<SEC-DOCUMENT>0000944075-14-000036.txt : 20140521
<SEC-HEADER>0000944075-14-000036.hdr.sgml : 20140521
<ACCEPTANCE-DATETIME>20140520195308
ACCESSION NUMBER:		0000944075-14-000036
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140515
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140521
DATE AS OF CHANGE:		20140520

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:		14859337

	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-8k0521.htm
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<P STYLE="font: bold 18pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Washington,
DC 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 25%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>CURRENT
REPORT</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Pursuant
to Section 13 or 15(d) of</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>The
Securities Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Date
of Report (Date of earliest event reported)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">May
15, 2014</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 25%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>SOCKET
MOBILE, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
    <td style="vertical-align: top; width: 29%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Delaware</B></FONT></td>
    <td style="vertical-align: bottom; width: 3%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; width: 31%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>001-13810</B></FONT></td>
    <td style="vertical-align: bottom; width: 2%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; width: 35%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>94-3155066</B></FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(State
    or other jurisdiction of</FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif"> <FONT STYLE="letter-spacing: -0.1pt">incorporation)</FONT></FONT></td>
    <td style="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Commission
    File Number)</FONT></td>
    <td style="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(IRS
    Employer</FONT><FONT STYLE="font-size: 12pt"><br>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Identification No.)</FONT></FONT></td></tr>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>39700
Eureka Drive</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Newark,
CA 94560</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Address
of principal executive offices, including zip code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(510)
933-3000</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Registrant&rsquo;s
telephone number, including area code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0"><FONT STYLE="font: 12pt 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 14.25pt; letter-spacing: -0.1pt; text-indent: -14.25pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: 0pt">[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45.6pt; letter-spacing: -0.1pt; text-align: left; text-indent: -45.6pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Item
1.01 Entry Into a Material Definitive Agreement</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
May 15, 2014, the Company&rsquo;s Board of Directors approved the issue of Subordinated Notes totaling $650,000 to replace Subordinated
Notes in the same amount maturing on June 1, 2014. The new Subordinated Notes are 2-year notes that mature on June 1, 2016. The
new Subordinated Notes are repayable by the Company at any time and have an interest rate of 18 percent per annum payable monthly
in cash. Investors may request note repayment on or after October 1, 2014. $450,000 and $50,000 of the Subordinated Notes are
held by the Company&rsquo;s Chairman and Chief Executive Officer, respectively. $150,000 of the Subordinated Notes are held by
outside investors. The Subordinated Notes are secured by all of the assets of the Company and are subordinated to amounts outstanding
under the Company&rsquo;s working capital bank line of credit and other outstanding subordinated convertible notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company extended the expiration date of 35,775 warrants issued to the outside investors on May 26, 2009 to June 1, 2016. These
warrants were scheduled to expire on May 26, 2014. The warrants are exercisable into common stock at $1.80 per share. The initial
issue of the warrants was reported in a Form 8-K filed on May 20, 2009.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board approved stock option grants of 45,000 and 5,000 shares respectively for the Company&rsquo;s Chairman and Chief Executive
Officer. The stock options will vest monthly over a 24 month period.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
foregoing description of the new Subordinated Notes does not purport to be complete and is qualified in its entirety by reference
to the full text of the Form of Subordinated Note, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein
by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Item
9.01 Financial Statements and Exhibits</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(d) Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
    <td style="vertical-align: top; width: 16%; border-bottom: Black 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Exhibit
    No. </B></FONT></td>
    <td style="vertical-align: bottom; width: 1%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; width: 83%; border-bottom: Black 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; letter-spacing: -0.1pt; font-weight: bold;"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Description</B></FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">10.1</FONT></td>
    <td style="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Form
    of Subordinated Note dated June 2, 2014</FONT></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SIGNATURES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify; text-indent: 37.05pt"><FONT STYLE="font: 12pt 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SOCKET
    MOBILE, INC.</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="width: 3%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="width: 50%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">By:</FONT></td>
    <td style="width: 30%; border-bottom: Black 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">/s/
    David W. Dunlap</FONT></td>
    <td style="width: 17%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td style="padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="2" style="padding-right: 0.7pt; padding-left: 0.7pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Name:
                                         David W. Dunlap</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Vice
        President, Finance and Administration </FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">and
        Chief Financial Officer</FONT></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Date:
</FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">May 22, 2014</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">EXHIBIT
INDEX</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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    <TD STYLE="vertical-align: top; width: 16%; border-bottom: Black 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Exhibit
    No. </B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 83%; border-bottom: Black 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; letter-spacing: -0.1pt; font-weight: bold"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Description</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Form
    of Subordinated Note dated June 2, 2014</FONT></TD></TR></TABLE>
</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>ex10-1.htm
<TEXT>
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<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>FORM
OF SUBORDINATED NOTE, JUNE 2, 2014</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">This
<B>THIRD</B> <B>AMENDED</B> <B>LOAN AND SECURITY AGREEMENT </B>(&ldquo;<B>Agreement</B>&rdquo;) amends and replaces the Second
Amended Loan and Security Agreement maturing on June 1, 2014 between [Investor name] <B> </B>(&ldquo;<B>Lender</B>&rdquo;) and
<B>SOCKET MOBILE, INC.</B>, a Delaware corporation (&ldquo;<B>Borrower</B>&rdquo;). The parties agree as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<OL START="1" TYPE="1" STYLE="margin-top: 0in">

