Document:

Exhibit 10

Exhibit 10.2

 

EMPLOYMENT

AGREEMENT

 

 

THIS AGREEMENT 

(“Agreement”)  made and entered

into as of this 1st day of April, 

2002,  by and between  DIGITAL ANGEL CORPORATION, a Delaware

corporation (“Company”) and JAMES P. SANTELLI (“Executive”).

 

BACKGROUND

 

Executive has been and 

presently is employed by Company as its Vice President, Finance and

Chief Financial Officer. The parties have previously entered into a formal

employment  agreement  dated September 8, 2000 covering the terms

and conditions of such employment.  The

parties desire to amend such agreement and to set forth in this document such

agreement, as hereby amended, in its entirety.

 

 

A.            The Executive has

accepted the Board of Directors’ appointment as the Company’s Chief Financial

Officer.

 

B.            The Company desires

to assure that Executive provides services to the Company as its employee and

that such employment arrangement have an initial term through March 31,  2005, and Executive desires to be employed

by the Company, subject to the terms and conditions set forth in this

Agreement.

 

NOW, THEREFORE, in consideration of the foregoing premises and the

respective agreements of the Company and Executive set forth below, and for

other good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the Company and Executive, intending to be legally bound,

agree as follows:

 

1.             Employment.  The company hereby employs Executive, and

Executive accepts such employment and agrees to perform services for the

Company, for the period and upon the other terms and conditions set forth in

this Agreement.  The Executive shall

serve in the employ of the Company as Chief Financial Officer and shall serve

in any other capacity in the employ of the Company and its subsidiaries to

which the Executive may from time to time be elected or appointed.

 

2.             Term of

Employment.  Unless terminated at an

earlier date in accordance with Section 9 of this Agreement, the term of

Executive’s employment hereunder shall be for a period of three years, commencing

upon the date hereof.  The term of

Executive’s  employment under this

Agreement shall automatically  be  renewed 

for  successive  additional 

one year  terms on each

anniversary of the  commencement of

Executive’s  employment under this

Agreement, beginning with the April 1, 2003 anniversary  date, each of which terms shall be added at

the end of the then  existing  term 

(taking  into  account 

any  prior extensions or failures

to extend),  unless  either party  notifies the other at least 60 days  prior to an 

anniversary  date of this  Agreement. 

Such notice, if given by either party and not withdrawn prior to the end

of the applicable year, shall be deemed a termination of Executive’s employment

under this Agreement.

 

 

3.             Position and

Duties.

 

(a)           Service with

Company.  During the term of

Executive’s employment with the Company, Executive agrees to perform such

reasonable employment duties as the Board of Directors of the Company shall

assign to him from time to time. 

Executive shall be an executive officer of the Company, Executive’s

title shall be Chief Financial Officer, and he shall assume and discharge the

responsibilities of such offices as set forth in the Company’s Bylaws or as

otherwise determined by the Company’s Chief Executive Officer and/or Board of

Directors.

 

(b)           Performance of

Duties; Performance Review. 

Executive agrees to serve the Company faithfully and to the best of his

ability and to devote his full time, attention and efforts to the business and

affairs of the Company during his employment by the Company.  Executive hereby confirms that he is under

no contractual commitments inconsistent with his obligations set forth in this

Agreement.  While he remains employed by

the Company, Executive may participate in other business activities, including,

without limitation, reasonable charitable activities and personal investment

activities, so long as such activities do not interfere with the performance of

his obligations under this Agreement.

 

4.             Compensation.

 

(a)           Base Salary.  The Company agrees to pay the Executive for

his services hereunder a base salary (the “Base Salary”), which Base Salary

shall be paid in accordance with the Company’s normal payroll procedures and

policies.  Effective on the date of this

Agreement, the Company shall pay to the Executive a Base Salary at the rate of

$175,000 per annum, subject to any required deductions and withholdings.

