Options awarded to a Participant under the Plan shall be exercisable at such times and shall be subject to such
restrictions and conditions including the performance of a minimum period of service or the satisfaction of Performance Goals,
as the Committee may impose either at or after the time of grant of such Options, subject to the Committee’s right to accelerate
the exercisability of such Option in its discretion. Notwithstanding the foregoing, unless otherwise determined by the Committee
at grant, Options shall become exercisable in three substantially equal installments on each of the first three anniversaries of
the date of grant. Except as may be provided in any provision approved by the Committee pursuant to this Section 6.3, after becoming
exercisable each installment shall remain exercisable until expiration, termination or cancellation of the Option. An Option may
be exercised from time to time, in whole or in part, up to the total number of shares of Common Stock with respect to which it
is then exercisable. Notwithstanding the foregoing, no Option shall be exercisable for more than 10 years after the date on which
it is granted.

 

    	 

    	 

    

 

6.4Payment
and Settlement. The Committee shall establish procedures governing the exercise of Options. No shares shall be delivered pursuant
to any exercise of an Option unless arrangements satisfactory to the Committee have been made to assure full payment of the exercise
price. Without limiting the generality of the foregoing, the Committee may direct that payment of the exercise price may be made
(i) in cash or cash equivalents, (ii) by exchanging shares of Common Stock (either by delivery or attestation) which have been
owned by the Participant at the time of exercise (or owned for a stated period of time prior to the time of exercise as the Committee
may determine), (iii) by issuing a lesser number of shares of Common Stock pursuant to a Net Exercise transaction having a Fair
Market Value on the date of exercise equal to the amount, if any, by which the aggregate Fair Market Value of the shares of Common
Stock as to which the Option is being exercised exceeds the aggregate exercise price for such shares, based on such terms and conditions
as the Committee shall establish, (iv) by any combination of the foregoing; provided that the combined value of all cash and cash
equivalents paid and the Fair Market Value of any such Common Stock so tendered to the Company, valued as of the date of such tender,
is at least equal to the exercise price, (v) through an arrangement with a broker approved by the Company whereby payment of the
exercise price is accomplished with the proceeds of the sale of Common Stock, or (vi) through such other procedures as the Committee
may determine. As soon as administratively practicable after receipt of a written exercise notice and payment of the exercise price
in accordance with this Section 6.4, the Company shall deliver to the Participant a certificate or certificates representing the
acquired shares of Common Stock or shall deposit the acquired shares of Common Stock to the Participant’s brokerage account
associated with this Plan. For the avoidance of doubt, in any case above in this Section, the number of shares remaining for issuance
under the Plan shall be determined as though the full number of shares corresponding to the portion of such Option settled or net-exercised
pursuant to this Section 6.4 had been issued.

 

6.5Incentive
Stock Options. Notwithstanding anything in the Plan to the contrary, no term of the Plan relating to Incentive Stock Options
shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to
disqualify the Plan under Section 422 of the Code, or, without the consent of any Participant affected thereby, to cause any Incentive
Stock Option previously granted to fail to qualify for the Federal income tax treatment afforded under Section 421 of the Code.

 

6.6Termination
of Employment or Service Due to Disability, Early Retirement or Retirement. Unless otherwise determined by the Committee at
the time of grant, if a Participant ceases to be employed or service is terminated by the Company or any Subsidiary by reason of
Disability, Early Retirement or Retirement, any such Options granted to such Participant shall continue to become exercisable in
accordance with Section 6.3 notwithstanding such Participant’s termination of employment or service and may be exercised
by the Participant or the Participant’s designated beneficiary, and if none is named, in accordance with Section 13.2, at
any time during the remaining term of such Option or three (3) years (or such shorter period as the Committee shall determine at
the time of grant) following the Participant’s termination of employment or service, whichever period is shorter.

 

    	 

    	 

    

  

6.7Termination
of Employment or Service Due to Death. Unless otherwise determined by the Committee at the time of grant, in the event a Participant’s
employment or service with the Company or a Subsidiary terminates by reason of death, any such Options granted to such Participant
shall become immediately exercisable in full at the date of such Participant’s death and may be exercised by the Participant’s
designated beneficiary, and if none is named, in accordance with Section 13.2, at any time during the remaining term of such Option
or three (3) years (or such shorter period as the Committee shall determine at the time of grant) following the Participant’s
death, whichever period is shorter.

