Document:

Letter of Intent

 Exhibit 10.2 
 February 14, 2007 
 Mr. Mike Gangel 
 Chad, Inc. 
 19950 W. 161st Street 
 Olathe, Kansas 66062 
 Dear Mike: 
 This is to confirm the substance of our
discussions to date with respect to the acquisition by Chad, Inc. (“Chad”) of certain Assets (as defined below) of eMerge Interactive, Inc. (“eMerge”) and certain related transactions described below. 
 The parties anticipate that as soon as practicable after receipt of a fully-executed copy of this non-binding term sheet (this “Term Sheet”)
from Chad, eMerge will commence a voluntary case (the “Bankruptcy Case”) under Chapter 11 of the “Bankruptcy Code” (11 U.S.C. §§ 101-1330, as amended). Except as otherwise ordered by the United States Bankruptcy Court
for the Southern District of Florida (the “Bankruptcy Court”), eMerge and Chad shall cooperate in good faith to obtain such Bankruptcy Court orders as may be necessary to effect the Agreement (as hereinafter defined) as soon as practicable
following the commencement of the Bankruptcy Case. If eMerge does not commence the Bankruptcy Case, then the parties will revise this Term Sheet accordingly to allow for the Agreement to reflect the sale of the Assets to Chad outside of bankruptcy.

 Although it is the intent of eMerge and Chad that our discussions initially proceed based on this Term Sheet, the terms contained herein
have not been agreed to by the parties, are not binding on the parties and are not intended to create rights in favor of the parties with respect to the proposed transaction discussed herein. The terms contained in this Term Sheet are not an
exhaustive list and additional terms and conditions may be added by the parties. The obligations of the parties to consummate the transaction shall be subject in all respects of the negotiation, execution and delivery of a definitive purchase
agreement (the “Agreement”) and the approval of any applicable regulatory authorities including, but not limited to, the Bankruptcy Court. 
 eMerge and Chad have agreed to negotiate, in good faith, with the objective of executing the Agreement on substantially the following terms and conditions: 
  

	 	1.	Buyer and Seller. In the proposed transaction, Chad will be the buyer (“Buyer”), and eMerge will be the seller (“Seller”). 

  

	 	2.	Purchase Price; Purchased Assets. 

  

	 	(a)	Purchase Price. Chad shall purchase the Assets for $250,000 in cashier’s check or bank transfer payable on the closing date. 

  

	 	(b)	 Purchased Assets. For purposes of this Term Sheet, “Assets” shall mean (i) all of eMerge’s right, title and interest in, to and under
those assets, listed on 

	 	 
Schedule A attached hereto, used primarily in developing and carrying out the business of sales and maintenance of contamination detection equipment,
including, but not limited to, the Carcass Inspection System (“CIS”), the SOLO handheld devices and the VerifEYE derivatives (the “VerifEYE Business”), (ii) those agreements listed on Schedule B attached hereto and
(iii) any and all payments (the “Advance Deposit”) received from InterMarche’ for delivery of a CIS to InterMarche’. The Assets will include all of the assets and contract rights necessary as of the closing date for the
operation of the Assets in the ordinary course in accordance with eMerge’s past practice. eMerge will use its commercially reasonable efforts to assist Chad in supporting assignment of the contracts listed on Schedule B attached hereto
from eMerge to Chad; provided, however, that eMerge will not in any way be liable to Chad in any respect for any failure to assign the contracts listed on Schedule B attached hereto from eMerge to Chad. The Assets will be
transferred to Buyer free and clear of any interests pursuant to Section 363(f) of the Bankruptcy Code. 

  

	 	3.	Liabilities. The parties agree that Buyer will not assume any liabilities of eMerge as part of this transaction (including, without limitation, any long-term debt, tax
liabilities or other known or unknown fixed or contingent liabilities), except the Liabilities (as hereinafter defined). The parties expect that the “Liabilities” will be limited to (a) liabilities relating to periods from and after
the closing date under those leases and contracts included in the Assets and (b) those liabilities listed on Schedule C and Schedule D attached hereto. The amount of the liabilities under Section 3(b) above paid by Buyer to
eMerge shall not exceed the greater of: (i) amount of the Advance Deposit as defined in Section 2(b)(iii) above, or (ii) $150,000. 

