DIGITAL ANGEL CORP
EX-10.4
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>j5733_ex10d4.htm
<DESCRIPTION>EX-10.4
<TEXT>
<html>



<head>



<title>  </title>



</head>



<body link="blue" vlink="purple">



<div style="font-family:'Times New Roman';">



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:right;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">&nbsp;</font></b></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:right;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">EXHIBIT

10.4</font></b></p>



<p style="font-weight:bold;margin:0in 0in .25in;text-align:center;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">LOCKBOX AND COLLECTION ACCOUNT AGREEMENT</font></u></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b><font style="font-weight:bold;">LOCKBOX AND COLLECTION ACCOUNT AGREEMENT</font></b>

(&#147;Agreement&#148;), dated as of October 30, 2002, among <b><font style="font-weight:bold;">DIGITAL ANGEL CORPORATION</font></b>, a Delaware corporation

(&#147;Borrower&#148;), <b><font style="font-weight:bold;">WELLS FARGO BUSINESS CREDIT, INC.</font></b> (&#147;Lender&#148;), <b><font style="font-weight:bold;">REGULUS WEST

LLC </font></b>(&#147;Regulus&#148;) and <b><font style="font-weight:bold;">WELLS FARGO BANK MINNEAPOLIS, NATIONAL ASSOCIATION</font></b>

(&#147;Wells Fargo&#148;) sets out (i) the terms and conditions under which Regulus and

Wells Fargo, who have entered into an alliance to provide lockbox services to

customers, will provide their lockbox service (&#147;Lockbox Service&#148;) to Borrower

and Lender with respect to the post office lockbox of Borrower at Regulus (the

&#147;Lockbox&#148;), (ii) the terms and conditions under which Wells Fargo will provide

its collection account service (the &#147;Collection Account Service&#148;) to Borrower

and Lender with respect to Lender&#146;s wholesale demand deposit account specified

at the end of this document (the &#147;Lender Account&#148;), and (iii) the rights of

Borrower and Lender, and the obligations of Wells Fargo and Regulus to Borrower

and Lender, with respect to the Lockbox and the Lender Account.</font></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ORIGIN OF

LENDER&#146;S INTEREST IN THE LOCKBOX REMITTANCES</font></u></b>.&#160; Borrower has entered into a financing

agreement with Lender in which Borrower has granted to Lender a security

interest in Borrower&#146;s present and future accounts receivable and all proceeds

thereof, and Borrower has agreed that all collections and proceeds of such

accounts receivable shall be remitted in kind to Lender.&#160; Accounts receivable will be sent by account

debtors of Borrower to the Lockbox for deposit by Regulus into the Lender

Account.&#160; (When such accounts receivable

have been received in the Lockbox they will be referred to in this Agreement as

the &#147;Remittances&#148; and when the Remittances have been deposited into the Lender

Account as provided in this Agreement they will be referred to in this

Agreement, together with all other proceeds of the collateral security granted

to Lender that are deposited in the Lender Account, as the &#147;Account Funds&#148;).&#160; Lender and Borrower would like to use the

Collection Account Service to block Borrower&#146;s access to the Lender Account and

to provide daily transfers of ledger balances in the Lender Account to Lender&#146;s

account with Wells Fargo Bank Minnesota, National Association.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">COMMENCEMENT

OF LOCKBOX SERVICE</font></u></b>.&#160; The

Lockbox Service will start on the date arranged by Wells Fargo and Regulus with

Lender if the following events have occurred before such date:</font></h2>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Regulus has assigned the Lockbox to

Borrower with the number and at the address specified by Regulus to Wells

Fargo, Lender and Borrower;</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Lender Account has been opened

and is in good standing;</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Lender has designated to Regulus in

Exhibit &#147;A&#148; the acceptable names or designations of payees on checks deposited

through the Lockbox Service, the procedures for handling returned checks and

restrictive notations on checks, and the processing options selected by Lender

for the Lockbox Service; and</font></h3>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower and Lender have provided to

Regulus and Wells Fargo such other information and docu&#173;ments as Regulus or

Wells Fargo request to enable Regulus and Wells Fargo to commence and operate

the Lockbox Service and the Collection Account Service for Borrower and Lender.</font></h3>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ACCESS TO

REMITTANCES, LOCKBOX AND ACCOUNT FUNDS</font></u></b>.&#160; Borrower will not have access to any

Remittances unless such access is specifically provided in this Agreement or is

specifically authorized by Lender in writing.&#160;

Regulus, as the agent of Lender, will have exclusive access to the

Lockbox.&#160; Regulus will give appropri&#173;ate

instructions concerning the Lockbox and the Remittances to the United States

Post Office where the Lockbox is located, and will not revoke such instructions

without the prior written consent of Lender.&#160;

All Account Funds shall be the sole and exclusive property of Lender

withdrawable from the Lender Account only by Lender as provided in this

Agreement or in the account documentation pursuant to which the Lender Account

was opened.&#160; Borrower will have no

interest in, or any control over, any Account Funds, and Account Funds shall

not bear interest.&#160; Except as provided

in this Agreement, the Lender Account will not be subject to deductions,

setoff, banker&#146;s lien, or any other right in favor of any person other than

Lender.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">PROCESSING

LOCKBOX MAIL</font></u></b>.&#160; Each day

that Regulus offers the Lockbox Service, Regulus or its subcontractor will pick

up at, and transport from, the Lockbox the Remittances, and, except as

otherwise specifically provided in this Agree&#173;ment, Regulus will open such Remittances

and process such Remittances in accordance with the Lockbox Processing

Procedures attached to this Agreement as Exhibit &#147;A&#148; (&#147;Processing

Procedures&#148;).&#160; Borrower agrees to

instruct its customers and other obligors not to send cash to the Lockbox.&#160; Regulus will not comply with any instruction

or request of Borrower altering the Proce&#173;dures unless such instruction or

request is agreed to in writing by Lender or is supported by a court

order.&#160; At the written request of

Lender, with or without the consent of Borrower, Regulus will stop processing

Remittances and will send all such Remittances unopened to Lender, or to

Borrower if Lender so instructs Regulus in writing.&#160; Lender and Borrower agree that Regulus will have no liability

what&#173;so&#173;ever with respect to Remittances after they are sent to Lender, or to

