Document:

exv10w2

Exhibit 10.2

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT is made and entered into this 3rd day of November, 2009 by and between
TITANIUM ASSET MANAGEMENT CORP., a Delaware corporation (the
“Corporation”), and Ron Braverman
(“Agent”).

RECITALS

     WHEREAS, Agent performs a valuable service to the Corporation in his capacity as a director of
the Corporation;

     WHEREAS, the Corporation has adopted provisions in its Certificate of Incorporation (the
“Charter”) and bylaws (the “Bylaws”) providing for the indemnification of the directors, officers,
employees and other agents of the Corporation, including persons serving at the request of the
Corporation in such capacities with other corporations or enterprises, as authorized by the
Delaware General Corporation Law, as amended (the “Code”);

     WHEREAS, the Charter, the Bylaws and the Code, by their non-exclusive nature, permit contracts
between the Corporation and its agents, officers, employees and other agents with respect to
indemnification of such persons; and

     WHEREAS, in order to induce Agent to serve as a director of the Corporation, the Corporation
has determined and agreed to enter into this Agreement with Agent.

     NOW, THEREFORE, in consideration of Agent’s service as a director of the Corporation after the
date hereof, the parties hereto agree as follows:

AGREEMENT

     1. Services to the Corporation. Agent will serve, at the will of the Corporation or under
separate contract, if any such contract exists, as a director of the Corporation or as a director,
officer or other fiduciary of an affiliate of the Corporation (including any employee benefit plan
of the Corporation) faithfully and to the best of his ability so long as he is duly elected and
qualified in accordance with the provisions of the Bylaws or other applicable charter documents of
the Corporation or such affiliate; provided, however, that Agent may at any time
and for any reason resign from such position (subject to any contractual obligation that Agent may
have assumed apart from this Agreement) and that the Corporation or any affiliate shall have no
obligation under this Agreement to continue Agent in any such position.

     2. Indemnity of Agent. The Corporation hereby agrees to hold harmless and indemnify Agent to
the fullest extent authorized or permitted by the provisions of the Charter, the Bylaws and the
Code, as the same may be amended from time to time (but, only to the extent that such amendment
permits the Corporation to provide broader indemnification rights than the Charter, the Bylaws or
the Code permitted prior to adoption of such amendment).

     3. Additional Indemnity. In addition to and not in limitation of the indemnification otherwise
provided for herein, and subject only to the exclusions set forth in Section 4 hereof, the
Corporation hereby further agrees to hold harmless and indemnify Agent:

          (a) against any and all expenses (including attorneys’ fees), witness fees, damages,
judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally
obligated to pay because of any claim or claims made against or by him in connection with any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
arbitrational, administrative or investigative (including an action by or in the right of the
Corporation) to which Agent is, was or at any time becomes a party or a witness, or is threatened
to be made a party or a witness, by reason of the fact that Agent is, was or at any time becomes a
director, officer, employee or other agent of Corporation, or is or was serving or at any time
serves at the request of the Corporation as a director, officer, employee or other agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise; and

 

 

          (b) otherwise to the fullest extent as may be provided to Agent by the Corporation under the
non-exclusivity provisions of the Code, the Charter and the Bylaws.

     4. Limitations on Additional Indemnity. No indemnity pursuant to Section 3 hereof shall be
paid by the Corporation:

          (a) on account of any claim against Agent for an accounting of profits made from the purchase
or sale by Agent of securities of the Corporation pursuant to the provisions of Section 16(b) of
the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal,
state or local statutory law;

          (b) on account of Agent’s conduct that is established by a final judgment as knowingly
fraudulent or deliberately dishonest or that constituted willful misconduct;

          (c) on account of Agent’s conduct that is established by a final judgment as constituting a
breach of Agent’s duty of loyalty to the Corporation or resulting in any personal profit or
advantage to which Agent was not legally entitled;

          (d) for which payment is actually made to Agent under a valid and collectible insurance policy
or under a valid and enforceable indemnity clause, bylaw or agreement, except in respect of any
excess beyond payment under such insurance, clause, bylaw or agreement;

          (e) if indemnification is not lawful (and, in this respect, both the Corporation and Agent
have been advised that the Securities and Exchange Commission believes that indemnification for
liabilities arising under the federal securities laws is against public policy and is, therefore,
unenforceable and that claims for indemnification should be submitted to appropriate courts for
adjudication); or

          (f) in connection with any proceeding (or part thereof) initiated by Agent, or any proceeding
by Agent against the Corporation or its directors, officers, employees or other agents, unless (i)
such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by
the Board of Directors of the Corporation, (iii) such indemnification is provided by the
Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the
Code, or (iv) the proceeding is initiated pursuant to Section 9 hereof.

     5. Continuation of Indemnity. All agreements and obligations of the Corporation contained
herein shall continue during the period Agent is a director, officer, employee or other agent of
the Corporation (or is or was serving at the request of the Corporation as a director, officer,
employee or other agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise) and shall continue thereafter so long as Agent shall be subject to any
possible claim or threatened, pending or completed action, suit or proceeding, whether civil,
criminal, arbitrational, administrative or investigative, by reason of the fact that Agent was
serving in the capacity referred to herein.

