IDENTIX INC
EMPLOYMENT AGREEMENT - CHARLES W. ARCHER
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<DESCRIPTION>EMPLOYMENT AGREEMENT - CHARLES W. ARCHER
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<P align="left" style="font-size: 10pt">&#091;Redacted Copy&#093;


<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.62</B>



<P align="center" style="font-size: 10pt"><B>IDENTIX INCORPORATED<BR>
EMPLOYMENT AGREEMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Employment Agreement (the &#147;Agreement&#148;) is entered into as of
the 24th day of September&nbsp;2004 (the &#147;Effective Date&#148;) between Identix
Incorporated, a Delaware corporation (&#147;Identix&#148;) and Charles W. Archer
(&#147;Employee&#148;).


<P align="center" style="font-size: 10pt"><B>BACKGROUND</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identix desires to assure the services of Employee for the term of
years indicated on Schedule&nbsp;A (the &#147;Term&#148;) and Employee is willing to be
employed by Identix during such period, on the terms and subject to the
conditions set forth in this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE PARTIES AGREE AS FOLLOWS:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Duties. Employee&#146;s first date of employment with the Company
shall be October&nbsp;14, 2004 (the &#147;Start Date&#148;). From and after the Start
Date during the Term, Employee shall devote all of Employee&#146;s business
time, energy, and skill to the affairs of Identix; provided, however,
that Employee may undertake such specific additional charitable and
business activities, if any, as Identix may reasonably approve
(including, without limitation, activities for affiliates of Identix).
From and after the Start Date during the Term, Employee shall report
directly to the person indicated on Schedule&nbsp;A, or to such other person
or persons as may be selected by the Board of Directors of Identix from
time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Term of Employment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Definitions. For purposes of this Agreement the following terms
shall have the following meanings:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#147;Change in Control&#148; shall mean the occurrence of any one of the
following: (i)&nbsp;any &#147;person&#148;, as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;) (other than Identix, a subsidiary, an affiliate, or an Identix
employee benefit plan, including any trustee of such plan acting as a
trustee) is or becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3
under the Exchange Act), directly or indirectly, of securities of Identix
representing fifty percent (50%) or more of the combined voting power of
Identix&#146;s then outstanding securities; (ii)&nbsp;the election to a majority of
the seats of the Board of Directors of Identix of candidates who were not
proposed
by a majority of the Board in office prior to the time of such
election; or (iii)&nbsp;the dissolution or liquidation (partial or total) of
Identix or a sale of assets involving fifty percent (50%) or more of the
assets of Identix (other than the disposition of a subsidiary) or other
transaction or series of related transactions pursuant to which the
holders, as a group, of all of the shares of Identix


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<P align="left" style="font-size: 10pt">outstanding prior to
the merger, reorganization or other transaction hold, as a group, less
than fifty percent (50%) of the shares of Identix outstanding after the
merger, reorganization or other transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Resignation for Good Reason&#148; shall mean a voluntary resignation
of employment by Employee as a result of (i)&nbsp;a material diminution in
responsibility, (ii)&nbsp;decrease in base salary, (iii)&nbsp;an involuntary
relocation, if there has been no Change in Control, or (iv)&nbsp;in the event
of a Change in Control, an involuntary relocation required of the
Employee due to a change by Identix in the location at which the Employee
performs Employee&#146;s principal duties for Identix to a new location that
is both (A)&nbsp;outside a radius of fifty (50)&nbsp;miles from the Employee&#146;s
principal residence immediately prior to the date of the Change in
Control (the &#147;Measurement Date&#148;) and (B)&nbsp;more than thirty (30)&nbsp;miles from
the location at which the Employee performed Employee&#146;s principal duties
for Identix immediately prior to the Measurement Date, provided that
Employee notifies Identix on or prior to any such resignation of the
reason for such resignation and Identix fails to cure such event within
thirty (30)&nbsp;days thereafter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Termination For Cause&#148; shall mean termination by Identix of
Employee&#146;s employment by Identix (i)&nbsp;by reason of Employee&#146;s commission
of a felony or other conduct involving fraud or moral turpitude, (ii)&nbsp;by
reason of Employee&#146;s fraud upon, or deliberate injury or attempted injury
to Identix, (iii)&nbsp;by reason of Employee&#146;s failure to substantially
perform for Identix the normal material duties related to Employee&#146;s job
position (other than failure resulting from incapacity due to disability
or death) which failure continues for 30&nbsp;days following the Employee&#146;s
receipt of written notice of such failure to perform, specifying the
nature of the failure and the means by which it can be remedied, (iv)&nbsp;by
reason of Employee&#146;s willfully engaging in gross misconduct which is
materially and demonstrably injurious to Identix, or (v)&nbsp;by reason of
Employee&#146;s willful breach of this Agreement in any material respect..


