Exhibit 10.29
March 24, 2003
PERSONAL AND CONFIDENTIAL
Xx. Xxxxxx X. Xxxxxxxxxx
c/o Applied Digital Solutions, Inc.
000 Xxxxx Xxxx Xxx, Xxxxx 000
Xxxx Xxxxx, XX 00000
Re: Letter Agreement between Applied Digital Solutions, Inc. and
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X. X. Xxxxxxxxxx
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Dear Xxxxx:
This will confirm that you and Applied Digital Solutions, Inc. ("ADSX") have
agreed to the following:
1. The consideration set forth in this letter agreement ("Agreement")
to be provided by ADSX is in full satisfaction of all compensation and
other benefits owed to you under your employment agreement and
otherwise by ADSX.
2. You shall receive 4,750,000 shares of common stock of ADSX (the
"Shares") immediately upon registration of such Shares. ADSX shall
promptly, and in any event prior to May 1, 2003, file for registration
of such shares with the Securities and Exchange Commission ("SEC") and
shall complete such registration no later than December 31, 2003. Such
registration statement shall remain effective for at least one year.
ADSX shall advise you immediately when the SEC has issued a no comment
letter or declared the registration statement effective.
3. All of your stock options (for ADSX stock) shall be immediately
vested and exercisable by you and the exercise price shall be 1 cent
per share. The other terms and conditions of such options shall remain
unchanged.
4. The number of shares of ADSX stock mentioned in paragraphs 2 and 3
and the option price of 1 cent per share shall be appropriately
adjusted in the event of any stock split, stock dividend, reverse
stock dividend or similar event.
5. Except for the obligations set forth in this Agreement, you and
ADSX hereby release, remise, acquit, and forever discharge the other
from all claims, demands, contracts, agreements (other than option
grants), causes of actions, sums of money that either of us may have
or may hereafter hence based on any event which has occurred except
for releases that are prohibited by law. The foregoing release of and
by ADSX includes all of its subsidiaries and affiliates. In addition
your release of ADSX includes ADSX, its subsidiaries, affiliates, and
each of their respective employees, officers, agents, attorneys,
Xx. Xxxxxx X. Xxxxxxxxxx
March 24, 2003
Page 2
and representatives. You are not releasing ADSX and its subsidiaries
from any indemnification obligation any of them have because you were
an officer or director of any of them.
6. If a shareholder vote is required, ADSX covenants to put such items
as requires shareholder approval in the proxy (in which case any time
requirements on either party set forth herein shall be extended by
such amount of time required by the inclusion in the proxy).
7. We represent that this Agreement has been approved by the Board of
Directors of ADSX, and that the appropriate body of ADSX has agreed to
amend the stock options in the manner set forth above.
8. YOU ACKNOWLEDGE THAT BY AGREEING TO THIS YOU ARE EXCHANGING
SUBSTANTIAL CONSIDERATION (MUCH OR MOST OF WHICH WOULD BE PAYABLE IN
CASH) AND OTHER BENEFITS IN EXCHANGE FOR THE CONSIDERATION SET FORTH
HEREIN. YOU HAVE BEEN GIVEN THE OPPORTUNITY TO SEEK LEGAL AND OTHER
COUNSEL.
9. The provisions of Paragraph 13 (nondisclosure; return of records)
of your Employment Agreement shall remain in full force and effect.
10. You represent:
(1) The Shares to be received by you hereunder will be
acquired for your own account, not as nominee or
agent, for investment purposes and not with a view to,
or for offer or sale in connection with directly or
indirectly, any distribution in violation of the
Securities Act of 1933, as amended, or any other
applicable securities law ("Securities Act").
(2) You are not a registered broker dealer or engaged in the
business of being a broker dealer.
(3) You acknowledge (i) that you can bear the economic
risk and complete loss of your investment in the
Shares and have such knowledge and experience in
financial or business matters that you are capable of
evaluating the merits and risks of the investment
contemplated hereby, and (ii) that there may be
material adverse nonpublic information regarding the
ADS that could affect the value of the Shares.
(4) You are an accredited investor as defined in Rule 501(a)
of Regulation D, as amended, under the Securities Act.
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March 24, 2003
Page 3
11. You will sign such releases and other similar documents as our
lender shall require, provided that no such release or other similar
document shall obligate you in any way on our loan.
If the foregoing correctly sets forth the understanding between us, please sign
and return the enclosed copy of this Agreement.
Very truly yours,
APPLIED DIGITAL SOLUTIONS, INC.
By:
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Title:
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Read and Agreed to
this day of March, 2003.
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Xxxxxx X. Xxxxxxxxxx
