Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

XG TECHNOLOGY, INC.,
a corporation organized under the laws of the State of Delaware having an address at 240 South Pineapple Avenue, Suite 701, Sarasota,
FL 34236 (“Debtor”), hereby grants to ________, a corporation organized under the laws of ______________ having
an address at ______________ (“Secured Party”), to secure the payment and performance of all obligations of
Debtor to Secured Party under that certain Promissory Note dated _____________ _____, 2017 in the original stated principal
amount of $_________ as may be amended, restated, replaced or otherwise supplemented or modified (the “Note”),
and this Agreement, whether now existing or hereafter arising or acquired, together with all interest that accrues after the commencement
of any case, proceeding or other action under any bankruptcy or other insolvency law, whether or not the payment of such interest
is unenforceable or is not allowable due to the existence of such case, proceeding or other action (collectively, the “Secured
Obligations”), a security interest in the following property (the “Collateral”) to the extent
the Collateral was purchased by the Debtor pursuant to that certain agreement for sale and purchase of the business of the Sellers
operating under the name Vislink Communication Systems dated as of December 16, 2016 among Debtor, Secured Party, Vislink
PLC and Vislink International Limited, as affected by that certain Deed of Variation dated as of January 13, 2017
(as amended from time to time, the “Purchase Agreement”):

 

		(a)	all equipment, wherever located, including machinery, motor vehicles, furniture
and fixtures and all software embedded in such equipment; (b) all inventory (whether held for sale or lease or to be furnished
under contracts of service), raw materials, work in process, and materials used or consumed in the conduct of Debtor’s business,
and all software embedded in such inventory, and all books, records, invoices or other documents which describe or evidence the
same; (c) all accounts, contract rights, general intangibles, chattel paper, choses in action, instruments, documents (including
all documents of title and warehouse receipts), supporting obligations and all rights to the payment of money, however evidenced
or arising; and (d) all securities and all cash, stock or other dividends or distributions paid upon or made in respect of
such securities in any form, all securities received in addition to or in exchange for such securities, and all subscription rights
incident to such securities,

 

TOGETHER WITH all
accessions, parts, accessories, attachments and appurtenances in any way used with, attached or related to, or installed in, or
intended to be so used, attached, related or installed in, any equipment or inventory; all substitutions for, renewals of, improvements,
replacements and additions to, and the products and proceeds of all the foregoing property and any insurance policies relating
thereto.

 

Except as otherwise defined herein, terms
defined in the Uniform Commercial Code, as in effect from time to time in The State of Delaware (the “UCC”),
including but not limited to, “account,” “chattel paper,” “contract right,” “document,”
“equipment,” “farm products,” “fixtures,” “general intangibles,” “instrument,”
and “inventory,” shall have the meanings set forth therein. However, if a term is defined in Article 9 of the
UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9 of the UCC.

 

Debtor hereby represents,
warrants, covenants and agrees that:

 

1.                 
Absence of Liens.  Except for the security interest granted hereby, Debtor has good and marketable title to, and
is, and will continue to be, the sole owner of, the Collateral free from all liens and encumbrances and will defend the same against
the claims and demands of all persons. Debtor will not further pledge, mortgage or create, or suffer to exist, a security interest,
lien or other encumbrance on or in the Collateral, and other than inventory sold in the ordinary course of Debtor’s business,
will not sell, consign, license, lease or otherwise transfer the Collateral or any interest therein, without the prior written
consent of Secured Party.

 

     

     

    

 

2.                 
Change in Organizational Structure; Address; Inspection; Accounts; Further Assurances.

 

2.1             
Change in Organizational Structure; Address; Inspection. Debtor will immediately notify Secured Party in writing of any
change in its organizational structure or address from that shown in the introductory paragraph of this Agreement. Debtor shall
at all reasonable times and from time to time allow Secured Party, by or through any of its officers, agents, attorneys or accountants,
to inspect the Collateral, wherever located, and to examine, inspect or make extracts from Debtor’s books and records relating
to the Collateral.

