Document:

ex10-31.htm

    Exhibit
10.31

    

    

    

    CAMERON
INTERNATIONAL CORPORATION

    

    Restricted Stock Unit Award
Agreement

    [DATE]

    

    This
AWARD AGREEMENT (the “Award”) is between the employee listed on the attached
Notice of Grant of Award (“Participant”) and Cameron International Corporation
(the “Company”), in connection with the Restricted Stock Unit Award granted to
Participant by the Company.

    

    1.           Effective
Date and Issuance of Restricted Stock.  The Company hereby
grants to the Participant, on the terms and conditions set forth herein, an
award of Restricted Stock Units (the “Award”).  This Restricted Stock
Unit Award is a commitment to issue one Share of Cameron common stock (“Share”)
for each share of restricted stock units specified on the Notice of Grant of
Award, at vesting.  If Participant completes, signs, and returns one
copy of this agreement (the “Award Agreement”) to the Company in Houston, Texas,
U.S.A., this Award Agreement will be effective as of [DATE].

    

    2.           Terms
Subject to the Plan.  This Award Agreement is expressly subject
to the terms and provisions of the Company's Equity Incentive Plan (the
"Plan"), as indicated in your Notice of Grant of Award.  A copy of the
Plan is available on the Cameron Intranet under the Legal Section.  In
the event there is a conflict between the terms of the Plan and this Award
Agreement, the terms of the Plan shall control.

    

    3.           Vesting
Requirement.  The
Award shall become 100% vested, subject to the provisions of Section 4 below, on
[DATE]
(the “Vesting Date”).  All Restricted Stock Units which become vested
shall be payable in accordance with Section 6 hereof.

    

    4.           Termination
of Employment.  Notwithstanding
the foregoing:

    (a) If
the Participant’s employment voluntarily terminates at age 60 or older for
reasons other than cause, and the Participant has at least ten years of service
with the Company, any unvested Restricted Stock Units (RSU) shall continue to
vest according to the terms of the RSU Award; except that if such termination
occurs within one year from the effective date of the Award, the number of RSUs
that will continue to vest shall be reduced to be proportionate to that portion
of the year between such effective date and the date of termination and the
balance of the Award shall be immediately cancelled. For purposes of the Award
Agreement, “cause” shall mean the Participant has (1) engaged in gross
negligence or willful misconduct in the performance of his duties and
responsibilities respecting his position with the Company, (2) willfully
refused, without proper legal reason, to perform the duties and responsibilities
respecting his position with the Company, (3) breached any material policy or
code of conduct established by the Company and affecting the Participant, (4)
engaged in conduct that Participant knows or should know is materially injurious
to the Company, (5) been convicted of a felony or a misdemeanor involving moral
turpitude, or (6) engaged in an act of dishonest or impropriety which materially
impairs the Participant’s effectiveness in his position with the
Company.

    

    (b)  If
the Participant’s employment terminates by reason of the death or long-term
disability of the Participant, the Award shall be immediately vested in full as
of the date of such termination; except that if such termination occurs within
one year from the effective date of the Award, the number of RSUs that will vest
in full shall be reduced to be proportionate to that portion of the year between
the effective date of the Award and the date of termination and the balance of
the Award shall be immediately cancelled.  For purposes of this Award
Agreement, long-term disability shall mean that the participant is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than twelve
months.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c)  If
the Participant’s employment terminates by reason of a workforce reduction, the
Award shall continue to vest according to the terms of the award; except that if
such termination occurs within one year from the effective date of the Award,
the number of RSUs that will vest in full shall be reduced to be proportionate
to that portion of the year between such effective date and the date of
termination and the balance of the Award shall be immediately
cancelled.

    

    (d)  If
the Participant’s employment terminates for reasons other than for those
addressed in the previous three subsections, no RSUs shall vest for the benefit
of the Participant after the termination date.

    

    5.           Change of
Control.

    (a) Notwithstanding
Section 11.2 of the Plan, upon a “Change of Control” of the Company, the Award
granted hereunder shall immediately and fully vest.

