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<SEC-DOCUMENT>0000944075-09-000011.txt : 20090225
<SEC-HEADER>0000944075-09-000011.hdr.sgml : 20090225
<ACCEPTANCE-DATETIME>20090225153016
ACCESSION NUMBER:		0000944075-09-000011
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090219
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090225
DATE AS OF CHANGE:		20090225

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, INC.
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25904
		FILM NUMBER:		09633737

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0219.htm
<DESCRIPTION>8-K
<TEXT>
<html>
<head>

</head>

<body bgcolor="#FFFFFF">
<div align=left>
  <hr width="100%">
  <div align=center>
    <hr width="100%">
    <p><font face="Times New Roman, Times, serif" size="3"><b><font size="5">UNITED
      STATES<br>
      </font></b><font size="5"><strong>SECURITIES AND EXCHANGE COMMISSION</strong></font></font></p>
  </div>
</div>
<p align=center><font face="Times New Roman, Times, serif" size="3">Washington,
  DC 20549</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3">__________________________</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"> <b><font size="5">FORM
  8-K</font></b><br>
  <br>
  <b>CURRENT REPORT</b><br>
  <br>
  Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934<br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>February
  19</b></font><font face="Times New Roman, Times, serif"><b><font size=3>, 2009</font></b><font size=3><br>
  <font size="2">Date of Report</font><br>
  <font size="2">(Date of earliest event reported)</font></font></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p align=center><font face="Times New Roman, Times, serif" size="5"><strong>SOCKET
  MOBILE, INC.</strong></font><font face="Times New Roman, Times, serif"><br>
  <font size=2>(Exact name of registrant as specified in its charter) </font></font></p>
<p>&nbsp;
<table cols=3 width="100%">
  <tr>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>Delaware<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(State or
        other jurisdiction of incorporation)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b> </font>
      </center>
    </td>
    <td height=28 width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>001-13810<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(Commission
        File Number)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b></font>
      </center>
    </td>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>94-3155066</b><br>
        </font><font face="Times New Roman, Times, serif" size=2>(IRS Employer
        Identification No.)</font><font face="Times New Roman, Times, serif" size=3>
        </font>
      </center>
    </td>
  </tr>
</table>
<font face="Times New Roman, Times, serif"><br>
</font>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>39700 Eureka
  Drive <br>
  Newark, CA 94560</b></font><font face="Times New Roman, Times, serif"><br>
  <font size=2>(Address of principal executive offices, including zip code) </font></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>(510) 933-3000<br>
  </b></font> <font face="Times New Roman, Times, serif"><font size="2">(Registrant's
  telephone number, including area code)</font></font>
<div align="center">
  <p>&nbsp;</p>
  <p align="left"><font face="Times New Roman, Times, serif">Check the appropriate
    box below if the Form 8-K filing is intended to simultaneously satisfy the
    filing obligation of the registrant under any of the following provisions
    (see General Instruction A.2. below):</font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))</font></font></p>
  <p align="left"><font face="Times New Roman, Times, serif"><font size="3">[
    ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))<br>
    <br>
    </font></font></p>
</div>
<p style="PAGE-BREAK-BEFORE: always"> </p>
<div align=left></div>
<div align=left>
  <hr width="100%">
  <div align=center>
    <hr width="100%">
  </div>
</div>
<p><font face="Times New Roman, Times, serif"><br>
  <b><br>
  Item 1.01 Entry into Material Definitive Agreements</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">On December 31, 2008, Socket Mobile,
  Inc. (the "Company") entered into new domestic and international working capital
  credit facility agreements (the "Loan Agreements") with Silicon Valley Bank
  (the "Lender"), replacing the prior credit facility agreements with the Lender.
