Document:

EX-10.3

STOCKHOLDER AGREEMENT

This Stockholder Agreement (this “Agreement”) is dated as of December 10, 2008, by and
among SCM Microsystems, Inc., a Delaware corporation (“Parent”), the persons signing under
the heading “Management Stockholders” on the signature page hereto (each a “Management
Stockholder”) and the persons signing under the heading “Other Stockholders” on the signature
page hereto (each an “Other Stockholder” and together with the Management Stockholders,
each a “Stockholder”).

WHEREAS, Parent, Hirsch Electronics Corporation, a California corporation (the
“Company”), and certain other parties thereto have entered into that certain Agreement and
Plan of Merger dated as of December 10, 2008 (the “Merger Agreement”), pursuant to which,
among other things, through a two-step merger the Company will become a wholly-owned subsidiary of
Parent and be transformed into a new Delaware limited liability company (the “Merger”).

WHEREAS, the Stockholder currently is the holder of shares of the common stock, no par value
per share, of the Company, which shares at the Effective Time (as defined in the Merger Agreement)
will be converted into cash, shares of the common stock, par value $0.001 per share, of Parent
(“Parent Common Stock”) and warrants to purchase shares of Parent Common Stock pursuant to
the terms of the Merger Agreement.

WHEREAS, as an inducement for and a condition to Parent agreeing to enter into the Merger
Agreement and in consideration of the transactions contemplated by the Merger Agreement,
concurrently with the execution of the Merger Agreement, each of the Stockholders has agreed to
enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual premises, representations,
warranties, covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

1. Definitions. Capitalized terms used and not otherwise defined herein but which are
defined in the Merger Agreement shall have the meanings ascribed to them in the Merger Agreement,
unless the context clearly indicates otherwise. The following terms, as used herein, have the
following meanings:

“Acquisition Transaction” means any merger, reorganization, recapitalization,
consolidation, share exchange, business combination or other similar transaction involving Parent
or any of its Subsidiaries.

“Affiliate” means, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such first Person.

“Beneficial Owner” has the meaning set forth in Rule 13d-3 under the Exchange Act, and
derivative terms such as “Beneficially Own,” “Beneficially Owned,” and “Beneficially Ownership”
shall be given corresponding meanings.

“Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in the states of New York, California, or the
country of Germany.

“control,” including the terms “controlled by” and “under common control
with,” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, as general partner or managing member, by contract or
otherwise, including the ownership, directly or indirectly, of securities having the power to elect
a majority of the board of directors or similar body governing the affairs of such Person

“DGCL” means the Delaware General Corporation Law.

“Director” means a member of Parent Board.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Group” means a group within the meaning of Section 13(d)(3) of the Exchange Act.

“Parent Board” means the board of directors of Parent.

“Person” means an individual, corporation, partnership, limited liability company,
limited liability partnership, syndicate, person, trust, association, organization or other entity,
including any governmental entity, and including any successor, by merger or otherwise, of any of
the foregoing.

“Shares” means (i) any shares of Parent Common Stock and any other securities of
Parent, including, options, warrants (including the New Acquiror Warrants) and rights, and any
other securities that are convertible, exercisable or exchangeable for shares of Parent Common
Stock (including shares of the capital stock of the Company that will be converted into securities
of Parent as a result of the Merger), in each case, that are Beneficially Owned by a Stockholder as
of immediately after the Effective Time and (ii) any shares of Parent Common Stock or other
securities of Parent that are or become Beneficially Owned or acquired by a Stockholder or any of
its Affiliates in any capacity or form after the Effective Time and prior to the termination of
this Agreement, whether upon the exercise of options, warrants (including the New Acquiror
Warrants) or rights, the conversion or exchange of convertible or exchangeable securities, or by
means of purchase, dividend, distribution, split-up, recapitalization, merger, reorganization,
consolidation, combination, exchange of shares or the like, gift, bequest, inheritance or as a
successor in interest in any capacity or otherwise.

“Subsidiary” means, with respect to any Person, any other Person controlled by such
first Person, directly or indirectly, through one or more intermediaries. All references in this
Agreement to the Subsidiaries of a Person shall be deemed to include all direct and indirect
Subsidiaries of such Person.

“Transfer” means (i) offer for sale, sell, transfer, tender, pledge, encumber, assign
or otherwise dispose of, or enter into any contract, option or other arrangement or understanding
with respect to, or consent to the offer for sale, sale, transfer, tender, pledge, encumbrance,
assignment or other disposition of, any security or any interest therein; (ii) grant any proxies or
powers of attorney with respect to any security or deposit any security into a voting trust or
enter into a voting agreement with respect to any security.

2. Effective Date. This Agreement shall automatically and immediately become
effective at, and not before, the Effective Time, as such term is defined in the Merger Agreement.
Notwithstanding any other provision of this Agreement, if the Merger Agreement is terminated, this
Agreement shall not become effective, shall have no force or effect, and shall be null and void.

3. Representations and Warranties of the Stockholder. Each Stockholder represents and
warrants to Parent that:

a. Ownership of Shares. Stockholder will be as of the Effective Time the sole record
and Beneficial Owner of the number of Shares listed on Schedule 3.1(a) opposite such
Stockholder’s name and such Shares constitute all of the shares of capital stock or other voting
securities of Parent held (or that will be held) of record or Beneficially Owned by such
Stockholder as of the date hereof, subject to update pursuant to the last sentence of this Section
3.1(a). Stockholder has sole voting power and sole power of disposition, sole power of conversion,
sole power to demand appraisal rights and sole power to agree to all of the matters set forth in
this Agreement, in each case with respect to all of the Shares with no limitations, qualifications
or restrictions on such rights, subject to applicable securities laws, and the terms of this
Agreement. Stockholder will promptly provide written notice to Parent in the event the Stockholder
acquires Beneficial Ownership of any additional Shares after the date hereof and a description
thereof, and Schedule 3.1(a) shall be updated to reflect such acquisitions, and the
representations made in this Section 3.1(a) shall apply to such updated Schedule as of the
date of any such acquisition.

b. Authorization; Binding Agreement. Stockholder has the legal capacity, power and
authority to enter into and perform all of Shareholder’s obligations under this Agreement. The
execution, delivery and performance of this Agreement by Stockholder has been duly authorized by
all necessary action. This Agreement has been duly and validly executed and delivered by
Stockholder and constitutes a valid and binding agreement of Shareholder, enforceable against
Stockholder in accordance with its terms, subject to any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws now or hereafter in effect relating to creditors’ rights
generally or to general principles of equity.

c. No Conflict. The execution, delivery and performance of this Agreement by the
Stockholder does not and will not violate, conflict with, result in a breach of, or constitute a
default (or an event that, without the giving of notice or the lapse of time, or both, would
constitute a default) under (a) formation documents, if any, of the Stockholder, (b) any applicable
law, rule, regulation, judgment, injunction, order or decree binding upon the Stockholder or any of
its assets or properties, except for any such violations which would be immaterial to Parent or the
Stockholder, or (c) any agreement or other instrument binding upon such Stockholder.

4. Standstill. From and after the date of this Agreement until the third (3rd)
anniversary of the Closing Date (the “Standstill Period”), each Stockholder agrees that it
shall not, and shall cause its Affiliates not to, except within the terms of a specific written
consent from Parent, (i) propose or disclose an intent to propose, or enter into or agree to enter
into, singly or with any other Person or directly or indirectly, or encourage others to propose or
enter into, any Acquisition Transaction or any other form of restructuring, merger, tender offer,
recapitalization or similar transaction with respect to Parent or any of its Subsidiaries, (ii)
acquire, or offer, propose or agree to acquire, by purchase or otherwise, record or Beneficial
Ownership of any securities of Parent or any of its Subsidiaries, if, as a result thereof, such
Stockholder, together with its Affiliates and any members of a Group in which such Stockholder is a
member, would, in the aggregate, Beneficially Own shares of Parent Common Stock representing more
than 10% of the total then outstanding shares of Parent Common Stock; provided, however, that for
purposes of this Section 4, the Stockholders shall not be deemed a Group based solely upon
being parties to this Agreement and performing their obligations hereunder, (iii) make, encourage
or in any way participate in, any solicitation of proxies with respect to any voting securities of
Parent or any of its Subsidiaries (including by the execution of action by written consent),
encourage or become a participant in any election contest with respect to Parent or any of its
Subsidiaries, seek to encourage or influence any Person with respect to any such voting securities
or demand a copy of the list of the stockholders or other books and records of Parent or any of its
Subsidiaries, (iv) participate in or encourage the formation of any partnership, syndicate or other
group which owns or seeks or offers to acquire Beneficial Ownership of any such voting securities
or which seeks to affect control of Parent or any of its Subsidiaries or has the purpose of
circumventing any provision of this Agreement, or (v) otherwise act, alone or in concert with
others (including by providing financing for another Person), to seek or to offer to control or
influence, in any manner, the management, the Board or policies of Parent or any of its
Subsidiaries. For the avoidance of doubt, the restrictions on the acquisition of additional
securities set forth in this Section 4.1 shall not (A) apply to participation by the
Stockholder in issuances of securities pursuant to the granting or exercise of employee stock
options or other stock incentives pursuant to Parent’s stock incentive plans, (B) restrict the
ability of any member of the Parent Board of Directors who is affiliated with any Stockholder from
performing his or her duties as a director of Parent and acting in his or her capacity as a
director of Parent, including without limitation, carrying out his or her fiduciary duties to the
stockholders of Parent, or (C) apply to the exercise of any Acquiror Warrants held by Stockholder.