 

2.2             
Accounts.

 

2.2.1       
Debtor shall: (a) immediately notify Secured Party in writing in the event that any of the following occurs: (i) any
account is or becomes entitled or eligible for discount for prompt payment; (ii) any account debtor has or may have any defense
to payment of, or right of setoff, counterclaim, or recoupment against, any account; (iii) any account represents an amount
which is disputed by the account debtor or the payment of which is in any way contingent or conditional; or (iv) the desirability,
usefulness, or marketability of any of the inventory has been in any way reduced or impaired by reason of physical deterioration,
technical obsolescence, or otherwise; (b) keep accurate and complete books and records in accordance with generally accepted
accounting principles and, at Debtor’s expense, promptly furnish Secured Party such information and documents relating to
the Collateral at such times, and in such form and detail, as Secured Party may request, including without limitation: (i) copies
of invoices or other evidence of Debtor’s accounts and schedules showing the aging, identification, reconciliation, and collection
thereof; (ii) evidence of shipment and receipts of goods and the performance of services or obligations covered by accounts;
and (iii) reports as to Debtor’s inventory and purchases, sales, damage, or loss thereof; all of the foregoing to be
certified by authorized officers or other employees of Debtor; and (c) diligently collect the accounts until such time as
Secured Party exercises its right to directly collect the accounts, and upon notice from Secured Party, deliver all proceeds of
account to Secured Party forthwith upon receipt, in the original form in which received.

 

2.2.2       
Debtor hereby appoints Secured Party and its officers, employees and agents as its irrevocable, true and lawful attorney-in-fact
with all necessary power and authority to: (a) following an Event of Default, notify Debtor’s account debtors of the
assignment of their accounts and direct them to make all payments thereon to Secured Party; (b) following an Event of Default,
in Secured Party’s name or in the name of Debtor, demand, sue for, collect, compromise, settle, and give release from any
account; and (c) take such other action as Secured Party may deem appropriate for any such purpose.

 

2.3             
Further Assurances. Debtor shall do, make, execute and deliver all such additional and further acts, things, deeds, assurances
and instruments, at Debtor’s sole expense, as Secured Party may require more completely to vest in and assure to Secured
Party its rights hereunder or in any of the Collateral.

 

3.                 
Insurance.  Debtor has the risk of loss of the Collateral. Debtor will keep the Collateral at all times insured
by such insurance and in such amounts (with any deductibles as approved by Secured Party) as Secured Party may from time to time
require, and in any event and without specific request by Secured Party, will insure the Collateral against fire, including so-called
extended coverage, collision, and theft, all insurance to be with such insurance companies as Secured Party shall approve.

 

     

     

    

 

4.                 
Use and Maintenance of Collateral; Taxes.  Debtor will keep the Collateral in good order and repair, and will
not use the same in violation of law or any policy of insurance thereon or permit any Collateral to be attached or otherwise affixed
to any real estate so as to become a fixture under the law of the jurisdiction in which such real estate is located or to any goods
not owned by Debtor. Debtor will pay promptly when due all taxes and assessments upon the Collateral or for its use or operation
or upon this agreement.

 

5.                 
Secured Party Reimbursement Rights.  At its option, Secured Party may discharge taxes and other liens at any time
levied or placed on the Collateral, and place and pay for insurance thereon. Debtor agrees to reimburse Secured Party on demand
for any and all expenditures so made, and until paid the amount thereof shall be a debt secured by the Collateral. Secured Party
shall have no obligation to Debtor to make any such expenditures nor shall the making thereof relieve Debtor of any default.

 

