Document:

Exhibit
4.18

 

WARRANT
AGREEMENT

 

This
Warrant Agreement (“Warrant Agreement”) is made as of  ________, 2015, by and between Ener-Core, Inc., a Delaware
corporation, (the “Company”), and VStock Transfer, LLC (the “Warrant Agent”).

 

WHEREAS,
the Company is engaged in a public offering (the “Public Offering”) of [___________] units (the “Units”),
each composed of a share of common stock, par value $0.0001 per share (the “Common Stock”) and one warrant
(the “Warrant”) entitling its holder to purchase 0.25 of a share of Common Stock, subject to adjustment
as set forth herein (the “Warrant Shares”) (including the additional Units issuable to the underwriters if
the underwriters’ over-allotment option is exercised);

 

WHEREAS,
the Company has filed, with the Securities and Exchange Commission (the “SEC”), a registration statement on
Form S-1 (Registration No. 333-205916), as amended (the “Registration Statement”), for the registration, under
the Securities Act of 1933, as amended (the “Act”), of Units, Common Stock, the Warrants and the Warrant Shares;
and

 

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

 

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

 

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

 

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

 

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

 

2.
Warrants.

 

2.1
Form of Warrant. Each Warrant shall be: (a) issued in registered form only, (b) in substantially the form of Exhibit A
hereto (a “Warrant Certificate”), the provisions of which are incorporated herein, and (c) signed by, or bear
the facsimile signature of, the Chairman of the Board or, the Chief Executive Officer or the President, and the Treasurer, Secretary
or Assistant Secretary of the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall
have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with
the same effect as if he or she had not ceased to be such at the date of issuance.

 

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

 

    

     

    

 

2.3
Registration.

 

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

 

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

 

At
the request of any Holder of Warrants, submitted to the Warrant Agent via the Depositary as the initial Registered Holder as to
Book-Entry Warrants, the Warrant Agent shall deliver to such purchaser definitive Warrant Certificates in physical form, registered
in the name of such purchaser, evidencing the Warrants purchased by such Holder.

 

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

 

2.4
Separate Issuance of Warrants. The Common Stock and the Warrants comprising the Units shall be issued separately and shall
be transferable separately immediately upon issuance. The Common Stock and the Warrants comprising the Units will begin to trade
separately on or promptly after the date that is the effective date of the Registration Statement (the “Detachment Date”).
Holders of the Common Stock and Warrants may combine such securities to trade as Units pursuant to Section 5.1.

 

2.5
Uncertificated Warrants. Notwithstanding the foregoing and anything else herein to the contrary, the Warrants may be issued
in uncertificated form.

 

3.
Terms and Exercise of Warrants.

 

3.1
Warrant Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Registered Holder thereof, subject
to the provisions of such Warrant and of this Warrant Agreement, to purchase from the Company the number of shares of Common Stock
stated therein, at the price of $______ per whole share of Common Stock, subject to the adjustments provided in Section 4 hereof
and in the last sentence of this Section 3.1. The term “Warrant Price” as used in this Warrant Agreement refers
to the price per whole share at which Common Stock may be purchased at the time such Warrant is exercised. The Company, in its
sole discretion, may lower the Warrant Price at any time prior to the Expiration Date (as defined below); provided, that any such
reduction remains in effect for no less than ten business days and shall be identical in percentage terms among all of the then
outstanding Warrants.

 

    	 	2	 

     

    

 

3.2
Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing
on the date of closing of the Company’s initial public offering of the Warrants and terminating at 5:00 p.m., New York City
time, on                    , 20201 (“Expiration Date”). Each
Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect
thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date. The Company may extend the duration
of the Warrants by delaying the Expiration Date; provided, however, that the Company will provide notice of not less than 20 days
to Registered Holders of such extension and that such extension shall be identical in duration among all of the then outstanding
Warrants.

 

3.3
Exercise of Warrants.

 

3.3.1
Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a Warrant, when countersigned by the Warrant
Agent, may be exercised by the Registered Holder thereof by surrendering at the office of the Warrant Agent, or at the office
of its successor as Warrant Agent, at 18 Lafayette Place, Woodmere, NY 11598, (i) the Warrant Certificate evidencing the Warrants
to be exercised, or, in the case of a Book-Entry Warrant Certificate, the Warrants to be exercised (the “Book-Entry Warrants”)
shown on the records of the Depository to an account of the Warrant Agent at the Depository designated for such purpose in writing
by the Warrant Agent to the Depository from time to time, (ii) the subscription form, as set forth in the Warrant Certificate
(the “Election to Purchase”), properly completed and duly executed by the Registered Holder on the reverse
of the Warrant Certificate or, in the case of a Book-Entry Warrant Certificate, properly delivered by the Participant in accordance
with the Depository’s procedures, and (iii), payment in full, in lawful money of the United States, in cash, by wire of
same day funds or by certified or bank cashier’s check payable to the order of the Company, the Warrant Price for such number
of Warrant Shares totaling whole shares of Common Stock as to which the Warrant is exercised and any and all applicable taxes
due in connection with the exercise of the Warrant, the exchange of the Warrant for the Warrant Shares, and the issuance of the
Warrant Shares. In no event will interest accrue on funds deposited with the Warrant Agent in respect of an exercise or attempted
exercise of Warrants.

