Document:

<PAGE>

                                                               Exhibit 10.67

                                                                           1

                     MASTER PRODUCT PURCHASING AGREEMENT
                     -----------------------------------

         This Agreement, to take effect as of the date of its signature by
both parties hereto, is by and between VeriChip Corporation, a Delaware,
U.S.A. corporation having offices at 400 Royal Palm Way, Palm Beach, FL
33480, United States of America (hereinafter referred to as "VeriChip" or
the "Company"), and Digital Applied Technologies, a corporation, with
                    ----------------------------
principal offices at 620 Swans Terrace, Coconut Creek, FL 33073 (hereinafter
                     ------------------------------------------
referred to as "Purchaser"). Purchaser and the Company may hereinafter be
referred to as the "Parties" and individually, as a "Party".

                                 WITNESSETH:

         WHEREAS, VeriChip markets highly sophisticated identification
devices and readers; and

         WHEREAS, Purchaser wishes to purchase, for its own use or for
promotion and sale within the United States, the Company's products listed
in EXHIBIT "A" attached hereto (the "Products"); and the Company wishes to
make sell such Products, subject to the terms and conditions of this
Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and
conditions hereinafter contained, the Parties hereby agree as follows:

                           SECTION 1. DEFINITIONS

In this Agreement, capitalized terms shall have the meanings set forth in
this Section 1. Definitions, or elsewhere in the provisions of this
Agreement:

(a)      "Agreement" means this "International Product Purchasing
         Agreement", and any and all Exhibits referenced herein, signed by
         both Parties.

(b)      "Company Confidential Information" means all of the Company's
         information already in the possession of, or subsequently obtained
         by, Purchaser, either (1) in writing and marked with a restrictive
         legend, such as "Confidential", or (2) in writing, orally, visually
         or by delivery of items which are, at the time of disclosure or
         within (thirty) 30 days after its disclosure, identified as
         confidential information, all to the extent that such information
         or material has not been made publicly available by the Company.
         The use of "Company Confidential Information" is subject to the
         provisions of Section 9, hereof.

(c)      "Date of Delivery" is the date the Product ordered by Purchaser is
         delivered F.O.B. Miami, Florida, U.S.A. to Purchaser's agent.

(d)      "End User" or "User" is anyone who acquires Products for its, his
         or her own use and not for resale.

(e)      "Price List" means the list of the Company's wholesale list price
         for the Products, as quoted by the Company from time to time. The
         Company's List Price in effect as of the date hereof is attached
         hereto as EXHIBIT "B" - Price List.

<PAGE>
<PAGE>

                                                                           2

(f)      "Product" or "Products" means each of the Company's product or
         products listed in EXHIBIT "A" - Products, attached hereto, and any
         copy or part thereof, documentation, updates, or other materials
         delivered to Purchaser by the Company in conjunction with the
         Products. The Company may alter, improve, change or discontinue any
         of the Products at any time.

(g)      "Term" shall mean the period while this Agreement is in effect,
         i.e. from the date it is executed until terminated pursuant to
         Section 11.14.

(h)      "Trademarks" means any trademarks, service marks and trade names
         which the Company may at any time have adopted, used or registered,
         which identify either the Company or the Products, or are used by
         the Company in relation to and in connection with the Products.

                      SECTION 2. PARTIES' RELATIONSHIP

The Parties hereby agree that:

2.1      Purchaser is not an agent of the Company. This Agreement does not
         constitute a joint venture, agency or partnership between the
         Parties, nor does it create an employer-employee relationship.
         Neither Party is a legal representative, partner, franchisee,
         employee or associate of the other, legally or otherwise.

2.2      Neither Party has the power to assume nor will assume or create any
         obligations on behalf of the other, nor make any representations or
         warranties about the other. Purchaser has no power, express or
         implied, to accept any order on behalf of the Company or to bind
         the Company, either directly or indirectly, with respect to any
         order or with respect to any other contract or matter whatsoever.

2.3      Purchaser is free to select its sales personnel and establish their
         compensation, and manage its business, in each case as it deems
         appropriate.

2.4      Nothing in this Agreement shall be construed as prohibiting or
         placing any restrictions whatsoever on the Company's right (i) to
         market, promote, distribute, license or sell any Products to or for
         the benefit or use of any person, firm or company the Company may
         select in its sole discretion; or (ii) to appoint distributors of
         the Products that may sell Products.

2.5      In partial consideration of the distribution rights granted by the
         Company to the Distributor hereunder, Distributor shall pay to the
         Company a non-recurring and non-refundable fee in the amount of

         a)       The Distribution Fee shall be due and payable in U.S.
                  Dollars on the date of execution of this Agreement, and
                  shall be fully earned by the Company when paid.

         Distributor hereby expressly agrees that the Distributor Fee shall
         not in any way or under any circumstances be credited against or
         applied to amounts due for any Products ordered by Distributor
         under this Agreement, including without limitation, Products
         ordered pursuant to Section 7.2 below.

<PAGE>
<PAGE>

                                                                           3

                 SECTION 3. GENERAL OBLIGATIONS OF PURCHASER

3.1      Customer Support. Purchaser shall handle and promptly settle any
         ----------------
         User's customer complaints concerning the Products, following the
         Company's guidance included in the Company's operations guide
         provided by the Company to Purchaser (the "Operations Guide"), as
         amended from time to time in the sole discretion of the Company.
         Purchaser agrees to assist the Company in arranging for any
         customer warranty service.

3.2      Expenses. Purchaser assumes full responsibility for all costs and
         --------
         expenses which it incurs in carrying out its obligations hereunder,
         including but not limited to all rentals, salaries, commissions,
         advertising, demonstrations, travel and accommodation expenses
         without the right to reimbursement for any portion thereof from the
         Company.

3.3      Other General Obligations Of Purchaser. Subject to all applicable
         --------------------------------------
         laws and regulations, Purchaser undertakes the following
         obligations on a continuing basis:

         (a)      Adherence to Business Ethics and Laws
                  -------------------------------------

                  Purchaser shall adhere to the highest principles of
                  business ethics. Without limiting the generality of the
                  foregoing, Purchaser shall comply with all applicable laws
                  and regulations.

         (b)      Contacts with the Press and Other Media
                  ---------------------------------------

                  Purchaser shall not make any statement or distribute any
                  material concerning the Company to the press or other
                  communications media, except for (i) materials provided to
                  Purchaser by the Company for publication and (ii)
                  statements and materials otherwise approved in writing by
                  the Company. Purchaser shall promptly bring to the
                  Company's attention and deliver to it copies of any
                  articles in the press concerning the Company and/or the
                  Products of which Purchaser may be aware.

          (c)     No Exports
                  ----------

                  Purchaser shall not sell any Products outside of the
                  United States and shall use its best efforts to ensure
                  that Products it sells are not resold outside of the
                  United States.

3.4      Purchaser's Representations and Warranties. Purchaser hereby
         ------------------------------------------
         represents and warrants to the Company that: (i) Purchaser is a
         business organization duly organized and in good standing in
         accordance with the laws of its state of incorporation; (ii)
         Purchaser has duly authorized the execution and performance of this
         Agreement; (iii) this Agreement is lawful and may be performed in
         accordance with its terms as of the date hereof; and (iv) Purchaser
         is a business organization with the required personnel duly trained
         to market and sell products similar to the Products, transportation
         to distribute such Products, warehouses to store them and a
         computer system which allows a detailed control of stocks and
         sales.

          SECTION 4. GENERAL OBLIGATIONS OF THE COMPANY; WARRANTIES

4.1      The Company warrants that the Products will be free from defects in
         material and workmanship. The Company shall replace or repair, at
         its option, any Products that within thirty (15) days from the Date
         of Delivery are found defective in material or workmanship, upon
         written notification by Purchaser identifying each and every
         defect. The Company's obligation with respect to such Products
         shall be limited to repair or replacement, without any further
         expense to the Company. Any alteration, abuse, modification or
         misuse, including, but not limited to, neglect or accidental damage
         or defacement of the Products shall void this limited warranty. THE
         FOREGOING LIMITED WARRANTY IS EXPRESSLY MADE IN LIEU OF ANY AND ALL
         OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
         LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
         A PARTICULAR PURPOSE. The foregoing limited warranty shall not be
         enlarged or affected by, and no liability or obligation shall arise
         from, the Company's

<PAGE>
<PAGE>

                                                                           4

         rendering of technical or other advice, or of service, in
         connection with any of the Products. Employees, agents,
         distributors and sales representatives are not authorized to make
         warranties. Oral or written statements made by them do not
         constitute warranties and shall not be relied on by Purchaser.
         REPLACEMENT OR REPAIR OF A DEFECTIVE PRODUCT IS PURCHASER'S SOLE
         AND EXCLUSIVE REMEDY FOR CONTRACT, WARRANTY, NEGLIGENCE, TORT OR
         STRICT LIABILITY CLAIMS FOR ANY LOSS, DAMAGE OR EXPENSE ARISING OR
         ALLEGED TO ARISE FROM THE MANUFACTURE, SALE, DELIVERY OR USE OF THE
         PRODUCTS. IN NO EVENT SHALL THE COMPANY BE LIABLE FOR LOSS OF USE
         OR PROFITS, LOSS OF BUSINESS, EXPENSES OR COSTS ARISING FROM OR
         ALLEGED TO ARISE FROM BUSINESS INTERRUPTION, ATTORNEYS' EXPENSES OR
         CONSEQUENTIAL, CONTINGENT, INCIDENTAL OR SPECIAL DAMAGES CAUSED OR
         ALLEGED TO BE CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE, TORT,
         STRICT LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY OR OTHER
         BREACH OF DUTY OF OR BY THE COMPANY. Purchaser shall obtain
         shipping instructions and a return material authorization from the
         Company for the return of any item under this warranty provision.
         Compliance with such instructions shall be a condition precedent to
         the Company's repair or replacement options hereunder.

