Document:

Exhibit
4.1

 

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 6.3 AND 6.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY
TO THE COMPANY, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

WARRANT
TO PURCHASE STOCK

 

This
WARRANT TO PURCHASE STOCK (as amended and in effect from time to time, this “Warrant”) is issued as of the issue date
set forth on Schedule I hereto (the “Issue Date”) by the company set forth on Schedule I hereto (the
“Company”) to SILICON VALLEY BANK in connection with that certain Loan and Security Agreement of even date herewith
among Silicon Valley Bank, the Company and Flux Power, Inc. (as amended and/or modified and in effect from time to time, the “Loan
Agreement”), and shall be transferred to SVB FINANCIAL GROUP pursuant to Section 6.4 below. The parties agree as follows:

 

SCHEDULE
I. WARRANT PROVISIONS.

 

	Warrant
    Section	 	Warrant
    Provision
	 	 	 
	Recitals
    – “Issue Date”	 	June
    23, 2022
	 	 	 
	Recitals
    – “Company”	 	Flux
    Power Holdings, Inc., a Nevada corporation
	 	 	 
	1.1
    – “Class”	 	Common
    Stock, $0.001 par value per share
	 	 	 
	1.1
    – “Exercise Price”	 	$2.23
    per share
	 	 	 
	1.2
    – “Shares”	 	40,806
	 	 	 
	4.1(c)
    – Share percentage as of the Issue Date	 	0.200%
    of the Company’s total fully-diluted shares outstanding.
	 	 	 
	6.1(a)
    – “Expiration Date”	 	June
    23, 2034

 

SECTION
1. RIGHT TO PURCHASE SHARES.

 

1.1
Grant of Right. For good and valuable consideration, the Company hereby grants to SILICON VALLEY BANK (together with any successor
or permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”) the right,
and Holder is entitled, to purchase from the Company up to the number of fully paid and non-assessable shares (as determined pursuant
to Section 1.2 below) of the class set forth on Schedule I hereto (the “Class”), at a purchase price per Share
set forth on Schedule I hereto (the “Exercise Price”), subject to the provisions and upon the terms and conditions
set forth in this Warrant.

 

1.2
Number of Shares. This Warrant shall be exercisable for the number of shares of the Class set forth on Schedule I hereto
(as may be adjusted from time to time in accordance with the provisions of this Warrant, the “Shares”).

 

    	 

    	 

    

 

SECTION
2. EXERCISE.

 

2.1
Method of Exercise. Holder may exercise this Warrant in whole or in part at any time and from time to time prior to the expiration
or earlier termination of this Warrant, by delivering to the Company the original of this Warrant together with a duly executed Notice
of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to
a cashless exercise set forth in Section 2.2 below, a check, wire transfer of same-day funds (to an account designated by the Company),
or other form of payment acceptable to the Company for the aggregate Exercise Price for the Shares being purchased. Notwithstanding any
contrary provision herein, to the extent that the original of this Warrant is an electronic original, in no event shall an original ink-signed
paper copy of this Warrant be required for any exercise of a Holder’s rights hereunder, nor shall this Warrant or any physical
copy hereof be required to be physically surrendered at the time of any exercise hereof.

 

2.2
Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Exercise Price in the manner specified
in Section 2.1 above, Holder may elect to surrender to the Company Shares having an aggregate value equal to the aggregate Exercise Price.
If Holder makes such election, the Company shall issue to Holder such number of fully paid and non-assessable Shares determined by the
following formula:

 

	 	X
    = Y(A-B)/A
	 	 
	 	where:
	 	 	 
	 	X
    =	the
    number of Shares to be issued to Holder;
	 	 	 
	 	Y
    =	the
    number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment
    of the aggregate Exercise Price);
	 	 	 
	 	A
    =	the
    fair market value (as determined pursuant to Section 2.3 below) of one Share; and
	 	 	 
	 	B
    =	the
    Exercise Price.

 

2.3
Fair Market Value. If shares of the Class are then traded or quoted on a nationally recognized securities exchange, inter-dealer
quotation system or over-the-counter market (a “Trading Market”), the fair market value of a Share shall be the closing
price or last sale price of a share of the Class reported for the Business Day immediately before the date on which Holder delivers this
Warrant together with its Notice of Exercise to the Company. If shares of the Class are not then traded in a Trading Market, the Board
of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment.

