Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

Maximum Amount 003

 

 

Contract No.: 2018TD2003

 

Mortgagor (Party A): Ningbo Global
Technology Co., Ltd.

 

Address: No. 88, Qiushi Road, Wangchun
Industrial Park, Ningbo Postal Code: 315000

 

Legal Representative (Person in charge):
Zhixiang Lin

 

Fax: 88133820     
  Tel: 88133818

 

 

Mortgagee (Party B): Ningbo
Yinzhou Branch of China Construction Bank

 

Address: No. 500, Taikang Middle
Road, Yinzhou District, Ningbo

 

Post Code:

 

Person in charge: Lina Lai

 

Fax: 87370029       
Tel: 87370029

 

 

 

 

 

 

 

 

 

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Whereas
Party B continues to handle the following (1) (2) (3) (4) (5) credit business operations for Ningbo Global Technology Co.,
Ltd. (hereinafter referred to as the "Debtor"), and will sign (and/or have signed) the RMB loan contract, foreign exchange
loan contract, bank acceptance agreement, letter of credit issuance contract, letter of guarantee issuance contract, and/or other
legal documents with the debtor from September 21st, 2018 to September 17th, 2023 (hereinafter referred
to as "obligation determination period") (The above contracts, agreements and/or other legal documents signed during
the obligation determination period are referred to as the "master contract").

		(1)	Issue RMB/foreign currency loans;

		(2)	Accept commercial drafts;

		(3)	Open a letter of credit;

		(4)	Issue a letter of guarantee;

		(5)	Other credit business: including
                                         but not limited to import-export trade financing, international commercially balance
                                         transfer and cross-border funded risk participation.

 

Party A is willing
to provide the maximum mortgage guarantee for a number of debtor's debts under the master contract. According to relevant laws,
regulations and rules, both parties enter into this contract by consensus for observance and implementation.

 

Article 1 Mortgaged Property

		I.	Party A shall set the mortgage with
                                         the property listed in the "mortgaged property list" of this contract.

		II.	If a new ownership or other rights
                                         certificate is reissued for the mortgaged property, resulting that the "mortgaged
                                         property list" of this contract or the encumbrance (mortgage) certificate or mortgage
                                         document received by Party B is inconsistent with the above new certificate or the related
                                         documentation on registers of registration authorities, Party A shall not refuse to assume
                                         the guarantee liability on this ground.

		III.	Unless otherwise agreed by both parties,
                                         or otherwise stipulated by law, the newly added objects to the mortgaged property due
                                         to attaching, mixing, processing, altering, etc. shall also be considered as mortgaged
                                         guarantees for Party B's claims. Party A shall register necessary mortgaged guarantees
                                         as required by Party B.

		IV.	If the value of the mortgaged property
                                         has been or may be reduced, which affects the realization of Party B's rights, Party
                                         A shall provide new guarantees in accordance with Party B's request.

 

Article 2 Guarantee Scope and Maximum
Amount of the Obligation

		I.	The guarantee scope in this maximum
                                         mortgage covers the total debt under the master contract, including but not limited to
                                         the entire principal, interest (including compound interest and penalty), liquidated
                                         damages, compensation, other payments that the debtor should pay to Party B (including
                                         but not limited to the relevant handling fees, telecommunications charges, miscellaneous
                                         fees, and related bank fees that the beneficiary refuses to bear under the letter of
                                         credit, etc.), and expenses incurred by Party B in realizing claims and guarantees (including
                                         but not limited to the litigation fees, arbitration fees, property preservation fees,
                                         travel expenses, execution fees, evaluation fees, auction fees, notary fees, delivery
                                         fees, announcement fees, attorney fees, etc.).

The price with value-added
tax included should be applied to the guarantee scope stipulated in this contract.

		II.	The maximum amount of guarantee liability
                                         under this maximum mortgage is (currency) RMB (amount) One hundred and twenty-nine
                                         million yuan. If Party A fulfills the guarantee obligation in accordance with this
                                         contract, the maximum amount shall be deducted by the repaid amount accordingly.

		III.	The loan, advances, interest, expenses
                                         or any other claims of Party B under the master contract whose actual formation time
                                         exceeds the obligation determination period are still within the guarantee scope of this
                                         maximum mortgage. The expiration date of the obligation fulfillment period under the
                                         master contract is not subject to the expiration date of the obligation determination
                                         period.