5. Lock-Up; Transfers.

a. Each of the parties set forth on Schedule 5(a) attached hereto (each, a
“Locked-Up Party”) hereby agrees that, without the prior written consent of Parent, he, she
or it shall not from and after the date of this Agreement until the second (2nd) anniversary of the
Closing Date (the “Lock-Up Period”), directly or indirectly Transfer any Shares received by
such Locked-Up Party pursuant to the Merger, and shall not (i) offer, pledge, sell or contract to
sell any option or contract to purchase any of such Shares; (ii) contract to purchase or purchase
any option or contract to sell any of such Shares; (iii) grant any option, right or warrant for the
sale of any of such Shares; (iv) lend or otherwise dispose of (or enter into any transaction or
device designed to, or that could be expected to, result in the disposition by any person at any
time in the future of) any of such Shares or securities convertible into or exercisable or
exchangeable for Shares; or (v) enter into a swap or other derivatives transaction or agreement
that transfers, in whole or in part (directly or indirectly), the economic consequences of
ownership of any shares of such Shares, whether any such swap or transaction described in clauses
(i) through (v) is to be settled by delivery of shares Parent Common Stock or other securities, in
cash or otherwise, or (vi) announce his, her or its intention to do any of the foregoing (any of
the transactions described in clauses (i) through (vi), a “Common Stock Transaction”);
provided, that, subject to any other applicable restrictions, (i) after the one (1) year
anniversary of the Closing Date, such Locked-Up Party may enter into a Common Stock Transaction
with respect to up to 33.3% of the Shares received by such Locked-Up Party pursuant to the Merger,
(ii) after the eighteen (18) month anniversary of Closing Date, such Locked-Up Party may enter into
a Common Stock Transaction with respect to up to an additional 33.3% of the Shares received by such
Locked-Up Party pursuant to the Merger, and (iii) after the two (2) year anniversary of Closing
Date, such Locked-Up Party may enter into a Common Stock Transaction with respect to up to any
remaining Shares received by the Locked-Up Party pursuant to the Merger.

b. For the avoidance of doubt, nothing contained herein shall prevent a Locked-Up Party from,
or restrict the ability of a Locked-Up Party to (i) exercise any options or other convertible
securities granted under the Acquiror incentive plans or (ii) dispose of Shares which it
Beneficially Owns (as such concept is defined pursuant to Rule 13d-3 of the Exchange Act) in
connection with a transaction in which all other holders of Parent Common Stock are entitled to
receive the same consideration for their shares of Shares as would be received by the Locked-Up
Party.

c. Notwithstanding the foregoing, each Locked-Up Party shall be permitted to Transfer the
Securities during the Lock-Up Period (i) as a bona fide gift or gifts, (ii) to any trust for the
direct or indirect benefit of such Locked-Up Party or the immediate family of such Locked-Up Party,
(iii) by will or intestate succession, provided that, in each case, (a) each transferee (or
trustee, as applicable) executes an agreement in a form reasonably satisfactory to Parent pursuant
to which such transferee agrees to be bound by each of the terms and provisions of this Agreement
as if such transferee were a “Stockholder” and (b) any such Transfer shall not involve a
disposition for value. For purposes of this Section, “immediate family” shall mean any
relationship by blood, marriage or adoption, not more remote than first cousin.

d. Each Locked-Up Party agrees that it will not request that Parent or Parent’s transfer agent
register the transfer (book-entry or otherwise) of any certificate or uncertificated interest
representing any Shares. In furtherance of the foregoing, the Parent, and any transfer agent for
the registration or transfer of the shares of Parent Common Stock, are hereby authorized to decline
to make any transfer of the shares of Shares if such transfer would constitute a violation or
breach of this Agreement.

6. Election of Directors.

a. Subject to applicable law and stock exchange and securities market rules and except as
otherwise expressly provided herein, from and after the date of this Agreement until the third
(3rd) anniversary of the Closing Date, at each meeting of the stockholders of Parent, or in any
written consent, the purpose of electing directors of Parent (and at any other time at which the
stockholders of Parent shall have the right to elect directors of Parent), each Stockholder hereby
irrevocably agrees to vote or cause to be voted, all Shares for which such Stockholder is entitled
to vote or other shares for which such Stockholder has the right to vote or direct the voting, in
each case as of the applicable record date and/or meeting date of such meeting or as of the date of
the written consent, and take or cause to be taken such other actions, as may be required from time
to time to: (i) elect any director nominee that is recommended by a majority of the Parent Board or
the nominating committee thereof, (ii) remove any director in the manner allowed by law and Parent
governing documents when such removal is requested for any reason, with or without cause, by a
majority of the Parent Board or the nominating committee thereof, or (iii) oppose the removal of
any director unless such removal is in the manner allowed by law and Parent’s governing documents
and is requested, approved or recommended by a majority of the Parent Board or the nominating
committee thereof; provided, that, at any time at which the stockholders of Parent have the
right to elect directors of Parent and Larry Midland is nominated for election as a director of
Parent, or such individual is a director of Parent and may be subject to a vote for removal, the
Stockholders may vote in their discretion with respect to (but only with respect to) such
individual regardless of the recommendation by a majority of the Parent Board or the nominating
committee thereof; provided, further, that the obligations of this Section 6,
shall terminate in the event that (i) Larry Midland is not nominated by the Parent Board for
re-election at the 2009 annual meeting of stockholders of Parent, or (ii) Larry Midland is
involuntarily removed without cause from the Parent Board, other that due to his resignation,
death, disability or by the vote of the stockholders of Parent in which a majority of the shares of
Parent Common Stock held by the former shareholders of the Company have voted for such removal for
cause.

b. Stockholder hereby constitutes and appoints Parent, which shall act through any of its
officers (the “Proxy Holder”), with full power of substitution, its true and lawful proxy
and attorney-in-fact to vote in accordance with the provisions of Section 6(a) hereof at any
meeting (and any adjournment or postponement thereof) of Parent’s stockholders called for purposes
of considering any board nominations or elections described in Section 6(a) above, or to execute a
written consent of stockholders in lieu of any such meeting, all Shares for which Stockholder is
entitled to vote or for which Stockholder has the right to vote or direct the voting, as of the
relevant record date or meeting date or written consent. Upon the request of Parent, Shareholder
shall cause a similar proxy to be granted by any other record holder of any Shareholder Shares as
to which Shareholder has a beneficial interest or the right to vote or direct the voting.

c. The proxy and power of attorney granted herein shall be irrevocable during the term of this
Section 6, shall be deemed to be coupled with an interest sufficient in law to support an
irrevocable proxy and shall revoke all prior proxies granted by Stockholder. Stockholder shall not
grant any proxy to any person which conflicts with the proxy granted herein, and any attempt to do
so shall be void. The power of attorney granted herein is a durable power of attorney and shall
survive the death or incapacity of Stockholder.

d. If Stockholder fails for any reason to vote his, her or its Stockholder Shares in
accordance with the requirements of Section 6(a) hereof, then the Proxy Holder shall have the right
to vote the Shareholder Shares at any meeting of the Company’s shareholders and in any action by
written consent of the Company’s shareholders in accordance with the provisions of Section 6(a)
hereof. The vote of the Proxy Holder shall control in any conflict between a vote of such Shares
by the Proxy Holder and a vote of such Shares by Stockholder.

e. The Stockholders shall take any and all actions and make all filings as required by and in
compliance with applicable law and stock exchange and securities market rules, including Section
13(d) of the Exchange Act, resulting from and necessary to perform the obligations herein.

7. Restrictive Legend. Until transferred pursuant to Section 9(c)(i) or, if
applicable, Section 9(c)(ii), each certificate representing Shares and any other securities issued
upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event,
shall be stamped or otherwise imprinted with legends in the following form (in addition to any
other legends required under applicable securities laws):

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDER AGREEMENT
BETWEEN THE STOCKHOLDER AND THE CORPORATION, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE CORPORATION AND MAY BE TRANSFERRED AND VOTED ONLY IN ACCORDANCE
WITH CERTAIN TERMS AND RESTRICTIONS OF SUCH AGREEMENT.”

8. Notices. All notices and other communications hereunder shall be in writing and
shall be deemed duly given (a) on the date of delivery if delivered personally, or if by facsimile,
upon written confirmation of receipt by facsimile, (b) on the first (1st) Business Day following
the date of dispatch if delivered utilizing a recognized courier under circumstances in which such
courier guarantees next-day delivery (except in the case of overseas delivery, in which case notice
shall be deemed duly given on the third (3rd) Business Day following the date of dispatch if
delivered utilizing a recognized international courier under circumstances in which such courier
guarantees such delivery) or (c) on the earlier of confirmed receipt or the fifth Business Day
following the date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid (except in the case of overseas delivery, in which case notice shall be
deemed duly given on confirmed receipt if delivered by registered or certified mail, return receipt
requested, postage prepaid). All notices hereunder shall be delivered to the addresses set forth
below, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:

(i) if to Parent:

SCM Microsystems, Inc.

