Document:

Exhibit
10.2

 

THIRD
AMENDMENT TO SECURED PROMISSORY NOTE 

 

THIS
THIRD AMENDMENT TO SECURED PROMISSORY NOTE (the “Third Amendment”), dated as of June 30, 2020, is entered into
by Flux Power, Inc., a California corporation (“Borrower”), and ________________ (“Holder”) (Holder and
Borrower each a “Party” and, collectively, the “Parties”).

 

WHEREAS,
in connection with the Second Amended and Restated Credit Facility Agreement, dated October 10, 2019, by and between the Borrower,
Holder, and certain other lenders (the “Credit Facility Agreement”), Borrower and Holder are parties to that certain
Secured Promissory Note, dated as of March 28, 2019,and as amended on October 10, 2019, and on December 31, 2019, (the “Promissory
Note”);

 

WHEREAS,
the maturity date for the Promissory Note is June 30, 2020; and

 

WHEREAS,
the Parties desire to amend the Promissory Note to extend the maturity date from “June 30, 2020” to “December
31, 2020” pursuant to the terms and condition of this Third Amendment.

 

Capitalized
terms used but not defined herein shall have the meaning given to them in the Promissory Note.

 

NOW,
THEREFORE, in consideration of the foregoing premises, the mutual agreements set forth below, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

1.
Amendment to the Promissory Note. It is hereby agreed and understood that the Promissory Note shall be amended as follows:

 

1.2
Maturity Date. Paragraph 2(b) of the Promissory Note is hereby deleted in its entirety and shall, be amended to read in
its entirety as follows:

 

“(b)
Maturity Date. Except as otherwise provided herein, the entire Principal Amount of this Note, together with all accrued
but unpaid interest payable thereon, shall be due and payable in full on the earlier of: (i) December 31, 2020, unless extended
pursuant to the terms of this Note (the “Maturity Date”) or (ii) when such amounts are declared due and payable by
Holder upon or after the occurrence of an Event of Default (as defined below).

 

2.
Accrued Interest to Date. As additional consideration, the Parties agree that all accrued and unpaid interest on the Principal
Amount as of June 30, 2020 shall be converted into the Principal Amount (“Additional Principal Amount”) and shall
earn interest per the Promissory Note.

 

3.
Miscellaneous.

 

3.1
Except as expressly amended and modified by this Third Amendment, the Promissory Note is and shall continue to be in full force
and effect in accordance with the terms thereof.

 

3.2
This Third Amendment may be executed by the parties hereto in counterparts, and all of such counterparts taken together shall
be deemed to constitute one and the same instrument.

 

3.3
This Third Amendment shall be construed in accordance and governed by the internal laws of the state of California.

 

3.4
The headings contained in this Third Amendment are for ease of reference only and shall not be considered in construing this Third
Amendment.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	1

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Third Amendment to the Secured Promissory Note to be duly executed as
of the day and year first written above.

 

	 	BORROWER

                                                                      

                                                                     Flux Power, Inc.,

                                                                     a California corporation

	 	 	 
	 	By:	/s/ Ronald Dutt
	 	 	Ronald
    Dutt, Chief Executive Officer
	 	 	 
	 	HOLDER

 

[Name of Holder]

 

	 	 	
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	Acknowledged:	 
	 	 
	Flux
    Power Holdings, Inc.,	 
	a
    Nevada corporation	 
	 	 	 
	By:	 	 
	 	Ronald
    Dutt, Chief Executive Office	 

 

    	2Exhibit
10.3

 

SEVENTH
AMENDMENT TO THE

UNSECURED
PROMISSORY NOTE

 

THIS
SEVENTH AMENDMENT TO THE UNSECURED PROMISSORY NOTE (this “Seventh Amendment”), effective as of June 30, 2020, is by
and between Flux Power, Inc., a California corporation (“Borrower”) and Cleveland Capital, L.P. (“Holder”).
Holder and Borrower, each a “Party” and collectively, the “Parties”.

