Document:

<PAGE>

                                                               EXHIBIT 10.21

                                                              EXECUTION COPY

                                AMENDMENT TO
            THE THIRD AMENDED AND RESTATED TERM CREDIT AGREEMENT

     This Amendment to the Third Amended and Restated Term Credit Agreement,
dated as of September 30, 2002 (this "Amendment"), by and among IBM CREDIT
                                      ---------
CORPORATION, a Delaware corporation ("Lender"), DIGITAL ANGEL SHARE TRUST, a
                                      ------
statutory trust organized and governed by the laws of the State of Delaware
("Tranche A Borrower"), APPLIED DIGITAL SOLUTIONS, INC. (formerly known
  ------------------
as "Applied Cellular Technology, Inc."), a Missouri corporation ("Tranche B
                                                                  ---------
Borrower"; Tranche A Borrower and Tranche B Borrower are each referred to herein
--------
as a "Borrower" or, collectively, "Borrowers"), ACT COMMUNICATIONS, INC.,
      --------                     ---------
ACT-GFX CANADA, INC., ADS BAY AREA, INC., ADS MONTEREY, INC., ADSI TELECOMM
SERVICES OF MARYLAND, INC., ADSI TELECOMM SERVICES, INC., ADVANCED POWER
SOLUTIONS, INC., ADVANCED TELECOMM OF MARYLAND, INC., ADVANCED TELECOMM OF
PITTSBURGH, ADVANCED TELECOMMUNICATIONS, INC., THE AMERICOM GROUP, INC.,
APPLIED DIGITAL SOLUTIONS FINANCIAL CORP., ARJANG, INC., BALVA FINANCIAL
CORPORATION, BLUE STAR ELECTRONICS, INC., BOSTEK, INC., COMPUTER EQUITY
CORPORATION, CYBERTECH STATION, INC., DIGITAL ANGEL CORPORATION, DIGITAL
ANGEL HOLDINGS, LLC, ELITE COMPUTER SERVICES, INC., FEDERAL CONVENTION
CONTRACTORS, INC., FEDERAL SERVICES, INC., GOVERNMENT TELECOMMUNICATIONS,
INC., INDEPENDENT ACQUISITION, INC., INFORMATION TECHNOLOGY SERVICES, INC.,
INFOTECH USA, INC., PDS ACQUISITION CORP., INTELLESALE, INC., MICRO
COMPONENTS INTERNATIONAL INCORPORATED, NEIRBOD CORP., NORCOM RESOURCES
INCORPORATED, PERIMETER ACQUISITION CORP., PIZARRO RE-MARKETING, INC.,
PRECISION POINT CORPORATION, SERVICE TRANSPORT COMPANY, SYSCOMM INTERNATIONAL
CORPORATION, TELEDATA CONCEPTS, INC., U.S. ELECTRICAL PRODUCTS CORP., VERICHIP
CORPORATION, WEBNET SERVICES, INC., AND WYR, INC., (together with Borrowers,
each, a "Loan Party" or, collectively, the "Loan Parties").
         ----------                         ------------

                                  RECITALS

     WHEREAS, the Loan Parties and Lender have entered into that certain
Third Amended and Restated Term Credit Agreement, dated as of March 1, 2002
(as amended, supplemented or otherwise modified through the date hereof,
the "Credit Agreement").
     ----------------

     WHEREAS, based on the financial projections provided by the Borrowers,
the Borrowers do not expect to meet one or more financial covenants in
Section 7.1 of the Credit Agreement for the quarter ending September 30, 2002
-----------
and the fiscal year ending December 31, 2002;

     WHEREAS, the Loan Parties have requested that Lender hereby amend
Section 7.1 of the Credit Agreement on the terms set forth in this
-----------
Amendment; and

     WHEREAS, the Lender is willing to agree to such requested amendment to
Section 7.1 of the Credit Agreement, upon the terms and conditions set
-----------
forth herein.

     NOW THEREFORE, in consideration of the premises set forth herein, and
for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

<PAGE>
<PAGE>

SECTION 1.  DEFINITIONS. All capitalized terms not otherwise defined herein
shall have the respective meanings set forth in the Credit Agreement.

SECTION 2.  CONDITIONS PRECEDENT. This Amendment shall become effective upon
receipt of this Amendment by Lender from the Loan Parties, duly executed by
each Loan Party and Lender.

