Document:

EXHIBIT 10.1

                               PURCHASE AGREEMENT

                  THIS PURCHASE AGREEMENT ("Agreement") is made as of the 5th
day of October, 2001 by and among Visionics Corporation, formerly known as
Digital Biometrics, Inc., a Delaware corporation (the "Company"), and the
Investors set forth on the signature page affixed hereto (each an "Investor" and
collectively the "Investors").

                                    RECITALS

         A. The Company and the Investors are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Regulation D ("Regulation D"), as promulgated by the U.S.
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended;

         B. The Investors wish to purchase, and the Company wishes to sell and
issue to the Investors, upon the terms and conditions stated in this Agreement,
that number of shares of the common stock of the Company, par value $.01 per
share (the "Common Stock") as set forth on the signature page attached hereto
and executed by each such Investor; and

         C. Contemporaneous with the execution and delivery of this Agreement,
the parties hereto are executing and delivering a Registration Rights Agreement,
in the form attached hereto as EXHIBIT A (the "Registration Rights Agreement"),
pursuant to which the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended and the rules and regulations
promulgated thereunder (the "1933 Act"), and applicable state securities laws.

                  In consideration of the mutual promises made herein and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

         1. Definitions. In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings here set forth:

                  "Affiliate" means, with respect to any Person, any other
Person which directly or indirectly Controls, is controlled by, or is under
common control with, such Person.

                  "Agreements" means this Agreement, the Registration Rights
Agreement and, if applicable, the Penalty Warrants.

                  "Closing" means the consummation of the transactions
contemplated by this Agreement, and "Closing Date" means the date of such
Closing.

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                  "Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

                  "Company's Knowledge" means the actual knowledge of the
executive officers of the Company after due inquiry.

                  "Material Adverse Effect" means a material adverse effect on
the condition, business, assets, or results of operations of the Company and its
subsidiaries as a whole.

                  "Penalty Warrants" means the Penalty Warrants provided for in
Section 8 of the Registration Rights Agreement.

                  "Penalty Warrant Shares" means the shares of Common Stock
issuable upon exercise of or otherwise pursuant to the Penalty Warrants.

                  "Person" means an individual, corporation, partnership,
limited liability company, trust, business trust, association, joint stock
company, joint venture, sole proprietorship, unincorporated organization,
governmental authority or any other form of entity not specifically listed
herein.

                  "SEC Filings" has the meaning set forth in Section 4.6.

                  "Securities" means the Shares, the Penalty Warrants and the
Penalty Warrant Shares (defined below).

                  "Shares" means the shares of Common Stock being purchased by
the Investors hereunder.

                  "1934 Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

         2. Purchase and Sale of the Shares. Subject to the terms and conditions
of this Agreement, each of the Investors hereby severally, and not jointly,
agrees to purchase, and the Company hereby agrees to sell and issue to each such
Investor, the number of Shares set forth on such Investor's signature page
attached hereto. The number of Shares to be purchased by each Investor shall be
determined by dividing such Investor's aggregate purchase price (as such
aggregate purchase price is set forth on such Investor's signature page attached
hereto) (the "Purchase Price") by an amount equal to Eleven Dollars and Ten
Cents ($11.10) (the "Per Share Purchase Price"). The Per Share Purchase Price is
a fixed price; it does not adjust depending upon the timing of the Closing.
Pursuant to the Registration Rights Agreement, the Company is obligated to issue
the Penalty Warrants if a Registration Statement with respect to the Shares is
not filed or made effective by the dates set forth in Sections 2(a) and 2(c) of
the Registration Rights Agreement. The exercise price of the Penalty Warrants
shall be the Per Share Purchase Price.

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         3. Closing. Simultaneous with the execution and delivery of this
Agreement and the Registration Rights Agreement and the delivery of such other
documents as may be required hereunder or as soon thereafter as practicable,
each Investor shall deliver to a separate account maintained by the Placement
Agent pursuant to Rule 15b2-4 under the 1934 Act for the benefit of the Company,
by wire transfer, same day funds in an amount equal to such Investor's Purchase
Price. At such time, the Company shall direct its transfer agent to issue a
certificate or certificates, registered in such name or names as the Investors
may designate, representing all of the Shares. The settlement of the purchase
and sale pursuant to this Agreement shall occur five (5) business days after the
date hereof (and such date shall be deemed the "Closing Date"). The closing of
the purchase and sale of the Shares shall take place at the offices of Bass,
Berry & Sims PLC, 100 Peabody Place, Suite 900, Memphis, Tennessee, or at such
other location and on such other date as the Company and the Investors shall
mutually agree. At the Closing Date, the certificates representing the Shares
will be delivered to the Investors against payment therefor by wire transfer to
the Company from the separate account maintained by the Placement Agent.

         4. Representations and Penalty Warranties of the Company. The Company
hereby represents and warrants to the Investors that:

                  4.1 Organization, Good Standing and Qualification. Each of the
Company and its subsidiaries is a corporation duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority to carry on
its business as now conducted and own its properties. Each of the Company and
its subsidiaries is duly qualified to do business as a foreign corporation and
is in good standing in each jurisdiction in which the conduct of its business or
its ownership or leasing of property makes such qualification or licensing
necessary unless the failure to so qualify would not have a Material Adverse
Effect. The Company's subsidiaries are reflected on Schedule 4.1 hereto.

                  4.2 Authorization. The Company has full power and authority
and has taken all requisite action on the part of the Company, its officers,
directors and stockholders necessary for (i) the authorization, execution and
delivery of the Agreements, (ii) authorization of the performance of all
obligations of the Company hereunder or thereunder, and (iii) the authorization,
issuance (or reservation for issuance) and delivery of the Securities. The
Agreements constitute, or, in the case of the Penalty Warrants, upon issuance by
the Company will constitute, the legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability, relating to or affecting creditors'
rights generally.

                  4.3 Capitalization. Set forth on Schedule 4.3 hereto is (a)
the authorized capital stock of the Company on the date hereof; (b) the number
of shares of capital stock issued and outstanding; (c) the number of shares of
capital stock issuable pursuant to the Company's stock plans; and (d) the number
of shares of capital stock issuable and reserved for issuance pursuant to
securities (other than the Shares and the Penalty Warrants) exercisable for, or
convertible into or exchangeable for any shares of capital stock of the Company.
All of the issued and outstanding shares of the Company's capital stock have
been duly authorized and

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validly issued and are fully paid, nonassessable. Except as set forth on
Schedule 4.3, no Person is entitled to preemptive or similar statutory or
contractual rights with respect to any securities of the Company. Except as set
forth on Schedule 4.3, there are no outstanding warrants, options, convertible
securities or other rights, agreements or arrangements of any character under
which the Company or any of its subsidiaries is or may be obligated to issue any
equity securities of any kind. Except as set forth on Schedule 4.3, there are no
voting agreements, buy-sell agreements, option or right of first purchase
agreements or other agreements of any kind among any of the securityholders of
the Company relating to the securities of the Company held by them. Except as
set forth on Schedule 4.3, the Company has not granted any Person the right to
require the Company to register any securities of the Company under the 1933
Act, whether on a demand basis or in connection with the registration of
securities of the Company for its own account or for the account of any other
Person.

                  4.4 Valid Issuance. The Company has reserved a sufficient
number of shares of Common Stock for the issuance of the Shares pursuant to this
Agreement. The Shares and Penalty Warrants are duly authorized, and such
Securities, along with the Penalty Warrant Shares when issued in accordance
herewith and with the terms of the Penalty Warrants, will be duly authorized,
validly issued, fully paid, non-assessable and free and clear of all
encumbrances and restrictions, except for restrictions on transfer imposed by
applicable securities laws.

                  4.5 Consents. The execution, delivery and performance by the
Company of the Agreements and the offer, issuance and sale of the Securities
require no consent of, action by or in respect of, or filing with, any Person,
governmental body, agency, or official other than filings that have been made
pursuant to applicable state securities laws and post-sale filings pursuant to
applicable state and federal securities laws which the Company undertakes to
file within the applicable time periods.

                  4.6 Delivery of SEC Filings; Business. The Company has
provided the Investors with copies of the Company's most recent Annual Report on
Form 10-K/A for the fiscal year ended September 30, 2000, and all other reports
filed by the Company pursuant to the 1934 Act since the filing of the Annual
Report on Form 10-K/A and prior to the date hereof (collectively, the "SEC
Filings"). The Company hereby represents and warrants that the SEC Filings are
the only filings required of the Company pursuant to the 1934 Act for such
period. The Company is engaged only in the business described in the SEC Filings
and the SEC Filings contain a complete and accurate description of the business
of the Company.

                  4.7 Use of Proceeds. The proceeds of the sale of the Common
Stock hereunder and the Penalty Warrant Shares (if any) shall be used by the
Company for working capital and general corporate purposes.

                  4.8 No Material Adverse Change. Since the filing of the
Company's most recent Annual Report on Form 10-K or as otherwise identified and
described in the SEC Filings, or as set forth on Schedule 4.8 hereto, there has
not been:

                           (i) any change in the consolidated assets,
liabilities, financial condition or operating results of the Company from that
reflected in the financial statements

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included in the Company's most recent Quarterly Report on Form 10-Q, except the
incurrence of operating losses consistent with the historic results of the
Company or changes in the ordinary course of business which have not had, in the
aggregate, a Material Adverse Effect;

                           (ii) any declaration or payment of any dividend, or
any authorization or payment of any distribution, on any of the capital stock of
the Company, or any redemption or repurchase of any securities of the Company;

                           (iii) any material damage, destruction or loss,
whether or not covered by insurance to any assets or properties of the Company;

                           (iv) any waiver, not in the ordinary course of
business by the Company of a valuable right or of a material debt owed to it;

                           (v) any satisfaction or discharge of any lien, claim
or encumbrance or payment of any obligation by the Company, except in the
ordinary course of business and which is not material to the assets, properties,
financial condition, operating results or business of the Company taken as a
whole (as such business is presently conducted and as it is proposed to be
conducted);

                           (vi) any change or amendment to the Company's
Certificate of Incorporation or by-laws, or material change to any material
contract or arrangement by which the Company or any of its assets or properties
is bound or subject;

                           (vii) any material labor difficulties or labor union
organizing activities with respect to employees of the Company;

                           (viii) any transaction entered into by the Company
other than in the ordinary course of business;

                           (ix) the loss of the services of any key employee, or
material change in the composition or duties of the Company's senior management;

                           (x) the loss or threatened loss of any customer which
could be material to the Company's business; or

                           (xi) any other event or condition of any character
that might have a Material Adverse Effect.

                  4.9 SEC Filings; Material Contracts.

                           (a) The SEC Filings complied as to form in all
material respects with the requirements of the 1934 Act and did not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading.

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                           (b) During the preceding two years, each registration
statement and any amendment thereto filed by the Company pursuant to the 1933
Act and the rules and regulations thereunder, as of the date such statement or
amendment became effective, complied as to form in all material respects with
the 1933 Act and did not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary in order
to make the statements made therein, in light of the circumstances under which
they were made, not misleading; and each prospectus filed pursuant to Rule
424(b) under the 1933 Act, as of its issue date and as of the closing of any
sale of securities pursuant thereto, did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.

                           (c) Except as set forth on Schedule 4.3 hereto, there
are no agreements or instruments currently in force and effect that constitute a
warrant, option, convertible security or other right, agreement or arrangement
of any character under which the Company is or may be obligated to issue any
material amounts of any equity security of any kind, or to transfer any material
amounts of any equity security of any kind.

                  4.10 No Conflict, Breach, Violation or Default. The execution,
delivery and performance of the Agreements by the Company and the issuance and
sale of the Securities will not conflict with or result in a breach or violation
of any of the terms and provisions of, or constitute a default under (i) the
Company's Certificate of Incorporation or the Company's Bylaws, both as in
effect on the date hereof (copies of which have been provided to the Investors
before the date hereof), or (ii)(a) any statute, rule, regulation or order of
any governmental agency or body or any court, domestic or foreign, having
jurisdiction over the Company or any of its properties, or (b) except as set
forth on Schedule 4.10, any agreement or instrument to which the Company is a
party or by which the Company is bound or to which any of the properties of the
Company is subject.

                  4.11 Tax Matters. The Company has timely prepared and filed
all tax returns required to have been filed by the Company with all appropriate
governmental agencies and timely paid all taxes owed by it. The charges,
accruals and reserves on the books of the Company in respect of taxes for all
fiscal periods are adequate in all material respects, and there are no material
unpaid assessments against the Company nor, to the knowledge of the Company, any
basis for the assessment of any additional taxes, penalties or interest for any
fiscal period or audits by any federal, state or local taxing authority except
for any assessment which is not material to the Company. All taxes and other
assessments and levies of a material amount that the Company is required to
withhold or to collect for payment have been duly withheld and collected and
paid to the proper governmental entity or third party when due. There are no tax
liens or claims pending or threatened against the Company or any of its
respective assets or property which individually or in the aggregate could have
a Material Adverse Effect. Except as described in the SEC Filings, there are no
outstanding tax sharing agreements or other such arrangements between the
Company and any other corporation or entity.

                  4.12 Title to Properties. Except as disclosed in the SEC
Filings or Schedule 4.12, the Company has good and marketable title to all real
properties and all other properties

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and assets owned by it, in each case free from liens, encumbrances and defects
that would materially affect the value thereof or materially interfere with the
use made or currently planned to be made thereof by them; and except as
disclosed in the SEC Filings, the Company holds any leased real or personal
property under valid and enforceable leases with no exceptions that would
materially interfere with the use made or currently planned to be made thereof
by them.