     6. Partial Indemnification. Agent shall be entitled under this Agreement to indemnification by
the Corporation for a portion of the expenses (including attorneys’ fees), witness fees, damages,
judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally
obligated to pay in connection with any action, suit or proceeding referred to in Section 3 hereof
even if not entitled hereunder to indemnification for the total amount thereof, and the Corporation
shall indemnify Agent for the portion thereof to which Agent is entitled.

     7. Notification and Defense of Claim. Not later than thirty (30) days after Agent becomes
aware, by written or other overt communication, of any pending or threatened litigation, claim or
assessment, Agent will, if a claim in respect thereof is to be made against the Corporation under
this Agreement, notify the Corporation of such pending or threatened litigation, claim or
assessment; but the omission so to notify the Corporation will not relieve it from any liability
which it may have to Agent otherwise than under this

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Agreement. With respect to any such pending or threatened litigation, claim or assessment as to
which Agent notifies the Corporation of the commencement thereof:

          (a) the Corporation will be entitled to participate therein at its own expense;

          (b) except as otherwise provided below, the Corporation may, at its option and jointly with
any other indemnifying party similarly notified and electing to assume such defense, assume the
defense thereof, with counsel reasonably satisfactory to Agent. After notice from the Corporation
to Agent of its election to assume the defense thereof, the Corporation will not be liable to Agent
under this Agreement for any legal or other expenses subsequently incurred by Agent in connection
with the defense thereof except for reasonable costs of investigation or otherwise as provided
below. Agent shall have the right to employ separate counsel in such action, suit or proceeding but
the fees and expenses of such counsel incurred after notice from the Corporation of its assumption
of the defense thereof shall be at the expense of Agent unless (i) the employment of counsel by
Agent has been authorized by the Corporation, (ii) Agent shall have reasonably concluded, and so
notified the Corporation, that there is an actual conflict of interest between the Corporation and
Agent in the conduct of the defense of such action or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such action, in each of which cases the fees and expenses
of Agent’s separate counsel shall be at the expense of the Corporation. The Corporation shall not
be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the
Corporation or as to which Agent shall have made the conclusion provided for in clause (ii) above;
and

          (c) the Corporation shall not be liable to indemnify Agent under this Agreement for any
amounts paid in settlement of any action or claim effected without its written consent, which shall
not be unreasonably withheld. The Corporation shall be permitted to settle any action or claim
except that it shall not settle any action or claim in any manner which would impose any penalty or
limitation on Agent without Agent’s written consent, which may be given or withheld in Agent’s sole
discretion.

     8. Expenses. The Corporation shall advance, prior to the final disposition of any proceeding,
promptly following request therefor, all expenses incurred by Agent in connection with such
proceeding upon receipt of an undertaking by or on behalf of Agent to repay said amounts if it
shall be determined ultimately that Agent is not entitled to be indemnified under the provisions of
this Agreement, the Charter, the Bylaws, the Code or otherwise.

     9. Enforcement. Any right to indemnification or advances granted by this Agreement to Agent
shall be enforceable by or on behalf of Agent in any court of competent jurisdiction if (i) the
claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of
such claim is made within ninety (90) days of request therefor. Agent, in such enforcement action,
if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting his
claim. It shall be a defense to any action for which a claim for indemnification is made under
Section 3 hereof (other than an action brought to enforce a claim for expenses pursuant to Section
8 hereof, provided that the required undertaking has been tendered to the Corporation) that
Agent is not entitled to indemnification because of the limitations set forth in Section 4 hereof.
Neither the failure of the Corporation (including its Board of Directors or its stockholders) to
have made a determination prior to the commencement of such enforcement action that indemnification
of Agent is proper in the circumstances, nor an actual determination by the Corporation (including
its Board of Directors or its stockholders) that such indemnification is improper shall be a
defense to the action or create a presumption that Agent is not entitled to indemnification under
this Agreement or otherwise.

     10. Subrogation. In the event of payment under this Agreement, the Corporation shall be
subrogated to the extent of such payment to all of the rights of recovery of Agent, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Corporation effectively to bring suit to enforce such rights.

     11. Non-Exclusivity of Rights. The rights conferred on Agent by this Agreement shall not be
exclusive of any other right which Agent may have or hereafter acquire under any statute, provision
of the Corporation’s Certificate of Incorporation or Bylaws, agreement, vote of stockholders or
directors, or otherwise, both as to action in his official capacity and as to action in another
capacity while holding office.

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     12. Survival of Rights.

          (a) The rights conferred on Agent by this Agreement shall continue after Agent has ceased to
be a director, officer, employee or other agent of the Corporation or to serve at the request of
the Corporation as a director, officer, employee or other agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, and shall inure to
the benefit of Agent’s heirs, executors and administrators.

          (b) The Corporation shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the
Corporation, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Corporation would be required to perform if no such succession had taken
place.

     13. Separability. Each of the provisions of this Agreement is a separate and distinct
agreement and independent of the others, so that if any provision hereof shall be held to be
invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provisions hereof. Furthermore, if this Agreement shall be
invalidated in its entirety on any ground, then the Corporation shall nevertheless indemnify Agent
to the fullest extent provided by the Charter, the Bylaws, the Code or any other applicable law.

