Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.28    
    

 
 

FIRST AMENDMENT TO AMENDED AND RESTATED REIMBURSEMENT AND INDEMNITY AGREEMENT    
    

        This First Amendment to Amended and Restated Reimbursement and Indemnity Agreement (this "Amendment") is entered
into as of March 6, 2007, by and among CLARIENT, INC., a Delaware corporation
("Clarient"), SAFEGUARD DELAWARE, INC., a Delaware corporation
("SDI") and SAFEGUARD SCIENTIFICS (DELAWARE), INC., a Delaware corporation
("SSI", and together with SDI, "Safeguard"). 

RECITALS  

        Clarient and Safeguard are parties to that certain Amended and Restated Reimbursement and Indemnity Agreement, dated as of January 17, 2007 (the
"Agreement"). The parties desire to amend the Agreement in accordance with the terms of this Amendment. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as
follows: 

        1.     Section 1(d)(ii)
of the Agreement is amended and restated to read in its entirety as follows: 

        "(ii) incurring
any other indebtedness (other than indebtedness under (x) Clarient's current loan and security agreements with General Electric Capital Corporation and
(y) that certain Senior Subordinated Revolving Credit Agreement dated as of March 6, 2007, with SDI." 

        2.     Section 1(e)
of the Agreement is hereby deleted in its entirety. 

        3.     Section 2(b)(iii)
of the Agreement is hereby deleted in its entirety. 

        4.     The
language in Section 2 of the Agreement that follows clause (c) thereof is hereby deleted in its entirety. 

        5.     If
Clarient consummates, on or before March 19, 2007, a sale of assets resulting in net proceeds to Clarient of at least $7,000,000 by such date, the parties
acknowledge that the warrant issued pursuant to Section 2(c) of the Agreement to purchase 250,000 shares of common stock for an exercise price of $1.64 per share issued to Safeguard on
January 17, 2006 (the "Warrant") shall be deemed to have vested with respect to 166,667 shares of Common Stock and that the Warrant shall not
become exercisable for any additional shares. In such case, the Warrant shall be amended and restated to reflect that it is exercisable to purchase only 166,667 shares of Common Stock. If such sale
does not occur by March 19, 2007, the warrant shall remain exercisable in accordance with its current terms. 

        6.     This
Amendment shall be effective upon receipt by Safeguard of this Amendment, duly executed by Clarient. 

        7.     Unless
otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. 

        8.     Clarient
represents and warrants that the representations and warranties contained in the Agreement are true and correct in all material respects as of the date of this
Amendment (unless such representations or warranties relate to a specific date, in which case they shall be true and correct in all material respects on and as of such date). 

        9.     Except
as expressly amended hereby, all terms and provisions of the Agreement shall remain in full force and effect and Clarient hereby affirms, confirms and ratifies
same. 

 

        10.   This
Amendment shall be governed by construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania, without regard to the conflicts of laws
provisions thereof. 

        11.   This
Amendment may be executed in three 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 on the date first set forth above. 

	 	 	CLARIENT, INC.
	

 	
 	

By:	
 	

/s/ JAMES AGNELLO
 James Agnello, Senior Vice President and Chief Financial Officer
	

 	
 	

SAFEGUARD DELAWARE, INC.
	

 	
 	

By:	
 	

/s/ STEVEN J. FEDER
 Steven J. Feder, Vice President
	

 	
 	

SAFEGUARD SCIENTIFICS (DELAWARE), INC.
	

 	
 	

By:	
 	

/s/ STEVEN J. FEDER
 Steven J. Feder, Vice President

3

QuickLinks

Exhibit 10.28

FIRST AMENDMENT TO AMENDED AND RESTATED REIMBURSEMENT AND INDEMNITY AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.35    
    

 
 

CLARIENT, INC.    
    
    AMENDED AND RESTATED    
    
    LOAN AGREEMENT    
    

 

        THIS
INSTRUMENT OR CERTIFICATE AND THE RIGHTS EVIDENCED HEREBY ARE SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION AGREEMENT, DATED SEPTEMBER 29, 2006, AMONG
CLARIENT, INC., CLARIENT DIAGNOSTIC SERVICES, INC. CLRT ACQUISITION, LLC, GENERAL ELECTRIC CAPITAL CORPORATION AND COMERICA BANK, AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME, AND ANY TRANSFEREE BY ACCEPTANCE OF SUCH TRANSFER AGREES TO BE BOUND BY THE TERMS THEREBY. 

        This
AMENDED AND RESTATED LOAN AGREEMENT (this "Agreement") is entered into as of February 28, 2008, by and between COMERICA BANK ("Bank") and CLARIENT, INC. ("Borrower"). 

