Document:

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                                                                   EXHIBIT 10.24

                            SECOND DEED OF TRUST NOTE

$6,600,000.00                                                Baltimore, Maryland
                                                                   July 31, 1997

         FOR VALUE RECEIVED, The Heartlands Retirement Community-Ellicott City
I, Inc., a Maryland corporation, promises to pay to Mercantile Mortgage
Corporation, a Maryland corporation, or order at its principal office 20 S.
Charles Street, 3rd Floor, Baltimore, MD 21201, or at such other place as may be
designed in writing by the holder of this note, the principal sum of Six Million
Six Hundred Thousand Dollars ($6,600,000.00), with interest from date at the
rate of eight per centum (8%) per annum on the unpaid balance until paid. The
principal and interest shall be payable in monthly installments as follows:

         Payments of interest only shall be due and payable commencing on the
first day of August, 1997 and on the first day of each month thereafter up to
and including the first day of November, 1998. Thereafter commencing on the
first day of December __, 1998, monthly installments of principal and interest
shall be paid on the sum of Forty-Six Thousand Eight Hundred Seventy-Seven
Dollars and Twenty-Two Cents ($46,877.22) each and such payments shall continue
monthly on the first day of each month until the entire indebtedness has been
paid. In any event, the balance of principal (if any) remaining unpaid plus
accrued interest, shall be due and payable on the first day of November, 2033.
The installment of principal and interest shall be applied first to interest at
the rate of eight percent (8%) per annum upon the principal sum or so much
thereof as from time to time may remain unpaid, and the balance shall be applied
to the principal.

         If default be made in the payment of any installment under this note,
and if such default is not made good prior to the due date of the next such
installment, the entire principal sum and accrued interest shall at once become
due and payable without notice, at the option of the holder of this note.
Failure to exercise this option shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default.

         Prepayment provisions - See additional provisions in Rider attached.

         All parties to this note, whether principal, surety, guarantor, or
endorser hereby waive presentment for payment, demand, protest, notice of
protest, and notice of dishonor.

         IN TESTIMONY WHEREOF, the Heartlands Retirement Community-Ellicott City
I, Inc. has caused this instrument to be executed in its corporate name of John
H. Gurley, its Vice President, its Secretary, and its corporate seal to be
hereunto affixed, all as of the day, month, and year first above written.

                                     THE HEARTLANDS RETIREMENT
                                     COMMUNITY-CITY I, INC.

                                     By:  /s/ John H. Gurley
                                        -------------------------------------
                                          John H. Gurley, Vice President

WITNESS: /s/

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                  Secretary

         This note is identified by the signature of one of the Trustees in the
Deed of Trust securing it.

WITNESS/ATTEST:

                  /s/                /s/ Paul W. Parkes
                                     -----------------------------------
                                     Paul W. Parkes, Trustee

                  /s/                /s/ Michael S. Cordes
                                     -----------------------------------
                                     Michael S. Cordes, Trustee

         THIS IS TO CERTIFY that this is the note described in, and secured by,
Deed of Trust of even date herewith, and in the same principal amount as herein,
and covering real estate in the County of Howard, State of Maryland.

         Dated this 31 day of July, 1997.

                                     /s/
                                     -----------------------------------
                                     Notary Public

            STATE OF MARYLAND

                Loan No.

   -----------------------------------

           Deed of Trust Note

   -----------------------------------

        The Heartlands Retirement

     Community-Ellicott City I, Inc.

                   TO

     Mercantile Mortgage Corporation

              No. 052-12030

     Insured under 241 of the National
Housing Act and Regulations published
thereunder

     In effect on June 20, 1997

     To the extent of advances approved
by the Secretary of Housing and Urban
Development acting by and through the
Federal Housing Commissioner

By:  /s/ MaryAnn Henderson
   -----------------------------------
          (Authorized Agent)

Date:  7/31/97

     A total  sum of  $____________  has
been approved for insurance hereunder by
the Secretary of Housing and Urban
Development acting by and through the
Federal Housing Commissioner.

