Document:

Exhibit

Exhibit 10.1
Execution Version

FIRST AMENDMENT
FIRST AMENDMENT under the Credit Agreement referred to below, dated as of February 3, 2017 (this “Amendment”), among THE HERTZ CORPORATION, a Delaware corporation (together with its successors and assigns, the “Parent Borrower”), the several banks and other financial institutions parties hereto as Lenders and the Administrative Agent (as defined below).
RECITALS
WHEREAS, the Parent Borrower is party to that certain Credit Agreement, dated as of June 30, 2016 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Parent Borrower, the several banks and other financial institutions from time to time parties thereto, Barclays Bank PLC, as administrative agent (in such capacity, the “Administrative Agent”) and collateral agent (in such capacity, the “Collateral Agent”), Credit Agricole Corporate and Investment Bank, as syndication agent, and Bank of America, N.A., Bank of Montreal, BNP Paribas, Citibank, N.A., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A. and Royal Bank of Canada, each as a co-documentation agent; and
WHEREAS, the Parent Borrower has requested that the Lenders consent to the amendments to the Credit Agreement as set forth herein.
NOW, THEREFORE, in consideration of the covenants and agreements contained herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  
Section 2.    Amendment.  
(a)    Section 1.1 of the Credit Agreement (Defined Terms) is hereby amended as follows:
(i)        in the definition of “Consolidated EBITDA”, by deleting clause (y) and inserting in lieu thereof the following:
 “(y) solely when pro forma effect is to be given to Sales, Purchases or other related transactions for purposes of calculation of the “Consolidated First Lien Leverage Ratio,” “Consolidated Gross Total Corporate Leverage Ratio” and/or “Consolidated Total Leverage Ratio” as applicable, the amount of net cost savings projected by the Parent Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is 24 months after the Closing Date, or 24 months after the consummation of any such Sale, Purchase or other related transaction, respectively (calculated on a pro forma basis as though such cost savings had been 

US-DOCS\77211603.9

realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions (provided that the aggregate amount of such net cost savings included in Consolidated EBITDA pursuant to this clause (y) for any four consecutive quarter period shall not exceed 20% of Consolidated EBITDA for such period (calculated after giving effect to any adjustment pursuant to this clause (y) (which adjustments may be incremental to pro forma adjustments made pursuant to the proviso to the definition of “Consolidated First Lien Leverage Ratio” or “Consolidated Total Corporate Leverage Ratio”) and such cost savings shall be reasonably identifiable and factually supportable as determined in good faith by the Parent Borrower).”
(ii)        by deleting the definition of “Consolidated First Lien Indebtedness” and inserting in lieu thereof the following:
““Consolidated First Lien Indebtedness”:  as of any date of determination, an amount equal to (a) the Consolidated Total Corporate Indebtedness (for purposes of this definition, (i) without regard to clause (4) of the definition thereof and (ii) with respect to clause (2) of the definition thereof, without any deduction in respect of any Indebtedness (A) of a Special Purpose Subsidiary secured by a Lien on Customer Receivables or otherwise Incurred in connection with a Financing Disposition of Customer Receivables or (B) otherwise Incurred in connection with a Special Purpose Financing consisting of Customer Receivables) as of such date that is then either (1) secured by Liens on the Collateral securing the Obligations under the Loan Documents or (2) consists of Indebtedness of the type referenced in clause (ii) of the parenthetical above (other than in the case of each of the foregoing clauses (1) and (2),  (x) Indebtedness secured by a Lien ranking junior to or subordinated to the Lien securing the Obligations under the Loan Documents and (y) property or assets held in a defeasance or similar trust or arrangement for the benefit of the Indebtedness secured thereby) minus (b) Unrestricted Cash.”
(iii)        by deleting the definition of “Consolidated First Lien Leverage Ratio” and inserting in lieu thereof the following:
““Consolidated First Lien Leverage Ratio”:  as of any date of determination, the ratio of (x) Consolidated First Lien Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date; provided that for purposes of this definition, (i) Consolidated First Lien Indebtedness shall be calculated, without duplication, after giving pro forma effect to the entire amount of the Outstanding Revolving Commitments and the entire committed amount of any other revolving credit facility (less the aggregate then undrawn and unexpired amount of the then outstanding letters of credit under such revolving credit facility) of the Parent Borrower and its Restricted Subsidiaries that is secured on a pari passu basis by the same Collateral securing the Loans and (ii) until the Netting Cap Fall-Away Date, the amount of Unrestricted Cash deducted pursuant to clause (b) of the definition of “Consolidated First Lien Indebtedness” shall not exceed $500.0 million) to (y) the aggregate amount of Consolidated 

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EBITDA for the period of the Most Recent Four Quarter Period ending prior to the date of such determination for which consolidated financial statements of the Parent Borrower are available (in each of the foregoing clauses (x) and (y), determined for any four fiscal quarter period (or portion thereof) ending immediately prior to the Closing Date, on a pro forma basis to give effect to the Spin-Off Transactions as if they had occurred at the beginning of such four quarter period), provided, that:
(1)        if since the beginning of such period the Parent Borrower or any Restricted Subsidiary shall have made a Sale (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;
(2)    if since the beginning of such period the Parent Borrower or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and
(3)        if since the beginning of such period any Person became a Restricted Subsidiary or was merged or consolidated with or into the Parent Borrower or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Parent Borrower or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period.
For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other related transaction (subject, in each case, to the provisions and limitations set forth in the definition of “Consolidated EBITDA”)) shall be as determined in good faith by the Parent Borrower.  For the avoidance of doubt, the cap on netting of Unrestricted Cash specified in clause (ii) of the proviso to clause (x) above shall terminate and be of no further effect after the Netting Cap Fall-Away Date.”