 

2.4
Delivery of Certificate and New Warrant. Within a reasonable time after Holder exercises this Warrant in the manner set forth
in Sections 2.1 or 2.2 above, the Company shall deliver to Holder a certificate (or, in the case of uncertificated securities, provide
notice of book entry) representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised and
has not expired, a new warrant of like tenor representing the Shares not so acquired (or surrendered in payment of the aggregate Exercise
Price).

 

2.5
Replacement of Warrant.

 

(a)
Paper Original Warrant. To the extent that the original of this Warrant is a paper original, on receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction,
on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation,
on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder,
in lieu of this Warrant, a new warrant of like tenor and amount.

 

(b)
Electronic Original Warrant. To the extent that the original of this Warrant is an electronic original, if at any time this Warrant
is rejected by any person (including, but not limited to, paying or escrow agents) or any such person fails to comply with the terms
of this Warrant based on this Warrant being presented to such person as an electronic record or a printout hereof, or any signature hereto
being in electronic form, the Company shall, promptly upon Holder’s request and without indemnity, execute and deliver to Holder,
in lieu of electronic original versions of this Warrant, a new warrant of like tenor and amount in paper form with original ink signatures.

 

    	2

    	 

    

 

2.6
Treatment of Warrant Upon Acquisition of Company.

 

(a)
Acquisition. “Acquisition” means any transaction or series of related transactions involving: (i) the sale,
lease, exclusive license, or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation
of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s
domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior
to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s)
outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders
of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power. For the
avoidance of doubt, “Acquisition” shall not include any sale and issuance by the Company of shares of its capital stock or
of securities or instruments exercisable for or convertible into, or otherwise representing the right to acquire, shares of its capital
stock to one or more investors for cash in a transaction or series of related transactions the primary purpose of which is a bona fide
equity financing of the Company.

 

(b)
Treatment of Warrant in Cash/Public Acquisition. In the event of an Acquisition in which the consideration to be received by the
holders of the outstanding shares of the Class (in their capacity as such) consists solely of cash, solely of Marketable Securities (as
hereinafter defined) or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the fair
market value of one Share as determined in accordance with Section 2.3 above would be greater than the Exercise Price in effect as of
immediately prior to the closing of such Cash/Public Acquisition, and Holder has not previously exercised this Warrant in full, then,
in lieu of Holder’s exercise of the unexercised portion of this Warrant, this Warrant shall, as of immediately prior to such closing
(but subject to the occurrence thereof), automatically cease to represent the right to purchase Shares and shall, from and after such
closing, represent solely the right to receive the aggregate consideration that would have been payable in such Acquisition on and in
respect of all Shares for which this Warrant was exercisable as of immediately prior to the closing thereof, net of the aggregate Exercise
Price therefor, as if such Shares had been issued and outstanding to Holder as of immediately prior to such closing, as and when such
consideration is paid to the holders of the outstanding shares of the Class. In the event of a Cash/Public Acquisition in which the fair
market value of one Share as determined in accordance with Section 2.3 above would be equal to or less than the Exercise Price in effect
as of immediately prior to the closing of such Cash/Public Acquisition, then this Warrant will automatically and without further action
of any party terminate as of immediately prior to such closing.

 

(c)
Treatment of Warrant in non-Cash/Public Acquisition. Upon the closing of any Acquisition other than a Cash/Public Acquisition,
the acquiring, surviving or successor entity shall assume this Warrant and the Company’s obligations hereunder, and this Warrant
shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise
of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, at an aggregate
Exercise Price equal to the aggregate Exercise Price in effect as of immediately prior to such closing, all subject to further adjustment
from time to time thereafter in accordance with the provisions of this Warrant.

 

(d)
Marketable Securities. “Marketable Securities” means securities meeting all of the following requirements (determined
as of immediately prior to the closing of the Acquisition): (i) the issuer thereof is then subject to the reporting requirements of Section
13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in
its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other
security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or
prior to the closing thereof is then traded in a Trading Market; and (iii) following the closing of such Acquisition, Holder would not
be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by Holder in such
Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any
such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six (6)
months from the closing of such Acquisition. Notwithstanding the foregoing provisions of this Section 2.6(d), securities held in escrow
or subject to holdback to cover indemnification-related claims shall be deemed to be Marketable Securities if they would otherwise be
Marketable Securities but for the fact that they are held in escrow or subject to holdback to cover indemnification-related claims.

 

    	3

    	 

    

 

SECTION
3. CERTAIN ADJUSTMENTS TO THE SHARES, CLASS AND EXERCISE PRICE.

