Document:

EXHIBIT 4.2

 

AMENDED
AND RESTATED DIGITAL ANGEL CORPORATION TRANSITION STOCK OPTION PLAN

 

NON-STATUTORY
STOCK OPTION AGREEMENT  FOR EMPLOYEE

 

	
  OPTIONEE:

  	
   

  	
                      

  
	
  GRANT DATE:

  	
   

  	
               ,
  200   

  
	
  NUMBER OF OPTION SHARES:

  	
   

  	
         
  Shares

  
	
  EXERCISE PRICE PER SHARE:

  	
   

  	
  $    per Share

  
	
  EXPIRATION DATE:

  	
   

  	
                      ,
  201   

  

 

THIS
AGREEMENT is made as of the Grant Date set forth above by and
between Digital Angel Corporation, a Delaware corporation (the “Company”), and
the Optionee named above, who provides services to the Company or an Affiliate
of the Company as an Employee (the “Optionee”).

 

The Company desires, by
affording the Optionee an opportunity to purchase shares of its Common Stock,
par value $0.005 per share (the “Common Stock”), as hereinafter provided, to
carry out the purpose of the Amended and Restated Digital Angel Corporation
Stock Option Plan (the “Option Plan”).

 

NOW,
THEREFORE, in consideration of the mutual covenants
hereinafter set forth, and for other good and valuable consideration, the
parties hereby agree as follows:

 

1.             Grant of Option.  The Company hereby grants to the Optionee the
right and option (the “Option”) to purchase all or any part of the aggregate
number of shares of Common Stock set forth above (the “Option Shares”) (such
number being subject to adjustment as provided in Section 9 hereof) on the
terms and subject to the conditions set forth in this Agreement.  This Option is not intended to be an “incentive
stock option” within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

2.             Purchase Price.  The per share purchase price of the Option
Shares shall be the Exercise Price Per Share set forth above (such Exercise
Price Per Share being subject to adjustment as provided in Section 9
hereof).

 

3.             Term and Exercise of Option.

 

(a)           The term of this Option shall
commence on the Grant Date set forth above and shall continue until the
Expiration Date set forth above, unless earlier terminated as provided herein.

 

 

(b)           This Option will become exercisable
as to 33-1/3% of the Option Shares
on each of              ,
200  ,              ,
200   and              ,
200  , but only if the Optionee is an Employee of the Company on each
of such dates.

 

(c)           To exercise this Option, the Optionee
shall give written notice to the Company, to the attention of its Chief
Financial Officer or other designated agent, in substantially the form attached
hereto as Exhibit A, and the Optionee shall deliver payment in full
for the Option Shares with respect to which this Option is then being
exercised, as provided in Section 4(a) below.

 

(d)           Neither the Optionee nor the Optionee’s
legal representatives, legatees or distributees, as the case may be, will be,
or will be deemed to be, a holder of any Option Shares for any purpose unless
and until certificates for such Option Shares are issued to the Optionee or the
Optionee’s legal representatives, legatees or distributees under the terms of
the Option Plan.

 

4.             Limitations on Exercise of Option.

 

(a)           The exercise of this Option will be
contingent upon receipt from the Optionee (or the purchaser acting under Section 7
below) of the full Exercise Price of such Option Shares.  Payment of the Exercise Price shall be made
in cash or by a certified or cashier’s check. 
However, in its sole discretion, the Committee may accept in payment of
the Exercise Price (i) shares of Common Stock of the Company or shares
issuable upon the exercise of this Option having an aggregate Fair Market Value
on the date of exercise which is not less than the total Exercise Price; (ii) other
property, rights, or credits deemed acceptable by the Committee, including the
Optionee’s promissory note; or (iii) any combination of cash, such shares
of Common Stock, and such other property, rights or credits as determined by
the Committee.  No Option Shares will be
issued until full payment therefor has been made and the Optionee has executed
any and all agreements that the Company may require the Optionee to execute.

 

(b)           The issuance of Option Shares upon
the exercise of this Option shall be subject to all applicable laws, rules,
and  regulations.  If, in the opinion of the Committee, (i) the
listing, registration, or qualification of the Option Shares upon any
securities exchange or under any state or federal law, (ii) the consent or
approval of any regulatory body, or (iii) an agreement of the Optionee
with respect to the disposition of the Option Shares, is necessary or desirable
as a condition to the issuance or sale of the Option Shares, this Option shall
not be exercised and/or Option Shares shall not be sold unless and until such
listing, registration, qualification, consent, approval or agreement is
effected or obtained in form satisfactory to the Committee.

