Document:

Exhibit 10.9

SENIOR SUBORDINATED
REVOLVING CREDIT AGREEMENT

BY AND BETWEEN

CLARIENT, INC.

AND

SAFEGUARD DELAWARE, INC.

DATED AS OF MARCH 7, 2007

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  LOANS TO BORROWER; ISSUANCE OF WARRANTS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.1. Advances

  	
   

  	
  6

  
	
   

  	
   

  	
  2.2. Use of
  Proceeds

  	
   

  	
  7

  
	
   

  	
   

  	
  2.3. Interest

  	
   

  	
  7

  
	
   

  	
   

  	
  2.4. Payments

  	
   

  	
  7

  
	
   

  	
   

  	
  2.5. Manner of
  Payment

  	
   

  	
  7

  
	
   

  	
   

  	
  2.6. Prepayments

  	
   

  	
  7

  
	
   

  	
   

  	
  2.7. Issuance of
  Warrants

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  CLOSING; DELIVERIES; CONDITIONS TO ADVANCE

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.1. Closing
  Date

  	
   

  	
  8

  
	
   

  	
   

  	
  3.2. Closing
  Deliveries and Actions

  	
   

  	
  9

  
	
   

  	
   

  	
  3.3. Conditions
  to Subsequent Advances

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES OF BORROWER

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.1.
  Organization and Qualification

  	
   

  	
  10

  
	
   

  	
   

  	
  4.2. Power and
  Authority

  	
   

  	
  10

  
	
   

  	
   

  	
  4.3.
  Subsidiaries and Affiliates

  	
   

  	
  10

  
	
   

  	
   

  	
  4.4.
  Capitalization

  	
   

  	
  10

  
	
   

  	
   

  	
  4.5.
  Authorization

  	
   

  	
  11

  
	
   

  	
   

  	
  4.6. No
  Violations or Conflicts

  	
   

  	
  11

  
	
   

  	
   

  	
  4.7. Consents
  and Approvals

  	
   

  	
  11

  
	
   

  	
   

  	
  4.8. Financial
  Statements; Disclosure

  	
   

  	
  11

  
	
   

  	
   

  	
  4.9. Absence of
  Changes

  	
   

  	
  12

  
	
   

  	
   

  	
  4.10. Litigation

  	
   

  	
  12

  
	
   

  	
   

  	
  4.11.
  Intellectual Property

  	
   

  	
  13

  
	
   

  	
   

  	
  4.12. Title to
  Assets, Properties and Rights

  	
   

  	
  13

  
	
   

  	
   

  	
  4.13. Compliance
  with Laws; Legal Requirements

  	
   

  	
  13

  
	
   

  	
   

  	
  4.14. Employees
  and Labor Matters

  	
   

  	
  14

  
	
   

  	
   

  	
  4.15. Brokers
  and Finders

  	
   

  	
  14

  
	
   

  	
   

  	
  4.16. Tax
  Matters

  	
   

  	
  14

  
	
   

  	
   

  	
  4.17. Books and
  Records

  	
   

  	
  15

  
	
   

  	
   

  	
  4.18. Offering
  Valid

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  COVENANTS

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.1. Negative
  Covenants

  	
   

  	
  15

  
	
   

  	
   

  	
  5.2. Affirmative
  Covenants

  	
   

  	
  16

  
	
   

  	
   

  	
  5.3. Right of
  First Offer and Refusal

  	
   

  	
  18

  

 

 i
 

 

	
  

  	
   

  	
  5.4. No
  Third-Party Rights

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  SURVIVAL OF REPRESENTATIONS, WARRANTIES AND
  AGREEMENTS, ETC.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  EVENTS OF DEFAULT; REMEDIES

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.1. Events of
  Default

  	
   

  	
  18

  
	
   

  	
   

  	
  7.2. Remedies

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.1. Governing
  Law; Submission to Jurisdiction

  	
   

  	
  20

  
	
   

  	
   

  	
  8.2.
  Assignments; Successors; Third Party Rights

  	
   

  	
  20

  
	
   

  	
   

  	
  8.3. Entire Agreement; Amendment

  	
   

  	
  20

  
	
   

  	
   

  	
  8.4. Notices

  	
   

  	
  20

  
	
   

  	
   

  	
  8.5. Failure or
  Indulgence Not Waiver; Remedies Cumulative

  	
   

  	
  21

  
	
   

  	
   

  	
  8.6.
  Severability

  	
   

  	
  21

  
	
   

  	
   

  	
  8.7. Section
  Headings; Construction

  	
   

  	
  22

  
	
   

  	
   

  	
  8.8.
  Counterparts

  	
   

  	
  22

  
	
   

  	
   

  	
  8.9. Fees and
  Expenses

  	
   

  	
  22

  
	
   

  	
   

  	
  8.10.
  Reinstatement

  	
   

  	
  22

  
	
   

  	
   

  	
  8.11. Payment on
  Non-Business Days

  	
   

  	
  22

  
	
   

  	
   

  	
  8.12. Time of
  Day

  	
   

  	
  22

  
	
   

  	
   

  	
  8.13. WAIVER OF
  JURY TRIAL

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  LENDER REPRESENTATIONS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9.1. Lender Representations

  	
   

  	
  23

  

 

	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of Note

  
	
  Exhibit B-1

  	
   

  	
  -

  	
   

  	
  Form of Commitment Fee Warrant ($.01 Exercise Price)

  
	
  Exhibit B-2

  	
   

  	
  -

  	
   

  	
  Form of Commitment Fee Warrant (Discounted Market
  Price)

  
	
  Exhibit B-3

  	
   

  	
  -

  	
   

  	
  Form of Usage Fee Warrant

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Borrowing Request

  

 

 ii

SENIOR SUBORDINATED
REVOLVING CREDIT AGREEMENT

THIS SENIOR SUBORDINATED
REVOLVING CREDIT AGREEMENT (this “Agreement”)
is made and entered into as of March 7, 2007, by and among CLARIENT, INC, a Delaware corporation (“Borrower”), and SAFEGUARD DELAWARE, INC., a Delaware
corporation (the “Lender”).

RECITALS:

WHEREAS, Borrower has
requested, and Lender has agreed to provide to Borrower a subordinated
revolving credit facility in the maximum aggregate principal amount of
$12,000,000, on the terms and conditions set forth herein;

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

1.                                      Definitions.

For purposes of this Agreement, the following terms
shall have the following meanings:

“Advance”
and “Advances” have the respective meanings set forth in
Section 2.1(a) hereof.

“Agreement”
has the meaning set forth in the Preamble.

“Balance Sheet Date”
has the meaning set forth in Section 4.8 hereof.

“Balance Sheet”
has the meaning set forth in Section 4.8 hereof.

“Bankruptcy Law”
has the meaning set forth in Section 7.1(b) hereof.

“Borrower”
has the meaning set fort in the Preamble.

“Borrowing Request” means the form to be provided by
Borrower to Lender in connection with each requested Advance, which shall be in
the form of Exhibit C attached hereto.

“Business Day”
means any day other than a Saturday, Sunday or legal holiday in the State of
Delaware or the State of California.

“Capitalized Lease”
means, with respect to any Person, any lease of such Person as lessee that, in
accordance with GAAP, is required to be classified and accounted for as a
capital lease on a balance sheet of that Person.

“Capitalized Lease
Obligation” means, with respect to any Capitalized Lease of any
Person, the amount of the obligation of the lessee of such Capitalized Lease
that , in accordance with GAAP, would appear on a balance sheet of such lessee
in respect of such Capitalized Lease.

“Closing”
has the meaning set forth in Section 3.1 hereof.

“Closing Date”
has the meaning set forth in Section 3.1 hereof.

“CLRT Asset Sale” means the sale of
certain assets relating to Borrower’s business of developing, manufacturing,
and selling telepathology, virtual microscopy and/or automated imaging
instruments, including

without limitation 100%
of the membership interests of CLRT, pursuant to (and as such assets are
described in) an asset purchase agreement substantially in the draft form
attached to that certain consent letter, dated as of March 7, 2007, by and
among GECC, as lender, and the Borrower, Clarient Diagnostic Services, Inc.,
and CLRT Acquisition, LLC, as borrowers, as Exhibit A thereto.

“Code” means the Internal Revenue
Code of 1986, as amended from time to time, and the rules and regulations
promulgated thereunder.

“Comerica Agreement”
means that certain Loan Agreement by and between Borrower and Comerica Bank dated
as of February 13, 2003, as amended, including without limitation by that
certain First Amendment to Loan Agreement dated as of October 21, 2003, that
certain Second Amendment to Loan Agreement dated as of January 22, 2004, that
certain Third Amendment to Loan Agreement dated as of January 31, 2005, that
certain Fourth Amendment to Loan Agreement dated as of March 11, 2005, that
certain Consent and Waiver dated as of July 13, 2005, that certain letter
agreement dated as of January 26, 2006, that certain Waiver and Fifth Amendment
to Loan Agreement dated as of August 1, 2006, that certain Sixth Amendment to
Loan Agreement dated as of February 28, 2006, that certain Seventh Amendment to
Loan Agreement dated as of January 17, 2007, and that certain Waiver and Eighth
Amendment to Loan Agreement dated as of February 28, 2007, and all documents,
instruments and agreements executed and delivered in connection therewith, as
the same may be further amended from time to time, with the prior written
consent of Lender, which consent shall not be unreasonably withheld or delayed.

“Commitment” means the maximum aggregate principal
amount  which may be borrowed
hereunder, being, as of the date hereof, Twelve Million Dollars ($12,000,000),
as the same may be reduced from time to time pursuant to and in accordance with
Section 2.6 hereof.

“Commitment Fee Warrants”
has the meaning set forth in Section 2.7(a) hereof.

“Common Stock” means the common stock, par value $0.01,
of Borrower.

“Default”
means an event, condition, or circumstance the occurrence of which would, with
the passage of time, the giving of notice, or both, constitute an Event of
Default.

“Encumbrances”
means all claims, liens, charges, security interests, pledges, mortgages, or
other restrictions or encumbrances.

“Environmental Laws”
means any and all applicable federal, state, local, and foreign laws and
regulations relating to the protection of human health and safety or emissions,
discharge, releases, threatened releases, removal, remediation, or abatement of
pollutants, contaminants, chemicals, or industrial, hazardous, or toxic
substances or wastes into or in the environment (including, without limitation,
air, surface water, ground water, or land) or otherwise used in connection with
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling of pollutants, contaminants, hazardous or toxic
substances or wastes, as defined under such applicable laws.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

“Event of Default”
means an event described in Section 7.1 hereof.

“Financial Statements”
has the meaning set forth in Section 4.8 hereof.

 2
 

“GAAP” means
United States generally accepted accounting principles applied on a consistent
basis.

“GE Capital”
means General Electric Capital Corporation, a Delaware corporation.

