Document:

Exhibit 10.1

 

INCREMENTAL FACILITY AMENDMENT

 

INCREMENTAL
FACILITY AMENDMENT, dated as of December 28, 2018 (this “Agreement”), by and among, Canyon Valor Companies,
Inc., a Delaware corporation, formerly known as GTCR Valor Companies, Inc. (the “Borrower”) and SunTrust
Bank (the “Additional Revolving Lender”), and acknowledged by Deutsche Bank AG New York Branch, as
the Administrative Agent and Collateral Agent.

 

RECITALS:

 

WHEREAS,
reference is hereby made to the First Lien Credit Agreement, dated as of June 16, 2016 (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Canyon Companies S.à
r.l., a private limited liability company (société à responsabilité limitée) organized
and established under the laws of Luxembourg, having its registered office at 6D, route de Trèves, L-2633 Senningerberg,
Grand-Duchy of Luxembourg, with a share capital of twenty thousand and ten United States Dollars ($20,010) and registered with
the Luxembourg Register of Commerce and Companies under number B 187.216 (“Holdings”), Canyon Group S.à
r.l., a private limited liability company (société à responsabilité limitée) organized
and established under the laws of Luxembourg, having its registered office at 6D, route de Trèves, L-2633 Senningerberg,
Grand-Duchy of Luxembourg, with a share capital of twenty thousand United States Dollars ($20,000) and registered with the Luxembourg
Register of Commerce and Companies under number B 202.299 (“Intermediate Lux Holdings”), Canyon Valor Holdings,
Inc., a Delaware corporation (“Intermediate U.S. Holdings”), the Borrower, the lending institutions from time
to time party thereto, and Deutsche Bank AG New York Branch, as the Administrative Agent and Collateral Agent (capitalized terms
used but not defined herein having the meaning provided in the Credit Agreement); and

 

WHEREAS,
subject to the terms and conditions of the Credit Agreement, the Borrower may establish an Incremental Revolving Commitment Increase
by, among other things, entering into one or more Incremental Facility Amendments with Additional Revolving Lenders;

 

WHEREAS,
the Additional Revolving Lender and the Borrower wish to establish an Incremental Revolving Commitment Increase on the terms set
forth in this Agreement utilizing available capacity pursuant to clause (II) of the definition of Incremental Cap;

 

NOW,
THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto
agree as follows:

 

The Additional Revolving
Lender hereby provides the Incremental Revolving Commitment Increase as set forth on Schedule A annexed hereto, on the terms
and subject to the conditions set forth below (the loans made pursuant thereto, the “Additional Revolving Loans”).
After giving effect to such Incremental Revolving Commitment Increase, the Revolving Commitments of the Revolving Lenders shall
be as set forth in Schedule B annexed hereto.

 

The Additional Revolving
Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents and the exhibits thereto,
together with copies of the most recent financial statements referred to in Section 5.01 of the Credit Agreement and such
other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement;
(ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Collateral Agent or any other
Lender or Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative
Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement
and the other Loan Documents as are delegated to the Administrative Agent or the Collateral Agent, as the case may be, by the terms
thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
This Agreement shall constitute (i) the notice required to be delivered by the Borrower to the Administrative Agent pursuant to
Section 2.20(a) of the Credit Agreement and (ii) an “Incremental Facility Amendment” for purposes of Section 2.20(d)
of the Credit Agreement.

 

     

     

    

 

Notwithstanding any
provision to the contrary herein or in the Credit Agreement, the terms of the Incremental Revolving Commitment Increase and the
Additional Revolving Loans (including without limitation the Applicable Rate and the principal payment terms applicable thereto)
shall, except to the extent of fees expressly set forth in the Fee Letter (the “Incremental Fee”), be the same
as the terms of the Revolving Commitments and the Revolving Loans, respectively, outstanding immediately prior to giving effect
to this Agreement, and such Incremental Revolving Commitment Increase shall be deemed to constitute Revolving Commitments and such
Additional Revolving Loans shall be deemed to constitute Revolving Loans for all purposes of this Agreement and the Credit Agreement
and shall constitute one tranche with, and be the same Class as, the Revolving Commitments and Revolving Loans outstanding immediately
prior to giving effect to this Agreement. Following the Incremental Amendment Effective Date (as defined below), each reference
to “Revolving Commitments” and Revolving Loans made pursuant to Section 2.01(b) shall include the Incremental Revolving
Commitment Increase and Additional Revolving Loans, respectively, and each reference to “Lender” shall include the
Additional Revolving Lender hereunder, in each case, unless the context shall require otherwise. Each of the parties hereto hereby
agrees that, with the consent of the Borrower (not to be unreasonably withheld), the Administrative Agent may take any and all
action as may be reasonably necessary to ensure that all amounts of such the Incremental Revolving Commitment Increase and Additional
Revolving Loans, when originally made, are Revolving Commitments or Revolving Loans, respectively, for all purposes under the Loan
Documents. The Borrower shall not be required to pay fees on the Incremental Revolving Commitment Increase pursuant to Section
2.12 of the Credit Agreement for any period prior to the Incremental Amendment Effective Date.