 

5.             Nontransferability of Option.  This Option shall not be transferable by the
Optionee other than by will or the laws of descent and distribution, and during
the lifetime of the Optionee, this Option shall be exercisable only by the
Optionee.

 

6.             Termination of Employment or Other Services.  Unless otherwise determined in the sole discretion of the Committee and
except as set forth below, upon termination of the Optionee’s employment
or other relationship with the Company or with an Affiliate, the Optionee may,
for a period of ninety (90) calendar days after the effective date of such
termination, but in no case later than the Expiration Date set forth above,
exercise the Option to the extent it was exercisable as of the effective date
of such termination of employment.  Any
portion of this Option that is not exercisable as of the effective date of such
termination of employment shall terminate and be immediately forfeited and
neither the Optionee nor the Optionee’s heirs, personal representatives,
successors or assigns shall have any future rights with respect to such portion
of this Option.

 

2

 

Notwithstanding the foregoing, termination of the
Optionee’s employment or other relationship with the Company or with an
Affiliate by the Company for cause shall result in the immediate termination
and forfeiture of this Option Agreement and Optionee shall have no right to
exercise any unexercised portion of this Option.  For purposes hereof, “cause” shall mean (but
not be limited to) dishonesty with respect to the Company and any Affiliate,
insubordination, substantial malfeasance or non-feasance of duty, unauthorized
disclosure of confidential information, breach by the Optionee of any provision
of any employment, consulting, advisory, nondisclosure, non-competition or
similar agreement between the Optionee and the Company or any Affiliate or
conduct substantially prejudicial to the business of the Company or any
Affiliate.  The determination of the Committee
as to the existence of “cause” will be conclusive on the Optionee and the
Company.  “Cause” is not limited to
events which have occurred prior to an Optionee’s termination of service, nor
is it necessary that the Committee’s finding of “cause” occur prior to
termination.  If the Commmittee
determines, subsequent to an Optionee’s termination of service, that either
prior or subsequent to the Optionee’s termination the Optionee engaged in
conduct which would constitute “cause” then the right to exercise this Option
is forfeited.  Any definition in an
agreement between the Optionee and the Company or an Affiliate, which contains
a conflicting definition of “cause” for termination and which is in effect at
the time of such termination, shall supersede the definition in this Agreement
with respect to this Optionee.

 

The Committee shall be permitted to extend the period
of exercise for a period not to exceed the Expiration Date set forth above or
three (3) years, whichever is shorter, provided the Committee determines
in its sole discretion that: (i) such extension to be appropriate, and (ii) termination
did not occur by the Company for “cause”, and in each case, Optionee agrees in
writing to not pursue employment at a competing business as defined by the
Committee and with such additional terms as the Committee determines is
adequate in its sole discretion.  Nothing
herein shall require an extension of the period of exercise by the Committee.

 

7.             Death of Optionee.  Unless otherwise determined in the sole
discretion of the Committee, if the Optionee dies while employed by or
otherwise providing services to the Company or an Affiliate, this Option may be
exercised to the same extent that the Optionee would have been entitled to
exercise it at the date of death and may be exercised within a period of three (3) years
after the date of death, but in no case later than the Expiration Date set
forth above.  In such event, this Option
shall be exercisable only by the executors or administrators of the Optionee or
by the person or persons to whom the Optionee’s rights under the Option shall
pass by the Optionee’s will or the laws of descent and distribution.  Any portion of an Option that is not
exercisable at the time of an Optionee’s death shall automatically terminate.

 

8.             No Right to Continue to Provide Services.  This Option does not and will not confer upon
the Optionee any right to continue providing services to the Company or an
Affiliate of the Company as an Employee, nor will it affect or interfere in any
way with the Company’s right or the Affiliate’s right to terminate the Optionee’s
employment or other services at any time.

 

9.             Adjustments.  In the event of any change in the outstanding
shares of Common Stock by reason of any stock dividend, stock split, reverse
stock split, reclassification, combination, exchange of shares, or other
similar recapitalization of the Company, the Committee shall make an
appropriate and proportionate adjustment to the number of Option Shares and the
per share Exercise Price Per Share hereunder so that the Optionee then shall
receive for the aggregate Exercise Price paid by the Optionee upon exercise of
this Option the number of shares the Optionee would have received if this
Option had been exercised before such recapitalization event occurred.  No adjustment shall be made under this Section 10
upon the issuance by the Company of any warrants, rights, or options to acquire
additional Common Stock or of securities convertible into Common Stock unless
such warrants, rights, options or convertible securities are issued to all
shareholders of the Company on a proportionate basis.