SECTION 3.  AMENDMENT. The Credit Agreement is hereby amended as follows:

     A. Section 7.1(A)(ii) of the Credit Agreement is hereby amended by
        ------------------
deleting such Section 7.1(A)(ii) thereof in its entirety and substituting
              ------------------
therefor the following Section 7.1(A)(ii):
                       ------------------

     "(ii) The ratio of Consolidated Current Assets to Consolidated Current
Liabilities of MAS at any time during any period set forth below shall not
be less than the ratio set forth opposite such period below:

                    Quarter Ended               Current Ratio
                    -------------               -------------
                    June 30, 2002               1.8:1
                    September 30, 2002          1.05:1
                    December 31, 2002           1.09:1"; and

     B. Section 7.1(B) of the Credit Agreement is hereby amended by deleting
        --------------
such Section 7.1(B) thereof in its entirety and substituting therefor the
     --------------
following Section 7.1(B):
          --------------

     "(i) Tranche B Borrower will not permit, directly or indirectly,
Consolidated EBITDA for any period set forth below to be less than the
minimum requirement set forth opposite such period below (cumulatively):

                    Quarter Ended              Minimum Requirement
                    -------------              -------------------
                    March 31, 2002              (U.S.$1,528,000)
                    June 30, 2002                   U.S.$121,000
                    September 30, 2002          (U.S.$4,768,300)
                    December 31, 2002           (U.S.$7,648,300)

     (ii) Consolidated EBITDA of MAS at any time during any period set forth
below shall not be less than the minimum requirement set forth opposite
such period below (cumulatively):

                    Quarter Ended              Minimum Requirement
                    -------------              -------------------
                    June 30, 2002                   U.S.$577,000
                    September 30, 2002                    U.S.$0
                    December 31, 2002             U.S.$1,001,000".

SECTION 4. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof and
after giving effect to this Amendment, each Loan Party hereby confirms,
reaffirms and restates the representations and warranties set forth in
Section 5 of the Credit Agreement except to the extent that such representations
and warranties expressly relate to a specific earlier date (in which case
each Loan Party hereby confirms, reaffirms and restates such representations
and warranties as

                                     2

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of such earlier date); provided that reference to the Credit Agreement in such
                       --------
representations and warranties shall be deemed to refer to the Credit
Agreement as amended or waived prior to the date hereof and pursuant to this
Amendment.

SECTION 5. RIGHTS AND REMEDIES. Lender reserves any and all rights and
remedies that Lenders now have or may have in the future with respect to
Loan Parties, including any and all rights or remedies which Lender may have
in the future as a result of Borrowers' failure to comply with any
financial covenants to Lender.

SECTION 6. RATIFICATION OF CREDIT AGREEMENT. Except as specifically amended
hereby, all provisions of the Credit Agreement shall remain in full force and
effect. Each Loan Party hereby ratifies, confirms and agrees that the
Credit Agreement, as amended hereby, and the performance of Obligations
by the Loan Parties thereunder, represent valid and enforceable obligations
of each such Loan Party, and is not subject to any claims, offsets or defense.
The amendments provided for herein are limited to the specific Sections of the
Credit Agreement specified herein and shall not constitute an amendment or
waiver of, or an indication of the Lender's willingness to amend or waive,
any other provisions of the Credit Agreement or the same Sections for any
other date or time period (whether or not such other provisions or compliance
with such Sections for another date or time period are affected by the
circumstances addressed in this Amendment).

SECTION 7. EXPENSES. The Loan Parties agree to pay and reimburse Lender for
all its costs and expenses incurred in connection with the preparation
and delivery of this Amendment, including, without limitation, the fees and
disbursements of Jones, Day, Reavis & Pogue, special New York counsel to
Lender.

SECTION 8. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
WITHOUT LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

SECTION 9. COUNTERPARTS. This Amendment may be executed by one or more of the
parties to this Amendment on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. A set of the copies of this
Amendment signed by the parties hereto shall be delivered to Borrowers and
Lenders.

SECTION 10. INDEMNIFICATION. Each Loan Party hereby agrees to indemnify
and hold harmless Lender and each of its respective officers, directors,
consultants, advisors, agents and assigns (collectively, the "Indemnified
                                                              -----------
Persons") against all losses, claims, damages, liabilities or other
-------
expenses (including attorneys' fees and court costs now or hereinafter
arising from the enforcement of this Amendment, the "Losses") to which any
                                                     ------
of them may become subject insofar as such Losses arise out of or are based
upon any event, circumstance or condition (a) occurring or existing on or
before the date of this Amendment relating to any financing arrangements
Lender may from time to time have with (i) a Loan Party, (ii) any Person
that shall be acquired by a Loan Party or (iii) any Person that a Loan Party
may acquire all or substantially all of the assets of, or (b) directly or
indirectly, relating to the execution and delivery of, or

