Document:

Guarantee and Postponement of Claim

 Exhibit 10.42 
 GUARANTEE AND POSTPONEMENT OF CLAIM 
 TO: ROYAL BANK OF CANADA 
 FOR VALUABLE CONSIDERATION, receipt whereof is hereby acknowledged, the undersigned and each of them (if more than one) hereby jointly and severally
guarantee(s) payment on demand to Royal Bank of Canada (hereinafter called the “Bank”) of all debts and liabilities, present or future, direct or indirect, absolute or contingent, matured or not, at any time owing by VERICHIP
HOLDINGS INC. (hereinafter called the “customer”) to the Bank or remaining unpaid by the customer to the Bank, heretofore or hereafter incurred or arising and whether incurred by or arising from agreement or dealings between the Bank
and the customer or by or from any agreement or dealings with any third party by which the Bank may be or become in any manner whatsoever a creditor of the customer or however otherwise incurred or arising anywhere within or outside the country
where this guarantee is executed and whether the customer be bound alone or with another or others and whether as principal or surety (such debts and liabilities being hereinafter called the “liabilities”); the liability of the undersigned
hereunder being limited to the sum of $2,000,000.00 Two Million AND 00/100 Dollars together with interest thereon from the date of demand for payment at a rate equal to the Bank’s Prime Interest Rate per annum in effect from time to time plus
1.000 One percent per annum as well after as before default and judgement. 
 AND THE UNDERSIGNED AND EACH OF THEM (IF MORE THAN ONE) HEREBY JOINTLY AND
SEVERALLY AGREE(S) WITH THE BANK AS FOLLOWS: 
 (1) The Bank may grant time, renewals, extensions, indulgences, releases and discharges to, take securities
(which word as used herein includes securities taken by the Bank from the Customer and others, monies which the Customer has on deposit with the Bank, other assets of the Customer held by the Bank in safekeeping or otherwise, and other guarantees)
from and give the same and any or all existing securities up to, abstain from taking securities from, or perfecting securities of, cease or refrain from giving credit or making loans or advances to, or change any term or condition applicable to the
liabilities, including without limitation, the rate of interest or maturity date, if any, or introduce new terms and conditions with regard to the liabilities, or accept compositions from and otherwise deal with, the customer and others and with all
securities as the Bank may see fit, and may apply all moneys at any time received from the customer or others or from securities upon such part of the liabilities as the Bank deems best and change any such application in whole or in part from time
to time as the Bank may see fit, the whole without in any way limiting or lessening the liability of the undersigned under this guarantee, and no loss of or in respect of any securities received by the Bank from the customer or others, whether
occasioned by the fault of the Bank or otherwise, shall in any way limit or lessen the liability of the undersigned under this guarantee. 
 (2) This
guarantee shall be a continuing guarantee and shall cover all the liabilities, and it shall apply to and secure any ultimate balance due or remaining unpaid to the Bank. 
 (3) The Bank shall not be bound to exhaust its recourse against the customer or others or any securities it may at any time hold before being entitled to payment from the undersigned of the liabilities. The
undersigned renounce(s) to all benefits of discussion and division. 
 (4) The undersigned or any of them may, by notice in writing delivered to the Manager
of the branch of agency of the Bank receiving this instrument, with effect from and after the date that is 30 days following the date of receipt by the Bank of such notice, determine their or his/her liability under this guarantee in respect of
liabilities thereafter incurred or arising but not in respect of any liabilities theretofore incurred or arising even though not then matured, provided, however, that notwithstanding receipt of any such notice the Bank may fulfil any requirements of
the customer based on agreements express or implied made prior to the receipt of such notice and any resulting liabilities shall be covered by this guarantee; and provided further that in the event of the determination of this guarantee as to one or
more of the undersigned it shall remain a continuing guarantee as to the other or others of the undersigned. 
 (5) All indebtedness and liability, present
and future, of the customer to the undersigned or any of them are hereby assigned to the Bank and postponed to the liabilities, and all moneys received by the undersigned or any of them in respect thereof shall be received in trust for the Bank and
forthwith upon receipt shall be paid over to the Bank, the 
  

