Document:

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                                                                    EXHIBIT 10.1

                     SOFTWARE LICENSE AND ROYALTY AGREEMENT

This Software License and Royalty Agreement (hereinafter " Agreement") is made
as of the 21 st day of January 2000 (hereinafter the "Effective Date") by and
between Harris Corporation, a corporation duly organized under the laws of the
State of Delaware, acting through its RF Communications Division with offices at
1680 University Avenue, Rochester, NY 14610 (hereinafter "Harris"), and Digital
Descriptor Systems Inc., a corporation duly organized under the laws of the
state of Delaware, with offices at 2010-F Cabot Boulevard West, Langhome, PA
19047 (hereinafter "DDSI").

                                    ARTICLE 1
                                  Defined Terms
                                  -------------

"Documentation" shall mean all documents, reports, instruments, memoranda or
papers, in any medium or manifestation, electronic or otherwise, including,
without limitation, research records and reports, development reports,
experimental records and reports, engineering records and reports, production
drawings, engineering drawings, board layout drawings, schematics, raw material
specifications, quality control reports and specifications, drawings,
photographs, models, simulations, test routines, test fixtures, test reports and
results, technical data, business plans, marketing studies, financial forecasts,
customer lists, books, records, view graphs and other written presentation
materials, user's manuals, databases, notes, and any other tangible information
owned or controlled by Harris, whether or not considered a Trade Secret, related
to, incorporated in or constituting the PowerMatch Technology.

"Governmental Person" shall mean the national government of any domestic or
foreign sovereign nation, and the government of any state, province, territory
or other political subdivision thereof including any agency, department, branch,
division, institution, ministry or other bureaucratic subdivision thereof.
"Harris" shall mean, collectively, Harris and any majority-owned subsidiary of
Harris.

"DDSI" shall mean, collectively, DDSI and any majority-owned subsidiary of DDSI.

"PowerMatch Product" means that PowerMatch Technology, which in combination with
other hardware and software comprise a fingerprint match engine licensed,
leased, bartered, or exchanged by DDSI as of the Effective Date including all
non-substantial improvements and derivatives thereof. Any fingerprint matching
software product designed or developed after the Effective Date, and based in
substantial part on a PowerMatch Technology, will be considered a Derivative
PowerMatch Product. Any fingerprint matching software product designed or
developed after the Effective Date and (i) uses no more than 10% of either the
PowerMatch Client Software or PowerMatch Server Software; and (ii) if it
operates in a substantially different manner or for a substantially different
purpose than a PowerMatch Product, will not be considered a PowerMatch Product
or a Derivative PowerMatch Product.

                                        1

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"PowerMatch Technology" means the PowerMatch Software in the form as it existed
at the time of delivery to DDSI. DDSI expects to develop modified versions of
the PowerMatch technology both to integrate with its own installed base of users
and to meet the needs of customers who require enhanced features not currently
supported by PowerMatch.

"PowerMatch Software" shall mean the software of Harris, in source code and
object code form, and identified as:
         (1) PowerMatch Client Software (Rev. Level 1.0); and
         (2) PowerMatch Server Software (Rev. Level 1.0).

"Product" shall mean either a PowerMatch Product or a Derivative PowerMatch
Product.

"Territory" shall mean all the countries and territories of the world.

"Total Price" means DDSI's gross invoice price for the Product packed for
shipment without any deductions, except for the following items, to the extent
they are paid or allowed by DDSI:
         (a) sales or turnover taxes on sales invoices;
         (b) transportation charges and insurance on shipments to customers;
         (c) trade or quantity discounts (but not cash discounts allowed to
         customers and not agents' commissions); and (d) credits allowed for
         PowerMatch Products returned or not accepted by customers.

(i) If a Product is included as a component of another product licensed or
leased by DDSI, then Total Price means the Total Price of such Product, as if
separately licensed or leased in an arm's length transaction or the most nearly
comparable Product that has been or would be licensed or leased in the ordinary
course of business.

(ii) When Products are licensed or leased by DDSI to any Affiliate (as that term
is defined by the Securities Act of 1933, as amended), or when Products are
bartered or exchanged for goods or services, then Total Price shall be the Total
Price at which comparable Products have been or would be licensed or leased in
the ordinary course of business.

                                    ARTICLE 2
                              Licenses & Royalties
                              --------------------

License: Harris hereby grants to DDSI a royalty bearing, worldwide,
non-exclusive right and license to use the PowerMatch Software and all
Documentation with respect to the foregoing, to make, have made, use, improve,
market and license products and to provide services solely to Governmental
Persons or to Persons whose ultimate end customers are known to DDSI to be
solely Governmental Persons in the Territory .If requested to do so in writing
by Harris in order to preserve valuable rights, and if commercially feasible,
DDSI shall use reasonable efforts to cause all products manufactured by it or
its Affiliates that are designated by Harris and that

                                        2

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incorporate or embody inventions covered by the claims of licensed patents to be
marked or labeled with appropriate references to such patents.

Royalties: DDSI shall pay to Harris a royalty of thirty percent (30%) of the
Total Price for each PowerMatch Product licensed, leased, bartered, or exchanged
by DDSI from the Effective Date. A PowerMatch Product shall be considered
licensed or leased on the date of shipment or the date of an invoice, whichever
is earlier. A PowerMatch Product shall be considered bartered or exchanged on
the date of shipment. Only one royalty shall be due for each PowerMatch Product.
This royalty obligation shall continue for the duration of this Agreement.

