Document:

Exhibit 10.13

Exhibit 10.13

INTELLECTUAL PROPERTY SECURITY AGREEMENT

THIS INTELLECTUAL PROPERTY SECURITY AGREEMENT (the “Agreement”), dated as of August
31, 2010, is made by each of DESTRON FEARING CORPORATION, a Delaware corporation (“DFC”),
DIGITAL ANGEL CORPORATION, a Delaware corporation (“DOC”), DIGITAL ANGEL TECHNOLOGY
CORPORATION, a Minnesota corporation (“DATC”), FEARING MANUFACTURING CO., INC., a Minnesota
corporation (“FMC”), and GT ACQUISITION SUB, INC., a Minnesota corporation (“GTAS”
and together with DFC, DOC, DATC and FMC, collectively referred to as the “Grantors” and
each, a “Grantor”), in favor of TCI BUSINESS CAPITAL, INC., a Minnesota corporation
(“Lender”).

WHEREAS, pursuant to that certain Credit and Security Agreement dated as of the date hereof by
and between DFC (the “Borrower”) and Lender (as from time to time amended, restated,
supplemented or otherwise modified, the “Credit Agreement”), Lender has agreed to provide
financial accommodations to the Borrower;

WHEREAS, Lender is willing to enter into the Security Agreement, but only upon the condition,
among others, that each Grantor shall have executed and delivered to Lender this Agreement;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Grantor hereby agrees as follows:

SECTION 1. DEFINED TERMS.

(a) When used herein the following terms shall have the following meanings:

“Copyrights” means all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or unregistered and
whether published or unpublished, all registrations and recordings thereof, and all
applications in connection therewith, including all registrations, recordings and
applications in the United States Copyright Office, and the right to obtain all renewals of
any of the foregoing.

“Copyright Licenses” means all written agreements naming any Grantor as licensor or
licensee, granting any right under any Copyright, including the grant of rights to
manufacture, distribute, exploit and sell materials derived from any Copyright.

“General Intangibles” shall have the meaning provided thereto in Section 9-102 of
the UCC, as amended, restated or otherwise modified from time to time.

 

 

 

“Obligations” means, all loans, Advances, debts, liabilities, obligations, covenants
and duties owing by each Grantor and each of its Subsidiaries to Lender (or any corporation
that directly or indirectly controls or is controlled by or is under common control with
Lender), of every kind and description (whether or not evidenced by any note or other
instrument and whether or not for the payment of money or the performance or non-performance
of any act), direct or indirect, absolute or contingent, due or to become due, contractual
or tortious, liquidated or unliquidated, whether existing by operation of law or otherwise
now existing or hereafter arising including any debt, liability or obligation owing from any
Grantor and/or each of its Subsidiaries to others which Lender may have obtained by
assignment or otherwise and further including all interest (including interest accruing at
the then applicable rate provided in the Credit Agreement after the maturity of the Advances
and interest accruing at the then applicable rate provided in the Credit Agreement after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, whether or not a claim for post-filing or post-petition interest is
allowed or allowable in such proceeding), charges or any other payments each Grantor and
each of its Subsidiaries is required to make by law or otherwise arising under or as a
result of the Credit Agreement, the other Loan Documents or otherwise, together with all
reasonable expenses and reasonable attorneys’ fees chargeable to the Grantors’ or any of
their respective Subsidiaries’ accounts or incurred by Lender in connection therewith.

“Patents” means (a) all letters patent of the United States, any other country or
any political subdivision thereof, and all reissues and extensions of such letters patent,
(b) all applications for letters patent of the United States or any other county and all
divisions, continuations and continuations-in-part thereof, and (c) all rights to obtain any
reissues or extensions of the foregoing.

“Patent Licenses” means all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use or sell any invention covered in
whole or in part by a Patent.

“Trademarks” means (a) all trademarks, trade names, corporate names, business names,
fictitious business names, trade styles, services marks, logos and other source or business
identifiers, and all goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any similar office
or agency of the United States, any State thereof or any other country or political
subdivision thereof, or otherwise, and all common-law rights thereto, and (b) the right to
obtain all renewals thereof.

“Trademark Licenses” means, collectively, each agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark.

“UCC” shall have the meaning provided thereto in the Credit Agreement.

(b) All capitalized terms used but not otherwise defined herein have the meanings given to
them in the Credit Agreement.

