Document:

Exhibit 4.3

 

FIRST AMENDMENT TO

[AMENDED AND RESTATED] SENIOR SECURED NOTES

 

THIS FIRST AMENDMENT TO [AMENDED
AND RESTATED] SENIOR SECURED NOTES (this “Amendment”) is made and entered into as of April 27, 2017 by and among
Ener-Core, Inc., a Delaware corporation (the “Company”), and the undersigned, and amends those certain Senior
Secured Notes [amended and restated as of December 2, 2016 (as amended to date, the “Notes”), as originally
issued by the Company pursuant to (i) that certain Securities Purchase Agreement, dated April 22, 2015, by and among the Company,
the “Buyers” identified therein, and the Collateral Agent identified therein (as amended to date, the “April
2015 Agreement”); and (ii) that certain Securities Purchase Agreement, dated May 7, 2015, by and among the Company, the
“Buyers” identified therein, and the Collateral Agent identified therein (as amended to date and together with the
April 2015 Agreement, the “Agreements”)] [dated as of December 2, 2016 and December 20, 2016 (as amended to
date, the “Notes”), issued by the Company pursuant to that certain Securities Purchase Agreement, dated November
23, 2016, by and among the Company and the “Buyers” identified therein (as amended to date, the “Agreement”)].
Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Notes.

 

RECITALS

 

WHEREAS, pursuant to Section
15 of the Notes, the written consent of the holders of Notes representing at least a majority of the aggregate principal amount
of the Notes then outstanding, including Empery Asset Master, Ltd. (“Empery”) so long as Empery or any of its
Affiliates holds any Notes, and the Collateral Agent (the “Required Holders”), shall be required for any change
or amendment or waiver of any provision of the Notes, provided that any such amendment or waiver does not disproportionately, materially
and adversely affect the rights and obligations of any Holder relative to the comparable rights and obligations of the other Holders;

 

WHEREAS, any amendment or
waiver effected in accordance with Section 15 of the Notes is binding upon all holders of Notes; and

 

WHEREAS, the parties hereto
wish to amend the Notes as set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:  

 

ARTICLE I

AMENDMENTS TO THE NOTES

 

Section 1.1      Backstop
Agreement. Section 30(e) of the Notes is hereby amended and restated as follows:

 

“Backstop
Agreement” means that certain Backstop Security Support Agreement, originally entered into on November 2, 2015 by
and between an individual investor and the Company, as amended pursuant to that certain First Amendment to Backstop Security
Support Agreement, dated as of April 27, 2017, by and between an individual investor and the Company.” 

 

     

     

    

 

article ii

MISCELLANEOUS

 

Section 2.1      Effect of this
Amendment. This Amendment shall form a part of each Note for all purposes, and each holder thereof 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 agreements substantially identical to this Amendment by the Company and holders of Notes representing
at least a majority of the sum of the aggregate principal amount of the Notes then outstanding that, together with undersigned,
constitute the Required Holders. From and after such effectiveness, any reference to the Notes shall be deemed to be a reference
to the Notes as amended hereby. Except as specifically amended as set forth herein, each term and condition of the Notes shall
continue in full force and effect.

 

Section 2.2      Entire Agreement.
This Amendment, together with the Notes, contains the entire agreement of the parties and supersedes any prior or contemporaneous
written or oral agreements between them concerning the subject matter of this Amendment.

 

Section 2.3      Governing Law.
This Amendment shall be governed by the internal law of the State of New York.

 

Section 2.4      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 Pages Follow]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this First Amendment to [Amended and Restated] Senior Secured Notes as of the date first written above.

 

	 	COMPANY:
	 	 
	 	ENER-CORE, INC.
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature
Page to First Amendment to [Amended and Restated] Senior Secured Notes

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this First Amendment to [Amended and Restated] Senior Secured Notes as of the date first written above.

 

	 	
        HOLDER:

	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page
to First Amendment to [Amended and Restated] Senior Secured NotesExhibit
10.1

 

FIRST
AMENDMENT TO BACKSTOP SECURITY SUPPORT AGREEMENT

 

This
First Amendment to Backstop Security Support Agreement (“Amendment”) is made and entered into on April
27, 2017, by and between Anthony Tang, an individual investor (the “Investor”), and Ener-Core, Inc.,
a corporation incorporated under the laws of Delaware (“Ener-Core”), and amends that certain Backstop
Security Support Agreement by and between Investor and Ener-Core dated November 2, 2015 (the “Agreement”).
Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.

