<PAGE>
                                                                   Exhibit 10.44

                        SEPARATION AGREEMENT AND RELEASE

        This Separation Agreement and Release (the "Agreement") is entered into
by and between Identix Incorporated ("Identix") and Valerie Lyons ("Employee")
(each, a "Party" and together, "the Parties").

                                    RECITALS

        Employee is party to an existing Employment Agreement dated as of August
22, 2001 between Employee and Identix (the "Employment Agreement").

        Identix and Employee mutually agree that Employee shall separate from
the employment of Identix on the terms set forth below.

                                    AGREEMENT

        The Parties agree as follows:

1.      Employee hereby resigns her employment with Identix effective as of July
        28, 2002 (the "Termination Date"). To the extent Employee currently
        holds any positions as an officer or director of Identix or any of its
        subsidiaries, joint ventures or affiliates, Employee hereby resigns from
        any and all such positions, effective as of the Termination Date.

2.      Contingent on Employee's compliance with her undertakings under this
        Agreement, Identix shall pay Employee, on the Termination Date or on the
        Effective Date of this Agreement, whichever is later, the gross sum of
        four hundred thousand dollars and no cents ($400,000.00) in a lump sum,
        less all appropriate taxes, withholdings and deductions. Employee shall
        submit appropriate documentation for reimbursement of outstanding
        business expenses no later than 15 days prior to the Termination Date,
        and Identix shall pay on or before the Termination Date all reasonable,
        documented and appropriate business expenses so submitted pursuant to
        the standard expense reimbursement policies of Identix. Notwithstanding
        the foregoing, Employee shall submit appropriate documentation for
        reimbursement of outstanding business cellular phone expenses as
        promptly as practicable after the Termination Date and Identix shall pay
        all reasonable, documented and appropriate business cellular phone
        expenses so submitted pursuant to the standard expense reimbursement
        policies of Identix.

3.      Identix shall pay Employee, on the Termination Date or on the Effective
        Date of this Agreement, whichever is later, the cash equivalent of 12
        months' of medical and dental COBRA insurance premiums for Employee and
        her dependents, less all appropriate taxes, withholdings and deductions,
        if any.

4.      Identix shall pay Employee, on the Termination Date or on the Effective
        Date of this Agreement, whichever is later, the cash equivalent of 12
        months' of term life insurance premiums for Employee (based on such
        premiums for Employee in effect prior to the Termination Date), less all
        appropriate taxes, withholdings and deductions, if any.

5.      The options to purchase Common Stock granted to Employee by Identix
        identified on Attachment A hereto, which Employee agrees and
        acknowledges are all of the options to which Employee is entitled, shall
        fully vest on the Termination Date, and notwithstanding any provision of
        any relevant stock option agreement or stock option plan to the
        contrary, Employee shall have 12 months from the Termination Date to
        exercise such options.


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6.      Prior to or on the Termination Date, Identix shall pay to Employee all
        regular salary earned, and payment for all accrued and unused vacation
        through the Termination Date, less all appropriate taxes, withholdings
        and deductions. Identix shall also pay Employee, on the Termination Date
        or the Effective Date of this Agreement, whichever is later, $50,000,
        less all appropriate taxes, withholdings and deductions, representing
        all bonus payments claimed by Employee to have accrued through the
        Termination Date. Employee agrees and acknowledges that Identix makes
        payment of this amount in part as a compromise of claims and without
        prejudice to the methodology or calculation of the any claimed or
        accrued bonus amounts of other Identix sales personnel. Employee
        acknowledges that, except as provided herein, Employee shall receive no
        payments, wages, bonuses or benefits from Identix after the Termination
        Date.