         DDSI shall pay to Harris a royalty of fifteen percent (15%) of the
         Total Price for each Derivative PowerMatch Product licensed, leased,
         bartered, or exchanged by DDSI from the Effective Date. A Derivative
         PowerMatch Product shall be considered licensed or leased on the date
         of shipment or the date of an invoice, whichever is earlier. A
         Derivative PowerMatch Product shall be considered bartered or exchanged
         on the date of shipment. Only one royalty shall be due for each
         Derivative PowerMatch Product. This royalty obligation shall continue
         for the duration of this Agreement.

         No royalty payments will be due on: (a) product samples, (b) evaluation
         boards, (c) products designed by and purchased from a third party and
         subsequently resold by DDSI as a component of a product, and ( d)
         non-recurring engineering funds received from a third party in return
         for the design, development or modification of a product.

         DDSI shall pay all the royalty due under this Agreement for each
         calendar quarter within forty-five (45) days after the end of such
         calendar quarter. Payment shall be addressed to the attention of :

         Controller
         Harris RF Communications Division
         1680 University Ave.
         Rochester, NY 14610

         All royalty due hereunder shall be paid in United States funds. For
         purposes of computing the Total Price and royalty on licenses in the
         international Territory , the Total Price of the royalty bearing
         Product hereunder shall first be determined in the local currency of
         the country in which licensed or leased and then converted into its
         equivalent in United States funds at the bank buying rate for such
         local currency, as published by Chemical Bank, N .A. for the last
         business day of each accounting period.

Licensing of Derivative Products: DDSI agrees that it will offer to Harris
licensing of Derivative Products which it produces on substantially the same
terms as in this Agreement, i.e., 30% royalty paid to DDSI on the Total Price
realized from the licensing or sale to an end customer, or other terms as may be
negotiated.

                                        3
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Correction of Errors: Harris and DDSI agree that errors ("bugs") in PowerMatch
Software discovered and fixed will be shared upon request by either party. No
reporting, tracking or configuration management requirements are created by this
agreement.

Governmental Withholding: Any sum required under the laws of any governmental
authority to be withheld by DDSI, its Subsidiaries or Licensees from payment for
the account of Harris shall be promptly paid by DDSI for and on behalf of Harris
to the appropriate tax or other governmental authority and DDSI shall furnish
Harris with copies of official tax receipts or other appropriate evidence issued
by the appropriate tax or other governmental authorities to enable Harris to
support a claim for tax or other credit or refund in respect of any sum so
withheld.

Records: DDSI shall keep, and shall cause DDSI Affiliates to keep, full, clear
and accurate records which are sufficient to permit determination of the
royalties due hereunder .

Quarterly Reports: Within forty-five (45) days after the end of each calendar
quarter ending on March 31st, June 30th, September 30th and December 31st,
commencing with the quarter in which the Effective Date occurs and continuing
thereafter until all royalties payable hereunder shall have been reported and
paid, DDSI shall furnish to Harris a statement showing all said Product that was
licensed, leased, bartered, or exchanged during such quarter, and the amount of
royalties payable thereon. If no Product has been licensed, leased, bartered, or
exchanged that shall be shown on such statement. DDSI shall provide the method
of calculation, along with reasonable supporting documentation, for the royalty
due.

Audit of Records: Harris shall have the right to audit the DDSI books and
records related to Products at Harris' expense, by an independent auditor. Said
audit shall be conducted during normal business hours with 5 days written
advance notice provided by Harris. The designated auditor shall retain in
confidence the information in the books of account and shall report to Harris
only the accuracy or inaccuracy of the reports rendered to Harris. If such audit
discloses that the amounts paid to Harris were understated by more than 5% in
any quarter, then DDSI shall reimburse Harris for the cost of the audit and pay
the amount of such understated royalties.

Late Payments: For any late payment, DDSI shall pay Harris interest at the prime
rate. The prime rate will be as established by Chemical Bank, N .A. on the date
the payment was due.

Trademarks: DDSI has no right to use, and agrees not to use or adopt, any mark
that is confusingly similar to any trademark owned or used by Harris or
Authentec, Inc. of Melbourne, FL.

                                        4
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                                    ARTICLE 3
                   Transfer Documentation and Other Materials
                   ------------------------------------------

Delivery. Subject to the terms of the Agreement, Harris agrees to provide DDSI
with one human or machine readable copy of all PowerMatch Technology
Documentation, including source code and object code, to the extent the same is
within the physical possession or control ofHarris. A representative of Harris'
RF Comm. Division will be responsible for identifying, assembling and delivering
such Documentation to DDSI. This representative is Director, Administration,
Secure Products Business Line, and as of the date of this Agreement is Mr. James
Yake.

Additional Transfers to DDSI. If, subsequent to the Effective Date, either party
identifies any materials that are specific to the operation of PowerMatch
Technology and not specifically delivered to DDSI, then upon written notice
thereof, Harris shall promptly deliver such specific materials to the extent
Harris is able to do so. The obligation of Harris under this Paragraph shall be
DDSI's sole remedy for any failure to identify or deliver such materials.