 

3

 

10.          Change of
Control.  In the event of a Change in Control, this
Option shall become fully vested and shall immediately become fully exercisable.

 

11.          Limitation
on Payments and Benefits. 
Notwithstanding anything in this Agreement to the contrary, if any of
the payments or benefits to be made or provided in connection with this
Agreement, together with any other payments, benefits or awards which the
Optionee has the right to receive from the Company, or any corporation which is
a member of an “affiliated group” (as defined in Section 1504(a) of
the Code without regard to Section 1504(b) of the Code) of which the
Company is a member (“Affiliate”), constitute an “excess parachute payment” (as
defined in Section 280G(b) of the Code), such payments, benefits or
awards to be made or provided in connection with this Agreement, or any other
agreement between the Optionee and the Company or its Affiliates, may be
reduced, eliminated, modified or waived to the extent necessary to prevent all,
or any portion, of such payments, benefits or awards from becoming “excess
parachute payments” and therefore subject to the excise tax imposed under Section 4999
of the Code.  The Optionee will have the
sole right and discretion to determine whether the payments, benefits or awards
to be made or provided in connection with this Agreement, or any other
agreement between the Optionee and the Company, should be reduced, and whether
or not such other agreement with the Company or an Affiliate expressly
addresses the potential application of Section 280G or Section 4999
of the Code (including, without limitation, that “payments” under such
agreement be reduced).  The Optionee will
also have the right to designate the particular payments, benefits or awards
that are to be reduced, eliminated, modified or waived; provided that no such
adjustment will be made if it results in additional expense to the Company in
excess of expenses the Company would have experienced if no adjustment had been
made.  The determination as to whether
any such decrease in the payments or benefits is necessary must be made in good
faith by legal counsel or a certified public accountant selected by the Optionee
and reasonably acceptable to the Company, and such determination will be
conclusive and binding upon the Optionee and the Company.  Unless otherwise determined in the sole
discretion of the Committee, the Optionee shall pay any and all fees, costs and
expenses of the counsel or accountant selected by the Optionee to make the determinations
under this Section 11.

 

12.          Interpretation.  The interpretation and construction of any
provision of the Option Plan and this Option shall be made by the Committee and
shall be final, conclusive and binding on the Optionee and all other persons.

 

13.          Definitions;
Option Plan Governs.  Any
capitalized term used herein that is not expressly defined herein shall have
the meaning ascribed to it in the Option Plan. 
This Option is in all respects subject to and governed by all of the
provisions of the Option Plan.

 

(The remainder of this page was intentionally left blank.)

 

4

 

[Signature Page to
Non-Statutory Stock Option Agreement]

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be
executed in its corporate name by its duly authorized officer, and the Optionee
has executed this Agreement as of the Grant Date set forth above.

 

	
  COMPANY:

  	
  Digital Angel
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin N. McGrath

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
  OPTIONEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name Typed or Printed

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SSN:

  	
   

  	
  -

  	
   

  	
  -

  	
   

  	
   

  
										

 

5

 

EXHIBIT A

NOTICE OF EXERCISE
OF

STOCK OPTION

 

TO:

 

FROM:

 

DATE:

 

RE:                          Exercise of Stock
Option

 

I hereby exercise my
option to purchase        shares of
Common Stock at $       per share (total exercise
price of $         ).  This notice is given in accordance with the
terms of my Non-Statutory Stock Option Agreement (“Agreement”) dated                 .  The option price and vested amount is in
accordance with Sections 2 and 3 of the Agreement.

 

Check one or more, as applicable:

 

o                                    Enclosed is cash,
or a cashier’s or certified check payable to Digital Angel Corporation (the “Company”)
for the total exercise price of the shares being purchased.

 

o                                    Attached is a
certificate(s) for         shares
of common stock duly endorsed in blank and surrendered for the exercise price
of the shares being purchased.*

 

o                                    I want to exercise
my option by surrendering a sufficient number of shares of Common Stock
issuable upon exercise of such option to pay the exercise price.*

 

o                                    I want to exercise
my option by issuing to the Company my promissory note in the amount of $     
and/or by transferring to the Company the following property, rights or other
benefits:                                                      .*

 

*The use of each of these
alternatives is subject to the approval of the Company.