  

	 	4.	Timetable; Closing. 

  

	 	(a)	As soon as practicable following eMerge’s receipt of a written acceptance of this Term Sheet, (i) the parties will begin negotiations with respect to the Agreement and
(ii) the parties will begin to prepare any necessary governmental and regulatory filings with respect to the proposed transaction. The Agreement will be in form and substance satisfactory to both parties. 

  

	 	(b)	eMerge and Chad will assist each other in completing any necessary governmental and regulatory filings related to the transactions contemplated herein. 

  

	 	(c)	The parties anticipate that closing of the proposed transaction will take place as soon as possible following entry on the docket of an order by the Clerk of the Bankruptcy Court as
to which the time for filing a notice of appeal or petition for certiorari, or request for reargument or further review or rehearing shall have expired. It is anticipated that closing will occur as soon as is practicable following approval of the
sale transaction by the Bankruptcy Court. 

	 	(d)	The liabilities paid by Buyer to eMerge, as described in Section 3(b) above, shall be paid in check or bank transfer by Buyer to eMerge upon the release of the Advance Deposit
by InterMarche’, or by the bank holding the Advance Deposit, but in any event no later than May 25, 2007. For the avoidance of doubt, it is the intent of the parties that Buyer shall pay eMerge for all liabilities described in
Section 3(b) above no later than May, 25, 2007, regardless of whether an Advance Deposit has been received and regardless of whether an Advance Deposit has been released. 

  

	 	5.	Certain Terms of the Agreement. 

  

	 	(a)	Representations and Warranties. The Agreement will contain limited representations and warranties, consistent with the sale of a business under bankruptcy proceedings, and the
Agreement will provide that the approval of the Bankruptcy Court will be a condition to closing of Seller’s obligation to sell the Assets to Buyer. 

  

	 	(b)	International Sales. The Agreement will contain provisions dealing with the sales and distribution of products outside the United States that are satisfactory to both parties.

  

	 	 6.
	 Technical Solutions Group, Inc. Agreements. Buyer shall use its commercially reasonable efforts to negotiate agreements
with Technical Solutions Group, Inc. to provide for (i) the maintenance and support for equipment required under the Cargill Customer Agreements in accordance with the Cargill Customer Agreements and (ii) royalty payments from Technical
Solutions Group, Inc. to Chad for the use by Technical Solutions Group, Inc. of that certain Neural Patent (applied for) as identified on Schedule A hereto. Seller shall use its commercially reasonable efforts to assist Technical Solutions Group,
Inc. in negotiating an agreement with its current landlord, Waldo Development, to lease approximately 2900 square feet of office space at eMerge’s current facility located at 10305 102nd Terrace in Sebastian, Florida. 

  

	 	7.	Transition Services Agreement. The parties contemplate that they will enter into a transition services agreement pursuant to which Seller will provide certain post-closing payroll,
human resources administration and management information systems administrative services to Buyer, consistent with those provided in connection with the current operation of the Assets, for an agreed-upon period after closing at Buyer’s
expense. 

  

	 	8.	Disclosure. Buyer and Seller hereby confirm that they, and their respective agents, will keep the existence and contents of this Term Sheet strictly confidential in the event that
Buyer decides not to execute a copy of this Term Sheet. 

  

	 	9.	Fees and Expenses. Each of the parties hereto shall be responsible for its own fees, costs and expenses incurred in connection with the drafting, negotiation and execution of the
Agreement and the related transactions contemplated therein and discussed herein. 

	 	10.	Effect of Term Sheet. It is understood and acknowledged that this Term Sheet shall not be deemed to be a legally binding agreement between the parties for any purpose, except for
Section 8 hereof, which is intended to be, and is, a legally binding agreement between the parties hereto upon your acceptance below. This Term Sheet constitutes the entire agreement of the parties with respect to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions of the parties, whether oral or written, with respect to the subject matter hereof. 

 If Chad accepts this Term Sheet as an accurate reflection of our current mutual understanding of the proposed transaction and of our good faith intent to
move forward to negotiate the Agreement covering the proposed transaction discussed herein, please indicate Chad’s concurrence by signing the enclosed copy of this Term Sheet and return a fully-executed copy to us as soon as possible.

 Very truly yours, 
  

			
	eMERGE INTERACTIVE, INC.
		
	By:	 	 /s/ DAVID C. WARREN

	Name:	 	David C. Warren
	Title:	 	President & CEO

 ACCEPTED AND AGREED: 
  

			
	CHAD, INC.
		