6.                 
Defaults; Remedies.  Upon the happening of any of the following events or conditions (each, a “default”),
namely: (a) breach of any payment obligation, or other covenant or liability contained or referred to herein or in any contract,
instrument, document or agreement evidencing any Secured Obligation, including, without limitation, an Event of Default under the
Note; (b) any representation or warranty of Debtor in this Agreement proving false, misleading or erroneous in any material
respect; (c) loss, theft, material damage, destruction, or encumbrance of or to the Collateral, or the making of any levy
thereon or seizure or attachment thereof by legal process; (d) an attachment or execution or similar lien shall be levied
against any Collateral; (e) merger, consolidation, sale of all or substantially all of the assets of Debtor; or (f) death,
dissolution, termination of existence, insolvency, business failure, appointment of a receiver of any part of the property of,
assignment for the benefit of creditors by, or the commencement of any proceeding under any bankruptcy or insolvency laws by or
against Debtor, or any indorser, guarantor or surety of or for any Secured Obligation; thereupon, and as long as such default
continues, Secured Party shall then have in any jurisdiction where enforcement hereof is sought, in addition to all other rights
and remedies, the rights and remedies of a secured party under the UCC or other applicable law, including without limitation, the
right to take immediate possession of the Collateral without legal process, and for that purpose Secured Party may, so far as Debtor
can give authority therefor, enter upon any premises on which the Collateral, or any part thereof, may be situated, and remove
the same therefrom. Debtor will upon demand assemble the Collateral and make the Collateral available to Secured Party at a place
and time designated by Secured Party which is reasonably convenient to both parties. No failure to exercise and no delay in exercising,
on the part of Secured Party, any right or remedy accruing upon any default shall: (i) impair any right or remedy, (ii) waive
or operate as an acquiescence to any default, or (iii) affect any subsequent default of the same or of a different nature.
In the event the proceeds of any sale, collection or realization of the Collateral are insufficient to satisfy the Secured Obligations
in full, Debtor shall remain liable for the deficiency, including any interest thereon, together with any costs incurred by Secured
Party in collecting such deficiency.

 

7.                 
Foreclosure Procedures. Secured Party has no obligation to clean up or otherwise prepare the Collateral for sale. Secured
Party may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance
will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. Secured Party may sell
the Collateral without giving any warranties as to the Collateral. Secured Party may specifically disclaim any warranties of title
or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.
If Secured Party sells any of the Collateral upon credit, Debtor will be credited only with payments actually made by the purchaser,
received by Secured Party and applied to the indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral,
Secured Party may resell the Collateral and Debtor shall be credited with the proceeds of the sale. In the event Secured Party
purchases any of the Collateral being sold, Secured Party may pay for the Collateral by crediting some or all of the Secured Obligations
of Debtor.

 

     

     

    

 

8.                 
Waivers.  Debtor waives demand, notice, protest, notice of acceptance of this Agreement or other action taken
in reliance hereon and all other demands and notices of any description. Secured Party may exercise its rights with respect to
the Collateral without resorting or regard to other collateral or sources of reimbursement for liability. Secured Party shall not
be deemed to have waived any of its rights upon or under the Secured Obligations or the Collateral unless such waiver is in writing
and signed by Secured Party. No delay or omission on the part of Secured Party in exercising any right shall operate as a waiver
of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any
future occasion. All rights and remedies of Secured Party on the Secured Obligations or the Collateral, whether evidenced hereby
or by any other instrument or papers, shall be cumulative and may be exercised separately or concurrently.

 

9.                 
Notices.  Except as otherwise provided herein, all notices and other communications in connection herewith, shall
be in writing, and shall have been duly given and be effective (i) when delivered, (ii) the third business day following
the day on which the same is sent by certified or registered mail, postage prepaid, return receipt requested, or (iii) sent
by facsimile transmission (provided a copy of such facsimile transmission is also sent by first-class mail concurrently with such
transmission), in each case addressed to the respective parties at the address set forth above, or at such other address as such
party may specify by written notice to the other party hereto.

 

10.             
Governing Law; Consent To Jurisdiction.  This Agreement is intended to take effect as a sealed instrument and
shall be governed by, and construed in accordance with, the laws of The State of Delaware, without regard to its conflicts of law
rules. Debtor agrees that any suit for the enforcement of this Agreement may be brought in the courts of Delaware or any federal
court sitting in such state and consents to the non-exclusive jurisdiction of each such court and to service of process in any
such suit being made upon Debtor by mail at the address specified below. Debtor hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such suit was brought in an inconvenient court.

 

11.             
Severability; Section Headings.  If any provision of this Agreement shall be invalid, illegal or unenforceable,
such provisions shall be severable from the remainder of this Agreement and the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. Section headings are for the convenience of reference only and
are not a part of this Agreement and shall not affect its interpretation.