                  4.13 Certificates, Authorities and Permits. The Company
possesses adequate certificates, authorities or permits issued by appropriate
governmental agencies or bodies necessary to conduct the business now operated
by it and has not received any notice of proceedings relating to the revocation
or modification of any such certificate, authority or permit that, if determined
adversely to the Company, would individually or in the aggregate have a Material
Adverse Effect.

                  4.14 No Labor Disputes. No material labor dispute with the
employees of the Company exists or, to the knowledge of the Company, is
currently threatened.

                  4.15 Intellectual Property. The Company has sufficient title
or adequate rights or licenses to the inventions, know-how, patents, copyrights,
trademarks, trade names, confidential information, domain names and other
intellectual property (collectively, "Intellectual Property Rights"), free and
clear of any material liens, security interests, charges, encumbrances, equities
and other adverse claims, necessary to conduct the business now operated by it,
or presently employed by it, and presently contemplated to be operated by it,
and the Company has not received any notice of infringement of or conflict with
asserted rights of others with respect to any Intellectual Property Rights. To
the knowledge of the Company, the Company's patents and other Intellectual
Property Rights and the present activities of the Company do not infringe any
patent, copyright, trademark, trade name or other proprietary rights of any
third party.

                  4.16 Environmental Matters. The Company is not in violation of
any statute, rule, regulation, decision or order of any governmental agency or
body or any court, domestic or foreign, relating to the use, disposal or release
of hazardous or toxic substances or relating to the protection or restoration of
the environment or human exposure to hazardous or toxic substances
(collectively, "Environmental Laws"), does not own or operate any real property
contaminated with any substance that is subject to any Environmental Laws, is
not liable for any off-site disposal or contamination pursuant to any
Environmental Laws, and is not subject to any claim relating to any
Environmental Laws, which violation, contamination, liability or claim would
individually or in the aggregate have a Material Adverse Effect; and the Company
is not aware of any pending investigation that might lead to such a claim.

                  4.17 Litigation. Except as disclosed in the SEC Filings or on
Schedule 4.17 hereto, there are no pending actions, suits or proceedings against
or affecting the Company, its subsidiaries or any of its or their properties
that, if determined adversely to the Company or such subsidiary, would
individually or in the aggregate have a Material Adverse Effect or would
materially and adversely affect the ability of the Company to perform its
obligations under this Agreement, or which are otherwise material in the context
of the sale of the Securities; and to the Company's knowledge, no such actions,
suits or proceedings are threatened or contemplated.

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                  4.18 Financial Statements. The financial statements included
in each SEC Filing present fairly and accurately in all material respects the
consolidated financial position of the Company as of the dates shown and its
consolidated results of operations and cash flows for the periods shown, and
such financial statements have been prepared in conformity with United States
generally accepted accounting principles applied on a consistent basis. Except
as set forth in the financial statements of the Company included in the SEC
Filings filed prior to the date hereof, the Company has no liabilities,
contingent or otherwise, except those which individually or in the aggregate
would not have a Material Adverse Effect.

                  4.19 Insurance Coverage. The Company maintains in full force
and effect insurance coverage that is customary for comparably situated
companies for the business being conducted and properties owned or leased by the
Company, and the Company reasonably believes such insurance coverage to be
adequate against all liabilities, claims and risks against which it is customary
for comparably situated companies to insure.

                  4.20 Compliance with Nasdaq Continued Listing Requirements.
The Company is in compliance with all applicable Nasdaq National Market
continued listing requirements. There are no proceedings pending or to the
Company's knowledge threatened against the Company relating to the continued
listing of the Company's Common Stock on the Nasdaq National Market and the
Company has not received any notice of, nor to the knowledge of the Company is
there any basis for, the delisting of the Common Stock from the Nasdaq National
Market.

                  4.21 Brokers and Finders. The Investors shall have no
liability or responsibility for the payment of any commission or finder's fee to
any third party in connection with or resulting from this Agreement or the
transactions contemplated by this Agreement by reason of any agreement of or
action taken by the Company. The Company is obligated to pay a fee to Morgan
Keegan in connection with transactions contemplated hereunder.

                  4.22 No Directed Selling Efforts or General Solicitation.
Neither the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising (as those terms are used in
Regulation D) in connection with the offer or sale of any of the Securities.

                  4.23 No Integrated Offering. Neither the Company nor any of
its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would adversely affect reliance by
the Company on Section 4(2) for the exemption from registration for the
transactions contemplated hereby or would require registration of the Securities
under the 1933 Act.

                  4.24 Questionable Payments. Neither the Company nor any of its
subsidiaries nor, to the Company's Knowledge, any of their respective current or
former shareholders, directors, officers, employees, agents or other Persons
acting on behalf of the Company or any subsidiary, has on behalf of the Company
or any subsidiary or in connection with their respective businesses: (a) used
any corporate funds for unlawful contributions, gifts, entertainment or other

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unlawful expenses relating to political activity; (b) made any direct or
indirect unlawful payments to any governmental officials or employees from
corporate funds; (c) established or maintained any unlawful or unrecorded fund
of corporate monies or other assets; (d) made any false or fictitious entries on
the books and records of the Company; or (e) made any unlawful bribe, rebate,
payoff, influence payment, kickback or other unlawful payment of any nature.

         5. Representations and Warranties of the Investor. Each of the
Investors hereby severally, and not jointly, represents and warrants to the
Company that:

                  5.1 Organization and Existence. The Investor is a validly
existing corporation, limited partnership or limited liability company and has
all requisite corporate, partnership or limited liability company power and
authority to invest in the Securities pursuant to this Agreement.

                  5.2 Authorization. The execution, delivery and performance by
the Investor of the Agreements have been duly authorized and the Agreements will
each constitute the valid and legally binding obligation of the Investor,
enforceable against the Investor in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability, relating to or affecting creditors'
rights generally.

                  5.3 Purchase Entirely for Own Account. The Securities to be
received by the Investor hereunder will be acquired for the Investor's own
account, not as nominee or agent, and not with a view to the resale or
distribution of any part thereof, and the Investor has no present intention of
selling, granting any participation in, or otherwise distributing the same. The
Investor is not a registered broker dealer or an entity engaged in the business
of being a broker dealer.

                  5.4 Investment Experience. The Investor acknowledges that it
can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and experience in financial or business matters that it
is capable of evaluating the merits and risks of the investment contemplated
hereby.

                  5.5 Disclosure of Information. The Investor has had an
opportunity to receive documents related to the Company and to ask questions of
and receive answers from the Company regarding the Company, its business and the
terms and conditions of the offering of the Securities. The Investor
acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor
any other due diligence investigation conducted by the Investor shall modify,
amend or affect the Investor's right to rely on the Company's representations
and warranties contained in this Agreement.

                  5.6 Restricted Securities. The Investor understands that the
Securities are characterized as "restricted securities" under the U.S. federal
securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the 1933 Act only in certain limited circumstances.

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                  5.7 Legends. It is understood that certificates evidencing the
Securities may bear one or all of the following legends:

                           (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, OFFERED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE APPLICABLE SECURITIES LAWS OR AN OPINION FROM
COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH REGISTRATION IS NOT
REQUIRED.

                           (b) If required by the authorities of any state in
connection with the issuance of sale of the Securities, the legend required by
such state authority.

                  5.8 Accredited Investor. The Investor is an accredited
investor as defined in Rule 501(a) of Regulation D.

                  5.9 No General Solicitation. The Investor did not learn of the
investment in the Securities as a result of any public advertising or general
solicitation.

         6. Registration Rights Agreement. The parties acknowledge and agree
that part of the inducement for the Investor to enter into this Agreement is the
Company's execution and delivery of the Registration Rights Agreement. The
parties acknowledge and agree that simultaneously with the execution hereof, the
Registration Rights Agreement is being duly executed and delivered by the
parties thereto.

         7. Covenants and Agreements of the Company.

                  7.1 Opinion of Counsel. On or prior to the Closing Date, the
Company will deliver to the Investors the opinion of legal counsel to the
Company, in form and substance reasonably acceptable to the Investors,
addressing those legal matters set forth in Schedule 7.2 hereto.

                  7.2 Reservation of Common Stock Pursuant to Exercise of
Penalty Warrants. The Company hereby agrees that if any Penalty Warrants are
issued, it shall at all times prior to exercise or expiration thereof reserve
and keep available out of its authorized but unissued shares of Common Stock,
solely for the purpose of providing for the exercise of the Penalty Warrants,
such number of shares of Common Stock as shall from time to time equal the
number of shares sufficient to permit the exercise of the Penalty Warrants in
accordance with the terms of the Penalty Warrants.

                  7.3 No Conflicting Agreements. The Company will not take any
action, enter into any agreement or make any commitment that would conflict or
interfere in any material respect with the obligations to the Investors under
the Agreements.

                  7.4 Listing of Underlying Shares and Related Matters. The
Company hereby agrees, following the Closing of the transactions contemplated by
this Agreement, to take such

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action to cause the Shares and (if applicable) the Penalty Warrant Shares to be
listed on the Nasdaq National Market as promptly as possible but no later than
the effective date of the registration contemplated by the Registration Rights
Agreement. The Company further agrees that if the Company applies to have its
Common Stock or other securities traded on any other principal stock exchange or
market, it will include in such application the Penalty Warrant Shares and will
take such other action as is necessary to cause such Common Stock to be so
listed. For so long as the Investors beneficially own any of the Securities, the
Company will take all action necessary to continue the listing and trading of
its Common Stock on the Nasdaq National Market and will comply in all respects
with the Company's reporting, filing and other obligations under the bylaws or
rules of such exchange, as applicable, to ensure the continued eligibility for
trading of the Shares and the Penalty Warrant Shares thereon. Notwithstanding
anything to the contrary in this section, the Company shall be under no
obligation to list any Penalty Warrant Shares until such time as Penalty
Warrants shall have been issued.

         8. Survival and Indemnification.

                  8.1 Survival. All representations, warranties, covenants and
agreements contained in this Agreement shall be deemed to be representations,
warranties, covenants and agreements as of the date hereof and shall survive the
execution and delivery of this Agreement for a period of twelve months from the
date of this Agreement; provided, however, that the provisions contained in
Section 7 hereof shall survive in accordance therewith.

                  8.2 Indemnification.

                           (a) The Company agrees to indemnify and hold
harmless, on an after-tax and after insurance recovery basis, each holder of
Securities and its Affiliates and their respective directors, officers,
employees and agents (each, an "Investor Indemnified Person") from and against
any and all losses, claims, damages, liabilities and expenses (including without
limitation reasonable attorney fees and disbursements and other expenses
incurred in connection with investigating, preparing or defending any action,
claim or proceeding, pending or threatened and the costs of enforcement hereof)
(collectively, "Losses") to which such Person may become subject as a result of
any breach of representation, warranty, covenant or agreement made by or to be
performed on the part of the Company under the Agreements and will reimburse any
such Person for all such amounts as they are incurred by such Person; provided,
however, that if an Investor Indemnified Person is reimbursed under this Section
8.2 for any expenses, such reimbursement of expenses shall be refunded to the
extent it is finally judicially determined that the Losses in question resulted
primarily from the wilful misconduct or gross negligence of such Investor
Indemnified Person.

                           (b) Each Investor, severally and not jointly, agrees
to indemnify and hold harmless, on an after-tax and after insurance recovery
basis, the Company and its Affiliates and their respective directors, officers,
employees and agents (each, a "Company Indemnified Person") from and against any
and all Losses to which such Person may become subject as a result of any breach
of representation, warranty, covenant or agreement made by or to be performed on
the part of such Investor under the Agreements and will reimburse any such
Person for all such amounts as they are incurred by such Person; provided,
however, that if a Company

                                       11
<PAGE>

Indemnified Person is reimbursed under this Section 8.2 for any expenses, such
reimbursement of expenses shall be refunded to the extent it is finally
judicially determined that the Losses in question resulted primarily from the
wilful misconduct or gross negligence of such Company Indemnified Person.

                  8.3 Conduct of Indemnification Proceedings. Promptly after
receipt by any Investor Indemnified Person or Company Indemnified Person (an
"Indemnified Person") of notice of any demand, claim or circumstances which
would or might give rise to a claim or the commencement of any action,
proceeding or investigation in respect of which indemnity may be sought pursuant
to Section 8.2, such Indemnified Person shall promptly notify the party
responsible for providing such indemnification (the "Indemnifying Person") in
writing and the Indemnifying Person shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Person,
and shall assume the payment of all fees and expenses; provided, however, that
the failure of any Indemnified Person so to notify the Indemnifying Person shall
not relieve the Indemnifying Person of its obligations hereunder except to the
extent that the Indemnifying Person is materially prejudiced by such failure to
notify. In any such proceeding, any Indemnified Person shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Person unless: (i) the Indemnifying Person and
the Indemnified Person shall have mutually agreed to the retention of such
counsel; or (ii) in the reasonable judgment of such Indemnified Person, based
upon written advice of its counsel, representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them. The Indemnifying Person shall not be liable for any settlement of
any proceeding effected without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent, or if there be a final
judgment for the plaintiff, the Indemnifying Person shall indemnify and hold
harmless such Indemnified Person from and against any loss or liability (to the
extent stated above) by reason of such settlement or judgment. Without the prior
written consent of the Indemnified Person, the Indemnifying Person shall not
effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from all liability
arising out of such proceeding.