7.      Subject to payment and provision of the consideration described above,
        Employee, for herself and for each of her representatives, heirs,
        successors and assigns, does hereby release, acquit and forever
        discharge Identix its affiliates, subsidiaries, divisions and related
        companies, and its past, present and future employees, agents,
        attorneys, officers, directors, shareholders, partners, heirs,
        executors, administrators, insurers, successors and assigns (all
        hereinafter "Releasees") from and against any and all claims, rights,
        demands, actions, obligations, liabilities and causes of action, whether
        asserted or unasserted, of any and every kind, nature and character
        whatsoever, that she may now have or has ever had against Releasees, or
        any of them, including those related to the termination of employment,
        the prior lack of such employment, or any claims of discrimination,
        harassment or retaliation, including but not limited to claims arising
        under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
        1991, 42 U.S.C. Section 1981, the Age Discrimination in Employment Act,
        the Older Workers' Benefit Protection Act, the Americans With
        Disabilities Act, the Employment Retirement Income Security Act, the
        California Fair Employment and Housing Act, the Virginia Human Rights
        Act, the Virginians with Disabilities Act, and any other laws and
        regulations relating to employment, and any claims arising under any
        federal, state or local law, and all claims based upon acts or omissions
        of Releasees, or any of them, whatsoever occurring or arising up to and
        including the Termination Date.

        7.1    Employee understands and agrees that this Agreement is a full and
               final release covering all known and unknown and unanticipated
               injuries, debts, claims or damages to her that have arisen or may
               have arisen from any matters, acts, omissions or dealings
               released in Paragraph 7. Therefore, as to these matters released
               above, Employee hereby expressly waives and relinquishes any and
               all rights or benefits that she may now have, or in the future
               may have under the terms of California Civil Code Section 1542
               and any similar law of any state or territory of the United
               States. Said section provides as follows:

                      "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                      CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
                      THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIS
                      MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
                      DEBTOR."

               Employee acknowledges that she is aware that she may hereafter
               discover facts in addition to, or different from, those which she
               now knows or believes to be true,


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<PAGE>

               but it is her intention hereby, fully and finally and forever, to
               settle and to release any and all matters, disputes and
               differences, known or unknown, suspected or unsuspected, that do
               now exist, may exist or heretofore have existed with respect to
               those matters described in Paragraph 7.

        7.2    Notwithstanding the foregoing general language, the parties agree
               that the release of claims against Identix shall not extend to
               breaches of this Agreement by Identix.

        7.3    Employee represents and agrees that she has not filed and, except
               as otherwise provided by law, will not file, refile, or prosecute
               any claim, charge, grievance, complaint or action for monetary
               damages, before any local, state or federal court, arbitrator, or
               administrative agency, board or tribunal concerning any matter
               which was or could have been raised in connection with any matter
               released in this Paragraph 7. Employee agrees that she will not
               knowingly apply or reapply for employment with Identix or any of
               its affiliates.

8.      Identix, on behalf of itself and, to the extent permitted by law, its
        subsidiaries, affiliates, parent corporations or successors and, with
        regard to derivative claims only, its past and present directors,
        officers, general limited partners, agents and representatives, hereby
        agrees to release and forever discharge Employee and her executors,
        heirs, representatives and assigns, from any and all claims, debts,
        demands, accounts, judgments, rights, cause of action, equitable relief,
        damages, costs, charges, complaints, obligations, promises, agreements,
        controversies, suits, expenses, compensation, responsibility and
        liability of every kind and character whatsoever, whether in law or
        equity, based on any events or circumstances arising or occurring prior
        to the Termination Date.

        8.1    Identix understands and agrees that this Agreement is a full and
               final release covering all known and unknown and unanticipated
               injuries, debts, claims or damages that have arisen or may have
               arisen to it from any matters, acts, omissions or dealings
               released in Paragraph 8. Therefore, as to these matters released
               above, and except as provided in Paragraph 8.2 below, Identix
               hereby expressly waives and relinquishes any and all rights or
               benefits it may now have, or in the future may have under the
               terms of California Civil Code Section 1542 and any similar law
               of any state or territory of the United States. Said section
               provides as follows:

                      "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                      CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
                      THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIS
                      MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
                      DEBTOR."