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(iv)     by deleting the last paragraph of the definition of “Consolidated Total Corporate Leverage Ratio” and inserting in lieu thereof the following:
“For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other related transaction (subject, in each case, to the provisions and limitations set forth in the definition of “Consolidated EBITDA”)) shall be as determined in good faith by the Parent Borrower.”
(v)    by deleting the definition of “Outstanding Revolving Commitments” and replacing it with the following:
““Outstanding Revolving Commitments”:  as of any date of determination, (a) the aggregate amount of Revolving Commitments at such time minus (b) the aggregate amount of L/C Obligations outstanding pursuant to clause (a) of the definition thereof at such time; provided that the aggregate amount deducted pursuant to this clause (b) of this definition shall not exceed $800.0 million.”
(vi)     by deleting clause (A) in the second parenthetical in clause (i) of the definition of “Maximum Incremental Facilities Amount” and inserting in lieu thereof the following:
“(A) [reserved],”
(vii)        by deleting the reference to “(A)” in the second line of the definition of “Consolidated Total Corporate Indebtedness”;
(viii)    to add the following new definitions, to appear in proper alphabetical order:
“Consolidated Gross Total Corporate Leverage Ratio”:  as of any date of determination, the ratio of (x) Consolidated Total Corporate Indebtedness as at such date (after giving effect to any Incurrence or Discharge of Indebtedness on such date; provided that for purposes of this definition, Consolidated Total Corporate Indebtedness shall be calculated without giving effect to the deduction for Unrestricted Cash in clause (4) of the definition of “Consolidated Total Corporate Indebtedness”) to (y) the aggregate amount of Consolidated EBITDA for the period of the Most Recent Four Quarter Period ending prior to the date of such determination for which consolidated financial statements of the Parent Borrower are available (in each of the foregoing clauses (x) and (y), determined for any four fiscal quarter period (or portion thereof) ending immediately prior to the Closing Date, on a pro forma basis to give effect to the Spin-Off Transactions as if they had occurred at the beginning of such four quarter period), provided, that:

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(1)        if since the beginning of such period the Parent Borrower or any Restricted Subsidiary shall have made a Sale (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;
(2)        if since the beginning of such period the Parent Borrower or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made a Purchase (including any Purchase occurring in connection with a transaction causing a calculation to be made hereunder), Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and
(3)        if since the beginning of such period any Person became a Restricted Subsidiary or was merged or consolidated with or into the Parent Borrower or any Restricted Subsidiary, and since the beginning of such period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the Parent Borrower or a Restricted Subsidiary since the beginning of such period, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period. 
For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof (including in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other related transaction (subject, in each case, to the provisions and limitations set forth in the definition of “Consolidated EBITDA”)) shall be as determined in good faith by the Parent Borrower. 
“Corporate Indebtedness”:  any Indebtedness that does not constitute Consolidated Vehicle Indebtedness. 
“First Amendment Effective Date”: February 3, 2017.
“Netting Cap Fall-Away Date”:  the first date on which the Consolidated Gross Total Corporate Leverage Ratio would be equal to or less than 6.00:1.00 as of the last day of two consecutive Most Recent Four Quarter Periods ending after December 31, 2017 for which consolidated financial statements of the Parent Borrower are available.

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“RP Blocker Termination Date”:  the first date on which the Consolidated Total Corporate Leverage Ratio would be equal to or less than 4.00:1.00 as of the last day of two consecutive Most Recent Four Quarter Periods for which consolidated financial statements of the Parent Borrower are available.
(b)    Clause (p) of Section 8.2 of the Credit Agreement (Limitation on Liens) is hereby amended by deleting the following language:
“(A) for purposes of so calculating the Consolidated First Lien Leverage Ratio under this clause (i), pro forma effect shall be given to the entire amount of the Outstanding Revolving Commitments and the entire committed amount of any other revolving credit facility (less the aggregate then undrawn and unexpired amount of the then outstanding letters of credit under such revolving credit facility) of the Parent Borrower and its Restricted Subsidiaries that is secured on a pari passu basis by the same Collateral securing the Loans and (B)”
(c)    Clause (b)(vii) of Section 8.5 of the Credit Agreement (Limitation on Restricted Payments) is hereby amended by adding the following proviso at the end of such clause (b)(vii):
“provided, further, that the Parent Borrower shall not make any Restricted Payment that is a dividend or distribution on or in respect of, or a purchase, redemption, retirement or other acquisition for value of, Capital Stock of the Parent Borrower pursuant to this Section 8.5(b)(vii) until the RP Blocker Termination Date;”
(d)    Section 8.9 of the Credit Agreement (Financial Covenant) is hereby amended and restated in its entirety as follows:
“8.9    Financial Covenant.        Commencing with the fiscal quarter ending December 31, 2016, the Parent Borrower shall not permit the Consolidated First Lien Leverage Ratio as at the last day of the Most Recent Four Quarter Period ending during any period set forth below to exceed the ratio set forth below opposite such period below:
	
		
	Fiscal Quarter Ending
	Consolidated First Lien  
Leverage Ratio

	December 31, 2016
	3.00:1.00

	March 31, 2017
	3.25:1.00

	June 30, 2017
	3.25:1.00

	September 30, 2017
	3.25:1.00

	December 31, 2017, and each March 31, June 30 and September 30 ending thereafter
	3.00:1.00

”