Borrower in accordance with Lender&#146;s written instructions.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DEPOSITS

AND CONFIRMATIONS</font></u></b>.&#160;

Borrower and Lender authorize Regulus to endorse checks and other

payment instruments received at the Lockbox and to deposit such items into the

Lender Account as provided in the Processing Procedures, even though such

checks and other payment instruments may be made payable to Borrower.&#160; Regulus will provide to Lender and to

Borrower an advice of deposits credited to the Lender Account at their

respective addresses specified at the end of this Agreement for advice of

deposits and statements.&#160; Wells Fargo

will provide to Lender and to Borrower Wells Fargo&#146;s regular statement covering

deposits to and withdrawals from the Lender Account at their respective

addresses specified at the end of this Agreement for advice of deposits and

statements.&#160; Borrower and/or Lender

agree to notify Wells Fargo&#146;s Service Center, whose address and telephone

number will be given to Borrower and Lender, (a) of any error in an advice of

deposit within thirty (30) calendar days after Borrower and/or Lender receive

such advice of deposit and (b) of any error in a bank statement within thirty

(30) calendar days after Borrower and/or Lender receive such bank </font></h2>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">statement.&#160; The liability of Regulus and Wells Fargo for

such errors is limited as provided in Section 21 of this Agreement.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ACCOUNT

DOCUMENTATION</font></u></b>.&#160; Borrower

and Lender understand that this Agreement covers the Lockbox Service and,

except as specifically provided in this Agreement, does not cover the handling

of the Lender Account.&#160; Except as

otherwise specifically provided in this Agreement, the Lender Account will be

handled and items drawn on or deposited into the Lender Account will be

processed by Wells Fargo, and not Regulus, as Wells Fargo would perform such

responsibilities with respect to any other demand deposit account at Wells

Fargo.&#160; As a result, the Lender Account

will be subject to, and Wells Fargo&#146;s operation of the Lender Account will be

in accordance with, the terms and provisions of Wells Fargo&#146;s deposit account

opening documentation and other Wells Fargo account related documentation

(collectively, &#147;Account Documentation&#148;), including, but not limited to, Wells

Fargo&#146;s demand deposit account disclosure statement for the Lender Account as

in effect and delivered to Lender from time to time, a copy of which Borrower

and Lender acknowledge having received.&#160;

Notwithstanding any provisions of any Account Documentation, however,

all Account Funds shall be the sole and exclusive property of Lender.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CUSTOMER

SERVICE</font></u></b>.&#160; Borrower and

Lender understand that Wells Fargo, and not Regulus, will provide customer

service for the Lockbox Service.&#160; As a

result, any questions or problems that Borrower or Lender have with respect to

the Lockbox Service should be addressed to Wells Fargo&#146;s Service Center.&#160; Wells Fargo will facilitate the resolution

of any problem between Borrower or Lender and Regulus, but Borrower and Lender

understand that Regulus will be solely responsible for any problems caused by

its performance or failure to perform the Lockbox Service.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">RETURNED

ITEMS</font></u></b>.&#160; All checks or

other items credited to the Lender Account and returned to Wells Fargo unpaid

for any reason will be handled by Wells Fargo in the following manner:</font></h2>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any check with a face amount less

than One Thousand Dollars ($1,000.00) which is returned because of insufficient

funds will automatically be redeposited by Wells Fargo a second time.</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any check which has been returned a

second time or which is returned for reasons other than insufficient funds or

which has a face amount of One Thousand Dollars ($1,000.00) or more and is

returned for insufficient funds will be charged back to Borrower&#146;s wholesale

demand deposit account maintained with Wells Fargo specified at the end of this

Agreement (the &#147;Borrower Account&#148;).</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If there are insufficient funds in

the Borrower Account to cover any chargeback, Lender agrees that Wells Fargo

may charge the Lender Account for the amount of the insufficiency, up to the

amount of the returned items.&#160; If there

are insufficient funds in the Lender Account, Borrower and Lender agree to pay

the amount of the chargeback to the Lender Account, in immediately available

funds, within one </font></h3>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="center">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">business day after receipt of physical evidence of

said chargeback sent by facsimile to Borrower and Lender at their facsimile

numbers specified below.</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any returned checks and debit memos

with respect to returned checks will be sent to Borrower.</font></h3>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ACH DEBIT

TRANSFERS FROM LENDER ACCOUNT</font></u></b>.&#160;

On each day when Wells Fargo is open for business (a &#147;Banking Day&#148;)

during the term of this Agreement, at the specific request of Lender, Wells

Fargo will process automated clearing house debits to the Lender Account

initiated by banks other than Wells Fargo for transfers of funds out of the

Lender Account (each an &#147;ACH Debit&#148;) so long as any such ACH Debit does not

exceed the ledger balance in the Lender Account at the end of the Banking Day

immediately preceding the date on which the ACH Debit is initiated.&#160; These transfers will be made to Lender if