                                    3

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<PAGE>

performance of any Obligations under, the Credit Agreement and the other
Restructuring Documents or this Amendment or the consummation of the
transactions contemplated hereby or thereby or to any of the Collateral or to
any act or omission of the Loan Parties in connection therewith; provided,
                                                                 --------
that the parties hereto hereby agree that nothing herein shall be deemed to
modify the maximum amount of liability of SysComm under the Stock Pledge
Agreement or the SysComm Guaranty. Notwithstanding the foregoing, the Loan
Parties shall not be obligated to indemnify Lender for any Losses incurred by
Lender which are a result of Lender's gross negligence or willful misconduct.
The indemnity provided herein shall survive the termination of this
Amendment.

SECTION 11. NOTICES. Except as otherwise expressly provided in the Credit
Agreement, any notice required or desired to be served, given or delivered
hereunder or under any other Restructuring Documents shall be in writing,
and shall be served, given or delivered in accordance with Section 9.18
                                                           ------------
of the Credit Agreement to the following addresses or number as indicated
below:

     (a) If to Lender at:                 (b) If to a Borrower at:

     IBM Credit Corporation               Applied Digital Solutions, Inc.
     1500 Riveredge Parkway               400 Royal Palm Way, Suite 410
     Atlanta, Georgia 30328               Palm Beach, Florida 33480
     Attention: Regional Manager, East    Attention: Jerome C. Artigliere
     Facsimile: (770) 644-4826            Facsimile: (561) 805-8004

     IBM Global Financing
     Special Handling Group
     North Castle Drive
     Armonk, New York 10504
     Attention: Bruce Gordon
     Facsimile: (914) 765-6268

     With a copy to:                      With a copy to:

     Jones, Day, Reavis & Pogue           Merra, Kanakis, Creme & Mellor, P.C.
     222 East 41st Street                 60 Main Street
     New York, New York 10022             Nashua, NH 03060
     Attention: James J. Salerno, Esq.    Attention: Paul Creme, Esq.
     Facsimile: (212) 755-7306            Facsimile: (603) 883-0750

SECTION 12. LIMITATION OF LIABILITY. It is expressly understood and agreed
by the parties hereto that (a) this Amendment is executed and delivered by
Wilmington Trust Company, not individually or personally but solely as
trustee of the Tranche A Borrower, in the exercise of the powers and
authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of Tranche A Borrower is
made and intended not as personal representations, undertakings and agreements
by Wilmington Trust Company but is made and

                                      4

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<PAGE>

intended for the purpose for binding only Tranche A Borrower, (c) nothing herein
contained shall be construed as creating any liability on Wilmington Trust
Company, individually or personally, to perform any covenant either expressed
or implied contained herein, all such liability, if any, being expressly waived
by the parties hereto and by any Person claiming by, through or under the
parties hereto and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or
expenses of Tranche A Borrower or be liable for the breach or failure of any
Obligation, representation, warranty or covenant made or undertaken by
Tranche A Borrower under this Amendment, the Credit Agreement or any other
Restructuring Documents.

         [Remainder of this page has been left intentionally blank]

                                     5

<PAGE>
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their respective proper and duly authorized
officers as of the day and year first above written.

IBM CREDIT CORPORATION,                  APPLIED DIGITAL SOLUTIONS, INC.,
as Lender                                as Tranche B Borrower and Tranche A
                                         Guarantor

By: /s/ Steven A. Flanagan               By: /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name: Steven A. Flanagan                 Name: Jerome C. Artigliere
Title: Manager, Global Special Handling  Title: Senior Vice President

DIGITAL ANGEL SHARE TRUST,               ADS MONTEREY, INC.,
as Tranche A Borrower and Tranche B      as Loan Party
Guarantor

By: Wilmington Trust Company, not in
    its individual capacity but solely
    as Trustee

By: /s/ W. T. Morris, II                 By: /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  W. Thomas Morris, II              Name:  Jerome C. Artigliere
Title: Financial Services Officer        Title: Treasurer

ADVANCED POWER SOLUTIONS, INC.,          THE AMERICOM GROUP, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Vice President                    Title: Treasurer

                                     6

<PAGE>
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APPLIED DIGITAL SOLUTIONS                BALVA FINANCIAL CORPORATION,
FINANCIAL CORP.,                         as Loan Party
as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: Assistant Treasurer

COMPUTER EQUITY CORPORATION,             DIGITAL ANGEL CORPORATION,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Vice President