RECITALS  

        Borrower and Bank are parties to that certain Loan Agreement dated as of February 13, 2003, as amended, including, without limitation, by that certain
First Amendment to Loan Agreement dated as of October 21, 2003, that certain Second Amendment to Loan Agreement dated as of January 22, 2004, that certain Third Amendment to Loan
Agreement dated as of January 31, 2005, that certain Fourth Amendment to Loan Agreement dated as of March 11, 2005, that certain Consent and Waiver dated as of July 13, 2005, that
certain Waiver and Fifth Amendment to Loan Agreement dated as of August 1, 2005, that certain letter agreement dated as of January 26, 2006, that certain Sixth Amendment to Loan
Agreement dated as of February 28, 2006, that certain Seventh Amendment to Loan Agreement dated as of January 17, 2007, that certain Waiver and Eighth Amendment to Loan Agreement dated
as of February 28, 2007, that certain Ninth Amendment to Loan Agreement dated as of March 15, 2007, and that certain Tenth Amendment and Waiver to Loan Agreement dated as of
November 1. 2007 (collectively, the "Original Agreement"). The parties desire to amend and restate the terms of the Original Agreement and to evidence the obligations of Borrower to Bank. This
Agreement sets forth the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 

AGREEMENT  

        The parties agree as follows: 

1.     DEFINITIONS AND CONSTRUCTION.  

        1.1    Definitions.    As used in this Agreement, the following terms
shall have the following definitions: 

        "Advance"
or "Advances" means a cash advance or cash advances under the Revolving Facility. 

        "Affiliate"
means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common
control with such Person, and each of such Person's senior executive officers, directors, and partners. 

        "Bank
Expenses" means all: reasonable costs or expenses (including reasonable attorneys' fees and expenses) incurred in connection with the preparation, negotiation, administration, and
enforcement of the Loan Documents; and Bank's reasonable attorneys' fees and expenses incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred
before, during and after an Insolvency Proceeding, whether or not suit is brought. 

        "Business
Day" means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized or required to close. 

1

 

        "Change
in Control" shall mean a transaction in which any "person" or "group" (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then
outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such "person" or "group" to elect a majority of the Board of Directors of Borrower, who did not have such
power before such transaction. 

        "Closing
Date" means the date of this Agreement. 

        "Code"
means the California Uniform Commercial Code. 

        "Contingent
Obligation" means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold
with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable, provided that Borrower's obligation to indemnify or otherwise compensate Guarantor with
respect to losses and expenses as a result of guaranteeing the Obligations of Borrower shall not constitute a Contingent Obligation unless and until any such losses and expenses have been incurred by
Guarantor; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards, or merchant services issued or provided for the account of that Person; and (iii) all
obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designed to protect
such Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term "Contingent Obligation" shall not include endorsements for collection
or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of
which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. 

        "Credit
Extension" means each Advance, or any other extension of credit by Bank for the benefit of Borrower hereunder. 

        "Current
Liabilities" means, as of any applicable date, all amounts that should, in accordance with GAAP, be included as current liabilities on the consolidated balance sheet of Borrower
and its Subsidiaries, as at such date, plus, to the extent not already included therein, all outstanding Credit Extensions made under this Agreement, including all Indebtedness that is payable upon
demand or within one year from the date of determination thereof unless such Indebtedness is renewable or extendible at the option of Borrower or any Subsidiary to a date more than one year from the
date of determination. 

        "Daily
Balance" means the amount of the Obligations owed at the end of a given day. 

        "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder. 

        "Event
of Default" has the meaning assigned in Article 8. 

        "GAAP"
means generally accepted accounting principles as in effect from time to time. 

        "Guarantor"
means each of Safeguard Delaware, Inc. and Safeguard Scientifics (Delaware), Inc. 

2

 

        "Indebtedness"
means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other
obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations and
(d) all Contingent Obligations. 

        "Insolvency
Proceeding" means any proceeding commenced by or against any person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief. 

        "Investment"
means any beneficial ownership of debt or equity securities (including stock, partnership interest or other securities) issued by any Person, or any loan, advance or capital
contribution to any Person. 

        "IRC"
means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

        "Letter
of Credit" means a standby letter of credit issued by Bank at Borrower's request in accordance with Section 2.2. 

        "Lien"
means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

        "Loan
Documents" means, collectively, this Agreement, any note or notes executed by Borrower, and any other agreement entered into in connection with this Agreement, all as amended or
extended from time to time. 

        "Material
Adverse Effect" means a material adverse effect on (i) the business operations, condition (financial or otherwise) or prospects of Borrower and its Subsidiaries taken as
a whole or (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents. 

        "Net
Worth" means with respect to Borrower as of any date of determination, the sum of capital stock and additional paid-in capital plus retained earnings (or minus
accumulated deficit) of Borrower and its Subsidiaries, minus intangible assets, on a consolidated basis determined in accordance with GAAP. 

        "Obligations"
means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any other agreement, whether absolute or
contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or
obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise. 

        "Periodic
Payments" means all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any
instrument, or agreement now or hereafter in existence between Borrower and Bank. 

        "Permitted
Indebtedness" means:

         (a)   Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document; 

         (b)   Indebtedness existing on the Closing Date and disclosed in the Schedule; 

3

 

         (c)   Indebtedness in the form of equipment leases or purchase money financing for equipment, provided the aggregate amount of such
Indebtedness does
not exceed $5,000,000; 

         (d)   Subordinated Debt; and 

        (e)   Extensions, renewals or refinancing of the Indebtedness described in clauses (a) through (d) above, provided that the principal
amount
thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower. 

