CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEENREQUESTED WITH RESPECT TO THE OMITTED PORTION. GROUP PURCHASING PROGRAM AGREEMENT

Exhibit 10.17

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND

FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT

HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

GROUP PURCHASING PROGRAM AGREEMENT

THIS AGREEMENT is made and entered into as of October 28, 2004, by and between Henry Schein, Inc., a Delaware corporation (hereinafter “HSI”) and VeriChip Corporation, a Delaware corporation (hereinafter referred to as “VeriChip”).

WITNESSETH:

WHEREAS, VeriChip wishes to appoint HSI as a distribution vendor for VeriChip product purchases;

WHEREAS, HSI is a distributor of a broad range of medical, surgical, laboratory and pharmaceutical products and supplies to health care professionals, and wishes to assist VeriChip; and

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, HSI and VeriChip agree as follows:

1. Term of Agreement. The term of this Agreement shall be for a period of two (2) years commencing on the date upon which the VeriChip Corporation receives from the FDA written clearance to market the VeriChip system within the United States and completes all related regulatory documents.

2. Program. In consideration of the mutual covenants and conditions herein contained, HSI will distribute products as may mutually agreed by HSI and pursuant to the terms and conditions set forth herein (the “Program”).

3. Obligations of HSI. HSI shall distribute (on a consignment basis) the VeriChip line of products (“Products”) that are compliant with all FDA requisite manufacturing, packaging and labeling standards to health care professionals. HSI will accept a quantity of VeriChip products on consignment to their distribution center located in Indianapolis, IN; provided that such quantity has been be agreed to by both parties (it being understood that such amount shall initially be an amount mutually agreed but no more than 100 starter sets and 100 boxes of 10-count insertion sets, although the Parties may agree to other amounts from time to time). HSI will be responsible for the Products in its warehouse, so it agrees to maintain insurance on such Products in an amount at least equal to the wholesale value of such Products. As it determines in its sole business judgment, HSI will promote VeriChip products in their line of direct to physician marketing materials using such means as it deems appropriate. HSI will provide payment for product shipped to health care professionals to VeriChip within 30 days after the close of each month. The initial wholesale prices (i.e. the prices that HSI pays to VeriChip) are set forth on Exhibit A. VeriChip may change its prices on 60 days’ notice to HSI. HSI will provide a monthly statement to VeriChip that details each transaction in which a VeriChip product was sold. HSI in a timely fashion will provide a listing of the EID numbers of the VeriChip insertion sets sold to a specific physician’s office.

4. Obligations of VeriChip. VeriChip will provide the VeriChip line of products that are compliant with all FDA requisite manufacturing, packaging and labeling standards. This includes:

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VeriChip will “activate” the VeriChip EID numbers upon written notification by HSI of sale.

VeriChip will provide requested Products to HSI within the prescribed period of time set forth in this agreement, provided, however, that VeriChip shall not be obligated to leave amounts on consignment in HSI’s distribution facility in excess of the amounts mutually agreed to pursuant to Section 3. VeriChip will accept returns within 30 days of shipping. If VeriChip requests that inventory being held on consignment be returned to it, VeriChip shall pay such cost of return shipping. VeriChip will notify HSI of product modifications or changes.

VeriChip will guarantee that if it reduces its MSRP on any Products, it will proportionately reduce the prices charged to HSI (referenced in Exhibit A) on such Products.

5. Relationship of the Parties

(b) The indemnity provisions, as set forth in this Article 5 and Exhibit B shall survive the termination of this Agreement for any reason.

6. Compliance with Laws. The Parties agree that in carrying out their duties and responsibilities under this Agreement, they will neither undertake nor cause nor permit to be undertaken, any activity which either

7. Confidentiality of Information.

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8. Termination. Either Party shall have the right to terminate this Agreement for “cause” at any time, by giving written notice to the other Party in the event that the other Party:

On termination of this Agreement, HSI shall return any Products held by it on consignment and shall, within 30 days of termination, pay for any Products shipped to it and not returned.

11. Arbitration.

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12. Notices. Any and all notices, requests, demands, consents, approvals or other communications required or permitted to be given under any provision of this Agreement shall be in writing and shall be deemed given upon personal delivery or the mailing thereof by first class certified mail, return receipt requested, postage prepaid, as follows:

If to HSI:

Henry Schein, Inc.

135 Duryea Road

Melville, NY 11747

Attention: Louis Ferraro

With a copy:

Michael Ettinger, Esq.

Henry Schein, Inc.

135 Duryea Road

Melville, NY 11747

If to VeriChip:

VeriChip Corporation

1690 South congress Ave., Suite 200

Delray Beach, FL 33445

Attn: President

With a copy:

Applied Digital

1690 South Congress Ave., Suite 200

Delray Beach, FL 33445

Attn: General Counsel

Any Party may change its address for the purposes of this Agreement by notice to the other Parties given as aforesaid.

13. Entire Agreement. Each Party acknowledges that it has read this Agreement, fully understands it, and agrees to be bound by its terms and further agrees that it is the complete and exclusive statement of the agreement between the Parties, which supersedes and merges all prior proposals, understandings and all other agreements, oral and written, between the Parties relating to the subject matter of this Agreement. This Agreement cannot be modified or altered except by written instrument duly executed by authorized executive officers of both Parties.

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14. Assignment. This Agreement may not be assigned by a Party without the consent of the other Party, such consent not to be unreasonably withheld.

