Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.4

RESTRICTED STOCK AWARD AGREEMENT

THIS AGREEMENT (the “Agreement”) is entered into as of this 28th day of February
2007, between Roberts Realty Investors, Inc., a Georgia corporation (the “Company”), and Charles R.
Elliott (the “Grantee”).

Background:

A. The 2006 Roberts Realty Investors, Inc. Restricted Stock Plan (the “Plan”) was approved and
adopted by the Company’s shareholders at the annual meeting of shareholders on August 21, 2006.

B. The Compensation Committee of the Company’s Board of Directors (the “Board”) duly approved
the grant of restricted shares of the Company’s Common Stock to the Grantee on the terms described
in this Agreement, and in consideration of the issuance of such restricted shares, the Grantee
intends to remain in the employ of the Company.

NOW, THEREFORE, as an employment incentive and to encourage stock ownership, and also in
consideration of the premises and the mutual covenants contained herein, the Company and the
Grantee agree as follows.

1. RESTRICTED STOCK.

1.1 Grant of Restricted Stock.

(a) The Company hereby grants to the Grantee Six Thousand Two Hundred and Fifty (6,250) shares
of Common Stock (the “Restricted Stock”), subject to the restrictions described in Paragraph 1.2 of
this Agreement. The parties acknowledge that the closing price of the Company’s common shares
listed on the American Stock Exchange (or any successor exchange on which the shares are listed) as
of the date on which the restricted shares were granted was $7.69 per share. As the restrictions
set forth in Paragraph 1.2 of this Agreement lapse in accordance with the terms of this Agreement
as to all or a portion of the Restricted Stock, such shares shall no longer be considered
Restricted Stock for purposes of this Agreement.

(b) The Company hereby directs that a stock certificate or certificates representing the
shares of the Restricted Stock shall be registered in the name of and issued to the Grantee,
although the Company shall hold the stock certificate or certificates until the restrictions lapse
as provided in the Plan. Such stock certificate or certificates shall be subject to such
stop-transfer orders and other restrictions as the Company may deem necessary or advisable under
applicable federal and state securities laws, and the Company may cause legends to be placed on
such certificate or certificates to make appropriate reference to such restrictions.

(c) The Company shall not be required to deliver any certificate for shares of Restricted
Stock granted under this Plan until all of the following conditions have been fulfilled:

(i) the admission of such shares to listing on all stock exchanges on which the Stock is then
listed;

(ii) the completion of any registration or other qualification of such shares that the Company
deems necessary or advisable under any federal or state law or under the rulings or regulations of
the SEC or any other governmental regulatory body; and

 

 

 

(iii) the obtaining of any approval or other clearance from any federal or state governmental
agency or body that the Company determines to be necessary or advisable.

1.2 Restrictions.

(a) The Grantee shall have all rights and privileges of a shareholder as to the Restricted
Stock, including the right to vote, except that, subject to Paragraph 1.3(b) hereof, the following
restrictions shall apply:

(i) None of the Restricted Stock may be sold, transferred, assigned, pledged or otherwise
encumbered or disposed of during the Restricted Period (as defined below), except pursuant to rules
adopted by the Company.

(ii) Unless this subparagraph 1.2(a)(ii) is crossed out and initialed and other substitute
provisions are added and initialed in the space provided below, the right to dividends on the
Restricted Stock shall be treated as follows. All dividends, if any, on the Restricted Stock shall
be (x) deferred until the lapsing of the relevant restrictions and (y) held by the Company for the
account of the Grantee until such lapsing. In the event of such deferral, there shall be credited
at the end of each year (or portion of it) interest on the amount of the account at the beginning
of the year at a rate per annum equal to the prime rate as published from time to time in The Wall
Street Journal. Payment of deferred dividends, together with interest on those dividends, shall be
made upon the lapsing of restrictions imposed on the Restricted Stock, and any dividends deferred
(together with any interest on those dividends) in respect of the Restricted Stock shall be
forfeited upon any forfeiture of the Restricted Stock under Paragraph 1.4.

 

 

 

(b) Any attempt to dispose of Restricted Stock in a manner contrary to the restrictions set
forth in this Agreement shall be ineffective.

1.3 Restricted Period.

(a) Unless this subparagraph 1.3(a) is crossed out and initialed and other substitute
provisions are added and initialed in the space provided below, and except as provided in
subparagraph 1.3(d) below, the restrictions set forth in Paragraph 1.2 shall apply to all of the
Restricted Stock until June 1, 2007 (the “Restriction Termination Date,” with the period from
issuance of the Restricted Stock to the Restriction Termination Date being referred to in this
Agreement as the “Restriction Period”). Any periods of leave without pay taken by the Grantee
prior to the Restriction Termination Date shall not be treated as credited service for purposes of
vesting the stock, and the Restricted Period shall be extended by the length of such periods of
leave unless the Company, in its sole discretion, finds that a waiver of the extension would be in
the best interests of the Company.