  

3.3.2
Fractional Shares. Notwithstanding any provision to the contrary contained in this Warrant Agreement, the Company shall
not be required to issue any fractional shares of Common Stock in connection with the exercise of Warrants for Warrant Shares,
and in any case where the Registered Holder would be entitled under the terms of the Warrants to receive a fractional share of
Common Stock as a Warrant Share upon the exercise of such Registered Holder’s Warrants, issue or cause to be issued only
the largest whole number of aggregate Warrant Shares issuable on such exercise (and such remaining fractional shares will be disregarded);
provided, that if more than one Warrant certificate is presented for exercise at the same time by the same Registered Holder,
the number of Warrant Shares which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate
number of Warrant Shares issuable on exercise of all such Warrants.

 

3.3.3
Issuance of Certificates. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment
of the Warrant Price, the Warrant Agent shall advise the Company and its transfer agent regarding (i) the number of Warrant Shares
issuable upon such exercise in accordance with the terms and conditions of this Warrant Agreement, (ii) the instructions of each
Holder with respect to delivery of the Warrant Shares issuable upon such exercise, and the delivery of definitive Warrant Certificates,
as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise, (iii) in case of a Book-Entry Warrant
Certificate, the notation that shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant
Certificate, or a Participant, as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise and
(iv) such other information as the Company or such transfer agent and registrar shall reasonably require. Promptly thereafter
and no later than three (3) business days later, the Company shall instruct its transfer agent to issue to the Registered Holder
of such Warrant a certificate or certificates representing the number of full shares of Common Stock to which he, she or it is
entitled, registered in such name or names as may be directed by him, her or it, provided, in lieu of delivering physical certificates
representing the Warrant Shares issuable upon exercise, and provided the Company’s transfer agent is participating in the
Depository’s Fast Automated Securities Transfer program, the Company shall use its reasonable best efforts to cause its
transfer agent to electronically transmit the Warrant Shares issuable upon exercise to the Registered Holder by crediting the
account of the Participant of record with the Depository or through its Deposit Withdrawal Agent Commission system. If such Warrant
shall not have been exercised or surrendered in full, a new countersigned Warrant Certificate for the number of shares as to which
such Warrant shall not have been exercised or surrendered, or, in case of a Book-Entry Warrant Certificate, a notation shall be
made to the records maintained by the Depository or nominee for each Book-Entry Warrant Certificate, as appropriate, evidencing
the balance, if any, of the Warrants remaining after such exercise. Notwithstanding the foregoing, the Company shall not be obligated
to deliver any securities pursuant to the exercise of a Warrant unless (a) a registration statement under the Act with respect
to the Common Stock issuable upon exercise of such Warrants is effective and a current prospectus relating to the shares of Common
Stock issuable upon exercise of the Warrants is available for delivery to the Registered Holder of the Warrant or (b) in the opinion
of counsel to the Company, the exercise of the Warrants is exempt from the registration requirements of the Act and such securities
are qualified for sale or exempt from qualification under applicable securities laws of the states or other jurisdictions in which
the Registered Holder resides. Warrants may not be exercised by, or securities issued to, any Registered Holder in any state in
which such exercise or issuance would be unlawful. In the event a registration statement under the Act with respect to the Common
Stock underlying the Warrants is not effective or a prospectus is not available, or because such exercise would be unlawful with
respect to a Registered Holder in any state, the Registered Holder shall not be entitled to exercise such Warrants and such Warrants
may have no value and expire worthless. In no event will the Company be obligated to pay such Registered Holder any cash consideration
upon exercise or otherwise “net cash settle” the Warrant.

 

 

1 5 years
following the date of closing of the initial public offering of the Warrants

 

    	 	3	 

     

    

 

3.3.4
Valid Issuance. The validity of any exercise of Warrants will be determined by the Company in its reasonable discretion.
The Warrant Agent shall notify a holder of any purported invalidity of any exercise of Warrants. All shares of Common Stock issued
upon the proper exercise or surrender of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid
and nonassessable.

 

3.3.5
Date of Issuance. Each person or entity in whose name any such certificate for shares of Common Stock is issued shall,
for all purposes, be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered
and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date
of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to
have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are
open (the “Exercise Date”). If any of (A) the Warrant Certificate or the Book-Entry Warrants, (B) the Election
to Purchase, or (C) the Warrant Price therefor, is received by the Warrant Agent after 5:00 P.M., New York time, on the specified
Exercise Date, the Warrants will be deemed to be received and exercised on the Business Day next succeeding the Exercise Date,
subject to clearance of the funds. If the date specified as the Exercise Date is not a Business Day, the Warrants will be deemed
to be received and exercised on the next succeeding day that is a Business Day, subject to clearance of the funds. If the Warrants
are received or deemed to be received after the Expiration Date, the exercise thereof will be null and void and any funds delivered
to the Warrant Agent will be returned to the Registered Holder as soon as practicable.

 

4.
Adjustments.

 

4.1
Stock Dividends, Split-Ups. If, after the date hereof, and subject to the provisions of Section 4.6 below, the number of
outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock, or by a split-up of shares
of Common Stock, or other similar event, then, on the effective date of such stock dividend, split-up or similar event, the number
of shares of Common Stock issuable on exercise of each Warrant shall be increased in proportion to such increase in outstanding
shares of Common Stock.