 

 

 

SECTION 2. GRANT OF SECURITY INTEREST IN INTELLECTUAL PROPERTY COLLATERAL. To secure the
complete and timely payment of all the Obligations of such
Grantor now or hereafter existing from time to time, each Grantor hereby grants to Lender a
continuing first priority security interest in all of such Grantor’s right, title and interest in,
to and under the following, whether presently existing or hereafter created or acquired
(collectively, the “Intellectual Property Collateral”):

(a) all of its Patents and Patent Licenses to which it is a party including those referred to
on Schedule I hereto;

(b) all of its Trademarks and Trademark Licenses to which it is a party including those
referred to on Schedule II hereto;

(c) all of its Copyrights and Copyright Licenses to which it is a party including those
referred to on Schedule III hereto;

(d) all of the Patents, Trademarks and Copyrights identified in Schedule I,
Schedule II and Schedule III, respectively, that are material to its business or
operations, as referred to on Schedule IV hereto, said Schedule IV, together with
updated Schedules I, II and III, to be provided to Lender within 45 days of the execution of this
Agreement;

(e) all reissues, continuations or extensions of the foregoing;

(f) all goodwill of the business connected with the use of, and symbolized by, each Patent,
each Patent License, each Trademark, each Trademark License, each Copyright and each Copyright
License; and

(g) all products and proceeds of the foregoing, including, without limitation, any claim by
such Grantor against third parties for past, present or future (i) infringement or dilution of any
Patent or Patent licensed under any Patent License, (ii) injury to the goodwill associated with any
Patent or any Patent licensed under any Patent License, (iii) infringement or dilution of any
Trademark or Trademark licensed under any Trademark License, (iv) injury to the goodwill associated
with any Trademark or any Trademark licensed under any Trademark License, (v) infringement or
dilution of any Copyright or Copyright licensed under any Copyright License, and (vi) injury to the
goodwill associated with any Copyright or any Copyright licensed under any Copyright License.

SECTION 3. REPRESENTATIONS AND WARRANTIES. Each Grantor represents and warrants that
Grantor does not have any interest in, or title to, any Patent, Trademark or Copyright except as
set forth in Schedule I, Schedule II and Schedule III, respectively,
hereto. Grantor’s Patents, Trademarks and Copyrights are valid and enforceable, are solely owned by
Grantor and there is no claim that the use of any of them violates the rights of any third person.
No registered Patent listed in Schedule I hereto, and no registered Trademark listed on
Schedule II hereto, has been adjudged invalid or unenforceable by a court of competent
jurisdiction nor has any such patent been cancelled, in whole or in part, and each such Patent and
Tradmark (unless listed as expired) is presently subsisting. Each Grantor has the unqualified
right to execute and deliver this Agreement and perform its terms. This Agreement is effective to
create a valid and continuing lien on and perfected security interests in favor of Lender in all of
Grantor’s Patents, Trademarks and Copyrights and such perfected security interests are enforceable
as such as against any and all creditors of, and purchasers from, Grantor. Upon filing
of this Intellectual Property Security Agreement with the United States Patent and Trademark Office
and the United States Copyright Office and the filing of appropriate financing statements, all
action necessary or desirable to protect and perfect Lender’s Lien on each Grantor’s Patents,
Trademarks and Copyrights shall have been duly taken, including clearing up any gaps or
inaccuracies in the chain of title in the Patents, Trademarks and Copyrights identified in
Schedules I, II and III, respectively, at the sole cost of Grantor, which action shall take place
within 45 days of the execution of this Agreement.

 

 

 

SECTION 4. COVENANTS. Each Grantor covenants and agrees with Lender that from and after the
date of this Agreement:

(a) Grantor shall notify Lender immediately if it knows or has reason to know that any
application or registration relating to any Patent, Trademark or Copyright (now or hereafter
existing) that is material to the conduct of its business or operations may become abandoned or
dedicated, or of any adverse determination or development (including the institution of, or any
such determination or development in, any proceeding in the United States Patent and Trademark
Office, the United States Copyright Office or any similar foreign office or agency or any court)
regarding Grantor’s ownership of any Patent, Trademark or Copyright that is material to the conduct
of its business or operations, its right to register the same, or to keep and maintain the same.
If, before the Obligations shall have been satisfied in full or before the Loan Documents have been
terminated, Grantor shall (i) become aware of any patent applications or trademark applications
filed with the U.S. Patent and Trademark Office which are not in existence on the date hereof, (ii)
become aware of any existing registered Patents or registered Trademarks of which Grantor has not
previously informed the Lender, or (c) become entitled to the benefit of any registered Patents or
registered Trademarks, which benefit is not in existence on the date hereof, the provisions of this
Agreement above shall automatically apply thereto and Grantor shall give to the Lender prompt
written notice thereof.

(b) In the event Grantor, either directly or through any agent, employee, licensee or
designee, files an application for the registration of any Patent, Trademark or Copyright with the
United States Patent and Trademark Office or the United States Copyright Office or any similar
office or agency after the effective date of this Agreement, Grantor shall provide Lender written
notice thereof, and, upon request of Lender, Grantor shall execute and deliver a supplement hereto
(in form and substance satisfactory to Lender) to evidence Lender’s lien on such Patent, Trademark
or Copyright, and the General Intangibles of Grantor relating thereto or represented thereby.