 

RECITALS

 

WHEREAS,
on April 11, 2017, Ener-Core executed a First Amendment to that certain Commercial and Manufacturing License Agreement dated June
29, 2016 (as amended, the “CMLA”), with D-R, making the CMLA effective as of January 1, 2017, in replacement
of the CLA;

 

WHEREAS,
the CMLA reduces the required backstop security in favor of D-R from $2.1 million to $500,000 and extends the term thereof; and

 

WHEREAS,
in relation to such changes under the CMLA, Ener-Core and Investor wish to reduce the financial obligation covered by the Letter
of Credit and formally amend the terms of the Agreement to reflect a reduction in the security obligation underlying the required
Letter of Credit, amend the terms of the Warrant and seek a consent pursuant to the Intercreditor Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

1.      Reduction
in Letter of Credit and Related Obligations. Investor agrees to take prompt action to instruct EW to reduce the commitment
under the Letter of Credit to $500,000, to be effective no later than April 19, 2017, and to extend the expiration date of the
Letter of Credit to March 31, 2018. Investor and Ener-Core agree that this reduction may not be revoked and that Investor shall
not have any obligation to increase such commitment above $500,000. Investor acknowledges that the payment obligations of Ener-Core
secured by the security interest granted by the Agreement and governed by the Security Agreement shall likewise be reduced.

 

2.      Amendment
to Term. Section 2(c) of the Agreement is hereby deleted in its entirety and replaced as follows:

 

“(c)
March 31, 2018.”

 

3.      Amendment
of Fees. Section 3(d) of the Agreement is hereby deleted in its entirety and replaced as follows:

 

“(d)
if after the initial twelve months the Term has not ended, then (i) for each calendar month (or part thereof if applicable in
the case where the Term ends pursuant to Section 2) commencing with the month immediately following the initial twelve months
and continuing through April 18, 2017 (unless the Term ends earlier as provided in Section 2), a monthly fee equal to 2% of the
amount of the Letter of Credit, and (ii) after April 18, 2017 (unless the Term ends earlier as provided in Section 2), through
the end of the Term as provided in Section 2, a monthly fee equal to 1% of the amount of the Letter of Credit (as reduced after
such date), which monthly fee in each case will be due and payable at the end of each such calendar month;”

 

    	 		 

     

    

 

4.      Amendment
and Restatement of Warrant. Concurrent with execution of and pursuant to this Amendment, Ener-Core and Investor shall amend
and restate the terms of the Warrant to change the exercise price per share of common stock of Ener-Core, par value $0.0001 per
share (the “Common Stock”), to $3.00 and include a beneficial ownership blocker provision at 4.99%,
in the form attached hereto as Exhibit A.

 

5.      Additional
Warrant. Concurrent with execution of and pursuant to this Amendment, Ener-Core shall issue to Investor an additional warrant
to purchase 41,000 shares of Common Stock with a five-year term at $3.00 per share, which shall include a beneficial ownership
blocker provision at 4.99%, in the form attached hereto as Exhibit B (the “Additional Warrant”).

 

6.      Effect
of this Amendment. This Amendment shall form a part of the Agreement for all purposes. From and after such effectiveness,
any reference to the Agreement shall be deemed to be a reference to the Agreement as amended hereby. Except as specifically amended
as set forth herein, each term and condition of the Agreement shall continue in full force and effect.

 

7.      Entire
Agreement. This Amendment, together with the Agreement, the Security Agreement and the Intercreditor Agreement, including
any further amendments, consents or waivers related thereto, contains the entire agreement of the parties and supersedes any prior
or contemporaneous written or oral agreements between them concerning the subject matter of this Amendment.

 

8.      Governing
Law. This Amendment shall be governed by the internal laws of the State of California.

 

9.      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]

 

     

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this document to be executed and delivered by their respective authorized representatives
as of the date indicated above.

 

	Ener-Core, Inc.	 	Anthony Tang
	 	 	 	 
	 	 	 
	By:	 	 	Anthony Tang
	Its:	          	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature
Page to First Amendment to Backstop Security Support Agreement

 

    	 		 

     

    

 

EXHIBIT
A

 

FORM
OF AMENDED AND RESTATED WARRANT

 

[Omitted]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit
                                         A	 

     

    

 

EXHIBIT
B

 

FORM
OF ADDITIONAL WARRANT

 

[Omitted]

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Exhibit
B

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