  This transaction was reported on Form 8-K dated December 31, 2008 and filed
  on January 7, 2009. <br>
  </font></p>
<p><font face="Times New Roman, Times, serif">On February 19, 2008, the Company
  and the Lender amended the Loan Agreements effective as of February 15, 2009
  (the "Amendments") to extend the expiration date to March 24, 2010, and to reallocate
  the line limits to enable the Company to continue to borrow up to $2.5 million,
  of which up to $1.5 million is based on qualified receivables from domestic
  (U.S. based) customers and up to $1.0 million is based on qualified receivables
  from international customers. The Company must maintain minimum liquidity based
  upon a quick ratio calculated at the end of each month. The quick ratio is equal
  to the quotient of (i) cash and cash equivalents plus net eligible accounts
  receivables, divided by (ii) current liabilities minus deferred revenues. The
  minimum quick ratio required at March 31, 2009 is 0.75 and increases to 0.9
  at the end of April and May 2009 and to 1.0 thereafter.</font></p>
<p><font face="Times New Roman, Times, serif">The foregoing description of the
  Amendments does not purport to be complete and is qualified in its entirety
  by reference to the full text of the Amendments, copies of which are attached
  hereto as Exhibits 10.1 and Exhibit 10.2 and are incorporated herein by reference.</font></p>
<p><font face="Times New Roman, Times, serif"><b>Item 9.01 Financial Statements
  and Exhibits</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>(d) Exhibits.</b></font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></div>
      </div>
    </td>
    <td width=29 height=54><font face="Times New Roman, Times, serif"></font></td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.1</font></div>
    </td>
    <td width=29 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">First
      Amendment to Second Amended and Restated Loan and Security Agreement, dated
      February 19, 2009, by and between Socket Mobile, Inc. and Silicon Valley
      Bank.</font></td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.2</font></div>
    </td>
    <td width=29 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">First
      Amendment to Second Amended and Restated Export-Import Bank Loan and Security
      Agreement, dated February 19, 2009, by and between Socket Mobile, Inc. and
      Silicon Valley Bank.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p><font face="Times New Roman, Times, serif"> <br>
  </font></p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif"><br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif"><br>
  1</font></p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif"><b>SIGNATURES</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif">Pursuant to the requirements of
  the Securities Exchange Act of 1934, the registrant has duly caused this report
  to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
<p>&nbsp;</p>
<dir>
  <dir>
    <dir>
      <dir>
        <dir>
          <blockquote>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <p align=left> </p>
            <tr valign="bottom"
align="left"></tr>
          </blockquote>
        </dir>
      </dir>
    </dir>
  </dir>
</dir>
<div align=left>
  <table height=135 cellspacing=0 cellpadding=0 width=96% align=left border=0>
    <tr>
      <td width=300><font face="Times New Roman, Times, serif"></font></td>
      <td width=21><font face="Times New Roman, Times, serif"></font></td>
      <td colspan="2"><font face="Times New Roman, Times, serif"><b>SOCKET MOBILE,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=300><font face="Times New Roman, Times, serif"></font></td>
      <td width=21><font face="Times New Roman, Times, serif"></font></td>
      <td colspan="2"><font face="Times New Roman, Times, serif"></font></td>
    </tr>
    <tr>
      <td width=300>
        <div align=left><font face="Times New Roman, Times, serif"></font></div>
      </td>
      <td width=21><font face="Times New Roman, Times, serif"></font></td>
      <td colspan="2"><font face="Times New Roman, Times, serif"></font></td>
    </tr>
    <tr>
      <td width=300 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: February
          24, 2009</font></div>
      </td>
      <td width=21 height=19><font face="Times New Roman, Times, serif"></font></td>
      <td width=30 height=19><font face="Times New Roman, Times, serif">By: <u>/s/
        </u></font></td>
      <td width=379 height=19><font face="Times New Roman, Times, serif"><u>David
        W. Dunlap</u></font></td>
    </tr>
    <tr>
      <td width=300 height=40>
        <div align=left><font face="Times New Roman, Times, serif"></font></div>
      </td>
      <td width=21 height=40><font face="Times New Roman, Times, serif"></font></td>
      <td width=30 height=40>
        <blockquote>
          <div align="left"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"></font></font></div>
        </blockquote>
      </td>
      <td width=379 height=40><font face="Times New Roman, Times, serif">David
        W. Dunlap<br>
        Vice President, Finance and Administration <br>
        and Chief Financial Officer</font></td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif"><br>
  <br>
  <br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif">2</font></p>
<hr>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="215" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif">Exhibit
          Number</font></div>
      </div>
    </td>
    <td width=29 height=54><font face="Times New Roman, Times, serif"></font></td>
    <td align="left" height="54" width="680" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="center"><font face="Times New Roman, Times, serif">Description</font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.1</font></div>
    </td>
    <td width=29 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">First
      Amendment to Second Amended and Restated Loan and Security Agreement, dated
      February 19, 2009, by and between Socket Mobile, Inc. and Silicon Valley
      Bank.</font></td>
  </tr>
  <tr valign=top>
    <td width=215 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.2</font></div>
    </td>
    <td width=29 height="22"><font face="Times New Roman, Times, serif"></font></td>
    <td width=680 height="22"><font face="Times New Roman, Times, serif">First
      Amendment to Second Amended and Restated Export-Import Bank Loan and Security
      Agreement, dated February 19, 2009, by and between Socket Mobile, Inc. and
      Silicon Valley Bank.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">3</font></p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex101.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif"><b>Exhibit 10.1</b><br>
  </font></p>
<p>&nbsp;</p>
<p align="center"> <font face="Times New Roman, Times, serif"><b>FIRST AMENDMENT
  TO SECOND AMENDED AND RESTATED<br>
  LOAN AND SECURITY AGREEMENT</b></font></p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif">THIS FIRST AMENDMENT TO SECOND AMENDED
  AND RESTATED LOAN AND SECURITY AGREEMENT (this "<b>Agreement</b>") is entered
  into this 19th day of February 2009, by and between SILICON VALLEY BANK ("<b>Bank</b>")
  and SOCKET MOBILE, INC., a Delaware corporation ("<b>Borrower</b>"), whose address
  is 39700 Eureka Drive, Newark, California 94560. <br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif"><b>RECITALS</b></font></p>
<p><font face="Times New Roman, Times, serif"><b>A</b>. Bank and Borrower have
  entered into that certain Second Amended and Restated Loan and Security Agreement
  dated as of December 24, 2008 (as the same has and may continue to be from time
  to time further amended, modified, supplemented or restated, the "<b>Loan Agreement</b>").
