Document:

FORM
OF EXCHANGE AGREEMENT

 

THIS
EXCHANGE AGREEMENT (the “Agreement”) is dated as of August 11, 2016, by and between POSITIVEID CORPORATION,
a Delaware corporation (the “Company”), and [  ] (the “Shareholder”).

 

WHEREAS:

 

A.
 On [ ], the Company issued to the shareholder [  ] shares of the Company’s Series I convertible Preferred Stock (the
“Series I Convertible Preferred Stock”), for a total of [  ] shares of Series I Convertible Preferred Stock.

 

B.
 On July 25, 2016, the Company filed a Certificate of Designations of Preferences, Rights and Limitations (the “Certificate
of Designations”) to designate 3,000 shares as Series II Convertible Preferred Stock (the “Series II Convertible
Preferred Stock”);

 

C.
 The exchange of the Series I Convertible Preferred and Series II Convertible Preferred is being made in reliance upon the
exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended (the “1933 Act”).

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree
as follows:

 

 1. EXCHANGE.

 

1.1
 Exchange. Subject to the satisfaction or waiver of the conditions with respect to the Closing set forth in Sections
5 and 6 below, at the Closing the Shareholder and the Company shall, pursuant to Section 3(a)(9) of the 1933 Act, exchange the
Series I convertible Preferred Stock and shall receive a certificate for [ ] shares of Series II Convertible Preferred Stock (the
“Exchange”). In exchange for the stock certificate representing the Series I Convertible Preferred Stock along
with stock powers appropriately endorsed within three (3) business days of receipt by the Company from the Shareholder of such
certificate, the Company shall deliver or cause to be delivered to the Shareholder a certificate representing the Series II Convertible
Preferred and such shares of Series I Convertible Preferred Stock shall be null and void and any and all rights arising thereunder
shall be extinguished.

 

2.
 COMPANY REPRESENTATIONS AND WARRANTIES.

 

2.1
 Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its
obligations under this Agreement and to issue the Series II Convertible Preferred Stock in accordance with the terms hereof and
thereof. The execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated
hereby and thereby, including, without limitation, the issuance of the reservation for issuance and issuance of Common Stock issuable
upon conversion of the Series II Convertible Preferred Stock, have been duly authorized by the Company’s Board of Directors
and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This
Agreement has been duly executed and delivered by the Company, and constitutes the legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to
indemnification and to contribution may be limited by federal or state securities laws.

 

2.2
 No Conflict. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance
of the Common Stock upon conversion of the Series II Convertible Preferred Stock) will not (i) result in a violation of the articles
of incorporation or other organizational documents of the Company or any of its subsidiaries, any capital stock of the Company
or any of its subsidiaries or bylaws of the Company or any of its subsidiaries, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries
is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal
and state securities laws and applicable to the Company or any of its subsidiaries or by which any property or asset of the Company
or any of its subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations
that could not reasonably be expected to have a material adviser effect on the Company or its subsidiaries.

 

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2.3
 Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Shareholder contained
herein, the offer and issuance by the Company of the (i) Series II Convertible Preferred Stock is exempt from registration pursuant
to the exemption provided by Section 3(a)(9) of the 1933 Act and (ii) Default Shares is exempt from registration pursuant to the
exemption provided by Rule 506 of Regulation D promulgated under the 1933 Act.

 

2.4
 Issuance of Securities. The issuance of the Series II Convertible Preferred Stock is duly authorized and upon issuance
in accordance with the terms of this Agreement, shall be validly issued, fully paid and non-assessable and free from all taxes,
liens, charges and other encumbrances with respect to the issue thereof. Upon conversion of the Series II Convertible Preferred
Stock in accordance with the Certificate of Designations, the Common Stock issuable upon such conversion, when issued, will be
validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances
with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

 

2.5
 Transfer Taxes. On the Closing Date, all share transfer or other taxes (other than income or similar taxes) which are
required to be paid in connection with the issuance of the Series II Convertible Preferred Stock to be exchanged with the Shareholder
hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will
have been complied with.

