Document:

EX-10.3

Exhibit 10.3

COMMONWEALTH OF PENNSYLVANIA

BEFORE THE

PENNSYLVANIA SECURITIES COMMISSION

	 	 	 	 	 
	 

IN THE MATTER OF

	 	:
	 	 
	 

	 	:	 	 
	TD Ameritrade, Inc.

	 	:
	 	ADMINISTRATIVE PROCEEDING
	 

	 	:
	 	Docket No. 2008-05-06
	 

	 	:	 	 
	 

	 	:	 	 
	RESPONDENT          

	 	:	 	 
	 

	 	 	 	 

OFFER OF SETTLEMENT

SECTION I

     TD Ameritrade, Inc. (Respondent) submits this Offer of Settlement (Offer) to the Pennsylvania
Securities Commission (Commission) solely for the purpose of settling allegations of the staff of
the Commission and without any adjudication of said allegations that Respondent violated a certain
provision of the Pennsylvania Securities Act of 1972 (1972 Act) in connection with the offer and
sale of auction rate securities (ARS) in the Commonwealth of Pennsylvania and in the following
states and territories within the United States of America: Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho,
Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan,
Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,
North Dakota, North Carolina, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina,
South Dakota, Tennessee, Texas, US Virgin Islands, Utah, Vermont, Virginia, Washington, West
Virginia, Wisconsin, and Wyoming.

 

 

SECTION II

	A.	 	Respondent admits the jurisdiction of the Commission and the regulatory authorities of the
aforementioned states and territories over it and over the subject matter of this Offer.
	 
	B.	 	Respondent waives hearing and rehearing, including that provided by Section 607 of the 1972
Act; 70 P.S. § 1-607.
	 
	C.	 	Respondent waives any and all review by a court of law, including that provided by Section
607(d) of the 1972 Act; 70 P.S. § 1-607(d).
	 
	D.	 	Respondent, without admitting or denying the allegations therein, consents to the issuance of
the appended Findings of Fact, Conclusions of Law, and Order (Order) which are incorporated
herein by reference.
	 
	E.	 	Respondent consents to participate in a special arbitration (Arbitration) for the exclusive
purpose of arbitrating any Eligible Investor’s consequential damages claim arising from their
inability to sell Eligible Auction Rate Securities.1

	 	1.	 	Respondent will notify Eligible Investors of the Arbitration process under
the following terms:

	 	a.	 	The Arbitration will be conducted by a single public
arbitrator (as defined by Section 12100(u) of the FINRA Code of Arbitration
Procedures for Customer Disputes);

 

			
	1	 	The terms “Eligible Investor” and “Eligible Auction
Rate Securities” are defined terms in the Order for Pennsylvania Securities
Commission Docket 2008-05-06 and they shall be given the same meaning in this
Offer.

2

 

	 	b.	 	Respondent will pay all applicable forum and filing fees.
Eligible Investors may seek recovery for their attorneys’ fees to the same
extent that they may under standard arbitration procedures;
	 
	 	c.	 	Any Eligible Investor who chooses to pursue such claims in
the Arbitration shall bear the burden of proving that they suffered
consequential damages and that such damages were caused by their inability to
access funds invested in Eligible Auction Rate Securities;
	 
	 	d.	 	In the Arbitration, Respondent shall be able to defend itself
against such claims, provided, however, that Respondent shall not contest
liability for the illiquidity of the underlying ARS or use as part of its
defense any decision by an Eligible Investor not to borrow money from
Respondent;
	 
	 	e.	 	All customers, including but not limited to Eligible
Investors who avail themselves of the relief provided pursuant to this Order,
may pursue any remedies against Respondent available under the law. However,
Eligible Investors that elect to utilize the Arbitration process set forth
above are limited to the remedies available in that process and may not bring
or pursue a claim relating to Eligible Auction Rate Securities in another
forum.
	 
	 	f.	 	All terms used but not defined herein shall have the meaning
assigned to them by the 1972 Act.

3

 

SECTION III

          Respondent states that no promises of any kind or nature whatsoever were made to induce it to
make this Offer, and that this Offer is a voluntary act on their part.

SECTION IV

          If this Offer is acceptable to the Commission, the provisions of the Offer shall become
effective as of the date of the issuance of the appended proposed Order. If the Offer is not
acceptable to the Commission, the Offer shall be deemed withdrawn without prejudice to the
Respondent.

	 	 	 	 	 	 	 
	 

	 	 	 	     TD Ameritrade, Inc.	 	 
	 
	 	 	 	 	 	 
	     Date: July 9, 2009

	 	BY:
	 	/s/ WILLIAM J. GERBER
 

	 	 
	 
	 	 	 	 	 	 
	 	 	TITLE: Executive Vice President, Chief Financial Officer
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	     Date:

	 	 	 	BY:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

4

 

ACKNOWLEDGMENT

     Before me, the undersigned authority, personally appeared William J. Gerber, an executive
officer of TD Ameritrade, Inc., known or proved to me to be the person who executed the foregoing
Offer of Settlement, and acknowledged that he/she executed the same freely and voluntarily and for
the purposes stated therein.