Oskar-Messter-Straße 13,

85737, Ismaning Germany

Attention: Felix Marx

Facsimile: +49.89.9595.5170

with a copy (which shall not constitute notice) to:

Gibson, Dunn & Crutcher LLP

555 Mission Street, Suite 3000

San Francisco, California 94105

Attention: Michael L. Reed

Facsimile: 415.374.8459

(ii) if to Stockholder, to the address of s set forth on the signature page hereto.

9. Miscellaneous

a. Entire Agreement. This Agreement constitutes the entire agreement, and supersede
all prior written agreements, arrangements, communications and understandings and all prior and
contemporaneous oral agreements, arrangements, communications and understandings among the parties
with respect to the subject matter hereof and thereof.

b. Amendments and Waivers. This Agreement may not be amended, modified or
supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in
writing specifically designated as an amendment hereto, signed on behalf of Parent and Stockholders
that hold a majority of the shares of Parent Common Stock held by all Stockholders at the time of
such amendment. Any agreement on the part of a party to any waiver shall be valid only if set
forth in a written instrument executed and delivered by such party. No failure or delay of any
party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such right or power, or any course of conduct, preclude any other or further
exercise thereof or the exercise of any other right or power. The rights and remedies of the
parties hereunder are cumulative and are not exclusive of any rights or remedies which they would
otherwise have hereunder.

c. Transferees. Each Stockholder agrees that this Agreement and the obligations
hereunder shall attach to the Shares held by such Stockholder and shall be binding upon any person
to whom legal or Beneficial Ownership of any such Shares shall pass, whether by Transfer, operation
of law or otherwise, other than through a sale (i) on a stock exchange or similar market mechanism
or (ii) pursuant to Section 5(b)(ii) hereof. Notwithstanding any Transfer of Stockholder
Shares, the transferor shall remain liable for the performance of all of his, her or its
obligations under this Agreement. At any time during the term of this Agreement, in the event of
any permitted Transfer of Securities, other than through a sale on a stock exchange or similar
market mechanism, each transferee (or trustee, as applicable) must execute an agreement in a form
satisfactory to Parent pursuant to which such transferee agrees to be bound by each of the terms
and provisions of this Agreement as if such transferee were a “Stockholder.”

d. Parties in Interest. Other than the parties and their respective successors and
permitted assigns and the other parties to whom rights and remedies are expressly provided under
this Agreement, this Agreement shall not create any third party beneficiary rights or remedies in
any person.

e. Headings. The headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

f. Interpretation; Definitions. When a reference is made in this Agreement to a
Section, Article or Exhibit such reference shall be to a Section, Article or Exhibit of this
Agreement unless otherwise indicated. The headings contained in this Agreement are for convenience
of reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. All words used in this Agreement will be construed to be of such gender or number as
the circumstances require. The word “including” and words of similar import when used in this
Agreement will mean “including, without limitation,” unless otherwise specified. All terms defined
in this Agreement shall have the defined meanings when used in any certificate or other document
made or delivered pursuant thereto unless otherwise defined therein. The definitions contained in
this Agreement are applicable to the singular as well as the plural forms of such terms and to the
masculine as well as to the feminine and neuter genders of such term. Any statute defined or
referred to herein means such statute as from time to time amended, modified or supplemented,
including by succession of comparable successor statutes and references to all attachments thereto
and instruments incorporated therein. References to a Person are also to its permitted successors
and assigns. Each of the parties has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be
construed as if it is drafted by all of the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this
Agreement.

g. Specific Performance. Each Stockholder agrees that Parent would suffer irreparable
damage in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. Accordingly, Parent shall be entitled to
specific performance of the terms hereof, including an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
in any court, this being in addition to any other remedy to which such party is entitled at law or
in equity. Each Stockholder hereby further waives (a) any defense in any action for specific
performance that a remedy at law would be adequate and (b) any requirement under any law to post
security as a prerequisite to obtaining equitable relief.

h. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the Laws of the State of Delaware, without regard to the conflicts of laws provisions thereof
that would apply the laws of any other state.

i. Submission to Jurisdiction. Each of the parties irrevocably agrees that any legal
action or proceeding arising out of or relating to this Agreement brought by any other party or its
successors or assigns shall be brought and determined in any Delaware State or federal court
sitting in the state of Delaware, and each of the parties hereby irrevocably submits to the
exclusive jurisdiction of the aforesaid courts for itself and with respect to its property,
generally and unconditionally, with regard to any such action or proceeding arising out of or
relating to this Agreement and the transactions contemplated hereby. Each of the parties agrees
not to commence any action, suit or proceeding relating thereto except in the courts described
above in Delaware, other than actions in any court of competent jurisdiction to enforce any
judgment, decree or award rendered by any such court in Delaware as described herein. Each of the
parties further agrees that notice as provided herein shall constitute sufficient service of
process and the parties further waive any argument that such service is insufficient. Each of the
parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion
or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby, (a) any claim that it is not personally
subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that
it or its property is exempt or immune from jurisdiction of any such court or from any legal
process commenced in such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that
(i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter
hereof, may not be enforced in or by such courts.

j. Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

k. Severability. Whenever possible, each provision or portion of any provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision or portion of any
provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.

l. Stockholder Acknowledgment. Stockholder acknowledges and agrees that he has had
the opportunity to consult legal counsel in regard to this Agreement, that he has read and
understands this Agreement, that he is fully aware of its legal effect, and that he has entered
into it freely and voluntarily and based on his own judgment and not on any representations,
warranties or promises other than those contained in this Agreement.

m. Further Assurances. Each of the parties agrees to execute, acknowledge, deliver
and perform, and cause to be executed, acknowledged, delivered and performed, at any time and from
time to time, as the case may be, all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the
provisions or intent of this Agreement

n. Counterparts. This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same instrument and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party. This
Agreement may be executed by facsimile signature and a facsimile signature shall constitute an
original for all purposes.

[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized officers as of the date first written above.

SCM MICROSYSTEMS, INC.

By:       /s/ Felix Marx
     

	 	 	Felix Marx

Chief Executive Officer

MANAGEMENT STOCKHOLDERS:

MIDLAND FAMILY TRUST EST JAN 29 2002

 /s/ L. W. Midland

	L.	 	W. MIDLAND, Trustee

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

L W MIDLAND AS CUSTODIAN FOR ASHLEY MARIE MIDLAND
UCGMA

 /s/ L. W. Midland

	L.	 	W. MIDLAND, Trustee

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

L W MIDLAND AS CUSTODIAN FOR ALISON MIDLAND UCGMA

 /s/ L. W. Midland

	L.	 	W. MIDLAND, Trustee

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

(signatures continued on next page)

L W MIDLAND AS CUSTODIAN FOR TAYLOR ANN MIDLAND UCGMA

 /s/ L. W. Midland

	L.	 	W. MIDLAND, Trustee

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

L W MIDLAND AS CUSTODIAN FOR MADISON KATHLEEN MIDLAND
UCGMA

 /s/ L. W. Midland

	L.	 	W. MIDLAND, Trustee

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

 /s/ Larry Midland

	 	 	Name: Larry Midland

Address:

1805 Jamaica Road

Costa Mesa, CA 92626

MANAGEMENT STOCKHOLDERS:

 /s/ John W. Piccininni

	 	 	JOHN W. PICCININNI

Address:

47 Shearwater Pl.

Newport Beach, CA 92660

 /s/ Robert P. Beliles,
Jr. 

	 	 	ROBERT P. BELILES, JR.

Address:

29 Cherry Hills Dr.

	 	 	 	Coto
de Caza, CA 92679

 /s/ Robert C. Zivney,
Jr. 

	 	 	ROBERT C. ZIVNEY, JR.

Address:

18 MacKenzie Lane

Trabuco Canyon, CA 92679

ROBERT C. ZIVNEY & MARJORIE J. ZIVNEY TTEE U/A DTD
JAN 10, 2008 ZIVNEY FAMILY TRUST

 /s/ Robert C. Zivney, Jr.,
Trustee 

	 	 	ROBERT C. ZIVNEY, JR., Trustee

 /s/ Marjorie J. Zivney, Trustee

MARJORIE J. ZIVNEY, Trustee

Address:

18 MacKenzie Lane

Trabuco Canyon, CA 92679

	 	 	 	OTHER
STOCKHOLDERS:

MAURY POLNER AND VIVIAN A. POLNER, AS CO-TRUSTEES OF
THE POLNER LIVING TRUST ESTABLISHED JUNE 8, 2000:

 /s/ Maury Polner,
Co-Trustee

	 	 	MAURY POLNER, Co-Trustee

 /s/ Vivian A. Polner, Co-Trustee

	 	 	VIVIAN A. POLNER, Co-Trustee

Address:

44-647 S. Heritage Palms Dr.

Indio, CA 92201

MAURY POLNER AND VIVIAN A. POLNER, AS CO-TRUSTEES OF
THE POLNER LIVING TRUST ESTABLISHED JUNE 8, 2000:

 /s/ Maury Polner,
Co-Trustee

	 	 	MAURY POLNER, Co-Trustee

 

VIVIAN A. POLNER, Co-Trustee

Address:

44-647 S. Heritage Palms Dr.

