Document:

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                                                                EXHIBIT 10.1

                          STOCK PURCHASE AGREEMENT

                                   BETWEEN

                       APPLIED DIGITAL SOLUTIONS, INC.

                                     AND

                          DIGITAL ANGEL CORPORATION

                             February 25, 2005

                          STOCK PURCHASE AGREEMENT

       This Stock Purchase Agreement is entered into as of February 25,
2005 (the "Closing Date"), by Applied Digital Solutions, Inc., a Missouri
           ------------
corporation (the "Purchaser" or "ADSX"), and its majority-owned subsidiary,
                  ---------      ----
Digital Angel Corporation, a Delaware corporation ("Seller" or "DOC").
                                                    ------      ---

                           PRELIMINARY STATEMENTS

        For strategic investment purposes, ADSX wishes to purchase from DOC
and DOC wishes to sell to ADSX, in a transaction exempt from the
registration requirements of the Securities Act of 1933, as amended,
newly-issued shares of the common stock of DOC in consideration for newly
issued shares of the common stock of ADSX (which ADSX will seek to register
for resale pursuant to the provisions of the Securities Act of 1933, as
amended), on the terms and subject to the conditions set forth in this
Agreement. ADSX currently owns approximately 54% of the outstanding DOC
Common Stock (as defined hereunder) and has consented to the transactions
contemplated herein.

                                  Agreement

        In consideration of the preliminary statements and the respective
mutual covenants, representations and warranties herein contained, the
parties hereto agree as set forth below.

                                  ARTICLE I

                                 Definitions

       In addition to terms defined elsewhere in this Agreement, the
following terms when used in this Agreement shall have the meanings
indicated below:

       "ADSX Common Stock" shall mean the common stock of ADSX, par value
        -----------------
$.01 per share.

       "ADSX VWAP" means, for any date, the daily volume weighted average
        ---------
price of the ADSX Common Stock for such date as reported by Bloomberg
Financial, L.P. (based on a Trading Day from 9:30 a.m. ET to 4:02 p.m.
Eastern Time) using the VAP (volume average price) function.

       "Agreement" shall mean this Stock Purchase Agreement together with
        ---------
all exhibits and schedules referred to herein.

       "Agreement Effective Date" shall mean the date of execution of this
        ------------------------
Agreement.

        "Commission" shall mean the Securities and Exchange Commission.
         ----------

       "DOC Common Stock" shall mean the common stock of DOC, par value
        ----------------
$.005 per share.

                                     2

       "DOC VWAP" means, for any date, the daily volume weighted average
        --------
price of the DOC Common Stock for such date as reported by Bloomberg
Financial, L.P. (based on a Trading Day from 9:30 a.m. ET to 4:02 p.m.
Eastern Time) using the VAP (volume average price) function.

       "Exchange Act" shall mean the Securities Exchange Act of 1934, as
        ------------
amended.

        "Person" shall mean any natural person, corporation, unincorporated
         ------
organization, partnership, association, joint stock company, joint venture,
trust or government, or any agency or political subdivision of any
government or any other entity.

        "SEC Reports" means all reports required to be filed by ADSX and DOC
         -----------
under the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the one year preceding the date hereof.

       "Securities Act" shall mean the Securities Act of 1933, as amended.
        --------------

       "Trading Day" means a day on which the DOC Common Stock is traded on
        -----------
the American Stock Exchange and a day on which the ADSX Common Stock is
traded on the Nasdaq SmallCap Market, or if the ADSX Common Stock is not
listed on the Nasdaq SmallCap Market, a day on which the ADSX Common Stock
is traded in the over-the-counter market, as reported by the OTC Bulletin
Board or is quoted in the over-the-counter market as reported by the
National Quotation Bureau Incorporated.

                                 ARTICLE II

                    Purchase of Securities; Consideration

       2.1 Securities to be Purchased. On and subject to the terms and
           --------------------------
conditions set forth herein, on the Closing Date, DOC shall sell to ADSX,
and ADSX shall purchase from DOC, all of DOC's right, title and interest in
and to an aggregate of $3,500,000 worth of shares of DOC Common Stock at a
purchase price equaling the average of the VWAPs of the DOC Common Stock for
the ten Trading Days immediately preceding (and not including) the Closing
Date ("Per Share Purchase Price") (the "DOC Shares").
       ------------------------         ----------

       2.2 Consideration. The purchase price for the DOC Shares shall be
           -------------
$3,500,000 ("Purchase Price"), payable by ADSX on the Closing date (as
             --------------
defined hereunder) by delivery, in the aggregate, of the number of shares of
ADSX Common Stock equal in value to $3,500,000 (the "ADSX Exchange Shares").
                                                     --------------------

       2.3 Place of Closing; Closing Date. The closing of the purchase and
           ------------------------------
sale of the DOC Shares under this Agreement will take place at the offices
of the Purchaser or other location as may be mutually agreed by Purchaser
and Seller, and shall occur on the date hereof (the "Closing Date").
                                                     ------------

       2.4 Closing Price. The per share exchange price for the ADSX Exchange
           -------------
Shares issuable under this Agreement on the Closing Date shall equal the
average of the ADSX VWAP for the ten (10) Trading Days immediately preceding
(and not including) the Closing Date.

                                     3

       2.5 Deliveries of DOC Shares and ADSX Exchange Shares on the Closing
           ----------------------------------------------------------------
Date. Subject to the terms and conditions of this Agreement and including
----
but not limited to the closing requirements of Section 7.1, on the Closing
Date: (i) DOC will deliver to ADSX that number of restricted DOC Shares
being purchased as calculated in Section 2.1, and (ii) ADSX will, upon
receipt of the DOC Shares, deliver to DOC, that number of restricted ADSX
Exchange Shares being exchanged in consideration for the DOC Shares as
calculated in Section 2.2.

       2.6 Fractional Shares. DOC and ADSX shall receive a whole number of
           -----------------
shares of DOC Shares and ADSX Exchange Shares, respectively, and no
fractional shares of DOC Shares and ADSX Exchange Shares shall be issued. In
lieu of fractional shares, DOC and ADSX shall deliver to the other
respective party, cash or a company check in the amount of the fractional
shares(s) otherwise issuable to ADSX or DOC by the other party based on the
Closing Price or Fixed Price respectively. The parties hereto hereby direct
their transfer agents to issue and deliver to the other party the shares in
certificate form and agree to provide any and all legal opinions and
supporting documentation as may be required by their transfer agent to
effectuate such immediate issuance and delivery of the Shares.

                                 ARTICLE III

                    Representations and Warranties of DOC

       In order to induce ADSX to enter into this Agreement and to
consummate the transactions contemplated hereby, DOC makes the
representations and warranties set forth below to ADSX.

       3.1 Organization; Standing and Power. DOC is a corporation duly
           --------------------------------
incorporated, validly existing and in good standing under the laws of the
State of Delaware with the requisite corporate power and authority to own
and use its properties and assets and to carry on its business as currently
conducted.

       3.2 Authorization; Enforceability. The execution, delivery and
           -----------------------------
performance of this Agreement by DOC and the consummation by DOC of the
transactions contemplated hereby have been duly authorized by all requisite
corporate action. This Agreement has been duly executed and delivered by
DOC, and constitutes the legal, valid and binding obligation of DOC,
enforceable in accordance with its terms, except to the extent that its
enforcement is limited by bankruptcy, insolvency, reorganization or other
laws relating to or affecting the enforcement of creditors' rights generally
and by general principles of equity.

       3.3 No Violation or Conflict. The execution, delivery and performance
           ------------------------
of this Agreement by DOC and the consummation by DOC of the transactions
contemplated hereby: (a) do not and will not violate or conflict with any
provision of law or regulation, or any writ, order, judgment or decree of
any court or governmental or regulatory authority, or any provision of DOC's
Certificate of Incorporation or Bylaws; and (b) do not and will not, with or
without the passage of time or the giving of notice, result in the breach
of, or constitute a default, cause the acceleration of performance, or
require any consent under, or result in the creation of any lien, charge or
encumbrance upon any property or assets of DOC pursuant to any material
instrument or agreement to which DOC is a party or by which DOC or its
properties may be bound or

                                     4

affected, other than instruments or agreements as to which consent shall
have been obtained at or prior to the Closing Date.

       3.4 Consent of Governmental Authorities. Other than in connection
           -----------------------------------
with the Securities Act, the Exchange Act and the rules of the American
Stock Exchange, no consent, approval or authorization of, or registration,
qualification or filing with any federal, state or local governmental or
regulatory authority is required to be made by DOC in connection with the
execution, delivery or performance by DOC of this Agreement or the
consummation by DOC of the transactions contemplated hereby.

       3.5 Validity of Securities. When issued in accordance with this
           ----------------------
Agreement, the DOC Shares shall be duly and validly authorized, legally
issued and outstanding, fully paid and non-assessable, shall not have been
issued in violation of the preemptive rights of any Person, and free and
clear of all liens and encumbrances.

        3.6 Absence of Material Adverse Changes; Disclosure of Material
            -----------------------------------------------------------
Non-Public Information; SEC Reports. Since the filing by DOC of its
-----------------------------------
Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 and
all current reports filed on Form 8-K since such date, with the Commission,
there have been no material adverse changes to the assets, liabilities,
business or condition (financial or otherwise) of DOC, and all disclosures
of material non-public information required pursuant to the Securities Act
and the Exchange Act have been made accordingly. As of their respective
dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC
Reports contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading.

                                 ARTICLE IV

                   Representations and Warranties of ADSX

       In order to induce DOC to enter into this Agreement and to consummate
the transaction contemplated hereby, ADSX makes the representations and
warranties set forth below to DOC.

       4.1 Organization; Standing and Power. ADSX is a corporation duly
           --------------------------------
incorporated, validly existing and in good standing under the laws of the
State of Missouri with the requisite corporate power and authority to own
and use its properties and assets and to carry on its business as currently
conducted.

       4.2 Authorization; Enforceability. The execution, delivery and
           -----------------------------
performance of this Agreement by ADSX and the consummation by ADSX of the
transactions contemplated hereby have been duly authorized by all requisite
corporate action. This Agreement has been duly executed and delivered by
ADSX, and constitutes the legal, valid and binding obligation of ADSX,
enforceable in accordance with its terms, except to the extent that its
enforcement is limited by bankruptcy, insolvency, reorganization or other
laws relating to or affecting the enforcement of creditors' rights generally
and by general principles of equity.

                                     5

       4.3 No Violation or Conflict. The execution, delivery and performance
           ------------------------
of this Agreement by ADSX and the consummation by ADSX of the transactions
contemplated hereby: (a) do not and will not violate or conflict with any
provision of law or regulation, or any writ, order, judgment or decree of
any court or governmental or regulatory authority, or any provision of
ADSX's Articles of Incorporation or Bylaws; and (b) do not and will not,
with or without the passage of time or the giving of notice, result in the
breach of, or constitute a default, cause the acceleration of performance,
or require any consent under, or result in the creation of any lien, charge
or encumbrance upon any property or assets of ADSX pursuant to any material
instrument or agreement to which ADSX is a party or by which ADSX or its
properties may be bound or affected, other than instruments or agreements as
to which consent shall have been obtained at or prior to the Closing Date.

       4.4 Consent of Governmental Authorities. Other than in connection
           -----------------------------------
with the Securities Act, the Exchange Act and the rules of the Nasdaq Stock
Market, no consent, approval or authorization of, or registration,
qualification or filing with any federal, state or local governmental or
regulatory authority is required to be made by ADSX in connection with the
execution, delivery or performance by ADSX of this Agreement or the
consummation by ADSX of the transactions contemplated hereby.

       4.5 Validity of Securities. When issued in accordance with this
           ----------------------
Agreement, the ADSX Exchange Shares shall be duly and validly authorized,
legally issued and outstanding, fully paid and non-assessable, shall not
have been issued in violation of the preemptive rights of any Person, and
free and clear of all liens and encumbrances.

        4.6 Absence of Material Adverse Changes; Disclosure of Material
            -----------------------------------------------------------
Non-Public Information; SEC Reports. Since the filing by ADSX of its
-----------------------------------
Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, and
all current reports on Form 8-K filed since such date, with the Commission,
there have been no material adverse changes to the assets, liabilities,
business or condition (financial or otherwise) of ADSX, and all disclosures
of material non-public information required pursuant to the Securities Act
and the Exchange Act have been made accordingly. As of their respective
dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC
Reports, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading.

                                  ARTICLE V

                                  Covenants

       5.1 Use of Proceeds. DOC covenants and agrees that the ADSX Exchange
           ---------------
Shares shall be utilized to complete the proposed transaction with
DSD/Daploma on February ___, 2005. It is expressly understood that the
covenants of DOC contained in this Section 5.1 shall survive the Closing.

                                     6

       5.2 Confidentiality. Except as otherwise required in the performance
           ---------------
of obligations under this Agreement and except as otherwise required by law,
any nonpublic information received by a party or its advisors from the other
party shall be kept confidential and shall not be used or disclosed for any
purpose other than in furtherance of the transactions contemplated by this
Agreement. The obligation of confidentiality shall not extend to information
(a) which is or shall become generally available to the public other than as
a result of an unauthorized disclosure by a party to this Agreement or a
person to whom a party has provided such information, (b) which is or
becomes known by or available to a party to this Agreement on a
nonconfidential basis prior to its disclosure by one party to the other
pursuant to this Agreement, or (c) which is or becomes available to a party
on a nonconfidential basis from a source other than a party to this
Agreement. Upon termination of this Agreement, each party shall promptly
return any confidential information received from the other party and, upon
request, shall destroy any copies of such information in its possession. The
covenants of the parties contained in this Section 5.2 shall survive any
termination of this Agreement.

       5.3 Notification. Each party to this Agreement shall promptly notify
           ------------
the other parties in writing of the occurrence, or pending or threatened
occurrence, of any event that would constitute a breach or violation of this
Agreement by any party or that would cause any representation or warranty
made by the notifying party in this Agreement to be false or misleading in
any respect. Any such notification shall not limit or alter any of the
representations, warranties or covenants of the parties set forth in this
Agreement nor any rights or remedies a party may have with respect to a
breach of any representation, warranty or covenant.

        5.4 Further Assurances. The parties hereto shall deliver any and all
            ------------------
other instruments or documents required to be delivered pursuant to, or
necessary or proper in order to give effect to, all of the terms and
provisions of this Agreement including, without limitation, all necessary
stock powers and such other instruments of transfer as may be necessary or
desirable to transfer ownership of the DOC Shares or the ADSX Exchange
Shares and to consummate the transactions contemplated by this Agreement.

                                 ARTICLE VI

                            Additional Agreements

       6.1 Survival of the Representations and Warranties. The
           ----------------------------------------------
representations and warranties of ADSX and of DOC set forth in this
Agreement shall terminate immediately following the Closing Date (or any
alternative closing date).

       6.2 Investigation. The representations, warranties, covenants and
           -------------
agreements set forth in this Agreement shall not be affected or diminished
in any way by any investigation (or failure to investigate) at any time by
or on behalf of the party for whose benefit such representations,
warranties, covenants and agreements were made. All statements contained
herein or in any schedule, certificate, exhibit, list or other document
delivered pursuant hereto or in connection with the transactions
contemplated hereby shall be deemed to be representations and warranties for
purposes of this Agreement.

                                     7

       6.3 Arbitration. Any and all claims, disputes or matters in
           -----------
controversy arising under this Agreement which the parties are unable to
settle by mutual agreement shall be resolved by binding arbitration pursuant
to the Commercial Arbitration Rules of the American Arbitration Association
as in force at the time ("AAA").
                          ---

                  (a) A party which desires to submit a claim, dispute or
controversy to binding arbitration under this Section 6.3 shall so notify
the other parties, and if after 30 days from the date of such notice the
claim, dispute or controversy remains unsettled, any party may petition the
AAA for arbitration of the claim, dispute or controversy. Matters submitted
to arbitration shall be resolved in accordance with the decision of a panel
of three arbitrators selected by the AAA. The arbitrators shall be
experienced in the resolution of commercial disputes arising in the context
of negotiated acquisitions of businesses, and the place of arbitration shall
be either West Palm Beach or Delray Beach, Florida.

                  (b) The three arbitrators shall investigate the facts and
shall hold hearings at which the parties to this Agreement may present
evidence and arguments, be represented by counsel and conduct
cross-examination. In determining any question, matter or dispute before
them, the arbitrators shall apply the provisions of this Agreement and shall
not have the power to add to, modify or change any of the provisions of this
Agreement. The three arbitrators shall render a written decision upon the
matter presented to them by a majority vote within 90 days after the date on
which the hearings and presentation of evidence are concluded, unless a
longer period is provided under the rules of the AAA. The decision rendered
by the arbitrators shall be final and binding on, and unappealable by, the
parties. Judgment upon the decision rendered in such arbitration may be
entered by any court having jurisdiction thereof. No party to an arbitration
proceeding shall be considered in default hereunder during the pendency of
arbitration proceedings relating to a disputed default. If the three
arbitrators fail to render a timely decision, then, to the extent permitted
by law, any party shall have the right to institute an action or proceeding
in such court as shall be appropriate in the circumstances, and, upon the
institution of such action, the arbitration proceeding shall be terminated
and shall be of no further force and effect. The arbitrators shall determine
in what proportion the parties shall bear the fees and expenses of the
arbitrators, and each party shall otherwise bear its own fees and expenses,
including expenses of legal counsel and other advisors or consultants. It is
the intention of the parties that arbitration as described above be the sole
and exclusive means available to them for the resolution of claims, disputes
or matters in controversy arising under this Agreement, other than claims,
disputes and matters arising under those provisions referred to in the first
sentence of this Section 6.3, and only in the event that the arbitrators
fail to render a decision in accordance with the foregoing provisions shall
a party have the right to institute legal action with respect to such claim,
dispute or matter. Accordingly, it shall be a complete defense to any action
instituted by a party with respect to a claim, dispute or matter in
controversy under this Agreement that such claim, dispute or matter has not
first been submitted to arbitration in accordance with the foregoing
provisions.

