Document:

Exhibit 10.5

 

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

 

COMMON STOCK PURCHASE WARRANT

 

To
Purchase                              
Shares of Common Stock of Clarient, Inc.

 

THIS COMMON
STOCK PURCHASE WARRANT CERTIFIES that, for value received, Safeguard Delaware, Inc.,
a Delaware corporation (the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after [DATE OF ISSUANCE]
(the “Initial Exercise Date”) and on or prior
to the close of business on [FIVE YEAR ANNIVERSARY OF DATE OF ISSUANCE] (the “Termination Date”) but not thereafter, to subscribe for and
purchase from Clarient, Inc., a corporation incorporated in the State of
Delaware (the “Company”), up to ) shares (the “Warrant Shares”) of Common Stock, par value $0.01 per share,
of the Company (the “Common Stock”).  The purchase price of one share of Common
Stock (the “Exercise Price”) under this
Warrant shall be
$              ,
and the Exercise Price and the number of Warrant Shares for which the Warrant
is exercisable shall be subject to adjustment as provided herein, provided
however that in no event shall the Exercise Price be reduced below the par
value of the Common Stock.  This Warrant
has been issued in connection with that certain Second Amended and Restated
Senior Subordinated Revolving Credit Agreement by and between the Company and
the Holder dated as of February 27, 2009 (the “Credit
Facility”).

 

 

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

 

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

 

3.                                       Exercise of Warrant.

 

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

 

(b)                                 In addition to any other rights
available to the holder, if the Company fails to deliver or cause its transfer
agent to deliver or transmit (in the manner contemplated by clause (a) above)
to the Holder a certificate or certificates representing the Shares pursuant to
an exercise on or before the Warrant Share Delivery Date, and if after such
date the holder is required by its broker to purchase (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of
a sale by the holder of the Shares which the Holder anticipated receiving upon
such exercise (a “Buy-In”), then
the Company shall promptly honor its obligation to deliver to the Holder 

 

2

 

such Warrant Shares and pay in cash to the
holder the amount by which (x) the holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (A) the
number of Shares that the Company was required to deliver to the holder in
connection with the exercise at issue times (B) the closing price per
share on date of exercise.  The holder
shall provide the Company written notice indicating the amounts payable to the
Holder in respect of the Buy-In, together with applicable confirmations and
other evidence reasonably requested by the Company.  Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.

 

(c)                                  Notwithstanding anything to the
contrary set forth herein, upon partial exercise of this Warrant in accordance
with the terms hereof, the Holder shall not be required to physically surrender
this Warrant to the Company unless such Holder is purchasing the full amount of
Warrant Shares then represented by this Warrant.  The Holder and the Company shall maintain
records showing the number of Warrant Shares so purchased hereunder and the
dates of such purchases or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of this
Warrant upon each such exercise.  The
requirement of physical surrender upon full exercise shall be satisfied by the
Holder mailing, postage prepaid, or arranging for delivery by commercial
courier this Warrant to the Company’s notice address.

 

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

 

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

 

(B)                                =
the Exercise Price, as adjusted; and (X) = the number of Warrant Shares
with respect to which this Warrant is being exercised.

 

3

 

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

 

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

 

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

 

7.                                       Transfer, Division and Combination.

 

(a)                                  Subject to compliance with any
applicable securities laws and the conditions set forth in Sections 1 and 7
hereof, this Warrant and all rights hereunder are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees and in the denomination or
denominations specified in such instrument of assignment, and shall issue to
the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled.  A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

 

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

 

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

 

(d)                                 The Company agrees to maintain, at
its aforesaid office, books for the registration and the registration of
transfer of the Warrants.  This Warrant
may not be transferred or sold except pursuant to an effective registration
statement under the Securities Act of pursuant to an available exemption from,
or in a transaction not subject to, the registration requirements of the
Securities Act and in accordance with applicable state securities laws.  If, at the time of the surrender 

 

4

 

of this Warrant in connection with any
transfer of this Warrant, the transfer of this Warrant shall not be registered
pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Securities Act”) and under applicable state securities
or blue sky laws, the Company may require, as a condition of allowing such
transfer (i) that the Holder or transferee of this Warrant, as the case
may be, furnish to the Company a written opinion of counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in
comparable transactions) to the effect that such transfer may be made without
registration under the Securities Act and under applicable state securities or
blue sky laws, (ii) that the holder or transferee execute and deliver to
the Company an investment letter in form and substance reasonably acceptable to
the Company and (iii) that the transferee be an “accredited investor” as
defined in Rule 501(a) promulgated under the Securities Act.

