Exhibit 10.2

 
AMENDMENT NO. 1 TO THE AMENDED AND RESTATED
SECURITY AGREEMENT
 
THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED SECURITY AGREEMENT (the
“Amendment”), dated as of October 10, 2019, is entered by and among Flux Power,
Inc., a California corporation (the “Company”), Esenjay Investments, LLC,
Cleveland Capital, L.P., Otto Candies, Jr., Paul Candies, Brett Candies, Winn
Interest, Ltd., David A. Modesett, Helen M. Tabone and additional parties that
join this Amendment as a secured party (each a “Secured Party,” and
collectively, the “Secured Parties”), and Esenjay Investments, LLC (“Esenjay”),
in its capacity as the collateral agent.
 
WHEREAS, the Company, Esenjay, and the Secured Parties are the parties to that
certain Amended and Restated Security Agreement dated March 28, 2019 (“Security
Agreement”); and
 
WHEREAS, the Company and the Secured Parties desire to amend the Security
Agreement pursuant to the Second Amended and Restated Credit Facility Agreement,
dated October 10, 2019, by and among the Company and the Secured Parties (the
“Restated Credit Facility Agreement”), to increase the maximum amount of the
Advances (as defined in the Restated Credit Facility Agreement) from Seven
Million Dollars ($7,000,000) to Ten Million Dollars ($10,000,000).
 
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed by each party hereto as follows:
 
1.           Reference to the Credit Facility Agreement. From and after the date
of this Agreement, each reference in the Security Agreement to the “Credit
Facility Agreement” shall mean and be a reference to the Restated Credit
Facility Agreement.
 
2.           Miscellaneous.
 
2.1           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 the Secured Parties under the Security Agreement nor
constitute a waiver of any provision of the Security Agreement.
 
2.2           Except as expressly amended and modified by this Amendment, the
Security Agreement is and shall continue to be in full force and effect in
accordance with the terms thereof.
 
2.2           This Amendment may be executed by the parties hereto in
counterparts, and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.
 
2.3           The Amendment shall be construed in accordance and governed by the
internal laws of the state of California.
 
2.4           The headings contained in this Amendment are for ease of reference
only and shall not be considered in construing this Amendment.
 
[SIGNATURE PAGE FOLLOWS]
 
 
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to the
Amended and Restated Security Agreement to duly executed as of the day and year
first written above. 
 
 
THE COMPANY
 
Flux Power, Inc.,
a California corporation
 
 
________________________________
Ronald Dutt, Chief Executive Officer
 
 
SECURED PARTIES
 
Esenjay Investments, LLC
 
 
________________________________
Name:                                                                 
Title:                                                                 
 
 
Cleveland Capital, L.P.
 
 
________________________________
Name: ________________________________
Title: ________________________________
 
 
 
________________________________
Otto Candies, Jr.
 
 
 
________________________________
Paul Candies
 
 
 
________________________________
Brett Candies
 
 
Winn Interest, Ltd.
 
________________________________
Name: ________________________________
Title: ________________________________
 
________________________________
David A. Modesett
 
 
________________________________________
Helen M. Tabone
 
 

 
 
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Collateral Agent
 
 
Esenjay Investments, LLC
 
 
________________________________
Name: ________________________________
Title: ________________________________

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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