Lender&#146;s account is the transfer-to account specified in the ACH Debits by the

initiating bank.&#160; Lender agrees to pay

to Wells Fargo immediately on demand, without setoff or counterclaim, the

amount of any overdraft in the Lender Account caused by an ACH Debit exceeding

the ledger balance in the Lender Account at the time such ACH Debit settles.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DELAYS IN

MAKING ACH DEBIT TRANSFERS</font></u></b>.&#160;

Lender and Borrower understand that an ACH Debit transfer may be delayed

or not made if (a) the transfer would cause Wells Fargo to exceed any

limitation on its intra-day net funds position established in accordance with

Federal Reserve or other regulatory guidelines or to violate any other Federal

Reserve or other regulatory risk control program, or (b) the funds transfer

would otherwise cause Wells Fargo to violate any applicable law or

regulation.&#160; If an ACH Debit transfer

cannot be made or will be delayed, Wells Fargo will attempt to notify Lender by

telephone.&#160; Notwithstanding anything to

the contrary in this Section 10, Wells Fargo agrees that its response to any

court order or other legal process, to the claim of any party in bankruptcy, or

the adverse claim of any individual or entity not a party to this Agreement

shall be made in accordance with the provisions of Sections 16 and 18 hereof.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">RELIANCE

ON ACCOUNT NUMBER OF ACH DEBIT TRANSFER BENEFICIARY</font></u></b>.&#160; If the bank initiating an ACH Debit out of

the Lender Account indicates a name and an identifying number for the bank of

the person or entity to receive the ACH Debit transfer, Lender and Borrower

understand that Wells Fargo will rely on the number indicated by the initiating

bank even if that number identifies a bank different from the named bank.&#160; If the bank initiating an ACH Debit out of

the Lender Account indicates a name and an account number for the person or

entity to receive the ACH Debit transfer, Lender and Borrower understand that

Wells Fargo and the initiating bank may rely on the indicated account number

even if that account number is not the account number for the person or entity

who is to receive the transfer.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">REPORTING

ERRORS IN TRANSFERS</font></u></b>.&#160; If

Lender or Borrower learns of any error in an ACH Debit transfer or any

unauthorized funds transfer, then the party learning of such error or

unauthorized transfer (the &#147;Informed Party&#148;) must notify Wells Fargo as soon as possible by telephone at (800)

AT-WELLS (which is a recorded line), and provide written confirmation to Wells

Fargo of such telephonic notice within two Business Days at the address given

for Wells </font></h2>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fargo on the signature page of this Agreement.</font><font size="2" style="font-size:10.0pt;">&#160;

In no case may such notice to Wells Fargo by an Informed Party be made

more than thirty (30) calendar days after Wells Fargo&#146;s first confirmation of

an ACH Debit transfer or other funds transfer to such Informed Party, whether

such first confirmation consists of the regular monthly statement for the

Lender Account or otherwise.&#160; If a funds

transfer is made in error and Wells Fargo suffers a loss because Lender or

Borrower breached its agreement to notify Wells Fargo of such error within this

thirty (30) calendar day period, then the party or parties which breached this

agreement shall be obligated to reimburse Wells Fargo for such loss promptly

upon demand by Wells Fargo; provided, however, that in the event both Lender

and Borrower breach this notification requirement, Lender shall not be

obligated to reimburse Wells Fargo for such loss unless Borrower fails to

satisfy Wells Fargo&#146;s demand for such reimbursement within fifteen (15)

calendar days after such demand is made on Borrower.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CONTACTS</font></u></b>.&#160; Any contacts regarding operational matters

with any party to this Agreement shall be made to the person and address

specified below for advice of deposits and statements.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">WELLS

FARGO FEES</font></u></b>.&#160; Borrower

agrees to pay the fees for the Collection Account Service charged by Wells

Fargo (the &#147;Wells Fargo Fees&#148;), which fees will be based on the charges

specified in the standard collection account fee schedule current at the time

the fees are charged.&#160; As changes in

Wells Fargo&#146;s operating costs, procedural requirements or service volumes

affect future costs of processing, Wells Fargo will periodically review the

Wells Fargo Fees.&#160; Should the results of

such periodic review warrant adjustment of the Wells Fargo Fees, Borrower and

Lender will receive a minimum of thirty (30) calendar day&#146;s written notice

prior to implementing such adjustment.&#160;

Wells Fargo will collect the Wells Fargo Fees by debiting the Borrower

Account for the amount of the Wells Fargo Fees, without prior notice to

Borrower or Lender, on the day such Wells Fargo Fees are due.&#160; Lender agrees to pay the Wells Fargo Fees

within thirty (30) calendar days after Lender receives a billing statement from

Wells Fargo for such fees, without setoff or counterclaim, to the extent that

Wells Fargo is unsuccessful in any attempt to automatically debit such fees

from the Borrower Account.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">REGULUS

FEES</font></u></b>.&#160; Borrower agrees to

pay the fees for the Lockbox Service charged by Regulus (the &#147;Regulus Fees&#148;),

which fees for the standard lockbox processing procedures will be based on the

charges specified in that standard Lockbox Fee Schedule of Regulus current at

the time the fees are charged.&#160; As

changes in Regulus&#146; operating costs, procedural requirements or service volumes

affect future costs of processing, Regulus will periodically review the Regulus

Fees.&#160; Should the results of such

periodic review warrant adjustment of the Regulus Fees, Borrower and Lender

will receive a minimum of thirty (30) calendar day&#146;s written notice prior to

implementing such adjustment.&#160; Wells

Fargo will collect the Regulus Fees on behalf of Regulus by debiting the

Borrower Account for the amount of the Regulus Fees, without prior notice to

Borrower or Lender, on the day such Regulus Fees are due.&#160; Lender agrees to pay the Regulus Fees within

thirty (30) calendar days after Lender receives a billing statement from Wells

Fargo for such fees, without setoff or counterclaim, to the extent that Wells

Fargo is unsuccessful in any attempt to automatically debit such fees from the

Borrower Account.</font></h2>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">COURT

