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THIRD AMENDMENT TO REVOLVING CREDIT AND TERM LOAN AGREEMENT

Third Amendment dated as of February  , 2000 to Revolving Credit and Term Loan Agreement (the "Third Amendment"), by and
amongFARGO ELECTRONICS, INC., a Minnesota corporation (the "Borrower"),FARGO ELECTRONICS
HOLDINGS, LLC, a Delaware limited liability company ("Holdings"), andBANKBOSTON, N.A.and the other lending
institutions listed onSchedule 1to the Credit Agreement (as hereinafter defined) (the "Banks"), amending certain provisions of
the Revolving Credit and Term Loan Agreement dated as of February 18, 1998 (as amended and in effect from time to time, the "Credit Agreement") by and among the Borrower, Holdings, the Banks
andBANKBOSTON, N.A., as agent for the Banks (the "Agent"). Terms not otherwise defined herein which are defined in the Credit Agreement
shall have the same respective meanings herein as therein.

WHEREAS, the Borrower and the Banks have agreed to modify certain terms and conditions of the Credit Agreement as specifically set
forth in this Third Amendment;

NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

§1.  Amendment to §1 of the Credit Agreement.The definition of "Applicable
Margin" contained in §1.1 of the Credit Agreement is hereby amended by inserting immediately after the table set forth in such definition the following:



|Leverage Ratio                                             |  | Base Rate A Loans |   | Eurodollar Rate A Loans |   | Base Rate B Loans |   | Eurodollar Rate B Loans |   | Letter of Credit Fee |   | Commitment Fee Rate |  
|---------------------------------------------------------- |  | ----------------- | - | ----------------------- | - | ----------------- | - | ----------------------- | - | -------------------- | - | ------------------- | -
|Greater than or equal to 2.00:1.00                         |  | 1.50              | % | 2.50                    | % | 2.00              | % | 3.00                    | % | 2.50                 | % | 0.50                | %
|Less than 2.00:1.00 but greater than or equal to 1.50:1.00 |  | 1.00              | % | 2.25                    | % | 2.00              | % | 3.00                    | % | 2.25                 | % | 0.50                | %
|Less than 1.50:1.00                                        |  | 0.50              | % | 1.75                    | % | 2.00              | % | 3.00                    | % | 1.75                 | % | 0.375               | %

§2  Amendment to §4 of the Credit Agreement.Section 4.3.4. of the Credit
Agreement is hereby amended by deleting §4.3.4 in its entirety and restating it as follows:



§3  Amendment to §11 of the Credit Agreement.Section 11.1 of the Credit
Agreement is hereby amended by deleting §11.1 in its entirety and restating it as follows:



|Period                            |  | Ratio    
|--------------------------------- |  | ---------
|Closing DateMarch 31, 2000       |  | 4.50:1.00
|April 1, 2000June 30, 2000       |  | 4.25:1.00
|July 1, 2000September 30, 2000   |  | 4.00:1.00
|October 1, 2000December 31, 2000 |  | 3.75:1.00
|January 1, 2001March 31, 2001    |  | 3.50:1.00
|April 1, 2001June 30, 2001       |  | 3.25:1.00
|July 1, 2001September 30, 2001   |  | 3.00:1.00
|October 1, 2001December 31, 2001 |  | 2.75:1.00
|January 1, 2002March 31, 2002    |  | 2.50:1.00
|April 1, 2002September 30, 2002  |  | 2.25:1.00
|any time thereafter               |  | 2.00:1.00



|Period                                                                                        |  | Ratio    
|--------------------------------------------------------------------------------------------- |  | ---------
|Date of consummation of the Borrower's Initial Public Offering
(the "IPO Date")June 29, 2001 |  | 2.50:1.00
|at any time thereafter                                                                        |  | 2.00:1.00

§4.  Conditions to Effectiveness.This Third Amendment shall not become effective until the
Agent receives a counterpart of this Third Amendment, duly executed by the Borrower, Holdings, and the Majority Banks.

§5.  Conditions Subsequent.The Borrower hereby agrees that, in the event the Borrower does
not consummate its Initial Public Offering by March 1, 2000, the Borrower shall pay to the Agent on March 1, 2000, for the pro rata accounts of the Banks, an amendment fee in the amount
of $66,375. Any failure by the Borrower to comply with the covenant contained in this §6 shall constitute an immediate Event of Default under the Credit Agreement.

§6.  Representations and Warranties.The Borrower and Holdings each hereby repeat, on and as
of the date hereof, each of the respective representations and warranties made by them in §8 of the Credit Agreement (except to the extent of changes resulting from transactions
contemplated or permitted by this Third Amendment, the Credit Agreement and the other Loan Documents and changes occurring in the ordinary course of business that singly or in the aggregate are not
materially adverse, and to the extent that such representations and warranties relate expressly to an earlier date),provided, that all references
therein to the Credit Agreement shall refer to such Credit Agreement as amended hereby. In addition, the Borrower and Holdings each hereby represent and warrant that the respective execution and
delivery by the Borrower and Holdings of this Third Amendment and the respective performance by the Borrower and Holdings of all of their respective agreements and obligations under the Credit
Agreement as amended hereby are within the respective corporate authority of the Borrower and Holdings and have been duly authorized by all necessary corporate action on the part of each of the
Borrower and Holdings.

§7.  Ratification, Etc.Except as expressly amended hereby, the Credit Agreement and all
documents, instruments and agreements related thereto, including, but not limited to the Security Documents, are hereby ratified and confirmed in all respects and shall continue in full force and
effect. The Credit Agreement and this Third Amendment shall be read and construed as a single agreement. All references in the Credit Agreement or any related agreement or instrument to the Credit
Agreement shall hereafter refer to the Credit Agreement as amended hereby.

§8.  No Waiver.Nothing contained herein shall constitute a waiver of, impair or otherwise
affect any Obligations, any other obligation of the Borrower or Holdings or any rights of the Agent or the Banks consequent thereon.

§9.  Counterparts.This Third Amendment may be executed in one or more counterparts, each of
which shall be deemed an original but which together shall constitute one and the same instrument.

§10.  Governing Law.THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (WITHOUT REFERENCE TO CONFLICT OF LAWS).

IN WITNESS WHEREOF,the undersigned have duly executed this Credit Agreement as a sealed instrument as of the date first set forth
above.

| |  | FARGO ELECTRONICS, INC.        
| |  | -------------------------------
| |  | By:                            
| |  |                                
| |  | FARGO ELECTRONICS HOLDINGS, LLC
| |  | By:                            
| |  |                                
| |  | BANKBOSTON, N.A.               
| |  | By:                            
| |  |                                
| |  | U.S. BANK, N.A.                
| |  | By:                            
| |  |                                

| |  | IMPERIAL BANK                    
| |  | ---------------------------------
| |  | By:                              
| |  |                                  
| |  | FIRST SOURCE FINANCIAL LLC       
| |  | By:                              
| |  |                                  
| |  | LASALLE BANK NATIONAL ASSOCIATION
| |  | By:                              
| |  |                                  



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