Document:

exh10-1_16763.htm

    EXHIBIT
10.1

     

    THIRD MODIFICATION
AGREEMENT

    

    

    THIS
THIRD  MODIFICATION AGREEMENT (the “Modification Agreement”), dated as
of March 11, 2010 by and between CAS MEDICAL SYSTEMS, INC., a Delaware
corporation having its chief executive office at 44 East Industrial Road,
Branford, Connecticut (the “Borrower”) and NEWALLIANCE BANK, a Connecticut stock
savings bank with a place of business at 195 Church Street, New Haven,
Connecticut 06510 (the “Bank”).

    

    W I T N E S S E T H

    

    WHEREAS,
the Borrower executed a Commercial Revolving Promissory Note in the original
stated principal amount of Ten Million Dollars ($10,000,000.00) dated February
11, 2008, as modified by a Debt Modification Agreement (the “First
Modification”) from Borrower dated December 31, 2008, and as further modified by
a Second Modification Agreement between Bank and Borrower executed April 3, 2009
(the “Second Modification”) (said Commercial Revolving Promissory Note, as
modified by the First Modification and Second Modification , herein called the
“Note” and the loan evidenced by the Note herein called the “Loan”);
and

    

    WHEREAS
the Note was issued pursuant to a Commercial Loan Agreement dated February 11,
2008 between Borrower and Bank, including a Commercial Loan Agreement Addendum
(“Addendum”) also dated February 11, 2008 between Borrower and Bank, which said
Commercial Loan Agreement, including the Addendum, was modified by the First
Modification and the Second Modification (said Commercial Loan Agreement,
including the Addendum, as modified by the First Modification and Second
Modification herein called the “Loan Agreement”);
and

    

    WHEREAS
pursuant to the Loan Agreement, the maximum principal amount of the Loan
permitted to be outstanding at any time pursuant to the Loan Agreement was
reduced to Five Million Dollars, and subject to such further requirements and
limitations as are set forth in the Loan Agreement;

    

    WHEREAS,
Borrower’s
obligations to the Bank, including those under the Note and Loan Agreement are
secured inter
alia by a
security interest in the Collateral, as defined in the Security Agreement (as
modified by the First Modification and Second Modification, the “Security Agreement”) from
Borrower to Bank dated February 11, 2008, and herein also called the “Collateral;” and

    

    WHEREAS,
in connection with the Loan, Borrower executed and delivered various other
documents, instruments and/or indemnities to Bank (said documents, instruments
and indemnities, including without limitation, the Note, the Loan Agreement, the
Security Agreement, the Loan Documents as defined in the Loan Agreement, and all
other documents evidencing, securing, or relating to the Loan, collectively
called the “Loan
Documents”); and

    

    
      
        
        

      

      
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    WHEREAS, Borrower has requested a
modification of the Loan Documents in order to amend the Debt Service Coverage
Ratio covenant contained in the Loan Agreement, to extend the maturity of the
Loan and to consider certain assets of Statcorp, Inc. (“Statcorp”), a Delaware
corporation and a subsidiary of Borrower, in determining the Borrowing Base
under the Loan Agreement, and the Bank is willing to amend the Loan Documents
subject to and on the terms and conditions set forth herein.

    

    NOW,
THEREFORE in consideration of the mutual promises and covenants contained
herein, the parties hereto agree as follows:

    

    
      	
            	
              1. 

            	
              Borrower
      acknowledges and agrees that (i) as of the date hereof and before giving
      effect to any Advance made this date under the Loan Agreement, or other
      transactions occurring as of the date hereof,  including any checks
      presented for payment or electronic funds transfers or loan sweeps made as
      of the date hereof, the outstanding principal balance due Bank under the
      Note isTwo Million
      One Hundred Twenty Nine Thousand One Hundred One and 35/100 Dollars
      ($2,129,101.35); and (ii) the said principal balance is due and owing to
      the Bank under the Note, without defense, offset or
      counterclaim.

            

    

    

    
      	
            	
              2. 

            	
              The
      Note is hereby modified as follows:

            

    

     

    a)  The Note shall mature on
April 1, 2011, which date shall constitute the “Maturity Date” as defined in the
Note.

    

    b)  To indicate that
commencing March 11, 2010, and continuing thereafter the annual interest rate on
the Note shall be equal to the greater of (a) the Base Rate (as hereafter
defined) in effect from time to time, plus two percentage points (2.00%) or (b)
five percent (5.00%) (“Floor Rate”).  The Base Rate is subject to
change on a daily basis.  Whenever the Base Rate changes, the interest
rate on the Note is subject to change without notice or demand, so that the
annual interest rate on the outstanding principal balance of the Note will at
all times be equal to the greater of (a) the Base Rate plus 2.00% or (b) the
Floor Rate.  The term “Base Rate” shall mean the rate designated from
time to time by the Bank as its “Base Rate.”  The Base Rate is not
necessarily the best or lowest interest rate charged by the
Bank.  Notwithstanding the foregoing, after the occurrence of an Event
of Default, as defined in the Note, or after the Maturity Date as defined in the
Note, and including the period after any judgment has been rendered with respect
to the Note, the interest rate on the outstanding principal balance of the Note
shall be three percentage points (3.0%) per annum higher than the rate of
interest otherwise payable under the Note.

    

    c)  To
indicate that interest on the outstanding principal balance of the Note shall be
due and payable monthly in arrears on the first day of each calendar
month.  If not sooner paid, all outstanding principal under the Note,
together with accrued but unpaid interest shall be due and payable in full on
April 1, 2011, unless extended in writing by the holder of the Note, in its sole
and absolute discretion, upon terms and conditions acceptable to that
holder.

    

    
      
        
        

      

      
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    d)  To indicate that
references therein to the “Commercial Loan Agreement” or the “Agreement” shall
mean the “Loan Agreement” as that term is defined in this Modification
Agreement, as modified by this Modification Agreement, as the same may be
further amended and/or restated from time to time.

    

    
      	
               
      

            	
              3.

            	
              The
      Loan Agreement is modified as
follows:

            

    

    

    a)  Section
1.1 of the Loan Agreement is modified to provide as follows:

    

    Upon and
subject to the terms and conditions set forth in this Agreement, the Bank agrees
to lend to Borrower, and the Borrower may borrow from the Bank, from time to
time (the “Loan”), up to
the principal amount (hereinafter referred to as the “Borrowing Base”) which is the
lesser of:

    

    a.           
The sum of:

    

    (1)         Seventy-Five
Percent (75.00%) of the
Borrower’s Eligible Receivables and Seventy-Five Percent (75.00%) of Statcorp
Eligible Receivables (as hereafter defined); AND

    

    (2)         the
lesser of two million five hundred thousand dollars ($2,500,000.00) or Thirty
Percent (30.00%) of the
Borrower’s Eligible Inventory plus Thirty Percent (30.00%) of the
Statcorp Eligible Inventory (as hereafter defined);

    

    OR

    

    b.         FIVE MILLION DOLLARS
($5,000,000.00).

    

    which
amount the Borrower may borrow, repay and reborrow until the Maturity Date, as
hereinafter defined, subject to the terms and conditions hereof; provided
however, the maximum principal amount of the Loan outstanding at any one time
shall not exceed the Borrowing Base. The term “Statcorp Eligible Receivables”
shall mean “Eligible Receivables,” as defined in the Security Agreement from
Statcorpto Bank dated March 11, 2010, as the same may be amended and/or restated
from time to time (“Statcorp
Security Agreement”) and the term “Statcorp Eligible Inventory”
shall mean “Eligible Inventory,” as defined in the Statcorp Security
Agreement.

    

    b)           The
second and third paragraphs of Section 1.2 are modified to provide as
follows:

    

    
      
        
        

      

      
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    In
addition to the forgoing, Borrower shall have no right to obtain any Advance
which if made would result in the principal balance of the Loan exceeding the
Borrowing Base. Nothing herein shall be construed to require the Bank to lend up
to the Borrowing Base, and nothing shall prohibit the Bank from lending in
excess of the Borrowing Base.

    

    In the
event the Borrowing Base is exceeded at any time, Borrower shall pay such excess
amount on demand.

    

    c)           Section
3.1(c) of the Loan Agreement is modified to provide as follows:

    

    Borrower
shall have no right to obtain any Advance, which if made would result in the
principal balance of the Loan exceeding the Borrowing Base.

    

    d)           Section
3.1(c) is modified to indicate that “Eligible Inventory” shall no longer include
work-in-process (other than raw materials and finished goods which would
otherwise constitute Eligible Inventory) and to further indicate that Eligible
Inventory shall not include slow moving Inventory, as determined by the
Bank.  All other requirements of “Eligible Inventory” shall remain
unchanged.