 

(b)           Benefits.  During the term of Executive’s employment

with the Company, Executive shall be entitled to participate in any of the

Company’s benefit and deferred compensation plans or programs as are from time

to time available to officers of the Company, including profit–sharing,

medical, dental, and health plans, life and disability insurance plans and

supplemental retirement programs (provided, however, that the Executive’s

benefits may be modified or the Executive may be denied participation in any

such plan or program because of a condition or restriction imposed by law or

regulation or third–party insurer or other provider relating to

participation of officers).  The Company

provides no assurance as to the adoption or continuance of any particular

employee benefit plan or program, and, except as set forth below, Executive’s

participation in any such plan or program shall be subject to the provisions,

rules and regulations applicable thereto.

 

(c)           Other Perquisites.  The Executive shall be entitled to vacation,

office, furniture, and an executive assistant in accordance with the past

practices of the Company.  In addition, the

Company will pay or reimburse Executive for all reasonable and necessary 

 

 

2

 

out–of–pocket

expenses incurred by him in the performance of his duties under this Agreement,

subject to the Company’s normal policies for expense verification.

 

5.             Confidential

Information.  Except as permitted by

the Company’s Board of Directors, Executive shall not divulge, furnish or make

accessible to anyone or use in any way (other than in the ordinary course of

the business of the Company) any confidential or secret knowledge or

information of the Company that Executive will acquire during the period of his

employment by the Company, whether developed by himself or by others,

concerning any (i) trade secrets, (ii) confidential or secret

designs, processes, formulae, plans, devices or material (whether or not

patented or patentable) directly or indirectly useful in any aspect of the

business of the Company, (iii) customer or supplier lists of the Company,

(iv) confidential or secret development or research work of the Company,

or (v) other confidential information or secret aspects of the business of

the Company.  Executive acknowledges

that the above–described knowledge or information constitutes a unique

and valuable asset of the Company and represents a substantial investment of

time and expense by the Company, and that any disclosure or other use of such

knowledge or information other than for the sole benefit of the Company would

be wrongful and would cause irreparable harm to the Company.  During the term of this Agreement, Executive

will refrain from any acts or omissions that would reduce the value of such

knowledge or information to the Company. 

The foregoing obligations of confidentiality shall not apply to any knowledge

or information that (x) is now or subsequently becomes generally publicly

known in the form in which it was obtained from the Company, (y) is

independently made available to Executive in good faith by a third party who

has not violated a confidential relationship with the Company, or (z) is

required to be disclosed by legal process, other than as a direct or indirect

result of the breach of this Agreement by Executive.

 

6.             Ventures.  If, during Executive’s employment, Executive

is engaged in or associated with the planning or implementing of any project,

program or venture involving the Company and a third party or parties, all

rights in such project, program or venture shall belong to the Company.  Except as approved by the Company’s Board of

Directors, Executive shall not be entitled to any interest in such project,

program or venture or to any commission, finder’s fee or other compensation in

connection therewith other than the compensation to be paid to Executive as

provided in this Agreement.  Executive

shall have no interest, direct or indirect, in any vendor or customer of the

Company, unless such interest has been disclosed to and approved by the

Company’s Board of Directors. 

Notwithstanding the foregoing, however, ownership by Executive, as a

passive investment, of less than 3% of the outstanding shares of capital stock

of any corporation listed on a national securities exchange or publicly traded

in the over–the counter market shall not constitute a breach of this

Section 6.

 

7.             Noncompetition

Covenant.

 

(a)           Agreement Not to

Compete.  During the term of

Executive’s employment by the Company and for a period of 12 consecutive months

from the date of termination of such employment (whether such termination is

with or without cause, or whether such termination is occasioned by Executive

or the Company), Executive shall not, directly or indirectly, in any place in

North America, engage in the business that the Company has engaged in at the

time of the termination of Executive’s employment or any part of such business,

including the design, 

 

 

3

 

development,

manufacture, distribution, marketing, leasing or selling of animal

identification systems, in any manner or capacity, including, but not limited

to, as a proprietor, principal, agent, partner, officer, director, stockholder,

employee, member of any association, consultant or otherwise.