        "Permitted
Investment" means:

         (a)   Investments existing on the Closing Date disclosed in the Schedule; 

        (b)   (i) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State
thereof
maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the date of creation thereof and currently having
rating of at least A-2 or P-2 from either Standard & Poor's Corporation or Moody's Investors Service, (iii) certificates of deposit maturing no more than one
(1) year from the date of investment therein issued by Bank and (iv) Bank's money market accounts; and 

        (c)   Investments in joint ventures, strategic alliances or similar arrangements in the ordinary course of Borrower's business or approved by
Borrower's Board of Directors, provided that the cash portion of such Investments not exceed $250,000 in the aggregate in any fiscal year. 

        "Permitted
Liens" means the following:

         (a)   Any Liens existing on the Closing Date and disclosed in the Schedule or arising under this Agreement or the other Loan Documents;

        (b)   Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by
appropriate
proceedings, provided the same have no priority over any of Bank's security interests; 

         (c)   Liens (i) upon or in any equipment which was not financed by Bank acquired or held by Borrower or any of its Subsidiaries to secure
the
purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition of such equipment, or (ii) existing on such equipment at the time of its
acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment; 

         (d)   Liens upon or in any accounts receivable or inventory of Borrower or any of its Subsidiaries; and 

         (e)   Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in
clauses (a) through (d) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase. 

        "Person"
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution,
public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 

        "Prime
Rate" means the variable rate of interest, per annum, most recently announced by Bank, as its "prime rate," whether or not such announced rate is the lowest rate available from
Bank. 

4

 

        "Quick
Assets" means, at any date as of which the amount thereof shall be determined, the unrestricted cash and cash-equivalents, accounts receivable and investments with
maturities not to exceed 90 days, of Borrower determined in accordance with GAAP. 

        "Responsible
Officer" means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower. 

        "Revolving
Facility" means the facility under which Borrower may request Bank to issue Advances, as specified in Section 2.1(a) hereof. 

        "Revolving
Line" means a credit extension of up to Nine Million Dollars ($9,000,000). 

        "Revolving
Maturity Date" means February 26, 2009. 

        "Schedule"
means the schedule of exceptions attached hereto and approved by Bank, if any. 

        "Subordinated
Debt" means any debt incurred by Borrower that is subordinated to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by
Borrower and Bank). 

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

        1.2    Accounting Terms.    All accounting terms not specifically
defined herein shall be construed in accordance with GAAP and all calculations made hereunder shall be made in accordance with GAAP. When used herein, the terms "financial statements" shall include
the notes and schedules thereto. 

2.     LOAN AND TERMS OF PAYMENT.  

        2.1    Credit Extensions.    Borrower promises to pay to the order of
Bank, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower hereunder. Borrower shall also pay interest on the unpaid
principal amount of such Credit Extensions at rates in accordance with the terms hereof. 

        (a)    Revolving Advances.    

           (i)  Subject to and upon the terms and conditions of this Agreement, Borrower may request and Bank agrees to make Advances in an
aggregate
outstanding amount not to exceed the Revolving Line. Subject to the terms and conditions of this Agreement, amounts borrowed pursuant to this Section 2.1(a) may be repaid and reborrowed at any
time prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1(a) shall be immediately due and payable. Borrower may prepay any Advances without penalty or
premium. 

          (ii)  Whenever Borrower desires an Advance, Borrower will notify Bank by facsimile transmission or telephone no later than 3:00 p.m.
Pacific
time, on the Business Day that the Advance is to be made. Each such notification shall be promptly confirmed by a Payment/Advance Form in substantially the form of  Exhibit B hereto. Bank is
authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer or a
designee of a Responsible Officer, or without instructions if in Bank's discretion such Advances are necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to
rely on any telephonic notice given by a person who Bank reasonably believes to be a Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Bank harmless for any damages or
loss suffered by Bank as a result of such reliance. 

5

 

Bank
will credit the amount of Advances made under this Section 2.1(a) to Borrower's deposit account. 

        2.2    Letters of Credit.    In reliance on the representations and
warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the
account of Borrower a standby letter of credit in an amount not to exceed $3,000,000 (the "Letter of Credit") upon receipt of a Standby Letter of Credit Application and Agreement, duly executed by
Borrower. Any amounts drawn under the Letter of Credit shall be charged as Advances against the Revolving Line unless Borrower does not have sufficient borrowing availability under the Revolving Line,
in which case Borrower will immediately
repay such amounts in immediately available good funds. The Letter of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions
of Bank's form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower it will charge for issuing and processing the Letter of
Credit. 

        2.3    Interest Rates, Payments, and Calculations.    

        (a)    Interest Rates.    Except as set forth in
Section 2.3(b), the Advances shall bear interest, on the outstanding Daily Balance thereof, which shall be a Base Rate Option Advance or a LIBOR Option Advance as elected by Borrower in
accordance with the terms set forth in the LIBOR Addendum to Amended and Restated Loan Agreement executed in connection herewith ("LIBOR Addendum"), and shall bear interest on the outstanding Daily
Balance thereof at the applicable rate set forth in such LIBOR Addendum. 

        (b)    Late Fee: Default Rate.    If any payment is not made within
ten (10) days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount or (ii) the
maximum amount permitted to be charged under applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to
five (5) percentage points above the interest rate applicable immediately prior to the occurrence of the Event of Default. 