    

    e)           Section
3.1(c) is further modified to indicate that in addition to the requirements set
forth in the definition of “Eligible Receivables,” Eligible Receivables shall
not include all of the accounts owed by an account debtor where fifty percent
(50.00%) or more of all of the accounts owed by that account debtor are past due
more than the 90 days from the invoice date ; or (ii) any account from an
account debtor located outside of the United States, unless supported by foreign
credit insurance or a letter of credit which has been assigned to Bank,
in both instances acceptable to the Bank, in its sole and absolute
discretion, or unless otherwise agreed to by Bank.  Section 3.1(c) is
further modified to indicate that in addition to the requirements set forth in
the definition of  “Eligible Inventory,”  Eligible Inventory
shall not
include Inventory which is not in Debtor’s possession and control or
Inventory which is not located at the locations known as 14476-701 Duval Place
West, Jacksonville, FL 32218, or 30- 38 and  40- 44 East Industrial
Road, Branford , CT, unless otherwise agreed to by the Bank.

    

    f)           Section
4.2 of the Loan Agreement is modified to provide as follows:

    

    Borrowing
Base Certificates and Reports shall be delivered to the Bank concurrently with
any request for an Advance and also monthly on the fifteenth day of each month.
Said monthly Borrowing Base Certificates and Reports shall show the status of
Inventory and Accounts of Borrower and Statcorp, on a consolidated basis (and
Eligible Inventory and Statcorp Eligible Inventory, on a consolidated basis, and
Eligible Receivables and Statcorp Eligible Receivables, on a consolidated basis)
as of the last business day of the preceding month.  Such Borrowing
Base Certificates and Reports submitted at the time of a request for an Advance,
shall reflect Inventory and Accounts of Borrower and Statcorp, 

     

    
      
        
        

      

      
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    on a
consolidated basis (and Eligible Inventory and Statcorp Eligible Inventory, on a
consolidated basis,  and Eligible Receivables and Statcorp Eligible
Receivables, on a consolidated basis) as of the close of business on the last
business day preceding the date of the request for Advance. The Borrowing Base
Certificates and Reports shall be in such form and detail as the Bank may
require. Upon request of the Bank from time to time, the Borrower shall deliver
a Borrowing Base Report reflecting Inventory and Accounts of Statcorp and
Borrower on a non-consolidated basis as well as Eligible Inventory, Statcorp
Eligible Inventory, Eligible Receivables and Statcorp Eligible Receivables, on a
non- consolidated basis.

    

    Without
limiting the foregoing, in order to verify the validity of any Borrowing Base
Certificate, Borrower shall, upon the request of Bank, promptly furnish Bank
with copies of Borrower’s purchase orders, sales journals, invoices, chattel
paper, customer’s purchase orders, or the equivalent, and original shipping or
delivery receipts for all Inventory purchased and goods sold, and Borrower shall
warrant the genuineness thereof. In addition, Borrower shall provide Bank, on a
quarterly basis, commencing on July 15, 2010 and on the fifteenth day of each
calendar quarter thereafter, a report identifying the location of and all names
and addresses of all persons or entities other than the Borrower or Statcorp,
such as lessees, consignees, warehousemen or purchasers of chattel paper, which
have possession or are intended to have possession of any of the Collateral as
defined in the Security Agreement and the Statcorp Security Agreement consisting
of instruments, chattel paper, inventory or equipment.  Such reports
shall, at the request of Bank, contain an estimate of the value of such
Collateral located at such locations.

     

    g)           Section
3.1 (d)  is modified to provide as follows:

    

    
      In the
event the Borrowing Base is exceeded at any time, Borrower shall pay such excess
amount on
demand.  Nothing herein shall be construed to require the Bank to lend
up to the Borrowing Base, and nothing shall prohibit the Bank from lending in
excess of the Borrowing Base.

    

    

    h)           Section
4.3(c) of the Loan Agreement is modified to provide as follows:

    

    Borrower
and Statcorp’s accounts receivable agings on a consolidated basis in form and
detail satisfactory to Bank, shall be provided to Bank on the fifteenth day of
each month and at the time of each request for an Advance. Such monthly agings
shall show the aging of accounts for Borrower and Statcorp on a consolidated
basis as of the last business day of the preceding month.  Such agings
submitted at the time of a request for an Advance, shall reflect the aging of
accounts for Borrower and Statcorp on a consolidated basis as of the close of
business on the last business day preceding the date of the request for
Advance.  Upon request of Bank from time to time, Borrower shall
deliver agaings for a Borrower and Statcorp on a non-consolidated
basis.

    

    i)           Section
4.5 of the Loan Agreement is modified to provide as follows:

    

    
      
        
        

      

      
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    The
Borrower shall maintain a minimum Debt Service Coverage Ratio of 1.25 to 1.0 as
of March 31, 2010 and thereafter (tested quarterly on a year-to-date
basis).  The Debt Service Coverage Ratio shall be defined as (earnings
before interest expense, taxes, depreciation and amortization) divided by
(current maturities of long term debt plus interest expense), all as determined
in accordance with generally accepted accounting principles.

    

    j)           The
Loan Agreement is modified to indicate that the term “Borrowing Base” as used in
the Loan Agreement, shall have the meaning of “Borrowing Base” set forth in
Section 3a of this Modification Agreement.

    

    k)           The
Loan Agreement is modified to indicate that references to the Note therein shall
mean the “Note,” as that term is defined in this Modification Agreement, as
modified by this Modification Agreement, as the same may be further amended
and/or restated from time to time; and references to the Security Agreement
therein shall mean the “Security Agreement,” as that term is defined in this
Modification Agreement, as modified by this Modification Agreement, as the same
may be further amended and/or restated from time to time.

    

    l)           The
terms of the Addendum (as defined in this Modification Agreement) shall no
longer be in effect.

    

    m)           The
following shall be added to the Loan Agreement as Section 4.18:

    

    The Bank
shall have the right to perform examinations and audits of the Collateral for
the Loan, from time to time at the Borrower’s expense, including without
limitation, Borrower’s books and records, accounts, purchase orders, sales
journals, invoices, chattel paper, customer’s purchase orders, or the
equivalent, and original shipping or delivery receipts for all inventory
purchased and goods sold. In addition, the Bank shall have the right to require
the establishment of a lockbox by Borrower at the Bank and a blocked account for
the collection of Borrower’s accounts and other receivables, on terms
satisfactory to the Bank and at the expense of the Borrower. The Bank shall also
have the right to notify account debtors of Borrower upon or at any time after
the occurrence of an Event of Default, to pay accounts and other receivables
directly to the Bank.  Borrower shall pay to the Bank, upon demand,
all fees, costs and expenses incurred or charged by Bank in connection with any
such examination, audit, lockbox, and notification.

    

    n)           The
Loan Agreement is modified to indicate that all references therein to the “Loan
Document” or “Loan Documents” shall mean collectively and individually the Note,
Loan Agreement, the Security Agreement, the Statcorp Security Agreement, the
Statcorp Guaranty, all as defined in this Modification Agreement, as the same
may be amended/or restated from time to time, including by this Modification
Agreement, and all other documents now or hereafter evidencing, securing,
guarantying or relating to the loan evidenced by the Note, as amended by

     

    
      
        
        

      

      
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    this
Modification Agreement, and as the same may be further amended and/or restated
from time to time, or any guaranty thereof, and including this Modification
Agreement. The Loan Agreement is further modified to indicate that all
references therein to the “Statcorp Guaranty” shall have the meaning ascribed to
it in this Modification Agreement.

    

    o)           The
Loan Agreement is modified to indicate that in addition to the Events of Default
set forth in Section 6 thereof, each of the following shall constitute an Event
of Default and the Cure Right shall not be applicable to any of the
following:

    

    (i)
Statcorp’s failure to keep in force any insurance required under the Statcorp
Security Agreement; or (ii) Statcorp shall cease to legally exist; or
(iii)  the dissolution of the Statcorp or the  filing by or
against Statcorp of any petition, arrangement, reorganization, or the like under
any insolvency or bankruptcy law, or the adjudication of Statcorp as bankrupt,
or the making of an assignment for the benefit of creditors, or the appointment
of a receiver for any part of any of Statcorp’s properties; or (iv) any material
change in the structure of Statcorp’s business operations which in the
reasonable judgment of the Bank materially and adversely affects the ability of
the Statcorp to pay or perform under any of the Loan Documents or otherwise
impairs any security of the Bank; or (v) any merger or consolidation of Statcorp
with or into another entity or any spinoff or reorganization of Statcorp; or
(vi) the occurrence of a default or an Event of Default (as defined therein)
under, or demand for payment of the Statcorp Security Agreement, the Statcorp
Guaranty or any other existing or future agreement from Statcorp in favor of
Bank; or (vii) there is a material adverse change in the condition or affairs
(financial or otherwise) of Statcorp, or a material adverse change (financial or
otherwise) in the collateral which secures any obligations of Statcorp to Bank,
and such change causes the Bank, in good faith, to deem itself insecure with
respect to the repayment and performance of any obligations of Statcorp to Bank;
or (viii) any representation or warranty made by the Statcorp in any of the Loan
Documents, or in any existing or future agreement from Statcorp in favor of Bank
shall be incorrect or untrue in any material respect as of the date when made,
or any statement, certificate or data furnished by the Borrower in connection
with the Loan or any said existing or future agreement shall be incorrect or
untrue in any material respect as of the date thereof or as of the date
specified therein, as the case may be; or (ix) any default in this Modification
Agreement; or (x) the failure to keep, perform or carry out the Statcorp
Guaranty.