“GE Capital Facility” means, collectively, (a) that certain
Loan and Security Agreement, dated as of September 29, 2006, by and among
Borrower, Clarient Diagnostic Services, Inc., CLRT Acquisition, LLC,  and GE Capital; and (b) (i) that certain
Master Lease Agreement, dated as of June 23, 2004, by and between ChromaVision
Oncology Services, Inc. (predecessor to Clarient Diagnostic Services, Inc., an
affiliate of Borrower) and GE Capital, and (ii) that certain Master Security
Agreement, dated as of July 15, 2003, by and between Borrower and GE Capital,
and, in each case, all documents, instruments and agreements executed and
delivered in connection therewith, as the same may be further amended from time
to time, with the prior written consent of Lender, which consent shall not be
unreasonably withheld or delayed.

“Governmental Authority”
means any court or any federal, state, municipal, or other domestic or foreign
government or governmental or regulatory department, commission, board bureau,
agency, authority, or instrumentality.

“Guaranteed Obligations”
means as to any Person, without duplication, any obligation of such Person
guaranteeing, providing comfort or otherwise supporting any Indebtedness,
lease, dividend, or other obligation (“primary obligation”)
of any other Person in any matter; provided that the term Guaranteed
Obligations shall not include endorsements for collection or deposit in the
ordinary course of business.  The amount
of any Guaranteed Obligation at any time shall be deemed to be an amount equal
to the lesser at such time of (x) the stated or determinable amount of the
primary obligation in respect to which such Guaranteed Obligation is incurred
and (y) the maximum amount for which such Person may be liable pursuant to the
terms of the instrument embodying such Guaranteed Obligation, or, if not stated
or determinable, the maximum reasonably anticipated liability (assuming full
performance) in respect thereof.

“Intangible Assets”
means all assets of Borrower which would be classified in accordance with GAAP
as intangible assets, including without limitation, all franchises, licenses,
permits, patents, patent applications, copyrights, trademarks, trade-names,
goodwill, experimental or organization expenses and other like intangibles, the
cash surrender value and other like intangibles of any life insurance policy,
treasury stock and unamortized debt discount.

“Indebtedness”
of a Person means at any date, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, or upon which interest
payments are customarily made, (c) all obligations of such Person to pay the
deferred purchase price of property or services incurred in the ordinary course
of business if the purchase price is due more than six (6) months from the date
the obligation in incurred, (d) all Capitalized Lease Obligations of such
Person, (e) the principal balance outstanding under any synthetic lease, tax
retention, operating lease, off-balance sheet loan or similar off-balance sheet
financing product, (f) all obligations of such Person to purchase securities
(or other property) which arise out of or in connection with the issuance or
sale of the same or substantially similar securities (or property), (g) all
contingent or non-contingent obligations of such Person to reimburse any bank
or other Person in respect of amounts paid under a letter of credit or similar
instrument, (h) all equity securities of such Person subject to repurchase or
redemption otherwise than at the sole option of such Person, (i) all “earnouts” and similar payment obligations of such Person,
(j) all Indebtedness secured by a Lien on any asset of such Person, whether or
not such Indebtedness if otherwise an obligation of such Person, (k) all
obligations of such Person under any foreign exchange contract, currency swap
agreement, interest rate

 3
 

swap, cap or collar
agreement or other similar agreement or arrangement designed to alter the risks
of that Person arising from fluctuations in currency values or interest rates,
in each case whether contingent or matured, (l) all Guaranteed Obligations of
such Person; and (m) all obligations of such Person to trade creditors incurred
in the ordinary course of business and more than ninety (90) days past due.

“Intellectual
Property” has the meaning set forth in Section 4.11(a) hereof.

“Laws”
has the meaning set forth in Section 4.13 hereof.

“Lender”
has the meaning set forth in the Preamble hereto.

“Licenses
and Permits” has the meaning set forth in Section 4.13(b)
hereof.

“Liquidity Event” means (a) the liquidation, dissolution
or winding up of Borrower, whether voluntary or involuntary, (b) a sale of all
or substantially all of the assets of Borrower, or (c) a merger or acquisition
of Borrower by another Person by means of any transaction or series of related
transactions (including any reorganization, merger or consolidation) where the
holders of the voting securities of Borrower immediately preceding such
transaction or series of transactions own directly or indirectly, following
such transaction or series of transactions, less than fifty percent (50%) of
the voting securities of Borrower or the surviving entity in such transaction
or series of transactions.

“Loan”
means, collectively, the aggregate amount of all Advances from time to time
outstanding hereunder.

“Loan
Documents” means this Agreement, the Note, the Warrants, the
Subordination Agreements, and any other agreements, documents, instruments and
writings now or hereafter existing, creating, evidencing, guarantying, securing
or relating to any of the liabilities of Borrower to Lender pursuant to and in
connection with this Agreement, together with all amendments, modifications,
renewals or extensions thereof.

“Material
Adverse Effect” means a material adverse change in, or a
material adverse effect on, the business, operations, properties, assets,
liabilities, financial condition or results of operations of Borrower and/or
its Subsidiaries, taken as a whole, or Borrower’s ability to perform its
obligations under this Agreement, the Note or the Warrants.

“Maturity
Date” means the later of (a) December 8, 2008 or (b) ninety-one
(91) days after the date on which all Indebtedness owing under the GE Capital
Facility shall have been paid in full and GE Capital shall have no obligation
to extend or make loans under the GE Capital Facility.

“Note”
means that certain subordinated Revolving Credit Note issued by Borrower in
favor of Lender pursuant to this Agreement, in the form of Exhibit A
hereto.

“Order” means any order, execution, writ, injunction,
judgment, decree, ruling, assessment, or arbitration award.

“Outstanding
Amounts” means the aggregate principal amount of Indebtedness,
plus interest thereon, outstanding hereunder and under the Note on any date of
determination.

“Permitted Liens” means
(a) deposits or pledges to secure obligations under workmen’s
compensation, social security or similar laws, or under unemployment insurance,
(b) deposits or pledges to secure bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory

 4
 

obligations,
surety and appeal bonds and other obligations of like nature arising in the
ordinary course of business, (c) mechanic’s, workmen’s materialmen’s or
other like Encumbrances attaching only to equipment and real property arising
in the ordinary course of business with respect to obligations which are not
due, or which are being contested in good faith by appropriate proceedings
which suspend the collection thereof and in respect of which adequate reserves
have been made in accordance with GAAP (provided that such proceedings, do not
in Lender’s reasonable discretion, involve any substantial risk of the sale,
loss or forfeiture of such property or assets or any interest therein),
(d) Liens set forth in Schedule 4.12(a), (e) Encumbrances
being contested in good faith, (f) Liens created or assumed in connection
with the financing or acquisition of capital assets in an aggregate principal
amount outstanding not greater than $500,000 at any time; provided that such
liens secure only such assets acquired and do not exceed one hundred percent
(100%) of the purchase price of the subject assets; and (g) attachment or
judgment Encumbrances which individually or when aggregated with all other
attachments and judgments exceed by more than $50,000 any insurance coverage
applicable thereto (and as to which the insurance company has acknowledged
coverage in writing), subject to customary deductibles and continue unsatisfied
or unstayed for a period of ten (10) days.

“Permitted
Sale/Equity Transaction” means an asset sale by Borrower or any
Subsidiary of Borrower or issuance of equity by Borrower which results in
Borrower’s receipt of net proceeds in excess of $7,000,000, including, without limitation, the CLRT
Asset Sale.

“Person” means any
individual, partnership, corporation, limited liability company, association,
joint stock company, trust, joint venture, unincorporated organization or
governmental entity or any department, agency, or political subdivision
thereof.

“Required
Consents” has the meaning set forth in Section 4.7 hereof.

“Returns”
has the meaning set forth in Section 4.16 hereof.

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

“Securities
Act” means the Securities Act of 1933, as amended.

“Securities Laws”
means the Securities Act, the Securities Exchange Act of 1934, Sarbanes-Oxley
and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the Public
Company Accounting Oversight Board, as each of the foregoing may be amended and
in effect on any applicable date hereunder.

“Subordination Agreements”
means, collectively, (a) that certain Subordination and Intercreditor Agreement
dated as of even date herewith, by and among Borrower, Comerica Bank, and
Lender; and (b) that certain Subordination and Intercreditor Agreement
dated as of even date herewith, by and among Borrower, GE Capital, and Lender.

“Subsidiary”
means any
corporation, company or partnership in which (i) any general partnership
interest or (ii) more than 50% of the stock or other units of ownership
which by the terms thereof has the ordinary voting power to elect the Board of
Directors, managers or trustees of the entity, at the time as of which any
determination is being made, is owned by Borrower, either directly or through
another Subsidiary.

“Tax” as used in
this Agreement, the term “Tax” means any of the Taxes and the term “Taxes” means, with respect to any
Person, (i) all applicable domestic and foreign income taxes (including any tax

 5
 

on
or based upon net income, or gross income, or income as specially defined, or
earnings, or profits, or selected items of income, earnings or profits) and all
applicable domestic and foreign gross receipts, sales, use, ad valorem,
transfer, franchise, license, withholding, payroll, employment, excise,
severance, stamp, occupation, premium, environmental, property or windfall
profits taxes, alternative or add-on minimum taxes, customs duties or other
taxes, fees, assessments or charges of any kind whatsoever, together with any
interest and any penalties, additions to tax or additional amounts imposed by
any taxing authority (domestic or foreign) on such Person and (ii) any
liability for the payment of any amount of the type described in the
immediately preceding clause (i) as a result of being a “transferee” (within
the meaning of Section 6901 of the Code or any other applicable law) of another
Person or a member of an affiliated, consolidated or combined group.

“Usage Fee Warrants”
has the meaning set forth in Section 2.7(a) hereof.

“Warrants” means, collectively, the Commitment Fee
Warrants and the Usage Fee Warrants, if any.

2.                                      LOANS
TO BORROWER; ISSUANCE OF WARRANTS.

2.1.  Advances.

(a)                                  Generally.  Subject to the terms and conditions of this
Agreement and the Subordination Agreements, including without limitation
receipt of the closing deliveries specified in Section 3.2 and the other
conditions specified in Section 3.3, Lender shall advance funds to Borrower
(each such advance, individually, an “Advance”,
and all such advances, the “Advances”)
by wire transfer of immediately available funds via Federal Reserve System to:

	
  Recipient Bank:

  	
  Comerica Bank

  
	
   

  	
  11512 El Camino Real

  
	
   

  	
  Suite 350B

  
	
   

  	
  San Diego, CA 92130

  
	
   

  	
  858 509-2399

  
	
   

  	
  Contact — Hang Landrum

  
	
   

  	
   

  
	
  ABA#:

  	
  121137522

  
	
  Account Name:

  	
  Clarient, Inc. - Money Market

  
	
  Account #:

  	
  1892035252

  

 

(b)                                 Advance Procedures.

(i)                                     Subject to and
upon the terms and conditions of this Agreement, including without limitation
the conditions specified in Section 3.3, Borrower may request an Advance, in a
minimum principal amount of $1,000,000 (or the total remaining Commitment, if
less), up to an aggregate outstanding amount for all Advances not to exceed the
Commitment.  Subject to the terms and
conditions of this Agreement, amounts borrowed pursuant to this
Section 2.1 may be repaid and reborrowed at any time prior to the Maturity
Date, at which time all Advances then outstanding shall be immediately due and
payable.

