Arista Power, Inc. entered into a Loan Agreement with TMK-ENT, Inc. providing for a $500,000 working capital revolving line of credit for the company. Advances under the Loan Agreement, which will be evidenced by a committed revolving credit note, bear interest at 10% per year, payable annually. The note matures on September 4, 2013, and all borrowings under the Loan Agreement are due and payable on that date.

As additional consideration for entering the Loan Agreement, the company issued to the Lender warrants with a 10-year term to purchase an aggregate of 500,000 shares of common stock of the company at $1.80 per share pursuant to a Warrant Purchase Agreement. The transactions were exempt from registration under Rule 506 of Regulation D under the Securities Act of 1933, as amended, or the Securities Act. The warrants were issued in a transaction not involving a public offering.

The Lender is an accredited investor as defined under the Securities Act and Regulation D, was knowledgeable about the company's operations and financial condition and had access to such information. The transactions did not involve any form of general solicitation. The warrants and underlying shares issued are restricted from resale and the warrants were acquired for investment purposes only.