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(e)    Section 8 of the Credit Agreement (Negative Covenants) is hereby amended by adding the following as a new Section 8.10 to the Credit Agreement:
“8.10    Limitation on Corporate Indebtedness.        (a)  The Parent Borrower will not, and will not permit any Restricted Subsidiary to, Incur any Corporate Indebtedness; provided, however, that the Parent Borrower or any Restricted Subsidiary may Incur Corporate Indebtedness if on the date of the Incurrence of such Corporate Indebtedness, after giving effect to the Incurrence thereof, either (x) the Consolidated Gross Total Corporate Leverage Ratio would be equal to or less than 6.00:1.00 or (y) the Consolidated Total Corporate Leverage Ratio would be equal to or less than 4.25:1.00.  
(b)        Notwithstanding the foregoing Section 8.10(a), the Parent Borrower and its Restricted Subsidiaries may Incur the following Corporate Indebtedness:
(i)     Indebtedness Incurred pursuant to the Loan Documents or any other Credit Facility (including but not limited to in respect of letters of credit or bankers’ acceptances issued or created thereunder) and Indebtedness Incurred other than under any Credit Facility, and (without limiting the foregoing), in each case, any Refinancing Indebtedness in respect thereof, in each case under this clause (i) in a maximum principal amount at any time outstanding not exceeding in the aggregate the amount equal to (A) $2,400.0 million, plus (B) in the event of any refinancing of any such Indebtedness, the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing;
(ii)     Indebtedness (A) of any Restricted Subsidiary to the Parent Borrower or (B) of the Parent Borrower or any Restricted Subsidiary to any Restricted Subsidiary; provided, that any subsequent issuance or transfer of any Capital Stock of such Restricted Subsidiary to which such Indebtedness is owed, or other event, that results in such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of such Indebtedness (except to the Parent Borrower or a Restricted Subsidiary) will be deemed, in each case, an Incurrence of such Indebtedness by the issuer thereof not permitted by this clause (ii); 
(iii)     any Indebtedness (other than the Indebtedness described in clause (ii) above) outstanding on the First Amendment Effective Date and any Refinancing Indebtedness Incurred in respect of any Indebtedness described in this clause (iii) or Section 8.10(a);
(iv)     (A) Capitalized Lease Obligations in an aggregate principal amount at any time outstanding not exceeding $50.0 million and (B) Purchase Money Obligations, and in each case any Refinancing Indebtedness with respect thereto;  

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(v)Indebtedness consisting of accommodation guarantees for the benefit of trade creditors of the Parent Borrower or any of its Restricted Subsidiaries;
(vi)(A) Guarantees by the Parent Borrower or any Restricted Subsidiary of Indebtedness or any other obligation or liability of the Parent Borrower or any Restricted Subsidiary (other than any Corporate Indebtedness Incurred by the Parent Borrower or such Restricted Subsidiary, as the case may be, in violation of this Section 8.10), or (B) without limiting Section 8.2, Indebtedness of the Parent Borrower or any Restricted Subsidiary arising by reason of any Lien granted by or applicable to such Person securing Indebtedness of the Parent Borrower or any Restricted Subsidiary (other than any Indebtedness Incurred by the Parent Borrower or such Restricted Subsidiary, as the case may be, in violation of this Section 8.10);
(vii)Indebtedness of the Parent Borrower or any Restricted Subsidiary (A) arising from the honoring of a check, draft or similar instrument of such Person drawn against insufficient funds, provided that such Indebtedness is extinguished within five Business Days of its Incurrence, or (B) consisting of guarantees, indemnities, obligations in respect of earnouts or other purchase price adjustments, or similar obligations, Incurred in connection with the acquisition or disposition of any business, assets or Person;
(viii)Indebtedness of the Parent Borrower or any Restricted Subsidiary in respect of (A) letters of credit, bankers’ acceptances or other similar instruments or obligations issued, or relating to liabilities or obligations incurred, in the ordinary course of business (including those issued to governmental entities in connection with self-insurance under applicable workers’ compensation statutes), or (B) completion guarantees, surety, judgment, appeal or performance bonds, or other similar bonds, instruments or obligations, provided, or relating to liabilities or obligations incurred, in the ordinary course of business, or (C) Hedging Obligations, entered into for bona fide hedging purposes, or (D) Management Guarantees, or (E) the financing of insurance premiums in the ordinary course of business, or (F) take-or-pay obligations under supply arrangements incurred in the ordinary course of business, or (G) netting, overdraft protection and other arrangements arising under standard business terms of any bank at which the Parent Borrower or any Restricted Subsidiary maintains an overdraft, cash pooling or other similar facility or arrangement or (H) Bank Products Obligations;
(ix)Indebtedness issuable upon the conversion or exchange of shares of Disqualified Stock issued in accordance with Section 8.10(a), and any Refinancing Indebtedness with respect thereto; and

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(x)Indebtedness of the Parent Borrower or any Restricted Subsidiary in an aggregate principal amount at any time outstanding not exceeding $25.0 million.” 
Section 3.    Conditions to Effectiveness of Amendment. This Amendment shall become effective on the date (such date, the “Effective Date”) on which the following conditions have been satisfied or waived:
(a)        Execution of Amendment.  The Administrative Agent shall have received this Amendment executed and delivered by a duly authorized officer of the Parent Borrower, the Required Lenders and the Required Revolving Lenders.
(b)        Fees.  The Administrative Agent shall have received for the account of each Revolving Lender that executed and delivered a signature page to this Amendment on or prior to 5:00 PM New York City time on February 3, 2017 a consent fee equal to 0.25% of such Revolving Lender’s outstanding Revolving Commitment under the Credit Agreement.
The Administrative Agent shall give prompt notice in writing to the Parent Borrower of the occurrence of the Effective Date.  Each Lender hereby authorizes the Administrative Agent to provide such notice and agrees that such notice shall be irrevocably conclusive and binding upon such Lender.
Section 4.    Representations and Warranties. To induce the other parties hereto to enter into this Amendment, the Parent Borrower hereby represents and warrants, on the Effective Date, to the Administrative Agent and each Lender that: 
(a)    the execution, delivery and performance by the Parent Borrower of this Amendment has been duly authorized by all necessary corporate action on the part of the Parent Borrower, and will not (i) violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected to have a Material Adverse Effect, and (ii) result in, or require, the creation or imposition of any Lien (other than Permitted Liens) on any of such Loan Party’s properties or revenues pursuant to any such Requirement of Law or Contractual Obligation;
(b)    this Amendment constitutes a legal, valid and binding obligation of the Parent Borrower, enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law); and
(c)    all representations and warranties contained in the Credit Agreement are, except to the extent that they relate to a particular date, true and correct in all material respects on and as of the Effective Date.

