----

**Exhibit      10.112**

**Incentive      and Recognition Policy**

|   | 1. | Engaging                in a strategic transaction to better the long-term profitability                and value                of the Company |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Earnings                per share for the year and EBITDA for the year (i.e., earnings per                share                before interest, taxes, depreciation and                amortization) |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Improved                valuation in InfoTech during 2007 |
|--------|----|-----------------------------------------------------------|

|   | 4. | Realization                of profit from the pending USPS                matter |
|--------|----|----------------------------------------------------------------------------------|

|   | 5. | Continued                404 clean opinion |
|--------|----|--------------------------------------------|

|   | 6. | Increased                analyst coverage |
|--------|----|-------------------------------------------|

|   | 7. | Audit                committee assessment |
|--------|----|-------------------------------------------|

|   | 8. | Excellent                communication with shareholders through timely, accurate and quality                reporting |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Debt                reduction |
|--------|----|-------------------------------|

|   | 10. | Thermo                Life progress |
|--------|-----|-------------------------------------|

|   | 11. | Improved                value in, or valuable sale of, the Company’s investments in the Company’s                subsidiaries |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

----

**Calculation      of Bonus**

| Major                strategic transaction                                                                                                                                                                                                                                  | 6   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|
| Positive                EPS and positive EBITDA for the year, 50% of points for                each                                                                                                                                                                         | 5   |
| InfoTech                Valuation (20% of points listed for each 20% increase in stock price                from                12/31/06) or major transaction involving InfoTech                                                                                           | 1   |
| Postal                Service (20% of points for each $250K of recovery)                                                                                                                                                                                                    | 0.5 |
| 404                clean opinion and audit clean opinion                                                                                                                                                                                                                    | 1   |
| Analyst                coverage (50% of points for coverage by new, credible analyst, additional                50% for second or more)                                                                                                                                     | 1   |
| ThermoLife                disposition or licensing agreement                                                                                                                                                                                                                | 1   |
| Paying                off Laurus (if Laurus is replaced with comparable instrument, points                are                discretionary)                                                                                                                                 | 3   |
| Subsidiary                transaction: EITHER transactions that yield $30MM to Applied Digital                OR                improve stock price of public subs; if the latter, then 20% of points                for                each $0.30 in increased stock price | 5   |

|                                                                       |       |
|----------------------------------------------------------------------------|------------|
| Maximum                Potential Points (point value is $50,000 per point) | 23.5       |
| Maximum                Potential Dollars if all is achieved fully          | $1,175,000 |
| Expected                bonus based on difficulty assessment               | $331,250   |

----

| Major                strategic transaction                                                                                                                                                                                                                                  | 4        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Positive                EPS and positive EBITDA for the year, 50% of points for                each                                                                                                                                                                         | 4        |
| 404                clean opinion and audit clean opinion                                                                                                                                                                                                                    | 3        |
| Audit                Committee discretion                                                                                                                                                                                                                                   | 1        |
| Analyst                coverage (50% of points for coverage by new, credible analyst, additional                50% for second or more)                                                                                                                                     | 1        |
| Timely,                accurate and quality filings                                                                                                                                                                                                                         | 1        |
| Paying                off Laurus (if Laurus is replaced with comparable instrument, points                are                discretionary)                                                                                                                                 | 3        |
| Subsidiary                transaction: EITHER transactions that yield $30MM to Applied Digital                OR                improve stock price of public subs; if the latter, then 20% of points                for                each $0.30 in increased stock price | 2        |
| Maximum                Potential Points (point value is $25,000 per point)                                                                                                                                                                                                  | 19       |
| Maximum                Potential Dollars if all is achieved fully                                                                                                                                                                                                           | $475,000 |
| Expected                bonus based on difficulty assessment                                                                                                                                                                                                                | $172,500 |

| No                officer can earn more than 100% of points listed for that                item |   |
|-------------------------------------------------------------------------------------------------|--------|