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Exhibit 10.96 OMNIBUS AMENDMENT AGREEMENT THIS OMNIBUS AMENDMENT AGREEMENT (this Amendment) is made and entered into effective as of February 29,
2008, by and among LAURUS MASTER FUND, LTD. (Laurus), KALLINA CORPORATION, a Delaware corporation
(Kallina), VALENS U.S. SPV I, LLC, a Delaware corporation (Valens U.S.), VALENS OFFSHORE SPV I,
LTD, a Cayman Islands company (Valens Offshore I), VALENS OFFSHORE SPV II, CORP., a Delaware corporation
(Valens Offshore II), PSOURCE STRUCTURED DEBT LIMITED, a Guernsey limited liability closed-ended company
(Psource and together with Laurus, Kallina, Valens U.S., Valens Offshore I and Valens Offshore II, the
Lenders)and APPLIED DIGITAL SOLUTIONS, INC., a Delaware corporation (the Company). WHEREAS, certain of the Lenders and the Company are parties to that certain Securities Purchase Agreement and the
Related Agreements (as such term is defined in such Securities Purchase Agreement) all of which are dated as of August
24, 2006 (collectively, as amended, restated, modified and/or supplemented to date, the 2006 Agreements); and WHEREAS, certain of the Lenders and the Company are parties to that certain Securities Purchase Agreement and the
Related Agreements (as such term is defined in such Securities Purchase Agreement), all of which are dated as of August
31, 2007 (collectively, as amended, restated, modified and/or supplemented to date, the 2007 Agreements); and WHEREAS, the Lenders and the Company are parties to that certain Omnibus Amendment and Waiver dated as of October
31, 2007 (Omnibus Amendment, and together with the 2006 Agreements and the 2007 Agreements, the
Transaction Documents), which amends the 2006 Agreements and 2007 Agreements. Capitalized terms used herein
without definition shall have the meaning ascribed thereto in the Omnibus Amendment; and WHEREAS, on the date hereof, the Company is making a prepayment to the Lenders in the amount of $3,000,000 to be
applied ratably against the 2006 Note and the 2007 Note (the $3,000,000 Prepayment); and WHEREAS, the Company has requested that the Lenders acknowledge that the $3,000,000 Prepayment be credited against
the $6,000,000 required to be paid by the Company as a condition to certain agreements of the Lenders set forth in
Paragraph 5 of the Omnibus Amendment and the Lenders have agreed to do so on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the
parties hereto do hereby agree as follows:  1




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1. Provided the $3,000,000 Prepayment is made to the Lenders in good cleared funds prior to 5:00 PM Eastern Standard
Time on the date hereof, the Lenders acknowledge and agree that such amount shall be credited against the amount of
$6,000,000 required to be paid by the Company pursuant to clause (ii) of paragraph 5 of the Omnibus Amendment thereby
reducing such requirement henceforth to $3,000,000. 2. This Amendment and the Lenders agreements set forth herein shall be effective as of the date first above
written on the date when the Company and each Lender shall have executed, and the Company shall have delivered to the
Lenders, its respective counterpart to this Amendment. 3. Except as specifically set forth in this Amendment, there are no other amendments, modifications or waivers to
the Omnibus Amendment, and all of the other terms and provisions of the Omnibus Amendment remain in full force and
effect. 4. The Company represents and warrants to the Lenders that, as of the date hereof, there is no Event of Default
under and as defined in any of the Transaction Documents. 5. This Amendment shall be binding upon the parties hereto and their respective successors and permitted assigns
and shall inure to the benefit of and be enforceable by each of the parties hereto and their respective successors and
permitted assigns. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK. This Amendment may be executed in any number of counterparts, each of which shall be an original,
but all of which shall constitute one instrument. [The remainder of this page has been left intentionally blank. Signature page follows.] 2 2




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IN WITNESS WHEREOF, the Lenders and the Company have executed and delivered this Amendment and Conditional Consent
as of the date first above written. LAURUS MASTER FUND, LTD. By: LAURUS CAPITAL MANAGEMENT, LLC
Its: Investment Manager  By:/s/ Scott Bluestein 
 KALLINA CORPORATION By: LAURUS CAPITAL MANAGEMENT, LLC
Its: Investment Manager  By:/s/ Scott Bluestein 
 VALENS U.S. SPV I, LLC By: VALENS CAPITAL MANAGEMENT, LLC
Its: Investment Manager  By:/s/ Scott Bluestein 
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VALENS OFFSHORE SPV I, LTD By: VALENS CAPITAL MANAGEMENT, LLC
Its: Investment Manager  By:/s/ Scott Bluestein 
 VALENS OFFSHORE SPV II, CORP. By: VALENS CAPITAL MANAGEMENT, LLC
 
Its: Investment Manager  By:/s/ Scott Bluestein 
 PSOURCE STRUCTURED DEBT LIMITED By: LAURUS CAPITAL MANAGEMENT, LLC
Its: Investment Manager  By:/s/ Scott Bluestein 
 APPLIED DIGITAL SOLUTIONS, INC.  By:/s/ Patricia Petersen 
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