Document:

Exhibit 10.11

 

SIXTH AMENDMENT TO LOAN AGREEMENT

 

This Sixth Amendment to Loan Agreement (this “Amendment”) is entered
into as of February 28, 2006, by and between COMERICA BANK (“Bank”), and
CLARIENT, INC., a Delaware corporation, formerly known as Chromavision Medical
Systems, Inc. (“Borrower”).

 

RECITALS

 

Borrower and Bank are parties to that certain Loan Agreement dated as
of February 13, 2003, as amended from time to time, including but not limited
to that certain First Amendment to Loan and Security Agreement dated as of
October 21, 2003, that certain Second Amendment to Loan and Security 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 and Security
Agreement dated as of March 11, 2005, that certain Fifth Amendment to Loan and
Security Agreement dated as of August 1, 2005 and that certain Loan Extension
Letter Agreement dated as of January 26, 2006 (collectively, the “Agreement”). The
parties desire to amend the Agreement in accordance with the terms of this
Amendment.

 

NOW, THEREFORE, the parties agree as follows:

 

1.             The following defined term in Section 1.1 of the
Agreement is amended and restated in its entirety to read as follows:

 

“‘Revolving Maturity Date’
means February 28, 2007.”

 

2.             Section 6.8 of the Agreement is amended and restated in
its entirety to read as follows:

 

“6.8         Tangible Net Worth. Borrower
shall maintain, as of the last day of each calendar month, a Tangible Net Worth
of not less than $0.”

 

3.             Exhibit C to the Agreement is amended and replaced with
Exhibit C attached hereto.

 

4.             All references in the Agreement to Bank’s address at
2321 Rosecrans Ave., Suite 5000, El Segundo, CA 90245, shall mean and refer to
75 E Trimble Road, San Jose, CA 95131.

 

5.             Unless otherwise defined, all initially capitalized
terms in this Amendment shall be as defined in the Agreement. The Agreement, as
amended hereby, shall be and remain in full force and effect in accordance with
its respective terms and hereby is ratified and confirmed in all respects. Except
as expressly set forth herein, the execution, delivery, and performance of this
Amendment shall not operate as a waiver of, or as an amendment of, any right,
power, or remedy of Bank under the Agreement, as in effect prior to the date
hereof.

 

6.             Borrower represents and warrants that the
Representations and Warranties contained in the Agreement are true and correct
as of the date of this Amendment, and that no Event of Default has occurred and
is continuing.

 

7.             As a condition to the effectiveness of this Amendment,
Bank shall have received, in form and substance satisfactory to Bank, the
following:

 

(a)           this Amendment, duly executed by
Borrower;

 

(b)           a Certificate of the Secretary of
Borrower with respect to incumbency and resolutions authorizing the execution
and delivery of this Amendment;

 

 

(c)           an Affirmation of Guaranty from each
Guarantor in the form attached hereto, together with resolutions authorizing
the execution and delivery of the same;

 

(d)           an amendment fee in the amount of
$5,000, which shall be due and payable and nonrefundable on the date hereof,
and which may be debited from any of Borrower’s accounts;

 

(e)           all Bank Expenses incurred through
the date of this Amendment, which shall be due and payable and nonrefundable on
the date hereof, and which may be debited from any of Borrower’s accounts; and

 

(f)            such other documents, and completion
of such other matters, as Bank may reasonably deem necessary or appropriate.

 

8.             This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.

 

[Signature Page
Follows]

 

2

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the first date above written.

 

 

	
   

  	
  CLARIENT, INC.,
  formerly known as Chromavision Medical

  Systems, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

EXHIBIT C

COMPLIANCE CERTIFICATE

 

	
  TO:

  	
  COMERICA BANK

  
	
   

  	
   

  
	
  FROM:

  	
  CLARIENT, INC.

  

 

The undersigned authorized officer of CLARIENT, INC.
hereby certifies that in accordance with the terms and conditions of the Loan
Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in
complete compliance for the period ending                            
with all required covenants except as noted below and (ii) all
representations and warranties of Borrower stated in the Agreement are true and
correct in all material respects as of the date hereof. Attached herewith are
the required documents supporting the above certification. The Officer further
certifies that these are prepared in accordance with Generally Accepted
Accounting Principles (GAAP) and are consistently applied from one period to
the next except as explained in an accompanying letter or footnotes.