        (c)    Payments.    Interest hereunder shall be due and payable on the
thirteenth (13th) calendar day of each month during the term hereof. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower's deposit
accounts or against the Revolving Line and, in the case of charges against the Revolving Line, those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not
paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder. All payments shall be free and clear
of any taxes, withholdings, duties, impositions or other charges, to the end that Bank will receive the entire amount of any Obligations payable hereunder, regardless of source of payment. 

        (d)    Computation.    In the event the Prime Rate is changed from
time to time hereafter, the applicable rate of interest hereunder shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime
Rate. All interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed. 

        2.4    Crediting Payments.    Prior to the occurrence of an Event of
Default, Bank shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies. After the occurrence of an Event of Default, the
receipt by Bank of any wire transfer of funds, check, or other item of payment shall be immediately applied to conditionally reduce Obligations, but shall not be considered a payment on account unless
such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when 

6

 

presented
for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by Bank after 12:00 noon Pacific time shall be deemed to have been received by
Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date
that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such
extension. 

        2.5    Fees.    Borrower shall pay to Bank the following: 

        (a)    Facility Fee.    On the Closing Date, a Facility Fee equal to
Twenty Thousand Dollars ($20,000), which shall be nonrefundable; and 

        (b)    Bank Expenses.    On the Closing Date, all Bank Expenses
incurred through the Closing Date, including reasonable attorneys' fees (billed at customary rates for Bank's counsel) and expenses and, after the Closing Date, all Bank Expenses, including reasonable
attorneys' fees (billed at customary rates for Bank's counsel) and expenses, as and when they become due. All such expenses shall be payable only after Bank has delivered to Borrower statements in
customary form showing in reasonable detail the expenses being billed. 

        2.6    Additional Costs.    In case any law, regulation, treaty or
official directive or the interpretation or application thereof first adopted or imposed after the date of this Agreement by any court or any governmental authority charged with the administration
thereof or the compliance with any guideline or request of any central bank or other governmental authority (whether or not having the force of law):

         (a)   subjects Bank to any tax with respect to payments of principal or interest or any other amounts payable hereunder by Borrower or
otherwise with
respect to the transactions contemplated hereby (except for taxes on the overall net income of Bank imposed by the United States of America or any political subdivision thereof); 

         (b)   imposes, modifies or deems applicable any deposit insurance, reserve, special deposit or similar requirement against assets held by, or
deposits
in or for the account of, or loans by, Bank; or 

         (c)   imposes upon Bank any other condition with respect to its performance under this Agreement, 

and
the result of any of the foregoing is to increase the cost to Bank, reduce the income receivable by Bank or impose any expense upon Bank with respect to the Obligations, Bank shall notify Borrower
thereof. Borrower agrees to pay to Bank the amount of such increase in cost, reduction in income or additional expense as and when such cost, reduction or expense is incurred or determined, upon
presentation by Bank of a statement of the amount and setting forth Bank's calculation thereof, all in reasonable detail, which statement shall be deemed true and correct absent manifest error. 

        2.7    Term.    This Agreement shall become effective on the Closing
Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this
Agreement, whichever is longer. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon
the occurrence and during the continuance of an Event of Default. 

7

 

3.     CONDITIONS OF LOANS.  

        3.1    Conditions Precedent to Initial Credit Extension.    The
obligation of Bank to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the
following:

        (a)   this Agreement; 

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

         (c)   a LIBOR Addendum to Amended and Restated Loan Agreement; 

         (d)   an Affirmation of Guaranty from each Guarantor; 

        (e)   an Affirmation of Subordination (Safeguard Delaware, Inc.); 

         (f)    payment of the fees and Bank Expenses then due specified in Section 2.5 hereof; 

         (g)   current financial statements of Borrower; and 

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

        3.2    Conditions Precedent to all Credit Extensions.    The
obligation of Bank to make each Credit Extension, including the initial Credit Extension, is further subject to the following conditions:

         (a)   timely receipt by Bank of the Payment/Advance Form as provided in Section 2.1; and 

         (b)   the representations and warranties contained in Section 5 shall be true and correct in all material respects on and as of the date
of such
Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after
giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as
of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in
this Section 3.2. 

4.     INTENTIONALLY OMITTED.  

5.     REPRESENTATIONS AND WARRANTIES.  

        Borrower represents and warrants as follows: 

        5.1    Due Organization and Qualification.    Except as disclosed on
the Schedule, Borrower and each Subsidiary is a corporation or other organization duly existing under the laws of its state of formation and qualified and licensed to do business in any state in which
the conduct of its business or its ownership of property requires that it be so qualified. 

        5.2    Due Authorization; No Conflict.    The execution, delivery, and
performance of the Loan Documents are within Borrower's powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower's Certificate of
Incorporation or Bylaws, nor, except as disclosed on the Schedule, will they constitute an event of default under any material agreement to which Borrower is a party or by which Borrower is bound.
Except as disclosed on the Schedule, Borrower is not in default under any material agreement to which it is a party or by which it is bound. 

8

 

        5.3    Name; Location of Chief Executive Office.    Except as
disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof. The chief executive office of Borrower is located at the address
indicated in Section 10 hereof. 

        5.4    Litigation.    Except as set forth in the Schedule, there are
no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which a likely adverse decision would reasonably be expected to have a Material
Adverse Effect. 