(ii)                                  Whenever Borrower desires an Advance,
Borrower will notify Lender by facsimile transmission or email no later than
2:00 p.m. Eastern time, not less than one (1) Business Day prior to the
Business Day on which the Advance is to be funded.  Each such notification shall be in the form
of a Borrowing Request in substantially the form of Exhibit C
hereto.  Lender shall wire the amount

 6
 

of
Advances made under this Section 2.1(b) to the wire address set forth in
Section 2.1(a), or to such other wire address as Borrower has advised Lender in
writing in connection with such Borrowing Request.

2.2.  Use of Proceeds.  The proceeds from the Note shall be used by
Borrower for general working capital and business purposes.

2.3.  Interest.  Interest shall accrue on the unpaid principal balance of each Advance
at the rate of twelve percent (12%) per annum, accruing daily.  Interest shall be capitalized quarterly, and
shall otherwise be payable in the manner provided in Section 2.4 below.  Interest shall be cumulative and shall be
calculated on the basis of a year of 365 or 366 days, for the actual number of
days elapsed.

2.4.  Payments.

(a)                                  Principal Generally.  Subject to the terms and conditions of the
Subordination Agreements and to Section 7 and Section 2.6(b) hereof, the
principal balance outstanding hereunder, together with all accrued and unpaid
interest thereon, shall be due and payable on the Maturity Date.

(b)                                 Interest.  Subject to the
terms and conditions of the Subordination Agreements, payments of accrued interest on the principal balance outstanding
hereunder from time to time, shall be made (i) on the Maturity Date, and (ii)
if earlier, immediately upon receipt by the Borrower of any deferred proceeds
of, or other deferred or escrowed consideration with respect to, any Permitted
Sale/Equity Transaction, together with accrued and unpaid fees and costs
incurred by Lender in connection with this Agreement and the transactions
contemplated hereby.

2.5.  Manner of Payment.  All payments and prepayments of principal and
interest shall be made by wire of immediately available funds as directed by
Lender pursuant to written instructions provided to Borrower from time to
time.  If any payment of principal or
interest required hereunder is due on a day that is not a Business Day, such
payment shall be due on the next succeeding Business Day, and such extension of
time shall be taken into account in calculating the amount of interest payable
hereunder.  All payments and prepayments shall be
credited first to accrued and unpaid interest, and then to the outstanding
principal amount of Advances.

2.6.  Prepayments.

(a)                                  Optional Prepayments.  Subject to the terms and conditions of the
Subordination Agreements, Borrower may prepay all or any portion
of the outstanding principal balance due under the Note and any interest
accrued thereon, at any time and from time to time, without premium or penalty,
provided that Borrower shall have given Lender not less than one (1) Business
Day prior written notice of its intent to so prepay, and the amount of such prepayment.  Any such prepayment shall not reduce the
Commitment unless so requested in writing by Borrower.

(b)                                 Mandatory Prepayments and Reduction of Commitment.  Subject to the terms and
conditions of the Subordination Agreements:

(i)                                     immediately upon the closing of a Permitted Sale/Equity Transaction,
Borrower shall cause to be paid to Lender a one-time payment of the outstanding
principal in an amount not to exceed the lesser of $6,000,000 or fifty percent
(50%) of the cash proceeds received at the closing of such Permitted
Sale/Equity Transaction.  Upon such
occurrence the Commitment shall be immediately and irrevocably reduced to Six
Million Dollars ($6,000,000).

 7
 

(ii)                                  Immediately upon the consummation of a Liquidity Event (other than a
Permitted Sale/Equity Transaction), all amounts outstanding hereunder shall be
paid in full and the Commitment shall be immediately and irrevocably
terminated.

2.7.  Issuance
of Warrants.

(a)                                  Commitment Fee
Warrants.  Lender shall receive, in
connection with the Closing warrants (such warrants, the “Commitment Fee Warrants”):

(i)                                     in the form of Exhibit
B-1 attached hereto, to purchase shares of Common Stock, exercisable in the
sole discretion of the holder thereof. 
Such Warrants shall entitle, but not obligate, the holder thereof to
purchase 125,000 shares of Common Stock of Borrower at an exercise price of
$.01 per share.

(ii)                                  in the form of Exhibit
B-2 attached hereto, to purchase shares of Common Stock, exercisable in the
sole discretion of the holder thereof. 
Such Warrants shall entitle, but not obligate, the holder thereof to
purchase 62,500 shares of Common Stock of Borrower at an exercise price equal
to 85% of the trailing ten-day average closing price of Common Stock of the
Borrower on the date prior to the Closing Date.

(b)                                 Usage Fee Warrants.  Lender shall receive, in connection with each
Advance, warrants (such warrants, the “Usage Fee
Warrants”), in the form of Exhibit B-3 attached hereto,
to purchase shares of Common Stock, exercisable in the sole discretion of the
holder thereof.  Such Usage Fee Warrants
shall entitle, but not obligate, the holder thereof to purchase 31.25 shares of
Common Stock of Borrower for each $1,000 in principal subject to such Advance,
at an exercise price of $.01 per share; provided, however, that for the
avoidance of doubt, Usage Fee Warrants shall only be issuable with respect to
incremental Advances which result in an increase of the aggregate principal
Indebtedness under this Agreement in excess of the previous maximum amount of  aggregate principal Indebtedness incurred by
Borrower under this Agreement.  By way of
example, if (i) Borrower initially receives an advance of $2,000,000, Lender
would be entitled to Usage Fee Warrants to purchase 62,500 shares of Common
Stock and (ii) Borrower subsequently prepays such advances and thereafter
receives Advances of $5,000,000, Lender would be entitled to receive additional
Usage Fee Warrants to purchase 93,750 shares of Common Stock (correlating to
the $3,000,000 of Indebtedness in excess of the previously borrowed $2,000,000
of Indebtedness).  Notwithstanding the
foregoing, in the event (i) Lender has received Usage Fee Warrants to purchase
more than 187,500 shares of Common Stock (the “Usage Fee Cap”) (as a result of Advances in excess of $6,000,000)
and (ii) that, on or prior to May 15, 2007, the Commitment is reduced to
$6,000,000 and the mandatory prepayment has been paid, each as required by
Section 2.6(b)(i), then Lender shall automatically upon such reduction forfeit
and return to Borrower for cancellation any Usage Fee Warrants issued to it in
excess of the Usage Fee Cap (and, to the extent Lender has exercised any such
Usage Fee Warrants which it would have been required to forfeit and return to
Borrower as provided in this sentence, Lender shall forfeit and return to
Borrower for cancellation the shares of Common Stock issued to it upon exercise
of such Usage Fee Warrants).

(c)                                  Registrable
Securities.  All of the Common Stock
issuable upon the exercise of the Warrants thereof, shall constitute
Registrable Securities under Borrower’s Registration Rights Agreement with
Lender dated November 8, 2005.

3.                                      CLOSING; DELIVERIES; conditions to Advance.

3.1.  Closing Date.  The closing of this Agreement (the “Closing”) is taking place on the
date hereof (“Closing Date”) and is being
held at the offices of Pepper Hamilton LLP, 3000 Two Logan

 8
 

Square, 18th and Arch Streets, Philadelphia, Pennsylvania,
19103 contemporaneously with the execution of this Agreement.

3.2.  Closing Deliveries and Actions.  The parties acknowledge the following
deliveries and other actions at the Closing:

(a)                                  Borrower has
delivered or caused to be delivered to Lender a fully executed counterpart of
this Agreement, the Note, and the Commitment Fee Warrants and Lender has delivered
or caused to be delivered to Borrower a fully executed counterpart to this
Agreement;

(b)                                 Borrower has delivered
a certificate, executed on behalf of Borrower by the Chief Executive Officer
thereof, dated as of the date hereof, certifying the incumbency of each of the
officers of Borrower executing this Agreement, and all other documents,
instruments or certificates to be executed and delivered by Borrower, and
attaching certified copies of (i) the resolutions of a special committee of the
Board of Directors of Borrower approving this Agreement, the Warrants, and the
other transactions contemplated hereby, (ii) true, complete, and accurate
copies of each of (x) the Certificate of Incorporation of Borrower, certified
by the Secretary of State of the State of Delaware, and (y) the Bylaws of
Borrower, each of which remain in full force and effect, without modification,
as of the date of the Closing, and (iii) a certificate of good standing, issued
by the Secretary of State of each jurisdiction in which Borrower is qualified
to and conducts business, certifying that Borrower is in good standing, as of a
recent date prior to the Closing, in each such jurisdiction;

(c)                                  Borrower, Lender and
Comerica shall have entered into a Subordination Agreement in form and
substance satisfactory to the parties;

(d)                                 Borrower, Lender and
GE Capital shall have entered into a Subordination Agreement in form and
substance satisfactory to the parties;

(e)                                  Borrower and Lender
have delivered a fully executed Amendment to Safeguard Reimbursement Agreement;
and

(f)                                    Borrower shall have
paid to Lender all professional fees and out-of pocket costs and expenses
payable by Lender to third parties in connection with the transactions
contemplated hereby and set forth in an invoice delivered to Borrower at least
one (1) Business Day prior to the Closing Date.

3.3.  Conditions to Subsequent Advances.  It shall be a condition to Lender’s funding
any subsequent Advance:

(a)                                  Borrower shall have
delivered to Lender a Borrowing Request;

(b)                                 Borrower has delivered
to Lender a certificate, executed on behalf of Borrower by an officer thereof,
dated as of the date of such proposed Advance, certifying that that no Default
or Event of Default has occurred and is continuing on the date of such Advance
or will be caused by such Advance; and that each of Borrower’s representations
and warranties made herein and in the other Loan Documents shall be true and
correct in all material respects as if remade on the date of such Advance
(unless they relate to a specific date, in which case they shall be true and
correct in all material respects on and as of such date); and

(c)                                  all amounts
(including, without limitation, fees) required to have been paid pursuant to
this Agreement, the Note, and the Warrants (to the extent same are permitted to
be paid pursuant to the terms and conditions of the Subordination Agreements),
shall have been paid.

 9
 

4.                                      REPRESENTATIONS AND WARRANTIES OF Borrower.

Borrower represents and
warrants to, and covenants with, Lender, that the following representations and
warranties are true and correct in all material respects, as of the date
hereof.

4.1.  Organization and Qualification.  Borrower is a corporation, duly organized,
validly existing and in good standing under the laws of the State of Delaware.  Each Subsidiary has been duly formed and is
validly existing under the laws of the jurisdiction of its formation.  Borrower has all requisite power and
authority to own, lease and operate its properties and to carry on its business
as presently conducted, and to enter into and carry out the transactions
contemplated by this Agreement and the other transactions contemplated
hereby.  Except as set forth on Schedule
4.1, Borrower is duly licensed or qualified to do business as a foreign
corporation and is in good standing in each jurisdiction in which the ownership
of property or the conduct of its business requires such licensing or
qualification, except for failures to be so licensed or qualified which, when
taken together with all other such failures, to be so licensed or qualified
would not have a Material Adverse Effect. 
Borrower has made available to Lender true, complete, and accurate
copies of its respective formation documents, each as amended to, and as in
effect on, the date hereof, and its respective organizational documents,
minutes, corporate records and stock register and transfer records.