                                     8

                                 ARTICLE VII

                        Closing; Conditions Precedent

       7.1 Closing. All proceedings to be taken and all documents to be
           -------
executed on the Closing Date shall be deemed to have been taken, delivered
and executed simultaneously, and no proceeding shall be deemed taken nor
documents deemed executed or delivered until all have been taken, delivered
and executed. On the Closing Date, DOC shall deliver to ADSX (i) the DOC
Shares in accordance with the procedure described in Section 2.4, free and
clear of any and all claims, liens, charges, security interests, pledges or
encumbrances of any nature whatsoever and together with all accrued benefits
and rights attaching thereto; (ii) certificate of the Secretary of State of
Delaware as of a recent date as to the good standing of DOC and its
Certificate of Incorporation; (iii) such other documents as may be
specified, or required to satisfy the conditions set forth, in Sections 7.2
and 7.3; and (iv) such other documents and instruments as ADSX may
reasonably request. On the Closing Date, ADSX shall deliver to DOC (i) the
ADSX Exchange Shares in accordance with the procedure described in Section
2.6, free and clear of any and all claims, liens, charges, security
interests, pledges or encumbrances of any nature whatsoever and together
with all accrued benefits and rights attaching thereto; (ii) certificate of
the Secretary of State of Missouri as of a recent date as to the good
standing of ADSX and its Articles of Incorporation, as amended; (ii) such
other documents as may be specified, or required to satisfy the conditions
set forth, in Sections 7.2 and 7.3; and (iii) such other documents and
instruments as DOC may reasonably request.

       7.2 Conditions Precedent to the Obligations of ADSX. All of the
           -----------------------------------------------
obligations of ADSX under this Agreement are subject to the satisfaction at
or prior to the Closing Date (or any alternative closing date) of each and
every one of the following conditions.

                  (a) Representations and Warranties True. Each of the
                      -----------------------------------
representations and warranties of DOC contained herein or in any certificate
or other document delivered pursuant to this Agreement or in connection with
the transaction contemplated hereby shall be true and correct in all
material respects (except for representations and warranties which are by
their terms qualified by materiality, which shall be true and correct in all
respects) as of the Closing Date with the same force and effect as though
made on and as of such date.

                  (b) Performance. DOC shall have performed and complied in
                      -----------
all material respects with all of the agreements, covenants and obligations
required under this Agreement to be performed or complied with by them on or
prior to the Closing Date.

                  (c) Consents. DOC shall have obtained all material
                      --------
authorizations, consents, waivers and approvals as may be required to
consummate the transaction contemplated by this Agreement.

                  (d) DOC Audit Committee and Board Approval. The Audit
                      --------------------------------------
Committee and the Board of Directors of DOC shall have approved the
execution, delivery and performance of this Agreement by DOC.

                  (e) Seller's Certificate. DOC shall have delivered to ADSX
                      --------------------
a certificate executed by DOC, dated the Closing Date, certifying in such
detail as ADSX may reasonably request, that the conditions specified in
Sections 7.2(a), (b), (c) and (d) above have been fulfilled and as to such
other matters as ADSX may reasonably request.

                                     9

       7.3 Conditions Precedent to the Obligations of DOC. All of the
           ----------------------------------------------
obligations of DOC under this Agreement are subject to the satisfaction at
or prior to the Closing Date (or any alternative closing date) of each and
every one of the following conditions.

                  (a) Representations and Warranties True. Each of the
                      -----------------------------------
representations and warranties of ADSX contained herein or in any
certificate or other document delivered pursuant to this Agreement or in
connection with the transaction contemplated hereby shall be true and
correct in all material respects (except for representations and warranties
which are by their terms qualified by materiality, which shall be true and
correct in all respects) as of the Closing Date with the same force and
effect as though made on and as of such date.

                  (b) Performance. ADSX shall have performed and complied in
                      -----------
all material respects with all of the agreements, covenants and obligations
required under this Agreement to be performed or complied with by it on or
prior to the Closing Date.

                  (c) Consents. ADSX shall have obtained all material
                      --------
authorizations, consents, waivers and approvals as may be required to
consummate the transaction contemplated by this Agreement.

                  (d) ADSX Audit Committee and Board Approval. The Audit
                      ---------------------------------------
Committee and the Board of Directors of ADSX shall have approved the
execution, delivery and performance of this Agreement by ADSX.

                  (e) Purchaser's Certificate. ADSX shall have delivered to
                      -----------------------
DOC a certificate executed by ADSX, dated the Closing Date, certifying in
such detail as DOC may reasonably request, that the conditions specified in
Sections 7.3(a), (b), (c) and (d) above have been fulfilled and as to such
other matters as DOC may reasonably request.

                                     10

                                ARTICLE VIII

                                Registration

         8.1 Registration of ADSX Exchange Shares. As soon as practicable
             ------------------------------------
after DOC has delivered the ADSX Exchange Shares to the DSD/Daploma
shareholders, ADSX shall prepare and file with the Commission the
Registration Statement covering the resale of the ADSX Exchange Shares for
an offering to be made under the Securities Act. The Registration Statement
shall be on Form S-1 (or Form S-3 if ADSX is then eligible to register for
resale the Securities on Form S-3). ADSX shall use its best efforts to cause
the Registration Statement to be declared effective under the Securities Act
as promptly as possible after the filing thereof, and shall use its best
efforts to keep such Registration Statement continuously effective under the
Securities Act until the date when all ADSX Exchange Shares covered by the
Registration Statement have been sold or may be sold without volume
restrictions pursuant to Rule 144(k) as determined by counsel to ADSX
pursuant to a written opinion letter to such effect, addressed and
acceptable to ADSX's transfer agent. ADSX shall notify DOC via facsimile or
e-mail, followed by regular U.S. Mail, of the effectiveness of the
Registration Statement immediately after ADSX receives notification of the
effectiveness of such Registration Statement from the Commission;

         8.2 DOC Registrable Shares' Registration Rights; Piggyback
             ------------------------------------------------------
Registration; Demand Registration.
---------------------------------

         (a) At any time and from time to time after the date of this
Agreement, whenever DOC proposes to file a registration statement, DOC shall
no less than fifteen (15) days prior to such filing give written notice to
ADSX of its intention to do so and, upon the written request of ADSX given
within ten (10) days after DOC provides such notice, shall use its good
faith efforts to cause all DOC Registrable Shares which DOC has been
requested by ADSX to register to be registered under the Securities Act to
the extent necessary to permit their sale or other disposition in accordance
with the intended methods of distribution specified in the request of ADSX.

         (b) At any time and from time to time after the date of this
Agreement, upon receipt of a written request from ADSX specifying the number
of DOC Registrable Shares that ADSX desires to register for public sale, DOC
promptly shall prepare and file with the Commission within 120 days of the
written request a registration statement under the Securities Act covering a
public offering of the DOC Registrable Shares and shall use all reasonable
efforts to cause the registration statement to become effective as soon as
is practicable. If permitted by the Securities Act, DOC shall use a Form S-3
registration statement (or any successor form) to register the DOC
Registrable Shares pursuant to this Section 8.2(b). If it is ineligible to
use a Form S-3 registration statement, DOC may use any other form of SEC
registration statement that it considers appropriate, as long as DOC is
eligible to use the form and the form does not impair in any way ADSX's
ability to publicly offer and sell any DOC Registrable Shares compared to
such ability if DOC were eligible to use Form S-3.

                                     11

                                 ARTICLE IX

                                 Termination

         9.1 Termination. This Agreement may be terminated as follows: (i)
             -----------
by mutual written consent of the parties at any time prior to an alternative
closing date (in lieu of the Closing Date); and (ii) ADSX or DOC may
terminate this Agreement by giving written notice to the other party at any
time prior to an alternative closing date (in lieu of the Closing Date) if
either ADSX or DOC has breached any representation, warranty or covenant
contained in this Agreement in any material respect.

         9.2 Effect of Termination. If ADSX or DOC terminates this Agreement
             ---------------------
pursuant to Section 9.1(ii), all rights and obligations of the parties
hereunder shall terminate without any liability of any party to the other
party.

                                  ARTICLE X

                                Miscellaneous

       10.1 Notices. Any notice, demand, claim or other communication under
            -------
this Agreement shall be in writing and shall be delivered personally or sent
by certified mail, return receipt requested, postage prepaid, or sent by
facsimile or prepaid overnight courier to the parties at the addresses set
forth below their names on the signature pages of this Agreement (or at such
other addresses as shall be specified by the parties by like notice). Such
notices, demands, claims and other communications shall be deemed given when
actually received or, (a) in the case of delivery by overnight service with
guaranteed next day delivery, the next day or the day designated for
delivery, (b) in the case of certified U.S. mail, five days after deposit in
the U.S. mail, or (c) in the case of facsimile, the date upon which the
transmitting party received confirmation of receipt by facsimile, telephone
or otherwise.

       10.2 Entire Agreement. This Agreement contains every obligation and
            ----------------
understanding between the parties relating to the subject matter hereof and
merges all prior discussions, negotiations and agreements, if any, between
them, and none of the parties shall be bound by any conditions, definitions,
understandings, warranties or representations other than as expressly
provided or referred to herein.

       10.3 Binding Effect. This Agreement shall be binding upon and inure
            --------------
to the benefit of the parties hereto and their respective successors, heirs,
personal representatives, legal representatives, and permitted assigns.

       10.4 Assignment. This Agreement may not be assigned by any party
            ----------
without the written consent of the other party.

       10.5 Waiver and Amendment. Any representation, warranty, covenant,
            --------------------
term or condition of this Agreement which may legally be waived, may be
waived, or the time of performance thereof extended, at any time by the
party hereto entitled to the benefit thereof, and any term, condition or
covenant hereof (including, without limitation, the period during which any
condition is to be satisfied or any obligation performed) may be amended by
the parties hereto at

                                     12

any time. Any such waiver, extension or amendment shall be evidenced by an
instrument in writing executed on behalf of the appropriate party by its
Chairman, President or any Vice President or other person, who has been
authorized by its Board of Directors to execute waivers, extensions or
amendments on its behalf. No waiver by any party hereto, whether express or
implied, of its rights under any provision of this Agreement shall
constitute a waiver of such party's rights under such provisions at any
other time or a waiver of such party's rights under any other provision of
this Agreement. No failure by any party hereto to take any action against
any breach of this Agreement or default by another party shall constitute a
waiver of the former party's right to enforce any provision of this
Agreement or to take action against such breach or default or any subsequent
breach or default by such other party.

       10.6 Severability. In the event that any one or more of the
            ------------
provisions contained in this Agreement shall be declared invalid, void or
unenforceable, the remainder of the provisions of this Agreement shall
remain in full force and effect, and such invalid, void or unenforceable
provision shall be interpreted as closely as possible to the manner in which
it was written.

       10.7 Expenses. Each party agrees to pay, without right of
            --------
reimbursement from the other party, the costs incurred by it incident to the
performance of its obligations under this Agreement and the consummation of
the transactions contemplated hereby, including, without limitation, costs
incident to the preparation of this Agreement, and the fees and
disbursements of counsel, accountants and consultants employed by such party
in connection herewith.

       10.8 Headings. The section and other headings contained in this
            --------
Agreement are for reference purposes only and shall not affect the meaning
or interpretation of any provisions of this Agreement.

       10.9 Counterparts. This Agreement may be executed in any number of
            ------------
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

       10.10 Time of Essence. Wherever time is specified for the doing or
             ---------------
performance of any act hereunder, time shall be considered of the essence.

       10.11 Litigation; Prevailing Party. If, notwithstanding the
             ----------------------------
provisions of Section 6.3 regarding arbitration hereunder, any litigation is
instituted with regard to this Agreement, the prevailing party shall be
entitled to receive from the non-prevailing party and the non-prevailing
party shall pay all reasonable fees and expenses of counsel for the
prevailing party.

       10.12 Injunctive Relief. It is possible that remedies at law may be
             -----------------
inadequate and, therefore, the parties hereto shall be entitled to equitable
relief including, without limitation, injunctive relief, specific
performance or other equitable remedies in addition to all other remedies
provided hereunder or available to the parties hereto at law or in equity.

       10.13 Remedies Cumulative. No remedy made available by any of the
             -------------------
provisions of this Agreement is intended to be exclusive of any other
remedy, and each and every remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing
at law or in equity.

                                     13

       10.14 Governing Law. This Agreement has been entered into and shall
             -------------
be construed and enforced in accordance with the laws of the State of
Florida without reference to the choice of law principles thereof.

       10.15 Jurisdiction and Venue. If, notwithstanding the provisions of
             ----------------------
Section 6.3 regarding arbitration hereunder, any litigation is instituted
with regard to this Agreement, this Agreement shall be subject to the
exclusive jurisdiction of the courts of Palm Beach County, Florida. The
parties to this Agreement agree that any breach of any term or condition of
this Agreement shall be deemed to be a breach occurring in the State of
Florida by virtue of a failure to perform an act required to be performed in
the State of Florida and irrevocably and expressly agree to submit to the
jurisdiction of the courts of the State of Florida for the purpose of
resolving any disputes among the parties relating to this Agreement or the
transactions contemplated hereby. The parties irrevocably waive, to the
fullest extent permitted by law, any objection which they may now or
hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement, or any judgment entered by any
court in respect hereof brought in Palm Beach County, Florida, and further
irrevocably waive any claim that any suit, action or proceeding brought in
Palm Beach County, Florida has been brought in an inconvenient forum.

       10.16 Participation of Parties. The parties hereto acknowledge that
             ------------------------
this Agreement and all matters contemplated herein, have been negotiated
among all parties hereto and their respective legal counsel and that all
such parties have participated in the drafting and preparation of this
Agreement from the commencement of negotiations at all times through the
execution hereof. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement.

       10.17 Preliminary Statements. The parties hereto acknowledge that the
             ----------------------
preliminary statements contained herein shall be deemed part of this
Agreement and shall be binding upon the parties.

                       [signatures on following page]

                                     14

       IN WITNESS WHEREOF, the parties hereto have each executed and
delivered this Agreement as of the day and year first above written.

                                  APPLIED DIGITAL SOLUTIONS, INC.

                                  By: /s/ Scott R. Silverman
                                     ------------------------------------------
                                  Name: Scott R. Silverman
                                  Title: Chief Executive Officer

                                  Address for Notice:
                                  ------------------
                                  1690 South Congress Avenue, Suite 200
                                  Delray Beach, Florida 33445
                                  Attn: Scott R. Silverman, CEO
                                  Tel: (561) 805-8056
                                  Fax: (561) 805-8001

<TABLE>
<S>                               <C>                               <C>
With a copy to:                   Holland & Knight LLP      and     Applied Digital Solutions, Inc.
                                  701 Brickell Avenue               1690 South Congress Avenue
                                  Suite 3000                        Suite 200
                                  Miami, FL 33131                   Delray Beach, Florida 33445
                                  Attn: Harvey Goldman, Esq.        Attn: Michael Krawitz, Esq.
                                  Tel: (305)789-7506                Tel: (561) 805-8005
                                  Fax: (305)789-7799                Fax: (561) 805-8001
</TABLE>

                                  DIGITAL ANGEL CORPORATION

                                  By: /s/ Kevin N. McGrath
                                     ------------------------------------------
                                  Name: Kevin N. McGrath
                                  Title: Chief Executive Officer

                                  Address for Notice:
                                  ------------------
                                  490 Villaume Corporation
                                  South St. Paul, MN  55075
                                  Attn: Kevin N. McGrath
                                  Tel: (651) 455-1621
                                  Fax: (651) 455-0413

With a copy to:                   Winthrop & Weinstine
                                  Suite 3500
                                  225 South Sixth Street
                                  Minneapolis, MN  55402
                                  Attn: Philip Colton, Esq.
                                  Tel: (612) 604-6400
                                  Fax: (612) 604-6800

                                     15

                                  Schedules
                                  ---------

                               (as necessary)<PAGE>
                                                                EXHIBIT 10.2

                          STOCK PURCHASE AGREEMENT
                          ------------------------

THIS STOCK PURCHASE AGREEMENT ("Agreement"), made and entered into effective
as of the 28 day of February, 2005, by and among DIGITAL ANGEL
CORPORATION, a Delaware corporation ("Buyer"); and LASSE NORDFJELD, who
holds Shares under LANO Holding ApS ("L. Nordfjeld") and TORSTEN NORDFJELD,
who holds Shares as an individual and holds Bonds (as defined below) under
LATO Aps ("T. Nordfjeld") (L. Nordfjeld and T. Nordfjeld shall be
collectively referred to herein as the "Management Shareholders"), all the
SHAREHOLDERS OF DSD Holding A/S, a Danish corporation (the "Company") as
listed below ("Additional Shareholders") as well as those warrant holders
("Warrant Holders") and bond holders ("Bond Holders") listed below that
choose to exercise their rights to acquire shares of the Company after the
effective date of this Agreement, hereafter listed on Exhibit 1.1 to this
                                                      -----------
Agreement. (The Management Shareholders, the Additional Shareholders, the
Warrant Holders and the Bond Holders shall be collectively referred to
herein as the "Shareholders").

                            W I T N E S S E T H:

WHEREAS, the Company and its Subsidiaries (as defined under paragraph 2.2 of
this Agreement) are involved in the business of electronic identification
devices;

WHEREAS, the Company has a share capital of DKK 5,548,500, the nominal value
of DKK 50 per share, currently issued and outstanding, all such issued and
outstanding shares being owned and held of record by the Shareholders as
follows:

<TABLE>
<CAPTION>
         SHAREHOLDER                        SHARE CAPITAL                SHARES OWNED            OWNERSHIP
         -----------                        -------------                ------------            ---------
                                            (DKK)                                                PERCENTAGE
                                            -----                                                ----------
         <S>                                <C>                          <C>                     <C>
         LANO Holding ApS                   3,430,000                     68,600 shs.            61.82%
         Torsten Nordfjeld                    556,000                     11,120 shs.            10.02%
         Vaekstfonden                         312,500                      6,250 shs.             5.63%
         Parfait ApS                        1,250,000                     25,000 shs.            22.53%
                                            ---------                     -----------            ------
                  Total                     5,548,500                    110,970 shs.            100%
</TABLE>

WHEREAS, the Company has issued warrants to purchase an aggregate of 3,000
shares of the Company's stock ("Warrants") exercisable at the price per
share as indicated, all such issued and outstanding Warrants being owned and
held of record by the Warrant Holders as follows:

<TABLE>
<CAPTION>
         WARRANT HOLDER                         UNDERLYING SHARES              EXERCISE PRICE PER SHARE
         --------------                         -----------------              ------------------------
         <S>                                      <C>                                <C>
         Torsten Nordfjeld                           3,000 shs                           DKK 200
                                                  ------------                       -----------

                  Total                              3,000 shs.                      DKK 600,000
</TABLE>

WHEREAS, the Company has issued certain bonds in the principal amounts
indicated convertible into shares of the Company's stock ("Bonds"), all such
issued and outstanding Bonds being owned and held of record by the Bond
Holders as follows:

         BOND HOLDER                                        PRINCIPAL AMOUNT
         -----------                                        ----------------

         LANO Holding ApS                                      DKK 1,300,000
         LATO ApS                                                DKK 500,000
         Gunnar Johan Sorensen                                    DKK 50,000
         Micheal Tezlaff                                         DKK 100,000
                                                                 -----------
                   Total                                       DKK 1,950,000

WHEREAS, the Shareholders desire to sell to Buyer, and Buyer desires to buy
from the Shareholders, all of the issued and outstanding shares of the stock
of the Company on the terms and subject to the conditions indicated below.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual
covenants and agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

                                 ARTICLE 1.