        5.5    No Material Adverse Change in Financial Statements.    All
consolidated and consolidating financial statements related to Borrower and any Subsidiary that Bank has received from Borrower fairly present in all material respects Borrower's financial condition
as of the date thereof and Borrower's consolidated and consolidating results of operations for the period then ended. There has not been a material adverse change in the consolidated or the
consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank. 

        5.6    Solvency; Payment of Debts.    Borrower is solvent and able to
pay its debts (including trade debts) as they mature. 

        5.7    Regulatory Compliance.    Borrower and each Subsidiary have met
the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA, and no event has occurred resulting from Borrower's failure to comply with ERISA that could
result in Borrower's incurring any material liability. Borrower is not an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of
1940. Borrower is not engaged principally, or as one of the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied with all the provisions of the Federal Fair Labor Standards Act. Borrower has not violated
any statutes, laws, ordinances or rules applicable to it, violation of which could have a Material Adverse Effect. 

        5.8    Environmental Condition.    Except as disclosed in the
Schedule, and except to the extent which has not had and is not reasonably expected to have a Material Adverse Effect, none of Borrower's or any Subsidiary's properties or assets has ever been used by
Borrower or any Subsidiary or, to the best of Borrower's knowledge, by previous owners or operators, in the disposal of, or to produce, store, handle, treat, release, or transport, any hazardous waste
or hazardous substance other than in accordance with applicable law; to the best of Borrower's knowledge, none of Borrower's properties or assets has ever been designated or identified in any manner
pursuant to any environmental protection statute as a hazardous waste or hazardous substance disposal site, or a candidate for closure pursuant to any environmental protection statute; no lien arising
under any environmental protection statute has attached to any revenues or to any real or personal property owned by Borrower or any Subsidiary; and neither Borrower nor any Subsidiary has received a
summons, citation, notice, or directive from the Environmental Protection Agency or any other federal, state or other governmental agency concerning any action or omission by Borrower or any
Subsidiary resulting in the releasing, or otherwise disposing of hazardous waste or hazardous substances into the environment. 

        5.9    Taxes.    Borrower and each Subsidiary have filed or caused to
be filed all tax returns required to be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected therein, except to the extent the same could not reasonably be
expected to have a Material Adverse Effect. 

        5.10    Subsidiaries.    Borrower does not own any stock, partnership
interest or other equity securities of any Person, except for Permitted Investments. 

        5.11    Government Consents.    Borrower and each Subsidiary have
obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of
Borrower's business as currently conducted, the failure to obtain which could reasonably be expected to have a Material Adverse Effect. 

9

 

  
        5.12    Accounts.    Except as set forth in the Schedule, and subject
to Section 6.6 hereof, none of Borrower's nor any Subsidiary's cash or securities is maintained or invested with a Person other than Bank. 

        5.13    Full Disclosure.    No representation, warranty or other
statement made by Borrower in any certificate or written statement furnished to Bank in connection with the Loan Documents contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or statements not misleading. 

6.     AFFIRMATIVE COVENANTS.  

        Borrower covenants and agrees that, until payment in full of all outstanding Obligations, and for so long as Bank may have any commitment to make a Credit
Extension hereunder, Borrower shall do all of the following: 

        6.1    Good Standing.    Borrower shall maintain its and each of its
Subsidiaries' corporate existence and good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which it is required under applicable law, where the failure
to be so qualified could reasonably be expected to have a Material Adverse Effect. Borrower shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and
agreements, the loss of which could reasonably be expected to have a Material Adverse Effect. 

        6.2    Government Compliance.    Borrower shall meet, and shall cause
each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with
all statutes, laws, ordinances and government rules and regulations to which it is subject, noncompliance with which could reasonably be expected to have a Material Adverse Effect. 

        6.3    Financial Statements, Reports, Certificates.    Borrower shall
deliver the following to Bank: (a) as soon as available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated balance sheet,
income, and cash flow statement covering Borrower's consolidated operations during such period, prepared in accordance with GAAP (except for the omission of
footnotes), consistently applied, in a form acceptable to Bank and certified by a Responsible Officer; (b) as soon as available, but in any event within ninety (90) days after the end of
Borrower's fiscal year, audited consolidated financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an unqualified opinion on such financial statements
of an independent certified public accounting firm reasonably acceptable to Bank; (c) if applicable, copies of all statements, reports and notices sent or made available generally by Borrower
to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K (within ninety (90) days after the end of Borrower's fiscal year end or, if
extended under SEC provisions) and 10-Q (within 45 days after the end of each quarter or, if extended under SEC provisions) filed with the Securities and Exchange Commission;
(d) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any
Subsidiary of Fifty Thousand Dollars ($50,000) or more; and (e) such budgets, sales projections, operating plans or other financial information as Bank may reasonably request from time to time
generally prepared by Borrower in the ordinary course of business. 

        Borrower
shall deliver to Bank with the monthly financial statements a Compliance Certificate signed by a Responsible Officer in substantially the form of  Exhibit C hereto. 

        6.4    Taxes.    Borrower shall make, and shall cause each Subsidiary
to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, and will execute and deliver to Bank, on demand,
appropriate certificates attesting to the payment or deposit thereof; and Borrower will make, and will cause each Subsidiary to make, timely 

10

 

payment
or deposit of all material tax payments and withholding taxes required of it by applicable laws, including, but not limited to, those laws concerning F.I.C.A., F.U.T.A., state disability, and
local, state, and federal income taxes, and will, upon request, furnish Bank with proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits; provided that
Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by
GAAP) by Borrower. 