 

The Additional Revolving
Lender hereby agrees to make the Incremental Revolving Commitment Increase on the following terms and conditions:

 

		1.	Terms. For the avoidance of doubt, the Incremental Revolving Commitment Increase and any
Additional Revolving Loans made pursuant thereto shall be treated the same as the Class of Revolving Commitments and Revolving
Loans in effect prior to the date hereof, it being understood that (x) all borrowings, commitment reductions, prepayments and repayments
of Revolving Loans made under the Incremental Revolving Commitment Increase shall be made on a ratable basis with the other Revolving
Loans under the Credit Agreement and (y) all participations in Letters of Credit shall be held on a ratable basis among the Revolving
Lenders based on their Revolving Commitments (after giving effect to the Incremental Revolving Commitment Increase), and upon effectiveness
of the Incremental Revolving Commitment Increase, all outstanding participations in Letters of Credit shall be automatically reallocated
among the Revolving Lenders in a manner consistent with the foregoing.

 

		2.	Use of Proceeds. The proceeds of the Additional Revolving Loans shall be used as set forth
in Section 5.10 of the Credit Agreement.

 

    	 	2	 

     

    

 

		3.	Additional Revolving Lenders. The Additional Revolving Lender acknowledges and agrees that
upon its execution of this Agreement and the effectiveness of the Incremental Revolving Commitment Increase, that such Additional
Revolving Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other
Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have
all rights of a Lender thereunder and under the Intercreditor Agreements, as applicable, pursuant to Section 9.18 of the
Credit Agreement.

 

		4.	Credit Agreement Governs. Except as set forth in this Agreement, the Incremental Revolving
Commitment Increase shall otherwise be subject to the provisions of the Credit Agreement and the other Loan Documents.

 

		5.	Conditions to Effectiveness. The obligations of the Additional Revolving Lender to make
the Incremental Revolving Commitment Increase and the effectiveness of the Agreement is subject to the satisfaction, or waiver
by the Additional Revolving Lender (the date of such satisfaction or waiver, the “Incremental Amendment Effective Date”),
of the following conditions:

 

		(a)	Borrower Certifications. By its execution of this Agreement, the undersigned officer of
the Borrower, to the best of his or her knowledge, hereby certifies, solely in his or her capacity as an officer of the Borrower
and not in his or her individual capacity, that no Event of Default exists on the Incremental Amendment Effective Date before or
after giving Pro Forma Effect to the Incremental Revolving Commitment Increase contemplated hereby;

 

		(b)	Delivery of Documents. The Additional Revolving Lender (or its counsel) shall have received
duly signed counterparts of this Agreement, dated as of the Incremental Amendment Effective Date from the Borrower and the Additional
Revolving Lender;

 

		6.	Notice. For purposes of the Credit Agreement, the initial notice address of the Additional
Revolving Lender shall be as set forth below its signature below.

 

		7.	Tax Forms. For the Additional Revolving Lender, delivered herewith to the Administrative
Agent and the Borrower are such forms, certificates or other evidence with respect to United States federal income tax withholding
matters as such Additional Revolving Lender may be required to deliver to the Administrative Agent and/or the Borrower pursuant
to Section 2.17 of the Credit Agreement.

 

		8.	Recordation of the New Loans. Upon execution and delivery hereof, the Administrative Agent
will record the Additional Revolving Loans, as the case may be, made by the Additional Revolving Lender in the Register.

 

		9.	Acknowledgement and Consent. The Borrower hereby acknowledges that it has reviewed the terms
and provisions of the Credit Agreement and this Agreement and consents to the amendment of the Credit Agreement effected pursuant
to this Agreement, including without limitation, the making of the Incremental Revolving Commitment Increase. The Borrower hereby
confirms that each Loan Document to which it is a party or otherwise bound and all Collateral encumbered thereby will continue
to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents the payment and
performance of all “Secured Obligations” under each of the Loan Documents to which it is a party (in each case as such
terms are defined in the applicable Loan Document), including without limitation, the Incremental Revolving Commitment Increase.
The Borrower acknowledges and agrees that any of the Loan Documents (as they may be modified by this Agreement) to which it is
a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement other than to the extent expressly
contemplated hereby.