     14. Governing Law. This Agreement shall be interpreted and enforced in accordance with the
laws of the State of Delaware.

     15. Amendment and Termination. No amendment, modification, termination or cancellation of this
Agreement shall be effective unless in writing signed by both parties hereto.

     16. Identical Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall
constitute but one and the same Agreement. Only one such counterpart need be produced to evidence
the existence of this Agreement.

     17. Headings. The headings of the sections of this Agreement are inserted for convenience only
and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

     18. Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given (i) upon delivery if delivered by hand to the
party to whom such communication was directed or (ii) upon the third business day after the date on
which such communication was mailed if mailed by certified or registered mail with postage prepaid:

	 	(a)	 	If to Agent, at the address indicated on the signature page hereof.
	 
	 	(b)	 	If to the Corporation, to:
	 
	 	 	 	Titanium Asset Management Corp.

777 E. Wisconsin Avenue

Milwaukee, Wisconsin 53202-5310 USA

Attention: Chief Executive Officer

     or to such other address as may have been furnished to Agent by the Corporation.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and
year first above written.

	 	 	 	 	 
	 	TITANIUM ASSET MANAGEMENT CORP.

 	 
	 	By:  	/s/ Nigel Wightman
 	 
	 	 	Name:  	Nigel Wightman 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	AGENT

 	 
	 	 	/s/ Ron Braverman
 	 
	 	 	Name:  	Ron Braverman 	 
	 	 	Address: 	 
	 

5Exhibit 10.1

Exhibit 10.1

LICENSE AGREEMENT

Effective this 21st day of September, 2009 (the “EFFECTIVE DATE”), VeriChip Corporation, a
corporation organized and existing under the laws of Delaware having its principal office at 1690
South Congress Avenue, Suite 200, Delray Beach, FL, 33445, and its AFFILIATES (hereinafter
“LICENSEE”) and RECEPTORS LLC, a corporation organized and existing under the laws of the State of
Minnesota, having its principal office at Suite 510, 1107 Hazeltine Blvd., Chaska, MN 55318,
U.S.A., and its AFFILIATEs, as defined below, (hereinafter, collectively, “RECEPTORS”) agree as
follows:

BACKGROUND

A. RECEPTORS, as a corporation developing, manufacturing and selling products for pharmaceutical
research and development, biopharmaceutical manufacturing, medical devices, diagnostics and sensor
systems holds the intellectual property rights to the CARATM technologies.

B. RECEPTORS is owner of the PATENT RIGHTS (as hereinafter defined).

C. RECEPTORS has the authority to issue licenses under PATENT RIGHTS.

D. LICENSEE wishes to obtain a license under the PATENT RIGHTS that is exclusive and with the right
to sub-license.

1. DEFINITIONS

As used in this Agreement, the following terms shall have the following meanings:

1.1 “AFFILIATE” means: Any corporation, company, partnership, joint venture and/or firm which
controls, is controlled by or is under common control with LICENSEE. As used in this Paragraph
1.1, “control” means (a) in the case of corporate entities, direct or indirect ownership of at
least fifty percent (50%) of the stock or shares having the right to vote for the election of
directors, and (b) in the case of non-corporate entities, direct or indirect ownership of at least
fifty percent (50%) of the equity interest with the power to direct the management policies of such
non-corporate entities. Unless otherwise specified, the term LICENSEE includes AFFILIATES.

1.2 “FIELD” means the field of methods and products for the detection and sub-type identification
of the influenza virus employing RECEPTORS’ proprietary artificial receptor technology or methods,
synthetic competitor agent technology or methods, or sensing system technology or methods.

 

 

 

1.3 “LICENSED METHOD” means: (i) any method that is claimed in the PATENT RIGHTS and/or the use of
which would constitute, but for the grant of a license under the PATENT RIGHTS within the FIELD, an
infringement of VALID CLAIM in the country in which such method is used or in the country in which
the resulting products are sold; and (ii) any method that includes or results from RECEPTORS’
TECHNOLOGY.

1.4 “LICENSED PRODUCT” means: (i) any composition of matter or tangible article (for example, a
reagent, kit, or instrument) that is covered by any pending or issued claim within the PATENT
RIGHTS and/or the use, production or sale of which would constitute, but for the grant of a license
under the PATENT RIGHTS within the FIELD, an infringement of any VALID CLAIM in the country in
which such product is used, produced or sold, (ii) any composition of matter or tangible article
(for example, a reagent, kit, or instrument) that is produced according to or through the use of a
LICENSED METHOD, (iii) any composition of matter or tangible article (for example, a reagent, kit,
or instrument) sold for use predominantly in the performance of a LICENSED METHOD, and (iv) any
composition of matter or tangible article (for example, a reagent, kit, or instrument) that
includes or results from RECEPTORS’ TECHNOLOGY.

1.5 “MARKETS” means Diagnostics — Point of Care and Diagnostics — Clinical Laboratory markets and
applicational areas in the FIELD.