	 	 	 	 	 
	 	 	 
	 	                                                          /s/ NANCY LOWREY
 	 
	 	Notary Public 	 
	 
	 	My commission expires:

May 4, 2012 	 

5Exhibit 10.3

EXHIBIT 10.3

AMENDMENT NO. 1

TO

STANDBY EQUITY PURCHASE AGREEMENT

 THIS AMENDMENT NO. 1 (the “Amendment”) to the Standby Equity Distribution
Agreement (the “Agreement”), dated July 10, 2009, between YA GLOBAL MASTER SPV LTD., a
Cayman Islands exempt limited company (the “Investor”) and DIGITAL ANGEL CORPORATION, a
corporation organized and existing under the laws of the State of Delaware (the “Company”)
is dated July 17, 2009. Capitalized terms used but not defined herein shall have the meaning given
thereto in the Agreement.

WHEREAS, the parties hereto desire to amend certain provisions of the Agreement as more fully
described herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Investor and the Company hereby agree as follows:

	 	1.	 	Amendments.

	 	a.	 	Section 1.09. Section 1.09 of the Agreement is hereby amended
and restated in its entirety to read as follows:

	 	 	 	“Commitment Amount” shall mean the aggregate amount of up to $5,000,000
which the Investor has agreed to provide to the Company in order to purchase the
Shares pursuant to the terms and conditions of this Agreement provided that, the
Company shall not effect any sales under this Agreement and the Investor shall not
have the obligation to purchase shares of Common Stock under this Agreement to the
extent that after giving effect to such purchase and sale the aggregate number of
shares of Common Stock issued under this Agreement (including any Commitment Shares)
would exceed 3,578,299 shares of Common Stock (which is less than 20% of the
17,891,495 outstanding shares of Common Stock as of the date of this Agreement)
except that such limitation shall not apply in the event that the Company obtains
the approval of its stockholders as required by the applicable rules of The NASDAQ
Stock Market LLC for issuances of Common Stock in excess of such amount.

 

 

 

	 	2.	 	Miscellaneous.

	 	a.	 	The parties hereto acknowledge and agree that, other than as set forth
in this Amendment, the Agreement remains unchanged and in full force and effect.

	 	b.	 	This Amendment may be executed in several counterparts, each of which
will be deemed to be an original and all of which will together constitute one and
the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed by the
undersigned, thereunto duly authorized, as of the date first set forth above.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	Digital Angel Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lorraine M. Breece
	 

	 	 	 	 
	 

	 	 	 	Name: Lorraine M. Breece
	 

	 	 	 	Title:   Senior Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	YA Global Master SPV Ltd.
	 
	 	 	 	 
	 

	 	By:
	 	Yorkville Advisors, LLC
	 

	 	Its:
	 	Investment Manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gerald Eicke
	 

	 	 	 	 
	 

	 	 	 	Name: Gerald Eicke
	 

	 	 	 	Title:   Managing MemberExhibit 10.28

Exhibit 10.28

MODIFICATION NUMBER ONE

TO PROMISSORY NOTE AND LOAN AGREEMENT

eResearchtechnology, Inc.

a/k/a eResearch Technology, Inc.

1818 Market Street, Suite 1000

Philadelphia, Pennsylvania 19103-3638

eRT Investment Corporation

1105 N. Market Street, Suite 1300

Wilmington, Delaware 19801

eRT Tech Corporation

1105 N. Market Street, Suite 1300

Wilmington, Delaware 19801

(Individually and collectively, “Borrower”)

Wachovia Bank, National Association

Philadelphia, Pennsylvania 19109

(Hereinafter referred to as “Bank”)

THIS AGREEMENT is entered into as of May 19, 2009 by and between Bank and Borrower.

RECITALS

Bank is the holder of a Promissory Note, as modified from time to time, executed and delivered by
Borrower, dated June 26, 2008, in the original principal amount of $3,000,000.00 (the “Note”); and
certain other loan documents, including without limitation, a Loan Agreement, dated June 26, 2008
(the “Loan Agreement”);

Borrower and Bank have agreed to modify the terms of the Note and the Loan
Agreement.

In consideration of Bank’s continued extension of credit and the agreements contained herein, the
parties agree as follows:

AGREEMENT

ACKNOWLEDGMENT OF BALANCE. Borrower acknowledges that the most recent Commercial Loan Invoice sent
to Borrower with respect to the Obligations under the Note is correct.

MODIFICATIONS.

1. The Note is hereby modified by deleting the provisions in the Note establishing the repayment
terms
and substituting the following in their place and stead:

REPAYMENT TERMS. The Note shall be due and payable in consecutive monthly payments of accrued
interest only, commencing on June 1, 2009, and continuing on the same day of each month thereafter
until fully paid. In any event, all principal and accrued interest shall be due and payable on
June 1, 2010.