 

Article 3 Registration of the Mortgaged
Property

Both parties shall
go to appropriate registration authorities and register mortgaged property within 20 working days after the signing of
this contract. Party A shall hand over the mortgaged property encumbrance certificate, original mortgage registration document
and other certificates to Party B on the day when mortgaged property registration is completed.

 

 

 

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Article 4 Change of the Master Contract

		I.	Party A agrees that Party B need not
                                         to notify Party A when it signs the master contract with the debtor or makes any changes
                                         to the master contract (including but not limited to extending the obligation fulfillment
                                         period or increasing the principal), and that Party A shall still assume the guarantee
                                         responsibility within the maximum amount stipulated in this contract and the guarantee
                                         scope.

		II.	Change of the Parties

Party A's guarantee
liability shall not be reduced due to any of the following conditions:

		(1)	Party B or the debtor undergoes
                                         restructuring, combining, merging, separating, increasing/decreasing capital, jointing
                                         venture, jointing operation, renaming, etc.;

		(2)	Party B entrusts a third party
                                         to fulfill its obligations under the master contract;

		III.	As the creditor's rights under the
                                         master contract are transferred to a third party, the guarantee under this contract will
                                         be transferred. Party A shall assist Party B and the third party with the mortgage change
                                         registration procedure required by law.

		IV.	If the transfer of the debts or creditor's
                                         rights under the master contract is ineffective, invalid, canceled or rescinded, Party
                                         A still assumes the guarantee liability for Party B in accordance with this contract.

 

Article 5 Occupation and Custody of
the Mortgaged Property

		I.	Party A shall properly possess, keep
                                         and maintain the mortgaged property; use the mortgaged property reasonably; keep the
                                         mortgaged property in good condition; and pay the taxes and fees related to the mortgaged
                                         property on time. Party B is authorized to inspect the mortgaged property, and may ask
                                         Party A to submit the mortgaged property's original rights certificates to Party B for
                                         custody.

		II.	If Party A entrusts the possession,
                                         custody and use of the mortgaged property to a third party, or agrees such possession,
                                         custody and use, it shall inform the third party of the existence of Party B's claims
                                         to the mortgage property, and require the third party to keep the mortgaged property
                                         in good condition, accept Party B's inspection of the mortgaged property and respect
                                         Party B's realization of the mortgage. Party A will not be exempt from the obligations
                                         under the preceding paragraphs and shall be responsible for the actions of the third
                                         party.

		III.	If the mortgaged property causes any
                                         personal or property damage, Party A shall be liable for compensation solely. If Party
                                         B is liable for the claimed indemnity, or advances any compensation for Party A, Party
                                         B has the right to recover the money from Party A.

 

Article 6 Insurance of the Mortgaged
Property

		I.	Unless otherwise agreed by both parties,
                                         Party A shall insure the mortgage property in accordance with relevant laws and the insurance
                                         type, insurance period and insurance amount designated by Party B. The insurer should
                                         have a statutory qualification and good reputation.

		II.	The content of the insurance policy
                                         shall meet the requirements of Party B and shall not contain restrictive conditions that
                                         damage the rights and interests of Party B. The insurance policy shall specifically note
                                         that: Party B is the priority recipient of the insurance compensation (the first beneficiary);
                                         the change of the insurance policy shall be approved by Party B with written consent;
                                         in the event of an insurance accident, the insurer shall pay the insurance compensation
                                         to the account designated by Party B directly. If the mortgaged property is insured but
                                         the insurance policy does not indicate the above, the insurance policy shall be noted
                                         or changed accordingly.

		III.	Party A shall ensure that the insurance
                                         is continuously valid and shall not cause the insurance to be interrupted, revoked or
                                         invalidated, or cause the insurer to reduce the compensation liability, or change the
                                         insurance policy without the approval of Party B for any reason. If the obligations guaranteed
                                         by Party A are not fully fulfilled when the insurance period expires, Party A shall renew
                                         the insurance and extend the insurance period accordingly.

		IV.	Party A shall deliver the original
                                         insurance policy of the mortgaged property to Party B within 5 working days since
                                         the date of the conclusion of this contract (If the mortgaged property insurance is renewed,
                                         it will be the date of renewal), and leave the necessary documents about the insurance
                                         claim or insurance benefit transfer to Party B.