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>B</b>. Bank has extended credit
  to Borrower for the purposes permitted in the Loan Agreement. </font></p>
<p><font face="Times New Roman, Times, serif"><b>C</b>. Borrower has requested
  that Bank (i) extend the Maturity Date, and (ii) amend certain other provisions
  of the Loan Agreement. </font></p>
<p><font face="Times New Roman, Times, serif"><b>D</b>. Although Bank is under
  no obligation to do so, Bank is willing to (i) extend the Maturity Date and
  (ii) amend certain provisions of the Loan Agreement, all on the terms and conditions
  set forth in this Agreement, so long as Borrower complies with the terms, covenants
  and conditions set forth in this Agreement in a timely manner. </font></p>
<p align="center"><font face="Times New Roman, Times, serif"><b>AGREEMENT</b></font></p>
<p><font face="Times New Roman, Times, serif"><b>NOW</b>, <b>THEREFORE</b>, in
  consideration of the foregoing recitals and other good and valuable consideration,
  the receipt and adequacy of which is hereby acknowledged, and intending to be
  legally bound, the parties hereto agree as follows: </font></p>
<p><font face="Times New Roman, Times, serif"><b>1</b>. <b>Definitions</b>. Capitalized
  terms used but not defined in this Agreement, including its preamble and recitals,
  shall have the meanings given to them in the Loan Agreement.</font></p>
<p><font face="Times New Roman, Times, serif"><b>2</b>. <b>Amendments to Loan
  Agreement</b>.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.1
  Section 2.1.1 (Financing of Accounts)</b>. Section 2.1.1(b) of the Loan Agreement
  is hereby amended in its entirety and replaced with the following: </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>(b)
  Maximum Advances. The aggregate outstanding amount of all Advances, outstanding
  at any time may not exceed One Million Five Hundred Thousand Dollars ($1,500,000).
  Notwithstanding any other term or provision of this Agreement, the aggregate
  amount of Advances hereunder together with the aggregate amount of loan advances
  under the EXIM Agreement shall not at any event exceed Two Million Five Hundred
  Thousand Dollars ($2,500,000).</font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">1</font></p>
<hr>
<p><font face="Times New Roman, Times, serif"><br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.2
  Section 2.2 (Collections, Finance Charges, Remittances and Fees)</b>. Section
  2.2.4(b) of the Loan Agreement is hereby amended in its entirety and replaced
  with the following:<br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="3">2.2.4
  Collateral Handling Fee</font></b><font size="3">. At all times that the Adjusted
  Quick Ratio is less than 1.25 to 1.00, Borrower will pay to Bank a collateral
  handling fee equal to seven tenths of one percent (0.70%) per month of the Financed
  Receivable Balance for each Financed Receivable outstanding based upon a 360
  day year (the "<b>Collateral Handling Fee</b>"). This fee is charged on a daily
  basis which is equal to the Collateral Handling Fee divided by 30, multiplied
  by the number of days each such Financed Receivable is outstanding, multiplied
  by the outstanding Financed Receivable Balance. The Collateral Handling Fee
  is payable when the Advance made based on such Financed Receivable is payable
  in accordance with Section 2.3 hereof. In computing Collateral Handling Fees
  under this Agreement, all Collections received by Bank shall be deemed applied
  by Bank on account of Obligations three (3) Business Days after receipt of the
  Collections. After an Event of Default, the Collateral Handling Fee will increase
  an additional 0.50% effective immediately upon such Event of Default. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.3
  Section 6.7 (Financial Covenants)</b>. Commencing with the monthly reporting
  period for the month ending as of March 31, 2009, Section 6.6(a) of the Loan
  Agreement is hereby amended in its entirety and replaced with the following:
  </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>(a)
  Adjusted Quick Ratio. Commencing with the month ending as of March 31, 2009,
  an Adjusted Quick Ratio of not less than (i) 0.75 to 1.00 for the month ending
  March 31, 2009, (ii) 0.90 to 1.00 for the months ending April 30, 2009 and May
  31, 2009 and (iii) 1.00 to 1.00 for the month ending June 30, 2009 and for each
  month thereafter. </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.4
  Section 13 (Definitions)</b>.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>(a)
  The following definitions set forth in Section 13.1 of the Loan Agreement are
  hereby amended in their entirety and replaced with the following:</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Availability</b>"
  means, as the date of determination, an amount equal to One Million Five Hundred
  Thousand Dollars ($1,500,000) minus all outstanding Credit Extensions.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Facility
  Amount</b>" is One Million Eight Hundred Seventy-Five Thousand Dollars ($1,875,000).
