Document:

Exhibit 4.4

 

AMENDMENT AGREEMENT AND WAIVER

 

This AMENDMENT AGREEMENT
AND WAIVER (the “Amendment”), dated as of December 31, 2018, is made by and between Ener-Core, Inc., a Delaware
corporation, with headquarters located at 30100 Town Center Dr., Suite O-209, Laguna Niguel, California 92677 (the “Company”),
and the investor listed on the signature page attached hereto (the “Holder”). Capitalized terms used herein
and not otherwise defined herein shall have the respective meanings set forth in the June 2018 SPA (as defined below), as applicable.

 

RECITALS

 

A. Reference is made
to that certain Securities Purchase Agreement dated as of June 5, 2018, by and among the Company, the Holder and the other investors
listed on the signature pages attached thereto and party to a joinder agreement thereto (as amended and/or restated from time to
time, the “June 2018 SPA”); and the Senior Secured Notes issued to the Holder pursuant thereto (as amended from
time to time prior to the date hereof, the “June 2018 Notes”);

 

B. The Company intends
to issue additional convertible senior secured promissory notes in the aggregate principal amount of up to $4,444,445 (the “December
2018 Notes”) and related warrants to purchase up to an aggregate of 8,888,889 shares of the Company’s Common Stock
(the “December 2018 Warrants”) in order to support its working capital needs;

 

C. The Company and
the Holder desire to amend each of the June 2018 Notes as set forth herein and waive the application of certain provisions in the
June 2018 SPA and June 2018 Notes in connection with the issuance of such December 2018 Notes; and

 

D. In compliance with
Section 15 of the June 2018 Notes and the June 2018 SPA, this Amendment shall only be effective upon the execution and delivery
of this Amendment and agreements in form and substance identical to this Amendment (other than with respect to the identity of
the Holder and any provision regarding the reimbursement of legal fees) (together with this Amendment, the “Amendments”)
by the Required Holders (as defined in the June 2018 Notes and June 2018 SPA, respectively) (such time, the “Effective
Time”).

 

AGREEMENT

 

NOW THEREFORE,
in consideration of the foregoing mutual premises and the covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt, and legal adequacy of which is hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

ARTICLE I

SECURITIES PURCHASE
AGREEMENT

 

1.
Waiver of Effect of Issuance of December 2018 Notes on June 2018 SPA. Each Required Holder hereby consents to the waiver
of, and hereby irrevocably waives, the effect of the issuance of the December 2018 Notes and the December 2018 Warrants pursuant
to that certain December 2018 SPA on any representation, warranty or covenant in the June 2018 SPA, including but not limited to
Section 4(k) thereof, to the extent applicable.

 

     

     

    

 

ARTICLE II

NOTES

 

1.
Waiver of Effect of Issuance of December 2018 Notes on June 2018 Notes. Each Required Holder hereby consents to the waiver
of, and hereby irrevocably waives, the effect of the issuance of the December 2018 Notes pursuant to the December 2018 SPA on any
representation, warranty or covenant in the June 2018 Notes, including but not limited to Sections 4(a) and 14(d) thereof.

 

2. Waiver of Effect
of Payments Under Side Letter. Each Required Holder hereby consents to the waiver of, and irrevocably waives, the effect of
any payments of principal, interest and/or late charges outstanding under the December 2018 Notes pursuant to the terms of that
certain side letter, dated as of [__] (the “Side Letter”), by and among the Company and the holders of the December
2018 Notes, and, without limiting the generality of the foregoing, hereby acknowledges and agrees that any such payments pursuant
to the terms of the Side Letter shall not (i) constitute an Event of Default (as defined in the June 2018 Notes), (ii) constitute
a breach of Section 14(d) of the June 2018 Notes or (iii) obligate the Company to repay or redeem the June 2018 Notes on the terms
described in the Side Letter.

 

3. Waiver of Events
of Default. Any Event of Default pursuant to Section 4(a) of each of the June 2018 Notes occurring from or after the Issuance
Date (as defined in the June 2018 Notes), and through and including the effective date of this Amendment, including any Event of
Default related to the Company’s filing of reports required to be filed by it with the SEC pursuant to the reporting requirements
of the 1934 Act, is irrevocably waived on behalf of all holders of June 2018 Notes. Such waiver shall extend to, without limitation
any adjustments of terms, applications of alternate rights and any Company restrictions that would have arisen from any such Event
of Default.