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 whole without in any way limiting or lessening the liability of the undersigned under the foregoing guarantee; and this
assignment and postponement is independent of the said guarantee and shall remain in full effect notwithstanding that the liability of the undersigned or any of them under the said guarantee may be extinct. The term “Liabilities”, as
previously defined, for purposes of the postponement feature provided by this agreement, and this section in particular, includes any funds advanced or held at the disposal of the customer under any line(s) of credit. 
 (6) This guarantee and agreement shall not be affected by the death or loss or diminution of capacity of the undersigned or any of them or by any change in the name of
the customer or in the membership of the customer’s firm through the death or retirement of one or more partners or the introduction of one or more other partners or otherwise, or by the acquisition of the customer’s business by a
corporation, or by any change whatsoever in the objects, capital structure or constitution of the customer, or by the customer’s business being amalgamated with a corporation, but shall notwithstanding the happening of any such event continue
to apply to all the liabilities whether theretofore or thereafter incurred or arising and in this instrument the word “customer” shall include every such firm and corporation. 
 (7) This guarantee shall not be considered as wholly or partially satisfied by the payment or liquidation at any time or times of any sum or sums of money for the time being due or remaining unpaid to the Bank, and
all dividends, compositions, proceeds of security valued and payments received by the Bank from the customer or from others or from estates shall be regarded for all purposes as payments in gross without any right on the part of the undersigned to
claim in reduction of the liability under this guarantee the benefit of any such dividends, compositions, proceeds or payments or any securities held by the Bank or proceeds thereof, and the undersigned shall have no right to be subrogated in any
rights of the Bank until the Bank shall have received payment in full of the liabilities. 
 (8) All monies, advances, renewals, credits and credit
facilities in fact borrowed or obtained from the Bank shall be deemed to form part of the liabilities, notwithstanding any lack or limitation of status or of power, incapacity or disability of the customer or of the directors, partners or agents of
the customer, or that the customer may not be a legal or suable entity, or any irregularity, defect or informality in the borrowing or obtaining of such monies, advances, renewals, credits or credit facilities, or any other reason, similar or not,
the whole whether known to the Bank or not. Any sum which may not be recoverable from the undersigned on the footing of a guarantee, whether for the reasons set out in the previous sentence, or for any other reason, similar or not, shall be
recoverable from the undersigned and each of them as sole or principal debtor in respect of that sum, and shall be paid to the Bank on demand with interest and accessories. 
 (9) This guarantee is in addition to and not in substitution for any other guarantee, by whomsoever given, at any time held by the Bank, and any present or future obligation to the Bank incurred or arising otherwise
than under a guarantee, of the undersigned or any of them or of any other obligant, whether bound with or apart from the customer; excepting any guarantee surrendered for cancellation on delivery of this instrument. 
 (10) The undersigned and each of them shall be bound by any account settled between the Bank and the customer, and if no such account has been so settled immediately
before demand for payment under this guarantee any account stated by the Bank shall be accepted by the undersigned and each of them as conclusive evidence of the amount which at the date of the account so stated is due by the customer to the Bank or
remains unpaid by the customer to the Bank. 
 (11) This guarantee and agreement shall be operative and binding upon every signatory thereof notwithstanding
the non-execution thereof by any other proposed signatory or signatories, and possession of this instrument by the Bank shall be conclusive evidence against the undersigned and each of them that this instrument was not delivered in escrow or
pursuant to any agreement that it should not be effective until any conditions precedent or subsequent had been complied with, unless at the time of receipt of this instrument by the Bank each signatory thereof obtains from the Manager of the branch
or agency of the Bank receiving this instrument a letter setting out the terms and conditions under which this instrument was delivered and the conditions, if any, to be observed before it becomes effective. 
 (12) No suit based on this guarantee shall be instituted until demand for payment has been made, and demand for payment shall be deemed to have been effectually made
upon any guarantor if and when an envelope containing such demand, addressed to such guarantor at the address of such guarantor last known to the Bank, is posted, postage prepaid in the post office, and in the event of the death of any guarantor
demand for payment addressed to any of such guarantor’s heirs, executors, administrators or legal representatives at the address of the addressee last known to the Bank and posted as aforesaid shall be deemed to have been effectually made upon
all of them. Moreover, when demand for payment has been made, the undersigned shall also be liable to the Bank for all legal costs (on a solicitor and own client basis) incurred by or on behalf of the Bank resulting from any action instituted on the
basis of this guarantee. All payments hereunder shall be made to the Bank at a branch or agency of the Bank. 
 (13) This instrument covers all agreements
between the parties hereto relative to this guarantee and assignment and postponement, and none of the parties shall be bound by any representation or promise made by any person relative thereto which is not embodied herein. 
  

