Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10.34

Summary of Executive Salary and Bonus Arrangements

The table below summarizes the current annual salary and bonus arrangements we have with each
of our current executive officers. All of the compensation arrangements we have with our executive
officers, including with respect to annual salaries and bonuses, are reviewed and may be modified
from time to time by the Compensation Committee of our Board of Directors. The Compensation
Committee approved the annual salary and bonus arrangements noted in the table below.

We have written employment arrangements with each of our executive officers, and a copy of
each such employment arrangement is filed as an exhibit to the accompanying Annual Report on Form
10-K. The non-salary and bonus components of our compensation arrangements with our executive
officers, including with respect to severance, option grants and other benefits, are described in
those respective agreements. We generally pay bonuses, if any, to our executive officers on a
quarterly basis. Certain of our executive officers participate in the executive bonus plan that was
adopted by the Compensation Committee on February 9, 2005, a description of which is filed as
Exhibit 10.33 to the accompanying Annual Report on Form 10-K. In addition to the bonus arrangements
noted in the table below, all of our executive officers are eligible for discretionary bonuses as
determined from time to time by the Compensation Committee.

	 	 	 	 	 	 	 	 	 
	 	 	Annual	 	 	 	 
	Executive Officer	 	Base Salary	 	 	Bonus	 
	Frank F. Khulusi

Chairman, President and Chief Executive Officer
	 	$	800,000	 	 	 	(1	)
	 
	 	 	 	 	 	 	 	 
	Brandon H. LaVerne

Interim Chief Financial Officer, Treasurer and Chief Accounting Officer
	 	$	206,748	 	 	 	(2	)
	 
	 	 	 	 	 	 	 	 
	Kristin M. Rogers

Executive Vice President—Sales and Marketing
	 	$	335,000	 	 	 	(1	)
	 
	 	 	 	 	 	 	 	 
	Daniel J. DeVries

Executive Vice President—Consumer
	 	$	275,000	 	 	 	(1	)
	 
	 	 	 	 	 	 	 	 
	Robert I. Newton

General Counsel and Secretary
	 	$	300,000	 	 	 	(3	)

 

			
	(1)	 	Mr. Khulusi, Ms. Rogers and Mr. DeVries are eligible to participate in our executive bonus
plan referenced above.
	 
	(2)	 	Mr. LaVerne is eligible to receive an annual bonus of up to $56,000, paid in quarterly
installments, as well as discretionary bonuses as determined from time to time by the
Compensation Committee.
	 
	(3)	 	Mr. Newton is eligible to receive an annual bonus of up to $120,000, paid in quarterly
installments, as well as discretionary bonuses as determined from time to time by the
Compensation Committee.Filed by Bowne Pure Compliance

 

EXHIBIT 10.35

Summary of Director Compensation Arrangements

We currently pay each director who is not employed by us or any of our affiliates (i.e., all
of our directors except for our Chairman, Frank F. Khulusi) a quarterly retainer of $7,000, plus
$2,500 for each regular board meeting attended in person or telephonically, $1,000 for each special
board meeting attended in person or telephonically and $1,000 for each committee meeting attended
in person or telephonically. We also pay the chairperson of the Audit Committee of our Board of
Directors an additional quarterly retainer of $3,125 and the chairperson of the Compensation
Committee of our Board of Directors an additional quarterly retainer of $1,250 for serving in such
capacities. Directors who are employed by us or any of our affiliates are not paid any additional
compensation for their service on our Board of Directors. We reimburse each of our directors for
reasonable out-of-pocket expenses that they incur in connection with attending board or committee
meetings. We have entered into indemnification agreements, a form of which is attached as an
exhibit to our Annual Report on Form 10-K for the year ended
December 31, 2007, with each of our
directors.

Our directors are also eligible to participate in our 1994 Stock Incentive Plan, as amended,
which is administered by our Compensation Committee under authority delegated by our Board of
Directors. The terms and conditions of option and stock bonus grants to our non-employee directors
under our 1994 Stock Incentive Plan, as amended, are determined in the discretion of our
Compensation Committee, and must be consistent with the terms of the 1994 Stock Incentive Plan, as
amended, which is filed as an exhibit to the accompanying Annual Report on Form 10-K.

The compensation arrangements we have with our directors are reviewed and may be modified from
time to time by our Board of Directors.Filed by Bowne Pure Compliance

 

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:

 

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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.]

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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   
                   
                   
      

Name: Scott Bluestein

Title: Authorized Signatory

KALLINA CORPORATION

By: LAURUS CAPITAL MANAGEMENT, LLC

Its: Investment Manager

By: /s/ Scott Bluestein   
                   
                   
      

Name: Scott Bluestein

Title: Authorized Signatory

VALENS U.S. SPV I, LLC

By: VALENS CAPITAL MANAGEMENT, LLC

Its: Investment Manager

By: /s/ Scott Bluestein   
                   
                   
      

Name: Scott Bluestein

Title: Authorized Signatory

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VALENS OFFSHORE SPV I, LTD

By: VALENS CAPITAL MANAGEMENT, LLC

Its: Investment Manager

By: /s/ Scott Bluestein   
                   
                   
      

Name: Scott Bluestein

Title: Authorized Signatory

VALENS OFFSHORE SPV II, CORP.

By: VALENS CAPITAL MANAGEMENT, LLC
 

Its: Investment Manager

By: /s/ Scott Bluestein  
                   
                   
       

Name: Scott Bluestein

Title: Authorized Signatory

PSOURCE STRUCTURED DEBT LIMITED

By: LAURUS CAPITAL MANAGEMENT, LLC

Its: Investment Manager

By: /s/ Scott Bluestein  
                   
                   
       

Name: Scott Bluestein

Title: Authorized Signatory

APPLIED DIGITAL SOLUTIONS, INC.

By: /s/ Patricia Petersen  
                   
                   
    

Name: Patricia Petersen

Title: Assistant Secretary

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