1.6 “NET SALES” means: The amount billed, invoiced, or received (whichever occurs first) for
sales, leases, or other transfers of LICENSED PRODUCTS, less:

(a) customary trade, quantity or cash discounts and non-affiliated brokers’ or agents’
commissions actually allowed and taken;

(b) amounts repaid or credited by reason of rejection or return;

(c) to the extent separately stated on purchase orders, invoices, or other documents of
sale, taxes levied on and/or other governmental charges made as to production, sale,
transportation, delivery or use and paid by or on behalf of LICENSEE or SUBLICENSEE(s); and

(d) reasonable charges for delivery or transportation provided by third parties, if
separately stated; and

(e) LICENSED PRODUCTS used internally for research and development or quality control by
LICENSEE

NET SALES also includes the fair market value of any non-cash consideration received by LICENSEE
for the sale, lease or transfer of LICENSED PRODUCTS. Fair market value will be calculated as of
the time of transfer of such non-cash consideration to LICENSEE. Transfer of a LICENSED PRODUCT
between LICENSEE and AFFILIATES or SUBLICENSEEs for sale by the transferee shall not be considered
a sale for purposes of ascertaining royalty charges. In such circumstances, the gross sales price
and resulting NET SALES price shall be based upon the sale of the LICENSED PRODUCT by the
transferee.

 

 

 

1.7 “PATENT RIGHTS” means: (i) The patents and patent applications listed in Appendix C and
any patent that issues or grants from any patent application listed in Appendix C, and (ii) any
patent or patent application that is a divisional, continuation, national or regional patent or
application, reissue, renewal, reexamination, substitution or extension of the patents and
applications identified in (i), and (iii) any claim of a continuation-in-part application or
patent, directed to the subject matter specifically described in the patents or patent applications
identified in (i).

1.8 “RECEPTORS’ TECHNOLOGY” means: the research and development knowledge, experience, technical
data, methods, applications and the like concerning artificial receptor technology or methods,
synthetic competitor agent technology or methods, sensing system technology or methods which
RECEPTORS had in its possession or acquired on or before the date of this Agreement and which
RECEPTORS creates during the effective term of this Agreement, including methods of making any
LICENSED PRODUCT or part thereof and any compositions, articles, methods or artificial receptor
technology or methods, synthetic competitor technology or methods, sensing system technology or
methods disclosed but not claimed in any patent or patent application owned and controlled by
RECEPTORS. The term RECEPTORS’ TECHNOLOGY does not include any information which has been acquired
or is acquired by RECEPTORS in confidence from a third party.

1.9 “SERVICE” means: Use of a COMPOSITION PRODUCT or performance of a LICENSED METHOD by LICENSEE
on a “for-fee” basis for any third party.

1.10 “TERRITORY” means: Worldwide.

1.11 “VALID CLAIM” means either (i) a claim of an issued and unexpired patent included within the
PATENT RIGHTS that has not been held permanently revoked, unenforceable, or invalid by a decision
of an agency or a court of competent jurisdiction, that is unappealable or unappealed within the
time allowed for appeal, and which has not been admitted to be invalid or unenforceable through
surrender, disclaimer or otherwise; or (ii) a claim of a pending patent application included within
the PATENT RIGHTS that was filed with a good faith belief in its patentability and that has not
been abandoned or finally rejected without the possibility of appeal or refiling.

1.12 The terms “sale(s)”, “sold” and “sell” include, without limitation, leases and other transfers
and similar transactions.

 

 

 

2. GRANT

2.1. RECEPTORS hereby grants to LICENSEE, and LICENSEE hereby accepts,

(a) an exclusive, worldwide license under the PATENT RIGHTS, with the right to grant
SUBLICENSEs (subject to Section 3), to make, have made, sell, have sold, offer to sell,
import and export tangible LICENSED PRODUCTS for the MARKETS in the FIELD in the TERRITORY.

(b) an exclusive license to sell SERVICE, and to use the PATENT RIGHTS and RECEPTORS’
TECHNOLOGY for internal research, internal development and internal quality control
purposes for the MARKETS in the FIELD in the TERRITORY, with no right to grant SUBLICENSEs
except that LICENSEE shall have the right to grant any SUBLICENSEE(s) under subparagraph
(a) of this Paragraph a SUBLICENSE to use the PATENT RIGHTS and RECEPTORS’ TECHNOLOGY
solely for internal research, internal development and internal quality control purposes.

Any LICENSED PRODUCT(s), except for SERVICE, sold by LICENSEE or any SUBLICENSEE(s) shall
transfer to the purchaser a limited license, as set forth in Appendix A of this Agreement, to use
such LICENSED PRODUCT(s).

2.2 The granting and exercise of this license is subject to the condition that LICENSEE not enter
into any agreement under which LICENSEE grants to- or otherwise creates in any third party a
security interest in this Agreement or any of the rights granted to LICENSEE herein.

2.3 In the event that any patent(s) and/or patent application(s) is/are: outside the PATENT RIGHTS;
necessary for freedom to operate in the FIELD and MARKETS of the PATENT RIGHTS is/are owned and
controlled by RECEPTORS, and such patent(s) and/or patent application(s) is/are available for
license at such time as LICENSEE requests a license thereunder, RECEPTORS will offer to negotiate
in good faith with LICENSEE toward the issuance of an exclusive license on reasonable terms
standard to licensing practice and common in the industry to which the subject technology pertains.

