SEC Contract Filing

Filing Date: 2018-06-06

Document Content:
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<TYPE>EX-10.4
<SEQUENCE>11
<FILENAME>f8k060518ex10-4_enercore.htm
<DESCRIPTION>FORM OF FOURTH AMENDMENT TO PLEDGE AND SECURITY AGREEMENT, DATED APRIL 23, 2015, BY AND AMONG ENER-CORE, INC., ENER-CORE POWER, INC. AND EMPERY TAX EFFICIENT, LP, EFFECTIVE AS OF JUNE 5, 2018
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<P STYLE="margin: 0; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit 10.4</B></FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FOURTH
AMENDMENT TO THE PLEDGE AND SECURITY AGREEMENT</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
<B>FOURTH AMENDMENT TO THE PLEDGE AND SECURITY AGREEMENT</B>, dated as of June 5, 2018 (this &ldquo;<B>Fourth Amendment</B>&rdquo;),
is entered into by and among <B>Ener-Core, Inc.</B>, a Delaware corporation (the &ldquo;<B>Company</B>&rdquo;), <B>Ener-Core Power,
Inc. </B>(&ldquo;<B>ECP</B>&rdquo;), a Delaware corporation, and each other Subsidiary of the Company and ECP hereafter becoming
party hereto (together with the Company and ECP, each a &ldquo;<B>Grantor</B>&rdquo; and, collectively, the &ldquo;<B>Grantors</B>&rdquo;),
and <B>Empery Tax Efficient, LP</B>, in its capacity as collateral agent (in such capacity, the &ldquo;<B>Collateral Agent</B>&rdquo;)
for (a) the buyers listed in the Schedule of Buyers (the &ldquo;<B>April 2015 Investors</B>&rdquo;) attached to that certain Securities
Purchase Agreement dated April 22, 2015 entered into by and among the Company and the April 2015 Investors (as the same may be
amended, restated or otherwise modified from time to time, the &ldquo;<B>April 2015 SPA</B>&rdquo;); (b) the buyers listed in
the Schedule of Buyers (the &ldquo;<B>May 2015 Investors</B>&rdquo;) attached to that certain Securities Purchase Agreement, dated
as of May 7, 2015 entered into by and among the Company and the May 2015 Investors (as the same may be amended, restated or otherwise
modified from time to time, the &ldquo;<B>May 2015 SPA</B>&rdquo;); (c) the buyers listed in the Schedule of Buyers (the &ldquo;<B>November
2016 Investors</B>&rdquo;) attached to that certain Securities Purchase Agreement, dated as of November 23, 2016 entered into
by and among the Company and the November 2016 Investors (as the same may be amended, restated, joined or otherwise modified from
time to time, the &ldquo;<B>November 2016 SPA</B>&rdquo;); (d) the holders of the notes amended, restated and delivered pursuant
to those Amendment Agreements (collectively, the &ldquo;<B>Amendment Agreements</B>&rdquo;), pursuant to which the Company amended
and restated certain notes held by the April 2015 Investors and the May 2015 Investors for senior secured convertible notes; (e)&nbsp;the
buyers listed in the Schedule of Buyers (the &ldquo;<B>September 2017 Investors</B>&rdquo;) attached to that certain Securities
Purchase Agreement, dated as of September 19, 2017 entered into by and among the Company and the September 2017 Investors (as
the same may be amended, restated, joined or otherwise modified from time to time, the &ldquo;<B>September 2017 SPA</B>&rdquo;);
and (f) the buyers listed in the Schedule of Buyers (the &ldquo;<B>June 2018 Investors</B>&rdquo;) attached to that certain Securities
Purchase Agreement, dated as of June 5, 2018 entered into by and among the Company and the June 2018 Investors (as the same may
be amended, restated, joined or otherwise modified from time to time, the &ldquo;<B>June 2018 SPA</B>&rdquo;). Reference is hereby
made to that certain Pledge and Security Agreement dated April 23, 2015 by and among the Company and the Collateral Agent (as
amended, restated, supplemented or otherwise modified prior to the date hereof, the &ldquo;<B>Security Agreement</B>&rdquo;).
Capitalized terms used herein and not otherwise defined shall have the definitions ascribed to such terms in the Security Agreement.</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RECITALS</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
the Company had previously entered into the April 2015 SPA with the April 2015 Investors pursuant to which the Company issued
senior secured promissory notes (as amended, restated, replaced or otherwise modified from time to time in accordance with the
terms thereof (including pursuant to the Amendment Agreements), collectively, the &ldquo;<B>April 2015 Notes</B>&rdquo;) and warrants
(&ldquo;<B>April 2015 Warrants</B>&rdquo;) to the April 2015 Investors (the financing transaction contemplated under the April
SPA is hereinafter referred as the &ldquo;<B>April