         9. Miscellaneous.

                  9.1 Successors and Assigns. This Agreement may not be assigned
by a party hereto without the prior written consent of the other party hereto,
except that without the prior written consent of the Company, but after notice
duly given, an Investor may assign its rights and delegate its duties hereunder
in whole or in part to an Affiliate, and without the prior written consent of
the Investors, but after notice duly given and in compliance with this
Agreement, the Company may assign its rights and delegate its duties hereunder
to any successor-in-interest corporation in the event of a merger or
consolidation of the Company with or into another corporation, or any merger or
consolidation of another corporation with or into the Company that results
directly or indirectly in an aggregate change in the ownership or control of
more than 50% of the voting rights of the equity securities of the Company, or
the sale of all or substantially all of the Company's assets. The terms and
conditions of this Agreement shall inure to the benefit

                                       12
<PAGE>

of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement. The provisions
of this Section 9.1 shall not interfere in any respect with a transfer by an
Investor of any Securities in compliance with all applicable securities laws.

                  9.2 Counterparts; Faxes. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Agreement may
also be executed via facsimile, which shall be deemed an original.

                  9.3 Titles and Subtitles. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                  9.4 Notices. Unless otherwise provided, any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given only upon delivery to each party to be notified by (i)
personal delivery, (ii) telex or telecopier, upon receipt of confirmation of
complete transmittal, or (iii) an internationally recognized overnight air
courier, addressed to the party to be notified at the address as follows, or at
such other address as such party may designate by ten days' advance written
notice to the other party:

                           If to the Company:

                                    Visionics Corporation
                                    5600 Rowland Road
                                    Minnetonka, Minnesota 55353
                                    Attn: Robert Gallagher
                                    Fax: (952) 932-7181

                           If to the Investors, to the addresses set forth on
the signature pages hereto.

                  9.5 Expenses. The parties hereto shall pay their own costs and
expenses in connection herewith.

                  9.6 Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Investors.
Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each holder of any Securities purchased under this Agreement at the
time outstanding, each future holder of all such securities, and the Company.

                  9.7 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be interpreted as if it
were written so as to be enforceable to the maximum extent permitted by

                                       13
<PAGE>

applicable law, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, the parties hereby
waive any provision of law which renders any provisions hereof prohibited or
unenforceable in any respect.

                  9.8 Entire Agreement. This Agreement, including the Exhibits
and Schedules hereto, and the Registration Rights Agreement and the Penalty
Warrants constitute the entire agreement among the parties hereof with respect
to the subject matter hereof and thereof and supersede all prior agreements and
understandings, both oral and written, between the parties with respect to the
subject matter hereof and thereof.

                  9.9 Further Assurances. The parties shall execute and deliver
all such further instruments and documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                  9.10 Applicable Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to principles of conflicts of laws.

                       [SIGNATURES BEGIN ON THE NEXT PAGE]

                                       14
<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
or caused their duly authorized officers to execute this Agreement as of the
date first above written.

                                        THE COMPANY:

                                        VISIONICS CORPORATION

                                               By:   /s/ Robert F. Gallagher
                                                     ---------------------------
                                               Name:  Robert F. Gallagher
                                               Title: Chief Financial Officer

                                       15
<PAGE>

                                        INVESTOR:

                                        Tonga Partners LP

                                               By:   /s/ Carlo Cannell
                                                     ---------------------------
                                               Name:  Carlo Cannell
                                               Title: Managing Member

Aggregate Purchase Price: $1,536,684
Number of Shares of Common Stock: 138,440

Address for Notice:

Cannell Capital, LLC - Tonga Partners LP
150 California Street
San Francisco, CA 94111

with a copy to:

Goldman Sachs - Prime Brokerage, 48th Fl.
1 New York Plaza
New York, NY 10004

                                       16
<PAGE>

                                        INVESTOR:

                                        The Cuttyhunk Fund Ltd.

                                               By:   /s/ Geoffrey M. Lewis
                                                     ---------------------------
                                               Name:  Geoffrey M. Lewis
                                               Title: Director

Aggregate Purchase Price: $1,132,200
Number of Shares of Common Stock: 102,000

Address for Notice:

73 Front Street
Hamilton HM 12
BERMUDA

with a copy to:

1285 6th Avenue
18th Floor
New York, NY 10019

                                       17
<PAGE>

                                        INVESTOR:

                                        Clarion Capital Corporation

                                               By:   /s/ Morton Cohen
                                                     ---------------------------
                                               Name:  Morton Cohen
                                               Title: Chairman

Aggregate Purchase Price: $435,675
Number of Shares of Common Stock: 39,250

Address for Notice:

1801 East 9th St.
Suite 1120
Cleveland, Ohio 44114

                                       18
<PAGE>

                                        INVESTOR:

                                        Clarion Partners, L.P.

                                               By:   /s/ Morton Cohen
                                                     ---------------------------
                                               Name:  Morton Cohen
                                               Title: General Partner

Aggregate Purchase Price: $217,837.50
Number of Shares of Common Stock: 19,625

Address for Notice:

1801 East 9th Street
Suite 1120
Cleveland, Ohio 44114

                                       19
<PAGE>

                                        INVESTOR:

                                        Clarion Offshore Fund Ltd.

                                               By:   /s/ Morton Cohen
                                                     ---------------------------
                                               Name:  Morton Cohen
                                               Title: Investment Manager

Aggregate Purchase Price: $217,837.50
Number of Shares of Common Stock: 19,625

Address for Notice:

1801 East 9th Street
Suite 1120
Cleveland, Ohio 44114

                                       20
<PAGE>

                                        INVESTOR:

                                        Deephaven Private Placement Trading Ltd.

                                               By:   /s/ Bruce Lieberman
                                                     ---------------------------
                                               Name:  Bruce Lieberman
                                               Title: Director Private Placement
                                                      Funding

Aggregate Purchase Price: $1,999,998
Number of Shares of Common Stock: 180,180

Address for Notice:

Deephaven Capital Management
c/o Bruce Lieberman
130 Cheshire Lane
Minnetonka, MN 55305

                                       21
<PAGE>

                                        INVESTOR:

                                        Franklin Street Trust Company

                                               By:   /s/ Carol E. Manzon
                                                     ---------------------------
                                               Name:  Carol E. Manzon
                                               Title: Secretary/Treasurer

Aggregate Purchase Price: $2,220,000
Number of Shares of Common Stock: 200,000

Address for Notice:

Franklin Street Trust Co.
Attn: Carol Manzon
1450 Raleigh Road, Ste. 300
Chapel Hill, NC 27514

                                       22
<PAGE>

                                        INVESTOR:

                                        Edward O. Thorp & Associates, LP

                                               By:   /s/ Jeffrey Thorp
                                                     ---------------------------
                                               Name:  Jeffrey Thorp
                                               Title: Attorney in Fact

Aggregate Purchase Price: $2,220,000
Number of Shares of Common Stock: 200,000

Address for Notice:

c/o Langley Capital LLC
535 Madison Ave., 15th Floor
New York, NY 10022

with copy to:

Edward O. Thorp & Associates, LP
Attn: Ellen Neal
610 Newport Center Drive, Suite 1240
Newport Beach, CA 92660

                                       23
<PAGE>

                                        INVESTOR:

                                        Daughters of Charity- Fund P

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $126,540
Number of Shares of Common Stock: 11,400

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       24
<PAGE>

                                        INVESTOR:

                                        Alfred I. Dupont Testamentary Trust
                                        Mazama Capital Trust

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $77,700
Number of Shares of Common Stock: 7,000

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       25
<PAGE>

                                        INVESTOR:

                                        East Bay Municipal Utility District

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $59,940
Number of Shares of Common Stock: 5,400

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       26
<PAGE>

                                        INVESTOR:

                                        GSAM GEMS Small Cap LLC

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $84,360
Number of Shares of Common Stock: 7,600

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       27
<PAGE>

                                        INVESTOR:

                                        Marin County Employee Retirement
                                        Association

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $112,110
Number of Shares of Common Stock: 10,100

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       28
<PAGE>

                                        INVESTOR:

                                        Memorial Hospital of South Bend, Inc.

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $36,630
Number of Shares of Common Stock: 3,300

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       29
<PAGE>

                                        INVESTOR:

                                        Nemows Foundation Mazama Capital
                                        Management

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $18,870
Number of Shares of Common Stock: 1,700

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       30
<PAGE>

                                        INVESTOR:

                                        PGH Pension Mazama Cap Mgmt.

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $26,640
Number of Shares of Common Stock: 2,400

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       31
<PAGE>

                                        INVESTOR:

                                        Les Schwab P/S Retirement Trust Mazama
                                        Capital Management

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $69,930
Number of Shares of Common Stock: 6,300

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       32
<PAGE>

                                        INVESTOR:

                                        SIIT Small Cap FD/Mazama Cap Mgmt.

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $589,410
Number of Shares of Common Stock: 53,100

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       33
<PAGE>

                                        INVESTOR:

                                        SIMT Small Cap GR/Mazama Cap Mgmt.

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $791,430
Number of Shares of Common Stock: 71,300

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       34
<PAGE>

                                        INVESTOR:

                                        Undiscovered Managers Small Cap Growth
                                        Fund

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $118,770
Number of Shares of Common Stock: 10,700

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       35
<PAGE>

                                        INVESTOR:

                                        Vision Small Cap Stock Fund

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $101,010
Number of Shares of Common Stock: 9,100

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       36
<PAGE>

                                        INVESTOR:

                                        Wilshire U.S. Equity Fund

                                               By:   /s/ Brian Alfrey
                                                     ---------------------------
                                               Name:  Brian Alfrey
                                               Title:

Aggregate Purchase Price: $6,660
Number of Shares of Common Stock: 600

Address for Notice:

Brian Alfrey
Mazama Capital Management
One SW Columbia, Suite 1860
Portland, OR 97258

                                       37
<PAGE>

                                        INVESTOR:

                                        Radyr Investments Ltd.

                                               By:   /s/ David Sims
                                                     ---------------------------
                                               Name:  David Sims
                                               Title: Director

Aggregate Purchase Price: $249,750
Number of Shares of Common Stock: 22,500

Address for Notice:

c/o Beacon Capital Management
PO Box 972
Roadtown, Tortola, BVI

with copy to:

Thomas Badian
Rhino Advisors Inc.
130 Wet 29th Street
5th Floor
New York, NY 10001
(212) 594-6555
(212) 594-7181 FAX

                                       38
<PAGE>

                                        INVESTOR:

                                        Belmont Park Investments

                                               By:   /s/ David Sims
                                                     ---------------------------
                                               Name:  David Sims
                                               Title: Director

Aggregate Purchase Price: $1,999,998
Number of Shares of Common Stock: 180,180

Address for Notice:

c/o Beacon Capital Management
PO Box 972
Roadtown, Tortola, BV1

with copy to:

Mr. Alan Flatt
Trinity Capital Advisors, Inc.
601 Montgomery Street, Suite 1060
San Francisco, CA 94111
(415) 217-7070
(415) 217-7072 FAX

                                       39
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., CUSTODIAN FOR FIRST
                                        AMERICAN MICROCAP FUND U/A
                                        DATED 01/01/98

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $4,679,760
Number of Shares of Common Stock: 421,600

                                       40
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., TRUSTEE FOR
                                        WILLIAM M. CHESTER CHILDRENS SMALL
                                        CAP U/A DATED 11/30/2000

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $9,990
Number of Shares of Common Stock: 900

                                       41
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., TRUSTEE FOR
                                        EDWARD S. TALMAGE RESIDUARY TRUST
                                        (2) U/A DATED 2/27/84

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $12,210
Number of Shares of Common Stock: 1,100

                                       42
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., TRUSTEE FOR
                                        MILWAUKEE FOUNDATION FIRSTAR
                                        MICROCAP FUND U/A DATED 01/21/00

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $87,690
Number of Shares of Common Stock: 7,900

                                       43
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., TRUSTEE FOR JANE B.
                                        PETTIT MICROCAP FUND U/A DATED 7/27/01

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $11,100
Number of Shares of Common Stock: 1,000

                                       44
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., AGENT FOR JOHN T.
                                        FRAUTSCHI LIFE TRUST MICROCAP FUND
                                        U/A DATED 12/17/92

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $253,080
Number of Shares of Common Stock: 22,800

                                       45
<PAGE>

                                        INVESTOR:

                                        FIRSTAR BANK N.A., AGENT FOR
                                        LYNDHURST ASSOCIATES MICROCAP FUND
                                        U/A DATED 4/20/95

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $296,370
Number of Shares of Common Stock: 26,700

                                       46
<PAGE>

                                        INVESTOR:

                                               FIRSTAR BANK N.A., AGENT FOR
                                               POSNER PARTNERS MICROCAP FUND
                                               U/A DATED 05/17/96

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $125,430
Number of Shares of Common Stock: 11,300

                                       47
<PAGE>

                                        INVESTOR:

                                        MARSHALL AND ISLELY TRUST COMPANY
                                        CUSTODIAN FOR THE MILWAUKEE JEWISH
                                        FEDERATION

                                               By:   /s/ Joseph A. Frohna
                                                     ---------------------------
                                               Name:  Joseph A. Frohna
                                               Title: Sr. Portfolio Manager

Aggregate Purchase Price: $74,370
Number of Shares of Common Stock: 6,700

                                       48
<PAGE>

                                    EXHIBIT A

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, OFFERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE APPLICABLE SECURITIES LAWS OR AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH REGISTRATION IS
NOT REQUIRED.

         SUBJECT TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL
BECOME VOID AFTER 5:00 P.M. EASTERN TIME ON OCTOBER 11, 2006 ("EXPIRATION
DATE").

