Exhibit 10.3


 


SUBSIDIARY GUARANTEE


 


SUBSIDIARY GUARANTEE,
dated as of November 25, 2014 (this “Guarantee”), made by each of the signatories hereto (together with any
other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of the Purchaser
signatory (together with their permitted assigns, the “Purchaser”) to that certain Securities Purchase Agreement,
dated as of the date hereof, between PositiveID Corporation, a Delaware corporation (the “Company”) and the
Purchaser.


 


WITNESSETH:


 


WHEREAS, pursuant to
that certain Securities Purchase Agreement, dated of even date herewith, by and between the Company and the Purchaser (the “Purchase
Agreement”), the Company has agreed to sell and issue to the Purchaser, and the Purchaser has agreed to purchase from
the Company the Note, subject to the terms and conditions set forth therein; and


 


WHEREAS, each Guarantor
will directly benefit from the extension of credit to the Company represented by the issuance of the Note;


 


NOW, THEREFORE, in
consideration of the premises and to induce the Purchaser to enter into the Purchase Agreement and to carry out the transactions
contemplated thereby, each Guarantor hereby agrees with the Purchaser as follows:


 


1.          Definitions.
Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein shall have the meanings given to them
in the Purchase Agreement. The words “hereof,” “herein,” “hereto” and “hereunder”
and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision
of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified. The meanings given to
terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The following terms shall
have the following meanings:


 


“Guarantee”
means this Subsidiary Guarantee, as the same may be amended, supplemented, or otherwise modified from time to time.


 


“Obligations”
means, in addition to all other costs and expenses of collection incurred by the Purchaser in enforcing any of such Obligations
and/or this Guarantee, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint, or several)
due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor
to the Purchaser, including, without limitation, all obligations under this Guarantee, the Note, and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with
others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any
portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from the Purchaser as a preference, fraudulent transfer or otherwise as such obligations may be amended,
supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing, the term “Obligations”
shall include, without limitation: (i) principal of, and interest on the Note and the loans extended pursuant thereto; (ii) any
and all other fees, indemnities, costs, obligations and liabilities of the Company or any Guarantor from time to time under or
in connection with this Guarantee, the Note and any other instruments, agreements or other documents executed and/or delivered
in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of
the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company or any Guarantor.


 




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2.          Guarantee.


 


(a)          Guarantee.


 


(i)          The
Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to the Purchaser and its respective successors,
indorsees, transferees, and assigns, the prompt and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations.


 


(ii)         Anything
herein or in any other Transaction Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Transaction Documents shall in no event exceed the amount that can be guaranteed by such Guarantor under applicable
federal and state laws, including laws relating to the insolvency of debtors, fraudulent conveyance or transfer or laws affecting
the rights of creditors generally (after giving effect to the right of contribution established in Section 2(b)).


 


(iii)        Each
Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Purchaser hereunder.


 


(iv)        The
guarantee contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been satisfied by indefeasible payment in full.


 


(v)         No
payment made by the Company, any of the Guarantors, any other guarantor or any other Person or received or collected by the Purchaser
from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off
or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed
to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder, which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected from
such Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor
hereunder until the Obligations are indefeasibly paid in full.


 


(vi)        Notwithstanding
anything to the contrary in this Guarantee, with respect to any defaulted non-monetary Obligations the specific performance of
which by the Guarantors is not reasonably possible (e.g. the issuance of the Company’s Common Stock), the Guarantors shall
only be liable for making the Purchaser whole on a monetary basis for the Company’s failure to perform such Obligations in
accordance with the Transaction Documents.


 




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(b)          Right
of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that, to the extent that a Guarantor shall have paid
more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution
from and against any other Guarantor hereunder that has not paid its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2(c). The provisions of this Section 2(b) shall in
no respect limit the obligations and liabilities of any Guarantor to the Purchaser and each Guarantor shall remain liable to the
Purchaser for the full amount guaranteed by such Guarantor hereunder.