                                    ARTICLE 4
              Representations. Warranties & Limitations on Damages
              ----------------------------------------------------

Authority. Harris and DDSI have the authority to enter into and execute this
Agreement and to perform its obligations hereunder. This Agreement constitutes a
legal, valid and binding obligation, and is enforceable against Harris and DDSI
in accordance with its terms.

Indemnification of Harris. DDSI shall indemnify and hold harmless Harris and its
successors and assigns (collectively , the "Harris Indemnitees"), from and
against any and all damages, claims, losses, expenses, costs, obligations and
liabilities suffered or incurred by the Harris Indemnitees directly or
indirectly as a result of any injury to or death of any person, any loss or
damage to property, or any other litigation or claim by any third party relating
in any way to the manufacture, use or licensing of products that incorporate the
PowerMatch Technology by DDSI.

Limitation of Liability: HARRIS SHALL NOT BE LIABLE TO DDSI OR ANY THIRD PARTY,
WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR
OTHERWISE, FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND,
INCLUDING, BUT NOT LIMITED TO, LOSS OF ANTICIPATED PROFITS, EVEN IF HARRIS HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE.

Maximum Liability: Harris' maximum liability for damages relating to this
Agreement shall be limited to the payments made by DDSI hereunder. This Article
4 and all other paragraphs hereunder providing Harris with protection against
liability shall survive the expiration, termination, or cancellation of this
Agreement.

No Other Warranties. EXCEPT AS PROVIDED FOR IN THIS AGREEMENT, HARRIS DISCLAIMS
ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTY
OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. HARRIS
SPECIFICALL Y DISCLAIMS ANY WARRANTY OF FITNESS OR SUITABILITY OF ANY HARRIS
INVENTIONS, HARRIS PATENT APPLICATIONS, DOCUMENTATION, KNOW-HOW OR HARRIS
SOFTWARE FOR ANY PURPOSE. DDSI ACKNOWLEDGES THAT IT HAS READ AND FULL Y
UNDERSTANDS THE ABOVE DISCLAIMERS

                                       5
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                                    ARTICLE 5
                                  Miscellaneous
                                  -------------

Agency or Partnership Between Harris and DDSI. Nothing in this Agreement or any
of the transactions, obligations or relationships contemplated hereby shall, in
and of itself, constitute either Harris or DDSI as the agent, employee or legal
representative for the other for any purpose whatsoever, nor shall any party to
this Agreement hold itself out as such. This Agreement does not create and shall
not be deemed to create a relationship of partners, joint venturers, associates
or principal-and-agent between Harris and DDSI, and each of the parties hereto
acknowledges that it is acting as a principal hereunder .

Amendment: This Agreement may not be amended, supplemented or otherwise modified
except by an instrument in writing signed by both parties.

Assignment. DDSI shall not assign its rights or obligations under this
Agreement, in whole or in part, to any Person without the prior written consent
of Harris.

Confidentiality: DDSI agrees that all physical, software and contractual
security it maintains for its other software products will be maintained for the
PowerMatch Software. DDSI agrees to use its best efforts to prevent third
parties from modifying, adapting, translating, reverse engineering, decompiling,
disassembling or otherwise attempting to discover the source code of the
PowerMatch Software except as expressly permitted by this Agreement.

Costs and Expenses. Unless otherwise specified in this Agreement, each party
hereto shall bear its own costs and expenses (including, but not limited to,
attorneys' fees) in connection with the negotiation, preparation, execution,
delivery and performance of this Agreement, and the consummation of the
transactions contemplated hereby.

Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original and all of which, taken together, shall
constitute one and the same instrument.

Entire Understanding: This Agreement sets forth the entire understanding between
Harris and DDSI pertaining to its subject matter and supersedes and replaces all
prior oral or written agreements between Harris and DDSI pertaining to such
subject matter.

                                        6
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Governing Law: This Agreement shall be governed by and interpreted under the
laws of the State of Florida and the Florida courts, without regard to choice of
laws. The forum for any dispute shall be limited to a Florida court having
subject matter jurisdiction and closest to Melbourne, Florida.

Notices: Any notice required or permitted hereunder shall be given in writing by
personal delivery or by registered or certified mail, return receipt requested,
postage prepaid, and, if sent by mail, shall be effective upon delivery to the
following addresses:

                   Corporate Secretary
                   Harris Corporation
                   1025 West NASA Boulevard
                   Melbourne, Florida 32919

                   With a copy to:
                   ---------------
                                    Director
                                    Secure Products Business Unit
                                    Harris Corporation, RF Comm. Division
                                    1680 University Avenue
                                    Rochester, NY 14610

                   President
                   Digital Descriptor Systems Inc.
                   2010- F Cabot Boulevard West
                   Langhorne, P A 19047

Severability: If any provision of this Agreement is held by a court of competent
jurisdiction to be illegal, invalid or unenforceable under present or future
laws effective during the term hereof, such provisions shall be fully severable,
and this Agreement shall be construed and enforced as if such illegal, invalid
or unenforceable provision never comprised a part hereof, and the remaining
provisions shall remain in full force and effect and shall not be affected by
the illegal, invalid or unenforceable provision or by its severance.
Furthermore, in lieu of such illegal, invalid or unenforceable provision, there
shall be added automatically as part of this Agreement a provision as similar in
its terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable.