 

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

 

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

 

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

 

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

 

5

 

Warrant or stock
certificate, if mutilated, the Company will make and deliver a new Warrant or
stock certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant or stock certificate.

 

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

 

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

 

12.                                 Reorganization, Reclassification,
Merger, Consolidation or Disposition of Assets. 
In  case the Company shall
reorganize its capital, reclassify its capital stock, consolidate or merge with
or into another corporation (where the Company is not the surviving corporation
or where there is a change in or distribution with respect to the Common Stock
of the Company), or sell, transfer or otherwise dispose of all or substantially
all its property, assets or business to another corporation and, pursuant to
the terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or  purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation (“Other Property”), are
to be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive upon exercise of
this Warrant (and this Warrant shall thereafter be exercisable only for), the
number of shares of Common Stock of the successor or acquiring corporation or
of the Company, if it is the surviving corporation, and Other Property
receivable upon or as a result of such reorganization, reclassification,
merger, consolidation or disposition of assets by a Holder of the number of
shares of Common Stock for which this Warrant is exercisable immediately prior
to such event.  In case of any such
reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company)
shall expressly assume the due and punctual observance and performance of each
and every covenant and condition of this Warrant to be

 

6

 

performed and
observed by the Company and all the obligations and liabilities hereunder,
subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order to
provide for adjustments of Warrant Shares for which this Warrant is exercisable
which shall be as nearly equivalent as practicable to the adjustments provided
for in this Section 12.  For
purposes of this Section 12, “common stock of the successor or acquiring
corporation” shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption.  The foregoing provisions of this Section 12
shall similarly apply to successive reorganizations, reclassifications,
mergers, consolidations or disposition of assets.

 

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

 

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

 

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

 

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

 

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

 

then, in any one or more of such cases, the Company shall give to
Holder (1) at least 20 days’ prior written notice of the date on which a
record date shall be selected for such dividend, distribution or right or for
determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least 20 days’ prior
written notice of the date when the same shall take place.  Such notice in accordance with the foregoing
clause also shall specify (i) the date on which any such record is to be
taken for the purpose of such dividend, distribution or right, the date on
which the holders of Common Stock shall be entitled to any such dividend,
distribution or right, and the amount and character thereof, and (ii) the
estimated date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their Warrant Shares
for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. 
Each such written notice shall be

 

7

 

sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section 16(d).

 

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

 

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

 

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

 

16.                                 Miscellaneous.

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ray Land

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  31 Columbia

  
	
   

  	
  Aliso Viejo, CA 92656

  
	
   

  	
  Facsimile: 949-425-5863

  
	
   

  	
  Email: rland@clarientinc.com

  

 

	
  ACCEPTED AND AGREED

  	
   

  
	
   

  	
   

  
	
  SAFEGUARD DELAWARE, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Brian J. Sisko

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
  Notice Address:

  	
   

  
	
   

  	
   

  
	
  800 The Safeguard Building

  	
   

  
	
  435 Devon Park Drive

  	
   

  
	
  Wayne, PA 19087

  	
   

  
	
  Facsimile: 610-482-9105

  	
   

  
	
  Email: bsiskoOsafeguard.com

  	
   

  

 

Signature Page to Warrant

 

10

 

NOTICE OF EXERCISE

 

To:                              Clarient, Inc.