 


(c)          No
Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor
by the Purchaser, no Guarantor shall be entitled to be subrogated to any of the rights of the Purchaser against the Company or
any other Guarantor or any collateral security or guarantee or right of offset held by the Purchaser for the payment of the Obligations,
nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing to the Purchaser by the Company on account of the
Obligations are indefeasibly paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at
any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for
the Purchaser, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Purchaser in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Purchaser, if required),
to be applied against the Obligations, whether matured or unmatured, in such order as the Purchaser may determine.


 


(d)          Amendments,
Etc. with respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the
Obligations made by the Purchaser may be rescinded by the Purchaser and any of the Obligations continued, and the Obligations,
or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Purchaser, and the Purchase Agreement and the other Transaction Documents and
any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole
or in part, as the Purchaser may deem advisable from time to time, and any collateral security, guarantee or right of offset at
any time held by the Purchaser for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. The
Purchaser shall have no obligation to protect, secure, perfect, or insure any Lien at any time held by them as security for the
Obligations or for the guarantee contained in this Section 2 or any property subject thereto.


 




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(e)          Guarantee
Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by the Purchaser upon the guarantee contained in this Section 2 or acceptance
of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and
all dealings between the Company and any of the Guarantors, on the one hand, and the Purchaser, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor
waives to the extent permitted by law diligence, presentment, protest, demand for payment, and notice of default or nonpayment
to or upon the Company or any of the Guarantors with respect to the Obligations. Each Guarantor understands and agrees that the
guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment and performance
without regard to (a) the validity or enforceability of the Purchase Agreement or any other Transaction Document, any of the Obligations
or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time
held by the Purchaser, (b) any defense, set-off or counterclaim (other than a defense of payment or performance or fraud by Purchaser)
that may at any time be available to or be asserted by the Company or any other Person against the Purchaser, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Company or such Guarantor) that constitutes, or might be
construed to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Guarantor under the guarantee
contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against any Guarantor, the Purchaser may, but shall be under no obligation to, make a similar demand
on or otherwise pursue such rights and remedies as they may have against the Company, any other Guarantor or any other Person or
against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by
the Purchaser to make any such demand, to pursue such other rights or remedies or to collect any payments from the Company, any
other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right
of offset, or any release of the Company, any other Guarantor or any other Person or any such collateral security, guarantee or
right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of the Purchaser against any Guarantor. For the purposes
hereof, “demand” shall include the commencement and continuance of any legal proceedings.


 


(f)          Reinstatement.
The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Purchaser
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Guarantor, or upon or as a result
of the appointment of a receiver, intervener or conservator of, or trustee or similar officer for, the Company or any Guarantor
or any substantial part of its property, or otherwise, all as though such payments had not been made.


 


(g)          Payments.
Each Guarantor hereby guarantees that payments hereunder will be paid to the Purchaser without set-off or counterclaim in U.S.
dollars at the address set forth or referred to in the Signature Pages to the Purchase Agreement.


 




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3.          Representations
and Warranties. Each Guarantor hereby makes the following representations and warranties to Purchaser as of the date hereof:


 


(a)          Organization
and Qualification. The Guarantor is a corporation, duly incorporated, validly existing and in good standing under the laws
of the applicable jurisdiction set forth on Schedule 1, with the requisite corporate power and authority to own and use its properties
and assets and to carry on its business as currently conducted. The Guarantor has no subsidiaries other than those identified as
such on the Disclosure Schedules to the Purchase Agreement. The Guarantor is duly qualified to do business and is in good standing
as a foreign corporation in each jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually
or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guaranty in any material respect,
(y) have a material adverse effect on the results of operations, assets, prospects, or financial condition of the Guarantor or
(z) adversely impair in any material respect the Guarantor’s ability to perform fully on a timely basis its obligations under
this Guaranty (a “Material Adverse Effect”).