 

(b)           Agreement Not to

Hire.  During the term of

Executive’s employment by the Company and for a period of 12 consecutive months

from the date of termination of such employment, Executive shall not, directly

or indirectly, hire, engage or solicit any person who is an employee of the

Company.

 

(c)           Limitation on

Covenant.  The ownership by

Executive, as a passive investment, of less than 3% of the outstanding shares

of capital stock of any corporation listed on a national securities exchange or

publicly traded in the over–the–counter market shall not constitute

a breach of this Section 7.

 

(d)           Acknowledgment.  Executive agrees that the restrictions and

agreements contained in this Section 7 are reasonable and necessary to

protect the legitimate interests of the Company and that any violation of this

Section 7 will cause substantial and irreparable harm to the Company that

would not be quantifiable and for which no adequate remedy would exist at law

and accordingly injunctive relief shall be available for any violation of this

Section 7.

 

(e)           Blue Pencil

Doctrine.  If the duration or

geographical extent of, or business activities covered by, this Section 7

are in excess of what is valid and enforceable under applicable law, then such

provision shall be construed to cover only that duration, geographical extent

or activities that are valid and enforceable. 

Executive acknowledges the uncertainty of the law in this respect and

expressly stipulates that this Agreement be given the construction which

renders its provisions valid and enforceable to the maximum extent (not

exceeding its express terms) possible under applicable laws.

 

8.             Work Product;

Assignment of Inventions.

 

(a)           Work Product.  Executive agrees that, during the term of

this employment with the Company:

 

                    (i)        He will disclose promptly and fully to the Company all works

of authorship, inventions, discoveries, improvements, designs, processes,

software, or any improvements, enhancements, or documentation of or to the same

that he makes, works on or conceives, individually or jointly with others in

the course of his employment by the Company or with the use of the Company’s

time, materials or facilities, in any way related or pertaining to or connected

with the present or anticipated business, development, work or research of the

Company or which result from or are suggested by any work he may do for the

Company and whether produced during normal business hours or on personal time

(collectively the “Work Product”);

 

                   (ii)        All Work Product of the Executive shall be deemed to be “work

made for hire” within the meaning of 101 of the Copyright Act and all rights to

copyright shall be 

 

 

4

 

vested

entirely in the Company. If for any reason the Work Product is deemed not to be

“work made for hire” and its rights to copyright are thereby in doubt, this

Agreement shall constitute an irrevocable assignment by the Executive to the

Company of all right, title and interest in the copyright of all Work Product

created under this Agreement. The parties intend that any and all copyright and

other intellectual property rights in the Work Product, including without

limitation any and all rights of whatever kind and nature now or hereafter to

distribute and reproduce such Work Product in any and all media throughout the

world, are the sole property of the Company. 

The Executive hereby agrees to assist the Company in any manner as shall

be reasonably requested by the Company to protect the Company’s interest in

such legal instruments or documents as the Company shall request in order for

the Company to register the Company’s worldwide copyright and/or the Work

Product with the U.S. Copyright Office and to register and protect the

Company’s copyright or other intellectual property rights in the Work Product

throughout the world.  Likewise, the

Executive hereby agrees to assist the Company by executing such other documents

and instruments which the Company deems necessary to enable it to evidence,

perfect and protect its rights, title and interest in and to the Work Product.

 

                  (iii)        Executive shall make and maintain adequate and current

written records and evidence of all Work Product, including drawings, work

papers, graphs, computer records and any other document which shall be and

remain the property of the Company, and which shall be surrendered to the

Company upon request and upon the termination of the Executive’s employment

with the Company, regardless of cause.

 

(b)           Assignment

of Inventions.  Executive agrees

that, during the term of this engagement with Company, Executive may make,

develop or conceive of inventions, original works of authorship, developments,

concepts, improvements or trade secrets, whether or not patentable or

registrable under copyright or similar laws, which Executive may solely or

jointly conceive or develop to reduce to practice, or cause to be conceived of

developed or reduced to practice in connection with the Company’s business,

products, or research and development or the services provided by the Executive

hereunder (collectively referred to as “Inventions”).  The term “Inventions” further includes any useful process, composition

of matter, software, machine, process, discovery, document or improvement which

relates to the business activities which Company is or may become engaged.  Executive agrees that it will promptly make

full written disclosure to the Company, will hold in trust for the sole and

exclusive right and benefit of the Company and its nominees, and hereby assigns

to the Company, or its designee, in perpetuity, all of Executive’s right,

title, and interest in and to any and all Inventions, including background

information necessary to practice such Inventions.