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 (14) This guarantee and agreement shall extend to and enure to the benefit of the Bank and its successors and assigns,
and every reference herein to the undersigned or to each of them or to any of them, is a reference to and shall be construed as including the undersigned and the heirs, executors, administrators, legal representatives, successors and assigns of the
undersigned or of each of them or of any of them, as the case may be, to and upon all of whom this guarantee and agreement shall extend and be binding. 
 (15) Prime Interest Rate is the annual rate of interest announced from time to time by Royal Bank of Canada as a reference rate than in effect for determining interest rates on Canadian dollar commercial loans in Canada. 
 (16) This Guarantee and Postponement of Claim shall be governed by and construed in accordance with the laws of the Province of British Colombia
(“Jurisdiction”). The undersigned irrevocably submits to the courts of the Jurisdiction in any action or proceeding arising out of or relating to this Guarantee and Postponement of Claim, and irrevocably agrees that all such actions and
proceedings may be heard and determined in such courts, and irrevocably waives, to the further extent possible, the defense of an inconvenient forum. The undersigned agrees that a judgment or order in any such action or proceeding may be enforced in
other jurisdictions in any manner provided by law. Provided, however, that the Bank may serve legal process in any manner permitted by law or may bring an action or proceeding against the undersigned or the property or assets of the undersigned in
the courts of any other jurisdiction. 
 (Applicable in all P.P.S.A. provinces except Ontario) 
 (17) The Undersigned hereby acknowledges receipt of a copy of this agreement. 
 (18) The undersigned hereby waives
Undersigned’s right to receive a copy of any Financing Statement or Financing Change Statement registered by the Bank. 
 GIVEN UNDER SEAL at RICHMOND,
B.C. this 03/27/06 (MONTH / DAY / YEAR) 
 SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF 
  

							
		 	VERICHIP CORPORATION	 	
			
	 

	 	

	 	Seal
			
	 Colleen Powell
	 	Nurez Khimji	 	
				
	 Witness
	 		 		 	
			
	 

	 	

	 	Seal
			
	Colleen Powell	 	Keevin Vanloo	 	
				
	 Witness
	 		 		 	
				
	 Witness
	 		 		 	Seal
				
	 Witness
	 		 		 	Seal

  

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 (To be completed when the guarantee is stated to be governed by the laws of the Province of Alberta, the loan is
repayable in Alberta, the guarantee is executed in Alberta, the customer carries on business in Alberta, or the guarantor is resident or owns assets in Alberta.) 
 THE GUARANTEES ACKNOWLEDGEMENT ACT, (ALBERTA) 
 CERTIFICATE OF NOTARY PUBLIC 
 (To be completed only where the guarantor is not a corporation) 
 I HEREBY CERTIFY THAT: 
 (1)                                      
                                        
                                        
                   of                      in the
Province of                     , the guarantor in the guarantee dated
                     made between ROYAL BANK OF CANADA and
                            
                                        
                                        ,
which this certificate is attached to or noted upon, appeared in person before me and acknowledged that he/she had executed the guarantee; 
 (2) I satisfied myself by examination of the guarantor that he/she is aware of the contents of the guarantee and understands it. 
 Given at
                     this
                     under my hand and seal of office 
  

			
		
	(SEAL OF NOTARY PUBLIC)	 	  

		 	A NOTARY PUBLIC IN AND FOR
		
		 	  

 STATEMENT OF GUARANTOR 
 (Guarantor to sign in presence of Notary Public) 
  

			
	            I am the person named in the certificate	  	  

		  	Signature of Guarantor

 (To be completed when the guarantee is stated to be governed by the laws of the Province of Saskatchewan and the
Borrower or Guarantor is a farmer in Saskatchewan, or the farmer or Guarantor owns farm assets in Saskatchewan.) 
 THE SASKATCHEWAN FARM
SECURITY ACT ACKNOWLEDGEMENT OF GUARANTEE 
 (SECTION 31) 
 CERTIFICATE OF LAWYER OR NOTARY PUBLIC 
 I HEREBY CERTIFY THAT: 
 (1)
                                        
                                        
                                        
                 of                      in the Province of
                    , the guarantor in the guarantee dated
                     made between ROYAL BANK OF CANADA and
                                        
                                        
                            , which this certificate is attached to or noted upon appeared in person
before me and acknowledged that he/she had executed the guarantee; 
 (2) I satisfied myself by examination of the guarantor that he/she is
aware of the contents of the guarantee and understands it. 
 (3) I have not prepared any documents on behalf of the creditor, Royal Bank of
Canada, relating to the transaction and I am not otherwise interested in the transaction; 
 (4) I acknowledge that the guarantor signed the
following “Statement of Guarantor” in my presence. 
 Given at
                     this
                     under my hand and seal of office 
  