 

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

 

	
  Reporting Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly
  financial statements

  	
   

  	
  Monthly
  within 30 days

  	
   

  	
  Yes

  	
  No

  
	
  Annual
  (CPA Audited)

  	
   

  	
  FYE
  within 120 days

  	
   

  	
  Yes

  	
  No

  
	
  10K
  and 10Q

  	
   

  	
  (as
  applicable)

  	
   

  	
  Yes

  	
  No

  
	
  Total
  amount of Borrower’s cash and investments

  	
   

  	
  Amount:
  $               

  	
   

  	
  Yes

  	
  No

  
	
  Total
  amount of Borrower’s cash and investments maintained with Bank

  	
   

  	
  Amount:
  $               

  	
   

  	
  Yes

  	
  No

  

 

	
  Financial Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Measured on a Monthly Basis:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum Tangible Net Worth

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
   

  	
   

  	
  Yes

  	
  No

  	
   

  
											

 

	
  Comments
  Regarding Exceptions: See Attached.

  	
   

  	
  BANK
  USE ONLY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Received
  by:

  	
   

  
	
  Sincerely,

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Verified:

  	
   

  
	
  SIGNATURE

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
  TITLE

  	
   

  	
   

  
	
   

  	
   

  	
  Compliance
  Status

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  
	
  DATE

  	
   

  	
   

  
									

 

 

AFFIRMATION OF GUARANTY

 

This AFFIRMATION OF GUARANTY
is made as of February 28, 2006, by the undersigned (each, a “Guarantor” and
collectively, the “Guarantors”) for the benefit of Comerica Bank (“Bank”).

 

RECITALS

 

Bank and CLARIENT, INC.,
formerly known as Chromavision Medical Systems, Inc. (“Borrower”) are parties
to that certain Loan Agreement dated as of February 13, 2003, as amended from
time to time (collectively, the “Loan Agreement”). Each Guarantor executed for
the benefit of Bank a Second Amended and Restated Unconditional Guaranty dated
as of August 1, 2005 (the “Guaranty”), guarantying all amounts owing by
Borrower to Bank. Borrower and Bank propose to enter into a Sixth Amendment to
Loan Agreement of even date herewith (the “Amendment”), which provides that
Bank will, under certain circumstances, amend the Loan Agreement by, among
other things, extending the maturity date. Bank has agreed to enter into the
Amendment provided, among other things, that each Guarantor consents to the
entry by Borrower into the Amendment and related documents and agrees that the
Guaranty will remain effective.

 

AGREEMENT

 

NOW, THEREFORE, each Guarantor agrees as follows:

 

1.             Guarantor consents to the
execution, delivery and performance by Borrower of the Amendment and the
documents and instruments executed in connection therewith, as well as all
other amendments and modifications to the Loan Agreement.

 

2.             The Guaranty is and shall remain in
full force and effect with respect to all of Borrower’s Obligations (as defined
in the Loan Agreement) as modified by the Amendment and otherwise. Guarantor
confirms that Guarantor has no defenses against its obligations under the
Guaranty.

 

3.             Guarantor represents and warrants
that the Representations and Warranties contained in the Guaranty are true and
correct as of the date of this Affirmation. Unless otherwise defined, all
capitalized terms in this Affirmation shall be as defined in the Guaranty.

 

IN WITNESS WHEREOF, the
undersigned Guarantor has executed this Affirmation of Guaranty as of the first
date above written. 

 

 

	
   

  	
  SAFEGUARD DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SAFEGUARD SCIENTIFICS (DELAWARE), INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.45

 

ASSIGNMENT AGREEMENT AND
BILL OF SALE

 

This ASSIGNMENT AGREEMENT AND BILL OF SALE (“Agreement”)
is entered into effective as of the 1st day of March, 2006, by and
between MED ONE CAPITAL, INC. (“Med One”) and CLARIENT, INC. (“Clarient”). Med
One and Clarient shall sometimes hereinafter be referred to collectively as the
“Parties” and individually as a “Party.”

 

A.                                   Clarient
owns certain ChromaVision ACIS equipment (the “Equipment”), which it leases to
various medical service providers throughout the United States. The Equipment
is more particularly described on the attached Exhibit A, which is incorporated
herein by this reference.

 

B.                                     Clarient
desires to sell the Equipment to Med One and also assign to Med One all of
Clarient’s rights, title and interest under the various ACISTM Utilization
Agreements or other similar lease or rental agreements (collectively, the “Leases”
and individually a “Lease”) associated with the Equipment. The Leases are also more
particularly described on the attached Exhibit A.