 

Please prepare the stock
certificate in the following name(s):

 

	
  Sincerely,

  
	
   

  
	
   

  	
   

  
	
  (Signature)

  
	
   

  
	
   

  	
   

  
	
  (Print or Type Name)

  
	
   

  
	
   

  
	
  Letter and
  consideration

  
	
  received on

  	
   

  	
   

  
	
  (effective date of
  exercise)EXHIBIT 4.3

 

AMENDED
AND RESTATED DIGITAL ANGEL CORPORATION TRANSITION STOCK OPTION PLAN

 

NON-STATUTORY
STOCK OPTION AGREEMENT FOR DIRECTOR

 

	
  OPTIONEE:

  	
                                 

  
	
  GRANT DATE:

  	
               ,
  200  

  
	
  NUMBER OF OPTION SHARES:

  	
          
  Shares

  
	
  EXERCISE PRICE PER SHARE:

  	
  $      per Share

  
	
  EXPIRATION DATE:

  	
                  ,
  201  

  

 

THIS
AGREEMENT is made as of the Grant Date set forth above by and
between Digital Angel Corporation, a Delaware corporation (the “Company”), and
the Optionee named above, who provides services to the Company or an Affiliate
of the Company as a Director (the “Optionee”).

 

The Company desires, by
affording the Optionee an opportunity to purchase shares of its Common Stock,
par value $0.005 per share (the “Common Stock”), as hereinafter provided, to
carry out the purpose of the Amended and Restated Digital Angel Corporation
Stock Option Plan (the “Option Plan”).

 

NOW,
THEREFORE, in consideration of the mutual covenants
hereinafter set forth, and for other good and valuable consideration, the
parties hereby agree as follows:

 

1.             Grant of Option.  The Company hereby grants to the Optionee the
right and option (the “Option”) to purchase all or any part of the aggregate
number of shares of Common Stock set forth above (the “Option Shares”) (such
number being subject to adjustment as provided in Section 9 hereof) on the
terms and subject to the conditions set forth in this Agreement.  This Option is not intended to be an “incentive
stock option” within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

2.             Purchase
Price.  The per share purchase
price of the Option Shares shall be the Exercise Price Per Share set forth
above (such Exercise Price Per Share being subject to adjustment as provided in
Section 9 hereof).

 

3.             Term and Exercise of Option.

 

(a)           The term of this Option shall
commence on the Grant Date set forth above and shall continue until the
Expiration Date set forth above, unless earlier terminated as provided herein.

 

(b)           This Option will become exercisable
as to 33-1/3% of the Option Shares on each of

 

 

             ,
200  ,              ,
200  and              ,
200  , but only if the Optionee is a Director of the Company on each
of such dates.

 

(c)           To exercise this Option, the Optionee shall give written notice to
the Company, to the attention of its Chief Financial Officeror other designated
agent, in substantially the form attached hereto as Exhibit A, and
the Optionee shall deliver payment in full for the Option Shares with respect
to which this Option is then being exercised, as provided in Section 4(a) below.

 

(d)           Neither the Optionee nor the Optionee’s
legal representatives, legatees or distributees, as the case may be, will be,
or will be deemed to be, a holder of any Option Shares for any purpose unless
and until certificates for such Option Shares are issued to the Optionee or the
Optionee’s legal representatives, legatees or distributees under the terms of
the Option Plan.

 

4.             Limitations on Exercise of Option.

 

(a)           The exercise of this Option will be
contingent upon receipt from the Optionee (or the purchaser acting under Section 7
below) of the full Exercise Price of such Option Shares.  Payment of the Exercise Price shall be made
in cash or by a certified or cashier’s check. 
However, in its sole discretion, the Committee may accept in payment of
the Exercise Price (i) shares of Common Stock of the Company or shares
issuable upon the exercise of this Option having an aggregate Fair Market Value
on the date of exercise which is not less than the total Exercise Price; (ii) other
property, rights, or credits deemed acceptable by the Committee, including the
Optionee’s promissory note; or (iii) any combination of cash, such shares
of Common Stock, and such other property, rights or credits as determined by
the Committee.  No Option Shares will be
issued until full payment therefor has been made and the Optionee has executed
any and all agreements that the Company may require the Optionee to execute.