               Identix acknowledges that it may hereafter discover facts in
               addition to, or different from, those which it now knows or
               believes to be true, but intends hereby, fully and finally and
               forever, to settle and to release any and all matters, disputes
               and differences, known or unknown, suspected or unsuspected, that
               do now exist, may exist or heretofore have existed with respect
               to those matters described in Paragraph 8.

        8.2    Notwithstanding the foregoing general language, the parties agree
               that the release of claims against Employee shall extend only to
               matters with regard to which


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               Employee acted in good faith and in a manner she reasonably
               believed to be in, or not opposed to, Identix' best interests,
               shall not extend to matters with regard to which Employee acted
               with willful misconduct, and further shall not extend to breaches
               of this Agreement by Employee.

9.      Also in consideration for the payments, benefits and undertakings
        provided above, Employee and Identix agree that the existence of,
        reasons for and terms of this Agreement will be held in the strictest
        confidence and will not be disclosed, directly or indirectly, to any
        person or entity, including but not limited to past, current or future
        Identix employees; provided, however, that Identix may disclose
        information that already has become public, on a "need to know" basis to
        its employees and outside the company, to regulatory agencies, as
        required by law, and to its tax advisors and attorneys; and further
        provided that Employee may disclose information that has already become
        public, and may disclose the financial terms of this Agreement as
        required by law and to her tax advisors and attorneys, on the condition
        that they agree to hold those terms in strictest confidence, and that
        Employee agrees to accept responsibility for any breach of
        confidentiality by those individuals. Employee specifically agrees that
        she will not otherwise disclose that she has received the payments or
        benefits described in this Agreement or that she received from Releasees
        any payment, money, compensation, property or expense reimbursement in
        any form or sum whatsoever under the terms of this Agreement. The
        obligations of Identix and Employee under this Agreement are contingent
        on the other party's compliance with this confidentiality provision as
        well as all of such other party's other obligations under this
        Agreement.

10.     Payment of all monies and receipt by Employee of continuing benefits
        hereunder shall be contingent on Employee (i) continuing to comply with
        all provisions of this Agreement and the Identix Proprietary Information
        and Inventions Agreement signed by Employee on April 2, 2001, a copy of
        which is attached hereto as Attachment B, and (ii) not making
        disparaging statements regarding Releasees or any of them, including but
        not limited to statements regarding management of the Company or the
        circumstances surrounding Employee's departure from Identix. Employee
        agrees that this is a material provision of the Agreement. Employee
        further agrees that the failure by Employee to adhere to the obligations
        of confidentiality under the Identix Proprietary Information and
        Inventions Agreement, through improper use or disclosure of Identix'
        confidential information or trade secrets or otherwise, would cause
        Identix significant loss, consequential damages and irreparable harm.
        The Company and Employee agree that the language set forth on Attachment
        C hereto will be included by the Company in a press release to be issued
        by the Company in due course. The language will either be in a
        stand-alone press release or in a press release dealing with additional
        subject matter, in each case in the sole discretion of Identix. The date
        and timing of the press release, whether as a stand-alone release or as
        part of additional subject matter, shall be at the sole discretion of
        the Company. Similarly, if issued as part of a press release dealing
        with additional subject matter, the balance of the subject matter
        included in the press release shall be at the Company's sole discretion.

11.     This Agreement is binding on and for the benefit of Employee and
        Releasees, and their respective heirs executors, administrators,
        successors and assigns, wherever the context requires or admits.


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<PAGE>

12.     Employee declares that prior to the execution of this Agreement, she
        apprised herself of sufficient relevant information, through sources of
        her own selection, in order that she might intelligently exercise her
        own judgment in deciding whether to execute it, and in deciding on the
        contents hereof. Employee further declares that this decision is not
        predicated on or influenced by any declarations or representations of
        the persons or entities released or any predecessors in interest,
        successors, assigns, officers, directors, Employee, attorneys, or agents
        of said entities other than as may be contained in this instrument, and
        that she is executing this Agreement voluntarily, free of any duress or
        coercion.

13.     Employee expressly states that she has read this Agreement and
        understands all of its terms and that all agreements and understandings
        between the parties are embodied and expressed herein. This Agreement is
        executed voluntarily and with full knowledge of its significance.