4.2.  Power and Authority.  Borrower has all the requisite legal and
other power and authority to execute and deliver this Agreement and the other
Loan Documents to which it is a party, to consummate the transactions
contemplated hereby and thereby and to perform its obligations hereunder and
thereunder, including the issuance, sale and delivery of the Note and the
Warrants. Each of the Loan Documents to which Borrower is a party constitutes a
legal, valid and binding obligation of Borrower, enforceable against Borrower,
in accordance with its terms, except as may be limited by (a) applicable
bankruptcy, insolvency, reorganization, moratorium, or other similar laws
relating to or affecting the enforcement of creditors’ rights generally and (b)
the effect of rules of law governing the availability of equitable remedies.

4.3.  Subsidiaries and Affiliates.  Borrower does not own or control, directly or
indirectly, any equity interest or investment in any corporation, association,
partnership, joint venture, limited liability company, or other form of
business or similar entity except as set forth on Schedule 4.3.

4.4.  Capitalization.

(a)                                  The capitalization of
Borrower is as set forth in its most recent applicable filings with the SEC.

(b)                                 Except as set forth in
its most recent applicable filings with the SEC, there are no outstanding,
issued or authorized options, warrants, purchase agreements, participation agreements,
subscription rights, conversion rights, exchange rights or other securities,
contracts, arrangements, understandings or commitments that could require
Borrower issue, sell or otherwise cause to become outstanding any of their
respective authorized but unissued shares or any securities convertible into,
exchangeable for or carrying a right or option to purchase any share, or to
create, authorize, issue, sell or otherwise cause to become outstanding any new
class of stock.  Except for the Warrants
and this Agreement, there are no outstanding stockholders’ agreements,
registration rights agreements, or rights of first refusal pertaining to the
shares of Borrower. None of the issued and outstanding shares of Common Stock
of Borrower have been issued in violation of any rights of any Person or in
violation of the registration requirements of any applicable securities law.

 10
 

(c)                                  All shares and other
securities issued by Borrower prior to the date hereof have been issued in
accordance with the requirements of the Securities Act, or in transactions
exempt from registration under the Securities Act, all applicable state
securities or “blue sky” laws, and any similar law, rule or regulation of any
other jurisdiction.  Borrower has
complied in all material respects with all applicable provisions of the
Securities Act, any applicable state securities or “blue sky” laws, or any
similar law, rule or regulation of any other jurisdiction in connection with
the issuance of any shares or other securities prior to the date hereof.

4.5.  Authorization.

(a)                                  The execution and
delivery by Borrower of this Agreement and the other Loan Documents to which it
is a party, and the performance of its obligations hereunder and thereunder, as
applicable, have been duly authorized by all requisite corporate action on the
part of Borrower, and no further authorization on the part of Borrower is
necessary to authorize such execution, delivery and performance.

(b)                                 The issuance, sale and
delivery of the Warrants and the Note have been duly authorized by all
requisite corporate action on the part of Borrower and when issued, sold and
delivered in accordance with this Agreement, will be duly and validly issued
and outstanding and not subject to preemptive or any other similar rights of
the stockholders of Borrower or others.

4.6.  No Violations or Conflicts.  The execution and delivery of this Agreement
and the other Loan Documents by Borrower and the performance by it of its
obligations hereunder and thereunder do not and will not (a) violate any
provision of law, statute, rule or regulation, or any Order of any court,
administrative agency or other governmental body applicable to Borrower or any
of its properties or assets, as applicable; (b) conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) or give rise to any right of termination, cancellation or acceleration
under or result in the creation of any Encumbrances upon any of the properties
or assets of Borrower under, (i) Borrower’s organizational documents, or (ii)
any note, indenture, mortgage, lease agreement, permit, license, grant of
authority or other contract, agreement or instrument to which Borrower is a
party or by which Borrower or any of its properties is bound or affected,
except where any such violation, conflict, breach or suspension described in
this subsection would not, individually or in the aggregate, result in a
Material Adverse Effect.

4.7.  Consents and Approvals.  Except as set forth on Schedule 4.7
(collectively, the “Required Consents”), and
except for filings required by applicable securities laws, no consent, approval
or authorization of, or declaration to or filing or registration with, any
Governmental Authority or other Person, is required to be made or obtained by
Borrower in connection with the valid execution, delivery and performance of
this Agreement and the other Loan Documents, including the issuance, sale and
delivery of the Warrants and the shares issuable thereunder.

4.8.  Financial Statements;
Disclosure.

(a)                                  Borrower has
delivered to Lender true, complete and correct copies of the consolidated
balance sheet (“Balance
Sheet”) of Borrower as of December 31, 2006 (“Balance Sheet Date”) and the
related statements of operations and cash flows for the fiscal year then ended
(the “Financial Statements”).  The Financial Statements fairly and
accurately present in all material respects the financial position, liabilities
and obligations and the results of operations as of the dates and for the
periods indicated, and in accordance with GAAP. 
Except as disclosed on the Balance Sheet or the Financial Statements or
on Schedule 4.8(a), as of the Balance Sheet Date and the date hereof (x)
Borrower has had no or has no liabilities (whether matured or unmatured, fixed
or contingent, liquidated

 11
 

or unliquidated or otherwise), or obligations, except as may have been
incurred in the ordinary course of business following the Balance Sheet Date,
and (y) Borrower had or has reserved or disclosed all liability reserves that
are required to be reserved or disclosed in accordance with GAAP.

(b)                                 None of the
information (financial or otherwise) furnished by or on behalf of Borrower to
Lender hereunder or in connection with the Loan Documents or any of the
transactions contemplated hereby or thereby contains any untrue statement of a
material fact or omits to state a material fact necessary to make the
statements contained herein or therein not misleading in the light of the
circumstances under which such statements were made.  Except as set forth on Schedule 4.8(b),
to the knowledge of Borrower, there are no facts that could result,
individually or in the aggregate, in a Material Adverse Effect and have not
been set forth in this Agreement, the other Loan Documents, or in other
documents delivered to Lender in connection herewith.

4.9.  Absence of Changes.  Except as set forth on Schedule 4.9,
since the Balance Sheet Date to the date hereof and other than pursuant to
transactions contemplated by this Agreement and the Related Agreements:

(a)                                  there has been no
action, event or occurrence which has had a Material Adverse Effect;

(b)                                 Borrower has not
permitted any of its assets, tangible or intangible, to become subject to any
Encumbrances, except for (i) liens for current taxes and assessments not yet
due, (ii) Permitted Liens and (iii) other Encumbrances which are not
reasonably likely, individually or in the aggregate, to have a Material Adverse
Effect;

(c)                                  There has been no
sale, assignment, mortgage, pledge, license or transfer of any tangible or
intangible assets of Borrower except as not prohibited by this Agreement;

(d)                                 Except for (i) the
indebtedness evidenced by the Note, the Comerica Agreement, and the GE Capital
Facility; and (b) liabilities incurred, and liabilities under contracts or
Capitalized Lease Obligations, in each case, entered into in the ordinary
course of business, Borrower has not incurred any Indebtedness to any Person,
or made any agreement or commitment therefor;

(e)                                  Since December 31,
2006, there has been no change in the respective accounting methods, practices
or policies followed by Borrower, or any change in depreciation or amortization
policies or rates theretofore adopted unless required by GAAP; and

(f)                                    Borrower is not in
default in any respect under any contract
except where any such default would not, individually or in the aggregate,
result in a Material Adverse Effect.

4.10.  Litigation.  Except as set forth in Schedule 4.10
or as described in filings with the SEC, there is no civil action, suit, claim,
hearing, investigation or proceeding pending (for which proper service has been
made) or, to the knowledge of Borrower, threatened against Borrower, or any
property or assets owned or possessed by Borrower, or, to the extent relating
in any manner to Borrower or the ability to consummate the transactions
hereunder, any of Borrower executives that is reasonably likely, either
individually or in the aggregate, to (a) adversely affect the validity of
this Agreement, the Note or the Warrants, or the transactions contemplated
hereby or thereby, or (b) have a Material Adverse Effect.

 12
 

4.11.  Intellectual Property.

(a)                                  Borrower has good
title and/or the right to use all intellectual property (including all such
property in which Borrower has an interest as licensee) necessary for the
conduct of its business (the “Intellectual
Property”);

(b)                                 As of the date hereof
Borrower has not received any notice of any judicial, administrative or
arbitration proceeding instituted against any it, or of any claim or threatened
claim by any Person against it alleging that the conduct of its business
infringes any intellectual property rights of any other Person; and

(c)                                  To the best of
Borrower’s knowledge, its use or enjoyment does not, or would note, violate any
intellectual property rights of a third party, and no third party is infringing
upon the Intellectual Property;

except, in each case under clause (a), (b) and (c) of
this Section 4.11, as are not reasonably likely, individually or in the
aggregate, to have a Material Adverse Effect.

4.12.  Title
to Assets, Properties and Rights.

(a)                                  Except
for Permitted Liens, Borrower has good and marketable title to all of its
respective properties, interests in properties and assets, real, personal and
mixed, tangible or intangible, that it owns or purports to own that is used or
useful in the conduct of its business, free and clear of any and all
Encumbrances, except for:  (i) liens, if
any, for current taxes and assessments not yet due, and (ii) minor liens and
encumbrances, in each case, which are not reasonably likely, individually or in
the aggregate, to have a Material Adverse Effect.

(b)                                 With
respect to the property and assets leased or licensed by Borrower or its
Subsidiaries, Borrower or such Subsidiary, as applicable, is in compliance with
such leases or licenses and holds valid leasehold or other interests free and
clear of any Encumbrances, except as are not reasonably likely, individually or
in the aggregate, to have a Material Adverse Effect.

(c)                                  Borrower
has in full force and effect fire and casualty insurance policies, and
insurance against other hazards, risks and liabilities to Persons and property
to the extent and in the manner customary for companies in similar businesses
similarly situated.  Borrower has made
available to Lender a true, complete and correct list, and a summary
description of the coverage provided thereby, of all liability insurance
policies maintained by Borrower on its assets or in relation to its
business.  All of such policies are in
full force and effect.  All premiums due
on such insurance policies on or prior to the date hereof have been paid.  As of the date hereof, there are no claims
with respect to Borrower, nor its respective assets, pending under any current
or prior insurance policy.

4.13.  Compliance
with Laws; Legal Requirements.

(a)                                  Except
as set forth on Schedule 4.13, Borrower has complied, and is in
compliance, in all material respects, with all foreign, federal, state or local
laws (including common law), statutes, codes, ordinances, rules, regulations,
and Orders of Governmental Authorities applicable to or affecting them or their
assets or businesses, including, without limitation, ERISA and Environmental
Laws (collectively, “Laws”),
except for such non-compliance which is not reasonably likely to have a
Material Adverse Effect.  Neither
Borrower, nor any of its senior officers, has received notice of any violation
(or any investigation, inspection, audit, or other proceeding by any
Governmental Authority involving an allegation of any violation) of any Law by
or affecting Borrower, and to the knowledge of Borrower, no investigation,
inspection, audit, or other proceeding by any Governmental Authority involving
an allegation of violation of any Law is threatened.