 

3.
 SHAREHOLDER ‘S REPRESENTATIONS AND WARRANTIES.

 

As
a material inducement to the Company to enter into this Agreement and consummate the exchange, Shareholder represents, warrants
and covenants with and to the Company as follows:

 

3.1 Authorization
and Binding Obligation. The Shareholder has the requisite legal capacity, power and authority to enter into, and perform under,
this Agreement, and to purchase the Series II Convertible Preferred being issued o such Shareholder hereunder and thereunder.
The execution, delivery and performance of this Agreement and performance under this Agreement by such Shareholder and the consummation
by such Shareholder of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate,
partnership or similar action on the part of such Shareholder and no further consent or authorization is required. This Agreement
has been duly authorized, executed and delivered. This Agreement has been duly executed and delivered by the Shareholder, and
constitute the legal, valid and binding obligations of the Shareholder, enforceable against the Shareholder in accordance with
their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or
state securities laws.

 

3.2
 Beneficial Owner. With respect to the Series I Convertible Preferred Stock (i) the Shareholder owns, beneficially and
of record, good and marketable title to the Series I Convertible Preferred Stock free and clear of any taxes or encumbrances;
(ii) the Series I Convertible Preferred Stock is not subject to any transfer restriction, other than the restriction that the
Series I convertible Preferred Stock has not been registered under the 1933 Act and, therefore, cannot be resold unless registered
under the 1933 Act or in a transaction exempt from or not subject to the registration requirements of the 1933 Act; (iii) the
Shareholder has not entered into any agreement or understanding with any person or entity to dispose of the Series I Convertible
Preferred Stock and (iv) at the Closing, the Shareholder will convey to the Company good and marketable title to the Series I
Convertible Preferred Stock, free and clear of any security interests, liens, adverse claims, encumbrances, taxes or encumbrances.

 

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3.3 Accredited
Shareholder. Such Shareholder is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933
Act.

 

3.4 Purchase
Entirely for Own Account. The Series II Convertible Preferred Stock to be received by such Shareholder hereunder will be acquired
for such Shareholder’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part
thereof in violation of the 1933 Act, and such Shareholder has no present intention of selling, granting any participation in,
or otherwise distributing the same in violation of the 1933 Act without prejudice, however, to such Shareholder’s right
at all times to sell or otherwise dispose of all or any part of such securities in compliance with applicable federal and state
securities laws. Nothing contained herein shall be deemed a representation or warranty by such Shareholder to hold the
Securities for any period of time. Such Shareholder is not a broker-dealer registered with the SEC under the 1934 Act or an entity
engaged in a business that would require it to be so registered.

 

3.5 Disclosure
of Information. Such Shareholder has had an opportunity to receive all information related to the Company requested by it
and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions
of the offering of the Securities. Such Shareholder acknowledges receipt of copies of the Company’s most recent Annual Report
on Form 10-K for its last fiscal year and all other reports filed by the Company pursuant to the 1934 Act since the filing of
the 10-K and prior to the date hereof. Neither such inquiries nor any other due diligence investigation conducted by such Shareholder
shall modify, amend or affect such Shareholder ‘s right to rely on the Company’s representations and warranties contained
in this Agreement.

 

3.6 Proceedings.
No proceedings relating to the Series I Convertible Preferred Stock are pending or, to the knowledge of the Shareholder, threatened
before any court, arbitrator or administrative or governmental body that would adversely affect the Shareholder’s right
and ability to surrender and exchange the Series I Convertible Preferred Stock.

 

3.7 Tax
Consequences. The Shareholder acknowledges that the purchase of the Series II Convertible Preferred may involve tax consequences
to the Shareholder and that the contents of this Agreement do not contain tax advice. Shareholder acknowledges that it has not
relied and will not rely upon the Company with respect to any tax consequences related to the exchange of the Series I Convertible
Preferred for the Series II Convertible Preferred. The Shareholder assumes full responsibility for all such consequences and for
the preparation and filing of any tax returns and elections which may or must be filed in connection with such the Exchange.

