Document:

Exhibit 10.1

 

ASSIGNMENT OF MEMBERSHIP INTERESTS

 

Michael Silva, Marlon Berrett, and Harry L. “Pete” Peterson (collectively, the “Members”) are the sole owners of all of the outstanding membership interest in and to DPAT-1, LLC (the “Membership Interest”). The Members hereby assign, transfer and convey to Dental Patient Transition, Inc. all of the Membership Interest in DPAT-1, LLC so that immediately after this assignment is effective Dental Patient Transition, Inc. will be the sole member of DPAT-1, LLC, a Utah limited liability company. In addition, to the extent that the Operating Agreement of DPAT-1, LLC contains restrictions on the transferability of the Membership Interest, the parties hereby waive those restrictions with respect to this transaction. 

 

	
             
 	
            EFFECTIVE the 22nd day of January, 2007.
 

 

 

	
            /s/ Michael Silva
 	
             
 	
            /s/ Marlon R. Berrett
 
	
            Michael Silva
 	
             
 	
            Marlon R. Berrett
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            /s/ Harry L. Peterson
 
	
             
 	
            Harry L. “Pete” Peterson
 

 

 

Dental Patient Transition, Inc. hereby accepts the foregoing assignment. Dental Patient Transition, Inc. further agrees that Dental Patient Transition, Inc. shall hereby become a party as a Member to the First Amended and Restated Operative Agreement of DPAT-1, LLC, as amended from time to time. 

 

	
             
 	
            EFFECTIVE the 22nd day of January, 2007.
 

 

 

	
             
 	
            Dental Patient Transition, Inc.
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Marlon R. Berrett
 
	
             
 	
             
 	
            Marlon R. Berrett, President
 

 

 

AGREED AND APPROVED: 

 

DPAT-1, LLC

 

 

	
            By:
 	
            /s/ Marlon R. Berrett
 
	
             
 	
            Marlon R. Berrett, President of Dental
 
	
             
 	
            Cooperative, Inc., the ManagerExhibit 10.1

    
      

    

    Exhibit
      10.1

    SECOND
      AMENDMENT TO 

    COMMERCIAL
      LOAN AGREEMENT

     

    This
      SECOND AMENDMENT TO COMMERCIAL LOAN AGREEMENT, dated as of January 19, 2007
      (this "Second Amendment"), is between VERICHIP
      CORPORATION,
      a
      Delaware corporation (the "Borrower"), and APPLIED
      DIGITAL SOLUTIONS, INC.,
      a
      Missouri corporation (the "Lender").

     

    Recitals:

    

    WHEREAS,
      on December 27, 2005, the Borrower and the Lender entered into a Commercial
      Loan
      Agreement (the "Agreement") pursuant to which Lender made a Loan to Borrower
      subject to the terms and conditions contained in the Agreement; 

     

    WHEREAS,
      on October 6, 2006, the Borrower and the Lender entered into a First Amendment
      to Commercial Loan Agreement pursuant to which Lender increased the principal
      amount of the Loan by Four Million Five Hundred Thousand Dollars ($4,500,000.00)
      (including a change in the applicable interest rate) in order to meet the
      Borrower's working capital needs, IPO costs, and cash needs in connection with
      Perceptis' potential election to take its final (deferred) payment in cash
      and
      to make certain other amendments to the Agreement contained herein;

     

    WHEREAS,
      Borrower has requested and Lender has agreed, subject to the terms and
      conditions set forth herein, to increase the principal amount of the Loan by
      One
      Million Five Hundred Dollars ($1,500,000.00) in order to meet the Borrower's
      working capital needs and IPO costs; 

     

    NOW
      THEREFORE, in consideration of the mutual covenants and agreements set forth
      herein, and other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the parties agree as follows:

     

    Agreement.

     

    
      	
              1.

            	
              Recitals.
                The foregoing recitals are true and correct and are hereby incorporated
                by
                this reference.

            

    

     

    
      	
              2.

            	
              Definitions.
                All
                capitalized terms used herein, except as modified or defined in this
                Second Amendment, shall have the meaning given to such terms in the
                Agreement. All references to the Agreement in all documents executed
                by
                Borrower, Guarantor and/or Bank in connection with the Agreement
                are
                hereby deemed to refer to the Agreement, as hereby amended.
                

            

    

     

    
      	
              3.