 

3.1
Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the Class
payable in additional shares of the Class (including fractional shares) or other securities or property (other than cash), then upon
exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind
of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution
occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares,
the number of Shares purchasable hereunder shall be proportionately increased, even if such number would include fractional shares, and
the Exercise Price shall be proportionately decreased. If the outstanding shares of the Class are combined or consolidated, by reclassification
or otherwise, into a lesser number of shares, the Exercise Price shall be proportionately increased and the number of Shares shall be
proportionately decreased, even if such number would include fractional shares.

 

3.2
Reclassification, Exchange, Combination or Substitution. Upon any event whereby all of the outstanding shares of the Class are
reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series,
then from and after the consummation of such event, “Class” shall mean such securities and this Warrant will be exercisable
for the number of such securities that Holder would have received had the Shares been outstanding on and as of the consummation of such
event, at an aggregate Exercise Price equal to the aggregate Exercise Price in effect as of immediately prior to such event, all subject
to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section
3.2 shall similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events.

 

3.3
Adjustment to Exercise Price on Cash Dividend. In the event that the Company at any time or from time to time prior to the exercise
in full of this Warrant pays any cash dividend on the outstanding shares of the Class or makes any cash distribution on or in respect
of all outstanding shares of the Class (other than a distribution of cash proceeds received by the Company in connection with an Acquisition
described in Section 2.6(a)(i) above), then on and as of the date of each such dividend payment and/or distribution, the Exercise Price
shall be reduced by an amount equal to the amount paid or distributed upon or in respect of each outstanding share of the Class; provided
that in no event shall the Exercise Price be reduced below the then-par value, if any, of a share of the Class.

 

3.4
No Fractional Share. No fractional Share shall be issued upon exercise of this Warrant, and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of this Warrant, the Company
shall eliminate such fractional Share interest by paying Holder in cash an amount equal to (a) such fractional interest, multiplied by
(b)(i) the fair market value (as determined in accordance with Section 2.3 above) of a full Share, less (ii) the then-effective Exercise
Price (the “Fractional Share Value”), unless Holder otherwise elects, in its sole discretion, to waive such payment.
Notwithstanding any contrary provision herein, if this Warrant becomes exercisable for a fractional Share interest at any time or from
time to time prior to the exercise in full of this Warrant, and the Company eliminates such fractional Share interest prior to any exercise
of this Warrant, then the then-effective aggregate Exercise Price shall be reduced by an amount equal to the Fractional Share Value,
unless Holder otherwise elects, in its sole discretion, to waive such reduction.

 

3.5
Certificate as to Adjustments. Within a reasonable time following each adjustment of the Exercise Price, Class and/or number of
Shares pursuant to the terms of this Warrant, the Company, at its expense, shall deliver a certificate of its Chief Financial Officer
or other authorized officer to Holder setting forth the adjustments to the Exercise Price, Class and/or number of Shares and the facts
upon which such adjustments are based. The Company shall, at any time and from time to time within a reasonable time following Holder’s
written request and at the Company’s expense, furnish Holder with a certificate of its Chief Financial Officer or other authorized
officer setting forth the then-current Exercise Price, Class and number of Shares and the computations or other determinations thereof.

 

SECTION
4. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

 

4.1
The Company represents and warrants to, and agrees with, Holder, that:

 

(a)
All Shares which may be issued upon the exercise of this Warrant, shall, upon issuance, be duly authorized, validly issued, fully paid
and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under the Company’s
Restated Articles of Incorporation or Amended and Restated Bylaws, each as amended and in effect from time to time (the “Charter
Documents”) or applicable federal and state securities laws;

 

    	4

    	 

    

 

(b)
It shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number of shares
of the Class and other securities as will be sufficient to permit the exercise in full of this Warrant; and

 

(c)
The number of Shares set forth on Schedule I hereto represents not less than the share percentage set forth on Schedule I
hereto, calculated on and as of the Issue Date hereof on a fully-diluted, common stock-equivalent basis (but without excluding shares
of capital stock that are not convertible into shares of common stock) assuming (i) the conversion into common stock of all outstanding
securities and instruments (including, without limitation, securities deemed to be outstanding pursuant to clause (ii) of this Section
4.1(c)) convertible by their terms into shares of common stock (regardless of whether such securities or instruments are by their terms
now so convertible), (ii) the exercise in full of all outstanding options, warrants (including, without limitation, this Warrant) and
other rights to purchase or acquire shares of common stock or securities exercisable for or convertible into shares of common stock (regardless
of whether such options, warrants or other rights to purchase or acquire are by their terms now exercisable); and (iii) the inclusion
of all shares of common stock reserved for issuance under all of the Company’s incentive stock and stock option plans and not now
subject to outstanding grants or options.

