Exhibit 10.113


    
      

    


    Exhibit
      10.113

     

    2007
      VeriChip Corporation Executive Management Incentive Plan 

     

    
      	 	 	 
	
              To:

            	
                

            	
              Executive
                Management

            
	
              From:

            	
                

            	
              Compensation
                Committee of the Board of Directors

            
	
              Date:

            	
                

            	
              April
                2, 2007

            


    

     

    Re:
      2007 VeriChip Corporation Executive Management Incentive Plan


     

    This
      Executive Management Incentive Plan (the “Plan”) is designed to recognize and
      reward the contributions of management that result in the achievement of goals
      and objectives that, in the judgment of the Compensation Committee of the Board
      of Directors of VeriChip Corporation (the “Company”), are important to the
      short-term and long-term success of the Company. 

     

    The
      eleven factors that will be considered in determining executive management
      bonuses are (in no order of importance and in no order of likelihood of
      success): 

     

    
      	
               

            	
              1.

            	
              Consolidated
                revenue for 2007 

            


    

    
      	
               

            	
              2.

            	
              Implantable
                division revenue for 2007 

            


    

    
      	
               

            	
              3.

            	
              2007
                year end common stock price per share


            


    

    
      	
               

            	
              4.

            	
              Cash
                balance as of December 31, 2007


            


    

    
      	
               

            	
              5.

            	
              Strategic
                partnerships and distribution agreements


            


    

    
      	
               

            	
              6.

            	
              Strategic
                acquisition 

            


    

    
      	
               

            	
              7.

            	
              EBITDA
                of Canadian operations 

            


    

    
      	
               

            	
              8.

            	
              Infrastructure
                build out targets for VeriMed business


            


    

    
      	
               

            	
              9.

            	
              Analyst
                coverage for common stock 

            


    

    
      	
               

            	
              10.

            	
              SOX
                and financial audit 

            


    

    
      	
               

            	
              11.

            	
              Discretionary
                by Compensation Committee of the Board


            


    

     

    The
      Compensation Committee recognizes that there may be situations where the
      long-term best interest of the Company and its stockholders may be in conflict
      with the short-term achievement of a goal set out in this Plan. In those rare
      situations, it is the clear intention of the Compensation Committee that the
      executive management team take the initiative to come to the Compensation
      Committee for consideration. It is clear that the primary responsibility of
      all
      the executives of the Company is to perform their obligations and duties to
      the
      Company and its stockholders without regard to personal short term gain.


     

    If
      the Compensation Committee determines that, as a result of a change in the
      business, operations, corporate structure or capital structure of the Company,
      or the manner in which the Company conducts its business, or any other events
      or
      circumstances, the performance factors are no longer suitable, the Compensation
      Committee may in its discretion and to the extent it deems appropriate modify,
      change or eliminate such performance factors or the related minimum acceptable
      level of achievement, in whole or in part, as the Compensation Committee deems
      appropriate and equitable. In addition, the Compensation Committee shall have
      the authority to make equitable adjustments to the performance factors, or
      the
      method of calculating attainment of the performance factors, in recognition
      of
      unusual or non-recurring events affecting the Company or any subsidiary or
      the
      financial statements of the Company or any subsidiary in response to or in
      recognition of changes in applicable laws or regulations, or to account for
      items of gain, loss, deduction or expense determined to be extraordinary,
      nonrecurring or unusual in nature or infrequent in occurrence, including, by
      way
      of example only, asset write-downs and litigation or claim judgments or
      settlements, or related to the disposal of a segment of a business or related
      to
      a change in accounting principles. 


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Summary
      of Calculation of Bonus 

     

    Each
      executive earns points for meeting or exceeding the goals as set forth in the
      table below. The points assigned reflect the seniority of the executive as
      well
      as the anticipated involvement of that executive in achieving the goal.


     

    Executive
      Management: Scott Silverman, William Caragol and Michael Feder 

     

    
      	
               

            	
              Silverman

            	
              Caragol

            	
              Feder

            
	
              Consolidated
                revenue of $32.0 million for 2007

            	
              3

            	
              2

            	
              0.5

            
	
              Consolidated
                revenue of $33.6 million for 2007

            	
              1

            	
              1

            	
              1

            
	
              Consolidated
                revenue of $35.2 million for 2007

            	
              1

            	
              1

            	
              1

            
	
              Implantable
                revenue of $250 thousand for 2007

            	
              1

            	
              0.5

            	
              0.5

            
	
              Implantable
                revenue of $500 thousand for 2007

            	
              1

            	
              0.5

            	
              0.5

            
	
              Implantable
                revenue of $750 thousand for 2007

            	
              1

            	
              0.5

            	
              0.5

            
	
              Implantable
                revenue of $1.0 million for 2007

            	
              1

            	
              0.5

            	
              0.5

            
	
              Implantable
                revenue of $2.5 million for 2007

            	 	 	
              1

            
	
              December 31,
                2007 common stock price in excess of IPO price

            	
              2

            	
              0.67

            	 
	
              December 31,
                2007 common stock price 25% in excess of IPO price

            	
              1

            	
              0.33

            	 
	
              Total
                cash at December 31, 2007 of $8.5 million

            	
              1

            	
              1

            	 
	
              Strategic
                partnership and distribution agreements (other than Henry
                Schein)

            	
              1

            	
              0.5

            	
              1

            
	
              Strategic
                acquisition

            	
              1

            	
              0.5

            	 
	
              EBITDA
                of Canadian operations of $4.8 million

            	
              2

            	
              1

            	 
	
              SOX
                404 and audit opinion without material deficiencies

            	
              1

            	
              1

            	 
	
              VeriMed
                hospitals in network of 800 at December 31, 2007 and protocol adopted
                hospitals of 200 at December 31, 2007

            	
              1

            	
              0.5

            	
              2

            
	
              Analyst
                coverage by three equity research analysts

            	
              2

            	
              1

            	 
	
              Discretionary
                by the Compensation Committee

            	
              Up to 10 pts.

            	
              Up to 5 pts.

            	
              Up to 2 pts.

            
	
              TOTAL
                POINT POTENTIAL

            	
              31
                pts.

            	
              17.5
                pts.

            	
              10.5
                pts.

            


    

     

    All
      amounts above are in U.S. dollars. 

     

    Point
      Value - 

    U.S.$50,000
      for each point 

     

    Notes:
      

     

    
      	
               

            	
              1.

            	
              No
                executive can earn more than 100% of points listed for that item.
                

            


    

    
      	
               

            	
              2.

            	
              Revenue
                based points are incremental at each new level. For example, for
                Mr. Silverman’s point accumulation - at $34 million of consolidated
                revenue 4 points are earned (3 points for $32 million, plus 1 point
                for
                reaching $33.6 million) 

            


    

    
      	
               

            	
              3.

            	
              EBITDA
                is determined after giving effect to Canadian management bonuses,
                but
                before the impact of any bonus to the CEO of VeriChip Corporation,
                a
                Canadian corporation. 

            


    

    
      	
               

            	
              4.

            	
              The
                year end stock price shall be calculated based on the average of
                the
                ending price on the last twenty trading days of the year.
                

            


    

     

    Pursuant
      to this Plan, any bonus shall be deemed earned on December 31, 2007, and
      the Company shall make its best effort to pay such bonus within sixty days
      of
      year end.