(c) Grantor shall take all commercially reasonable actions necessary or requested by Lender to
maintain and pursue each application, to obtain the relevant registration and to maintain the
registration of each of the Patents or Trademarks (now or hereafter existing) which applications
and registrations are material to the conduct of its business or operations, including, but not
limited to, the filing of applications for renewal, affidavits of use, affidavits of
noncontestability and opposition and interference and cancellation proceedings. Grantor agrees to
execute and deliver such further agreements, instruments and documents, and to perform such further
acts, as Lender shall reasonably request from time to time in order to carry out the purpose of
this Security Agreement and agreements set forth herein. Lender may record this Agreement, an
abstract thereof, or any other document describing Lender’s interest in the Patents
and Trademarks with the U.S. Patent and Trademark Office, at the expense of Grantors. In
addition, each Grantor authorizes Lender to file financing statements describing the Intellectual
Property Collateral in any UCC filing office deemed appropriate by Lender. If any Grantor shall at
any time hold or acquire a commercial tort claim arising with respect to any one or more of the
Trademarks, such Grantor shall immediately notify Lender in a writing signed by such Grantor of the
brief details thereof and grant to the Lender in such writing a security interest therein and in
the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and
substance satisfactory to the Lender.

 

 

 

(d) In the event that any of the Intellectual Property that is material to the conduct of its
business or operations is infringed upon, or misappropriated or diluted by a third party, Grantor
shall notify Lender promptly after Grantor learns thereof. Grantor shall take all commercially
reasonable actions to protect such Intellectual Property and to seek any and all damages for such
infringement, misappropriation or dilution.

(e) Each Grantor agrees that until the Obligations shall have been satisfied in full and the
Credit Agreement shall have been terminated, such Grantor shall not, without the prior written
consent of Lender (which will not be unreasonably withheld, conditioned or delayed), sell or assign
its interest in any of the Intellectual Property Collateral, or enter into any other agreement with
respect to any Intellectual Property Collateral, which would affect the validity or enforcement of
the rights transferred to Lender under this Agreement.

SECTION 5. SECURITY AGREEMENT. The security interests granted pursuant to this Agreement
are granted in conjunction with the security interests granted to Lender by Borrower pursuant to
the Credit Agreement. Each Grantor hereby acknowledges and affirms that the rights and remedies of
Lender with respect to the security interest in the Intellectual Property Collateral made and
granted by Borrower herein are more fully set forth in the Credit Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth herein and shall
apply to all Grantors. Each Grantor agrees that following the occurrence and during the
continuance of an Event of Default under the Credit Agreement (a) the use by Lender (consistent
with its role and rights as a secured party) of any or all Intellectual Property Collateral shall
be without any liability for royalties or other related charges from Lender to any Grantor, and (b)
Lender shall have the right, but shall in no way be obligated, to bring suit in its own name, or in
the name of any Grantor, to enforce any Patents, Trademarks or Copyrights and, if Lender shall
commence any such suit, Grantor shall, at the request of Lender, do any and all lawful acts and
execute any and all proper documents reasonably required by Lender in aid of such enforcement and
the Grantor shall promptly, upon demand, reimburse and indemnify Lender for all costs and expenses
incurred by Lender in the exercise of its rights under this Section 5.

SECTION 6. REINSTATEMENT. This Agreement shall remain in full force and effect and continue
to be effective should any petition be filed by or against any Grantor for liquidation or
reorganization, should any Grantor become insolvent or make an assignment for the benefit of any
creditor or creditors or should a receiver or trustee be appointed for all or any significant part
of such Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any
obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or
otherwise, all as though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or
returned.

 

 

 

SECTION 7. INDEMNIFICATION.

(a) Each Grantor assumes all responsibility and liability arising from the use of the Patents,
Trademarks and/or Copyrights and each Grantor hereby indemnifies and holds Lender harmless from and
against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees) arising out
of such Grantor’s operations of its business from the use of the Patents, Trademarks and/or
Copyrights.

(b) In any suit, proceeding or action brought by Lender under any Patent License, Trademark
License or Copyright License for any sum owing thereunder, or to enforce any provisions of such
license, such Grantor will indemnify and keep Lender harmless from and against all expense, loss or
damage suffered by reason of any defense, set off, counterclaim, recoupment or reduction or
liability whatsoever of the obligee thereunder, arising out of a breach of any Grantor of any
obligation thereunder or arising out of any other agreement, indebtedness or liability at any time
owing to or in favor of such obligee or its successors from such Grantor, and all such obligations
of any Grantor shall be and remain enforceable against and only against such Grantor and shall not
be enforceable against Lender.

SECTION 8. NOTICES. Whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to or served upon any
of the parties by any other party, or whenever any of the parties desires to give and serve upon
any other party any communication with respect to this Agreement, each such notice, demand,
request, consent, approval, declaration or other communication shall be in writing and shall be
given in the manner, and deemed received, as provided for in the Credit Agreement.

SECTION 9. TERMINATION OF THIS AGREEMENT. Subject to Section 6 hereof, this
Agreement shall terminate upon payment in full in cash of all Obligations and irrevocable
termination of the Credit Agreement.