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Section 5.    Effects on Loan Documents; Acknowledgement.  
(a)    Except as expressly modified hereby, each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and reaffirmed in all respects and shall continue in full force and effect in accordance with its terms and nothing herein can or may be construed as a novation thereof. Except as expressly set forth herein, this Amendment (i) shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent or the Loan Parties under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or any other Loan Document. Each Loan Party reaffirms on the Effective Date its obligations under the Loan Documents to which it is party and the validity, enforceability and perfection of the Liens granted by it pursuant to the Security Documents. This Amendment shall constitute a Loan Document for purposes of the Credit Agreement and from and after the Effective Date, all references to the Credit Agreement in any Loan Document and all references in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement as modified by this Amendment.  Each of the Loan Parties hereby consents to this Amendment and confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement, as amended hereby. 
(b)    Without limiting the foregoing, each of the Loan Parties party to the Guarantee and Collateral Agreement and the other Security Documents, in each case as amended, supplemented or otherwise modified from time to time, hereby (i) acknowledges and agrees that all of its obligations under the Guarantee and Collateral Agreement and the other Security Documents to which it is a party are reaffirmed and remain in full force and effect on a continuous basis, (ii) reaffirms each Lien granted by such Loan Party to the Collateral Agent for the benefit of the Secured Parties and reaffirms the guaranties made by such Loan Party pursuant to the Guarantee and Collateral Agreement, (iii) acknowledges and agrees that the grants of security interests by and the guaranties of such Loan Party contained in the Guarantee and Collateral Agreement and the other Security Documents are, and shall remain, in full force and effect after giving effect to the Amendment, and (iv) agrees that the Borrower Obligations and the Guarantor Obligations (each as defined in the Guarantee and Collateral Agreement) include, among other things and without limitation, the prompt and complete payment and performance by the Parent Borrower when due and payable (whether at the stated maturity, by acceleration or otherwise) of principal and interest on, the Loans.
Section 6.    Expenses.  The Parent Borrower agrees to pay or reimburse the Administrative Agent for (1) all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this Amendment, any other documents prepared in connection herewith 

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and the transactions contemplated hereby, and (2) the reasonable and documented fees, charges and disbursements of Latham & Watkins LLP, as counsel to the Administrative Agent.
Section 7.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
Section 8.    Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
Section 9.    Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
Section 10.    Miscellaneous.  The provisions of Sections 11.13 and 11.15 of the Credit Agreement are incorporated by reference herein and made a part hereof mutatis mutandis.
[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their respective duly authorized officers as of the date first above written.
THE HERTZ CORPORATION 
 
 
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Senior Vice President & Treasurer

[Signature Page to First Amendment]

 

RENTAL CAR INTERMEDIATE HOLDINGS, LLC 
 
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Senior Vice President & Treasurer
THRIFTY INSURANCY AGENCY, INC. 
 
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. 
 
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
FIREFLY RENT A CAR LLC 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Treasurer
HCM MARKETING CORPORATION 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ CAR SALES LLC 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Treasurer

[Signature Page to First Amendment]

 

HERTZ CLAIM MANAGEMENT CORPORATION 
 
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ GLOBAL SERVICES CORPORATION 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ LOCAL EDITION CORP. 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ LOCAL EDITION TRANSPORTING, INC. 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ SYSTEM, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
HERTZ TECHNOLOGIES, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer

[Signature Page to First Amendment]

 

HERTZ TRANSPORTING, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
RENTAL CAR GROUP COMPANY, LLC 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
SMARTZ VEHICLE RENTAL CORPORATION 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
DONLEN CORPORATION 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Assistant Treasurer
DOLLAR RENT A CAR, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
DTG OPERATIONS, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer

[Signature Page to First Amendment]

 

DTG SUPPLY, LLC
By: DTG Operations, Inc., Its sole Member/Manager 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
THRIFTY CAR SALES, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
THRIFTY, LLC
By: Dollar Thrifty Automotive Group, Inc., Its sole Member/Manager 
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
THRIFTY RENT-A-CAR SYSTEM, LLC
By: Thrifty, LLC, Its sole Member/Manager,
By: Dollar Thrifty Automotive Group, Inc., Its     sole Member/Manager  
  
By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer
TRAC ASIA PACIFIC, INC. 
 
 By:    /s/ R. Scott Massengill     
    Name: R. Scott Massengill 
    Title: Vice President & Treasurer

[Signature Page to First Amendment]

 

BARCLAYS BANK PLC, 
as a Lender  
 
 
By:    /s/ Christopher M. Aitkin     
    Name: Christopher M. Aitkin  
    Title: Assistant Vice President 
 

[Signature Page to First Amendment]

 

BANK OF AMERICA, N.A., 
as a Lender  
 
 
By:    /s/ Brian Lukehart             
    Name: Brian Lukehart  
    Title: Director

[Signature Page to First Amendment]

 

BANK OF AMERICA, N.A. CANADA BRANCH, 
as a LC Issuer and a Lender 
 
 
By:    /s/ Medina Sales de Andrade             
    Name: Medina Sales de Andrade  
    Title: Vice President 

[Signature Page to First Amendment]

 

BANK OF MONTREAL,
as a Lender  
 
 
By:    /s/ Joshua Hovermale             
    Name: Joshua Hovermale  
    Title: Director

[Signature Page to First Amendment]

 

BNP PARIBAS, 
as a Lender  
 
 
By:    /s/ Sang W. Han             
    Name: Sang W. Han  
    Title: Vice President
If a second signature is necessary:  
 
 
By:    /s/ Ade Adedeji             
    Name: Ade Adedeji  
    Title: Vice President 

[Signature Page to First Amendment]

 