 13
 

(b)                                 Borrower
has obtained all of the registrations, applications, filings, certifications,
notices, Orders, licenses, permits, approvals, consents, qualifications,
authorizations and waivers of any Governmental Authority (“Licenses and Permits”)
necessary to conduct its respective business as it is presently being conducted
and has been conducted and is in compliance with all such Licenses and Permits,
and such Licenses and Permits are validly issued and in full force and effect,
except where the failure to obtain, or to be in compliance with, such Licenses
and Permits or have in full force and effect is not reasonably likely,
individually or in the aggregate, to have a Material Adverse Effect.

4.14.  Employees
and Labor Matters.

(a)                                  To
Borrower’s knowledge, none of Borrower’s employees is bound by any agreement
with any other Person that is violated or breached by such employee performing
the services he or she is currently performing for Borrower.

(b)                                 Borrower
is not delinquent (i) in any payments to any of its respective employees or
other personnel for any wages, salaries, commissions, bonuses or other direct
compensation, or (ii) in any material respect, in any payments to consultants,
independent contractors’ agents, or representatives, for any services performed
by them in any capacity, in each case, to the date hereof or for amounts
required to be reimbursed to any such Person to the date hereof.

(c)                                  As
of the date hereof, there is no collective bargaining agreement or union
contract binding on Borrower, there has not been any union organizing activity
with respect to Borrower, and no union vote is pending with respect to
Borrower.

(d)                                 Except
as would not reasonably be expected to have a Material Adverse Effect,
(i) there are no unfair labor practice charges or complaints, minimum wage
or overtime or equal pay charges or complaints, occupational safety and health
charges or complaints, wrongful discharge charges or complaints, employee grievances,
discrimination claims or workers’ compensation claims pending or, to the
knowledge of Borrower, threatened against either of them before any
Governmental Authority, and (ii) neither Borrower nor any of its senior
officers has received notice from any Governmental Authority of any alleged
violation of applicable law that remains unresolved respecting employment and
employment practices, terms and conditions of employment, or wage and hours.

(e)                                  Borrower
is in compliance in all material respects with all federal, state, local and
foreign laws, ordinances, regulations and Orders with respect to the wages,
hours and working conditions of its respective employees.

(f)                                    Except
as set forth in applicable filings with the SEC or as otherwise disclosed to
Lender (or as will be disclosed by Lender not later than April 5, 2007), as of
the date hereof, none of Borrower’s executive officers has an employment or
severance agreement with Borrower, or any other agreement that provides for
severance payments material to the Borrower and its Subsidiaries taken as a
whole, upon termination of employment.

4.15.  Brokers and Finders.  Neither Borrower, nor any of its officers,
directors, employees, agents or representatives, has employed any broker,
investment bank, financial advisor or finder in connection with this Agreement,
the other Loan Documents, or the transactions contemplated hereby and thereby.

4.16.  Tax Matters.  Borrower has timely filed all respective federal,
state, local and foreign tax returns, declarations of estimated tax, tax
reports, information returns and statements (collectively, the “Returns”) required to be filed by it
prior to the date hereof (other than those for which extensions shall

 14
 

have been granted prior to the date hereof) relating
to (i) any federal Taxes and (ii) any other Taxes in any material amount.  The Returns were complete and correct in all
material respects and all Taxes shown on the Returns to be due were timely
paid.

(a)                                  As
of the date hereof, there are no pending or, to the best of Borrower’s
knowledge, any threatened tax audits of any Returns.

(b)                                 No
tax Encumbrances (other than for current Taxes not yet due and payable and
Taxes being contested in good faith) have been filed and no deficiency in Tax
has been proposed, assessed or asserted in writing against Borrower.

(c)                                  Borrower
has timely withheld and paid all Taxes required to have been withheld and paid
by it in connection with any amounts paid or owing to any employee of Borrower.

(d)                                 Borrower
has never been a member of an affiliated group within the meaning of Section
1504 of the Code, or filed or been included in a combined, consolidated or
unitary return other than an affiliated group (and related return) in which
Borrower is the common parent.

(e)                                  Borrower
is not liable for Taxes of any other Person (other than its Subsidiaries), and
Borrower is not under any contractual obligation to indemnify any Person with
respect to Taxes, nor a party to any tax sharing agreement or other agreement
providing for payments by Borrower with respect to Taxes.

(f)                                    Borrower
is not a party to any joint venture, partnership or other arrangement or
contract that could be treated as a partnership for federal income tax
purposes.

4.17.  Books and Records.  The books and records of Borrower, including
with respect to operations, employees and properties, have been maintained in
the usual, regular and ordinary manner, all entries with respect thereto have
been accurately made, and all transactions have been accurately accounted for,
except as could not, individually or in the aggregate, be reasonably likely to
have a Material Adverse Effect.

4.18.  Offering Valid.  Assuming the accuracy of the representations
of Lender in Section 9 hereof, the offer, sale and issuance of the Note and the
Warrants will be exempt from the registration requirements of the Securities
Act and any similar law, rule or regulation of any other jurisdiction and will
have been registered or qualified (or are exempt from registration and
qualification) under the registration, permit or qualification requirements of
all applicable state securities laws. 
Neither Borrower nor any agent on Borrower’s behalf, has solicited or
will solicit any offers to sell or has offered to sell or will offer to sell
all or any part of the Note or the Warrants so as to bring the sale of such
Note or Warrants within the registration provisions of the Securities Act.

5.                                      COVENANTS.

5.1.  Negative Covenants.  Borrower covenants to Lender that at any time
as there shall be any Outstanding Amount and the Commitment has not been
irrevocably terminated, unless Lender has first consented thereto in writing,
Borrower will not:

(a)                                  Incur
or guarantee any Indebtedness other than (without duplication):  (i) amounts currently outstanding or
available under the Comerica Agreement and GE Capital Facility, and
refinancings thereof (which refinancings shall be subject to the prior written
consent of Lender); (ii) Indebtedness outstanding on the date hereof and
identified on Schedule 5.1(a); (iii) Indebtedness incurred,

 15
 

and Indebtedness under contracts or
Capitalized Lease Obligations, in each case, entered into in the ordinary
course of business; (iv) Indebtedness owed to any Subsidiary of Borrower;
(v) Indebtedness consisting of guaranties for the benefit of Subsidiaries of
Borrower; and (vi) other Indebtedness permitted under the GE Capital
Facility, as in effect on the date hereof.

(b)                                 Sell,
transfer or otherwise dispose of in any transaction or series of related
transactions during the term of this Agreement any of Borrower’ assets (other
than (i) sales of products or Intellectual Property in the ordinary course of
business; (ii) reinvestments or conversions of cash equivalents to cash or
other cash equivalents, (iii) dispositions of assets that are no longer
used or useful in its business, (iv) transfers of assets to Subsidiaries,
and (v) any asset sale contemplated by the definition of Permitted
Sale/Equity Transaction).

(c)                                  Acquire
any securities of, or other ownership interest in, any Person in any
transaction or series of transactions (other than (i) reinvestments or
conversions of cash equivalents and (ii) investments in Subsidiaries);

(d)                                 Declare
or pay any distributions on, or make any redemptions of, any class or series of
its shares (other than, so long as no Default or Event of Default then exists
or would result therefrom, repurchases of Common Stock of Borrower from former
employees, which shall not exceed $50,000 in the aggregate in any fiscal year
of Borrower);

(e)                                  Enter
into any agreement, arrangement or transaction with any officer or key employee
of Borrower, or any affiliate (other than Lender), relative, beneficiary or
employee of the foregoing, on terms taken as a whole are less favorable to
Borrower, as the case may be, than would be available in an arm’s-length
transaction between willing parties (other than employment transactions in the
ordinary course of business);

(f)                                    Undertake
or agree to undertake any merger or consolidation, whether or not Borrower or a
Subsidiary is the surviving corporation (other than mergers and consolidations
with any Subsidiary in which Borrower is the surviving entity);

(g)                                 (i)
Change the organic form of Borrower from that of a corporation formed under
Delaware law, or (ii) issue additional shares of Borrower stock, other than as
those shares described and permitted to be issued to Lender under this
Agreement and option and warrant shares issued as a result of the exercise, in
accordance with their respective terms, of any options or warrants currently
outstanding or permitted under this Agreement; or

(h)                                 Change
Borrower’s or any Subsidiary’s general line of business.

5.2.  Affirmative Covenants.  Borrower covenants to Lender that at any time
as there shall be any Outstanding Amount and the Commitment has not been
irrevocably terminated:

(a)                                  Financial
Statements.  Borrower shall deliver
or cause to be delivered to Lender:

(i)                                     Commencing
with the 2007 fiscal year for Borrower, as soon as practicable, but in any
event not later than ninety (90) days after the end of each applicable fiscal
year of Borrower, the consolidated balance sheet of Borrower, as at the end of
such year, and the related consolidated and consolidating statement of income
and statement of cash flow, setting forth in comparative form the figures for
the previous fiscal year (if applicable) and all such consolidated and
consolidating statements to be in reasonable detail, prepared in accordance
with GAAP, together with the report of Borrower’s independent certified public
accountant reasonably acceptable to Lender;

 16
 

(ii)                                  As
soon as practicable and to the extent possible within thirty (30) days after
the end of each month, copies of Borrower’s internally prepared consolidated
balance sheet, each as at the end of such month, and the related consolidated
statement of income and statement of cash flow for such month, all in
reasonable detail and prepared in accordance with GAAP with the exception of
notes to the financial statements, together with a certification by the chief
financial officer of Borrower (in his of her capacity as an officer of Borrower
and without personal liability) that the information contained in such
financial statements fairly presents in all material respects Borrower’s
financial position on the date thereof (subject to year end adjustments); and

(iii)                               As
soon as available, but in any event not later than sixty (60) days after the
date hereof, of a business plan for such future periods, and including such
items, as is requested by lender, in form and substance reasonably satisfactory
to Lender; and

(iv)                              all
other information reasonably requested by Lender.

(b)                                 Existence.  Borrower will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.

(c)                                  Compliance
with Laws; Approvals and Authority. 
Except as is not reasonably likely, individually or in the aggregate, to
have a Material Adverse Effect, Borrower will comply with the applicable laws
and regulations wherever its business is conducted including, without
limitation, ERISA and all Environmental Laws, and all Orders of any tribunal
under any such legislation that applies to the conduct of operating and
administering its business.

(d)                                 ERISA
Compliance.  Upon reasonable request
of Lender, Borrower will (i) promptly upon its filing the same, or as soon
as possible after notification to Borrower of the filing by another person of
the same, with the Department of Labor or Internal Revenue Service, furnish to
Lender copies of the most recent actuarial statement, if any, required to be
submitted under §103(d) of ERISA and Annual Report - Form 5500, with all
required attachments, in respect of each guaranteed pension plan, and (ii)
promptly upon receipt or dispatch by Borrower, or as soon as possible after
notification to Borrower of receipt or dispatch by another person, furnish to
Lender any notice, report or demand sent or received in respect of a guaranteed
pension plan under §§302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068 of ERISA,
or in respect of a multiemployer plan, under §§4041A, 4202, 4219, 4242, or 4245
of ERISA which involves a liability which is reasonably likely to result in a
Material Adverse Effect. 