 

4.2
Extraordinary Dividend. If the Company, at any time during the Exercise Period, shall pay a dividend or make a distribution
in cash, securities or other assets to the holders of Common Stock (or other shares of the Company’s capital stock into
which the Warrants are exercisable), other than (a) as described in Sections 4.1, 4.3 or 4.5, (b) regular quarterly or other periodic
dividends, (c) in connection with the conversion rights of the holders of Common Stock upon consummation of a business combination,
or (d) in connection with the Company’s liquidation and the distribution of its assets (any such non-excluded event being
referred to herein as an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately
after the effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as determined by
the Company’s Board of Directors, in good faith) of any securities or other assets paid on each share of Common Stock in
respect of such Extraordinary Dividend.

 

    	 	4	 

     

    

 

4.3
Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 4.7, the number of outstanding
shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Common
Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification
or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased in proportion to
such decrease in outstanding shares of Common Stock.

 

4.4
Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants
is adjusted, as provided in Sections 4.1 and 4.3 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying
such Warrant Price, immediately prior to such adjustment, by a fraction, (a) the numerator of which shall be the number of shares
of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (b) the denominator of
which shall be the number of shares of Common Stock so purchasable immediately thereafter.

 

4.5
Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
shares of Common Stock (other than a change covered by Sections 4.1 or 4.3 hereof or one that solely affects the par value of
such shares of Common Stock), or, in the case of any merger or consolidation of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding shares of Common Stock), or, in the case of any sale or conveyance to another corporation
or entity of the assets or other property of the Company as an entirety or substantially as an entirety, in connection with which
the Company is dissolved, the Registered Holders shall thereafter have the right to purchase and receive, upon the basis and upon
the terms and conditions specified in the Warrants and in lieu of the shares of Common Stock of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other
securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon
a dissolution following any such sale or transfer, that the Registered Holder would have received if such Registered Holder had
exercised his, her or its Warrant(s) immediately prior to such event; and if any reclassification also results in a change in
shares of Common Stock covered by Sections 4.1 or 4.3, then such adjustment shall be made pursuant to Sections 4.1, 4.3, 4.4 and
this Section 4.5. The provisions of this Section 4.5 shall similarly apply to successive reclassifications, reorganizations, mergers
or consolidations, sales or other transfers.

 

4.6
Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares of Common Stock issuable
upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant
Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon
the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation
is based. Upon the occurrence of any event specified in Sections 4.1, 4.2, 4.3 or 4.4 the Company shall give written notice to
each Registered Holder, at the last address set forth for such Registered Holder in the Warrant Register, of the record date or
the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity
of such event.

 

4.7
Form of Warrant. The form of Warrant Certificate need not be changed because of any adjustment pursuant to this Section
4, and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the
Warrants initially issued pursuant to this Warrant Agreement. However, the Company may, at any time, in its sole discretion, make
any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any
Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be
in the form as so changed.

 

    	 	5	 

     

    

 

4.8
Notice of Certain Transactions. In the event that the Company shall (a) offer to holders of all its Common Stock rights
to subscribe for or to purchase any securities convertible into shares of Common Stock or shares of stock of any class or any
other securities, rights or options, (b) issue any rights, options or warrants entitling all the holders of Common Stock to subscribe
for shares of Common Stock, or (c) make a tender offer, redemption offer or exchange offer with respect to the Common Stock, the
Company shall send to the Registered Holders a notice of such action or offer. Such notice shall be mailed to the Registered Holders
at their addresses as they appear in the Warrant Register, which shall specify the record date for the purposes of such dividend,
distribution or rights, or the date such issuance or event is to take place and the date of participation therein by the holders
of Common Stock, if any such date is to be fixed, and shall briefly indicate the effect of such action on the Common Stock and
on the number and kind of any other shares of stock and on other property, if any, and the number of shares of Common Stock and
other property, if any, issuable upon exercise of each Warrant and the Warrant Price after giving effect to any adjustment pursuant
to this Section 4 which would be required as a result of such action. Such notice shall be given as promptly as practicable after
the Company has taken any such action.

 

5.
Transfer and Exchange of Warrants.

 

5.1
Transfer of Warrants. The Warrants may be transferred or exchanged separately or each Warrant may be transferred together
with Common Stock in such proportions as originally offered by the Company as a Unit. Each transfer of a Unit on the register
relating to such Units shall operate also to transfer the Warrants included in such Unit. Holders who intend to transfer or trade
Units must contact the Warrant Agent to confirm and complete the documentation required to constitute and transfer the Units.

 

5.2
Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant
into the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed
and accompanied by appropriate instructions for transfer, or properly noticed by the Depositary as contemplated by Section 5.3.
Upon any such transfer, a new Warrant, including Book-Entry Warrants, as applicable, representing an equal aggregate number of
Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon the Company’s request.

 

5.3
Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request
for exchange or transfer, and, thereupon, the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested
by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that, in the event a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel such Warrant
and shall issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel for the Company stating
that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend. Notwithstanding anything
else in this Section 5.3, if a Book-Entry Warrant, the holder or Participant shall notify the Depositary in accordance with the
Depository’s procedures of a requested transfer and the Depositary shall provide notice to an account of the Warrant Agent
at the Depository designated for such purpose in writing by the Warrant Agent to the Depository from time to time, of a transfer
to be recorded in the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant,
as appropriate, evidencing the balance, if any, of the Warrants remaining after such transfer and the new name in which the transferred
Book Entry Warrants are to be held.