			
	 (SEAL REQUIRED WHERE NOTARY
 PUBLIC SIGNS CERTIFICATE)
	 	  

		 	A LAWYER OR A NOTARY PUBLIC IN AND FOR
		
		 	  

 STATEMENT OF GUARANTOR 
 I am the person named in the certificate
                                        
                                        
                             
                                     Signature of Guarantor

  

 Page 4 of 4Employment and Non-Compete Agreement

 EXHIBIT 10.43 
 VERICHIP CORP 
 EMPLOYMENT AND NON-COMPETE AGREEMENT 
 AGREEMENT made this 5 day of December, 2006 (the “Effective Date”), by and between the parties to this Agreement (hereinafter individually referred to
as “Party” and collectively referred to as “Parties”), VERICHIP CORP, a Delaware Business Corporation (hereinafter referred to as “VeriChip”), and SCOTT R. SILVERMAN (hereinafter referred to as
“Executive”). 
 WHEREAS, VeriChip is a leader in RFID technology for people, particularly in the healthcare area (the
“Business”); and 
 WHEREAS, the Business includes VeriChip’s VeriMed business, for which Executive has contributed
meaningfully in his capacity as CEO of Applied Digital Solutions, Inc., (“ADS”); and 
 WHEREAS, VeriChip finds it is in its
best interest to enhance Executive’s contribution to the Business, to protect its technologies and business relationships, and to engage Executive’s services as Chairman and Chief Executive Officer of VeriChip; and 
 WHEREAS, Executive is willing to assume the fulltime role as VeriChip’s Chief Executive Officer; 
 NOW THEREFORE, in consideration of the promises and the mutual obligations set forth in this Agreement, the Parties agree as follows: 

1. Employment. VeriChip agrees to employ Executive, and Executive agrees to accept such employment by VeriChip, pursuant to the
terms and conditions set forth in this Agreement. 

 2. Position and Responsibilities. During the term of this Agreement, as defined
below, Executive shall serve as Chairman and Chief Executive Officer of VeriChip and will perform such duties and exercise such supervision with regard to the business of VeriChip as are associated with such positions, as well as such additional
duties as may be prescribed from time to time by VeriChip’s Board of Directors. Executive agrees to render services to the best of Executive’s ability for and on behalf of VeriChip. Executive agrees to devote his full business time to
rendering such services on behalf of VeriChip. 
 3. Term. Except as otherwise provided in this Section 3 or
Section 8(c) of this Agreement, the term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue in force thereafter for a period of five (5) years from the Effective Date. Notwithstanding the
foregoing, upon the happening of any of the following events, this Agreement shall terminate (unless otherwise provided herein for a termination after a period of time) and Executive shall cease to be an employee of VeriChip: 
  

	 	(a)	Executive’s resignation upon sixty (60) days advance written notice; 

  

	 	(b)	Executive’s Total Disability upon VeriChip’s election. For purposes of this Agreement, “Total Disability” shall be defined as Executive’s inability, due to
illness, accident or any other physical or mental incapacity, to perform Executive’s usual responsibilities performed by Executive for VeriChip prior to the onset of such disability, for one hundred eighty (180) consecutive days during the
Term. VeriChip may elect, by written notice to Executive, within thirty (30) days of the end of such period of Total Disability defined above, to terminate Executive’s employment herein; 

  

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	 	(c)	the death of Executive; 

  

	 	(d)	Executive’s Constructive Termination. For purposes of this Agreement, “Constructive Termination” shall be defined as a material breach by VeriChip of its obligations
under this Agreement (including but not limited to any reduction of Executive’s Base Salary or incentive compensation as provided herein). If Executive chooses to treat such material breach as a Constructive Termination, Executive shall provide
VeriChip with written notice describing the circumstances being relied upon by Executive for such termination with respect to this Agreement within thirty (30) days after the event giving rise to the Constructive Termination. VeriChip shall
have thirty (30) days after receipt of such notice to remedy the situation prior to the Constructive Termination being deemed final; or 

  

	 	(e)	VeriChip terminates this Agreement for cause, with said cause being defined as a conviction of a felony or Executive’s being prevented from providing services hereunder as a
result of Executive’s violation of any law, regulation and/or rule. 

  

	 	(f)	Nothing in this Agreement is intended to limit the rights of VeriChip to terminate this Agreement under applicable bankruptcy laws in the event that VeriChip files for protection
under the United States Bankruptcy Code. 