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&#147;Termination Other Than For Cause&#148; shall mean termination by
Identix of Employee&#146;s employment by Identix (other than in a Termination
For Cause). Included within the definition of &#147;Termination Other Than
For Cause&#148; shall be (i)&nbsp;Employee&#146;s death during the Term, (ii)
termination of Employee&#146;s employment by Identix based on Employee&#146;s
failure to perform Employee&#146;s duties under this Agreement on account of
illness or physical or mental incapacity for a period of more than three
(3)&nbsp;consecutive months or (iii)&nbsp;any other involuntary termination that
does not constitute a Termination For Cause.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&#147;Voluntary Termination&#148; shall mean termination by Employee of
Employee&#146;s employment with Identix, excluding termination by reason of
Resignation for Good Reason as described in Section&nbsp;2.1(b) and
termination by reason of Employee&#146;s death or disability as described in
Section&nbsp;2.1(d).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Basic Term. The term of this Agreement shall commence on the
Effective Date and shall continue for the Term unless extended by mutual
written agreement of Employee and Identix or earlier terminated as
provided in this Agreement.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Termination For Cause. Termination For Cause may be effected by
Identix at any time during the Term and shall be effected by written
notification to Employee. Upon Termination For Cause, Employee shall be
immediately paid all accrued salary, and all accrued vacation pay, all to
the effective date of termination, but Employee shall not be paid any
other compensation or reimbursement of any kind, including, without
limitation, severance compensation or bonus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Termination Other Than For Cause or Resignation for Good Reason.
Notwithstanding anything else in this Agreement, Identix may effect a
Termination Other Than For Cause at any time after giving at least 10
days&#146; notice to Employee of such termination or pay in lieu of such
notice. Upon the effective date of any Termination Other Than For Cause
or Resignation for Good Reason, (a)&nbsp;Employee shall immediately be paid
all accrued salary, and all accrued vacation pay, all to the effective
date of termination, (b)&nbsp;as severance compensation, Employee shall
continue to be paid Employee&#146;s then current base salary for the 12&nbsp;month
severance period (&#147;Severance Period&#148;); provided, that Employee shall have
the right, exercisable in Employee&#146;s sole judgment, to be immediately
paid, in one-lump sum payment, an amount equivalent to Employee&#146;s base
salary for 12&nbsp;months, rather than receiving such amount in regular
payments over the term of the Severance Period, (c)&nbsp;Employee shall
immediately be paid all bonuses earned through the date of termination,
(d)&nbsp;during the Severance Period, Identix shall make COBRA payments to
continue Employee&#146;s medical and dental benefits (or pay Employee an
amount equivalent to such COBRA payments) and shall make payments to
continue Employee&#146;s term life insurance (or pay Employee an amount
equivalent to the premiums in effect prior to termination), and (e)&nbsp;all
options to purchase Common Stock granted to Employee by Identix, whether
prior to or after the Effective Date, shall fully vest immediately, and
notwithstanding any provision of any relevant stock option agreement or
stock option plan to the contrary, Employee shall have 12&nbsp;months from the
effective date of termination to exercise such options, but Employee
shall not be paid any other compensation or reimbursement of any kind.
If any Termination Other Than For Cause is the result of the death of
Employee, all payments payable under this Section&nbsp;2.4 shall be paid to
Employee&#146;s heirs or legal representative.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Voluntary Termination. In the event of a Voluntary Termination,
Identix shall immediately pay to Employee all accrued salary, and all
accrued vacation pay, all to the effective date of termination, but no
other compensation or reimbursement of any kind, including, without
limitation, severance compensation or bonus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Change in Control. If a Change in Control shall have occurred
during the Term, in addition to any rights Employee may have under
applicable stock option plans and/or stock option agreements with the
Company, the following shall apply:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;(i)&nbsp;If the Change in Control occurs during the first year of
this Agreement, then the Term, as indicated on Schedule&nbsp;A, shall not be
changed.