		V.	Party B shall have the right to dispose
                                         the insurance compensation obtained on the mortgaged property in the following ways,
                                         and Party A shall cooperate in such relevant procedures:

		(1)	Renovate the mortgaged property
                                         to restore the value of such property under the consent of Party B;

		(2)	Make liquidation or early repayment
                                         of the debt principal and interest and related expenses under the Master Contract;

		(3)	Provide pledge guarantee for the
                                         debt under the Master Contract;

		(4)	Be freely disposed by Party A if
                                         Party A provides a new guarantee that satisfies the requirements of Party B.

 

 

 

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Article 7 Limits of Disposition of
Mortgaged Property by Party A

		I.	Without the written consent of Party
                                         B, Party A shall not dispose the mortgaged property in any way, including but not limited
                                         to waiver, rent out (including the subsequent lease after the original lease contract
                                         becomes due), donate, transfer, financially contribute, re-guarantee, migrate, change
                                         to public use, add or rebuild and divide with other items.

		II.	With the written consent of Party
                                         B, all prices and other amount shall be deposited into the account designated by Party
                                         B. Party B shall have the right to choose any of the methods stipulated in clause V (2)
                                         to (4) of Article 6 herein to dispose the foresaid amount, and Party A shall cooperate
                                         in such relevant procedures.

 

Article 8 Third party Obstruction

		I.	If the mortgaged property is levied,
                                         requisitioned, dismantled, confiscated, or recovered without compensation by the country,
                                         or if such mortgaged property is seized, frozen, detained, supervised, retained, auctioned,
                                         forcibly occupied, damaged or otherwise disposed by the third party, Party A shall notify
                                         Party B immediately, and take measures timely to stop, eliminate or remedy such situation,
                                         preventing further loss; and under Party B's request, Party A shall provide a new guarantee
                                         that satisfies the requirements of Party B.

		II.	The remaining portion of the mortgaged
                                         property in the case of the preceding clause is still used as a mortgaged guarantee for
                                         Party B's claims. The indemnities or compensation obtained by Party A for the above reasons
                                         shall be deposited into the account designated by Party B. Party B shall have the right
                                         to choose any of the methods stipulated in clause V (1) to (4) of Article 6 herein to
                                         dispose the foresaid amount, and Party A shall cooperate in such relevant procedures.

 

Article 9 Realization of Mortgage Rights

		I.	If the debtor fails to perform the
                                         maturing debt under the Master Contract or the debts declared to be due in advance, or
                                         violates other provisions of the Master Contract, Party B shall have the right to dispose
                                         the mortgaged property.

		II.	The value of the mortgaged property
                                         stated in the List of Mortgage Property hereunder or otherwise agreed by the parties
                                         (hereinafter referred to as "Tentative Value"), whether or not recorded in
                                         the register of the registration authority, shall not represent the ultimate value of
                                         the mortgaged property. The ultimate value is the net amount of the proceeds arising
                                         out of Party B's disposal of the mortgaged property after deducting various taxes and
                                         fees.

If the mortgaged property is
used to compensate Party B's claims, the above tentative value shall not be the legal ground for such compensation, and the then
value of the mortgaged property shall be evaluated and determined fairly by both parties or by law.

		III.	After paying the expenses caused
                                         during the process of the sale or auction (including but not limited to custodial fees,
                                         evaluation fees, auction fees, transfer fees, taxes, transfer fees for state-owned land
                                         use rights, etc.), the prices Party B obtained from the disposal of the mortgaged property
                                         shall be used to pay off the debt under the Master Contract firstly, and the remaining
                                         prices shall be refunded to Party A.

		IV.	If Party A acts as the debtor, Party
                                         B may apply for enforcement of Party A's property other than the mortgaged property,
                                         without the waiver of the mortgage or the prior disposition of the mortgaged property
                                         as the prerequisite.

		V.	Shall Party A never obstruct Party
                                         B from realizing the mortgage in any way (including acts or omissions).

		VI.	No matter whether Party B has other
                                         guarantees for the claims under the Master Contract (including but not limited to guarantees,
                                         mortgages, pledges, letters of guarantee, standby letters of credit, etc.), no matter
                                         when the other guarantees above are established, whether they are valid, and whether
                                         Party B makes claims to other guarantors, and no matter whether or not a third party
                                         agrees to assume the whole or part of the debt under the Master Contract, or whether
                                         or not other guarantees are provided by the debtor itself, Party A's guarantee liability
                                         herein shall not be reduced or exempted, and Party B may directly request Party A to
                                         assume the guarantee responsibility within the scope of its guarantee in accordance with
                                         this contract, against which Party A shall not raise any objection.