DIGITAL ANGEL HOLDINGS, LLC,             FEDERAL CONVENTION
as Loan Party                            CONTRACTORS, INC.,
                                         as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Assistant Treasurer

FEDERAL SERVICES, INC.,                  GOVERNMENT
as Loan Party                            TELECOMMUNICATIONS, INC.,
                                         as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Assistant Treasurer

                                     7

<PAGE>
<PAGE>

INFORMATION TECHNOLOGY                   INFOTECH USA, INC.,
SERVICES, INC.,                          as Loan Party
as Loan Party

By:  /s/ Kevin McLaughlin                By:  /s/ Kevin McLaughlin
    -----------------------------------      ----------------------------------
Name:  Kevin McLaughlin                  Name:  Kevin McLaughlin
Title: President                         Title: President

PDS ACQUISITION CORP.,                   PERIMETER ACQUISITION CORP.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Assistant Treasurer

PRECISION POINT CORPORATION,             SYSCOMM INTERNATIONAL
as Loan Party                            CORPORATION,
                                         as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Kevin McLaughlin
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Kevin McLaughlin
Title: Vice President                    Title: President

U.S. ELECTRICAL PRODUCTS CORP.,          VERICHIP CORPORATION,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Treasurer                         Title: Vice President

                                     8

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WEBNET SERVICES, INC.,                   ACT COMMUNICATIONS, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Vice President

ACT-GFX CANADA, INC.,                    ADS BAY AREA, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: President

ADSI TELECOMM SERVICES, INC.,            ADSI TELECOMM SERVICES OF
as Loan Party                            MARYLAND, INC.,
                                         as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: President

ADVANCED TELECOMM OF                     ADVANCED TELECOMM OF
MARYLAND, INC.,                          PITTSBURGH,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: President

                                     9

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<PAGE>

ADVANCED TELECOMMUNICATIONS, INC.,       ARJANG, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: President

BLUE STAR ELECTRONICS, INC.,             BOSTEK, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Assistant Treasurer

CYBERTECH STATION, INC.,                 ELITE COMPUTER SERVICES, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Treasurer                         Title: Assistant Treasurer

INDEPENDENT ACQUISITION, INC.,           INTELLESALE, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: President                         Title: Assistant Treasurer

                                     10

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<PAGE>

MICRO COMPONENTS                         NEIRBOD CORP.,
INTERNATIONAL INCORPORATED,              as Loan Party
as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Assistant Treasurer

NORCOM RESOURCES, INCORPORATED,          PIZARRO RE-MARKETING, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: Treasurer

SERVICE TRANSPORT COMPANY,               TELEDATA CONCEPTS, INC.,
as Loan Party                            as Loan Party

By:  /s/ Jerome C. Artigliere            By:  /s/ Jerome C. Artigliere
    -----------------------------------      ----------------------------------
Name:  Jerome C. Artigliere              Name:  Jerome C. Artigliere
Title: Assistant Treasurer               Title: President

WYR, INC.,
as Loan Party

By:  /s/ Jerome C. Artigliere
    -----------------------------------
Name:  Jerome C. Artigliere
Title: Treasurer

                                     11

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<PAGE>

JP351362:sjr
383681-125002                       September 30, 2002

Digital Angel Share Trust
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
Attention: Corporate Trust Administration

Re:  Unanimous Written Consent of the Advisory Board of the Digital Angel
     Share Trust (the "Trust")
     --------------------------------------------------------------------

Dear Sirs:

     Pursuant to Section 4.02(e) of the Trust Agreement, dated as of
March 1, 2002, between Wilmington Trust Company, as trustee, and Applied
Digital Solutions, Inc. ("ADS"), the Advisory Board members of the Trust
hereby unanimously consent to the execution, delivery and performance by
the Trust of the Amendment to the Third Amended and Restated Term Credit
Agreement, dated as of September 30, 2002, by and among IBM Credit Corporation,
the Trust, ADS and certain other parties signatory thereto, in the form
attached hereto as Exhibit A.
                   ---------

<PAGE>
<PAGE>

Digital Angel Share Trust
September 30, 2002
Page 2

                                  Sincerely,

                                  /s/ Richard J. Sullivan
                                  --------------------------------
                                  Richard J. Sullivan

                                  /s/ William B. Sullivan
                                  --------------------------------
                                  William B. Sullivan

                                  /s/ J. Allen Kosowsky
                                  --------------------------------
                                  J. Allen Kosowsky