 

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

 

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

 

o                                    in lawful money of
the United States; or

 

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

 

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

 

The Warrant Shares shall be delivered to the following:

 

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

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  

 

 

ASSIGNMENT FORM

 

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

 

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

 

Dated:

 

	
  Holder’s Signature:

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Holder’s Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  

 

NOTE: The signature to this Assignment Form must correspond with
the name as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and
those acting in a fiduciary or other representative capacity should tile proper
evidence of authority to assign the foregoing Warrant.Exhibit 10.6

 

AMENDED
AND RESTATED SUBORDINATION AGREEMENT

 

Dated: February 27, 2009

 

	
  To:

  	
  Gemino Healthcare Finance, LLC

  	
   

  
	
   

  	
  One International Plaza, Suite 220

  	
   

  
	
   

  	
  Philadelphia, PA 19113

  	
   

  

 

To induce Gemino Healthcare Finance, LLC (“Lender”) to establish a credit
facility for making loans and extending credit from time to time for the
benefit of Clarient, Inc. (“Clarient”), Clarient Diagnostic Services, Inc.,
ChromaVision International, Inc., and such other Persons joined to the
Credit Agreement as “Borrowers” from time to time (collectively with Clarient,
the “Borrowers” and each individually referred to as a “Borrower”) pursuant to
the terms of that certain Credit Agreement among Borrowers and Lender dated as
of even date herewith (as amended, extended, modified, supplemented, restated
or replaced from time to time, the “Credit Agreement”), Safeguard Delaware, Inc.,
Safeguard Scientifics, Inc. and Safeguard Scientifics (Delaware), Inc.
(collectively and individually as context requires, “Undersigned”) hereby agrees
as follows:

 

1.                                       The
payment of any and all Subordinated Debt is expressly subordinated to the
Senior Debt to the extent and in the manner set forth in this Subordination
Agreement.  The term “Subordinated Debt”
means all indebtedness, liabilities, and obligations of Borrowers, or any of
them, now existing or hereafter arising, to the Undersigned including but not
limited to: (i) obligations of Borrowers, or any of them, to the
Undersigned pursuant to that certain Second Amended and Restated Senior Subordinated
Revolving Credit Agreement dated February 27, 2009 between Clarient and
Safeguard Delaware, Inc. (“Safeguard”) (as amended hereafter solely as
permitted pursuant to this Agreement, the “Subordinated Credit Agreement”) and
that certain Second Amended and Restated Revolving  Credit Note dated February 27, 2009
executed by Clarient in favor of Safeguard 
(collectively with the Subordinated Credit Agreement, “SubDebt Loan
Agreements”), (ii) put, repurchase, redemption and other monetary
obligations of Borrowers, or any of them, to the Undersigned pursuant to those
certain Common Stock Purchase Warrants described on Exhibit A attached
hereto (collectively, “Warrants”) and that certain Amended and Restated
Registration Rights Agreement dated February 27, 2009 among Clarient and
the Undersigned (“Registration Rights Agreement”), (iii) obligations of
Borrowers, or any of them, to the Undersigned pursuant to that certain Amended
and Restated Reimbursement and Indemnity Agreement dated January 17, 2007
executed by Clarient in favor of Safeguard and Safeguard Scientifics (Delaware), Inc.
(as amended by that certain First Amendment to Amended and Restated
Reimbursement and Indemnity Agreement dated March 6, 2007 among Clarient,
Safeguard and Safeguard Scientifics (Delaware), Inc., that certain Second
Amendment to Amended and Restated Reimbursement and Indemnity Agreement dated March 14,
2008 among Clarient, Safeguard and Safeguard Scientifics (Delaware), Inc.,
and that certain Third Amendment to Amended and Restated Reimbursement and
Indemnity Agreement dated February 27, 2009 among Clarient, Safeguard and
Safeguard Scientifics (Delaware), Inc., “Reimbursement Agreement” and
together with the SubDebt Loan Agreements, Warrants, Registration Rights
Agreement, “SubDebt Agreements”) and (iv) any other obligations owing by
Borrowers, or any of them, now or hereafter to the Undersigned (other than
voting or other corporate governance rights arising by virtue of the
Undersigned’s (or any of its affiliates’) equity interest in Clarient); provided,
however, that Registration Expenses (as defined in the Registration
Rights Agreement) shall not constitute Subordinated Debt.  The term “Senior Debt” means any and all
Obligations of Borrowers to Lender under, in connection with, or in any

 

 

way related to (including debtor-in-possession financing), the Credit
Agreement (including, without limitation, any interest accruing thereon after
maturity or after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding relating to any Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding).  All capitalized terms
not defined herein shall have the meaning set forth in the Credit Agreement.