  </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Maturity
  Date</b>" is March 24, 2010.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Total
  Liabilities</b>" is on any day, obligations that should, under GAAP, be classified
  as liabilities on Borrower's consolidated balance sheet, including all Indebtedness,
  but excluding all other Subordinated Debt. </font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">2</font></p>
<hr>
<p><font size="3" face="Times New Roman, Times, serif"><br>
  </font><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font><font size="3" face="Times New Roman, Times, serif">(b)
  The following terms and their respective definitions are hereby added in alphabetical
  order to Section 13.1 of the Loan Agreement: </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font><font size="3" face="Times New Roman, Times, serif">"<b>Adjusted
  Quick Ratio</b>" is a ratio of Quick Assets to Current Liabilities minus Deferred
  Revenue.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Credit
  Extension</b>" is any Advance or any other extension of credit by Bank for Borrower's
  benefit. </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>Quick
  Assets</b>" is, on any date, Borrower's unrestricted cash and Cash Equivalents
  maintained with Bank, plus net Eligible Accounts paid within ninety (90) days
  of invoice date, determined according to GAAP. </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.5
  Compliance Certificate</b>. Exhibit B of the Loan Agreement is replaced in its
  entirety with Exhibit B attached hereto. From and after the date of this Agreement,
  all references in the Loan Agreement, to the Compliance Certificate shall be
  deemed to refer to Exhibit B attached hereto. </font></p>
<p><font face="Times New Roman, Times, serif"><b>3. Limitation of Amendments</b>.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>3.1</b>
  The amendments set forth in <b>Section</b> <b>2</b>, above, are effective for
  the purposes set forth herein and shall be limited precisely as written and
  shall not be deemed to (a) be a consent to any amendment, waiver or modification
  of any other term or condition of any Loan Document, or (b) otherwise prejudice
  any right or remedy which Bank may now have or may have in the future under
  or in connection with any Loan Document. </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>3.2</b>
  This Agreement shall be construed in connection with and as part of the Loan
  Documents and all terms, conditions, representations, warranties, covenants
  and agreements set forth in the Loan Documents, except as herein amended, are
  hereby ratified and confirmed and shall remain in full force and effect.</font></p>
<p><font face="Times New Roman, Times, serif"><b>4. Representations and Warranties</b>.
  To induce Bank to enter into this Agreement, Borrower hereby represents and
  warrants to Bank as follows:</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.1</b>
  Immediately after giving effect to this Agreement (a) the representations and
  warranties contained in the Loan Documents are true, accurate and complete in
  all material respects as of the date hereof (except to the extent such representations
  and warranties relate to an earlier date, in which case they are true and correct
  as of such date), and (b) no Event of Default has occurred and is continuing;</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.2</b>
  Borrower has the power and authority to execute and deliver this Agreement and
  to perform its obligations under the Loan Agreement, as amended by this Agreement;
  </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.3</b>
  The organizational documents of Borrower delivered to Bank on the Effective
  Date remain true, accurate and complete and have not been amended, supplemented
  or restated and are and continue to be in full force and effect; </font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">3</font></p>
<hr>
<p><font size="3" face="Times New Roman, Times, serif"><br>
  </font><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font><font size="3" face="Times New Roman, Times, serif"><b>4.4</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, have been duly authorized; </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.5</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, do not and will not contravene (a) any law or regulation binding
  on or affecting Borrower, (b) any contractual restriction with a Person binding
  on Borrower, (c) any order, judgment or decree of any court or other governmental
  or public body or authority, or subdivision thereof, binding on Borrower, or
  (d) the organizational documents of Borrower; </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.6</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Loan Agreement, as amended by this
  Agreement, do not require any order, consent, approval, license, authorization
  or validation of, or filing, recording or registration with, or exemption by
  any governmental or public body or authority, or subdivision thereof, binding
  on Borrower, except as already has been obtained or made; and </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.7</b>
  This Agreement has been duly executed and delivered by Borrower and is the binding
  obligation of Borrower, enforceable against Borrower in accordance with its
  terms, except as such enforceability may be limited by bankruptcy, insolvency,
  reorganization, liquidation, moratorium or other similar laws of general application
  and equitable principles relating to or affecting creditors' rights.</font></p>
<p><font face="Times New Roman, Times, serif"><b>5. Counterparts</b>. This Agreement
  may be executed in any number of counterparts and all of such counterparts taken
  together shall be deemed to constitute one and the same instrument.</font></p>
<p><font face="Times New Roman, Times, serif"><b>6. Effectiveness</b>. This Agreement
  shall be deemed effective upon (a) the due execution and delivery to Bank of
  this Agreement by each party hereto, (b) the due execution and delivery to Bank