 

6.8Certain
Divestitures, etc. In the event that a Participant’s employment or service is terminated in connection with a sale, divestiture,
spin-off or other similar transaction involving a Subsidiary, division or business segment or unit, the Committee may provide at
the time of grant or otherwise that all or any portion of any Options granted to such Participant which are then outstanding shall
become exercisable in accordance with Section 6.3 notwithstanding such termination of employment or service and may be exercised
by the Participant or the Participant’s designated beneficiary, and if none is named, in accordance with Section 13.2, at
any time during the remaining term of the Option or three (3) years (or such shorter period as the Committee shall determine at
or following the time of grant) following the Participant’s termination of employment or service, whichever period is shorter.

 

6.9Termination
of Employment or Service for Cause. Unless otherwise determined by the Committee at the time of grant, in the event a Participant’s
employment or service with the Company or a Subsidiary is terminated for Cause as determined in good faith by the Company, all
Options granted to such Participant which are then outstanding (whether or not exercisable prior to the date of such termination)
shall be immediately forfeited.

 

6.10Termination
of Employment or Service for Any Other Reason. Unless otherwise determined by the Committee at or after the time of grant,
in the event a Participant’s employment or service with the Company or a Subsidiary terminates for any reason other than
one described in Section 6.6, 6.7, 6.8 or 6.9, any Options granted to such Participant which are exercisable at the date of such
Participant’s termination of employment or service shall be exercisable at any time prior to 90 days following such Participant’s
termination of employment or service or the remaining term of such Option, whichever period is shorter.

 

6.11Extension
of Termination Date. An Optionholder’s Award Agreement may also provide that if the exercise of the Option following
the Optionholder’s termination of employment or service (other than upon the Optionholder’s death or Disability) would
be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option or (ii) the
expiration of a period of 90 days following the Optionholder’s termination of employment or service during which the exercise
of the Option would not be in violation of such registration requirements.

 

    	 

    	 

    

 

 

SECTION 7

 

STOCK APPRECIATION RIGHTS

 

7.1Grant
of Stock Appreciation Rights. Stock Appreciation Rights may be granted to any Participants, all Participants or any class of
Participants at such time or times as shall be determined by the Committee. Stock Appreciation Rights may be granted in tandem
with an Option, or may be granted on a freestanding basis, not related to any Option. A grant of a Stock Appreciation Right shall
be evidenced by an Award Agreement, whether as part of the agreement governing the terms of the Option, if any, to which such Stock
Appreciation Rights relate or pursuant to a separate written agreement with respect to freestanding Stock Appreciation Rights,
in each case containing such provisions not inconsistent with the Plan as the Committee shall approve.

 

7.2Terms
and Conditions of Stock Appreciation Rights. The terms and conditions (including, without limitation, the exercise period of
the Stock Appreciation Right, the vesting schedule applicable thereto and the impact of any termination of service on the Participant’s
rights with respect to the Stock Appreciation Right) applicable with respect to (i) Stock Appreciation Rights granted in tandem
with an Option shall be substantially identical (to the extent possible taking into account the differences related to the character
of the Stock Appreciation Right) to the terms and conditions applicable to the tandem Options and (ii) freestanding Stock Appreciation
Rights shall be substantially identical (to the extent possible taking into account the differences related to the character of
the Stock Appreciation Right) to the terms and conditions that would have been applicable under Section 6 above were the grant
of the Stock Appreciation Rights a grant of an Option. In no event shall the term of a Stock Appreciation Right exceed a period
of ten years from the date of grant.

 

7.3Exercise
of Tandem Stock Appreciation Rights. Stock Appreciation Rights which are granted in tandem with an Option may only be exercised
upon the surrender of the right to exercise such Option for an equivalent number of shares and may be exercised only with respect
to the shares of Common Stock for which the related Option is then exercisable.