 

C.                                     Med
One desires to purchase the Equipment, to receive by assignment all of Clarient’s
rights, title and interest in the Leases, and to assume all of Clarient’s duties
and obligations arising out of the Leases, subject to the terms and conditions
of this Agreement.

 

THEREFORE, based on the foregoing Recitals and for
good and valuable consideration, the receipt, adequacy and legal sufficiency of
which are expressly acknowledged by the Parties hereto, it is agreed as
follows:

 

1.                                       Purchase
and Sale of the Equipment; Assignment and Assumption of the Leases. In
exchange for the payment to Clarient of $2,320,461.46 (the “Purchase Price”),
Clarient hereby sells, conveys, transfers and assigns to Med One all of the
Equipment and assigns all of its rights, title and interest in the Leases, and
Med One hereby purchases the Equipment from Clarient, receives by assignment
all of Clarient’s rights, title and interest in the Leases, and expressly
assumes all of Clarient’s duties and obligations arising out of the Leases,
which assumption shall be subject to the terms and conditions of this Agreement.
This Agreement shall also be deemed to be the Bill of Sale with respect to the
Equipment. The assignment of the Leases is made without recourse to Clarient
except in the event of fraud or intentional misrepresentation. Med One shall be
entitled to receive all payments under the Leases from and after the date of
this Agreement, subject to the provisions noted in Section 3. The Parties
acknowledge and agree that Clarient is not transferring to Med One, and Med One
is not acquiring from Clarient, any ownership rights in the ACISTM trademark
(the “Mark”). However, Clarient hereby grants Med One a royalty-free,
non-exclusive, non-transferable license to use the Mark solely for the purpose
of marketing, selling and leasing the Equipment during the period that the
Leases are in effect and during any applicable remarketing and subsequent lease
period. Med One shall use the Mark only in accordance with the specifications
provided by Clarient from time to time and shall afford Clarient the right to
inspect any and all materials prepared by Med One depicting the Mark at any
time reasonably requested by Clarient so as to ensure that the Mark is being
used in accordance with such specifications. Med One shall not have the right
to assign, mortgage, encumber or sublicense the foregoing license and, for this
purpose, any direct or indirect change of control shall be deemed an assignment.
Med One shall not use the Mark as part of its name.

 

2.                                       Acknowledgment
Certificate. On the date hereof, Clarient has provided Med One with a fully
executed “Acknowledgement Certificate” (the form of which is attached hereto
and incorporated herein by this reference as Exhibit B) from each medical
service provider (collectively, “Customers” and individually a “Customer”)
under the Leases.

 

3.                                       Lock
Box Arrangements. Clarient acknowledges that the Customers have been
remitting payments under the leases to a certain P.O. Box described as
follows:  Lockbox
#51268, Los Angeles, California 90051-5568. The Parties will
attempt to have that P.O. Box transferred to Med One under the Med One business
name of Clarient Financial Services or a similar name so that payments under
the Leases will be made to Med One. If so transferred, the existing P.O. Box
will be under the exclusive control of Med One and Clarient shall have no
access thereto. In the event the existing P.O. Box cannot be so transferred for
any reason, Med One will establish a new P.O. Box under the business name of
Clarient Financial Services or a similar name so that payments under the Leases
will be made to Med One. Med One shall have exclusive access and control to any
such new P.O. Box. The Parties will immediately notify the Customers in writing
of any 

 

 

change in the name of the
payee (e.g., Clarient Financial Services) or location of the payments (e.g., if
a new P.O. Box is used) under the Leases. Clarient agrees to immediately
transmit to Med One any payments and copies of any other correspondence of any
kind that it directly or indirectly receives from the Customers after the date
of this Agreement. The Parties expressly agree that Clarient will be entitled
to all Customer payments under the Leases invoiced prior to March 1, 2006, and
that Med One will entitled to all Customer payments invoiced after March 1,
2006. The Parties acknowledge and agree that Clarient is not transferring to
Med One, and Med One is not acquiring from Clarient, any ownership rights in
the Clarient name. However, Clarient hereby grants Med One a royalty-free,
non-exclusive, non-transferable license to use the name “Clarient Financial
Services” solely for the purpose of collecting payments from Customers with
respect to the Leases. Med One shall afford Clarient the right to inspect any
and all materials prepared by Med One depicting the Clarient Financial Services
name at any time reasonably requested by Clarient so as to ensure that the
Clarient Financial Services name is not being misused. Med One shall not have
the right to assign, mortgage, encumber or sublicense the foregoing license
and, for this purpose, any direct or indirect change of control shall be deemed
an assignment.

