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                                                                 Exhibit 10.29

March 24, 2003


PERSONAL AND CONFIDENTIAL

Mr. Jerome C. Artigliere
c/o Applied Digital Solutions, Inc.
400 Royal Palm Way, Suite 410
Palm Beach, FL 33480

Re: Letter Agreement between Applied Digital Solutions, Inc. and
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    J. C. Artigliere
    ----------------


Dear Jerry:

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,



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Mr. Jerome C. Artigliere
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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Mr. Jerome C. Artigliere
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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Jerome C. Artigliere