 

                    (i)        Patent and Copyright Registrations.  Company and its nominees shall have the

right to use and apply for common law and statutory protections of such

Inventions in any and all countries and jurisdictions.  Furthermore, Executive agrees to assist the

Company, or its designee, any copyrights, patents, mask work rights or other

intellectual property rights relating thereto in any and all countries and

jurisdictions, including the disclosure to the Company of all pertinent

information and data with respect thereto, the execution of all applications,

specifications, oaths, assignments and all other instruments 

 

 

5

 

which

the Company shall deem necessary in order to apply for and obtain such rights

and in order to assign and convey to the Company, its successors, assigns and

nominees the sole and exclusive right, title and interest in and to such

Inventions, including all rights associated with works of authorship throughout

the world, any copyrights, patents, mask work rights, trade secrets, or other

intellectual property rights relating thereto or analogous to those set forth

herein.  Executive further agrees that its

obligation to execute or cause to be executed, when it is in its power to do

so, any such instrument or papers shall continue after the termination of this

Agreement.  If the Company is unable,

for any reason, to secure Executive’s signature to apply for or to pursue any

application for any United States or foreign patents or copyright registrations

covering Inventions or original works of authorship assigned to the Company as

above, then Executive hereby irrevocably designate and appoint the Company and

its duly authorized officers and agents as Executive’s agent and attorney in

fact, to act for and in Executive’s behalf and stead to execute and file any

such applications and to do all other lawfully permitted acts to further the

prosecution and issuance of letters patent or copyright registrations thereon

with the same legal force and effect as if executed by Executive.  The foregoing rights shall also apply to any

divisions, continuations, renewals, reissues and extensions of the foregoing,

as applicable, now existing or hereafter filed, issued or acquired.

 

                   (ii)        Inventions Retained and Licensed.  Executive has attached hereto, as Exhibit

A, a list describing al inventions, original works of authorship,

developments, improvements, and trade secrets which were made by Executive

prior to its engagement with the Company, which belong to Executive, which

relate to the Company’s business, products or research and development, and

which are not assigned to the Company hereunder (collectively referred to as

“Prior Inventions”); or, if no such list is attached, Executive represents that

there are no such Prior Inventions.  If

in the course of Executive’s engagement with the Company, Executive

incorporates into any inventions, improvement, development, product, copyrightable

material or trade secret any invention, improvement, development, concept,

discovery or other proprietary information owned by Executive or in which

Executive has an interest, the Company is hereby granted and shall have a

nonexclusive, royalty–free, irrevocable, perpetual, worldwide license to

make, have made, modify, use and sell such item as part of or in connection

with such product, process or machine.

 

                  (iii)        Inventions Assigned to the United States.  Executive agrees to assign to the United

States government all of Executive’s right, title, and interest in and to any

and all Inventions whenever such full title is required to be in the United

States by a contract between the Company and the United States or any of its

agencies.

 

                  (iv)        Maintenance of Records.  Executive agrees to keep and maintain adequate and current

written records of all Inventions made by it (solely or jointly with others)

during the term of its engagement with the Company.  The records will be in the form of notes, sketches, drawings, and

any other format that may be specified by the Company.  The records will be available to and remain

the sole property of the Company at all times.

 

 

6

 

9.             Termination

of Employment.

 

(a)           Grounds

for Termination.  Executive’s employment

shall terminate prior to the expiration of the initial term set forth in

Section 2 or any extension thereof in the event that at any time:

 

                    (i)        Executive shall die;

 

                   (ii)        The Board of Directors of the Company shall determine that:

 

(x)            Executive has engaged in willful and material misconduct,

including fraud or embezzlement, or conviction of a felony or a gross

misdemeanor, or has engaged in gross neglect of his duties as an officer or

employee of the Company; or

 

(y)           Executive has breached this Agreement in any material

respect, which breach is not cured by Executive or is not capable of being

cured by Executive within 30 days after written notice of such breach is

delivered to Executive.