	 	 	 
	WPCI915678XXXX001
	 	CDCNOTEXXX

 

 

 

2. The section entitled LETTER OF CREDIT of the Note or Loan Agreement is hereby deleted and the
following is substituted in its place and stead:

LETTERS OF CREDIT. Upon the request of Borrower, Bank shall issue standby Letters of Credit,
provided, the aggregate amount available to be drawn under all standby Letters of Credit plus the
aggregate amount of unreimbursed drawings under all standby Letters of Credit at any one time does
not exceed $3,000,000.00, and further provided, no standby Letter of Credit shall expire more than
365 days after the date it is issued. Notwithstanding anything to the contrary contained herein,
the aggregate outstanding principal balance of Advances (as defined in the line of credit
Promissory Note in the amount of $3,000,000.00, of even date herewith) plus the aggregate amount
available to be drawn under all Letters of Credit plus the aggregate amount of unreimbursed
drawings under all Letters of Credit at any one time shall not exceed $3,000,000.00. The Letters
of Credit are to be used by Borrower solely to support working capital. Bank’s obligation to issue
Letters of Credit shall terminate if Borrower is in default (however denominated) under the Note
or the other Loan Documents, or in any case, if not sooner terminated, on June 1, 2010 unless
renewed or extended by Bank in writing upon such terms then
satisfactory to Bank.

ACKNOWLEDGMENTS AND REPRESENTATIONS. Borrower acknowledges and represents that the Note and other Loan Documents, as amended hereby, are in full force and effect without any defense, counterclaim,
right or claim of set-off; that, after giving effect to this Agreement, no default or event that
with the passage of time or giving of notice would constitute a default under the Loan Documents
has occurred, all representations and warranties contained in the Loan Documents are true and
correct as of this date, all necessary action to authorize the execution and delivery of this
Agreement has been taken; and this Agreement is a modification of an existing obligation and is
not a novation.

MISCELLANEOUS. This Agreement shall be construed in accordance with and governed by the laws of the
applicable state as originally provided in the Loan Documents, without reference to that state’s
conflicts of law principles. This Agreement and the other Loan Documents constitute the sole
agreement of the parties with respect to the subject matter thereof and supersede all oral
negotiations and prior writings with respect to the subject matter thereof. No amendment of this
Agreement, and no waiver of any one or more of the provisions hereof shall be effective unless set
forth in writing and signed by the parties hereto. The illegality, unenforceability or
inconsistency of any provision of this Agreement shall not in any way affect or impair the
legality, enforceability or consistency of the remaining provisions of this Agreement or the other
Loan Documents. This Agreement and the other Loan Documents are intended to be consistent. However,
in the event of any inconsistencies among this Agreement and any of the Loan Documents, the terms
of this Agreement, and then the Note, shall control. This Agreement may be executed in any number
of counterparts and by the different parties on separate counterparts. Each such counterpart shall
be deemed an original, but all such counterparts shall together constitute one and the same
agreement. Terms used in this Agreement which are capitalized and not otherwise defined herein
shall have the meanings ascribed to such terms in the Note. LIMITATION ON LIABILITY; WAIVER OF
PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES THAT IN
ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM
THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY
OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED
HERETO, IN NO EVENT SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT,
SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH OF THE PARTIES HEREBY
EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY
ARISE lN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR
CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE.
Telephone Communication Monitoring. Borrower agrees that Borrower’s telephone communications with
Bank may be monitored and/or recorded to improve customer service and security. Final Agreement. This Agreement and the other Loan Documents represent the final agreement between the parties and
may not be contradicted by evidence of prior, contemporaneous or subsequent agreements of the
parties. There are no unwritten agreements between the parties.

 

Page 2 

 

WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER BY EXECUTION
HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED
IN CONNECTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT TO BANK TO ACCEPT THIS AGREEMENT. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL
SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES
CONTAINED IN ANY LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION
WITH, RELATED TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS AGREEMENT.

IN WITNESS WHEREOF, the undersigned have duly signed and sealed this Agreement the day and year
first above written.

	 	 	 	 	 
	 	eResearchtechnology, Inc.

 	 
	 	By:  	/s/ Steven M. Eisenstein
 	(SEAL)
	 	 	Steven M. Eisenstein, Vice President and Controller 	 
	 	 	 	 
	 	eRT Investment Corporation

 	 
	 	By:  	/s/ Steven M. Eisenstein
 	(SEAL)
	 	 	Steven M. Eisenstein, Vice President 	 
	 	 	 	 
	 	eRT Tech Corporation

 	 
	 	By:  	/s/ Steven M. Eisenstein
 	(SEAL)
	 	 	Steven M. Eisenstein, Vice President 	 
	 	 	 	 
	 	Wachovia Bank, National Association

 	 
	 	By:  	/s/ Kenneth W. Smith
 	(SEAL)
	 	 	Kenneth W. Smith, Vice President 	 

Tracking #: 1265864

CAT — Deal # 1117202 Facility ID 915678

 

Page 3

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