 

RECITALS

 

WHEREAS,
the Borrower, Flux Power Holdings, Inc., and the Holder entered into that certain Loan Agreement dated July 3, 2019 (the “Loan
Agreement”), pursuant to which the Holder provided a loan to the Company in the amount of One Million Dollar ($1,000,000)
(“Loan”) pursuant to the terms and conditions of the Loan Agreement. In connection with the Loan, the Borrower issued
a certain Unsecured Promissory Note dated July 3, 2019 (“Original Note”), as amended pursuant to the First Amendment
to the Unsecured Promissory Note dated September 1, 2019 (“First Amendment”), the Second Amendment to the Unsecured
Promissory Note dated December 3, 2019 (“Second Amendment”), the Third Amendment to the Unsecured Promissory Note
dated December 31, 2019 ( the “Third Amendment”), the Fourth Amendment to the Unsecured Promissory Note dated March
31, 2020 (the “Fourth Amendment”), the Fifth Amendment to the Unsecured Promissory Note dated April 30, 2020 (the
“Fifth Amendment”), and the Sixth Amendment to the Unsecured Promissory Note dated May 29, 2020 (the “Sixth
Amendment and together with the Original Note, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment,
and the Fifth Amendment, the “Amended Note”).

 

WHEREAS,
the maturity date for the Loan under the Amended Note is June 30, 2020.

 

WHEREAS,
the Parties desire to amend the Amended Note to change the maturity date from “June 30, 2020” to “July 31, 2020.”

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing premises, the mutual agreements set forth below, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Maturity
Date. Section 1(b) of the Amended Note is hereby deleted in its entirety and shall, be amended to read in its entirety as
follows:

 

“(b)“Maturity
Date. Except as otherwise provided herein, the entire Principal Amount of this Note, together with all accrued but unpaid
interest payable thereon, shall be due and payable in full on the earlier of: (i) July 31, 2020 (the “Maturity Date”)
or (ii) the occurrence of an Event of Default (as defined below); provided, however, the Borrower shall make periodic
payments of interest and principal within ten (10) days upon receipt of cash from accounts receivables identified in Schedule
A (“Receivables”), an amount equal to 100% of cash received from such Receivables. Such payments shall
be applied first to the payment of unpaid interest and second to reduce the outstanding Principal amount.”

 

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2. Accrued
Interest to Date. As additional consideration, the Parties agreed that all accrued and unpaid interest on the Principal Amount
as of June 30, 2020 shall be converted into the Principal Amount and shall earn interest per the Amended Note.

 

3. Miscellaneous.

 

3.1 Except
as expressly amended and modified by this Seventh Amendment, the Amended Note is and shall continue to be in full force and effect
in accordance with the terms thereof.

 

3.2 This
Seventh Amendment may be executed by the parties hereto in counterparts, and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

 

3.3 The
Seventh Amendment shall be construed in accordance and governed by the internal laws of the State of California.

 

3.4 The
headings contained in this Seventh Amendment are for ease of reference only and shall not be considered in construing this Seventh
Amendment.

 

IN
WITNESS WHEREOF, the Parties have caused this Seventh Amendment to be executed by its authorized representative as of the
date set forth above.

 

	 	BORROWER:
	 	 
	 	Flux
    Power, Inc.,
	 	a
    California corporation
	 	 
	 	/s/
    Ronald F. Dutt
	 	Ronald
    F. Dutt, President and Chief Executive Officer
	 	 
	 	HOLDER:
	 	 
	 	Cleveland
    Capital, L.P.
	 	 
	 	By:	/s/
    Wade Massad
	 	 	Wade
    Massad, Co-Managing Member, GP

 

    	2Exhibit

EXHIBIT 10.1

EXECUTION COPY

OMNIBUS AMENDMENT NO. 6

This OMNIBUS AMENDMENT NO. 6, dated as of May 1, 2020 (this “Amendment”), is entered into by and among COFINA FUNDING, LLC, a Delaware limited liability company, as seller (the “Seller”), CHS INC. (“CHS”), a Minnesota corporation, as Servicer (in such capacity, the “Servicer”) and as an Originator, CHS CAPITAL, LLC, as an Originator (together with CHS, the “Originators”), PNC BANK, NATIONAL ASSOCIATION, as an Alternate Purchaser (in such capacity, the “PNC Committed Purchaser”) and as a Purchaser Agent (in such capacity, the “PNC Purchaser Agent”) and each of the other CONDUIT PURCHASERS, COMMITTED PURCHASERS and PURCHASER AGENTS set forth on the signature pages hereto, and MUFG BANK, LTD. F/K/A THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH (“MUFG”), as administrative agent (in such capacity, the “Administrative Agent”) and is (i) the fifth amendment to the RPA (as defined below) and (ii) the fourth amendment to the Sale Agreement (as defined below). 

