SECURITIES PURCHASE AGREEMENT
This Securities Purchase Agreement (this "AGREEMENT") is entered into as of June 4, 2003, between Applied
Digital Solutions, Inc., a Missouri corporation (the "COMPANY"), and Cranshire Capital, L.P. (the
WHEREAS, the Company has registered with the Securities and Exchange Commission (the "COMMISSION")
the issuance of certain shares (the "SHARES") of its common stock, $0.001 par value per share (the
"COMMON STOCK"), under a registration statement on Form S-1 (Registration No.
333-102165) (the "REGISTRATION STATEMENT").
WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to sell to the
Purchaser and the Purchaser desires to purchase from the Company up to four million (4,000,000) Shares
currently available under the Registration Statement.
NOW, THEREFORE, in consideration of the foregoing, the mutual covenants contained in this Agreement and
for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the
Company and the Purchaser agree as follows:
1. SETTLEMENT DATES.
(a) Settlement Dates. The closing, if any, of the purchase and sale of the Shares under this Agreement will take
place at the offices of Bryan Cave LLP ("BRYAN CAVE"), 1290 Avenue of the Americas, New York, New
York 10104, on the settlement dates set forth below. Subject to the terms and conditions of this Agreement, the
Shares will be issued, delivered and paid for on up to three settlement dates (if any).
(1) The first settlement date (if any) will occur on the fourth (4th) Trading Day (as defined below) following (and
including) the Press Release Date (the "FIRST SETTLEMENT DATE"). Subject to the terms and conditions of
this Agreement, on the First Settlement Date, the Company will issue and deliver to the Purchaser and the
Purchaser shall pay for 1,333,333 Shares (subject to adjustment, at the sole option of the Purchaser, in
accordance with and subject to the provisions of