 

 

 

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(b) Notwithstanding Paragraph 1.2, the Company may, in its sole discretion, when it finds that
a waiver would be in the best interests of the Company, waive in whole or in part any or all
remaining restrictions with respect to the Restricted Stock.

(c) Nothing in this Agreement shall preclude the Grantee from exchanging any Restricted Stock
for any other shares of Common Stock that are similarly restricted.

(d) For purposes of this Agreement, the term “Change in Control Transaction” means any of the
following transactions to which the Company is a party: (A) a merger, consolidation,
reorganization, share exchange, combination or other transaction or series of transactions (other
than a public offering by the Company for cash of the Company’s capital stock, debt or other
securities, and other than ordinary public trading of such securities) in which securities
possessing more than 50% of the total combined voting power of the Company’s outstanding securities
are transferred to a person or persons different from the persons holding those securities
immediately prior to such transaction; (B) the sale or other disposition of all or substantially
all of the assets of the Company to a third party; (C) the complete liquidation or dissolution of
the Company; or (D) a change in the composition of the Board as a result of which fewer than
one-half of the directors comprising the Board after such change are directors who either: (x) had
been directors of the Company 24 months prior to such change; or (y) were elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the directors who had
been directors of the Company 24 months prior to such change and who were still in office at the
time of the election or nomination. If a Change in Control Transaction occurs at any time when the
Grantee’s rights have not been terminated under Paragraph 1.4, then (1) if the Change in Control
Transaction arises from a transaction or other event described in clause (A), (B) or (C) of the
preceding sentence, then the Restriction Period shall lapse at least 10 days before the closing or
occurrence of the specified Change in Control Transaction; or (2) if the Change in Control
Transaction arises from a transaction or other event described in clause (D) of the preceding
sentence, then the Restriction Period shall lapse on the closing or occurrence of the specified
Change in Control Transaction.

1.4 Forfeiture. If the Grantee’s employment with the company or any subsidiary of the Company
employing the Grantee on the date of this Agreement shall terminate for any reason during the
Restricted Period, all rights of the Grantee to the then remaining Restricted Stock (and, if
applicable, any special dividends or other special distributions with respect to the Restricted
Stock) shall terminate and be forfeited (except (i) as provided in Paragraph 1.3(b) or as otherwise
determined by the Company pursuant to Paragraph 1.3(b), or (ii) if the Grantee is then employed by
an affiliate of the Company, in which event this Agreement shall remain in effect).

1.5 Withholding. The Company may withhold from any cash payments due from the Company to the
Grantee all taxes, including social security taxes, that the Company is required or otherwise
authorized to withhold with respect to the Restricted Stock granted hereunder.

1.6 2006 Roberts Realty Investors, Inc. Restricted Stock Plan. The Grantee hereby agrees and
acknowledges that the Restricted Stock and this Agreement shall be subject to the Plan, which is
incorporated into this Agreement by reference in its entirety. To the extent the terms under this
Agreement conflict with the terms of the Plan, the terms of the Plan shall control.

 

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2. NOTICES.

All notices or communications hereunder shall be in writing and addressed as follows:

To the Company:

Roberts Realty Investors, Inc.

450 Northridge Parkway

Suite 302

Atlanta, GA 30350

Attn: Corporate Secretary

To the Grantee:

To the last known address of the Grantee as appearing in the Grantee’s
personnel or other records as maintained by the Company.

3. ASSIGNMENT.

This Agreement shall be binding upon and inure to the benefit of the heirs and representatives
of the Grantee and the assigns and successors of the Company, but neither this Agreement nor any
rights hereunder shall be assignable or otherwise subject to hypothecation by the Grantee except as
permitted in the Plan.

4. ENTIRE AGREEMENT; AMENDMENT; TERMINATION.

Except as provided in Section 1.6 with respect to the Plan, this Agreement represents the
entire agreement of the parties with respect to the subject matter hereof and supersedes all prior
written or oral understandings and agreements. Subject to the provisions of the Plan, this
Agreement may be amended or terminated at any time by written agreement of the parties to or as
provided herein.

5. GOVERNING LAW.

This Agreement and its validity, interpretation, performance and enforcement shall be governed
by the substantive laws of the State of Georgia without regard to any rules regarding
conflict-of-law or choice-of-law.

6. NO RIGHT TO CONTINUED EMPLOYMENT; EFFECT ON OTHER PLANS.

This Agreement shall not, of itself, confer upon the Grantee any right with respect to
continuance of employment by the Company, nor shall it interfere in any way with the right of the
Company to terminate the Grantee’s employment at any time. Income realized by the Grantee pursuant
to this Agreement shall not be included in the Grantee’s earnings for the purpose of any benefit
plan of the entity in which the Grantee may be enrolled or for which the Grantee may become
eligible unless otherwise specifically provided for in such plan.

 

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IN WITNESS HEREOF, the Company and the Grantee have duly executed this Agreement, as of the
date written on the first page of this Agreement.