    

    (b) “Change
of Control” for the purposes of this Award, shall mean the earliest date on
which:

    

    
      	
              (i)  

            	
              any
      Person is or becomes the “beneficial owner” (as defined in Rule 13d-3
      under the Exchange Act), directly or indirectly, of securities of the
      Company representing 20% or more of the combined voting power of the
      Company’s outstanding voting securities, other than through the purchase
      of voting securities directly from the Company through a private
      placement; or

            

    

    

    
      	
              (ii)  

            	
              individuals
      who constitute the Board on the date hereof (the “Incumbent Board”) cease
      for any reason to constitute at least a majority thereof, provided that
      any person becoming a director subsequent to the date hereof whose
      election, or nomination for election by the Company’s shareholders, was
      approved by a vote of at least two-thirds of the directors comprising the
      Incumbent Board shall from and after such election be deemed to be a
      member of the Incumbent Board; or

            

    

    

    
      	
              (iii)  

            	
              a
      merger or consolidation involving the Company or its stock, or an
      acquisition by the Company, directly or indirectly or through one or more
      subsidiaries, of another entity or its stock or assets in exchange for the
      stock of the Company unless, immediately following such transaction less
      than 50% of the then outstanding voting securities of the surviving or
      resulting corporation or entity will be (or is) then beneficially owned,
      directly or indirectly, by all or substantially of the individuals and
      entities who were the beneficial owners of the Company’s outstanding
      voting securities immediately prior to such transaction (treating, for
      purposes of determining whether the 50% continuity test is met, any
      ownership of the voting securities of the surviving or resulting
      corporation or entity that results from a stockholder’s ownership of the
      stock of, or their ownership interest in, the corporation or other entity
      with which the Company is merged or consolidated as not owned by persons
      who were beneficial owners of the Company’s outstanding voting securities
      immediately prior to the
transaction).

            

    

    

    
      	
              (iv)  

            	
              a
      tender offer or exchange offer is made and consummated by a Person other
      than the Company for the ownership of 20% or more of the voting securities
      of the Company then outstanding; or

            

    

    

    
      	
              (v)  

            	
              all
      or substantially all of the assets of the Company are sold or transferred
      to a Person as to which (a) the Incumbent Board does not have authority
      (whether by law or contract) to directly control the use or further
      disposition of such assets and (b) the financial results of the Company
      and such Person are not consolidated for financial reporting
      purposes.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Anything else in this definition to the
contrary notwithstanding, no Change of Control shall be deemed to have occurred
by virtue of any transaction which results in the Participant, or a group of
Persons which includes the Participant, acquiring more than 20% of either the
combined voting power of the Company’s outstanding voting securities or the
voting securities of any other corporation or entity which acquires all or
substantially all of the assets of the Company, whether by way of merger,
consolidation, sale of such assets or otherwise.

    

    6.           Payment
of Award.

    (a) Employed
through Vesting Date. If the Participant is
employed with the Company through the Vesting Date, payment of his vested
Restricted Stock Units shall be made within 30 days following the Vesting
Date.

    

    (b) Employment Terminates Prior
to Vesting Date.

     

    
      
        	
                i.

              	
                If
      the Participant dies prior to the Vesting Date, the Award, as accelerated
      pursuant to Section 4 and/or 5 hereof, shall be paid within 30 days of the
      Participant’s death.

                 

              
	
                ii.

              	
                If
      the participant voluntarily terminates employment with the Company in
      accordance with Section 4(a), the vested portion of the Award shall be
      paid within 30 days following the Vesting Date.

                 

              
	
                iii.

              	
                If
      the Participant terminates employment with the Company due to his
      long-term disability in accordance with Section 4(b), the vested portion
      of the Award shall be paid within 30 days following the Vesting
      Date.

                 

              
	
                iv.

              	
                If
      the Participant terminates employment with the Company by reason of a
      workforce reduction in accordance with Section 4(c), the vested portion of
      his Award shall be paid within 30 days following the Vesting
      Date.

                 

              

      

       

    

    (c) Change in
Control.  Upon the occurrence of a Change in Control that also
constitutes a “change in control event” within the meaning of U.S. Department of
Treasury Regulation Section 1.409A-3(i)(5) (a “Section 409A CIC”), Participant’s
vested Award shall be paid within 30 days following such Section 409A
CIC.  Upon the occurrence of a Change in control that is not a Section
409A CIC, Participant’s vested award shall be paid within 30 days following the
Vesting Date.

