AMENDMENT TO REPLACEMENT
COMMON STOCK PURCHASE WARRANT
This Amendment to Replacement Common Stock Purchase Warrant (this “ Amendment ”), effective as of
February 29, 2008, by and between Applied Digital Solutions, Inc., a Delaware corporation (the “ Company ”)
and Kallina Corporation (the “ Holder ”) amends that certain Replacement Common Stock Purchase Warrant,
dated as of February 22, 2008, issued by the Company in favor of Holder and exercisable into up to 1,354,839
shares of Common Stock of the Company (as amended, modified or supplemented from time to time, the “
WHEREAS, Digital Angel Corporation, a Delaware corporation (“ Digital Angel ”), issued a warrant to
Holder, dated August 31, 2007 (the “ Original Warrant ”), to purchase from Digital Angel up to 967,742 fully
paid and nonassessable shares of common stock, $0.005 par value per share, at the exercise price of $1.69 for all
shares acquired thereunder.
WHEREAS, effective December 28, 2007, Digital Angel Acquisition Corp., a Delaware corporation, merged
with and into Digital Angel, with Digital Angel surviving and becoming a wholly-owned subsidiary of the Company,
pursuant to that certain Agreement and Plan of Reorganization, dated August 8, 2007, as amended, among the
Company, Digital Angel and Digital Angel Acquisition Corp. (the “ Merger Agreement ”).
WHEREAS, pursuant to the Merger Agreement, each of the then-outstanding warrants to purchase shares of
Digital Angel common stock were converted into a warrant to purchase that number of whole shares of Common
Stock (as defined herein) of the Company determined by multiplying the number of shares of Digital Angel common
stock subject to such Digital Angel warrant by 1.4 shares, at an exercise price per share of Common Stock of the
Company equal to the exercise price per share of such Digital Angel warrant immediately prior to the effective time
of the merger divided by 1.4, rounded up to the nearest whole cent (the “ Merger Consideration ”).