    

    4.           Borrower
represents and warrants that the only commercial tort claims it has as of the
date hereof are described on Schedule
4 attached hereto and incorporated herein (“Tort Claims”). To secure the
Obligations as defined in the Security Agreement, as amended by this
Modification Agreement, Borrower hereby grants to the Bank a security interest
in the Tort Claims.  Borrower agrees that the Tort Claims shall
constitute “Collateral” as defined in the Security Agreement and that Bank shall
have all rights with respect to the Tort Claims, as it has under the Security
Agreement with respect to the other Collateral described in the Security
Agreement, as amended hereby and the Security Agreement is amended to include in
the definition of “Collateral” therein, the Tort Claims.

    

    
      
        
        

      

      
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    5.            
A.  Borrower shall deliver to Bank contemporaneously
herewith  a Trademark and Letters Patent Security Agreement (“Patent Assignment”) providing
to Bank a first priority collateral assignment, lien and security interest in
all intellectual property of the Borrower, including, without limitation,
patents, trademarks and copyrights of Borrower and pending applications
therefor. The Patent Assignment shall be in form and substance satisfactory to
Bank. Such Patent Assignment shall be filed in the U.S. Patent/Trademark Officer
(“PTO”) and any other governmental officers as the Bank may
require.  Borrower shall provide Bank with such searches of the PTO
and other governmental offices as Bank may require, at the Borrower’s expense,
to confirm that Bank has a first priority collateral assignment, lien and
security interest in all intellectual property of the Borrower.

     

    B.  Borrower
shall also cause to be delivered to the Bank the Statcorp Security Agreement and
a Guaranty from Statcorp (as the same may amended and/or restated from time to
time, the “Statcorp
Guaranty”) both dated the date hereof and both in form and substance
satisfactory to the Bank.

    

    6.           The
Loan Documents are hereby reaffirmed and modified to incorporate the terms
contained in this Modification Agreement.  Any default in this
Modification Agreement shall be an Event of Default as defined in the Loan
Agreement. The Borrower acknowledges and agrees that without limiting any other
rights or remedies available to the Bank at law, equity or by contract, upon the
occurrence of an Event of Default, as defined in or under the Note or Loan
Agreement, or the failure to comply with the terms of this Modification
Agreement, the entire principal balance of the Note, with accrued interest
thereon shall, at the option of holder of the Note, become due and payable
forthwith without demand or notice.

    

    7.           The
Borrower reaffirms all its representations, warranties, covenants (both
affirmative and negative), waivers and indemnities contained in the Loan
Documents, as modified hereby.  All of the representations and
warranties set forth in the Loan Documents are true and correct as if made on
the date of execution of this Agreement except as waived in the Waiver
Letter.

     
 

    8.           The
Borrower represents, acknowledges and affirms that it has no claim, defense,
offset or counterclaim whatsoever against Bank with respect to the Note, the
Loan Agreement, or any other Loan Document, or the modifications made herein,
and that Bank is relying on this representation in agreeing to said
modifications.  The Borrower further acknowledges that Bank would not
agree to said modifications unless the Borrower made the representations
contained in this paragraph, and elsewhere in this Modification Agreement,
freely and willingly, after due consultation with its
attorneys.  Borrower further represents that this Modification
Agreement, and all of the Loan Documents executed by it, are its valid and
binding obligations and enforceable in accordance with their terms and further
represents that except as waived in the Waiver Letter, no Event of Default (as
defined in the Loan Agreement or any Loan Document) has occurred nor has there
occurred any event or condition which, with the giving of notice or the passage
of time or both would constitute an Event of Default.

    

    
      
        
        

      

      
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    9.           In
furtherance of the immediately preceding paragraph, Borrower, as of the date of
this Modification Agreement, releases, and forever discharges the Bank, its
officers, agents, successors and assigns, from any and all claims, actions,
causes of action, obligations and liabilities of any kind known or unknown which
the Borrower has or may have as of the date  hereof, whether relating
to the Note, the Loan Agreement, any of the Loan Documents or any of the
transactions contemplated hereby or consummated in connection herewith, or any
negotiations in connection with any of the foregoing, or otherwise.

    

    10.         The
Borrower agrees that nothing contained herein shall in any way impair the Note,
Loan Agreement, the Security Agreement or any other Loan Document, and the
Collateral shall remain in all respects subject to the lien, charge and
encumbrance of the Security Agreement.  The Borrower further agrees
that nothing contained herein or modified pursuant to this Modification
Agreement shall affect or be construed to affect the lien, charge or encumbrance
of the security interests granted by the Borrower or the priority thereof, over
other liens, charges and encumbrances, or release or affect the liability of any
other party or parties who may now or hereafter be liable under, pursuant to, or
on account of the Note, the Loan Agreement and/or the other Loan Documents. The
Borrower acknowledges, confirms and agrees that (i) the Security Agreement and
the security interest in the Collateral granted to the Bank pursuant to the
Security Agreement, as modified hereby, secure among other things, and without
limiting the terms of the Security Agreement, as modified hereby, the Borrower’s
obligations under this Modification Agreement, as well as the other Loan
Documents; and (ii) the “Obligations” as defined in the Security Agreement,
include, without limitation, all liabilities, obligations, indebtedness, duties,
and covenants of the Borrower under this Modification Agreement, and under the
Note and the Loan Agreement, both as modified by this Modification
Agreement.

     

    11.           Borrower
acknowledges and agrees that it is not permitted to sell or otherwise dispose of
any Collateral, as defined in the Security Agreement, as amended hereby (other
than the sale of inventory in the ordinary course of Borrower’s business),
without the prior written consent of the Bank, in the Bank’s sole discretion. To
the extent the Bank shall in future, in its sole and absolute discretion,
provide its written consent to any sale or disposition of the Collateral, the
Bank may, at its option and without limiting any of its rights, condition its
consent on the Borrower’s payment to the Bank of the proceeds from the sale or
disposition and shall have the right, in its sole and absolute discretion, to
apply such proceeds to any of Borrower’s then outstanding obligations to the
Bank, which may include the Loan or any other loans or obligations outstanding
from Borrower to the Bank.

    

    12.           
Concurrently with the execution and delivery of this Agreement by the Bank and
the Borrower, the Bank shall deliver a letter substantially in the form set
forth in Schedule
A attached hereto and made a part hereof (“Waiver Letter”) in connection
with the testing of the Debt Service Coverage Ratio as of  December
31, 2009 under the Loan Agreement.   Borrower shall pay Bank,
concurrently with the execution and delivery of this Agreement and the Waiver

     

    
      
        
        

      

      
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    Letter by
Bank and the Borrower, a fee (“Waiver Fee”) in the amount of
twenty-five thousand dollars ($25,000.00), to induce Bank to issue the Waiver
Letter.

    

    13.         Borrower
shall pay a fee of fifty thousand dollars ($50,000.00) to the Bank on the date
of execution of this Modification Agreement by Borrower, in consideration of and
as set forth in the Bank’s issuance of the commitment letter dated February 19,
2010 (“Commitment Letter”) relating to the modifications
described  herein (the “Commitment Fee”). The Borrower
shall also pay, upon demand, all costs and expenses, including reasonable
attorneys’ fees, incurred by Bank in connection with the Loan, including,
without limitation, matters relating to the Debt Service Coverage Ratio and the
transaction of which this Modification Agreement forms a part, including the
preparation of this Modification Agreement and the closing of the transaction
contemplated hereby.

    

    14.         Capitalized
terms not otherwise defined herein shall have the same meaning as in the
document to which they refer.  Except as modified by this Modification
Agreement, the Note, the Loan Agreement and all other Loan Documents shall
remain unchanged and in full force and effect.  Borrower shall keep
and perform all of the terms and agreements contained in the Loan Documents, as
modified by this Modification Agreement.

    

    15.         This
Modification Agreement shall be binding upon and inure to the benefit of the
parties hereto, their respective heirs, successors and assigns.  This
Modification Agreement may only be amended in writing.  If any term or
provision of this Modification Agreement or the application thereof to any
person or circumstance, shall to any extent be invalid or unenforceable, the
remainder of this Modification Agreement, or the application of such term or
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected thereby, and each term and provision of
this Modification Agreement shall be valid and enforceable to the fullest extent
permitted by law.  To the extent of any conflict between the
Commitment Letter and this Modification Agreement, this Modification Agreement
shall control.

    

    16.         This
Agreement may be signed in one or more counterparts all of which shall
constitute one document and shall be construed under the laws of the State of
Connecticut. The Recitals are incorporated herein.