 

4. Maturity Date.
The third sentence of Section 1 of the June 2018 Notes is hereby amended and restated as follows:

 

“The “Maturity Date”
shall be January 31, 2019, as may be extended at the option of the Holder (i) in the event that, and for so long as, an Event of
Default (as defined in Section 4(a)) shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to
this Section 1) or any event shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section
1) that with the passage of time and the failure to cure would result in an Event of Default and (ii) through the date that is
ten (10) Business Days after the consummation of a Change of Control in the event that a Change of Control is publicly announced
or a Change of Control Notice (as defined in Section 5(b)) is delivered prior to the Maturity Date.”

 

Notwithstanding the
foregoing, effective upon the issuance by the Company of December 2018 Notes for aggregate gross proceeds of at least $2.0 million
pursuant to the December 2018 SPA, the third sentence of Section 1 of the June 2018 Notes is hereby amended and restated as follows:

 

“The “Maturity Date”
shall be December 31, 2020, as may be extended at the option of the Holder (i) in the event that, and for so long as, an Event
of Default (as defined in Section 4(a)) shall have occurred and be continuing on the Maturity Date (as may be extended pursuant
to this Section 1) or any event shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to this
Section 1) that with the passage of time and the failure to cure would result in an Event of Default and (ii) through the date
that is ten (10) Business Days after the consummation of a Change of Control in the event that a Change of Control is publicly
announced or a Change of Control Notice (as defined in Section 5(b)) is delivered prior to the Maturity Date.”

 

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5. Optional Redemption
at the Holder’s Election. The first sentence of Section 7 of the June 2018 Notes is hereby amended and restated as follows:

 

“At any time from and after
February 1, 2019 and provided that the Company shall not have received either (i) initial deposits for at least eight 2 megawatt
(MW) Power Oxidizer units or (ii) firm purchase orders totaling not less than $3,500,000 and initial payment collections of at
least $1,600,000, in each case during the period commencing on the Issuance Date and ending on January 31, 2019 (inclusive), the
Holder shall have the right, in its sole and absolute discretion, at any time or times, to require that the Company redeem (a “Holder
Optional Redemption”) all or any portion of the Conversion Amount of this Note then outstanding by delivering written
notice thereof (a “Holder Optional Redemption Notice” and the date the Holder delivers such notice, the “Holder
Optional Redemption Notice Date”) to the Company, which notice shall state (i) the portion of this Note that is being
redeemed and (ii) the date on which the Holder Optional Redemption shall occur, which date shall be not less than three (3) Business
Days from the Holder Optional Redemption Notice Date (the “Holder Optional Redemption Date”).”

 

Notwithstanding the
foregoing, effective upon the issuance by the Company of December 2018 Notes for aggregate gross proceeds of at least $2.0 million
pursuant to the December 2018 SPA:

 

		a.	Section 7. Section 7 of the June 2018 Notes is hereby
amended and restated as follows:

 

“[Reserved].”

 

		b.	Section 11(a). The third sentence of Section 11(a)
of the June 2018 Notes is hereby deleted.

 

		c.	Section 30(ee). Section 30(ee) is hereby amended
and restated as follows:

 

“Redemption Dates”
means, collectively, the Event of Default Redemption Dates, the Change of Control Redemption Dates and the Company Optional Redemption
Dates, each of the foregoing, individually, a Redemption Date.”

 

		d.	Section 30(ff). Section 30(ff) is hereby amended
and restated as follows:

 

“Redemption Notices”
means, collectively, the Event of Default Redemption Notices, the Change of Control Redemption Notices and the Company Optional
Redemption Notices, each of the foregoing, individually, a Redemption Notice.

 

		e.	Section 30(gg). Section 30(gg) is hereby amended
and restated as follows:

 

“Redemption Prices”
means, collectively, the Event of Default Redemption Prices, the Change of Control Redemption Prices and the Company Optional Redemption
Prices, each of the foregoing, individually, a Redemption Price”

 

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6. Amendment of
Definition of “Permitted Indebtedness”. Section 30(aa) of the June 2018 Notes is hereby amended and restated as
follows:

 