 

2.                                       Until
the Senior Debt is indefeasibly paid in full and all of Lender’s obligations to
Borrowers have been terminated under the Credit Agreement, Borrowers shall not
pay, and Undersigned shall not accept, any payments of any kind associated with
Subordinated Debt (including, without limitation, principal payments (at
maturity or otherwise), prepayments, interest payments, dividends,
distributions, fees and expenses); provided that, Borrowers may pay, and the
Undersigned may accept: (A) (i) reimbursement of reasonable costs,
fees and actual out-of-pocket expenses and other charges incurred by the
Undersigned in connection with Affiliate Transactions (as defined below), and (ii) reimbursement
of reasonable actual out-of-pocket expenses incurred by the Undersigned in
connection with, and payable pursuant to, the SubDebt Loan Agreements (as in
effect on the date hereof) and (B) so long as no Unmatured Event of
Default or Event of Default has occurred (that has not been waived in writing
by Lender), and so long as no Unmatured Event of Default or Event of Default
would result from the making of such payment, (i) one or more payments
pursuant to Section 2.7(b) of the Subordinated Credit Agreement, so
long as to the extent such payment arises in connection with a  Capital Transaction (as defined in the
Subordinated Credit Agreement) or Liquidity Event (as defined in the
Subordinated Credit Agreement), no Unmatured Event of Default or Event of
Default would result after giving effect to such Capital Transaction (as
defined in the Subordinated Credit Agreement) or such Liquidity Event (as
defined in the Subordinated Credit Agreement), and (ii) regularly
scheduled payments of the accrued and unpaid “usage fee” set forth in Section 2(b) of
the Reimbursement Agreement in an aggregate amount not to exceed $750,000 in
any fiscal year; provided further that, immediately prior to making any
payments set forth in subsection (B) above, Borrowers shall deliver to
Lender an officer’s certificate, in form and substance satisfactory to Lender,
prepared and executed by the chief financial officer of Borrowers certifying
that no Unmatured Event of Default or Event of Default has occurred (that has
not been waived in writing by Lender) and no Unmatured Event of Default or Event
of Default would result from the making of such payment and setting forth such
financial and other information that Lender may require, including, without
limitation, evidence of proforma compliance with Section 6.06 of the
Credit Agreement.

 

For the purposes hereof, “Affiliate Transactions” shall mean the
provision of services by or through the Undersigned and/or its affiliates (and
their respective employees and agents) to Borrowers, or relating to the
Undersigned’s equity interest in Clarient, in connection with the business and
management of Borrowers, including temporary assignment or seconding of
professional staff and management.

 

3.                                       (a)                                  Any
payments on the Subordinated Debt (including, without limitation, prepayments)
received by the Undersigned, other than as expressly permitted pursuant to
paragraph 2 above, shall be held in trust for Lender and the Undersigned will
forthwith turn over any such payments in the form received, properly endorsed,
to Lender to be applied to the Senior Debt as determined by Lender in
accordance with the Credit Agreement.

 

2

 

(b)                                 Except as expressly
set forth in this Subordination Agreement, nothing shall limit or affect the
issuance the Warrants, the issuance of Clarient’s common stock in connection
with any exercise of the Warrants, or any adjustment contemplated by the
anti-dilution provisions with respect to the Warrants, or the rights of the
Undersigned or its successors and assigns under the Registration Rights Agreement
(as in effect on the date hereof) or the bona fide sale or transfer of the
Warrants or Clarient’s common stock issuable upon the exercise thereof by the
Undersigned or its successors or assigns.