		VII.	If the maximum amount of guarantee
                                         liability agreed herein is lower than the balance of claims actually incurred under the
                                         Master Contract, and the claims under the Master Contract is not fully liquidated after
                                         Party A assumes the guarantee liability, Party A makes commitment that it claims the
                                         right of (including pre-exercise) subrogation or recourse to the debtor or other guarantor,
                                         shall not cause any harm to Party B's interests, and agree that the liquidation of the
                                         debt under the Master Contract takes precedence over the realization of the subrogation
                                         or recourse right of Party A.

Specifically, before
Party B's claims are not fully liquidated,

		(1)	Party A agrees not to claim
                                         the right of subrogation or recourse to the debtor or other guarantors; if Party A has
                                         realized the foresaid rights for any reason, the proceeds shall be used preferentially
                                         to liquidate the outstanding claims payable to Party B;

		(2)	If the debt under the Master
                                         Contract is secured by the property, Party A agrees not to claim the securities or the
                                         prices arising from the disposal on the grounds of exercising the subrogation right or
                                         for any other reason, and the securities and the proceeds above shall be used preferentially
                                         to liquidate the outstanding claims payable to Party B;

		(3)	If the debtor or other guarantors
                                         provide Party A with a counter guarantee, the proceeds obtained by Party A based on such
                                         counter guarantee shall be used preferentially to liquidate the outstanding claims payable
                                         to Party B.

 

 

 

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		VIII.	If the Master Contract is not established,
                                         takes no effect, invalid, partially invalid, or revoked and released, and Party A is
                                         not the debtor, then Party A shall, within the scope of the guarantees stipulated herein,
                                         be jointly and severally liable with the debtor for the debtor's debts due to the return
                                         of property or compensation for losses.

		IX.	Party A has fully recognized the interest
                                         rate risk. If Party B adjusts the interest rate level, interest-bearing or settlement
                                         in accordance with the agreement under the Master Contract or the change of the national
                                         interest rate policy, resulting in the increase of interest, penalty interest and compound
                                         interest of the debts, such additional portion shall be borne by Party A under the guarantee
                                         liability.

		X.	If in addition to the debt under the
                                         Master Contract, the debtor has other liabilities for Party B, Party B shall have the
                                         right to collect from the account opened by the debtor in the China Construction Bank
                                         system the amount in RMB or other currencies to preferentially liquidate any maturing
                                         debt, and Party A's guarantee liability shall not be reduced or exempted hereby.

 

Article 10 Liability
for Breach of Contract

		I.	Liability for breach of contract by
                                         Party A

		(1)	If Party A violates any provision
                                         herein, or there is any false, error or omission in the representation and guarantee
                                         herein, Party B shall have the right to take one or more of the following measures:

1.1 Request Party A
to correct the breach of contract within a time limit;

1.2 Request Party A
to provide new guarantees;

1.3 Request Party A
to compensate for the loss;

1.4 Dispose the
mortgaged property;

1.5 Other remedies
permitted by law.

		(2)	Party B shall have the right
                                         to choose any of the methods stipulated in clause V
                                         (2) to (4) of Article 6 herein to dispose the proceeds arising from the disposal
                                         of the mortgaged property, and Party A shall cooperate in such relevant procedures.

		(3)	If it is due to Party A that
                                         the mortgage is not effectively established, or the value of the mortgaged property is
                                         reduced, or Party B fails to realize the mortgage right in a timely or fully manner,
                                         and Party A is not the debtor, Party B shall have the right to request Party A, within
                                         the scope of the guarantees stipulated herein, to assume joint and several liability
                                         with the debtor for the secured debt.

		II.	Liability for breach of contract by
                                         Party B:

If Party B, due
to its own fault, loses the certificate of title for mortgaged property submitted by Party A, or if after liquidation of the debt
under the Master Contract, Party B fails to return the certificate of title for mortgaged property in a timely manner, or fails
to legally assist in the mortgage registration and cancellation procedures under Party A's request, Party A shall have the right
to take one or more of the following measures:

		(1)	Request Party B to bear the
                                         reissue fee for the certificate of title for mortgaged property;

		(2)	Request Party B to return the
                                         certificate of title for mortgaged property within a time limit, or assist Party A to
                                         cancel the registration of the mortgaged property.