                              PURCHASE OF STOCK
                              -----------------

1.1 PURCHASE AND SALE OF SHARES. On the terms and subject to the conditions
    ---------------------------
herein set forth, on the "Closing Date" (as such term is hereinafter
defined), the Shareholders hereby agree to sell, transfer and deliver to
Buyer, and Buyer hereby agrees to purchase and acquire from the
Shareholders, the number of shares of the issued and outstanding stock of
the Company set forth opposite each of the Shareholders names on Exhibit 1.1
                                                                 -----------
attached hereto, as may be amended at the Closing Date to include those
Warrant Holders and Bond Holders that choose to exercise their rights to
acquire shares of the Company after the effective date of this Agreement
(collectively, the "Shares"), which constitutes, in the aggregate, all of
the issued and outstanding stock of the Company.

          1.1.1 DIVISION. On November 10, 2004, the Shareholders of the
          Company decided to divide the Company's assets and liabilities
          between the Company and SFK Technology Holding A/S (the
          "Division"), whereby DKK 5,567,500 of the Company's share capital
          was redeemed and the Company's share capital of DKK 11,116,000 was
          reduced to DKK 5,548,500. In connection with the Division,
          according to Article 46 of the Danish Companies Act, the Company
          is required to insert a notification in the Danish Official

                                    -2-

          Gazette ("Statstidende") calling on the creditors who do not
          accept the capital reduction under the Division to file their
          claims within 3 months of the date of such notification (the
          "Claims"). The Company inserted the notification on December 1,
          2004, and, therefore, the capital reduction under the Division
          cannot be formally registered before March 1, 2005 at the
          earliest. Further, the Danish law provides that the capital
          reduction under the Division cannot be formally registered as long
          as filed Claims due for payment have not been satisfied and
          adequate security has not been provided for Claims that have not
          fallen due or are in dispute. The Management Shareholders each
          hereby represent that no Claims have been filed as of the date of
          this Agreement and do not expect that any Claims will be filed on
          or before March 1, 2005. However, if any Claims are filed, the
          Management Shareholders hereby agree to be responsible for the
          full payment and settlement of any and all Claims.

1.2 CLOSING. Closing on the purchase and sale of the Shares shall take place
    -------
at the offices of Lassen Ricard on February 28, 2005 at 10:00 a.m., or by
such other method, on such other time and date and at such other location as
may be mutually agreed upon by the parties to this Agreement (such date is
referred to in this Agreement as the "Closing Date"). The effective time of
the closing shall be as of 12:01 a.m. on the Closing Date (the "Closing").

1.3 PURCHASE PRICE.
    --------------

         1.3.1 The aggregate consideration (the "Purchase Price") to be paid
         by Buyer for the Shares to the Shareholders, pro rata based on the
         number of Shares owned, shall be as follows:

         (i) The Purchase Price shall be Seven (7) times the average annual
         EBITDA of the Company for the calendar years of 2005, 2006 and 2007
         ("EBITDA Period") minus the outstanding Indebtedness of the Company
         as of December 31, 2007 (net of any cash in excess of cash at
         Closing) and minus thirty percent (30%) of the total compensation
         paid to L. Nordfjeld pursuant to the Employment Agreement described
         under paragraph 5.2.4, all as determined as provided in paragraph
         1.3.2 below. The Purchase Price shall be calculated in Danish Krone
         (DKK), at the conversion rate then current on the date the Purchase
         Price Calculation is determined as provided in paragraph 1.3.2.

         For purposes of this calculation, "EBITDA" shall mean an amount
         equal to the net income or loss of the Company, the net income or
         loss determined in accordance with generally accepted accounting
         principles in the United States of America ("U.S. GAAP")
         consistently applied, before interest, income taxes, depreciation
         and amortization. "Indebtedness" shall mean (a) any indebtedness
         for borrowed money or the deferred purchase price of property as
         evidenced by a note, bond, or other instruments; (b) any
         obligations as lessee under capital leases; (c) obligations secured
         by any mortgage, pledge, security interest, encumbrance, lien or
         charge of any kind existing on any asset owned or held by the
         Company or any of its Subsidiaries whether or not the Company or
         any of its Subsidiaries has assumed or become liable for the
         obligations secured thereby; (d) any obligation under any interest
         rate swap agreement; (e) any obligations under direct or indirect
         guarantees of (including obligations, contingent or otherwise, to
         assure a creditor against loss in respect of) indebtedness or
         obligations of the kinds referred to in

                                    -3-

         clauses (a), (b), (c) and (d) above, excluding bank guarantees for
         performance under tender orders given in the normal course of
         business; (f) any advances or other obligations owed to Buyer or
         any of its affiliates; and (g) any similar obligation of the
         Company or any of its Subsidiaries. Indebtedness shall not include
         accounts or trade payables due in the ordinary course of the
         Company's business.

         (ii) For purposes of this paragraph 1.3.1 and the calculations to
         be made pursuant to this paragraph 1.3.1 and the Triggering Events
         defined below, the term "Company" shall mean the Company on a
         consolidated basis with its Subsidiaries in its present form (i.e.,
         as of the Closing Date) and shall not include any
         subsequently-added or acquired businesses or Subsidiary unless
         consented to in writing by Buyer.

         (iii) Payment of the Purchase Price will be made pursuant to
         paragraph 1.4.1, Initial Stock Payment, with the balance, if any,
         pursuant to paragraph 1.4.3, Payment of Balance of Purchase Price.
         The parties hereto hereby acknowledge and agree that the Purchase
         Price shall in no event be less than the amount of the Initial
         Stock Payment due to the Shareholders under paragraph 1.4.1.

         (iv) The Shareholders specifically acknowledge, understand and
         agree that: (a) the Buyer will exercise its good faith in managing
         the Company subsequent to Closing; (b) Buyer, as sole shareholder,
         will have ultimate control over the business direction and
         decisions of the Company subsequent to Closing, and there is always
         business risk that some decisions may result in losses or are
         otherwise sub-optimal; and (c) Buyer will be fair in not usurping
         business opportunities, but as both Buyer and the Company are in
         the same business, there is a possibility that some new business
         may be attributed to or preserved by Buyer and not the Company.

         (v) During the course of Buyer's management of the Company from the
         date of Closing to December 31, 2007, if the Buyer takes an action
         ("Triggering Event") that the Shareholder Representative believes
         materially negatively affects the Purchase Price Calculation, as
         defined below, the Shareholder Representative shall notify Buyer in
         writing if the Shareholder Representative objects to such
         Triggering Event within the thirty (30) day period following such
         Triggering Event, stating in such objection specific reasons for
         the objection along with financial projections of the affect of not
         permitting such Triggering Event. The Shareholder Representative
         and the Buyer hereby agree to negotiate in good faith a mutually
         agreeable resolution if there is an objection to the Triggering
         Event. If the parties cannot agree to a resolution within fourteen
         (14) days of the Buyer's receipt of the objection notice, the
         parties shall submit the matter for resolution to an
         internationally recognized arbitrator located in England
         ("Arbitrator"), not affiliated with either party. The costs of the
         Arbitrator are to be paid by the party whose position is not upheld
         by the Arbitrator. However, if neither party's position is upheld
         by the Arbitrator, the costs of the Arbitrator shall be shared
         equally by the parties. Examples of possible Triggering Events
         include, but are not limited to, the following:

                  (a) a significant change in the Company's, or in one of
                  its Subsidiaries', current structure, business strategy or
                  activities, including, but not limited to, discontinuation
                  of the production and sale of ear tags or liquidation of
                  the

                                    -4-

                  Company or one of its Subsidiaries unless the activities
                  are transferred to the Company or one of the Company's
                  Subsidiaries;

                  (b) a significant change in the Company's accounting
                  principles, other than the changes to the Company's
                  accounting principles after the Closing Date so that they
                  are in accordance with U.S. GAAP;

                  (c) the Buyer, or any of its affiliates, performs any
                  business activities in Europe that the Company and its
                  Subsidiaries presently perform;

                  (d) a significant change in the Company's or one of the
                  Company's Subsidiaries' current financing which would
                  result in the Company or the Company's Subsidiary not
                  having sufficient financing for the Company's or the
                  Company's Subsidiary's current activities;

                  (e) an extraordinary and non-standard cost is incurred by
                  the Company or one of the Company's Subsidiaries as
                  compared with the current and normal costs and activities
                  of the Company or the Company's Subsidiary, including, but
                  not limited to, a significant increase in investments,
                  significant price reduction, significant management fees
                  to the Buyer, significant fees to members of the boards of
                  directors of the Company and the Company's Subsidiaries;

                  (f) the Company or one of the Company's Subsidiaries
                  provides business or financial assistance to the Buyer or
                  one of the Buyer's affiliated businesses and is not fairly
                  compensated in accordance with arm's length principles; or

                  (g) payment of a dividend or any equivalent to the Buyer.

         (vi) For purposes of this Agreement, the term "Shareholder
         Representative" shall mean a Shareholder whom the Shareholders
         agree by a majority vote will represent their interests as
         Shareholders and has the authority to act on the Shareholders'
         behalf as specified in this Agreement. The Management Shareholders
         will notify the Buyer of the identity of the Shareholder
         Representative and any subsequent changes to the identity of the
         Shareholder Representative. The initial Shareholder Representative
         shall be Lasse Nordfjeld ("Initial Shareholder Representative").

         (vii) The Shareholders specifically acknowledge, consent and
         approve the appointment of the Initial Shareholder Representative,
         and any subsequently appointed Shareholder Representative, as the
         attorney-in-fact for the Shareholders and to take such actions and
         to make any decisions required or permitted in this Agreement on
         behalf of the Shareholders.

         (viii) The Shareholders also specifically acknowledge, understand
         and agree that any cash generated by the Company and its
         Subsidiaries will be used first to pay capital expenditures and to
         fund any increases determined by Buyer to be necessary in the
         Company's working capital, then to pay down Indebtedness, all as
         determined by Buyer in its sole discretion.

                                    -5-

1.3.2  FINAL PURCHASE PRICE CALCULATION.
       --------------------------------

         (a) On or prior to March 31, 2008, Buyer shall prepare and promptly
         thereafter deliver to the Shareholders a statement setting forth
         the Purchase Price required to be calculated pursuant to paragraph
         1.3.1 above less the payment made prior to the date thereof
         pursuant to paragraph 1.4 (the "Purchase Price Calculation"). The
         Purchase Price Calculation shall be prepared by the Company's
         in-house accountants and verified by the Company's independent
         certified public accountants. In connection with the preparation of
         such Purchase Price Calculation, Buyer and its authorized
         representatives shall have full access to the relevant books and
         records of the Company and each of its Subsidiaries and their
         respective authorized representatives and employees to the extent
         necessary to complete such Purchase Price Calculation.

         (b) If Shareholders owning at least seventy percent (70%) of the
         Shares object to the Purchase Price Calculation, the Shareholder
         Representative shall notify Buyer in writing of such objection
         within the thirty (30) day period following the delivery thereof,
         stating in such written objection the reasons therefore and setting
         forth the Shareholders' calculation of amounts set forth in the
         Purchase Price Calculation. Upon receipt by Buyer of such written
         objection, the parties shall attempt to resolve the disagreement
         concerning the Purchase Price Calculation through negotiation. If
         Buyer and the Shareholders cannot resolve such disagreement
         concerning the Purchase Price Calculation within thirty (30) days
         following the end of the foregoing 30-day period, the parties shall
         submit the matter for resolution to an internationally recognized
         firm of independent certified public accountants in England (the
         "Accountants"), not affiliated with either party, with the costs
         thereof to be shared equally by the parties. The Accountants shall
         deliver a statement setting forth its own calculation of the
         matters set forth in the Final Adjustment Statement to the parties
         within thirty (30) days of the submission of the matter to such
         Accountants.

         (c) The "Purchase Price Calculation" for purposes of paragraph
         1.3.2 shall be either: (1) if the Shareholders do not object, the
         Purchase Price Calculation initially submitted by the Buyer to the
         Shareholders; (2) if the Shareholders and Buyer agree, the Purchase
         Price Calculation as so agreed; or (3) if the Shareholders object
         and the parties fail to agree, the Purchase Price Calculation as
         prepared by the Accountants.

1.3.3 BUYOUT PURCHASE PRICE. Notwithstanding anything to the contrary, at
      ---------------------
any time between the Closing Date and December 31, 2006, the Buyer may pay a
buyout purchase price equal to the higher of (a) $2,000,000 ("Set Amount")
or (b) the Purchase Price as determined pursuant to paragraph 1.3.1 for the
period from January 1, 2005 to the date of the Buyout less the payment made
prior pursuant to paragraph 1.4.1 ("EBITDA Amount") (collectively, the Set
Amount and the EBITDA Amount shall be referred to as the "Buyout Purchase
Price"). In addition, if L. Nordfjeld's employment is terminated pursuant to
Section 9(a)(iv) of L. Nordfjeld's Employment Agreement, attached as Exhibit
                                                                     -------
5.2.6-1, the Shareholders shall have the right to demand that the Buyer pay
-------
the

                                    -6-

Buyout Purchase Price. The Shareholder Representative shall notify the Buyer
in writing within thirty (30) days of the termination date of L. Nordfjeld's
employment if the Shareholders desire to exercise such buyout option. The
Shareholder Representative and the Buyer hereby agree to each provide to the
other party their good faith determination of the EBITDA Amount
("Determinations") within seven (7) days of the date the Buyer notifies the
Shareholder Representative of its intent to exercise its rights under this
paragraph and pay the Buyout Purchase Price. If the parties do not agree on
the EBITDA Amount, the Shareholder Representative and the Buyer agree to
negotiate in good faith a mutually agreeable resolution. If the parties
cannot agree on a resolution within seven (7) days after receipt of the
Determinations, the parties shall submit the matter for resolution to an
internationally recognized arbitrator located in England ("Arbitrator") not
affiliated with either party, with resolution by the Arbitrator to be made
within fourteen (14) days after the matter is submitted to the Arbitrator.
The costs of the Arbitrator are to be paid by the party whose position is
not upheld by the Arbitrator. However, if neither party's position is upheld
by the Arbitrator, the costs of the Arbitrator shall be shared equally by
the parties. Such Buyout Purchase Price shall be payable in accordance with
the terms of paragraph 1.4.3. Any Buyout Purchase Price paid under this
paragraph shall be the final payment or amount due to the Shareholders, and
nothing in this paragraph shall be construed to require the Shareholders to
return or repay any of the Initial Stock Payment made under paragraph 1.4.1.

1.4 TERMS OF PAYMENT. The Purchase Price shall be paid as follows:
    ----------------

         1.4.1 INITIAL STOCK PAYMENT. An initial stock payment of US
               ---------------------
         $3,500,000 worth of Applied Digital, Inc. ("ADSX") Class A common
         stock, $0.01 par value, shall be delivered at Closing by the Buyer
         to the Shareholders ("Initial Stock Payment"). The Shareholders
         acknowledge, understand and agree that the Initial Stock Payment
         shall be applied towards the repayment of any Bonds not converted
         into shares of the Company's common stock ("1st Repayment") and
         towards the repayment of that certain loan with Mezzanin Kapital
         A/S dated August 15, 2000 (the "Mezzanin Loan"), including any
         expenses and fees associated with the repayment of the Mezzanin
         Loan, as negotiated by the Management Shareholders with Mezzanin
         Kapital A/S, whereby no further obligations under the Mezzanin Loan
         exist and the Mezzanin Loan is cancelled ("2nd Repayment") to the
         extent any such amounts are not paid with the proceeds of the Loan
         referred to in paragraph 7.6. To the extent any stock remains
         available after payment of such items, the Initial Stock Payment
         shall be distributed among the Shareholders, pro rata based on the
         number of Shares owned. The Shareholders further acknowledge,
         understand and agree that the 1st Repayment and 2nd Repayment shall
         be handled by the Company and that the distribution of the
         remaining Initial Stock Payment between the Shareholders shall be
         handled by the Management Shareholders. The Management Shareholders
         understand and agree that to the extent required pay the 1st
         Repayment and 2nd Repayment, they shall distribute the necessary
         amounts from the Initial Stock Payment to the Company so that the
         Company may make such repayments. The Shareholders further
         acknowledge, understand and agree that any disputes arising from
         the distribution of the Initial Stock Payment shall be handled by
         and between the Shareholders, and that Buyer shall have no
         liability in any dispute or claim related to such repayments,
         allocations and distributions.

                                    -7-

         The Shareholders acknowledge and agree that the ADSX shares to be
         delivered pursuant hereto (the "ADSX Shares") will be unregistered
         shares and shall be valued based on the 10-day "VWAP" (Volume
         Weighted Average Price) of ADSX Class A common stock for the ten
         (10) trading days on the NASDAQ Stock Market prior to Closing. The
         Shareholders further acknowledge and agree that the ADSX shares
         will be valued at the fixed conversion rate of 5.75 Danish Krones
         per US $1.00 for purposes of determining the Purchase Price under
         paragraph 1.3.1.

         1.4.2 ADDITIONAL COVENANTS REGARDING ADSX STOCK DELIVERED. ADSX,
               ---------------------------------------------------
         parent corporation of Buyer, agrees to take commercially reasonable
         best efforts to file a registration statement ("Registration
         Statement") with the United States Securities and Exchange
         Commission (the "SEC") under the Securities Act of 1933, as
         amended, to register the ADSX Shares delivered to the Shareholders
         at Closing within thirty (30) days after the Closing Date and to
         cause such registration to become effective as soon as practicable.
         If the ADSX Shares are not registered with the SEC within seven (7)
         months after the filing of the Registration Statement, unless the
         Registration Statement is still in the review process with the SEC,
         the Shareholders shall have the right to repurchase from the Buyer
         all, but not less than all, of the issued and outstanding Shares of
         the Company by returning 100% of the ADSX Shares paid as the
         Initial Stock Payment pursuant to paragraph 1.4.1 to the Buyer (the
         "Buy Back Option"). Notwithstanding the foregoing, before the
         Shareholders may exercise the Buy Back Option, the Buyer shall have
         the right to pay the Shareholders a cash payment of $3,500,000,
         whereby the Shareholders shall return 100% of the ADSX Shares paid
         as the Initial Stock Payment pursuant to paragraph 1.4.1 to the
         Buyer and the Buy Back Option will become void.