    

    17.         THE
BORROWER ACKNOWLEDGES THAT THE NOTE, THE LOAN AGREEMENT, ALL LOAN DOCUMENTS AND
THIS MODIFICATION AGREEMENT RESULT FROM A COMMERCIAL TRANSACTION AND THE
BORROWER HEREBY WAIVES ANY RIGHT TO NOTICE OR HEARING UNDER THE CONSTITUTION OF
THE UNITED STATES OR ANY STATE OR FEDERAL LAW,  INCLUDING CONNECTICUT
GENERAL STATUTES SECTION 52-278a ET SEQ., AS NOW OR HEREAFTER AMENDED, OR ANY
SUCCESSOR ACT OR ACTS THERETO, AND WAIVES ANY REQUIREMENTS FOR THE POSTING OF
ANY BOND IN CONNECTION WITH ANY PREJUDGMENT REMEDY SOUGHT.  THE
BORROWER AUTHORIZES THE ATTORNEY FOR ANY HOLDER OF THE NOTE TO ISSUE A WRIT FOR
PREJUDGMENT REMEDY 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    WITHOUT
COURT ORDER.  BORROWER ACKNOWLEDGES THAT IT MAKES THIS WAIVER
KNOWINGLY AND VOLUNTARILY AFTER CONSULTATION WITH ITS ATTORNEY.

    

    18.         THE
BORROWER WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON
ANY MATTER ARISING IN CONNECTION WITH THE NOTE, THE LOAN AGREEMENT, ANY LOAN
DOCUMENT, THIS MODIFICATION AGREEMENT OR IN ANY WAY RELATED TO THE FINANCING
TRANSACTIONS OF WHICH THIS MODIFICATION AGREEMENT IS A PART AND/OR THE DEFENSE
OR ENFORCEMENT OF ANY OF BANK’S RIGHTS OR REMEDIES.  BORROWER
ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY AFTER
CONSULTATION WITH ITS ATTORNEY.

    

    19.         Borrower
will, upon demand, furnish to the Bank such further information,
and

    will
execute and deliver such instruments or documents, and will do all such acts as
the Bank may, at any time or from time to time, reasonably request, or as may be
necessary or appropriate to establish and maintain a valid and enforceable first
priority security interest of the Bank in the Collateral, as defined in the
Security Agreement, as modified hereby and in the Collateral, as defined in the
Patent Assignment.

    

    20.         Borrower
shall cause to be delivered to the Bank  contemporaneously herewith
(i) a legal opinion from Borrower’s counsel with respect to this Modification
Agreement,  a current UCC Search of the Delaware Secretary of State
and such other searches of governmental offices as the Bank may require,
including a current search from the U.S. Patent/Trademark Office,
all  in form and substance satisfactory to the Bank; and (ii) a
current Certificate of Good Standing from the Delaware Secretary of
State  as to Borrower, and a current Certificate of Authority to
Transact Business, as to Borrower from the Connecticut Secretary of State and
such other States as the Bank may require; and (iii) a resolution of the board
of directors of the Borrower certified by the Secretary or other officer of the
Borrower (other than Jeffery A. Baird) in form and substance satisfactory to the
Bank, which among other things authorizes the Borrower’s entering into the
transaction contemplated hereby  and its execution and delivery of
this Modification Agreement and other documents as may be required by the Bank,
including the Patent Assignment (iv) such other information, materials and
documents as Bank may require, including without limitation, landlord consent
agreements.

    

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

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    

    
      	
              Signed,
      Sealed and Delivered

            	 
      
	
              In
      The Presence Of:

            	 
      
	 
      	
              CAS
      MEDICAL SYSTEMS, INC.

            
	
              /s/ Christian M. McNamara 

                
      

              Christian
      M. McNamara

            	 
      
	
            	 
      
	 
      	 
      
	
              /s/ Judy K. Weinstein 

                
      

              Judy
      K. Weinstein

            	
              By: 
      /s/ Jeffery A. Baird 

              
                
      

              Jeffery
      A. Baird

              
                Its:
      Chief Financial Officer

              

            
	
            	
               

            
	 
      	 
      
	 
      	
              NEWALLIANCE
      BANK

            
	
              /s/ Christian M. McNamara 

                
      

              Christian
      M. McNamara

            	 
      
	 
      	 
      
	
              /s/ Judy K. Weinsten 

                
      

              Judy
      K. Weinstein

            	
              By: 
      /s/ Dante S. Fazzina

              
                
      

              Dante
      S. Fazzina

              
                Its
      Vice President

              

            

    

     

    
       

      
        	
                STATE OF
      CONNECTICUT

                 

                COUNTY OF NEW HAVEN 

              	
                ) 

                )

                )

              	ss.  New
      Haven                                           March
      11, 2010 

      

    

     

    Personally appeared Jeffery A. Baird,
Chief Financial Officer of CAS
MEDICAL SYSTEMS, INC., a Delaware corporation, signer and sealer of the
foregoing instrument, and acknowledged the same to be his free act and deed as
such officer and the free act and deed of said corporation, before
me.

    

     

    
      	 	
              /s/ Christian M. McNamara 

                
      

              Christian
      M. McNamara

              Commissioner
      of the Superior Court

            

    

     

     

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      
         

        
          	
                  STATE OF
      CONNECTICUT

                   

                  COUNTY OF NEW HAVEN 

                	
                  ) 

                  )

                  )

                	ss.  New
      Haven                                           March
      11, 2010 

      

    

    Personally appeared Dante S. Fazzina,
Vice President, of NewAlliance Bank, a

    Connecticut
bank, signer and sealer of the foregoing instrument and acknowledged the same to
be his free act and deed as such officer and the free act and deed of said Bank,
before me.

    
       

      
        	 	
                /s/ Judy K. Weinstein 

                  
      

                
                  Judy
      K. Weinstein

                  Commissioner
      of the Superior
Court

                

              

      

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
A

     

    March 11,
2010

    Mr.
Jeffery Baird, CFO

    CAS
Medical Systems, Inc.

    44 East
Industrial Road

    Branford,
CT  06405

    

    Dear Mr.
Baird:

    

    Reference
is made to the Commercial Loan Agreement between CAS Medical Systems, Inc.
(“Borrower”) and NewAlliance Bank (“Bank”) dated February 11, 2008, as modified
by a Debt Modification Agreement (the “First Modification”) dated December 31,
2008, a Second Modification Agreement executed April 3, 2009 (the “Second
Modification”) reducing the maximum principal amount of the loan made pursuant
thereto to $5,000,000.00, and a Third Modification Agreement dated of even date
herewith (the “Third Modification” and said Commercial Loan Agreement as so
modified and described, herein called the “Loan Agreement”).  Pursuant
to the Second Modification Agreement and other agreements from Borrower in favor
of Bank, the Borrower was required to maintain a minimum Debt Service Coverage
Ratio, as defined in the Second Modification, tested as of December 31, 2009, on
a rolling four quarter basis, of 1.0x.

    

    Borrower
has requested that the Bank waive the testing of the Debt Service Coverage Ratio
as of December 31, 2009, in conjunction with the execution of the Third
Modification. This letter is issued pursuant to the Third
Modification.

    

    Accordingly,
subject to the terms set forth in this letter and payment of the Waiver Fee as
defined in the Third Modification, the Bank hereby waives the testing, as of
December 31, 2009, (but not as to any future time) of the Debt Service Coverage
Ratio, under the Loan Agreement and under any other agreements from Borrower,
with or in favor of Bank (whether or not related to the Loan Agreement) which
require the testing of the Debt Service Coverage Ratio as of December 31,
2009.  Such waiver shall not be effective as to the testing of the
Debt Service Coverage Ratio at any time after December 31, 2009 in any document
from the Borrower to the Bank, including the Loan Agreement.

     
 

    Nothing
contained in this letter shall be construed as a waiver of any default or Event
of Default under or as defined in the above-referenced Loan Agreement or any
other agreement from Borrower in favor of Bank, which may occur or exist on any
future occasion and the Bank shall have no obligation to waive any such default
or Event of Default or to waive or insist upon strict enforcement of any
covenant in any agreement from Borrower in favor of the Bank. Upon any default
or Event of Default under or as defined in any agreement from Borrower in favor
of Bank, including the Loan Agreement, or upon demand for payment under any
agreement from Borrower in favor of the Bank, the Bank shall be entitled to
exercise all rights and remedies 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    available
at law equity and/or by contract.

    

    Please
sign below where indicated to evidence your agreement to the
foregoing.

    

     

    
      	
              Sincerely,

              NewAlliance
      Bank

              

              By:

              
                
      

              Dante
      S. Fazzina

              Vice
      President

              

              Agreed
      and Accepted:

              

              CAS
      Medical Systems, Inc.