Termination: This Agreement may be terminated at any time by mutual agreement of
the parties or may be terminated by either party with eighteen (18) months
notice to the other party. In addition, Harris may terminate the agreement if
DDSI breaches its obligations to pay royalties due hereunder with 90 (ninety)
days notice. However, should DDSI fully pay all royalties due at that time
within the 90-day notice period, then DDSI shall have cured the breach and this
Agreement shall not terminate. Any PowerMatch customer licensing agreements
entered into by DDSI and for which Harris has been paid all royalties due will
remain in effect and not be revoked by termination of this Agreement.

                                        7
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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

HARRIS CORPORATION                          DIGITAL DESCRIPTOR SYSTEMS INC.

By:                                         By:
   ------------------------------              ---------------------------------
Name: Chris Fedde                           Name: Garrett Cohn
Title: Director, Secure Products            Title: President and C.E.O.

                                       8<PAGE>

                                                                    EXHIBIT 10.2
  Classification
   RESTRICTED                      DDSI Offer No. 980519           ISC
--------------------------------------------------------------------------------

                                                                Offer No. 980519
                                                                Development of a
                                                                     Finger/Slap
                                                                 Scanner Product

                                                                      Version: a
                                                                04/05/98 4:51 PM

                                                                  ISC/U.S., Inc.

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  Classification
   RESTRICTED                      DDSI Offer No. 980519           ISC
--------------------------------------------------------------------------------

                                                               1965 SE 22nd Ave.
                                                       Fort Lauderdale, FL 33316
                                                                             USA
                                                          Phone: ++1-954-5223302
                                                           Fax: ++1-954-522-3302

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 Classification
   RESTRICTED                      DDSI Offer No. 980519           ISC
--------------------------------------------------------------------------------

                Herausgegeben von der / Published by / Publie par

                                       ISC
                                 ISC/U.S., Inc.

                                1965 SE 22nd Ave.
                            Fort Lauderdale, FL 33316
                                       USA

                             Phone: ++1-954-522-3302
                              Fax: ++1-954-522-3302

        Fur dieses Dokument behalten wir uns nach DIN 34 alle Rechte vor.
        Technische Anderungen im Zuge der Weiterentwicklung vorbehalten.

 Copying of this document, and giving it to others and the use or communication
of the contents thereof, are forbidden without express authority. Offenders are
  liable to the payment of damages. All rights are reserved in the event of the
   grant of patent or the registration of a utility model or design. Liable to
           technical alterations in the course of future development.

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 Classification
   RESTRICTED                 DDSI Offer No. 980519                     ISC
--------------------------------------------------------------------------------

Toute communication ou reproduction de ce document, toute exploitation ou
communication de son contenu sont interdites, sauf autorisation expresse. Tout
manquement a cette regle est illicite et expose son auteur au versement de
dommages et interets. Tous nos droigts sont reserves pour le cas de la
delivrance d'un brevet ou de

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                   ISC
--------------------------------------------------------------------------------

1 Content
---------

1      Content .............................................................5

2      Versions ............................................................6
2.1     Version a ..........................................................6

3      Responsibilities ....................................................7

4      Subject of the Quote ................................................9

5      Features of the Product .............................................10
5.1     General Description ................................................10
5.2     Logical Block Diagram of the System ................................11
5.3     System Environment .................................................14
5.4     User Interface .....................................................14
5.5     Physical Parameters ................................................15
5.6     Estimated Production Costs .........................................17

 6     Development Process .................................................18

 7     Customer's Obligations ..............................................20

 8     PC Requirements .....................................................21

 9     Time Schedule .......................................................22

 10    Price, Payment Schedule .............................................23

 11    Further Conditions ..................................................24

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                  ISC
--------------------------------------------------------------------------------

2 Versions
----------

2.1 Version a

Author:   Roger Ludwig
Date:     05/18/98 8:02 PM

This is the basic document version, so there are no changes to former versions
to be documented here.

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                 ISC
--------------------------------------------------------------------------------

3 Responsibilities
------------------

                                  ISC/U.S.,Inc.
                                1965 SE 22nd Ave.
                            Fort Lauderdale, FL 33316

                               referred to as the

                               --- Contractor ----

herewith offers to

                                      DDSI
                        Digital Descriptor Systems, Inc.
                             2010-F Cabot Blvd. West
                               Langhorne, PA 19047

                               referred to as the

                                 -- Customer --

the research and development of a

                                  Finger Print
                                       and
                                Slap Scanner Unit
           for use in correctional institutes and police environment,

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                ISC
--------------------------------------------------------------------------------

                               referred to as the

                                ---- Product ----

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                  ISC
--------------------------------------------------------------------------------

4 Subject of the Quote
----------------------

The customer plans to introduce a product for finger / slap scanning in the area
of correctional institutes and police departments. The contractor as of this
date 5/18/98 is offering a working prototype and the continuation of the
development which will result in a product believed to be free of conflict with
existing patents as supplied by the customer.

