KALLINA CORPORATION c/o Laurus Capital Management, LLC 335 Madison Avenue, 10th Floor New York, New York 10017$7,000,000 Note • March 5th, 2008 • Applied Digital Solutions Inc • Communications equipment, nec • New York
Reference is made to (a) the Securities Purchase Agreement dated as of August 31, 2007 by and between Applied Digital Solutions, Inc. (the “Company”) and Kallina Corporation (“Kallina”) (as amended, restated, modified and/or supplemented from time to time, the “2007 SPA”); (b) the Secured Term Note dated as of August 31, 2007 issued by the Company in favor of Kallina in the original principal amount of $7,000,000 (as amended, restated, modified and/or supplemented from time to time, the “7,000,000 Note”); and (c) the Related Agreements (as defined in the 2007 SPA and all agreements, documents and instruments executed in connection with the 2007 SPA and the $7,000,000 Note (all as amended, modified, restated and/or supplemented from time to time, and collectively with the 2007 SPA and the $7,000,000 Note, the “Transaction Documents”).
