Document:

Exhibit 10.1

    
      

    

    Exhibit
      10.1 

     

    THIRD
      AMENDMENT TO 

    COMMERCIAL
      LOAN AGREEMENT 

     

    This
      THIRD AMENDMENT TO COMMERCIAL LOAN AGREEMENT, dated as of February 8, 2007
      (this “Third Amendment”), is between VERICHIP
      CORPORATION,
      a
      Delaware corporation (the “Borrower”), and APPLIED
      DIGITAL SOLUTIONS, INC.,
      a
      Missouri corporation (the “Lender”). 

     

    Recitals:
      

     

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

     

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

     

    WHEREAS,
      on January 19, 2007, the Borrower and the Lender entered into a Second
      Amendment to Commercial Loan Agreement pursuant to which Lender increased the
      principal amount of the Loan by One Million Five Hundred Thousand Dollars
      ($1,500,000.00) in order to meet the Borrower’s working capital needs and IPO
      costs; 

     

    WHEREAS,
      Borrower has requested and Lender has agreed, subject to the terms and
      conditions set forth herein, to amend the payment terms under the Second
      Amendment to Commercial Loan Agreement; 

     

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

     

    Agreement.
      

     

    
      	
              1.

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

            

    

     

    
      	
              2.

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

            

    

     

    
      	
              3.

            	
              Amendments:
                The following section of the Agreement is hereby amended as follows:
                

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    a.
      Termination
      of Revolver.
      Upon
      the consummation of an IPO, without further need to amend the Agreement, Section
      I.C. of the Agreement shall be deleted and replaced with the following: “C.
Termination
      of Revolver.
      Notwithstanding anything contained in this Section 1 or elsewhere to the
      contrary, from and after the initial public offering of the Borrower’s common
      stock and the payment by Borrower of the Three Million Five Hundred Thousand
      Dollars ($3,500,000.00) as required under the Third Amended and Restated
      Revolving Line of Credit Note, Borrower shall not be entitled to reborrow any
      amounts hereunder and the Loans shall thereafter be considered a term loan
      payable in accordance with the terms of such note.” 

     

    
      	
              4.

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

            

    

     

    a.
      This
      Third Amendment; 

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

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

     

    
      	
              5.

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

            

    

    
      	
              6.

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

            

    

     

    
      	
              7.

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

            

    

     

    
      	
              8.

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

            

    

     

    [Signature
      Page to Follow] 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

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

     

    

    
      	 	
              BORROWER:

            
	 	 
	 	
              VERICHIP
                CORPORATION, a Delaware corporation

            
	 	 	 
	 	
              By:

            	
              /s/
                William J. Caragol

            
	 	
              Print Name:

            	
              William
                J. Caragol

            
	 	
              Title:

            	
              Chief
                Financial Officer

            
	 	 	 
	 	
              LENDER:

            
	 	 
	 	
              APPLIED
                DIGITAL SOLUTIONS, INC.,

            
	 	
              a
                Missouri corporation

            
	 	 	 
	 	
              By:

            	
              /s/
                Lorraine Breece

            
	 	
              Print Name:

            	
              Lorraine
                Breece

            
	 	
              Title:

            	
              Senior
                Vice President and Chief Accounting
                OfficerExhibit 10.2

    
      

    

    Exhibit
      10.2 

     

    THIRD
      AMENDED AND RESTATED 

    REVOLVING
      LINE OF CREDIT NOTE 

    WORKING
      CAPITAL 

     

    
      	
              $14,500,000.00
                U.S. 

            	
              February 8, 2007
                

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, VeriChip Corporation, a Delaware corporation with
      a
      principal place of business at 1690 South Congress Avenue, Suite 200, Delray
      Beach, Florida 33445 (the “Borrower”), hereby promises to pay to the order of
      Applied Digital Solutions, Inc., a Missouri corporation located at 1690 South
      Congress Avenue, Suite 200, Delray Beach, Florida 33445 (the “Lender”), at such
      address, or such other place or places as the holder hereof may designate in
      writing from time to time hereafter, the maximum principal sum of Fourteen
      Million Five Hundred Thousand Dollars ($14,500,000.00), or, if less, so much
      thereof as may be advanced or readvanced by the Lender to the Borrower pursuant
      to the terms of the Loan Agreement (as hereinafter defined), together with
      interest as provided for herein below, in lawful money of the United States
      of
      America. 