              

              By:

              
                
      

              Jeffery
      Baird

              Its:
      Chief Financial Officer

               

            	
              Date:  March 11,
      2010

              
                
      

            

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Schedule
4 Commercial Tort Claims

       

    

     

    On August
7, 2009, Somanetics Corporation (“Somanetics”) filed an action against CAS
Medical Systems, Inc. (the “Company”) in the United States District Court for
the Eastern District of Michigan alleging patent infringement, false
advertising, and common law unfair competition and libel.  The complaint
requests injunctive relief and unspecified monetary damages, including treble
damages and reasonable attorneys’ fees.  On October 19, 2009, the Company
answered the complaint, denying all allegations against it. In addition, the
Company has asserted counterclaims against Somanetics for violation of the
antitrust laws and for a declaration that the patents sued upon are invalid,
unenforceable, and/or have not been infringed by the Company.

     

     

    The term
“Tort Claims” as used herein shall mean the following:

     

    All
commercial tort claims of Borrower against Somanetics Corporation, now owned or
existing, or hereafter arising or acquired, including without limitation any and
all counterclaims or claims of Borrower against  Somanetics Corporation now
or hereafter asserted in, or in connection with that certain action, Somanetics
Corporation v. CAS Medical Systems, Inc. U.S. District Court Eastern District of
Michigan (Detroit) Case No. 09-cv-13110 Counter Claimant CAS Medical Systems,
Inc. v. Counter Defendant Somanetics Corporation, and together with all damages
arising from any and all of the foregoing, and proceeds of all of the
foregoing.exh10-2_16763.htm

    EXHIBIT
10.2

     

    TRADEMARKS AND LETTERS
PATENT SECURITY AGREEMENT

     

    This Trademarks and Letters Patent
Security Agreement (“Agreement”) made this 11th day
of March, 2010, by and between CAS MEDICAL SYSTEMS, INC., a
Delaware corporation with its chief executive office at 44 East Industrial Road,
Branford, CT  06405 (“Grantor” or “Borrower”) and
NEWALLIANCE BANK, with a
place of business at 195 Church Street, New Haven, CT  06510 (“Grantee” or “Lender” or
“Bank”).

    

    WHEREAS, Lender is entering into or has
entered into a Third Modification Agreement with Borrower dated of even date
herewith (“Third
Modification”) modifying a Revolving Loan to Borrower evidenced by a
Commercial Revolving Promissory Note  from Borrower to Lender dated
February 11, 2008 in the principal amount of ten million dollars, as modified by
a Debt Modification Agreement (the “First Modification”) from
Borrower dated December 31, 2008, and as further modified by a Second
Modification Agreement executed April 3, 2009 by Borrower (the “Second Modification”) reducing
the maximum principal amount of the Revolving Loan to five million dollars (said
Commercial Revolving Promissory Note, as modified by the First Modification,
Second Modification and Third Modification, and as the same may be further
amended and/or restated from time to time, herein called the "Note" and the loan evidenced
by the Note, herein called the “Loan,” and the First
Modification, the Second Modification and the Third Modification shall sometimes
herein collectively be called the “Modification”);

    

    WHEREAS, the Loan was made pursuant to
a Commercial Loan Agreement between Borrower and Lender dated February 11, 2008,
as modified by the First Modification, the Second Modification and the Third
Modification (as the same may be further amended and /or restated from time to
time, herein called the “Loan
Agreement”);

    

    WHEREAS, Lender has a security interest
in substantially all assets of Borrower pursuant to a Security Agreement between
Borrower and Lender dated February 11, 2008, as the same may be amended by the
Modification  (as the same may be further amended and/or restated from
time to time, herein called the “Security
Agreement”);

    

    WHEREAS, Borrower is the record owner
of:  (i) the trademarks and letters patent of the United States listed
on Schedule A annexed
hereto and incorporated herein (the "Trademarks" and the "Letters Patent" respectively,
which terms shall also include any applications therefor set forth on Schedule
A), which Trademarks and Letters Patent are registered in the United States
Patent and Trademark Office, and (ii) the inventions described and claimed in
the Letters Patent; and

    

    WHEREAS, pursuant to the Third
Modification, Borrower is hereby granting Lender a security interest in the
Trademarks and the Letters Patent on the terms set forth herein.

    

    NOW, THEREFORE, in consideration of the
Lender’s execution of the Third Modification, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties agree as
follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.           To
secure the complete and timely satisfaction, payment and performance of all of
the “Obligations,” as hereafter defined, of Borrower to Lender, Borrower does
hereby assign, transfer and convey to Lender, and grant to Lender a security
interest in and mortgage to, all of Borrower's right, title and interest in, to
and under the following property, in each case whether now or hereafter existing
or arising or in which Debtor now has or hereafter owns, acquires or develops an
interest and wherever located (collectively, the "Collateral"):

    

    the
Trademarks and the Letters Patent,  together with and including,
without limitation, the good will of the business to which each of the
Trademarks relates, all proceeds of the Trademarks and the Letters Patent (such
as, by way of example, license royalties and proceeds of infringement suits),
the right to sue for past, present and future infringements, all rights
corresponding thereto throughout the world and all re-issues, divisions,
continuations, renewals, extensions and continuations-in-part
thereof.

    

    The term
“Obligations” as used
herein shall mean all liabilities, obligations, indebtedness, duties, covenants
and guaranties now or hereafter owing from the Borrower to the Lender of
whatever kind or nature, whether or not contemplated at the time of this
Agreement, whether direct or indirect, absolute or contingent or due or to
become due, including all obligations of the Borrower, actual or contingent, in
respect of letters of credit or banker's acceptances issued by the Lender for
the account of or guaranteed by the Borrower and all obligations of any
partnership or joint venture as to which Borrower is or may become personally
liable (the "Obligations", which term shall
also include, without limitation, all accrued interest and costs, including
reasonable attorney's fees, costs and expenses relating to the appraisal and/or
valuation of assets and all costs and expenses incurred or paid by the Lender in
exercising, preserving, defending, enforcing, collecting, administrating or
protecting any of its rights under the Obligations or hereunder or with respect
to the Collateral or in any litigation arising out of the transactions evidenced
by the Obligations). The Lender shall have the unrestricted right from time to
time to apply (or to change any application already made) the proceeds of any of
the Collateral to any Obligations in such manner and such order of priority as
the Lender, in its sole discretion, may determine.

    The
Obligations shall include, without limitation, all agreements evidencing,
securing or relating to the Obligations, including without limitation, the Note,
the Loan Agreement and the Security Agreement.  The Note, the Loan
Agreement,  the Security Agreement and all present and future
agreements which now or hereafter secure, relate to, or evidence the Obligations
or any guaranty thereof shall sometimes collectively be called the “Loan Documents”),

    

    2.           Borrower
covenants and warrants that, except as set forth on Schedule B attached hereto and
incorporated herein:

    

    a.           The
Trademarks and the Letters Patent are subsisting and have not been adjudged
invalid or unenforceable, in whole or in part;

    

    b.           Borrower
is the sole and exclusive owner of the entire and unencumbered right, title and
interest in and to the Collateral, free and clear of any liens, charges and
encumbrances, including, without limitation, pledges, assignments, registered
user agreements, licenses, shop rights and covenants by Borrower not to sue
third persons;

    

    
      
        
        

      

      
        - 2 -

        
          

        

      

      
        
        

      

    

    c.           Borrower
has the unqualified right to enter into this Agreement and perform its
terms;

    

    d.           To
the best of Borrower’s knowledge, no claim has been made that the use of any of
the Trademarks does or may violate the rights of any third person;

    

    e.           Borrower
will continue to use for the duration of this Agreement proper statutory notice
in connection with its use of the Trademarks; and

    

    f.           Borrower
will continue to use for the duration of this Agreement consistent standards of
quality in its manufacture of products sold under the Trademarks.

    

    3.           Borrower
hereby grants to Lender and its employees and agents the right to visit
Borrower's plants and facilities which manufacture, inspect or store products
sold under any of the Trademarks, and to inspect the products and quality
control records relating thereto at reasonable times during regular business
hours and at Lender’s sole expense. Borrower shall do any and all acts
reasonably required by Lender to ensure Borrower's compliance with Paragraphs 2e
and 2f above.

    

    4.           Borrower
agrees that until final nonvoidable payment in full and satisfaction of the
Obligations and termination of any right of Borrower to obtain or obligation of
the Lender to make any loans or advances or other financial accommodations to or
for the benefit of the Borrower, Borrower will not, except as set forth on Schedule B, sell, transfer,
encumber, assign or grant licenses or sublicenses with respect to the
Collateral, without Lender's prior written consent.

    

    5.           If
before the final nonvoidable payment in full and satisfaction of the Obligations
or the termination of any right of Borrower to obtain or obligation of the
Lender to make any loans or advances or other financial accommodations to or for
the benefit of the Borrower,  Borrower shall obtain rights to any new
trademarks or patentable inventions, or become entitled to the benefit of any
patent application or patent for any reissue, division, continuation, renewal,
extension or continuation-in-part of any Patent or any improvement on any
Patent, the provisions of Paragraph 1 hereof shall
automatically apply thereto and Borrower shall give to Lender prompt notice
thereof in writing hereof.

    

    6.           Borrower
authorizes Lender to modify this Agreement by amending Schedule A to include any
future patents and patent applications which are Letters Patent under Paragraphs 1 or 5 hereof or to include any
future trademarks which are Trademarks under Paragraphs 1 or 5 hereof.