 

Article 11 Miscellaneous 

		I.	Liability of the expense

		(1)	The party A shall be responsible
                                         for any expense incurred in violation of any provision herein, including but not limited
                                         to litigation fees, arbitration fees, property preservation fees, travel expenses, execution
                                         fees, evaluation fees, auction fees, notary fees, delivery fees, announcement fees, attorney
                                         fees, etc. incurred by the party B due to the party A breach of contract;

		(2)	For other expenses, both parties
                                         agree as follows: (Leave this column blank)

II.     
Collection of payables

In respect of all
the payables of Party A hereunder, Party B shall be entitled to collect from the account opened by Party A in China Construction
Bank System the corresponding amount in RMB or other currencies, without notice to Party A in advance. If foreign exchange settlement
and sale or foreign exchange trading is requested, Party A is obliged to cooperate with Party B in such procedures, and the exchange
rate risk is borne by Party A.

 

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		III.	Use of Party A's information

Party A agrees that
Party B may inquire Party A's credit status in the credit database established upon the approval of the People's Bank of China
or the administrative department of credit investigation, the relevant departments or units, and that Party B may submit Party
A's information to the credit database established upon the approval of the People's Bank of China or the administrative department
of credit investigation. Party A agrees that Party B may use reasonably and disclose Party A's information according to business
needs.

		IV.	Announcement of urgent collection

In the event that
Party A violates the contract, Party B has the right to notify the relevant department or unit, and to make an announcement of
urgent collection via the news media.

		V.	Effectiveness of evidence recorded
                                         by Party B

Unless there is
reliable and definite opposite evidence, all of the following under the Master Contract: the internal accounting records documented
by Party B such as principal, interest, expenses and repayment records; the documents and vouchers produced or retained by Party
B according to law and facts which occur in the course of business such as withdrawal, repayment, interest payment by the debtor;
and the records and vouchers of Party B's collection of overdue. Party A shall not raise an objection solely because the foresaid
records, notes, documents or vouchers are produced or retained only by Party B.

		VI.	Rights reserved

Party B's rights
herein shall not affect or exclude any rights it enjoys under laws, regulations and other contracts. Any tolerance, grace, concession
or delay in exercising any of the rights hereunder for breach of contract or delay shall not be deemed a waiver of the rights
and interests hereunder, or the license or recognition of any breach of this contract, nor affect, prevent or obstruct the continued
exercise of this right or the exercise of any other rights, and thus shall not cause Party B to assume obligations and responsibilities
to Party A.

Even if Party B
fails to exercise or delays the exercise of any right, or fails to exhaust any of the remedies under the Master Contract, Party
A's guarantee liability hereunder shall not be reduced or exempted, provided that if Party B reduces or exempts the debt under
the Master Contract, Party A's guarantee liability hereunder shall be reduced or exempted accordingly.

		VII.	If Party A is separated, dissolved,
                                         or involved in the bankruptcy process, its business registration is revoked or canceled,
                                         or its business license is revoked, if the mortgaged property is damaged, lost, infringed,
                                         or deprived due to natural factors or acts of a third party, or if there's dispute over
                                         the ownership of the mortgaged property or the certificate of title is canceled, Party
                                         B shall be notified promptly.

		VIII.	Dissolution or bankrupt of the debtor

Once Party A knows
the debtor enters into the dissolution or bankruptcy process, Party A shall notify Party B promptly to declare the creditor's
rights, and meanwhile participate in the dissolution or bankruptcy process in a timely manner, and exercise the recourse right
in advance. If Party A knows or should know that the debtor has entered into the dissolution or bankruptcy process, but fails
to promptly exercise the right of recovery in advance, the loss incurred shall be borne by Party A.

Notwithstanding
the provisions in clause II of Article 6, if in the debtor's bankruptcy process, Party B and the debtor reach a dispute settlement
or agree to reorganize plans, Party B's rights hereunder shall not be harmed by such dispute settlement or such reorganization,
and Party A's guarantee liability shall not be reduced or exempted. Never shall Party A challenge Party B's claims in accordance
with the conditions stated in the dispute settlement or the reorganization of plans. Party A shall, under Party B's request, assume
the guarantee liability for the debt that is not liquidated due to Party B concessions to the debtor in the dispute settlement
or the reorganized plans.