 

                  (iii)        The Board of Directors shall determine that Executive has

failed, by reason of illness, incapacity or disability, to render services of

the character contemplated by this Agreement for at least 180 days during any

360–day period;

 

                  (iv)        The Board of Directors shall terminate Executive’s employment

other than pursuant to clause (ii) above, including delivery of a notice of

nonrenewal given by the Company pursuant to Section 2 of this Agreement;

or Executive terminates his employment for “Good Reason.”  For purposes of this Agreement, “Good

Reason” means a material breach of this Agreement by the Company not caused by

Executive (including, without limitation, a material reduction in Executive’s

duties or responsibilities without Executive’s consent, or a material

diminution in the compensation or benefits payable to Executive)  which breach has not been cured within 15

days after written notice thereof by the Executive to the Company; or

 

                   (v)        The Executive shall terminate his employment other than for

Good Reason.

 

(b)           Entitlement

to Accrued Compensation.  If Executive’s

employment by the Company is terminated by the Company pursuant to Section

9(a)(ii) or by the Executive pursuant to Section 9(a)(v), Executive’s rights to

pay and benefits shall cease on the date his employment under this Agreement

terminates, and he shall be paid all accrued Base Salary, any vested deferred

compensation (other than pension plan or profit–sharing plan benefits,

which will be paid in accordance with the applicable plan), any benefits then

due under Section 4(b) of this Agreement, accrued vacation pay, and any

appropriate business expenses incurred by the Executive in connection with his

duties hereunder, all to the effective date of termination (collectively, the

“Accrued Compensation”), but no other compensation or reimbursement of any

kind.

 

 

7

 

(c)           Salary

Continuation.  If Executive’s

employment by the Company is terminated by the Company pursuant to

Section 9(a)(i), Section 9(a)(iii), or Section 9(a)(iv), or by the

Executive for Good Reason pursuant to Section 9(a)(iv), the Company shall pay

to the Executive all Accrued Compensation to the effective date of termination,

and the Company shall continue to pay to Executive his then effective Base

Salary (less any payments received by Executive from any disability income

insurance policy provided to him by the Company) and shall continue to provide

all  benefits to Executive pursuant to

Section 4(b) for the remaining term (including any extensions) of this

Agreement. No deduction shall be made by the Corporation under this Section for

any compensation earned by the Executive from any other employment or for any

other monies otherwise received by the Executive subsequent to termination of

employment hereunder

 

(d)           Release.  The payment of any amounts to Executive

under Section 9(b) or Section 9(c) or otherwise after termination of

Executive’s employment with the Company shall be conditioned upon the Company

receiving a full and complete release from Executive of any current or future

claims Executive may have against the Company, its officers and directors and

other Company affiliates other than (i) with respect to the payment of

amounts specifically provided for herein, (ii) pursuant to rights of

indemnification under the Company’s Certificate of Incorporation or by–laws,

or (iii) pursuant to the terms of any employee benefit plan of the Company

in which Executive is a participant.  If

the Company requires that Executive provide the release discussed in the prior

sentence as a condition to making any payments hereunder, and if Executive

delivers such a release, then the Company shall also be required to give to

Executive a full and complete release of any current or future claims the

Company may have against Executive other than under Sections 5, 6, 7, 8

and 9(e) of this Agreement.

 

(e)           Surrender

of Records and Property.  Upon

termination of his employment with the Company, Executive shall deliver

promptly to the Company all records, manuals, books, blank forms, documents,

letters, memoranda, notes, notebooks, reports, data, tables, calculations or

copies thereof that relate in any way to the business, products, practices or

techniques of the Company, and all other property, trade secrets and

confidential information of the Company, including, but not limited to, all

documents that in whole or in part contain any trade secrets or confidential

information of the Company, which in any of these cases are in his possession

or under his control.