 

4.2
Notice of Certain Events. If the Company proposes at any time to:

 

(a)
declare any dividend or distribution upon the outstanding shares of the Class, whether in cash, stock or other securities or property
and whether or not a regular cash dividend;

 

(b)
offer for subscription or sale pro rata to all holders of the outstanding shares of the Class any additional securities of the Company
(other than pursuant to contractual pre-emptive or first refusal rights);

 

(c)
effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the
Class; or

 

(d)
effect an Acquisition, or to liquidate, dissolve or wind up the Company;

 

then,
in connection with each such event, the Company shall give Holder notice thereof at the same time and in the same manner as it notifies
holders of the outstanding shares of the Class thereof.

 

4.3
Certain Company Information. The Company will provide such information requested by Holder from time to time, within a reasonable
time following each such request, that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting
requirements.

 

SECTION
5. REPRESENTATIONS AND COVENANTS OF HOLDER.

 

Holder
represents and warrants to, and agrees with, the Company as follows:

 

5.1
Investment Representations.

 

(a)
Purchase for Own Account. Except for the one-time transfer of this Warrant from Silicon Valley Bank to its parent SVB Financial
Group described in Section 6.4 below, this Warrant and the Shares to be acquired upon exercise hereof are being acquired for investment
for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of
the Act. Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

(b)
Disclosure of Information. Holder is aware of the Company’s business affairs and financial condition and has received or
has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect
to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions of and receive
answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain
additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to Holder or to which Holder has access.

 

    	5

    	 

    

 

(c)
Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial
risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear
the economic risk of such Holder’s investment in this Warrant and its underlying securities for an indefinite period of time, and
has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment
in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain
of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business
acumen and financial circumstances of such persons.

 

(d)
Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under
the Act.

 

(e)
The Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the
Act or registered or qualified under the securities laws of any state, and are issued in reliance upon specific exemptions therefrom,
which exemptions depend upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder
understands that the Company is under no obligation to so register or qualify this Warrant, the Shares or such other securities. Holder
understands that this Warrant and the Shares issued upon any exercise hereof are “restricted securities” under applicable
federal and state securities laws and must be held indefinitely unless subsequently registered under the Act and registered or qualified
under applicable state securities laws, or unless exemptions from such registration and qualification are otherwise available. Holder
is aware of the provisions of Rule 144 promulgated under the Act.

 

5.2
No Stockholder Rights. Without limiting any provision of this Warrant, Holder agrees that as a Holder of this Warrant it will
not have any rights (including, but not limited to, voting rights) as a stockholder of the Company with respect to the Shares issuable
hereunder unless and until the exercise of this Warrant and then only with respect to the Shares issued on such exercise.

 

5.3
Confidential Information. Holder agrees to treat and hold all information provided by the Company pursuant to this Warrant in
confidence in accordance with the provisions of Section 11.8 of the Loan Agreement (regardless of whether the Loan Agreement shall then
be in effect).

 

SECTION
6. MISCELLANEOUS.

 

6.1
Term; Automatic Cashless Exercise Upon Expiration.

 

(a)
Term. Subject to the provisions of Section 2.6 above, this Warrant is exercisable in whole or in part at any time and from time
to time on or before 6:00 PM, Pacific time, on the expiration date set forth on Schedule I hereto (the “Expiration Date”)
and shall be void thereafter.

 

(b)
Automatic Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share as determined
in accordance with Section 2.3 above is greater than the Exercise Price in effect on such date, then this Warrant shall automatically
be deemed on and as of such date to be exercised pursuant to Section 2.2 above as to all Shares for which it shall not previously have
been exercised, and the Company shall, within a reasonable time following Holder’s written request, deliver a certificate (or, in
the case of uncertificated securities, provide notice of book entry) representing the Shares issued to Holder upon such exercise.

 

6.2
Legends. Each certificate or notice of book entry evidencing Shares shall be imprinted with a legend in substantially the following
form (together with such additional legends as may be required by the Charter Documents):

 

THE
SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO SILICON
VALLEY BANK DATED JUNE __, 2022, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT
AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER
IS EXEMPT FROM SUCH REGISTRATION.

 

    	6

    	 

    

 

6.3
Compliance with Securities Laws on Transfer. This Warrant and the Shares issued upon exercise hereof may not be transferred or
assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee
(including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company,
as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to
SVB Financial Group (Silicon Valley Bank’s parent company) or any other affiliate of Holder; provided that any such transferee
is an “accredited investor” as defined in Regulation D promulgated under the Act.