  

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 4. Annual Compensation. (a) During the Term, Executive shall be entitled to
compensation for all services performed by Executive pursuant to this Agreement (“Compensation”) as follows: 
  

	 	(1)	Executive shall be entitled to a base salary (the “Base Salary”) of FOUR HUNDRED TWENTY THOUSAND ($420,000.00) DOLLARS for the 2007 calendar year, payable according to the
customary payroll practices of VeriChip for the then current period. The Base Salary shall increase a minimum of ten percent (10%) per annum during each of the first two (2) years of the Term. Thereafter, the Base Salary may be increased
(but not decreased) in the reasonable discretion of VeriChip. The “Base Salary” shall, for all purposes of this Agreement, mean the Base Salary then being paid by VeriChip to Executive. 

  

	 	(2)	During the Term, Executive shall be eligible for incentive bonus compensation for each calendar year, to be reasonably determined by the Board of Directors of VeriChip, which shall
consider bonuses paid by similarly situated employers to similarly situated employees. 

 (b) VeriChip shall deduct from the
Compensation all taxes and other deductions which are required to be deducted or withheld under any provision of any federal, state, or local law now in effect or which may become effective at any time during the term of this Agreement. 

5. Fringe Benefits. During the Term, Executive shall be entitled to all fringe benefits (the “Fringe Benefits”)
provided to senior executive employees of VeriChip, as reasonably determined by the Board of Directors of VeriChip. The Fringe Benefits shall specifically include executive health benefits which shall entitle Executive to full reimbursement

  

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 for all physical examinations and other related services, use of an automobile leased by VeriChip for use by Executive,
as well as the payment by VeriChip of all applicable annual membership dues relating to the Ocean Reef Yacht Club. In addition, VeriChip shall utilize its commercially reasonable efforts to obtain and maintain, at its sole cost and expense,
disability insurance coverage that shall provide Executive with up to TWENTY-TWO THOUSAND SEVEN HUNDRED FIFTY ($22,750.00) DOLLARS in monthly salary continuation payments, subject to applicable limitation periods and the availability of such
coverage, in the event of the disability of Executive. 
 6. Business and Other Expenses. VeriChip will reimburse
Executive for all reasonable travel, entertainment and other expenses incurred by Executive in connection with the performance of his duties and obligations under this Agreement. Executive will comply with all reasonable reporting requirements with
respect to business expenses as may be established by VeriChip from time to time. In addition, VeriChip shall pay to Executive FORTY-FIVE THOUSAND ($45,000.00) DOLLARS per year during the Term, payable in TWENTY-TWO THOUSAND FIVE HUNDRED
($22,500.00) DOLLAR installments on or before January 15 and July 15, representing non-allocable expenses that shall be deemed additional compensation to Executive. 
 7. Additional Benefits. (a) Executive will be entitled to participate in all other compensation or employee benefit plans or
programs and receive all benefits for which salaried employees of VeriChip generally are eligible under any plan or program now or later established by VeriChip on the same basis as similarly situated senior executives of VeriChip. Executive will
participate to the extent permissible under the terms and provisions of such plans or programs, in accordance with program provisions. 
 (b)
Upon the execution of this Agreement, VeriChip shall, after giving effect to the contemplated three for one reverse stock split, issue 500,000 shares (the “Shares”) of 
  

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 restricted stock in VeriChip to Executive. The Shares will be registered as soon as practicable, which is anticipated to
be approximately six (6) months from the date of issuance of the Shares. The Shares shall be subject to a substantial risk of forfeiture in the event that this Agreement is terminated on or before December 31, 2008 pursuant to
subparagraphs (a) or (e) of Section 3 of this Agreement in which event the Shares shall immediately be forfeited. 
 8.
Payment Upon Termination of Agreement. (a) In the event this Agreement is terminated by Executive’s resignation pursuant to subparagraph (a) or (e) of Section 3 of this Agreement, VeriChip will pay to
Executive any and all earned but unpaid Base Salary and earned but unpaid incentive bonus compensation as of the date of termination. VeriChip shall pay such amounts due Executive within thirty (30) days of Executive’s last day of service.
In addition, VeriChip shall pay to Executive fifty (50%) percent of the Base Salary for a period of two (2) years commencing from the date of Termination. In addition, any outstanding stock options held by Executive on Executive’s
last day of service shall remain exercisable for the life of the option. Further, Executive may, at his sole option, assume all obligations for the leased vehicle then used by Executive, which vehicle is being leased by VeriChip for use by
Executive. 
 (b) In the event this Agreement is terminated pursuant to any of subparagraphs (b) through (d) of Section 3 of
this Agreement, or if VeriChip terminates this Agreement without cause, VeriChip will, in addition to maintaining the Fringe Benefits through December 31, 2011, pay to Executive the sum of (i) any and all earned but unpaid Base Salary and
earned but unpaid incentive bonus compensation as of the date of termination; (ii) the greater of (A) the Base Salary from the date of termination through December 31, 2011, or (B) two (2) times the Base Salary; and
(iii) the average bonus paid by VeriChip to Executive for the three (3) full calendar years immediately prior to the date of termination, or fifty (50%) percent of the 
  