3. SUBLICENSE

3.1 SUBLICENSEs are subject to RECEPTORS’ prior approval, which approval shall not be unreasonably
withheld.

3.2 To the extent applicable, SUBLICENSEs must include all of the rights of and obligations due to
RECEPTORS under this Agreement.

3.3 No third party to whom LICENSEE grants a SUBLICENSE may grant further SUBLICENSES.

 

 

 

3.4 LICENSEE shall promptly provide RECEPTORS with a copy of each SUBLICENSE issued; collect and
guarantee payment of all payments due RECEPTORS from SUBLICENSEEs; and summarize and deliver all
reports due RECEPTORS from SUBLICENSEEs.

3.5 Upon termination of this Agreement for any reason, RECEPTORS, at its sole discretion, shall
determine whether LICENSEE shall cancel or assign to RECEPTORS any and all SUBLICENSEs.

3.6 The right of LICENSEE to grant SUBLICENSEs shall not survive termination of this Agreement.

4. NOT USED

5. NOT USED

6. ROYALTIES

6.1 LICENSEE shall pay to RECEPTORS royalties on NET SALES of the LICENSED PRODUCTS of fifty
percent (50.0%) of NET SALES from all sales of LICENSED PRODUCTS in the MARKETS in the TERRITORY.

6.2 LICENSEE shall pay to RECEPTORS fifty percent (50%) of any and all revenue received for the
sale of the Licensed Products, other than for the sales described in Section 6.1 above. For
example, if VeriChip sold its rights under this Agreement, then Receptors shall be entitled to
fifty percent (50%) of the proceeds from such sale. VeriChip acknowledges and agrees that it may
not assign or transfer any of its rights under this Agreement without the prior written consent of
Receptors.

6.3 The Parties agree that they will examine, prior to starting Phase II of the Development
Agreement, the possibility of assigning the license to a joint venture owned by each of RECEPTORS
and VeriChip (with each Party owning 50% of such joint venture).

6.4 Payment of royalties specified in Section 6 shall be made by LICENSEE to RECEPTORS within sixty
(60) days after March 31, June 30, September 30 and December 31 each year during the term of this
Agreement. If no royalties are due, LICENSEE shall so report. The last such payment shall be made
within sixty (60) days after termination of this Agreement.

 

 

 

7. REPORTING

7.1 (a) LICENSEE shall submit to RECEPTORS within sixty (60) days after each calendar quarter year
ending March 31, June 30, September 30 and December 31, a
Royalty Report setting forth for such quarter year at least the following information:

(i) the number of LICENSED PRODUCTs sold by LICENSEE and/or its SUBLICENSEEs;

(ii) total billings for such LICENSED PRODUCTs;

(iii) an accounting of all LICENSED METHODs used;

(iv) deductions applicable to determine the NET SALES thereof;

(v) the amount of revenue received by LICENSEE pursuant to the sales described in
Section 6.2; and

(vi) the amount of payment due thereon, or, if no payment is due to RECEPTORS for
any reporting period, the statement that no payment is due.

Such report shall be certified as correct by an officer of LICENSEE and shall include a detailed
listing of all deductions from royalties. Such officer shall have a reasonable knowledge of, and
access to, information on which such report is based.

(b) All payments due hereunder shall be deemed received when funds are credited to
RECEPTORS’ bank account and shall be payable by check or wire transfer in United States
dollars. If made by wire transfer, such payments shall be marked so as to refer to this
Agreement. Conversion of foreign currency to U.S. dollars shall be made at the conversion
rate existing in the United States (as reported in the Wall Street Journal or, if not so
reported, then as reported in the New York Times) on the last working day of each royalty
period. No transfer, exchange, collection or other charges shall be deducted from such
payments.

(c) All such reports shall be maintained in confidence by RECEPTORS except as required by
law; however, RECEPTORS may include in its usual reports annual amounts of royalties paid.

(d) In the event that any payment due under this Agreement is not made when due, such
payment shall be subject to a charge of interest at one and one half percent (1 1/2%) per
month, or $250, whichever is greater. Interest shall accrue beginning on the first day
following the due date as herein specified and shall be compounded quarterly. RECEPTORS
shall not be precluded from exercising any other rights it may have as a consequence of the
lateness of any payment.

 

 

 

8. RECORD KEEPING

8.1 LICENSEE shall keep, and shall require each SUBLICENSEE to keep, accurate records (together
with supporting documentation) of efforts to meet the diligence
milestones set forth on Appendix B attached hereto and of LICENSED PRODUCTs made, used or sold
under this Agreement, appropriate to determine the amount of payments due to RECEPTORS hereunder
and compliance with the terms of this Agreement. Such records shall be retained for at least five
(5) years following the end of the reporting period to which they relate. They shall be available
during normal business hours for examination by an auditor selected by RECEPTORS, for the sole
purpose of verifying reports, payments due or made hereunder and compliance with the terms of this
Agreement. In conducting examinations pursuant to this paragraph, RECEPTORS’ auditor shall have
access to all records which RECEPTORS reasonably believes to be relevant to the accuracy of
reports, calculation of payments due under Article 6 and compliance with the terms of this
Agreement.