15. Governing Law. This Agreement shall be governed by the laws of the State of New York excluding its principles of conflicts of laws.

16. Waiver. No delay or omission by either Party to exercise any right or power hereunder shall impair such right or power or be construed to be a waiver thereof. A waiver by either of the Parties of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant herein contained. All remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available to either Party at law, in equity of otherwise.

17. Severability. If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, then both Parties shall be relieved of all obligations arising under such provision, but only to the extent that such provision is illegal, unenforceable, or void, it being the intent and agreement of the Parties that this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substituting therefore another provision that is legal and enforceable and achieves the same objective.

18. Section Headings. The headings contained in this Agreement are for convenience of reference only and are not intended to have any substantive significance in interpreting this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement under seal effective the date first written above.

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EXHIBIT A

PRODUCTS AND PRICES

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EXHIBIT B

VeriChip Corporation and its subsidiaries (referred to herein as “SUPPLIER”), hereby guarantees that each article whether drug, medical device or other (collectively the “PRODUCTS”) constituting or being part of any shipment or delivery now or hereafter made to Henry Schein, Inc. or any affiliate, subsidiary or division thereof (collectively, “HSI”), (i) will not at the time of each shipment or delivery be adulterated or misbranded within the meaning of the United States of America Federal Food, Drug and Cosmetic Act, or within the meaning of any applicable federal, state or local law, within which the definitions of “adulteration” or “misbranding” are substantially the same as those contained in the Federal Food Drug and Cosmetic Act, as said Act and such laws are constituted and effective at the time of such shipment or delivery, nor will such food, drug, device or cosmetic be an article which may not, under the provisions of Sections 405, 505 and/or 512 of said Act, be introduced into interstate commerce and (ii), (i) will not at the time of each shipment or delivery be adulterated or misbranded within the meaning of the United States of America Federal Food, Drug and Cosmetic Act, or within the meaning of any applicable federal, state or local law, within which the definitions of “adulteration” or “misbranding” are substantially the same as those contained in the Federal Food Drug and Cosmetic Act, as said Act and such laws are constituted and effective at the time of such shipment or delivery, nor will such food, drug, device or cosmetic be an article which may not, under the provisions of Sections 405, 505 and/or 512 of said Act, be introduced into interstate commerce and (ii) will, at the time of each shipment or deliver, be in compliance with all applicable County, State, Local, Industry, Professional Association or other Regulatory Authority laws, standards, practices or regulations including but not limited to, any requirement of the Government of the United State of America and any European Community Directives to include the Medical Device Directives Customs regulations for the countries of origin and destination for all shipments, The Foreign Corrupt Practices Act or any similar regulation in other countries and all relevant clauses of any applicable ISO Standards. The PRODUCTS provided by SUPPLIER to HIS will, at all times, be in compliance with all applicable laws, standards, practices and regulations.

SUPPLIER shall indemnify HSI and hold HSI harmless against any and all costs, claims, including, without limitation, claims of product liability, whether sounding in tort or in contract, damages, including, without limitation, actual, punitive and/or exemplary damages, liabilities, litigation, fees and expenses, including without limitation, reasonable attorneys’ fees and expenses (including its own attorneys’ fees and expenses, incurred as a result of:

SUPPLIER agrees to maintain comprehensive “occurrence” general liability insurance, including “occurrence” product liability, contractual liability insurance and advertising injury coverage, with minimum limits of liability of $3,000,000.00 and to deliver to HSI a certificate thereof with HIS and its subsidiaries as an additionally named insured thereon.

SUPPLIER represents and warrants that it complies with all federal, state, local and other applicable laws, regulations, conventions or treaties regulating any environmental matters; and those prohibiting any form of

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child labor or other abuse or exploration of labor in the manufacturing and delivery of SUPPLIER’S products or services.

SUPPLIER warrants that packaging, including cartons, ship cases, and pallets shall be adequately marked, in compliance with all applicable regulations and of sufficient strength to maintain the quality of the PRODUCTS during normal transportation and storage.

SUPPLIER will provide notice to HSI of any regulatory action related to supplier operations, whether or not directly related to the PRODUCTS. SUPPLIER shall be responsible for notifying the appropriate federal state and local authorities of any customer complaints or other occurrences regarding the PRODUCTS which are required to be so reported, evaluating all complaints and responding to HSI in writing on the resolution of any complaints from HSI for its customers.

If SUPPLIER private labels any product for HSI, SUPPLIER agrees: (a) to make no changes in the product, labeling or packaging of the product without first obtaining HSI’s written approval, and (b) to allow duly authorized representatives of HSI to enter and inspect SUPPLIER’S facilities during normal business hours to determine SUPPLIER’S adherence to quality assurance and regulatory compliance standards.

This guaranty shall be continuing and shall be binding upon SUPPLIER and his or its heirs, executors, administrators, successors and/or assigns and shall inure to the benefit of HSI, its successors and assigns and to the benefit of its officers, directors, agents and employees. This Agreement shall supercede any and all prior agreements or understanding, written or oral, between HSI and Supplier regarding the subject of indemnification rights between the parties.

This AGREEMENT shall be governed by the laws of the State of New York excluding its principles of conflicts of laws.

This Continuing Guaranty and Indemnification shall cover all the PRODUCTS and shall survive the termination of the distribution arrangement between SUPPLIER and HSI.

Note: Agreement must be executed by an authorized officer of Supplier.

This document contains proprietary information. It may not be disclosed without prior written approval from

Henry Schein.

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