    

    The
Shares which the Award entitles the Participant to receive shall be paid to the
Participant, after deduction of the number of Shares the Fair Market Value, as
defined in the Plan, of which equals the applicable minimum statutory
withholding taxes.

    

    7.           Restrictions
on Transfer.  Except as provided by the Plan, neither this
Restricted Stock Unit Award nor any Restricted Stock Units covered hereby may be
sold, assigned, transferred, encumbered, hypothecated or pledged by the
Participant, other than to the Company as a result of forfeiture of the units as
provided herein.

    

    8.           No Voting
Rights.   The Restricted Stock Units granted pursuant to
this Award, whether or not vested, will not confer any voting rights upon the
Participant, unless and until the Award is paid in Shares.

    

    9.           Changes
in Capitalization. The Restricted Stock
Units under this Award shall be subject to the provisions of the Plan relating
to adjustments to corporate capitalization, provided, however, that in the event
of any reorganization, recapitalization, dividend or distribution (whether in
cash, shares or other property, other than a regular cash dividend), stock
split, reverse stock split or other similar change in corporate structure
affecting the shares subject to the Award, the Award shall be appropriately
adjusted to reflect such change, but only so far as is necessary to maintain the
proportionate interest of the Participant and preserve, without exceeding, the
value of such Award.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    10.           Covenant Not To Compete,
Solicit or Disclose Confidential Information.

    (a) The Optionee
acknowledges that the Participant is in possession of and has access to
confidential information, including material relating to the business, products
or services of the Company and that he or she will continue to have such
possession and access during employment by the Company.  The
Participant also acknowledges that the Company’s business, products and services
are highly specialized and that it is essential that they be protected, and,
accordingly, the Participant agrees that as partial consideration for the Award
granted herein that should the Participant engage in any “Detrimental Activity,”
as defined below, at any time during his or her employment or during a period of
one year following his or her termination the Company shall be entitled to: (i)
recover from the Optionee the
value of any portion of the Award that has been paid; (ii) seek
injunctive relief against the Participant; (iii) recover all damages, court
costs, and attorneys’ fees incurred by the Company in enforcing the provisions
of this Award, and (iv) set-off any such sums to which the Company is entitled
hereunder against any sum which may be owed the Participant by the
Company.

    

    (b)           “Detrimental
Activity” for the purposes hereof, other than with respect to involuntary
termination without cause, termination in connection with or as a result of a
“Change of Control” (as defined in Section 10(b) hereof), or termination
following a reduction in job responsibilities, shall include: (i) rendering of
services for any person or organization, or engaging directly or indirectly in
any business, which is or becomes competitive with the Company; (ii) disclosing
to anyone outside the Company, or using in other than the Company’s business,
without prior written authorization from the Company, any confidential
information including material relating to the business, products or services of
the Company acquired by the Optionee during employment with the Company; (iii)
soliciting, interfering, inducing, or attempting to cause any employee of the
Company to leave his or her employment, whether done on Optionee’s own account
or on account of any person, organization or business which is or becomes
competitive with the Company, or (iv) directly or indirectly soliciting the
trade or business of any customer of the Company.  “Detrimental
Activity” for the purposes hereof with respect to involuntary termination
without cause, termination in connection with or as a result of a “Change of
Control”, or termination following a reduction in job responsibilities, shall
include only part (ii) of the preceding sentence.

    

    11.           Employment.  This
Award Agreement is not an employment agreement.  Nothing contained
herein shall be construed as creating any employment relationship.

    

    12.           Notices.  All
notices required or permitted under this Agreement shall be in writing and shall
be delivered personally or by mailing the same by registered or certified mail
postage prepaid, to the other party.  Notice given by mail as below
set out shall be deemed delivered at the time and on the date the same is
postmarked.