14.     If any provision or portion of this Agreement shall be adjudged by a
        court to be void or unenforceable, the same shall in no way affect any
        other provision of this Agreement, the application of such provision in
        any other circumstances, or the validity or enforceability of this
        Agreement.

15.     This instrument contains the entire agreement of the parties with regard
        to matters covered in it, and supersedes the Employment Agreement, and
        supersedes any other prior agreements as to those matters, with the
        exception of the Proprietary Information and Inventions Agreement dated
        April 2, 2001, Attachment B hereto, which agreement remains in full
        force and effect to the extent not inconsistent with this Agreement.
        This Agreement may not be changed or modified, in whole or in part,
        except by an instrument in writing signed by Employee and an officer of
        Identix.

16.     If any payment due Employee hereunder is due on a weekend or a bank
        holiday, then for purposes of this Agreement, such payment shall be
        deemed to be due on the next succeeding business day.

17.     Employee expressly states that she has been given 21 days in which to
        consider whether to enter into this Agreement, that Identix has advised
        her to consult with an attorney, and that she has done so. This
        Agreement does not become effective until 7 days after its execution.
        Employee understands that she may revoke this Agreement at any time
        during the 7 days after its execution. It is agreed that any such
        revocation must be received in writing by Identix' Chief Executive
        Officer within said 7-day period in order to be effective. This
        Agreement becomes effective on the 8th day following Employee's
        execution of it ("Effective Date"). All time limits refer to calendar
        days unless otherwise specified.


                                              Date
-------------------------------                     ---------------------------
Valerie Lyons

Identix Incorporated


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<PAGE>

By                                            Date
    -----------------------------                   ---------------------------


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                                  ATTACHMENT A

                              VALERIE LYONS OPTIONS

IDENTIX                                                           Page:  1
INCORPORATED
ID:  94-2842496                                                   File:  Optstmt
100 Cooper Court                                                  Date:  6/27/02
Los Gatos, CA                                                     Time:
95032                                                             1:01:14PM
ID:  ###-##-####                                                  As of 7/28/02


<TABLE>
<CAPTION>
   NUMBER     OPTION    PLAN    TYPE     GRANTED     PRICE       VESTED       UNVESTED         OUTSTANDING
               DATE
<S>           <C>       <C>     <C>     <C>         <C>          <C>          <C>              <C>
  00001006      4/2/01  2000     NQ      75,000.00  $8.2000      23,438.00    51,562.00          75,000.00
  00001138     7/26/01  1995    ISO         100.00  $4.7500         100.00         0.00             100.00
  00001305     1/29/02  1995    ISO      40,000.00  $9.9100           0.00    40,000.00          40,000.00

                                        115,100.00
       TOTAL                                     0               23,538.00    91,562.00         115,100.00
</TABLE>


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                                  ATTACHMENT B

                PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT


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<PAGE>

                                  ATTACHMENT C

If issued in stand alone release:

"Identix Incorporated announced today that Valerie Lyons, Executive Vice
President of Sales is leaving the company to pursue other opportunities. Her
departure takes effect on July 28, 2002. Ms. Lyons joined Identix in April 2001
as Executive Vice President of Sales and has been responsible for the worldwide
sales force for Identix' full range of fingerprint product offerings, launching
an enterprise sales initiative and cultivating new channel partner
relationships."

If issued as part of press release dealing with additional subject matter:

"On an unrelated matter, Identix also announced today that Valerie Lyons,
Executive Vice President of Sales is leaving the company to pursue other
opportunities. Her departure takes effect on July 28, 2002. Ms. Lyons joined
Identix in April 2001 as Executive Vice President of Sales and has been
responsible for the worldwide sales force for Identix' full range of fingerprint
product offerings, launching an enterprise sales initiative and cultivating new
channel partner relationships."

Note: In either case, if press release is issued, for any reason whatsoever,
after Termination Date, the tense of the release would be amended appropriately
to reflect past tense rather than future.


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