	 	 	 	Indio, CA 92201

 /s/ Maury
Polner

	 	 	MAURY
POLNER

 /s/ Douglas J. Morgan

	 	 	DOUGLAS J. MORGAN

Address:

7600 S. Rainbow Blvd., #1129

Las Vegas, NV 89139

PERFORMANCE STRATEGIES INC. PROFIT SHARING PLAN &

TRUST

 /s/ Douglas J. Morgan

	 	 	DOUGLAS J. MORGAN, Trustee

Address:

7600 S. Rainbow Blvd., #1129

Las Vegas, NV 89139

THE MAK FAMILY TRUST DTD 11/27/79

 /s/ Eugene Y. K. Mak

	 	 	EUGENE Y. K. MAK, Trustee

Address:

32681 Mediterranean Dr.

	 	 	 	Dana
Point, CA 92629

	 	 	 
	/s/ Eugene Y. K. Mak

	 	

	 

	 	 
	EUGENE Y. K. MAK

	 	

	PTC CUST IRA FBO EUGENE Y. K. MAK

/s/ Eugene Y. K. Mak

	 	

	 

	 	 

	 	 	EUGENE Y. K. MAK

Address:

32681 Mediterranean Dr.

Dana Point, CA 92629EX-10.1

SIXTH AMENDED AND RESTATED LOAN AGREEMENT

Wachovia Bank, National Association

225 Water Street

Jacksonville, Florida 32202

(Hereinafter referred to as the “Bank”)

HOME DIAGNOSTICS, INC., a Delaware corporation

2400 NW 55th Court

Fort Lauderdale, Florida 32202

(Hereinafter referred to as “Borrower”)

This Sixth Amended and Restated Loan Agreement (“Agreement”) is entered into April 30, 2009, by and
between Bank and Borrower.

This Agreement applies to the loan (the “Loan”) evidenced by that certain Sixth Amended and
Restated Revolving Promissory Note dated of even date herewith (as the same my be amended,
modified, restated or replaced from time to time, the “Note”) and all Loan Documents. The terms
“Loan Documents” and “Obligations,” as used in this Agreement, are defined in the Note.

Relying upon the covenants, agreements, representations and warranties contained in this Agreement,
Bank is willing to extend credit to Borrower upon the terms and subject to the conditions set forth
herein, and Bank and Borrower agree as follows:

LINE OF CREDIT. The purpose of the Loan is to provide for the general corporate purposes of
Borrower. To the extent the making of Advances (as defined in the Note) is not governed by a sweep
agreement with the Bank, Bank may require a signed written request for an Advance in form
satisfactory to Bank, in which event such request shall be delivered to Bank no later than 12:00
noon (local time in Fort Lauderdale, Florida) on the date of the requested Advance, and shall
specify the date (which shall be a Business Day) and the amount of the proposed Advance and provide
such other information as Bank may require. Bank’s acceptance of such a request shall be indicated
by its making the Advance requested. Such an Advance shall be made available to Borrower in
immediately available funds at Bank’s address as set forth on the front of this document. In no
event shall Bank be obligated to make any Advances under the Loan after April 29, 2010 (as same may
be renewed or extended by Bank in writing, the “Termination Date”).

Bank shall have no obligation to make an Advance under this Section if a Default has occurred or if
any event or condition exists, which but for the giving of notice or the passage of time, or both,
would constitute a Default under any Loan Document.

REPRESENTATIONS. Borrower represents that from the date of this Agreement and until final
payment in full of the Obligations: Accurate Information. All information now and hereafter
furnished to Bank is and will be true, correct and complete in all material respects. Any such
information relating to Borrower’s financial condition will accurately reflect Borrower’s financial
condition as of the date(s) thereof (including all contingent liabilities of every type), and
Borrower further represents in all material respects that since the date(s) of such documents,
there has been no event that could be expected to have a Material Adverse Effect on its financial
condition. Authorization; Non-Contravention. The execution, delivery and performance by Borrower,
of this Agreement and other Loan Documents to which it is a party are within its power, have been
duly authorized as may be required and, if necessary, by making appropriate filings with any
governmental agency or unit and are the legal, binding, valid and enforceable obligations of
Borrower in accordance with their respective terms, and do not (i) contravene, or constitute (with
or without the giving of notice or lapse of time or both) a violation of any provision of
applicable law, a violation of the organizational documents of Borrower, or a default under any
agreement, judgment, injunction, order, decree or other instrument binding upon or affecting
Borrower, (ii) result in the creation or imposition of any lien (other than the lien(s) created by
the Loan Documents) on any of Borrower’s assets, or (iii) give cause for the acceleration of any
obligations of Borrower to any other creditor. Asset Ownership. Borrower has good and marketable
title to all of the properties and assets reflected on the balance sheets and financial statements
supplied Bank by Borrower, and all such properties and assets are free and clear of mortgages,
security deeds, pledges, liens, charges, and all other encumbrances, except Permitted Liens and
except as otherwise disclosed to Bank by Borrower in writing and approved by Bank. “Permitted
Liens” means (a) liens for taxes and other statutory liens, landlord’s liens and similar liens
arising out of operation of law so long as the obligations secured thereby are not past due or are
being contested and the proceedings contesting such obligations have the effect of preventing the
forfeiture or sale of the property subject to such lien, and (b) liens described on Exhibit A
hereto, provided, however, that no debt not now secured by such liens shall become secured by such
liens hereafter and such liens shall not encumber any other assets. To Borrower’s knowledge, no
default has occurred under any Permitted Liens and no claims or interests adverse to Borrower’s
present rights in its properties and assets have arisen. Discharge of Liens and Taxes. Borrower
has duly filed, paid and/or discharged all taxes or other claims that may become a lien on any of
its property or assets, except to the extent that such items are being appropriately contested in
good faith and an adequate reserve for the payment thereof is being maintained. Sufficiency of
Capital. Borrower is not, and after consummation of this Agreement and after giving effect to all
indebtedness incurred and liens created by Borrower in connection with the Note and any other Loan
Documents, will not be, insolvent within the meaning of 11 U.S.C. § 101, as in effect from time to
time. Compliance with Laws. Borrower and any subsidiary and affiliate of Borrower and any
guarantor are in compliance in all material respects with all federal, state and local laws, rules
and regulations applicable to its properties, operations, business, and finances, including,
without limitation, any federal or state laws relating to liquor (including 18 U.S.C. § 3617, et
seq.) or narcotics (including 21 U.S.C. § 801, et seq.) and/or any commercial crimes; all
applicable federal, state and local laws and regulations intended to protect the environment; and
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if applicable. None of
Borrower, or any subsidiary or affiliate of Borrower or any guarantor is a Sanctioned Person or has
any of its assets in a Sanctioned Country or does business in or with, or derives any of its
operating income from investments in or transactions with, Sanctioned Persons or Sanctioned
Countries in violation of economic sanctions administered by OFAC. The proceeds from the Loan will
not be used to fund any operations in, finance any investments or activities in, or make any
payments to, a Sanctioned Person or a Sanctioned Country. “OFAC” means the U.S. Department of the
Treasury’s Office of Foreign Assets Control. “Sanctioned Country” means a country subject to a
sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as otherwise published from time to
time. “Sanctioned Person” means (i) a person named on the list of Specially Designated Nationals
or Blocked Persons maintained by OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/, or as otherwise published from time to time, or
(ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a
Sanctioned Country, or (C) a person resident in a Sanctioned Country to the extent subject to a
sanctions program administered by OFAC. Organization and Authority. Borrower is a corporation,
duly created, validly existing and is in good standing under the laws of the State of Delaware, and
has all material (i) powers, (ii) governmental licenses, (iii) authorizations, (iv) consents and
(v) approvals required and authority to operate its business as now conducted. Borrower is duly
qualified to do business, licensed and is in good standing in each jurisdiction where qualification
or licensing is required in order for it to conduct business except where failure to be so
qualified or in good standing, in the aggregate, could have a material adverse effect on the
business, financial position, results of operations, or properties of Borrower.  No Litigation.
With the exception of any legal proceedings disclosed in the Borrower’s Financial Statements, there
are no pending suits, claims or demands against Borrower that have not been disclosed to Bank by
Borrower in writing, and approved by Bank. With the exception of any legal proceedings disclosed
in the Borrower’s Financial Statements, to the best of Borrower’s knowledge, there are no
threatened suits, claims or demands against Borrower that have not been disclosed to Bank by
Borrower in writing, and approved by Bank. ERISA. Each employee pension benefit plan, as defined
in ERISA, maintained by Borrower meets, as of the date hereof, the minimum funding standards of
ERISA and all applicable regulations thereto and requirements thereof, and of the Internal Revenue
Code of 1986, as amended. No “Prohibited Transaction” or “Reportable Event” (as both terms are
defined by ERISA) has occurred with respect to any such plan. Indemnity. Borrower will indemnify
Bank and its affiliates from and against any losses, liabilities, claims, damages, penalties or
fines imposed upon, asserted or assessed against or incurred by Bank arising out of the inaccuracy
or breach of any of the representations contained in this Agreement or any other Loan Documents.
Compliance with Health Care Laws. Borrower and each subsidiary and affiliate of Borrower is in
compliance with all applicable “Health Care Laws”. As used herein, “Health Care Laws” means all
federal, state and local laws, rules, regulations, interpretations, guidelines, ordinances and
decrees primarily relating to patient healthcare, any heath care provider, medical assistance and
cost reimbursement program, now or any time hereafter in effect, including, but not limited to, the
Social Security Act, the Social Security Amendments of 1972, the Medicare-Medicaid Anti-Fraud and
Abuse Amendment of 1977 and the Medicare and Medicaid Patient Program Protection Act of 1987.