 

3.8
 Reliance on Exemptions. The Shareholder understands that the Series II Convertible Preferred is being offered and exchanged
in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that
the Company is relying in part upon the truth and accuracy of, and the Shareholder’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Shareholder set forth herein and in this Agreement in order
to determine the availability of such exemptions and the eligibility of the Shareholder to acquire the Series II Convertible Preferred.

 

4.
 COVENANTS.

 

4.1
 Reservation of Shares. The Company shall take all action necessary to at all times have authorized, and reserved for
the purpose of issuance, no less than the maximum number of shares of Common Stock issuable upon conversion of the Series II Convertible
Preferred Stock

 

5.
 CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER.

 

The
obligations of the Company to the Shareholder hereunder are subject to the satisfaction of each of the following conditions (except
to the extent such condition is expressly conditional to a specific closing, in which case such condition shall only apply to
such specific closing), provided that these conditions are for the Company’s sole benefit and may be waived by the Company
at any time in its sole discretion by providing the Shareholder with prior written notice thereof:

 

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5.1
 The Shareholder shall have duly executed this Agreement and delivered the same to the Company.

 

5.2
 The representations and warranties of the Shareholder shall be true and correct in all material respects as of the date when
made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific
date which shall be true and correct as of such specified date), and the Shareholder shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or
complied with by the Shareholder at or prior to the Closing Date.

 

5.3 No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

6.
 CONDITIONS TO SHAREHOLDER’S OBLIGATIONS HEREUNDER.

 

The
obligations of the Shareholder hereunder are subject to the satisfaction of each of the following conditions (except to the extent
such condition is expressly conditional to a specific closing, in which case such condition shall only apply to such specific
closing), provided that these conditions are for the Shareholder ‘s sole benefit and may be waived by the Shareholder at
any time in its sole discretion by providing the Company with prior written notice thereof:

 

6.1
The Company shall have duly executed and delivered this Agreement.

 

6.2
Each and every representation and warranty of the Company shall be true and correct in all material respects as of the date when
made and as of the Closing Date as though originally made at that time (except for representations and warranties that speak as
of a specific date, which shall be true and correct as of such date) and the Company shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by
the Company at or prior to the Closing Date.

 

6.3
 The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for
the transactions contemplated by this Agreement.

 

6.4
 No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

7.
 MISCELLANEOUS.

 

7.1
 Legends. The Shareholder acknowledges that the certificate(s) representing the Series II Convertible Preferred Stock
and the shares of Common Stock issuable upon conversion of the Series II Convertible Preferred Stock shall each conspicuously
set forth on the face or back thereof a legend in substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED SHAREHOLDER” AS
DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

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7.2
 Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of Florida, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Florida or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of Florida. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts of sitting in the City of Delray Beach, Palm Beach, County of Florida, for the adjudication of
any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

7.3
 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement.
This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic
Delivery”), shall be treated in all manner and respects as an original agreement or instrument and shall be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of
any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other parties.
No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement
or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract,
and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.

 

7.4
 Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

 

7.5 Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

7.6
 Entire Agreement; Amendments. This Agreement supersede all other prior oral or written agreements between the Shareholder,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement,
contains the entire understanding of the parties with respect to the matters covered herein and, except as specifically set forth
herein, neither the Company nor Shareholder makes any representation, warranty, covenant or undertaking with respect to such matters.
No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Shareholder,
and any amendment to this Agreement made in conformity with the provisions of this Section shall be binding upon the Shareholder.
No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought.

 

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7.7 Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one business day after deposit with an overnight courier service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	 	If
    to the Company: 	 	POSITIVEID
    CORPORATION 
	 	 	 	 
	 	 	 	1690
    South Congress Avenue, Suite 201
	 	 	 	Delray
    Beach, Florida 33445 
	 	 	 	Email:
    atomek@psidcorp.com
	 	 	 	 
	 	If
    to the Buyer:	to the address set forth on the signature page to this agreement. 