        6.5    Insurance.    

         (a)   Borrower, at its expense, shall keep its property insured against loss or damage by fire, theft, explosion, sprinklers, and all other
hazards and
risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted in the locations where Borrower's business is conducted on the date hereof. Borrower shall
also maintain insurance relating to Borrower's business, ownership and use of the Borrower's assets in amounts and of a type that are customary to businesses similar to Borrower's. 

         (b)   Upon Bank's request, Borrower shall deliver to Bank certified copies of such policies of insurance and evidence of the payments of all
premiums
therefor. 

        6.6    Accounts.    Borrower shall maintain and shall cause each of
its Subsidiaries to maintain its primary depository, operating, and investment accounts with Bank and/or Comerica Securities, Inc. 

        6.7    [Intentionally Omitted.]    

        6.8    Net Worth.    Borrower shall not, at any time during the
periods set forth below, allow its Net Worth to fall below the given amount: 

	Period
 
	 	Minimum Net Worth
	 
	1/1/08 - 3/31/08	 	$	(5,300,000	)
	4/1/08 - 6/30/08	 	$	(6,740,000	)
	7/1/08 - 9/30/08	 	$	(7,500,000	)

        Covenant
to be reset no later than 9/30/08. 

        6.9    Further Assurances.    At any time and from time to time
Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement. 

7.     NEGATIVE COVENANTS.  

        Borrower covenants and agrees that, so long as any credit hereunder shall be available and until payment in full of the outstanding Obligations or for so long as
Bank may have any commitment to make any Credit Extensions, Borrower will not do any of the following: 

        7.1    Dispositions.    Convey, sell, lease, transfer or otherwise
dispose of (collectively, a "Transfer"), or permit any of its Subsidiaries to Transfer, all or any material part of its business or property, including its Intellectual Property, other than:
(i) Transfers of Inventory in the ordinary course of business; (ii) Transfers of non-exclusive licenses and similar arrangements for the use of the property of Borrower or
its Subsidiaries in the ordinary course of business; or (iii) Transfers of worn-out or obsolete Equipment which was not financed by Bank. 

        7.2    Change in Business; Change in Control or Executive
Office.    Engage in any business, or permit any of its Subsidiaries to engage in any business, other than the business of offering systems, equipment, services and
other items for diagnostic testing, and any business substantially similar or related thereto (or incidental thereto); or cease to conduct business in the manner conducted by 

11

 

Borrower
as of the Closing Date; or without thirty (30) days prior written notification to Bank, relocate its chief executive office or state of incorporation or change its legal name; or
without Bank's prior written consent, which shall not be unreasonably withheld, change the date on which its fiscal year ends. 

        7.3    Mergers or Acquisitions.    Merge or consolidate, or permit any
of its Subsidiaries to merge or consolidate, with or into any other business organization, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, except where no Event of Default has occurred, is continuing or would exist after giving effect to the transactions. 

        7.4    Indebtedness.    Create, incur, assume or be or remain liable
with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness. 

        7.5    Encumbrances.    Create, incur, assume or suffer to exist any
Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any accounts, or permit any of its Subsidiaries so to do, except for
Permitted Liens. Agree with any Person other than Bank or any creditor as permitted under this Agreement, not to grant a security interest in, or otherwise encumber, any of its property, or permit any
Subsidiary to do so, except for Permitted Liens. 

        7.6    Distributions.    Pay any dividends or make any other
distribution or payment on account of or in redemption, retirement or purchase of any capital stock, or permit any of its Subsidiaries to do so, except that Borrower may repurchase the stock of
employees and former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase. 

        7.7    Investments.    Directly or indirectly acquire or own, or make
any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments; or maintain or invest any of its property with a Person other than Bank or permit any
of its Subsidiaries to do so unless such Person has entered into an account control agreement with Bank in form and substance satisfactory to Bank; or suffer or permit any Subsidiary to be a party to,
or be bound by, an agreement (other than this Agreement) that restricts such Subsidiary from paying dividends or otherwise distributing property to Borrower. 

        7.8    Transactions with Affiliates.    Directly or indirectly enter
into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are determined in good faith by a disinterested majority of Borrower's board of directors
or committee thereof to be on fair and reasonable terms and that are no less favorable to Borrower than would be obtained in an arm's length transaction with a non-affiliated Person.
Notwithstanding the foregoing, Borrower shall be permitted to enter into and carry out its obligations under that certain Reimbursement and Indemnity Agreement with Guarantors, dated as of
March 11, 2005, as amended from time to time. 

        7.9    Subordinated Debt.    Make any payment in respect of any
Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision contained in any documentation
relating to the Subordinated Debt without Bank's prior written consent. 

        7.10    Compliance.    Become an "investment company" or be controlled
by an "investment company," within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending
credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable
Event or Prohibited Transaction, as defined in ERISA, to occur, fail to comply with the Federal Fair Labor Standards Act or violate any law or regulation, except with respect to all of the foregoing
to an extent which does not have a Material Adverse Effect, or permit any of its Subsidiaries to do any of the foregoing. 