ORDER</font></u></b>.&#160; If Regulus or

Wells Fargo is served with a court order which affects the Lockbox or the

Lender Account, Regulus or Wells Fargo, as the case may be, will act in

accordance with such court order.&#160;

Subject to the provisions of Section 18, neither Regulus nor Wells Fargo

shall, in response to the adverse claim of Borrower or any third party, have

the right to place a hold, nor will it place a hold, on funds in, or in the

process of being deposited to, the Lockbox or the Lender Account, and Regulus

and Wells Fargo will process the Remittances and Account Funds in strict

accordance with the terms and conditions of this Agreement, unless and until

either Regulus or Wells Fargo, as the case may be, receives a court order to

the contrary, whether issued by a U.S. Bankruptcy Court or any other court of

competent jurisdiction.&#160; Lender

represents, warrants, and agrees that upon filing of voluntary or involuntary

proceedings under the U.S. Bankruptcy Code involving Borrower, Lender shall at

all times comply with applicable bankruptcy statutes, rules, and other laws as

they may relate to the Remittances and Account Funds.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">OWNERSHIP

OF SPECIFICATIONS, RECORDS, SYSTEMS AND PROGRAMS</font></u></b>.&#160; Borrower and Lender agree that any

specifications, records, systems and programs, including, among other things,

computer software programs, which are utilized or developed by Regulus or Wells

Fargo in connection with the Service or this Agreement are and will remain the

sole property of Regulus and Wells Fargo.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CLAIMS,

LEGAL PROCESS AND NOTICES</font></u></b>.&#160;

If Wells Fargo or Regulus receives any claim, notice, legal process or

court order relating to the Remittances, the Lockbox, the Account Funds or the

Lender Account, Wells Fargo or Regulus, as the case may be, will notify Lender

and Borrower of such receipt, unless Wells Fargo or Regulus know that Lender,

with respect to so notifying Lender, or Borrower, with respect to so notifying

Borrower, are already aware of such claim, notice, legal process or court

order.&#160; Wells Fargo or Regulus, as the

case may be, will notify Lender of such process, claim or notice prior to its

compliance.&#160; Lender and Borrower

understand and agree that Wells Fargo and Regulus will comply with any such

legal process, legal notice or court order it receives (including, without

limitation, any summons, subpoena, levy, garnishment, or withholding order) if

Wells Fargo or Regulus determines in its sole discretion that such legal

process, legal notice or court order is legally binding on it.&#160; If any claim or notice received by Wells

Fargo or Regulus is not legally binding on it, as determined in its sole

discretion, Wells Fargo and Regulus agree to follow any instructions of Lender

to comply or not comply with such claim or notice if (a) such instructions are

given promptly after Lender is notified of such claim or notice and (b) such

instructions do not require Wells Fargo or Regulus to violate any applicable

law, regulation or court order.&#160;

Borrower hereby irrevocably agrees that Wells Fargo and Regulus are to

follow any such instructions of Lender with respect to any such non-binding

claim or notice even if such claim or notice is from Borrower.&#160; If Wells Fargo or Regulus do not receive

prompt instructions from Lender regarding compliance or non-compliance with any

such non-binding claim or notice, Lender and Borrower agree that Wells Fargo or

Regulus may determine in its sole discretion to comply or not to comply with

such claim or notice, except that neither Wells Fargo nor Regulus will comply

with any such claim or notice from Borrower conflicting with the terms of this

Agreement.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">INDEMNIFICATION

FOR FOLLOWING INSTRUCTIONS</font></u></b>.&#160;

Lender and Borrower each agree that, notwithstanding any other provision

of this Agreement, neither Wells </font></h2>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6</font></p>





<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="center">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fargo

nor Regulus will be liable to Lender or Borrower for any losses, liabilities,

damages, claims (including, but not limited to, third party claims), demands,

obligations, actions, suits, judgments, penal&#173;ties, costs or expenses,

including, but not limited to, attorneys&#146; fees, (collectively, &#147;Losses and

Liabilities&#148;) suffered or incurred by Lender or Borrower as a result of, or in

connection with, (a) Wells Fargo or Regulus following any instruction of Lender

to comply or not comply with any non-binding claim or notice referred to in

Section 18 of this Agreement, (b) if no such instruction from Lender is

promptly received, Wells Fargo or Regulus complying or not complying, as

determined in its sole discretion, with any such non-binding claim or notice,

(c) Wells Fargo or Regulus following any other instruction or request of

Lender, or (d) Wells Fargo or Regulus complying with its obligations under this

Agreement.&#160; Further, Borrower, and to

the extent not paid by Borrower within fifteen (15) calendar days after demand,

Lender, will indemnify Wells Fargo and Regulus against any Losses and

Liabilities Wells Fargo or Regulus suffer or incur as a result of, or in

connection with, any of the circumstances referred to in subsections (a)

through (d) in the preceding sentence.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">NO

REPRESENTATIONS OR WARRANTIES OF REGULUS OR WELLS FARGO</font></u></b>.&#160; Wells Fargo and Regulus will perform their

obligations under this Agreement in a manner consistent with the quality

provided when Wells Fargo and Regulus perform similar services for their own

account.&#160; However, neither Regulus nor

Wells Fargo can be responsible for the errors, acts or omissions of others,

such as communications carriers, corres&#173;pondents or clearinghouses through

which Regulus or Wells Fargo may perform their obligations under this Agree&#173;ment

or receive or transmit information in performing their obliga&#173;tions under this