 

5.4
Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a Warrant Certificate for a fraction of a Warrant.

 

5.5
Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants. Any fees payable
to the Warrant Agent for such transfers shall be paid by the Company to the Warrant Agent.

 

5.6
Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance
with the terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, including
applying the Company’s signature thereto.

 

    	 	6	 

     

    

 

6.
Other Provisions Relating to Rights of Registered Holders of Warrants.

 

6.1
No Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a stockholder
of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

 

6.2
Lost, Stolen Mutilated or Destroyed Warrants. If any Warrant is lost, stolen, mutilated or destroyed, the Company and the
Warrant Agent may, on such terms as to indemnity or otherwise as they may in their discretion impose (which terms shall in all
cases include posting of a lost security bond by or on behalf of the Registered Holder, and in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination, tenor and date as the Warrant so lost, stolen, mutilated
or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

 

6.3
Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued
shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this
Warrant Agreement.

 

6.4
Registration of Common Stock. The Company agrees to use its best efforts to maintain the effectiveness of the Registration
Statement until the expiration of the Warrants in accordance with the provisions of this Warrant Agreement; provided, however,
that the Company shall not be obligated to deliver Common Stock and shall not have penalties for failure to deliver Common Stock
if a registration statement is not effective or a current prospectus is not on file with the SEC at the time of exercise by the
Registered Holder. In addition, to the extent not completed at the time of the initial issuance of the Warrants, the Company agrees
to use its reasonable efforts to register such securities under the blue sky laws of the states of residence of the exercising
Registered Holders to the extent an exemption under the Act is not available for the exercise of the Warrants. In no event will
the Registered Holder of a Warrant be entitled to receive a net-cash settlement or shares of Common Stock or other consideration
as of result of the Company’s non-compliance with this Section 6.4. The provisions of this Section 6.4 may not be modified,
amended or deleted without the prior written consent of Northland Securities, Inc. or Lake Street Capital Markets, LLC, the representative
of the underwriters (the “Underwriters”).

 

7.
Concerning the Warrant Agent and Other Matters.

 

7.1
Payment of Taxes. The Company will, from time to time, promptly pay all taxes and charges that may be imposed upon the
Company or the Warrant Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of Warrants, but
the Company shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

7.2
Resignation, Consolidation, or Merger of Warrant Agent.

 

7.2.1
Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties
and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the
Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall
appoint, in writing, a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment
within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by
the Registered Holder of the Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company),
then the Registered Holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for
the appointment of a successor Warrant Agent. Any successor Warrant Agent, whether appointed by the Company or by such court,
shall be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal
office at 18 Lafayette Place, Woodmere, NY 11598 in the State of New York, and be authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state authorities. After appointment, any successor Warrant
Agent shall be vested with all the authority, powers, rights, immunities, duties and obligations of its predecessor Warrant Agent
with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but, if for any reason it
becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument
transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder;
and, upon request of any successor Warrant Agent, the Company shall make, execute, acknowledge, and deliver any and all instruments
in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers,
rights, immunities, duties and obligations.

 

    	 	7	 

     

    

 

7.2.2
Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice
thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any
such appointment.

 

7.2.3
Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may
be consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall
be the successor Warrant Agent under this Warrant Agreement without any further act on the part of the Company or the Warrant
Agent.

 

7.2.4
Confidentiality. The Warrant Agent and the Company agree that all books, records, information and data pertaining to the
business of the other party, including inter alia, personal, non-public Holder information, which are exchanged or received pursuant
to the negotiation or the carrying out of this Warrant Agreement shall remain confidential, and shall not be voluntarily disclosed
to any other person, except as may be required by law, including, without limitation, pursuant to subpoenas from state or federal
government authorities.

 

7.3
Fees and Expenses of Warrant Agent.

 

7.3.1
Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as Warrant Agent hereunder
as set forth on Exhibit B hereto and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent
may reasonably incur in the execution of its duties hereunder.

 

7.3.2
Further Assurances. The Company agrees to perform, execute, acknowledge and deliver, or cause to be performed, executed,
acknowledged and delivered, all such further and other acts, instruments and assurances as may reasonably be required by the Warrant
Agent for the carrying out or performing of the provisions of this Warrant Agreement.

 

7.4
Liability of Warrant Agent.

 

7.4.1
Reliance on Company Statement. Whenever, in the performance of its duties under this Warrant Agreement, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer, Chief Financial Officer
or Chairman of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for
any action taken or suffered in good faith by it pursuant to the provisions of this Warrant Agreement.

 

7.4.2
Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith.
The Company agrees to indemnify the Warrant Agent and hold it harmless against any and all liabilities, including judgments, costs
and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

 

7.4.3
Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with
respect to the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible
to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method or amount of any
such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it, by any act
hereunder, be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock
to be issued pursuant to this Warrant Agreement or any Warrant or as to whether any shares of Common Stock will when issued be
valid and fully paid and nonassessable.

 

    	 	8	 

     

    

 

7.5
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform
the same upon the terms and conditions herein set forth and, among other things, shall account promptly to the Company with respect
to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase
of shares of the Company’s Common Stock through the exercise of Warrants.