    

    Notices
to the Company should be addressed to:

    

    Cameron
International Corporation

    1333 West
Loop South, Suite 1700

    Houston,
Texas 77027

    Attention:  Corporate
Secretary

    Telephone:  713-513-3322

    

    13.           Tax
Withholding.   Participant agrees that as a condition to
the payment of the Award hereunder, any Shares issued under this Award shall be
reduced by the number of Shares of the Fair Market Value of which equals the
amounts required to be withheld or paid with respect thereto under all
applicable federal, state and local taxes and other laws and regulations that
may be in effect as of the date of each such payment (“Tax
Amounts”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    14.           Section
409A.

    (a) This
Award is intended to comply with Section 409A of the Code and ambiguous
provisions, if any, shall be construed in a manner that is compliant with or
exempt from the application of Section 409A, as appropriate.  This
Award shall not be amended or terminated in a manner that would cause the Award
or any amounts payable under the Award to fail to comply with the requirements
of Section 409A, to the extent applicable, and, further, the provisions of any
purported amendment that may reasonably be expected to result in such
non-compliance shall be of no force or effect with respect to the
Award.  The Company shall neither cause nor permit any payment,
benefit or consideration to be substituted for a benefit that is payable under
this Award if such action would result in the failure of any amount that is
subject to Section 409A to comply with the applicable requirements of Section
409A.  For purposes of Section 409A, each payment under this Award
shall be deemed to be a separate payment.

    

    (b) Notwithstanding
any provision of the Award to the contrary, if the Participant is a “specified
employee” within the meaning of Section 409A as of the date of the Participant’s
termination of employment and the Company determines, in good faith, that
immediate payments of any amounts or benefits would cause a violation of Section
409A, then any amounts or benefits which are payable under this Award upon the
Participant’s “separation from service” within the meaning of Section 409A which
(i) are subject to the provisions of Section 409A; (ii) are not otherwise
excluded under Section 409A; and (iii) would otherwise be payable during the
first six-month period following such separation from service shall be paid on
the first business day next following the earlier of (1) the date that is six
months and one day following the Date of termination or (2) the date of the
participant’s death.

    

    

    

    ______________________________________Untitled Document

Exhibit 10.1

  

 

 FIRST AMENDMENT
  TO SECOND AMENDED AND RESTATED

  LOAN AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT TO SECOND AMENDED
  AND RESTATED LOAN AND SECURITY AGREEMENT (this "Agreement") is entered
  into this 19th day of February 2009, by and between SILICON VALLEY BANK ("Bank")
  and SOCKET MOBILE, INC., a Delaware corporation ("Borrower"), whose address
  is 39700 Eureka Drive, Newark, California 94560. 

  

RECITALS

A. Bank and Borrower have
  entered into that certain Second Amended and Restated Loan and Security Agreement
  dated as of December 24, 2008 (as the same has and may continue to be from time
  to time further amended, modified, supplemented or restated, the "Loan Agreement").
  

B. Bank has extended credit
  to Borrower for the purposes permitted in the Loan Agreement. 

C. Borrower has requested
  that Bank (i) extend the Maturity Date, and (ii) amend certain other provisions
  of the Loan Agreement. 

D. Although Bank is under
  no obligation to do so, Bank is willing to (i) extend the Maturity Date and
  (ii) amend certain provisions of the Loan Agreement, all on the terms and conditions
  set forth in this Agreement, so long as Borrower complies with the terms, covenants
  and conditions set forth in this Agreement in a timely manner. 

AGREEMENT

NOW, THEREFORE, in
  consideration of the foregoing recitals and other good and valuable consideration,
  the receipt and adequacy of which is hereby acknowledged, and intending to be
  legally bound, the parties hereto agree as follows: 

1. Definitions. Capitalized
  terms used but not defined in this Agreement, including its preamble and recitals,
  shall have the meanings given to them in the Loan Agreement.

2. Amendments to Loan
  Agreement.

              2.1
  Section 2.1.1 (Financing of Accounts). Section 2.1.1(b) of the Loan Agreement
  is hereby amended in its entirety and replaced with the following: 

              (b)
  Maximum Advances. The aggregate outstanding amount of all Advances, outstanding
  at any time may not exceed One Million Five Hundred Thousand Dollars ($1,500,000).
  Notwithstanding any other term or provision of this Agreement, the aggregate
  amount of Advances hereunder together with the aggregate amount of loan advances
  under the EXIM Agreement shall not at any event exceed Two Million Five Hundred
  Thousand Dollars ($2,500,000).