 

 

10.           Change

of Control.

 
 

 (a)

Notwithstanding  any other  provision 

of this Agreement, should a Change of Control (as defined below) occur,

Executive, at his sole option and discretion, may terminate his employment

under this Agreement at any time within one year after such change of

control  upon 15 days  notice. 

In the event of such termination, Company shall pay to Executive a

severance payment equal to the amount described in section 9(c) as the base  amount as defined in Section  280G(b)(3) 

of the Internal  Revenue Code of

1986, as amended  (“Code”)  minus $1.00 which shall be payable  no later 

than one month  after the  effective 

date of the  Executive’s

termination of employment. In addition, in the event of a Change of Control,

all outstanding  

 

8

 

stock options held by Executive  shall become fully exercisable (to the

extent not already  exercisable).   For purposes of this Agreement, a “Change

in Control” shall be deemed to have occurred if (a) any “person” or “group”

(within the meaning of Sections 13 (d) and 14(d)(2) of the Exchange Act of 1934

(the “1934 Act”), other than a trustee or other fiduciary holding securities

under an employee benefit plan of the Corporation is or becomes the “beneficial

owner” (as defined in Rule 13d–3 under the 1934 Act), directly or

indirectly, of more than 33–1/3 of the then outstanding voting stock of

the Corporation; or (b) at any time during any period of three consecutive

years, individuals who at the beginning of such period constituted the Board of

Directors (and any new director whose election by the Board or whose nomination

for election by the Corporation’s stockholders was approved by a vote of at

least two–thirds of the directors then still in office who either were

directors at the beginning of such period or whose election or nomination for

election was previously so approved) cease for any reason to constitute a

majority thereof; or (c) the stockholders of the Corporation approve a merger

or consolidation of the Corporation with any other corporation, other than a

merger or consolidation which would result in the voting securities of the

Corporation outstanding immediately prior thereto continuing to represent

(either by remaining outstanding or by being converted into voting securities

of the surviving entity) at least 80% of the combined voting power of the

voting securities of the Corporation or such surviving entity outstanding

immediately after such merger or consolidation.

 

11.           Remedies.

 

(a)           Remedies.  Executive acknowledges that it would be

difficult to fully compensate the Company for damages resulting from any breach

by him of the provisions of Sections 5, 6, 7, 8 and 9(e) of this

Agreement.  Accordingly, in the event of

any actual or threatened breach of such provisions, the Company shall (in addition

to any other remedies it may have) be entitled to temporary and/or permanent

injunctive and other equitable relief to enforce such provisions, and such

relief may be granted without the necessity or proving actual damages.

 

(b)           Arbitration.  Except for disputes arising under

Sections 5, 6, 7, 8 or 9(e) hereof, all disputes arising under this

Agreement shall be submitted to final and binding arbitration in Minneapolis,

Minnesota.  The arbitrator shall be selected

and the arbitration shall be conducted pursuant to the then most recent

Employment Dispute Resolution Rules of the American Arbitration

Association.  The decision of the

arbitrator shall be final and binding, and any court of competent jurisdiction

may enter judgment upon the award.  All

fees and expenses of the arbitrator shall be shared equally by Executive and

the Company.  The arbitrator shall have

jurisdiction and authority to interpret and apply the provisions of this

Agreement and relevant federal, state and local laws insofar as necessary to

the determination of the dispute and to remedy any breaches of the Agreement

and/or applicable laws, but shall not have jurisdiction or authority to award

punitive damages or alter in any way the provisions of this Agreement.  The arbitrator shall have the authority to

award attorneys= fees and costs to the prevailing party.  The parties agree that this arbitration

provision shall be in lieu of any claims procedure which may be required under

federal law.

 

 

9

 

12.           Miscellaneous.

 

(a)           Governing

Law.  All matters relating to the

interpretation, construction, validity and enforcement of this Agreement shall

be governed by the internal laws of the State of Minnesota without giving

effect to any choice or conflict of law provision or rule (whether of the State

of Minnesota or any other jurisdiction) that would cause the application of

laws of any jurisdiction other than the State of Minnesota.