 

4.                                       Clarient’s
Remarketing Obligation; Escrow. Clarient hereby agrees to immediately remarket
any Equipment that is returned by a Customer for any reason within thirty-six
(36) months following the date of this Agreement. In exchange for Clarient’s
remarketing efforts, Med One will pay to Clarient the amount of $500 per unit
(i.e., per box) of remarketed and replaced Equipment, which both parties
consider to be a reasonable fee commensurate with the effort involved to secure
a replacement lease/account. The purpose of this remarketing obligation will be
to ensure that Med One receives at least thirty-six (36) months of payments
with respect to each item of Equipment. In performance of its remarketing
obligations, both parties acknowledge that Clarient is not required to give greater
priority to the remarketing of the Equipment over similar property owned or
produced by Clarient, but will give the same priority thereto. To further
secure this 36-month cash flow, to protect against any losses associated with
the leasing/rental of the Equipment during each applicable 36-month period, and
to assist and support Clarient’s remarketing efforts, Clarient will deposit $232.046.15
(the “Escrowed Funds”) into an escrow account (the “Escrow Account”) with a
mutually acceptable escrow agent (the “Escrow Agent”), which Escrow Account
will be governed by mutually acceptable escrow instructions, the execution of
which is a condition to Med One’s obligation to pay the Purchase Price. Any
fees charged by the Escrow Agent will be paid from the Escrowed Funds.

 

The Escrow Account will be in Clarient’s name, but the
escrow instructions will not allow Clarient or Med One to withdraw money from
the Escrow Account except in accordance with the terms of the escrow
instructions. The escrow instructions shall permit Med One to withdraw from the
Escrow Account an amount equal to the then Present Value (as defined below) of
any particular Equipment (using a 10% annual rate of return) that is returned
by a Customer in the event remarketing efforts on that particular Equipment are
unsuccessful within one hundred twenty (120) days following the date of Med One’s
notice to Clarient of the cancellation or termination of a particular Lease. The
“Present Value” shall be determined by creating an amortization schedule using
the beginning balance/value of the Equipment as it appears on Exhibit A and
incorporating in such amortization schedule the date and net amount of all cash
payments actually received by Med One. The amortization schedule will be
created with an 11% interest rate. Accordingly, the Present Value will be the
remaining balance reflected on the amortization schedule as of the date of the
withdrawal from the Escrow Account. The escrow instructions will provide
examples of how this type of claim will be calculated. Any Escrowed Funds
remaining in the Escrow Account on March 31, 2009 shall be returned to Clarient,
subject to the provisions noted at the end of Section 6.

 

Finally, Clarient may receive certain credits toward
the Escrowed Funds to the extent Clarient successfully assists Med One in
selling/leasing a unit of Equipment to a new customer. In particular, a credit
will be created to the extent a sale price/lease price of the Equipment is
greater than the Present Value (as calculated above) in an amount equal to 50%
of the positive difference less any out of pocket costs paid by Med One as
sales commissions (e.g., the $500 per unit remarketing fee described in this
Section 4). For example, if Clarient sells/leases a unit of Equipment for
$100,000 that has a Present Value of $50,000, Clarient will earn a credit of $25,000
(i.e., 50% of $50,000) less the out of pocket costs paid by Med One as sales
commissions on the sale/lease. This credit may then be used by Clarient to
offset any money that would otherwise be payable to Med One out of the Escrow
Account pursuant to the provisions set forth herein and in the escrow
instructions.