SECTION 10. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one instrument. It is
understood and agreed that if facsimile copies of this Agreement bearing facsimile signatures are
exchanged between the parties hereto, such copies shall in all respects have the same weight, force
and legal effect and shall be fully as valid, binding, and enforceable as if such signed facsimile
copies were original documents bearing original signature.

SECTION 11. EXPENSES. All reasonable expenses incurred in connection with the performance
of any of the covenant and agreements set forth herein shall be the joint and several liability of
each Grantor. All reasonable fees, costs and expenses, of whatever kind or nature, including
reasonable attorneys’ fees and legal expenses, incurred by Lender in connection with the filing or
recording of any documents (including all taxes in connection therewith) in public offices, the
payment or discharge of any taxes, reasonable counsel fees, maintenance fees,
encumbrances or otherwise in protecting, maintaining or preserving the Intellectual Property
Collateral or in defending or prosecuting any actions or proceedings arising out of or related to
the Intellectual Property Collateral shall be borne by and paid by the Grantors.

[Signature Page to Follow]

 

 

 

IN WITNESS WHEREOF, each Grantor has caused this Intellectual Property Security Agreement to
be executed and delivered by its duly authorized officer as of the date first set forth above.

	 	 	 	 	 
	 	DESTRON FEARING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Jason Prescott 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	DIGITAL ANGEL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Jason Prescott 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	DIGITAL ANGEL TECHNOLOGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Jason Prescott 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	FEARING MANUFACTURING CO., INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Jason Prescott 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	GT ACQUISITION SUB, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Jason Prescott 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

 

	 	 	 	 	 

Accepted this 31st day of August 2010.

TCI BUSINESS CAPITAL, INC.,

a Minnesota corporation

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name: Catherine Sedacca
	 	 
	 

	 	Title:   Chief Risk Officer	 	 

 

 

 

SCHEDULE I

Patent Registrations and Applications

REGISTRATIONS:

	 	 	 	 	 
	Patent Number/	 	Date of Patent/		 
	Publication Number	 	Publication Date	 	Description
	5,041,826	 	August 20, 1991	 	IDENTIFICATION SYSTEM

	 	 	 	 	 

	5,166,676	 	November 14, 1992	 	IDENTIFICATION SYSTEM

	 	 	 	 	 

	5,211,129	 	May 18, 1993	 	SYRINGE-IMPLANTABLE IDENTIFICATION TRANSPONDER

	 	 	 	 	 

	5,629,678	 	May 13, 1997	 	PERSONAL TRACKING AND RECOVERY SYSTEM

	 	 	 	 	 

	5,923,300	 	July 13, 1999	 	MULTI-PHASE TRANSMITTER WITH SINGLE RECEIVE ANTENNA FOR TRANSPONDER INTERROGATOR

	 	 	 	 	 

	5,952,935	 	September 14, 1999	 	PROGRAMMABLE CHANNEL SEARCH READER

	 	 	 	 	 

	6,184,777	 	February 6, 2001	 	APPARATUS AND METHOD FOR REMOTELY TESTING A PASSIVE INTEGRATED TRANSPONDER TAG INTERROGATION SYSTEM

	 	 	 	 	 

	6,369,694	 	April 9, 2002	 	APPARATUS AND METHOD FOR REMOTELY TESTING A PASSIVE INTEGRATED TRANSPONDER TAG INTERROGATION SYSTEM

	 	 	 	 	 

	6,400,338	 	June 4, 2002	 	PASSIVE INTEGRATED TRANSPONDER TAG WITH UNITARY ANTENNA CORE

	 	 	 	 	 

	6,559,620	 	May 6, 2003	 	SYSTEM AND METHOD FOR REMOTE MONITORING UTILIZING A RECHARGEABLE BATTERY

	 	 	 	 	 

	6,700,547	 	March 2, 2004	 	MULTIDIRECTIONAL WALKTHROUGH ANTENNA

	 	 	 	 	 

	6,720,930	 	April 13, 2004	 	OMNIDIRECTIONAL RFID ANTENNA

	 	 	 	 	 

	6,833,790	 	December 21, 2004	 	LIVESTOCK CHUTE SCANNER

	 	 	 	 	 

	6,847,892	 	January 25, 2005	 	SYSTEM FOR LOCALIZING AND SENSING OBJECTS AND PROVIDING ALERTS

 

 

 

	 	 	 	 	 
	Patent Number/	 	Date of Patent/		 
	Publication Number	 	Publication Date	 	Description
	6,947,004	 	September 20, 2005	 	PASSIVE INTEGRATED TRANSPONDER TAG WITH UNITARY ANTENNA CORE

	 	 	 	 	 

	7,015,826	 	March 21, 2006	 	METHOD AND APPARATUS FOR SENSING AND TRANSMITTING A BODY CHARACTERISTIC OF A HOST

	 	 	 	 	 

