THIS AGREEMENT (“Agreement”), made and entered into as of February 28, 2005, by and
between DIGITAL ANGEL CORPORATION, a Delaware corporation (“Company”) and LASSE
A. This Agreement is being executed and delivered contemporaneously with that certain Stock
Purchase Agreement dated as of the date hereof (the “Stock Purchase Agreement”), pursuant to which the
Company will purchase all of the issued and outstanding shares of capital stock of DSD Holding A/S, a Danish
corporation (the “DSD Holding”).
B. The Executive is a founder of and the principal operating officer of DSD Holding. DSD
Holding has developed and acquired valuable information, know-how and ideas relating to its business, all of
which is regarded as valuable confidential information. In the course of his employment with DSD Holding,
Executive has had access to and has learned certain valuable and confidential information of DSD Holding.
During such period, Executive has also developed valuable relationships with suppliers, customers and other
business associates of DSD Holding.
C. The Company desires to assure that Executive provides services to the Company as its
employee, and Executive desires to be employed by the Company, subject to the terms and conditions set forth
in this Agreement.
NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements of the
Company and Executive set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Executive, intending to be legally bound, agree
1. Employment . The Company hereby employs Executive, and Executive accepts such
employment and agrees to perform services for the Company, for the period and upon the other terms and
conditions set forth in this Agreement. The Executive shall serve in the employ of the C