 

    	 	3	 

     

    

 

		10.	Amendment, Modification and Waiver. This Agreement may not be amended, modified or waived
except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

 

		11.	Entire Agreement. This Agreement, the Credit Agreement, the Fee Letter dated of even date
herewith between the Borrower and the Additional Revolving Lender (the “Fee Letter”) and the other Loan Documents
constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other
prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter
hereof.

 

		12.	GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK.

 

		13.	Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. Without limiting the foregoing
provisions of this Section 17, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting
Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, then such provisions shall
be deemed to be in effect only to the extent not so limited.

 

		14.	Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by
facsimile or other electronic means shall be effective as delivery of an original executed counterpart of this Agreement.

 

    	 	4	 

     

    

 

 

IN
WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement
as of the date first set forth above.

 

	 	SunTrust BANK
	 	 
	 	By:	/s/ Rich Cosgray
	 	Name:	Rich Cosgray
	 	Title:	Director

 

 

     

     

    

 

 

 

	 	CANYON VALOR COMPANIES, INC.
	 	 
	 	By:	/s/ Jack Pearlstein
	 	Name:	Jack Pearlstein
	 	Title:	 Chief
    Financial Officer
	 	 	 

 

 

 

     

     

    

 

	 	Acknowledged by:
	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH,
	 	as Administrative Agent
	 	 	 
	 	By:	/s/ Alicia Schug
	 	Name:	Alicia Schug
	 	Title:	Vice President
	 	 	 
	 	 	 
	 	By:	/s/ Maria Guinchard
	 	Name:	Maria Guinchard
	 	Title:	Vice President

 

 

 

     

     

    

 

 

SCHEDULE A

TO INCREMENTAL AGREEMENT

 

	Name of Additional Revolving Lender	Incremental Revolving Commitment Increase
	SunTrust Bank	$25,000,000
	 	Total:$25,000,000

 

     

     

    

 

  

SCHEDULE B

TO INCREMENTAL AGREEMENT

 

	Name of Revolving Lender	Revolving Commitment
	Deutsche Bank AG New York Branch	$25,000,000
	Barclays Bank PLC	$25,000,000
	Royal Bank of Canada	$25,000,000
	SunTrust Bank	$25,000,000
	 	Total:$100,000,000Exhibit 4.1

 

AMENDMENT AGREEMENT AND WAIVER

 

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

 

RECITALS

 

A. Reference is made
to that certain Securities Purchase Agreement dated as of April 22, 2015, by and among the Company, the Holder (if applicable)
and the other investors (the “April 2015 Other Holders”) listed on the signature pages attached thereto (the
“April 2015 SPA”) and, if applicable, the Senior Secured Notes issued to the Holder pursuant thereto, as amended
and restated on December 2, 2016 pursuant to certain amendment agreements (as amended from time to time prior to the date hereof,
the “April 2015 Notes”);

 

B. Reference is made
to that certain Securities Purchase Agreement dated as of May 7, 2015, by and among the Company, the Holder (if applicable) and
the other investors (the “May 2015 Other Holders” and together with the April 2015 Other Holders, the “Other
Holders” and together with the Holder, the “Holders”) listed on the signature pages attached thereto
(the “May 2015 SPA” and together with the April 2015 SPA, individually, an “SPA” and collectively,
the “SPAs”), and, if applicable, the Senior Secured Notes issued to the Holder pursuant thereto, as amended
and restated on December 2, 2016 pursuant to certain amendment agreements (as amended from time to time prior to the date hereof,
the “May 2015 Notes” and together with the April 2015 Notes, the “2015 Notes”);

 

C. The Company intends
to issue additional convertible senior secured promissory notes in the aggregate principal amount of up to $4,444,445 (the “December
2018 Notes”) and related warrants to purchase up to an aggregate of 22,222,223 shares of the Company’s Common Stock
(the “December 2018 Warrants”) in order to support its working capital needs; and

 

D. In compliance with
Section 15 of the 2015 Notes and the SPAs, this Amendment shall only be effective upon the execution and delivery of this Amendment
and agreements in form and substance identical to this Amendment (other than with respect to the identity of the Holder and any
provision regarding the reimbursement of legal fees) (the “Other Agreements” and together with this Amendment,
the “Amendments”) by Other Holders of the 2015 Notes (each an “Other Holder”) representing
on the Closing Date at least the Required Holders (as defined in each of the 2015 Notes) (such time, the “Effective Time”).