12

 

        7.11    Negative Pledge Agreements.    Permit the inclusion in any
contract to which it or a Subsidiary becomes a party of any provisions that could restrict or invalidate the creation of a security interest in any of Borrower's or such Subsidiary's property, except
contracts relating to Permitted Indebtedness or assets subject to Permitted Liens. 

8.     EVENTS OF DEFAULT.  

        Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement: 

        8.1    Payment Default.    If Borrower fails to pay, when due, any of
the Obligations; 

        8.2    Covenant Default.    If Borrower fails to perform any
obligation under Article 6 or violates any of the covenants contained in Article 7 of this Agreement, or fails or neglects to perform, keep, or observe any other material term,
provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default
under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure such default within fifteen (15) days after Borrower receives notice thereof from Bank;
provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot after diligent attempts by Borrower be cured within such fifteen
(15) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty
(30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default (provided that no Credit
Extensions will be required to be made during such cure period); 

        8.3    Material Adverse Effect.    If there occurs any circumstance or
circumstances that has or have a Material Adverse Effect; 

        8.4    Attachment.    If any portion of Borrower's assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or
distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to
conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower's assets, or if a notice of lien, levy, or
assessment is filed of record with respect to any of Borrower's assets by the United States Government, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or
governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such
action or event is stayed or an adequate bond has been posted pending a good
faith contest by Borrower (provided that no Credit Extensions will be required to be made during such cure period); 

        8.5    Insolvency.    If Borrower becomes insolvent, or if an
Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within forty five (45) days (provided that no Credit
Extensions will be made prior to the dismissal of such Insolvency Proceeding); 

        8.6    Other Agreements.    If there is a default or other failure to
perform in any agreement to which Borrower is a party or by which it is bound resulting in a right by a third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness
in an amount in excess of Five Hundred Thousand Dollars ($500,000) or which could reasonably be expected to have a Material Adverse Effect; 

13

 

        8.7    Subordinated Debt.    If Borrower makes any payment on account
of Subordinated Debt, except to the extent such payment is allowed under any subordination agreement entered into with Bank; 

        8.8    Judgments.    If a judgment or judgments for the payment of
money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars ($500,000) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of
ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); or 

        8.9    Misrepresentations.    If any material misrepresentation or
material misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to
induce Bank to enter into this Agreement or any other Loan Document. 

        8.10    Guaranty.    If any guaranty of all or a portion of the
Obligations (a "Guaranty") ceases for any reason to be in full force and effect, or any guarantor fails to perform any obligation under any Guaranty or a security agreement securing any Guaranty
(collectively, the "Guaranty Documents"), or any event of default occurs under any Guaranty Document or any guarantor revokes or purports to revoke a Guaranty, or any material misrepresentation or
material misstatement exists now or hereafter in any warranty or representation set forth in any Guaranty Document or in any certificate delivered to Bank in connection with any Guaranty Document, or
if any of the circumstances described in Sections 8.3 through 8.8 occur with respect to any guarantor, or any circumstances arise causing Bank, in good faith, to become insecure as to the
satisfaction of any of any guarantor's obligations under the Guaranty Documents. 

        8.11    Letter of Credit Default.    Borrower defaults under any
reimbursement obligation or other obligation of Borrower under the Standby Letter of Credit Application and Agreement or other standard form letter of credit application and reimbursement agreement as
may be in effect from time to time. 

9.     BANK'S RIGHTS AND REMEDIES.  

        9.1    Rights and Remedies.    Upon the occurrence and during the continuance of an Event of
Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower:

         (a)   Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable
(provided that upon the occurrence of an Event of Default described in Section 8.5, all Obligations shall become immediately due and payable without any action by Bank); 

         (b)   Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between
Borrower
and Bank; 

         (c)   Set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by Bank, or (ii) indebtedness at
any
time owing to or for the credit or the account of Borrower held by Bank; and 

        (d)   If an Event of Default has occurred pursuant to Section 8.10, demand that Borrower (i) deposit cash with Bank in an amount equal
to
the amount of any Letters of Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and (ii) pay in advance all Letter of Credit
fees scheduled to be paid or payable over the remaining term of the Letters of Credit, and Borrower shall promptly deposit and pay such amounts. 

14

 

        9.2    Bank Expenses.    If Borrower fails to pay any amounts or
furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower:
(a) make payment of the same or any part thereof; (b) set up such reserves under a loan facility in Section 2.1 as Bank deems necessary to protect Bank from the exposure created
by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank deems
prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided. Any
payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. 

        9.3    Remedies Cumulative.    Bank's rights and remedies under this
Agreement, the Loan Documents, and all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity.
No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower's part shall be deemed a continuing waiver. No delay by Bank shall
constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific
instance and for the specific purpose for which it was given. 

        9.4    Demand; Protest.    Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees at any time held by Bank on which Borrower may in any way be liable. 

10.   NOTICES.  

        Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection
herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a
recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses set forth below: 

	 	If to Borrower:	 	CLARIENT, INC.

31 Columbia

Aliso Viejo, CA 92656

Attn: Chief Financial Officer

FAX: (949) 485-5865
	

 	

If to Bank:	
 	

Comerica Bank

75 E Trimble Road

San Jose, CA 95131

FAX: (408) 556-5091
	

 	

with a copy to:	
 	

Comerica Bank

11921 Freedom Drive, Suite 920

Reston, VA 20190

Attn: Peter Bendoris

FAX: (703) 467-9308

        The
parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other. 