 

7.4Exercise
Price. Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. The exercise price of each
Stock Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock equivalents
subject to the Stock Appreciation Right on the date of grant.

 

7.5Payment
of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive payment,
in cash, in shares of Common Stock or in a combination thereof, as determined by the Committee, of an amount determined by multiplying
the excess, if any, of the Fair Market Value of a share of Common Stock at the date of exercise over the exercise price of the
Stock Appreciation Right determined by the Committee at the time of grant, by the number of shares of Common Stock with respect
to which the Stock Appreciation Rights are then being exercised.

 

    	 

    	 

    

 

SECTION 8

 

RESTRICTED STOCK AND RESTRICTED
STOCK UNITS

 

8.1Grant
of Restricted Stock and Restricted Stock Units. Except as otherwise delegated as provided in Section 4.3, the Committee may
make awards in the form of Restricted Stock or Restricted Stock Units. Any Award made hereunder in the form of Restricted Stock
or Restricted Stock Units shall be subject to the terms and conditions of the Plan and to any other terms and conditions not inconsistent
with the Plan (including, but not limited to, requiring the Participant to pay the Company an amount equal to the par value per
share for each share of Restricted Stock awarded) as shall be prescribed by the Committee in its sole discretion. As determined
by the Committee, with respect to an Award of Restricted Stock, the Company shall either (i) transfer or issue to each Participant
to whom an Award of Restricted Stock has been made the number of shares of Restricted Stock specified by the Committee or (ii)
hold such shares of Restricted Stock for the benefit of the Participant for the Restricted Period. In the case of an Award of Restricted
Stock Units, no shares of Common Stock shall be issued at the time an Award is made, and the Company shall not be required to set
aside a fund for the payment of such Award.

 

8.2Restrictions
on Transferability. Restricted Stock Units and shares of Restricted Stock may not be sold, assigned, transferred, pledged,
hypothecated or otherwise encumbered by the Participant during the Restricted Period, except as hereinafter provided. Notwithstanding
the foregoing, the Committee may permit (on such terms and conditions as it shall establish) Restricted Stock Units and shares
of Restricted Stock to be transferred during the Restricted Period pursuant to Section 13.1, provided that any Restricted Stock
Units and shares of Restricted Stock so transferred shall remain subject to the provisions of this Section 8.

 

8.3Rights
as a Shareholder. Except for the restrictions set forth herein and unless otherwise determined by the Committee, the Participant
shall have all the rights of a shareholder with respect to such shares of Restricted Stock, including but not limited to, the right
to vote and the right to receive dividends, as determined in the Company’s discretion. Any dividends shall be paid at such
time and in such form as dividends are paid to shareholders generally. A Participant shall not have any right, in respect of Restricted
Stock Units awarded pursuant to the Plan, to vote on any matter submitted to the Company’s stockholders or to dispose of
the shares of Common Stock underlying such Restricted Stock Units, nor shall a Participant have any beneficial ownership in respect
of any shares of Common Stock underlying Restricted Stock Units, until such time as the shares of Common Stock attributable to
such Restricted Stock Units have been issued (including, at the discretion of the Committee, issuance to a trust for purposes of
hedging or funding Restricted Stock Unit obligations). At the discretion of the Committee, a Participant’s Restricted Stock
Unit account may be credited with Dividend Equivalents during the Restricted Period.

 

8.4Restricted
Period. Unless the Committee shall otherwise determine at or after the date an Award of Restricted Stock or Restricted Stock
Units is made to the Participant by the Committee, the Restricted Period shall commence upon the date of grant and shall lapse
with respect to the shares of Restricted Stock or Restricted Stock Units in three approximately equal installments on each of the
first three anniversaries of the date of grant, unless sooner terminated as otherwise provided herein. Without limiting the generality
of the foregoing, the Committee may provide for termination of the Restricted Period upon the achievement by the Participant of
Performance Goals specified by the Committee at the date of grant. The determination of whether the Participant has achieved such
Performance Goals shall be made by the Committee in its sole discretion.

 

    	 

    	 

    

 

8.5Legend.
Each certificate issued to a Participant in respect of shares of Restricted Stock awarded under the Plan shall be registered in
the name of the Participant and shall be legended in such manner as the Company deems appropriate.