CAPITAL ONE, NATIONAL ASSOCIATION, 
as a Lender  
 
 
By:    /s/ Thomas L. Savage             
    Name: Thomas L. Savage  
    Title: Vice President 

[Signature Page to First Amendment]

 

CITIBANK N.A., 
as a Lender  
 
 
By:    /s/ Akshay Kulkarni             
    Name: Akshay Kulkarni  
    Title: Vice-President

[Signature Page to First Amendment]

 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 
as a Lender  
 
 
By:    /s/ Kaye Ea                 
    Name: Kaye Ea 
    Title: Managing Director
 
By:    /s/ Gordon Yip             
    Name: Gordon Yip  
    Title: Director

[Signature Page to First Amendment]

 

DEUTSCHE BANK AG NEW YORK BRANCH, 
as a Lender  
 
 
By:    /s/ Marcus Tarkington             
    Name: Marcus Tarkington  
    Title: Director
If a second signature is necessary:
By:    /s/ Dusan Lazarov             
    Name: Dusan Lazarov 
    Title: Director

[Signature Page to First Amendment]

 

GOLDMAN SACHS BANK USA, 
as a Lender  
 
 
By:    /s/ Ushma Dedhiya             
    Name: Ushma Dedhiya  
    Title: Authorized Signatory

[Signature Page to First Amendment]

 

JPMORGAN CHASE BANK, N.A., 
as a Lender  
 
 
By:    /s/ Robert P. Kellas             
    Name: Robert P. Kellas  
    Title: Executive Director

[Signature Page to First Amendment]

 

MIZUHO BANK, LTD., 
as a Lender  
 
 
By:    /s/ James Fayen             
    Name: James Fayen  
    Title: Managing Director

[Signature Page to First Amendment]

 

NATIXIS, NEW YORK BRANCH, 
as a Lender  
 
 
By:    /s/ Gerado Canet             
    Name: Gerardo Canet  
    Title: Managing Director
If a second signature is necessary:
 
By:    /s/ Ronald Lee                 
    Name: Ronald Lee 
    Title: Director

[Signature Page to First Amendment]

 

ROYAL BANK OF CANADA, 
as a Lender  
 
 
By:    /s/ Scott Umbs                 
    Name: Scott Umbs  
    Title: Authorized Signatory

[Signature Page to First Amendment]

 

THE ROYAL BANK OF SCOTLAND plc, 
as a Lender  
 
 
By:    /s/ Sue Sproule             
    Name: Sue Sproule  
    Title: Authorized Signatory

[Signature Page to First Amendment]

 

THE BANK OF NOVA SCOTIA, 
as a Lender  
 
 
By:    /s/ Kim Snyder             
    Name: Kim Snyder  
    Title: Director

[Signature Page to First Amendment]

 

UNICREDIT BANK AG, NEW YORK BRANCH, 
as a Lender  
 
 
By:    /s/ Ken Hamilton             
    Name: Ken Hamilton 
    Title: Managing Director
 
By:    /s/ Thilo Huber             
    Name: Thilo Huber  
    Title: Director

[Signature Page to First Amendment]Exhibit 10.1

 

SEPARATION
AGREEMENT AND MUTUAL RELEASE

 

This
Separation Agreement and Mutual Release (hereinafter “Agreement”), is made and entered into by and between Boris Maslov
(“Employee”) and Ener-Core, Inc., a Delaware corporation (the “Company”), with reference to the following:

 

A.      Employee
was employed by the Company pursuant to the terms of an Employment Agreement effective as of December 31, 2012, and Amendment
to Employment Agreement effective as of May 23, 2014 (collectively, the “Employment Agreement”).

 

B.       Employee
and the Company (collectively, the “Parties”) now mutually desire to end the employment relationship pursuant to the
terms of this Agreement and this Agreement shall be in lieu of any severance payments, benefits or notice provisions as provided
in the Employment Agreement.

 

C.       The
Parties further desire to settle, compromise, and resolve fully and finally any and all claims and disputes, whether known or
unknown, which exist or could exist on Employee’s behalf against the Company, and on the Company’s behalf against
the Employee, from the beginning of time through the date of execution of this Agreement.

 

NOW,
THEREFORE, in consideration of the covenants and promises contained herein, the Parties hereto agree as follows:

 

1.       Termination
of Employment Relationship. The Company and Employee have mutually agreed to terminate the employment relationship effective
on January 31, 2017 (“the Termination Date”). On the Termination Date, Employee shall be paid for all accrued but
unused paid time off (vacation), as well as all salary earned and unpaid through the Termination Date; Employee shall further
be entitled to any pending reimbursement for Company expenses incurred by Employee prior to the Termination Date in accordance
with Company policies. At the Termination Date, Employee hereby resigns from (i) all officer positions with the Company (including
without limitation the positions of President, Chief Operating Officer and Chief Technology Officer of the Company) and any officer,
director or employee positions with its subsidiaries and affiliates and (ii) any fiduciary, administrative or other committees
or powers, including with respect to any employee benefit plans or bank accounts of the Company. Employee understands and agrees
that he is no longer authorized to act for or on behalf of the Company in any capacity except as directed and that the terms of
his Employment Agreement will be terminated effective on the Termination Date, except for those provisions that are specifically
intended to survive termination as indicated in the Employment Agreement or incorporated by reference in this Agreement. Notwithstanding
anything herein, Company and Employee acknowledge and agree that Sections 7 and 8 of the Employee Agreement are, by this Agreement,
specifically intended not to survive or have any effect upon the payments being made, and to be made, hereunder. Employee further
understands and agrees that all rights and benefits relating to employment with the Company shall be forever terminated on the
Termination Date and that Employee is not entitled to receive and will not claim any compensation, payments or benefits from the
Company except for those payments and benefits that are expressly set forth in this Agreement, and that this Agreement is expressly
intended to supersede and replace any severance pay or benefits that Employee might otherwise claim pursuant to his Employment
Agreement, specifically including those set forth in Sections 7 and 8 therein. However, upon termination, Employee shall be entitled
to receive any rights and benefits as a terminated employee with respect to Employee’s participation in the Company’s
health and welfare and/or retirement benefit plans, which shall be provided pursuant to operation of law and under the terms of
those respective plans. Employee will be provided with COBRA notice in a separate writing after the Termination Date that sets
forth information relating to his entitlement to COBRA coverage.