 

4.                                       Borrowers
shall not grant to the Undersigned and the Undersigned shall not take or obtain
any lien on or security interest in any of Borrowers’ property, now owned or
hereafter acquired or created, without Lender’s prior written consent; provided
however, subject to the terms hereof and upon Lender’s prior written consent to
the documentation and terms and conditions thereof (which shall be in form and
substance satisfactory to Lender in its sole discretion), Clarient may grant to
Safeguard a lien on certain assets of Clarient as specifically listed on Exhibit B
hereto (“Safeguard Collateral”).  The
Undersigned acknowledges and agrees that the Safeguard Collateral does not
extend to the Collateral and to the extent that any portion of such Safeguard
Collateral includes or might be interpreted or deemed to comprise a portion of
the Collateral, the Undersigned hereby expressly releases any such Safeguard
Collateral from the lien of the Undersigned.  
The Undersigned covenants and agrees that it shall not take or accept
any additional liens or security interest in any property of Borrowers, whether
now owned or hereafter acquired, as security for the Subordinated Debt, other
than the liens on the Safeguard Collateral.  
Until such time as the Senior Debt shall have been indefeasibly paid in
full and any commitment to make Advances under the Credit Agreement has
terminated and in addition to the restrictions contained in paragraph 5 hereof,
the Undersigned shall not take any action to foreclose, enforce or realize upon
the Safeguard Collateral or exercise any right or remedy to enforce or collect
the Safeguard Collateral.

 

5.                                       (a) The
Undersigned agrees that it will not make any assertion or claim in any action,
suit or proceeding of any nature whatsoever in any way challenging the
priority, validity or effectiveness of the claims, liens and security interests
held by or granted to Lender under and in connection with the Credit Agreement,
or any amendment, extension, replacement thereof or any related agreement,
instrument or document between Lender and Borrowers.

 

(b) Lender agrees that it will not make any assertion or claim in
any action, suit or proceeding of any nature whatsoever in any way challenging
the priority, validity or effectiveness of the liens and security interests
held by or granted to Undersigned on the Safeguard Collateral under and in
connection with the SubDebt Loan Agreements.

 

6.                                       The
Undersigned will not commence any action or proceeding of any kind against any
Borrower to recover all or any part of the Subordinated Debt not paid when due
and shall at no time join with any creditor, in bringing any proceeding against
any Borrower under any liquidation, conservatorship, bankruptcy,
reorganization, rearrangement, or other insolvency law now or hereafter
existing, unless and until the Senior Debt shall be indefeasibly paid in full
and all of Lender’s obligations to Borrowers have been terminated under the
Credit Agreement. Without limiting the foregoing, the Undersigned shall not
take any action or exercise any rights, remedies or powers in respect of any
Subordinated Debt (or with respect to any property of Borrowers, including,
without limitation, the Safeguard Collateral) or exercise any other right,
remedy or power at law or in equity that the Undersigned may otherwise possess
to collect any of the Subordinated 

 

3

 

Debt or realize upon any
property of Borrowers, including, without limitation, the Safeguard Collateral,
including, without limitation, exercise of any right of setoff.  Subject to the foregoing, the Undersigned may
accelerate the amount of the Subordinated Debt upon the occurrence of (i) the
acceleration of the Senior Debt; and (ii) the filing of a petition under
the Bankruptcy Code by Borrowers.

 

7.                                       In
the event of any liquidation, conservatorship, bankruptcy, reorganization,
rearrangement, or other insolvency proceeding of any Borrower, the Undersigned
shall not be entitled to received any money, dividend or  other assets in  any such proceeding on account of the
Subordinated Debt unless and until the Senior Debt shall be indefeasibly paid
in full (including without limitation interest owing to Lender after the
commencement of a bankruptcy proceeding at the rate specified in the Credit
Agreement, whether or not such interest is an allowable claim in such
proceeding) and all of Lender’s obligations to Borrowers under the Credit
Agreement have been terminated.  The
Undersigned will at Lender’s request file any claims, proofs of claim, or other
instruments of similar character necessary to enforce the obligations of
Borrowers in respect of the Subordinated Debt and will hold in trust for Lender
and pay over to Lender in the same form received, to be applied on the Senior
Debt as determined by Lender, any and all money, dividends or other assets received
in any such proceedings on account of the Subordinated Debt.  Lender may, as attorney-in-fact for the
Undersigned, take such action on behalf of the Undersigned and the Undersigned
hereby appoints Lender as attorney-in-fact for the Undersigned to demand, sue
for, collect, and receive any and all such money, dividends or other assets and
give acquittance therefore and to file any claim, proof of claim or other
instrument of similar character and to take such other proceedings in Lender’s
name or in the name of the Undersigned, as Lender may deem necessary or
advisable for the enforcement of this Agreement.  The Undersigned will execute and deliver to
Lender such other and further powers of attorney or other instruments as either
reasonably may request in order to accomplish the foregoing.