15

 

11.   CHOICE OF LAW AND VENUE: JURY TRIAL WAIVER.  

        This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts of
law. Jurisdiction shall lie in the State of California. THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO
THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL
BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED
PARTIES. 

12.   REFERENCE PROVISION.  

        12.1    In the event the Jury Trial Waiver set forth above is not enforceable, the parties elect to proceed under this Judicial
Reference Provision. 

        12.2    With the exception of the items specified in Section 12.3, below, any controversy, dispute or claim (each, a
"Claim") between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the undersigned parties (collectively in this Section, the "Loan
Documents"), will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure ("CCP"), or their
successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the
Loan Documents, venue for the reference proceeding will be in the Superior Court in the County where the real property involved in the action, if any, is located or in a County where venue is
otherwise appropriate under applicable law (the "Court"). 

        12.3    The matters that shall not be subject to a reference are the following: (i) nonjudicial foreclosure of any
security interests in real or personal property, (ii) exercise of self help remedies (including, without limitation, set-off), (iii) appointment of a receiver and
(iv) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs of possession, temporary restraining orders or preliminary injunctions). This
Agreement does not limited the right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose from a court of competent
jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the right of any party to a reference pursuant to this
Agreement. 

        12.4    The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do
not agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her
representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. 

        12.5    The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be
requested, subject to change in the time periods specified herein for good cause
shown, to (i) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of
law or fact within one hundred twenty (12)) days after the date of the conference and (iii) report a statement of decision within twenty (20) days after the matter has been submitted for
decision. 

        12.6    The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend
discovery deadlines or cutoffs for good cause, including a party's failure to 

16

 

provide
requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to "priority" in conducting discovery, depositions may be taken
by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot
be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 

        12.7    Except as expressly set forth in this Agreement, the referee shall determine the manner in which the reference
proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All
proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any
hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court
reporter. Subject to the referee's power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 

        12.8    The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the
State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable
as well as legal relief, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a court proceeding, including without limitation motions for
summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference.
Pursuant to CCP Section 644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will be
final, binding and conclusive. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right
to findings of act, conclusions of law, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference
proceeding under this provision. 

        12.9    If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is
enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge
or Justice, in accordance with the California Arbitration Act Section 1280 through
Section 1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 

        12.10    THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION
WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR
THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR
THE OTHER LOAN DOCUMENTS. 

13.   GENERAL PROVISIONS.  

        13.1    Successors and Assigns.    This Agreement shall bind and inure
to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however, that neither this
Agreement nor any rights hereunder may be assigned by Borrower without Bank's prior written consent, which consent may 

17

 

be
granted or withheld in Bank's sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or
any interest in, Bank's obligations, rights and benefits hereunder. 

        13.2    Indemnification.    Borrower shall defend, indemnify and hold
harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions
contemplated by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank, its officers, employees and agents as a result of or in any way arising out
of, following, or consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys fees and expenses), except for
losses caused by Bank's gross negligence or willful misconduct. 

        13.3    Time of Essence.    Time is of the essence for the performance
of all obligations set forth in this Agreement. 

        13.4    Severability of Provisions.    Each provision of this
Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

        13.5    Amendments in Writing, Integration.    All amendments to or
terminations of this Agreement or the other Loan Documents must be in writing. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with
respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents. 

        13.6    Counterparts.    This Agreement may be executed in any number
of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Agreement. 

        13.7    Survival.    All covenants, representations and warranties
made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of
Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 13.2 shall survive until all applicable statute of limitations periods with
respect to actions that may be brought against Bank have run. 

        13.8    Confidentiality.    In handling any confidential information,
Bank and all employees and agents of Bank shall exercise the same degree of care that Bank exercises with respect to its own proprietary information of the same types to maintain the confidentiality
of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (i) to the subsidiaries or Affiliates of
Bank in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the Loans, provided that they have
entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or
similar order, (iv) as may be required in connection with the examination, audit or similar investigation of Bank and (v) as Bank may determine in connection with the enforcement of any
remedies hereunder. Confidential information hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Bank (which information was
not previously disclosed to Bank by Borrower pursuant to confidentiality protections) when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or
(b) is disclosed to Bank by a third party, provided Bank does not have actual knowledge that such third party is prohibited from disclosing such information. 

18

 

        13.9    Effect of Amendment and Restatement.    This Agreement is
intended to and does completely amend and restate, without novation, the Original Agreement. All Advances and Obligations outstanding (and as defined under) the Original Agreement are deemed,
respectively, Advances and Obligations under (and as defined in) this Agreement. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

19

 

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

	 	 	CLARIENT, INC.
	

 	
 	

By:	
 	

/s/ JAMES AGNELLO

	

 	
 	

Title:	
 	

Sr. Vice President & Chief Financial Officer

	

 	
 	

COMERICA BANK
	

 	
 	

By:	
 	

/s/ PETER BENDORIS

	

 	
 	

Title:	
 	

Vice President

20

QuickLinks

Exhibit 10.35

CLARIENT, INC. AMENDED AND RESTATED LOAN AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]