	 	 	 	 	 
	ROBERTS REALTY INVESTORS, INC.	 	GRANTEE: Charles R. Elliott
	 
	 	 	 	 
	 
	 	 	 	 
	By:

	 	/s/ Charles S. Roberts
	 	/s/ Charles R. Elliott
	 

	 	 
	 	 
	Name:

	 	Charles S Roberts
	 	Signature
	 
	 	 	 	 
	Title:

	 	President and Chief Executive Officer	 	 

 

5Filed by Bowne Pure Compliance

 

Exhibit 10.26

AMENDMENT NO. 4 TO

SECURITIES PURCHASE AGREEMENT

This Amendment to Securities Purchase Agreement (this “Amendment”) is dated as of May
7, 2007 by and between Digital Angel Corporation, a Delaware corporation (the “Company”),
and Imperium Master Fund, Ltd. (the “Investor”) and is made with reference to that certain
Securities Purchase Agreement dated as of February 6, 2007 (the “Purchase Agreement”)
between the Company and the Investor, pursuant to which the Company issued to the Investor a 10.25%
Senior Secured Debenture (the “Debenture”) and a Warrant to purchase common stock of the
Company (the “Warrant”). Capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Purchase Agreement and the Debenture, as
applicable.

WHEREAS, pursuant to Section 4.10(b)(vi) of the Purchase Agreement, the Liabilities of
Signature shall at all times be less than $2,000,000;

WHEREAS, the Company believes that the Liabilities of Signature may be greater than $2,000,000
at some point in the upcoming year and has requested that section 4.10(b)(vi) of the Purchase
Agreement be amended;

WHEREAS, in exchange for granting the requested amendment and to avoid the need for future
amendments and/or waivers, the Investor has asked the Company to agree to restructure the terms of
the Purchase Agreement, Debenture and Warrant.

NOW THEREFORE, for consideration, the adequacy of which is hereby acknowledged by all parties,
the parties hereto hereby agree to the following:

1. Amendment to Section 4.10(b) of the Purchase Agreement. Section 4.10(b) of the Purchase
Agreement is hereby amended and restated in relevant part to read as follows:

“4.10 Limitation on Debt and Liens; Financial Covenants.

(b) ...

During the period beginning on the Execution Date and ending on the Termination Date, the
Company shall, and shall ensure that each of the Company Subsidiaries, comply with each of
the following financial covenants:

...

(vi) the Liabilities of Signature shall at all times be less than:

(A) $2,600,000 during the period commencing February 6, 2007
through May 5, 2008; and

(B) $2,000,000 during the period commencing on May 6, 2008 and
ending on the Termination Date.”

 

 

 

2. Addition of Sections 4.23 and 4.24 to the Purchase Agreement. Section 4 of the Purchase
Agreement is further amended to add the following two covenants:

“4.23 Covenant to Restructure. The Company and the Investor shall (i) by June 7,
2007 execute a binding term sheet setting forth mutually acceptable terms for revising and
restructuring this Securities Purchase Agreement, the Debenture and Warrant (the
“Negotiation Deadline”), and (ii) by July 7, 2007 execute a revised and
restructured Securities Purchase Agreement, Debenture, and Warrant pursuant to the terms of
such term sheet (the “Documentation Deadline”). The failure to meet either the
Negotiation Deadline or the Documentation Deadline shall be an Event of Default under the
Debenture. Effective immediately upon such Event of Default the Debenture shall thereafter
bear Interest on the unpaid principal amount thereof at an annual rate equal to 15.25%.
Notwithstanding any other provision in the Debenture, the foregoing remedy shall be the
sole and exclusive remedy for such Event of Default.

4.24 No Prepayment Prior to Documentation Deadline. Notwithstanding any other
provision in this Securities Purchase Agreement or the Debenture, the Company shall have no
right to effect a Prepayment of the Debenture prior to the Documentation Deadline.”

3. Entire Agreement; Amendment. This Amendment contains the entire understanding of the
parties with respect to the matters covered hereby and, except as specifically set forth herein,
neither the Company nor the Investor makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Amendment may be waived or amended other than by
a written instrument signed by the party against whom enforcement of any such amendment or waiver
is sought.

4. Governing Law. This Amendment shall be governed by and construed and enforced in accordance
with the laws of the State of New York applicable to agreements executed and to be performed
entirely within such State.

5. Counterparts. This Amendment may be executed in one or more counterparts, each of which
shall be deemed an original, and all of which together shall constitute one and the same
instrument.

6. Authorization. The parties hereby represent and warrant to each other that the signatories
hereto have full power and authority to sign this Amendment for an on behalf of the entities for
which they purport to be signing and that their signatures hereto shall be binding and enforceable
upon the purported parties hereto.

All other terms and provisions of the Purchase Agreement shall remain the same and in full
force and effect.

[Signature Page Follows]

 

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In Witness Whereof, the parties hereto have executed this Amendment to Securities Purchase
Agreement as of the date set forth in the first paragraph hereof.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	DIGITAL ANGEL CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kevin N. McGrath
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Kevin N. McGrath
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President and CEO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	IMPERIUM MASTER FUND, LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Maurice Hryshko
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Maurice Hryshko
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Counsel

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