“(aa) “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note and the Other Notes, (ii) trade payables incurred in the
ordinary course of business consistent with past practice, (iii) Indebtedness incurred by the Company that is made expressly subordinate
in right of payment to the Indebtedness evidenced by this Note, as reflected in a written agreement acceptable to the Required
Holders and approved by the Required Holders in writing, and which Indebtedness does not provide at any time for (a) the payment,
prepayment, repayment, repurchase or defeasance, directly or indirectly, of any principal or premium, if any, thereon until ninety-one
(91) days after the Maturity Date or later and (b) total interest and fees at a rate in excess of twelve percent (12.0%) per annum,
(iv) Indebtedness secured by Permitted Liens described in clauses (iv) of the definition of Permitted Liens, (v) deemed Indebtedness
arising from one or more operating leases, including, without limitation, the leases for one or more test turbines from Dresser-Rand,
but only if such lease, if secured, is secured solely by such test turbine, (vi) Indebtedness incurred pursuant to the Backstop
Agreement, (vii) Indebtedness by the notes issued pursuant to the Securities Purchase Agreement dated as of September 1, 2016 by
and among the Company and the investors thereto, as subsequently amended, restated or modified thereafter), (viii) the Additional
Notes issued prior to or on the Initial Closing Date, provided that the Indebtedness evidenced by the Additional Notes is not increased,
refinanced, amended, changed or modified on or after the date of issuance thereof, (ix) the guarantees pursuant to the Guaranty
Agreements, and (x) those certain senior secured convertible notes issued by the Company pursuant to that certain Securities Purchase
Agreement, dated as of December [__], 2018 by and among the Company and the investors listed on the signature pages attached thereto,
as subsequently amended, restated or modified thereafter.”

 

ARTICLE III

MISCELLANEOUS

 

1. Effect of this
Amendment. This Amendment shall form a part of the June 2018 Notes for all purposes, and each holder of June 2018 Notes shall
be bound hereby. This Amendment shall only be deemed to be in full force and effect from and after both the execution of this Amendment
by the parties hereto and the execution of Amendments substantially identical to this Amendment by the Company and the Required
Holders (as defined in the June 2018 Notes and June 2018 SPA, respectively). From and after such effectiveness, any reference to
the June 2018 Notes shall be deemed to be a reference to the June 2018 Notes, as amended hereby. Except as specifically amended
as set forth herein, each term and condition of the June 2018 Notes shall continue in full force and effect.

 

2. Entire Agreement.
This Amendment, together with the June 2018 SPA and June 2018 Notes, as amended to date, contains the entire agreement of the parties
with respect to the matters contemplated hereby and thereby, and supersedes any prior or contemporaneous written or oral agreements
between them concerning the subject matter of this Amendment.

 

3. Governing Law.
This Amendment shall be governed by the internal law of the State of New York.

 

4. Counterparts.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and
the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so
that all signature pages are physically attached to the same document. This Amendment may be executed by fax or electronic mail,
in PDF format, and no party hereto may contest this Amendment’s validity solely because a signature was faxed or otherwise
sent electronically.

 

[Signature Page Follows]

 

    4

     

    

 

IN WITNESS WHEREOF,
the Holder and the Company have caused their respective signature pages to this Amendment to be duly executed as of the date first
written above.

 

	 	COMPANY:
	 	 
	 	ENER-CORE, INC.
	 	 	 
	 	By:	

	 	 	Name:	Domonic J. Carney
	 	 	Title:  	Chief Financial Officer

 

 

 

Signature
Page to Amendment Agreement and Waiver—June 2018 Notes

 

     

     

    

 

IN WITNESS WHEREOF,
the Holder and the Company have caused their respective signature pages to this Amendment to be duly executed as of the date first
written above.

 

	 	HOLDER:
	 	 	 
	 	By:	

	 	 	Name:	 
	 	 	Title:	 

 

 

 

Signature
Page to Amendment Agreement and Waiver—June 2018 NotesExhibit

Exhibit 10.1

RESTRICTED STOCK UNIT AWARD AGREEMENT
UNDER THE UNIFIRST CORPORATION 
2010 STOCK OPTION AND INCENTIVE PLAN
	
		
	Name of Grantee:
	 

	 
	 

	No of Restricted Stock Units:
	 

	 
	 

	Grant Date:
	 

        
Pursuant to the UniFirst Corporation Amended and Restated 2010 Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), UniFirst Corporation (the “Company”) hereby grants an award of the number of Restricted Stock Units listed above (an “Award”) to the Grantee named above.  Each Restricted Stock Unit shall relate to one share of Common Stock, par value $0.10 per share (the “Stock”), of the Company.
1.Restrictions on Transfer of Award.  The Grantee shall have no rights with respect to this Award unless Grantee shall have accepted this Award by signing and delivering a copy of this Award Agreement as set forth herein.  If this Award is not so accepted within 30 days of the Grant Date, the Grantee shall forfeit the Award in its entirety (regardless of whether vested or unvested). This Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of by the Grantee, and any shares of Stock issuable with respect to the Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of until (i) the Restricted Stock Units have been earned and have vested as provided in Paragraphs 2 and 3 of this Agreement and (ii) shares of Stock have been issued to the Grantee in accordance with the terms of the Plan and this Agreement.