4.2      The Company shall make commercially reasonable efforts to provide
         Purchaser with the latest Product information and, upon Purchaser's
         request, any information concerning the technical aspects of the
         Products, their use and application.

4.3      The Company does not guarantee the results of, and Purchaser will
         not be entitled to rely on, any marketing plan of the Company.

4.4      The Company represents that: (i) it is a corporation duly
         incorporated and in good standing under the laws of the State of
         Delaware, United States of America; and (ii) it has duly authorized
         the execution and performance of this Agreement.

                        SECTION 5. ORDER FOR PRODUCTS

5.1      Order. Purchaser shall order Products from the Company using the
         -----
         Company's purchase order form in effect from time to time.
         Distributor shall submit its Purchase Orders for Products to the
         Company in writing, by facsimile, overnight reputable overnight
         courier or, if agreed to by the Company, e-mail. All Purchase
         Orders shall list the Products ordered, quantities, applicable
         prices, scheduled delivery dates, delivery point, shipping
         instructions and any other information deemed necessary by the
         Company. IN CASE OF CONFLICTS OR INCONSISTENCY BETWEEN THE TERMS
         AND CONDITIONS OF THIS AGREEMENT AND THOSE SET FORTH IN ANY
         PURCHASE ORDERS, ACCEPTANCES, CORRESPONDENCE, AND OTHER DOCUMENTS
         FORMING PART OF ANY ORDER DURING THE TERM OF THIS AGREEMENT, THIS
         AGREEMENT SHALL GOVERN AND PREVAIL, AND THE CONFLICTING OR
         INCONSISTENT TERMS AND CONDITIONS OF ANY SUCH OTHER DOCUMENTS SHALL
         BE DEEMED DELETED AND SHALL NOT BE BINDING UPON EITHER PARTY.
         Distributor shall ensure that its Purchase Orders are received by
         the Company at least forty-five (45) days prior to the delivery
         dates requested in the order.

<PAGE>
<PAGE>

                                                                           5

5.2      Acceptance of Orders. All Purchase Orders from Distributor are
         --------------------
         subject to acceptance in writing by the Company, at its offices in
         Palm Beach, FL U.S.A. The Company may expressly accept or reject
         each Purchase Order, or the Company may show its acceptance by
         providing to Distributor the appropriate transaction documents,
         including, but not limited to, invoices (showing item, quantity,
         price, amount due, and other typical invoice information), and
         order acknowledgments (confirming Products and quantities ordered),
         or by sending the Products to Distributor. Each Purchase Order
         shall be deemed to be an offer by Distributor to purchase the
         Products pursuant to the terms of this Agreement, and, if accepted
         by the Company shall give rise to a contract on the terms set forth
         herein to the exclusion of any additional or contrary terms set
         forth in the Purchase Order. Distributor may cancel its Purchase
         Order in writing prior to its acceptance by the Company.

5.3      Acceptance of Products. Distributor shall either accept or reject
         ----------------------
         the Products within a fifteen- (15) day period after the Date of
         Delivery. Distributor's rejection may be for one of the following
         reasons only: (i) pursuant to Section 4,or (ii) because the
         Products delivered did not correspond to the applicable purchase
         order. Distributor's failure to give the Company written notice of
         rejection within such fifteen- (15) day period shall be deemed
         acceptance of the Products by Distributor. Distributor shall also
         be deemed to have accepted the Products by signing a transaction
         document requiring its signature, or providing the Products to
         Resellers, if any, or Users, or making any payment, including
         partial payments, to the Company for such Products.

5.4      Initial Order. Purchaser shall purchase from the Company, and the
         -------------
         Company shall sell to Purchaser, the following Products: 100
         VeriChip microchips, 10 Scanners and to the Global Verichip
         Registry Service at the prices set forth in Exhibit "B" - Price
         List, all in accordance with the terms of this Agreement. Purchaser
         shall submit to the Company a delivery request schedule, and the
         Company shall make a good faith effort to comply with the requested
         schedule. Notwithstanding the foregoing, the Company shall supply
         all of the Products ordered in this Section 5.1 no later than ______
         and the Purchaser shall pay for all such Products no later than

5.5      Delivery, Insurance, Title And Risk Of Loss. The Company will make
         -------------------------------------------
         reasonable efforts to meet Purchaser's delivery requirements for
         Products. The Company will inform Purchaser of the estimated
         delivery date and, at Purchaser's request, keep it informed of its
         status; provided, however, that in no event shall the Company be
         liable for the consequences of any delays in delivery due. All
         delivery of Products to Purchaser shall be F.O.B. at the offices of
         the Company. Purchaser shall be responsible for transportation and
         insurance of the Products after delivery. Such insurance shall
         provide full coverage from the time the Products are delivered
         until Purchaser shall have paid the Company for such Products in
         full.

         The Company bears the risk of loss or of damage to the Products
         until their delivery, as provided in the preceding paragraph.
         Thereafter, Purchaser assumes such risks. Title passes on delivery.

5.6      Reports. Purchaser hereby agrees, to aid the Company with its
         -------
         marketing, to provide the Company with sales information, as
         reasonably requested from time to time.

<PAGE>
<PAGE>

                                                                           6

                             SECTION 6. PAYMENTS

6.1      Deposit. Within 5 days from the date hereof, Purchaser shall pay to
         -------         -
         the Company U.S. $ (the - "Deposit"), $ () as a deposit and will be
                                               -
         reflected as a credit to Purchaser, to be applied against future
         amounts owed to the Company by Purchaser.

6.2      Related Charges: The following are related charges
         ----------------

         (a)      Taxes and Duties: Any taxes and duties resulting from the
                  ----------------
                  sale of Products, license or related activities hereunder,
                  as the case may be, except taxes based on the Company's
                  net income. Purchaser must provide the Company with a
                  resale tax exemption certificate if applicable. Upon
                  request, Purchaser will, from time to time, provide such
                  certificates or pay applicable sales tax on the purchase
                  of the Products.

         (b)      Additional Charges:
                  ------------------

                  Depending on the particular Product or circumstances (e.g.
                  special packaging or printing requested by Purchaser),
                  additional charges may apply, of which the Company will
                  inform Purchaser in writing.

         (c)      Training and Development
                  ------------------------

                  The Company shall provide training and development, as
                  requested by Purchaser, at a rate of U.S.$100 per hour,
                  plus travel and other reasonable expenses. The training
                  materials and any of the information conveyed to Purchaser
                  shall remain the intellectual property of the Company.
                  Purchaser is under no obligation whatsoever to purchase
                  training and development services.

6.3      Payment Schedule.
         ----------------

         Purchaser shall make payments for the Products in accordance with
         the following schedule:

         (a)      Upon order, 50% of the Purchase Price.

         (b)      Prior to delivery, 50% of the Purchase Price.

         (c)      Within 30 days of invoice for any Related Charges: the
                  amount of such Related Charges pursuant to Section 6.2.

         Depending on credit history, the Company may change these payment
         terms by amending this agreement pursuant to Section 11.6; other
         payment terms set forth in a purchase order are not valid.

         For the initial order, payment shall be made as follows:

         (i)      Within 10 days of the date hereof: the Deposit as provided
                  in Section 6.1;

         (ii)     Upon or prior to delivery of any Product: 50% of the
                  Purchase Price for the Products being delivered;

         (iii)    Within 30 days of delivery of Products: 50% of the
                  Purchase Price for the Products so delivered.

         (iv)     Within 30 days of invoice for any Related Charges: the
                  amount of such Related Charges pursuant to Section 6.2.

         Payments shall be made in cash, in U.S. dollars, by wire transfer
         of immediately available funds. Notwithstanding the foregoing,
         after the Deposit is paid, the Purchaser may apply any credits it
         has on account (including the credit it will have by reason of
         paying the Deposit) to any amount owing under Sections 6.3(b),
         6.3(c), 6.3(iii) or 6.3(iv) by providing written notice to the
         Company.

6.4      Packaging and Shipment. Unless Purchaser requests otherwise, all
         ----------------------
                  Products purchased by Purchaser shall be packed for
                  shipment and storage in accordance with the Company's
                  standard commercial practices which Purchaser represents
                  and warrants to know and accept. Any special packaging
                  requirements requested by Purchaser shall be at
                  Purchaser's expense pursuant to Section 6.2.

<PAGE>
<PAGE>

                                                                           7

                     SECTION 7. LIMITATION TO LIABILITY

7.1      Limitation of Liability and Remedies. Purchaser understands and
         ------------------------------------
         agrees that regardless of the basis on which damages can be claimed
         by Purchaser, Resellers and/or Users, Purchaser's, Resellers'
         and/or Users' exclusive remedy and the Company's exclusive
         liability shall be limited as follows:

         (a)      Actual Damages. The Company shall be responsible for no
                  --------------
                  more than the lesser of (i) the amount of any actual loss
                  or damage solely, or (ii) the aggregate payments received
                  by the Company for the Product that is the subject of the
                  claim.

         (b)      Consequential Damages. UNDER NO CIRCUMSTANCES, EXCEPT AS
                  ---------------------
                  REQUIRED BY LAW, SHALL THE COMPANY BE LIABLE FOR ANY
                  ECONOMIC CONSEQUENTIAL DAMAGES, INCLUDING (1) ANY SPECIAL,
                  INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES
                  (INCLUDING LOST PROFITS OR SAVINGS) TO PURCHASER AND/OR
                  RESELLERS AND/OR USERS, EVEN IF THE COMPANY SHALL HAVE
                  BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR
                  DAMAGE, OR (2) THIRD PARTY CLAIMS AGAINST PURCHASER AND/OR
                  USERS FOR LOSSES OR DAMAGES, OR FOR SPECIAL, INCIDENTAL,
                  OR INDIRECT CHARGES, OR FOR ANY ECONOMIC CONSEQUENTIAL
                  DAMAGES (INCLUDING LOST PROFITS OR SAVINGS) EVEN IF THE
                  COMPANY SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
                  POTENTIAL LOSS OR DAMAGE.