The development offered here is focussed on a product, that consits of two
external units, which can be integrated into a single housing and one or more PC
cards. This product therefore can be marketed as an upgrade to existing PC
computer installations such as the existing CompuScetch product of the customer.
However, the end customer is free in separating the installations into two (the
basic PC such as CompuScetch and the Finger/Slap Scanning application) isolated
applications.
Furthermore the product offered here can be marketed in a version featuring the
finger print scanner only (without the slap unit). This opens up new market
areas where high accuracy scanning is beneficial when a user is en-rolled into a
system. These applications can be found in social security, immigration, access
control,DEA, Interpol, etc. Another feature of the product offered here is a
module formed as a standard PC card. This card provides high processing power to
accelerate the scanning process.This provides DDS1 with additional options to
offer their potional customers a lower price entry model without the accelerater
card, then at a latter date the accelerator module could be offered as an
up-grade, In a high use area the advance model would be offered which will have
the accelator module pre installed Or if desired the slap unit could be offered
alone. DDSI will have available 1. An lower cost finger print scanner, 2. An
finger print scanner including an accelator module, 3. An lower cost finger
print scanner with an four finger slap unit intergrated in single housing, 4. An
high speed finger print scanner with an four finger slap unit intergrated in a
single housing

In general the contractor offers development and integration of electrical,
electronic, mechanic and optical devices for the end product and support for FBI
verification, compliance of scanners with the IAFIS Image Quality Specifications
activity as far as they are applicable, and related product and project
documentation

At the completion of the project (see chapter "Project Phases") the customer
will have available a finger and slap scanner which meets the standards of the
INTEGRATED AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM (IAFIS) as described in
CJSI-TD-0100 dated March 1995 in those sections that apply for the technology
offered here. It is anticipated that the product can be mass produced for
subsequent delivery to prospective correctional and police departments.

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 Classification
   RESTRICTED                      DDSI Offer No. 980519                   ISC
--------------------------------------------------------------------------------

5 Features of the Product
-------------------------

This section specifies the overall features and capabilities of the product,
which can be produced as a result of the research, development, engineering and
integration offered.

5.1 General Description

One of the main design and development goals is the cost efficiency and
modularity of the system. The product to be developed consists of four physical
units (components):

o Finger Print Capture Unit (IR based touch-less scanning)
o Slap Capture Unit (IR based touch-less scanning)
o Standard PC interface and control card
o Standard PC acceleration card

The PC interface card is a high speed data management and control system. It
provides a high speed data bus according to differential fast-wide SCSI
standard. Power supply for the attached units is also provide by this bus. The
recommended maximum lengths of the bus is app. 15 meters (45 feet). Up to 15
units can be hooked to this bus and controlled from the interface card. Two of
those units are the finger print and slap scanner units. However there could be
more units hooked to a single bus if required or an optional digital camera
system for mug shots could be developed following this communication bus
standard.

The two scanning units are preferably mounted in two separated encasements. This
allows marketing of a finger print scanner version without the slap scanner.
Furthermore easy maintenance is achieved because the two units can be replaced
separately and finally the geometric arrangement of the two functional units can
be changed without the need for redesign of the encasement. However a single
encasement can be produced without changes of the components to be developed.
The PC interface card and the optional acceleration card are mounted into a
standard PC The data base functionality and the user interface requires a
standard PC office environment to be used efficiently, the mass storage and data
base maintenance features are not integrated into the finger print / slap
scanner units.

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<PAGE>

 Classification
   RESTRICTED                      DDSI Offer No. 980519                  ISC
--------------------------------------------------------------------------------

5.2 Logical Block Diagram of the System

The product consists of several sub-units

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<PAGE>

 Classification
   RESTRICTED                      DDSI Offer No. 980519                  ISC
--------------------------------------------------------------------------------

                                [GRAPHIC OMITTED]

o Finger IR Emitter / Optics. A special optic unit provides 3-D pictures
  compatible to rolled fingers on a flat surface. The design and material of
  this unit is optimized for IR bands, Furthermore the optical unit includes a
  special IR emitter unit which will be synchronized with the IR detector unit.

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<PAGE>

 Classification
   RESTRICTED                      DDSI Offer No. 980519                  ISC
--------------------------------------------------------------------------------

o     Finger Print IR Detector. The scanner unit for rolled finger prints
      consists of an IR detector unit provides in conjunction with the optics an
      equivalent of 600-1024 dpi image resolution.

o     Finger Print IR Control Unit. This unit will Synchronize the IR emitter /
      detector units and also provides data communication as an interface to the
      high-speed communication bus. Furthermore this unit will reduce IR
      background noise.

o     Slap IR Emitter / Optics. Similar to the finger print IR emitter unit,
      this unit provides a system of IR sources. The main difference between the
      finger and the slap optics is the 2D shape of this unit. It will result in
      flat scans of a four digit slap while the finger unit provides 3D scans
      for simulated finger rolling.

o     Slap IR Detector Unit. This high speed detector unit will be synchronized
      with the related IR emitter unit and samples data which will result in an
      equivalent of 600 - 1024 dpi resolution images.

o     Slap IR Control Unit. Similar to the finger print IR control unit, it will
      synchronize the emitter / detector system and provides data communication
      as an interface to the high-speed communication bus as well as IR
      background noise reduction.

o     Interface and Control Unit (Kernel). This unit is built as a standard PC
      card (ISA-Standard). It controls up to 15 connected units. One of the main
      tasks of this unit is the synchronization of the attached functional
      sub-units and high-speed storage of large amounts of raw image data. It
      furthermore provides unit self test routines and an interface for the
      application program (or acceleration card) that carries out further image
      processing.