 

6.4
Transfer Procedure. After receipt by Silicon Valley Bank of the executed Warrant, Silicon Valley Bank will transfer, for value
received, all of its rights, title and interest in and to this Warrant to its parent company, SVB Financial Group, without any separate
assignment agreement. By its acceptance of this Warrant, SVB Financial Group, on and as of the date of such assignment, hereby makes
to the Company each of the representations and warranties set forth in Section 5.1 hereof and agrees to be bound by all of the terms
and conditions of this Warrant as if it were the original Holder hereof. Subject to the provisions of Section 6.3 and upon providing
the Company with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this Warrant or the Shares
issued upon exercise of this Warrant to any transferee; provided that in connection with any such transfer, SVB Financial Group or any
subsequent Holder will give the Company notice of the portion of the Warrant and/or Shares being transferred with the name, address and
taxpayer identification number of the transferee, and Holder will surrender this Warrant, or the certificates or other evidence of such
Shares or other securities, to the Company for reissuance to the transferee(s) (and to Holder if applicable); and provided further, that
any subsequent transferee other than SVB Financial Group shall make substantially the representations set forth in Section 5.1 above
and shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant.

 

6.5
Notices. All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered
and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified
mail, postage prepaid, (iii) upon actual receipt if given by electronic mail and such receipt is confirmed in writing by the recipient,
or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such
address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to
time in accordance with the provisions of this Section 6.5. All notices to Holder shall be addressed as follows until the Company receives
notice of a change of address in connection with a transfer or otherwise:

 

SVB
Financial Group

Attn:
Warrants

80
East Rio Salado Parkway, Suite 600

Tempe,
AZ 85281

Telephone:
(480) 557-4900

Email:
SVBFGWarrants@svb.com

 

All
notices to the Company shall be addressed as follows until Holder receives notice of a change in address:

 

Flux
Power Holdings, Inc.

Attn:
Chief Financial Officer

2685
South Melrose Drive

Vista,
CA 92081

Telephone:
(877) 505-3589

Email:

 

With
a copy (which shall not constitute notice) to:

 

Lewis
Brisbois Bisgaard & Smith LLP

333
Bush Street, Suite 1100

San
Francisco, CA 94104

Attn:
John P. Yung and Daniel B. Eng

Telephone:
(415) 362-2580

Email:
john.yung@lewisbrisbois.com; daniel.eng@lewisbrisbois.com

 

    	7

    	 

    

 

6.6
Amendment and Waiver. Notwithstanding any contrary provision herein or in the Loan Agreement, this Warrant may be amended and
any provision hereof waived (either generally or in a particular instance and either retroactively or prospectively) only by an instrument
in writing signed by Holder and any party against which enforcement of such amendment or waiver is sought.

 

6.7
Counterparts; Electronic Signatures; Status as Certificated Security. This Warrant may be executed by one or more of the parties
hereto in any number of separate counterparts, all of which together shall constitute one and the same instrument. The Company, Holder
and any other party hereto may execute this Warrant by electronic means and each party hereto recognizes and accepts the use of electronic
signatures and the keeping of records in electronic form by any other party hereto in connection with the execution and storage hereof.
To the extent that this Warrant or any agreement subject to the terms hereof or any amendment hereto is executed, recorded or delivered
electronically, it shall be binding to the same extent as though it had been executed on paper with an original ink signature, as provided
under applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act. The fact that this
Warrant is executed, signed, stored or delivered electronically shall not prevent the transfer by any Holder of this Warrant pursuant
to Section 6.4 or the enforcement of the terms hereof. To the extent that the original of this Warrant is an electronic original, this
Warrant, and any copies hereof, shall NOT be deemed to be a “certificated security” within the meaning of Section 8102(a)(4)
of the California Commercial Code. Physical possession of the original of this Warrant or any paper copy thereof shall confer no special
status to the bearer thereof.

 

6.8
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning
of any provision of this Warrant.

 

6.9
Business Days. “Business Day” means any day that is not a Saturday, Sunday or a day on which banks in California
are closed.

 

SECTION
7. GOVERNING LAW, VENUE AND JURY TRIAL WAIVER; JUDICIAL REFERENCE.

 

7.1
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California, without
giving effect to its principles regarding conflicts of law.