8.2 RECEPTORS’ auditor shall not disclose to RECEPTORS any information other than information
relating to the accuracy of reports and payments made hereunder and compliance with the terms of
this Agreement.

8.3 Such examination by RECEPTORS’ auditor shall be at RECEPTORS’ expense, except that if such
examination shows an underreporting or underpayment in excess of five percent (5%) for any twelve
(12) month period, then LICENSEE shall pay the cost of such examination as well as any additional
sum that would have been payable to RECEPTORS had the LICENSEE reported correctly, plus interest on
said sum at the rate of one and one half per cent (1 1/2%) per month pursuant to the terms of
subparagraph 7.1(d) of this Agreement.

8.4 In the event of a dispute asserted by RECEPTORS pursuant to this section 8, VeriChip will have
the right to have the results of RECEPTORS’ audit reviewed by VeriChip’s auditor. To the extent of
a disagreement between the two auditors’ findings, the Parties agree to resolve the dispute through
a mutually agreed arbitration process.

9. PATENT PROSECUTION 

9.1 RECEPTORS shall control the preparation, filing, prosecution and maintenance (including without
limitation conducting or participating in interferences or oppositions), at its own expense, of any
and all RECEPTORS Patents and any Patents claiming or covering any RECEPTORS Inventions.

10. INFRINGEMENT

10.1 Infringement of RECEPTORS Patents by Third Parties.

(a) LICENSEE agrees to inform RECEPTORS promptly in writing of any suspected
infringement of the RECEPTORS Patents by a Third Party in the Field of Use.

 

 

 

(b) RECEPTORS shall have the sole right and authority to institute suit against any
Third Party suspected of infringing any RECEPTORS Patent. If RECEPTORS does not notify
LICENSEE of its intent to pursue legal action
within one hundred and twenty (120) days after giving notice of any infringement of
the RECEPTORS Patents, LICENSEE may institute suit; provided that RECEPTORS shall have the
right, in its sole discretion, to join any such suit as a plaintiff and be represented by
separate counsel of its own selection. In any event, RECEPTORS and LICENSEE shall each
bear their own fees and expenses related to such litigation. Any recovery or settlement in
excess of litigation costs and reasonable attorney fees shall be shared equally between
RECEPTORS and LICENSEE.

10.2 Infringement of Third Party Rights.

Each Party shall promptly notify the other in writing of any allegation by a Third Party that the
activity of either of RECEPTORS or LICENSEE pursuant to this Agreement infringes or may infringe
the intellectual property rights of such Third Party. Subject to the following sentence, RECEPTORS
shall have the sole right to control any defense of any such claim involving alleged infringement
of Third Party rights by RECEPTORS’ activities at its own expense and by counsel of its own choice.
If any Third Party claim alleges that the manufacture, use or sale of a LICENSED PRODUCT infringes
such Third Party’s patent rights, then LICENSEE shall have the first right to control any defense
of any such claim at its expense and by counsel of its own choice, and RECEPTORS shall have the
right, at its own expense, to be represented in any such action by counsel of their own choice;
provided that if LICENSEE does not defend against any such Third Party claim, then RECEPTORS may
assume such defense at its expense and using counsel of its own choice, in which case RECEPTORS
shall keep LICENSEE fully informed with regard to the defense of such Third Party claim. RECEPTORS
shall have the sole right to control any defense of any such claim involving alleged infringement
of Third Party rights by RECEPTORS’ activities at its own expense and by counsel of its own choice.
Neither RECEPTORS nor LICENSEE shall have the right to settle any patent infringement litigation
under this §12.09 in a manner that diminishes the rights or interests of the other Party without
first consulting the other Party.

10.3 If a declaratory judgment action is brought naming LICENSEE as a defendant and alleging
invalidity of any of the PATENT RIGHTS, RECEPTORS may elect to take over the sole defense of the
action at its own expense. RECEPTORS shall consult with LICENSEE in such action, and LICENSEE
shall have an opportunity to provide comment; however, final decision-making authority shall vest
in RECEPTORS. LICENSEE shall cooperate fully with RECEPTORS in connection with any such action.

11. TERMINATION OF AGREEMENT

11.1 This Agreement, unless terminated as provided herein, shall remain in effect until the last
patent or patent application in PATENT RIGHTS has expired or been abandoned.

 

 

 

11.2 RECEPTORS may terminate this Agreement as follows:

(a) If LICENSEE does not make a payment due hereunder and fails to cure such non-payment
(including the payment of interest in accordance with one or both of Paragraphs 7.1(d) and
8.3 within forty-five (45) days after the date of notice in writing of such non-payment by
RECEPTORS.

(b) Pursuant to the terms of Paragraph 13.6, if LICENSEE defaults in its obligations under
Paragraph 13.4 to procure and maintain insurance or, if LICENSEE has in any event failed to
comply with the notice requirements contained therein, immediately without notice or
additional waiting period.

(c) If LICENSEE shall become insolvent, shall make an assignment for the benefit of
creditors, or shall have a petition in bankruptcy filed for or against it. Such
termination shall be effective immediately upon RECEPTORS giving written notice to
LICENSEE.

(d) If an examination by RECEPTORS’ auditor pursuant to Article 8 shows an underreporting
or underpayment by LICENSEE in excess of 20% for any twelve (12) month period (in the event
the dispute is not settled pursuant to Section 8.4.