AFFIRMATIVE COVENANTS.  Borrower agrees that from the date hereof and until final payment in full
of the Obligations, unless Bank shall otherwise consent in writing, Borrower will:  Access to Books
and Records. Allow Bank, or its agents, during normal business hours, access to the books, records
and such other documents of Borrower as Bank shall reasonably require, and allow Bank, at
Borrower’s expense, to inspect, audit and examine the same and to make extracts therefrom and to
make copies thereof. Business Continuity. Conduct its business in substantially the same manner
and locations as such business is now and has previously been conducted. Certificate of Full
Compliance From Accountant. Deliver to Bank, with the annual financial statements required herein,
a certification by Borrower’s independent certified public accountant that Borrower is in full
compliance with the Loan Documents. Compliance with Other Agreements. Comply with all terms and
conditions contained in this Agreement, and any other Loan Documents, and swap agreements, if
applicable, as defined in the 11 U.S.C. § 101, as in effect from time to time. Estoppel
Certificate. Furnish, within 15 days after request by Bank, a written statement duly acknowledged
of the amount due under the Loan and whether offsets or defenses exist against the Obligations.
Insurance. Maintain adequate insurance coverage with respect to its properties and business
against loss or damage of the kinds and in the amounts customarily insured against by companies of
established reputation engaged in the same or similar businesses including, without limitation,
commercial general liability insurance, workers compensation insurance, and business interruption
insurance; all acquired in such amounts and from such companies as Bank may reasonably require.
Maintain Properties. Maintain, preserve and keep its property in good repair, working order and
condition, making all replacements, additions and improvements thereto necessary for the proper
conduct of its business, unless prohibited by the Loan Documents. Non-Default Certificate From
Borrower. Deliver to Bank, with the Financial Statements required below, a certificate signed by
Borrower, by a principal financial officer of Borrower warranting that no “Default” as specified in
the Loan Documents nor any event which, upon the giving of notice or lapse of time or both, would
constitute such a Default, has occurred and demonstrating Borrower’s compliance with the financial
covenants contained herein. Notice of Default and Other Notices. (a) Notice of Default. Furnish
to Bank immediately upon becoming aware of the existence of any condition or event which
constitutes a Default (as defined in the Loan Documents) or any event which, upon the giving of
notice or lapse of time or both, may become a Default, written notice specifying the nature and
period of existence thereof and the action which Borrower is taking or proposes to take with
respect thereto. (b) Other Notices. Promptly notify Bank in writing of (i) any material adverse
change in its financial condition or its business; (ii) any default under any material agreement,
contract or other instrument to which it is a party or by which any of its properties are bound, or
any acceleration of the maturity of any indebtedness owing by Borrower; (iii) any material adverse
claim against or affecting Borrower or any part of its properties; (iv) the commencement of, and
any material determination in, any material litigation with any third party or any material
proceeding before any governmental agency or unit affecting Borrower; and (v) at least 30 days
prior thereto, any change in Borrower’s name or address as shown above, and/or any change in
Borrower’s structure. Other Financial Information. Deliver promptly such other information
regarding the operation, business affairs, and financial condition of Borrower which Bank may
reasonably request. Payment of Debts. Pay and discharge when due, and before subject to penalty
or further charge, and otherwise satisfy before maturity or delinquency, all obligations, debts,
taxes, and liabilities of whatever nature or amount, except those which Borrower in good faith
disputes. Reports and Proxies. Deliver to Bank, promptly, a copy of all financial statements, and
the following documents: (1) reports, (2) notices, and proxy statements, sent by Borrower to
stockholders, and (3) all regular or periodic reports required to be filed by Borrower with any
governmental agency or authority. Compliance with Health Care Laws. Borrower will and will cause
each subsidiary and affiliate of Borrower to comply with all applicable Health Care Laws and
regulations.

NEGATIVE COVENANTS.  Borrower agrees that from the date hereof and until the later of the
Termination Date or final payment in full of the Obligations, unless Bank shall otherwise consent
in writing, Borrower will not:   Change in Fiscal Year. Change its fiscal year. Change of
Control. Issue, sell or otherwise dispose of any of its equity interests or other securities, or
rights, warrants or options to purchase or acquire any such equity interests or securities that
effectively creates a “Change of Control” of Borrower or otherwise participate in any change in the
ownership of its equity interests that effectively creates a Change of Control” of Borrower,
without the prior written consent of Bank. For purposes of this section “Change of Control” shall
mean a transaction in which a person becomes the beneficial owner of securities acquired directly
from the Borrower in the amount of 50% or more of the combined voting power of the Borrower’s then
outstanding securities. Encumbrances. Create, assume, or permit to exist any mortgage, security
deed, deed of trust, pledge, lien, charge or other encumbrance on any of its assets, whether now
owned or hereafter acquired, other than Permitted Liens. Guarantees. Guarantee or otherwise
become responsible for obligations of any other person or persons, other than the endorsement of
checks and drafts for collection in the ordinary course of business.  Cross Default. Default in
payment or performance of any obligation under any other loans, contracts or agreements of
Borrower, any Subsidiary or Affiliate of Borrower (“Affiliate” shall have the meaning as defined in
11 U.S.C. § 101, as in effect from time to time, except that the term “Borrower” shall be
substituted for the term “Debtor” therein; “Subsidiary” shall mean any corporation of which more
than 50% of the issued and outstanding voting stock is owned directly or indirectly by Borrower),
any general partner of or the holder(s) of the majority ownership interests of Borrower with Bank
or its affiliates. Default on Other Contracts or Obligations. Default on any contract with or
obligation when due to a third party or default in the performance of any obligation to a third
party incurred for money borrowed in excess of $1,000,000.00 in the aggregate with respect to such
contract or obligation. Government Intervention. Permit the assertion or making of any seizure,
vesting or intervention by or under authority of any governmental entity, as a result of which
there is a Change of Control of Borrower. Judgment Entered. Permit the entry of any monetary
judgment or the assessment against, the filing of any tax lien against, or the issuance of any writ
of garnishment or attachment against any property of or debts due, which is not covered by
insurance, transferred to bond or satisfied within sixty (60) days of filing. Prepayment of Other
Debt. Retire any long-term debt entered into prior to the date of this Agreement at a date in
advance of its legal obligation to do so.  Retire or Repurchase Capital Stock. Retire or otherwise
acquire any of its capital stock, other than pursuant to employee compensation plans; provided that
Borrower may spend up to $5,500,000 in any calendar year to repurchase its own common stock.
Liquidation, Mergers, Consolidations and Dispositions of Substantial Assets. During any fiscal
year, dissolve or liquidate, or become a party to any merger or consolidation, sell, transfer,
lease or otherwise dispose of, or agree or contract to dissolve or liquidate, become a party to any
merger or consolidation, sell, transfer, lease or otherwise dispose of, all or a “substantial part”
of its property or assets, except for the sale of inventory in the ordinary course of business, or
sell or dispose of any equity ownership interests in any subsidiary. As used herein, “substantial
part” shall mean property or assets in an aggregate amount in excess of the lower of (i) fifteen
percent (15%) of Borrower’s “Tangible Net Worth”, or (ii) ten percent (10%) of Borrower’s “EBITDA”
(as defined hereinbelow) for such fiscal year. As used herein, “Tangible Net Worth” shall mean
“Total Assets” minus “Total Liabilities”. As used herein, “Total Assets” shall mean all assets
appearing on the Borrower’s balance sheet, less the aggregate amount of any intangible assets of
Borrower including, without limitation, goodwill, franchises, licenses, patents, trademarks, trade
names, copyrights, service marks, and brand names. As used herein, “Total Liabilities” shall mean
all liabilities of Borrower, including capitalized leases and all reserves for deferred taxes, debt
fully subordinated to Bank on terms and conditions acceptable to Bank, and other deferred sums
appearing on the liabilities side of a balance sheet and all obligations as lessee under
off-balance sheet synthetic leases of Borrower, all in accordance with generally accepted
accounting principles applied on a consistent basis. For purposes of this Section, Borrower may be
permitted to enter into a merger with another entity so long as, at the time of such merger, no
Default exists under the Loan, Borrower is the surviving entity, and Borrower provides Bank with
prior notice of such merger, together with copies of all documents reasonbly requested by Bank
relating to such merger.  Acquisitions. Purchase or otherwise acquire the property, stock or assets
of any entity. Notwithstanding the foregoing, Borrower may purchase or otherwise acquire the
property, stock or assets of any entity for an aggregate purchase price less than or equal to
twenty percent (20%) of Borrower’s “EBITDA” (as defined hereinbelow) in the aggregate in any fiscal
year, provided that (i) no Default or condition which, with the giving of notice or passage of
time, or both, would constitute a Default, has occurred under any Loan Document, and (ii) after
giving effect to such acquisition, no Default will have occurred under any Loan Document.
Notwithstanding the foregoing or anything to the contrary contained herein, Borrower may make
purchases or acquisitions for an aggregate purchase price in excess of twenty percent (20%) of
Borrower’s “EBITDA” in any fiscal year provided that (i) no Default or condition which, with the
giving of notice or passage of time, or both, would constitute a Default, has occurred under any
Loan Document, (ii) after giving effect to such acquisition, Borrower shall maintain a pro forma
“Funded Debt to EBITDA Ratio” (as hereinafter defined) of less than 2.00 to 1.00; (iii) prior to
such acquisition, Borrower shall provide Bank with a certificate, acceptable to Bank in its sole
and absolute discretion, signed by a principal financial officer of Borrower warranting that, after
giving effect to such acquisition, no Default will have occurred under any Loan Document; (iv) the
Borrower shall have provided Bank with pro forma current financial statements of Borrower,
acceptable to Bank in its sole and absolute discretion, which demonstrate that, after giving effect
to such acquisition, Borrower shall be in compliance with each of the financial covenants set forth
hereinbelow; and (v) the entity to be acquired does not oppose such acquisition. In the event Bank
determines, in its sole and absolute discretion that such acquired entity shall become a
co-borrower under the Note, Borrower hereby agrees to cooperate with Bank and cause such acquired
entity to execute all documents in favor of Bank as Bank may require in its sole and absolute
discretion. Borrower hereby agrees to pay Bank all fees and costs related to Bank’s review of all
acquisition documents, including Bank’s legal fees and costs in connection with any required
modification of the Loan. Additional Indebtedness. Contract, create, incur, assume, or permit to
exist any additional indebtedness in excess of $500,000.00 in the aggregate in any fiscal year