 

7.2
Jurisdiction and Venue. The Company and Holder each irrevocably and unconditionally submit to the exclusive jurisdiction of the
State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Warrant shall be deemed to operate
to preclude Holder from bringing suit or taking other legal action in any other jurisdiction to enforce a judgment or other court order
in favor of Holder. The Company expressly, irrevocably and unconditionally submits and consents in advance to such jurisdiction in any
action or suit commenced in any such court, and the Company hereby irrevocably and unconditionally waives, to the fullest extent permitted
by applicable law, any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non convenience
and hereby irrevocably and unconditionally consents to the granting of such legal or equitable relief as is deemed appropriate by such
court. The Company hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees
that service of such summons, complaints, and other process may be made by registered or certified mail addressed to the Company in accordance
with Section 6.5 of this Warrant and that service so made shall be deemed completed upon the earlier to occur of the Company’s
actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.

 

7.3
Jury Trial Waiver. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY AND HOLDER EACH WAIVES ITS RIGHT TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS WARRANT, THE LOAN AGREEMENT OR ANY CONTEMPLATED TRANSACTION,
INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES’ AGREEMENT
TO THIS WARRANT. EACH PARTY HERETO HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

    	8

    	 

    

 

7.4
Judicial Reference. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A
TRIAL BY JURY, if the waiver of the right to a trial by jury in Section 7.3 above is not enforceable, the parties hereto agree that
any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge,
mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court)
appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the
dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and
the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance
with the provisions of California Code of Civil Procedure Sections 638 through 645.1, inclusive. The private judge shall have the power,
among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and
permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating
thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has
not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County,
California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would
be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall
be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private
judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as
a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the
action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil
Procedure Section 644(a). Nothing in this Section 7.4 shall limit the right of any party at any time to exercise self-help remedies or
obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability
of this Section 7.4.

 

7.5
Survival. This Section 7 shall survive the termination of this Warrant.

 

[Signature
page follows]

 

    	9

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Warrant To Purchase Stock to be executed by their duly authorized representatives effective
as of the Issue Date written above.

 

	 	COMPANY:
	 	 
	 	FLUX
    POWER HOLDINGS, INC.
	 	 
	 	By:	/s/
    Chuck Scheiwe
	 	 	 
	 	Name:	Chuck Scheiwe
	 	 	 
	 	Title:	Chief Financial Officer
	 	 	 
	 	HOLDER:
	 	 
	 	SILICON
    VALLEY BANK
	 	 	 
	 	By:	/s/
    Jordan Kanis
	 	 	 
	 	Name:	Jordan Kanis

	 	 	 
	 	Title:	Managing Director

 

    	10Exhibit
10.1

 

SECOND
Amendment

to

Loan
and security agreement

 

This
Second Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 23rd day of June, 2022, by and between
(i) SILICON VALLEY BANK, a California corporation (“Bank”), (ii) FLUX POWER, INC., a California corporation
(“Flux”), and (iii) FLUX POWER HOLDINGS, INC., a Nevada corporation (“Holdings” and together
with Flux, individually and collectively, jointly and severally, “Borrower”).

 

Recitals

 

A.
Bank and Borrower have entered into that certain Loan and Security Agreement dated as of November 9, 2020, as amended by that certain
First Amendment to Loan and Security Agreement, dated as of October 29, 2021 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement”).

 

B.
Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.
Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth
herein.

 

D.
Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject
to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals
and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound,
the parties hereto agree as follows:

 

1.
Definitions.
Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.
Amendments to Loan Agreement.

 

2.1
Section 2.4 (Interest Rate). Clause (a) of Section 2.4 is deleted in its entirety and replaced with the following:

 

“(a)
Interest Rate. Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at a
floating per annum rate equal to the greater of either (A) Prime Rate plus three and one-half of one percent (3.50%) or (B) seven and
one-half of one percent (7.50%), which interest shall be payable monthly in accordance with Section 2.4(d) below.”

 

    	 

    	 

    

 

2.2
Section 6.9 (Financial Covenants). Section 6.9 is deleted in its entirety and replaced with the following:

 

“6.9
Financial Covenants.

 

	 	(a)	EBITDA.
    Maintain, measured as of the end of each month during the following periods, EBITDA, on a trailing six (6) month basis, of at least
    (loss not greater than) the following:

 

	Monthly
    Period Ending	 	Minimum
                                            EBITDA
 (loss
                                            not greater than)
	 
	Effective Date through June 30, 2022	 	$	(8,000,000.00	)
	July 1, 2022 through September 30, 2022	 	$	(5,500,000.00	)
	October 1, 2022 through the Revolving Line
    Maturity Date	 	$	(4,000,000.00	)

 

	 	(b)	Liquidity
    Ratio. Maintain at all times and to be certified as of the end of each month a Liquidity Ratio of not less than 1.25:1.00.”