         1.4.3 PAYMENT OF BALANCE OF PURCHASE PRICE OR BUYOUT PURCHASE
               -------------------------------------------------------
         PRICE. The balance of the Purchase Price, if any, or the Buyout
         -----
         Purchase Price shall be payable within fifteen (15) days of the
         date the Purchase Price Calculation is finally determined under
         paragraph 1.3.2(c) or the date of Buyout under paragraph 1.3.3, as
         applicable, to the Shareholders, pro rata based on the number of
         Shares held. The balance of the Purchase Price or the Buyout
         Purchase Price shall be paid from the Escrow Amount, as described
         under paragraph 1.4.4., with the balance, if any, in cash or
         unregistered shares of Buyer's Common Stock, $.005 par value, or a
         combination thereof, as determined in the sole discretion of Buyer,
         but in no event will the amount of Buyer's Common Stock exceed
         fifty (50%) of said amount. The value of the Buyer's common stock
         shall be based on the VWAP for the 10 trading days prior to payment
         and the conversion rate of US dollars into Danish Krone then
         current on the date of the Purchase Price Calculation. The
         Shareholders acknowledge, understand and agree that the
         distribution of the balance of the Purchase Price or the Buyout
         Purchase Price shall be handled by the Management Shareholders, and
         any disputes arising from the distribution of the balance of the
         Purchase Price or the Buyout Purchase Price shall be handled by and
         between the Shareholders, and Buyer shall have no liability in any
         dispute or claim related to such allocations and distributions. The
         Shareholders acknowledge and agree that under no circumstances will
         the Buyer's Common Stock applied towards the payment of the balance
         of the Purchase Price or the Buyout Purchase Price exceed nineteen
         and ninety-nine one hundredths (19.99%) percent of the outstanding
         Common Stock of the Buyer.

                                    -8-

         1.4.4 ESCROW OF BALANCE OF PURCHASE PRICE. The Buyer agrees that
               -----------------------------------
         the balance of the Purchase Price, as determined pursuant to
         paragraph 1.3 but for the period from the Closing Date to December
         31st of the applicable year (the "Escrow Amount"), shall be placed
         in escrow to secure the Buyer's obligation to pay the balance of
         the Purchase Price pursuant to paragraph 1.4.3. The calculation of
         the Escrow Amount shall be made each year on or prior to March 31
         of the following year (the "Escrow Calculation"), with the first
         Escrow Calculation made on or prior to March 31, 2006 for the
         period from January 1, 2005 to December 31, 2005 ("First Escrow
         Year"). The Escrow Amount shall be adjusted up or down each year
         based on the current Escrow Calculation. The Escrow Amount may
         consist of cash or unregistered shares of Buyer's Common Stock,
         $.005 par value, or a combination thereof, as determined in the
         sole discretion of Buyer, but in no event will the amount of
         Buyer's Common Stock exceed fifty (50%) of said amount.

         1.4.5 NON-PAYMENT OF BALANCE OF PURCHASE PRICE. If Buyer does not
               ----------------------------------------
         pay the balance of the Purchase Price pursuant to paragraph 1.4.3
         by June 30, 2008 for any reason other than due to a dispute in the
         Purchase Price Calculation and which dispute is in the process of
         being resolved pursuant to paragraph 1.3.2., the Shareholders shall
         have the right to either (a) repurchase from the Buyer all, but not
         less than all, of the issued and outstanding Shares of the Company
         for 100% of the Purchase Price previously received by the
         Shareholders (the "Buy Back Option") or (b) receive the Escrow
         Amount. If the Board of Directors of the Buyer has knowledge that
         the Buyer will not be able to pay the balance of the Purchase Price
         pursuant to paragraph 1.4.3, the Buyer shall notify the Shareholder
         Representative as soon as practical and the Shareholders shall have
         the right to either (a) exercise the Buy Back Option or (b) receive
         the Escrow Amount.

                                 ARTICLE 2.

                  REPRESENTATIONS, WARRANTIES AND COVENANTS
                  -----------------------------------------
                       OF THE MANAGEMENT SHAREHOLDERS
                       ------------------------------

In connection with and as an inducement to Buyer to enter into and be bound
by the terms of this Agreement, the Management Shareholders each hereby,
jointly and severally, represent, warrant and covenant to Buyer (except for
paragraph 2.1 whereby all Shareholders listed on Exhibit 1.1, as amended,
                                                 -----------
including those Warrant Holders and Bond Holders that choose to exercise
their rights to acquire shares of the Company after the effective date of
this Agreement, hereby, jointly and severally, represent, warrant and
covenant to Buyer) as follows. For purposes of this Agreement, all
representations and warranties made "to the best of the Management
Shareholders' knowledge" shall be made based on the knowledge which a
reasonably prudent person would have that occupied a similar position and
had a similar ownership interest in the Company as the Shareholders,
assuming such investigation as a reasonably prudent person would undertake
in order to make such representations and warranties.

2.1 OWNERSHIP OF SHARES. The Shareholders, as listed on Exhibit 1.1, are the
    -------------------                                 -----------
lawful owners of all of the issued and outstanding stock of the Company free
and clear of all liens, encumbrances, restrictions and claims of every kind
and that the Subsidiary shares are free from any charge and encumbrance and
are owned by the Company. The delivery to Buyer of the Shares pursuant to
the provisions of this Agreement will transfer to Buyer ownership of all of
the

                                    -9-

issued and outstanding shares of stock of the Company, together with valid
legal title thereto, free and clear of all liens, encumbrances, restrictions
and claims of every kind.

2.2 ORGANIZATION, STANDING AND POWER. The Company is a corporation duly
    --------------------------------
organized, validly existing and in good standing under the laws of the
country of Denmark and has all requisite corporate power and authority to
own, lease and operate its properties and assets and to carry on its
business as is now being conducted. The Company owns capital stock of each
of the subsidiaries listed on Exhibit 2.2 (hereinafter referred to
                              -----------
separately as a "Subsidiary" or collectively as the "Subsidiaries"), in the
amounts and percentages described therein. To the Best Knowledge of the
Managing Shareholders, each of the Subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of their
respective formation. To the Best Knowledge of the Managing Shareholders,
each of the Company and its Subsidiaries is duly qualified or licensed as a
foreign corporation and is in good standing to do business in each
jurisdiction in which property is owned, leased or purchased by it, or the
nature of the business conducted by it, make such qualification or licensing
and good standing necessary, each such jurisdiction being listed on attached
Exhibit 2.2. The Management Shareholders have delivered to Buyer complete
-----------
and correct certified copies of the Articles of Incorporation and the Bylaws
of the Company and each Subsidiary as currently in effect. The Company has
no ownership interest in any other entity. Neither the Company nor the
Subsidiaries have issued any dividend-yielding debt instruments or otherwise
given any third party the right to a share of the profit from the operations
of the Company or any Subsidiary. The Company has no subsidiaries other than
the subsidiaries shown in Exhibit 2.2 (the "Group Overview"), and no
                          -----------
Subsidiary has set up branch outside of its home country.

2.3 STRUCTURE. The Company's share capital is DKK 5,548,500, the nominal
    ---------
value of DKK 50 per share, and owned by all the Shareholders. The share
capital of each Subsidiary and the holders of all outstanding shares are set
forth on attached Exhibit 2.3. Other than the Warrants and Bonds described
                  -----------
in this Agreement, the Company and each Subsidiary has no outstanding
subscriptions, warrants, options, calls or commitments relating to its
stock; no obligations or securities convertible into or exchangeable for its
stock; no plans or other agreements of any character providing for the
purchase, issuance or sale of any shares of stock other than as contemplated
by this Agreement; and no legend or other reference to any purported
encumbrance appears upon any certificate representing stock of the Company
or any Subsidiary. No third party has any purchase options or pre-emptive
rights with respect to the Shares or the Subsidiary Shares. The Register of
Shareholders of the Company, and the Register of the Shareholders of each
Subsidiary are correct, updated and in accordance with the Group Overview.
All outstanding shares of the Company's stock are validly issued, fully paid
and nonassessable and are owned by the Shareholders. All outstanding shares
of each Subsidiary are validly issued, fully paid and nonassessable and are
owned by the person(s) or entity listed on attached Exhibit 2.3. To the Best
                                                    -----------
Knowledge of the Managing Shareholders, none of the outstanding stock or
other securities of the Company or any Subsidiary was issued in violation of
applicable securities laws or any applicable administrative order, law,
ordinance, regulation, statute or treaty; and neither the Company nor any
Subsidiary owns, or has any contract to acquire, any stock or other
securities of any person or entity or any direct or indirect equity or
ownership interest in any other business.

                                    -10-

2.4 AUTHORITY. The execution and delivery of this Agreement by the
    ---------
Shareholders and the consummation by the Shareholders and the Company of the
transactions contemplated by this Agreement have been duly and validly
authorized by all necessary corporate action on the part of the Company.
This Agreement constitutes the legal, valid and binding obligation of the
Shareholders, enforceable against each of the Shareholders in accordance
with its terms and conditions.

2.5 NO VIOLATION. Other than as disclosed herein, neither the execution and
    ------------
delivery by the Shareholders of this Agreement, consummation of the
transactions contemplated hereby nor compliance by the Shareholders and the
Company with any of the provisions hereof will:

         2.5.1 Violate or conflict with any provision of the Articles of
         Incorporation or Bylaws of the Company or any Subsidiary;

         2.5.2 Violate or constitute a default under or give rise to any
         right of termination, cancellation or acceleration under the terms,
         conditions or provisions of any agreement or instrument to which
         the Shareholders or the Company or any Subsidiary is a party or by
         which any of them or any of their properties or assets is bound
         except as has been duly and validly waived, consented to or
         approved of by the other parties to such agreement or instrument;

         2.5.3 Result in the creation or imposition of any security
         interest, lien or other encumbrance upon any of the assets of the
         Company or any Subsidiary or the Shares under any agreement or
         commitment to which the Shareholders or the Company or any
         Subsidiary is a party or by which the Shareholders or the Company
         or any Subsidiary is bound or to which the Shareholders or any
         assets of the Company or any Subsidiary are subject; or

         2.5.4 Violate any statute or law or any judgment, order, decree,
         regulation or rule of any court or governmental authority
         applicable to the Shares or the Shareholders, the Company or any
         Subsidiary or any of their assets.

         2.5.5 Except as set forth on Exhibit 2.5, all consents and
                                      -----------
         approvals of third parties and governmental authorities required in
         connection with the execution and delivery by the Shareholders of
         this Agreement and the consummation by the Shareholders of the
         transactions contemplated by this Agreement have been obtained.

2.6 FINANCIAL DOCUMENTS. As of the date of this Agreement, the Management
    -------------------
Shareholders have furnished to Buyer the financial statements and other
financial documents of the Company indicated on attached Exhibit 2.6 (the
                                                         -----------
"Initial Financial Documents"). Such financial statements have been prepared
in English and U.S. Dollars and include acceptable auditor's consents so
that such Initial Financial Documents can be filed by Buyer with (and
accepted by) the SEC on the date of Closing, if necessary. In addition, as a
condition precedent to Closing, the Management Shareholders shall furnish to
Buyer the additional financial statements of the Company required pursuant
to paragraph 5.2.15. ("Additional Financial Documents")(the Initial
Financial Documents and the Additional Financial Documents shall be
collectively referred to as the "Financial Documents"). To the Best
Knowledge of the Managing Shareholders, the Financial

                                    -11-

Documents are true and correct and fairly and accurately represent the
financial matters stated therein. To the Best Knowledge of the Managing
Shareholders, all financial statements included as part of the Additional
Financial Documents have been prepared in accordance with U.S. GAAP applied
on a consistent basis throughout the period specified therein, and all
financial statements included as part of the Financial Documents present the
financial condition of the Company and the Subsidiaries as of the date
specified therein and the results of their operations and cash flows for the
periods specified therein. To the Best Knowledge of the Managing
Shareholders, the Financial Documents do not include any material assets or
omit to state any material liability, absolute or contingent, or other
facts, the inclusion or omission of which would render the Financial
Documents, in light of the circumstances in which they are made, misleading.

The Cash Forecast prepared by L. Nordfjeld and discussed in detail with
Buyer's representatives, attached as Exhibit 2.6(A), has been prepared in
                                     --------------
good faith, is a fair representation of the information provided and
reflects the Management Shareholders' current views based on historical
facts and future events.

2.7 ASSETS. To the Best Knowledge of the Managing Shareholders, the Company
    ------
and each of its Subsidiaries has, and on the Closing Date will have, good
and marketable title to all of its assets, free and clear of all mortgages,
pledges, liens, conditional sales agreements or other encumbrances of any
kind or nature whatsoever, and the Company and each of its Subsidiaries own
all of the assets used in the operation of the Company's and the
Subsidiaries' businesses, except as disclosed on attached Exhibit 2.7. To
                                                          -----------
the Best Knowledge of the Managing Shareholders, all of the Company's and
its Subsidiaries' assets are, and on the Closing Date will be, in reasonably
good operating condition, normal wear and tear excepted, and each is fit and
suitable for the purpose and use for which they were intended.

2.8 BOOKS, RECORDS AND ACCOUNTS. To the Best Knowledge of the Managing
    ---------------------------
Shareholders, all accounts, books, ledgers and official and other records of
whatsoever kind material to the business of the Company and its Subsidiaries
have been fully, properly and accurately kept and completed in all material
respects, there are no material inaccuracies or material discrepancies of
any kind contained or reflected therein, and collectively they fairly
present the financial position of the Company and its Subsidiaries. To the
Best Knowledge of the Managing Shareholders, the minute books of the Company
and its Subsidiaries, as made available to Buyer and its representatives,
contain complete and accurate records of all meetings and corporate actions
or written consents by the stockholders and board of directors of the
Company and its Subsidiaries. The Company and the Subsidiaries have taken
all steps required by company law, including that records have been kept,
general meetings have been held and financial statements and other
notifications and information have been filed with the Danish Commerce and
Companies Agency ("Erhvervs- og Selskabsstyrelsen") and corresponding
foreign authorities, and that no resolutions subject to the notification
requirement have been passed other than those registered with the Danish
Commerce and Companies Agency or a corresponding foreign authority. No
Subsidiary has held or convened any general meeting or Directors' meeting
since April 27, 2004 [NEW DATE?] except as disclosed on attached Exhibit
                                                                 -------
2.8. To the Best Knowledge of the Managing Shareholders, the Company and its
---
Subsidiaries keep their records and books of account in conformity with
accounting principles consistently applied.

                                    -12-

2.9 JUDGMENTS. To the Best Knowledge of the Managing Shareholders, there are
    ---------
no unsatisfied judgments of record against the Company or any of its
Subsidiaries.

2.10 UNDISCLOSED LIABILITIES. Except with respect to liabilities disclosed
     -----------------------
on attached Exhibit 2.10 and other than liabilities incurred by the Company
            ------------
or any Subsidiary in the ordinary course of business since December 31,
2004, to the Best Knowledge of the Managing Shareholders, there are no
liabilities of any kind or character outstanding for which the Company or
any Subsidiary is or may be liable (whether absolute, accrued, contingent or
otherwise, and including, without limitation, liabilities as a guarantor or
otherwise with respect to the obligations of others) which are not reflected
in the December 31, 2004, financial statements of the Company or its
Subsidiaries.

2.11 NO ADVERSE CHANGE. Except as indicated on attached Exhibit 2.11, to the
     -----------------                                  ------------
Best Knowledge of the Managing Shareholders, since December 31, 2004, there
has not been any material adverse change in the condition, assets,
liabilities, revenues, income or business of the Company or any Subsidiary
or in its relationships with suppliers, dealers, customers or employees,
including, but not limited to:

         2.11.1 Any increase in the wages, salaries, compensation, pension
         or other benefits payable or to become payable by the Company or
         any of its Subsidiaries to any of its directors, employees, agents
         or contractors;

         2.11.2 The declaration, authorization, payment or distribution of
         any stock, cash or other dividend or distribution to any
         Shareholder;

         2.11.3 Any incurrence by the Company or any of its Subsidiaries of
         any obligations or liabilities, whether absolute, accrued,
         contingent or otherwise (including, without limitation, liabilities
         as guarantor or otherwise with respect to obligations of others),
         other than obligations and liabilities incurred in the ordinary
         course of business;

         2.11.4 Any discharge or satisfaction of any lien or encumbrance or
         payment of any obligation or liability by either the Company or any
         of its Subsidiaries other than current liabilities shown or
         reflected on the December 31, 2004 consolidated financial
         statements of the Company or liabilities incurred since December
         31, 2004 in the ordinary course of business or the Repayments
         described under paragraph 1.4.1;

         2.11.5 Any issuance or agreement to issue any stock, bonds,
         options, warrants or other securities of the Company or any of its
         Subsidiaries;

         2.11.6 The mortgage, pledge or subjection to lien, security
         interest or any other encumbrance of any of the Company's or any
         Subsidiary's assets, real or personal, tangible or intangible,
         other than in the ordinary course of business;

         2.11.7 The sale or transfer of any of the Company's or any
         Subsidiary's tangible assets, or the cancellation or release of any
         debts or claims, except, in each case, in the ordinary course of
         business;

                                    -13-

         2.11.8 The sale, assignment, transfer or encumbrance by the Company
         or any Subsidiary of any trademarks, trade names or other
         intangible assets;

         2.11.9 Any extraordinary losses incurred by the Company or any
         Subsidiary;

         2.11.10 The failure by the Company or any Subsidiary to take or
         make any charges, write-offs, increases in bad debt reserves or
         other adjustments in the Company's or any Subsidiary's accounts
         receivable by reason of failure or inability to collect or
         diminished prospects for collection of the Company's or any
         Subsidiary's accounts receivable;

         2.11.11 Any change in any method of accounting or practice
         previously adopted or reflected in any of the Financial Documents;

         2.11.12 Except as otherwise disclosed in this Agreement, the
         occurrence of any event or condition of any character materially
         and adversely affecting the Company's or any Subsidiary's business
         or tax liabilities or any change in the condition of the Company's
         or any Subsidiary's assets, liabilities or business, except changes
         in the ordinary course of business;

         2.11.13 Any entry by the Company or any Subsidiary into or
         termination of any other transaction other than in the ordinary
         course of business;

         2.11.14 Any change in the indebtedness of the Company or any of its
         Subsidiaries not in the ordinary course of business other than as
         shown on the December 31, 2004 consolidated financial statements of
         the Company or the Repayments described under paragraph 1.4.1;

         2.11.15 Any failure by the Company or any Subsidiary to pay any
         creditors in the course of said companies business in accordance
         with past practices; or

         2.11.16 Any modification of the terms or conditions of any lease
         applicable to the Company or any of its Subsidiaries.