                                     2<PAGE>

                                                               EXHIBIT 10.22

                                                              EXECUTION COPY

                                AMENDMENT TO
            THE THIRD AMENDED AND RESTATED TERM CREDIT AGREEMENT

         This Amendment to the Third Amended and Restated Term Credit
Agreement, dated as of November 1, 2002 (this "Amendment"), by and among IBM
                                               ---------
CREDIT CORPORATION, a Delaware corporation ("Lender"), DIGITAL ANGEL SHARE
                                             ------
TRUST, a statutory trust organized and governed by the laws of the State of
Delaware ("Tranche A Borrower"), APPLIED DIGITAL SOLUTIONS, INC. (formerly
           ------------------
known as "Applied Cellular Technology, Inc."), a Missouri corporation
("Tranche B Borrower"; Tranche A Borrower and Tranche B Borrower are each
  ------------------
referred to herein as a "Borrower" or, collectively, "Borrowers"), ACT
                         --------                     ---------
COMMUNICATIONS INC., ACT-GFX CANADA, INC., ADS BAY AREA, INC., ADS MONTEREY,
INC., ADSI TELECOMM SERVICES OF MARYLAND, INC., ADSI TELECOMM SERVICES,
INC., ADVANCED TELECOMM OF MARYLAND, INC., ADVANCED TELECOMM OF PITTSBURGH,
ADVANCED TELECOMMUNICATIONS, INC., THE AMERICOM GROUP, INC., APPLIED DIGITAL
ORACLE PRACTICE, INC., APPLIED DIGITAL SOLUTIONS FINANCIAL CORP., ARJANG,
INC., BALVA FINANCIAL CORPORATION, BLUE STAR ELECTRONICS, INC., BOSTEK,
INC., COMPUTER EQUITY CORPORATION, CYBERTECH STATION, INC., ELITE COMPUTER
SERVICES, INC., FEDERAL CONVENTION CONTRACTORS, INC., FEDERAL SERVICES,
INC., GOVERNMENT TELECOMMUNICATIONS, INC., INDEPENDENT ACQUISITION, INC.,
INFORMATION TECHNOLOGY SERVICES, INC., INFOTECH USA, INC., PDS ACQUISITION
CORP., INTELLESALE, INC., MICRO COMPONENTS INTERNATIONAL INCORPORATED,
NEIRBOD CORP., NORCOM RESOURCES INCORPORATED, PERIMETER ACQUISITION CORP.,
PIZARRO RE-MARKETING, INC., PRECISION POINT CORPORATION, SERVICE TRANSPORT
COMPANY, SYSCOMM INTERNATIONAL CORPORATION, TELEDATA CONCEPTS, INC., THERMO
LIFE ENERGY CORP. F/K/A ADVANCED POWER SOLUTIONS, INC., U.S. KITE & KEY
CORP. F/K/A U.S. ELECTRICAL PRODUCTS CORP., VERICHIP CORPORATION, WEBNET
SERVICES, INC., and WYR, INC., (together with Borrowers, each, a "Loan
                                                                  ----
Party" or, collectively, the "Loan Parties").
-----                         ------------

                                  RECITALS

         WHEREAS, the Loan Parties and Lender have entered into that certain
Third Amended and Restated Term Credit Agreement, originally dated as of
March 1, 2002 and amended as of September 30, 2002 (as amended, supplemented
or otherwise modified through the date hereof, the "Credit Agreement").
                                                    ----------------

         WHEREAS, the Loan Parties have requested that Lender hereby amend
Section 7.1 of the Credit Agreement on the terms set forth in this
-----------
Amendment; and

         WHEREAS, the Lender is willing to agree to such requested amendment
to Section 7.1 of the Credit Agreement, upon the terms and conditions set
   -----------
forth herein.

<PAGE>
<PAGE>

         NOW THEREFORE, in consideration of the premises set forth herein,
and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

DEFINITIONS. All capitalized terms not otherwise defined herein shall have
the respective meanings set forth in the Credit Agreement.

CONDITIONS PRECEDENT. This Amendment shall become effective upon receipt of
this Amendment by Lender from the Loan Parties, duly executed by each Loan
Party and Lender.