                              VISIONICS CORPORATION

                      WARRANT TO PURCHASE 36,036 SHARES OF
             COMMON STOCK, $.01 PAR VALUE PER SHARE ("COMMON STOCK")

         For VALUE RECEIVED, Morgan Keegan & Company, Inc. ("Warrantholder"), is
entitled to purchase, subject to the provisions of this Warrant, from Visionics
Corporation, a Delaware corporation ("Company"), at any time not later than 5:00
P.M., Eastern time, on the Expiration Date, at an exercise price per share equal
to $16.86 (the exercise price in effect being herein called the "Warrant
Price"), 36,036 shares ("Warrant Shares") of Common Stock. The number of Warrant
Shares purchasable upon exercise of this Warrant and the Warrant Price shall be
subject to adjustment from time to time as described herein.

         Section 1. Registration. The Company shall maintain books for the
transfer and registration of the Warrant. Upon the initial issuance of the
Warrant, the Company shall issue and register the Warrant in the name of the
Warrantholder.

         Section 2. Transfers. As provided herein, this Warrant may be
transferred only pursuant to a registration statement filed under the Securities
Act of 1933, as amended ("Securities Act") or an exemption from such
registration. Subject to such restrictions, the Company shall transfer this
Warrant from time to time upon the books to be maintained by the Company for
that purpose, upon surrender thereof for transfer properly endorsed or
accompanied by appropriate instructions for transfer and such other documents as
may be reasonably required by the Company to establish that such transfer is
being made in accordance with the terms hereof, and a new Warrant shall be
issued to the transferee and the surrendered Warrant shall be canceled by the
Company.

         Section 3. Exercise of Warrant. Subject to the provisions hereof, the
Warrantholder may exercise this Warrant in whole or in part at any time upon
surrender of the Warrant, together with delivery of the duly executed Warrant
exercise form attached hereto as Appendix A (the "Exercise Agreement") and
payment by cash, certified check or wire transfer of funds (or by cashless
exercise as provided below) for the Warrant Price for that number of Warrant
Shares then being purchased, to the Company during normal business hours on any
business day at the Company's principal executive offices (or such other office
or agency of the Company as it may

<PAGE>

designate by notice to the holder hereof). The Warrant Shares so purchased shall
be deemed to be issued to the holder hereof or such holder's designee, as the
record owner of such shares, as of the close of business on the date on which
this Warrant shall have been surrendered (or evidence of loss, theft or
destruction thereof and security or indemnity satisfactory to the Company shall
have been provided to the Company), the Warrant Price shall have been paid and
the completed Exercise Agreement shall have been delivered. Certificates for the
Warrant Shares so purchased, representing the aggregate number of shares
specified in the Exercise Agreement, shall be delivered to the holder hereof
within a reasonable time, not exceeding seven (7) business days, after this
Warrant shall have been so exercised. The certificates so delivered shall be in
such denominations as may be requested by the holder hereof and shall be
registered in the name of such holder or such other name as shall be designated
by such holder. If this Warrant shall have been exercised only in part, then,
unless this Warrant has expired, the Company shall, at its expense, at the time
of delivery of such certificates, deliver to the holder a new Warrant
representing the number of shares with respect to which this Warrant shall not
then have been exercised.

                  Each exercise hereof shall constitute the representation and
warranty of the Warrantholder to the Company that the representations and
warranties contained in Article 5 of the Purchase Agreement (as defined below)
are true and correct in all material respects with respect to the Warrantholder
as of the time of such exercise.

         Section 4. Compliance with the Securities Act of 1933. The Company may
cause the legend set forth on the first page of this Warrant to be set forth on
each Warrant or similar legend on any security issued or issuable upon exercise
of this Warrant, unless counsel for the Company is of the opinion as to any such
security that such legend is unnecessary.

         Section 5. Payment of Taxes. The Company will pay any documentary stamp
taxes attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the registered holder of this Warrant, and in such case,
the Company shall not be required to issue or deliver any certificate for
Warrant Shares or any Warrant until the person requesting the same has paid to
the Company the amount of such tax or has established to the Company's
reasonable satisfaction that such tax has been paid. The holder shall be
responsible for income taxes due under federal, state or other law, if any such
tax is due.

         Section 6. Mutilated or Missing Warrants. In case this Warrant shall be
mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and
substitution of and upon cancellation of the mutilated Warrant, or in lieu of
and substitution for the Warrant lost, stolen or destroyed, a new Warrant of
like tenor and for the purchase of a like number of Warrant Shares, but only
upon receipt of evidence reasonably satisfactory to the Company of such loss,
theft or destruction of the Warrant, and with respect to a lost, stolen or
destroyed Warrant, reasonable indemnity or bond with respect thereto, if
requested by the Company.

         Section 7. Reservation of Common Stock. The Company hereby represents
and warrants that there have been reserved, and the Company shall at all
applicable times keep reserved until

                                       2
<PAGE>

issued (if necessary) as contemplated by this Section 7, out of the authorized
and unissued Common Stock, sufficient shares to provide for the exercise of the
rights of purchase represented by the Warrant. The Company agrees that all
Warrant Shares issued upon exercise of the Warrant shall be, at the time of
delivery of the certificates for such Warrant Shares, duly authorized, validly
issued, fully paid and non-assessable shares of Common Stock of the Company.

         Section 8. Adjustments. Subject and pursuant to the provisions of this
Section 8, the Warrant Price and number of Warrant Shares subject to this
Warrant shall be subject to adjustment from time to time as set forth
hereinafter.

                  (a) If the Company shall at any time or from time to time
while the Warrant is outstanding, pay a dividend or make a distribution on its
Common Stock in shares of Common Stock, subdivide its outstanding shares of
Common Stock into a greater number of shares or combine its outstanding shares
of Common Stock into a smaller number of shares or issue by reclassification of
its outstanding shares of Common Stock any shares of its capital stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), then the number of
Warrant Shares purchasable upon exercise of the Warrant and the Warrant Price in
effect immediately prior to the date upon which such change shall become
effective, shall be adjusted by the Company so that the Warrantholder thereafter
exercising the Warrant shall be entitled to receive the number of shares of
Common Stock or other capital stock which the Warrantholder would have received
if the Warrant had been exercised immediately prior to such event upon payment
of a Warrant Price that has been adjusted to reflect a fair allocation of the
economics of such event to the Warrantholder. Such adjustments shall be made
successively whenever any event listed above shall occur.

                  (b) If any capital reorganization, reclassification of the
capital stock of the Company, consolidation or merger of the Company with
another corporation in which the Company is not the survivor, or sale, transfer
or other disposition of all or substantially all of the Company's assets to
another corporation shall be effected, then, as a condition of such
reorganization, reclassification, consolidation, merger, sale, transfer or other
disposition, lawful and adequate provision shall be made whereby each
Warrantholder shall thereafter have the right to purchase and receive upon the
basis and upon the terms and conditions herein specified and in lieu of the
Warrant Shares immediately theretofore issuable upon exercise of the Warrant,
such shares of stock, securities or assets as would have been issuable or
payable with respect to or in exchange for a number of Warrant Shares equal to
the number of Warrant Shares immediately theretofore issuable upon exercise of
the Warrant, had such reorganization, reclassification, consolidation, merger,
sale, transfer or other disposition not taken place, and in any such case
appropriate provision shall be made with respect to the rights and interests of
each Warrantholder to the end that the provisions hereof (including, without
limitation, provision for adjustment of the Warrant Price) shall thereafter be
applicable, as nearly equivalent as may be practicable in relation to any shares
of stock, securities or properties thereafter deliverable upon the exercise
thereof. The Company shall not effect any such consolidation, merger, sale,
transfer or other disposition unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger, or the corporation purchasing or
otherwise acquiring such assets or other appropriate corporation or entity shall
assume the obligation to deliver to the holder of the Warrant such shares of
stock,

                                       3
<PAGE>

securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to purchase, and the other obligations under this
Warrant. The provisions of this paragraph (b) shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales,
transfers or other dispositions.

                  (c) In case the Company shall fix a payment date for the
making of a distribution to all holders of Common Stock (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing corporation) of evidences of indebtedness or assets
(other than cash dividends or cash distributions payable out of consolidated
earnings or earned surplus or dividends or distributions referred to in Section
8(a)), or subscription rights or warrants, the Warrant Price to be in effect
after such payment date shall be determined by multiplying the Warrant Price in
effect immediately prior to such payment date by a fraction, the numerator of
which shall be the total number of shares of Common Stock outstanding multiplied
by the Market Price per share of Common Stock (as defined below), less the fair
market value (as determined by the Company's Board of Directors in good faith)
of said assets or evidences of indebtedness so distributed, or of such
subscription rights or warrants, and the denominator of which shall be the total
number of shares of Common Stock outstanding multiplied by such Market Price per
share of Common Stock. "Market Price" as of a particular date (the "Valuation
Date") shall mean the following: (a) if the Common Stock is then listed on a
national stock exchange, the closing sale price of one share of Common Stock on
such exchange on the last trading day prior to the Valuation Date; (b) if the
Common Stock is then quoted on the Nasdaq National Market ("Nasdaq"), the
closing sale price of one share of Common Stock on Nasdaq on the last trading
day prior to the Valuation Date or, if no such closing sale price is available,
the average of the high bid and the low sales price quoted on Nasdaq on the last
trading day prior to the Valuation Date; or (c) if the Common Stock is not then
listed on a national stock exchange or quoted on Nasdaq, the fair market value
of one share of Common Stock as of the Valuation Date, which shall be determined
in good faith by the Board of Directors of the Company and the Warrantholder.
The Board of Directors of the Company shall respond promptly, in writing, to an
inquiry by the Warrantholder prior to the exercise hereunder as to the Market
Value of a share of Common Stock as determined by the Board of Directors of the
Company. In the event that the Board of Directors of the Company and the
Warrantholder are unable to agree upon the fair market value in respect of
subpart (c) hereof, the Company and the Warrantholder shall jointly select an
appraisor, who is experienced in such matters. The decision of such appraiser
shall be final and conclusive, and the cost of such appraiser shall be borne
evenly by the Company and the Warrantholder. Such adjustment shall be made
successively whenever such a payment date is fixed.

                  (d) For the term of this Warrant, in addition to the
provisions contained above, the Warrant Price shall be subject to adjustment as
provided below. An adjustment to the Warrant Price shall become effective
immediately after the payment date in the case of each dividend or distribution
and immediately after the effective date of each other event which requires an
adjustment.

                  (e) In the event that, as a result of an adjustment made
pursuant to Section 8(a), the holder of this Warrant shall become entitled to
receive any shares of capital stock of the Company other than shares of Common
Stock, the number of such other shares so receivable upon exercise of this
Warrant shall be subject thereafter to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect
to the Warrant Shares contained in this Warrant.

                                       4
<PAGE>

                  (f) Except as provided in subsection (g) hereof, if and
whenever the Company shall issue or sell, or is, in accordance with any of
subsections (f)(l) through (f)(7) hereof, deemed to have issued or sold, any
shares of Common Stock for a consideration per share less than the Warrant Price
in effect immediately prior to the time of such issue or sale, then and in each
such case (a "Trigger Issuance") the then-existing Warrant Price, shall be
reduced, as of the close of business on the effective date of the Trigger
Issuance, to a price determined as follows:

                           Adjusted Warrant Price  =  (A x B) + D
                                                      -----------
                                                          A+C
                                          where

                           "A" equals the number of shares of Common Stock
         outstanding (including any Additional Shares of Common Stock (as
         defined below) immediately preceding such Trigger Issuance);

                           "B" equals the Warrant Price in effect immediately
         preceding such Trigger Issuance;

                           "C" equals the number of Additional Shares of Common
         Stock (as adjusted for stock splits, stock combinations,
         recapitalizations, and dividends and the like) issued or deemed issued
         hereunder as a result of all Trigger Issuances; and

                           "D" equals the aggregate consideration, if any,
         received or deemed to be received by the Company upon such Trigger
         Issuance.

                  For purposes of this subsection (f), "Additional Shares of
Common Stock" shall mean all shares of Common Stock issued by the Company or
deemed to be issued pursuant to this subsection (f), other than Excluded
Issuances (as defined in subsection (g) hereof).

                  For purposes of this subsection (f), the following subsections
(f)(l) to (f)(7) shall also be applicable (subject, in each such case, to the
provisions of subsection (g) hereof) and to each other subsection contained in
this subsection (f):

         (f)(1) Issuance of Rights or Options. In case at any time the Company
         shall in any manner grant (directly and not by assumption in a merger
         or otherwise) any warrants or other rights to subscribe for or to
         purchase, or any options for the purchase of, Common Stock or any stock
         or security convertible into or exchangeable for Common Stock (such
         warrants, rights or options being called "Options" and such convertible
         or exchangeable stock or securities being called "Convertible
         Securities") whether or not such Options or the right to convert or
         exchange any such Convertible Securities are immediately exercisable,
         and the price per share for which Common Stock is issuable upon the
         exercise of such Options or upon the conversion or exchange of such
         Convertible Securities (determined by dividing (i) the sum (which sum
         shall constitute the applicable consideration (the "Consideration")) of
         (x) the total amount, if any, received or receivable

                                       5
<PAGE>

         by the Company as consideration for the granting of such Options, plus
         (y) the aggregate amount of additional consideration payable to the
         Company upon the exercise of all such Options, plus (z), in the case of
         such Options which relate to Convertible Securities, the aggregate
         amount of additional consideration, if any, payable upon the issue or
         sale of such Convertible Securities and upon the conversion or exchange
         thereof, by (ii) the total maximum number of shares of Common Stock
         issuable upon the exercise of such Options or upon the conversion or
         exchange of all such Convertible Securities issuable upon the exercise
         of such Options) shall be less than the Warrant Price in effect
         immediately prior to the time of the granting of such Options, then the
         total number of shares of Common Stock issuable upon the exercise of
         such Options or upon conversion or exchange of the total amount of such
         Convertible Securities issuable upon the exercise of such Options shall
         be deemed to have been issued for such price per share as of the date
         of granting of such Options or the issuance of such Convertible
         Securities and thereafter shall be deemed to be outstanding for
         purposes of adjusting the Warrant Price. Except as otherwise provided
         in subsection 8(f)(3), no adjustment of the Warrant Price shall be made
         upon the actual issue of such Common Stock or of such Convertible
         Securities upon exercise of such Options or upon the actual issue of
         such Common Stock upon conversion or exchange of such Convertible
         Securities.