ANNUAL FINANCIAL STATEMENTS. Borrower shall deliver to Bank, within 90 days after the close of
each fiscal year, audited financial statements reflecting its operations during such fiscal year,
including, without limitation, a balance sheet, profit and loss statement and statement of cash
flows, with supporting schedules and in reasonable detail, prepared in conformity with generally
accepted accounting principles, applied on a basis consistent with that of the preceding year. All
such statements shall be examined by an independent certified public accountant acceptable to Bank.
The opinion of such independent certified public accountant shall not be acceptable to Bank if
qualified due to any limitations in scope imposed by Borrower or any other person or entity. Any
other qualification of the opinion by the accountant shall render the acceptability of the
financial statements subject to Bank’s approval.

PERIODIC FINANCIAL STATEMENTS. Borrower shall deliver to Bank, within 45 days after the close of
each of the first three fiscal quarters in each fiscal year, quarterly financial statements
reflecting its operations during such fiscal quarter, including, without limitation, a balance
sheet, profit and loss statement and statement of cash flows, with supporting schedules; all on a
consolidated basis with respect to Borrower and its subsidiaries and holding company, as
applicable, and in reasonable detail, prepared in conformity with generally accepted accounting
principles (excluding footnotes and subject to year-end adjustments), applied on a basis consistent
with that of the preceding year (except as otherwise noted).

FINANCIAL COVENANTS.  Borrower agrees to the following provisions from the date hereof until final
payment in full of the Obligations, unless Bank shall otherwise consent in writing, using the
financial information for Borrower, its subsidiaries, affiliates and its holding or parent company,
as applicable: Deposit Relationship.  Borrower shall maintain its primary depository account and
cash management account with Bank. Funded Debt to EBITDA Ratio.  Borrower shall, at all times,
maintain a Funded Debt to EBITDA Ratio of not more than 2.50 to 1.00. This covenant shall be
calculated quarterly, on a rolling four quarters basis, upon Bank’s receipt of the periodic
financial statements and annual financial statements required hereinabove. “Funded Debt to EBITDA
Ratio” shall mean the sum of (i) all “Funded Debt” divided by (ii) “EBITDA”. “Funded Debt” shall
mean, as applied to any person or entity, the sum of all indebtedness for borrowed money
(including, without limitation, capital lease and unreimbursed drawings under letters of credit),
or any other monetary obligation evidenced by a note, bond, debenture or other agreement or similar
instrument of that person or entity, excluding any debt subordinated to Bank. “EBITDA” shall mean
the sum of earnings before interest, income taxes, depreciation and amortization except for
purposes of calculating this covenant only, EBITDA shall not include the effect of any non-cash
stock-based compensation. For purpose of this calculation EBITDA shall be computed for the twelve
month period ending as of the end of the most recent fiscal quarter.  Interest Coverage Ratio.
 Borrower shall, at all times, maintain an “Interest Coverage Ratio” of not less than 2.50 to 1.00.
This covenant shall be calculated quarterly, on a rolling four quarters basis, upon Bank’s receipt
of the periodic financial statements and annual financial statements required hereinabove.
“Interest Coverage Ratio” shall mean the sum of (i) EBITDA, minus dividends, withdrawals and
non-cash income, divided by (ii) interest expense. For purposes of this covenant, “EBITDA” shall
mean the sum of earnings before interest, income taxes, depreciation and amortization. 

UNUSED FEE. Commencing on July 15, 2009, and continuing on each July 15, October 15, January 15
and April 15 thereafter, Borrower shall pay to Bank a fee for each day the Loan is outstanding
equal to the product of (i) the Unused Fee Determinant pursuant to the Funded Debt to EBITDA Ratio
as set forth below, multiplied by (ii) the difference between (A) the amount available under the
Note and (B) the aggregate amount of all Advances outstanding under the Note on such day, payable
quarterly in arrears.

	 	 	 
	Funded Debt/EBITDA

	 	Unused Fee Determinant
	 

	 	 
	(as of the end of the most

recently completed fiscal quarter)

	 	

	greater than 2.25 to 1.00

	 	37.5 basis points
	greater than 1.50 to 1.00 but

less than or equal to 2.25 to 1.00

	 	

32.5 basis points
	greater than 0.75 to 1.00 but

less than or equal to 1.50 to 1.00

	 	

25 basis points
	less than or equal to 0.75 to 1.00

	 	20 basis points

The Unused Fee for each quarter shall be calculated on a quarterly basis, at the time Bank receives
the previous quarter’s financial statements from Borrower and shall be calculated, based on such
quarterly financial statements, for the succeeding quarter.

SIXTH AMENDED AND RESTATED LOAN AGREEMENT. This Agreement amends and restates in its entirety that
certain Fifth Amended and Restated Loan Agreement dated as of March 20, 2008, as amended by that
certain letter agreement dated October, 2008 (as amended, the “Original Loan Agreement”) by and
between Borrower and Bank. Should there be any conflict between the terms of the Original Loan
Agreement and this Agreement, the terms of this Agreement shall control.

CONDITIONS PRECEDENT. The obligations of Bank to make the loan and any advances pursuant to this
Agreement are subject to the following conditions precedent:  Additional Documents. Receipt by
Bank of such additional supporting documents as Bank or its counsel may reasonably request.

1

IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above, have caused this
Agreement to be executed under seal.

HOME DIAGNOSTICS, INC., a Delaware corporation

By:       

George S. Godfrey, Vice President

WACHOVIA BANK, NATIONAL ASSOCIATION

By:      

Robert Lozano, Senior Vice President

2

EXHIBIT A

PERMITTED LIENS

The following shall be additional Permitted Liens:

1. Deposits made in the ordinary course of business in connection with workers’ compensation,
unemployment insurance, social security and similar laws.

2. Attachment, judgment and other similar non-tax liens arising in connection with court
proceedings but only if and for so long as (a) the execution or enforcement of such liens is and
continues to be effectively stayed and bonded on appeal, (b) the validity and/or amount of the
claims secured thereby are being actively contested in good faith by appropriate legal proceedings
and (c) such liens do not, in the aggregate, materially detract from the value of the assets of the
person whose assets are subject to such lien or materially impair the use thereof in the operation
of such person’s business.

3. Liens securing debt incurred solely for the purpose of financing the acquisition of equipment,
provided that such lien does not secure more than the purchase price of such equipment and does not
encumber property other than the purchased property.

4. Liens imposed for taxes, assessments or charges of any governmental authority for nonpayment of
taxes, assessments or charges being actively contested in accordance with law (provided that Bank
may require reasonable bonding or other assurances, such as reserving.)

5. Statutory liens of landlords and of carriers, warehousemen, mechanics and materialmen.

6. Liens arising in connection with non-deliverable forward contracts entered into for hedging
purposes in an amount not to exceed $1,000,000.00.