 

8.6Death,
Disability, Early Retirement or Retirement. Unless the Committee shall otherwise determine at the date of grant or otherwise:

 

(i)Subject
to Section 8.6(iv) below, if a Participant ceases to be employed or service is terminated by the Company or any Subsidiary by reason
of death, Disability or Retirement or (b) for Restricted Stock and Restricted Stock Units granted on or after February 9, 2012,
if a Participant ceases to be employed or service is terminated by the Company or any Subsidiary by reason of death or Disability,
the Restricted Period will lapse as to a prorated portion of the shares of Restricted Stock and Restricted Stock Units transferred
or issued to such Participant under the Plan based on the number of days the Participant actually worked since the date the shares
of Restricted Stock or Restricted Stock Units were granted (or in the case of an Award which becomes vested in installments, since
the date, if any, on which the last installment of such Restricted Stock or Restricted Stock Units became vested);

 

(ii)Subject
to Section 8.6(iv) below, if a Participant ceases to be employed or service is terminated by the Company or any Subsidiary by reason
of Retirement, with respect to the shares of Restricted Stock or Restricted Stock Units transferred or issued to such Participant
under the Plan the Restricted Period shall continue to lapse and the shares will continue to vest in accordance with vesting schedule
set forth in the Award Agreement or otherwise specified by the Committee;

 

(iii)Subject
to Section 8.6(iv) below, if a Participant ceases to be employed or service is terminated by the Company or any Subsidiary by reason
of Early Retirement, the Restricted Period shall continue to lapse and the shares will continue to vest in accordance with vesting
schedule set forth in the Award Agreement or as otherwise specified by the Committee as to a prorated portion of the shares of
Restricted Stock and Restricted Stock Units transferred or issued to such Participant under the Plan based on the number of days
the Participant actually worked since the date the shares of Restricted Stock or Restricted Stock Units were granted (or in the
case of an Award which becomes vested in installments, since the date, if any, on which the last installment of such Restricted
Stock or Restricted Stock Units became vested); provided that, in the case of an Award which becomes vested in installments,
the portion of such prorated Restricted Stock or Restricted Stock Units Award that will vest on each installment date shall be
equal to the total number of prorated shares that are subject to continued vesting in accordance with this Section 8.6(iii) divided
by the number of remaining installments of the Award;

 

    	 

    	 

    

 

(iv)For purposes
of Sections 8.6(i) through 8.6(iii) above, in the case of any Award that involves Restricted Stock or Restricted Stock Units (whether
as the primary or underlying Award) with respect to which the restrictions will lapse, if at all, based on the attainment of Performance
Goals or targets, any vesting and lapse of the Restricted Period for such shares shall occur at the end of the applicable performance
period and shall be in accordance with the terms and conditions approved by the Committee and set forth in the Award Agreement
or otherwise specified by the Committee.

 

(v)Subject
to Sections 8.6(i) through 8.6(iv) above, except as otherwise expressly determined by the Committee or provided in an Award Agreement,
any shares of Restricted Stock or Restricted Stock Units as to which the Restricted Period has not lapsed or which do not become
vested at the date of a Participant’s termination of employment shall automatically be cancelled upon such Participant’s
termination of employment.

 

8.7Termination
of Employment or Service. Unless the Committee shall otherwise determine at or after the date of grant, if a Participant ceases
to be employed by or terminates service with the Company or any Subsidiary for any reason other than those specified in Section
8.6 at any time prior to the date when the Restricted Period lapses, all shares of Restricted Stock held by the Participant shall
revert back to the Company and all Restricted Stock Units and any corresponding Dividend Equivalents credited but not yet paid
to such Participant shall be forfeited upon the Participant’s termination of employment or service.