    

    7.           If
a default or an Event of Default (as defined in any of the Loan Documents) shall
occur, or demand for payment under any of the Loan Documents shall be made,
Lender shall have, in addition to all other rights and remedies given it by this
Agreement, those allowed by law and the rights and remedies of a secured party
under the Uniform Commercial Code as enacted in any jurisdiction in which the
Collateral may be located and, without limiting the generality of the foregoing,
the Borrower may immediately, without demand of performance and without other
notice (except as set forth next below) or demand whatsoever to Borrower, all of
which are hereby 

     

    
      
        
        

      

      
        - 3 -

        
          

        

      

      
        
        

      

    

    expressly
waived, and without advertisement, sell at public or private sale or otherwise
realize upon, in Connecticut or elsewhere, the whole or from time to time any
part of the Collateral, or any interest which Borrower may have therein, and
after deducting from the proceeds of sale or other disposition of the Collateral
all expenses (including all reasonable expenses for brokers' fees and legal
services), shall apply the residue of such proceeds toward the payment of the
Obligations.  Any remainder of the proceeds after payment in full of
the Obligations shall be paid over to Borrower.  Notice of any sale or
other disposition of the Collateral shall be given to Borrower at least five (5)
days before the time of any intended public or private sale or other disposition
of the Collateral, which Borrower hereby agrees shall be reasonable notice of
such sale or other disposition.  At any such sale or other
disposition, Lender or any holder of any note may, to the extent permissible
under applicable law, purchase the whole or any part of the Collateral sold,
free from any right of redemption on the part of Borrower, which right is hereby
waived and released. Without limiting the foregoing, Borrower hereby grants to
Lender the exclusive, royalty-free, nontransferable right and license to make,
have made, use and sell the goods covered by the Trademarks and the inventions
disclosed and claimed in the Letters Patent and to use the Trademarks on and in
connection with goods of the Borrower, said right and license to be exercised by
Lender, upon or after the occurrence of a default or an Event of Default (as
defined in any of the Loan Documents) under, or demand for payment of any of the
Loan Documents.

    

    8.           Borrower
assumes all responsibility and liability arising from the use of the Trademarks
and the Letters Patent and Borrower hereby indemnifies, defends and holds Lender
harmless from and against any claim, suit, loss, damage or expense (including
reasonable attorneys fees) arising out of (i) any alleged defect in any product
manufactured, promoted or sold by Borrower under any of the Letters Patent or
bearing any of the Trademarks, or (ii) the manufacture, promotion, labeling,
sale or advertisement of any such product by Borrower.

    

    9.           Any
and all out-of-pocket fees, costs and expenses, of whatever kind or nature,
including reasonable attorneys' fees and legal expenses, incurred by Lender in
connection with (i) the preparation of this Agreement and all other documents
relating hereto and to the consummation of this transaction, (ii) the filing or
recording of any documents (including all taxes in connection therewith) in
public offices, (iii) the payment or discharge of any taxes, counsel fees,
maintenance fees or encumbrances, (iv) defending or prosecuting any actions or
proceedings arising out of or related to the Collateral, or (v) otherwise
protecting, maintaining or preserving the Collateral, shall be borne and paid by
Borrower on demand by Lender and until so paid shall be added to the principal
amount of the Obligations and shall bear interest at the rate in effect under
the Note, after an Event of Default, as defined in the Note.

    

    10.  Except as set forth on
Schedule
B attached
hereto and incorporated herein,  the Borrower shall have the
duty to do all acts necessary or desirable to preserve and maintain all rights
in the Trademarks, the Letters Patent and any patent or trademark
applications.  Any expenses incurred in connection with such
applications shall be borne by Borrower.

     
 

    11.           Upon
the failure or inability of Borrower to take actions required under Paragraph 10 above, Lender
shall have the right, but shall in no way be obligated, to bring suit in its own
name to enforce or protect either the Trademarks or the Letters Patent and any
license thereunder, in which event Borrower shall at the request of Lender do
any and all lawful acts and execute any and all proper documents required by
Lender in aid of such enforcement and Borrower shall promptly, upon demand,
reimburse and indemnify Lender for all costs and expenses incurred by Lender in
the exercise of its rights hereunder.

    

    
      
        
        

      

      
        - 4 -

        
          

        

      

      
        
        

      

    

    12.           Borrower
hereby appoints Lender (and authorizes and empowers Lender to make, constitute
and appoint any officer or agent of Lender as Lender may select, in its
exclusive discretion) as Borrower's true and lawful attorney-in-fact, with the
power to endorse Borrower's name on all applications, documents, papers and
instruments necessary for Lender to use the Trademarks and the Letters Patent in
accordance with the terms set forth herein, or if a default or an Event of
Default (as defined in any of the Loan Documents) under, or demand for payment
of any of the Loan Documents, shall have occurred, to grant or issue any
exclusive or nonexclusive license under the Trademarks or the Letters Patent to
anyone else, or necessary for Lender to assign, pledge, convey or otherwise
transfer title in or dispose of the Collateral or any other collateral for any
of the Obligations, to anyone else.  Borrower hereby ratifies all that
such attorney shall lawfully do or cause to be done by virtue
hereof.  This power of attorney is coupled with an interest and shall
be irrevocable for the life of this Agreement.

    

    13.           No
course of dealing between Borrower and Lender, nor any failure to exercise, nor
any delay in exercising, on the part of Lender, any right, power or privilege
hereunder or under the Loan Documents shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder
or thereunder preclude any other or further exercise thereof or the exercise of
any other right, power or privilege.

    

    14.           In
the event of a conflict between the terms hereof and of the Security Agreement
the terms of the Security Agreement shall govern; provided however that all of
Lender's rights and remedies with respect to the Trademarks and the Letters
Patent, whether established hereby or by the Loan Documents, or by any other
agreements or by law, shall be cumulative and may be exercised singularly or
concurrently.

    

    15.           The
provisions of this Agreement are severable, and if any clause or provision
hereof shall be held invalid and unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall affect only such
clause or provision, or part thereof, in such jurisdiction and shall not in any
manner affect such clause or provision in any other jurisdiction or any other
clause or provision of this Agreement in any jurisdiction.

    

    16.           This
Agreement is subject to modification only by a writing signed by the parties,
except as provided in Paragraph
6 hereof.  This Agreement may be executed in multiple
counterparts.

    

    17.           The
Borrower hereby represents, covenants and agrees that the transaction of which
this Agreement forms a part is a “commercial transaction” as defined by the
Statutes of the State of Connecticut.

    

    THE
BORROWER HEREBY WAIVES ALL OF ITS RIGHTS TO NOTICE AND PRIOR COURT HEARING OR
COURT ORDER UNDER CONNECTICUT GENERAL STATUTES SECTION 52-278a ET
SEQ.,  AS AMENDED, OR UNDER ANY OTHER STATE OR FEDERAL LAW IN
CONNECTION WITH ANY AND ALL PREJUDGMENT REMEDIES WHICH THE LENDER MAY EMPLOY TO
ENFORCE ITS RIGHTS AND REMEDIES HEREUNDER OR UNDER ANY OF THE LOAN DOCUMENTS, AS
WELL AS ITS RIGHT TO REQUEST THAT LENDER POST A BOND IN CONNECTION WITH ANY SUCH
PREJUDGMENT REMEDY. MORE SPECIFICALLY, THE BORROWER ACKNOWLEDGES THAT LENDER'S
ATTORNEY MAY, PURSUANT TO CONNECTICUT GENERAL STATUTES, SECTION 52-278f, AS
AMENDED, ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT SECURING A COURT
ORDER.

    

    
      
        
        

      

      
        - 5 -

        
          

        

      

      
        
        

      

    

    THE
BORROWER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF
ANY KIND OR NATURE IN ANY COURT IN WHICH AN ACTION MAY BE COMMENCED ARISING OUT
OF THIS AGREEMENT OR ANY AGREEMENT THEREOF OR OUT OF THE LOAN DOCUMENTS OR BY
REASON OF ANY OTHER CAUSE OR DISPUTE BETWEEN THE BORROWER AND THE
LENDER.

    

    THE
BORROWER HEREBY FURTHER AGREES THAT THE FOLLOWING COURTS:

    

    STATE
COURT - ANY STATE OR LOCAL COURT OF THE STATE OF CONNECTICUT.

    

    FEDERAL
COURT - UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
CONNECTICUT.