2.Earning of Restricted Stock Units. 
(a)The number of Restricted Stock Units to be earned by the Grantee will vary depending upon the Company’s achievement of the Performance Criteria, as set forth below in this Paragraph 2.  The number of Restricted Stock Units determined pursuant to this Paragraph 2 shall be deemed earned by the Grantee. 
(b)The Performance Criteria for the determination of the number of Restricted Stock Units earned hereunder will be based on the Company’s consolidated revenue adjusted as set forth in Paragraph 2(c) (“Revenue”) and operating margin adjusted as set forth in Paragraph 2(c) (“Operating Margin”) for the Company’s [_____] fiscal year on a cumulative basis (“Fiscal [_____]”).  The maximum number of Restricted Stock Units that may be earned on account of the achievement of the Performance Criteria based on the Company’s Revenue is [______] Restricted Stock Units. The maximum number of Restricted Stock Units that may be earned on account of the achievement of the Performance Criteria based on the Company’s Operating Margin is [_____] Restricted Stock Units.  Such Performance Criteria and the number of Restricted Stock Units that will be earned upon achievement of such Performance Criteria are as follows:
Fiscal [______]:  
	
			
	 
	Performance Achieved
	Number of Shares Earned

	Threshold:
	 
	 

	Target:
	 
	 

	Maximum:
	 
	 

(c)The Administrator shall certify at its first meeting after the first public release by the Company of its audited financial statements for Fiscal [____]whether the Performance Criteria have been met with respect to such fiscal year (the “Certification Date”).  
All determinations regarding satisfaction of the Performance Criteria will be based on the Company’s audited financial statements and its books and records for Fiscal [____]; provided that (1) the Company’s revenues shall be adjusted to reflect the impact of any decrease in the exchange rate of the Canadian dollar to the U.S. dollar from [____] U.S. dollars to [___] Canadian dollars during Fiscal [_____], and (2) the Company’s operating margin shall be adjusted to add back non-cash items, including depreciation, intangibles amortization and stock-based compensation and to reflect the following exclusions: changes in Generally Accepted Accounting Principles impacting operating income, any losses, costs or expenses associated with or 

1

arising from any claims, litigation, regulatory investigations, or environmental investigations and remediation which in the aggregate in Fiscal [____]are in excess of $[____]; any losses, costs or expenses associated with or arising from any impairment of tangible or intangible assets; any losses, costs or expenses associated with or arising from any natural catastrophes, war, terrorism, business interruption or similar events; certain gain contingencies determined by the Administrator; and any costs for Fiscal [____]for any outside contractor or consultant, or internal employees (for those individuals hired after [____]), in each case associated with or related to the planning, development, testing, training, transition, or deployment of the UniFirst Billing System which are expensed for financial statement reporting purposes.
3.Vesting of Restricted Stock Units.  To the extent the Restricted Stock Units are earned pursuant to and in accordance with Paragraph 2 of this Agreement, the restrictions and conditions of Paragraph 1 of this Agreement shall lapse and the earned Restricted Stock Units shall vest in full on the Certification Date.  On or following the Certification Date, the Restricted Stock Units shall be settled as set forth in Paragraph 5 below.  
4.Termination of Employment.  If the Grantee’s employment with the Company and its Subsidiaries terminates for any reason (including death or disability) prior to the satisfaction of the vesting conditions set forth in Paragraph 3, any Restricted Stock Units that have not vested as of such date shall automatically and without notice terminate and be forfeited, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such unvested Restricted Stock Units.
5.Issuance of Shares of Stock.  As soon as practicable on or following the Certification Date (but in no event later than two and one-half months after the end of the year in which the Certification Date occurs), the Company shall issue to the Grantee the number of shares of Stock equal to the aggregate number of Restricted Stock Units that have vested pursuant to Paragraph 3 of this Agreement on such date and the Grantee shall thereafter have all the rights of a stockholder of the Company with respect to such shares. 
6.Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.
7.Tax Withholding.   The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Company shall have the authority to cause the required minimum tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued to the Grantee a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due.
8.Section 409A of the Code.  This Agreement shall be interpreted in such a manner that all provisions relating to the settlement of the Award are exempt from the requirements of Section 409A of the Code as “short-term deferrals” as described in Section 409A of the Code.
9.No Obligation to Continue Employment.  Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Grantee at any time.
10.Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.
11.Data Privacy Consent.  In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate.  The Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.
12.Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

2

	
			
	UNIFIRST CORPORATION

	 
	 
	 

	By:
	 
	 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.    
	
					
	Dated:
	 
	 
	 
	 

	 
	 
	 
	Grantee’s Signature
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Grantee’s name and address:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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