         (f)(2) Issuance of Convertible Securities. In case the Company shall in
         any manner issue (directly and not by assumption in a merger or
         otherwise) or sell any Convertible Securities, whether or not the
         rights to exchange or convert any such Convertible Securities are
         immediately exercisable, and the price per share for which Common Stock
         is issuable upon such conversion or exchange (determined by dividing
         (i) the sum (which sum shall constitute the applicable Consideration)
         of (x) the total amount received or receivable by the Company as
         consideration for the issue or sale of such Convertible Securities,
         plus (y) the aggregate amount of additional consideration, if any,
         payable to the Company upon the conversion or exchange thereof, by (ii)
         the total number of shares of Common Stock issuable upon the conversion
         or exchange of all such Convertible Securities) shall be less than the
         Warrant Price in effect immediately prior to the time of such issue or
         sale, then the total maximum number of shares of Common Stock issuable
         upon conversion or exchange of all such Convertible Securities shall be
         deemed to have been issued for such price per share as of the date of
         the issue or sale of such Convertible Securities and thereafter shall
         be deemed to be outstanding for purposes of adjusting the Warrant
         Price, provided that (a) except as otherwise provided in subsection
         8(f)(3), no adjustment of the Warrant Price shall be made upon the
         actual issuance of such Common Stock upon conversion or exchange of
         such Convertible Securities and (b) no further adjustment of the
         Warrant Price shall be made by reason of the issue or sale of
         Convertible Securities upon exercise of any Options to purchase any
         such Convertible Securities for which adjustments of the Warrant Price
         have been made pursuant to other provisions of this subsection 8(f)(2).

         (f)(3) Change in Option Price or Conversion Rate. Upon the happening of
         any of the following events, namely, if the purchase price provided for
         in any Option referred to in subsection 8(f)(l) hereof, the additional
         consideration, if any, payable upon the conversion or exchange of any
         Convertible Securities referred to in subsections 8(f)(l) or 8(f)(2),
         or the rate at which Convertible Securities referred to in subsections
         8(f)(l) or 8(f)(2) are convertible into or exchangeable for Common
         Stock shall change at any time (including,

                                       6
<PAGE>

         but not limited to, changes under or by reason of provisions designed
         to protect against dilution), the Warrant Price in effect at the time
         of such event shall forthwith be readjusted to the Warrant Price which
         would have been in effect at such time had such Options or Convertible
         Securities still outstanding provided for such changed purchase price,
         additional consideration or conversion rate, as the case may be, at the
         time initially granted, issued or sold; and on the termination of any
         such Option or any such right to convert or exchange such Convertible
         Securities (including without limitation upon the redemption or
         purchase for Consideration of all such Convertible Securities by the
         Company), the Warrant Price then in effect hereunder shall forthwith be
         changed to the Warrant Price which would have been in effect at the
         time of such termination had such Option or Convertible Securities, to
         the extent outstanding immediately prior to such termination, never
         been issued.

         (f)(4) Stock Dividends. Subject to the provisions hereof, in case the
         Company shall declare a dividend or make any other distribution upon
         any stock of the Company (other than the Common Stock) payable in
         Common Stock, Options or Convertible Securities, then any Common Stock,
         Options or Convertible Securities, as the case may be, issuable in
         payment of such dividend or distribution shall be deemed to have been
         issued or sold without consideration.

         (f)(5) Consideration for Stock. In case any shares of Common Stock,
         Options or Convertible Securities shall be issued or sold for cash, the
         Consideration received therefor shall be deemed to be the net amount
         received by the Company therefor, after deduction therefrom of any
         expenses incurred or any underwriting commissions or concessions paid
         or allowed by the Company in connection therewith. In case any shares
         of Common Stock, Options or Convertible Securities shall be issued or
         sold for a Consideration other than cash, the amount of the
         Consideration other than cash received by the Company shall be deemed
         to be the fair value of such Consideration as determined in good faith
         by the Board of Directors of the Company, after deduction of any
         expenses incurred or any underwriting commissions or concessions paid
         or allowed by the Company in connection therewith. In case any Options
         shall be issued in connection with the issue and sale of other
         securities of the Company, together comprising one integral transaction
         in which no specific consideration is allocated to such Options by the
         parties thereto, such Options shall be deemed to have been issued for
         such consideration as determined in good faith by the Board of
         Directors of the Company.

         (f)(6) Record Date. In case the Company shall take a record of the
         holders of its Common Stock for the purpose of entitling them (i) to
         receive a dividend or other distribution payable in Common Stock,
         Options or Convertible Securities or (ii) to subscribe for or purchase
         Common Stock, Options or Convertible Securities, then such record date
         shall be deemed to be the date of the issue or sale of the shares of
         Common Stock deemed to have been issued or sold upon the declaration of
         such dividend or the making of such other distribution or the date of
         the granting of such right of subscription or purchase, as the case may
         be.

         (f)(7) Treasury Shares. The number of shares of Common Stock
         outstanding at any given time shall not include shares owned or held by
         or for the account of the Company

                                       7
<PAGE>

         or any of its wholly-owned subsidiaries, and the disposition of any
         such shares shall be considered an issue or sale of Common Stock for
         the purpose of this subsection (f).

                  (g) Anything herein to the contrary notwithstanding, the
Company shall not be required to make any adjustment of the Warrant Price in the
case of the issuance of any of (A) capital stock, Options or Convertible
Securities issued to directors, officers, employees or consultants of the
Company in connection with their service as directors of the Company, their
employment by the Company or their retention as consultants by the Company
pursuant to an equity compensation program approved by the Board of Directors of
the Company or the compensation committee of the Board of Directors of the
Company, (B) sales of shares of Common Stock upon the conversion or exercise of
Options or Convertible Securities issued prior to the date hereof or (C) capital
stock issued as full or partial consideration for a merger or acquisition, or a
strategic allegiance or alliance in which the Company with respect to such
strategic allegiance or alliance issues shares of its equity securities having
an aggregate Fair Market Value (as defined below) of less than $10 million,
approved by the Board of Directors of the Company. The "Fair Market Value" of a
security as of a particular date (the "Valuation Date") shall mean the
following: (a) if the security is then listed on a national stock exchange, the
closing sale price of one security on such exchange on the last trading day
prior to the Valuation Date; (b) if the security is then quoted on Nasdaq, the
closing sale price of one security on Nasdaq on the last trading day prior to
the Valuation Date or, if no such closing sale price is available, the average
of the high bid and the low sales price quoted on Nasdaq on the last trading day
prior to the Valuation Date; or (c) if the security is not then listed on a
national stock exchange or quoted on Nasdaq, the fair market value of one
security as of the Valuation Date, shall be determined in good faith by a
nationally selected investment banking firm or other nationally recognized
business appraiser selected by the Board of Directors of the Company. The
decision of such appraiser shall be final and conclusive, and the cost of such
appraiser shall be borne evenly by the Company and the Investors (pro rata in
respect of their ownership of Securities at such time) as such terms are defined
in that certain Purchase Agreement among the Company and the Investors dated
October 5, 2001. An "Excluded Issuance" shall mean each of items (A), (B) and
(C) above.

         Section 9. Fractional Interest. The Company shall not be required to
issue fractions of Warrant Shares upon the exercise of the Warrant. If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this Section 9, be delivered upon such exercise, the Company, in
lieu of delivering such fractional share, shall pay to the exercising holder of
this Warrant an amount in cash equal to the current Fair Market Value of such
fractional share of Common Stock.

         Section 10. Extension of Expiration Date. If the Company fails to cause
any Registration Statement covering Registrable Securities (capitalized terms
used in this section are as defined in the Registration Rights Agreement dated
October 5, 2001) (the "Registration Rights Agreement") to be declared effective
prior to the applicable dates set forth therein, or if any of the events
specified in clause (B) or (C) of Section 2(c) of the Registration Rights
Agreement occurs and the Blackout Period (whether alone, or in combination with
any other Blackout Period) continues for more than 60 days in any 12 month
period, or for more than a total of 90 days, then the Expiration Date of this
Warrant shall be extended one day for each day beyond the 60-day or 90-day
limits, as the case may be, that the Blackout Period continues.

                                       8
<PAGE>

         Section 11. Benefits. Nothing in this Warrant shall be construed to
give any person, firm or corporation (other than the Company and the
Warrantholder) any legal or equitable right, remedy or claim, it being agreed
that this Warrant shall be for the sole and exclusive benefit of the Company and
the Warrantholder.

         Section 12. Notices to Warrantholder. Upon the happening of any event
requiring an adjustment of the Warrant Price, the Company shall promptly give
written notice thereof to the Warrantholder at the address appearing in the
records of the Company, stating the adjusted Warrant Price and the adjusted
number of Warrant Shares resulting from such event and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based. Failure to give such notice to the Warrantholder or any
defect therein shall not affect the legality or validity of the subject
adjustment.

         Section 13. Identity of Transfer Agent. The Transfer Agent for the
Common Stock is Wells Fargo Shareowner Services. Upon the appointment of any
subsequent transfer agent for the Common Stock or other shares of the Company's
capital stock issuable upon the exercise of the rights of purchase represented
by the Warrant, the Company will mail to the Warrantholder a statement setting
forth the name and address of such transfer agent.

         Section 14. Notices. Any notice pursuant hereto to be given or made by
the Warrantholder to or on the Company shall be sufficiently given or made if
sent by certified mail, return receipt requested, postage prepaid, addressed as
follows:

                             Visionics Corporation
                             5600 Rowland Road
                             Minnetonka, Minnesota 55353
                             Attn: Robert Gallagher
                             Fax: (952) 932-7181

or such other address as the Company may specify in writing by notice to the
Warrantholder complying as to delivery with the terms of this Section 14.

         Any notice pursuant hereto to be given or made by the Company to or on
the Warrantholder shall be sufficiently given or made if personally delivered or
if sent by an internationally recognized courier services by overnight service,
to the address set forth on the books of the Company or, as to each of the
Company and the Warrantholder, at such other address as shall be designated by
such party by written notice to the other party complying as to delivery with
the terms of this Section 14. All such notices, requests, demands, directions
and other communications shall, when sent by courier be effective one (1) day
after delivery to such courier as provided and addressed as aforesaid.

         Section 15. Registration Rights. The initial holder of this Warrant is
entitled to the benefit of certain registration rights in respect of the Warrant
Share as provided in the Registration Rights Agreement, and any subsequent
holder hereof may be entitled to such rights.

                                       9
<PAGE>

         Section 16. Successors. All the covenants and provisions hereof by or
for the benefit of the Warrantholder shall bind and inure to the benefit of its
respective successors and assigns hereunder.

         Section 17. Governing Law. This Warrant shall be deemed to be a
contract made under the laws of the State of New York, without giving effect to
its conflict of law principles, and for all purposes shall be construed in
accordance with the laws of said State; provided, however, that, insofar as the
Company is incorporated under the laws of the State of Delaware, the General
Corporation Law of the State of Delaware (or any successor statute) shall govern
those matters that apply to the internal governance of the Company.

         Section 18. Cashless Exercise.

                  (a) Net Issue Election. Notwithstanding any other provision
contained herein to the contrary, the Warrantholder may elect to receive,
without the payment by the Warrantholder of the aggregate Warrant Price in
respect of the shares of Common Stock to be acquired, shares of Common Stock
equal to the value of this Warrant or any portion hereof by the surrender of
this Warrant (or such portion of this Warrant being so exercised) together with
the Net Issue Election Notice annexed hereto as Appendix B duly executed, at the
office of the Company. Thereupon, the Company shall issue to the Warrantholder
such number of fully paid, validly issued and nonassessable shares of Common
Stock as is computed using the following formula:

                                  X = Y (A - B)
                                      ---------
                                          A

                        where

                  "X" = the number of shares of Common Stock which the
Warrantholder has then requested be issued to the Warrantholder

                  "Y" = the total number of shares of Common Stock covered by
this Warrant which the Warrantholder has surrendered at such time for cash-less
exercise

                  "A" = the "Fair Market Value" of one share of Common Stock as
at the time the net issue election is made

                  "B" = the Warrant Price in effect under this Warrant at the
time the net issue election is made.

         Section 19. Call Provision. Notwithstanding any other provision
contained herein to the contrary, in the event that the closing bid price of a
share of Common Stock as traded on Nasdaq (or such other exchange as the Common
Stock may then be listed) exceeds 150% of the Warrant Price for twenty (20)
consecutive trading sessions and all of the Warrant Shares issuable hereunder
are registered pursuant to an effective Registration Statement (as defined in
the Registration Rights Agreement), the Company, upon ten (10) business days
prior written notice (the "Notice Period"), following such twenty (20) day
period, to the Warrantholder, may demand that the Warrantholder exercise its
rights with regard to all Warrant Shares and the

                                       10
<PAGE>

Warrantholder must exercise its rights prior to the expiration of the Notice
Period or if such exercise is not made or if only a partial exercise is made,
any and all rights to further exercise rights to acquire Warrant Shares
hereunder shall cease upon the expiration of the Notice Period.