	7,176,846	 	February 13, 2007	 	PASSIVE INTEGRATED TRANSPONDER TAG WITH UNITARY ANTENNA CORE

	 	 	 	 	 

	7,125,382	 	October 24, 2006	 	EMBEDDED BIO-SENSOR SYSTEM

	 	 	 	 	 

	2004/0036626	 	February 26, 2004	 	INTERROGATION DEVICE AND METHOD FOR SCANNING

	 	 	 	 	 

	7,241,266	 	July 10, 2007	 	TRANSDUCER FOR EMBEDDED BIO-SENSOR USING BODY ENERGY AS A POWER SOURCE

	 	 	 	 	 

	7,297,112	 	November 20, 2007	 	EMBEDDED BIO-SENSOR SYSTEM

	 	 	 	 	 

	2008/0110065	 	May 15, 2008	 	SYSTEM AND METHOD FOR INK OVER LASER LABEL MARKING

	 	 	 	 	 

	2008/0180242	 	July 31, 2008	 	MICRON-SCALE IMPLANTABLE TRANSPONDER

	 	 	 	 	 

	2009/0102607	 	April 23, 2009	 	AUTOMATIC TUNING READER

	 	 	 	 	 

	2008/0033273	 	February 7, 2008	 	EMBEDDED BIO-SENSOR SYSTEM

	 	 	 	 	 

	2008/0186166	 	August 7, 2008	 	SYSTEMS AND METHODS FOR MONITORING AND TRACKING

	 	 	 	 	 

	5,483,441	 	January 9, 1996	 	SYSTEM FOR ANIMAL EVALUATION THROUGH IMAGE ACQUISITION

	 	 	 	 	 

	5,579,949	 	November 19, 1996	 	SYSTEM FOR ANIMAL EVALUATION THROUGH IMAGE ACQUISITION

	 	 	 	 	 

	5,644,643	 	July 1, 1997	 	CHUTE FOR USE WITH AN ANIMAL EVALUATION SYSTEM

	 	 	 	 	 

	6,974,373	 	December 13, 2005	 	APPARATUS AND METHODS FOR THE VOLUMETRIC AND DIMENSIONAL MEASUREMENT OF LIVESTOCK

 

 

 

	 	 	 	 	 
	Patent Number/	 	Date of Patent/		 
	Publication Number	 	Publication Date	 	Description
	7,039,220	 	May 2, 2006	 	METHODS AND APPARATUS FOR THE DIMENSIONAL MEASUREMENT OF LIVESTOCK USING A SINGLE CAMERA

	 	 	 	 	 

	7,214,128	 	May 8, 2007	 	APPARATUS AND METHODS FOR THE VOLUMETRIC AND DIMENSIONAL MEASUREMENT OF LIVESTOCK

	 	 	 	 	 

	2005/0257748	 	November 24, 2005	 	APPARATUS AND METHODS FOR THE VOLUMETRIC AND DIMENSIONAL MEASUREMENT OF LIVESTOCK

	 	 	 	 	 

	2006/0114109	 	June 1, 2006	 	RADIO FREQUENCY ANIMAL TRACKING SYSTEM

	 	 	 	 	 

	2007/0103314	 	May 10, 2007	 	RADIO FREQUENCY ANIMAL TRACKING SYSTEM

	 	 	 	 	 

	2007/0103315	 	May 10, 2007	 	FLEXIBLE ANIMAL TAG, PRINTING SYSTEM, AND METHODS

	 	 	 	 	 

	2009/0058730	 	March 5, 2009	 	ANIMAL MANAGEMENT SYSTEM INCLUDING RADIO ANIMAL TAG AND ADDITIONAL TRANSCEIVER(S)

	 	 	 	 	 

	2008/0314921	 	December 25, 2008	 	DISPENSING CONTAINER

	 	 	 	 	 

	D591,012	 	April 21, 2009	 	ANIMAL EAR TAG

	 	 	 	 	 

	2009/0058653	 	March 5, 2009	 	HOSPITAL INVENTORY MANAGEMENT INCLUDING RADIO TAG(S) AND ADDITIONAL TRANSCEIVER(S)

	 	 	 	 	 

	2009/0094869	 	April 16. 2009	 	ELECTRONIC TAG

	 	 	 	 	 

	2008/0100423	 	May 1, 2008	 	POWER MANAGEMENT IN RADIO FREQUENCY DEVICES

	 	 	 	 	 

	2010/0045468	 	February 25, 2010	 	RADIO FREQUENCY ANIMAL TRACKING SYSTEM

	 	 	 	 	 

	2009/0115578	 	May 7, 2009	 	RADIO FREQUENCY ANIMAL TRACKING SYSTEM

	 	 	 	 	 

	2010/0145354	 	June 10, 2010	 	ANIMAL TAG APPLICATOR

	 	 	 	 	 