  

 

[Signature Page Follows]

 

 

     

     

    

 

IN WITNESS WHEREOF,
Debtor, by its duly authorized representative, has executed this Agreement as an instrument under seal on this _____ day of ______________, 2017

 

	WITNESSED:	 	XG TECHNOLOGY, INC., a Delaware corporation
	 	 	 	 
	 	 	 	 
	 	 	By: 	 
	 	 	 
	Print Name	 	Print Name
		 	Title:Exhibit 10.1

 

Stock
Sale Agreement

 

 

This Agreement, entered
into effective the 18th day of December 2016, is by and between Henry E. Baldenegro, an individual (the “Buyer”)
and Creative Medical Health, Inc., a Delaware corporation (the “Seller”).

 

RECITALS:

 

WHEREAS, Seller
is the legal and beneficial owner of 3,412,731 shares (the “Shares”) of common stock of Creative Medical Technology
Holdings, Inc., a Nevada corporation (the “Issuer”);

 

WHEREAS, Buyer
is desirous to sell the Shares to the Seller and Buyer is willing to purchase the Shares from the Seller; and

 

NOW, THEREFORE,
in consideration of the mutual terms and conditions hereof, the parties hereto agree as follows:

 

1.            Sale
of Stock. Seller and Buyer agree that for and in consideration of $3,412.73 from the Buyer, the Seller hereby bargains, sells,
assigns, conveys and transfers to Buyer all right, title, and interest in and to the Shares. Seller hereby irrevocable authorizes
the transfer agent for the Issuer to transfer the Shares from the Seller to the Buyer and to forward to the Buyer a stock certificate
representing the Shares to the address set forth in this Agreement.

 

2.             Representations
and Warranties of Buyer. The Buyer hereby represents and warrants to Seller as follows:

 

2.1       Restricted
Securities. The Buyer understands that the Seller is an affiliate of the Issuer, that the Shares have not been registered pursuant
to the Securities Act, or any state securities act, and that the Shares are thus “restricted securities” as defined
in Rule 144 promulgated by the Securities and Exchange Commission (the “SEC”). Therefore, under current interpretations
and applicable rules, he will have to retain the Shares for a period of at least one year from the date of this Agreement and at
the expiration of such one year period his sales will be confined to brokerage transactions of limited amounts requiring certain
notification filings with the SEC and such disposition may be available only if the Issuer is current in its filings with the SEC
under the Exchange Act, or other public disclosure requirements. Accordingly, the undersigned hereby acknowledges that he is prepared
to hold the Shares for an indefinite period.

 

2.2       Accredited
Investor. The Buyer is an “accredited investor” in that Buyer is (i) a natural person whose individual net worth,
or joint net worth with Buyer’s spouse, (excluding the value of the individual’s primary residence) exceeds $1,000,000;
or (ii) a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income
with Buyer’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income
level in the current year.

 

     

     

    

 

2.3       Investment
Purpose. The Buyer acknowledges that the Shares are being purchased for his own account, for investment, and not with the present
view towards the distribution, assignment, or resale to others or fractionalization in whole or in part. The Buyer further acknowledges
that no other person has or will have a direct or indirect beneficial or pecuniary interest in the Shares.

 

2.4       Limitations
on Resale; Restrictive Legend. The Buyer acknowledges that he will not sell, assign, hypothecate, or otherwise transfer any
rights to, or any interest in, the Shares except (i) pursuant to an effective registration statement under the Securities Act,
or (ii) in any other transaction which, in the opinion of counsel acceptable to the Issuer, is exempt from registration under the
Securities Act, or the rules and regulations of the SEC thereunder. The Buyer also acknowledges that an appropriate legend will
be placed upon each of the certificates representing the Shares stating that the Shares have not been registered under the Securities
Act and setting forth or referring to the restrictions on transferability and sale of the Shares.

 

2.5       Information.
The Buyer has been furnished (i) with all requested materials relating to the business, finances, and operations of the Issuer;
(ii) with information deemed material to making an informed investment decision; and (iii) with additional requested information
necessary to verify the accuracy of any documents furnished to the Buyer by the Issuer. Such person has been afforded the opportunity
to ask questions of the Issuer and its management and to receive answers concerning the terms and conditions of this transaction.

 

2.6       Documents.
The Buyer has had access to each and every document filed by the Issuer with the SEC available on the website of the SEC at www.sec.gov.
The Buyer has relied upon the information contained therein and has not been furnished any other documents, literature, memorandum,
or prospectus.

