Document:

TERMS OF EMPLOYMENT

 

 

This Employment Agreement (the "Agreement")
is made effective on this 7th day of December, 2012 (the "Effective Date") by and among Flux Power Holding,
Inc., a Nevada Corporation which includes Flux Power, Inc a California based Corporation (the “Company”) located at
2240 Auto Park Way, Escondido, CA 92029 and Ronald Dutt (“Employee and/or I”), with a home address of 12 Greenview
Dr. Carlsbad, CA 92009.

 

As a condition of employment
with Company, Employee and Company agree to the following Terms of Employment:

 

		1.	Employment, Duties
and Acceptance

		A.	Appointment. Company hereby employs Employee as the Chief Financial
Officer (“CFO”) whom shall report to the CEO and Board of Directors and render exclusive and full-time services in
an executive capacity to Company and to any subsidiary of Company and to devote Employee’s best efforts to the affairs of
the Company and to perform such duties as respectively defined below.

 

CFO—
Responsible for the financial management of the Company including
but not limited to overseeing the capital structure of the company, presenting and reporting accurate and timely financial information,
providing economic strategy and forecasting, working with the CEO of the Board of Directors on the strategic vision of the Company,
overseeing the management and coordination of all fiscal reporting activities, establishing controls and structure that support
the growth of the Company. 

 

		B.	Acceptance. Employee hereby accepts such employment and agrees
to render such services. Employee agrees to render such services at Company's offices, but Employee will travel on temporary trips
to such other place or places as may be required from time to time to perform the duties hereunder.

 

		2.	Compensation

		A.	As compensation for all services to be rendered pursuant to this Agreement to or at the request
of Company, Company agrees to compensate Employee a salary at the rate of one hundred seventy thousand dollars ($170,000) per annum
(“Salary”).

 

		B.	Additional compensation may include, but is not limited to, equity compensation, vacation time, medical coverage, and bonus
structure, as attached hereto as Exhibit A.

 

		3.	EMPLOYMENT AT WILL

Employee agrees that unless specifically
stated in writing and signed by an authorized officer of the Company, subject to controlling law, any employment granted to Employee
is at will and for an indefinite term, and that such employment may be terminated at any time (subject to such requirements as
to notice as may be applicable) either by Employee or by the Company for any or no reason whatsoever, and Employee hereby waive
and disclaim any express or implied covenants to the contrary. In accepting employment by Company, Employee agrees not to rely
on any statements or representations, whether orally or in writing, by any officers, employees or agents of Company concerning
the duration or term of employment, grounds and procedures for discharge or termination of employment, or any other terms and conditions
of employment except those specifically stated in writing and signed by an authorized officer of Company. Employee further agrees
and understands that the provisions of any employee handbooks, personnel manuals and any and all other written statements of or
regarding personnel policies, practices or procedures that are or may be issued by Company or any official or department thereof
from time to time do not and shall not constitute a contract of employment and create no vested rights; that any such provisions
may be changed, revised, modified, suspended, cancelled, or eliminated by Company at an time without notice; and that they constitute
guidelines only and may be disregarded either in individual or Company wide situations when in the sole opinion and judgment of
Company circumstances so require.

 

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		4.	PROBATION PERIOD

An Employee's first ninety (90)
days of employment are on a trial basis and are considered a continuation of the employment selection process. The ninety (90)
day probationary period (“Probation Period”) provides the Company an opportunity to observe and evaluate the capacity
of the Employee, which includes the Employee’s ability to satisfactorily perform the essential functions of his or her job;
and to observe and evaluate the employee’s work habits and conduct, including attendance and the Employee’s relationship
with coworkers and superiors. During this probationary period, the Company may terminate employment immediately, with or without
cause and with or without notice. This 90 day probationary period is not a term of employment and is not intended, nor does it,
impact the at will nature of the relationship between the Company and the Employee.