	6,958,443	 	October 25, 2005	 	LOW POWER THERMOELECTRIC GENERATOR

 

 

 

	 	 	 	 	 
	Patent Number/	 	Date of Patent/		 
	Publication Number	 	Publication Date	 	Description
	7,629,531	 	December 8, 2009	 	LOW POWER THERMOELECTRIC GENERATOR

	 	 	 	 	 

	2009/0025771	 	January 29, 2009	 	LOW POWER THERMOELECTRIC GENERATOR

	 	 	 	 	 

	7,626,114	 	December 1, 2009	 	THERMOELECTRIC POWER SUPPLY

	 	 	 	 	 

	2009/0025773	 	January 29, 2009	 	THERMOELECTRIC GENERATOR WITH MICRO-ELECTROSTATIC ENERGY CONVERTER

	 	 	 	 	 

	7,619,522	 	November 17, 2009	 	RADIO FREQUENCY ANIMAL TRACKING SYSTEM

PATENT APPLICATIONS:

None.

 

 

 

SCHEDULE II

Trademark Registrations and Applications

REGISTRATIONS:

	 	 	 	 	 
	Registration Number /	 	Registration Date /	 	 
	Serial Number	 	Filing Date	 	Description of Mark
	3,453,310	 	June 24, 2008	 	MISCELLANEOUS DESIGN

	 	 	 	 	 

	3,523,900	 	October 28, 2008	 	DF DESTRON FEARING (STYLIZED)

	 	 	 	 	 

	3,523,932	 	October 28, 2008	 	DF DESTRON FEARING

	 	 	 	 	 

	3,523,933	 	October 28, 2008	 	DF (STYLIZED)

	 	 	 	 	 

	3,734,788	 	January 5, 2010	 	DF

	 	 	 	 	 

	3,737,766	 	January 12, 2010	 	DF DESTRON FEARING (STYLIZED)

	 	 	 	 	 

	1,990,445	 	July 30, 1996	 	BIOBOND

	 	 	 	 	 

	3,181,478	 	December 5, 2006	 	BIO-THERMO

	 	 	 	 	 

	3,743,456	 	January 26, 2010	 	COOLTAGS

	 	 	 	 	 

	3,743,457	 	January 26, 2010	 	COOLTAGS

	 	 	 	 	 

	3,763,082	 	March 23, 2010	 	CHOICESETS

	 	 	 	 	 

	77-683,903	 	March 5, 2009	 	DARK & DURABLE

	 	 	 	 	 

	77-683,922	 	March 5, 2009	 	DARK & DURABLE

	 	 	 	 	 

	1,476,570	 	February 16, 1988	 	DESTRON

	 	 	 	 	 

	3,453,311	 	June 24, 2008	 	DESTRON FEARING

	 	 	 	 	 

	3,453,312	 	June 24, 2008	 	DESTRON FEARING

	 	 	 	 	 

	2,616,010	 	September 3, 2002	 	DIGITAL ANGEL

	 	 	 	 	 

	1,427,509	 	February 3, 1987	 	DUFLEX (STYLIZED)

	 	 	 	 	 

	77-800,704	 	August 10, 2009	 	DURA-FLEX

	 	 	 	 	 

	2,566,303	 	April 30, 2002	 	E.TAG

	 	 	 	 	 

	77-663,529	 	February 4, 2001	 	E2.TAG

 

 

 

	 	 	 	 	 
	Registration Number /	 	Registration Date /	 	 
	Serial Number	 	Filing Date	 	Description of Mark
	2,312,960	 	February 1, 2000	 	FEARING

	 	 	 	 	 

	1,931,470	 	October 31, 1995	 	HOG MAX

	 	 	 	 	 

	1,828,749	 	March 29, 1994	 	INFECTA GUARD

	 	 	 	 	 

	1,801,443	 	October 26, 1993	 	LIFECHIP

	 	 	 	 	 

	2,822,415	 	March 16, 2004	 	LITTER MAX

	 	 	 	 	 

	2,831,909	 	April 13, 2004	 	PIGSMART

	 	 	 	 	 

	2,694,912	 	March 11, 2003	 	POCKET READER

	 	 	 	 	 

	1,975,502	 	May 21, 1996	 	POCKET READER

	 	 	 	 	 

	2,089,768	 	August 19, 1997	 	POCKET READER EX

	 	 	 	 	 

	1,849,931	 	August 16, 1994	 	MISCELLANEOUS DESIGN (TAB DESIGN)

	 	 	 	 	 

	85-011,875	 	April 12, 2010	 	CALF CHECK AND DESIGN

	 	 	 	 	 

	85-011,886	 	April 12, 2010	 	PIG CHECK AND DESIGN

	 	 	 	 	 

	85-079,121	 	July 7, 2010	 	CLARID

	 	 	 	 	 

	3,587,768	 	March 10, 2009	 	C-SCAN

	 	 	 	 	 

	3,537,810	 	November 25, 2008	 	G2.TAG

	 	 	 	 	 