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 bonus paid by ADS to Executive in 2006 if the termination occurs in 2007, or seventy-five (75%) percent of the bonus
paid by VeriChip to Executive in 2007 if the termination occurs in 2008, which amount shall be interpolated from the date of termination through December 31, 2011. All amounts set forth in this subparagraph (b) may be paid in either cash
or in stock of VeriChip within sixty (60) days of Executive’s last day of service; provided, however, to the extent that Executive, in his sole option, does not desire to receive stock of VeriChip, then and in that event, he shall so
notify VeriChip in which event VeriChip shall pay fifty (50%) percent of the amounts set forth in this subparagraph (b) in cash within sixty (60) days of Executive’s last day of service, with the remaining amounts to be paid
within one hundred eighty (180) days of Executive’s last day of service; provided, further, that VeriChip shall continue to pay to Executive the Base Salary for one hundred eighty (180) days from Executive’s last day of service,
which payments shall be credited to VeriChip against the amount due from VeriChip to Executive as set forth in this subparagraph (b). In addition, any outstanding stock options held by Executive on Executive’s last day of service pursuant to
such termination shall become vested and exercisable as of such date of termination, and will remain exercisable for the life of the option. Further, VeriChip shall continue to pay all lease payments on the vehicle then used by Executive, which
vehicle is being leased by VeriChip for use by Executive. In addition, VeriChip shall maintain Executive on its group medical plan on the same conditions as if he were to remain employed by VeriChip, until Executive is eligible to be covered under
another comparable group medical plan. 
 (c) (i) To the extent that during the Term there shall be Change in Control, as hereinafter
defined, notwithstanding any term to the contrary in this Agreement, this Agreement shall terminate in which event, the Executive shall be entitled to receive the Change in Control Compensation, as hereafter defined. 
  

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 (ii) For all purposes of this Agreement, a Change in Control shall be deemed to occur if any person or
entity (or persons or entities acting as a group) acquires stock of VeriChip that, together with stock then held by such person, entity or group, results in such person, entity or group holding more than fifty (50%) percent of the fair market
value or total voting power of VeriChip as well as the board of director members prior to the transaction no longer constituting a majority of the board of director members following such transaction. Notwithstanding the foregoing, the following
shall not be deemed a Change in Control: (1) the acquisition of stock by ADS or its affiliates; (2) a public offering or sale to the public of VeriChip’s stock; (3) a merger with another company, unless such merger also results
in the board of director members prior to such transaction not constituting a majority of the board members following such transaction. 
 (iii) For all purposes of this Agreement, the Term Change in Control Compensation shall mean the sum of (A) any and all earned but unpaid Base Salary and earned but unpaid bonus compensation as of the date of the Change in Control;
(B) five (5) times the Base Salary; and (C) five (5) times the average bonus paid by VeriChip to Executive for the three (3) full calendar years immediately prior to the Change in Control, or the number of calendar years
that were completed commencing on the Effective Date and ending on the Change in Control if less than three (3) calendar years. The Change in Control Compensation shall be paid to Executive within ten (10) days of the Change in Control. In
addition, any outstanding stock options held by Executive as of the Change in Control shall become vested and exercisable as of such date, and shall remain exercisable as of the life of the option. Further, VeriChip shall continue to pay all lease
payments on the vehicle then used by Executive, which vehicle is being leased by VeriChip for use by Executive. 
  

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 9. Confidential Information. (a) Executive recognizes and acknowledges that all
information pertaining to this Agreement or to the affairs; business; results of operations; accounting methods, practices and procedures; shareholders; acquisition candidates; financial condition; clients; customers or other relationships of
VeriChip or any of its affiliates (“Information”) is confidential and is a unique and valuable asset of VeriChip or any of its affiliates. Access to and knowledge of the Information is essential to the performance of Executive’s
duties under this Agreement. Executive will not, during the Term or thereafter, except to the extent reasonably necessary in performance of his duties under this Agreement, give to any person, firm, association, corporation, or governmental agency
any Information, except as may be required by law. Executive will not make use of the Information for his own purposes or for the benefit of any person or organization other than VeriChip or any of its affiliates. Executive will also use his best
efforts to prevent the disclosure of this Information by others. All records, memoranda, etc. relating to the business of VeriChip or its affiliates, whether made by Executive or otherwise coming into his possession, are confidential and will remain
the property of VeriChip or its affiliates. 
 (b) Executive will, with reasonable notice during or after the Term, furnish information as
may be in his possession and fully cooperate with VeriChip and its affiliates as may be required in connection with any claims or legal action in which VeriChip or any of its affiliates is or may become a party. 
 10. Restrictions. (a) During the Term, and to the extent that Executive submits his resignation in accordance with
Section 3(a), thereafter for a two (2) year period (the “Restriction 
  