 

8.
Miscellaneous Provisions.

 

8.1
Successors. All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns.

 

8.2
Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent
or by the Registered Holder of any Warrant to or on the Company shall be delivered by hand or sent by registered or certified
mail or overnight courier service, addressed (until another address is filed in writing by the Company with the Warrant Agent)
as follows:

 

Ener-Core,
Inc.

9400
Toledo Way

Irvine,
California 92618

(949)
616-3300

Attention:
Chief Financial Officer

 

Any
notice, statement or demand authorized by this Warrant Agreement to be given or made by the Registered Holder of any Warrant or
by the Company to or on the Warrant Agent shall be delivered by hand or sent by registered or certified mail or overnight courier
service, addressed (until another address is filed in writing by the Warrant Agent with the Company), as follows:

 

VStock
Transfer, LLC

18
Lafayette Place

Woodmere,
New York 11598

Attention:
Shay Galam

 

Any
notice, sent pursuant to this Warrant Agreement shall be effective, if delivered by hand, upon receipt thereof by the party to
whom it is addressed, if sent by overnight courier, on the next business day of the delivery to the courier, and if sent by registered
or certified mail on the third day after registration or certification thereof

 

8.3
Applicable Law. The validity, interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed
in all respects by the laws of the State of Delaware, without giving effect to conflict of laws. The Company and the Warrant Agent
hereby agree that any action, proceeding or claim against either of them arising out of or relating in any way to this Warrant
Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern
District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company and the
Warrant Agent hereby waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.
Any such process or summons to be served upon the Company or the Warrant Agent may be served by transmitting a copy thereof by
registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8.2
hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the party receiving such service in
any action, proceeding or claim.

 

8.4
Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation
other than the parties hereto and the Registered Holders of the Warrants and, for the purposes of Sections 6.4, 8.2 and 8.8 hereof,
the Underwriters, any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation,
promise, or agreement hereof. Each Underwriter shall be deemed to be a third-party beneficiary of this Warrant Agreement with
respect to Sections 6.4, 8.2 and 8.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto (and the Underwriters with respect to the
Sections 6.4, 8.2 and 8.8 hereof) and their successors and assigns and of the Registered Holders of the Warrants.

 

8.5
Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the
office of the Warrant Agent at 18 Lafayette Place, Woodmere, NY 11598, for inspection by the Registered Holder of any Warrant.
The Warrant Agent may require any such Registered Holder to submit his, her or its Warrant for inspection.

 

    	 	9	 

     

    

 

8.6
Counterparts- Facsimile Signatures. This Warrant Agreement may be executed in any number of counterparts, and each of such
counterparts shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute one and
the same instrument. Facsimile signatures shall constitute original signatures for all purposes of this Warrant Agreement.

 

8.7
Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement and
shall not affect the interpretation thereof

 

8.8
Amendments. This Warrant Agreement and any Warrant certificate may be amended by the parties hereto by executing a supplemental
warrant agreement (a “Supplemental Agreement”), without the consent of any of the Warrant Holders, for
the purpose of (i) curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein, or making
any other provisions with respect to matters or questions arising under this Warrant Agreement that is not inconsistent with the
provisions of this Warrant Agreement or the Warrant certificates, (ii) evidencing the succession of another corporation to the
Company and the assumption by any such successor of the covenants of the Company contained in this Warrant Agreement and the Warrants,
(iii) evidencing and providing for the acceptance of appointment by a successor Warrant Agent with respect to the Warrants, (iv)
adding to the covenants of the Company for the benefit of the Registered Holders or surrendering any right or power conferred
upon the Company under this Warrant Agreement, or (viii) amending this Warrant Agreement and the Warrants in any manner that the
Company may deem to be necessary or desirable and that will not adversely affect the interests of the Registered Holders in any
material respect. All other modifications or amendments, including any amendment to increase the Warrant Price or shorten the
Exercise Period, shall require the written consent of each of the Underwriter and the Registered Holders of a majority of the
then outstanding Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price or extend the duration of the
Exercise Period in accordance with Sections 3.1 and 3.2, respectively, without such consent.

 

8.9
Severability. This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be
valid and enforceable.

 

8.10
Business Day. For purposes of this Warrant Agreement a business day is any day other than a Saturday, Sunday or a day that
NYSE MKT is closed for trading.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	10	 

     

    

 

[SIGNATURE
PAGE TO THE WARRANT AGREEMENT]

 

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

 

	 	ENER-CORE,
    INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	VSTOCK
    TRANSFER, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	11	 

     

    

 

EXHIBIT
A

 

Form
of Warrant Certificate

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SPECIMEN WARRANT CERTIFICATE

 

	NUMBER	 	WARRANTS

W- ____________

 

(THIS
WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO 5:00 P.M.,

NEW
YORK CITY TIME, ON [_____], 20202)

 

ENER-CORE,
INC.

 

CUSIP
29272A115

 

WARRANT

 

THIS
WARRANT CERTIFICATE CERTIFIES THAT, for value received ___________________________or registered agents, is the registered holder of a Warrant or Warrants
expiring on a date which is five years from the date of the Company’s initial public offering of this warrant (the “Warrant”)
to purchase __________ fully paid and non-assessable shares (the “Shares”) of common stock, par value $0.0001
per share (the “Common Stock”), of ENER-CORE, INC., a Delaware corporation (the “Company”),
for each Warrant evidenced by this Warrant Certificate.