By:__________________________________
          (Authorized Agent)

Date:________________________________

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               RIDER ATTACHED TO AND MADE A PART OF SECOND DEED OF

               TRUST NOTE DATED JULY 31, 1997 FROM THE HEARTLANDS

                  RETIREMENT COMMUNITY-ELLICOTT CITY I, INC., A

                         MARYLAND CORPORATION ("MAKER")

                       TO THE ORDER OF MERCANTILE MORTGAGE

                             CORPORATION ("LENDER")

                              ADDITIONAL PROVISIONS

         NOTWITHSTANDING ANY OTHER PROVISION CONTAINED IN THIS NOTE, IT IS
AGREED THAT THE EXECUTION OF THIS NOTE SHALL IMPOSE NO PERSONAL LIABILITY ON THE
MAKER HEREOF FOR PAYMENT OF THE INDEBTEDNESS EVIDENCED HEREBY AND IN THE EVENT
OF A DEFAULT, THE HOLDER OF THIS NOTE SHALL LOOK SOLELY TO THE PROPERTY
DESCRIBED IN THE MORTGAGE AND TO THE RENTS, ISSUES AND PROFITS THEREFORE IN
SATISFACTION OF THE INDEBTEDNESS EVIDENCED HEREBY AND WILL NOT SEEK OR OBTAIN
ANY DEFICIENCY OR PERSONAL JUDGMENT AGAINST THE MAKER HEREOF EXCEPT SUCH
JUDGMENT OR DECREE AS MAY BE NECESSARY TO FORECLOSE AND BAR ITS INTEREST IN THE
ROPERTY AND ALL OTHER PROPERTY MORTGAGED, PLEDGED, CONVEYED OR ASSIGNED TO
SECURE PAYMENT OF THIS NOTE EXCEPT AS SET OUT IN THE DEED OF TRUST OF EVEN DATE
GIVEN TO SECURE THIS INDEBTEDNESS.

         Maker represents and warrants that the loan evidenced by this Deed of
Trust Note was made and transacted solely for the investment within the meaning
of said Commercial Law Article, Title 12, Section 101 and 103(e) of the
Annotated Code of Maryland, (1990 Repl. Vol.).

         Notwithstanding anything herein contained to the contrary, Maker shall
not have the right to prepay the indebtedness evidenced hereby in part or in
whole at any time to the fifth (5th) anniversary of the date of final
endorsement of this Deed of Trust Note by the Secretary of Housing and Urban
Development ("HUD") (the "Fifth Anniversary"). Maker shall have the right, at
any time from and after the Fifth Anniversary, to prepay the indebtedness
evidenced hereby in whole, but not in part, on the first day of any month prior
to maturity upon at least thirty (30) days' prior written notice to the holder
of this Deed of Trust Note accompanied by the following prepayment premiums:
Sixth Year - 5% of the unpaid principal balance: Seventh Year - 3% of the unpaid
principal balance: Eighth Year - 1% of the unpaid principal balance: Ninth Year
until maturity - no prepayment premium, at which time, Maker may prepay Deed of
Trust Note, in whole or in part, without premium penalty or change therefor.

         Notwithstanding any prepayment prohibition imposed and/or penalty
required by this Note with respect to prepayments made prior to the Eight
Anniversary of the date of the final endorsement of this Note, the indebtedness
may be prepaid in part or in full without the consent of the mortgagee and
without prepayment penalty of HUD determines that prepayment will avoid a
mortgage insurance claim and is therefore in the best interest of the Federal
Government.

         In the event any installment or part of any installment due hereunder
becomes delinquent for more than fifteen (15) days, there shall be due at the
option of the holder hereof, in addition to other sums then due hereunder, a sum
equal to two percent (2%) of the amount of principal and interest so delinquent.

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WITNESS:                             BORROWER:

                                     THE HEARTLANDS RETIREMENT
                                     COMMUNITY-ELLICOTT CITY I, INC.
                                     a Maryland corporation

/s/                                  By:  /s/ John H. Gurley             (SEAL)
                                        -----------------------------------
                                          John H. Gurley, Vice President<PAGE>

                                                                Exhibit 10.1
                      [Applied Digital Solutions Logo]

FOR IMMEDIATE RELEASE:
----------------------

INVESTOR CONTACT                                          MEDIA CONTACT
----------------                                          -------------
LORI ALEXANDER                                            MATTHEW COSSOLOTTO
PHONE: 561-805-8013                                       PHONE: 914-245-9721
INVESTOR@ADSX.COM                                         MATTHEW@OVATIONS.COM
-----------------                                         --------------------