7.2      Sole Remedies. THE SOLE AND EXCLUSIVE REMEDIES FOR BREACH OF ANY
         -------------
         AND ALL WARRANTIES AND THE SOLE REMEDIES FOR THE COMPANY'S
         LIABILITY IF ANY KIND (INCLUDING LIABILITY FOR NEGLIGENCE) WITH
         RESPECT TO THE PRODUCTS AND SERVICES COVERED BY THIS AGREEMENT AND
         ALL OTHER PERFORMANCE BY THE COMPANY UNDER OR PURSUANT TO THIS
         AGREEMENT SHALL BE LIMITED TO THE REMEDIES PROVIDED IN SECTION 4
         HEREOF.

                         SECTION 8. CONFIDENTIALITY

8.1      Confidential Information. Purchaser agrees that the Company has a
         ------------------------
         proprietary interest in any and all Company Confidential
         Information provided to Purchaser by the Company in connection with
         this Agreement or otherwise, whether such information is in
         written, oral or visual form.

8.2      Protection Of Company Information. Purchaser acknowledges and
         ---------------------------------
         agrees that all Company Confidential Information is confidential
         and proprietary to the Company. In this regard,

         (a)      Purchaser agrees to use Company Confidential Information
                  solely in the discharging of its responsibilities
                  hereunder;

         (b)      Purchaser may disclose Company Confidential Information to
                  its employees who have the need to know such information;
                  provided, however, that prior to any such disclosure,
                  Purchaser must have an appropriate confidentiality
                  agreement with any such employee, binding such employee on
                  the terms of this Section 8. For a period of three (3)
                  years from the date of receipt of Company Confidential
                  Information, Purchaser may not disclose such Confidential
                  Information to others (including but not limited to any
                  affiliates of Purchaser) unless, prior to such disclosure,
                  Purchaser has an appropriate agreement with the other
                  party and such disclosure is approved by the

<PAGE>
<PAGE>

                                                                           8

                  Company in writing. All such appropriate agreements must
                  enable Purchaser to meet its obligations hereunder and to
                  enforce the terms and conditions of this Section;

         (c)      Purchaser shall not make any additional copies of any
                  writings, documents, programs or other media which contain
                  Company Confidential Information and are marked "do not
                  reproduce" or similar language, without the prior written
                  permission of the Company;

         (d)      Purchaser shall keep all writings, documents or other
                  media containing Company Confidential Information secure
                  in locked files at all times, when not in use, to prevent
                  their loss or unauthorized disclosure, take action to
                  prevent unauthorized access to any of its premises and
                  comply with all other reasonable security procedures and
                  measures which the Company may recommend from time to
                  time;

         (e)      Purchaser shall segregate Company Confidential Information
                  at all times from materials of third parties;

         (f)      Purchaser's obligations with respect to Company
                  Confidential Information will not apply to any information
                  that (i) is already in its possession without obligation
                  of confidence; (ii) is independently developed; (iii) is
                  or becomes publicly available without breach of this
                  Agreement; (iv) Purchaser rightfully receives from a third
                  party without obligation of confidence; or (v) is released
                  for disclosure with the Company's written consent;

         (g)      Purchaser shall, upon termination or expiration of this
                  Agreement, deliver to the Company all written or
                  descriptive materials which contain Company Confidential
                  Information;

         (h)      From time to time, the Company may provide Purchaser with
                  copies of documents labeled "For Internal Use Only".
                  Purchaser agrees to limit use of these documents to the
                  performance of its responsibilities hereunder and not to
                  make the documents available to any third party.

8.3      Protection Of Purchaser Information
         -----------------------------------

         (a)      Purchaser understands that the Company does not wish to
                  receive any information which Purchaser, or any third
                  party, considers confidential or proprietary. Information
                  that Purchaser supplies to the Company will not be treated
                  as confidential by the Company unless, before receipt, the
                  Company agrees in writing to do so.

         (b)      The Company may use any information which Purchaser makes
                  available to the Company, designated as confidential by
                  Purchaser, and the Company may authorize its affiliates to
                  use such information in their operations; provided,
                  however, that the Company shall instruct its personnel to
                  keep such information confidential by using the same care
                  and discretion that it uses with similar data which the
                  Company designates as confidential; further, the Company
                  shall not disclose any such confidential information by
                  publication or otherwise to any third party without the
                  prior written permission of Purchaser.

         (c)      Notwithstanding the foregoing, if the Company conducts an
                  inspection in accordance with its rights pursuant hereto,
                  any materials inspected will be treated as confidential
                  and the Company will not disclose any of them unless
                  required by law to do so.

                  SECTION 9. INTELLECTUAL PROPERTY MATTERS

9.1      Trademarks. Purchaser is hereby authorized to use the Trademarks
         ----------
         solely for the Term of this Agreement and solely for purposes of
         identifying the Products which Purchaser is authorized to market
         hereunder. In addition, Purchaser is hereby authorized to use,
         during the Term of this Agreement and within the United States, the
         designation "Distributor of VeriChip Products" or "VeriChip User"
         in its activities hereunder.

<PAGE>
<PAGE>

                                                                           9

         (a)      Purchaser is not granted any right or license to use the
                  Trademarks or any other trademark or tradename owned by
                  the Company in such a manner as to cause confusion
                  concerning the origin of any goods or services.
                  Promotional, advertising and other materials to be used by
                  Purchaser, which incorporate or display any Trademarks,
                  other than such material which has been supplied to
                  Purchaser by the Company, shall be subject to the
                  Company's guidelines or instructions. Purchaser agrees to
                  change or correct, at Purchaser's expense, any such
                  promotional advertising or other material, which in the
                  Company's reasonable judgment is inaccurate, objectionable
                  or misleading, or misuses a trademark or tradename owned
                  by the Company.

         (b)      Purchaser hereby acknowledges the Company's exclusive
                  right, title and interest in and to the Trademarks.
                  Purchaser acknowledges and agrees that, except for the
                  limited use of the Trademarks for purposes of using or
                  marketing and distributing the Products in conformity with
                  this Agreement, Purchaser will acquire no right, title or
                  interest of any kind or nature whatsoever in or to the
                  Trademarks or the goodwill associated therewith. Purchaser
                  recognizes that the Trademarks and any goodwill attached
                  thereto, belong to the Company, and Purchaser understands
                  and agrees that Purchaser's use of the Trademarks shall
                  inure to the benefit of the Company. Purchaser shall not
                  disparage, bring into disrepute or reduce the value of any
                  Trademarks. Purchaser shall not at any time do or permit
                  any act to be done which may in any way impair the rights
                  of the Company in the Trademarks.

         (c)      Purchaser shall not, without the Company's prior written
                  consent, remove or alter any Trademarks, trade names,
                  patent numbers, serial numbers, notices, labels, tags or
                  other identifying marks, symbols or legends affixed to any
                  Products, containers or packages.

         (d)      Purchaser undertakes fully and without any reservation
                  whatsoever to render to the Company all assistance as may
                  be necessary in connection with any matter pertaining to
                  the protection of the Trademarks, including, without
                  limitation, to assert no interest in or to, and to
                  withdraw or terminate any interest in or to, any
                  Trademarks which would limit the Company's ability to
                  protect those Trademarks.

         (e)      Purchaser will immediately notify the Company in writing
                  if any claim of infringement is brought against Purchaser
                  in respect to the use of the Trademarks, or if Purchaser
                  is aware of or suspects any infringement of the Trademarks
                  by another party. The Company reserves the right in its
                  sole discretion to institute any proceedings against any
                  such third party infringers and Purchaser shall refrain
                  from doing so. The Company shall control the defense or
                  prosecution of any actions concerning infringement of its
                  Trademarks. Purchaser shall cooperate fully with the
                  Company in any action taken by the Company against any
                  such third parties, provided that all expenses of such
                  action, including Purchaser's, shall be borne by the
                  Company and all damages which may be awarded therefrom
                  shall accrue to the Company.

         Any unauthorized use of the Trademarks by Purchaser shall be a
         material breach of this Agreement, entitling the Company to
         terminate this Agreement and to bring an action for infringement of
         the rights of the Company in and to the Trademarks.

9.2      Patents And Copyrights. No rights or licenses are granted to
         ----------------------
         Purchaser herein by the Company, expressly or by implication, under
         any patents or copyrights.

         (a)      The Company shall defend Purchaser against any claim that
                  any Product provided by the Company hereunder infringe any
                  patent, copyright or other analogous right enforceable in
                  the United States, and the Company shall pay any resulting
                  damages, costs and attorney's fees finally awarded by a
                  court or any resulting settlement agreed upon by the
                  Company, provided that

<PAGE>
<PAGE>

                                                                          10

                  Purchaser promptly notifies the Company in writing of the
                  claim and, further provided, that the Company has sole
                  control of the defense and of all related settlement
                  negotiations.

         (b)      The Company's obligation under this Section is subject to
                  the condition that if any Product becomes, or in the
                  Company's opinion is likely to become, the subject of such
                  a claim, Purchaser shall permit the Company, at its option
                  and expense, either to procure the right of Purchaser to
                  continue marketing or using the item involved or to
                  replace or modify it so that it becomes non-infringing. If
                  neither of the foregoing alternatives is available in
                  terms which are reasonable in the Company's sole judgment,
                  Purchaser hereby agrees that, upon written request by the
                  Company, Purchaser shall return the item involved to the
                  Company. In such a case, the Company agrees to grant a
                  credit or refund to Purchaser for the amount of charges of
                  the returned Product, as well as any costs of return and
                  applicable taxes thereon.

         (c)      The Company shall have no obligation to Purchaser for any
                  liability to third parties for any claim based upon any
                  alteration or modification of any Product or based upon
                  the combination, operation or use of any Product with
                  equipment, data or programming not supplied by the
                  Company.