2.12 LEASES. The schedule of leases attached hereto as Exhibit 2.12 sets
     ------                                            ------------
forth a complete and correct description of all leases of real and personal
property to which the Company or any Subsidiary is a party. The Management
Shareholders have delivered to Buyer copies of all lease agreements
described in said Exhibit 2.12. To the best of the Management Shareholders'
                  ------------
knowledge, each such lease agreement is in full force and effect and neither
the Company, any Subsidiary nor any other party to any such lease is in
default thereof and neither the Company, any Subsidiary nor any other party
to any such lease have committed any act which, if not remedied, would
result under any such lease in a default thereunder after notice, lapse of
time or both. None of the leases with any Subsidiary as the lessee has been
terminated with or without notice or breached, and that no notice has been
given of rent increases or other changes. To the best of the Management
Shareholders' knowledge, the execution and delivery of this Agreement and
consummation of the transactions contemplated hereby will not cause or give
rise to any event of default under any of the lease agreements.

                                    -14-

2.13 INSURANCE. A complete list and summary description of all insurance
     ---------
policies maintained by the Company and each of its Subsidiaries with respect
to their properties and businesses against loss or damage of any kind is set
forth on Exhibit 2.13. The policies listed on Exhibit 2.13 are in full force
         ------------                         ------------
and effect; such policies are with financially sound and reputable insurers;
all premiums due thereon have been paid; the Shareholders, the Company and
each of its Subsidiaries have complied in all material respects with all
provisions of such policies; the Company, its Subsidiaries and the
Management Shareholders have not received any notice of cancellation,
termination or non-renewal of such policies; and the dollar amount of
coverage has not been reduced for any such policy except as set forth in
Exhibit 2.13. If requested by Buyer, the Management Shareholders agree to
------------
take all action reasonably necessary to enable Buyer to continue all such
policies of insurance with respect to the Company's and its Subsidiaries'
operations.

2.14 LITIGATION. Except as described on Exhibit 2.14 hereto, to the best of
     ----------                         ------------
the Management Shareholders' knowledge, the Shareholders, the Company and
each of its Subsidiaries, and their respective assets, properties and
businesses, are not subject to any pending or threatened litigation, action,
suit or proceeding by or before any court, arbitrator or federal, state or
other governmental commission, board or other agency, or by any private
party.

2.15 CONTRACTS. Except as disclosed on Exhibit 2.15, and to the best of the
     ---------                         ------------
Management Shareholders' knowledge:

                  (a) The Company and each of its Subsidiaries have
                  fulfilled all of their obligations required under the
                  Materials Contracts (as defined below) to have been
                  performed by Company and/or its Subsidiaries on or prior
                  to the Closing Date;

                  (b) There has not occurred any default under any of the
                  Material Contracts on the part of Company, any of its
                  Subsidiaries or any other party thereto, nor has any event
                  occurred which, with the giving of notice or the lapse of
                  time, or both, would constitute a default under any of the
                  Material Contracts on the part of Company, any of its
                  Subsidiaries or any other party thereto; and

                  (c) No consent of any party to any of the Material
                  Contracts is required for (i) the execution, delivery or
                  performance of this Agreement or (ii) the consummation of
                  the transactions contemplated hereby.

                  (d) Exhibit 2.15 contains a complete and accurate list,
                      ------------
                  and Management Shareholders have delivered to Buyer true
                  and complete copies, of (collectively, the "Material
                  Contracts"):

                           (i) each contract that involves performance of
                           services or delivery of goods or materials by the
                           Company or any of its Subsidiaries in excess of
                           $25,000;

                           (ii) each contract that was not entered into in
                           the ordinary course of business;

                                    -15-

                           (iii) each lease, rental or occupancy agreement,
                           license, installment and conditional sale
                           agreement, and other contract affecting the
                           ownership of, leasing of, title to, use of, or
                           any leasehold or other interest in, any real or
                           personal property (except personal property
                           leases and installment and conditional sales
                           agreements having a value per item or aggregate
                           payments of less than $25,000 and with terms of
                           less than one year);

                           (iv) each licensing agreement or other contract
                           with respect to patents, trademarks, copyrights
                           or other intellectual property, including
                           agreements with current or former employees,
                           consultants or contractors regarding the
                           appropriation or the non-disclosure of any of the
                           Intellectual Property;

                           (v) each joint venture, partnership and other
                           contract (however named) involving a sharing of
                           profits, losses, costs or liabilities by the
                           Company or any of its Subsidiaries with any other
                           person or entity;

                           (vi) each contract containing covenants that in
                           any material way purport to restrict the business
                           activity of the Company or any of its
                           Subsidiaries or limit the freedom of the Company
                           or any of its Subsidiaries to engage in any line
                           of business or to compete with any person or
                           entity;

                           (vii) each contract providing for payments to or
                           by any person or entity based on sales, purchases
                           or profits other than direct payments for goods;

                           (viii) each contract entered into other than in
                           the ordinary course of business that contains or
                           provides for an express undertaking by the
                           Company or any of its Subsidiaries to be
                           responsible for consequential damages;

                           (ix) each contract for capital expenditures in
                           excess of $25,000 individually, or in the
                           aggregate;

                           (x) each written warranty, guaranty or other
                           similar undertaking with respect to contractual
                           performance extended by the Company or any of its
                           Subsidiaries other than in the ordinary course of
                           business;

                           (xi) each amendment, supplement and modification
                           (whether oral or written) in respect of any of
                           the foregoing; and

                           (xii) each debt agreement (including any
                           amendment thereto) applicable to the Company or
                           any Subsidiary.

                  (e) Except as set forth in Exhibit 2.15, no Shareholder
                                             ------------
                  (and no person related to a Shareholder) has or may
                  acquire any rights under, and no Shareholder has or may
                  become subject to any obligation or liability under, any
                  Material Contract that relates to the business of, or any
                  of the assets owned or used by, the Company or any of its
                  Subsidiaries.

                                    -16-

                  (f) Except as set forth on Exhibit 2.15, each Material
                                             ------------
                  Contract identified or required to be identified herein is
                  in full force and effect and is valid and enforceable in
                  accordance with its terms.

                  (g) Except as set forth on Exhibit 2.15:
                                             ------------

                           (i) The Company and each of its Subsidiaries is,
                           and at all times has been, in full compliance in
                           all material respects with all applicable terms
                           and requirements of each Material Contract under
                           which the Company and each of its Subsidiaries
                           have or had any obligation or liability or by
                           which the Company and each of its Subsidiaries or
                           any of the assets owned or used by the Company
                           and each of its Subsidiaries is or was bound;

                           (ii) Each other person or entity that has any
                           obligation or liability under any Material
                           Contract under which the Company or any of its
                           Subsidiaries have any rights is in material
                           compliance with all applicable terms and
                           requirements of each such Material Contract;

                           (iii) As to acts and omissions of the Company or
                           any of its Subsidiaries or of other persons or
                           entities, no event has occurred or circumstance
                           exists that (with or without notice or lapse of
                           time) may contravene, conflict with, or result in
                           a violation or breach of, or give the Company or
                           any of its Subsidiaries or other person the right
                           to declare a default or exercise any remedy
                           under, or to accelerate the maturity or
                           performance of, or to cancel, terminate or
                           modify, any Material Contract; and

                           (iv) The Company and its Subsidiaries have not
                           given to or received from any other person, at
                           any time in the two (2) previous calendar years,
                           any notice or other communication (whether oral
                           or written) regarding any actual or alleged
                           violation or breach of, or default under, any
                           Material Contract.

                  (h) There are no renegotiations of or attempts to
                  renegotiate any material amounts paid or payable to the
                  Company or any of its Subsidiaries under current or
                  completed Material Contracts with any person or entities
                  and no such person or entity has made written demand for
                  such renegotiation.

                  (i) The Material Contracts relating to the sale, design,
                  manufacture or provision of products or services by the
                  Company and its Subsidiaries have been entered into in the
                  ordinary course of business and have been entered into
                  without the commission of any act alone or in concert with
                  any other person or entity, or any consideration having
                  been paid or promised, that is or would be in violation of
                  any law.

                  (j) Except as set forth on Exhibit 2.15, the Company and
                                             ------------
                  its Subsidiaries have not been notified (orally or in
                  writing) that any customer desires to return any product
                  ordered or has failed to pay (or indicated an intent not
                  to pay) for any products or services ordered.

                                    -17-

2.16 TAXES.
     -----

         2.16.1 DEFINITION. "Tax" shall mean any tax or liability imposed or
                ----------
         collected by any governmental entity, including specifically, but
         without limiting the generality of the foregoing, federal, state,
         county, local and foreign income, profits, franchise, gross
         receipts, payroll, sales, use, employment, excise, value-added,
         withholding, real estate and other taxes, duties or assessments,
         together with any related interest, penalties and similar additions
         and any secondary or indirect tax liability.

         2.16.2 RETURNS. The Company and each of its Subsidiaries have duly
                -------
         and accurately prepared and filed any and all Tax returns and
         reports required by federal, state, local and foreign taxing
         authorities and all Taxes reflected thereon have been paid. The
         Company and each of its Subsidiaries have paid any and all Taxes,
         license fees and other charges levied, assessed or imposed upon the
         business or any of the property of the Company and each of its
         Subsidiaries, except those which are not yet due and payable. The
         Company and each of its Subsidiaries have maintained adequate
         accruals and reserves for any and all projected or deferred Taxes
         and such amounts have been appropriately accrued for in the
         Financial Documents. The intercompany pricing within the Company
         and its Subsidiaries cannot be disputed by the Danish or any
         foreign tax authorities under the rules on transfer pricing. To the
         best of the Management Shareholders' knowledge, there are no other
         Taxes of any kind or character for which the Company or any of its
         Subsidiaries is or may be liable which are now past due or
         delinquent or which are unpaid and unaccrued for on the Financial
         Documents (for the periods specified therein).

         2.16.3 EXAMINATIONS. To the best of the Management Shareholders'
                ------------
         knowledge, there is no current, pending or threatened audit,
         examination, investigation, demand or assessment with respect to
         the Company or any of its Subsidiaries or any Tax for which the
         Company or any of its Subsidiaries is or may be liable or has filed
         a return. To the best of the Management Shareholders' knowledge, no
         assets of the Company or any of its Subsidiaries are subject to any
         encumbrance arising from any Tax, other than any liens provided
         under applicable law prior to the time that the related Tax is due
         and payable. To the best of the Management Shareholders' knowledge,
         the Company and its Subsidiaries have not entered any agreement,
         settlement, extension of statute of limitations or compromise of
         any Tax matter. To the best of the Management Shareholders'
         knowledge, the Company and each of its Subsidiaries have not
         granted any person a power of attorney with respect to any Tax
         matter.

         2.16.4 EMPLOYEES. To the best of the Management Shareholders'
                ---------
         knowledge, the Company and each of its Subsidiaries have withheld
         and paid all applicable income, payroll, employment, unemployment,
         social security and other taxes required to have been withheld and
         paid in connection with amounts paid or owing to any employee,
         agent, creditor, independent contractor, stockholder or third
         party, and has properly reported such amounts.

2.17 GUARANTEES. Except as described in Exhibit 2.17, the Company has no
     ----------                         ------------
liability to any person as a guarantor, surety, co-signer, endorser,
co-maker, indemnitor or obligor, and no

                                    -18-

Shareholder or any other person or entity has guaranteed or provided
collateral for any obligation of the Company or any Subsidiary.

2.18  EMPLOYEES AND EMPLOYEE BENEFIT PLANS.
      ------------------------------------

         2.18.1 EMPLOYEES. Attached hereto as Exhibit 2.18.1 is a list of
                ---------                     --------------
         all the Company's and its Subsidiaries' employees (the
         "Employees"), each Employees' current rate of pay, original date of
         hire and severance pay, whether absolute or contingent. To the best
         of the Management Shareholders' knowledge, Exhibit 2.18.1 also
                                                    --------------
         indicates which Employees are represented by any labor organization
         and are a party to any collective bargaining agreement. To the best
         of the Management Shareholders' knowledge, there are no existing or
         threatened labor disputes relating to the Company or any of its
         Subsidiaries or the business of the Company and its Subsidiaries.

         2.18.2 EMPLOYEE AGREEMENTS. Except as disclosed on Exhibit 2.18.2,
                -------------------                         --------------
         to the best of the Management Shareholders' knowledge, no Employee
         or director of the Company or any of its Subsidiaries is a party
         to, or is otherwise bound by, any agreement or arrangement,
         including any confidentiality, noncompetition or proprietary rights
         agreement, between such Employee or director and any other person
         that in any way materially and adversely affects or will affect (i)
         the performance of his duties as an Employee or director of the
         Company or any of its Subsidiaries, or (ii) the ability of the
         Company or any of its Subsidiaries to conduct the business,
         including any proprietary rights agreement with the Shareholders by
         any such Employee or director.

         2.18.3 EMPLOYEE BENEFIT PLANS. To the best of the Management
                ----------------------
         Shareholders' knowledge, Exhibit 2.18.3 contains a complete and
                                  --------------
         accurate list of all welfare benefit plans and employee benefit
         plans including pension, profit sharing, retirement, bonus or
         deferred compensation plans or similar obligations applicable to
         the Company's and its Subsidiaries' Employees ("Plans"), and
         indicates whether the Company or any of its Subsidiaries makes or
         is required to make any contributions to the Plans. The Management
         Shareholders have delivered to Buyer true and complete copies of
         all the Plans listed on Exhibit 2.18.3. To the best of the
                                 --------------
         Management Shareholders' knowledge, the Company and its
         Subsidiaries and the Plans have complied at all times since the
         Plans' inceptions, both as to form and operation, with all
         applicable laws, regulations, orders, judgments, decrees, rules and
         guidance regarding such Plans. No present Employees or former
         employees are entitled to a pension or the like from the Company or
         its Subsidiaries other than as stated in Exhibit 2.18.3. No
                                                  --------------
         resigned employee or employee under notice is or claims to be
         entitled to any compensation or damages from the Company and its
         Subsidiaries as a result of termination of employment.

         2.18.4 COMPLIANCE. To the best of the Management Shareholders'
                ----------
         knowledge, the Company and its Subsidiaries are and have been in
         compliance in all material respects with all laws, rules and
         regulations involving wages or hours of employees; and all accrued
         obligations of the Company and its Subsidiaries relating to the
         Employees and all former employees of the Company and its
         Subsidiaries, whether arising by operation of law, by contract or
         by past service, including, but not limited to all vacation
         benefits, unemployment compensation benefits, profit sharing or
         retirement benefits, health and

                                    -19-

         other welfare benefits, or social security benefits, have been
         satisfied, or will be satisfied by Company and its Subsidiaries
         prior to the Closing Date or are reflected as accruals on the
         Company's financial statements as of December 31, 2004.

2.19 EMPLOYMENT, AGENCY AND INDEPENDENT CONTRACTOR AGREEMENTS. To the best
     --------------------------------------------------------
of the Management Shareholders' knowledge, Exhibit 2.19 contains a complete
                                           ------------
and accurate list of all written employment, collective bargaining and other
labor contracts (or oral employment contracts other than those terminable at
will) of the Company and its Subsidiaries as well as all confidentiality or
non-disclosure agreements, non-solicitation commitments, covenants not to
compete, guaranties of compensation or other agreements which the Company or
any of its Subsidiaries has entered into or otherwise become bound or
subject to (including oral agreements) with respect to its employees, agents
and/or independent contractors. The Management Shareholders have delivered
to Buyer true and complete copies of all the agreements listed on Exhibit
                                                                  -------
2.19.
----

2.20 REAL ESTATE. Except as disclosed on attached Exhibit 2.20, the Company
     -----------                                  ------------
and its Subsidiaries own no other real estate and have or own no other
interest in any real estate.

2.21 COMPLIANCE WITH LAWS. To the best of the Management Shareholders'
     --------------------
knowledge, the Company and its Subsidiaries have complied and comply in all
material respects with all statutes, regulations and other legislation
relating to its operations - including legislation on labor market, equal
rights, environment, working environment, planning, building, fire,
marketing, personal data, competition, companies, taxation and book-keeping
and EU legislation in force - and all terms and conditions laid down by the
authorities pursuant to such legislation. No applicable statutes,
regulations and other legislation, and no terms and conditions laid down by
the authorities prescribe any duty for the Company and its Subsidiaries to
change existing conditions which will cause any material expenses or
inconvenience. There are no pending cases in which authorities have disputed
the Company and its Subsidiaries' compliance in any material respect with
statutes, regulations or other legislation, including EU legislation. The
Company and its Subsidiaries have duly filed all reports with public
authorities, including the customs and tax authorities, required by the
current rules, and that such reports have been free from errors and
omissions other than negligible errors and omissions. The Company and its
Subsidiaries have not failed to make any notification under competition
legislation or EU legislation, and no such notification have been filed.
Furthermore, the Company has not been notified of any third party claims
that the Company and its Subsidiaries have violated any rules of law,
regulations or other legislation, including EU legislation.

2.22 INVESTMENTS. Except as disclosed on attached Exhibit 2.22 or with
     -----------                                  ------------
respect to Company Plan investments, to the best of the Management
Shareholders' knowledge, the Company does not own any other stock or other
equity, ownership or proprietary interest in any corporation, partnership,
association, trust, joint venture or other entity; and the Company and its
Subsidiaries do not have an agreement or right to acquire, directly or
indirectly, any equity interest or investment in any third party and are not
subject to any obligation or requirement to provide funds to or make an
investment in any third party.