 

5.                                       Clarient’s
Customer Account Servicing Obligation. Clarient shall continue to service
the Equipment and Leases acquired by Med One hereunder in the same manner as
Clarient serviced such Equipment and Leases (and related Customers) prior to
the sale of the Equipment to Med One including, without limitation, any warranty,
maintenance or replacement obligations and the cost thereof. Clarient hereby
agrees to indemnify, defend and hold Med One harmless from and against any such
servicing obligations relating to the Leases. In exchange for such ongoing account
servicing, Clarient 

 

2

 

will receive a servicing
fee of 2.5% of the gross cash receipts actually paid by the Customers with
respect to the Equipment and the Leases acquired by Med One hereunder. In
exchange for such ongoing Equipment maintenance and replacement, Clarient will
receive another fee of 2.5% of the gross cash receipts actually paid by the
Customers with respect to the Equipment and the Leases acquired by Med One
hereunder. Once Med One’s investment in a particular set of Equipment has been
paid back in full with at least an 11% return on investment for any particular
Equipment (e.g., see the discussion of the amortization schedule in Section 4
above), the servicing fee will be increased. At such time, in addition to the 5.0%
of the gross cash receipts on the particular Equipment, Clarient will be
entitled to be paid 30% of the Net Revenue (as defined below) associated with
that particular set of Equipment. “Net Revenue” shall be the gross cash
receipts on the particular Equipment less the 2.5% servicing fee described
above and the 2.5% maintenance fee described above paid to Clarient. Med One
will pay these servicing and maintenance fees to Clarient on or before the 15th
day of each month for the cash receipts associated with the previous month. Clarient
shall provide Med One with a description of its account servicing activities in
either a written or electronic format and at such times as are determined by
Med One in its sole but reasonable discretion. Notwithstanding anything
contained herein to the contrary, Clarient shall not be deemed to be a partner
or joint venturer of Med One with respect to any of the accounting servicing
activities or any of the compensation payable to Clarient described herein. Rather,
Clarient shall at all times be considered and deemed to be an independent
contractor of Med One. Clarient’s account service obligations shall continue so
long as any of the Equipment is being leased or rented by Med One.

 

6.                                       Future
Purchase of Equipment Leased to Additional Customers. Clarient hereby
agrees to sell, convey, transfer and assign to Med One certain ChromaVision
ACIS equipment (the “Additional Equipment”) and hereby agrees to assign all of
its rights, title and interest in certain ACISTM Utilization Agreements or other
similar lease or rental agreements (collectively, the “Additional Leases”),
which are leased/rented by those medical service providers listed on Exhibit C
(the “Additional Customers”). The Additional Equipment and the Additional
Leases are more particularly described on the attached Exhibit C, which is
incorporated herein by this reference. Med One shall pay $1,004,116.54 (the “Additional
Purchase Price” – i.e., $269,022.70 for the New Orleans equipment and accounts
and $735,093.84 for all other equipment and accounts) for the Additional Equipment
and the Additional Leases expressly conditioned upon and subject to the
following:  (a) Med One must receive and
accept, in its sole but reasonable discretion, an Acknowledgment Certificate
from each of the Additional Customers, (b) each of the Additional Customers
must be making regular payments under the Additional Leases at the time of
assignment to Med One, and (c) Med One must determine, in its sole discretion,
if and when to purchase the Additional Equipment and the Additional Leases. Med
One will notify Clarient in writing or by email of its decision whether or not
purchase any particular Additional Equipment and Additional Leases within
forty-five (45) days following the date on which Med One receives fully
executed Acknowledgement Certificate for such Additional Equipment and
Additional Leases.

 

Med One’s acquisition of the Additional Equipment and
the Additional Leases shall be subject to all of the terms, conditions,
covenants, obligations, representations and warranties contained herein with
respect to the Equipment and the Leases. In connection with its receipt of the Additional
Purchase Price, Clarient shall deposit an additional $100,411.65 (or 10% of the
actual Purchase Price paid for the Additional Equipment) into the Escrow
Account, and such $100,411.65 shall be deemed to be part of the Escrowed Funds
for all purposes. Med One shall notify Clarient in writing if and when it is
prepared to pay the Purchase Price for the Additional Equipment and the Additional
Leases. Once the Purchase Price is paid to Clarient, the Additional Equipment
shall become part of the defined term “Equipment” and the Additional Leases
shall become part of the defined term “Leases” for purposes of this Agreement. Notwithstanding
the foregoing, and except as otherwise contemplated in Section 4, Clarient
shall not be entitled to a return of any remaining portion of the additional
money deposited into the Escrow Account pursuant to this Section 6 for a period
of 37 months from the date on which such additional money is deposited into the
Escrow Account to ensure that the Escrow Account properly serves its full
purpose with respect to the Additional Customers, the Additional Equipment and
the Additional Leases.