Agreement.&#160; Further, neither Regulus nor

Wells Fargo can be responsible for any loss, liability or delay caused by wars,

failures in communications networks, labor disputes, work stoppages, legal

constraints, fires, power surges or failures, earthquakes, civil disturbances,

acts or omissions of the U.S. Postal Service, or other events beyond its

control.&#160; NEITHER REGULUS NOR WELLS

FARGO MAKES ANY EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES WITH RESPECT

TO THE LOCKBOX SERVICE, THE COLLECTION ACCOUNT SERVICE, OR ANY OTHER SERVICE IT

IS TO PERFORM UNDER THIS AGREEMENT OTHER THAN THOSE EXPRESSLY SPECIFIED IN THIS

AGREEMENT.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">LIMITATION

OF LIABILITY</font></u></b>.&#160; If any

party to this Agreement suffers or incurs any Losses and Liabilities as a

result of, or in connection with, its or any other party&#146;s performance or

failure to perform its obliga&#173;tions under this Agreement, the affected parties

will negotiate in good faith in an effort to reach a mutually satisfactory

allocation of such Losses and Liabilities, it being understood that neither

Regulus nor Wells Fargo will be responsible for any Losses and Liabilities due

to any cause other than its own negligence or breach of this Agreement, in

which case (a) if such negligence or breach is a failure by Regulus to deposit

any check which should have been deposited pursuant to this Agreement, Regulus&#146;

liability shall be limited to direct money damages in an amount not to exceed

interest on the amount of such check at a rate equal to the cost of funds (at a

reserve adjusted daily interest rate which Wells Fargo will determine) for the

time period such amount is not in the Lender Account, which time period for the

purpose of calculating such interest will not extend beyond the end of the

thirty (30) calendar day notice period referred to in Section 5 of this Agreement,

and (b) if such negligence or breach results from any other action or failure

to act by Regulus or Wells Fargo, the liability of Regulus and Wells Fargo

shall be limited to direct money damages in an amount not to exceed ten (10) </font></h2>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="center">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='7',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="margin:0in 0in 12.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">times

all the Regulus Fees, in the case of the liability of Regulus, or the Wells

Fargo Fees, in the case of the liability of Wells Fargo, charged or incurred

during the calendar month immediately preceding the calendar month in which

such Losses and Liabilities occurred (or, if no Regulus Fees or Wells Fargo

Fees were charged or incurred in the preceding month, the Regulus Fees or Wells

Fargo Fees, as the case may be, charged or incurred in the month in which the

Losses and Liabilities occurred).&#160;

Borrower, and to the extent not paid by Borrower within fifteen (15)

calendar days after demand Lender within thirty (30) calendar days after

demand, will indemnify Regulus and Wells Fargo against any Losses and

Liabilities suffered or incurred by Regulus or Wells Fargo as a result of third

party claims to the extent such Losses and Liabilities exceed the liability

limitations specified in the preceding sentence.&#160; The limitation of Regulus&#146; liability and Borrower&#146;s and Lender&#146;s

indemnification of Regulus set forth above shall not be applicable to the

extent any Losses and Liabilities of any party to this Agreement are directly

caused by Regulus&#146; gross negligence or willful misconduct.&#160; The limitation of Wells Fargo&#146;s liability

and Borrower&#146;s and Lender&#146;s indemnification of Wells Fargo set forth above

shall not be applicable to the extent any Losses and Liabilities of any party

to this Agreement are directly caused by Wells Fargo&#146;s gross negligence or

willful misconduct.&#160; IN NO EVENT WILL

REGULUS, WELLS FARGO OR LENDER BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL,

INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES, WHETHER ANY CLAIM IS BASED ON

CONTRACT OR TORT, WHETHER THE LIKELIHOOD OF SUCH DAMAGES WAS KNOWN TO REGULUS,

WELLS FARGO OR LENDER, AND REGARDLESS OF THE FORM OF THE CLAIM OR ACTION,

INCLUD&#173;ING, BUT NOT LIMITED TO, ANY CLAIM OR ACTION ALLEGING GROSS NEGLIGENCE,

WILL&#173;FUL MISCONDUCT, FAILURE TO EXERCISE REASONABLE CARE OR FAILURE TO ACT IN

GOOD FAITH.&#160; Any action against Regulus

or Wells Fargo by Borrower or Lender under or related to this Agreement or the

Lockbox Service or the Collection Account Service must be brought within twelve

(12) months after the cause of action accrues.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">AMENDMENTS,

SUCCESSORS AND ASSIGNS</font></u></b>.&#160;

With the exception of price changes, which require written notice to

Borrower and Lender, and changes to the funds transfer instructions in Section

9 of this Agreement, which require the written approval of only Lender, this

Agreement, including the Processing Procedures, may not be modified or any

provision thereof waived, except in a writing signed by all the parties to this

Agreement.&#160; This Agreement shall be

binding on the parties and their successors or assigns.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">TERMINATION</font></u></b>.&#160; This Agreement, the Lockbox Service, and the

other services to be provided under this Agreement may be terminated by Lender,

Regulus or Wells Fargo at any time by any of them giving thirty (30) calendar

days prior written notice of such termina&#173;tion to the other parties to this

Agreement at their contact addresses specified at the end of this Agreement;

provided, however, that this Agree&#173;ment, the Lockbox Service, the Collection

Account Service, and the other services to be provided under this Agreement may

be terminated immediately (a) upon written notice from Regulus or Wells Fargo

to the other and to Borrower and Lender should Lender fail to make any payment

when due to Regulus or Wells Fargo under the terms of this Agreement, or (b)

upon written confirmation by Regulus or Wells Fargo to the other and to Lender

of receipt by Regulus or Wells Fargo, as the case may be, of written notice

from Lender requesting immediate termination of this Agreement.&#160; Borrower and Lender agree that the Lender