 

(b)           The issuance of Option Shares upon
the exercise of this Option shall be subject to all applicable laws, rules,
and  regulations.  If, in the opinion of the Committee, (i) the
listing, registration, or qualification of the Option Shares upon any
securities exchange or under any state or federal law, (ii) the consent or
approval of any regulatory body, or (iii) an agreement of the Optionee
with respect to the disposition of the Option Shares, is necessary or desirable
as a condition to the issuance or sale of the Option Shares, this Option shall
not be exercised and/or Option Shares shall not be sold unless and until such
listing, registration, qualification, consent, approval or agreement is
effected or obtained in form satisfactory to the Committee.

 

5.             Nontransferability of Option.  This Option shall not be transferable by the
Optionee other than by will or the laws of descent and distribution, and during
the lifetime of the Optionee, this Option shall be exercisable only by the
Optionee.

 

6.             Termination of Services. 
Upon termination
of the Optionee’s relationship with the Company or with an Affiliate
after                ,
200 , other than on account of the death of the Optionee, the Option shall
remain exercisable after the termination of the Optionee’s relationship with the
Company as to the then vested shares until the expiration of the term of the
Option set forth in Paragraph 3.  If the
Option is not exercised during its term, it shall be deemed to have been
forfeited and of no further force or effect. 
Any portion of this Option that is not exercisable as of the effective
date of such termination shall terminate and be immediately forfeited and
neither the Optionee nor the Optionee’s heirs, personal representatives,
successors or assigns shall have any future rights with respect to such portion
of this Option.

 

2

 

Notwithstanding the foregoing, termination of the
Optionee’s relationship with the Company or with an Affiliate by the Company
for cause shall result in the immediate termination and forfeiture of this
Option Agreement and Optionee shall have no right to exercise any unexercised
portion of this Option.  For purposes
hereof, “cause” shall mean (but not be limited to) dishonesty with respect to
the Company and any Affiliate, insubordination, substantial malfeasance or
non-feasance of duty, unauthorized disclosure of confidential information,
breach by the Optionee of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or similar agreement between the
Optionee and the Company or any Affiliate or conduct substantially prejudicial
to the business of the Company or any Affiliate.  The determination of the Committee as to the
existence of “cause” will be conclusive on the Optionee and the Company.  “Cause” is not limited to events which have
occurred prior to an Optionee’s termination of service, nor is it necessary
that the Committee’s finding of “cause” occur prior to termination.  If the Commmittee determines, subsequent to
an Optionee’s termination of service, that either prior or subsequent to the
Optionee’s termination the Optionee engaged in conduct which would constitute “cause”
then the right to exercise this Option is forfeited.  Any definition in an agreement between the
Optionee and the Company or an Affiliate, which contains a conflicting
definition of “cause” for termination and which is in effect at the time of
such termination, shall supersede the definition in this Agreement with respect
to this Optionee.

 

7.             Death of Optionee.  Unless otherwise determined in the sole
discretion of the Committee, if the Optionee dies while employed by or
otherwise providing services to the Company or an Affiliate, this Option may be
exercised to the same extent that the Optionee would have been entitled to
exercise it at the date of death and may be exercised within a period of three (3) years
after the date of death, but in no case later than the Expiration Date set
forth above.  In such event, this Option
shall be exercisable only by the executors or administrators of the Optionee or
by the person or persons to whom the Optionee’s rights under the Option shall
pass by the Optionee’s will or the laws of descent and distribution.  Any portion of an Option that is not
exercisable at the time of an Optionee’s death shall automatically terminate.

 

8.             No Right to Continue to Provide Services.  This Option does not and will not confer upon
the Optionee any right to continue providing services to the Company or an
Affiliate of the Company as a Director, nor will it affect or interfere in any
way with the Company’s right or the Affiliate’s right to terminate the Optionee’s
services at any time.

 

9.             Adjustments.  In the event of any change in the outstanding
shares of Common Stock by reason of any stock dividend, stock split, reverse
stock split, reclassification, combination, exchange of shares, or other
similar recapitalization of the Company, the Committee shall make an
appropriate and proportionate adjustment to the number of Option Shares and the
per share Exercise Price Per Share hereunder so that the Optionee then shall
receive for the aggregate Exercise Price paid by the Optionee upon exercise of
this Option the number of shares the Optionee would have received if this
Option had been exercised before such recapitalization event occurred.  No adjustment shall be made under this Section upon
the issuance by the Company of any warrants, rights, or options to acquire
additional Common Stock or of securities convertible into Common Stock unless
such warrants, rights, options or convertible securities are issued to all
shareholders of the Company on a proportionate basis.