 

8.8Issuance
of New Certificates; Settlement of Restricted Stock Units. Upon the lapse of the Restricted Period with respect to any shares
of Restricted Stock, such shares shall no longer be subject to the restrictions imposed under Section 8.2 and the Company shall
issue or have issued new share certificates without the legend described in Section 8.5 in exchange for those previously issued.
Upon the lapse of the Restricted Period with respect to any Restricted Stock Units, the Company shall deliver to the Participant,
or the Participant’s designated beneficiary, and if none is named, in accordance with Section 13.2, one share of Common Stock
for each Restricted Stock Unit as to which restrictions have lapsed and any Dividend Equivalents credited with respect to such
Restricted Stock Units. The Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu
of delivering only Common Stock for Restricted Stock Units. If a cash payment is made in lieu of delivering Common Stock, the amount
of such cash payment for each share of Common Stock to which a Participant is entitled shall be equal to the Fair Market Value
of the Common Stock on the date on which the Restricted Period lapsed with respect to the related Restricted Stock Unit.

 

8.9Performance
Related Awards. Notwithstanding anything else contained in the Plan to the contrary and unless the Committee shall otherwise
determine at the time of grant, to the extent required to ensure that the grant of an Award of Restricted Shares or Restricted
Stock Units to an Executive Officer (other than an Award which will vest solely on the basis of the passage of time) is deductible
by the Company or such Subsidiary pursuant to Section 162(m) of the Code, any such Award shall become vested, if at all, upon the
determination by the Committee that Performance Goals established by the Committee have been attained, in whole or in part.

 

    	 

    	 

    

  

SECTION 9

 

ANNUAL AND LONG-TERM INCENTIVE
AWARDS

 

9.1Annual
Incentive Awards. Unless determined otherwise by the Committee at or after the date of grant, Annual Incentive Awards shall
be payable in cash. Unless otherwise determined by the Committee at the time of grant, if a Participant terminates employment with
the Company or any Subsidiary due to death, Disability, Early Retirement or Retirement, in either case before the end of a Performance
Cycle, or after the end of such Performance Cycle but before payment of the Annual Incentive Award is authorized by the Committee,
such Participant or the Participant’s designated beneficiary, and if none is named, in accordance with Section 13.2, shall,
unless determined otherwise by the Committee at the date of grant, be eligible to receive a prorated Annual Incentive Award based
on the actual achievement of the Performance Goals for such Performance Cycle, in each case such proration to be in accordance
with the terms and conditions approved by the Committee and set forth in the Award Agreement or otherwise determined by the Committee.
Unless determined otherwise by the Committee at or, in the case of any Participant who is not an Executive Officer, after the date
of grant, if a Participant terminates employment before payment of an Annual Incentive Award is authorized by the Committee for
any reason other than death, Disability, Early Retirement of Retirement, the Participant shall forfeit all rights to such Annual
Incentive Award.

 

9.2Long-Term
Incentive Awards. As determined by the Committee at or after the date of grant, Long-Term Incentive Awards may be payable in
equity-based or equity-related Awards, cash or any combination thereof. Unless otherwise determined by the Committee at the time
of grant, if a Participant terminates employment with the Company or any Subsidiary due to death, Disability, Early Retirement
or Retirement, in either case before the end of a Performance Cycle, or after the end of such Performance Cycle but before payment
of the Long-Term Incentive Award is authorized by the Committee, such Participant or the Participant’s designated beneficiary,
and if none is named, in accordance with Section 13.2, shall, unless determined otherwise by the Committee at the date of grant,
be eligible to receive a prorated Long-Term Incentive Award based on the actual achievement of the Performance Goals for such Performance
Cycle, in each case such proration to be in accordance with the terms and conditions approved by the Committee and set forth in
the Award Agreement or otherwise determined by the Committee. Unless determined otherwise by the Committee at or, in the case of
any Participant who is not an Executive Officer, after the date of grant, if a Participant terminates employment before payment
of an Long-Term Incentive Award is authorized by the Committee for any reason other than death, Disability, Early Retirement or
Retirement, the Participant shall forfeit all rights to such Long-Term Incentive Award.

 

    	 

    	 

    

  

SECTION 10

 

OTHER STOCK-BASED AWARDS

 

The Committee
may grant other types of equity-based or equity-related Awards (including the grant or offer for sale of unrestricted shares of
Common Stock) in such amounts and subject to such terms and conditions as the Committee may determine. Such Awards may entail the
transfer of actual shares of Common Stock to Award recipients and may include Awards designed to comply with or take advantage
of the applicable local laws of jurisdictions other than the United States.