            	
              Amendments:
                The following sections of the Agreement are hereby amended as
                follows:

            

    

     

    a. Revolving
      Line of Credit:
      The
      amount of the Revolving Line of Credit on page 1 of the Agreement shall be
      amended by replacing "$13,000,000.00" with "$14,500,000.00". 

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    b. Review
      Date.
      Upon
      the consummation of an initial public offering of the Borrower's common stock
      pursuant to an effective registration statement filed with the Securities and
      Exchange Commission (an "IPO"), all references to a "Review Date" and an "Annual
      Review" at the top of the first page of the Agreement shall be deleted without
      further need to amend the Agreement.

    

    c.
       Termination
      of Revolver.
      Upon
      the consummation of an IPO, without further need to amend the Agreement, Section
      I.C. of the Agreement shall be deleted and replaced with the following: "C.
      Termination
      of Revolver.
      Notwithstanding anything contained in this Section 1 or elsewhere to the
      contrary, from and after the initial public offering of the Borrower's common
      stock and the payment by Borrower of the Seven Million Dollars ($7,000,000.00)
      as required under the Second Amended and Restated Revolving Line of Credit
      Note,
      Borrower shall not be entitled to reborrow any amounts hereunder and the Loans
      shall thereafter be considered a term loan payable in accordance with the terms
      of such note."

    

    d.
       Events
      of Default; Acceleration.
      The
      second sentence of Section XI of the Agreement shall be deleted and replaced
      with the following: "Notwithstanding anything herein or in the other Loan
      Documents to the contrary, an Event of Default shall not be deemed to be
      occurring hereunder or under any Loan Documents during any period from
      (X) the date the Borrower files a registration statement with respect to an
      IPO until (Y) the earlier of (i) ten days after the date such initial
      public offering is consummated, and (ii) the date the Borrower withdraws
      such registration statement (such period, the “IPO Preparation Period”);
      provided that the Company is diligently pursuing an initial public offering
      during the IPO Preparation Period." 

    

    
      	
              4.

            	
              Conditions
                Precedent.
                This Second Amendment shall not be effective until Lender has received
                the
                following duly executed documents:

            

    

     

    a. This
      Second Amendment;

     

    b. Second
      Amended and Restated Revolving Line of Credit Note - Working Capital of even
      date herewith in the principal amount of $14,500,000.00; and

     

    c. Second
      Amendment to Security Agreement of even date herewith.

     

    
      	
              5.

            	
              Representations
                and Warranties.
                The terms and conditions, representations and warranties, and covenants
                as
                set forth in the Agreement and all other loan documents executed
                by
                Borrower in favor of Lender in connection with the Loan are hereby
                ratified and affirmed by Borrower, and Borrower hereby agrees that
                the
                said terms and conditions, and covenants are valid, true and correct
                as if
                made on the date hereof. 

            

    

     

    
      	
              6.

            	
              No
                Implied Modifications; Inconsistencies.
                Except as expressly modified hereby, all terms and provisions of
                the
                Agreement shall remain unchanged and in full force and effect. In
                the event of an inconsistency between the terms of this Second Amendment
                and the terms of the Agreement, the terms hereof shall control.
                

            

    

     

    
      	
              7.

            	
              Acknowledgement.
                Lender
                acknowledges and agrees that the appointment of Scott Silverman as
                Borrower's Chief Executive Officer and the issuance of 500,000 restricted
                shares of Borrower's common stock to Mr. Silverman did not violate
                the
                negative covenant contained in Section IX.C of the Loan Agreement.
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              8.

            	
              Counterparts.
                This Second Amendment may be executed in any number of counterparts,
                and
                all such counterparts shall together constitute but one instrument.
                

            

    

     

    
      	
              9.

            	
              Governing
                Law.
                This Second Amendment shall be governed by and construed in accordance
                with the laws of the State of New
                Hampshire.

            

    

     

    IN
      WITNESS WHEREOF, the parties hereto have by their duly authorized
      representatives executed this Second Amendment on the date first above
      written.

     

    BORROWER:

    

    VERICHIP
      CORPORATION, a Delaware

    corporation

    

    

    By:    /s/
      William J. Caragol          
        

    Print
      Name:  William J. Caragol      
     

    Title:   CFO            
              
          

     

    LENDER:

    

    APPLIED
      DIGITAL SOLUTIONS, INC., a 

    Missouri
      corporation

    

    

    By:    /s/
      Evan McKeown      
           

    Print
      Name:     Evan
      McKeown         

    Title:     CFO                           
      

     

     

     

     

    3

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