         Section 20. Amendments and Waivers. This Warrant may be amended only by
a writing signed by the Company and the Warrantholder.

                                       11
<PAGE>

         IN WITNESS WHEREOF, Visionics Corporation has caused this Warrant to be
duly executed, as of the day and year first above written.

                                        VISIONICS CORPORATION

                                        By:       /s/ Robert F. Gallagher
                                            ------------------------------------

                                            Name: Robert F. Gallagher
                                            Title: Chief Financial Officer

                                       12
<PAGE>

                                    EXHIBIT A

                                   APPENDIX A
                              Visionics Corporation
                              WARRANT EXERCISE FORM

To: Visionics Corporation

         The undersigned hereby irrevocably elects to exercise the right of
purchase represented by the within Warrant ("Warrant") for, and to purchase
thereunder by the payment of the Warrant Price and surrender of the Warrant,
_______________ shares of Common Stock ("Warrant Shares") provided for therein,
and requests that certificates for the Warrant Shares be issued as follows:

                               --------------------------------------
                               Name

                               --------------------------------------
                               Address

                               --------------------------------------
                               Address

                               --------------------------------------
                               Federal Tax ID or Social Security No.

         and delivered by

         |_|      certified mail to the above address, or

         |_|      electronically (provide DWAC Instructions:_______________), or

         |_|      other (specify: _______________________________).

and, if the number of Warrant Shares shall not be all the Warrant Shares
purchasable upon exercise of the Warrant, that a new Warrant for the balance of
the Warrant Shares purchasable upon exercise of this Warrant be registered in
the name of the undersigned Warrantholder or the undersigned's Assignee as below
indicated and delivered to the address stated below.

         By exercising the rights represented by this Warrant, the undersigned
hereby certifies that, as of the date of exercise of this Warrant, the
representations and warranties contained in Section 5 of the Purchase Agreement
are true and correct in all material respects with respect to the undersigned.

Dated: ___________________, ____

Note: The signature must correspond with    Signature:
the name of the registered holder as                  --------------------------
written on the first page of the Warrant
in every particular, without alteration
or enlargement or any change whatever,
unless the Warrant has been assigned.       ------------------------------------
                                            Name (please print)

                                            ------------------------------------

                                            ------------------------------------
                                            Address

                                            ------------------------------------
                                            Federal Identification or
                                            Social Security No.:
                                                                 ---------------

<PAGE>

                                  APPENDIX "B"

                            Net Issue Election Notice

To: Visionics Corporation

Date:_________________________

         The undersigned hereby elects under Section 18 of this Warrant to
surrender the right to purchase ____________ shares of Common Stock pursuant to
this Warrant and hereby requests the issuance of _____________ shares of Common
Stock. The certificate(s) for the shares issuable upon such net issue election
shall be issued in the name of the undersigned or as otherwise indicated below.

-----------------------------------------
Signature

-----------------------------------------
Name for Registration

-----------------------------------------
Mailing Address<PAGE>

                                                                    EXHIBIT 4.23

================================================================================

              This Supplemental Indenture is, among, other things,
                             A MORTGAGE OF CHATTELS

                         Southern California Gas Company

                                       TO

                     Wells Fargo Bank, National Association
                        (formerly American Trust Company)
                                     TRUSTEE

                                ----------------

                             SUPPLEMENTAL INDENTURE
                   To original Indenture dated October 1, 1940

                                ----------------

                          DATED AS OF FEBRUARY 1, 1981

================================================================================
<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

PARTIES ...................................................................   1

RECITALS:
     Execution of Original Indenture and Supplements thereto ..............   1
     Recording of Original Indenture and Supplements thereto ..............   1
     Bonds heretofore issued ..............................................   3
     Creation of Series N, due 2001 .......................................   3
     Lien on After Acquired Property ......................................   3
     Purpose of Supplemental Indenture ....................................   4
     Fulfillment of conditions precedent ..................................   4
     Consideration and Authorization ......................................   5

GRANTING CLAUSES:
     Real property in California counties specified in Schedule A .........   6
     Plant, system and utilities in specified counties and elsewhere ......   6
     Other properties now or hereafter owned ..............................   7
     Excepted properties ..................................................   7

HABENDUM AND DECLARATION OF TRUST .........................................   8

                                   ARTICLE I.

               AMOUNT, FORM, NUMBERING, DENOMINATION, TRANSFER AND
                    EXCHANGE OF BONDS OF SERIES N, DUE 2001.

SECTION 1.01.  Authorized amount of bonds of Series N, due 2001 ...........   8

SECTION 1.02.  Bonds of Series N, due 2001; issuable as fully registered
                 bonds; form of registered bonds and certificate ..........   9

SECTION 1.03.  Exchangeability of bonds ...................................  14

SECTION 1.04.  Offices or agencies for payment, registration, transfer and
                 exchange of bonds of Series N, due 2001 ..................  15

SECTION 1.05.  Certain conditions as to transfer, etc., of bonds of
                 Series N, due 2001 .......................................  15
<PAGE>

                                       ii

                                                                            PAGE
                                                                            ----
                                   ARTICLE II
                INTEREST, MATURITY DATE, REDEMPTION, SINKING FUND
                          AND CERTAIN OTHER PROVISIONS.

SECTION 2.01.  Interest rate, maturity date and places and medium of
                 payment ..................................................  15

SECTION 2.02.  Redemption of bonds of Series N, due 2001 ..................  15

SECTION 2.03.  Sinking Fund for bonds of Series N, due 2001 ...............  17

SECTION 2.04.  Other provisions of bonds of Series N, due 2001 ............  17

                                  ARTICLE III.
                               SUNDRY PROVISIONS.

SECTION 3.01.  Trustee not responsible for recitals, recordation of
                 Supplemental Indenture as required by law ................  17

SECTION 3.02.  Date of Supplemental Indenture and bonds of Series N,
                 due 2001, are dates of identification ....................  18

SECTION 3.03.  Supplemental Indenture deemed to be part of Original
                 Indenture ................................................  18

SECTION 3.04.  Trustee accepts trusts on same terms expressed in Original
                 Indenture ................................................  18

SECTION 3.05.  Execution of Supplemental Indenture in counterpart .........  18

TESTIMONIUM ...............................................................  19

SIGNATURES AND SEALS ......................................................  19

ACKNOWLEDGMENTS ...........................................................  20

SCHEDULE A ................................................................  22
<PAGE>

                                       1

               This Supplemental Indenture is, among other things,

                             A MORTGAGE OF CHATTELS

      THIS SUPPLEMENTAL INDENTURE, dated as of February 1, 1981, made and
entered into in the City of Los Angeles, State of California by and between
SOUTHERN CALIFORNIA GAS COMPANY, a corporation duly organized and existing under
the laws of the State of California, and having its principal place of business
in the City of Los Angeles, State of California (hereinafter sometimes called
the "Corporation"), party of the first part, and WELLS FARGO BANK, NATIONAL
ASSOCIATION (formerly AMERICAN TRUST COMPANY), a national banking association
duly organized and existing under and by virtue of the laws of the United States
of America, and having its principal place of business in the City and County of
San Francisco, California (hereinafter sometimes called the "Trustee"), party of
the second part,

      W I T N E S S E T H :

      WHEREAS, the Corporation has executed and delivered to the Trustee a
certain Indenture (hereinafter sometimes called the "Original Indenture") dated
October 1, 1940, to secure bonds of the Corporation designated generally as its
"First Mortgage Bonds" to be issued from time to time in one or more series, any
of which series may vary from any other as to certain particulars specified in
Section 2.01 of the Original Indenture, and the Corporation has executed and
delivered to the Trustee Supplemental Indentures dated, respectively, as of July
1, 1947, May 1, 1948, June 1, 1950, April 1, 1952, August 1, 1955, June 1, 1956,
December 1, 1956, July 1, 1957, October 1, 1959, July 1, 1963, September 1,
1964, June 1, 1965, December 1, 1966, October 1, 1970, August 1, 1972, September
1, 1972, October 1, 1974, May 1, 1976, October 1, 1977 and November 1, 1979,
supplementing and amending the Original Indenture (the Original Indenture
together with this Supplemental Indenture and all other supplemental indentures
being herein collectively sometimes referred to as the "Indenture"); and

      WHEREAS, the Original Indenture and said Supplemental Indentures dated,
respectively, as of July 1 1947, May 1, 1948, June 1, 1950, April 1, 1952 and
August 1, 1955, are recorded in the office of the
<PAGE>

                                       2

County Recorder of each of the Counties listed below in the Official Records
thereof, as stated in said Supplemental Indenture dated as of June 1, 1956; said
Supplemental Indentures dated, respectively, as of June 1, 1956 and December 1,
1956, are so recorded as stated in said Supplemental Indenture dated as of July
1, 1957; said Supplemental Indenture dated as of July 1, 1957 is so recorded as
stated in said Supplemental Indenture dated as of October 1, 1959; said
Supplemental Indenture dated as of October 1, 1959 is so recorded as stated in
said Supplemental Indenture dated as of July 1, 1963; said Supplemental
Indenture dated as of July 1, 1963 is so recorded as stated in said Supplemental
Indenture dated as of September 1, 1964; said Supplemental Indenture dated as of
September 1, 1964 is so recorded as stated in said Supplemental Indenture dated
as of June 1, 1965; said Supplemental Indenture dated as of June 1, 1965 is so
recorded as stated in said Supplemental Indenture dated as of December 1, 1966;
said Supplemental Indenture dated as of December 1, 1966 is so recorded as
stated in said Supplemental Indenture dated as of October 1, 1970; said
Supplemental Indenture dated as of October 1, 1970 is so recorded as stated in
said Supplemental Indenture dated as of August 1, 1972; said Supplemental
Indenture dated as of August 1, 1972 is so recorded as stated in said
Supplemental Indenture dated as of September 1, 1972; said Supplemental
Indenture dated as of September 1, 1972 is so recorded as stated in said
Supplemental Indenture dated as of October 1, 1974; said Supplemental Indenture
dated as of October 1, 1974 is so recorded as stated in said Supplemental
Indenture dated as of May 1, 1976; said Supplemental Indenture dated as of May
1, 1976 is so recorded as stated in said Supplemental Indenture dated as of
October 1, 1977; said Supplemental Indenture dated as of October 1, 1977 so
recorded as stated in said Supplemental Indenture dated as of November 1, 1979;
and said Supplemental Indenture dated as of November 1, 1979 is recorded in the
offices of the County Recorders in the Counties of the State of California, as
follows:

  County               Reference                             Date
  ------               ---------                             ----
Fresno           Book 7403, Pages 838-867     Official Records  November 1, 1979
Imperial         Book 1443, Pages 92-123      Official Records  November 1. 1979
Kern             Book 5241, Pages 448-479     Official Records  November 1, 1979
Kings            Book 1161, Pages 263-294     Official Records  November 1, 1979
Los Angeles      Book 1979, 79-1236112        Official Records  November 2, 1979
<PAGE>

                                       3

  County               Reference                             Date
  ------               ---------                             ----
Orange           Book 13379, Pages 825-856    Official Records  November 1, 1979
Riverside        Book 1979, Page 234542       Official Records  November 2, 1979
San Bernardino   Book 9806, Pages 1046-1077   Official Records  November 2, 1979
San Diego        Book 1979, Pages 1963-1994   Official Records  November 1, 1979
San Luis Obispo  Vol, 2198, Pages 893-924     Official Records  November 1, 1979
Santa Barbara    Book 1979,79-51419           Official Records  November 1, 1979
Tulare           Vol. 3711, Pages 1-32        Official Records  November 1, 1979
Ventura          Book 5530, Pages 1-40        Official Records  November 2, 1979

      WHEREAS, bonds of the Corporation of eleven (11) series designated,
respectively, as its "First Mortgage Bonds, Series A, due 1982", First Mortgage
Bonds, Series B, due 1981", "First Mortgage Bonds, Series E, due 1988" "First
Mortgage Bonds, Series F, due 1989", "First Mortgage Bonds, Series G, due 1991",
"First Mortgage Bonds, Series H, due 1995", "First Mortgage Bonds, Series I, due
1997", "First Mortgage Bonds, Series J, due 1981", "First Mortgage Bonds, Series
K, due 1996", "First Mortgage Bonds, Series L, due 1997" and "First Mortgage
Bonds, Series M, due 1999", are outstanding as a part of the First Mortgage
Bonds referred to in the Original Indenture, each series of bonds, unless and
until the taking of further appropriate action by the Board of Directors of the
Corporation, being without limitation as to aggregate authorized principal
amount; and

      WHEREAS, pursuant to the provisions of Sections 2.01 and 2.02 of the
Original Indenture, the Board of Directors of the Corporation has, by resolution
duly adopted and delivered to the Trustee, created, as a part of the First
Mortgage Bonds referred to in the Original Indenture, a new series of bonds
designated "First Mortgage Bonds, Series N, due 2001" (herein sometimes called
"bonds of Series N"), to be of the form, terms. and provisions, provided in that
resolution and herein, which new series of bonds, unless and until the taking of
further appropriate action by the Board of Directors of the Corporation, is to
be without limitation as to aggregate authorized principal amount and of which
series bonds in the aggregate principal amount of $70,000 000 are to be
presently issued; and