	3,502,370	 	September 16, 2008	 	R.TAG

	 	 	 	 	 

	3,482,628	 	August 5, 2008	 	MICRO.TAG

	 	 	 	 	 

	3,616,710	 	May 5, 2009	 	M.TAG

	 	 	 	 	 

	3,310,113	 	October 9, 2007	 	GEISSLER

	 	 	 	 	 

	1,354,903	 	August 20, 1985	 	DECKEM

	 	 	 	 	 

	2,833,021	 	April 13, 2004	 	DIGITAG

	 	 	 	 	 

	1,735,617	 	November 24, 1992	 	INFODEX

	 	 	 	 	 

	2,861,760	 	July 6, 2004	 	SNAPTAG

	 	 	 	 	 

	3,330,767	 	November 6, 2007	 	VETERINARY SCIENCE TECHNOLOGY FOR THE ANIMAL EMPIRE

 

 

 

TRADEMARK APPLICATIONS:

	 	 	 	 	 
	Application Number	 	Application Date	 	Description of Mark
	85/079,078	 	July 7, 2010	 	GNETXID

	 
	85/079,077	 	July 7, 2010	 	GNXTAG

TRADEMARK LICENSES:

None.

 

 

 

SCHEDULE III

Copyright Registrations and Applications

Copyrights:

None.

Copyright Applications:

None.

Copyright Licenses:

None.Exhibit 10.14

Exhibit 10.14

VALIDITY GUARANTY AGREEMENT

(Individual)

In order to induce TCI BUSINESS CAPITAL, INC., a Minnesota corporation (hereinafter called
“TCI”) to enter into a certain Credit and Security Agreement (hereinafter called “Credit
Agreement”) effective as of the date hereof with DESTRON FEARING CORPORATION, a Delaware
corporation (hereinafter called “Client”) and/or to continue under and at the same time to refrain
from terminating TCI’s present Credit Agreement with the Client, and in consideration of TCI’s so
doing and/or in consideration of any fundings, advances, payments, extensions of credit, benefits
or financial accommodations heretofore or hereafter made, granted or extended by TCI or which TCI
has or will make, grant or extend to or for the account of the Client whether under the Credit
Agreement or otherwise, and/or in consideration of any obligation heretofore or hereafter incurred
by the Client to TCI whether under the Credit Agreement or otherwise, and for other good and
valuable consideration, the nature and receipt of which is hereby acknowledged, the undersigned and
each of them, jointly and severally (hereinafter referred to, whether one or more, as the
“undersigned”) unconditionally guarantee to TCI and agree to be primarily liable to TCI for any and
all indebtedness, obligations, liabilities and sums which are or shall in the future become due and
owing to TCI as a result of TCI advancing against accounts under the terms of the Credit Agreement
that are, to the actual knowledge of any of the undersigned, fraudulent, falsified or invalid
(collectively, the “Guaranteed Obligations”). It is expressly understood and agreed that in no
event will the undersigned be liable to TCI for any consequential damages, damages for lost profits
or punitive damages. Each of the undersigned covenants and agrees to promptly notify TCI if and
when such undersigned has actual knowledge that TCI has advanced against accounts under the terms
of the Credit Agreement that are fraudulent, false or invalid.

All sums at any time to the credit of the undersigned and any property of the undersigned at
any time in TCI’s possession or in which TCI has a lien or security interest shall be deemed held
by TCI as security for any and all of the undersigned’s obligations to TCI, no matter how or when
arising and whether under this or any other instrument, agreement or other document given to TCI.
To the fullest extent permitted by applicable law, the undersigned hereby waives notice of
acceptance hereof and all notices and demands of any kind to which the undersigned as guarantor(s)
may be entitled, including without limitation all demands of payment on and notice of nonpayment,
presentation, protest and dishonor to the undersigned, or other obligors of any instrument
including the Credit Agreement for which the undersigned is or may be liable hereunder. The
undersigned further waives notice of and hereby consents to any agreements or arrangements whatever
with the Client or anyone else, including, without limitation, agreements and arrangements for
payment extensions, subordination, composition, arrangement, discharge or release of the whole or
any part of the Guaranteed Obligations or for the change or surrender of any or all security, or
for compromise, whether by way of acceptance of part payment or of returns of merchandise or of
dividends or in any other way whatsoever, and the same shall in no way impair the undersigned’s
liability hereunder.