 

1

                2.2
  Section 2.2 (Collections, Finance Charges, Remittances and Fees). Section
  2.2.4(b) of the Loan Agreement is hereby amended in its entirety and replaced
  with the following:

        

                2.2.4
  Collateral Handling Fee. At all times that the Adjusted
  Quick Ratio is less than 1.25 to 1.00, Borrower will pay to Bank a collateral
  handling fee equal to seven tenths of one percent (0.70%) per month of the Financed
  Receivable Balance for each Financed Receivable outstanding based upon a 360
  day year (the "Collateral Handling Fee"). This fee is charged on a daily
  basis which is equal to the Collateral Handling Fee divided by 30, multiplied
  by the number of days each such Financed Receivable is outstanding, multiplied
  by the outstanding Financed Receivable Balance. The Collateral Handling Fee
  is payable when the Advance made based on such Financed Receivable is payable
  in accordance with Section 2.3 hereof. In computing Collateral Handling Fees
  under this Agreement, all Collections received by Bank shall be deemed applied
  by Bank on account of Obligations three (3) Business Days after receipt of the
  Collections. After an Event of Default, the Collateral Handling Fee will increase
  an additional 0.50% effective immediately upon such Event of Default.          

              2.3
  Section 6.7 (Financial Covenants). Commencing with the monthly reporting
  period for the month ending as of March 31, 2009, Section 6.6(a) of the Loan
  Agreement is hereby amended in its entirety and replaced with the following:
  

              (a)
  Adjusted Quick Ratio. Commencing with the month ending as of March 31, 2009,
  an Adjusted Quick Ratio of not less than (i) 0.75 to 1.00 for the month ending
  March 31, 2009, (ii) 0.90 to 1.00 for the months ending April 30, 2009 and May
  31, 2009 and (iii) 1.00 to 1.00 for the month ending June 30, 2009 and for each
  month thereafter. 

              2.4
  Section 13 (Definitions).

              (a)
  The following definitions set forth in Section 13.1 of the Loan Agreement are
  hereby amended in their entirety and replaced with the following:

              "Availability"
  means, as the date of determination, an amount equal to One Million Five Hundred
  Thousand Dollars ($1,500,000) minus all outstanding Credit Extensions.

              "Facility
  Amount" is One Million Eight Hundred Seventy-Five Thousand Dollars ($1,875,000).
  

              "Maturity
  Date" is March 24, 2010.

              "Total
  Liabilities" is on any day, obligations that should, under GAAP, be classified
  as liabilities on Borrower's consolidated balance sheet, including all Indebtedness,
  but excluding all other Subordinated Debt. 

 

2

                (b)
  The following terms and their respective definitions are hereby added in alphabetical
  order to Section 13.1 of the Loan Agreement: 

              "Adjusted
  Quick Ratio" is a ratio of Quick Assets to Current Liabilities minus Deferred
  Revenue.       

              "Credit
  Extension" is any Advance or any other extension of credit by Bank for Borrower's
  benefit. 

              "Quick
  Assets" is, on any date, Borrower's unrestricted cash and Cash Equivalents
  maintained with Bank, plus net Eligible Accounts paid within ninety (90) days
  of invoice date, determined according to GAAP. 

              2.5
  Compliance Certificate. Exhibit B of the Loan Agreement is replaced in its
  entirety with Exhibit B attached hereto. From and after the date of this Agreement,
  all references in the Loan Agreement, to the Compliance Certificate shall be
  deemed to refer to Exhibit B attached hereto. 

3. Limitation of Amendments.

              3.1
  The amendments set forth in Section 2, above, are effective for
  the purposes set forth herein and shall be limited precisely as written and
  shall not be deemed to (a) be a consent to any amendment, waiver or modification
  of any other term or condition of any Loan Document, or (b) otherwise prejudice
  any right or remedy which Bank may now have or may have in the future under
  or in connection with any Loan Document. 

              3.2
  This Agreement shall be construed in connection with and as part of the Loan
  Documents and all terms, conditions, representations, warranties, covenants
  and agreements set forth in the Loan Documents, except as herein amended, are
  hereby ratified and confirmed and shall remain in full force and effect.