<LI STYLE="margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>LOAN </B></FONT></LI>

</OL>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>1.1</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Note
                                         Principle. </B>Note principle shall be [amount in words and numbers], the note balance
                                         of the Second Amended Loan and Security Agreement maturing on June 1, 2014.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>1.2</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Repayment
                                         Procedure.</B> Borrower may repay any portion of the Note Principle at any time. Borrower
                                         shall advise Lender by email the amount to be repaid and Lender shall provide Borrower
                                         with wire transfer instructions. Lender may request repayment in writing of any portion
                                         of the Note Principle on or after October 1, 2014 and shall specify a repayment date
                                         that is at least 30 days after the request date. Lender shall provide Borrower with wire
                                         transfer instructions.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>1.3</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Interest.
                                         </B>Interest shall be earned on the outstanding loan balance at a simple interest rate
                                         of 18% per annum. The interest calculation shall include funds from the inception date
                                         of this amended note and shall include the day funds are repaid. Interest shall be paid
                                         to Lender in cash at the end of each month.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<OL START="2" TYPE="1" STYLE="margin-top: 0in">

<LI STYLE="margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>TERM</B></FONT></LI>

</OL>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2.1</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Maturity
                                         Date. </B>The term of this Note shall be in effect from <B>June 2, 2014</B> to <B>June
                                         1, 2016 </B>unless sooner terminated by repayment. Balances outstanding shall be repaid
                                         in full on or before the maturity date.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2.2</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Termination
                                         for Insolvency</B>. In the event Borrower files for bankruptcy or otherwise declares
                                         itself to be insolvent, balances outstanding under this Agreement shall become immediately
                                         due and payable to Lender.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<OL START="3" TYPE="1" STYLE="margin-top: 0in">

<LI STYLE="margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SUBORDINATED SECURITY INTEREST</B></FONT></LI>

</OL>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>3.1</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Collateral.
                                         </B>Balances outstanding under this Agreement are secured by the assets of the Company
                                         including its intellectual property assets (&ldquo;Collateral&rdquo;) excluding assets
                                         securing specific liens, and senior debt as defined in Section 3.2.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>3.2</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Rank.
                                         </B>All balances outstanding shall be senior to all other Indebtedness of the Company
                                         except assets securing specific liens relating to those assets, and Senior Debt. Senior
                                         Debt consists of collateral assigned to the Company&rsquo;s principle bank which holds
                                         the senior security interest on all of the Company&rsquo;s assets in connection with
                                         balances outstanding under Loan and Security Agreements between the Borrower and the
                                         Bank, and Convertible Subordinated Notes issued by Borrower prior to the date of this
                                         Agreement.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<OL START="4" TYPE="1" STYLE="margin-top: 0in">

<LI STYLE="margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NOTICES</B></FONT></LI>