 

2.3
Section 12.2 (Successors and Assigns). Section 12.2 is hereby amended by deleting the last sentence therein in its entirety and replacing
it with the following:

 

“Bank
has the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any
part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents (other
than the Warrant, as to which assignment, transfer and other such actions are governed by the terms thereof).”

 

2.4
Section 13 (Definitions). The following terms and their respective definitions set forth in Section 13.1 are deleted in their
entirety and replaced with the following:

 

“
“Borrowing Base” is (a) eighty percent (80%) of Eligible Accounts plus (b) the lesser of (i) fifty percent (50%) of
the value of Borrower’s Eligible Inventory (valued at the lower of cost or wholesale fair market value) or (ii) Two
Million Four Hundred Thousand Dollars ($2,400,000.00); (provided, that in any event amounts requested and/or outstanding
under this clause (b) shall at no time exceed thirty percent (30%) of the total amounts requested and/or outstanding hereunder), in each
case as determined by Bank from Borrower’s most recent Borrowing Base Report (and as may subsequently be updated by Bank based
upon information received by Bank including, without limitation, Accounts that are paid and/or billed following the date of the Borrowing
Base Report); provided, however, that Bank has the right to decrease the foregoing amount and/or percentages in its good
faith business judgment to mitigate the impact of events, conditions, contingencies, or risks which may adversely affect the Collateral
or its value.”

 

    	 

    	 

    

 

“
“Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other
documents related to this Agreement, the Warrant, the IP Agreement, any Bank Services Agreement, any subordination agreement, any note,
or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any Guarantor
with or for the benefit of Bank, all as amended, restated, or otherwise modified.”

 

“
“Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses,
the Unused Revolving Line Facility Fee, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan
Documents (other than the Warrant), or otherwise, including, without limitation, all obligations relating to Bank Services and interest
accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s
duties under the Loan Documents (other than the Warrant).”

 

“
“Revolving Line” is an aggregate principal amount not to exceed Eight Million Dollars ($8,000,000.00) outstanding
at any time.”

 

2.5
Section 13 (Definitions). The following new defined terms are hereby inserted alphabetically in Section 13.1:

 

“
“EBITDA” shall mean (a) Net Income, plus (b) to the extent deducted in the calculation of Net Income (i) Interest
Expense, (ii) depreciation expense and amortization expense, (iii) income tax expense, and (iv) non-cash stock compensation expense.

 

“
“Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance
with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension
and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all commissions, discounts, or
related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net
costs associated with interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation
(including leases of all types).”

 

“
“Liquidity” is, as of any date of determination, the sum of (a) the aggregate amount of unrestricted and unencumbered
cash held at such time by Borrower in Deposit Accounts maintained with Bank, plus (b) net billed accounts receivable; provided
that any net billed accounts receivable generated from Caterpillar and Crown V-Force shall excluded from this definition.

 

    	 

    	 

    

 

“
“Liquidity Ratio” is, as of any date of determination, the result of (a) Liquidity divided by (b) the aggregate outstanding
principle balance of the Advances.”

 

“
“Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any period as at any
date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as
a single accounting period..”

 

“
“Warrant” is the certain Warrant to Purchase Stock dated as of June 23, 2022 between Borrower and Bank, as amended,
modified, supplemented and/or restated from time to time.

 

2.6
Section 13 (Definitions). The following defined terms set forth in Section 13.1 are deleted in their entirety:

 

“
“Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries minus (a) any
amounts attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, Patents, Trademarks, Copyrights,
and research and development expenses except prepaid expenses, (iii) notes, accounts receivable and other obligations owing to Borrower
from its officers or other Affiliates, and (iv) reserves not already deducted from assets, minus (b) Total Liabilities, plus (c) Subordinated
Debt.”

 

“
“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s
consolidated balance sheet, including all Indebtedness.”

 

2.7
Exhibit B (Compliance Certificate). The Compliance Certificate appearing as Exhibit B to the Loan Agreement is deleted
in its entirety and replaced with the Compliance Certificate attached as Schedule 1 attached hereto.

 

3.
Limitation of Amendments.

 

3.1
The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written
and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document,
or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan
Document.