(e) If LICENSEE is convicted of a felony relating to the manufacture, use, or sale of
LICENSED PRODUCTS. Such termination shall be effective immediately upon RECEPTORS giving
written notice to LICENSEE.

(f) If LICENSEE enters into an agreement that creates a security interest in violation of
the terms of Section 2.2 of this Agreement, this Agreement shall immediately and
automatically terminate.

(g) Except as provided in subparagraphs (a), (b), (c), (d), (e), and (f) above, if
LICENSEE defaults in the performance of any obligations under this Agreement and the
default has not been remedied within ninety (90) days after the date of notice in writing
of such default by RECEPTORS.

11.3 LICENSEE may terminate this Agreement as follows:

(a) If RECEPTORS shall become insolvent, shall make an assignment for the benefit of
creditors, or shall have a petition in bankruptcy filed for or against it. Such termination shall
be effective immediately upon LICENSEE giving written notice to RECEPTORS.

(b) Except as provided in subparagraph (a) above, if LICENSEE defaults in the performance of
any obligations under this Agreement and the default has not been remedied within ninety (90) days
after the date of notice in writing of such default by LICENSEE.

11.4 LICENSEE shall provide, in all SUBLICENSEs granted by it under this Agreement, that LICENSEE’s
interest in such SUBLICENSEs shall at RECEPTORS’
option terminate or be assigned to RECEPTORS upon termination of this Agreement.

 

 

 

11.5 LICENSEE may terminate this Agreement by giving ninety (90) days advance
written
notice of termination to RECEPTORS. Upon termination, LICENSEE shall submit a final Royalty Report
to RECEPTORS and any payments owed to RECEPTORS pursuant to Articles 5 and 6 of this Agreement and
unreimbursed patent expenses invoiced by RECEPTORS shall become immediately payable.

11.6 In the event that this Agreement is terminated pursuant to Paragraph 11.5 or any of
subparagraphs 11.2(a), (b), (d) or (g), LICENSEE shall be permitted to clear inventory of LICENSED
PRODUCTS existing as of the date of termination for a period of one (1) year commencing on that
date.

11.7 Paragraphs 3.5, 3.6, 8.1, 8.2, 8.3, 9.1, 10.1, 10.2, 10.3, 11.6, 11.6, 11.7, 12.2, 13.1, 13.2,
13.3, 13.4, 17.1, 17.2, 17.6, 17.7, 17.8, 17.9 and 17.10, subparagraphs 7.1(b), (c) and (d), and
Articles 4, 6 and 14 of this Agreement shall survive termination.

12. WARRANTY

12.1 RECEPTORS does not warrant the validity of the PATENT RIGHTS licensed hereunder and makes no
representations whatsoever with regard to the scope of the licensed PATENT RIGHTS or that such
PATENT RIGHTS may be exploited by LICENSEE or any SUBLICENSEE without infringing other patents.

12.2 RECEPTORS EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND MAKES NO EXPRESS
OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE PATENT RIGHTS
OR INFORMATION SUPPLIED BY RECEPTORS, LICENSED METHODS OR LICENSED PRODUCTS CONTEMPLATED BY THIS
AGREEMENT.

13. INDEMNIFICATION

13.1 LICENSEE shall indemnify, defend and hold harmless RECEPTORS and its current or former
directors, board members, and employees, and their respective successors, heirs and assigns
(collectively, the “INDEMNITEES”) from and against any claim, liability, cost, expense, damage,
deficiency, loss or obligation or any kind or nature (including, without limitation, reasonable
attorney’s fees and other costs and expenses of litigation) (collectively, “Claims”), based upon or
arising out of or otherwise relating to this Agreement, including without limitation any cause of
action relating to product liability concerning any product, process, or service made, used or sold
pursuant to any right or license granted under this Agreement.

13.2 RECEPTORS shall indemnify, defend and hold harmless LICENSEE and its INDEMNITEES from and
against any Claim, based upon or arising out of a breach of the terms of this Agreement by
RECEPTORS. In the event VeriChip is found liable for any
damages from a Claim, each party will share equally in the damages on a pro rata basis, up to their
share of the NET SALES and ROYALTIES earned to date.

 

 

 

13.3 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS OR EXPECTED
SAVINGS OR OTHER ECONOMIC LOSSES, OR FOR INJURY TO PERSONS OR PROPERTY) ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER, REGARDLESS OF WHETHER RECEPTORS KNOWS OR
SHOULD KNOW OF THE POSSIBILITY OF SUCH DAMAGES. RECEPTORS’ AGGREGATE LIABILITY FOR ALL DAMAGES OF
ANY KIND RELATING TO THIS AGREEMENT OR ITS SUBJECT MATTER SHALL NOT EXCEED THE AMOUNT PAID BY
LICENSEE TO RECEPTORS UNDER THIS AGREEMENT. The foregoing exclusions and limitations shall apply
to all claims and actions of any kind, whether based on contract, tort (including but not limited
to negligence), or any other grounds.

13.4 LICENSEE shall, at its own expense, provide attorneys reasonably acceptable to RECEPTORS to
defend against any actions brought or filed against any INDEMNITEE hereunder with respect to the
subject of indemnity contained herein, whether or not such actions are rightfully brought.