      WHEREAS, it is provided in the Original Indenture that all the business,
franchises and properties, real, personal, and mixed, of every
<PAGE>

                                       4

kind and nature whatsoever and wheresoever situate, which might thereafter be
acquired by the Corporation, shall be as fully embraced within the lien thereof
as if said properties were owned by the Corporation at the date of the Original
Indenture and were particularly described therein and specifically conveyed
thereby, excepting certain properties expressly excepted by the provisions
thereof; and

      WHEREAS, subsequent to the execution of the Original Indenture the
Corporation has acquired properties hereinafter mentioned or referred to, all of
which properties, upon the acquisition thereof by the Corporation, became and
now are subject to the lien, operation and effect of the Original Indenture by
virtue of the after-acquired property clause or other clauses thereof; but the
Corporation, nevertheless, desires to execute, acknowledge, deliver and cause to
be recorded this Supplemental Indenture for the purposes, among others, of
expressly and specifically subjecting such after-acquired properties to the lien
of the Original Indenture as supplemented and of further assuring and confirming
the lien of the Original Indenture as supplemented on all of the properties of
every kind and character, whether real or personal and regardless of the date of
acquisition thereof by the Corporation, intended to be subjected to the lien
thereof; and

      WHEREAS, under the provisions of Sections 2.02 and 16.01 of the Original
Indenture the Corporation and the Trustee are authorized to execute and deliver
an indenture supplemental to the Original Indenture (i) to set forth the
particulars, permitted by Section 2.01 of the Original Indenture, as to which
the bonds of Series N are to vary from the bonds of the other series of said
First Mortgage Bonds, and (ii) for any purpose not inconsistent with the terms
of the Indenture; and

      WHEREAS, for and in consideration of the premises the Corporation
desires to execute this Supplemental Indenture; and

      WHEREAS, the making, executing, delivering and recording of this
Supplemental Indenture have been duly authorized by proper corporate action of
the Corporation; and

      WHEREAS, the execution and delivery of this Supplemental Indenture have
been authorized and approved by the Public Utilities Commission of the State of
California;
<PAGE>

                                       5

      NOW, THEREFORE, in consideration of the premises and of the sum of one
dollar ($1 ), lawful money of the United States of America, duly paid by the
Trustee to the Corporation, and of other good and valuable considerations,
receipt of which is hereby acknowledged, and of the fully registered in order
(a) to set forth or specify (i) the form of the fully registered bonds of Series
N and the form of the certificate to be endorsed on all bonds of said series,
and (ii) the terms and provisions of the bonds of Series N, including the
particulars thereof which vary from the bonds of the other series of said First
Mortgage Bonds, and (b) further to secure the payment of both the principal of
and interest on the bonds of the Corporation now or at any time hereafter
outstanding under the Original Indenture and/or any indenture supplemental
thereto, including specifically, but without limitation, all of said First
Mortgage Bonds now outstanding and said $70,000,000 aggregate principal amount
of bonds of Series N, according to their tenor and effect, and further to secure
the observance and performance of all of the covenants and conditions contained
in the Original Indenture agreements or in any indenture supplemental thereto,
and without in any way limiting the generality or effect of the Indenture
insofar as by any provision thereof any of the property therein or hereafter
described or referred to is now subject or intended to be subject to the lien
and operation thereof, but to such extent confirming such lien and operation,
the Corporation has executed and delivered this Supplemental Indenture and has
granted, bargained, sold, released, conveyed, mortgaged, assigned, transferred,
pledged, set over and confirmed, and does hereby grant, bargain, sell, release,
convey, mortgage, assign, transfer, pledge, set over and confirm unto Wells
Fargo Bank, National Association, the Trustee, and to its successor or
successors in the trust created by the Original Indenture and/or any indenture
supplemental thereto, and to its and their assigns, forever, with power of sale,
subject, to the extent applicable by the terms of the Indenture to any of the
properties hereinafter referred to or described, to the exceptions other than
with respect to exception (f) set forth on page 67 of the Original Indenture and
reading as follows: "(f) Any gas and/or oil acreage, gas and/or oil wells, gas
and/or oil reserves, or gas and/or oil leaseholds hereafter acquired by the
Corporation, or any property or equipment now or hereafter owned by the
Corporation and used for the development of gas and/or oil acreage or for the
drilling for or production of gas and/or oil from
<PAGE>

                                       6

such acreage"; which, exception (f) is by this granting clause hereby expressly
made inapplicable to certain parcels of property specified herein [and other
than as expressly provided in the granting clauses of said Supplemental
Indentures dated respectively as of June 1, 1956, July 1, 1957, October 1, 1959,
July 1, 1963, September 1, 1964, December 1, 1966, October 1, 1970, September 1,
1972, October 1, 1974, May 1, 1976, October 1, 1977 and November 1, 1979 with
respect to said exception (f) which is by said granting clauses expressly made
inapplicable to certain therein specified parcels of property], reservations,
conditions, terms and provisions provided in the Indenture with respect to
properties subject or intended to be subject thereto, all of the properties and
assets of the Corporation, real, personal and mixed, of every kind and
character, whether now or hereafter owned by the Corporation and wheresoever
situated, including, without in any way limiting or modifying the generality or
effect of the foregoing, all and singular, the following properties:

      FIRST: All of the lots, pieces and parcels of land and rights or interests
in real property situate in the Counties in the State of California,
specifically described and mentioned or enumerated in Schedule A attached
hereto, to which reference is hereby made and the same is made a part hereof
with the same force and effect as if the same were here set forth at length.

      SECOND: All and singular the plants, properties, equipment, real and
personal property, estates, interests, goodwill, generating, transmission,
feeding, storing, and distribution systems, and utilities of the Corporation
situate in the Counties of Fresno, Imperial, Kern, Kings, Los Angeles, Orange,
Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare and
Ventura, and elsewhere, in the State of California, with all and singular the
franchises, ordinances, grants, easements, licenses, powers, immunities,
permits, privileges, appurtenances, tenements and other rights and property
thereunto appertaining or belonging, as the same now exist and as the same and
any and all parts thereof may hereafter exist or be improved, added to,
enlarged, extended or acquired in said counties or elsewhere in said state or
any other state or states.
<PAGE>

                                       7

      THIRD: All other property, real, personal and mixed, of every kind, nature
and description (including, without in any way limiting the effect of the
generality hereof; all facilities; all stocks, bonds and other securities from
time to time conveyed, assigned, transferred, mortgaged or pledged on behalf of
the Corporation, or with its consent, to the Trustee in the manner and for the
purposes as provided in the Indenture; all gas manufacturing plants, boilers,
engines, compressors, motors, pumps, generators, gasholders, tanks, appliances,
oil storage facilities, gas storage facilities, wells, buildings, structures,
plants, works and other improvements; all gas transmission and distributing
lines and systems; all meters and regulators and all other apparatus, machinery,
appliances, tools, furniture, fixtures, supplies, facilities and utilities and
other personal property; or any right or interest in any thereof; all business
and goodwill, rights, consents, franchises, ordinances, licenses, agreements,
contracts, permits, easements, rights of way, leases and leasehold interests;
powers, grants, privileges and immunities to construct, operate and maintain
lines and other facilities or properties for conveying gas or other commodities
or utilities for any purpose or purposes through, under and over public streets
or highways, or public or private places or property; all reversions,
remainders, tolls, incomes, revenues, earnings, rents, issues and profits of any
property, real, personal and mixed; and all other classes and types of property
described or refer red to in the Original Indenture, or any indenture
supplemental thereto), now or hereafter owned, held, possessed, acquired or
enjoyed by or in any manner conferred upon or appertaining to the Corporation,
including the interest of the Corporation in all leases now or hereafter owned
by it, together with all and singular the tenements, hereditaments, and
appurtenances belonging or in any way appertaining To each and every part of any
and all property subject or intended to be subject to the lien and operation of
the Original Indenture as supplemented, and the reversion and reversions,
remainder and remainders, tolls, incomes, revenues, earnings, rents, issues and
profits thereof.

      SAVING AND EXCEPTING, however, from the property hereby mortgaged,
conveyed in trust and/or pledged, all property, whether now owned by the
Corporation or hereafter acquired by it, expressly saved and excepted from the
lien of the Indenture and therein referred to as the "excepted property" (except
otherwise expressly provided in this Supplemental Indenture and any Supplemental
Indenture herein-
<PAGE>

                                       8

above mentioned, with respect to exception (f) of said "excepted property"),
unless and until, upon the occurrence of an event of default under the
Indenture, the Trustee, or any receiver appointed thereunder, shall take
possession of any or all of such excepted property.

      TO HAVE AND TO HOLD in trust with power of sale for the equal and
proportionate benefit and security of all holders of bonds of the Corporation,
now or hereafter outstanding under the Indenture as from time to time in effect,
and for the enforcement and payment of said bonds and interest thereon when
payable, and the performance of and compliance with the covenants and conditions
of the Indenture as from time to time in effect, without any preference,
distinction or priority as to lien or otherwise of any of said bonds over any
others thereof by reason of the difference in the time of the actual issue, sole
or negotiation thereof, or for any other reason whatsoever, except as otherwise
expressly provided in the Indenture as from time to time, in effect, so that
each and every such bond shall have the same lien and so that the principal and
interest of every such bond shall, subject to the terms thereof, be equally and
proportionately secured by said lien, as if such bond had been made, executed,
delivered, sold and negotiated simultaneously with the execution and delivery of
the Original Indenture.

      IT IS HEREBY COVENANTED, DECLARED, AND AGREED by and between the parties
hereto that all such bonds are issued, authenticated and delivered, or are to be
issued, authenticated and delivered, and that all property subject, or to become
subject, to the Original Indenture, including any indenture supplemental
thereto, is to be held, subject to the covenants, conditions, uses and trusts
therein set forth.

      It is hereby further stipulated and provided:

                                    ARTICLE I

                     AMOUNT, FORM, NUMBERING, DENOMINATION,
                         TRANSFER AND EXCHANGE OF BONDS
                             OF SERIES N, DUE 2001

      SECTION 1.01. The bonds of Series N may be issued at any time or from time
to time upon and subject to the terms and provisions of the Indenture. Unless
and until the taking of further appropriate action
<PAGE>

                                       9

by the Board of Directors of the Corporation the bonds of said Series shall be
without limitation as to aggregate authorized principal amount.

      SECTION 1.02. The bonds of Series N shall be issued only as fully
registered bonds without coupons. The fully registered bonds without coupons and
the certificate of authentication to be endorsed on all bonds of said Series,
shall be substantially in the following form:

         (FORM OF REGISTERED BOND WITHOUT COUPONS, SERIES N, DUE 2001)

                         SOUTHERN CALIFORNIA GAS COMPANY
            (Incorporated under the laws of the State of California)

                     FIRST MORTGAGE BOND, SERIES N, DUE 2001
                                      (15%)

NO. ____________                                                 $ ____________

      SOUTHERN CALIFORNIA GAS COMPANY, a corporation organized and existing
under the laws of the State of California (hereinafter called the "Corporation",
which term shall include any successor corporation, as defined in the Indenture
hereinafter referred to), for value received, hereby promises to pay to
____________, or registered assigns, the sum of _____________________ DOLLARS in
lawful money of the United States of America, on the first day of February,
2001, and to pay interest thereon to the registered owner hereof from the date
of this bond, at the rate of 15% per annum in like lawful money, payable
semi-annually, on the first days of February and August in each year, commencing
August 1, 1981, until the Corporation's obligation with respect to the payment
of such principal shall be discharged as provided Both in the Indenture
hereinafter mentioned. the principal of and interest on this bond will be paid
at the principal office of Wells Fargo Bank, National Association, or its
successor trustee under said Indenture, in the City and County of San Francisco,
State of California or at the main office of the Trustee in the City of Los
Angeles, or, at the option of the registered owner hereof, principal will be
paid at the office or agency of the Corporation in the City of New York, State
of New York.
<PAGE>

                                       10

      The provisions of this bond are continued on the reverse hereof and such
continued provisions shall for all purposes have the same effect as though fully
set forth at this place.

      IN WITNESS WHEREOF, SOUTHERN CALIFORNIA GAS COMPANY has caused this bond
to be signed in its corporate name by its President or a Vice-President and its
corporate seal to be hereto affixed and attested by its Secretary or in
Assistant Secretary.

      Dated as of ____________________, 19____

                                    SOUTHERN CALIFORNIA GAS COMPANY

                                    By
                                       ---------------------------------------
                                                  Vice President

(CORPORATE SEAL)

ATTEST:

---------------------------
        Secretary

                  (REVERSE SIDE-FORM OF REGISTERED BOND WITHOUT
                          COUPONS, SERIES N, DUE 2001)

      This bond is one of a duly authorized issue of bonds of the Corporation
(herein called the "bonds"), of the series hereinafter specified, all issued and
to be issued under and all equally and ratably secured by a mortgage and deed of
trust dated October 1, 1940, executed by the Corporation to Wells Fargo Bank,
National Association (formerly American Trust Company), as Trustee, to which
mortgage and deed of trust and all indentures supplemental thereto, including
Supplemental Indentures dated, respectively, as of July 1, 1947, August 1, 1955,
June 1, 1956, December 1, 1956, June 1, 1965, August 1, 1972 and May 1, 1976
(herein collectively referred to as the "Indenture"), refer-
<PAGE>

                                       11

ence is hereby made for a description of the property conveyed in trust,
mortgaged and pledged, the nature and extent of the security, the rights of the
registered owners of the bonds and of the Trustee or trustees in respect
thereof, the terms and conditions upon. which the bonds are, and are to be,
secured and the circumstances under which additional bonds may be issued. The
bonds may be issued for various principal sums, and may be issued in series,
which may mature at different times, may bear interest at different rates and
may otherwise vary as in the Indenture provided. This bond is one of a series
designated as the "First Mortgage Bonds, Series N, due 2001" (herein called
"bonds of Series N") of the Corporation, issued under and secured by the
Indenture.