		IX.	Dissolution or bankrupt of Party
                                         A

If Party A is dissolved
or bankrupted, Party B shall have the right to participate in Party A's liquidation or bankruptcy process and declare its rights
even if Party B's claim has not expired under the Master Contract.

		X.	If Party A's mailing address or contact
                                         information changes, it shall notify Party B promptly in writing, and all losses incurred
                                         from failure to notify in time shall be borne by Party A.

		XI.	Other provisions

If
the mortgage registration items changes, and the registration shall be changed according to law, Party A shall, upon Party B's
request, perform the change registration procedures together with Party B, and relevant expenses shall be borne by the relevant
party as stated in clause I of Article 11 hereunder.

		XII.	Dispute settlement

If any dispute occurs
during the fulfillment of this contract, the parties can make settlement through negotiation. If the negotiation fails, such dispute
shall be settled under the following (1) method. During the litigation or arbitration, any other provisions uninvolved
shall continue to be fulfilled.

		(1)	File a lawsuit with the people's
                                         court at the location of Party B.

		(2)	Submit to (Leave this column
                                         blank) Arbitration Commission (place of arbitration Leave this column blank).
                                         Arbitration shall be conducted in accordance with the arbitration rules in force and
                                         effect at the time of applying for such arbitration. The awards shall be final and binding
                                         on the parties.

 

 

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		XIII.	Effectiveness of contract

This contract shall
take effect since the legal representatives (the person in charge) or their authorized agents of Party A and Party B sign or affix
the official seal.

		XIV.	The contract is made in triplicate.

 

Article 12 List of Mortgaged Property

The list of mortgaged
property hereunder is as follows:

 

Mortgage List

	Name of mortgaged property	Title
    certificate and other relevant certificate No.	Location	Area
    or quantity	Values
    of mortgaged property (10,000 RMB)	The
    amount of other debts mortgaged by it (10,000 RMB)	Notes
	House
    properties	Yong
    Real Estate Certificate Yinzhou District No. 201028196, Yong Real Estate Certificate Yinzhou District No. 201028200	No.
    88, Qiushi Road, Gulin Town, Yinzhou District, Ningbo city	42820.94m2	7628.74	0	 
	Land	Yong
    State-owned Land Certificate (2013) No. 18-06785	No.
    88, Qiushi Road, Gulin Town, Yinzhou District, Ningbo city	28363.90m2	5329.90	0	 

 

Article 13 Statement and Commitment
of Party A 

		I.	Party A clearly knows Party B's business
                                         scope and authority.

		II.	Party A has read all the provisions
                                         of this contract and the Master Contract. Upon Party A's request, Party B has made corresponding
                                         provision explanations for this contract and the Master Contract. Party A has totally
                                         known and understood the meaning of the provision under this contract and the Master
                                         Contract, and the corresponding legal consequences.

		III.	Party A has the legal qualifications
                                         as a guarantor. Party A's guarantees under this contract are in compliance with laws,
                                         administrative regulations, rules and regulations of Party A or internal organization
                                         documents, and have obtained approval from the company's internal authority and/or the
                                         state's authority. All liabilities arising from Party A's no right to sign this contract
                                         shall be borne by Party A solely, including but not limited to the full compensation
                                         for the losses Party B suffered hereby.

		IV.	Party A confirms that it has fully
                                         understood information such as the debtor's assets, debts, operations, credit, and reputation,
                                         its qualification and authority as a subject to sign the Master Contract, and all the
                                         contents within the Master Contract.

		V.	Party A has the right to take ownership
                                         or dispose of the mortgaged property according to law. The mortgaged property is not
                                         a public welfare facility or a property that is prohibited from circulation and transfer,
                                         and there is no dispute over its ownership.

		VI.	There is no other co-owner on the
                                         mortgaged property, or although there are other co-owners, the mortgage guarantee has
                                         obtained the written consent of the other co-owners.

		VII.	There is no defect or burden on the
                                         mortgaged property that is not notified to Party B in writing, including but not limited
                                         to the mortgage property being circulation restricted, seized, detained, supervised,
                                         leased, or retained; the mortgaged property being in arrears with purchase price, maintenance
                                         cost, construction project price, national tax, land use right transfer fee, or indemnities;
                                         or the mortgaged property having already been guaranteed for a third party.

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		VIII.	All papers and information provided
                                         by Party A to Party B in relation to the mortgaged property is true, legal, accurate
                                         and complete.