 

 

SECTION 11

 

CHANGE IN CONTROL

 

11.1Accelerated
Vesting and Payment. Subject to the provisions of Section 11.2 below, in the event of a Change in Control, each Option and
Stock Appreciation Right then outstanding shall be fully exercisable regardless of the exercise schedule otherwise applicable to
such Option and/or Stock Appreciation Right and the Restricted Period shall lapse as to each share of Restricted Stock and each
Restricted Stock Unit then outstanding. In connection with such a Change in Control, the Committee may, in its discretion, provide
that each Option and/or Stock Appreciation Right (regardless of whether any such Option or Stock Appreciation Right is then “in
the money”, including if as of the date on which the Change in Control Settlement Value is determined, the Fair Market Value
of the shares subject to such Option, Stock Appreciation Right or similar other stock-based Award is less than the exercise price
or base price of such Option or Stock Appreciation Right) shall, upon the occurrence of such Change in Control, be canceled in
exchange for a cash payment, if any is then due, by the Company of the Change in Control Settlement Value per share.

 

11.2Alternative
Awards. Notwithstanding Section 11.1, no cancellation, acceleration of exercisability, vesting, cash settlement or other payment
shall occur with respect to any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit or any other stock- based
Award if the Committee reasonably determines in good faith prior to the occurrence of a Change in Control that such Award shall
be honored or assumed, or new rights substituted therefor (such honored, assumed or substituted award hereinafter called an “Alternative
Award”), by a Participant’s employer (or the parent or an affiliate of such employer) immediately following the Change
in Control; provided that any such Alternative Award must:

 

(i)be based
on stock which is traded on an established securities market, or that the Committee reasonably believes will be so traded within
60 days after the Change of Control;

 

    	 

    	 

    

 

(ii)provide
such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable
under such award, including, but not limited to, an identical or better exercise or vesting schedule and identical or better timing
and methods of payment;

 

(iii)have
substantially equivalent economic value to such award (determined at the time of the Change in Control in accordance with principles
applicable under Section 424 of the Code); and

 

(iv)have
terms and conditions which provide that in the event that the Participant’s employment or service is involuntarily terminated
for any reason (including, but not limited to a termination due to death, Disability or not for Cause) or Constructively Terminated
(as defined below), all of such Participant’s Option and/or Stock Appreciation Rights shall be deemed immediately and fully
exercisable, the Restricted Period shall lapse as to each of the Participant’s outstanding Restricted Stock or Restricted
Stock Unit Awards, and each such Alternative Award shall be settled for a payment per each share of stock subject to the Alternative
Award in cash, in immediately transferable, publicly traded securities or in a combination thereof, in an amount equal to, in the
case of an Option or Stock Appreciation Right, the excess of the Fair Market Value of such stock on the date of the Participant’s
termination over the corresponding exercise or base price per share and, in the case of any Restricted Stock or Restricted Stock
Unit Award, the Fair Market Value of the number of shares of Common Stock subject or related thereto.

 

For this purpose,
a Participant’s employment or service shall be deemed to have been Constructively Terminated if the Participant terminates
employment or service within 90 calendar days following either (x) a material reduction in the Participant’s base salary
or a Participant’s incentive compensation opportunity, without the Participant’s consent or (y) the relocation of the
Participant’s principal place of employment or service to a location more than 35 miles away from the Participant’s
immediately prior principal place of employment or service, without the Participant’s consent.

 