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 Period”), Executive agrees that, without the prior express written approval from VeriChip’ Board of Directors,
he shall not compete with VeriChip and its affiliates by directly or indirectly engaging in the Business or by engaging in any business comparable to that of VeriChip or its affiliates, either directly or indirectly, as an individual, partner,
member, corporation, limited liability company, limited liability partnership, officer of a corporation or in any other capacity whatsoever at any location at which VeriChip or its affiliates conducts business and/or provides any
services. 
 (b) Executive acknowledges that the restrictions contained in this Section 10 of this Agreement, in view of the nature of
the activities in which VeriChip and its affiliates are engaged, are reasonable and necessary in order to protect the legitimate interests of VeriChip and its affiliates, and that any violation thereof would result in irreparable injuries to
VeriChip and/or its affiliate(s), as the case may be. Executive, therefore, acknowledges that, in the event of the violation of any of these restrictions, VeriChip shall be entitled to obtain from any Court of competent jurisdiction preliminary and
permanent injunctive relief, as well as attorneys fees and costs, damages and an equitable accounting of all earnings, profits and other benefits arising from such violation, which rights shall be cumulative, and in addition to any other rights or
remedies to which VeriChip may be entitled. 
 (c) Executive agrees that the restrictions contained in this Section 10 of this Agreement
are an essential element of Executive’s compensation that Executive is granted hereunder and, but for Executive’s agreement to comply with such restrictions, VeriChip would not have entered into this Agreement. 
 (d) If any of the restrictions set forth in this Section 10 should, for any reason, be adjudged invalid or unreasonable in any proceeding, then the
validity or enforceability of the 
  

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 remainder of such restrictions shall not be adversely affected. If the Restriction Period or the area specified in this
Section 10 of this Agreement shall be adjudged unreasonable in any proceeding, then the Restriction Period shall be reduced by such number of months, or the area shall be reduced by the elimination of such portion thereof or both, so that such
restrictions may be enforced in such area and for such period of time as is adjudged to be reasonable. If Executive violates any of the restrictions contained in this Section 10, the Restriction Period shall not run in favor of Executive from
the time of commencement of any such violation until such time as such violation shall be cured by Executive to the satisfaction of VeriChip. 
 (e) The terms of this Section 10 shall survive the termination of this Agreement. Executive acknowledges that he can be gainfully employed and still comply with the terms of this Section 10 and that it is not unduly
inconvenient to him. 
 11. Indemnification; Litigation. (a) VeriChip will indemnify Executive to the fullest
extent permitted by the laws of the State of Florida in effect at that time, or the certificate of incorporation and by-laws of VeriChip, whichever affords the greater protection to Executive. Executive will be entitled to any insurance policies
VeriChip may elect to maintain generally for the benefit of its officers and directors against all costs, charges and expenses incurred in connection with any action, suit or proceeding to which he may be made a party by reason of being an officer
of VeriChip. 
 (b) In the event of any litigation or other proceeding between VeriChip and Executive with respect to the subject matter of
this Agreement, VeriChip will reimburse Executive for all costs and expenses related to the litigation or proceedings, including attorney’s fees and expenses, providing that the litigation or proceedings results in either a settlement requiring
VeriChip to make a payment to Executive or judgment in favor of Executive. 
  