 

     

     

    

 

2.       Severance
Payments and Post-Termination Obligations. 

 

		a.	After
                                         the Effective Date of this Agreement, and provided that Employee complies with all of
                                         the terms of this Agreement, the Company agrees to pay Employee as severance pay a total
                                         severance amount of $90,000 (the “Severance Obligation”) to be paid in eighteen
                                         (18) equal semi-monthly installments on the 15th day and last day of each
                                         month after the Termination Date (commencing February 15, 2017), less applicable statutory
                                         deductions and tax withholdings. Employee agrees that he shall be solely responsible
                                         for any taxes that may be due and owing as a result of payments made pursuant to this
                                         Agreement. The Company may, in its sole discretion, accelerate the payment of the unpaid
                                         balance of the Severance Obligation at any time, less applicable statutory deductions
                                         and tax withholdings.

 

		b.	Employee
                                         acknowledges and agrees that, as of the Termination Date, other than as explicitly set
                                         forth in this Agreement, he is no longer entitled to any other compensation set forth
                                         in his Employment Agreement or pursuant to Company bonus policies, including without
                                         limitation any bonus or incentive compensation, and that any unvested options Employee
                                         holds pursuant to the Company’s incentive plan(s) are hereby relinquished pursuant
                                         to the terms thereof.

 

		c.	As
                                         of the Termination Date, Employee and the Company shall enter into an advisory services
                                         agreement, in the form attached hereto as Exhibit A, pursuant to which Employee
                                         shall provide services to the Company as an advisory board member as set forth therein.

 

3.       Release
of All Claims - Employee. In accordance with the requirements of the Employment Agreement, and as consideration for the
obligations under Section 2 of this Agreement and the release provided in Section 6 of this Agreement, to which Employee is not
otherwise entitled, Employee agrees as follows:

 

		a.	Except
                                         for the payments and other benefits expressly set forth in this Agreement, Employee,
                                         on behalf of himself, his heirs, legal representatives, successors-in-interest, and assigns,
                                         does hereby irrevocably and unconditionally release, acquit, and forever discharge the
                                         Company, including all of its past, present, and future parents, subsidiaries, affiliated
                                         companies, and owners and all of their past, present, and future predecessors, successors,
                                         assigns, agents, directors, officers, employees, representatives, attorneys, and insurers
                                         and all persons acting by, through, under, or in concert with any of them (collectively.
                                         “Company Released Parties”), and each of them, of and from all claims, complaints,
                                         actions, causes of action, rights, demands, debts, obligations, damages, or accountings
                                         of whatever nature, in law or in equity, whether known or unknown, which Employee may
                                         have, in the past may have had, or in the future may have against Company Released Parties,
                                         or any of them, including but not limited to, any and all claims relating to the Employment
                                         Agreement or any other claims based on any contract, express or implied, or breach of
                                         the covenant of good faith and fair dealing; any claims for stock options and/or any
                                         stock, equity or other ownership interest in the Company; any claims for wrongful termination,
                                         violation of public policy, constructive discharge, emotional distress, personal injury,
                                         invasion of privacy, defamation, fraud, misrepresentation, breach of fiduciary duty,
                                         unfair business practices, tortious interference, or any other tort or common law claims;
                                         any and all claims for wages, salary, bonuses, commissions, overtime pay, premium pay,
                                         vacation pay, severance pay, benefits, contributions or any other claims for compensation;
                                         any and all claims for damages (including general, special, compensatory, consequential,
                                         liquidated or punitive damages); any and all claims for costs, expenses, attorneys’
                                         fees, interest, civil or criminal penalties, waiting time penalties, or any other available
                                         remedy; and any and all claims arising under any federal, state, city and/or other governmental
                                         statute, law, regulation or ordinance relating to employment, including but not limited
                                         to (as amended), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991,
                                         the Equal Employment Opportunity Act of 1972, the Americans with Disabilities Act, the
                                         Age Discrimination in Employment Act, the Older Worker Benefit Protection Act, the Family
                                         and Medical Leave Act, the Employee Retirement Income Security Act, the California Labor
                                         Code and any applicable Wage Order, the California Business and Professions Code, the
                                         California Family Rights Act, the California Fair Employment and Housing Act covering
                                         discrimination, harassment and retaliation in employment on any protected basis as established
                                         by law (herein collectively, “Claims”).

 

    	 	2	 

     

    

 

		b.	Employee
                                         is also waiving his right to any monetary recovery if such Claims are pursued on his
                                         behalf. Employee confirms that (to his knowledge) Employee has suffered no injuries or
                                         occupational diseases in connection with his employment with the Company that may be
                                         compensable under any state worker’s compensation laws. Employee confirms that
                                         he does not have any pending claim, charge, or suit against the Company Released Parties
                                         or any of their employees in any federal, state, or local court or administrative agency.

 

4.       Waiver
of Rights Under Section 1542. IT IS FURTHER UNDERSTOOD AND AGREED BY EMPLOYEE THAT HE HEREBY EXPRESSLY WAIVES AND RELINQUISHES
ANY AND ALL CLAIMS, RIGHTS OR BENEFITS THAT EMPLOYEE MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

In
connection with such waiver and relinquishment, Employee acknowledges that Employee may hereafter discover claims or facts in
addition to or different from those which Employee now knows or believes to exist with respect to the matters released herein,
but that Employee expressly agrees to fully, finally and forever settle and release any and all claims, known or unknown, suspected
or unsuspected, which exist or may exist on Employee’s behalf against the Company Released Parties at the time of execution
of this Agreement, including, but not limited to, any and all claims relating to or arising from Employee’s employment with
the Company or the termination of that employment.