2.23 INTELLECTUAL PROPERTY. The term "Intellectual Property" includes all
     ---------------------
intellectual property and technology owned, utilized or licensed by the
Company or any of its Subsidiaries, including,

                                    -20-

but not limited to, computer software and programs, software in progress,
computer operating systems and applications, know-how, patents, patent
applications, trade names, registered and unregistered trademarks and
service marks and any applications therefor, copyrights, whether registered
or unregistered, copyright registrations and applications for any of the
foregoing, trade secrets or other confidential proprietary information. To
the best of the Management Shareholders' knowledge, Exhibit 2.23 contains an
                                                    ------------
accurate and complete list of (i) all Intellectual Property, and (ii) all
licenses or similar agreements or arrangements to which the Company or any
of its Subsidiaries is a party as licensee of the Intellectual Property,
including without limitation any licenses, sublicenses and other agreements
pursuant to which Company or any of its Subsidiaries is authorized to use
any third party software ("Third Party Intellectual Property"). The
Management Shareholders shall cause the Company to take all actions
reasonably necessary to ensure that Buyer is granted the rights to use any
Third Party Intellectual Property on the same terms and conditions available
to Company or any of its Subsidiaries on or before the Closing Date. To the
best of the Management Shareholders' knowledge, except as specifically
disclosed on Exhibit 2.23:
             ------------

                  (a) Company and the Subsidiaries own or are licensed or
                  otherwise possess legally enforceable rights to use the
                  Intellectual Property free and clear of any Encumbrances
                  (excluding license obligations and lease obligations). All
                  charges and fees concerning applications for or registered
                  Intellectual Property Rights of the Company and its
                  Subsidiaries, cf. Exhibit 2.23, have been duly paid.
                                    ------------

                  (b) No claim or action with respect to the Intellectual
                  Property or Third-Party Intellectual Property (to the
                  extent arising out of any use, reproduction or
                  distribution of such Third-Party Intellectual Property by
                  or through Company or any of its Subsidiaries) has been
                  asserted or is pending or threatened by any person or
                  entity, nor are there any valid grounds for any claims (i)
                  to the effect that the sale, licensing or use of any
                  product as now used, sold or licensed or proposed for use,
                  sale or license by Company or any of its Subsidiaries
                  infringes on any right of any third party; (ii) regarding
                  infringement, or misappropriation or misuse with regards
                  to any Intellectual Property; (iii) against the use by
                  Company or any of its Subsidiaries of any Intellectual
                  Property; (iv) challenging the ownership, validity or
                  effectiveness of Intellectual Property; or (v) challenging
                  Company's or any Subsidiary's license or legally
                  enforceable right to use in any manner whatsoever any
                  Third-Party Intellectual Property. The Company and each of
                  its Subsidiaries will not be, as a result of the execution
                  and delivery of this Agreement by the Shareholders or the
                  performance of Shareholders' obligations hereunder, in
                  material violation of any Intellectual Property license,
                  sublicense or agreement.

                  (c) There is no unauthorized use, disclosure, infringement
                  or misappropriation of any Intellectual Property by any
                  employee of or consultant to or former employee of or
                  consultant to Company or any of its Subsidiaries or by any
                  third party.

                  (d) The Intellectual Property, other than any Third-Party
                  Intellectual Property, was developed entirely by the
                  employees or consultants to Company or its

                                    -21-

                  Subsidiaries during the time they were employed by Company
                  or its Subsidiaries and such Intellectual Property does
                  not include any invention or other intellectual property
                  of such employees or consultants made prior to the time
                  such employees or consultants were employed by Company or
                  its Subsidiaries, nor any intellectual property of any
                  previous employer of such employees or consultants nor the
                  intellectual property of any other person or entity.

                  (e) The Company and each of its Subsidiaries have taken
                  all reasonable precautions up through the Closing Date to
                  preserve and defend the Intellectual Property. Every
                  employee of and consultant to the Company and each of its
                  Subsidiaries involved in product development for the
                  Company and each of its Subsidiaries have executed an
                  invention and proprietary rights assignment agreement in
                  favor of the Company or its Subsidiaries.

2.24 RESTRICTIVE DOCUMENTS. To the best of the Management Shareholders'
     ---------------------
knowledge, neither the Company, any of its Subsidiaries, nor any Shareholder
is subject to, or a party to, any charter, bylaw, mortgage, lien, lease,
license, permit, agreement, contract, instrument, order, judgment or decree,
or any law, rule, ordinance or regulation, or any other restriction of any
other kind or character which (i) adversely affects the business or
practices, operations or conditions of the Company or any of its
Subsidiaries or any of their assets or property, (ii) prevents consummation
of the transactions contemplated by this Agreement, compliance by the
Shareholders with the terms, conditions and provisions hereof or the
continued operation of the Company's and its Subsidiaries' business after
the Closing Date on substantially the same basis as previously operated, or
(iii) restricts the ability of the Company or any of its Subsidiaries to
acquire any property or conduct any business in any area.

2.25 RESIGNATION. For purposes hereof, "Key Employee" shall mean any Company
     -----------
or Subsidiary employee whose total compensation during the prior year
exceeds $75,000. No Key Employee of the Company or any Subsidiary has
resigned since January 1, 2005 and, to the best of the Management
Shareholders' knowledge, no Key Employee plans to retire or resign during
the twelve-month period following the Closing Date or otherwise be
unavailable as an employee of the Company or any Subsidiary at compensation
substantially similar to such employee's present rate of compensation.

2.26 BANK ACCOUNTS AND POWERS OF ATTORNEY. Exhibit 2.26 is an accurate and
     ------------------------------------  ------------
complete list showing (i) the name and address of each bank or similar
organization in which the Company or any of its Subsidiaries has an account
or safe deposit box, the number of such account or any such box, and the
name of persons authorized to draw thereon or to have access thereto; and
(ii) the names of all persons, if any, holding power of attorney from the
Company and a summary statement of the terms thereof.

2.27 ACCOUNTS RECEIVABLE. To the best of the Management Shareholders'
     -------------------
knowledge, all accounts receivable of the Company that are reflected on the
Financial Documents (the "Accounts Receivable") represent valid obligations
arising from sales actually made or services actually performed in the
ordinary course of business.

                                    -22-

2.28 LICENSES, PERMITS AND AUTHORIZATIONS. To the best of the Management
     ------------------------------------
Shareholders' knowledge, Exhibit 2.28 contains a complete and accurate list
                         ------------
of all licenses, franchises, permits and other governmental authorizations
held by the Company and its Subsidiaries (the "Licenses"). To the best of
the Management Shareholders' knowledge, the Licenses are valid, and the
Company and its Subsidiaries have not received any written notice that any
License is to be cancelled, terminated or not renewed. To the best of the
Management Shareholders' knowledge, the Licenses are all of the licenses,
permits and authorizations that are required by law for the operation of the
business of the Company and its Subsidiaries. To the best of the Management
Shareholders' knowledge, except as disclosed on Exhibit 2.28, all Licenses
                                                ------------
will continue to be in full force and effect immediately after consummation
of the transactions contemplated by this Agreement.

2.29 RELATED PARTY TRANSACTIONS. To the best of the Management Shareholders'
     --------------------------
knowledge, other than as specified on Exhibit 2.29, as of the Closing Date,
                                      ------------
there will be no contracts between or loans to or from the Company or any of
its Subsidiaries and (i) any Shareholder, (ii) any of the Company's or its
Subsidiaries' officers or directors, or (iii) any of their affiliates.

2.30 INVENTORY. To the best of the Management Shareholders' knowledge,
     ---------
except as disclosed on Exhibit 2.30, the inventory of the Company consists
                       ------------
of items of a quality and quantity usable or salable in the normal course of
business and, if salable, are salable in the ordinary course at a price not
less than the book value amounts therefor. Any inventory which is obsolete
or which is below standard quality has been written down to reliable market
value or aggregate reserves have been provided therefor.

2.31 ENVIRONMENTAL COMPLIANCE AND HAZARDOUS WASTE.
     --------------------------------------------

         2.31.1 DEFINITIONS. The following terms shall have the following
                -----------
         meanings:

                  (a) ENVIRONMENTAL LAWS. "Environmental Laws" shall mean
                      ------------------
                  and include any applicable EU, Danish, any other
                  nationality applicable to the Company's Subsidiaries or
                  local statute, regulation or ordinance related to human
                  health or the environment including, without limitation,
                  any law, regulation or ordinance concerning the protection
                  and preservation of natural resources, air, water, noise
                  or soil pollution or contamination, or "Hazardous
                  Materials" use, generation, storage or disposal.

                  (b) HAZARDOUS MATERIALS. "Hazardous Materials" shall mean
                      -------------------
                  and include asbestos, urea formaldehyde, polychlorinated
                  biphenyls, nuclear fuel or materials, chemical waste,
                  radioactive materials, explosives, known carcinogens,
                  petroleum products or other pollutants, contaminants,
                  chemicals, materials or substances defined as "hazardous
                  waste," "hazardous substance," "hazardous constituent,"
                  "solid waste," or "toxic substance" or otherwise as
                  hazardous or as a pollutant or contaminant in, or the
                  release or disposal of which is regulated by, any
                  Environmental Law.

                                    -23-

                  (c) REAL PROPERTY. "Real Property" shall mean all real
                      -------------
                  property owned or leased by the Company or any of its
                  Subsidiaries, including the real property leased by the
                  Company or any of its Subsidiaries as listed on Exhibit
                                                                  -------
                  2.12.
                  ----

         2.31.2 SPECIFIC REPRESENTATIONS. To the best of the Management
                ------------------------
         Shareholders' knowledge, except as provided on attached Exhibit
                                                                 -------
         2.31 hereto:
         ----

                  (a) No Hazardous Materials are located on, in, about or
                  under any of the Real Property and none of the Real
                  Property has ever been utilized for the storage,
                  manufacture, disposal, handling, transportation or use of
                  any Hazardous Materials.

                  (b) All permits, licenses and similar authorizations and
                  approvals necessary or required under all Environmental
                  Laws, including those for any Hazardous Materials stored,
                  used or manufactured within or on any of the Real
                  Property, have been obtained, are being complied with and
                  are in full force and effect, and the Company, its
                  Subsidiaries and the Shareholders have complied with all
                  other reporting, filing and other requirements under the
                  Environmental Laws.

                  (c) There are no existing and no proposed, threatened or
                  pending investigations, administrative proceedings,
                  litigation, regulatory hearings or other actions
                  concerning any of the Real Property alleging noncompliance
                  with or violation of any Environmental Law or relating to
                  any required environmental permits or licenses.

                  (d) None of the Real Property is listed or registered as a
                  hazardous waste site or listed in any other list,
                  schedule, log, inventory or record of hazardous waste
                  sites maintained by any applicable EU, Danish, any other
                  nationality applicable to the Company's Subsidiaries or
                  local agency.

                  (e) All reports and investigations commissioned or
                  otherwise received by the Company, its Subsidiaries or any
                  Shareholder concerning any of the Real Property and
                  relating to Hazardous Materials have been disclosed to
                  Buyer.

                  (f) There are not now, nor have there ever been, any
                  aboveground or underground storage tanks located on, in or
                  under any of the Real Property.

                  (g) There are not now, nor have there ever been, any wells
                  located on any of the Real Property.

                  (h) There are no other existing or potential liabilities
                  or claims of any kind or character, whether known or
                  unknown, whether definite, contingent or otherwise, for
                  which the Company, its Subsidiaries, any Shareholder or
                  any owner or occupant of any of the Real Property is or
                  may be liable or responsible arising from the violation of
                  any Environmental Law.

2.32 PRODUCT LIABILITY. To the best of the Management Shareholders'
     -----------------
knowledge, except as disclosed on Exhibit 2.32 attached hereto, no defect or
                                  ------------
deficiency exists in any of the products or

                                    -24-

services which have been sold or licensed by Company or any of its
Subsidiaries which could give rise to any material liabilities or claims for
product liability.

2.33 CUSTOMERS AND SUPPLIERS. To the best of the Management Shareholders'
     -----------------------
knowledge, no customers or suppliers of the Company or its Subsidiaries
intend to cease purchasing from, selling to or dealing with Company or any
of its Subsidiaries, nor has any information been brought to the attention
of the Management Shareholders which might reasonably lead the Management
Shareholders to believe that any of Company's or its Subsidiaries' customers
or suppliers intend to alter in any material respect their purchases from,
sales to or dealings with the Company or any of its Subsidiaries or would
alter in any material respect their purchases from, sales to or dealings
with the Buyer in the event of the consummation of the transactions
contemplated hereby.

2.34 INSOLVENCY. To the best of the Management Shareholders' knowledge, no
     ----------
insolvency proceeding of any character, including without limitation,
bankruptcy, receivership, reorganization, composition or arrangement with
creditors, voluntary or involuntary, affecting Company or any of its
Subsidiaries or the Shares is pending or threatened. To the best of the
Management Shareholders' knowledge, the Company and its Subsidiaries have
adequate liquidity to fund their respective cash requirements for the
foreseeable future without incurring additional Indebtedness except in the
ordinary course of business consistent with past practices or require
support from Buyer.

2.35 WARRANTY. Except as set forth on attached Exhibit 2.35, to the best of
     --------                                  ------------
the Management Shareholders' knowledge, the Company and its Subsidiaries
have not made or given any express warranty or guaranty with respect to any
products or services manufactured, sold or provided by the Company or any of
its Subsidiaries, and the Company and its Subsidiaries have made adequate
reserve to cover all warranty cost or expense on the Company's financial
statements as of December 31, 2004.

2.36 DISTRIBUTION OF THE LOAN AND PURCHASE PRICE, CANCELLATION OF THE
     ----------------------------------------------------------------
WARRANTS AND BONDS AND REPAYMENT OF MEZZANIN LOAN AS OF CLOSING DATE. As of
--------------------------------------------------------------------
the Closing Date, the proceeds from the Loan referenced in paragraph 7.6 and
the Initial Stock Payment received by the Shareholders on the Closing Date
shall simultaneously be distributed as required under paragraphs 7.6 and
1.4.1, and all the Warrants and Bonds will be either exercised or converted
into shares of the Company's common stock, repaid in full and/or cancelled
and the Mezzanin Loan, including any expenses and fees associated with the
Mezzanin Loan, will be repaid in full and cancelled. No Warrants or Bonds
will be outstanding and no further obligations under the Mezzanin Loan will
exist as of the Closing Date as discussed above.

2.37 DSD HOLDING A/S. In connection with the Division as defined under
     ---------------
paragraph 1.1.1, the Management Shareholders represent that the Division is
a separate transaction from, and does not negatively affect, the
transactions contemplated by this Agreement other than as described under
Exhibit 2.11. Further, the Management Shareholders represent that either no
------------
Claims have been filed in connection with the Division or, if Claims have
been filed, all Claims that have been filed have been paid in full and
settled; and the Management Shareholders represent that they do not expect
any Claims, or if Claims have been filed, that any additional Claims, will
be filed.

                                    -25-

2.38 EXHIBITS, ETC. The Exhibits attached hereto are integral parts of this
     -------------
Agreement and constitute representations and warranties of the Management
Shareholders to Buyer. Such Exhibits have been prepared in English and in
U.S. Dollars. The Managing Shareholders shall have the obligation to amend
the Exhibits as necessary to reflect current and accurate information as of
the Closing Date as such Exhibits shall be deemed to have been repeated and
reaffirmed, as amended, at the Closing. The Exhibits, as amended, shall
survive consummation of the purchase and sale contemplated by this
Agreement. Each representation and warranty of the Management Shareholders
in this Agreement shall have independent force and effect, and shall not be
affected by any other representation or warranty in this Agreement except by
specific reference; provided, however, that a disclosure of a given item on
one Exhibit shall be deemed made for purposes of all Exhibits, and it shall
not be necessary to repeat the disclosure of a given item on multiple
Exhibits.

2.39 BROKER OR FINDER. No person or persons assisted in or brought about the
     ----------------
negotiation of this Agreement in the capacity of broker or agent or finder
on behalf of the Shareholders.

2.40 DISCLOSURE. No representation or warranty of the Management
     ----------
Shareholders in this Agreement and no statement contained in this Agreement
or in any document delivered or to be delivered pursuant hereto contains or
will contain an untrue statement of material fact or omits or will omit to
state any material fact necessary to make the statements herein or therein
contained, in light of the circumstances under which made, not misleading;
it being understood that as used in this subparagraph "material" means
material to any individual statement or omission and in the aggregate as to
all statements and omissions. It is understood and acknowledged that Buyer
has been afforded the opportunity to and has inspected the books and records
of the Company; provided, however, this does not restrict the scope or
effect of any representation, warranty or covenant of the Management
Shareholders hereunder.

2.41 RELIANCE. The foregoing representations, warranties and covenants are
     --------
made jointly and severally by the Management Shareholders with the knowledge
and expectation that Buyer is relying thereon. The foregoing
representations, warranties and covenants, together with any and all other
representations, warranties and covenants contained in this Agreement, shall
be deemed to have been repeated and reaffirmed at and as of the Closing Date
and shall survive consummation of the purchase and sale contemplated by this
Agreement.

                                 ARTICLE 3.

             REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER
             --------------------------------------------------

In connection with and as an inducement to the Shareholders to enter into
and be bound by the terms of this Agreement, Buyer hereby represents,
warrants and covenants to the Shareholders as follows:

3.1 ORGANIZATION. Buyer is a corporation duly organized, validly existing
    ------------
and in good standing under the laws of the State of Delaware.

3.2 AUTHORITY. Buyer has full power and authority to enter into, execute and
    ---------
deliver this Agreement and to consummate the transactions contemplated
hereby and any instruments or

                                    -26-

agreements required herein. This Agreement has been duly and validly
executed and delivered by Buyer and constitutes a valid and binding
obligation of Buyer according to its terms, enforceable against Buyer in
accordance with its terms. The execution of this Agreement by Buyer has been
duly authorized by the Board of Directors of Buyer.

3.3 NO VIOLATION. Neither the execution and delivery by Buyer of this
    ------------
Agreement, the consummation of the transactions contemplated hereby, nor
compliance by Buyer with any of the provisions hereof will:

         3.3.1 Violate or conflict with any provision of the Certificate of
         Incorporation or Bylaws of Buyer;

         3.3.2 Violate or constitute a default under or give rise to any
         right of termination, cancellation or acceleration under the terms,
         conditions or provisions of any agreement or instrument to which
         Buyer is a party or by which Buyer or any of its properties or
         assets are bound except as has been duly and validly waived,
         consented to or approved of by the other parties to such agreement
         or instrument; or

         3.3.3 Violate any statute or law or any judgment, order, decree,
         regulation or rule of any court or governmental authority
         applicable to Buyer.

3.4 ACQUISITION OF SHARES. Buyer is acquiring the Shares for its own account
    ---------------------
and not to offer or sell the Shares as part of a public distribution, and
Buyer is not participating, directly or indirectly, in an underwriting of
any such public distribution. Buyer is aware that state and federal
securities laws impose restrictions on transferability of the Shares and
Buyer agrees to comply with such restrictions.

3.5 ADSX SHARES. Upon issuance to the Shareholders pursuant to paragraph
    -----------
1.4.1 of this Agreement, the ADSX Shares delivered to the Shareholders at
Closing shall have been duly authorized, duly and validly issued and fully
paid and nonassessable.

3.6 BROKER OR FINDER. No person or persons assisted in or brought about the
    ----------------
negotiation of this Agreement in the capacity of broker or agent or finder
on behalf of Buyer.

3.7 DISCLOSURE. No representation or warranty by Buyer in this Agreement and
    ----------
no statement contained in this Agreement or in any other document delivered
or to be delivered pursuant hereto contains or will contain an untrue
statement of material fact or omits or will omit to state any material fact
necessary to make the statements herein or therein contained, in light of
the circumstances under which made, not misleading; it being understood that
as used in this subparagraph "material" means material to any individual
statement or omission and in the aggregate as to all statements and
omissions.