11.3Annual
Incentive and Long-Term Incentive Awards. Unless otherwise determined by the Committee, in the event of a termination of employment
after or related to a Change in Control (other than for Cause and other than a voluntary resignation not constituting being Constructively
Terminated), (i) any Annual or Long-Term Incentive Awards relating to Performance Cycles ending prior to the Change in Control
which have been earned but not paid shall become immediately payable, (ii) any Performance Cycle for which Annual Incentive Awards
are outstanding shall end, the Participant shall earn a pro rata Award equal to the product of (a) such Participant’s earned
Award for the Performance Cycle in question and (b) a fraction, the numerator of which is the number of completed months that have
elapsed since the beginning of such Performance Cycle to the date of such employment termination and the denominator of which is
twelve, the Company shall pay all such Annual Incentive Awards, if earned, by the March 15 following the end of the Performance
Cycle after the Committee has made its determination, and (iii) all then in progress Performance Cycles for Long-Term Incentive
Awards that are outstanding shall end, the Participant shall earn a pro rata Award equal to the product of (a) such Participant’s
earned Award for the Performance Cycle in question and (b) a fraction, the numerator of which is the number of completed months
that have elapsed since the beginning of such Performance Cycle to the date of such employment termination, the denominator of
which is the total number of months in such Performance Cycle, the Company shall pay all such Long-Term Incentive Awards, if earned,
by the March 15 following the end of the Performance Cycle after the Committee has made its determination.

 

    	 

    	 

    

 

11.4Termination
of Employment or Service Prior to Change in Control. In the event that prior to the date of a Change in Control, the Participant’s
termination of employment or service with the Company or any of its affiliates will be deemed to be in connection with a Change
in Control (other than for Cause and other than a voluntary resignation not constituting being Constructively Terminated) and either
(a) such termination is within 90 days prior to the date of a Change in Control, or (b) such termination occurs on or after the
date, if any, on which the shareholders of the Company approve such Change in Control transaction, but prior to the consummation
thereof. Such Participant shall be entitled to receive the applicable benefits provided under this Section 11, but only to the
extent that such benefits are in excess of those previously received by the Participant as a result of the Participant’s
prior termination of employment or service.

 

11.5Distribution
of Amounts Subject to Section 409A. Notwithstanding anything in the Plan to the contrary, if any amount that is subject to
Section 409A of the Code is to be paid or distributed solely on account of a Change in Control (as opposed to being paid or distributed
on account of termination of employment or within a reasonable time following the lapse of any substantial risk of forfeiture with
respect to the corresponding Award), solely for purposes of determining whether such distribution or payment shall be made in connection
with a Change in Control, the term Change in Control shall be deemed to be defined in the manner provided in Section 409A of the
Code and the regulations thereunder. If any such distribution or payment cannot be made because an event that constitutes a Change
in Control under the Plan is not a change in control as defined under Section 409A, then such distribution or payment shall be
distributed or paid at the next event, occurrence or date at which such distribution or payment could be made in compliance with
the requirements of Section 409A of the Code.

 

    	 

    	 

    

 

SECTION 12

 

AMENDMENT, MODIFICATION,
AND TERMINATION OF PLAN

 

The Board
may at any time terminate or suspend the Plan, and from time to time may amend or modify the Plan; provided, however, that any
amendment which would (a) increase the number of shares available for issuance under the Plan, (b) lower the minimum exercise price
at which an Option or stock-settled Stock Appreciation Right may be granted or (c) extend the maximum term for Options or stock-settled
Stock Appreciation Rights granted hereunder shall be subject to the approval of the Company’s shareholders. Except as otherwise
provided in this Plan or in any Award Agreement, no action of the Board may, without the consent of a Participant, alter or impair
his or her rights under any previously granted Award, except as expressly provided in the Plan or in the applicable Award Agreement.

 

 

SECTION 13

 

MISCELLANEOUS PROVISIONS

 

13.1Transferability
of Awards. No Award granted under the Plan may be sold, transferred, pledged or assigned, or otherwise alienated or hypothecated,
other than in accordance with Section 13.2 below, by will or by laws of descent and distribution; provided that, the Committee
may permit transfers of Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Units or Restricted Shares to
Family Members (including, without limitation, transfers affected by a domestic relations order) subject to such terms and conditions
as the Committee shall determine.

 

13.2Beneficiary
Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan is to be paid or by whom any right under the Plan is to be exercised
in case of his death. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed
by the Committee, and will be effective only when filed by the Participant in writing with the Committee during his lifetime. In
the absence of any such designation, benefits remaining unpaid or Awards outstanding at the Participant’s death shall be
paid to or exercised by (a) the Participant’s surviving spouse or domestic partner, (b) if there is no surviving spouse or
domestic partner, the Participant’s children (including stepchildren and adopted children) per stirpes, or (c) if there is
no surviving spouse or domestic partner and/or children per stirpes, the Participant’s estate.