     

    Interest
      shall be calculated on the unpaid principal balance outstanding from time to
      time at a fixed rate equal to twelve percent (12%) per annum (the “Interest
      Rate”). The Interest Rate will apply to the outstanding amount under the Loan
      Agreement and this Third Amended and Restated Revolving Line of Credit Note
      (the
“Note”) effective from and after October 6, 2006 which is the date of the
      Amended and Restated Revolving Line of Credit Note in the principal amount
      of
      $13,000,000.00 from the Borrower in favor of the Lender (the “Amended and
      Restated Note”). For avoidance of doubt, the interest rate described in the
      Revolving Line of Credit Note dated December 27, 2005 in the principal
      amount of $8,500,000.00 from the Borrower in favor of the Lender (the “Original
      Note”) applied to the outstanding amounts under the Original Note prior to the
      date of the Amended and Restated Note. 

     

    Effective
      upon the payment of the Three Million Five Hundred Dollars ($3,500,000) pursuant
      to (a) below, interest on this Note shall continue to accrue at the
      Interest Rate, and the interest which has accrued on this Note as of the last
      day of each month, commencing with the month in which the payment pursuant
      to
      (a) below is made through the date on which the principal amount of this
      Note has been repaid in full, shall be added to the principal amount of this
      Note. 

     

    The
      Borrower shall make the following payments: 

     

    (a)
      Three
      Million Five Hundred Thousand Dollars ($3,500,000) within ten (10) days
      after the consummation of an initial public offering of the Borrower’s common
      stock pursuant to an effective registration statement filed with the Securities
      and Exchange Commission (an “IPO”). 

     

    (b)
      Assuming the consummation of the IPO described in (a) above occurs, Three
      Hundred Thousand Dollars ($300,000) on the first day of each month commencing
      in
      January 2008 through January 2010; and 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)
      one
      final balloon payment on February 1, 2010, equal to the outstanding
      principal amount then due under the Loans and the other Obligations, plus all
      accrued and unpaid interest and any fees or expenses outstanding. 

     

    Notwithstanding
      the above payment schedule, in the event an IPO is not consummated on or before
      July 1, 2008, the outstanding principal amount then due under the Loans and
      the other Obligations, plus all accrued and unpaid interest and any fees or
      expenses outstanding, shall be due and payable on July 1, 2008, unless
      extended pursuant to the terms of the Loan Agreement. 

     

    All
      payments made hereunder shall be applied first to any then unpaid, but accrued,
      interest and then to principal. 

     

    The
      Note
      is issued under, and is subject to, the Commercial Loan Agreement dated
      December 27, 2005, as amended by that First Amendment to Commercial Loan
      Agreement dated October 6, 2006, that Second Amendment to Commercial Loan
      Agreement dated January 19, 2007, and that Third Amendment to Commercial
      Loan Agreement dated February 8, 2007, between the Borrower and the Lender,
      as it may be amended from time to time (the “Loan Agreement”). The holder of
      this Note is entitled to all of the benefits and rights of the Lender under
      the
      Loan Agreement. However, neither this reference to the Loan Agreement nor any
      provision thereof shall impair the absolute and unconditional obligation of
      the
      undersigned to pay the principal and interest on this Note as herein provided.
      Any capitalized term used in this Note that is not otherwise expressly defined
      herein shall have the meaning ascribed thereto in the Loan Agreement.

     

    The
      holder may impose upon the undersigned a delinquency charge of $35.00 or five
      percent (5.00%) of the amount of the principal and/or interest payment not
      paid on or before the thirtieth (30th) day after such installment is due,
      whichever is greater. The entire principal balance hereof, together with accrued
      interest, shall after maturity, whether by demand, acceleration or otherwise,
      bear interest at the contract rate of this Note plus an additional three percent
      (3.00%) per annum. Upon default by Borrower under the terms of this Note or
      any other Loan Documents, interest shall accrue at a variable rate equal to
      the
      contract rate of this Note plus three percent (3.00%). 