RECITALS

A.WHEREAS, the Seller, the Servicer, CHS, the Purchasers, the Purchaser Agents and the Administrative Agent have entered into that certain Amended and Restated Receivables Purchase Agreement, dated as of July 18, 2017 (as amended by that certain First Amendment to Amended and Restated Receivables Purchase Agreement dated as of June 28, 2018, as amended by that certain Second Amendment to Amended and Restated Receivables Purchase Agreement dated as of August 20, 2018, as amended by that certain Omnibus Amendment No. 3, dated as of September 4, 2018, as amended by that certain Fourth Amendment and Limited Waiver to Amended and Restated Receivables Purchase Agreement, dated as of September 21, 2018, as amended by that certain Omnibus Amendment No. 5 dated as of June 27, 2019 and as further amended, restated, supplemented or otherwise modified through the date hereof, the “RPA”); and

B.WHEREAS, pursuant to and in accordance with Section 13.1 of the RPA, the Seller, the Servicer, the Purchasers, the Purchaser Agents and the Administrative Agent desire to amend the RPA as provided herein; 

C.WHEREAS, the Originators and the Seller have entered into that certain Sale and Contribution Agreement, dated as of July 22, 2016 (as amended by that certain Omnibus Amendment No. 1, dated as of February 14, 2017, as amended by that certain Omnibus Amendment No. 2, dated as of July 18, 2017, as amended by that certain Omnibus Amendment No. 3, dated as of September 4, 2018, as amended by that certain Omnibus Amendment No. 5, dated as of  June 27, 2019 and as further amended, restated, supplemented or otherwise modified through the date hereof, the “Sale Agreement” and, together with the RPA, the “Agreements”); and

D.WHEREAS, pursuant to and in accordance with Section 8.1 of the Sale Agreement, the Originators, the Seller, the Administrative Agent and the Purchasers desire to amend the Sale Agreement as provided herein.

NOW, THEREFORE, based upon the above Recitals, the mutual premises and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned, intending to be legally bound, hereby agree as follows:

SECTION 1.Definitions and Interpretation.  Each capitalized term used but not defined herein has the meaning ascribed thereto in Appendix A to the RPA.  The rules of interpretation set forth in Appendix A to the RPA are hereby incorporated as if fully set forth herein. 

SECTION 2.Amendments to the RPA.  The Seller, the Servicer, the Purchasers, the Purchaser Agents and the Administrative Agent hereby agree that the RPA is amended effective as of April 10, 2020 as follows:

(a)     Section 7.1(aa)(ii) and (iii) of the RPA are hereby amended by replacing the text “Not later than thirty (30) days” where it appears therein with text “(x) On or prior to June 26, 2020, not later than sixty (60) days, and (y) after June 26, 2020, not later than thirty (30) days, in each case,” in its place.

(b)    Sections 7.2(q)(ii) and (iii) of the RPA are hereby amended by replacing the text “Not later than thirty (30) days” where it appears therein with text “(x) On or prior to June 26, 2020, not later than sixty (60) days, and (y) after June 26, 2020, not later than thirty (30) days, in each case,” in its place.

(c)    Clause (ee)(ii) of the definition of “Eligible Loan” in Appendix A to the RPA is hereby amended by replacing the text “within thirty (30) days” in both instances where it appears therein with text “within (x) on or prior to June 26, 2020, sixty (60) days and (y) after June 26, 2020, thirty (30) days, in each case,” in its place.

SECTION 3.Amendments to the Sale Agreement.  The Originators, the Seller, the Administrative Agent and the Purchasers hereby agree that, effective as of the date hereof, the Sale Agreement is amended as follows:

 (a)     Section 2.5 of the Sale Agreement is hereby amended by replacing the text “within thirty (30) days” where it appears therein with text “(x) on or prior to June 26, 2020, within sixty (60) days, and (y) after June 26, 2020, within thirty (30) days, in each case,” in its place.

(b)    Sections 5.1(s)(ii) and (iii) of the Sale Agreement are hereby amended by replacing the text “Not later than thirty (30) days” where it appears therein with text “(x) On or prior to June 26, 2020, not later than sixty (60) days, and (y) after June 26, 2020, not later than thirty (30) days, in each case,” in its place.