 

8.                                       The
Undersigned and Borrowers shall not amend or modify the SubDebt Agreements in
any manner whatsoever without the prior written consent of Lender which consent
shall not be unreasonably conditioned, withheld or delayed; provided that, the
prior written consent of Lender in its sole and absolute discretion shall be
required for any amendment or modification to any SubDebt Agreements that would
(directly or indirectly):  (i) increase the maximum principal amount of
the Subordinated Debt, (ii) increase the rate of interest on any of the
Subordinated Debt, (iii) increase any fees, costs or expenses payable in
conjunction with the SubDebt Agreements or include any fees or expenses in any
amendment or waiver of any of the SubDebt Agreements, (iv) change to an
earlier date any date upon which regularly scheduled payments of principal or
interest on the Subordinated Debt (including, without limitation, any maturity
date) under and pursuant to the terms of the SubDebt Agreements are due, (v) add
or make more restrictive any event of default or any covenant with respect to
the Subordinated Debt, (vi) amend or modify Section 2.7 of the
Subordinated Credit Agreement, (vii) amend or modify Section 2(b) of
the Reimbursement Agreement in any way that increases or accelerates
payment obligations of Borrowers to the Undersigned, or (viii) amend or modify the definition of Capital Transaction set
forth in the Subordinated Credit Agreement; provided that so long as such
amendment or modification to the definition of Capital Transaction does not
decrease the threshold of $1,000,000 contained in such definition, Lender’s
consent to such amendment or modification shall not be unreasonably
conditioned, withheld or delayed.  Notwithstanding
the foregoing, the Undersigned may transfer the SubDebt Agreements expressly
subject to the terms of this Agreement and in compliance with paragraph 10
hereof, upon prior notice to, but without any prior consent of, Lender.

 

4

 

9.                                       Lender,
and (to the extent applicable) Borrowers, may at any time and from time to
time, without the consent of or notice to the Undersigned, without incurring
responsibility to the Undersigned and without impairing or releasing any of
Lender’s rights, or any of the obligations of the Undersigned hereunder:

 

(a)                                  Change
the amount, manner, place or terms of payment or change or extend the time of
payment of or renew, increase, decrease or alter the Senior Debt, or any part
thereof, or amend, supplement or replace the Credit Agreement and/or any Loan
Documents in any manner or enter into or amend, supplement or replace in any
manner any other agreement relating to the Senior Debt;

 

(b)                                 Sell,
exchange, release or otherwise deal with all or any part of any property at any
time pledged or mortgaged by any party to secure or securing the Senior Debt or
any part thereof;

 

(c)                                  Release
anyone liable in any manner for the payment or collection of the Senior Debt
(including, without limitation, any guarantor);

 

(d)                                 Exercise
or refrain from exercising any rights against Borrower, any guarantor or others
(including the Undersigned); and

 

(e)                                  Apply
sums paid by any party to the Senior Debt in any order or manner as determined
by Lender in accordance with the Credit Agreement.

 

10.                                 The
Undersigned shall advise each future holder of all or any part of the
Subordinated Debt that the Subordinated Debt is subordinated to the Senior Debt
in the manner and to the extent provided herein.  The Undersigned represents that no part of
the Subordinated Debt or any instrument evidencing the same has been
transferred or assigned and the Undersigned will not transfer or assign, except
to Lender, any part of the Subordinated Debt while any Senior Debt remains
outstanding, unless such transfer or assignment is made expressly subject to
this Agreement.  Upon Lender’s request,
the Undersigned will in the case of any Subordinated Debt which is not
evidenced by any instrument cause the same to be evidenced by an appropriate instrument
or instruments, and place thereon and on any and all instruments evidencing the
Subordinated Debt a legend in such form as Lender may determine to the effect
that the indebtedness evidenced thereby is subordinated and subject to the
prior payment in full of all Senior Debt pursuant to this Subordination
Agreement, as well as deliver copies of all such instruments to Lender.