3.8 RELIANCE. The foregoing representations, warranties and covenants are
    --------
made by Buyer with the knowledge and expectation that the Shareholders are
relying thereon. The foregoing representations, warranties and covenants,
together with any and all other representations, warranties and covenants
contained in this Agreement, shall be deemed to have been repeated and
reaffirmed at and as of the Closing Date and shall survive consummation of
the purchase and sale contemplated by this Agreement.

                                    -27-

                                 ARTICLE 4.

                         OPERATIONS PENDING CLOSING
                         --------------------------

The Management Shareholders hereby represent, warrant and covenant to and
agree with Buyer that, from the date hereof to the Closing Date or the
termination of this Agreement, the Management Shareholders shall not cause
or allow the Company or any of its Subsidiaries to:

4.1 Fail to carry on its business in substantially the same manner as now
being conducted;

4.2 Fail to pay all liabilities in the ordinary course of business as due;

4.3 Except in the ordinary course of business, sell, transfer, lease,
mortgage, pledge or otherwise dispose of or encumber any of the Company's or
its Subsidiaries' assets or cancel any of the Company's or its Subsidiaries'
claims, unless prior written approval is given by the Buyer;

4.4 Fail to maintain and preserve the Company's and its Subsidiaries'
business, organization and goodwill and its existing relationships with its
respective customers and others having business relationships with them;

4.5 Incur any obligation or liability or enter into any transaction except
in the ordinary course of the Company's and its Subsidiaries' business,
unless prior written approval is given by the Buyer;

4.6 Fail to maintain in full force and effect the Company's and its
Subsidiaries' corporate existence, rights, licenses and franchises;

4.7 Pay or commit to pay any salary, fee or other compensation at a rate in
excess of that prevailing on December 31, 2004;

4.8 Fail to maintain all existing policies of insurance with respect to the
Company or any of its Subsidiaries in their present form and with their
present coverage;

4.9 Enter into any employment, agency or other contract or agreement with
respect to the performance of personal services which is not terminable by
the Company or its Subsidiaries without liability, on thirty (30) days or
less notice, unless prior written approval is given by the Buyer;

4.10 Utilize any employment agency, placement service or similar service for
the purpose of employing any personnel where the Company or any of its
Subsidiaries will be obligated to pay any fee or commission for such
service, unless prior written approval is given by the Buyer;

4.11 Fail to comply with any law, rule, regulation or final order applicable
to the Company or any of its Subsidiaries;

4.12 Pay or commit to pay any bonus or other incentive compensation to any
of the Company's or any of the Subsidiary's officers, directors or
employees;

                                    -28-

4.13 Settle, dismiss or otherwise compromise in any manner any action,
proceeding or suit listed on Exhibit 2.14; or
                             ------------

4.14 Make any capital expenditure or commitment for capital expenditures in
excess of $25,000, unless prior written approval is given by the Buyer.

The Management Shareholders will promptly notify Buyer of any material
change in the business, operations or financial condition of the Company or
any of its Subsidiaries.

                                 ARTICLE 5.

                       CONDITIONS PRECEDENT TO CLOSING
                       -------------------------------

5.1 CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SHAREHOLDERS. All of the
    -------------------------------------------------------
agreements and obligations of the Shareholders under this Agreement are
subject to the fulfillment, on or prior to the Closing Date, of the
following conditions precedent, any or all of which may be waived, in whole
or in part, in writing by the Shareholders:

         5.1.1 PERFORMANCE AND COMPLIANCE. Buyer shall have performed and
               --------------------------
         complied with all of the agreements, covenants and conditions
         required by this Agreement to be performed or complied with by
         Buyer on or prior to the Closing Date, and all of the
         representations and warranties of Buyer under this Agreement shall
         be true and correct in all material respects as of the Closing
         Date.

         5.1.2 NO TERMINATION. No party to this Agreement shall have
               --------------
         terminated this Agreement as permitted herein.

Satisfaction or waiver of any or all of the above conditions precedent shall
not in any manner reduce the scope of the representations, warranties and
covenants made by Buyer elsewhere in this Agreement or the right and ability
of the Shareholders to be indemnified for any misrepresentation, inaccurate
warranty or unfulfilled covenant.

5.2 CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER. All of the agreements and
    --------------------------------------------
obligations of Buyer under this Agreement are subject to the fulfillment, on
or prior to the Closing Date, of the following conditions precedent, any or
all of which may be waived, in whole or in part, in writing by Buyer:

         5.2.1 PERFORMANCE AND COMPLIANCE. The Shareholders shall have
               --------------------------
         performed and complied with all of the agreements, covenants and
         conditions required by this Agreement to be performed or complied
         with by the Shareholders on or prior to the Closing Date, and all
         of the representations and warranties of the Shareholders under
         this Agreement shall be true and correct in all material respects
         as of the Closing Date.

         5.2.2 NO TERMINATION. No party to this Agreement shall have
               --------------
         terminated this Agreement as permitted herein.

                                    -29-

         5.2.3 OPINION OF THE SHAREHOLDERS' COUNSEL. Buyer and its counsel
               ------------------------------------
         shall have been furnished with an opinion of legal counsel
         substantially in the form provided on attached Exhibit 5.2.3
                                                        -------------
         ("Opinion of the Shareholders' Counsel").

         5.2.4 EMPLOYMENT AGREEMENTS. The Company and the Key Employees
               ---------------------
         shall each have executed and delivered to Buyer their respective
         employment agreement substantially in the form attached hereto as
         Exhibit 5.2.5-1 or Exhibit 5.2.5-2 (the "Employment Agreements").
         ---------------    ---------------

         5.2.5 LEASE AGREEMENT. Buyer and L. Nordfjeld shall have entered
               ---------------
         into a mutually acceptable lease agreement for the Company's leased
         premises that shall replace the existing lease with respect to
         these premises (the "Lease Agreement").

         5.2.6 PERSONAL GUARANTEES. Buyer shall have been furnished evidence
               -------------------
         in form and content satisfactory to Buyer, in its sole and absolute
         discretion, of the release of all personal guarantees executed by
         the Shareholders in connection with the financing provided to the
         Company or any of its Subsidiaries and that the Company and its
         Subsidiaries have not guaranteed any obligation of any of the
         Shareholders (the "Guarantee Releases").

         5.2.7 CONSENTS AND APPROVALS. Buyer shall have been furnished all
               ----------------------
         third party consents and approvals in form and content satisfactory
         to Buyer, in its sole and absolute discretion, required by the
         Company to consummate the transactions contemplated hereby (the
         "Consents").

         5.2.8 NO CLAIM REGARDING SHARE OWNERSHIP. There must not have been
               ----------------------------------
         made or threatened by any Person any credible claim asserting that
         such person (a) is the holder or beneficial owner of, or has the
         right to acquire or obtain beneficial ownership of, any stock or
         other equity or ownership interest in the Company; or (b) is
         entitled to any portion of the Purchase Price payable for the
         Shares.

         5.2.9 RECEIPT OF ADSX SHARES. Buyer shall have received from ADSX
               ----------------------
         the ADSX Shares to be delivered to Shareholders pursuant to this
         Agreement.

         5.2.10 NO ADVERSE CHANGES. There shall have been no material
                ------------------
         adverse change since the date of the most recent Balance Sheet
         included within the Financial Statements in the business or the
         assets, except changes contemplated, permitted or required by this
         Agreement.

         5.2.11 NO LEGAL RESTRAINTS. No statute, rule, regulation or order
                -------------------
         of any court or administrative agency or claim of any third party
         shall be in effect which restrains, prohibits or otherwise
         interferes with any of the Shareholders consummating the
         transactions contemplated hereby.

         5.2.12 OUTSTANDING BANK LOANS. The lenders of certain bank loans to
                ----------------------
         the Company identified on Exhibit 5.2.12 ("Bank Loans") have either
                                   --------------
         agreed to extend the terms of such Bank Loans for a period of three
         years from the Closing date or agreed to permit the

                                    -30-

         Company to reborrow any amounts repaid under the Bank Loans during
         the EBITDA Period on the same terms as the applicable Bank Loans.

         5.2.13 LIMITATION ON NUMBER OF ADSX SHARES ISSUED. The number of
                ------------------------------------------
         ADSX Shares to be issued shall not exceed nineteen and ninety-nine
         one hundredths percent (19.99%) of the outstanding Class A common
         stock of ADSX.

         5.2.14 DISTRIBUTION OF THE LOAN AND PURCHASE PRICE, CANCELLATION OF
                ------------------------------------------------------------
         THE WARRANTS AND BONDS AND REPAYMENT OF MEZZANIN LOAN AS OF THE
         ---------------------------------------------------------------
         CLOSING DATE. As of the Closing Date, the proceeds from the Loan
         ------------
         and the Initial Stock Payment received by the Shareholders on the
         Closing Date shall simultaneously be distributed as required under
         paragraphs 7.6 and 1.4.1 and all the Warrants and Bonds will be
         either exercised or converted into shares of the Company's common
         stock, repaid in full and/or cancelled and the Mezzanin Loan,
         including any expenses and fees associated with the Mezzanin Loan,
         will be repaid in full and cancelled. No Warrants or Bonds will be
         outstanding and no further obligations under the Mezzanin Loan will
         exist as of the Closing Date as discussed above.

         5.2.15 RECEIPT OF ADDITIONAL FINANCIAL STATEMENTS. The Buyer shall
                ------------------------------------------
         have received the Additional Financial Statements of the Company as
         listed on Exhibit 5.2.15, prepared in English, in U.S. Dollars, in
         a form reconciled to U.S. GAAP and in accordance with SEC rules and
         regulations together with acceptable auditor's consents so that
         such Additional Financial Statements can be filed by Buyer with
         (and accepted by) the SEC on the date of Closing.

         5.2.16 NO CLAIMS IN CONNECTION WITH THE DIVISION. No Claims have
                -----------------------------------------
         been filed in connection with the Division, or, if Claims have been
         filed, that all the Claims have been paid in full and have been
         settled.

Satisfaction or waiver of any or all of the above conditions precedent shall
not in any manner reduce the scope of the representations, warranties and
covenants made by the Shareholders elsewhere in this Agreement or the right
and ability of Buyer to be indemnified for any misrepresentation, inaccurate
warranty or unfulfilled covenant.

                                 ARTICLE 6.

                            DELIVERY OF DOCUMENTS
                            ---------------------

On the Closing Date, Buyer, as one party, and the Shareholders, as another
party, shall execute and deliver to each other the following documents,
instruments and agreements, together with such other documents, instruments
and agreements as the other party may reasonably request to consummate the
purchase and sale contemplated hereby:

6.1 BY BUYER TO THE SHAREHOLDERS. Buyer shall deliver the following to the
    ----------------------------
Shareholders:

         6.1.1 INITIAL STOCK PAYMENT. Delivery of Initial Stock Payment to
               ---------------------
         the Shareholders as required in paragraph 1.4.1.

                                    -31-

         6.1.2 EMPLOYMENT AGREEMENTS. The Employment Agreements, duly
               ---------------------
         executed by the Company.

         6.1.3 THE LEASE AGREEMENT. The Lease Agreement, duly executed by
               -------------------
         Buyer.

         6.1.4 AUTHORIZING RESOLUTIONS. A copy, certified by the Chief
               -----------------------
         Executive Officer or Chief Financial Officer of Buyer, of the duly
         adopted resolutions of the Board of Directors of Buyer approving
         this Agreement and authorizing the execution and delivery of this
         Agreement and the consummation of the transactions contemplated
         hereby.

         6.1.5 CLOSING CERTIFICATE. A certificate executed by the Chief
               -------------------
         Executive Officer or Chief Financial Officer of Buyer, dated as of
         the Closing Date, to the effect that the representations and
         warranties made by Buyer in this Agreement are accurate in all
         material respects on and as of the Closing Date with the same force
         and effect as though such representations and warranties had been
         made on or given as of the Closing Date and that Buyer has
         performed and complied with all of its covenants and obligations
         under this Agreement.

6.2 BY THE SHAREHOLDERS TO BUYER. The Shareholders shall deliver the
    ----------------------------
following to Buyer:

         6.2.1 SIGNATURE PAGES FOR ADDITIONAL SHAREHOLDERS. The Shareholders
               -------------------------------------------
         shall deliver to Buyer the Signature Pages of this Agreement
         executed by those Shareholders who were Warrant Holders and Bond
         Holders that choose to exercise their rights to acquire shares of
         the Company after the effective date of this Agreement, so that all
         Shareholders hereafter listed on Exhibit 1.1 to this Agreement have
                                          -----------
         become party to this Agreement.

         6.2.2 EVIDENCE OF STOCK TRANSFER. The Shareholders shall deliver to
               --------------------------
         Buyer proof that the Shares have been registered in the name of the
         Buyer on the stock register of the Company, so as to evidence the
         transfer to Buyer all rights, title and interest in and to all the
         shares of the issued and outstanding stock of the Company (the
         Shares), free and clear of all liens, encumbrances, proxies or
         other interests.

         6.2.3 EMPLOYMENT AGREEMENTS. The Employment Agreements, duly
               ---------------------
         executed by each of the Key Employees.

         6.2.4 THE LEASE AGREEMENT. The Lease Agreement, duly executed by L.
               -------------------
         Nordfjeld and the Company.

         6.2.5 OPINION OF THE SHAREHOLDERS' COUNSEL. Buyer and its counsel
               ------------------------------------
         shall be furnished with the Opinion of the Shareholders' Counsel in
         substantially the form provided on attached Exhibit 5.2.3.
                                                     -------------

         6.2.6 RESIGNATIONS. Resignations from all officers and directors of
               ------------
         the Company, and each of its Subsidiaries personally signed by such
         individuals.

         6.2.7 PERSONAL GUARANTEES. Buyer shall be furnished with the
               -------------------
         Guarantee Releases.

         6.2.8 CONSENTS AND APPROVALS. Buyer shall be furnished with the
               ----------------------
         Consents.

                                    -32-

         6.2.9 AUTHORIZING RESOLUTIONS. A copy, certified by the Chief
               -----------------------
         Executive Officer or Chief Financial Officer of the Company, of the
         duly adopted resolutions of the Board of Directors of the Company
         approving this Agreement and authorizing the execution and delivery
         of this Agreement and the consummation of the transactions
         contemplated hereby.

         6.2.10 CLOSING CERTIFICATE. A certificate executed by the
                -------------------
         Shareholders, dated as of the Closing Date, to the effect that the
         representations and warranties made by Shareholders in this
         Agreement are substantially accurate in all material respects on
         and as of the Closing Date with the same force and effect as though
         such representations and warranties had been made on or given as of
         the Closing Date and that Shareholders have performed and complied
         with all of their covenants and obligations under this Agreement.

                                 ARTICLE 7.

                     ADDITIONAL COVENANTS OF THE PARTIES
                     -----------------------------------

7.1 EMPLOYEES. From and after the Closing Date, the Management Shareholders
    ---------
shall use their best efforts to ensure that the Company and all of its
Subsidiaries retain all of their employees as of the Closing Date and for
the six (6) month period thereafter.

7.2 ALLOCATION OF RESPONSIBILITY. The Management Shareholders shall jointly
    ----------------------------
and severally bear all responsibility for, and indemnify and hold harmless
Buyer from and against, any liabilities, obligations or claims resulting or
arising from facts and circumstances or other occurrences related to the
Company's and its Subsidiaries' business and operations on or prior to the
Closing Date.

7.3 PUBLIC ANNOUNCEMENTS. Prior to the Closing Date, Buyer and the
    --------------------
Shareholders must mutually agree and will cooperate on any press release or
other public announcement (including any announcement to employees) relating
to the subject matter of this Agreement.

7.4 MUTUAL COOPERATION. Subsequent to the Closing Date, Buyer and the
    ------------------
Shareholders, at the request of the other, shall each execute, deliver and
acknowledge all such further instruments and documents and do and perform
all such other acts and deeds as may be reasonably required to consummate
the transactions contemplated by this Agreement and to carry out the purpose
and intent of this Agreement.

7.5 BOARD POSITION. From and after the Closing Date and until the date the
    --------------
Buyer pays the balance of the Purchase Price or Buyout Purchase Price
pursuant to paragraph 1.4.3 or the Shareholders elect to exercise a Buy Back
Option pursuant to paragraph 1.4.2 or elect to receive the Escrow Amount
pursuant to paragraph 1.4.5, the Shareholders shall have the right to
nominate one (1) person reasonably acceptable to the Buyer to be elected as
a Director of the Company's Board of Directors ("Shareholder Director
Designee"). The Buyer will from time to time vote or cause to be voted, at
any special meeting or annual meeting of the shareholders or in connection
with a solicitation of proxies or execution of written consents, all Shares
of the Company's voting stock now or hereafter beneficially owned by the
Buyer or over which the

                                    -33-

Buyer now or hereafter exercises voting control, and will take or cause to
be taken all other necessary or desirable actions within the Buyer's direct
or indirect control, to elect the Shareholder Director Designee, remove any
such Shareholder Director Designee or fill any vacancies created by the
resignation or removal of any such Shareholder Director Designee, all as
directed by the Shareholder Representative. The Shareholders consent to and
approve the initial nomination of L. Nordfjeld as the Shareholder Director
Designee.

7.6 LOAN. At Closing, Buyer shall provide to the Company up to $1,000,000 in
    ----
the form of a loan (the "Loan"). The Loan shall be due and payable on the
date that is the three year and three month anniversary date of Closing and
shall bear interest at the rate of the Prime Rate or Reference Rate
published by Wells Fargo Bank, N.A. plus one (1%) percent or the equivalent
LIBOR based amount. Interest on such loan shall be paid quarterly. The Loan
shall be subordinate to the Bank Loans identified on Exhibit 5.2.12.
                                                     --------------

         The Shareholders acknowledge, understand and agree and shall cause
the Company to use the proceeds of the Loan to repay all debt obligations of
the Company to SFK Technology Holding A/S resulting from the Division as
defined under paragraph 1.1.1; secondly for satisfying the 1st Repayment and
the 2nd Repayment, as described in paragraph 1.4.1 and lastly, if any
amounts remain, for additional working capital and general corporate
purposes. If the Loan is not repaid in full by the Company when the Purchase
Price Calculation is determined pursuant to paragraph 1.3.2, the Loan, to
the extent that the Loan has not been repaid, shall be classified as
Indebtedness for the purpose of the Purchase Price Calculation.

                                 ARTICLE 8.