 

2.7       Knowledge
and Experience in Business and Financial Matters. The Buyer has such knowledge and experience in business and financial matters
that he is capable of evaluating the risks of the prospective investment, and that his financial capacity is of such proportion
that the total cost of his commitment in the Shares would not be material when compared with his total financial capacity.

 

2.8       No
Advertisements. The Buyer is not entering into this Agreement as a result of or subsequent to any advertisement, article, notice,
or other communication published in any newspaper, magazine, or similar media or broadcast on television or radio, or presented
at any seminar or meeting.

 

2.9       Relationship
to Company. The Buyer has a significant preexisting personal or business relationship with the Seller.

 

3.             Representations
and Warranties of Seller. The Seller hereby represents and warrants to the Buyer as follows:

 

3.1       Affiliate
Status. The Seller is an affiliate of the Issuer as defined in Rule 144.

 

3.2       Ownership
of Shares. The Seller is the record and beneficial owner and holder of the Shares and such Shares are owned free and clear
of all liens, encumbrances, charges and assessments of every nature and subject to no restrictions with respect to transferability.

 

3.3       Power
and Authority. The Seller has full power and authority to dispose, assign, and transfer the Shares in accordance with the terms
hereof.

 

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3.4       No
Outstanding Commitments. Except for this Agreement, there are no outstanding options, contracts, calls, commitments, agreements
or demands of any character relating to the Shares.

 

4.             Miscellaneous.

 

4.1       Default.
Should any party to this Agreement default in any of the covenants, conditions, or promises contained herein, the defaulting party
shall pay all costs and expenses, including a reasonable attorney’s fee, which may arise or accrue from enforcing this Agreement,
or in pursuing any remedy provided hereunder.

 

4.2       Entire
Agreement. This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter
hereof and supersedes all negotiations, representations, prior discussions, letters of intent, and preliminary agreements between
the parties hereto relating to the subject matter of this Agreement.

 

4.3       Interpretation
of Agreement. This Agreement shall be interpreted and construed as if equally drafted by all parties hereto.

 

4.4       Survival
of Covenants, Etc. All covenants, representations, and warranties made herein to any party, or in any statement or document
delivered to any party hereto, shall survive the making of this Agreement and shall remain in full force for a period of two years
from the date of this Agreement.

 

4.5       Further
Action. The parties hereto agree to execute and deliver such additional documents and to take such other and further action
as may be required to carry out fully the transactions contemplated herein.

 

4.6       Full
Knowledge. By their signatures, the parties acknowledge that they have carefully read and fully understand the terms and conditions
of this Agreement, that each party has had the benefit of counsel, or has been advised to obtain counsel, and that each party has
freely agreed to be bound by the terms and conditions of this Agreement.

 

4.7       Headings.
The descriptive headings of the various sections or parts of this Agreement are for convenience only and shall not affect the meaning
or construction of any of the provisions hereof.

 

4.8       Counterparts.
This Agreement may be executed in two or more partially or fully executed counterparts, each of which shall be deemed an original
and shall bind the signatory, but all of which together shall constitute but one and the same instrument.

 

4.9       Governing
Law. This Agreement and the rights and duties of the parties hereto shall be construed and determined in accordance with the
laws of the State of Arizona, and any and all actions to enforce the provisions of this Agreement, shall be brought in a court
of competent jurisdiction in the State of Arizona and in no other place.

 

SIGNATURE PAGE FOLLOWS

 

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SIGNATURE PAGE

 

IN WITNESS WHEREOF,
the undersigned have executed this Agreement the day and year first above written.

 

 

	 	 	CREATIVE MEDICAL HEALTH, INC.
	 	 	 
	 	 	 
	SELLER:	 	/s/Timothy
    Warbington
	 	 	By: Timothy Warbington
	 	 	Its: Chief Executive Officer
	 	 	 
		Address:	2017 W Peoria Avenue
		 	Phoenix,
    AZ 85029
	 	 	 
	 	 	 
	 	 	 
	BUYER:	 	/s/
    Henry E. Baldenegro
	 	 	Henry E. Baldenegro
	 	 	 
	 	Address:	2332 East Bishop Drive
		 	Tempe, Arizona 85282

 

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