 -11- 

 12. Mitigation. Executive will not be required to mitigate the amount of any payment
provided for hereunder by seeking other employment or otherwise, nor will the amount of any such payment be reduced by any compensation earned by Executive as the result of employment by another employer after the date Executive’s employment
hereunder terminates. 
 13. Remedies. (a) In the event of a breach of this Agreement, the nonbreaching Party may
maintain an action for specific performance against the Party who is alleged to have breached any of the terms of this Agreement. This subparagraph (a) of this Section 13 of this Agreement will not be construed to limit in any manner any
other rights or remedies an aggrieved Party may have by virtue of any breach of this Agreement. 
 (b) Each of the Parties has the right to
waive compliance with any obligation of this Agreement, but a waiver by any Party of any obligation will not be deemed a waiver of compliance with any other obligation or of its right to seek redress for any breach of any obligation on any
subsequent occasion, nor will any waiver be deemed effective unless in writing and signed by the Party so waiving. 
 14.
Consolidation, Merger or Sale of Assets. Subject to the terms of Section 8, this Agreement shall not preclude VeriChip from consolidating or merging into or with, or transferring all or substantially all of its assets to,
another corporation which, subject to the express written consent of Executive, which consent may be withheld for any reason or for no reason, may then assume this Agreement and all obligations and undertakings of VeriChip hereunder. In that event,
“VeriChip” will mean the other corporation and this Agreement will continue in full force and effect. 
  

 -12- 

 15. Attorney’s Representations. Executive acknowledges that VeriChip’
counsel, COOPER LEVENSON APRIL NIEDELMAN & WAGENHEIM, P.A., prepared this Agreement on behalf of and in the course of its representation of VeriChip, and that: 
  

	 	1.	Executive has been advised to seek the advice of independent counsel; and 

  

	 	2.	Executive has had the opportunity to seek and has, in fact, received the advice of independent counsel of his choosing. 

 16. Notices. Any notices required or permitted by this Agreement or by law to be served on, or delivered to, any Party to this
Agreement, shall be in writing and shall be signed by the Party giving or delivering it and sent by courier that guarantees overnight delivery, or by registered or certified mail, return receipt requested, addressed to the Party to whom any
communication under this Agreement is to be made. Notice given as provided herein shall be deemed to have been given on the mailing date and, unless otherwise provided herein, shall be effective from that date. Notice shall be sent to the respective
Party at the address set forth below. Any Party may change its address for purposes of receiving notices by furnishing notice of such change in the manner set forth above. 
  

			
	If to VeriChip:	  	
		
		  	VERICHIP CORP
		  	1690 South Congress Avenue- Suite 200
		  	Delray Beach, Florida 33445
		
	If to Executive:	  	Scott R. Silverman
		  	955 Iris Drive
		  	Delray Beach, Florida 33483

 17. Invalid Provisions. The invalidity or unenforceability of any particular
provision of this Agreement shall not affect the other provisions hereof, and the Agreement shall be construed in all respects as though such invalid or unenforceable provisions were omitted. 
  

 -13- 

 18. Assignment. This Agreement shall inure to the benefit of and be binding upon
VeriChip, its successors and assigns, and Executive. This Agreement, being for the personal services of Executive, shall not be assignable or subject to anticipation by Executive. 
 19. Amendments. The terms and provisions of this Agreement may not be modified except by written instrument duly executed by the
Parties. 
 20. Entire Agreement. This Agreement supersedes all other oral and written agreements between the Parties
with respect to the matters contained in this Agreement and, except as otherwise provided herein, this Agreement contains all of the covenants and agreements between the Parties with respect to those matters. 
 21. Law Governing Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.
Any terms and conditions of this Agreement which apply to Executive and/or govern Executive’s behavior after Executive’s termination of employment and/or after the termination of this Agreement shall automatically survive the termination
of this Agreement. 
 22. Consent to Jurisdiction and Venue. The Parties hereby consent and
submit to the jurisdiction and venue of any state or federal court within the State of Florida, Palm Beach County in any litigation arising out of this Agreement. 
 23. Captions and Gender. The headings contained in this Agreement are inserted for convenience and reference purposes only and are not intended to describe, interpret, define or limit the scope,
extent or intent of this Agreement or any provisions hereof, and shall not affect in any way the meaning or interpretation of this Agreement or any provisions hereof. All personal pronouns used in this Agreement shall include the other genders
whether used in the masculine or feminine or neuter gender, and the singular shall include the plural and vice versa whenever and as often as may be appropriate. 
  

 -14- 

 24. Counterpart Execution. This Agreement may be executed in two or more
counterparts either by facsimile or otherwise, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the Parties hereto have set their hands and seals as of the date set forth on the first page of this Agreement. 
  

					
	ATTEST:	 		 	VERICHIP CORP
			
	 /s/ Courtney Cady
	 		 	 /s/ Michael J. Feder 12/5/06

		 		 	By: Michael J. Feder, Vice President
			
	WITNESS:	 		 	EXECUTIVE:
			
	 /s/ Courtney Cady
	 		 	 /s/ Scott Silverman

		 		 	SCOTT R. SILVERMAN

  

 -15-

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