 

11.                                 This
Subordination Agreement contains the entire agreement between the parties
regarding the subject matter hereof and may be amended, supplemented or
modified only by written instrument executed by Lender, and the Undersigned.

 

12.                                 The
Undersigned represents and warrants that neither the execution or delivery of
this Subordination Agreement nor fulfillment of nor compliance with the terms
and provisions hereof will conflict with, or result in a breach of the terms,
conditions, or provisions of or constitute

 

5

 

a default under any agreement or instrument to which the Undersigned or
any of the Undersigned’s assets is now subject.

 

13.                                 This
Subordination Agreement may be assigned by Lender, in connection with any
assignment or transfer of any portion of the Senior Debt.

 

14.                                 This
Subordination Agreement shall be binding upon the Undersigned and Lender, and
the Undersigned’s and Lender’s 
successors, representatives and assigns.

 

15.                                 Except
as provided in paragraph 2 above, Borrowers agree that Borrowers will not make
any payment on any of the Subordinated Debt, or take any other action in
contravention of the provisions of this Subordination Agreement, and the
Undersigned, by signing below acknowledge and consent to such agreement on
behalf of Borrowers.

 

16.                                 This
Subordination Agreement, and all matters arising hereunder or related hereto,
shall in all respects be interpreted, construed and governed by the substantive
laws of the Commonwealth of Pennsylvania. 
The Undersigned (i) submits to the jurisdiction of the Courts of
the Commonwealth of Pennsylvania or the United States District Court for the
Eastern District of Pennsylvania for the purposes of resolving any controversy
relating thereto and (ii) waives the
right to a jury trial for the purpose of resolving any controversy hereunder or
enforcing or defending any rights or claim hereunder or in connection herewith,
whether sounding in contract, tort or otherwise.

 

[Remainder of Page Intentionally
Left Blank]

 

6

 

IN WITNESS WHEREOF, the
Undersigned have executed this agreement as of the date first written above.

 

	
  Address for notices:

  	
  SAFEGUARD DELAWARE, INC.

  
	
  Safeguard Delaware, Inc.

  	
   

  	
   

  
	
  Safeguard Scientifics (Delaware), Inc.

  	
  By:

  	
      /s/ Brian J. Sisko

  
	
  1105 N. Market St.

  	
  Name:

  	
  Brian J. Sisko

  
	
  Suite 1300

  	
  Title:

  	
  Vice President

  
	
  Wilmington, DE 19801

  	
   

  	
   

  
	
  Attn:  Chief Financial Officer

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
  SAFEGUARD SCIENTIFICS, INC.

  
	
  Safeguard Scientifics, Inc.

  	
   

  
	
  435 Devon Park Drive, Building 800

  	
  By:

  	
      /s/ Brian J. Sisko

  
	
  Wayne, PA 19087

  	
  Name:

  	
  Brian J. Sisko

  
	
  Attn: General Counsel

  	
  Title:

  	
  Vice President

  
	
  Facsimile: 610.482.9105

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SAFEGUARD SCIENTIFICS (DELAWARE), INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Brian J. Sisko

  
	
   

  	
  Name:

  	
  Brian J. Sisko

  
	
   

  	
  Title:

  	
  Vice President

  

 

Intending to be legally bound, each of the
Borrowers consent and agree to the terms of the Subordination Agreement as of
the date first above written:

 

	
  CLARIENT, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
         /s/
  Ron Andrews

  	
   

  
	
  Name:

  	
  Ron Andrews

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  CLARIENT DIAGNOSTIC SERVICES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
          /s/
  Ron Andrews

  	
   

  
	
  Name:

  	
  Ron Andrews

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  

 

[Signatures
Continue on Following Page]

 

[Signature Page to Amended and Restated Subordination Agreement]

 

S-1

 

	
  CHROMAVISION INTERNATIONAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Ron Andrews

  	
   

  
	
  Name:

  	
  Ron Andrews

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Approved:

  	
   

  
	