                               INDEMNIFICATION
                               ---------------

8.1 INDEMNIFICATION BY THE MANAGEMENT SHAREHOLDERS. The Management
    ----------------------------------------------
Shareholders, (including any entity which holds the Shares on behalf of the
Management Shareholders, specifically including LANO Holding ApS for L.
Nordfjeld and LATO ApS for T. Jordfjeld) jointly and severally, shall
indemnify and hold harmless Buyer, its affiliates and their respective
officers, directors, employees, agents, successors and assigns against any
and all liabilities, losses, damages, claims, costs, expenses, interest,
awards, judgments and penalties, including, without limitation, related
attorney and consultant fees and expenses (hereinafter collectively a
"Loss"), actually suffered or incurred by them, arising out of, relating to
or resulting from (a) the breach of any representation or warranty made by
the Management Shareholders in this Agreement, other than the representation
under paragraph 2.1, Ownership of Shares, (b) the breach by the Management
Shareholders of any of their covenants or agreements in this Agreement, (c)
the misrepresentation in or omission from any certificate, exhibit,
schedule, statement or other information furnished to Buyer, (d) any aspect
of the operation of the Company or any of its Subsidiaries prior to the
Closing Date or (e) the distributions of the Purchase Price pursuant to
paragraph 1.4.1 and the final payment under paragraph 1.4.3 (all such Losses
being referred to herein collectively as the "Buyer Losses").

8.2 INDEMNIFICATION BY THE SHAREHOLDERS. The Shareholders, including the
    -----------------------------------
Management Shareholders, jointly and severally, shall indemnify and hold
harmless Buyer, its affiliates and their respective officers, directors,
employees, agents, successors and assigns against any and all Buyer Losses
actually suffered or incurred by them arising out of or resulting from the
breach of

                                    -34-

the representation under paragraph 2.1, Ownership of Shares, made by the
Shareholders in this Agreement.

8.3 INDEMNIFICATION BY BUYER. Buyer shall indemnify and hold harmless the
    ------------------------
Shareholders, their affiliates and their respective officers, directors,
employees, agents, successors and assigns against any and all Losses
actually suffered or incurred by them arising out of or resulting from (a)
the breach of any representation or warranty made by Buyer in this
Agreement, (b) the breach by Buyer of any of its covenants or agreements in
this Agreement or (c) any liability arising out of the operation of the
Company by Buyer on or after the Closing Date.

8.4 NOTICE AND OPPORTUNITY TO DEFEND. For purposes of this Section 8.4, a
    --------------------------------
party seeking indemnification shall be considered the "Indemnified Party"
and the party from whom indemnification is sought shall be considered the
"Indemnifying Party." Each party shall promptly, and in all events within
one hundred and twenty (120) days of the Management Shareholders, if the
Management Shareholders are the Indemnified Party, or the Chief Executive
Officer or Chief Financial Officer of the Buyer, if the Buyer is the
Indemnified Party, obtaining actual knowledge thereof, notify the
Indemnifying Party of the existence of any claim, demand or other matter
requiring a defense to which the Indemnifying Party's obligations under this
Article would apply. The Indemnified Party shall give the Indemnifying Party
a reasonable opportunity to defend the claim, demand or matter at the
Indemnifying Party's own expense and with counsel selected by the
Indemnifying Party and satisfactory to the Indemnified Party; provided that
the Indemnified Party shall at all times also have the right to fully
participate in the defense at its own expense. Any such claim, demand or
other matter shall not be settled or compromised without the consent of the
Indemnified Party; provided, however, if the Indemnified Party does not
consent to such settlement or compromise, such claim, demand or other matter
shall not be settled or compromised, but the Indemnifying Party's obligation
to indemnify with respect hereto shall be limited to the amount for which
such claim, demand or other matter could have been settled or compromised,
together with the cost of defense through the date such matter could have
been settled or compromised. If the Indemnifying Party shall, within a
reasonable time after receipt of notice, fail to defend, the Indemnified
Party shall have the right, but not the obligation, to undertake the
defense, and to compromise or settle, exercising reasonable business
judgment, the claim, demand or other matter on behalf, for the account and
at the risk of the Indemnifying Party. If the claim is one that cannot by
its nature be defended solely by the Indemnifying Party (including, without
limitation, any federal or state tax proceeding), the Indemnified Party
shall make available, or cause to be made available, all information and
assistance that the Indemnifying Party may reasonably request.

8.5 SET-OFF. Without limiting any of the other rights Buyer may have at law
    -------
or in equity to recover from the Shareholders in respect of any Buyer Loss,
Buyer may set off an amount equal to the Buyer's reasonable estimate of such
Buyer Loss against any payment or payments coming due or deliveries required
by this Agreement including, without limitation, any delivery of additional
securities or any cash payments; provided, however, to the extent that the
Buyer exercises its right of set-off with respect to amounts that are
ultimately determined (through litigation, arbitration, settlement or
otherwise) to be due to the Shareholders, Buyer shall promptly pay to Seller
such amounts, together with interest thereon at the rate of six percent
(6.0%) per annum from their original due date.

                                    -35-

8.6 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
    ------------------------------------------
warranties set forth in paragraph 1.1.1, Article 2 and Article 3 shall
survive the Closing for a period of three (3) years from the Closing Date
(the "1st Expiration Date"). In addition, the rights and obligations of the
Management Shareholders to appropriately distribute the Buyout Purchase
Price or the balance of the Purchase Price payment set forth in paragraphs
1.3.3 and 1.4.5 shall survive for a period of three (3) years from the date
of payment of the Buyout Purchase Price or the end of the EBITDA Period, as
the case may be (the "2nd Expiration Date") (The 1st Expiration Date and the
2nd Expiration Date shall be collectively referred to herein as the
"Expiration Date.") Notwithstanding anything in this Article 8 to the
contrary, an Indemnifying Party's indemnification obligations under Article
8 shall not terminate as of the Expiration Date with respect to any claims
for indemnification to which the Expiration Date would otherwise be
applicable which are asserted in writing prior to the Expiration Date and
have not been finally resolved prior to the Expiration Date.

8.7 LIMITATION OF LIABILITY. Any indemnification right resulting under this
    -----------------------
Article 8, except those indemnification rights resulting from Claims
described under paragraph 1.1.1 and the second sentence under paragraph
2.37, shall be subject to reaching a minimum aggregate obligation (the
"Threshold") of One Hundred Thousand Dollars ($100,000) in claims, with each
claim subject to a minimum obligation of Twenty Thousand ($20,000) ("Claim
Threshold"), whereupon the entire aggregate amount of all obligations and
liabilities in excess of One Hundred Thousand Dollars ($100,000) shall be
immediately due and payable. If more than one claim exists regarding the
same event in which an indemnification obligation arises, all such claims
shall be aggregated to meet the Claim Threshold. By way of example, if the
following claims exist (i) one claim for $85,000 in connection with a breach
of the representation listed under paragraph 2.1, (ii) four claims for
$5,000 each in connection with a breach of the representation listed under
paragraph 2.3, (iii) one claim for $19,000 in connection with a breach of
the representation listed under paragraph 2.11.1 and (iv) one claim for
$5,000 in connection with a breach of the representation under paragraph
2.11.8, the claims under (i) and (ii) have each met the Claim Threshold
while the claims under (iii) and (iv) have not; however, the Threshold has
been met by aggregating the claims under (i) and (ii). Further, the maximum
aggregate amount required to be paid to the Buyer as the Indemnified Party
by the Management Shareholders as the Indemnifying Party under this Article
8, specifically pursuant to paragraph 8.1, shall not exceed 75% of that
portion of the Purchase Price received by the Management Shareholders (the
"Management Shareholders' Indemnification Ceiling"). Notwithstanding the
foregoing, the Threshold and the Management Shareholders' Indemnification
Ceiling shall not apply to any claim related to a breach of representation,
warranty or covenant where the Indemnifying Party had actual knowledge of
such breach at Closing and intentionally and willfully failed to disclose
such breach. The maximum amount required to be paid to the Buyer as the
Indemnified Party by a Shareholder, including a Management Shareholder, as
the Indemnifying Party under this Article 8, specifically pursuant paragraph
8.2, shall not exceed 100% of that portion of the Purchase Price received by
that Shareholder.

                                    -36-

                                 ARTICLE 9.

                                 TERMINATION
                                 -----------

This Agreement may be terminated and the transactions contemplated hereby
abandoned at any time prior to the Closing Date:

9.1 By mutual written consent of the Shareholders and Buyer; or

9.2 By the Shareholders (as one party) or by Buyer (as another party) upon
written notice thereof to the other party if:

         9.2.1 The purchase and sale contemplated hereby has not been
         consummated by a date sixty (60) days after the date of this
         Agreement, unless such purchase and sale has not been so
         consummated because of, or as a result of, any actions or failure
         to act on the part of the party seeking to terminate this Agreement
         pursuant to this Section 9.2.1; or

         9.2.2 There has been a failure by the other party to perform or
         comply with any material agreement, covenant or condition herein
         required to be performed or complied with by such other party
         within the time required and such failure has continued for thirty
         days following written notice thereof to such other party,
         provided, however, such cure period shall not extend beyond the
         expiration of the sixty (60) day period referenced in Section 9.2.1
         above.

In the event of termination of this Agreement by either party pursuant to
this Article 9, this Agreement shall be of no further force or effect and
neither party shall have any liability to the other as a result of such
termination except where such termination results from a willful and
material breach of this Agreement.

                                ARTICLE 10.

                          MISCELLANEOUS PROVISIONS
                          ------------------------

10.1 NOTICES. All notices, offers, requests or other communications from
     -------
either of the parties hereto to the other shall be in writing and shall be
considered to have been duly delivered or served on the date of meeting if
sent by first class certified mail, return receipt requested, postage
prepaid, to the party at its address as set forth below or to such other
address as such party may hereafter designate by written notice to the other
party:

         If to Buyer, to:

         Digital Angel Corporation
         490 Villaume Avenue
         South Saint Paul, Minnesota 55075
         Attn: Kevin N. McGrath, CEO

                                    -37-

         With a copy to:

         Winthrop & Weinstine, P.A.
         Suite 3500
         225 South Sixth Street
         Minneapolis, MN 55402
         Attn: Philip T. Colton

         If to the Shareholders, to:

         Lasse Nordfjeld
         28 Gronnegangen
         DK-3070 Snekkersten

         With a copy to:

         Lassen Ricard
         31Amaliegade
         DK-1256 Copenhagen K
         Attn: Peter Lambert

10.2 GOVERNING LAW. Provisions of this Agreement specifically dealing with
     -------------
the Purchase Price and the issuance and registration of ADSX Shares,
specifically paragraphs 1.3 (except 1.3.1(v)) and 1.4 (collectively, the
"Buyer's Provisions"), shall be deemed to be a contract made under the laws
of the State of Minnesota, United States and for all purposes such Buyer's
Provisions shall be construed in accordance with and governed by the laws of
such state, excluding any choice of laws provisions or conflict of laws
principles which would required reference to the laws of any other
jurisdiction. As to all other provisions of this agreement, specifically
paragraph 1.3.1(v) and Articles 2, 3 and 4 (the Company's Provisions"), such
Company's Provisions shall be deemed to be a contract made under the laws of
Denmark and for all purposes the Company's Provisions shall be construed in
accordance with and governed by the laws of such country, excluding any
choice of laws provisions or conflict of laws principles which would
required reference to the laws of any other jurisdiction.

10.3 JURISDICTION; SERVICE OF PROCESS. Any action or proceeding seeking to
     --------------------------------
enforce any of the Buyer's Provisions under, or based on any right arising
out of, this Agreement shall be brought against any of the parties in the
Courts of the State of Minnesota, United States, Ramsey County, or the
United States District Court for the District of Minnesota (collectively,
the "US Courts"), and each of the parties hereto consents to the
jurisdiction of such US Courts (and the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.
Any action or proceeding seeking to enforce any of the Company's Provisions
under, or based on any right arising out of, this Agreement shall be brought
against any of the parties in the Maritime and Commercial Court ("Denmark
Court"), and each of the parties hereto consents to the jurisdiction of such
Denmark Court (and the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein. If a party seeks
to enforce any of the Buyer's Provisions in a US Court, then such party may
also seek, in good faith, enforcement of any additional Company's Provisions
in the same US Court at such time

                                    -38-

with Danish law applied to such Company's Provisions as provided under
paragraph 10.2. In the alternative, if a party seeks to enforce any of the
Company's Provisions in a Denmark Court, then such party may also seek, in
good faith, enforcement of any additional Buyer's Provisions in the same
Denmark Court at such time with Minnesota law applied to such Buyer's
Provisions as provided under paragraph 10.2. Process in any action or
proceeding referred to in the preceding sentences may be served on any party
hereto anywhere in the world.

10.4 ASSIGNMENT. No party to this Agreement may assign or transfer this
     ----------
Agreement, either directly or indirectly, without the prior written consent
of the other party to this Agreement, except that Buyer may assign all or
part or Buyer's interest in this Agreement to an entity controlling,
controlled by or under common control with Buyer so long as Buyer retains
responsibility and liability for performing its obligations under this
Agreement. Unless otherwise agreed by the other party to this Agreement, any
assignment of this Agreement shall not release the assignor from the duty to
perform the assignor's obligations under this Agreement. This Agreement
shall be binding upon, inure to the benefit of and may be enforced by and
against the respective successors and permitted assigns of each of the
parties to this Agreement.

10.5 SPECIFIC PERFORMANCE. The Shareholders agree that breach of this
     --------------------
Agreement by the Shareholders will cause Buyer irreparable harm for which
there is no adequate remedy of law and, without limiting whatever other
rights and remedies Buyer may have under this Agreement, Buyer is entitled
to the remedy of specific performance to enforce this Agreement and the
Shareholders consent to the issuance of an order by a court of competent
jurisdiction requiring the specific performance of this Agreement by the
Shareholders.

10.6 ENTIRE AGREEMENT. This Agreement expresses the whole agreement between
     ----------------
the parties with respect to the purchase and sale contemplated hereby, there
being no representations, warranties or other agreements (oral or written)
not expressly set forth or provided for herein.

10.7 COUNTERPARTS. This Agreement may be executed in one or more
     ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

10.8 CHANGES. Any and all agreements by the parties hereto to amend, change,
     -------
extend, revise or discharge this Agreement, in whole or in part, shall be
binding upon the parties to such agreement, even though such agreements may
lack legal consideration, provided such agreements are in writing and
executed by the party against whom enforcement is sought.

10.9 CONSTRUCTION. Wherever possible, each provision of this Agreement and
     ------------
each related document shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement or
any related document shall be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Agreement or such related documents.

10.10 WAIVER. No failure on the part of either party to exercise, and no
      ------
delay in exercising any right or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial

                                    -39-

exercise of any right or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right or remedy granted hereby
or by any related document or by law.

10.11 SEVERABILITY. In the event any part of this Agreement is found to be
      ------------
void, the remaining provisions of this Agreement shall nevertheless be
binding with the same effect as though the void parts were deleted.

10.12 TITLES AND SUB-TITLES. The titles of the paragraphs and subparagraphs
      ---------------------
are placed herein for convenient reference only and shall not to any extent
have the effect of modifying, amending or changing the expressed terms and
provisions of this Agreement.

10.13 NO THIRD PARTY BENEFICIARIES. This Agreement is a contract solely
      ----------------------------
among Buyer and the Shareholders. No third party beneficiaries (including,
without limitation, employees and customers of the Company) are intended and
none shall be inferred, and no party other than Buyer and the Shareholders
may assert any right, make any claim or otherwise attempt to enforce any
provision of or under this Agreement.

10.14 U.S. DOLLAR AMOUNTS. Unless otherwise specified, all dollar figures
      -------------------
contained herein refer to U.S. dollar amounts and amounts payable hereunder
shall be paid in Danish Krones.

10.15 FEES AND EXPENSES. Each party shall be responsible to pay their own
      -----------------
transactional expenses incurred in connection with this Agreement, except
that the Shareholder's legal fees in connection with this Agreement (and not
in connection with any transaction contemplated prior to the Division as
defined under paragraph 1.1.1 shall be paid by the Company.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.

SHAREHOLDERS:                               BUYER:

LANO Holdings ApS                           DIGITAL ANGEL CORPORATION
---------------------------------------

By: /s/ L. Nordfjeld                        By: /s/ James P. Santelli
   ------------------------------------        --------------------------------
   Its: CEO                                    Its: Vice President and CEO
       --------------------------------            ----------------------------

                                            As to Paragraph 1.4.2 and 3.5:

By: Bjarne Lehman Wey                       APPLIED DIGITAL, INC.
   ------------------------------------
   Its: President and CEO
       --------------------------------
                                            By: /s/ Scott Silverman
                                               --------------------------------
                                                Its: CEO
                                                    ---------------------------
Torsten Nordfjeld
---------------------------------------

By: /s/ Torsten Nordfjeld
   ------------------------------------
   Its: CEO
       --------------------------------

                                    -40-

By:  _____________________
     Its: Vaekstfonden

Reservation: The Representations and Warranties in paragraph 2.1 and the
indemnification in paragraph 8.2 shall be limited to Vaekstfonden's own
shares and thus Vaekstfonden shall not be jointly and severally liable
as set out in said clauses. Further, Vaekstfonden shall not be liable if
the Representation that "the Subsidiary shares are free from any charge and
encumbrance and are owned by the Company" is breached.

                                            -41-

                              LIST OF EXHIBITS

Exhibit 1.1       Outstanding Shares

Exhibit 2.2       List of Subsidiaries

Exhibit 2.3       Capital Structure of Subsidiaries

Exhibit 2.5       Consents and Approvals

Exhibit 2.6       Financial Documents

Exhibit 2.6(A)    Cash Forecast

Exhibit 2.7       Assets

Exhibit 2.8       Subsidiary Meetings

Exhibit 2.10      Undisclosed Liabilities

Exhibit 2.11      Adverse Changes

Exhibit 2.12      Leases

Exhibit 2.13      Insurance

Exhibit 2.14      Litigation

Exhibit 2.15      Material Contracts

Exhibit 2.17      Guarantees

Exhibit 2.18.1    Employees

Exhibit 2.18.2    Employee Agreements

Exhibit 2.18.3    Employee Benefit Plans

Exhibit 2.19      Employment, Agency and Independent Contractor Agreements

Exhibit 2.20      Real Estate

Exhibit 2.22      Investments

Exhibit 2.23      Intellectual Property

Exhibit 2.26      Bank Accounts and Powers of Attorney

Exhibit 2.28      Licenses, Permits and Authorizations

Exhibit 2.29      Related Party Transactions

Exhibit 2.30      Inventory

Exhibit 2.31      Environmental Compliance and Hazardous Waste

Exhibit 2.32      Defects or Deficiencies

Exhibit 2.35      Warranties

Exhibit 5.2.3     Opinion of Shareholders' Counsel

Exhibit 5.2.6-1   Form of Employment Agreement for Lasse Nordfjeld

Exhibit 5.2.6-2   Form of Employment Agreement for Torsten Nordfjeld

Exhibit 5.2.12    Bank Loans

Exhibit 5.2.15    Additional Financial Statements

                                    -2-

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