Account may be closed as provided in the Account Documentation.&#160; The rights of </font></h2>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='8',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Regulus

and Wells Fargo and the obligations of Borrower and Lender under Sections 6,

16, 18, 19, 20, 21 and 23 of this Agreement will survive the termination of

this Agree&#173;ment and/or the closure of the Lender Account, and any liability of

any party to this Agreement, as determined under the provisions of this

Agreement, with respect to acts or omissions of such party prior to such

termina&#173;tion or closure will also survive such termination or closure.&#160; Upon any such termination or closure, (a)

Regulus will close the Lockbox, (b) Regulus will dispose of the mail addressed

to the Lockbox in the manner instructed by Lender for a period of three months

after the termination date, unless arranged otherwise between Lender and

Regulus, with Regulus&#146; fees with respect to such disposition being prepaid

directly to Regulus at the time of such termination by a check made payable to

&#147;Regulus&#148;, and (c) all ledger balances in the Lender Account on the date of the

closure of the Lender Account will be transferred to Lender as requested by

Lender in writing to Wells Fargo.&#160;

Notice of termination shall be transmitted by Certified Mail, Return

Receipt Requested, courier, or by personal delivery to the notice address

designated at the end of this Agreement.&#160;

No such termination shall impair the rights of any party with respect to

items processed prior to the effective date of termination.&#160; Borrower may not terminate this Agreement

without prior written consent of Lender.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">NOTICES</font></u></b>.&#160; All notices from one party to another shall

be in writing, or be made by a tele&#173;communica&#173;tions device capable of creating

a written record, shall be delivered to Borrower, Lender, Regulus and/or Wells

Fargo at their addresses for all notices specified at the end of this

Agreement, or any other address of any party notified to the other parties in

writing, and shall be effective upon receipt.&#160;

Any notice sent by one party to this Agreement to another party shall

also be sent to the other parties to this Agreement.&#160; Regulus and Wells Fargo are authorized by Borrower and Lender to

act on any instructions and notices received by Regulus or Wells Fargo if (a)

such instructions or notices purport to be made in the name of Lender, (b) Regulus

or Wells Fargo reasonably believes that they are so made, and (c) they do not

conflict with the terms of this Agree&#173;ment, including, but not limited to, the

Processing Procedures, as such terms may be amended from time to time, unless

such conflicting instructions or notices are supported by a court order.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">USURY</font></u></b>.&#160; It

is never the intention of Wells Fargo or Regulus to violate any applicable

usury or interest rate laws.&#160; Wells

Fargo does not agree to, or intend to contract for, charge, collect, take,

reserve or receive (collectively, &#147;charge or collect&#148;) any amount in the nature

of interest or in the nature of a fee, penalty or other charge which would in

any way or event cause Wells Fargo to charge or collect more than the maximum

Wells Fargo would be permitted to charge or collect by any applicable federal

or state law.&#160; Regulus does not agree

to, or intend to contract for, charge or collect any amount in the nature of

interest or in the nature of a fee, penalty or other charge which would in any

way or event cause Regulus to charge or collect more than the maximum Regulus

would be permitted to charge or collect by any applicable federal or state

law.&#160; Any such excess interest or

unauthorized fee shall, notwithstanding anything stated to the contrary in this

Agreement, be applied first to reduce the amount owed, if any, and then any

excess amounts will be refunded.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">SUCCESSORS

AND ASSIGNS</font></u></b>.&#160; Neither

Borrower nor Lender may assign or transfer its rights or obligations under this

Agreement to any person or entity without the prior written consent of Regulus

and Wells Fargo, which consent will not be unreasonably withheld.&#160; </font></h2>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='9',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither

Wells Fargo nor Regulus may assign its rights or obligations under this

Agreement to any person or entity without the prior written consent of Lender,

which consent will not be unreasonably withheld; provided, however, that no

such consent will be required if, in the case of Wells Fargo, the assignee is a

bank affiliate of Wells Fargo or, in the case of Regulus, the assignee is a

subcontractor hired by Regulus to perform some or all of the Remittance

processing obligations of Regulus under this Agreement.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">GOVERNING

LAW</font></u></b>.&#160; Borrower and Lender

understand that Regulus&#146; provision of the Lockbox Service and Wells Fargo&#146;s

provision of the Collection Account Service and the other services it is to

provide under this Agreement are subject to federal laws and regulations.&#160; To the extent that such federal laws and

regulations are not applicable, this Agreement shall be governed by and be

construed in accordance with the laws of the State of California.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">SEVERABILITY</font></u></b>.&#160; To the extent that this Agreement, the

Lockbox Service or the other services to be provided under this Agreement are

inconsistent with, or prohibited or unenforceable under, any applicable law or

regulation, they will be deemed ineffective only to the extent of such

prohibition or unenforceability and be deemed modified and applied in a manner

consistent with such law or regulation.&#160;

Any provision of this Agreement which is deemed unenforceable or invalid

in any jurisdiction shall not affect the enforceability or validity of the

remaining provisions of this Agreement or the same provision in any other

jurisdiction.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ENTIRE

AGREEMENT</font></u></b>.&#160; This

Agreement, together with the Account Documentation, contains the entire and

only agreement among any or all of the parties to this Agreement with respect

to (a) the services to be provided by Regulus and Wells Fargo under this Agreement,