	7.	 	The following other supplier and bank agreements are secured by specific liens on the assets
identified:

Mega International Commercial Bank Co., Ltd. (ASC’s Line of Credit subject to foreign
currency valuation)

CPI Technologies (Supplier Agreement/Machine on HDI’s premises but title and risk of loss is
held by CPI) – Cartoning Machine

US Postage Meter (Rental Agreement) – Postage Meter

3

SIXTH AMENDED AND RESTATED

REVOLVING PROMISSORY NOTE

[DEMAND]

[INCREASE]

$15,000,000.00 April 30, 2009

HOME DIAGNOSTICS, INC., a Delaware corporation

2400 NW 55th Court

Fort Lauderdale, Florida 33301

(Hereinafter referred to as “Borrower”)

Wachovia Bank, National Association

225 Water Street

Jacksonville, Florida 32202

(Hereinafter referred to as “Bank”)

Borrower promises to pay to the order of Bank, in lawful money of the United States of America, at
its office indicated above or wherever else Bank may specify, the sum of Fifteen Million and No/100
Dollars ($15,000,000.00) or such sum as may be advanced and outstanding from time to time, with
interest on the unpaid principal balance at the rate and on the terms provided in this Sixth
Amended and Restated Revolving Promissory Note (including all renewals, extensions or modifications
hereof, this “Note”).

LOAN AGREEMENT. This Note is subject to the provisions of that certain Sixth Amended and Restated
Loan Agreement between Bank and Borrower dated of even date herewith (as the same shall be amended
or modified from time to time, the “Loan Agreement”).

LINE OF CREDIT. Borrower may borrow, repay and reborrow, and, upon the request of Borrower, Bank
shall advance and readvance under this Note from time to time until the maturity hereof (each an
“Advance” and together the “Advances”), so long as the total principal balance outstanding under
this Note at any one time does not exceed the principal amount stated on the face of this Note,
subject to the limitations described in any loan agreement to which this Note is subject. Bank’s
obligation to make Advances under this Note shall terminate (i) if a Default (as defined in the
other Loan Documents) under any Loan Document occurs, (ii) on Bank’s demand or (iii) in any event,
on April 29, 2010, unless extended or renewed by Bank in writing. As of the date of each proposed
Advance, Borrower shall be deemed to represent that each representation made in the Loan Documents
is true as of such date.

USE OF PROCEEDS. Borrower shall use the proceeds of the loan evidenced by this Note for general
corporate purposes.

INTEREST RATE. Interest shall accrue on the unpaid principal balance of this Note from the date
hereof at the LIBOR Market Index Rate as that rate may change from day to day in accordance with
changes in the LIBOR Market Index Rate plus the Applicable Margin (as set forth below), as that
rate may change from day to day in accordance with changes in the LIBOR Market Index Rate (the
“Interest Rate”). “LIBOR Market Index Rate”, for any day, means the rate for 1 month U.S. dollar
deposits as reported on Telerate Successor Page 3750 as of 11:00 a.m., London time, on such day, or
if such day is not a London business day, then the immediately preceding London business day (or if
not so reported, then as determined by Bank from another recognized source or interbank quotation).

For this Note, the “Applicable Margin” will be implemented and computed quarterly based on the
Funded Debt to EBITDA Ratio of the Borrower. The initial Interest Rate shall be based on the LIBOR
Market Index Rate plus an Applicable Margin of 125 basis points. Commencing on July 15, 2009, the
Interest Rate shall be adjusted quarterly upon receipt of Borrower’s periodic financial statements,
based on the ratio of Funded Debt to EBITDA (“Funded Debt/EBITDA”) as follows:

	 	 	 
	Funded Debt/EBITDA

	 	Applicable Margin
	 

	 	 
	greater than 2.25 to 1.00

	 	200 basis points
	greater than 1.50 to 1.00 but

less than or equal to 2.25 to 1.00

	 	175 basis points

	greater than 0.75 to 1.00 but

less than or equal to 1.50 to 1.00

	 	150 basis points

	less than or equal to 0.75 to 1.00

	 	125 basis points

For purposes hereof, “Funded Debt to EBITDA” shall mean the sum of all Funded Debt as of the end of
the most recent fiscal quarter divided by EBITDA for the 12-month period ended as of the end of the
most recent fiscal quarter. “Funded Debt” shall mean, as applied to any person or entity, the sum
of all indebtedness for borrowed money, (including, without limitation, capital lease obligations
and unreimbursed drawings under letters of credit), or any other monetary obligation evidenced by a
note, bond, debenture or other agreement or similar instrument of that person or entity, excluding
any debt subordinated to Bank. “EBITDA” shall mean earnings before interest expense, income taxes,
and depreciation and amortization except that for this purpose earnings shall not include the
effect of any non-cash stock based compensation.

DEFAULT RATE. In addition to all other rights contained in this Note, if a default in the payment
of Obligations occurs, all outstanding Obligations, other than Obligations under any swap
agreements (as defined in 11 U.S.C. § 101) between Borrower and Bank or its affiliates, shall bear
interest at the Interest Rate plus 3% (“Default Rate”). The Default Rate shall also apply from
acceleration until the Obligations or any judgment thereon is paid in full.

INTEREST AND FEE(S) COMPUTATION (ACTUAL/360). Interest and fees, if any, shall be computed on the
basis of a 360-day year for the actual number of days in the applicable period (“Actual/360
Computation”). The Actual/360 Computation determines the annual effective interest yield by taking
the stated (nominal) rate for a year’s period and then dividing said rate by 360 to determine the
daily periodic rate to be applied for each day in the applicable period. Application of the
Actual/360 Computation produces an annualized effective rate exceeding the nominal rate.

PREPAYMENT ALLOWED. This Note may be prepaid in whole or in part at any time. Any prepayment
shall include accrued interest and all other sums then due under any of the Loan Documents (as
defined below). No partial prepayment shall affect Borrower’s obligation to make any payment of
principal or interest due under this Note on the date specified below in the Repayment Terms
paragraph of this Note until this Note has been paid in full.

REPAYMENT TERMS. This Note shall be due and payable in consecutive monthly payments of accrued
interest only, commencing on May 15, 2009, and continuing on the 15th day of each month thereafter
until fully paid. In any event, this Note shall be due and payable in full, including all
principal and accrued interest, on the earlier of (i) the Bank’s demand, or (ii) April 29, 2010,
unless renewed or extended by Bank in writing on terms satisfactory to Bank in its sole discretion.

DEMAND NOTE. THIS IS A DEMAND NOTE AND ALL OBLIGATIONS HEREUNDER SHALL BECOME IMMEDIATELY DUE AND
PAYABLE UPON DEMAND. IN ADDITION, THE OBLIGATIONS HEREUNDER SHALL AUTOMATICALLY BECOME IMMEDIATELY
DUE AND PAYABLE IF BORROWER OR ANY GUARANTOR OR ENDORSER OF THIS NOTE COMMENCES OR HAS COMMENCED
AGAINST IT A BANKRUPTCY OR INSOLVENCY PROCEEDING.

APPLICATION OF PAYMENTS. Monies received by Bank from any source for application toward payment of
the Obligations shall be applied to accrued interest and then to principal. Upon the occurrence of
a default in the payment of the Obligations or a Default (as defined in the other Loan Documents)
under any other Loan Document, monies may be applied to the Obligations in any manner or order
deemed appropriate by Bank.

If any payment received by Bank under this Note or other Loan Documents is rescinded, avoided or
for any reason returned by Bank because of any adverse claim or threatened action, the returned
payment shall remain payable as an obligation of all persons liable under this Note or other Loan
Documents as though such payment had not been made.

DEFINITIONS. Loan Documents. The term “Loan Documents”, as used in this Note and the other Loan
Documents, refers to all documents executed in connection with or related to the loan evidenced by
this Note and any prior notes which evidence all or any portion of the loan evidenced by this Note,
and any letters of credit issued pursuant to any loan agreement to which this Note is subject, any
applications for such letters of credit and any other documents executed in connection therewith or
related thereto, and may include, without limitation, the Loan Agreement, this Note, security
agreements, security instruments, financing statements, any renewals or modifications, whenever any
of the foregoing are executed, but does not include swap agreements (as defined in 11 U.S.C. §
101). Obligations. The term “Obligations”, as used in this Note and the other Loan Documents,
refers to any and all indebtedness and other obligations under this Note, all other obligations
under any other Loan Document(s), and all obligations under any swap agreements (as defined in 11
U.S.C. § 101) between Borrower and Bank, or its affiliates, whenever executed. Certain Other
Terms. All terms that are used but not otherwise defined in any of the Loan Documents shall have
the definitions provided in the Uniform Commercial Code.

LATE CHARGE. If any payments are not timely made, Borrower shall also pay to Bank a late charge
equal to 5% of each payment past due for 10 or more days.

Acceptance by Bank of any late payment without an accompanying late charge shall not be deemed a
waiver of Bank’s right to collect such late charge or to collect a late charge for any subsequent
late payment received.

ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Bank’s reasonable expenses
incurred to enforce or collect any of the Obligations including, without limitation, reasonable
arbitration, paralegals’, attorneys’ and experts’ fees and expenses, whether incurred without the
commencement of a suit, in any trial, arbitration, or administrative proceeding, or in any
appellate or bankruptcy proceeding.

USURY. If at any time the effective interest rate under this Note would, but for this paragraph,
exceed the maximum lawful rate, the effective interest rate under this Note shall be the maximum
lawful rate, and any amount received by Bank in excess of such rate shall be applied to principal
and then to fees and expenses, or, if no such amounts are owing, returned to Borrower.