 

AGREEMENT

 

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

 

     

     

    

 

ARTICLE I

SECURITIES PURCHASE
AGREEMENTS

 

1.
Extension and Removal of Listing Deadline. The first sentence of Section 4(f) of the each of the SPAs is hereby amended
and restated as follows:

 

“The
Company shall commence trading of its Common Stock on either The New York Stock Exchange, Inc., the NYSE American, The NASDAQ Capital
Market, The NASDAQ Global Select Market or The NASDAQ Global Market (collectively, the “Qualified Eligible Markets”)
no later than January 31, 2019 (the “Listing Deadline”).”

 

Notwithstanding
the foregoing, effective upon the issuance by the Company of December 2018 Notes for aggregate gross proceeds of at least $2.0
million pursuant to that certain Securities Purchase Agreement, dated as of [ ], by and among the Company, the investors set forth
on the Schedule of Buyers thereto and the investors, if any, party to a joinder agreement with respect thereto, as the same may
be amended or otherwise modified from time to time pursuant to the terms thereof (the “December 2018 SPA”),
the first sentence of Section 4(f) of each of the SPAs is hereby amended and restated as follows:

 

“[Reserved].”

 

2.
Waiver of Effect of Issuance of December 2018 Notes on SPAs. Each Required Holder hereby consents to the waiver of, and
hereby irrevocably waives, the effect of the issuance of the December 2018 Notes and the December 2018 Warrants pursuant to that
certain December 2018 SPA on any representation, warranty or covenant in the SPAs, including but not limited to Sections 4(k) thereof.

 

ARTICLE II

NOTES

 

1.
Waiver of Effect of Issuance of December 2018 Notes on 2015 Notes. Each Required Holder hereby consents to the waiver of,
and hereby irrevocably waives, the effect of the issuance of the December 2018 Notes pursuant to the December 2018 SPA on any representation,
warranty or covenant in the 2015 Notes, including but not limited to Sections 4(a) and 14(d) thereof.

 

2. Waiver of Effect
of Payments Under Side Letter. Each Required Holder hereby consents to the waiver of, and irrevocably waives, the effect of
any payments of principal, interest and/or late charges outstanding under the December 2018 Notes pursuant to the terms of that
certain side letter, dated as of [__] (the “Side Letter”), by and among the Company and the holders of the December
2018 Notes, and, without limiting the generality of the foregoing, hereby acknowledges and agrees that any such payments pursuant
to the terms of the Side Letter shall not (i) constitute an Event of Default (as defined in the 2015 Notes), (ii) constitute a
breach of Section 14(d) of the 2015 Notes or (iii) obligate the Company to repay or redeem the 2015 Notes on the terms described
in the Side Letter.

 

3.
Waiver of Events of Default. Any Event of Default pursuant to Section 4(a) of each of the 2015 Notes occurring from or after
December 31, 2017, and through and including the effective date of this Amendment, including any Event of Default related to the
Company’s filing of reports required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act,
is irrevocably waived on behalf of all holders of 2015 Notes. Such waiver shall extend to, without limitation any adjustments of
terms, applications of alternate rights and any Company restrictions that would have arisen from any such Event of Default.

 

    2

     

    

 

4. Maturity Date.
The third sentence of Section 1 of the 2015 Notes is hereby amended and restated as follows:

 

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

 

Notwithstanding the
foregoing, effective upon the issuance by the Company of December 2018 Notes for aggregate gross proceeds of at least $2.0 million
pursuant to the December 2018 SPA, the third sentence of Section 1 of the 2015 Notes is hereby amended and restated as follows:

 

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

 

5. Optional Redemption
at the Holder’s Election. The first sentence of Section 7 of the 2015 Notes is hereby amended and restated as follows:

 

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

 

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

 

		a.	Section 7. Section 7 of the 2015 Notes is hereby
amended and restated as follows:

 

“[Reserved].”

 

		b.	Section 11(a). The third sentence of Section 11(a)
of the 2015 Notes is hereby deleted.

 

    3

     

    

 

		c.	Section 30(ee). The phrase “Holder Optional
Redemption Dates” is hereby deleted from Section 30(ee) of the 2015 Notes.

 

		d.	Section 30(ff). The phrase “Holder Optional
Redemption Notices” is hereby deleted from Section 30(ff) of the 2015 Notes.

 

		e.	Section 30(gg). The phrase “Holder Optional
Redemption Prices” is hereby deleted from Section 30(gg) of the 2015 Notes.

