SEC Contract Filing

Filing Date: 2016-03-31

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v435621_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in"><B>Exhibit 10.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THIRD AMENDMENT TO THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNRESTRICTED AND OPEN LINE OF CREDIT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This <B>Third</B> <B>Amendment
to the Unrestricted and Open Line of Credit </B>(the &ldquo;<B><I>Amendment</I></B>&rdquo;) is made and effective as of March 29,
2016 (&ldquo;<B><I>Amendment Effective Date</I></B>&rdquo;) by and between Flux Power, Inc., a California corporation (the &ldquo;<B><I>Borrower</I></B>&rdquo;),
and Esenjay Investments, LLC ( the &ldquo;<B><I>Lender</I></B>&rdquo; and together with the Borrower, the &ldquo;<B><I>Parties</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms
and conditions hereof, the Amendment is hereby incorporated into the Loan Agreement (as defined below) as if fully set forth therein.
Capitalized terms used herein and not otherwise defined shall have the meaning assigned in the Loan Agreement (as defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RECITALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, Borrower
and Lender have entered into that certain Unrestricted and Open Line of Credit dated September 24, 2012 , as amended by that certain
First Amendment to the Unrestricted and Open Line of Credit dated October 16, 2013 and further amended by that certain Second Amendment
to the Unrestricted and Open Line of Credit dated December 29, 2015 (as amended, the &ldquo;<B><I>Loan Agreement</I></B>&rdquo;),</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant to
the terms of the Loan Agreement, Lender has made available to the Borrower a line of credit with a maximum principal amount at
any time outstanding of up to $2,500,000 on terms and conditions set forth in the Loan Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, as
of the Amendment Effective Date, Lender has advanced to the Borrower an aggregate of $2,475,000 under the Loan Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Borrower and Lender desires to amend the Loan Agreement pursuant to the terms and conditions of this Amendment increase the line
of credit from $2,500,000 to $3,500,000.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>AGREEMENT</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
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 Lender and Borrower hereto agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;The Principal Amount referenced
in the Loan Agreement is hereby deleted in its entirety and shall, as of the Amendment Effective Date, be amended to read in its
entirety as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;&ldquo;Principal Amount:&#9;Up to a
maximum of $3,500,000.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;Except as amended hereby, all
the terms of the Loan Agreement are hereby ratified and acknowledged as being in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-