 

		5.	CONFIDENTIAL INFORMATION

		A.	Company Information. Employee agrees at all times during the term of employment and thereafter,
to hold in strictest confidence, and not to use, except for the benefit of Company, or to disclose to any person, firm or corporation
without written authorization of Company, the Confidential Information of Company. Employee understands that “Confidential
Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited
to research, product plans, products, services, customer lists and customers (including, but not limited to customers of the Company
on whom Employee call or with whom Employee became acquainted during the term of my employment), software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, financial or other
business information disclosed to me by Company either directly or indirectly in writing, orally or by drawings or observation
of parts or equipment. Company acknowledges that Confidential Information does not include any of the foregoing items that have
become publicly known and made generally available through no wrongful act of Employee or of others who were under confidentiality
obligations as to the item or items involved.

 

		B.	Former Employer Information. Employee agrees not to improperly use or disclose any patent,
copyright, proprietary information or trade secrets of any former or concurrent employer or other person or entity and will not
bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person
or entity unless consented to in writing by such employer, person, or entity.

 

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		C.	Third Party Information. Employee agrees and recognizes that Company has received and in
the future will receive from third parties their confidential or proprietary information (such as, but not limited to, software
programs provided by license) subject to a duty on Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. Employee agrees to hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for
Company consistent with Company’s agreement with such third party. I agree to comply with Company’s policies and procedures,
as applicable from time to time, with respect to such information.

 

		6.	INVENTIONS

		A.	Inventions Retained. I agree not to use, incorporate or disclose any proprietary information
or inventions which belong to me and relate to the Company’s proposed business, products or research and development and
which are not assigned to the Company hereunder and belong to me prior to executing this agreement.

 

		B.	Assignment of Inventions. I hereby assign and transfer to the Company all my rights, title
and interest in and to all improvements, discoveries, designs, inventions, trade secrets, improvement works, documents and other
data (whether or not copyrightable or patentable), made, conceived or first reduced to practice by me, (the “Innovations”)
whether solely or jointly with others, during my period of employment with the Company which relate to the actual work I have performed
or may perform for the Company. This Assignment Agreement does not require me to assign to the Company any Invention for which
no equipment, supplies, facility, or trade secret information of Company was used and that was developed entirely on my own time,
and does not relate to the business of Company or to Company’s actual or demonstrably anticipated research or development,
or does not result from any work performed by my for Company.

 

		C.	Maintenance of Records. I agree to assist Company, or its designee, at Company’s expense,
in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, or other intellectual property
rights relating thereto in any all countries, including the disclosure to Company of all pertinent information and data with respect
thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which Company shall deem
necessary in order to apply for and obtain such rights and in order to assign and convey to Company, its successors, assigns, and
nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights
or other intellectual property rights relating thereto. I agree that the obligation to execute or cause to be executed, when it
is in my power to do so, and such instrument or papers shall continue after the termination of my employment. If Company is unable
to secure my signature due to mental or physical incapacity or if I am otherwise unavailable or unable to sign or to apply for
or pursue any application for any United States or foreign patents or for copyright registrations covering Inventions or original
works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint Company and its duly authorized
officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications
and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations
thereon with the same legal force and effect as if executed by me.

 

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		7.	CONFLICTING EMPLOYMENT

I agree that, during the term
of my employment with Company, I will not engage in any other employment, occupation, consulting or other business activity directly
related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage
in any other activities that conflict with my obligations to Company. At no time shall I develop an/or cause others to develop
technologies that directly relate to and/or compete with Flux’s products

 

		8.	RETURNING COMPANY DOCUMENT

I agree that, at the time I leave
the employ of Company, I will deliver to Company (and will not keep in possession, recreate or deliver to anyone else) any and
all devices, records, data, notes, reports, proposals, lists, correspondence, specifications drawings, blueprints, sketches, materials,
equipment, other documents or property, or reproductions of any aforementioned items developed by me pursuant to employment with
Company or otherwise belonging to Company, its successors or assigns.