     The foregoing states the entire obligation of the Company in regard of
     all intellectual property matters and Purchaser shall have no right to
     act in the Company's name or on the Company's behalf, with respect to
     infringement of patents, copyrights or analogous rights relating to the
     Products.

                         SECTION 10. INDEMNIFICATION

10.1     Purchaser Indemnification. In addition to damages for which
         -------------------------
         Purchaser may be liable under law or equity or under the terms of
         this Agreement or any other applicable agreements, and subject to
         the provisions of Section 10.4 - "Indemnification Procedure",
         below, Purchaser shall indemnify, defend and hold the Company, its
         affiliates and all officers, directors, employees and agents
         thereof, harmless from and against any and all claims, liabilities,
         losses, damages, costs and expenses (including without limitation
         reasonable attorney's fees, expenses and settlement costs,
         including appeal proceedings) (collectively, "Damages"), which the
         Company or any of its Affiliates and all officers, directors,
         employees and agents thereof may at any time sustain or incur by
         reason of or in connection with any claim, demand or other action
         initiated by any person or entity, arising from, related to or in
         any way connected with (i) Purchaser's conduct under this Agreement
         and any other applicable agreements; (ii) Purchaser's breach of
         this Agreement; (iii) Purchaser's failure to comply with applicable
         laws and regulations; or (iv) Purchaser's relations with anyone
         else, particularly regarding statements, representations or
         warranties made by Purchaser not expressly authorized in writing by
         the Company hereunder. Furthermore, Purchaser shall indemnify and
         hold the Company harmless from and against any and all claims,
         costs, damages and liabilities whatsoever asserted by any employee,
         agent, or representative of Purchaser under any applicable
         termination, labor, social security or other similar laws and
         regulations.

         Purchaser shall not be obliged to indemnify the Company from any
         such liability, loss, damage, cost or expense, to the extent that
         such liability, loss, damage, cost or expense was caused by any
         intentional or grossly negligent act or omission or
         misrepresentation, or by breach of obligations specified in this
         Agreement by the Company.

10.2     Company Indemnification. The Company hereby agrees to indemnify,
         -----------------------
         defend and hold harmless Purchaser, its affiliates and all
         officers, directors, employees and agents thereof from all Damages
         arising

<PAGE>
<PAGE>

                                                                          11

                  out of: (i) the Company's material breach of this
                  Agreement, or (ii) the Company's failure to comply with
                  applicable laws and regulations in the U.S.

         The Company's liability hereunder will be limited as follows:

         (a)      Claims, Demands and Other Actions:
                  ---------------------------------

                  With respect to the claims, demands and other actions
                  referred to in Paragraph 10.1, above, to the extent that
                  any such claim, demand or other action relates to:

                  (1)      any Product sold by Purchaser pursuant to any
                           agreement containing warranties or other
                           commitments which exceed those warranties or
                           commitments which the Company extends hereunder,
                           the Company's obligation to indemnify Purchaser
                           shall be equal to the liabilities, losses,
                           damages, costs and expenses for which Purchaser
                           would have been liable if the agreement pursuant
                           to which Purchaser sold the Product involved had
                           not contained such additional warranties or other
                           commitments;

                  (2)      the failure by Purchaser to deliver a Product by
                           a delivery date committed by the Company, the
                           Company's obligation to indemnify Purchaser, if
                           any, shall not exceed the liabilities, losses,
                           damages, costs and expenses for which Purchaser
                           would have been liable if the agreement pursuant
                           to which Purchaser sold the Product involved had
                           contained provisions substantially identical to
                           those of Section 11.12 "Force Majeure", hereof.

         (b)      Certain Purchaser Actions:
                  -------------------------

                  In any event, the Company shall not be obliged to
                  indemnify Purchaser from any such liability, loss, damage,
                  cost or expense to the extent that such liability, loss,
                  damage, cost or expense was caused by any intentional or
                  grossly negligent act or omission or misrepresentation, or
                  by any breach of obligations specified in this Agreement
                  by Purchaser.

10.3     Allocation of Expenses
         ----------------------

         In the event a claim is based partially on an indemnified claim
         described in Section 10.1 and/or Section 10.2, above, and partially
         on a non-indemnified claim, or is based partially on a claim
         described in Section 10.1, above, and partially on a claim
         described in Section 10.2, above, any payments and reasonable
         attorney fees incurred in connection with such claims are to be
         apportioned between the Parties in accordance with the degree of
         cause attributable to each Party.

10.4     Indemnification Procedure
         -------------------------

         The liability of Purchaser and of the Company under Section 10.1
         and Section 10.2, is subject to Purchaser or the Company (as the
         case may be): (a) having promptly notified the other of any claim,
         demand or other action likely to give rise to a claim against the
         other; and (b) giving the other all freedom either to join the
         defense, or to direct such defense, with a right to come to a
         settlement if the other so wishes.

                    SECTION 11. MISCELLANEOUS PROVISIONS

11.1     Prior Agreements. This Agreement contains the entire agreement of
         ----------------
         the Parties with respect to the subject matter hereof and shall
         cancel and supersede, as of the date this Agreement is signed by
         both Parties, any prior agreements written or oral between the
         Parties or their respective legal predecessors with respect to the
         subject matter covered by this Agreement.

11.2     Governing Law. This Agreement shall be governed by and construed in
         -------------
         accordance with the internal laws of the State of Florida, United
         States of America, applicable to agreements made and to be
         performed

<PAGE>
<PAGE>

                                                                          12

         entirely within Florida, without regard to the conflicts of law
         principles of such State. Purchaser acknowledges, represents and
         warrants that it is aware of the laws of the State of Florida, and
         has been duly advised and willfully chooses the laws of the State
         of Florida as the governing law for this Agreement.

         The Parties hereby agree that neither the "United Nations
         Convention on Contracts for the International Sale of Goods", nor
         the Convention on the Limitation Period in the International Sale
         of Goods and the Protocol amending such Convention, done at Vienna
         April 11, 1980, shall govern the rights, duties and obligations of
         the Parties under this Agreement.

11.3     Jurisdiction; Consent to Service of Process
         -------------------------------------------

         (a)      Both of the Parties hereby irrevocably and unconditionally
                  submit, for themselves and their property, to the
                  jurisdiction of any court of the State of Florida sitting
                  in Palm Beach County, Florida, or any Federal court of the
                  United States of America sitting in the Southern District
                  of the State of Florida, and any appellate court from any
                  such court, in any suit, action or proceeding arising out
                  of or relating to this Agreement, or for recognition or
                  enforcement of any judgment, and each of the Parties
                  hereto hereby irrevocably and unconditionally agrees that
                  all claims in respect of any such suit, action or
                  proceeding may be heard and determined in such State of
                  Florida court or Federal court. It shall be a condition
                  precedent to each Party's right to bring any such suit,
                  action or proceeding that such suit, action or proceeding,
                  in the first instance, be brought in such State of Florida
                  court or, to the extent permitted by law, in such Federal
                  court (unless such suit, action or proceeding is brought
                  solely to obtain discovery or to enforce a judgment), and
                  if each of such State of Florida court and such Federal
                  court refuses to accept jurisdiction with respect thereto,
                  such suit, action or proceeding may be brought in any
                  other court of competent jurisdiction. No Party to this
                  Agreement may move to (1) transfer any such suit, action
                  or proceeding from such State of Florida court or any
                  Federal court of the United States of America sitting in
                  the State of Florida, to another jurisdiction, (2)
                  consolidate any such suit, action or proceeding brought in
                  such State of Florida court or Federal court with a suit,
                  action or proceeding in another jurisdiction, or (3)
                  dismiss any such suit or proceeding brought in such State
                  of Florida court or any Federal court of the United States
                  of America sitting in the State of Florida, for the
                  purpose of bringing the same in another jurisdiction. Each
                  Party agrees that a final judgment in any such suit,
                  action or proceeding shall be conclusive and may be
                  enforced in any other jurisdiction by suit on the judgment
                  or in any other manner provided by law.

         (b)      Each of the Parties hereby irrevocably and unconditionally
                  waives, to the fullest extent it may legally and
                  effectively do so, any objection which it may now or
                  hereafter have to the laying of venue of any suit, action
                  or proceeding arising out of or relating to this Agreement
                  in any State of Florida court sitting in Palm Beach
                  County, Florida, or any Federal court sitting in the
                  Southern District of the State of Florida. Each of the
                  Parties hereby irrevocably waives, to the fullest extent
                  permitted by law, the defense of an inconvenient forum to
                  the maintenance of such suit, action or proceeding in such
                  court and further waives the right to object, with respect
                  to such suit, action or proceeding, that such court does
                  not have jurisdiction over such Party.

         (c)      Each of the Parties, hereby irrevocably consents to
                  service of process in the manner provided for notices in
                  Section 11.5 hereof. Nothing in this Agreement will affect
                  the right of either Party to this MEAgreement to serve
                  process in any other manner permitted by law.

11.4     Assignment. This Agreement and the rights and obligations hereunder
         ----------
         may not be assigned, delegated or transferred by either Party
         without the prior written consent of the other Party; provided,
         however, that

<PAGE>
<PAGE>

                                                                          13

         Purchaser's consent shall not be required with respect to any
         assignment, delegation or transfer by the Company to any entity
         providing financing to the Company, to another division of the
         Company or to any affiliate of the Company or division of such
         affiliate. This Agreement shall inure to the benefit of the
         permitted successors and assigns of the Company. For the purposes
         of this Agreement, "affiliate" shall mean any company, natural
         person, partnership or other business entity controlled by, under
         common control with or controlling either Party to this Agreement.