               APPLIED DIGITAL SOLUTIONS AGREES TO FORBEARANCE
            AGREEMENT WITH IBM CREDIT, LLC, THE COMPANY'S SENIOR
                               SECURED LENDER

           RICHARD J. SULLIVAN ANNOUNCES RETIREMENT FROM COMPANY -
            SCOTT R. SILVERMAN ASSUMES TITLES OF CHAIRMAN AND CEO

PALM BEACH, FL - MARCH 27, 2003 - APPLIED DIGITAL SOLUTIONS, INC. (NASDAQ:
ADSX), an advanced technology development company, announced today that it
has agreed to the terms of a forbearance agreement with IBM Credit LLC, the
Company's senior secured lender, granting Applied Digital more favorable
loan repayment terms and more time in which to meet its current obligations
to IBM Credit. The specific terms of the agreement have been attached as an
exhibit to the Company's form 8-K to be filed today.

In summary, the terms of the agreement include, but are not limited to, the
following:

     o    The forbearance by IBM Credit of the current outstanding
          obligation (of approximately $95 million) owed by Applied Digital,
          subject to continued compliance with the covenants in the
          Forbearance Agreement and Credit Agreement.

     o    Various purchase rights of Applied Digital to buy back its
          existing indebtedness from IBM Credit. These rights include a
          one-time payment, on or before June 30, 2003, of $30 million. If
          this particular payment is made, Applied Digital would satisfy its
          full obligation to IBM Credit.

     o    A substantial reduction in the effective interest rate.

     o    The implementation of certain agreed procedures, including
          the engagement of an investment banker, to facilitate the
          valuation and potential sale of some or all of the shares
          of Digital Angel Corporation held beneficially by Applied
          Digital through the Digital Angel Share Trust.

     o    The imposition of additional limitations on permitted expenditures
          by Applied Digital and a requirement that the Company take steps
          towards valuing and, if necessary, selling some of its assets.

     o    The dismissal of the complaint filed by Applied Digital on March
          6, 2003, against IBM Credit and IBM Corporation.

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The Company also announced that Richard J. Sullivan has retired from his
positions as Chairman and CEO, effective March 21, 2003. Applied Digital's
Board of Directors negotiated a severance agreement, reduced from the terms
of Mr. Sullivan's existing employment contract, providing for a one-time
payment of approximately $10.6 million in restricted stock instead of a
potential $17 million obligation contained in Mr. Sullivan's employment
contract.

At the request of the Board of Directors, Scott R. Silverman, who has served
as Applied Digital's President since March 2002 and who led the most recent
discussions with IBM Credit, will assume the titles of Chairman and CEO,
effective immediately.

A graduate of The University of Pennsylvania (1985) and Villanova University
School of Law (1989), Mr. Silverman, 39, began his career as an attorney
specializing in commercial litigation and communications law. He has served
as General Counsel and later as President of ATI Communications, Inc. In
1996, ATI Communications was acquired by Applied Digital Solutions, Inc.
From 1997 to 1999, Mr. Silverman was Vice President, Business Development
of Applied Digital. From 1999 to 2001, Mr. Silverman operated his own
private-investment banking firm and has provided consulting,
merger/acquisition, restructuring and capital market services to
public and private companies. Mr. Silverman returned to Applied Digital as a
consultant in mid-year 2001.

ABOUT APPLIED DIGITAL SOLUTIONS, INC.
Applied Digital Solutions is an advanced technology development company that
focuses on a range of life-enhancing, personal safeguard technologies, early
warning alert systems, miniaturized power sources and security monitoring
systems combined with the comprehensive data management services required to
support them. Through its Advanced Technology Group, the Company specializes
in security-related data collection, value-added data intelligence and
complex data delivery systems for a wide variety of end users including
commercial operations, government agencies and consumers. Applied Digital
Solutions is the beneficial owner of a majority position in Digital Angel
Corporation (AMEX: DOC). For more information, visit the Company's website
at http://www.adsx.com.

Statements about the Company's future expectations, including future
revenues and earnings, and all other statements in this press release other
than historical facts are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and as that term is defined in the Private Litigation
Reform Act of 1995. Such forward-looking statements involve risks and
uncertainties and are subject to change at any time, and the Company's
actual results could differ materially from expected results. The Company
undertakes no obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.

                                    # # #

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