 

The
Warrant entitles the holder thereof to purchase from the Company, commencing upon consummation of the Company’s initial
public offering of this warrant, such number of Shares at the price of $[____]3 per whole share of Common Stock (the
“Warrant Price”), upon surrender of this Warrant Certificate with duly completed subscription form (see reverse)
(or, in the case of a Book-Entry Warrant Certificate, the Book-Entry Warrants to be exercised shown on the records of the Depository
to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository
from time to time),and payment of the Warrant Price at the office or agency of the Warrant Agent, VStock Transfer, LLC (such payment
to be made by check made payable to the Warrant Agent), but only subject to the conditions set forth herein and in the Warrant
Agreement between the Company and VStock Transfer, LLC. In no event shall the registered holder(s) of this Warrant be entitled
to receive a net-cash settlement, Shares or other consideration in lieu of physical settlement in Shares of the Company. The Warrant
Agreement provides that, upon the occurrence of certain events, the Warrant Price and the number of Warrant Shares purchasable
hereunder, set forth on the face hereof, may be adjusted, subject to certain conditions. The term Warrant Price as used in this
Warrant Certificate refers to the price per Share at which Shares may be purchased at the time the Warrant is exercised.

 

This
Warrant will expire on the date first above written if it is not exercised prior to such date by the registered holder pursuant
to the terms of the Warrant Agreement or if it is not redeemed by the Company prior to such date.

 

No
fraction of a share of the Common Stock will be issued upon any exercise of a Warrant. If, upon exercise of a Warrant, a holder
would be entitled to receive a Share or Shares representing a fractional interest in a share of Common Stock, the Company will,
upon exercise, issue or cause to be issued only the largest whole number of Shares issuable on such exercise (and such fractional
remainders will be disregarded).

 

Notwithstanding
anything to the contrary contained in the Warrant Agreement and herein, the number of Warrant Shares that may be acquired by the
registered holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary
to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned
by such registered holder and its affiliates (as defined under the rules and regulations promulgated under the Securities Act
of 1933, as amended) and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with such
beneficial owner as a group for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (“Beneficial
Ownership”), does not exceed 9.999% of the total number of issued and outstanding shares of Common Stock (including
for such purpose the shares of Common Stock issuable upon such exercise), unless the registered holder’s Beneficial Ownership
already exceeds 9.999%. For such purposes, Beneficial Ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. This restriction may not be waived. This
provision shall not restrict the number of shares of Common Stock which a registered holder may receive or beneficially own in
order to determine the amount of securities or other consideration that such registered holder may receive in the event of a Fundamental
Transaction. “Fundamental Transaction” means any of the following: (i) the Company effects any merger or consolidation
of the Company with or into another person, (ii) the Company effects any sale of all or substantially all of its assets in one
or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property,
or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or property.

 

 

2
Insert date five years from the date of closing of the initial public offering of this warrant.

3
The exercise price shall be 120% of the offering price of the units in the Company’s initial public offering of this
warrant, per whole share of common stock. 

 

     

     

    

 

Upon
any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the registered
holder(s) hereof or its assignee(s) a new Warrant Certificate covering the number of Shares for which the Warrant has not been
exercised.

 

Warrant
Certificates, when surrendered at the office or agency of the Warrant Agent by the registered holder(s) hereof in person or by
attorney duly authorized in writing, may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement,
but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants.

 

Upon
due presentment for registration of transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to
the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without
charge except for any applicable tax or other governmental charge.

 

The
Company and the Warrant Agent may deem and treat the registered holder(s) as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by anyone) for the purpose of any exercise hereof, of
any distribution to the registered holder(s), and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary.

 

This
Warrant does not entitle the registered holder(s) to any of the rights of a stockholder of the Company.

 

COUNTERSIGNED:

VSTOCK
TRANSFER, LLC

WARRANT
AGENT

 

	BY:	 	 

AUTHORIZED
OFFICER

 

DATED:

 

	 	 
	(Signature)	 

CHIEF
EXECUTIVE OFFICER

 

	 	 
	(Signature)	 

SECRETARY

 

     

     

    

 

[REVERSE
OF CERTIFICATE]

 

SUBSCRIPTION
FORM

 

(“Election
to Purchase”)

 

To
Be Executed by the Registered Holder(s) in Order to Exercise Warrants

 

The
undersigned Registered Holder(s) irrevocably elect(s) to exercise __________ Warrants represented by this Warrant
Certificate, and to purchase the shares of Common Stock issuable upon the exercise of such Warrants, and requests that
Certificates for such shares shall be issued in the name(s) of

 

 

(PLEASE
TYPE OR PRINT NAME(S) AND ADDRESS)

 

 

 

 

 

 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER(S))

 

	and
    be delivered to	 
	 	(PLEASE
    PRINT OR TYPE NAME(S) AND ADDRESS)

 

and,
if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate
for the balance of such Warrants be registered in the name of, and delivered to, the Registered Holder(s) at the address(es) stated
below:

 

Dated:

 

	 	 
	(SIGNATURE(S))	 
	 	 
	 	 
	(ADDRESS(ES))	 
	 	 
	 	 
	 	 
	 	 
	(TAX IDENTIFICATION
    NUMBER(S))	 

  

     

     

    

 

ASSIGNMENT

 

To
Be Executed by the Registered Holder in Order to Assign Warrants

 

For
Value Received,                 hereby
sell(s), assign(s), and transfer(s) unto

 

	 	 	 
	(PLEASE TYPE OR PRINT NAME(S) AND ADDRESS(ES))	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER(S))

 

	and
    be delivered to	 
	 	(PLEASE
    PRINT OR TYPE NAME(S) AND ADDRESS(ES))

 

of the
Warrants represented by this Warrant Certificate, and hereby irrevocably constitute and

 

appoint
_______________ Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution
in the premises.

