On December 10, 2013, Xenonics Holdings, Inc. (the Company) entered into a Secured Notes Agreement dated as of December 10, 2013 and closed the transactions contemplated by the Secured Notes Agreement. Pursuant to the Secured Notes Agreement: The maturity date of previously reported loans to the Company, in the aggregate principal amount of $1,450,000 and secured by substantially all of the Company's assets, was extended from December 15, 2013 to October 15, 2014. The Company agreed to pay all accrued and past due interest on the existing loans described in the preceding paragraph on January 31, 2014 and the Company borrowed additional funds in the aggregate principal amount of $200,000 from two of the lenders who have provided the loans described above, which loans are secured by substantially all of the assets of the Company, bear interest at the rate of 18% per annum, and are repayable in full on January 31, 2014, provided that the maturity date of the loans will be extended to October 15, 2014 if the lenders and the Company agree in writing by January 31, 2014 as to a prepayment schedule based on the Company's cash flow and if the Company closes a debt financing on specified terms of at least $200,000 by January 31, 2014.

On December 10, 2013, the Company entered into an Unsecured Notes Agreement dated as of December 10, 2013 and closed the transactions contemplated by the Unsecured Notes Agreement. Pursuant to the Unsecured Notes Agreement, the maturity date of previously reported unsecured loans to the Company, in the aggregate principal amount of $525,000, was extended from December 15, 2013 to October 15, 2014, and the Company agreed to pay all accrued and past due interest on those loans on January 31, 2014.