11.5     Notices. Notices and other communications provided for herein shall
         -------
         be in writing and shall be delivered by hand or overnight
         international courier service, sent by graphic scanning or other
         telegraphic communication equipment available to both, the sending
         Party and the receiving Party, as follows:

         If to Purchaser:

                  -------------------------------------------
                  -------------------------------------------
                  Facsimile No.:  ___________________________
                  Attention:   ______________________________

         If to the Company:

                  VeriChip Corporation
                  400 Royal Palm Way, Ste. 410
                  Palm Beach, FL  33480
                  United States of America
                  Facsimile No.:  (561) 805-8001
                  Attention:  President

         All notices and other communications given to either Party hereto
         in accordance with the provisions of this Agreement shall be deemed
         to have been given on the date of delivery if delivered by hand or
         overnight courier service or on the first business day if sent by
         graphic scanning or other telegraphic communications equipment
         available to both the sender and the receiver, in each case
         delivered, sent or mailed (properly addressed) to such Party as
         provided in this Section 11.5, or in accordance with the latest
         unrevised direction from such Party given in accordance with this
         Section.

11.6     Amendments. Except as provided elsewhere herein, this Agreement can
         ----------
         be modified only by a specific written agreement duly signed by
         persons authorized to sign agreements on behalf of Purchaser and
         the Company.

11.7     Publicity. Purchaser agrees that any publicity or advertising which
         ---------
         shall be released by Purchaser in which the Company is identified
         in connection with the Products shall be in accordance with the
         terms of this Agreement and with such information or data as the
         Company may, from time to time, furnish to Purchaser for such
         purposes. Copies of all such publicity and advertising shall be
         forwarded to the Company for its prior written approval.

<PAGE>
<PAGE>

                                                                          14

11.8     Severability. If any provision of this Agreement shall be held by a
         ------------
         court or other tribunal of competent jurisdiction to be invalid,
         illegal or unenforceable, or shall be required to be modified, the
         validity, legality and enforceability of the remaining provisions
         shall not be affected or impaired thereby.

11.9     Counterparts. This Agreement may be executed in any number of
         ------------
         counterparts, each of which will be deemed an original but all of
         which when taken together will constitute one and the same
         contract, and shall become effective when one or more such
         counterparts have been signed by each of the Parties and delivered
         to the other Party.

11.10    Waiver. The waiver by either Party of any instance of the other
         ------
         Party's non-compliance with any obligation or responsibility herein
         shall not be deemed a waiver of the waiving Party's remedies for
         such non-compliance in the future.

11.11    Time Limit On Actions. No action, regardless of form, arising out
         ---------------------
         of this Agreement may be brought by either Party more than two (2)
         years after the cause of action has occurred; provided, however,
         that this paragraph shall not apply to actions involving patents,
         copyrights, Trademarks or tradenames, Company Confidential
         Information.

11.12    Force Majeure. Neither Party shall be liable for failure to perform
         -------------
         or delay in performing any obligation under this Agreement, except
         the obligation to make payments when due, if such failure or delay
         is due to force majeure, including, but not limited to, war,
         embargo, riot, insurrection, sabotage or other civil unrest; fire,
         explosion, flood or other natural disaster; accident or breakdown
         of machinery; unavailability of fuel, labor, containers, or
         transportation facilities; accidents of navigation, breakdown or
         damage of vessels or other conveyances for air, land or sea; other
         impediments or hindrances to transportation; strike or other labor
         disturbances; government restraints or any other cause beyond the
         control of the affected party; provided, however, that the Party so
         failing to perform shall (i) as soon as possible, inform the other
         Party of the occurrence of the circumstances preventing or delaying
         the performance of its obligations, and describe at a reasonable
         level of detail the circumstances causing such delay, and (ii)
         exert reasonable efforts to eliminate, cure or overcome any of such
         cases and to resume performance of its covenants with all possible
         speed. In such event, the non-performing Party will be excused from
         any further performance or observance of the obligation(s) so
         affected for as long as such circumstances prevail and such Party
         continues to use its best efforts to recommence performance or
         observance whenever and to whatever extent possible without delay.
         In the event that, by operation of law or governmental decree, it
         becomes illegal to market and sell a Product, Purchaser shall be
         relieved of its obligations under this Agreement (other than the
         obligation to make any payment due hereunder) only to the extent
         that they relate to such Product. Any Party so delayed in its
         performance will be under no liability for loss or damages suffered
         by the other Party thereby.

         Either Party may convene a meeting between the Parties to discuss
         the force majeure and its effect on any obligation under this
         Agreement. The Parties shall seek to modify the relevant provisions
         in order to accommodate the circumstances caused by the force
         majeure. If the Parties fail to agree on such modifications within
         thirty (30) calendar days after notice of the force majeure is
         delivered, either Party may terminate this Agreement by written
         notice to the other Party. Such termination shall be effective
         thirty (30) calendar days after the date of the written notice.

<PAGE>
<PAGE>

                                                                          15

11.13    WAIVER OF JURY TRIAL
         --------------------

         EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
         WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
         RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
         DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
         THIS AGREEMENT, OR ANY DOCUMENT CONTEMPLATED TO BE EXECUTED OR
         DELIVERED IN CONJUNCTION HEREWITH. EACH PARTY HERETO (1), CERTIFIES
         THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS
         REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD
         NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
         WAIVER AND (2), ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO
         HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
         THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

11.14    Termination. This Agreement may be terminated by either party upon
         -----------
         30 days' written notice to the other. Notwithstanding the
         foregoing, termination shall not affect the rights or obligations
         of either party (i) in respect of Products previously purchased,
         (ii) in respect of purchase orders placed by Distributor and
         accepted by the Company (whether or not previously delivered), or
         (iii) as set forth in Sections 8, 9, 10 and this Section 11.

11.15    Section Headings. The section headings contained herein are for
         ----------------
         convenience of reference only and shall not be used in construing
         this Agreement.

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement
to be signed by their duly authorized representatives on the date written
below.

                                            PURCHASER:

                                            By:      /s/ Rick Blackburn
                                                -------------------------------
                                            Name:    Rick Blackburn
                                                  -----------------------------
                                            Title:   Secretary
                                                   ----------------------------
                                            Date:    3/5/04
                                                  -----------------------------

                                            ACCEPTED BY THE COMPANY:
                                            VERICHIP CORPORATION

                                            By:      /s/ Keith Bolton
                                                -------------------------------
                                            Name:    Keith Bolton
                                                  -----------------------------
                                            Title:   President
                                                   ----------------------------
                                            Date:    3/5/04
                                                  -----------------------------

<PAGE>
<PAGE>

                                  Addendum

         Addendum, dated March 9, 2004, to the Master Product Purchasing
Agreement (the "Master Agreement"), dated as of March 5, 2004, by and
between VeriChip Corporation ("VeriChip" or the "Company") and Digital
                                                               -------
Applied Technologies (the "Purchaser").
--------------------

                                 WITNESSETH:

         WHEREAS, Purchaser desires to distribute Products (as such term is
defined in the Master Agreement) in the state of Florida (the "Territory").
                                                 -------

         WHEREAS, the Company desires to facilitate the Purchaser's ability
to resell the Products to resellers.

         NOW, THEREFORE, in consideration of the mutual covenants and
conditions hereinafter contained, the Parties hereby agree as follows:

1.       All capitalized terms used but not defined herein shall have the
         meanings ascribed to them in the Master Agreement.

2.       Purchaser shall pay a non-refundable distribution fee of $10 (the
         "Distribution Fee"). If the Master Agreement is terminated within
         one year of the date hereof for any reason other than Purchaser's
         breach thereof, the Distribution Fee shall be returned to
         Purchaser.

3.       Notwithstanding Section 2.4 of the Master Agreement, the Purchaser
         shall have the exclusive distribution rights in the territory
         subject to the following provisions: (i) The Company agrees not to
         ship Products to any other distributor in the Territory. (ii) The
         Company may ship Products outside of the Territory, even if the
         buyer thereof moves such products into the Territory, provided,
         however, that the Company shall not knowingly sell to a buyer whose
         sole purpose in buying Products outside the Territory is to move
         such products for resale in the Territory. (iii) Notwithstanding
         anything else herein to the contrary, the Company may sell to a
         distributor, User or Reseller that has a multi-state presence (i.e.
         a distributor, User or Reseller that does substantial business
         (determined in a commercially reasonable manner) outside of the
         Territory. By way of example only, the Company may sell Products to
         a retail chain of office supply stores even though the headquarters
         or some of such stores are located in the Territory. Nothing herein
         shall prohibit the Company from shipping Products to its own
         offices, even if such offices are in the Territory. In respect of
         the foregoing, the Company represents that it is not currently
         aware of any other buyer that would satisfy clauses (i), (ii) or
         (iii) of this Paragraph 3 and will notify Distributor if in the
         future such a buyer exists, and will consider in good faith
         Distributor's interests in any such potential situation.

<PAGE>
<PAGE>

4.       Section 11.14 of the Master Agreement is amended to read in its
         entirety as follows:

         "Termination. This Agreement shall terminate 60 months from the
         ------------
         date hereof. This Agreement may be terminated early in accordance
         with the following: If one party is in breach hereof (whether by
         nonperformance or otherwise), then the other party may give written
         notice of its intent to terminate. The termination shall become
         effective 15 days following such notice, unless the breaching party
         cures such breach within such 15 day period. If Purchaser fails to
         make payments as provided herein, then Purchaser is deemed to be in
         default (without notice) on the date such payment was due, and
         shall have 15 days to cure such non-payment. In addition to the
         foregoing, if the Purchaser has not satisfied its quota
         requirements set forth in Exhibit C hereto, the Company may
         terminate this Agreement by giving written notice to Purchaser.
         Notwithstanding anything in this section to the contrary, the
         Company shall be under no obligation to ship additional Products
         during the cure-period. Termination shall not affect the rights or
         obligations of either party (i) in respect of Products previously
         purchased, (ii) in respect of purchase orders placed by Distributor
         and accepted by the Company (whether or not previously delivered),
         or (iii) as set forth in Sections 8, 9, 10 and this Section 11."

