AMENDMENT No. 2  TO  CREDIT AGREEMENT

This Amendment No. 2 to Credit Agreement, dated as of February 14, 2002 (the "Amendment"), among
FARGO ELECTRONICS, INC., a Delaware corporation ("Company"), the financial institutions that are or may from time to time become parties hereto
(together with their respective successors and assigns, the "Banks"), LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity,
"LaSalle"), as Agent for the Banks and as the Issuing Bank, (the Banks, the Issuing Bank and the Agent being collectively referred to herein as the
"Lender Parties") to that certain Credit Agreement dated as of September 15, 2000, as amended by that certain Amendment No. 1 to Credit Agreement and Waiver, dated as of April 20,
2001, among the Company, LaSalle, in its capacities as Agent, Issuing Bank, and as a Bank, and the other Banks (as so amended, the "Original Agreement").

RECITALS:

A.
The Company has requested that the Lender Parties amend certainSectionsof the Original Agreement.

B.    Subject
to the terms and conditions of this Amendment, the Lender Parties will agree to the foregoing request of the Company.

NOW, THEREFORE,the parties agree as follows:

1.Defined Terms.All capitalized terms used in this Amendment shall, except where the context otherwise
requires, have the meanings set forth in the Original Agreement as amended hereby.

2.Amendment.The Original Agreement is hereby amended as follows:



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Extension Fee Installment
Due Date

Extension Fee Installment
AmountFebruary 14, 2002

$
50,000.00July 31, 2002

$
25,000.00October 31, 2002

$
25,000.00
"




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3.Conditions to Effectiveness.This Amendment shall become effective on the date (the "Effective Date") when,
and only when, the Agent shall have received:



4.Representations and Warranties.To induce the Lender Parties to enter into this Amendment, the Company
represents and warrants to the Lender Parties as follows:



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5.Reference to and Effect on the Loan Documents.



6.Costs, Expenses and Taxes.The Company agrees to pay on demand all reasonable costs and expenses of the
Lender Parties in connection with the preparation, reproduction, execution and delivery of this Amendment and the other documents to be delivered hereunder or thereunder, including their reasonable
attorneys' fees and legal expenses. In addition, the Company shall pay any and all stamp and other taxes and fees payable or determined to be payable in connection with the execution and delivery,
filing or recording of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to save the Lender Parties harmless from and against any and all liabilities with
respect to, or resulting from, any delay in the Company's paying or omission to pay, such taxes or fees.

7.Governing Law.    This Amendment shall be governed by and construed in accordance with the laws of the State of
Minnesota.

8.Headings.Section headings in this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose.

9.Counterparts.This Amendment may be executed in separate counterparts and by separate parties in separate
counterparts, each of which shall be an original and all of which taken together shall constitute one and the same Amendment.

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IN WITNESS WHEREOF,the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as
of the date first written above.

|                                                                   |  | FARGO ELECTRONICS, INC.                                                
|------------------------------------------------------------------ |  | -----------------------------------------------------------------------
|                                                                   |  | By:                                                                    
|                                                                   |  | Its:                                                                   
|Subscribed and sworn to before me this 14th day of February, 2002. |  |                                                                        
|/s/ Maria RotzNotary Public                                        |  |                                                                        
|                                                                   |  | LASALLE BANK NATIONAL ASSOCIATION, as
Agent, Issuing Bank and as a Bank
|                                                                   |  | By:                                                                    
|                                                                   |  | Its:                                                                   
|                                                                   |  | HARRIS TRUST AND SAVINGS BANK, as a Bank                               
|                                                                   |  | By:                                                                    
|                                                                   |  | Its:                                                                   

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Schedule 3.1

Term Loan Installments  (Amended February, 2002)

|Date               |  | Principal Installment Amount                              
|------------------ |  | ----------------------------------------------------------
|March 31, 2002     |  | $1,000,000.00                                             
|June 30, 2002      |  | $1,000,000.00                                             
|September 30, 2002 |  | $1,000,000.00                                             
|December 31, 2002  |  | $1,000,000.00                                             
|March 31, 2003     |  | $1,000,000.00                                             
|Termination Date   |  | Entire Term Loan Principal Amount Outstanding on such date

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