4. Representations and Warranties.
  To induce Bank to enter into this Agreement, Borrower hereby represents and
  warrants to Bank as follows:

              4.1
  Immediately after giving effect to this Agreement (a) the representations and
  warranties contained in the Loan Documents are true, accurate and complete in
  all material respects as of the date hereof (except to the extent such representations
  and warranties relate to an earlier date, in which case they are true and correct
  as of such date), and (b) no Event of Default has occurred and is continuing;

              4.2
  Borrower has the power and authority to execute and deliver this Agreement and
  to perform its obligations under the Loan Agreement, as amended by this Agreement;
  

              4.3
  The organizational documents of Borrower delivered to Bank on the Effective
  Date remain true, accurate and complete and have not been amended, supplemented
  or restated and are and continue to be in full force and effect; 

 

3

                4.4
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, have been duly authorized; 

              4.5
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, do not and will not contravene (a) any law or regulation binding
  on or affecting Borrower, (b) any contractual restriction with a Person binding
  on Borrower, (c) any order, judgment or decree of any court or other governmental
  or public body or authority, or subdivision thereof, binding on Borrower, or
  (d) the organizational documents of Borrower; 

              4.6
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, do not require any order, consent, approval, license, authorization
  or validation of, or filing, recording or registration with, or exemption by
  any governmental or public body or authority, or subdivision thereof, binding
  on Borrower, except as already has been obtained or made; and 

              4.7
  This Agreement has been duly executed and delivered by Borrower and is the binding
  obligation of Borrower, enforceable against Borrower in accordance with its
  terms, except as such enforceability may be limited by bankruptcy, insolvency,
  reorganization, liquidation, moratorium or other similar laws of general application
  and equitable principles relating to or affecting creditors' rights.

5. Counterparts. This Agreement
  may be executed in any number of counterparts and all of such counterparts taken
  together shall be deemed to constitute one and the same instrument.

6. Effectiveness. This Agreement
  shall be deemed effective upon (a) the due execution and delivery to Bank of
  this Agreement by each party hereto, (b) the due execution and delivery to Bank
  of that certain First Amendment to Export-Import Bank Loan and Security Agreement,
  dated as of the date hereof, by each party hereto, (c) Borrower's payment of
  the EXIM Bank amendment and renewal fee in an amount equal to Three Thousand
  Dollars ($3,000), and (d) payment of Bank's legal fees and expenses in connection
  with the negotiation and preparation of this Agreement. 

IN WITNESS WHEREOF, the parties
  hereto have caused this Agreement to be duly executed and delivered as of the
  date first written above. 

BANK 

  

  SILICON VALLEY BANK 

  By: /s/ Aman Johal 

  Name: Aman Johal 

  Title: Relationship Manager 

  

  BORROWER

  

  SOCKET MOBILE, INC. 

  By: /s/ David W. Dunlap

  Name: David W. Dunlap

  Title: CFO 

 

4

  EXHIBIT B

  

  SPECIALTY FINANCE DIVISION

  Compliance Certificate

  I, an authorized officer of Socket Mobile, Inc. ("Borrower") certify
  under the Loan and Security Agreement (the "Agreement") between Borrower
  and Silicon Valley Bank ("Bank") as follows (all capitalized terms used
  herein shall have the meaning set forth in the Agreement):

Borrower represents and warrants
  for each Financed Receivable:

Each Financed Receivable is an Eligible
  Account.

Borrower is the owner with legal
  right to sell, transfer, assign and encumber such Financed Receivable;

The correct amount is on the Invoice
  Transmittal and is not disputed;

Payment is not contingent on any
  obligation or contract and Borrower has fulfilled all its obligations as of
  the Invoice Transmittal date;

Each Financed Receivable is based
  on an actual sale and delivery of goods and/or services rendered, is due to
  Borrower, is not past due or in default, has not been previously sold, assigned,
  transferred, or pledged and is free of any liens, security interests and encumbrances
  other than Permitted Liens;

There are no defenses, offsets,
  counterclaims or agreements for which the Account Debtor may claim any deduction
  or discount;

It reasonably believes no Account
  Debtor is insolvent or subject to any Insolvency Proceedings;

It has not filed or had filed against
  it Insolvency Proceedings and does not anticipate any filing;

Bank has the right to endorse and/
  or require Borrower to endorse all payments received on Financed Receivables
  and all proceeds of Collateral.