    

    OR
AT THE OPTION OF THE LENDER, ANY COURT IN WHICH THE LENDER SHALL INITIATE LEGAL
OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE
MATTER IN CONTROVERSY, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS
OR DISPUTES BETWEEN THE BORROWER AND THE LENDER PERTAINING DIRECTLY OR
INDIRECTLY TO THIS AGREEMENT OR TO ANY MATTER ARISING IN CONNECTION WITH THIS
AGREEMENT.  THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS, HEREBY
WAIVING PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER PROCESS OR
PAPERS ISSUED THEREIN, AND AGREEING THAT SERVICE OF SUCH SUMMONS AND COMPLAINT,
OR OTHER PROCESS OR PAPERS, MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO THE BORROWER AT THE ADDRESS SET FORTH HEREIN. THE EXCLUSIVE CHOICE
OF FORUM SET FORTH HEREIN SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY
JUDGMENT OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS NOTE TO
ENFORCE THE SAME IN ANY APPROPRIATE JURISDICTION.

    

     

     

    
 

    
      
        
        

      

      
        - 6 -

        
          

        

      

      
        
        

      

    

    18.           The
benefits and burdens of this Agreement shall inure to the benefit of and be
binding upon the respective successors and permitted assigns of the
parties.

    

    19.           The
validity and interpretation of this Agreement and the rights and obligations of
the parties shall be governed by the laws of the State of Connecticut. The
recitals are incorporated herein.

    

    20.           This
Agreement is made in order to grant Lender a security interest in the Collateral
including the property set forth on Schedule A annexed hereto, and
upon final nonvoidable payment in full and satisfaction of the Obligations
secured hereby and termination of any right of Borrower to obtain, or obligation
of the Lender to make, any loans or advances or other financial accommodation to
or for the benefit of the Borrower, this Agreement shall be void and of no
further effect.

    

    WITNESS the execution hereof under seal
as of the day and year first above written.

     

     

    
      
        	WITNESS:	 	 	Borrower:	 
	 	 	 	CAS
      MEDICAL SYSTEMS, INC.	 
	 	 	 	 	 
	
                /s/
      Christian M. McNamara

              	 	 	
                /s/
      Jeffery A. Baird

              	 
	
                Christian
      M. McNamara

              	 	 	
                Jeffery
      A. Baird

              	 
	
                 

              	 	 	
                Its:
      Chief Financial Officer

              	 
	 	 	 	Duly
      Authorized	 
	/s/
      Judy K. Weinstein	 	 	 	 
	Judy
      K. Weinstein	 	 	 	 
	 	 	 	 	 

      

    

     

    

     

    
      
        
          	
                	 	 	Lender:	 
	 	 	 	NEWALLIANCE
      BANK	 
	 	 	 	 	 
	
                  /s/
      Christian M. McNamara

                	 	 	
                  /s/
      Dante S. Fazzina

                	 
	
                  Christian
      M. McNamara

                	 	 	
                  Dante
      S. Fazzina

                	 
	
                   

                	 	 	
                  Its
      Vice President

                	 
	 	 	 	Duly
      Authorized	 
	/s/
      Judy K. Weinstein	 	 	 	 
	Judy
      K. Weinstein	 	 	 	 
	 	 	 	 	 

        

      

       

    

     

     

    

    

    
      
        
        

      

      
        - 7 -

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    STATE OF
CONNECTICUT                    )

          )
ss.:  New Haven

    COUNTY OF
NEW
HAVEN                   
)

    

    The foregoing instrument was
acknowledged before me this 11th day of March,
2010, by  Jeffery A.
Baird, the Chief Financial Officer of CAS MEDICAL SYSTEMS, INC., a Delaware
corporation, on behalf of said corporation.

    

    

     /s/ Lisa R.
Barbour                     
 

    Notary Public

    My commission
expires:  September 30, 2010

    

    

    

    STATE OF
CONNECTICUT                   
)

          )
ss.:  New Haven

    COUNTY OF
NEW
HAVEN                   
 )

    

    The foregoing instrument was
acknowledged before me this 11th day of March,
2010, by Dante S. Fazzina, the Vice President of NewAlliance Bank, on behalf of
NewAlliance Bank.

    

    

     /s/ Lisa R.
Barbour                      
   

    Notary Public

    My commission
expires:  September 30, 2010

     

    
 

    
      
        
        

      

      
        - 8 -

        
          

        

      

      
        
        

      

    

    SCHEDULE
A

    TO
TRADEMARKS AND LETTERS PATENT COLLATERAL SECURITY AGREEMENT

    

    List of
Trademarks and Letters Patent

    

    Trademarks

    

    
      	
              Trademark

            	
              U.S.
      Reg. No.

            	
              Date
      of Reg.

            	
              Goods

            
	 	 	 	 
	
              FOR
      EVERY LIFE AND BREATH SITUATION

            	
              3,230,335

            	
              4/17/2007

            	
              Medical
      apparatus, namely apparatus for monitoring patient ventilation and
      oxygenation in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              CAS
      EXPRESS

            	
              3,566,265

            	
              1/27/2009

            	
              Operating
      system software sold as an integral component of apnea detection
      apparatuses in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              MAXNIBP

            	
              2,801,249

            	
              12/30/2009

            	
              Non-invasive
      blood pressure measurement apparatuses in Int’l Class
10

            
	 
      	 
      	 
      	 
      
	
              SAFE-CUFF

            	
              2,628,279

            	
              10/1/2002

            	
              Blood
      pressure cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              CAS

            	
              2,642,539

            	
              10/29/2002

            	
              Medical
      devices, namely electronic respiratory monitoring apparatus for detecting
      sleep apnea in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              TUFF
      CUFF

            	
              1,597,307

            	
              5/22/1990

            	
              Blood
      pressure cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              CAS

            	
              1,560,705

            	
              10/17/1989

            	
              Medical
      equipment, namely, limb boards; automatic blood pressure measuring units;
      blood pressure cuffs; and medical electrodes in Int’l Class
    10

            
	 
      	 
      	 
      	 
      
	
              NEO
      GUARD & design

            	
              1,548,156

            	
              7/18/1989

            	
              Limb
      immobilizing support boards for holding limb straight during intravenous
      feeding in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              KLEAR-TRACE

            	
              1,641,987

            	
              4/23/1991

            	
              Medical
      electrodes in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              Design

            	
              1,642,696

            	
              4/30/1991

            	
              Adhesive
      patches used to secure a temperature probe to a patient in Int’l Class
      10

            

       

      
        
          
          

        

        
          - 9 -

          
            

          

        

        
          
          

        

        
          SCHEDULE
A

          TO
TRADEMARKS AND LETTERS PATENT COLLATERAL SECURITY AGREEMENT

          

          List of
Trademarks and Letters Patent

          

          Trademarks

          

          
            	
                    Trademark

                  	
                    U.S.
      Reg. No.

                  	
                    Date
      of Reg.

                  	
                    Goods

                  

             

          

        

      

      	
              ULTRACHECK

            	
              2,292,982

            	
              11/16/1999

            	
              Blood
      pressure cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              UNI-FUSOR

            	
              1,583,534

            	
              2/20/1990

            	
              Air
      pressure infusion cuff portion of medical apparatus which administers
      blood and other fluids in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              CASMED

            	
              3,226,586

            	
              4/10/2007

            	
              Medical
      apparatus, namely diagnostic lasers for use in measuring clinical
      parameters, automated blood pressure monitoring apparatus, apnea detection
      apparatus, blood pressure cuffs, limb boards, blood oxygenation monitoring
      apparatus, vital signs monitors, non-invasive blood pressure apparatus,
      and pressure infusor cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              FOR
      WHAT'S VITAL

            	
              3,281,295

            	
              8/21/2007

            	
              Medical
      apparatus, namely diagnostic lasers for use in measuring clinical
      parameters, automated blood pressure monitoring apparatus, apnea detection
      apparatus, blood pressure cuffs, limb boards, blood oxygenation monitoring
      apparatus, vital signs monitors, non-invasive blood pressure apparatus,
      and pressure infusor cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              FORE-SIGHT

            	
              3,313,195

            	
              3/3/2006

            	
              Medical
      apparatus, namely, cerebral oximeter for non-invasive patient monitoring
      in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              SOFTCHECK

            	
              3,315,409

            	
              10/23/2007

            	
              Blood
      pressure cuffs in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              LASER-SIGHT

            	
              3,344,769

            	
              11/27/2007

            	
              Medical
      apparatus, namely diagnostic lasers for use in non-invasive measurement
      and monitoring of oxygen saturation in a patient’s blood stream in Int’l
      Class 10

            
	 
      	 
      	 
      	 
      
	
              MOTHERBABY
      & design

            	
              3,505,745

            	
              9/23/2008

            	
              Maternal
      and fetal monitors, namely, fetal heart rate monitors, maternal uterine
      activity monitors, and maternal blood pressure monitors; neonatal infant
      health products for medical use, namely, infant apnea detection monitors,
      blood pressure cuffs, electrodes, limb boards, adhesive patches used to
      secure a temperature probe to a patient, and temperature probes in Int’l
      Class 10

            

       

       

       

      
        
          
          

        

        
          - 10 -

          
            

          

        

        
          
          

        

      

      	 
      	 
      	 
      	 
      
	
              Motherbaby
      & design

            	
              3,544,003

            	
              12/9/2008

            	
              Maternal
      and fetal monitors, namely, fetal heart rate monitors, maternal uterine
      activity monitors, and maternal blood pressure monitors; neonatal infant
      health products for medical use, namely, infant apnea detection monitors,
      blood pressure cuffs, electrodes, arm boards, adhesive patches used to
      secure a temperature probe to a patient, and temperature probes in Int’l
      Class 10

            
	 
      	 
      	 
      	 
      
	
              S
      & design

            	
              1,592,883

            	
              4/24/1990

            	
              Medical
      apparatus, namely, pumps for administration of blood and fluid, and
      accessory parts therefor in Int’l Class 10

            
	 
      	 
      	 
      	 
      
	
              STATCORP

            	
              1,868,858

            	
              12/20/1994

            	
              Medical
      devices; namely, pressure manifolds and pressure gauges for use in the
      rapid infusion of fluids into the body; infusion cuffs; blood filters;
      blood administration sets consisting of blood filters, tubing, and blood
      flow measurement and control equipment; and air bladders, tubing and air
      regulators for rapid infusion of fluids into the body in Int’l Class
      10.