  

to
its address and email address set forth above, or to such other address and/or email address and/or to the attention of such other
person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) electronically generated by the sender’s email program containing the time, date, recipient email address and copy of
the message or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by email
or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

7.8
 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Series II Convertible Preferred Stock. The Company shall not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the Shareholder. Shareholder may assign
some or all of its rights hereunder without the consent of the Company.

 

7.9 Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality
or applicability of a more general representation or warranty.

 

[signature
page follows]

 

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IN
WITNESS WHEREOF, the Shareholder and the Company have caused their respective signature pages to this Agreement to be duly
executed as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	POSITIVEID CORPORATION 
	 	 	 
	 	By:	
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	SHAREHOLDER:
	 	 ______________	 
	 	 	 
	 	Address for Notice:
	 	 ______________	 
	 	 ______________	 

 

    	 	 7FORM
OF POSITIVEID CORPORATION

SERIES
II PREFERRED STOCK AWARD AGREEMENT 

 

This
SERIES II PREFERRED STOCK AWARD AGREEMENT (the “Agreement”) is made as of August 11, 2016 (the “Grant Date”),
between PositiveID Corporation, a Delaware corporation (the “Company”), and [  ] (the “Grantee”).

 

Background
Information 

 

A.
The Board of Directors has granted to the Grantee an award of Series II Preferred Stock, par value $0.01 per share (the “Series
II Preferred Stock”), of the Company (the “Award”).

 

B.
The Company and the Grantee are entering into this Agreement in order to evidence the Award, which shall be governed in all respects
by the terms and provisions hereof.

 

C.
The Grantee desires to accept the Award grant and agrees to be bound by the terms and conditions of this Agreement.

 

Agreement

 

1.
Preferred Stock. Subject to the terms and conditions provided in this Agreement, the Company hereby grants to the Grantee
[ ] shares of Series II Preferred Stock (the “Preferred Stock”) as of the Grant Date. Per the Certificate of Designations
of Preferences, Rights and Limitations of the Series II Convertible Preferred Stock (“Certificate of Designations”),
the Preferred Stock conversion price is a price per share of Common Stock equal to 100% of the lowest daily volume weighted average
price of the Common Stock during the subsequent 12 months following the Grant Date (the “Conversion Price”). The extent
to which the Grantee’s rights and interest in the Preferred Stock becomes vested and non-forfeitable shall be determined
in accordance with the provisions of Sections 2 and 3 of this Agreement.

 

2.
Except as may be otherwise provided in Section 3 of this Agreement, the vesting and conversion of the Grantee’s rights and
interest in the Series II Preferred Stock shall be determined in accordance with this Section 2.

 

(a)
Vesting. The Grantee’s rights and interest in [ ] shares of the Preferred Stock shall become fully vested and non-forfeitable
and shall cease being restricted on January 1, 2019, provided that (1) the Company does not terminate the employment of the Grantee
for cause prior to January 1, 2019, with said cause being defined as a conviction of a felony or Grantee’s being prevented
from providing services hereunder as a result of Grantee’s violation of any law, regulation and/or rule.

 

(b)
Conversion. Subject to the terms and conditions in the Certificate of Designations, any or all of the outstanding shares
of Series II Preferred Stock may be converted into shares of common stock at any time or times after the issuance date, at the
option of the Grantee, (i) if at the option of the Grantee, by delivery of a written notice to the Company, of the Grantee’s
election to convert Series II Preferred Stock and the number of shares of Series II Preferred Stock which such Grantee is electing
to convert, or (ii) at the option of the Company, if and only if the closing price of the common stock exceeds 400% of the Conversion
Price for a period of twenty consecutive trading days, by delivery of a written notice to the Grantee, stating the Company’s
election to convert Series II Preferred Stock and the number of such Grantee’s shares of Series II Preferred Stock to be
converted.

