webpack command fails with below error.

Steps performed.

1. Downloaded the ZIP from git and unzipped it.
2. npm install
3. webpack

Hash: 396f0bfb9d565b6f60f0 Version: webpack 1.13.3 Time: 703ms + 1 hidden modules

ERROR in ./modules/main.js Module build failed: ReferenceError: [BABEL] D:\temporary\Working\webpack-howto-master\example\modules\main.js: Unknown option: direct.presets at Logger.error (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\file\logger.js:58:11) at OptionManager.mergeOptions (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\file\options\option-manager.js:126:29) at OptionManager.init (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\file\options\option-manager.js:216:10) at File.initOptions (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\file\index.js:147:75) at new File (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\file\index.js:137:22) at Pipeline.transform (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-core\lib\transformation\pipeline.js:164:16) at transpile (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-loader\index.js:12:22) at Object.module.exports (D:\temporary\Working\webpack-howto-master\example\node_modules\babel-loader\index.js:71:12)