14. USE OF NAMES AND PRODUCT LABELING

LICENSEE shall not use RECEPTORS’ name or insignia, or any adaptation of them, or the name of any
of RECEPTORS’ employees in any advertising, promotional or sales literature, including without
limitation press releases, without the prior written consent of RECEPTORS. LICENSEE shall
acknowledge RECEPTORS’ ownership of the PATENT RIGHTS in the manual or datasheet of the related
products as follows:

Products in the FIELD are covered by an international patent family, owned by RECEPTORS LLC.
“This product or the use of this product may be covered by one or more patents of RECEPTORS LLC
including, but not restricted to, the following: United States Patent No. 7,504,364.”

This acknowledgement may, at LICENSEE’s discretion be included as part of the “Limited Use License”
wording.

In addition, LICENSEE must identify LICENSOR on any related products.

15. ASSIGNMENTS

Without the prior written consent of RECEPTORS in each instance, neither this Agreement nor
the rights granted hereunder shall be transferred or assigned in whole or in part by LICENSEE to
any party, whether voluntarily or involuntarily, by operation of law or otherwise. Any purported
transfer or assignment made without such consent shall
be void.

 

 

 

16. NOTICES

Any notices to be given hereunder shall be sufficient if signed by the party (or party’s
attorney) giving same and either

(a) delivered in person,

(b) mailed certified mail return receipt requested,

(c) made by overnight delivery, or

(d) faxed to other party if the sender has evidence of successful transmission
and if the sender promptly sends the original by ordinary mail, in any
event to the following addresses:

If to RECEPTORS:

Robert E. Carlson

President

RECEPTORS LLC

Suite 510 / MD23

1107 Hazeltine Blvd.

Chaska, MN 55318 USA

Facsimile: (952) 448-1651

If to LICENSEE:

VeriChip Corporation

1690 South Congress Ave., Suite 200

Delray Beach, FL 33445

ATTN: William J. Caragol, President

Facsimile: (561) 805-8001

By such notice either party may change their address for future notices.

Notices delivered in person shall be deemed given on the date delivered. Notices mailed shall
be deemed given on the date postmarked on the envelope. Notices sent by overnight carrier shall be
deemed given on the date received by such carrier, as indicated on the shipping manifest or
waybill. Notices sent by fax shall be deemed given on the date faxed.

 

 

 

17. MISCELLANEOUS

17.1 The interpretation and application of the provisions of this Agreement shall be governed by
the laws of the State of New York.

17.2 LICENSEE shall comply with all applicable laws and regulations. In particular, it is
understood and acknowledged that the transfer of certain commodities and technical data is subject
to United States laws and regulations controlling the export of such commodities and technical
data, including all Export Administration Regulations of the United States Department of Commerce.
These laws and regulations among other things, prohibit or require a license for the export of
certain types of technical data to certain specified countries. LICENSEE hereby agrees and gives
written assurance that it will comply with all United States laws and regulations controlling the
export of commodities and technical data, that it will be solely responsible for any violation of
such by LICENSEE, and that it will defend and hold RECEPTORS harmless in the event of any legal
action of any nature occasioned by such violation. LICENSEE shall, in each SUBLICENSE, include
terms that provide that SUBLICENSEE shall comply with all such laws and regulations, shall be
solely responsible for any violation of same by SUBLICENSEE, and shall defend and hold RECEPTORS
harmless in the event of any legal action of any nature occasioned by such violation.

17.3 LICENSEE and any SUBLICENSEE(s) shall obtain all regulatory approvals required for the
manufacture and sale of LICENSED PRODUCTS.

17.4 LICENSEE and any SUBLICENSEE(s) shall utilize appropriate patent and/or trademark marking on
LICENSED PRODUCTS.

17.5 LICENSEE shall register or record this Agreement as is required by law or regulation in any
country where the license is in effect.

17.6 Should a court of competent jurisdiction hold any provision of this Agreement to be invalid,
illegal, or unenforceable, and such holding is not reversed on appeal, it shall be considered
severed from this Agreement. All other provisions, rights and obligations shall continue without
regard to the severed provision, provided that the remaining provisions of this Agreement are in
accordance with the intention of the parties.

17.7 This Agreement constitutes the entire understanding between the parties and neither party
shall be obligated by any condition or representation other than those expressly stated herein or
as may be subsequently agreed to by the parties hereto in writing.

17.8 This Agreement shall be binding upon the respective successors, legal representatives and
assignees of RECEPTORS and LICENSEE.

17.9 This Agreement may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which, taken together, shall constitute one and the same instrument.

 

 

 

17.10 This Agreement includes the attached Appendixes A, B and C.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives.

	 	 	 	 	 	 	 	 	 
	RECEPTORS LLC	 	VeriChip Corporation
	 
	/s/ Robert E. Carlson
	 	 	 	/s/ William J. Caragol	 
	Name 	Robert E. Carlson	 	 	 	Name 	William J. Caragol	 	 
	Title
	President	 	 	 	Title	President	 	 
	21 Sept 09
	 	 	 	9/21/09	 
	
Date
	 	 	 	 	
Date

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