Document:

Exhibit 10.18

    
      

    

     

    Exhibit
      10.18

     

    AMENDMENT
      NO. 4 TO

     

    SECURITIES
      PURCHASE
      AGREEMENT

     

     

        This
      Amendment to Securities Purchase Agreement (this “Amendment”)
      is dated as of
      May 7, 2007 by and between Digital Angel Corporation, a Delaware corporation
      (the “Company”), and Imperium Master Fund, Ltd. (the “Investor”)
      and is made with reference to that certain Securities Purchase Agreement dated
      as of February 6, 2007 (the “Purchase Agreement”) between the Company and
      the Investor, pursuant to which the Company issued to the Investor a 10.25%
      Senior Secured Debenture (the “Debenture”) and a Warrant to purchase
      common stock of the Company (the “Warrant”). Capitalized terms used
      herein and not otherwise defined shall have the respective meanings set forth
      in
      the Purchase Agreement and the Debenture, as applicable.

     

        WHEREAS,
      pursuant to Section 4.10(b)(vi) of the Purchase
      Agreement, the Liabilities of Signature shall at all times be less than
      $2,000,000;

     

        
      WHEREAS, the Company believes that the Liabilities of Signature
      may be greater than $2,000,000 at some point in the upcoming year and has
      requested that section 4.10(b)(vi) of the Purchase Agreement be
      amended;

     

        WHEREAS,
      in exchange for granting the requested
      amendment and to avoid the need for future amendments and/or waivers, the
      Investor has asked the Company to agree to restructure the terms of the Purchase
      Agreement, Debenture and Warrant.

     

        NOW
      THEREFORE, for consideration, the adequacy of which
      is hereby acknowledged by all parties, the parties hereto hereby agree to the
      following:

     

        1.
      Amendment to Section 4.10(b) of the Purchase Agreement. Section
      4.10(b) of the Purchase Agreement is hereby amended and restated in relevant
      part to read as follows:

     

        “4.10
      Limitation on Debt and Liens; Financial Covenants.

     

                                    
      (b)    ...

     

       During
      the
      period beginning on the Execution Date and ending on the Termination Date,
      the
      Company shall, and shall ensure that each of the Company Subsidiaries, comply
      with each of the following financial covenants:

     

                                                    
      ...

     

                (vi)     
The
      Liabilities of Signature shall at
      all times be less than:

                                                    
      (A) $2,600,000 during the period commencing February 6, 2007 through May 5,
      2008; and

                                                    
      (B) $2,000,000 during the period commencing on May 6, 2008 and ending on the
      Termination Date.”

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

        2.
Addition
      of Sections 4.23 and 4.24 to the Purchase Agreement. Section 4 of the
      Purchase Agreement is further amended to add the following two
      covenants:

     

       “4.23
      Covenant to Restructure. The Company and the Investor shall (i) by June
      7, 2007 execute a binding term sheet setting forth mutually acceptable terms
      for
      revising and restructuring this Securities Purchase Agreement, the Debenture
      and
      Warrant (the “Negotiation Deadline”), and (ii) by July 7, 2007 execute a
      revised and restructured Securities Purchase Agreement, Debenture, and Warrant
      pursuant to the terms of such term sheet (the “Documentation Deadline”).
      The failure to meet either the Negotiation Deadline or the Documentation
      Deadline shall be an Event of Default under the Debenture. Effective immediately
      upon such Event of Default the Debenture shall thereafter bear Interest on
      the
      unpaid principal amount thereof at an annual rate equal to 15.25%.
      Notwithstanding any other provision in the Debenture, the foregoing remedy
      shall
      be the sole and exclusive remedy for such Event of Default.

     

        4.24
No
      Prepayment Prior to Documentation Deadline. Notwithstanding any other
      provision in this Securities Purchase Agreement or the Debenture, the Company
      shall have no right to effect a Prepayment of the Debenture prior to the
      Documentation Deadline.”

     

        3.
      Entire Agreement; Amendment. This Amendment contains the entire
      understanding of the parties with respect to the matters covered hereby and,
      except as specifically set forth herein, neither the Company nor the Investor
      makes any representation, warranty, covenant or undertaking with respect to
      such
      matters. No provision of this Amendment may be waived or amended other than
      by a
      written instrument signed by the party against whom enforcement of any such
      amendment or waiver is sought.

     

        4.
Governing
      Law. This Amendment shall be governed by and construed and enforced in
      accordance with the laws of the State of New York applicable to agreements
      executed and to be performed entirely within such State.

     

        5.
      Counterparts. This Amendment may be executed in one or more
      counterparts, each of which shall be deemed an original, and all of which
      together shall constitute one and the same instrument.

     

        6.
      Authorization. The parties hereby represent and warrant to each
      other that the signatories hereto have full power and authority to sign this
      Amendment for and on behalf of the entities for which they purport to be signing
      and that their signatures hereto shall be binding and enforceable upon the
      purported parties hereto.