     

    The
      undersigned agrees to pay on demand all reasonable out-of-pocket costs of
      collection hereof, including court costs, service fees, and reasonable
      attorney’s fees, whether or not any foreclosure or other action is instituted by
      the holder in its discretion. 

     

    The
      word
“holder”, as used in this Note, shall mean the payee or endorsee of this Note
      who is in possession of it, or the bearer, if this Note is at that time payable
      to the bearer. 

     

    The
      indebtedness evidenced by this Note is secured by the Loan Documents as defined
      in the Loan Agreement. Any default by the undersigned under the Loan Documents
      shall constitute a default under this Note entitling the holder to declare
      the
      entire principal amount of the indebtedness evidenced hereby, together with
      all
      accrued interest thereon, immediately due and payable. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    No
      delay
      or omission on the part of the holder in exercising any right, privilege or
      remedy shall impair such right, privilege or remedy or be construed as a waiver
      thereof or of any other right, privilege or remedy. No waiver of any right,
      privilege or remedy or any amendment to this Note shall be effective unless
      made
      in writing and signed by the holder. Under no circumstances shall an effective
      waiver of any right, privilege or remedy on any one occasion constitute or
      be
      construed as a bar to the exercise of or a waiver of such right, privilege
      or
      remedy on any future occasion. The acceptance by the holder hereof of any
      payment after any default hereunder shall not operate to extend the time of
      payment of any amount then remaining unpaid hereunder or constitute a waiver
      of
      any rights of the holder hereof under this Note. 

     

    All
      rights and remedies of the holder, whether granted herein or otherwise, shall
      be
      cumulative and may be exercised singularly or concurrently, and the holder
      shall
      have, in addition to all other rights and remedies, the rights and remedies
      of a
      secured party under the Uniform Commercial Code of New Hampshire. The holder
      shall have no duty as to the collection or protection of the Collateral or
      of
      any income thereon, or as to the preservation of any rights pertaining thereto
      beyond the safe custody thereof. Surrender of this Note, upon payment or
      otherwise, shall not affect the right of the holder to retain the Collateral
      as
      security for the payment and performance of any other liability of the
      undersigned to the holder. 

     

    Every
      maker, endorser, or guarantor of this Note, or the obligations represented
      by
      this Note, waives all exemption rights, valuation and appraisement, presentment,
      protest and demand, demand for payment, notice of dishonor and protest and
      all
      other demands and notices in connection with the delivery, acceptance,
      performance, default or enforcement of this Note, and assents to any extension
      or postponement of the time of payment or any other indulgence, to any
      substitution, exchange or release of Collateral, and/or to the addition or
      release of any other party or person primarily or secondarily liable.

     

    This
      Note
      may be prepaid in whole or in part without penalty. 

     

    This
      Note
      and the provisions hereof shall be binding upon the undersigned and the
      undersigned’s heirs, administrators, executors, successors, legal
      representatives and assigns and shall inure to the benefit of the holder, the
      holder’s heirs, administrators, executors, successors, legal representatives and
      assigns. 

     

    This
      Note
      amends and restates the Second Amended and Restated Revolving Line of Credit
      Note. This Note may not be amended, changed or modified in any respect except
      by
      a written document that has been executed by each party. This Note constitutes
      a
      New Hampshire sealed instrument and contract to be governed by the laws of
      such
      state and to be paid and performed therein. 

     

    IN
      THE
      PRESENCE OF: 

     

    
      	 	 	
              VeriChip
                Corporation

            
	 	 	 
	 	 	 	 
	/s/
Frank
              Cupido	 	
              By:

            	
              /s/
                William J. Caragol

            
	Frank
              Cupido	 	 	
              Print
                Name: William J. Caragol

            
	 	 	 	
              Title:
                Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]