(b) the interest of Lender and Borrower in the Remittances, the Lockbox, the

Account Funds and the Lender Account, and (c) the obligations of Regulus and

Wells Fargo to Lender and Borrower in connection with the Remittances, the

Lockbox, the Account Funds and the Lender Account, except that Lender and

Borrower may have one or more agreements between themselves concerning such

subject matter, which shall not be binding on, or affect Regulus or Wells Fargo

in any way, and with which neither Regulus nor Wells Fargo need be concerned.</font></h2>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='10',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement has been signed by the duly authorized

officers or representatives of each of the parties to this Agreement on the

date specified below.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE: October &nbsp;&nbsp;&nbsp;&nbsp;, 2002.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender Account: Account&#160; No.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,

ABA No. <b><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower Account: Account&#160; No.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,

ABA No. <b><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REGULUS

  WEST LLC</font></b></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WELLS

  FARGO BANK MINNESOTA,<br>

  NATIONAL ASSOCIATION</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for all Notices:</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for all Notices:</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="10%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:10.98%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>

  </td>

  <td width="34%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:34.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:10.94%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>

  </td>

  <td width="35%" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:35.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="10%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:10.98%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:</font></p>

  </td>

  <td width="34%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:34.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:10.94%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:</font></p>

  </td>

  <td width="35%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:35.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="10%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:10.98%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:</font></p>

  </td>

  <td width="34%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:34.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="10%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:10.94%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:</font></p>

  </td>

  <td width="35%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:35.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WELLS

  FARGO BUSINESS CREDIT, INC.</font></b></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DIGITAL

  ANGEL CORPORATION</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael L. Guillou</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Randolph K. Geissler</font></p>

  </td>

 </tr>

 <tr>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assistant Vice President</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.38%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>

  </td>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.66%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for all Notices:</font></u></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for all Notices:</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MAC N9312-040</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">490 Villaume Avenue</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sixth and Marquette</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">St. Paul, MN 55075-2443</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Minneapolis, MN&#160;

  55479</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;

  James P. Santelli</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;

  Michael L. Guillou</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:&#160;

  (651) 455-0413</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:&#160;

  (612) 673-8589</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (651) 455-1621</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (612) 673-8535</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for Advice of Deposits and Statements:</font></u></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address for Advice of Deposits and Statements:</font></u></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MAC N9312-040</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">490 Villaume Avenue</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sixth and Marquette</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">St. Paul, MN 55075-2443</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Minneapolis, MN&#160;

  55479</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;

  James P. Santelli</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;

  Michael L. Guillou</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:&#160;

  (651) 455-0413</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (612) 673-8589</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (651) 455-1621</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.9%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:&#160;

  (612)&#160; 673-8535</font></p>

  </td>

  <td width="8%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:8.06%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.04%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="0">

  <td width="45" style="border:none;"></td>

  <td width="22" style="border:none;"></td>

  <td width="213" style="border:none;"></td>

  <td width="49" style="border:none;"></td>

  <td width="45" style="border:none;"></td>

  <td width="22" style="border:none;"></td>

  <td width="214" style="border:none;"></td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<div align="center">



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.72%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[Account

  Restricted Right Away]</font></b></p>

  </td>

  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.56%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.72%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A</font></u></b></p>

  </td>

 </tr>

</table>



</div>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHOLESALE LOCKBOX

PROCESSING PROCEDURES</font></u></b></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">THESE ARE THE PROCESSING

PROCEDURES FOLLOWED BY<br>

REGULUS WEST LLC IN PERFORMING ITS LOCKBOX SERVICE.<br>

TERMS USED IN THESE PROCEDURES WILL HAVE THE MEANINGS<br>

GIVEN TO THEM IN THE LOCKBOX AND COLLECTION ACCOUNT AGREEMENT</font></b></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DISPOSITION

OF REMITTANCE MATERIALS</font></u></b>.&#160;

On each day that Regulus offers the Lockbox Service (a &#147;Business Day&#148;),

Regulus will collect from the Lockbox the envelopes and other contents of the

Lockbox.&#160; Regulus will open the

envelopes and inspect any Remittances, Remittance statements, invoices,

correspondence, checks, cash, papers, documents and other items in the

envelopes.&#160; Unless otherwise requested

by Lender and agreed to by Regulus, if cash is sent to the Lockbox with any

materials sent to the Lockbox (&#147;Remittance Materials&#148;), the cash will be

removed from the envelope containing the Remittance Materials and a credit

advice of the amount of the cash will be placed in such envelope with the

remainder of the envelope&#146;s contents.&#160;

Except as otherwise specifically provided in these Procedures or in the

Lockbox and Collection Account Agreement signed by Lender (the &#147;Agreement&#148;), or

as specifically requested by Lender and agreed to by Regulus, Regulus will not

reconcile the checks, cash or other items in the envelopes to invoices, to Remittance

statements or to any other documents or papers in the envelopes or

elsewhere.&#160; After inspection, Regulus

will process the checks and any cash in the envelopes as provided in this

Section 1 and in Section 2 of these Procedures and, if provided in this Section

1 or Section 2, deposit such checks and cash in the Lender Account.</font></h2>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CHECKS NOT TO BE DEPOSITED</font></u></b>.&#160; Unless otherwise requested by Lender and

agreed to by Regulus, Regulus will not deposit checks falling into any of the

following five cate&#173;go&#173;ries or checks which Lender has specifically instructed