<P align="left" style="font-size: 10pt">&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;(ii)&nbsp;If the Change in Control occurs during the second year of this
Agreement, then the Term shall be extended to the first anniversary of
the Change in Control.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;(i)&nbsp;If there is a Termination Other Than For Cause or
Resignation for Good Reason within one year after a Change in Control,
and if any of the payments or benefits received or to be received by the
Employee in connection with a Change in Control or the Employee&#146;s
termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with Identix,) (all
such payments and benefits, excluding the Gross-Up Payment, being
hereinafter referred to as the &#147;Total Payments&#148;) will be subject to the
excise tax (the &#147;Excise Tax&#148;) imposed under Section&nbsp;4999 of the Internal
Revenue Code of 1986, as amended from time to time (the &#147;Code&#148;), Identix
shall pay, at the time specified in Section&nbsp;2.6(b)(iv), to the Employee
an additional amount (the &#147;Gross-Up Payment&#148;) such that the net amount
retained by the Employee, after deduction of any Excise Tax on the Total
Payments and any Federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, shall be equal to the Total
Payments.


<P align="left" style="font-size: 10pt">&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;(ii)&nbsp;For purposes of determining whether any of the Total Payments
will be subject to the Excise Tax and the amount of such Excise Tax, (A)
all of the Total Payments shall be treated as &#147;parachute payments&#148;
(within the meaning of Section&nbsp;280G(b)(2) of the Code) unless, in the
opinion of tax counsel (&#147;Tax Counsel&#148;) reasonably acceptable to the
Employee and selected by the accounting firm which was, immediately prior
to the Change in Control, Identix&#146;s independent auditor (the &#147;Auditor&#148;),
such payments or benefits (in whole or in part) should not be treated by
the courts as constituting parachute payments, including by reason of
Section&nbsp;280G(b)(4)(A) of the Code, (B)&nbsp;all &#147;excess parachute payments&#148;
within the meaning of Section&nbsp;280G(b)(l) of the Code shall be treated as
subject to the Excise Tax unless, in the opinion of Tax Counsel, such
excess parachute payments (in whole or in part) should be treated by the
courts as representing reasonable compensation for services actually
rendered (within the meaning of Section&nbsp;280G(b)(4)(B) of the Code), or
are otherwise not subject
to the Excise Tax, and (C)&nbsp;the value of any noncash benefits or any
deferred payment or benefit shall be determined by the Auditor in
accordance with the principles of Sections&nbsp;280G(d)(3) and (4)&nbsp;of the
Code. All fees and expenses of the Tax Counsel and the Auditor shall be
borne solely by Identix.


<P align="left" style="font-size: 10pt">&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;(iii)&nbsp;For purposes of determining the amount of the Gross-Up
Payment, the Employee shall be deemed to pay Federal income tax at the
highest marginal rate of Federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes
at the highest marginal rate of taxation in the state and locality of the
Employee&#146;s residence in the calendar year in which the Gross-Up Payment
is to be made, net of the maximum reduction in Federal income taxes which
could be obtained from deduction of such state and local taxes, taking
into account the reduction in itemized deduction under Section&nbsp;68 of the
Code.