 

3.2
This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and
shall remain in full force and effect.

 

    	 

    	 

    

 

4.
Representations and Warranties.
To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

4.1
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true,
accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate
to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

 

4.2
Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement,
as amended by this Amendment;

 

4.3
The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not
been amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, have been duly authorized;

 

4.5
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or
authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

4.6
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording
or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except
as already has been obtained or made; and

 

4.7
This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower
in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium
or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

5.
Ratification of Intellectual Property Security
Agreement. Borrower hereby ratifies, confirms and
reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of the Effective
Date between Borrower and Bank, as supplemented by that certain First Supplement to Intellectual Property Security Agreement dated as
of October 29, 2021 (the “First Supplement”), and acknowledges, confirms and agrees that said Intellectual Property
Security Agreement, as supplemented, (a) contains an accurate and complete listing of all Intellectual Property Collateral (as defined
therein) and (b) shall remain in full force and effect.

 

    	 

    	 

    

 

6.
Updated Perfection Certificates.
Borrower has delivered updated Perfection Certificates dated as of the date hereof (collectively, the “Updated Perfection Certificates”),
which Updated Perfection Certificates shall supersede in all respects that certain Perfection Certificate dated as of October 29, 2021
delivered by Borrower to Bank. Borrower and Bank acknowledge and agree that all references in the Loan Agreement to the “Perfection
Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificates.

 

7.
Integration.
This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.
All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

8.
Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute
one and the same instrument. Each party hereto may execute this Amendment by electronic means and recognizes and accepts the use of electronic
signatures and records by any other party hereto in connection with the execution and storage hereof.

 

9.
Effectiveness.
As a condition precedent to the effectiveness of this Amendment, Bank shall have received the following documents prior to or concurrently
with this Amendment, each in form and substance reasonably satisfactory to Bank:

 

9.1
This Amendment duly executed on behalf of Borrower;

 

9.2
Duly executed signatures to the completed Borrowing Resolutions for Borrower;

 

9.3
A good standing certificate of Borrower, certified by the jurisdiction of incorporation of Borrower and each domestic jurisdiction
in which Borrower is qualified to do business, dated as of a date no earlier than thirty (30) days prior to the date hereof;

 

9.4
Certified copies, dated as of a recent date, of financing statement and other lien searches of Borrower, which shall be obtained
by Bank, accompanied by written evidence (including any Uniform Commercial Code termination statements) that the Liens revealed in any
such searched either (i) will be terminated prior to or in connection with this Amendment, or (ii) will constitute Permitted Liens;

 

9.5
Evidence reasonably satisfactory to Bank that the insurance policies and endorsements required pursuant to Section 6.7 of the Loan
Agreement are in full force and effect;

 

9.6
Borrower’s payment of (i) a fully earned, non-refundable amendment fee of Five Thousand Dollars ($5,000.00), and (ii) Bank’s
legal fees and expenses incurred in connection with this Amendment;

 

    	 

    	 

    

 

9.7
The Updated Perfection Certificates of Borrower, together with the duly executed signatures thereto;

 

9.8
The Warrant duly executed on behalf of Borrower;

 

9.9
The Acknowledgment and Reaffirmation of Subordination Agreement; and

 

9.10
Such other documents as Bank may reasonably request to effectuate the terms of this Amendment.

 

10.
Post-Closing Requirement.
Within thirty (30) days after the date hereof, Borrower shall deliver or cause to be delivered to Bank evidence reasonably satisfactory
to Bank that the insurance policies and endorsements required pursuant to Section 6.7 of the Loan Agreement are in full force and effect.
Failure to comply with the foregoing requirement within the time period noted shall constitute an Event of Default for which no grace
or cure period shall apply.

 

[Signature
page follows.]

 

    	 

    	 

    

 

In
Witness Whereof, the parties hereto have caused this
Amendment to be duly executed and delivered as of the date first written above.

 

	BANK	 	BORROWER
	 	 	 	 	 
	Silicon
    Valley Bank	 	FLUX
    POWER, INC.
	 	 	 	 	 
	By:
    	/s/
    Jordan Kanis	 	By:
    	/s/
    Chuck Scheiwe
	Name:
    	Jordan
                                            Kanis
	 	Name:
    	Chuck
                                            Scheiwe

	Title:
    	Managing
    Director	 	Title:
    	Chief
    Financial Officer
	 	 	 	 	 
	 	 	 	FLUX
    POWER HOLDINGS, INC.
	 	 	 	 	 
	 	 	 	By:
    	/s/
    Chuck Scheiwe
	 	 	 	Name:
    	Chuck
                                            Scheiwe

	 	 	 	Title:
    	Chief
    Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}]]