 

10.          Change of Control.  In the event of a Change in Control, this Option shall become fully
vested and shall immediately become fully exercisable.

 

11.          Limitation
on Payments and Benefits. 
Notwithstanding anything in this Agreement to the contrary, if any of
the payments or benefits to be made or provided in connection with this
Agreement, together with any other payments, benefits or awards which the
Optionee has the right to receive from the Company, or any corporation which is
a member of an “affiliated group” (as defined in Section 1504(a) of

 

3

 

the Code without regard to Section 1504(b) of the Code) of
which the Company is a member (“Affiliate”), constitute an “excess parachute
payment” (as defined in Section 280G(b) of the Code), such payments,
benefits or awards to be made or provided in connection with this Agreement, or
any other agreement between the Optionee and the Company or its Affiliates, may
be reduced, eliminated, modified or waived to the extent necessary to prevent
all, or any portion, of such payments, benefits or awards from becoming “excess
parachute payments” and therefore subject to the excise tax imposed under Section 4999
of the Code.  The Optionee will have the
sole right and discretion to determine whether the payments, benefits or awards
to be made or provided in connection with this Agreement, or any other agreement
between the Optionee and the Company, should be reduced, and whether or not
such other agreement with the Company or an Affiliate expressly addresses the
potential application of Section 280G or Section 4999 of the Code
(including, without limitation, that “payments” under such agreement be
reduced).  The Optionee will also have
the right to designate the particular payments, benefits or awards that are to
be reduced, eliminated, modified or waived; provided that no such adjustment
will be made if it results in additional expense to the Company in excess of
expenses the Company would have experienced if no adjustment had been
made.  The determination as to whether
any such decrease in the payments or benefits is necessary must be made in good
faith by legal counsel or a certified public accountant selected by the
Optionee and reasonably acceptable to the Company, and such determination will
be conclusive and binding upon the Optionee and the Company.  Unless otherwise determined in the sole
discretion of the Committee, the Optionee shall pay any and all fees, costs and
expenses of the counsel or accountant selected by the Optionee to make the determinations
under this Section 11.

 

12.          Interpretation.  The interpretation and construction of any
provision of the Option Plan and this Option shall be made by the Committee and
shall be final, conclusive and binding on the Optionee and all other persons.

 

13.          Definitions;
Option Plan Governs.  Any
capitalized term used herein that is not expressly defined herein shall have
the meaning ascribed to it in the Option Plan. 
This Option is in all respects subject to and governed by all of the
provisions of the Option Plan.

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be
executed in its corporate name by its duly authorized officer, and the Optionee
has executed this Agreement as of the Grant Date set forth above.

 

	
  COMPANY:

  	
  Digital Angel
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin N. McGrath

  
	
   

  	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
  OPTIONEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name Typed or Printed

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SSN:

  	
   

  	
  -

  	
   

  	
  -

  	
   

  	
   

  	
   

  
											

 

4

 

EXHIBIT A

NOTICE OF EXERCISE
OF

STOCK OPTION

 

TO:

 

FROM:

 

DATE:

 

RE:                          Exercise of Stock
Option

 

I hereby exercise my
option to purchase               shares
of Common Stock at $       per share (total
exercise price of $            ).  This notice is given in accordance with the
terms of my Non-Statutory Stock Option Agreement (“Agreement”) dated                 .  The option price and vested amount is in
accordance with Sections 2 and 3 of the Agreement.

 

Check one or more, as applicable:

 

o                                    Enclosed is cash,
or a cashier’s or certified check payable to Digital Angel Corporation (the “Company”)
for the total exercise price of the shares being purchased.

 

o                                    Attached is a
certificate(s) for                      shares
of common stock duly endorsed in blank and surrendered for the exercise price
of the shares being purchased.*

 

o                                    I want to exercise
my option by surrendering a sufficient number of shares of Common Stock
issuable upon exercise of such option to pay the exercise price.*

 

o                                    I want to exercise
my option by issuing to the Company my promissory note in the amount of $     
and/or by transferring to the Company the following property, rights or other
benefits:                                                      .*

 

*The use of each of these
alternatives is subject to the approval of the Company.

 

Please prepare the stock
certificate in the following name(s):

 

	
  Sincerely,

  
	
   

  
	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print or Type Name)

  
	
   

  
	
  Letter and
  consideration

  
	
  received on 

  	
   

  	
   

  
	
  (effective date of
  exercise)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]