            
	 
      	 
      	 
      	 
      
	
              COOL-LIGHT

            	
              3,735,396

            	
              1/5/2010

            	
              Medical
      apparatus, namely, diagnostic laser systems for use in non-invasive
      measurement and monitoring of oxygen saturation in a patient’s blood in
      Int’l Class 10

            

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          - 11 -

          
            

          

        

        
          
          

        

      

      	 
      	 
      	 
      	 
      
	
              EDENTREND

            	
              1,600,609

            	
              6/12/1990

            	
              Add-on
      data storage units for use with apnea monitors, and computer software for
      processing such data

            
	 
      	 
      	 
      	 
      
	
              TUFF
      CUFF AND DESIGN

            	
              1,598,432

            	
              5/29/1990

            	
              Blood
      pressure cuffs

            
	 
      	 
      	 
      	 
      
	
              PREMIE
      NESTIE

            	
              2,353,247

            	
              5/30/2000

            	
              Medical
      apparatus, namely, a premature infant positioning aide and accessories
      therefore

            
	 
      	 
      	 
      	 
      
	
              Miscellaneous
      Design

            	
              1,550,855

            	
              8/8/1989

            	
              Limb
      immobilizing support boards for holding limbs straight during intravenous
      feeding; automatic blood pressure measuring devices; blood pressure cuffs;
      and medical electrodes

            
	 
      	 
      	 
      	 
      
	
              HOLD-TIGHT

            	
              3,731,738

            	
              12/29/2009

            	
              Hydrogel
      adhesive strips for attaching non-adhesive medical sensors to the body in
      Int’l Class 10

            

    

    

    

    Patents

    
       

      
        	Patents	U.S.
      Reg. No.	Issue
      Date	Expiration
      Date
	 	 	 	 
	
                METHOD
      FOR NON-INVASIVE

              	
                6,456,862
      B2

              	
                9/24/2002

              	
                4/30/2021

              
	
                SPECTROPHOTOMETRIC
      BLOOD

              	 
      	 
      	 
      
	
                OXYGENATION
      MONITORING

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                METHOD
      FOR

              	
                7,072,701

              	
                7/4/2006

              	
                1/25/2024

              
	
                SPECTROPHOTOMETRIC

              	 
      	 
      	 
      
	
                BLOOD
      OXYGENATION MONITORING

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                LASER
      DIODE OPTICAL

              	
                7,047,054

              	
                5/16/2006

              	
                11/4/2019

              
	
                TRANSDUCER
      ASSEMBLY FOR

              	 
      	 
      	 
      
	
                NON-INVASIVE
      SPECTROPHOTOMETRIC

              	 
      	 
      	 
      
	
                BLOOD
      OXYGENATION

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                LASER
      DIODE OPTICAL

              	
                7,313,427

              	
                12/25/2007

              	
                11/4/2019

              
	
                TRANSDUCER
      ASSEMBLY FOR

              	 
      	 
      	 
      
	
                NON-INVASIVE

              	 
      	 
      	 
      
	
                SPECTROPHOTOMETRIC
      BLOOD

              	 
      	 
      	 
      
	
                OXYGENATION

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                AUTOMATIC
      BLOOD PRESSURE

              	
                5,220,502

              	
                6/15/1993

              	
                10/10/2010

              
	
                MEASURING
      DEVICE AND

              	 
      	 
      	 
      
	
                METHOD
      WITH CUFF SIZE

              	 
      	 
      	 
      
	
                DETERMINATION

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                APNEA
      DETECTOR WITH

              	
                6,537,228

              	
                3/25/2003

              	
                6/17/2019

              
	
                ARTIFACT

              	 
      	 
      	 
      
	
                REJECTION

              	 
      	 
      	 
      

      

    

     

    
      
        
        

      

      
        - 12 -

        
          

        

      

      
        
        

      

    

    Pending Trademark
Applications

    

    
      
        	
                App
      No.

              	
                Filing
      Date

              	
                Mark

              
	 
      	 
      	 
      
	
                77/594,820

              	
                10/17/2008

              	
                LIMBOARD

              

      

    

    Pending Patent
Applications

    

    
      
        	
                Serial
      No.

              	
                Filing
      Date

              	
                Title

              
	 
      	 
      	 
      
	
                11/376,894

              	
                3/16/2006

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING

              
	 
      	 
      	 
      
	
                11/914,074

              	
                11/09/2007

              	
                IMPROVED
      METHOD FOR

              
	 
      	 
      	
                SPECTROPHOTOMETRIC
      BLOOD OXYGENATION MONITORING

              
	 
      	 
      	 
      
	
                12/092,778

              	
                5/06/2008

              	
                CALIBRATION
      DEVICE FOR A

              
	 
      	 
      	
                SPECTROPHOTOMETRIC
      SYSTEM

              
	 
      	 
      	 
      
	
                12/096,132

              	
                6/04/2008

              	
                INDICATORS
      FOR A

              
	 
      	 
      	
                SPECTROPHOTOMETRIC
      SYSTEM

              
	 
      	 
      	 
      
	
                12/090,671

              	
                4/18/2008

              	
                METHOD
      AND APPARATUS FOR

              
	 
      	 
      	
                SPECTROPHOTOMETRIC
      BASED OXIMETRY

              
	 
      	 
      	 
      
	
                12/097,438

              	
                6/13/2008

              	
                STABILIZED
      MULTI-WAVELENGTH LASER

              
	 
      	 
      	
                SYSTEM
      FOR NON-INVASIVE SPECTROPHOTOMETRIC MONITORING

              
	 
      	 
      	 
      
	
                12/514,955

              	
                5/14/2009

              	
                APPARATUS
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BASED
      OXIMETRY

              
	 
      	 
      	 
      
	
                12/248,556

              	
                10/09/2008

              	
                NIRS
      SENSOR MOUNTING APPARATUS

              
	 
      	 
      	 
      
	
                12/574,412

              	
                10/06/2009

              	
                METHOD
      AND APPARATUS FOR

              
	 
      	 
      	
                DETERMINING
      CEREBRAL DESATURATION IN PATIENTS UNDERGOING

              
	 
      	 
      	 
      
	
                12/607,648

              	
                10/28/2009

              	
                METHOD
      AND APPARATUS FOR

              
	 
      	 
      	
                SPECTROPHOTOMETRIC
      BASED OXIMETRY OF SPINAL TISSUE

              
	 
      	 
      	 
      
	
                61/224,689

              	
                7/10/2009

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING OF THE LOWER GASTROINTESTINAL
  TRACT

              
	 
      	 
      	 
      

         

        
          
            
            

          

          
            - 13 -

            
              

            

          

          
            
            

          

        

        	
                61/261,563

              	
                11/16/2009

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING OF THE LOWER GASTROINTESTINAL
  TRACT

              
	 
      	 
      	 
      
	
                61/262,419

              	
                11/18/2009

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING OF THE LOWER GASTROINTESTINAL
  TRACT

              
	 
      	 
      	 
      
	
                61/306,200

              	
                2/19/2010

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING OF THE LOWER GASTROINTESTINAL
  TRACT

              
	 
      	 
      	 
      
	
                61/226,161

              	
                7/16/2009

              	
                IMPLEMENTATION
      OF DIGITAL SENSOR

              
	 
      	 
      	
                ID
      FOR NIRS MONITOR

              
	 
      	 
      	 
      
	
                61/264,080

              	
                11/24/2009

              	
                METHOD
      FOR SPECTROPHOTOMETRIC

              
	 
      	 
      	
                BLOOD
      OXYGENATION MONITORING

              

      

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        - 14 -

        
          

        

      

      
        
        

      

    

    Schedule
B exceptions

     

     

     

    SCHEDULE B

    

    The National Institutes of Health (NIH), U.S. Department
of Health and Human Services (DHHS) has government purposes rights with respect
to patents 6,456,862 B2 and 7047054.

    

    Renewal for trademarks 1,598,432, 2,353,247 and
1,550,855 is due in May 2010.  The Borrower will not be renewing these
marks.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]