 

7.                                       Clarient’s
Representations and Warranties. Clarient hereby represents and warrants the
following to Med One:

 

a.                                       Clarient
hereby transfers the Equipment to Med One free and clear of any and all liens
and encumbrances whatsoever, and Med One shall receive good and marketable
title to the Equipment. Clarient has full right, power and authority to
transfer the Equipment upon the terms and conditions in this Agreement. Any and
all manufacturer warranties shall continue in full force and effect for Med One’s
benefit in accordance with the terms and conditions of such warranties.

 

3

 

b.                                      Each
Lease is in full force and effect and enforceable against the applicable
Customer in accordance with its terms and conditions. No Customer is in default
under any of the Leases. Clarient is not aware of any facts or circumstances
that would impair the validity or enforceability of any of the Leases or Med
One’s rights to receive payments thereunder.

 

c.                                       Clarient
subordinates its rights to payment from any Customer arising prior to March 1,
2006 to Med One’s rights to payment from such Customer arising after March 1,
2006 (i.e., if both Med One and Clarient are forced to seek recovery of past
due payments (over 30 days from date of invoice) from any particular Customer,
Med One shall be entitled to recover its past due payments before Clarient
recovers its past due payments of such Customer’s outstanding receivables).

 

d.                                      The
execution, delivery and performance of this Agreement by Clarient shall not
violate any document, agreement, regulation or law applicable to or governing Clarient,
and this Agreement shall be binding upon Clarient in accordance with its terms
and conditions.

 

e.                                       Clarient
has not assigned all or any interest in the Equipment or in the Leases or
entered into any agreement to make any such assignment.

 

f.                                         Clarient
has complied in all material respects with all applicable laws, regulations and
ordinances relating to the Equipment and the Leases.

 

8.                                       Med
One’s Representations and Warranties. Med One hereby represents and
warrants the following to Clarient:  (a)
Med One has full power and authority to enter into this Agreement, (b) the
execution, delivery and performance of this Agreement by Med One shall not
violate any document, agreement, regulation or law applicable to or governing
Med One, and (c) this Agreement shall be binding upon Med One in accordance
with its terms and conditions.

 

9.                                       Indemnification.
Each Party agrees to indemnify, defend, and hold harmless the other Parties
from and against any and all loss, liability, or damage, of any nature, arising
out of or due to a breach of any representation, warranty, covenant, obligation
or undertaking of such Party contained in this Agreement or in any related
document.

 

10.                                 No
Broker. Each Party represents and warrants to the other Party that neither
it nor any of its employees, officers, directors, managers, agents or affiliates
has agreed to pay, or taken any action that will result in any individual or
entity becoming entitled to receive any broker fee, finder’s fee or other
similar fee or commission with respect to the transactions described herein.

 

11.                                 Attorneys’
Fees. In the event of a breach of the terms of this Agreement, the
breaching Party shall pay all enforcement and collection costs of the
non-breaching Party including, without limitation, reasonable attorneys’ fees
and expenses.

 

12.                                 Binding
Effect. This Agreement is binding upon the representatives, successors, and
assigns of the Parties and, together with the exhibits and documents identified
herein, constitutes their entire agreement with respect to the matters
discussed herein.

 

13.                                 Merger;
Modifications. All oral representations or prior negotiations (including,
without limitation, the Parties’ signed letter of intent) are deemed to have
been merged into this Agreement, and the documentation described or identified
herein, and this Agreement may not be changed or modified except by a written
document signed by all of the Parties or their authorized agents.

 

14.                                 Governing
Law. This Agreement shall be governed by the laws of the State of Utah,
without reference to any conflicts of law principles, which may look to the
substantive law of another jurisdiction with respect to the interpretation of
this Agreement. The courts of Salt Lake County, Utah shall have exclusive
jurisdiction in connection with any dispute arising out of this Agreement.

 

4

 

15.                                 Enforceability.
If any provision of this Agreement is held to be invalid or unenforceable, this
Agreement shall be considered divisible as to such provision and such provision
shall thereupon be inoperative and shall not be part of the consideration
moving between the Parties. The remaining provisions of this Agreement shall,
however, continue to be valid and binding and of like effect as though such
invalid provision was not included herein.

 

16.                                 Counterparts;
Facsimile Signatures. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument. Facsimile transmission
or retransmission of any signed original documents shall be deemed the same as
delivery of the originally signed documents such that facsimile signatures
shall form a legally binding contract.