</OL>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>4.1</B></FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Method
                                         of delivery. </B>All notices and other communications by either party must be in writing
                                         and shall be deemed to have been validly served, given or delivered: (a) upon the earlier
                                         of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class,
                                         registered or certified mail return receipt requested, with proper postage prepaid; (b)
                                         upon transmission, when sent by electronic mail or facsimile transmission, (c) one (1)
                                         Business Day after deposit with a reputable overnight courier with all charges prepaid,
                                         or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed
                                         to the party to be notified and sent to the address, facsimile number, or email address
                                         indicated below. Contact information may be changed by either party at any time by giving
                                         the other party written notice in accordance with the terms of this section.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 43%; border: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If
    to Borrower:</FONT></TD>
    <TD STYLE="width: 57%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Socket
                                         Mobile, Inc.</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">39700
        Eureka Drive</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Newark,
        California 94560</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Attn:
        Kevin Mills, President &amp; CEO</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Fax:
        (510) 933-3104</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Email:
        Kevin@socketmobile.com</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If
    to Lender</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[Contact
                                         information]</FONT></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 48pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 48pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 48pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 48pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 48pt; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<OL START="5" TYPE="1" STYLE="margin-top: 0in">

<LI STYLE="margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>GENERAL PROVISIONS</B></FONT></LI>

</OL>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.1</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Successors
                                         and Assigns</B>. This Agreement binds and is for the benefit of the successors and permitted
                                         assigns of each party. Borrower may not assign this Agreement or any rights or obligations
                                         under it without Lender&rsquo;s prior written consent.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.2</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Indemnification</B>.
                                         Borrower agrees to indemnify, defend and hold Lender harmless against:&nbsp;all obligations,
                                         demands, claims, and liabilities (collectively, &ldquo;<B>Claims</B>&rdquo;) claimed
                                         or asserted by any other party in connection with the transactions contemplated by this
                                         Agreement; and all losses or expenses in any way suffered, incurred, or paid by Lender
                                         as a result of, following from, consequential to, or arising from transactions between
                                         Lender and Borrower (including reasonable attorneys&rsquo; fees and expenses), except
                                         for Claims and/or losses directly caused by Lender&rsquo;s gross negligence or willful
                                         misconduct.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.3</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Time
                                         of Essence</B>. Time is of the essence for the performance of all Obligations in this
                                         Agreement.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.4</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Severability
                                         of Provisions</B>. Each provision of this Agreement is severable from every other provision
                                         in determining the enforceability of any provision.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.5</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Complete
                                         Agreement.</B> This Agreement represents the entire agreement about this subject matter.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.6</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Counterparts</B>.
                                         This Agreement may be executed in any number of counterparts and by different parties
                                         on separate counterparts, each of which, when executed and delivered, is an original,
                                         and all taken together, constitute one Agreement.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.7</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Survival</B>.
                                         All covenants, representations and warranties made in this Agreement continue in full
                                         force until this Agreement has terminated pursuant to its terms and all obligations (other
                                         than inchoate indemnity obligations and any other obligations which, by their terms,
                                         are to survive the termination of this Agreement) have been paid in full and satisfied.
                                         The obligation of Borrower in Section&nbsp;5.1 of this Agreement to indemnify Lender
                                         shall survive until the statute of limitations with respect to such claim or cause of
                                         action shall have run.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 21pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>5.8</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Third
                                         Parties</B>. Nothing in this Agreement, whether express or implied, is intended to confer
                                         any benefits, rights or remedies under or by reason of this Agreement on any persons
                                         other than the express parties to it and their respective permitted successors and assigns;&nbsp;relieve
                                         or discharge the obligation or liability of any person not an express party to this Agreement;
                                         or give any person not an express party to this Agreement any right of subrogation or
                                         action against any party to this Agreement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">IN
WITNESS WHEREOF, the parties hereto have caused this Amended Agreement to be executed as of the dates shown below.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>BORROWER</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SOCKET MOBILE,
INC.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Signature:
_________________________________________</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Name David
W. Dunlap</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Title: Chief
Financial Officer</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Date signed:_________________________________________</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>LENDER</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[Lender&rsquo;s
Name]</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Signature
_________________________________________</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Name: [Signer&rsquo;s
name]</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Date signed:________________________________________</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



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