 

3.
Change in Control. In the event of a Change in Control (as defined below), Preferred Stock that is not yet vested on the
date such Change in Control is determined to have occurred shall become fully vested on the date such Change in Control is determined
to have occurred. A “Change in Control” means the happening of any of the following: (i) the consummation of
any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
as such term is used in Section 13(d) and 14(d) of the Exchange Act of 1934, as amended (the “Exchange Act”) (other
than any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities
entitled generally to vote in the election of the Board of Directors (other than the occurrence of any contingency); (ii) the
stockholders of the Company approve a merger or consolidation of the Company with any other corporation or entity, which is consummated,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; or (iii) the effective date of a complete liquidation of the Company or the consummation
of an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, which in
both cases are approved by the stockholders of the Company as may be required by law.

 

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4.
Restrictions on Transfer; Legending of Shares. Until such time as any share of Preferred Stock becomes vested pursuant
to Section 2 or Section 3 of this Agreement, the Grantee shall not have the right to make or permit to occur any transfer, pledge
or hypothecation of all or any portion of the Preferred Stock, whether outright or as security, with or without consideration,
voluntary or involuntary. Any transfer, pledge or hypothecation not made in accordance with this Agreement shall be deemed null
and void. The certificate evidencing the Preferred Stock shall contain a legend in substantially the following form:

  

	 	“The
    shares evidenced by this certificate are subject to restrictions on transfer set forth in the Series II Preferred Stock Award
    Agreement, dated August 11, 2016, between PositiveID Corporation (the “Company”) and [  ] a copy of which may be
    obtained from the Company at its principal executive offices.”	 
	 	 	 
	 	“The
    shares of Preferred stock of the Company represented hereby have not been registered under the Securities Act of 1933, as
    amended, or applicable state securities laws and may not be transferred, pledged, hypothecated or otherwise disposed of in
    the absence of an effective registration statement covering such shares under that Act and any applicable state securities
    laws, unless, in the opinion of counsel satisfactory to the Company, an exemption from registration thereunder is available.”	 

 

5.
Forfeiture. The Grantee shall forfeit all of his rights and interest in the Preferred Stock if the Grantee is terminated
for cause, as defined in 2 above. In the event the Grantee’s employment is terminated for any other reason, the Preferred
Stock will continue to vest in accordance with Section 2 and/or Section 3 of this Agreement.

 

6.
Shares Held by Custodian; Rights to Dividends and Voting Rights. The Grantee hereby authorizes and directs, at the Grantee’s
option, the Company to deliver any share certificate issued by the Company to evidence the award of Preferred Stock to the Secretary
of the Company or such other officer of the Company (other than the Grantee) as may be designated by the Company’s Board
of Directors or the Compensation Committee of such Board (the “Share Custodian”) to be held by the Share Custodian
until the Preferred Stock becomes fully vested in accordance with Section 2 or Section 3 of this Agreement. When the Preferred
Stock becomes vested, the Share Custodian shall deliver to the Grantee (or his beneficiary in the event of death) a certificate
representing the vested Preferred Stock (which then will be unrestricted) and may delete the first paragraph of the legend set
forth in Section 4 above. The Grantee hereby irrevocably appoints the Share Custodian, and any successor thereto, as the true
and lawful attorney-in-fact of the Grantee with full power and authority to execute any stock transfer power or other instrument
necessary to transfer the Preferred Stock to the Company, or to transfer the Preferred Stock to the Grantee on an unrestricted
basis upon vesting, pursuant to this Agreement, in the name, place, and stead of the Grantee. The term of such appointment shall
commence on the Grant Date and shall continue until the Preferred Stock becomes vested or is forfeited. During the period that
the Share Custodian holds the shares of Preferred Stock subject to this Section 6, the Grantee shall be entitled to all rights
applicable to shares of Series II Preferred Stock of the Company not so held, including the right to vote and receive dividends,
but provided, however, in the event of (i) any change in the Series II Preferred Stock of the Company by reason of any stock dividend,
spin-off, split-up, spin-out, recapitalization, merger, consolidation, reorganization, combination or exchange of shares or (ii)
any distribution of Series II Preferred Stock or other securities of the Company in respect of such shares of Series II Preferred
Stock, the Grantee agrees that any certificate representing shares of such additional Series II Preferred Stock or other securities
of the Company issued as a result of any of the foregoing shall be delivered to the Share Custodian and shall be subject to all
of the provisions of this Agreement as if initially received hereunder.