  of that certain First Amendment to Export-Import Bank Loan and Security Agreement,
  dated as of the date hereof, by each party hereto, (c) Borrower's payment of
  the EXIM Bank amendment and renewal fee in an amount equal to Three Thousand
  Dollars ($3,000), and (d) payment of Bank's legal fees and expenses in connection
  with the negotiation and preparation of this Agreement. </font></p>
<p><font face="Times New Roman, Times, serif"><b>IN WITNESS WHEREOF</b>, the parties
  hereto have caused this Agreement to be duly executed and delivered as of the
  date first written above. </font></p>
<p><font face="Times New Roman, Times, serif"><b>BANK</b> <br>
  <br>
  SILICON VALLEY BANK <br>
  By: /s/ Aman Johal <br>
  Name: Aman Johal <br>
  Title: Relationship Manager <br>
  <br>
  <b>BORROWER</b><br>
  <br>
  SOCKET MOBILE, INC. <br>
  By: /s/ David W. Dunlap<br>
  Name: David W. Dunlap<br>
  Title: CFO </font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">4</font></p>
<hr>
<p align="center"><font face="Times New Roman, Times, serif"><br>
  <b>EXHIBIT B<br>
  <br>
  SPECIALTY FINANCE DIVISION<br>
  Compliance Certificate</b></font></p>
<p align="left"><font face="Times New Roman, Times, serif"><br>
  I, an authorized officer of Socket Mobile, Inc. ("<b>Borrower</b>") certify
  under the Loan and Security Agreement (the "<b>Agreement</b>") between Borrower
  and Silicon Valley Bank ("<b>Bank</b>") as follows (all capitalized terms used
  herein shall have the meaning set forth in the Agreement):</font></p>
<p><font face="Times New Roman, Times, serif"><b>Borrower represents and warrants
  for each Financed Receivable</b>:</font></p>
<p><font face="Times New Roman, Times, serif">Each Financed Receivable is an Eligible
  Account.</font></p>
<p><font face="Times New Roman, Times, serif">Borrower is the owner with legal
  right to sell, transfer, assign and encumber such Financed Receivable;</font></p>
<p><font face="Times New Roman, Times, serif">The correct amount is on the Invoice
  Transmittal and is not disputed;</font></p>
<p><font face="Times New Roman, Times, serif">Payment is not contingent on any
  obligation or contract and Borrower has fulfilled all its obligations as of
  the Invoice Transmittal date;</font></p>
<p><font face="Times New Roman, Times, serif">Each Financed Receivable is based
  on an actual sale and delivery of goods and/or services rendered, is due to
  Borrower, is not past due or in default, has not been previously sold, assigned,
  transferred, or pledged and is free of any liens, security interests and encumbrances
  other than Permitted Liens;</font></p>
<p><font face="Times New Roman, Times, serif">There are no defenses, offsets,
  counterclaims or agreements for which the Account Debtor may claim any deduction
  or discount;</font></p>
<p><font face="Times New Roman, Times, serif">It reasonably believes no Account
  Debtor is insolvent or subject to any Insolvency Proceedings;</font></p>
<p><font face="Times New Roman, Times, serif">It has not filed or had filed against
  it Insolvency Proceedings and does not anticipate any filing;</font></p>
<p><font face="Times New Roman, Times, serif">Bank has the right to endorse and/
  or require Borrower to endorse all payments received on Financed Receivables
  and all proceeds of Collateral.</font></p>
<p><font face="Times New Roman, Times, serif">No representation, warranty or other
  statement of Borrower in any certificate or written statement given to Bank
  contains any untrue statement of a material fact or omits to state a material
  fact necessary to make the statement contained in the certificates or statement
  not misleading.</font></p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<hr>
<p><font face="Times New Roman, Times, serif"><br>
  Additionally, Borrower represents and warrants as follows:</font></p>
<p><font face="Times New Roman, Times, serif">Borrower and each Subsidiary is
  duly existing and in good standing in its state of formation and qualified and
  licensed to do business in, and in good standing in, any state in which the
  conduct of its business or its ownership of property requires that it be qualified
  except where the failure to do so could not reasonably be expected to cause
  a Material Adverse Change. The execution, delivery and performance of the Loan
  Documents have been duly authorized, and do not conflict with Borrower's organizational
  documents, nor constitute an event of default under any material agreement by
  which Borrower is bound. Borrower is not in default under any agreement to which
  or by which it is bound in which the default could reasonably be expected to
  cause a Material Adverse Change.</font></p>
<p><font face="Times New Roman, Times, serif">Borrower has good title to the Collateral,
  free of Liens except Permitted Liens. All inventory is in all material respects
  of good and marketable quality, free from material defects.</font></p>
<p><font face="Times New Roman, Times, serif">Borrower is not an "investment company"
  or a company "controlled" by an "investment company" under the Investment Company
  Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is a "holding
  company" or an "affiliate" of a "holding company" or a "subsidiary company"
  of a "holding company" as each term is defined and used in the Public Utility
  Holding Company Act of 2005. Borrower is not engaged as one of its important
  activities in extending credit for margin stock (under Regulations X, T and
  U of the Federal Reserve Board of Governors). Borrower has complied in all material
  respects with the Federal Fair Labor Standards Act. Borrower has not violated
  any laws, ordinances or rules, the violation of which could reasonably be expected
  to cause a Material Adverse Change. None of Borrower's or any Subsidiary's properties
  or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's
  knowledge, by previous Persons, in disposing, producing, storing, treating,
  or transporting any hazardous substance other than legally. Borrower and each
  Subsidiary has timely filed all required tax returns and paid, or made adequate
  provision to pay, all material taxes, except those being contested in good faith