 


(b)          Authorization;
Enforcement. The Guarantor has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Guaranty, and otherwise to carry out its obligations hereunder. The execution and delivery of this Guaranty
by the Guarantor and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of the Guarantor. This Guaranty has been duly executed and delivered by the Guarantor and constitutes
the valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.


 


(c)          No
Conflicts. The execution, delivery and performance of this Guaranty by the Guarantor and the consummation by the Guarantor
of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of its Certificate of Incorporation
or By-laws or (ii) conflict with, constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Guarantor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Guarantor is subject (including Federal and State securities
laws and regulations), or by which any material property or asset of the Guarantor is bound or affected, except in the case of
each of clauses (ii) and (iii), such conflicts, defaults, terminations, amendments, accelerations, cancellations, and violations
as could not, individually or in the aggregate, have or result in a Material Adverse Effect. The business of the Guarantor is not
being conducted in violation of any law, ordinance, or regulation of any governmental authority, except for violations that, individually
or in the aggregate, do not have a Material Adverse Effect.


 


(d)          Consents
and Approvals. The Guarantor is not required to obtain any consent, waiver, authorization, or order of, or make any filing
or registration with, any court or other federal, state, local, foreign, or other governmental authority or other person in connection
with the execution, delivery, and performance by the Guarantor of this Guaranty.


 


(e)          Purchase
Agreement. The representations and warranties of the Company set forth in the Purchase Agreement as they relate to such Guarantor,
each of which is hereby incorporated herein by reference, are true and correct as of each time such representations are deemed
to be made pursuant to such Purchase Agreement, and the Purchaser shall be entitled to rely on each of them as if they were fully
set forth herein, provided that each reference in each such representation and warranty to the Company’s knowledge shall,
for the purposes of this Section 3, be deemed to be a reference to such Guarantor’s knowledge.


 




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(f)          Foreign
Law. Each Guarantor has consulted with appropriate foreign legal counsel with respect to any of the above representations
for which non-U.S. law is applicable. Such foreign counsel have advised each applicable Guarantor that such counsel knows of no
reason why any of the above representations would not be true and accurate. Such foreign counsel were provided with copies of
this Subsidiary Guarantee and the Transaction Documents prior to rendering their advice.


 


4.          Covenants.


 


(a)          Each
Guarantor covenants and agrees with the Purchaser that, from and after the date of this Guarantee until the Obligations shall
have been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each commercially
reasonable action that is necessary to be taken or not taken, as the case may be, so that no Event of Default (as defined in the
Note) is caused by the failure to take such action or to refrain from taking such action by such Guarantor.


 


(b)          So
long as any of the Obligations are outstanding, unless Purchaser holding at least two-thirds (2/3) of the aggregate principal
amount of the then-outstanding Note shall otherwise consent in writing, each Guarantor will not directly or indirectly on or after
the date of this Guarantee:


 


i.            enter
into, create, incur, assume or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to,
a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any
income or profits therefrom;


 


ii.         enter
into, create, incur, assume or suffer to exist any liens of any kind, on or with respect to any of its property or assets now
owned or hereafter acquired or any interest therein or any income or profits therefrom;


 


iii.         amend
its articles of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Purchaser;


 


iv.         repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its securities
or debt obligations;


 


v.           pay
cash dividends on any equity securities of the Company;


 


vi.         enter
into any transaction with any Affiliate of the Guarantor that would be required to be disclosed in any public filing of the Company
with the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the
disinterested directors of the Company (even if less than a quorum otherwise required for board approval); or


 


vii.         enter
into any agreement with respect to any of the foregoing.


 


5.          Miscellaneous.


 


(a)          Amendments
in Writing. None of the terms or provisions of this Guarantee may be waived, amended, supplemented, or otherwise modified
except in writing by the Purchaser.


 




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(b)          Notices.
All notices, requests, and demands to or upon the Purchaser or any Guarantor hereunder shall be effected in the manner provided
for in the Purchase Agreement, provided that any such notice, request, or demand to or upon any Guarantor shall be addressed to
such Guarantor at its notice address set forth on Schedule 5(b).