 

    	 	3	 

     

    

 

5.       ADEA
Release and Effective Date. This Agreement includes a release of claims under the federal Age Discrimination in Employment
Act (“ADEA”), 29 U.S.C. § 626, et seq, including the Older Workers Benefit Protection Act, and in connection
with such waiver and release:

 

		a.	Employee
                                         is hereby advised to consult with an attorney of Employee’s choice (and at Employee’s
                                         own cost) prior to signing this Agreement;

 

		b.	Employee
                                         shall have a period of twenty-one (21) days from January 31, 2017, the date Employee
                                         first received this Agreement, in which to review and consider the terms of this Agreement.
                                         Employee understands and agrees that the subsequently negotiated and agreed revisions
                                         to the Agreement do not extend this initial 21-day period. Employee may execute this
                                         Agreement at any time during the 21-day period;

 

		c.	Employee
                                         may revoke this Agreement in writing at any time during the first seven (7) days following
                                         Employee’s execution of this Agreement (the “Revocation Period”), and
                                         this Agreement shall not be effective or enforceable until the Revocation Period has
                                         expired. If Employee revokes this Agreement by properly notifying in writing an authorized
                                         representative of the Company of its revocation during the Revocation Period, then this
                                         Agreement shall not be effective or enforceable. Accordingly, the “Effective Date”
                                         of this Agreement shall be on the eighth (8th) day after Employee signs this Agreement
                                         and returns it to the Company, and provided that Employee does not revoke the Agreement
                                         during the Revocation Period.

 

		d.	Employee
                                         acknowledges and agrees that the payments, benefits, further engagement and releases
                                         to be provided to Employee as set forth in this Agreement are in addition to anything
                                         of value that Employee would otherwise be entitled to receive from the Company upon a
                                         mutual separation and constitute valid consideration in exchange for the release of federal
                                         age claims as set forth in this Agreement.

 

6.       Release
of All Claims - Company. As consideration for the releases provided in Section 3 and 4 of this Agreement, other than the
Employee’s obligations set forth in this Agreement and the advisory services agreement referenced herein, the Company, on
behalf of itself, its subsidiaries, affiliates, past, present, and future predecessors, successors, assigns, agents, directors,
officers, employees, and other representatives, does hereby irrevocably and unconditionally release, acquit, and forever discharge
the Employee from all claims, complaints, actions, causes of action, rights, demands, debts, obligations, damages, or accountings
of whatever nature, in law or in equity, whether known or unknown, which the Company may have, in the past may have had, or in
the future may have against Employee, or any of them, including but not limited to, any and all claims relating to the Employment
Agreement, the employment relationship and any other relationships between Company and Employee that are terminated hereby, or
any other claims based on any contract, express or implied, or breach of the covenant of good faith and fair dealing; any claims
for violation of public policy or Company policy; emotional distress, personal injury, invasion of privacy, defamation, fraud,
misrepresentation, breach of fiduciary duty, unfair business practices, tortious interference, or any other tort or common law
claims; any and all claims for damages (including general, special, compensatory, consequential, liquidated or punitive damages);
any and all claims for costs, expenses, attorneys’ fees, interest, civil or criminal penalties, waiting time penalties,
or any other available remedy; and any and all claims arising under any federal, state, city and/or other governmental statute,
law, regulation or ordinance relating to employment.

 

    	 	4	 

     

    

 

7.       Waiver
of Rights Under Section 1542. IT IS FURTHER UNDERSTOOD AND AGREED BY COMPANY THAT IT HEREBY EXPRESSLY WAIVES AND RELINQUISHES
ANY AND ALL CLAIMS, RIGHTS OR BENEFITS THAT COMPANY MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

In
connection with such waiver and relinquishment, Company acknowledges that Company may hereafter discover claims or facts in addition
to or different from those which Company now knows or believes to exist with respect to the matters released herein, but that
Company expressly agrees to fully, finally and forever settle and release any and all claims, known or unknown, suspected or unsuspected,
which exist or may exist on Company’s behalf against the Employee at the time of execution of this Agreement, including,
but not limited to, any and all claims relating to or arising from Company’s employment of the Employee or the termination
of that employment.

 

8.       No
Filing of Claims. The Parties represent and warrant, that as of the date of this Agreement, neither Party presently has
on file any claims, charges, grievances, actions, appeals or complaints against the Employee or the Company Released Parties,
as applicable, in or with any administrative, state, federal or governmental entity, agency, board or court, or before any other
tribunal or panel of arbitrators, public or private, based upon any actions by such Parties that are alleged to have occurred
prior to the date of this Agreement. To the extent any such claims or actions do exist as of the date of this Agreement, each
Party represents and agrees to dismiss, with prejudice, any and all such claims and, if such Party does not have the authority
or ability to dismiss any such claims, such Party hereby expressly agrees that he shall not personally recover or receive any
monetary damages or award relating to any such claims, provided, nothing in this Agreement shall negate, limit or otherwise
prohibit the Employee from exercising his rights communicate with any federal government agency regarding any potential violation
of federal law or regulation, including without limitation to engage with the U.S. Securities and Exchange Commission pursuant
to Section 21F(h) of the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder (“Reserved Rights”).
If applicable, the relevant Party may present this Agreement to any such agency or court as a basis to seek such dismissal or
denial of monetary relief.

 

9.       Ownership
of Claims. The Parties represent and warrant that each is the sole and lawful owner of all rights, title and interest
in and to all released matters, claims and demands as herein contained and that there has been no assignment or other transfer
of any interest of any claim or demand which either may have against the Employee or the Company Released Parties, as applicable.