  with adequate reserves under GAAP. Borrower and each Subsidiary has obtained
  all consents, approvals and authorizations of, made all declarations or filings
  with, and given all notices to, all government authorities that are necessary
  to continue its business as currently conducted except where the failure to
  obtain or make such consents, declarations, notices or filings would not reasonably
  be expected to cause a Material Adverse Change. </font></p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<hr>
<p><font face="Times New Roman, Times, serif"><b><br>
  Please indicate compliance status by circling Yes/No under "Complies" column.</b><br>
  <br>
  </font></p>
<table width="80%" border="1" cellspacing="0" cellpadding="0">
  <tr>
    <td><font face="Times New Roman, Times, serif"><b>Reporting Covenant</b></font></td>
    <td><font face="Times New Roman, Times, serif"><b>Required</b></font></td>
    <td><font face="Times New Roman, Times, serif"><b>Complies</b></font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40"><font face="Times New Roman, Times, serif">Monthly financial
      statements with Compliance Certificate </font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Monthly within
      30 days</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40"><font face="Times New Roman, Times, serif">Annual financial
      statement (CPA Audited) + CC</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">FYE within 120
      days</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40"><font face="Times New Roman, Times, serif">10 Q, 10 K and
      8-K</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Within 5 days after
      filing with SEC</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40"><font face="Times New Roman, Times, serif">Borrowing Base
      Certificate A/R & A/P Agings</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Monthly within
      30 days</font></td>
    <td height="40"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" colspan="3"><font face="Times New Roman, Times, serif">The
      following Intellectual Property was registered after the Closing Date (if
      no registrations, state "None")</font></td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif"><br>
  </font></p>
<table width="80%" border="1" cellspacing="0" cellpadding="0">
  <tr>
    <td width="56%"><font face="Times New Roman, Times, serif"><b>Financial Covenants</b></font></td>
    <td width="17%"><font face="Times New Roman, Times, serif"><b>Required</b></font></td>
    <td width="16%"><font face="Times New Roman, Times, serif"><b>Actual</b></font></td>
    <td width="11%"><font face="Times New Roman, Times, serif"><b>Complies</b></font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">Maintain
      on a Monthly Basis: </font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif" color="#FFFFFF">_
      </font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif" color="#FFFFFF">_
      </font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif" color="#FFFFFF">_
      </font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">Minimum
      Liquidity (as of February 28, 2009)</font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">$250,000</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif">$_________________</font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">Adjusted
      Quick Ratio of not less than the following for the following months ending
      </font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">0.75
      to 1.00</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif" color="#FFFFFF">_
      </font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif" color="#FFFFFF">_
      </font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">March
      31, 2009</font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">0.75
      to 1.00</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif">___:1.00</font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">April
      30, 2009</font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">0.90
      to 1.00</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif">___:1.00</font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">May
      31, 2009</font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">0.90
      to 1.00</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif">___:1.00</font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td height="40" width="56%"><font face="Times New Roman, Times, serif">June
      30, 2009 and for each month thereafter</font></td>
    <td height="40" width="17%"><font face="Times New Roman, Times, serif">1.00
      to 1.00</font></td>
    <td height="40" width="16%"><font face="Times New Roman, Times, serif">___:1.00</font></td>
    <td height="40" width="11%"><font face="Times New Roman, Times, serif">Yes<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>No</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif">All representations and warranties
  in the Agreement are true and correct in all material respects on this date,
  and Borrower represents that there is no existing Event of Default.</font></p>
<p><font face="Times New Roman, Times, serif">Sincerely, </font></p>
<p><font face="Times New Roman, Times, serif">Socket Mobile, Inc. </font></p>
<p><font face="Times New Roman, Times, serif">____________________________________
  <br>
  Signature </font></p>
<p><font face="Times New Roman, Times, serif">____________________________________
  <br>
  Title </font></p>
<p><font face="Times New Roman, Times, serif">____________________________________
  <br>
  Date </font></p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex102.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif"><b>Exhibit 10.2</b><br>
  </font></p>
<p>&nbsp;</p>
<p align="center"> <font face="Times New Roman, Times, serif"><b>FIRST AMENDMENT
  TO SECOND AMENDED AND RESTATED<br>
  EXPORT-IMPORT BANK LOAN AND SECURITY AGREEMENT</b></font></p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif">THIS FIRST AMENDMENT TO SECOND AMENDED