(e)                                  Insurance.  Borrower shall maintain in full force and
effect fire and casualty insurance policies, and insurance against other hazards,
risks and liabilities to Persons and property to the extent and in the manner
customary for companies in similar businesses similarly situated.

(f)                                    Taxes.  Borrower will duly pay and discharge, or
cause to be paid and discharged, before the same shall become overdue or
subject to penalty or interest, all taxes, assessments and other governmental
charges imposed upon it and its real properties, sales and activities, or any
part thereof, or upon the income or profits therefrom; provided that any such
tax, assessment, or charge need not be paid if the validity or amount thereof
shall currently be contested in good faith by appropriate proceedings and if
such, Borrower shall have set aside on its books adequate reserves with respect
thereto.

(g)                                 Claims;
Litigation.  Borrower will inform
Lender, promptly after receipt by Borrower of notice of any material threatened
or potential adverse claim, dispute, litigation and governmental investigation
or citation against Borrower that, if adversely determined, is reasonably
likely to result in a Material Adverse Effect.

 17
 

(h)                                 Notice
of Failure to Comply with Covenants. 
Borrower shall promptly give prompt notice to Lender of any Default or
Event of Default.

(i)                                     Expenses.  Subject to the terms and conditions of the Subordination
Agreements, Borrower shall pay or reimburse Lender for all reasonable
out-of-pocket costs and expenses (including but not limited to reasonable
attorneys’ fees and disbursements) such Lender may pay or incur in connection
with the collection or enforcement of this Agreement, the Note and the
Warrants, and all amendments in connection therewith and in all other
documentation related thereto made at Borrower’s request, and any and all
waivers and consents, including without limitation any fees and disbursements
incurred in defense of or to retain amounts of principal, interest or fees
paid, and any claims, damages, interest (including post-petition interest),
judgments, costs, or expenses awarded in respect thereof.  All obligations provided for in this Section
5.2(i) shall survive any termination of this Agreement and the repayment of the
Loan.

5.3.  Right of First Offer and Refusal.  Borrower shall notify Lender in writing not
less than thirty (30) days prior to its seeking any credit arrangement intended
to be subordinate to the GE Capital Facility and the Comerica Agreement and
shall accord Lender the right of first offer with respect to such
arrangements.  In the event Borrower does
not reach agreement with Lender on the terms of any such credit facility
required by Borrower and Borrower seeks third party financing, Borrower shall
notify Lender in writing, not less than five (5) Business Days prior to its
acceptance of any such alternate financing of the terms of such financing, and
Lender shall have the right to match such terms and provide such financing to
Borrower.

5.4.  No Third-Party Rights.  Nothing expressed or referred to in this
Agreement will be construed to give any Person other than the parties to this
Agreement any legal or equitable right, remedy or claim under or with respect
to this Agreement or any provision of this Agreement.

6.                                      SURVIVAL
OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS, ETC.

Except as expressly provided
to the contrary, all covenants and agreements contained in this Agreement shall
survive the Closing and shall remain in full force and effect as of the date
when made.  The representations and
warranties hereunder shall survive the Closing as of the date when made so long
as any Indebtedness hereunder, or under any Note, or any obligations under any
Warrant remain outstanding.

7.                                      EVENTS OF DEFAULT; Remedies.

7.1.  Events
of Default. The occurrence of any one or more of the following events shall
constitute an event of default hereunder (“Event of Default”):

(a)                                  If
Borrower shall fail to pay (i) as and when due, any payment of principal under
this Agreement or the Note, and (ii) any payment of interest or expenses
payable under this Agreement or the Note and such failure to pay is not cured
within ten (10) days following the date such payment is due;

(b)                                 If,
pursuant to or within the meaning of the United States Bankruptcy Code or any
other federal, state, or applicable foreign law relating to insolvency or
relief of debtors (collectively, a “Bankruptcy Law”), Borrower shall (i) commence a
voluntary case or proceeding; (ii) consent to the entry of an order for relief
against it in an involuntary case; (iii) consent to the appointment of a
trustee, receiver, assignee, liquidator or similar official; (iv) make an
assignment for the benefit of its creditors; or (v) admit in writing its
inability to pay its debts as they become due;

 18
 

(c)                                  If
(i) a case is commenced against Borrower pursuant to any Bankruptcy Law, or
(ii) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that (A) is for relief against Borrower in an involuntary case,
(B) appoints a trustee, receiver, assignee, liquidator or similar official for
Borrower or substantially all of the properties of any of Borrower, or (C)
orders the liquidation of Borrower, and, in each case, the case, order or
decree is not dismissed within sixty (60) days;

(d)                                 If
Borrower shall fail to comply with or perform (i) the covenants set forth in
Section 5.1 hereof; or (ii) any provision of the Warrants;

(e)                                  If
Borrower shall fail to comply with or perform any other covenant or other
agreement set forth herein, or in any Note, which failure is not cured within
thirty (30) days after written notice from Lender;

(f)                                    If
any representation or warranty by Borrower herein contained is false or
misleading in any material respect when made;

(g)                                 If
any event of default shall have occurred and be continuing with respect to the
Comerica Agreement or the GE Capital Facility, which event of default permits
Comerica or GE Capital, as applicable, to accelerate the Indebtedness under the
Comerica Agreement or the GE Capital Facility as applicable; or

(h)                                 If
a Liquidity Event occurs.

7.2.  Remedies.

(a)                                  Upon
the occurrence of an Event of Default hereunder other than as provided in
Sections 7.1(b) or (c) above (unless cured by Borrower or waived by Lender),
the entire unpaid principal balance of the Note, together with all accrued
interest thereon, may be declared by Lender due and payable.  Upon the occurrence of an Event of Default as
provided in Section 7.1(b) or (c) above, the entire unpaid principal balance
outstanding hereunder and under the Note, together with all accrued interest
thereon, shall, subject to the terms and conditions of the Subordination
Agreements) be immediately due and payable regardless of any prior
forbearance.  Notwithstanding anything to
the contrary in this Agreement, in no event shall the interest payable on the
unpaid principal balance of the Loans exceed the maximum rate permitted under
applicable Laws.  In the event that such
rate of interest exceeds the maximum rate permitted under applicable Laws, such
excess shall be deemed additional principal payments under this Agreement and
the Note.

(b)                                 In
addition, upon the occurrence of an Event of Default (unless cured by Borrower
or waived by Lender) and for, but only for, the period during which such Event
of Default remains uncured or has not been waived in writing by Lender, the
interest due on the principal balance outstanding hereunder shall accrue at a
rate of fifteen percent (15%) per annum (calculated in the same manner as
provided above) rather than the rate specified in the Note, in each of the
Preamble and Section 1.1 thereto.

(c)                                  No
failure or delay on the part of any party hereto in the exercise of any right
hereunder shall impair such right or be construed to be a waiver of, or
acquiescence in, any breach of any representation, warranty, covenant or
agreement herein, nor shall any single or partial exercise of any such right
preclude other or further exercise thereof or of any other right.  All rights and remedies of Lender existing
pursuant to this Agreement or any other Loan Document are cumulative to, and
not

 19
 

exclusive of, any rights or remedies
otherwise available, whether by contract, at law, in equity or otherwise.

8.                                      MISCELLANEOUS.

8.1.  Governing
Law; Submission to Jurisdiction.

(a)                                  This
Agreement and the documents and instruments executed in connection herewith
shall be governed by and construed in accordance with the internal laws of the
State of Delaware, without regard to principles of the conflict of laws
thereof.

(b)                                 The
parties hereto agree that any suit, action or proceeding instituted against one
or more of them with respect to this Agreement (including any Exhibits hereto)
shall be brought in any federal or state court located in the State of Delaware
or such other jurisdiction agreed upon by the parties.  The parties hereto, by the execution and
delivery of this Agreement, irrevocably waive any objection or defense to the
institution of any action in Delaware based on improper venue, the convenience
of the forum or the jurisdiction of such courts, or from the execution of
judgments resulting therefrom, and the parties hereto irrevocably accept and
submit to the jurisdiction of the aforesaid courts in any suit, action or
proceeding and consent to the service of process by certified mail at the
address set forth in Section 7.4 hereof.

8.2.  Assignments; Successors; Third Party
Rights.  No party to this Agreement may
not assign any of its rights under this Agreement without the prior written
consent of the other parties hereto which consent, in respect of any assignment
by Lender, shall not be unreasonably withheld; provided that Lender may assign
its rights hereunder to one or more affiliates without the consent of Borrower
and provided further that any such assignee agrees in writing to be subject to
the terms and conditions of each of the Subordination Agreements then in
effect.  Subject to the preceding
sentence, this Agreement will apply to, be binding in all respects upon, and
inure to the benefit of the successors, heirs, personal representatives,
executors and permitted assigns of the parties. 
Borrower shall maintain a registry of the owners of the Note in a manner
that complies with the book entry form of registration for purposes of Section
871(h) of the Code.  Nothing expressed or
referred to in this Agreement will be construed to give any Person other than
the parties to this Agreement any legal or equitable right, remedy or claim
under or with respect to this Agreement or any provision of this Agreement.

8.3.  Entire Agreement; Amendment.  This Agreement and the other Loan Agreements
constitute the full and entire understanding and agreement among the parties
with regard to the subjects hereof and thereof and they supersede, merge and
render void every other prior written and/or oral understanding or agreement
among or between the parties hereto. This Agreement, the Note and the Warrants
may not be amended except by a written agreement executed by Borrower and
Lender.

8.4.  Notices.  All notices, consents, waivers, or other
communications required or permitted under this Agreement shall be in writing
and shall be delivered or sent to the parties hereto at the following addresses
or fax numbers, or at such other address or fax number as Lender or Borrower
may give by notice to the other party and will be deemed to have been duly
given and received: (a) on the date of receipt if personally delivered, (b)
five days after being sent by mail, postage prepaid, (c) the date of receipt,
if sent by registered or certified mail, postage prepaid, (d) when sent by
facsimile or telecopier transmission if sent during normal business hours of
the recipient, if not, then on the next Business Day, provided, that
confirmation or receipt by the receiving party’s receiver can be documented, or
(e) one Business Day after having been sent by a recognized overnight courier
service upon confirmation of delivery by such courier service:

 20
 

(a)                                  If
to Lender:

103 Springer Building

3411 Silverside Road

Wilmington, DE  19810

Telecopier No.:  610.293.0601

with a courtesy copy to:

Safeguard
Scientifics, Inc.

800 The Safeguard Building

435 Devon Park Drive

Wayne, PA  19087

Attention:  Steven J. Feder, Esquire

Telecopier No.: 610.482.9105

(b)                                 If
to Borrower:

Clarient, Inc.