 

Dated:

 

	 	 
	(SIGNATURE(S))	 

 

NOTICE:
THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

 

Signature(s)
Guaranteed:

 

	By	 	 

 

THE
SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

     

     

    

 

EXHIBIT
B

 

Warrant
Agent FeesExhibit

 

EXHIBIT 10.4

FIRST AMENDMENT TO CREDIT AGREEMENT 

Dated as of September 10, 2015
This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is by and among ABERCROMBIE & FITCH MANAGEMENT CO., a Delaware corporation (the “Lead Borrower”), the other Borrowers and Guarantors party hereto, the Lenders party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, the “Agent”).
PRELIMINARY STATEMENTS
WHEREAS, the Borrowers, the Guarantors, the Lenders and the Agent entered into that certain Credit Agreement dated as of August 7, 2014 (as amended hereby and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and
WHEREAS, the Lead Borrower has requested that the Agent and the Required Lenders agree to amend the Credit Agreement as specifically set forth herein and, subject to the terms of this Amendment, the Agent and the Required Lenders have agreed to grant such request.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
Section 1.Capitalized Terms.  All capitalized terms not otherwise defined in this Amendment (including without limitation in the introductory paragraph and the Preliminary Statements hereto) shall have the meanings as specified in the Credit Agreement.

Section 2.Amendments to Credit Agreement.  Subject to and in accordance with the terms and conditions set forth herein, the Agent and the Required Lenders hereby agree to the following amendments to the Credit Agreement:

(a)amend the definition of “Change of Control” contained in Section 1.01 of the Credit Agreement by (i) deleting clause (b) thereof in its entirety and (ii) replacing the “(c)” from present clause (c) with “(b)”.

(b)amend Section 8.01(i) of the Credit Agreement to delete the phrase “or any other Person” each time it occurs therein.

Section 3.Waiver.  Subject to and in accordance with the terms and conditions set forth herein, the Agent and the Required Lenders hereby waive any Default or Event of Default arising under Section 8.01(i) of the Credit Agreement as a result of the civil action filed by Eric Gilbert against the Parent, the directors of the Parent and the Agent in the Common Pleas Court of Franklin County, Ohio Civil Division, on August 22, 2015, as Case No. 15-CV-007354.

Section 4.Conditions of Effectiveness.  The effectiveness of the amendments in Section 2 and the waiver in Section 3 shall be subject to the satisfaction of each of the following conditions precedent:

(a)the Agent shall have received counterparts of this Amendment executed by the Loan Parties, the Agent and the Required Lenders;

(b)the representations and warranties of the Loan Parties contained in Section 5 shall be true and correct; and

(c)all reasonable out-of-pocket costs and expenses incurred by the Agent in connection with the preparation, negotiation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees, charges and disbursements of legal counsel for the Agent in connection with the preparation, negotiation, execution and delivery of this Amendment) shall have been paid by the Borrowers.  

Section 5.Representations and Warranties of the Loan Parties.  Each Loan Party represents and warrants as follows:

(a)The execution, delivery and performance by such Loan Party of its obligations in connection with this Amendment are within its corporate (or other organizational) powers, have been duly authorized by all necessary corporate (or other organizational) action and do not and will not (i) violate any provision of its articles or certificate of incorporation or bylaws or similar organizing or governing documents of such Loan Party, (ii) contravene any applicable Law which is applicable to such Loan Party or (iii) conflict with, result in a breach of or constitute (with notice, lapse of time or both) a default under any material indenture or instrument or other material agreement to which such Loan Party is a party, by which it or any of its properties is bound or to which it is subject, except, in the case of clauses (ii) and (iii) above, to the extent such contraventions, conflicts, breaches or defaults could not reasonably be expected to have a Material Adverse Effect.

(b)Such Loan Party has taken all necessary corporate (or other organizational) action to execute, deliver and perform this Amendment and has validly executed and delivered this Amendment.  This Amendment constitutes a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(c)No material consent, approval, authorization or other action by, notice to, or registration or filing with, any Governmental Authority or other Person is or will be required as a condition to or otherwise in connection with the due execution, delivery and performance by such Loan Party of this Amendment, except such as have been obtained or made and are in full force and effect.

(d)After giving effect to this Amendment, the representations and warranties contained in each of the Loan Documents are true and correct in all material respects on and as of the date hereof as though made on and as of such date (other than any such representations or warranties that, by their terms, refer to a specific date, in which case as of such specific date).

(e)No Default or Event of Default shall exist after giving effect to this Amendment.

Section 6.Reference to and Effect on the Loan Documents.  On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment and this Amendment shall constitute a Loan Document.

(a)The Credit Agreement and each of the other Loan Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects 

2

ratified and confirmed.  Without limiting the generality of the foregoing, the Security Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Loan Parties under the Loan Documents, in each case as amended or converted by this Amendment.