GRACE PERIOD/CURE PERIOD. Grace Period. The failure of timely payment of the Obligations shall
not be a Default until 5 days after such payment is due. Cure Period. Except as provided below,
any Default, other than non-payment, may be cured within 10 days after written notice thereof is
mailed to Borrower by Bank. Borrower’s right to cure shall be applicable only to curable defaults
and shall not apply, without limitation, to Defaults based upon False Warranty or Cessation;
Bankruptcy. Bank shall not exercise its remedies to collect the Obligations except as Bank
reasonably deems necessary to protect its interest in collateral securing the Obligations during a
cure period.

DEFAULT. If any of the following occurs, a default (“Default”) under this Note shall exist:
Nonpayment; Nonperformance. The failure of timely payment or performance of the Obligations or
Default under this Note or any other Loan Documents. False Warranty. A warranty or representation
made or deemed made in the Loan Documents or furnished Bank in connection with the loan evidenced
by this Note proves materially false, or if of a continuing nature, becomes materially false.
Cross Default. Any default in payment or performance of any obligation under any other loans,
contracts or agreements of Borrower, any Subsidiary or Affiliate of Borrower, with Bank or its
affiliates (“Affiliate” shall have the meaning as defined in 11 U.S.C. § 101, except that the term
“Borrower” shall be substituted for the term “Debtor” therein; “Subsidiary” shall mean any business
in which Borrower holds, directly or indirectly, a controlling interest). Cessation; Bankruptcy.
The dissolution of, termination of existence of, loss of good standing status by, appointment of a
receiver for, assignment for the benefit of creditors of, or commencement of any bankruptcy or
insolvency proceeding by or against Borrower, its Subsidiaries or Affiliates, if any, or any party
to the Loan Documents. Material Adverse Change. Bank determines in good faith, there shall have
occurred any event, condition or circumstance or sets of events, conditions or circumstances or any
change(s), occurs, which taken as a whole has a material adverse affect on (A) the EBITDA projected
over an extended period of time of Borrower and its Subsidiaries, taken as a whole, (B) the
liabilities of Borrower and its Subsidiaries, taken as a whole, or (C) the validity or
enforceability of the Loan Documents taken as a whole.

REMEDIES UPON DEFAULT. If a Default occurs under this Note or any Loan Documents, Bank may at any
time thereafter, take the following actions:  Bank Lien. Foreclose its security interest or lien
against Borrower’s accounts without notice. Acceleration Upon Default. Accelerate the maturity of
this Note and, at Bank’s option, any or all other Obligations, other than Obligations under any
swap agreements (as defined in 11 U.S.C. § 101) between Borrower and Bank, or its affiliates, which
shall be governed by the default and termination provisions of said swap agreements; whereupon this
Note and the accelerated Obligations shall be immediately due and payable; provided, however, if
the Default is based upon a bankruptcy or insolvency proceeding commenced by or against Borrower or
any guarantor or endorser of this Note, all Obligations (other than Obligations under any swap
agreement as referenced above) shall automatically and immediately be due and payable. Cumulative.
Exercise any rights and remedies as provided under the Note and other Loan Documents, or as
provided by law or equity.

FINANCIAL AND OTHER INFORMATION. Borrower shall deliver to Bank such information as required by
the Loan Agreement. Such information shall be true, complete, and accurate.

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and other Loan
Documents shall be valid unless in writing and signed by an officer of Bank. No waiver by Bank of
any Default (as defined in the other Loan Documents) shall operate as a waiver of any other Default
or the same Default on a future occasion. Neither the failure nor any delay on the part of Bank in
exercising any right, power, or remedy under this Note and other Loan Documents shall operate as a
waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.

The Borrower or any person liable under this Note waives presentment, protest, notice of dishonor,
notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and
all other notices of any kind. Further, each agrees that Bank may extend, modify or renew this
Note or make a novation of the loan evidenced by this Note for any period, and grant any releases,
compromises or indulgences with respect to any collateral securing this Note, or with respect to
any other Borrower or any other person liable under this Note or other Loan Documents, all without
notice to or consent of each Borrower or each person who may be liable under this Note or any other
Loan Document and without affecting the liability of Borrower or any person who may be liable under
this Note or any other Loan Document.

MISCELLANEOUS PROVISIONS. Assignment. This Note and the other Loan Documents shall inure to the
benefit of and be binding upon the parties and their respective heirs, legal representatives,
successors and assigns. Bank’s interests in and rights under this Note and the other Loan
Documents are freely assignable, in whole or in part, by Bank. In addition, nothing in this Note
or any of the other Loan Documents shall prohibit Bank from pledging or assigning this Note or any
of the other Loan Documents or any interest therein to any Federal Reserve Bank. Borrower shall
not assign its rights and interest hereunder without the prior written consent of Bank, and any
attempt by Borrower to assign without Bank’s prior written consent is null and void. Any
assignment shall not release Borrower from the Obligations. Applicable Law; Conflict Between
Documents. This Note and, unless otherwise provided in any other Loan Document, the other Loan
Documents shall be governed by and construed under the laws of the state named in Bank’s address on
the first page hereof without regard to that state’s conflict of laws principles. If the terms of
this Note should conflict with the terms of any loan agreement or any commitment letter that
survives closing, the terms of this Note shall control. Borrower’s Accounts. Except as prohibited
by law, Borrower grants Bank a security interest in all of Borrower’s accounts with Bank and any of
its affiliates. Jurisdiction. Borrower irrevocably agrees to non-exclusive personal jurisdiction
in the state named in Bank’s address on the first page hereof. Severability. If any provision of
this Note or of the other Loan Documents shall be prohibited or invalid under applicable law, such
provision shall be ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Note or other such
document. Notices. Any notices to Borrower shall be sufficiently given, if in writing and mailed
or delivered to the Borrower’s address shown above or such other address as provided hereunder, and
to Bank, if in writing and mailed or delivered to Wachovia Bank, National Association, Mail Code
VA7391, P. O. Box 13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code
VA7391, 10 South Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in
writing from time to time. Notices to Bank must include the mail code. In the event that Borrower
changes Borrower’s address at any time prior to the date the Obligations are paid in full, Borrower
agrees to promptly give written notice of said change of address by registered or certified mail,
return receipt requested, all charges prepaid. Plural; Captions. All references in the Loan
Documents to Borrower, guarantor, person, document or other nouns of reference mean both the
singular and plural form, as the case may be, and the term “person” shall mean any individual,
person or entity. The captions contained in the Loan Documents are inserted for convenience only
and shall not affect the meaning or interpretation of the Loan Documents. Advances. Bank may, in
its sole discretion, make other advances which shall be deemed to be advances under this Note, even
though the stated principal amount of this Note may be exceeded as a result thereof. Posting of
Payments. All payments received during normal banking hours after 2:00 p.m. local time at the
office of Bank first shown above shall be deemed received at the opening of the next banking day.
Joint and Several Obligations. Each person who signs this Note as a Borrower (as defined herein)
is jointly and severally obligated. Fees and Taxes. Borrower shall promptly pay all documentary,
intangible recordation and/or similar taxes on this transaction whether assessed at closing or
arising from time to time. LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE
PARTIES HERETO, INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR
ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR
BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT
BETWEEN OR AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY
PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR CONSEQUENTIAL
DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY
RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY ARISE IN THE FUTURE IN
CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY
ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE. Patriot Act Notice. To help fight the funding of
terrorism and money laundering activities, Federal law requires all financial institutions to
obtain, verify, and record information that identifies each person who opens an account. For
purposes of this section, account shall be understood to include loan accounts.

SIXTH AMENDED AND RESTATED REVOLVING PROMISSORY NOTE. This Sixth Amended and Restated Revolving
Promissory Note amends, restates, replaces, increases and supersedes in its entirety that certain
Fifth Amended and Restated Revolving Promissory dated as of March 20, 2008 in the principal amount
of $10,000,000.00, executed by Borrower and made payable to the order of Bank (the “Original
Note”). The current outstanding principal balance of the Original Note is $0.00. It is the
intention of Borrower and the Bank that while this Note amends, restates, replaces, increases and
supersedes the Original Note in its entirety, it is not in payment of or satisfaction of the
Original Note, but is rather the substitute of one evidence of debt for another without any intent
to extinguish the old. Should there be any conflict between any of the terms of the Original Note
or this Note, the terms of this Note shall control. The Original Note is attached hereto and shall
only be negotiated with this Note.

WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER BY EXECUTION
HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS NOTE, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
CONNECTION WITH THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT
TO BANK TO ACCEPT THIS NOTE. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL SUPERSEDE AND
REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN ANY
LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED TO
OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS NOTE.

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be
executed under seal.

HOME DIAGNOSTICS, INC., a Delaware corporation

By:       

George S. Godfrey, Vice President

	 	 	 	 	 
	STATE OF TENNESSEE)

	 	

) SS.:

	COUNTY OF DAVIDSON

	 	 	)	 

The foregoing instrument was acknowledged before me April   , 2009, by George S. Godfrey,
as Vice President of HOME DIAGNOSTICS, INC., a Delaware corporation, on behalf of the corporation.
He is personally known to me or who has/have produced a driver’s license as identification and did
(not) take an oath.

Name:

Notary Public, State of Tennessee

My commission expires:

4

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