<P align="left" style="font-size: 10pt">&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;(iv)&nbsp;The Gross-Up Payment shall be made upon the payment to the
Employee of the Total Payments, unless it is initially determined by
Identix or the Tax Counsel that the Total Payments are not subject to the
Excise Tax but after payment of the Total Payments, it is finally
determined following the proceedings set forth in Section&nbsp;2.6(b)(v) and
(vi)&nbsp;that the Total Payments are subject to the Excise Tax, in which case
it shall be made upon the imposition upon the Employee of the Excise Tax.


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<P align="left" style="font-size: 10pt">&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;(v)&nbsp;The Employee shall notify Identix in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment
by Identix of a Gross-Up Payment. Such notification shall be given as
soon as practicable but no later than ten (10)&nbsp;business days after the
Employee is informed in writing of such claim and shall apprise Identix
of the nature of such claim and the date on which such claim is requested
to be paid. The Employee shall not pay such claim prior to the
expiration of the thirty (30)&nbsp;day period following the date on which the
Employee gives such notice to Identix (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due).
If Identix notifies the Employee in writing prior to the expiration of
such period that it desires to contest such claim, the Employee shall:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) give Identix any information reasonably requested by Identix
relating to such claim;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) take such action in connection with contesting such claim as
Identix shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such
claim by an attorney reasonably selected by Identix and reasonably
satisfactory to the Employee;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) cooperate with Identix in good faith in order to effectively
contest such claim; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D) permit Identix to control any proceedings relating to such claim
as provided below;

<P align="left" style="font-size: 10pt">provided, however, that Identix shall bear and pay directly all costs and
expenses (including, but not limited to, additional interest and
penalties and related legal, consulting or other similar fees) incurred
in connection with such contest and shall indemnify and hold the Employee
harmless, on an after-tax basis, for any Excise Tax or other tax
(including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses.


<P align="left" style="font-size: 10pt">&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;(vi)&nbsp;Identix shall control all proceedings taken in connection with
such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option,
either direct the Employee to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Employee agrees to
prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as Identix shall determine; provided, however, that if Identix
directs the Employee to pay such claim and sue for a refund, Identix
shall advance the amount of such payment to the Employee on an
interest-free basis, and shall indemnify and hold the Employee harmless,
on an after-tax basis, from any Excise Tax or other tax (including
interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such
advance; and provided, further, that if the Employee is required to
extend the statute of limitations to enable Identix to contest such
claim, the Employee may limit this extension solely to such claim.
Identix&#146;s control of the contest shall be limited to issues with respect
to which a Gross-Up Payment would be payable


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<P align="left" style="font-size: 10pt">hereunder and the Employee
shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing
authority. In addition, no position may be taken nor any final
resolution be agreed to by Identix without the Employee&#146;s consent if such
position or resolution could reasonably be expected to adversely affect
the Employee (including any other tax position of the Employee unrelated
to the matters covered hereby).


<P align="left" style="font-size: 10pt">&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;(vii)&nbsp;In the event that the Employee receives a refund of the Excise
Tax previously paid, the Employee shall repay to Identix, within five (5)
business days following the receipt of such refund of the Excise Tax
previously paid, the amount of such refund plus any interest received by
the Employee from the Internal Revenue Service on the refund, and an
amount equal to the reduction in the Employee&#146;s Federal, state and local
income tax assuming that the repayment is deductible, using the
assumptions set forth in Section&nbsp;2.6(b)(iii). If, after the receipt by
the Employee of an amount advanced by Identix in connection with an
Excise Tax claim, a determination is made that Employee shall not be
entitled to any refund with respect to such claim and Identix does not
notify the Employee in writing of its intent to contest the denial of
such refund prior to the expiration of thirty (30)&nbsp;days after such
determination, such advance shall be forgiven and shall not be required
to be repaid.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Salary and Benefits.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Annual Base Salary. As payment for the services to be rendered
by Employee as provided in Section&nbsp;1 and subject to the terms and
conditions of Section&nbsp;2, Identix shall initially pay to Employee, from
and after the Start Date, an &#147;annual base salary&#148; at the rate indicated
on Schedule&nbsp;A, subject to deductions, payable bi-weekly in the same
manner as other Identix employees receive their base compensation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Hiring Bonus. Employee shall be paid the hiring bonus indicated
on Schedule&nbsp;A.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Annual Bonus. Employee shall be eligible for the target annual
bonus amount indicated on Schedule&nbsp;A.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Fringe Benefits. Employee shall be eligible to participate in
such of Identix&#146;s benefit plans as are now generally available or later
made generally available to employees of Identix. Such benefits shall at
a minimum include medical, dental and term life insurance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Annual Performance Review. Identix shall perform an annual
review of Employee&#146;s performance and, in the discretion of the Board of
Directors of Identix, make appropriate increases in Employee&#146;s base
salary and determine whether additional stock option grants should be
recommended to the Board of Directors of Identix.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Restrictive Covenants.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Noncompetition. During the term of Employee&#146;s employment by the
Company and for a period of two years after separation of Employee&#146;s
employment with the