  AND RESTATED EXPORT-IMPORT BANK LOAN AND SECURITY AGREEMENT (this "<b>Agreement</b>")
  is entered into this 19th day of February 2009, by and between SILICON VALLEY
  BANK ("<b>Bank</b>") and SOCKET MOBILE, INC., a Delaware corporation ("<b>Borrower</b>"),
  whose address is 39700 Eureka Drive, Newark, California 94560. </font></p>
<p align="center"><font face="Times New Roman, Times, serif"><b>RECITALS</b></font></p>
<p><font face="Times New Roman, Times, serif"><b>A</b>. Bank and Borrower have
  entered into that certain Second Amended and Restated Export-Import Bank Loan
  and Security Agreement dated as of December 24, 2008 (as the same has and may
  continue to be from time to time further amended, modified, supplemented or
  restated, the "<b>Exim Loan Agreement</b>"). </font></p>
<p><font face="Times New Roman, Times, serif"><b>B</b>. Bank has extended credit
  to Borrower for the purposes permitted in the Exim Loan Agreement. </font></p>
<p><font face="Times New Roman, Times, serif"><b>C</b>. Borrower has requested
  that Bank (i) extend the EXIM Maturity Date, and (ii) amend certain other provisions
  of the Exim Loan Agreement. </font></p>
<p><font face="Times New Roman, Times, serif"><b>D</b>. Although Bank is under
  no obligation to do so, Bank is willing to (i) extend the EXIM Maturity Date
  and (ii) amend certain provisions of the Exim Loan Agreement, all on the terms
  and conditions set forth in this Agreement, so long as Borrower complies with
  the terms, covenants and conditions set forth in this Agreement in a timely
  manner. </font></p>
<p align="center"><font face="Times New Roman, Times, serif"><b>AGREEMENT</b></font></p>
<p><font face="Times New Roman, Times, serif"><b>NOW, THEREFORE</b>, in consideration
  of the foregoing recitals and other good and valuable consideration, the receipt
  and adequacy of which is hereby acknowledged, and intending to be legally bound,
  the parties hereto agree as follows:</font></p>
<p><font face="Times New Roman, Times, serif"><b>1</b>. <b>Definitions</b>. Capitalized
  terms used but not defined in this Agreement, including its preamble and recitals,
  shall have the meanings given to them in the Exim Loan Agreement.</font></p>
<p><font face="Times New Roman, Times, serif"><b>2</b>. <b>Amendments to Exim
  Loan Agreement</b>.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.1
  Section 2.1.1 (Revolving Advances)</b>. Section 2.1.1(b) of the Exim Loan Agreement
  is hereby amended in its entirety and replaced with the following:</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>(b)
  Maximum Advances. The aggregate outstanding amount of all Advances, outstanding
  at any time may not exceed One Million Dollars ($1,000,000). Notwithstanding
  any other term or provision of this EXIM Agreement, the aggregate amount of
  Advances hereunder together with the aggregate amount of loan advances under
  the Domestic Loan Agreement shall not at any event exceed Two Million Five Hundred
  Thousand Dollars ($2,500,000).</font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">1</font></p>
<hr>
<p><font face="Times New Roman, Times, serif"><br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.2
  Section 2.4 (Fees)</b>. Section 2.4(c) of the Exim Loan Agreement is hereby
  amended in its entirety and replaced with the following:</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>(c)
  Collateral Handling Fee. At all times that the Adjusted Quick Ratio is less
  than 1.25 to 1.00, Borrower will pay to Bank a collateral handling fee equal
  to .70% per month of the Financed Receivable Balance for each Financed Receivable
  outstanding based upon a 360 day year (the "<b>Collateral Handling Fee</b>").
  This fee is charged on a daily basis which is equal to the Collateral Handling
  Fee divided by 30, multiplied by the number of days each such Financed Receivable
  is outstanding, multiplied by the outstanding Financed Receivable Balance. The
  Collateral Handling Fee is payable when the Advance made based on such Financed
  Receivable is payable in accordance with Section 2.3 hereof. In computing Collateral
  Handling Fees under this EXIM Agreement, all Collections received by Bank shall
  be deemed applied by Bank on account of Obligations three (3) Business Days
  after receipt of the Collections. After an Event of Default, the Collateral
  Handling Fee will increase an additional 0.50% effective immediately upon such
  Event of Default. <br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><br>
  <font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="3">2.2.4
  Collateral Handling Fee</font></b><font size="3">. At all times that the Adjusted
  Quick Ratio is less than 1.25 to 1.00, Borrower will pay to Bank a collateral
  handling fee equal to seven tenths of one percent (0.70%) per month of the Financed
  Receivable Balance for each Financed Receivable outstanding based upon a 360
  day year (the "<b>Collateral Handling Fee</b>"). This fee is charged on a daily
  basis which is equal to the Collateral Handling Fee divided by 30, multiplied
  by the number of days each such Financed Receivable is outstanding, multiplied
  by the outstanding Financed Receivable Balance. The Collateral Handling Fee
  is payable when the Advance made based on such Financed Receivable is payable
  in accordance with Section 2.3 hereof. In computing Collateral Handling Fees
  under this Agreement, all Collections received by Bank shall be deemed applied
  by Bank on account of Obligations three (3) Business Days after receipt of the
  Collections. After an Event of Default, the Collateral Handling Fee will increase
  an additional 0.50% effective immediately upon such Event of Default. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>2.3
  Section 13 (Definitions)</b>. The following definitions set forth in Section
  13.1 of the Exim Loan Agreement are hereby amended in their entirety and replaced
  with the following: </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>EXIM
  Maturity Date</b>" is March 24, 2010.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>"<b>EXIM
  Facility Amount</b>" is One Million Two Hundred Fifty Thousand Dollars ($1,250,000).