 

10.     Non-Admission
of Liability. It is expressly understood and agreed by the Parties that nothing contained in this Agreement shall constitute
or be treated as an admission of any wrongdoing or liability on the part of any Party to this Agreement. Each Party expressly
denies that the Employee or the Company Released Parties have engaged in any wrongful or unlawful conduct of any kind or in any
violation of law relating to Employee’s employment relationship with the Company.

 

11.     Confidentiality.
Employee acknowledges that he previously agreed to be bound by the provisions of his Employment Agreement addressing preservation
of Confidential Information and protection of the Company’s intellectual property, and, as a condition of this Agreement,
he acknowledges and confirms that those terms and conditions of his Employment Agreement shall survive the termination of the
employment relationship and shall remain fully enforceable against Employee after the Termination Date, pursuant to the terms
of the Employment Agreement, provided, nothing in such provisions shall negate or undermine the Reserved Rights as set
forth in Section 8 above. Employee acknowledges that this Agreement shall be filed publicly by the Company with the U.S. Securities
and Exchange Commission.

 

    	 	5	 

     

    

 

12.     Return
of Company Property. As a condition of receiving the severance payment set forth in Section 2 above, except as otherwise
instructed by the Company pursuant to the advisory services agreement referenced herein, Employee agrees to return to the Company
on or before the Termination Date all the Company property, equipment, devices, files, documents and data of any kind, whether
stored in paper, disk, tape or any other electronic form, that Employee has in his possession or control. Employee further represents
and agrees that, to the extent he subsequently discovers any Company documents or property of any kind after the Termination Date,
he will promptly return the same (and any copies) to the Company in the same condition that he found them.

 

13.     Attorneys
Fees and Costs. If any legal action is brought under this Agreement for an asserted breach or to enforce any of its terms,
the prevailing party shall be entitled to recover costs and reasonable attorneys fees; provided, however, that,
to the extent the issues raised in any claim or dispute under this Agreement are based on state or federal statutes that provide
for attorneys fees to the prevailing party, then the basis for awarding such attorneys fees shall be consistent with the applicable
standards for awarding attorneys fees to the prevailing party under those respective state or federal statutes and applicable
laws.

 

14.     California
Law Applies. This Agreement, in all respects, shall be interpreted, enforced and governed by and under the laws of the
State of California.

 

15.     Successors
and Assigns. It is expressly understood and agreed by the Parties that this Agreement and all of its terms shall be binding
upon the Parties’ respective representatives, heirs, executors, administrators, successors and assigns. This Agreement and
the releases from the Parties contained herein shall inure to the benefit of the Employee or Company Released Parties, as applicable.

 

16.     Severability.
In the event any provision of this Agreement shall be found by a court of competent jurisdiction to be void, invalid or unenforceable,
the provision shall be deemed modified to the fullest extent permitted by law to cure the invalid or unenforceable provision consistent
with the intent of the Parties, and if that is not possible, then the void, invalid or unenforceable provision shall be deleted
and severed from this Agreement but only to the extent that it does not materially change the terms of this Agreement or alter
the intent of the Parties, and all other provisions of this Agreement shall remain in full force and effect.

 

17.     Integration;
Modification. This Agreement, the Employment Agreement and the advisory services agreement attached hereto to Exhibit
A, constitute a single, integrated, written contract expressing the entire agreement between the Parties regarding the termination
of Employee’s employment and they supersede and replace all prior agreements or understandings between the Parties relating
to the subject matter of this Agreement, whether written, oral or implied. Each Party represents and warrants to the other that
such Party is not relying on any promises, representations or inducements of any kind which do not appear written herein. Each
Party further agrees that this Agreement can be amended or modified only by a written agreement, signed by all Parties.

 

18.     Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all counterparts
so executed shall constitute one agreement binding on all of the Parties hereto, notwithstanding that all of the Parties are not
signatory to the same counterpart. This Agreement may be executed and transmitted either by original, facsimile, or electronic
delivery, each of which will be equally binding as an original upon receipt by the other Party.

 

    	 	6	 

     

    

 

19.     Understanding
and Voluntary Agreement. By signing below, Employee confirms that he is competent to execute this Agreement. Employee
understands and agrees that he may be waiving significant legal rights by signing this Agreement. Employee represents and agrees
that he has entered into this Agreement voluntarily, with a full understanding of and in agreement with all of its terms, and
after having had the opportunity to consult with an attorney of his choice. By signing below, Company confirms that its entry
into this Agreement has been authorized by the Company’s board of directors and that the Company’s signatory was specifically
authorized to execute and deliver this Agreement on behalf of the Company.

 

20.     Section
409A. This Agreement is intended to comply, to the extent applicable, with the provisions of Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”), and shall, to the extent practicable, be construed in accordance
with such section. For purposes of this Agreement, each amount to be paid or benefit to be provided will be construed as a separate
identified payment for purposes of Section 409A, and any payments that are due within the “short term deferral period”
as defined in Section 409A will not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding
anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or additional taxes
under Section 409A, amounts reimbursable to Employee under this Agreement shall be paid to Employee on or before the last day
of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind
benefits provided to Employee) during any one year may not effect amounts reimbursable or provided in any subsequent year.

 

21.     Interpretation.
This Agreement is to be interpreted in accordance with its fair meaning and not strictly for or against any Party. This Agreement
will not be construed more strictly against one Party than against the other merely by virtue of the fact that it may have been
prepared by counsel for one of the Parties, it being recognized that all Parties have contributed substantially and materially
to the preparation of this Agreement.

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Separation Agreement and Mutual Release on the dates indicated below.

 

	Dated:
    February 1, 2017	BORIS
    MASLOV
	 	 
	 	/s/
    Boris A. Maslov

 

	Dated:
    February 1, 2017	ENER-CORE,
    INC.
	 	 	 
	 	By:	/s/
    Domonic J. Carney
	 	Its:	CFO

 

    	 	7	 

     

    

 

EXHIBIT
A

 

Advisory
Services Agreement

 

[Omitted]

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