No representation, warranty or other
  statement of Borrower in any certificate or written statement given to Bank
  contains any untrue statement of a material fact or omits to state a material
  fact necessary to make the statement contained in the certificates or statement
  not misleading.

 

 

  Additionally, Borrower represents and warrants as follows:

Borrower and each Subsidiary is
  duly existing and in good standing in its state of formation and qualified and
  licensed to do business in, and in good standing in, any state in which the
  conduct of its business or its ownership of property requires that it be qualified
  except where the failure to do so could not reasonably be expected to cause
  a Material Adverse Change. The execution, delivery and performance of the Loan
  Documents have been duly authorized, and do not conflict with Borrower's organizational
  documents, nor constitute an event of default under any material agreement by
  which Borrower is bound. Borrower is not in default under any agreement to which
  or by which it is bound in which the default could reasonably be expected to
  cause a Material Adverse Change.

Borrower has good title to the Collateral,
  free of Liens except Permitted Liens. All inventory is in all material respects
  of good and marketable quality, free from material defects.

Borrower is not an "investment company"
  or a company "controlled" by an "investment company" under the Investment Company
  Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is a "holding
  company" or an "affiliate" of a "holding company" or a "subsidiary company"
  of a "holding company" as each term is defined and used in the Public Utility
  Holding Company Act of 2005. Borrower is not engaged as one of its important
  activities in extending credit for margin stock (under Regulations X, T and
  U of the Federal Reserve Board of Governors). Borrower has complied in all material
  respects with the Federal Fair Labor Standards Act. Borrower has not violated
  any laws, ordinances or rules, the violation of which could reasonably be expected
  to cause a Material Adverse Change. None of Borrower's or any Subsidiary's properties
  or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's
  knowledge, by previous Persons, in disposing, producing, storing, treating,
  or transporting any hazardous substance other than legally. Borrower and each
  Subsidiary has timely filed all required tax returns and paid, or made adequate
  provision to pay, all material taxes, except those being contested in good faith
  with adequate reserves under GAAP. Borrower and each Subsidiary has obtained
  all consents, approvals and authorizations of, made all declarations or filings
  with, and given all notices to, all government authorities that are necessary
  to continue its business as currently conducted except where the failure to
  obtain or make such consents, declarations, notices or filings would not reasonably
  be expected to cause a Material Adverse Change. 

 

 

  Please indicate compliance status by circling Yes/No under "Complies" column.

  

  

	Reporting Covenant	Required	Complies
	Monthly financial
      statements with Compliance Certificate 	Monthly within
      30 days	Yes     No
	Annual financial
      statement (CPA Audited) + CC	FYE within 120
      days	Yes     No
	10 Q, 10 K and
      8-K	Within 5 days after
      filing with SEC	Yes     No
	Borrowing Base
      Certificate A/R & A/P Agings	Monthly within
      30 days	Yes     No
	The
      following Intellectual Property was registered after the Closing Date (if
      no registrations, state "None")

  

	Financial Covenants	Required	Actual	Complies
	Maintain
      on a Monthly Basis: 	_
      	_
      	_
      
	Minimum
      Liquidity (as of February 28, 2009)	$250,000	$_________________	Yes     No
	Adjusted
      Quick Ratio of not less than the following for the following months ending
      	0.75
      to 1.00	_
      	_
      
	March
      31, 2009	0.75
      to 1.00	___:1.00	Yes     No
	April
      30, 2009	0.90
      to 1.00	___:1.00	Yes     No
	May
      31, 2009	0.90
      to 1.00	___:1.00	Yes     No
	June
      30, 2009 and for each month thereafter	1.00
      to 1.00	___:1.00	Yes     No

 

All representations and warranties
  in the Agreement are true and correct in all material respects on this date,
  and Borrower represents that there is no existing Event of Default.

Sincerely, 

Socket Mobile, Inc. 

____________________________________
  

  Signature 

____________________________________
  

  Title 

____________________________________
  

  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]