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<P align="left" style="font-size: 10pt">Company for any reason, Employee will not, without
the prior written consent of the President and CEO of the Company engage
in any other employment or consulting or otherwise directly or indirectly
participate in or assist any business which is a: (i)&nbsp;then existing
competitor of the Company, or (ii)&nbsp;potential competitor of the Company,
to the extent Employee has a reasonable basis to know such business is a
potential competitor at the time of termination. This provision shall
survive and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Nonsolicitation. During the term of Employee&#146;s employment by
the Company, and for a period of two years after separation of Employee&#146;s
employment with the Company for any reason, without the prior written
consent of the President and CEO of the Company, Employee shall not
directly or indirectly solicit, recruit, encourage or induce any
employees, directors, customers, consultants, contractors or
subcontractors of the Company to leave the employ of the Company or to
terminate or alter their agreements, positions or business arrangements
with the Company, as the case may be, either on Employee&#146;s own behalf or
on
behalf of any other person or entity. This provision shall survive
and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Injunctive Relief. Employee acknowledges and agrees that
damages will not be an adequate remedy in the event of a breach of any of
the obligations under this Section&nbsp;5 and therefore agrees that the
Company shall be entitled (without limitation of any other rights or
remedies otherwise available to the Company and without the necessity of
posting a bond) to obtain an injunction from any court of competent
jurisdiction prohibiting the continuance or recurrence of any breach of
this Section&nbsp;5. This provision shall survive and expiration or
termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Confidentiality and Inventions Assignment Agreement. Upon
execution of this Agreement, Employee agrees to execute simultaneously a
copy of a Company confidentiality and inventions assignment agreement,
substantially in the form attached hereto as Exhibit&nbsp;5. This Section&nbsp;5
shall be read in conjunction with the terms of such Company
confidentiality and inventions assignment agreement and to the extent
there is a conflict that cannot otherwise be resolved, this Section&nbsp;5
shall govern.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Miscellaneous.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Waiver. The waiver of any term or condition of this Agreement
by any party shall not be construed as a waiver of a subsequent breach or
failure of the same term or condition, or a waiver of any other term or
condition of this Agreement. This provision shall survive and expiration
or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Notices. All notices, requests, demands, and other
communications made in connection with this Agreement shall be in writing
and shall be deemed to have been duly given on the date of delivery if
delivered by hand delivery or 12 hours after facsimile transmission to
the persons identified below or five days after mailing if mailed by
certified or registered mail postage prepaid return receipt requested
addressed as follows:

<P align="left" style="font-size: 10pt; margin-left: 6%">If to Identix:

<P align="left" style="font-size: 10pt; margin-left: 6%">Identix Incorporated<BR>
5600 Rowland Rd.<BR>
Minnetonka, MN 55343<BR>
Attention: James Moar<BR>
Facsimile: 952-932-7181


<P align="center" style="font-size: 10pt">7
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt; margin-left: 6%"> - with a copy to -