o     Host PC. The CPU (preferably Pentium) of the host PC is used as the work
      horse for the user interface and database program on the one hand and the
      intensive image processing o the other hand. This architecture allows easy
      interfacing to other stations or databases in a network and all networking
      standards such as TCP/IP, Microsoft or Novell if required. Transmission of
      data to external systems can be done using the installed soft- or hardware
      in an existing environment.

o     Acceleration Card Although a Pentium processor provides sufficient
      computing power for the image processing, an acceleration card could
      substantially speed up the process of creating finger print images from
      the raw image data. One of the additional features available with the
      acceleration card is an on-the-fly evaluation of the finger or slap
      position for automatic shots and automatic image quality control. In
      general the acceleration is an optional component of the system. Upon
      start-up the software detects the presence of an acceleration card and
      offloads the image processing routines to that unit. If no acceleration
      card can be detected, the PC will carry out all imageprocessing tasks.
      This architecture allows marketing of entry level models at a lower speed
      than a faster professional version that includes the acceleration card.
      The contractor will investigate, if standard processing cards are
      available on the market that could be used or modified here. This could
      substantially reduce the end customer price for the optional acceleration
      card.

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5.3 System Environment

The product is designed as a system of add-on components for standard PC
computers. The recommended or required parameters of this host PC is given in
chapter "PC Requirements". In general, this concept gives a maximum flexibility
for preferred PC suppliers. The user interface and all scan functions are
controlled from an MS-Windows (NT 4.0) user interface. Without any system
imposed limitations, the finger/slap scanner system can be integrated into most
Microsoft Windows NT based existing or planned computing environment. Existing
central user administration, backup services and network printing facilities can
be used in a network. Besides, the printing capabilities of the Windows system
are used for printouts. This provides a maximum flexibility. Without any changes
in the software new printer models can be used. Any new available high quality
or low cost printer that comes with a Windows NT printer driver can be
integrated for print outs.

                                [GRAPHIC OMITTED]

5.4 User Interface

o Data Entry: The user interface of the capture unit provides data entry for
  personal information such as name, date of birth and so on. The layout of
  screen is derived from paper based ten-print cards. The system allows for 16
  different layouts that can be selected upon system startup. The alphanumerical
  data are stored along with references to the image information in a Microsoft
  Access database. Hence

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      the structure of the database will be explained in detail, interfacing
      from external applications such as CompuScan is possible.
o     Remote DataBase Access: Additional access to a remote database provides
      look-up capabilities into previous stored external data. The database to
      be interfaced is the existing mug-shot database of the customer. This
      feature prevents the need for multiple data entry.
o     Capture Control: The capture process can initiated, repeated and
      controlled here. In general all captured fingerprints as well as the
      4-digit slap / thumb are displayed on the screen for quality control.
      Before capturing, a control window shows the three-dimensional position of
      the finger to be captured in order to increase the quality of the images.

5.5 Physical Parameters

Size / Shape: The unit to be developed consists of two encasements (which
optionally can be integrated into a single encasement). These encasements hold
the two scanning devices. Shape and size will allow integration into any
standard table.

                                [GRAPHIC OMITTED]

Protection: In a very simple way the units can be recessed mounted into a table.

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                                [GRAPHIC OMITTED]

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5.6 Estimated Production Costs

The production costs including material of a unit as described above is
estimated based on the present information and projections. In production
quantities exceeding 100 units per order release, a per system (fingerprint and
slap capture units and the central PC interface card) price of $US 15,000. - can
be reached, if production would be carried out using the manufacturer
connections, tools and equipment available at the contractor's site. However
there is no warranty given here, that production costs will not exceed this
margin. The contractor will inform the customer during the project if any
movement in production cost can be foreseen.

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6 Development Process
---------------------

The development will be carried out in several, partially nested stages. Each of
these phases has a defined development target, a deliverable, an estimated
starting date and duration. Each phase start will be announced by the contractor
and must be approved by the customer. The customer has the right to postpone a
phase start or even stop the project by not ordering new phases. The customer
cannot stop phases that are approved for starting however.

Phase 1: (completed) Finger Print Unit
The contractor has ready and is offering to DDSI a prototype FP live scanner
that has been developed and is ready for delivery uopon signing of this
agreement. The main features are live and touch-less scanning of fingers. The
range covered by the scanner is determined by 120 degrees minimum, 150 degrees
typical and 180 degrees maximum. The resolution of the images is about 1024 dpi.

Phase 2: (in progress) PC Interface / Control Card
A PC card is to be developed here that controls the high-speed communication bus
and the attached units. The card provides an interface via ISA PC standards to
any application programs that calculate images from the raw data. One of the
major tasks of this card is the management of the high-speed memory that stores
up to 60 Mbytes raw data per second.

Phase 3: (in progress) User interface, Data Base Functionality
The user interface is designed as a ten-print card. A selection of up to 16
different ten-print card designs can be stored in the system. The user interface
layout can be switched between these layouts when starting the software.
Furthermore the print function allows printing of the typed information such as
name, address and so on as well as the image information (10 fingers, 2 slaps)
on the different card types. As a switchable option the print process can
reproduce the card layout if printing on plain paper.