AMENDMENT.  The Credit Agreement is hereby amended as follows:

Section 7.1(A)(ii) of the Credit Agreement is hereby amended by deleting
------------------
such Section 7.1(A)(ii) thereof in its entirety and substituting therefor
     ------------------
the following Section 7.1(A)(ii):
              ------------------

         "(ii)  The ratio of Consolidated Current Assets to Consolidated
Current Liabilities of MAS at any time during any period set forth below
shall not be less than the ratio set forth opposite such period below:

                Quarter Ended                    Current Ratio
                -------------                    -------------
                June 30, 2002                    1.8:1
                September 30, 2002               1.05:1
                December 31, 2002                1.09:1; and

Section 7.1(B) of the Credit Agreement is hereby amended by deleting such
--------------
Section 7.1(B) thereof in its entirety and substituting therefor the
--------------
following Section 7.1(B):
          --------------

         "(i)   Tranche B Borrower will not permit, directly or indirectly,
Consolidated EBITDA for any period set forth below to be less than the
minimum requirement set forth opposite such period below (cumulatively):

                Quarter Ended                    Minimum Requirement
                -------------                    -------------------
                September 30, 2002                 (U.S.$4,768,300)
                December 31, 2002                  (U.S.$7,648,300)

         (ii)   Consolidated EBITDA of MAS at any time during any period
set forth below shall not be less than the minimum requirement set forth
opposite such period below (cumulatively):

                Quarter Ended                    Minimum Requirement
                -------------                    -------------------
                September 30, 2002                 (U.S.$338,000)
                December 31, 2002                   U.S.$732,000

REPRESENTATIONS AND WARRANTIES. On and as of the date hereof and after
giving effect to this Amendment, each Loan Party hereby confirms, reaffirms
and restates the representations and warranties set forth in Section 5 of
                                                              --------
the Credit Agreement except to the extent that such representations and
warranties expressly relate to a specific earlier date (in which case each
Loan Party hereby confirms, reaffirms and restates such representations and
warranties as of such

                                     2

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<PAGE>

earlier date); provided that reference to the Credit Agreement in such
               --------
representations and warranties shall be deemed to refer to the Credit
Agreement as amended or waived prior to the date hereof and pursuant to this
Amendment.

RIGHTS AND REMEDIES. Lender reserves any and all rights and remedies that
Lenders now have or may have in the future with respect to Loan Parties,
including any and all rights or remedies which Lender may have in the future
as a result of Borrowers' failure to comply with any financial covenants to
Lender.

RATIFICATION OF CREDIT AGREEMENT. Except as specifically amended hereby, all
provisions of the Credit Agreement shall remain in full force and effect.
Each Loan Party hereby ratifies, confirms and agrees that the Credit
Agreement, as amended hereby, and the performance of Obligations by the Loan
Parties thereunder, represent valid and enforceable obligations of each such
Loan Party, and is not subject to any claims, offsets or defense. The
amendments provided for herein are limited to the specific Sections of the
Credit Agreement specified herein and shall not constitute an amendment or
waiver of, or an indication of the Lender's willingness to amend or waive,
any other provisions of the Credit Agreement or the same Sections for any
other date or time period (whether or not such other provisions or
compliance with such Sections for another date or time period are affected
by the circumstances addressed in this Amendment).

EXPENSES. The Loan Parties agree to pay and reimburse Lender for all its
costs and expenses incurred in connection with the preparation and delivery
of this Amendment, including, without limitation, the fees and disbursements
of Jones, Day, Reavis & Pogue, special New York counsel to Lender.

GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT
LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

COUNTERPARTS. This Amendment may be executed by one or more of the parties
to this Amendment on any number of separate counterparts (including by
telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. A set of the copies of this
Amendment signed by the parties hereto shall be delivered to Borrowers and
Lender.

INDEMNIFICATION. Each Loan Party hereby agrees to indemnify and hold
harmless Lender and each of its respective officers, directors, consultants,
advisors, agents and assigns (collectively, the "Indemnified Persons")
                                                 -------------------
against all losses, claims, damages, liabilities or other expenses
(including attorneys' fees and court costs now or hereinafter arising from
the enforcement of this Amendment, the "Losses") to which any of them may
                                        ------
become subject insofar as such Losses arise out of or are based upon any
event, circumstance or condition (a) occurring or existing on or before the
date of this Amendment relating to any financing arrangements Lender may
from time to time have with (i) a Loan Party, (ii) any Person that shall be
acquired by a Loan Party or (iii) any Person that a Loan Party may acquire
all or substantially all of the assets of, or (b) directly or indirectly,
relating to the execution and delivery of, or performance of any

                                     3

<PAGE>
<PAGE>

Obligations under, the Credit Agreement and the other Restructuring
Documents or this Amendment or the consummation of the transactions
contemplated hereby or thereby or to any of the Collateral or to any act or
omission of the Loan Parties in connection therewith; provided, that the
                                                      --------
parties hereto hereby agree that nothing herein shall be deemed to modify
the maximum amount of liability of SysComm under the Stock Pledge Agreement
or the SysComm Guaranty. Notwithstanding the foregoing, the Loan Parties
shall not be obligated to indemnify Lender for any Losses incurred by Lender
which are a result of Lender's gross negligence or willful misconduct. The
indemnity provided herein shall survive the termination of this Amendment.