 

(b)           Entire

Agreement.  This Agreement contains

the entire agreement of the parties relating to the subject matter hereof and

supersedes all prior agreements and understandings with respect to such subject

matter, and the parties hereto have made no agreements, representations or

warranties relating to the subject matter of this Agreement which are not set

forth herein.

 

(c)           Amendments.  No amendment or modification of this

Agreement shall be deemed effective unless made in writing and signed by the

parties hereto.

 

(d)           No

Waiver.  No term or condition of

this Agreement shall be deemed to have been waived, nor shall there be any

estoppel to enforce any provisions of this Agreement, except by a statement in

writing signed by the party against whom enforcement of the waiver or estoppel

is sought.  Any written waiver shall not

be deemed a continuing waiver unless specifically stated, shall operate only as

to the specific term or condition waived, and shall not constitute a waiver of

such term or condition for the future or as to any act other than that

specifically waived.

 

(e)           Other

Employment or Consulting Agreements. 

Executive represents and warrants that (i) Executive has terminated all

other employment or consulting agreements he has previously entered into with

Destron Fearing Corporation or any other entity and (ii) neither Executive nor

Destron Fearing has any obligations under such agreements following their

termination.

 

(f)            Assignment.  This Agreement shall not be assignable, in

whole or in part, by either party without the written consent of the other

party, except that the Company may, without the consent of Executive, assign

its rights and obligations under this Agreement to any corporation, firm or

other business entity with or into which the Company may merge or consolidate,

or to which the Company may sell or transfer all or substantially all of its

assets, or of which 50% or more of the equity investment and of the voting

control is owned, directly or indirectly, by, or is under common ownership

with, the Company.  After any such

assignment by the Company, the Company shall be discharged from all further

liability hereunder, and such assignee shall thereafter be deemed to be the

Company for the purposes of all provisions of this Agreement, including this

Section.

 

(g)           Counterparts.  This Agreement may be executed in any number

of counterparts, and such counterparts executed and delivered, each as an

original, shall constitute but one and the same instrument.

 

(h)           Severability.  Subject to Section 7(f), to the extent

any provision of this Agreement shall be invalid or unenforceable, it shall be

considered deleted herefrom and the remainder of such provision and of this

Agreement shall be unaffected and shall continue in full force and effect.

 

10

 

 

(i)            Captions

and Headings. The captions and paragraph headings used in this Agreement

are for convenience of reference only and shall not affect the construction or

interpretation of this Agreement or any of the provisions hereof.

 

[REMAINDER OF THIS PAGE

INTENTIONALLY LEFT BLANK]

 

 

11

 

 

IN WITNESS WHEREOF, Executive and the Company

have executed this Agreement as of the date set forth in the first paragraph.

 

	

   

  	

  DIGITAL ANGEL CORPORATION

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

   

  	

  Randolph

  K. Geissler, CEO & President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  James

  P. Santelli

  
				

 

12_

Exhibit 10.3

 

AMENDMENT TO

EMPLOYMENT AGREEMENT

 

 

 

                                THIS

AMENDMENT (“Amendment”) is made and entered into as of this 8th day

of March, 2002, by and between DIGITAL ANGEL CORPORATION (“Company”) and

RANDOLPH K. GEISSLER (“Employee”).

 

 

BACKGROUND

 

                                As

of March 8, 2002, Company and Employee entered into an Employment Agreement

(“Employment Agreement”).  Company and

Employee desire to amend Section 21 to make it conform to their understanding.

 

 

TERMS AND CONDITIONS’

 

                                1.             Paragraph 21 of the Employment Agreement

is hereby amended by changing the word “with” in line 2 to the word “by”.

 

                                2.             The Employment Agreement, as hereby

amended, is ratified and confirmed.

 

                                IN

WITNESS WHEREOF, the parties have executed this amendment as of the day and

year first above written.

 

 

	

   

  	

  DIGITAL ANGEL CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  	

  “Company”

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Randolph K. Geissler

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  “Employee”

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]