<P align="left" style="font-size: 10pt; margin-left: 6%">Identix Incorporated<BR>
5600 Rowland Rd.<BR>
Minnetonka, MN 55343<BR>
Attention: General Counsel &#038; Secretary<BR>
Facsimile: (952)&nbsp;979-8486

<P align="left" style="font-size: 10pt; margin-left: 6%">If to Employee:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the address indicated on Schedule&nbsp;A

<P align="left" style="font-size: 10pt">Any party may change its address for notices by notice duly given
pursuant to this Section&nbsp;6.2. This provision shall survive and
expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Headings. The headings contained in this Agreement are intended
for convenience and shall not be used to interpret the meaning of this
Agreement or to determine the rights of the parties. This provision
shall survive and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Governing Law; Consent to Jurisdiction and Venue. This
Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota to contracts entered into and wholly to be
performed within the State of Minnesota by Minnesota residents. Employee
hereby submits to the jurisdiction and venue of the state or federal
courts in the State of Minnesota, County of Hennepin, for any legal
action arising from or connected with this Agreement. Employee agrees
that service upon Employee in any such action may be made by first class
mail, certified or registered, in the manner provided for delivery of
notices in Section&nbsp;6.2. This provision shall survive and expiration or
termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Successor and Assigns. This Agreement shall be binding upon and
inure to the benefit of the executors, administrators, heirs, successors
and assigns of the parties; provided, however, that this Agreement shall
not be assignable by Identix (except in connection with the merger or
consolidation of Identix with or into another entity or the sale by
Identix of all or substantially all of its assets) or by Employee. This
provision shall survive and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Counterparts. This Agreement may be signed in counterparts with
the same effect as if the signatures of each party were upon a single
instrument. All counterparts


<P align="center" style="font-size: 10pt">8
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">shall be deemed an original of this
Agreement. This provision shall survive and expiration or termination of
this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 Withholdings. All sums payable to Employee hereunder shall be
reduced by all Federal, state, local and other withholding and similar
taxes and payments required by applicable law. This provision shall
survive and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 Severability. If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than voided, if
possible, in order to achieve the intent of the parties to the extent
possible. In any event, all other provisions of this Agreement shall be
deemed valid and enforceable to the full extent possible. This
provision shall survive and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 Entire Agreement; Modifications. Except as otherwise provided
herein, this Agreement represents the entire understanding between the
parties with respect to the subject matter hereof, and this Agreement
supersedes any and all prior understandings, agreements, plans and
negotiations, written or oral, with respect to the subject matter hereof.
All modifications to the Agreement must be in writing and signed by the
party against whom enforcement of such modification is sought, provided
that no modification shall be enforceable against Identix unless signed
by a duly authorized officer of Identix. This provision shall survive
and expiration or termination of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the day and year first above written.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3"><B>IDENTIX INCORPORATED</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3"><B>EMPLOYEE</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD>Charles W. Archer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">9
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>EMPLOYMENT AGREEMENT<BR>
SCHEDULE A</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Name and address of Employee:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Charles W. Archer</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Redacted&#093;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Federal Sector</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Term of Agreement:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Two years from the Effective Date</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Start Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee's first day of employment</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with the Company will be October</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">14, 2004</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Initial Annual Base Salary:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Redacted&#093;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Hiring Bonus:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Redacted&#093;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Annual Bonus Potential:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Redacted&#093;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Severance Period:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12 months</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">Stock Options:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:20px; text-indent:-10px">Number of Shares:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100,000</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:20px; text-indent:-10px">Stock Option Plan and Type:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As determined by officers of the Company from available stock option plans and reserves</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:20px; text-indent:-10px">Grant Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Start Date (Employee's first date of employment with the Company)</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:20px; text-indent:-10px">Exercise Price:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The closing sales price of the Company's common stock on Nasdaq on the Start Date</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:20px; text-indent:-10px">Vesting period:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">25% annually, so that in the ordinary course the granted options will be fully vested four years after the              Grant Date</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Report to: James Moar, COO</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">10
</DIV>


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