SECTION 4.Agreements in Full Force and Effect as Amended. Except as specifically amended hereby, all provisions of the Agreements shall remain in full force and effect.  This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the Agreements other than as expressly set forth herein and shall not constitute a novation of the Agreements. 

SECTION 5.Representations and Warranties.  Each of the Seller, the Servicer and the Originators hereby represent and warrant to the Administrative Agent and the Purchasers, as of the date of this Amendment, as follows:

(a)this Amendment has been duly executed and delivered by it;

(b)this Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as limited by bankruptcy, insolvency, moratorium, 

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fraudulent conveyance or other laws relating to the enforcement of creditors’ rights generally and general principles of equity (regardless of whether enforcement is sought at equity or law); 

(c)no authorization or approval or other action by, and no notice to, license from or filing with, any Governmental Authority is required for the due execution, delivery and performance of this Amendment; 

(d)the execution, delivery and performance by it of this Amendment (i) is within its limited liability company or corporate powers, (ii) has been duly authorized by all necessary limited liability company or corporation action, and (iii) does not contravene, violate or breach (1) its organizational documents or (2) any Applicable Law; and

(e)immediately after giving effect to this Amendment, (i) each of the representations and warranties of the Seller, the Servicer or the Originators, as applicable, set forth in the RPA (in the case of the Seller and the Servicer) or in the Sale Agreement (in the case of the Seller and the Originators), as modified hereby, that are qualified as to materiality are true and correct, and each not so qualified are true and correct in all material respects (except to the extent such representations and warranties explicitly refer solely to an earlier date or period, in which case they shall be true and correct as of such earlier date or period), and (ii) no Event of Termination, Unmatured Event of Termination, Servicer Termination Event or Unmatured Servicer Termination Event has occurred and is continuing. 

SECTION 6.Conditions to Effectiveness.  This Amendment shall become effective (the “Effective Date”) upon receipt by the Administrative Agent of executed counterparts of this Amendment, duly executed and delivered by each party hereto.

SECTION 7. Miscellaneous.

(a)This Amendment may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart hereof by facsimile or by electronic mail attachment in portable document format (.pdf) shall be effective as delivery of an originally executed counterpart.

(b)Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

(c)THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF, EXCEPT TO THE EXTENT THAT THE PERFECTION, THE EFFECT OF PERFECTION OR PRIORITY OF THE INTERESTS OF THE ADMINISTRATIVE AGENT OR ANY 

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PURCHASER IN THE POOL ASSETS OR RELATED ASSETS IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK).

(d)Headings are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

(e)Section 13.7 of the RPA is hereby incorporated as if fully set forth herein. 

(f)This Amendment is a Transaction Document and all references to a “Transaction Document” in the Agreements and the other Transaction Documents (including, without limitation, all such references in the representations and warranties in the Agreements and the other Transaction Documents) shall be deemed to include this Amendment.

(g)Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Amendment or the transactions contemplated hereby.

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above. 

COFINA FUNDING, LLC, as Seller 

By:________________________________
Name:  
Title:  

CHS INC., as Servicer and an Originator

By:________________________________
Name:  
Title:  

CHS CAPITAL, LLC, as Servicer and an Originator

By:________________________________
Name:  
Title:  

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MUFG BANK, LTD. F/K/A THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as Administrative Agent, a Committed Purchaser and Purchaser Agent for the MUFG Purchaser Group

By:________________________________
Name:  
Title:  

VICTORY RECEIVABLES CORPORATION, as a Conduit Purchaser

By:________________________________
Name:  
Title:  

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NIEUW AMSTERDAM RECEIVABLES CORPORATION B.V., as a Conduit Purchaser

By:________________________________________    
Name:
Title:

By:________________________________________    
Name:
Title:

COÖPERATIEVE RABOBANK U.A., as a Committed Purchaser

By:________________________________________    
Name:
Title:

By:________________________________________    
Name:
Title:

Coöperatieve Rabobank U.A., NEW YORK BRANCH, as Purchaser Agent for the Rabobank Purchaser Group

By:________________________________________    
Name:
Title:

By:________________________________________    
Name:
Title:

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PNC BANK, NATIONAL ASSOCIATION, as a Committed Purchaser

By:________________________________________    
Name:
Title:

PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent for the PNC Purchaser Group

By:________________________________________    
Name:
Title:

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