 

17.                                 Assignment.
This Agreement may not be assigned by Clarient without the prior, written
consent of Med One, which consent may be withheld, delayed or conditioned by
Med One in its sole discretion; provided, however, that Clarient may assign
this Agreement without the prior, written consent of Med One to any person or
entity that acquires all or substantially all of the assets of Clarient or its
instrument systems business (by way of asset sale, merger or otherwise).

 

18.                                 Notices.
All notices and other communications required or permitted hereunder shall be
in writing and delivered by certified or registered mail, postage prepaid,
return receipt requested or sent by facsimile transmission to the following
addresses:

 

	
  a.

  	
  If to Med One, to:

  	
  Med One Capital, Inc.

  
	
   

  	
   

  	
  Attention: Larry R.
  Stevens

  
	
   

  	
   

  	
  10712 South 1300 East

  
	
   

  	
   

  	
  Sandy, Utah 84094

  
	
   

  	
   

  	
  Facsimile: (801)
  566-7049

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Michael W. Spence, Esq.

  
	
   

  	
   

  	
  Ray Quinney &
  Nebeker P.C.

  
	
   

  	
   

  	
  36 South State Street,
  #1400

  
	
   

  	
   

  	
  Salt Lake City, Utah
  84111

  
	
   

  	
   

  	
  Facsimile: (801)
  532-7543

  
	
   

  	
   

  	
   

  
	
  b.

  	
  If to Clarient, to:

  	
  Clarient, Inc.

  
	
   

  	
   

  	
  Attention: Michael
  Okada

  
	
   

  	
   

  	
  31 Columbia

  
	
   

  	
   

  	
  Aliso Viejo, California
  92653

  
	
   

  	
   

  	
  Facsimile: (949)
  443-5257

  

 

19.                                 Expenses.
Each Party will pay its own professional fees (e.g., CPA fees, attorneys’ fees,
etc.) incurred in connection with this Agreement and the transactions described
herein.

 

20.                                 Waivers.
Any waiver by a Party of any default or breach hereunder shall not be deemed to
be a waiver of any other default or breach hereunder on any future occasion.

 

21.                                 Further
Actions. The Parties shall take such further actions as are necessary or
reasonably requested to evidence or further document the transactions described
in this Agreement.

 

22.                                 Survival
of Representations and Warranties. All representations and warranties of
the Parties made herein or in any related document shall survive the execution
and delivery of this Agreement.

 

IN WITNESS WHEREOF, this Agreement was executed on the
date written first above.

 

5

 

 

	
  MED ONE:

  	
   

  
	
   

  	
   

  
	
   

  	
  MED ONE CAPITAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  CLARIENT:

  	
   

  
	
   

  	
   

  
	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

6

 

EXHIBIT A

 

(Description of
Equipment and Leases)

 

 

EXHIBIT B

 

(Form of
Acknowledgment Certificate)

 

Clarient Inc.

 

Acknowledgment Certificate

 

Customer:

 

Equipment Description:

 

	
  Quantity

  	
   

  	
  Description

  	
   

  	
  Serial Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

This form is designed to make clear the ownership interest and title
that Clarient (or its assignee) has in the equipment listed above under the ACIS
Utilization agreement between Clarient (formerly ChromaVision) and Customer.
The acknowledgement below re-states our agreement as to equipment title as
outlined in the ACIS contract.

 

Customer acknowledges that the Equipment above is in Customer’s possession
and is subject to the provisions of the “ACIS Utilization Agreement” currently
in effect between Customer and Clarient Inc. (FKA ChromaVision) and dated                                                                               
(hereinafter “Lease”) and that this Equipment is owned by Clarient Inc., or its
assignees. Customer understands that although the Equipment is in its
possession, it claims no ownership rights to the Equipment. Customer also
understands that title to the Equipment is now with Clarient Inc., or is
subsequent assignees.

 

Customer acknowledges the rights of Clarient Inc. to assign or sell the
referenced Lease, the Equipment, or the rental thereunder, or to grant a
security interest in any of the foregoing without notice to Customer. Notwithstanding
any such assignment, security interest, or sale, Clarient Inc. agrees that
absent customer’s default no such assignment, security interest, or sale will
disturb Customer’s quiet possession and use of the Equipment subject to the terms
and conditions of the Lease.

 

	
  Clarient Inc.

  	
  Customer:

  
	
   

  	
   

  
	
  By 

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  Date

  	
   

  	
   

  
											

 

 

EXHIBIT C

 

(Description of Additional
Equipment and Additional Leases)

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