 

		9.	NOTIFICATION OF NEW EMPLOYER

Upon termination of my employment
for any reason, I hereby grant consent to notification by the Company to any subsequent employer about rights and obligations under
the Agreement.

 

		10.	SOLICITATION OF EMPLOYEES

I agree that for a period of
twelve (12) months immediately following the termination of my employment with Company for any reason, whether with or without
cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of Company’s employees to leave
their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of Company,
either for me or for any other person or entity.

 

		11.	OTHER POLICIES

I agree to comply with all Company
policies, rules and procedures that are generally applicable to Company employees.

 

		12.	EQUITABLE RELIEF

I agree that it would be impossible
or inadequate to measure and calculate Company’s damages from any breach of the covenants set forth in Sections 5, and 6
herein. Accordingly, I agree that upon breech of any of such Sections, Company will have available, in addition to any other right
or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened
breach and to specific performance of any such provision of this Agreement. I further agree that no bond or other surety shall
be required in order to obtain such relief and I hereby consent to the issuance of such injunction and to any order of specific
performance.

 

		13.	ARBITRATION

Except for equitable relief pursuant
to Section 12 above, any dispute between the parties arising out of the Agreement shall be resolved through arbitration by a single
arbitrator acting under the auspices and rules and regulations of the American Arbitration Association, located in San Diego, California,
and in such event the decision of the arbitrator shall be binding upon the parties and enforceable in a court of competent jurisdiction.
The parties agree to negotiate any dispute arising out of the Agreement in good faith.

 

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		14.	Severance

In the event the Employee is
terminated after the Probation Period for any reason other than for cause, Company agrees to provide employee with a severance
payout equal to three (3) months of employment.

 

		15.	GENERAL PROVISIONS

		A.	Governing Law; Consent to Personal Jurisdiction.  This Agreement will be governed by the
laws of the State of California, and I hereby expressly consent to the personal jurisdiction of the state and federal courts located
therein for any lawsuit filed there by the Company arising from or relating to my employment.

 

		B.	Entire Agreement. This Terms of Employment sets forth the entire agreement and understanding
between the Company and me relating to the subject matter herein and merges, all prior discussions between us. No modification
of or amendment to this Terms of Employment, nor any waiver of any rights, will be effective unless in writing signed by the party
to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of the
Terms of Employment.

 

		C.	Severability. If one or more of the clauses in this Agreement are deemed unenforceable,
then the remaining clauses will continue in full force and effect. In the event a provision contained in any Restrictive Covenant
shall be declared by a court of competent jurisdiction to be illegal or unenforceable in whole or in part, then the offending provision
automatically shall be deemed modified to conform to the minimum requirements of law. The provision as modified, together with
all other provisions hereof, shall be given full force and effect.

 

		D.	Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators
and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.

 

		E.	Company. The term “Company” shall include any subsidiaries, affiliates, predecessors,
or successors of the Company.

 

		16.	Independent Representation

Each party warrants and represents
that (i) this Agreement has been prepared by the Company’s legal counsel, (ii) he/she has been advised to obtain the advise
of personal or independent counsel in the analysis of this Agreement, and (iii) that he/she has read this Agreement with care and
believes that he/she is fully aware of and understands the contents hereof and their legal effect.

 

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		17.	Survival of Covenants and Provisions 

The terms and obligations
of Sections 5, 7, 9 and 13 of this Agreement shall survive the termination of Employee's employment with the Company or any subsidiary
of the Company, and shall survive the termination of this Agreement.

 

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

 

	Flux Power, Inc	Employee
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Chris Anthony	 	By:	/s/ Ronald Dutt
	 	Chris Anthony, CEO	 	 	Ronald Dutt
	Date:	December 11, 2012	 	Date:	December 11, 2012

  

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EXHIBIT A

 

ADDITIONAL COMPENSATION

 

 

Equity Compensation: It will be
recommended to the Company’s board of directors that you participate in the Company Incentive Stock Option program (“ISO”)
at the first meeting of the Company’s board of directors following your start date and that the Company grant you an option
to purchase 200,000 shares of the Company’s Common Stock at a price per share equal to the fair market value per share of
the Common Stock on the date of grant and pursuant to Company’s standard vesting schedule.