5.       The parties acknowledge that, at the present time, the Products are
         not regulated by the Food and Drug Administration ("FDA") when
         marketed and used for financial, security and identification
         applications. The parties further acknowledge that the Products are
         regulated by the FDA when marketed or used for healthcare
         applications and at present have not been approved for such
         marketing or uses, it being understood that the Company has caused
         an application to be filed with the FDA to allow such marketing and
         use. Distributor agrees not to market, sell or use the Products in
         the Territory or elsewhere in the United States in violation of FDA
         regulations. Without limiting the generality of the foregoing,
         Distributor shall not market, use or sell the Products for
         healthcare applications until the FDA rules that such use is
         permitted, and then only in conformance with any such ruling). The
         Company shall promptly inform Distributor of any material
         developments regarding the application filed with the FDA and with
         any other material developments in the regulation or non-regulation
         of the Products.

6.       Company acknowledges and agrees that all customer lists of
         Purchaser and sales prices and techniques of Purchaser ("Purchaser
         Confidential Information") are confidential and proprietary to the
         Purchaser. In this regard,

         (a)      Company agrees to use Purchaser Confidential Information
                  solely in the discharging of its responsibilities
                  hereunder;

         (b)      Company may disclose Purchaser Confidential Information to
                  its employees who have the need to know such information.
                  For a period of three (3) years from the date of receipt
                  of Purchaser Confidential Information, Company may not
                  disclose such Confidential Information to others
                  (including but not limited to any affiliates of Company)
                  unless, prior to such disclosure, Company has an
                  appropriate agreement with the other party and such
                  disclosure is approved by the Purchaser

<PAGE>
<PAGE>

                  in writing. All such appropriate agreements must enable
                  Company to meet its obligations hereunder and to enforce
                  the terms and conditions of this Section.

         (c)      Company shall not make any additional copies of any
                  writings, documents, programs or other media which contain
                  Purchaser Confidential Information and are marked "do not
                  reproduce" or similar language, without the prior written
                  permission of the Purchaser.

         (d)      Company shall keep all writings, documents or other media
                  containing Purchaser Confidential Information secure in
                  locked files at all times, when not in use, to prevent
                  their loss or unauthorized disclosure, take action to
                  prevent unauthorized access to any of its premises.

         (e)      Company shall segregate Purchaser Confidential Information
                  at all times from materials of third parties.

         (f)      Company's obligations with respect to Purchaser
                  Confidential Information will not apply to any information
                  that (i) is already in its possession without obligation
                  of confidence; (ii) is independently developed; (iii) is
                  or becomes publicly available without breach of this
                  Agreement; (iv) Company rightfully receives from a third
                  party without obligation of confidence; or (v) is released
                  for disclosure with the Purchaser's written consent.

         (g)      Section 8.3 of the Master Agreement shall not apply.

7.       The following definitions shall be added to Section 1 of the Master
         Agreement:

         "(i)     "Reseller" shall mean a retail outlet that sells the
                  Products to Users.

         (j)      "Sub-Distributor" shall mean a distributor in the
                  Territory that has purchased Products from Distributor and
                  endeavors to resell such Products to Resellers or End
                  Users. Distributor shall be responsible for any breach
                  hereof or of this Agreement by Sub-Distributors."

8.       Section 5.6 of the Master Agreement is amended to read, in its
         entirety, as follows: "5.6 Purchaser hereby agrees, to
         non-monetarily aid the Company with its marketing, to provide the
         Company with sales information, as reasonably requested from time
         to time."
         All sales information shall be subject to the provisions of
         Paragraph 6 of this Addendum.

9.       Upon written request from Distributor, which must be delivered to
         the Company at least thirty (30) days prior to the expiration of
         the Term, the Company, in its own discretion, may (but is not
         obligated to) negotiate good faith with Distributor for a renewal
         of the Agreement on such terms as the Parties may mutually agree,
         provided that, on the date of request, Distributor (I) is not in
         default of any material term or condition of this Agreement or any
         other agreements between the Company and Distributor, (ii) has met
         the Quota requirements set forth herein; and (iii) has satisfied
         all monetary obligations owed by Distributor to the Company.

10.      In the first sentence of Section 9.1 of the Master Agreement, after
         the words "Term of this Agreement," the following words shall be
         added: "and any extensions thereof"

<PAGE>
<PAGE>

11.      A new Exhibit C shall be added to the Master Agreement in the form
         of Exhibit C attached hereto.

12.      Except as explicitly modified hereby, all other terms of the Master
         Agreement remain in effect and, wherever possible, apply to this
         Addendum. This Addendum, and the Master Agreement, and the
         International Distributor Agreement dated September 25, 2003, shall
         form the entire basis of the understanding between the parties
         hereto. No other letter, writing, oral discussion, agreement,
         document, representation or understanding shall apply as this
         Addendum (with the Master Agreement) supercedes any of them to the
         date hereof. Without limiting the generality of the foregoing,
         Purchaser acknowledges that no Digital Angel products are available
         to or appropriate for it at this time and no agreement exists
         between Purchaser (or an affiliate) and Digital Angel Corporation
         for the Digital Angel products.

13.      If the Company begins selling a GPS product internationally, and
         proposes to enter into an exclusive distributorship agreement in
         all Caribbean countries (other than Cuba and Puerto Rico) then it
         shall not enter any such agreement without first offering such
         agreement (on the same substantive terms) to Purchaser first. If
         Purchaser does not accept such terms within 5 business days of
         being notified (in writing) of such terms, then the Company may
         enter such distributorship with a third party.

         IN WITNESS WHEREOF, the Parties hereto have caused this Addendum to
be signed by their duly authorized representatives on the date written
below.

                                            PURCHASER:
                                            Digital Applied Technologies
                                            ----------------------------

                                            By:      /s/ Rick Blackburn
                                                -------------------------------
                                            Name:    Rick Blackburn
                                                  -----------------------------
                                            Title:   Secretary
                                                   ----------------------------
                                            Date:    3/11/04
                                                  -----------------------------

                                            ACCEPTED BY The Company:
                                            VERICHIP CORPORATION

                                            By:      /s Keith Bolton
                                                -------------------------------
                                            Name:    Keith Bolton
                                                  -----------------------------
                                            Title:   President
                                                   ----------------------------
                                            Date:    3/11/04
                                                  -----------------------------

<PAGE>
<PAGE>

                                 EXHIBIT "C"

                             QUOTA REQUIREMENTS

During the Term of this Agreement, Distributor shall make the following
minimum purchases of Products:

IMMEDIATE PURCHASE
         The $15,000 already paid by Purchaser shall be applied to an
immediate purchase of microchips and scanners. Purchaser may allocate the
funds as it chooses to buy such combination of Microchips and readers that,
in the aggregate, cost $15,000. Such $15,000 purchase shall not be counted
toward the 2004 quota.

PURCHASE ORDER YEAR 2004:
         Microchips: 400 units @ $70 each
         Scanners: 40 units @ $625 each

PURCHASE ORDER YEAR 2005:
         Microchips: 800 units @ $70 each
         Scanners: 80 units @ $625 each

PURCHASE ORDER YEAR 2006:
         Microchips: 1600 units  @ $70 each
         Scanners: 160 units @ $625 each

PURCHASE ORDER YEAR 2007:
         Microchips: 3200 units @ $70 each
         Scanners: 370 units @ $625 each

PURCHASE ORDER YEAR 2008:
         Microchips: 6400 units @ $70 each
         Scanners: 740 units @ $625 each<PAGE>

                                                               Exhibit 10.68

                       APPLIED DIGITAL SOLUTIONS, INC.
                    EMPLOYMENT AND NON-COMPETE AGREEMENT

         AGREEMENT made this 8 day of April, 2004 and effective as of the
1st day of January, 2004 (the "Effective Date"), by and between the parties
to this Agreement (hereinafter individually referred to as "Party" and
collectively referred to as "Parties"), APPLIED DIGITAL SOLUTIONS, INC., a
Missouri Business Corporation (hereinafter referred to as "ADS"), and SCOTT
R. SILVERMAN (hereinafter referred to as "Executive").

         WHEREAS, ADS is an advanced digital technology development company
(the "Business"); and

         WHEREAS, ADS finds it is in its best interest and to protect its
technologies and business relationships to continue to engage Executive's
services as Chief Executive Officer of ADS; and

         WHEREAS, Executive desires to continue to serve as ADS' Chief
Executive Officer;

         NOW THEREFORE, in consideration of the promises and the mutual
obligations set forth in this Agreement, the Parties agree as follows:

         1. EMPLOYMENT. ADS agrees to continue to employ Executive, and
            ----------
Executive agrees to such continued employment by ADS, pursuant to the terms
and conditions set forth in this Agreement.

         2. POSITION AND RESPONSIBILITIES. During the term of this
            -----------------------------
Agreement, as defined below, Executive shall serve as Chief Executive
Officer of ADS and will perform such duties and exercise such supervision
with regard to the business of ADS as are associated with such position, as
well as such additional duties as may be prescribed from time to time by
ADS'

<PAGE>
<PAGE>

Board of Directors. Executive agrees to render services to the best of
Executive's ability for and on behalf of ADS. Executive agrees to devote his
full business time to rendering such services on behalf of ADS.