Regulus in writing not to deposit:</font></h3>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">UNACCEPTABLE PAYEES</font></u></b>.&#160; Checks where the name or designation of the

payee on the check is not the name or designation specified as provided in

these Procedures by Lender in writing to Regulus for acceptable payees or a

reasonable variation of such name or designation.</font></h4>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">POSTDATED AND STALEDATED CHECKS</font></u></b>.&#160; Checks which are postdated three or more

days after the date they are collected from the Lockbox, postdated checks that

would not be paid on presentation, and checks dated six months or more prior to

the date they are collected from the Lockbox.</font></h4>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">INDETERMINABLE AMOUNT</font></u></b>.&#160; Checks where the correct amount of the check

cannot be determined from the check and the documents accompanying the check or

where the numerical and written amounts of the check are not the same and the

envelope containing the check did not contain an invoice </font></h4>



<h4 align="center" style="font-weight:normal;margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="margin:0in 0in 12.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or a remittance statement or, if such were included,

the amount of such invoice or remittance statement did not match either the

numerical or written amount on the check.</font></h4>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">UNIDENTIFIED DRAWER</font></u></b>.&#160; Checks which do not bear the drawer&#146;s

signature.</font></h4>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ALTERATIONS</font></u></b>.&#160; Checks with alterations; provided, however, that Regulus can only

use its best efforts to catch such alterations and prevent deposits.&#160; As a result, Regulus will have no liability

whatsoever, despite anything to the contrary in the Agreement, for its deposit

of any check containing an alteration, unless such deposit results directly

from the willful misconduct of Regulus&#146; officers or employees.</font></h4>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CHECKS TO BE DEPOSITED</font></u></b>.&#160; Unless Lender specifies otherwise in writing

to Regulus, checks which do not fall into one of the five categories listed in

Section 1(a) above will be deposited as provided in Section 2 below in the

Lender Account, and checks falling into either of the following two categories

will be deposited in the Lender Account after being processed as provided

below, unless they also fall into one of the five categories listed in Section

1(a) above, in which case they will not be deposited.</font></h3>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DISCREPANCIES IN AMOUNT</font></u></b>.&#160; Checks where the numerical and written

amounts of the check are not the same, in which case the amount deposited will

be that amount which corresponds to the amount on the invoice or Remittance

statement enclosed in the envelope with the check.&#160; If the numerical and written amounts on any check are the same,

but do not correspond to the amount on the invoice or Remittance state&#173;ment

enclosed in the envelope with the check, the check amount will be deposited.</font></h4>



<h4 style="font-weight:normal;margin:0in 0in 12.0pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">MISSING DATE</font></u></b>.&#160; Checks which are not dated, in which case the check will be

deposited after being dated by Regulus as of the date it is collected from the

Lockbox.</font></h4>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">RESTRICTIVE NOTATIONS</font></u></b>.&#160; Checks bearing restrictive notations, such

as &#147;Paid in Full,&#148; will be handled on a best efforts basis in accordance with

the written request of Lender as agreed to by Regulus.&#160; As Regulus can only use its best efforts to

comply with such instructions, Regulus will have no liability whatsoever,

despite anything to the contrary in the Agreement, for its failure to comply

with such instructions, unless such failure results directly from the willful

misconduct of Regulus&#146; officers or employees.</font></h3>



<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">FOREIGN CHECKS</font></u></b>.&#160; Checks drawn on a foreign bank or in a

currency other than United States dollars may, at Regulus&#146; sole discretion, be

deposited.</font></h3>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\C2\jgarceau\5733_1\t_855435\j5733_ex10d4.htm',USER='jgarcea',CD='Oct 30 21:54 2002' -->
<br clear="all" style="page-break-before:always;">

</font>



<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DEPOSITS

OF CHECKS AND CASH</font></u></b>.&#160;

During each Business Day which is also a Banking Day Regulus will make

deposits of the acceptable checks and cash received in the Lockbox by crediting

the Lender Account for the amount of such checks and cash.&#160; Except as otherwise specifically provided in

the Agreement, the normal and customary laws, rules, practices and procedures

for handling deposits to checking accounts will apply to these Procedures and

the Lockbox Service.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">ADVICE OF

DEPOSITS</font></u></b>.&#160; Regulus will

notify Lender and Borrower of each credit to the Lender Account by sending

Lender and Borrower an advice of deposit to the Lender Account.&#160; If an advice of a deposit is inaccurate in

any way when such advice is first received by Lender or Borrower, or if an

advice of deposit for the Lender Account does not confirm a credit which should

have been made during the time period covered by such advice, the party

receiving the advice must notify Regulus of such inaccuracy or omission within

thirty (30) calendar days after the date such advice of deposit is received.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">MAILING

REMITTANCE MATERIALS TO LENDER</font></u></b>.&#160;

Unless otherwise specified by Lender in writing to Regulus, (a) if an

envelope sent to the Lockbox contains cash or checks which are deposited,

Regulus will mail such envelope and the Remittance Materials enclosed in such

envelope, including, but not limited to, photocopies, computer listings and

deposit advices, to Borrower; and (b) if an envelope sent to the Lockbox

contains checks which are not deposited, or no cash or checks at all, Regulus

will mail such envelope and the Remittance Materials and any checks in such

envelope to Lender.&#160; On a Banking Day

when Regulus collects no cash or checks from the Lockbox, Regulus will send a

statement to that effect to Lender and Borrower if Lender and/or Borrower so

requests in writing.</font></h2>



<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">CHANGES

IN NAMES OR DESIGNATIONS OF PAYEES</font></u></b>.&#160; Borrower may at any time upon ten (10) calendar days prior

written notice to Regulus request that a name or designation on the list of

acceptable payees sent to Regulus be deleted or added, and Regulus will add or

delete the name or designation if the request is acceptable to Regulus and is

approved by Lender in writing.&#160; Listed

below are the acceptable payees as directed by Lender:</font></h2>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="32%" style="border-collapse:collapse;width:32.02%;">

 <tr>

  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Digital

  Angel Corporation</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





<div style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



</div>



</body>



</html>

</TEXT>
</DOCUMENT>