NOTICES. Except as otherwise expressly provided in the Credit Agreement, any
notice required or desired to be served, given or delivered hereunder or
under any other Restructuring Documents shall be in writing, and shall be
served, given or delivered in accordance with Section 9.18 of the Credit
                                              ------------
Agreement to the following addresses or number as indicated below:

<TABLE>
<S>                                                 <C>
         (a) If to Lender at:                       (b) If to a Borrower at:

         IBM Credit Corporation                     Applied Digital Solutions, Inc.
         1500 Riveredge Parkway                     400 Royal Palm Way, Suite 410
         Atlanta, Georgia 30328                     Palm Beach, Florida 33480
         Attention: Regional Manager, East          Attention: Jerome C. Artigliere
         Facsimile: (770) 644-4826                  Facsimile: (561) 805-8004

         IBM Global Financing
         Special Handling Group
         North Castle Drive
         Armonk, New York 10504
         Attention: Bruce Gordon
         Facsimile: (914) 765-6268

         With a copy to:                            With a copy to:

         Jones, Day, Reavis & Pogue                 Merra, Kanakis, Creme & Mellor, P.C.
         222 East 41st Street                       60 Main Street
         New York, New York 10022                   Nashua, NH 03060
         Attention: James J. Salerno, Esq.          Attention: Paul Creme, Esq.
         Facsimile: (212) 755-7306                  Facsimile: (603) 883-0750
</TABLE>

LIMITATION OF LIABILITY. It is expressly understood and agreed by the
parties hereto that (a) this Amendment is executed and delivered by
Wilmington Trust Company, not individually or personally but solely as
trustee of the Tranche A Borrower, in the exercise of the powers and
authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of Tranche A Borrower is
made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company but is made and intended for the
purpose for binding only Tranche A Borrower, (c) nothing herein contained
shall be construed as creating any liability on Wilmington Trust Company,
individually or

                                     4

<PAGE>
<PAGE>

personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties
hereto and by any Person claiming by, through or under the parties hereto
and (d) under no circumstances shall Wilmington Trust Company be personally
liable for the payment of any indebtedness or expenses of Tranche A Borrower
or be liable for the breach or failure of any Obligation, representation,
warranty or covenant made or undertaken by Tranche A Borrower under this
Amendment, the Credit Agreement or any other Restructuring Documents.

         [Remainder of this page has been left intentionally blank]

                                     5

<PAGE>
<PAGE>

                                                              EXECUTION COPY
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be duly executed and delivered by their respective proper and duly
authorized officers as of the day and year first above written.

<TABLE>
<S>                                                <C>
IBM CREDIT CORPORATION,                            APPLIED DIGITAL SOLUTIONS, INC.,
as Lender                                          as Tranche B Borrower and Tranche A
                                                   Guarantor

By: /s/ Steven A. Flanagan                         By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Steven A. Flanagan                        Name:    Jerome C. Artigliere
Title:   Manager, Global Special Handling          Title:   Senior Vice President

DIGITAL ANGEL SHARE TRUST,                         ADS MONTEREY, INC.,
as Tranche A Borrower and Tranche B                as Loan Party
Guarantor

By: Wilmington Trust Company, not in its
    individual capacity but solely as Trustee

By: /s/ Mary St. Amand                             By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Wilmington Trust Company                  Name:    Jerome C. Artigliere
Title:   Trustee                                   Title    Treasurer

THERMO LIFE ENERGY CORP. f/k/a                     THE AMERICOM GROUP, INC.,
ADVANCED POWER SOLUTIONS, INC.,                    as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Vice President                            Title:   Treasurer

                                     6

<PAGE>
<PAGE>

APPLIED DIGITAL SOLUTIONS                          BALVA FINANCIAL CORPORATION,
FINANCIAL CORP.,                                   as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   Assistant Treasurer

COMPUTER EQUITY CORPORATION,                       [INTENTIONALLY OMITTED]
as Loan Party

By: /s/ Jerome C. Artigliere
    -----------------------------------------
Name:    Jerome C. Artigliere
Title:   Assistant Treasurer

[INTENTIONALLY OMITTED]                            FEDERAL CONVENTION CONTRACTORS, INC.,
                                                   as Loan Party

                                                   By: /s/ Jerome C. Artigliere
                                                       -----------------------------------------
                                                   Name:    Jerome C. Artigliere
                                                   Title:   Assistant Treasurer