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>3. Limitation of Amendments</b>.</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>3.1</b>
  The amendments set forth in <b>Section 2</b>, above, are effective for the purposes
  set forth herein and shall be limited precisely as written and shall not be
  deemed to (a) be a consent to any amendment, waiver or modification of any other
  term or condition of any Loan Document, or (b) otherwise prejudice any right
  or remedy which Bank may now have or may have in the future under or in connection
  with any Loan Document. </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>3.2</b>
  This Agreement shall be construed in connection with and as part of the Loan
  Documents and all terms, conditions, representations, warranties, covenants
  and agreements set forth in the Loan Documents, except as herein amended, are
  hereby ratified and confirmed and shall remain in full force and effect.</font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">2</font></p>
<hr>
<p><font size="3" face="Times New Roman, Times, serif"><br>
  </font><font face="Times New Roman, Times, serif"><b>4. Representations and
  Warranties</b>. To induce Bank to enter into this Agreement, Borrower hereby
  represents and warrants to Bank as follows:</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.1</b>
  Immediately after giving effect to this Agreement (a) the representations and
  warranties contained in the Loan Documents are true, accurate and complete in
  all material respects as of the date hereof (except to the extent such representations
  and warranties relate to an earlier date, in which case they are true and correct
  as of such date), and (b) no Event of Default has occurred and is continuing;
  </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.2</b>
  Borrower has the power and authority to execute and deliver this Agreement and
  to perform its obligations under the Exim Loan Agreement, as amended by this
  Agreement; </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.3</b>
  The organizational documents of Borrower delivered to Bank on the Effective
  Date remain true, accurate and complete and have not been amended, supplemented
  or restated and are and continue to be in full force and effect; </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.4</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Exim Loan Agreement, as amended by
  this Agreement, have been duly authorized;</font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.5</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Exim Loan Agreement, as amended by
  this Agreement, do not and will not contravene (a) any law or regulation binding
  on or affecting Borrower, (b) any contractual restriction with a Person binding
  on Borrower, (c) any order, judgment or decree of any court or other governmental
  or public body or authority, or subdivision thereof, binding on Borrower, or
  (d) the organizational documents of Borrower; </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.6</b>
  The execution and delivery by Borrower of this Agreement and the performance
  by Borrower of its obligations under the Exim Loan Agreement, as amended by
  this Agreement, do not require any order, consent, approval, license, authorization
  or validation of, or filing, recording or registration with, or exemption by
  any governmental or public body or authority, or subdivision thereof, binding
  on Borrower, except as already has been obtained or made; and </font></p>
<p><font face="Times New Roman, Times, serif"><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b>4.7</b>
  This Agreement has been duly executed and delivered by Borrower and is the binding
  obligation of Borrower, enforceable against Borrower in accordance with its
  terms, except as such enforceability may be limited by bankruptcy, insolvency,
  reorganization, liquidation, moratorium or other similar laws of general application
  and equitable principles relating to or affecting creditors' rights.</font></p>
<p><font face="Times New Roman, Times, serif"><b>5. Counterparts</b>. This Agreement
  may be executed in any number of counterparts and all of such counterparts taken
  together shall be deemed to constitute one and the same instrument.</font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">3</font></p>
<hr>
<p><font size="3" face="Times New Roman, Times, serif"><br>
  </font><font face="Times New Roman, Times, serif"><b>6. Effectiveness</b>. This
  Agreement shall be deemed effective upon (a) the due execution and delivery
  to Bank of this Agreement by each party hereto, (b) the due execution and delivery
  to Bank of that certain First Amendment to Second Amended and Restated Loan
  and Security Agreement, dated as of the date hereof, by each party hereto, (c)
  Borrower's payment of the EXIM Bank amendment and renewal fee in an amount equal
  to Three Thousand Dollars ($3,000), and (d) payment of Bank's legal fees and
  expenses in connection with the negotiation and preparation of this Agreement.
  </font></p>
<p><font face="Times New Roman, Times, serif"><b>IN WITNESS WHEREOF</b>, the parties
  hereto have caused this Agreement to be duly executed and delivered as of the
  date first written above. </font></p>
<p><font face="Times New Roman, Times, serif"><b>BANK</b> <br>
  <br>
  SILICON VALLEY BANK <br>
  By: /s/ Aman Johal <br>
  Name: Aman Johal <br>
  Title: Relationship Manager <br>
  <br>
  <b>BORROWER</b><br>
  <br>
  SOCKET MOBILE, INC. <br>
  By: /s/ David W. Dunlap<br>
  Name: David W. Dunlap<br>
  Title: CFO </font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">4</font></p>
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