31 Columbia,

Aliso Viejo, CA  92656

Attention:  James Agnello, Senior Vice President &

Chief Financial Officer

Telecopier:  949.4245.5863

with a courtesy copy to:

Latham & Watkins LLP

633 West Fifth Street, Suite
4000

Los Angeles, CA  90071-2007

Attention:  W. Alex Voxman, Esquire

Telecopier No.:  213.891.8763

8.5.  Failure or Indulgence Not Waiver; Remedies
Cumulative.  No failure
or delay on the part of any party hereto in the exercise of any right hereunder
shall impair such right or be construed to be a waiver of, or acquiescence in,
any breach of any representation, warranty, covenant or agreement herein, nor
shall any single or partial exercise of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies
existing under this Agreement are cumulative to, and not exclusive of, any
rights or remedies otherwise available, whether by contract, at law, in equity
or otherwise.

8.6.  Severability.  If any provision of this Agreement or the
application of any such provision to any party or circumstance shall be
determined by any court of competent jurisdiction to be invalid or
unenforceable to any extent, the remainder of this Agreement, or the application
of such provision to any party or circumstance other than those to which it is
so determined to be invalid or unenforceable, shall not be affected thereby,
and each provision hereof shall be enforced to the fullest extent permitted by
law. If the final judgment of a court of competent jurisdiction declares that
any item or provision hereof is invalid or unenforceable, the parties hereto
agree that the court making the determination of invalidity or unenforceability
shall have the power to reduce the scope, duration or area of the term or
provision, or to delete specific words or phrases, and to replace any invalid
or unenforceable term or provision with a

 21
 

term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified.

8.7.  Section Headings; Construction.  The headings in this Agreement are provided
for convenience only and will not affect its construction or interpretation. In
this Agreement (a) words denoting the singular include the plural and vice
versa, (b) “it” or “its” or words denoting any gender include all genders, (c)
the word “including” means “including, without limitation,” whether or not
expressed and (d) any reference herein to a Section, Article, Schedule or
Exhibit refers to a Section or Article of, or a Schedule or Exhibit to, this
Agreement, unless otherwise stated. Each party acknowledges that it has been
advised and represented by counsel in the negotiation, execution and delivery
of this Agreement and accordingly agrees that if an ambiguity exists with
respect to any provision of this Agreement, such provision shall not be
construed against any party because such party or its representatives drafted
such provision.

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

8.9.  Fees and Expenses.  Except as otherwise expressly set forth
herein, all fees, costs and expenses incurred by Borrower or Lender and payable
to third parties in connection with the negotiation, execution and delivery of
this Agreement or any amendment thereto and the other Loan Documents and the
performance of the transactions contemplated hereby and thereby shall be paid
by the party incurring such fees, costs or expenses, except Borrower shall be
responsible for the reasonable fees, costs or expenses of Lender payable to
third parties and incurred in connection with any amendment of this Agreement
made at Borrower’s request.

8.10.  Reinstatement.  Notwithstanding anything contained herein to
the contrary:  (a) this Agreement and the
other Loan Documents shall remain in full force and effect and continue to be
effective should any petition be filed by or against Borrower liquidation or
reorganization, should Borrower become insolvent or make an assignment for the
benefit of any creditor or creditors or should a receiver or trustee be appointed
for all or any significant part of Borrower’s assets, and shall continue to be
effective or to be reinstated, as the case may be, if at any time payment and
performance of the obligations hereunder or under the Note, or any part
thereof, is, pursuant to applicable law, rescinded, avoided or reduced in
amount, or must otherwise be restored or returned by Lender, whether as a “voidable
preference,” “fraudulent transfer,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made; and (b) in the event
that any payment, or any part thereof, is rescinded, avoided, reduced, restored
or returned, the Note shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, avoided, reduced, restored or returned.

8.11.  Payment on Non-Business Days.  Whenever any payment to be made hereunder
shall be stated to be due on a day other than a Business Day, such payment may
be made on the next succeeding Business Day, provided however that such
extension of time shall be included in the computation of interest due in
conjunction with such payment or other fees due hereunder, as the case may be.

8.12.  Time of Day.  All time of day restrictions imposed herein
shall be calculated using Delaware local time.

8.13.  WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR THE NOTE OR COLLATERAL SECURITY DOCUMENTS OR
ANY COURSE OF CONDUCT, COURSE OF DEALING,

 22
 

STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF LENDER.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S ENTERING INTO THIS AGREEMENT.

9.                                      LENDER Representations.

9.1.  Lender
Representations.  Lender represents
and warrants to the Borrower as follows:

(a)                                  Lender
is acquiring the Warrants and the Notes, and (if and when it exercises the
Warrants) it will acquire the shares of Common Stock underlying the Warrants
(the “Warrant Shares”
and, together with the Warrants and the Notes, the “Securities”), for its own account for investment and not
with a view to, or for sale in connection with, any distribution thereof, nor
with any present intention of distributing or selling the same; and the Lender
has no present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for the disposition thereof.

(b)                                 Lender
has made such inquiry concerning the Borrower and its business and personnel as
it has deemed appropriate and has had the opportunity to discuss, ask questions
and receive answers with respect to the Borrower’s business, management and
financial affairs with the Borrower’s management; and Lender has sufficient
knowledge and experience in finance and business that it is capable of
evaluating the risks and merits of its funding of the Note and purchase of the
Warrants.

(c)                                  Lender
acknowledges that the Securities have not been registered under the Securities
Act and must be held indefinitely unless subsequently registered under the
Securities Act or an exemption from such registration is available.

[SIGNATURE
PAGES FOLLOW]

 23

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first written above.

	
  

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Agnello

  	
   

  
	
   

  	
   

  	
  Name: James Agnello

  
	
   

  	
   

  	
  Title:   Senior Vice President and Chief

  
	
   

  	
   

  	
  Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
  SAFEGUARD DELAWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Feder

  	
   

  
	
   

  	
   

  	
  Name: Steven J. Feder

  
	
   

  	
   

  	
  Title: Vice President

  

 

Senior Subordinated Revolving Credit Agreement

Signature Page

EXHIBIT A

FORM OF NOTE

 A-1

EXHIBIT B-1

FORM OF COMMITMENT FEE WARRANT

($.01 Exercise Price)

 B-1-1

EXHIBIT B-2

FORM OF COMMITMENT FEE WARRANT

(Discounted Market Price)

 B-2-1

EXHIBIT B-3

FORM OF USAGE FEE WARRANT

 B-3-1

EXHIBIT C

FORM OF BORROWING REQUEST

 C-1Exhibit 10.10

EXECUTION VERSION

COMMITMENT
FEE WARRANT

($.01 EXERCISE PRICE)

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

COMMON STOCK PURCHASE WARRANT

To Purchase 125,000 Shares
of Common Stock of

Clarient, Inc.

THIS
COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value received, Safeguard
Delaware, Inc., a Delaware corporation (the “Holder”), is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after March 7, 2007 (the “Initial Exercise Date”)
and on or prior to the close of business on March 7, 2011 (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Clarient, Inc., a
corporation incorporated in the State of Delaware (the “Company”), up to One
Hundred Twenty-Five Thousand (125,000)  shares
(the “Warrant Shares”) of Common Stock, par value $0.01 per share, of the
Company (the “Common Stock”).  The
purchase price of one share of Common Stock (the “Exercise Price”) under this
Warrant shall be $0.01, and the Exercise Price and the number of Warrant Shares
for which the Warrant is exercisable shall be subject to adjustment as provided
herein, provided however that in no event shall the Exercise Price be reduced
below the par value of the Common Stock.

1.             Title to Warrant. 
Prior to the Termination Date and subject to compliance with applicable
laws and Section 7 of this Warrant, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the Company by
the Holder in person or by duly authorized attorney and upon surrender of this
Warrant together with the Assignment Form annexed hereto properly
endorsed.  The transferee shall sign an
investment letter in form and substance reasonably satisfactory to the Company.

2.             Authorization
of Shares.  The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by
this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

3.             Exercise
of Warrant.

(a)  Exercise of the purchase rights represented
by this Warrant may be made at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivering the Notice of
Exercise Form annexed hereto duly completed and executed (which delivery may be
by facsimile), at the office of the Company (or such other office or agency of
the Company as it may designate by notice in writing to the registered Holder
at the address of such Holder appearing on the

books of the Company) and upon full payment of the Exercise Price of
the shares thereby purchased by wire transfer or cashier’s check drawn on a
United States bank or by means of a cashless exercise pursuant to Section 3(d),
the Holder shall be entitled to receive a certificate for the number of Warrant
Shares so purchased.  Certificates for
shares purchased hereunder shall be delivered to the address specified by the
Holder in the Notice of Exercise within three (3) business days from the
delivery to the Company of the Notice of Exercise Form, surrender of this
Warrant and payment of the aggregate Exercise Price as set forth above (“Warrant
Share Delivery Date”).  In lieu of
delivering physical certificates for the shares purchased hereunder, provided
the Company’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer program, and so long as the resale of the
shares underlying this Warrant is covered by an effective registration
statement or the legend upon the certificates for the shares may be removed in
accordance with applicable securities laws, upon request of the Holder, the
Company shall use commercially reasonable efforts to cause its transfer agent
electronically to transmit such shares by crediting the account of the Holder’s
prime broker with DTC through its Deposit Withdrawal Agent Commission system
(provided that the same time limitations herein as for stock certificates shall
apply and that the Company may in all events satisfy its obligations to deliver
certificates by delivery of physical stock certificates).  This Warrant shall be deemed to have been
exercised on the date the Exercise Price is received by the Company.  The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised by payment to the
Company of the Exercise Price.

(b)  In addition to any other rights available to the holder, if the Company
fails to deliver or cause its transfer agent to deliver or transmit (in the
manner contemplated by clause (a) above) to the Holder a certificate or
certificates representing the Shares pursuant to an exercise on or before the
Warrant Share Delivery Date, and if after such date the holder is required by its
broker to purchase (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the holder of the Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall promptly honor its obligation to deliver to the Holder
such Warrant Shares and pay in cash to the holder the amount by which (x) the
holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of Shares that the Company was required to deliver
to the holder in connection with the exercise at issue times (B) the closing
price per share on date of exercise. The holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In,
together with applicable confirmations and other evidence reasonably requested
by the Company.  Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon exercise
of the Warrant as required pursuant to the terms hereof.

(c)  Notwithstanding anything to the contrary set forth herein, upon partial
exercise of this Warrant in accordance with the terms hereof, the Holder shall
not be required to physically surrender this Warrant to the Company unless such
Holder is purchasing the full amount of Warrant Shares then 

 2
 

represented by this
Warrant.  The Holder and the Company
shall maintain records showing the number of Warrant Shares so purchased
hereunder and the dates of such purchases or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require
physical surrender of this Warrant upon each such exercise.  The requirement of physical surrender upon
full exercise shall be satisfied by the Holder mailing, postage prepaid, or
arranging for delivery by commercial courier this Warrant to the Company’s
notice address.

(d)  This Warrant may also be exercised at such
time by means of a “cashless exercise” in which the Holder shall be entitled to
receive a certificate for the number of Warrant Shares equal to the quotient
obtained by dividing ((A-B) (X)) by (A), where:

(A)
=  the last reported sale price of the
Common Stock on the business day immediately preceding the date of such
election or, if not reported, the fair market value of such Common Stock as
reasonably determined by the Company’s Board of Directors;

(B) =  the Exercise Price, as adjusted; and

(X) =  the number of Warrant Shares with respect to
which this Warrant is being exercised.