 

13.3Committee
Discretion. Notwithstanding anything else to the contrary, the Committee may permit all or any portion of any Award to be exercised
following a Participant’s termination of employment for any reason on such terms and subject to such conditions as the Committee
shall determine for a period up to and including, but not beyond, the expiration of the term of such Award. The Committee shall
have the power to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof
will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised
or the time during which it will vest.

 

    	 

    	 

    

 

13.4Interpretation.
Notwithstanding anything contained in the Plan to the contrary, to the extent required to so qualify any Award intended to be qualified
as other performance-based compensation within the meaning of Section 162(m)(4)(c) of the Code, the Committee shall not be entitled
to exercise any discretion otherwise authorized under the Plan (such as the right to authorize payout at a level above that dictated
by the achievement of the relevant Performance Goals) with respect to such Award if the ability to exercise discretion (as opposed
to the exercise of such discretion) would cause such Award to fail to qualify as other performance-based compensation.

 

13.5No
Guarantee of Employment. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any Subsidiary
to terminate any Participant’s employment or service at any time, nor confer upon any Participant any right to continue in
the employ or service of the Company or any Subsidiary or affiliate.

 

13.6Tax
Withholding. The Company or any Subsidiary shall have the power to withhold, or require a Participant to remit to the Company
or such Subsidiary promptly upon notification of the amount due, an amount, which may include shares of Common Stock, sufficient
to satisfy Federal, state and local, including foreign, withholding tax requirements with respect to any Award (including payments
made pursuant to Section 9), and the Company may defer payment of cash or issuance or delivery of Common Stock until such requirements
are satisfied. The Committee may, in its discretion, permit a Participant to elect, subject to such conditions as the Committee
shall impose (i) to have Common Stock otherwise issuable or deliverable under the Plan withheld by the Company or (ii) to deliver
to the Company previously acquired shares of Common Stock, in each case, having a Fair Market Value sufficient to satisfy not more
than the Participant’s statutory minimum Federal, state and local tax obligations associated with the transaction.

 

13.7Indemnification.
Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with
or resulting from any claim, action, suit, or proceeding to which he may be made a party or in which he may be involved by reason
of any action taken or failure to act under the Plan, provided he shall give the Company an opportunity, at its own expense, to
handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification
shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under
the Company’s Articles of Incorporation or By-laws, by contract, as a matter of law, or otherwise.

 

13.8No
Limitation on Compensation. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans
or to pay compensation to its employees in cash or property, in a manner which is not expressly authorized under the Plan.

 

    	 

    	 

    

  

13.9Requirements
of Law. The granting of Awards and the issuance of shares of Common Stock shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges or national automated quotation
systems as may be required.

 

13.10Governing
Law. The Plan, and all Awards made and actions taken thereunder, shall be construed in accordance with and governed by the
laws of the State of Connecticut.

 

13.11Impact
on Benefits. Unless otherwise determined by the Committee, Awards granted under the Plan are not compensation for purposes
of calculating an Employee’s rights under any employee benefit program or arrangement, including any severance arrangement.

 

13.12Securities
Law Compliance. Instruments evidencing Awards may contain such other provisions, not inconsistent with the Plan, as the Committee
deems advisable, including a requirement that the Participant represent to the Company in writing, when an Award is granted or
when he receives shares with respect to such Award (or at such other time as the Committee deems appropriate) that he is accepting
such Award, or receiving or acquiring such shares (unless they are then covered by a Securities Act of 1933 registration statement),
for his own account for investment only and with no present intention to transfer, sell or otherwise dispose of such shares except
such disposition by a legal representative as shall be required by will or the laws of any jurisdiction in winding up the estate
of the Participant. Such shares shall be transferable, or may be sold or otherwise disposed of only if the proposed transfer, sale
or other disposition shall be permissible pursuant to the Plan and if, in the opinion of counsel satisfactory to the Company, such
transfer, sale or other disposition at such time will be in compliance with applicable securities laws.

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