 


(c)          No
Waiver by Course of Conduct; Cumulative Remedies. The Purchaser shall not by any act (except by a written instrument pursuant
to Section 5(a)), delay, indulgence, omission, or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any default under the Transaction Documents or Event of Default. No failure to exercise, nor any delay in exercising,
on the part of the Purchaser, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power, or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any
other right, power, or privilege. A waiver by the Purchaser of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that the Purchaser would otherwise have on any future occasion. The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies
provided by law.


 


(d)          Enforcement
Expenses; Indemnification.


 


i.            Each
Guarantor agrees to pay, or reimburse the Purchaser for, all its costs and expenses incurred in collecting against such Guarantor
under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Guarantee and the other
Transaction Documents to which such Guarantor is a party, including, without limitation, the reasonable fees and disbursements
of counsel to the Purchaser. 


 


ii.         Each
Guarantor agrees to pay, and to save the Purchaser harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes that may be payable or determined to be payable in connection
with any of the transactions contemplated by this Guarantee.


 


iii.         Each
Guarantor agrees to pay, and to save the Purchaser harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Guarantee to the extent the Company would be required to do so pursuant to
the Purchase Agreement.


 


iv.         The
agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Purchase Agreement
and the other Transaction Documents.


 


(e)          Successor
and Assigns. This Guarantee shall be binding upon the successors and assigns of each Guarantor and shall inure to the benefit
of the Purchaser and their respective successors and assigns; provided that no Guarantor may assign, transfer, or delegate any
of its rights or obligations under this Guarantee without the prior written consent of the Purchaser.


 




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(f)          Set-Off.
Each Guarantor hereby irrevocably authorizes the Purchaser at any time and from time to time while an Event of Default under any
of the Transaction Documents shall have occurred and be continuing, without notice to such Guarantor or any other Guarantor, any
such notice being expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits, credits, indebtedness
or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time
held or owing by the Purchaser to or for the credit or the account of such Guarantor, or any part thereof in such amounts as the
Purchaser may elect, against and on account of the obligations and liabilities of such Guarantor to the Purchaser hereunder and
claims of every nature and description of the Purchaser against such Guarantor, in any currency, whether arising hereunder, under
the Purchase Agreement, any other Transaction Document or otherwise, as the Purchaser may elect, whether or not the Purchaser have
made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. The Purchaser
shall notify such Guarantor promptly of any such set-off and the application made by the Purchaser of the proceeds thereof, provided
that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Purchaser
under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the
Purchaser may have.


 


(g)          Counterparts.
This Guarantee may be executed by one or more of the parties to this Guarantee on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.


 


(h)          Severability.
Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.


 


(i)          Section
Headings. The Section headings used in this Guarantee are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.


 


(j)          Integration.
This Guarantee and the other Transaction Documents represent the agreement of the Guarantors and the Purchaser with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Purchaser
relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction Documents.


 


(k)          Governing
Laws. All questions concerning the construction, validity, enforcement and interpretation of this Guarantee shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each of the Company and the Guarantors agree that all proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Guarantee (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York, Borough of Manhattan. Each of the Company and the Guarantors hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guarantee and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Guarantee or the transactions contemplated hereby.


 




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(l)          Acknowledgements.
Each Guarantor hereby acknowledges that:


 


i.            it
has been advised by counsel in the negotiation, execution and delivery of this Guarantee and the other Transaction Documents to
which it is a party;


 


ii.         the
Purchaser have no fiduciary relationship with or duty to any Guarantor arising out of or in connection with this Guarantee or any
of the other Transaction Documents, and the relationship between the Guarantors, on the one hand, and the Purchaser, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and


 


iii.         no
joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Guarantors and the Purchaser.