4.             No Fractional Shares or Scrip.  No
fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price.

5.             Charges, Taxes and Expenses. 
Issuance of certificates for Warrant Shares shall be made without charge
to the Holder for any issue or transfer tax or other incidental expense in
respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder; and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto, compliance with the provisions of Section 7 and an
investment letter from the transferee in form and substance reasonably
satisfactory to the Company.

6.             Closing of Books.  The
Company will not close its stockholder books or records in any manner which
prevents the timely exercise of this Warrant, pursuant to the terms hereof.

7.             Transfer, Division and Combination.

(a)  Subject to compliance with any applicable
securities laws and the conditions set forth in Sections 1 and 7 hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company, together with
a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to
pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A
Warrant, if properly 

 3
 

assigned, may be exercised by a new holder
for the purchase of Warrant Shares without having a new Warrant issued.

(b)  This Warrant may be divided or combined with
other Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the Holder or its agent or
attorney.  Subject to compliance with
Section 7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

(c)  The Company shall prepare, issue and deliver at its own expense (other
than transfer taxes) the new Warrant or Warrants under this Section 7.

(d)  The Company agrees to maintain, at its aforesaid office, books for the
registration and the registration of transfer of the Warrants.  This Warrant may not be transferred or sold
except pursuant to an effective registration statement under the Securities Act
of pursuant to an available exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and in accordance with
applicable state securities laws.  If, at
the time of the surrender of this Warrant in connection with any transfer of
this Warrant, the transfer of this Warrant shall not be registered pursuant to
an effective registration statement under the Securities Act of 1933, as
amended (the “Securities Act”) and under applicable state securities or blue
sky laws, the Company may require, as a condition of allowing such transfer (i)
that the Holder or transferee of this Warrant, as the case may be, furnish to
the Company a written opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable
transactions) to the effect that such transfer may be made without registration
under the Securities Act and under applicable state securities or blue sky
laws, (ii) that the holder or transferee execute and deliver to the Company an
investment letter in form and substance reasonably acceptable to the Company
and (iii) that the transferee be an “accredited investor” as defined in Rule
501(a) promulgated under the Securities Act.

(e)           Any
securities issued upon exercise of this Warrant shall bear the following
legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 
SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES LAWS, THESE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED
BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

 4
 

8.             No Rights as Shareholder until Exercise.  This
Warrant does not entitle the Holder to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof.  Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender or payment.

9.             Loss, Theft, Destruction or Mutilation of
Warrant.  The Company covenants that upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation
of such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

10.           Saturdays, Sundays, Holidays, etc.  If the
last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall be a Saturday, Sunday or a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day not a Saturday, Sunday or legal holiday.

11.           Adjustments of Exercise Price and Number of
Warrant Shares.  The number and kind of securities purchasable
upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of any of the following.  In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common
Stock, then the number of Warrant Shares purchasable upon exercise of this
Warrant immediately prior thereto shall be adjusted so that the Holder shall be
entitled to receive the kind and number of Warrant Shares or other securities
of the Company which it would have owned or have been entitled to receive had
such Warrant been exercised immediately prior to the occurrence of such
event.  Upon each such adjustment of the
kind and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing such amount by the number of Warrant Shares or other
securities of the Company purchasable pursuant hereto as a result of such
adjustment (such that the aggregate purchase price for all Warrant Shares or
other securities resulting from such adjustment upon full exercise of this
Warrant shall remain the same).  An
adjustment made pursuant to this paragraph shall become effective immediately
after the effective date of such event.

12.           Reorganization, Reclassification, Merger,
Consolidation or Disposition of Assets.  In case the Company shall
reorganize its capital, reclassify its capital stock, consolidate or merge with
or into another corporation (where the Company is not the surviving corporation
or where there is a change in or distribution with respect to the Common Stock
of the Company), or sell, transfer or otherwise dispose of all or substantially
all its property, assets or business to another corporation and, pursuant to
the terms of 

 5
 

such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or
any cash, shares of stock or other securities or property of any nature
whatsoever (including warrants or other subscription or purchase rights) in
addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be received by or distributed to the
holders of Common Stock of the Company, then the Holder shall have the right
thereafter to receive upon exercise of this Warrant (and this Warrant shall
thereafter be exercisable only for), the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and Other Property receivable upon or as a result of
such reorganization, reclassification, merger, consolidation or disposition of
assets by a Holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company)
shall expressly assume the due and punctual observance and performance of each
and every covenant and condition of this Warrant to be performed and observed
by the Company and all the obligations and liabilities hereunder, subject to
such modifications as may be deemed appropriate (as determined in good faith by
resolution of the Board of Directors of the Company) in order to provide for
adjustments of Warrant Shares for which this Warrant is exercisable which shall
be as nearly equivalent as practicable to the adjustments provided for in this
Section 12.  For purposes of this Section
12, “common stock of the successor or acquiring corporation” shall include
stock of such corporation of any class which is not preferred as to dividends
or assets over any other class of stock of such corporation and which is not
subject to redemption.  The foregoing
provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

13.           Notice of Adjustment. 
Whenever the number of Warrant Shares or number or kind of securities or
other property purchasable upon the exercise of this Warrant or the Exercise
Price is adjusted, as herein provided, the Company shall give notice thereof to
the Holder, which notice shall state the number of Warrant Shares (and other
securities or property) purchasable upon the exercise of this Warrant and the
Exercise Price of such Warrant Shares (and other securities or property) after
such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made.

14.           Notice of Corporate Action.  If
at any time:

(a)  the Company shall take a record of the holders of its Common Stock for
the purpose of entitling them to receive a dividend or other distribution, or
any right to subscribe for or purchase any evidences of its indebtedness, any
shares of stock of any class or any other securities or property, or to receive
any other right, or

(b)  there shall be any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation that would trigger an adjustment pursuant to
Section 12, or

(c)  there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Company;

then, in any one or more of
such cases, the Company shall give to Holder (i) at least 20 days’ prior
written notice of the date on which a record date shall be selected for such
dividend, distribution or right or for determining rights to vote in respect of
any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, liquidation or winding up, and (ii) in the case of any
such reorganization, reclassification, merger, consolidation, 

 6
 

sale, transfer, disposition,
dissolution, liquidation or winding up, at least 20 days’ prior written notice
of the date when the same shall take place. 
Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the estimated date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 16(d).

15.           Authorized Shares.  The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to execute and issue
the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant.  The
Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

Except
and to the extent as waived or consented to by the Holder, the Company shall
not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment.  Without limiting the
generality of the foregoing, the Company will (a) not increase the par value of
any Warrant Shares above the amount payable therefor upon such exercise
immediately prior to such increase in par value, (b) take all such action as
may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the exercise of
this Warrant, and (c) use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant.

Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

16.           Miscellaneous.

(a)  Jurisdiction.  This Warrant shall
constitute a contract under the laws of the State of Delaware.

(b)  Restrictions.  The Holder
acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

 7
 

(c)  Nonwaiver and Expenses.  No
course of dealing or any delay or failure to exercise any right hereunder on
the part of Holder shall operate as a waiver of such right or otherwise
prejudice Holder’s rights, powers or remedies, notwithstanding all rights
hereunder terminate on the Termination Date.

(d)  Notices.  Any and all notices or
other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the
earliest of (a) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth on the signature
pages attached hereto prior to 6:30 p.m. (New York City time) on a business day
or by email to the email address set forth on the signature pages attached
hereto if such email is sent prior to 6:30 p.m. (New York City time) on a
business day, (b) the next business day after the date of transmission or
email, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto or by email
to the email address set forth on the signature pages attached hereto on a day
that is not a business day or later than 6:30 p.m. (New York City time) on any
business day, (c) the second business day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.  Any notice, request or other
document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with this Section 16(d); provided upon
any permitted assignment of this Warrant, the assignee shall promptly provide
the Company with its contact information.

(e)  Limitation of Liability.  No
provision hereof, in the absence of any affirmative action by Holder to
exercise this Warrant or purchase Warrant Shares, and no enumeration herein of
the rights or privileges of Holder, shall give rise to any liability of Holder
for the purchase price of any Common Stock or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the
Company.

(f)  Remedies.  Holder, in addition to
being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive the defense
in any action for specific performance that a remedy at law would be adequate.

(g)  Successors and Assigns.  Subject
to applicable securities laws, this Warrant and the rights and obligations
evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of
Holder.  The provisions of this Warrant
are intended to be for the benefit of all Holders from time to time of this
Warrant and shall be enforceable by any such Holder or holder of Warrant
Shares.

(h)  Amendment and Waiver.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

(i)  Severability.  Wherever possible,
each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant
shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

 8
 

(j)  Headings.  The headings used in
this Warrant are for the convenience of reference only and shall not, for any
purpose, be deemed a part of this Warrant.

[Signature Page Follows]

 9

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

 

	
  Dated: March 7, 2007

  	
   

  
	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James Agnello

  	
   

  
	
   

  	
   

  	
  Name: James Agnello

  
	
   

  	
   

  	
  Title: Senior Vice President and Chief Financial 

  
	
   

  	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
  31 Columbia

  
	
   

  	
  Aliso Viejo, CA 92656

  
	
   

  	
  Facsimile: 949-425-5863

  
	
   

  	
  Email: randrews@clarientinc.com

  
					

 

	
  ACCEPTED AND AGREED

  	
   

  
	
   

  	
   

  
	
  SAFEGUARD DELAWARE, INC.

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Steven J. Feder

  	
   

  	
   

  
	
   

  	
  Name: Steven J. Feder

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  
	
   

  	
   

  
	
  Notice Address:

  	
   

  
	
   

  	
   

  
	
  800 The Safeguard Building

  	
   

  
	
  435 Devon Park Drive

  	
   

  
	
  Wayne, PA 19087

  	
   

  
	
  Facsimile: 610-482-9105

  	
   

  
	
  Email: sfeder@safeguard.com

  	
   

  
				

 

Signature Page to Commitment Fee Warrant

($.01 Exercise Price)

NOTICE OF EXERCISE

To:          Clarient, Inc.

(1) The undersigned hereby elects to purchase         
Warrant Shares of Clarient, Inc. pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

(2)
Payment shall take the form of (check applicable box):

o    in lawful money of the United States; or

o    the cancellation of such number of Warrant
Shares as is necessary, in accordance with the formula set forth in subsection
3(d), to exercise this Warrant with respect to the maximum number of Warrant
Shares purchasable pursuant to the cashless exercise procedure set forth in
subsection 3(d).

(3) Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

The Warrant Shares shall be
delivered to the following:

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended.

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
									

ASSIGNMENT FORM

(To
assign the foregoing warrant, execute this form and supply required
information.  Do not use this form to
exercise the warrant.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

	
  

  	
  whose address is

  	
   

  

 

Dated:              ,
       

	
  Holder’s Signature:

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Holder’s Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  
					

 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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