  GEMINO HEALTHCARE FINANCE, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
       /s/ Miriam
  Gallagher

  	
   

  
	
  Name:

  	
  Miriam
  Gallagher

  	
   

  
	
  Title:

  	
  Senior
  Portfolio Manager

  	
   

  
						

 

[Signature Page to Amended and Restated Subordination Agreement]

 

S-2

 

EXHIBIT A

WARRANTS

 

1.                                       Common
Stock Purchase Warrant (50,000 shares of common stock) dated August 1,
2005 executed by Clarient in favor of Safeguard;

 

2.                                       Common
Stock Purchase Warrant (801,000 shares of common stock) dated November 9,
2005 executed by Clarient in favor of Safeguard;

 

3.                                       Common
Stock Purchase Warrant (549,000 shares of common stock) dated December 14,
2005 executed by Clarient in favor of Safeguard;

 

4.                                       Common
Stock Purchase Warrant (50,000 shares of common stock) dated June 19, 2006
executed by Clarient in favor of Safeguard;

 

5.                                       Common
Stock Purchase Warrant (624,306 shares of common stock) dated September 22,
2006 executed by Clarient in favor of Safeguard;

 

6.                                       Amended
and Restated Common Stock Purchase Warrant (166,667 shares of common stock)
dated April 18, 2007 executed by Clarient in favor of Safeguard;

 

7.                                       Common
Stock Purchase Warrant (62,500 shares of common stock) dated March, 2007 executed
by Clarient in favor of Safeguard;

 

8.                                       Warrant
(975,000 shares of common stock) dated August 28, 2002 executed by
Clarient (f/k/a Chromavision Medical Systems, Inc.) in favor of Safeguard;

 

9.                                       Common
Stock Purchase Warrant (500,000 shares of common stock) dated February 27,
2009 executed by Clarient in favor of Safeguard;

 

10.                                 Each
Common Stock Purchase Warrant issued by Clarient in favor of Safeguard in
accordance with Section 2.8(b) of the Subordinated Credit Agreement
as in effect on the date hereof; and

 

11.                                 Each
Common Stock Purchase Warrant issued by Clarient in favor of Safeguard in
accordance with Section 2.8(c) of the Subordinated Credit Agreement
as in effect on the date hereof.

 

 

EXHIBIT B

SAFEGUARD COLLATERAL

 

All of Clarient’s now owned or
hereafter acquired inventory of every description which is held by Clarient for
sale or lease or is furnished by Clarient under any contract of service or is
held by Clarient as raw materials, work in process or materials used or consumed
in a business, wherever located, and as the same may now and hereafter from
time to time be constituted.

 

All of Clarient’s now owned or hereafter
acquired machinery, equipment, computer equipment, tools, tooling, furniture,
fixtures, goods, supplies, materials, work in process, whether now owned or
hereafter acquired, together with all additions, parts, fittings, accessories,
special tools, attachments, and accessions now and hereafter affixed thereto
and/or used in connection therewith, all replacements thereof and substitutions
therefore.

 

Notwithstanding anything herein to the
contrary, the Undersigned shall not have a security interest in (a) the
Collateral (as defined in the Credit Agreement), (b) any property that
constitutes hazardous waste, or (c) any lease, license, contract permit or
agreement to the extent that such grant of a security interest is prohibited by
or constitutes a breach or default under such lease, license, contract, permit
or agreement, except to the extent that such term in such lease, license,
contract, permit or agreement providing for such prohibition, breach or default
is ineffective under applicable law (including, without limitation, sections
9-406, 9-407, 9-408 or 9-409 of the UCC); provided, however, that the limitation
in the foregoing clause shall not affect, limit, restrict or impair the grant
by any Borrower of a security interest pursuant to this Agreement in any
Account or any money or other amounts due or to become due under any such
lease, license, contract, permit or agreement or in the Proceeds from the sale
or disposition of any such lease, license, contract, permit or agreement; and
provided, further, that the limitation in the foregoing clause (d) shall
be applicable only for so long as a grant of a security interest in any such
lease, license, contract permit or agreement is prohibited by or constitutes a
breach or default under such lease, license, contract, permit or agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]