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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&amp;#160;&lt;/font&gt;&lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;9.&amp;#160;&amp;#160;&amp;#160;Agreements

      with The Boeing Company&lt;/b&gt;&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; MARGIN: 0pt" id="PARA2283"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;On

      December 20, 2012, the Company entered into a Sole and

      Exclusive License Agreement (the &amp;#8220;Boeing License

      Agreement&amp;#8221;), a Teaming Agreement (&amp;#8220;Teaming

      Agreement&amp;#8221;), and a Security Agreement (&amp;#8220;Boeing

      Security Agreement&amp;#8221;) with The Boeing Company

      (&amp;#8220;Boeing&amp;#8221;).&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; MARGIN: 0pt" id="PARA2285"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      Boeing License Agreement provides Boeing the exclusive

      license to manufacture and sell PositiveID&amp;#8217;s M-BAND

      airborne bio-threat detector for the U.S. Department of

      Homeland Security&amp;#8217;s BioWatch Generation 3 opportunity,

      as well as other opportunities (government or commercial)

      that may arise in the North American market.&amp;#160;&amp;#160;As

      consideration for entering into the Boeing License Agreement,

      Boeing agreed to pay a license fee of $2.5 million (the

      &amp;#8220;Boeing License Fee&amp;#8221;) to the Company in three

      installments, which has been paid in full as of June 30,

      2013. The $2.5 million license fee received as of June 30,

      2013 has been recorded as deferred revenue.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; MARGIN: 0pt" id="PARA2287"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;Under

      the Teaming Agreement, the Company retained exclusive rights

      to serve as the reagent and assay supplier of the M-BAND

      systems to Boeing. The Company also retained all rights to

      sell M-BAND units, reagents and assays in international

      markets.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: left; LINE-HEIGHT: 1.25; TEXT-INDENT: 45pt; MARGIN: 0pt" id="PARA2289"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;Pursuant

      to the Boeing Security Agreement, the Company granted Boeing

      a security interest in all of its assets, including the

      licensed products and intellectual property rights (as

      defined in the Boeing License Agreement), to secure the

      Company&amp;#8217;s performance under the Boeing License

      Agreement.&lt;/font&gt;

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