 


(m)          Additional
Guarantors. The Company shall cause each of its subsidiaries formed or acquired on or subsequent to the date hereof to become
a Guarantor for all purposes of this Guarantee by executing and delivering an Assumption Agreement in the form of Annex 1 hereto.


 


(n)          Release
of Guarantors. Each Guarantor will be released from all liability hereunder concurrently with the indefeasible repayment in
full of all amounts owed under the Purchase Agreement, the Note, and the other Transaction Documents.


 


(o)          Seniority.
The Obligations of each of the Guarantors hereunder rank senior in priority to any other Indebtedness (as defined in the Purchase
Agreement) of such Guarantor.


 


(p)          WAIVER
OF JURY TRIAL.  EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE PURCHASER, HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM THEREIN.


 


*********************


 


(Signature
Page Follows)


 




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IN WITNESS WHEREOF,
each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first above written.


 


	POSITIVEID CORPORATION	 
	 	 	 	 
	By:	/s/ William J Caragol	 
	 	Name:	William J Caragol	 
	 	Title:	CEO	 


 




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SCHEDULE 1


 


GUARANTORS


 


The following are the
names, notice addresses, and jurisdiction of organization of each Guarantor.


 


	 	 	JURISDICTION OF	 	 	 	 
	COMPANY	 	INCORPORATION	 	OWNED BY	 	PERCENTAGE
	 	 	 	 	 	 	 
	Steel Vault Security, LLC	 	Florida	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	MicroFluidic Systems	 	California	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	VeriGreen Energy Corporation	 	Florida	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	Steel Vault Corporation	 	Delaware	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	IFTH NY Sub, Inc. (formerly

 Information Technology Services,

 Inc. (D/B/A InfoTech))	 	New York	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	IFTH NJ Sub, Inc. (formerly	 	 	 	 	 	 
	InfoTech USA, Inc.	 	 	 	 	 	 
	(D/B/A InfoTech))	 	New Jersey	 	PositiveID Corporation	 	100%
	 	 	 	 	 	 	 
	PositiveID Medical Devices Ltd.	 	Israel	 	PositiveID Corporation	 	100%


 




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Annex 1 to


 


SUBSIDIARY GUARANTEE


 


ASSUMPTION AGREEMENT,
dated as of _____________ __, 201__, made by ______________________________, a ______________ corporation (the “Additional
Guarantor”), in favor of the Purchaser pursuant to the Purchase Agreement referred to below. All capitalized terms not
defined herein shall have the meaning ascribed to them in such Purchase Agreement.


 


WITNESSETH:


 


WHEREAS, PositiveID
Corporation, a Delaware corporation (the “Company”) and the Purchaser has entered into a Securities Purchase
Agreement, dated as of November __, 2014 (as amended, supplemented, or otherwise modified from time to time, the “Purchase
Agreement”);


 


WHEREAS, in connection
with the Purchase Agreement, the Subsidiaries of the Company (other than the Additional Guarantor) have entered into the Subsidiary
Guarantee, dated as of November __, 2014 (as amended, supplemented, or otherwise modified from time to time, the “Guarantee”)
in favor of the Purchaser;


 


WHEREAS, the Purchase
Agreement requires the Additional Guarantor to become a party to the Guarantee; and


 


WHEREAS, the Additional
Guarantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee;


 


NOW, THEREFORE, IT IS AGREED:


 


1.          Guarantee.
By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 5(m) of the Guarantee,
hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force and effect as if originally named therein
as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities
of a Guarantor thereunder. The information set forth in Annex 1 hereto is hereby added to the information set forth in Schedule
1 to the Guarantee. The Additional Guarantor hereby represents and warrants that each of the representations and warranties contained
in Section 3 of the Guarantee is true and correct on and as the date hereof as to such Additional Guarantor (after giving effect
to this Assumption Agreement) as if made on and as of such date.


 


2.          Governing
Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.


 




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IN WITNESS WHEREOF,
the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.


 


	[ADDITIONAL GUARANTOR]	 
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 


 




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