 

 

 

Unless and until all indebtedness, obligations and liabilities owed by the Client to TCI have
been indefeasibly paid in cash and the Credit Agreement has terminated, the undersigned hereby
irrevocably agrees not to assert or enforce any claim or other right which the undersigned
may now or hereafter acquire against the Client that arises from the existence or performance
of the undersigned’s obligations under this agreement, the Credit Agreement or any agreement or
document entered into in connection therewith, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any right to participate in
any claim or remedy of TCI against the Client or any collateral granted as security for any of the
undersigned’s obligations under this agreement which TCI has acquired or may hereafter acquire,
whether or not such claim, remedy or right arises in equity or under contract, statute or common
law, by any payment made hereunder or otherwise, including, without limitation, the right to take
or receive from the Client, directly or indirectly, in cash or other property or by set off or in
any other manner, payment of security on account of such claim or other right. The undersigned
hereby irrevocably agrees that the undersigned shall not (i) accept payment from the Client
pursuant to any right of subrogation, reimbursement, exoneration, contribution, indemnification or
claim on account of any payment made hereunder, under the Credit Agreement or under any other
contract or agreement between the Client and TCI or (ii) take any action to exercise or enforce any
such right unless and until all indebtedness, obligations and liabilities owed by the Client to TCI
have been indefeasibly paid in cash and the Credit Agreement has terminated. If any amount shall
be paid to the undersigned in violation of the provisions of this paragraph and the obligations
guaranteed hereunder shall not have been paid in full, such amount shall be deemed to have been
paid to such person for the benefit of, and held in trust for TCI and shall forthwith be paid to
TCI and applied to such obligations, whether matured or unmatured, in such order as TCI may
determine.

Nothing shall discharge or satisfy the liability of the undersigned hereunder except the full
performance and payment of all the Guaranteed Obligations. TCI’s books and records showing the
account of the Client with TCI shall be admissible in evidence in any action or proceeding, and any
statement of the Client’s account which is rendered to the Client shall, to the extent to which no
objection is made within fifteen (15) days after the date that such statement was rendered to
Client constitute an account between the Client and TCI and be binding upon the undersigned absent
manifest error. This instrument is a continuing guarantee which shall remain in full force and
effect and shall not be terminable so long as the Credit Agreement with the Client or any renewals,
continuations, modifications, supplements and amendments thereto or any obligation thereunder shall
remain in full force and effect; provided, however, that if any of the undersigned shall
cease to be employed by the Client (or, in the case of Jason Prescott, cease to be the chief
financial officer of the Client) and shall have given notice of such cessation to TCI before the
occurrence of the event or condition that would otherwise give rise to liability hereunder, then
such undersigned shall not have liability hereunder by reason of such event or condition. No
invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of
any of the security therefor shall affect or impair the guarantee of the undersigned hereunder.
The obligations hereunder shall constitute primary and not secondary obligations. THE UNDERSIGNED,
IN RECOGNITION OF THE GREATER COSTS AND DELAYS INCURRED BY A JURY TRIAL, HEREBY WAIVES ANY AND ALL
RIGHT TO A TRIAL BY A JURY IN ANY JURISDICTION IN ANY COURT IN ANY ACTION BASED HEREON. The
undersigned hereby consents to the exclusive jurisdiction of any court of competent jurisdiction of
the State of Minnesota for a determination of any dispute as to any matters whatsoever arising out
of or in any way connected with this agreement and authorize the service of process on the
undersigned by certified or registered mail sent to the undersigned at the address of the
undersigned set forth below.

 

2

 

No delay on TCI’s part in exercising any of TCI’s options, powers or rights, or partial or
singular exercise thereof, shall constitute a waiver hereof. No waiver of any of TCI’s rights
hereunder and no modification or amendment of this agreement, shall be deemed to be made by TCI
unless the same shall be in writing, duly signed on TCI’s behalf by an authorized officer, and each
such waiver, if any, shall apply only with respect to the specific instance involved, and shall in
no way impair TCI’s rights or the obligations of the undersigned to TCI in any other respect at any
other time. This instrument cannot be changed or terminated orally, and shall be interpreted
according to the laws of the State of Minnesota the place of origin of this agreement, and this
agreement shall be binding on the administrators, successors and assigns of the undersigned and
shall inure to the benefit of TCI and its successors and assigns.

If for any reason any portion of this agreement or a related document is deemed or ruled to be
invalid for any reason whatsoever, then in such event all other portions of this agreement and
related documents shall remain in full force and effect.

The undersigned jointly and severally agree that the Lender shall be entitled to prompt
reimbursement from the undersigned of the Lender’s actual out-of-pocket costs and expenses
(including, without limitation, its reasonable attorneys’ fees and legal expenses) incurred in
connection with enforcing this agreement.

IN WITNESS WHEREOF, this agreement has been duly executed by the undersigned on 
this 31st day of August, 2010.

	 	 	 
	 

	 	 
	 

	 	Jason Prescott

	 	 	 	 	 	 	 	 	 
	STATE OF                            
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	 	ss
	COUNTY OF                            
	 	 	)	 	 	 	 	 

On the
 _____ 
day of                     , 2010, before me came Jason Prescott, to me
known as the individual(s) described in and who executed the foregoing Validity Guaranty Agreement,
and acknowledged the execution of the same as their free act and deed.

Notary Public:                                                                 

My commission expires:                                     

[Notarial Seal]

 

3

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