 

7.
Tax Consequences. Upon the occurrence of a vesting event specified in Section 2 or Section 3 above, the Grantee is responsible
for all federal, state, local or foreign income and social insurance withholding taxes imposed by reason of the vesting of the
Preferred Stock.

 

The
Grantee understands that the Grantee may elect to be taxed at the Grant Date rather than when the Preferred Stock becomes vested
by filing with the Internal Revenue Service an election under section 83(b) of the Internal Revenue Code of 1986, as amended (the
“Code”), within thirty (30) days from the Grant Date. The Grantee acknowledges that it is the Grantee’s sole
responsibility, and not the Company’s responsibility, to timely file the Code section 83(b) election with the Internal Revenue
Service if the Grantee intends to make such an election. Grantee agrees to provide written notification to the Company if the
Grantee files a Code section 83(b) election.

 

    	 	 2	 

    	 	 	 

    

 

8.
No Effect on Employment. Nothing in this Agreement shall confer upon the Grantee the right to continue in the employment
of the Company or affect any right which the Company may have to terminate the employment of the Grantee regardless of the effect
of such termination of employment on the rights of the Grantee or this Agreement.

 

9.
Governing Laws. This Agreement shall be construed and enforced in accordance with the laws of the State of Florida, without
regard to any applicable conflicts of law. By accepting this Award, the Grantee irrevocably and unconditionally consents to submit
to the exclusive jurisdiction of the courts of the State of Florida or of the United States of America, in each case located in
Palm Beach County, Florida, for any litigation arising out of or relating to this Agreement (and agrees not to commence any litigation
relating thereto except in such courts). The Grantee also irrevocably and unconditionally waives any objection to the laying of
venue of any litigation arising out of or related to this Award in the courts of the State of Florida or of the United States
of America, in each case located in Palm Beach County, Florida, and hereby further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such litigation brought in any such court has been brought in an inconvenient
forum.

 

10.
Successors. This Agreement shall inure to the benefit of, and be binding upon, the Company and the Grantee and their heirs,
legal representatives, successors and permitted assigns.

 

11.
Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall
for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect
any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision
or portion thereof had never been contained herein.

 

12.
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified; (b) when sent by confirmed facsimile if sent during normal business hours of the
recipient, if not, then on the next business day; (c) three (3) business days after having been sent by registered or certified
mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:

 

	If
    to the Company: 
	 	 
	 	PositiveID
    Corporation 
	 	1690
    South Congress Avenue, Suite 201 
	 	Delray
    Beach, Florida 33445 
	 	 
	If
    to Grantee: 
	 	_____________________
	 	_____________________
	 	_____________________

 

13.
Entire Agreement. This Agreement expresses the entire understanding and agreement of the parties hereto with respect to
the terms and conditions of this Award.

 

14.
Headings. Section headings used herein are for convenience of reference only and shall not be considered in construing
this Agreement.

 

15.
Additional Acknowledgements. By their signatures below (including electronic signatures), the Grantee and the Company agree
that the Preferred Stock is granted under and governed by the terms and conditions of this Agreement. Grantee has reviewed the
terms of this Agreement, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands
all provisions of this Agreement. Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations
of the Compensation Committee of the Company’s Board of Directors upon any questions relating to this Agreement.

 

    	 	 3	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the Grant Date set forth above.

 

	 	POSITIVEID CORPORATION
	 	 
	 	By:	
	 	 	 
		 	 
	 		 
	 	GRANTEE:	
	 	 	 
	 	 	 

 

    	 	 4

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