(b)The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under any of the Loan Documents, nor constitute a waiver of any other provision of any of the Loan Documents.

Section 7.Reaffirmations.  Each Loan Party (a) consents to this Amendment and agrees that the transactions contemplated by this Amendment shall not limit or diminish the obligations of such Person, or release such Person from any obligations, under any of the Loan Documents to which it is a party, (b) confirms and reaffirms its obligations under each of the Loan Documents to which it is a party and (c) agrees that each of the Loan Documents to which it is a party remain in full force and effect and are hereby ratified and confirmed.

Section 8.Execution in Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.

Section 9.Governing Law.  This Amendment and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

Section 10.Entire Agreement.  This Amendment and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Agent, the Issuing Lender, each Swingline Lender and/or the Arrangers, constitute the entire agreement among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

[Signature Pages Follow]

3

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

	
			
	 
	BORROWERS:

	 
	 
	 

	 
	ABERCROMBIE & FITCH

	 
	MANAGEMENT CO., as Lead Borrower

	 
	ABERCROMBIE & FITCH STORES, INC.

	 
	J.M. HOLLISTER, LLC

	 
	GILLY HICKS, LLC

	 
	ABERCROMBIE & FITCH TRADING CO., as

	 
	Borrowers

	 
	 
	 

	 
	By:
	/s/ Everett Gallagher

	 
	Name:
	Everett Gallagher

	 
	Title:
	Senior Vice President and Treasurer

	 
	 
	 

	 
	 
	 

	 
	 
	 

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	GUARANTORS:

	 
	 
	 

	 
	ABERCROMBIE & FITCH CO., as Parent and

	 
	as a Guarantor

	 
	 
	 

	 
	By:
	/s/ Everett Gallagher

	 
	Name:
	Everett Gallagher

	 
	Title:
	Senior Vice President - Tax, Treasury and

	 
	 
	Risk Management and Treasurer

	 
	 
	 

	 
	 
	 

	 
	A&F TRADEMARK, INC.

	 
	ABERCROMBIE & FITCH HOLDING

	 
	CORPORATION

	 
	HOLLISTER CO.

	 
	J.M.H. TRADEMARK, INC.

	 
	HOLLISTER CO. CALIFORNIA, LLC

	 
	AFH PUERTO RICO LLC

	 
	A&F CANADA HOLDING CO., as Guarantors

	 
	 
	 

	 
	By:
	/s/ Everett Gallagher

	 
	Name:
	Everett Gallagher

	 
	Title:
	Senior Vice President and Treasurer

	
			
	 
	ABERCROMBIE & FITCH PROCUREMENT

	 
	SERVICES, LLC, as a Guarantor

	 
	 
	 

	 
	By:
	Abercrombie & Fitch Trading Co.,

	 
	 
	its Sole Member

	 
	 
	 

	 
	By:
	/s/ Everett Gallagher

	 
	Name:
	Everett Gallagher

	 
	Title:
	Senior Vice President and Treasurer

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	WELLS FARGO BANK, NATIONAL

	 
	ASSOCIATION, as Agent and as a Leader

	 
	 
	 

	 
	By:
	/s/ Peter Foley

	 
	Name:
	Peter Foley

	 
	Its Authorized Signatory

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	PNC BANK, NATIONAL

	 
	ASSOCIATION, as a Lender

	 
	 
	 

	 
	By:
	/s/ Todd Milenius

	 
	Name:
	Todd Milenius

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	JPMORGAN CHASE BANK, N.A., as a

	 
	Lender

	 
	 
	 

	 
	By:
	/s/ Jenifer L. Medzi

	 
	Name:
	Jenifer L. Medzi

	 
	Title:
	Authorized Officer

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	BANK OF AMERICA, N.A., as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ Matthew Potter

	 
	Name:
	Matthew Potter

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	FIFTH THIRD BANK, as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ Michael J. Schultz, Jr.

	 
	Name:
	Michael J. Schultz, Jr.

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	HSBC BANK USA, N.A., as a Lender

	 
	 

	 
	 
	 

	 
	By:
	/s/ Darren Pinsker

	 
	Name:
	Darren Pinsker

	 
	Title:
	SVP

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	THE HUNTINGTON NATIONAL

	 
	BANK, as a Lender

	 
	 
	 

	 
	By:
	/s/ Tracy Salyers

	 
	Name:
	Tracy Salyers

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	CITIZENS BUSINESS CAPITAL, a

	 
	division of Citizens Asset Finance, Inc., as a

	 
	Lender

	 
	 
	 

	 
	By:
	/s/ Rohit Mehta

	 
	Name:
	Rohit Mehta

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	SUMITOMO MITSUI BANKING

	 
	CORPORATION, as a Lender

	 
	 
	 

	 
	By:
	/s/ Katsuyuki Kubo

	 
	Name:
	Katsuyuki Kubo

	 
	Title:
	Managing Director

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

	
			
	 
	U.S. BANK NATIONAL

	 
	ASSOCIATION, as a Lender

	 
	 
	 

	 
	By:
	/s/ Thomas P Chidester

	 
	Name:
	Thomas P. Chidester

	 
	Title:
	Vice President

Abercrombie & Fitch Management Co.
First Amendment to Credit Agreement
Signature Page

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