         3. TERM. Except as otherwise provided in this Section 3 or Section
            ----
8(c) of this Agreement, the term of this Agreement (the "Term") shall
commence on the Effective Date and shall continue in force thereafter for a
period of five (5) years from the Effective Date. Notwithstanding the
foregoing, upon the happening of any of the following events, this Agreement
shall terminate (unless otherwise provided herein for a termination after a
period of time) and Executive shall cease to be an employee of ADS:

                  (a)      Executive's resignation upon sixty (60) days
                           advance written notice;

                  (b)      Executive's Total Disability upon ADS' election.
                           For purposes of this Agreement, "Total
                           Disability" shall be defined as Executive's
                           inability, due to illness, accident or any other
                           physical or mental incapacity, to perform
                           Executive's usual responsibilities performed by
                           Executive for ADS prior to the onset of such
                           disability, for one hundred eighty (180)
                           consecutive days during the Term. ADS may elect,
                           by written notice to Executive, within thirty
                           (30) days of the end of such period of Total
                           Disability defined above, to terminate
                           Executive's employment herein;

                  (c)      the death of Executive;

                  (d)      Executive's Constructive Termination. For
                           purposes of this Agreement, "Constructive
                           Termination" shall be defined as a material
                           breach by ADS of its obligations under this
                           Agreement (including but not limited to any
                           reduction of Executive's Base Salary or incentive
                           compensation as

                                    -2-

<PAGE>
<PAGE>

                           provided herein). If Executive chooses to treat
                           such material breach as a Constructive
                           Termination, Executive shall provide ADS with
                           written notice describing the circumstances being
                           relied upon by Executive for such termination
                           with respect to this Agreement within thirty (30)
                           days after the event giving rise to the
                           Constructive Termination. ADS shall have thirty
                           (30) days after receipt of such notice to remedy
                           the situation prior to the Constructive
                           Termination being deemed final; or (e) ADS
                           terminates this Agreement for cause, with said
                           cause being defined as a conviction of a felony
                           or Executive's being prevented from providing
                           services hereunder as a result of Executive's
                           violation of any law, regulation and/or rule.

         4. ANNUAL COMPENSATION. (a) During the Term, Executive shall be
            -------------------
entitled to compensation for all services performed by Executive pursuant to
this Agreement ("Compensation") as follows:

                  (1)      Executive shall be entitled to a base salary (the
                           "Base Salary") of $330,000.00 for the 2004
                           calendar year, payable according to the customary
                           payroll practices of ADS for the then current
                           period. The Base Salary shall increase a minimum
                           of ten percent (10%) per annum during the Term.
                           The "Base Salary" shall, for all purposes of this
                           Agreement, mean the Base Salary then being paid
                           by ADS to Executive.

                  (2)      During the Term, Executive shall be eligible for
                           incentive bonus compensation for each calendar
                           year, to be reasonably determined by the Board of
                           Directors of ADS.

                                    -3-

<PAGE>
<PAGE>

          (b) ADS shall deduct from the Compensation all taxes and other
deductions which are required to be deducted or withheld under any provision
of any federal, state, or local law now in effect or which may become
effective at any time during the term of this Agreement.

         5. FRINGE BENEFITS. During the Term, Executive shall be entitled to
            ---------------
all fringe benefits (the "Fringe Benefits") provided to senior executive
employees of ADS, as reasonably determined by the Board of Directors of ADS.

         6. BUSINESS EXPENSES. ADS will reimburse Executive for all
            -----------------
reasonable travel, entertainment and other expenses incurred by Executive in
connection with the performance of his duties and obligations under this
Agreement. Executive will comply with all reasonable reporting requirements
with respect to business expenses as may be established by ADS from time to
time.

         7. ADDITIONAL BENEFITS. (a) Executive will be entitled to
            -------------------
participate in all other compensation or employee benefit plans or programs
and receive all benefits for which salaried employees of ADS generally are
eligible under any plan or program now or later established by ADS on the
same basis as similarly situated senior executives of ADS. Executive will
participate to the extent permissible under the terms and provisions of such
plans or programs, in accordance with program provisions.

                  (b) (i) Subject to the terms of Section 7(b)(ii) below, on
April 5, 2004, ADS will, subsequent to the one (1) for ten (10) reverse
stock split of ADS, grant to Executive options to acquire eight hundred
fifty-seven thousand and five hundred (857,500) shares of common stock of
ADS (the "New Options") at the closing price of ADS on April 5, 2004.
Thirty-three and one-third (33 1/3%) percent of the New Options shall vest
on April 5, 2005, thirty-three and one-third (33 1/3%) percent of the New
Options shall vest on April 5, 2006, and

                                    -4-

<PAGE>
<PAGE>

the remaining thirty-three and one-third (33 1/3%) percent of the New
Options shall vest on April 5, 2007.

                  (b) (ii) To the extent that as of April 5, 2004, there are
insufficient options under all applicable ADS option plans to issue all of
the New Options, then and in that event, all options that are available
under all applicable ADS option plans shall be issued to Executive on April
5, 2004. ADS will issue to Executive the balance of the New Options upon the
availability of the balance of the New Options, which balance of the New
Options shall be issued at the closing price of ADS on the date or dates, as
the case may be, in which the balance of the New Options are issued. The
vesting schedule for the New Options as provided for in Section 7(b)(i)
shall, in all events, remain applicable.

         8. PAYMENT UPON TERMINATION OF AGREEMENT. (a) In the event this
            -------------------------------------
Agreement is terminated by Executive's resignation pursuant to subparagraph
(a) or (e) of Section 3 of this Agreement, ADS will pay to Executive any and
all earned but unpaid Base Salary and earned but unpaid incentive bonus
compensation as of the date of termination. ADS shall pay such amounts due
Executive within thirty (30) days of Executive's last day of service. In
addition, ADS shall pay to Executive fifty (50%) percent of the Base Salary
for a period of two (2) years commencing from the date of Termination. In
addition, any outstanding stock options held by Executive on Executive's
last day of service shall remain exercisable for the life of the option.
Further, Executive may, at his sole option, assume all obligations for the
leased vehicle then used by Executive, which vehicle is being leased by ADS
for use by Executive.

                  (b) In the event this Agreement is terminated pursuant to
any of subparagraphs (b) through (d) of Section 3 of this Agreement, ADS
will, in addition to maintaining the Fringe Benefits through December 31,
2008, pay to Executive the sum of (i) any

                                    -5-

<PAGE>
<PAGE>

and all earned but unpaid Base Salary and earned but unpaid incentive bonus
compensation as of the date of termination; (ii) the greater of (A) the Base
Salary from the date of termination through December 31, 2008, or (B) two
(2) times the Base Salary; and (iii) the average bonus paid by ADS to
Executive for the three (3) full calendar years immediately prior to the
date of termination, or fifty (50%) percent of the bonus paid by ADS to
Executive in 2003 if the termination occurs in 2004, or seventy-five (75%)
percent of the average bonuses paid by ADS to Executive in 2003 and 2004 if
the termination occurs in 2005, which amount shall be interpolated from the
date of termination through December 31, 2008. All amounts set forth in this
subparagraph (b) may be paid in either cash or in stock of ADS within sixty
(60) days of Executive's last day of service; provided, however, to the
extent that Executive, in his sole option, does not desire to receive stock
of ADS, then and in that event, he shall so notify ADS in which event ADS
shall pay fifty (50%) percent of the amounts set forth in this subparagraph
(b) in cash within sixty (60) days of Executive's last day of service, with
the remaining amounts to be paid within one hundred eighty (180) days of
Executive's last day of service; provided, further, that ADS shall continue
to pay to Executive the Base Salary for one hundred eighty (180) days from
Executive's last day of service, which payments shall be credited to ADS
against the amount due from ADS to Executive as set forth in this
subparagraph (b). In addition, any outstanding stock options held by
Executive on Executive's last day of service pursuant to such termination
shall become vested and exercisable as of such date of termination, and will
remain exercisable for the life of the option. Further, ADS shall continue
to pay all lease payments on the vehicle then used by Executive, which
vehicle is being leased by ADS for use by Executive. In addition, ADS shall
maintain Executive on its group medical plan on the same

                                    -6-

<PAGE>
<PAGE>

conditions as if he were to remain employed by ADS, until Executive is
eligible to be covered under another comparable group medical plan.

                  (c) (i) To the extent that during the Term there shall be a
Change in Control, as hereinafter defined, notwithstanding any term to the
contrary in this Agreement, this Agreement shall terminate in which event,
the Executive shall be entitled to receive the Change in Control
Compensation, as hereinafter defined.

                      (ii) For all purposes of this Agreement, a Change
in Control shall be deemed to occur if any person or entity (or persons or
entities acting as a group) acquires stock of ADS that, together with stock
then held by such person, entity or group, results in such person, entity or
group holding more than fifty (50%) percent of the fair market value or
total voting power of ADS.

                      (iii) For all purposes of this Agreement, the
Term Change in Control Compensation shall mean the sum of (A) any and all
earned but unpaid Base Salary and earned but unpaid bonus compensation as of
the date of the Change in Control; (B) five (5) times the Base Salary; and
(C) five (5) times the average bonus paid by ADS to Executive for the three
(3) full calendar years immediately prior to the Change in Control, or the
number of calendar years that were completed commencing on the Effective
Date and ending on the Change in Control if less than three (3) calendar
years. The Change in Control Compensation shall be paid to Executive within
ten (10) days of the Change in Control. In addition, any outstanding stock
options held by Executive as of the Change in Control shall become vested
and exercisable as of such date, and shall remain exercisable as of the life
of the option. Further, ADS shall continue to pay all lease payments on the
vehicle then used by Executive, which vehicle is being leased by ADS for use
by Executive.

                                    -7-

<PAGE>
<PAGE>

         9. CONFIDENTIAL INFORMATION. (a) Executive recognizes and
            ------------------------
acknowledges that all information pertaining to this Agreement or to the
affairs; business; results of operations; accounting methods, practices and
procedures; shareholders; acquisition candidates; financial condition;
clients; customers or other relationships of ADS or any of its affiliates
("Information") is confidential and is a unique and valuable asset of ADS or
any of its affiliates. Access to and knowledge of the Information is
essential to the performance of Executive's duties under this Agreement.
Executive will not, during the Term or thereafter, except to the extent
reasonably necessary in performance of his duties under this Agreement, give
to any person, firm, association, corporation, or governmental agency any
Information, except as may be required by law. Executive will not make use
of the Information for his own purposes or for the benefit of any person or
organization other than ADS or any of its affiliates. Executive will also
use his best efforts to prevent the disclosure of this Information by
others. All records, memoranda, etc. relating to the business of ADS or its
affiliates, whether made by Executive or otherwise coming into his
possession, are confidential and will remain the property of ADS or its
affiliates.