 

6. Amendment of Definition
of “Permitted Indebtedness”. Section 30(aa) of the 2015 Notes is hereby amended and restated as follows:

 

“(aa) “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note and the Other Notes, (ii) trade payables incurred in the
ordinary course of business consistent with past practice, (iii) Indebtedness incurred by the Company that is made expressly subordinate
in right of payment to the Indebtedness evidenced by this Note, as reflected in a written agreement acceptable to the Required
Holders and approved by the Required Holders in writing, and which Indebtedness does not provide at any time for (a) the payment,
prepayment, repayment, repurchase or defeasance, directly or indirectly, of any principal or premium, if any, thereon until ninety-one
(91) days after the Maturity Date or later and (b) total interest and fees at a rate in excess of twelve percent (12.0%) per annum,
(iv) Indebtedness secured by Permitted Liens described in clauses (iv) of the definition of Permitted Liens, (v) deemed Indebtedness
arising from one or more operating leases, including, without limitation, the leases for one or more test turbines from Dresser-Rand,
but only if such lease, if secured, is secured solely by such test turbine, (vi) Indebtedness incurred pursuant to the Backstop
Agreement, (vii) Indebtedness by the notes issued pursuant to the Securities Purchase Agreement dated as of September 1, 2016 by
and among the Company and the investors thereto, as subsequently amended, restated or modified thereafter), (viii) the Additional
Notes issued prior to or on the Initial Closing Date, provided that the Indebtedness evidenced by the Additional Notes is not increased,
refinanced, amended, changed or modified on or after the date of issuance thereof, (ix) the guarantees pursuant to the Guaranty
Agreements, (x) those certain senior secured convertible notes issued by the Company pursuant to that certain Securities Purchase
Agreement, dated as of September 19, 2017 by and among the Company and the investors listed on the signature pages attached thereto,
as subsequently amended, restated or modified thereafter, (xi) those certain senior secured convertible notes issued by the Company
pursuant to that certain Securities Purchase Agreement, dated as of June 5, 2018 by and among the Company and the investors listed
on the signature pages attached thereto, as subsequently amended, restated or modified thereafter and (xii) those certain senior
secured convertible notes issued by the Company pursuant to that certain Securities Purchase Agreement, dated as of December [__],
2018 by and among the Company and the investors listed on the signature pages attached thereto, as subsequently amended, restated
or modified thereafter.”

 

7. Eligible Market
Deadline. Section 30(m) of the 2015 Notes is hereby amended and restated as follows:

 

““Eligible Market”
means The New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market, The NASDAQ Capital Market or the
NYSE American or, on or prior to January 31, 2019, the Principal Market.

 

    4

     

    

 

Notwithstanding the
foregoing, effective upon the issuance by the Company of December 2018 Notes for aggregate gross proceeds of at least $2.0 million
pursuant to the December 2018 SPA, Section 30(m) of the 2015 Notes is hereby amended and restated as follows.

 

“Eligible Market”
means The New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market, The NASDAQ Capital Market, the NYSE
American or the Principal Market.”

 

article
III

MISCELLANEOUS

 

1. Effect of this
Amendment. This Amendment shall form a part of the 2015 Notes and SPAs for all purposes, and each holder of 2015 Notes and
each party to the SPAs shall be bound hereby. This Amendment shall only be deemed to be in full force and effect from and after
both the execution of this Amendment by the parties hereto and the execution of Amendments substantially identical to this Amendment
by the Company and “Holders” holding at least a majority of the aggregate principal amount of the 2015 Notes outstanding,
including the Lead Investor, as well as the Collateral Agent, that, together with undersigned, constitute the Required Holders
under each of the 2015 Notes and SPAs. From and after such effectiveness, any reference to the 2015 Notes and the SPAs shall be
deemed to be a reference to the 2015 Notes and SPAs, as amended hereby. Except as specifically amended as set forth herein, each
term and condition of the 2015 Notes and SPAs shall continue in full force and effect.

 

2. Entire Agreement.
This Amendment, together with the SPAs and 2015 Notes, as amended and/or amended and restated to date, contains the entire agreement
of the parties with respect to the matters contemplated hereby and thereby, and supersedes any prior or contemporaneous written
or oral agreements between them concerning the subject matter of this Amendment.

 

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

 

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

 

[Signature Page Follows]

 

    5

     

    

 

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

 

	 	COMPANY:
	 	 
	 	ENER-CORE, INC.
	 	 	 
	 	By:	

	 	 	Name:	Domonic J. Carney
	 	 	Title:  	Chief Financial Officer

 

 

 

Signature
Page to Amendment Agreement and Waiver—2015 Notes

 

     

     

    

 

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

 

	 	HOLDER:
	 	 
	 	By:	

	 	 	Name:	 
	 	 	Title:	 

 

 

 

Signature
Page to Amendment Agreement and Waiver—2015 Notes

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