		IX.	Party A's provision of this mortgage
                                         guarantee does not harm the legitimate interests of any third person, and does not violate
                                         Party A's statutory and agreed obligations.

		X.	If Party A or the debtor fails to comply
                                         with laws, regulations or rules concerning environmental and social risk management,
                                         or may pose harm and related risks in construction, production and business activities
                                         to environment and society (including but not limited to environmental and social issues
                                         related to energy consumption, pollution, land, health, safety, relocation and resettlement,
                                         ecological protection, energy conservation and emission reduction, climate change, etc.),
                                         Party B has the right to exercise the guarantees hereunder in advance, and adopt other
                                         remedies as agreed herein or as permitted by law.

 

 

 

 

Party A (company seal):

Legal Representative (Person in Charge)

or authorized agent (signature): Shu-Hua
Yeh

Date:September
21st, 2018

 

Party B (company seal):

Person in Charge or authorized agent (signature):
Jianhan Chen

Date: September
21st, 2018Blueprint

EXHIBIT
10.20

AMENDMENT TO THE

FLUX POWER HOLDINGS, INC.

2014 EQUITY INCENTIVE PLAN

(Effective as of October 26, 2017)

 

WHEREAS, Flux Power Holdings, Inc.
(“Flux”) established the Flux Power Holdings, Inc. 2014
Equity Incentive Plan (the “Plan”), originally
effective as of November 26, 2014, under which Flux is authorized
to grant equity-based incentive awards to its employees, directors,
officers and consultants in the service of Flux or any subsidiary
corporation;

 

WHEREAS, pursuant to Section 4.1 of the
Plan, 10,000,000 shares of common stock were reserved and available
for grant and issuance pursuant to the Plan (the “Original
Maximum Number”);

 

WHEREAS, on August 18, 2017, the
Corporation effected a 1:10 reverse stock split, which in effect
proportionately decreased the Original Maximum Number under the
Plan to 1,000,000 shares of common stock;

 

WHEREAS, Section 23 of the Plan provides
that the Board of Directors of Flux (“Board”) may amend
the Plan to increase the Plan’s share limitation with the
approval of the stockholders;

 

WHEREAS, on October 26, 2017, the Board
approved the amendment to the Plan to (i) increase the maximum
number of available shares under the Plan to 10,000,000 shares, and
(ii) in connection with Section 162(m) of the Internal Revenue
Code, increase the maximum number of shares with respect to one or
more options that may be granted during any one fiscal year under
the Plan to any one participant to 1,000,000 (collectively the
“Plan Amendments”); and

 

WHEREAS, on August 2, 2018, a notice to
Flux’s stockholders was provided informing them that a
controlling stockholder holding a majority of Flux’s
outstanding voting capital stock approved the Plan Amendments on
July 23, 2018.

 

NOW, THEREFORE, effective October 26,
2017, the Plan is amended as set forth below:

 

1.           Section
4.1 of the Plan is hereby deleted and replaced in its entirety with
the following:

 

“4.1.           Number
of Shares Available. Subject to Section 4.2, the total
number of Shares reserved and available for grant and issuance
pursuant to this Plan will be ten million (10,000,000) (the
“Maximum
Number”). Not more than the Maximum Number of shares
of Stock shall be granted in the form of Incentive Stock Options.
Shares issued under the Plan will be drawn from authorized and
unissued shares or shares now held or subsequently acquired by the
Company.”

 

2.           Section
4.3 of the Plan is hereby deleted and replaced in its entirety with
the following:

 

“4.3.           Limitations
on Awards. Notwithstanding any provision in the Plan to the
contrary (but subject to adjustment as provided in
Section 4.2), the Maximum Number of Shares of Stock with
respect to one or more Options that may be granted during any one
fiscal year under the Plan to any one Participant will be one
million (1,000,000). Determinations under the preceding sentence
will be made in a manner that is consistent with Section 162(m) of
the Code and regulations promulgated thereunder. The provisions of
this Section will not apply in any circumstance with respect to
which the Administrator determines that compliance with Section
162(m) of the Code is not necessary.”

 

3.           

Except as set forth
above, the Plan shall continue to read in its current
state.

 

	
 

	

Flux
Power Holdings, Inc.

 

/s/
Ronald Dutt

	
 

	

Ronald
Dutt, Chief Executive Officer, President, Interim Chief Financial
Officer & Director

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