         (b) Executive will, with reasonable notice during or after the
Term, furnish information as may be in his possession and fully cooperate
with ADS and its affiliates as may be required in connection with any claims
or legal action in which ADS or any of its affiliates is or may become a
party.

         10. RESTRICTIONS. (a) During the Term, and to the extent that
             ------------
Executive submits his resignation in accordance with Section 3(a),
thereafter for a two (2) year period (the "Restriction Period"), Executive
agrees that, without the prior express written approval from ADS' Board of
Directors, he shall not compete with ADS and its affiliates by directly or
indirectly engaging in the Business or by engaging in any business
comparable to that of ADS or its affiliates, either

                                    -8-

<PAGE>
<PAGE>

directly or indirectly, as an individual, partner, member, corporation,
limited liability company, limited liability partnership, officer of a
corporation or in any other capacity whatsoever at any location at which ADS
                  -----------------------------
or its affiliates conducts business and/or provides any services.
                                                    ---

         (b) Executive acknowledges that the restrictions contained in this
Section 10 of this Agreement, in view of the nature of the activities in
which ADS and its affiliates are engaged, are reasonable and necessary in
order to protect the legitimate interests of ADS and its affiliates, and
that any violation thereof would result in irreparable injuries to ADS
and/or its affiliate(s), as the case may be. Executive, therefore,
acknowledges that, in the event of the violation of any of these
restrictions, ADS shall be entitled to obtain from any Court of competent
jurisdiction preliminary and permanent injunctive relief, as well as
attorneys fees and costs, damages and an equitable accounting of all
earnings, profits and other benefits arising from such violation, which
rights shall be cumulative, and in addition to any other rights or remedies
to which ADS may be entitled.

         (c) Executive agrees that the restrictions contained in this
Section 10 of this Agreement are an essential element of Executive's
compensation that Executive is granted hereunder and, but for Executive's
agreement to comply with such restrictions, ADS would not have entered into
this Agreement.

         (d) If any of the restrictions set forth in this Section 10 should,
for any reason, be adjudged invalid or unreasonable in any proceeding, then
the validity or enforceability of the remainder of such restrictions shall
not be adversely affected. If the Restriction Period or the area specified
in this Section 10 of this Agreement shall be adjudged unreasonable in any
proceeding, then the Restriction Period shall be reduced by such number of
months, or the area shall be reduced by the elimination of such portion
thereof or both, so that such restrictions may

                                    -9-

<PAGE>
<PAGE>

be enforced in such area and for such period of time as is adjudged to be
reasonable. If Executive violates any of the restrictions contained in this
Section 10, the Restriction Period shall not run in favor of Executive from
the time of commencement of any such violation until such time as such
violation shall be cured by Executive to the satisfaction of ADS.

         (e) THE TERMS OF THIS SECTION 10 SHALL SURVIVE THE TERMINATION OF
THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES THAT HE CAN BE GAINFULLY EMPLOYED AND
STILL COMPLY WITH THE TERMS OF THIS SECTION 10 AND THAT IT IS NOT UNDULY
INCONVENIENT TO HIM.

         11. INDEMNIFICATION; LITIGATION. (a) ADS will indemnify Executive
             ---------------------------
to the fullest extent permitted by the laws of the State of Florida in
effect at that time, or the certificate of incorporation and by-laws of ADS,
whichever affords the greater protection to Executive. Executive will be
entitled to any insurance policies ADS may elect to maintain generally for
the benefit of its officers and directors against all costs, charges and
expenses incurred in connection with any action, suit or proceeding to which
he may be made a party by reason of being an officer of ADS.

         (b) In the event of any litigation or other proceeding between ADS
and Executive with respect to the subject matter of this Agreement, ADS will
reimburse Executive for all costs and expenses related to the litigation or
proceedings, including attorney's fees and expenses, providing that the
litigation or proceedings results in either a settlement requiring ADS to
make a payment to Executive or judgment in favor of Executive.

         12. MITIGATION. Executive will not be required to mitigate the
             ----------
amount of any payment provided for hereunder by seeking other employment or
otherwise, nor will the amount of any such payment be reduced by any
compensation earned by Executive as the result of employment by another
employer after the date Executive's employment hereunder terminates.

                                    -10-

<PAGE>
<PAGE>

         13. REMEDIES. (a) In the event of a breach of this Agreement, the
             --------
nonbreaching Party may maintain an action for specific performance against
the Party who is alleged to have breached any of the terms of this
Agreement. This subparagraph (a) of this Section 13 of this Agreement will
not be construed to limit in any manner any other rights or remedies an
aggrieved Party may have by virtue of any breach of this Agreement.

         (b) Each of the Parties has the right to waive compliance with any
obligation of this Agreement, but a waiver by any Party of any obligation
will not be deemed a waiver of compliance with any other obligation or of
its right to seek redress for any breach of any obligation on any subsequent
occasion, nor will any waiver be deemed effective unless in writing and
signed by the Party so waiving.

         14. CONSOLIDATION, MERGER OR SALE OF ASSETS. Nothing in this
             ---------------------------------------
Agreement will preclude ADS from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertakings of ADS
hereunder. Upon such a consolidation, merger or sale of assets the term
"ADS" will mean the other corporation and this Agreement will continue in
full force and effect.

         15. ATTORNEY'S REPRESENTATIONS. Executive acknowledges that ADS'
             --------------------------
counsel, COOPER LEVENSON APRIL NIEDELMAN & WAGENHEIM, P.A., prepared this
Agreement on behalf of and in the course of their representation of ADS, and
that:

                  1.       Executive has been advised to seek the advice of
                           independent counsel; and

                  2.       Executive has had the opportunity to seek and
                           has, in fact, received the advice of independent
                           counsel of his choosing.

         16. NOTICES. Any notices required or permitted by this Agreement or
             -------
by law to be served on, or delivered to, any Party to this Agreement, shall
be in writing and shall be signed by

                                    -11-

<PAGE>
<PAGE>

the Party giving or delivering it and sent by courier that guarantees
overnight delivery, or by registered or certified mail, return receipt
requested, addressed to the Party to whom any communication under this
Agreement is to be made. Notice given as provided herein shall be deemed to
have been given on the mailing date and, unless otherwise provided herein,
shall be effective from that date. Notice shall be sent to the respective
Party at the address set forth below. Any Party may change its address for
purposes of receiving notices by furnishing notice of such change in the
manner set forth above.

         If to ADS:        Daniel E. Penni
                           APPLIED DIGITAL SOLUTIONS, INC.
                           400 Royal Palm Way, Suite 410
                           Palm Beach, Florida  33480

         If to Executive:  Scott R. Silverman
                           955 Gardenia Drive
                           Delray Beach, Florida  33483

         17. INVALID PROVISIONS. The invalidity or unenforceability of any
             ------------------
particular provision of this Agreement shall not affect the other provisions
hereof, and the Agreement shall be construed in all respects as though such
invalid or unenforceable provisions were omitted.

         18. ASSIGNMENT. This Agreement shall inure to the benefit of and be
             ----------
binding upon ADS, its successors and assigns, and Executive. This Agreement,
being for the personal services of Executive, shall not be assignable or
subject to anticipation by Executive.

         19. AMENDMENTS. The terms and provisions of this Agreement may not
             ----------
be modified except by written instrument duly executed by the Parties.

         20. ENTIRE AGREEMENT. This Agreement supersedes all other oral and
             ----------------
written agreements between the Parties with respect to the matters contained
in this Agreement and,

                                    -12-

<PAGE>
<PAGE>

except as otherwise provided herein, this Agreement contains all of the
covenants and agreements between the Parties with respect to those matters.

         21. LAW GOVERNING AGREEMENT. This Agreement shall be governed by
             -----------------------
and construed in accordance with the laws of the State of Florida. Any terms
and conditions of this Agreement which apply to Executive and/or govern
Executive's behavior after Executive's termination of employment and/or
after the termination of this Agreement shall automatically survive the
termination of this Agreement.

         22. CONSENT TO JURISDICTION AND VENUE. The Parties hereby consent
             ---------------------------------
and submit to the jurisdiction and venue of any state or federal court
within the State of Florida, Palm Beach County in any litigation arising out
of this Agreement.

         23. CAPTIONS AND GENDER. The headings contained in this Agreement
             -------------------
are inserted for convenience and reference purposes only and are not
intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or any provisions hereof, and shall not affect in
any way the meaning or interpretation of this Agreement or any provisions
hereof. All personal pronouns used in this Agreement shall include the other
genders whether used in the masculine or feminine or neuter gender, and the
singular shall include the plural and vice versa whenever and as often as
may be appropriate.

         24. COUNTERPART EXECUTION. This Agreement may be executed in two
             ---------------------
or more counterparts either by facsimile or otherwise, each of which
shall be deemed an original, but all of which together shall constitute one
and the same instrument.

                                    -13-

<PAGE>
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have set their hands and
seals as of the date set forth on the first page of this Agreement.

ATTEST:                             APPLIED DIGITAL SOLUTIONS, INC.

/s/ Michael Krawitz                 /s/ Daniel E. Penni
------------------------------      ------------------------------------------
Michael Krawitz, Secretary          By: Daniel E. Penni, Chairman of the
                                    Compensation Committee of the Board of the
                                    Board of Directors

WITNESS:                            EXECUTIVE:

/s/ Kay E. Langsford                /s/ Scott R. Silverman
---------------------------------   --------------------------------
Kay E. Langsford                    SCOTT R. SILVERMAN

                                    -14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]