     

        All
      other terms and provisions of the Purchase Agreement shall remain the same
      and
      in full force and effect.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    [Signature
      Page Follows]

     

     

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

        In
      Witness Whereof, the parties hereto have executed this Amendment to Securities
      Purchase Agreement as of the date set forth in the first paragraph
      hereof.

     

     

     

     

    
      	 	 COMPANY:
	 	 
	 	 DIGITAL
              ANGEL CORPORATION
	 	 
	 	 By:  
              /s/ Kevin N.
              McGrath                 
                 
	 	 Name:  
Kevin
              N.
              McGrath                    
	 	 Title:    President
&
CEO 
                                  
	 	 
	 	 
	 	 INVESTOR:
	 	 
	 	 IMPERIUM
              MASTER FUND, LTD.
	 	 
	 	 By:   /s/ Maurla
              Hiyshko                    
	 	 Name:   Maurla
              Hiyshko                    
	 	 Title:    CounselTH's EA 06/15/04

                                            June
      15, 2004

                                            Terry
      Herring            

     

        Re: Amendment
      to Employment Agreement                

     

     

    Dear Terry,

     

        This letter confirms
      our agreement and shall serve to amend the April 8, 2002 Employment Agreement
      between you and the Company in accordance with the following:

     

        a)     Additional
      Pay

     

        Paragraph 3 and
      section h   Additional Pay, sentence one shall be amended to
      read as follows:

     

            If
      there is a Change
      in Control (as defined in paragraph 5(e) herein) by April 8, 2005, and the
      Executive is employed by the Company upon the Change in Control, and, in the
      sole judgement and discretion of the Company, the Executive has satisfactorily
      performed all assigned duties, including using his best efforts to facilitate
      a
      Change in Control, the Company shall award the Executive up to fifty-two (52)
      weeks base pay, minus such deductions as may be required by law or reasonably
      requested by the Executive. 

     

        b)     Continuing
      Effectiveness of Employment Agreement

     

        Except as modified
      herein, the Employment agreement dated April 8, 2002, shall remain in full
      force
      and effect in accordance with their respective terms.

     

        If
      the foregoing is satisfactory, please so indicate by signing and returning
      to me
      the enclosed copy of this Letter Agreement whereupon this will constitute
      the agreement of the parties with respect to the subject matter referenced
      herein.

     

     

    Very truly yours,

     

    Ventiv Health, Inc.

     

    By: /s/ Eran Broshy        

               Chief
      Executive Officer   

     

    Accepted and agreed to by: /s/ Terry Herring 
     Dated: 7/7/04TH's EA 10/18/04

    

      October
        18, 2004

      

      Terrell
        Herring

      

      

      
        	 	
                Re:

              	
                Amendment
                  to Employment Agreement

              

      

      

      Dear
        Terrell:

      

      This
        letter confirms our agreement and shall serve to amend the April 8, 2002
        Employment Agreement between you and the Company in accordance with the
        following:

      

      3(a).Base
        Salary.
        

       

      The
        paragraph shall be amended to read as follows:

       

      The
        Company shall pay the Executive a base salary at an annual rate of $325,000
        payable at such times and in accordance with the Company's customary payroll
        practices as they may be adopted or modified from time to time. On an annual
        basis or at such other times as the Company may determine, the Company may
        review the Executive's performance and determine whether, in its sole
        discretion, the Company will increase (but not decrease) the Executive's
        base
        salary. At no time during the pendency of this agreement shall the Company,
        without the written consent of the Executive, decrease the Executive’s base
        pay.

       

      5(c).
        Termination Without Cause or for Good Reason.
        

       

      The
        paragraph shall be amended to read as follows:

       

      If
        the
        Executive's employment hereunder is terminated by the Company Without Cause
        pursuant to Section 5(a)(iv) above or For Good Reason pursuant to Section
        5
        (a)(v) the Company shall award the Executive severance benefits, subject
        to the
        terms and conditions of this Agreement and of The Ventiv Health, Inc. Severance
        Benefit Plan, if applicable. A lump sum payment of fifty two (52) weeks of
        the
        Executive’s base pay, minus such deductions as may be required by law or
        reasonably requested by the Executive to be paid out immediately. In order
        to be
        eligible to receive any Severance Payment pursuant to this paragraph 6, the
        Executive must sign, prior to receiving such Severance Payment, a valid release
        and waiver of all claims against the Company relating to the executive’s
        employment or the termination thereof, in a format to be determined by the
        Company. No payment shall be made hereunder until at least eight (8) days
        following the execution and delivery by the Executive of the valid release
        and
        waiver.

       

      

      Very
        truly yours,

      

      VENTIV
        HEALTH, INC.

      

      

      By:__/s/
        Eran Broshy________________________   

      Eran
        Broshy

      CEO 

      

      

      Accepted
        and agreed to by: /s/ Terrell
        Herring_____________________  Dated:______________              Terrell
        Herring

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