 

These option grants shall be subject to
the terms and conditions of the Company’s Stock Option Plan and Stock Option Agreement, including vesting requirements. No
right to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting
or employment.

 

Medical Insurance: Health and dental
insurance (100% company paid) for employee and spouse only (effective the first of the month after a 30 day waiting period). Family
coverage can be purchased by employee.

 

Vacation
Time: Employee is granted personal paid time off of 20 days, of which the first 10 days shall be accessible and vested
upon Employees start date of December 7, 2012 and the remaining 10 days shall be accrued over the next 12 months of employment.

 

Bonus Structure: To be determined
as departmental goals are instituted and job descriptions are further defined, mutually agreed upon and in writing.

 

 

	Flux Power, Inc	Employee
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Chris Anthony	 	By:	/s/ Ronald Dutt
	 	Chris Anthony, CEO	 	 	Ronald Dutt
	Date:	December 11, 2012	 	Date:	December 11, 2012

 

    	Page 7 of 7THIS SECURED CONVERTIBLE PROMISSORY
NOTE AND ANY SECURITIES INTO WHICH THIS SECURED CONVERTIBLE PROMISSORY NOTE IS CONVERTIBLE HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SECURITIES
MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

 

THIS SECURED CONVERTIBLE PROMISSORY
NOTE AND ANY SECURITIES INTO WHICH THIS SECURED CONVERTIBLE PROMISSORY NOTE IS CONVERTIBLE ARE SUBJECT TO RESTRICTIONS ON TRANSFER
CONTAINED IN THAT CERTAIN NOTE PURCHASE AGREEMENT, DATED December 7, 2012, WHICH RESTRICTIONS ON TRANSFER ARE INCORPORATED HEREIN
BY REFERENCE.

  

FORM OF

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

	$	 	 	December 7, 2012
	 	 	 	New York, New York

 

FOR VALUE RECEIVED,
Grandparents.Com, Inc., a Delaware corporation (the “Company”), promises to pay to the order of ____________________,
or its registered assigns (“Holder”), the principal sum of $___________ with interest compounded annually on
the outstanding principal amount at the rate of twelve percent (12%) per annum (computed on the basis of actual calendar days elapsed
and a year of 365 days) or, if less, at the highest rate of interest then permitted under applicable law (the “Applicable
Rate”). Interest shall commence with the date hereof and shall continue on the outstanding principal of this Secured
Convertible Promissory Note (this “Note”) until paid or converted in accordance with the provisions hereof.
Notwithstanding the foregoing (and for the avoidance of doubt), interest on this Note shall not be due and payable until the Maturity
Date (as defined below).

 

1.          Definitions.
Capitalized terms used but not defined herein shall have the meanings given them in the Agreement.

 

2.          Note
Purchase Agreement. This Note is issued pursuant to the terms of that certain Note Purchase Agreement (the “Agreement”)
dated as of December 7, 2012, by and among the Company and the investors set forth in the Schedule of Investors attached thereto
as Exhibit A. This Note is one of several notes (referred to herein as the Notes or the “Bridge Notes”)
having like tenor and effect (except for variations necessary to express the name of the holder, the principal amount of each of
the Bridge Notes and the date on which each Note is issued) issued or to be issued by the Company in accordance with the terms
of the Agreement. The Bridge Notes shall rank equally without preference or priority of any kind over one another, and all payments
on account of principal and interest with respect to any of the Bridge Notes shall be applied ratably and proportionately on the
outstanding Bridge Notes on the basis of the respective principal amount of the outstanding indebtedness represented by each thereof.
This Note is convertible into Common Stock in accordance with Section 2.5 of the Agreement. Upon the occurrence of any one or more
of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note may be declared to be or may
automatically become immediately due and payable as provided in the Agreement.