Phase 4: Slap scanner
A touchless four digit slap / thumb scanner is developed during this phase. The
active area of the equipment is shaped and sized like the area on ten-print
cards reserved for slap prints. This unit can produce a flat image of a thumb or
the other four fingers alternatively. The unit can be hooked to the highspeed
communication bus along with the finger print scanner.

Phase 5: ANSI Transport / Wavelet Compression
The required parts of the ANSI specifications for finger print data compression,
encapsulation, transport and representation will be implemented in this phase.
In order to reduce the time needed for development and testing, the contractor
will use standard software components if available. The software deliverable can
be executed on ordinary PC environment and will be installed on a PC at
customer's site for further testing. This test environment could be used for
transport interfacing test at FBI if desirable.

Phase 6: Tests / Support
Acceptance tests at contractor's laboratory, at customer's site, at the FBI and
optional external laboratories are carried out. These test and all related QA
documents are delivered at the end of this phase. External laboratory test
(mechanical stressing and environmental temper tests) are initiated on
customer's request.

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Cost for these external laboratory tests are not included. These could be
carried out in the US under control of the customer also. This phase is
initiated after completion of phase 1 (fingerprint scanner device) because
testing and support begins with delivery of fingerprint scanner prototypes

Phase 7: Mechanical End Design
Mechanical end design assembly and production documentation are produced here.
These documents as well as mechanical prototypes will be delivered at the end of
this phase. After this phase (and passed FBI tests) the product is ready for
(mass) production. All user documentation as well as technical documentation are
produced or finalized during this phase as well and delivered (electronic media
for reproduction, American language)

Phase 8: Accelerator Card
The computing power needed to analyze and process the huge amount of digital
information coming from the finger print or slap unit can be provided by the
host PC computer. Because of the limitation of computing power the production of
usable image consumes considerable time. In order to speed up the process an
acceleration card is developed during this process. As an additional feature,
this acceleration card can detect optimal positions of fingers or slaps on the
fly. This allows automatic snapshots and integrated quality control of the
prints. This phase includes delivery of a prototye and the related software.

Optional Prototype Production
The phase 1 (prototype finger scanner) includes a working prototype of finger
scanner as a deliverable for that phase. However, the customer can order
additional prototypes at a cost of $US 20,000 each. In a similar way the phase 4
(slap scanner) also includes a working prototype as an included deliverable.
Here again the customer can order additional prototypes at a cost of $US
12,500-each. Please note that for each additional slap scanner prototype a
finger print prototype is needed. However due to the modular architecture, a
slap scanner prototype can be ordered at a later stage for a previous ordered
finger print scanner. The total cost for a prototype product (finger and slap
scanner) adds to $US 25.000. Similar, additional acceleration card prototype can
be ordered. Note 1: The prototype won't have final shape, size nor encasement
but all speed and quality parameters will be met. Note: 2 Cost of addition
prototypes are estimated in this paragraph and are not included in any phase
costs.

Optional Production
On request the contractor will offer end production and shipping of units

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7 Customer's Obligations
------------------------

o     Contact Person. The customer has to assign a responsible manager, who can
      initiate rapid decision taking processes and supply information needed by
      the contractor. This person will be the contact person for the contractor
      during the development process.
o     Information. In general the customer has to support the development
      process by providing detailed information on contractor's request. This
      information must be supplied on a timely bases so as time schedules can be
      maintained.
o     Approvals. The equipment under development must be approved by several
      organizations and probably must fulfill several standards. The customer is
      responsible for carrying out these approvals and hence the customer must
      first determine which approvals and standards to meet (FCC, FBI, and
      ANSI). Furthermore the customer has to initiate and follow up those
      certification processes. The contractor however supports the approval
      processes by documentation and adjustments to the product in order to meet
      the requirements. Costs related to these certifications are not covered by
      this offer.
o     Patents. The customer has expressed a disire that both the technologies as
      well as the physical device be patented to offer DDSI market advandage,
      the contractor will work in corporation with the customer to achieve these
      patent goals. It is understood that all patents will be in the name of
      ISC/U.S., Inc. and that DDSI will have the right to sell and market this
      product without the payment of any license fee or royalties. The cost of
      the patent attorney will be covered by the customer DDSI. Any cost incured
      by ISC/U.S., Inc.related to the patent filing will be at ISC/U.S., Inc.
      expense.

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8 PC Requirements
-----------------

Intensive image processing and handling of large image files require minimum
capabilities of the host PC:
o   Operating System: Windows NT 4.0
o   Hard Disk:  Only minimum  hard disk space is required for system  operation.
    However the local storage of ten-print cards (fingerprint/slap images)
    require considerable hard disk space (20 Mbytes per tenprint card,
    uncompressed). The amount of hard disk space available determines the number
    of tenprint cards that can be stored locally. However, a networked drive
    that is available in the environment could be used for image storage as
    well. Here the time to transmit the large amount of data has to taken into
    account.
o   RAM: Minimum 64 MB, 128 MB recommended.
o   CPU: The finger print prototype delivered at the end of phase 1 was
    tested on several PC platforms as host. The intensive image processing
    routines consume substantial processing power. Good results (app. 20 sec
    per fingerprint) were achieved with a double Pentium-11 architecture
    running at 266 MHz.
o   Graphic System: It is recommended that the graphic system of the PC (graphic
    card, monitor) has a capability of 1280 x 1024 pixels. This high resolution
    is useful for fingerprint inspection and quality control.