FEDERAL SERVICES, INC.,                            GOVERNMENT
as Loan Party                                      TELECOMMUNICATIONS, INC.,
                                                   as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   Assistant Treasurer

                                     7

<PAGE>
<PAGE>

INFORMATION TECHNOLOGY                              INFOTECH USA, INC.,
SERVICES, INC.,                                     as Loan Party
as Loan Party

By: /s/ Kevin McLaughlin                           By: /s/ Kevin McLaughlin
    -----------------------------------------          -----------------------------------------
Name:    Kevin McLaughlin                          Name:    Kevin McLaughlin
Title:   President                                 Title:   President

PDS ACQUISITION CORP.,                             PERIMETER ACQUISITION CORP.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:     Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:    Assistant Treasurer

PRECISION POINT CORPORATION,                       SYSCOMM INTERNATIONAL
as Loan Party                                      CORPORATION,
                                                   as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Kevin McLaughlin
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Kevin McLaughlin
Title:   Vice President                            Title:   President

U.S. KITE & KEY CORP. f/k/a                        VERICHIP CORPORATION,
U.S. ELECTRICAL PRODUCTS CORP.,                    as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Treasurer                                 Title:   Vice President

                                     8

<PAGE>
<PAGE>

WEBNET SERVICES, INC.,                             ACT COMMUNICATIONS INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   Vice President

ACT-GFX CANADA, INC.,                              ADS BAY AREA, INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   President

ADSI TELECOMM SERVICES, INC.,                      ADSI TELECOMM SERVICES OF
as Loan Party                                      MARYLAND, INC.,
                                                   as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   President

ADVANCED TELECOMM OF                               ADVANCED TELECOMM OF
MARYLAND, INC.,                                    PITTSBURGH,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   President

                                     9

<PAGE>
<PAGE>

ADVANCED TELECOMMUNICATIONS,                       ARJANG, INC.,
INC.,                                              as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   President

BLUE STAR ELECTRONICS, INC.,                       BOSTEK, INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   Assistant Treasurer

CYBERTECH STATION, INC.,                           ELITE COMPUTER SERVICES, INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Treasurer                                 Title:   Assistant Treasurer

INDEPENDENT ACQUISITION, INC.,                     INTELLESALE, INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   President                                 Title:   Treasurer

                                     10

<PAGE>
<PAGE>

MICRO COMPONENTS                                   NEIRBOD CORP.,
INTERNATIONAL INCORPORATED,                        as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   Assistant Treasurer

NORCOM RESOURCES                                   PIZARRO RE-MARKETING, INC.,
INCORPORATED,                                      as Loan Party
as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   Assistant Treasurer

SERVICE TRANSPORT COMPANY,                         TELEDATA CONCEPTS, INC.,
as Loan Party                                      as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Assistant Treasurer                       Title:   President

WYR, INC.,                                         APPLIED DIGITAL ORACLE
as Loan Party                                      PRACTICE, INC.,
                                                   as Loan Party

By: /s/ Jerome C. Artigliere                       By: /s/ Jerome C. Artigliere
    -----------------------------------------          -----------------------------------------
Name:    Jerome C. Artigliere                      Name:    Jerome C. Artigliere
Title:   Treasurer                                 Title:   President
</TABLE>

                                     11

<PAGE>
<PAGE>

                                                              EXECUTION COPY

                              November 1, 2002

Digital Angel Share Trust
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
Attention: Corporate Trust Administration

Re:  Unanimous Written Consent of the Advisory Board of the Digital Angel
     Share Trust (the "Trust")
     -----------------------------------------------------------------------

Dear Sirs:

Dear Sirs:
Pursuant to Section 4.02(e) of the Trust Agreement, dated as of March 1,
2002, between Wilmington Trust Company, as trustee, and Applied Digital
Solutions, Inc. ("ADS"), the Advisory Board members of the Trust hereby
unanimously consent to the execution, delivery and performance by the Trust
of the Amendment to the Third Amended and Restated Term Credit Agreement,
dated as of November 1, 2002, by and among lBM Credit Corporation, the
Trust, ADS and certain other parties signatory thereto, in the form attached
hereto as Exhibit A.

                                          Sincerely,

                                          /s/ Richard J. Sullivan
                                          ----------------------------------
                                          Richard J. Sullivan

                                          /s/ William B. Sullivan
                                          ----------------------------------
                                          William B. Sullivan

                                          /s/ J. Allen Kosowsky
                                          ----------------------------------
                                          J. Allen Kosowsky

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