  

    	 

    	 

    

  

3.          Maturity.
Unless sooner paid or converted in accordance with the terms hereof, the entire unpaid principal amount and all unpaid accrued
interest under this Note shall become fully due and payable on the earlier of (i) June 1, 2013, (ii) the closing of a Qualified
Financing or (iii) the acceleration of the maturity of this Note by Holder upon the occurrence of an Event of Default (such earlier
date, the “Maturity Date”).

 

4.          Payments.

 

(a)          Form
of Payment. All payments of interest and principal (other than payment by way of conversion) shall be in lawful money of the
United States of America to Holder, at the address specified in the Agreement, or at such other address as may be specified from
time to time by Holder in a written notice delivered to the Company. Except as otherwise provided in the Security Agreement, all
payments shall be applied first to accrued interest, and thereafter to principal.

 

(b)          Prepayment.
The Company shall have the right to prepay, upon five (5) Business Days written notice, any amounts owed under this Note in whole
or in part at any time without the prior written consent of Holder.

 

(c)          Security
Agreement. The Company’s obligations hereunder shall be secured pursuant to the Security Agreement.

 

5.          Lost,
Stolen, Destroyed or Mutilated Notes. In case any Note shall be mutilated, lost, stolen or destroyed, the Company shall issue
a new Note of like date, tenor and denomination and deliver the same in exchange and substitution for and upon surrender and cancellation
of any mutilated Note, or in lieu of any Note lost, stolen or destroyed, upon receipt of evidence satisfactory to the Company of
the loss, theft or destruction of such Note.

 

6.          Governing
Law. This Note is to be construed in accordance with and governed by the laws of the State of New York, without giving effect
to the conflict of laws principles thereof.

 

7.          Amendment
and Waiver. Any term of this Note may be amended and the observance of any term of this Note may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Holder.
Any amendment or waiver effected in accordance with this Section shall be binding upon the Company and Holder.

  

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8.          Notices.
Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Note
shall be made in accordance with Section 8.6 of the Agreement.

 

9.          Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from
this Note and the balance of the Bridge Note shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

10.         Assignment.
The Company shall not have the right to assign its rights and obligations hereunder or any interest herein.

 

11.         Remedies
Cumulative; Failure or Indulgence Not a Waiver. The remedies provided in this Note shall be cumulative and in addition to all
other remedies available under this Note and any of the other Transaction Documents. No failure or delay on the part of Holder
in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

12.         Payments.
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful
money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to
such Person at such address as previously provided to the Company in writing (which address, in the case of Holder as of the date
of issuance hereof, shall initially be the address for Holder as set forth in the Agreement); provided that Holder may elect to
receive a payment of cash via wire transfer of immediately available funds by providing the Company with not less than two (2)
Business Days prior written notice setting out such request and Holder’s wire transfer instructions. Whenever any payment
to be made shall otherwise be due on a day which is not a Business Day, such payment shall be made on the immediately succeeding
Business Day and such extension of time shall be included in the computation of accrued interest.

 

13.         Excessive
Interest. Notwithstanding any other provision herein to the contrary, this Note is hereby expressly limited so that the interest
rate charged hereunder shall at no time exceed the maximum rate permitted by applicable law. If, for any circumstance whatsoever,
the interest rate charged exceeds the maximum rate permitted by applicable law, the interest rate shall be reduced to the maximum
rate permitted, and if Holder shall have received an amount that would cause the interest rate charged to be in excess of the maximum
rate permitted, such amount that would be excessive interest shall be applied to the reduction of the principal amount owing hereunder
(without charge for prepayment) and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of
principal, such excess shall be refunded to the Company.

 

14.         Waiver
of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Transaction Documents.

  

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IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by its officers, thereunto duly authorized as of the date first above written.

 

	 	GRANDPARENTS.COM, INC.
	 	 	 
	 	By:	 
	 	 	Name: Joseph Bernstein
	 	 	Title:  Co-Chief Executive Officer

 

[Signature Page to Secured Convertible Promissory Note]

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