o   Slots: The PC must provide at least one standard ISA slot for the PC
    interface / control card of the system. An additional PC slot must be
    available depending on the architecture of the acceleration card (PCI or
    ISA).

o   Printinq System: Any standard printer that comes with an MS Wndows-NT
    printer driver or that is supported by Windows NT can be used for ten-print
    card printouts. However, if high quality printing is desired, 1200 dpi
    resolution is required. If original ten-print cards should be used to print
    on, the paperfeed system of the printer must be able to process size and
    thickness of the desired cards.
o   Additional Requirements. CD drive, floppy. mouse

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9 Time Schedule
---------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
 N    Phase                                Phase starts at      Phase ends at      Phase deliverables
-------------------------------------------------------------------------------------------------------
<S>   <C>                                  <C>                  <C>                 <C>
 1    Electronic, Optical, Mechanical      (completed)          (contract          Fingerprint Scanner
      Prototype FP Live Scanner                                 signing)           Prototype
-------------------------------------------------------------------------------------------------------
 2    PC Interface / Control Card          (in progress)        May 31, 1998       PC Interface
                                                                                   Control Card
-------------------------------------------------------------------------------------------------------
 3    User Interface, Database             (in progress)        Jun 30, 1998       Software
      Functionality
-------------------------------------------------------------------------------------------------------
 4    Electronic, Optical, Mechanical      May 31, 1998         Jul 31, 1998       Slap Scanner
      Prototype Slap Scanner                                                       Prototype
-------------------------------------------------------------------------------------------------------
 5    ANSI Transports / Wavelet            Jun 30, 1998         Jul 31, 1998       Software
      Compression
-------------------------------------------------------------------------------------------------------
 6    Test In-House /External LAB          May 31, 1998         Aug 31, 1998       Service, Test- and
      DDSI / FBI                                                                   QXReports
-------------------------------------------------------------------------------------------------------
 7    Mechanical End Design,               Jul 31, 1998         Aug 31, 1998       Production and
      Documentation                                                                Assembly Docs,
                                                                                   Manuals
-------------------------------------------------------------------------------------------------------
 8    Acceleration Card                    Jul 31, 1998         Sep 30, 1998       Acceleration Card
                                                                                      Prototype
-------------------------------------------------------------------------------------------------------
</TABLE>

The fingerprint prototype could be FBI tested at the moment. The entire
prototype unit (including the slap scanner device) can be (FBI-) tested starting
July 31, 1998. The test phase (nb. 6) starts 6efore availability of the entire
product, because the critical tests are focussed on the finger print unit which
available already. The acceleration card is optional add-on for the product but
not needed.

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10 Price, Payment Schedule

The total project as stated here is offered for a fixed price of $US 635,000.-
plus the price for additional prototypes as stated before. Not included are
travel expenses if travels to customer's site and/or approving institutes are
necessary. Furthermore any kind of VAT, custom duties and US sales taxes is not
inluded.

Payments are due with end of each phase according to following payment schedule
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
 N  Phase                                                                Phase ends at           Payment with
                                                                                                  deliverable
-------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                     <C>
 1  Electronic, Optical, Mechanical Prototype FP Live Scanner            Apr 30, 1998                $135,000
-------------------------------------------------------------------------------------------------------------
 2  PC Interface / Control Card                                          May 31, 1998                $115,000
-------------------------------------------------------------------------------------------------------------
 3  User Interface, Data Base Functionality                              Jun 30, 1998                 $55,000
-------------------------------------------------------------------------------------------------------------
 4  Electronic, Optical, Mechanical Prototype Slap Live Scanner          Jul 31, 1998                $130,000
-------------------------------------------------------------------------------------------------------------
 5  ANSI Transports, Wavelet Compression                                 Jul 31, 1998                 $30,000
-------------------------------------------------------------------------------------------------------------
 6  Test In-House /External LAB / DDS1 / FBI                             Aug 31, 1998                 $30,000
-------------------------------------------------------------------------------------------------------------
 7  Documentation, Mechanical End Design                                 Aug 31, 1998                 $45,000
-------------------------------------------------------------------------------------------------------------
 8  Acceleration Card                                                    Sep 30, 1998                 $95,000
-------------------------------------------------------------------------------------------------------------
    Total                                                                                            $635,000
-------------------------------------------------------------------------------------------------------------
</TABLE>
Cost per additional fingerprint scanner prototype:                       $20,000
Cost per additional slap scanner prototype                               $12,500
Cost of PC                                                               $ 7,500
Cost per acceleration card prototype (to be determined)

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11 Further Conditions
---------------------

o This offer is valid until May 31, 1998.
o All dates stated in the project schedule are under assumption of contract
  award before May 31, 1998
o This offer is valid under the assumption that neither European nor US
  import/export restrictions apply.
o All prices stated in the offer do not include VAT, customs duties and US sales
  taxes, and are given in US dollars.
o The contractor retains all rights to the product and technologies developed
  under this agreement
o The customer has the right to sell and market this product without the payment
  of any license fees or royalties.

 .........................................               Dated 6/9/98
(ISC/U.S., Inc. By R. Ludwig/President)

 .........................................               Dated 6/9/98
(DDSI by Garrett Cohn / President)

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