	By:	 	 /s/ MICHAEL G. GANGEL

	Name:	 	Michael G. Gangel
	Title:	 	President

 DATE: February 14, 2007Termination Agreement and Mutual Release

 Exhibit 10.3 
 TERMINATION AGREEMENT AND MUTUAL RELEASE 
 This Termination Agreement and Mutual Release (this
“Agreement”) is entered into as of this 14th day of February, 2007, by and among eMerge Interactive, Inc., a Delaware corporation (“eMerge”), eMerge Merger Sub, LLC, a Delaware limited liability company and a wholly owned
subsidiary of eMerge (“Merger Sub” and together with eMerge the “eMerge Parties”), PRIME BioSolutions, LLC, a Delaware limited liability company (“PRIME”), and PRIME BioShield, L.L.C., a Nebraska limited liability
company, which is the sole member of PRIME (“Shield” and together with PRIME the “PRIME Parties”) (collectively, the “Parties”). 
 WHEREAS, the Parties are parties to the Agreement and Plan of Merger, dated October 16, 2006 (the “Merger Agreement”); and 
 WHEREAS, the eMerge Parties and the PRIME Parties desire to terminate, as of the date hereof, the Merger Agreement pursuant to Section 9.01(a) thereof; and 
 WHEREAS, the Parties desire to release eMerge, Merger Sub, PRIME and Shield from all obligations under the Merger Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows: 
 1. Termination. The eMerge Parties and the PRIME Parties hereby terminate the Merger Agreement, pursuant
to Section 9.01(a) thereof, by mutual written consent, and agree that as a result of such termination and of the mutual releases set forth in Section 2 below, no Party shall have any continuing liabilities or obligations to any other Party of any
nature whatsoever under the Merger Agreement. 
 2. Release. Subject to the terms of this Agreement, the eMerge Parties forever release, quitclaim,
discharge and hold harmless the PRIME Parties and their respective past, present or future assigns, officers, directors, employees, affiliates, subsidiaries, parents, shareholders, members, managers, attorneys, accountants, representatives,
advisors, agents, predecessors in interest and successors of and from any and all claims, demands, damages, actions, causes of action or liability of every kind or nature whatsoever for, on account of or growing out of any matters pertaining to,
relating to or arising out of the Merger Agreement. Subject to the terms of this Agreement, the PRIME Parties forever release, quitclaim, discharge and hold harmless the eMerge Parties and their respective past, present or future assigns, officers,
directors, employees, affiliates, subsidiaries, parents, shareholders, members, managers, attorneys, accountants, representatives, advisors, agents, predecessors in interest and successors of and from any and all claims, demands, damages, actions,
causes of action or liability of every kind or nature whatsoever for, on account of or growing out of any matters pertaining to, relating to or arising out of the Merger Agreement. 
 3. Survival of the Confidentiality Agreement. Notwithstanding any other provision of this Agreement to the contrary, the Parties shall remain subject to all of the terms and conditions of the Mutual
Confidentiality Agreement, dated June 29, 2006, between eMerge and Shield. 

 4. Counterparts. This Agreement may be so executed in any number of counterparts, each of which when so executed
and delivered shall be deemed an original, and such counterparts together shall constitute only one original. 
 5. Entire Agreement. This Agreement
contains the entire agreement among the Parties and shall not be amended or modified except in writing signed by all the Parties to this Agreement who are affected by such amendment or modification. 
 6. Understanding of Parties. Each of the Parties to this Agreement and its counsel has read the contents of this Agreement, and each understands its terms and is
satisfied with them. 
 7. Applicable Law. This Termination Agreement shall be construed and enforced, in all respects, in accordance with the laws of
the State of Delaware. 
 IN WITNESS WHEREOF, the Parties hereby execute this Agreement. 
  

			
	EMERGE INTERACTIVE, INC.
		
	By:	 	 /s/ DAVID C. WARREN

	Name:	 	David C. Warren
	Title:	 	President & CEO

  

			
	EMERGE MERGER SUB, LLC
	By eMerge Interactive, Inc., sole member
		
	By:	 	 /s/ DAVID C. WARREN

	Name:	 	David C. Warren
	Title:	 	President & CEO

  

			
	PRIME BIOSOLUTIONS, LLC
		
	By:	 	 /s/ DAVID E. HALLBERG

	Name:	 	David E. Hallberg
	Title:	 	President & CEO

  

			
	PRIME BIOSHIELD, L.L.C.
		
	By:	 	 /s/ DAVID E. HALLBERG

	Name:	 	David E. Hallberg
	Title:	 	President & CEO

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