      As provided in the Indenture, by any indenture or indentures supplemental
thereto executed by the Corporation and the Trustee and consented to by the
holders of not less than two-thirds (2/3) in principal amount of the bonds at
the time outstanding, and, in case one or more, but less than all, of the series
of bonds then outstanding are affected by such supplemental indenture, consented
to by the holders of at least two-thirds (2/3) in principal amount of the bonds
of such series so affected, the Indenture or any indenture supplemental thereto,
and the rights and obligations of the Corporation and the holders of bonds, may
be modified or altered from time to time, as provided in the Indenture;
provided, however, (a) that the right of any holder of any bond to receive
payment of the principal of and interest on such bond, on or after the
respective due dates expressed in such bond, or to institute suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected by any such supplemental indenture without the consent of
such holder, and (b) that no such modification, or alteration shall reduce the
proportions of bondholders' consents required as aforesaid; such proportions to
be determined in each case as provided in the Indenture.

      The bonds of Series N are subject to redemption (a) at any time prior to
maturity at the option of the Corporation either as a whole or in part, or
through operation of the Renewal Fund, upon payment of the percentages of the
principal thereof as set forth in the table below under the heading "Regular
Redemption Price" during the respective 12 months' period beginning February 1,
in each of the years mentioned, or (b) by operation of the Sinking Fund upon
payment of the per-
<PAGE>

                                       12

centages of the principal thereof set forth below under the heading "Special
Redemption Price" during said periods. Notwithstanding the foregoing, none of
the bonds of Series N may be redeemed prior to February 1, 1986 directly or
indirectly from the proceeds of or in anticipation of any refunding operation
involving the incurring of debt which has an interest cost to the Corporation of
less than 15.094% per annum.

      Redemption Price           Redemption Price           Redemption Price
      ----------------           ----------------           ----------------
Year  Regular  Special     Year  Regular  Special     Year  Regular  Special
----  -------  -------     ----  -------  -------     ----  -------  -------
1981  115.00%      --      1988  109.49%  100.00%     1995  103.95%  100.00%
1982  114.22       --      1989  108.69   100.00      1996  103.16   100.00
1983  113.43       --      1990  107.90   100.00      1997  102,37   100.00
1984  112.64       --      1991  107.11   100.00      1998  101.58   100.00
1985  111.85       --      1992  106.32   100.00      1999  100.79   100.00
1986  111.06       --      1993  105.53   100.00      2000  100.00   100.00
1987  110.27   100.00%     1994  104.74   100.00

together in each case with accrued interest to the date fixed for redemption,
and upon notice given by publication once in each of three separate calendar
weeks in one daily newspaper printed in the English language of general
circulation in the Borough of Manhattan, City and State of New York, and in one
similarly printed daily newspaper of general circulation in the City and County
of San Francisco, California (the first of such publications to be not less than
thirty and not more than sixty days before the redemption date), or, notice of,
any such redemption may be mailed to the registered owners of the bonds to be
redeemed not less than thirty nor more than sixty days before the redemption
date, in lieu of such notice being given by publication, all subject to the
conditions and as more fully set forth in the Indenture, including (1) the
condition that failure to give notice of any such redemption by mail, if
required, or any defect therein or in the mailing thereof shall not affect the
validity of the proceedings for the redemption of any bonds so to be redeemed if
notice by publication, if required, is duly given and (2) the condition that, if
any notice of redemption of bonds shall state that it is subject to receipt by
or for the account of the Trustee on or before the date fixed for redemption of
moneys applicable to and sufficient for such redemption, such bonds shall not
become due and payable by virtue of such notice unless such moneys shall be held
by or for the account of the Trustee on or before the date fixed for redemp-
<PAGE>

                                       13

tion. If this bond or any portion hereof is called for redemption and payment
duly provided as specified in the Indenture, interest shall cease to accrue on
this bond or such portion hereof from and after the date fixed for such
redemption.

      The bonds are entitled to the benefits of the Sinking Fund and the Renewal
Fund as provided in the Indenture.

In case an event of default, as defined in the Indenture, shall occur, the
principal of all bonds then outstanding under the Indenture may be declared or
become due and payable upon the conditions and in the manner and with the effect
provided in the Indenture.

      This bond is transferable by the registered owner hereof at the office or
agency of the Corporation in said City and County of San Francisco, in said City
of Los Angeles, in the Borough of Manhattan, City of New York and in such other
place or places as the Corporation may designate at any time or from time to
time, and thereupon a new fully registered bond or bonds of said series, without
coupons, of authorized denomination or denominations, of a like aggregate
principal amount, will be issued to the transferee or transferees in exchange
for this bond; and at any of said offices or agencies fully registered bonds of
Series N without coupons, are exchangeable for a like aggregate principal amount
of other such fully registered bonds of authorized denominations; all in the
manner and subject to the conditions as provided in the Indenture.

      No recourse shall be had for the payment of the principal of or the
interest on this bond or for any claim based hereon or on the lndenture or any
indenture supplemental thereto, against any incorporator, stockholder, director
or officer, past, present or future, of the Corporation, or of any predecessor
or successor corporation, either directly or through the Corporation, or any
such predecessor or successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty, or otherwise, all such liability being waived and released by every
registered owner hereof by the acceptance of this bond and as part of the
consideration for the issue hereof, and being likewise waived and released by
the terms of the Indenture.

      This bond shall not become valid or obligatory for any purpose or be
entitled to any benefit under the Indenture until Wells Fargo
<PAGE>

                                       14

Bank, National Association, or its successor as Trustee under the Indenture, or
an authenticating agent, shall have signed the form of certificate endorsed
hereon.

                     [FORM OF CERTIFICATE OF AUTHENTICATION]

                                   CERTIFICATE

      This bond is one of the bonds, of the series designated therein, described
in the within-mentioned Indenture.

        WELLS FARGO BANK,              or            BANKERS TRUST COMPANY,
     NATIONAL ASSOCIATION,
            Trustee                                   Authenticating Agent

By                                             By
   ----------------------------                   ----------------------------
       Authorized Officer                             Authorized Officer

      The bonds of Series N may contain or have imprinted thereon such
provisions or specifications not inconsistent with the Indenture as may be
required to comply with the rules of any stock exchange or any federal or state
authority or commission, or to comply with usage with respect thereto, and may
bear such other appropriate endorsements or notations as are authorized or
permitted by the Indenture.

      The fully registered bonds of Series N shall be issuable in denominations
of $1,000 and any integral multiple of $1,000 and shall be dated as provided in
paragraph 1 of Section 2.01 of the Original Indenture, The definitive bonds of
Series N shall be numbered in such manner as the Corporation shall at any time
or from time to time determine.

      SECTION 1.03. In the manner and subject to certain conditions and
limitations specified herein and in the Indenture, bonds of Series N may be
exchanged without a service charge for a like aggregate principal amount of such
bonds of Series N of other authorized denomination or denominations.
<PAGE>

                                       15

      SECTION 1.04. The Corporation shall maintain in the City and County of San
Francisco, and in the City of Los Angeles, State of California, and also in the
Borough of Manhattan, City of New York, State of New York, and in such other
place or places as the Corporation may designate at any time or from time to
time, an office or agency where bonds of Series N may be presented for payment,
registration, transfer and exchange as provided therein or in the Indenture.
Such office or agency in the City and County of San Francisco shall be the
principal office of the Trustee and such office or agency in the City of Los
Angeles shall be the main office of the Trustee in said City and such office or
agency in the Borough of Manhattan, City of New York shall be the principal
office of Bankers Trust Company unless and until the Corporation shall designate
another office or agency by notice in writing delivered to the Trustee.

      SECTION 1.05. No transfer or exchange of any bonds of Series N pursuant to
any of the provisions of this Article I shall be made except upon and in
accordance with all of the applicable terms, provisions and conditions of said
bonds and of the Indenture.

                                   ARTICLE II

                INTEREST, MATURITY DATE, REDEMPTION, SINKING FUND
                          AND CERTAIN OTHER PROVISIONS.

      SECTION 2.01. The bonds of Series N shall bear interest at the rate, shall
be expressed to mature as to principal, and shall be payable as to principal and
interest at such place or places and in such money, all as provided in the form
of such bonds set forth in Section 1.02 hereof and by the applicable provisions
of the Indenture.

      SECTION 2.02. The bonds of Series N shall be subject to redemption, either
in whole or in part, at the applicable redemption prices specified in said form
of bonds, upon notice, in the manner and otherwise upon the terms and conditions
and with the effect, as provided herein and by the applicable provisions of the
Indenture, which provisions of the Indenture are hereby modified and
supplemented, but only with respect to the bonds of Series N, as follows:
<PAGE>

                                       16

      (a) If at the time of publication or mailing of, or of otherwise giving,
any notice of redemption of any of the bonds of Series N the Corporation shall
not have deposited with the Trustee and/or irrevocably directed the Trustee to
apply, from moneys held by it available to be used for the redemption of bonds
of Series N, an amount in cash sufficient to redeem all of the bonds of Series N
called for such redemption, including accrued interest to the date fixed for
redemption, such notice shall state that it is subject to the receipt by the
Trustee on or before the date fixed for redemption of moneys applicable to and
sufficient for such redemption and that such notices shall be of no effect
unless such moneys are so received on or before such date.

      (b) The Trustee, upon request of the Corporation evidenced by a resolution
of its Board of Directors, shall, for and in behalf of and in the name of the
Corporation call for redemption of bonds of Series N provided that, if cash
sufficient for such redemption is not hold by the Trustee at the time of such
call, the notice shall state that it is subject to the receipt by the Trustee on
or before the date fixed for redemption of moneys applicable to and sufficient
for such redemption and that such notice shall, be of no effect unless such
moneys are so received on or before such date.

      (c) If bonds of Series N shall be called for redemption pursuant to a
notice containing the statement set forth in subparagraph (a) or subparagraph
(b) of this Section 2.02, the principal amount and premium, if, any, of such
bonds shall not become due and payable by virtue of such call or notice unless
on or before the date fixed for redemption the Corporation shall have
irrevocably deposited with the Trustee for the purpose of redeeming all of the
bonds of Series N called for redemption, including funds for the payment, of
accrued interest to the date fixed for redemption, and/or irrevocably directed
the Trustee to apply, from moneys held by it available. to be used for the
redemption of bonds of Series N an amount in cash sufficient to redeem all of
the bonds of Series N called for redemption, including funds for the payment of
accrued interest to the date fixed for redemption.
<PAGE>

                                       17

      Notwithstanding the foregoing, none of the bonds of Series N may be
redeemed prior to February 1, 1986 directly or indirectly from the proceeds of
or in anticipation of any refunding operation involving the incurring of debt
which has an interest cost to the Corporation of less than 15.094% per annum.

      SECTION 2.03. The bonds of Series N shall be entitled to the benefits of
the Renewal Fund as provided in the Indenture and shall also be entitled to
benefit, as hereinafter provided, under the Sinking Fund referred to in Section
8.01 of the Indenture. To provide for such benefit under said Sinking Fund, said
Section 8.01, as heretofore amended and now in effect, is hereby further amended
by adding thereto, immediately preceding the last paragraph thereof, a new
paragraph reading as follows:

            "The Corporation further covenants and agrees that, on or before
      April first in the year 1987 and in each year thereafter so long as any of
      the bonds of Series N are outstanding, it will pay to the Trustee, as a
      payment for that year to the Sinking Fund referred to in the first
      paragraph of this Section 8.01, the amount of $4,660,000, together with a
      payment at maturity of $4,760,000, on February 1, 2001, in respect of such
      series."

      SECTION 2.04. The bonds of Series N shall, except as in this Supplemental
Indenture otherwise expressly provided, be on the terms and provisions, and
shall represent such rights and be entitled to such benefits, as are applicable
thereto by the terms of the Indenture.

                                   ARTICLE III

                               SUNDRY PROVISIONS.

      SECTION 3.01. The recitals of fact contained herein shall be taken as the
statements of the Corporation, and the Trustee assumes no responsibility for the
correctness of the same. The Corporation hereby covenants and agrees that it
will cause this Supplemental Indenture to be kept recorded and/or filed as may
be required by law, in such manner and in such places as may be necessary fully
to preserve and protect the security of the bondholders and all of the rights of
the Trustee hereunder,
<PAGE>

                                       18

and that it will with all reasonable dispatch deposit with the Trustee
counterparts of this Supplemental Indenture bearing official notation or
endorsements showing such recordation and/or filing, or in case such
counterparts are not returned to the Corporation, furnish to the Trustee the
best official evidence of such recordation and/or filing reasonably obtainable
by the Corporation, or evidence of the taking of such other action, if any, but
the Trustee, subject to the provisions of Sections 14.02 and 14.03 of said
Original Indenture, shall in no wise be liable for any failure or omission in
this regard.

      SECTION 3.02. The date of this Supplemental Indenture and the date of the
bonds of Series N are intended as and for a date for the convenient
identification of this Supplemental Indenture and of the bonds of said series,
and are not intended to indicate that this Supplemental Indenture was executed
and delivered or that said bonds were executed, delivered or issued on said
date; it being hereby provided that this Supplemental Indenture may be executed
and delivered, and that said bonds may be executed, delivered or issued, either
on said date or before or after said date, and that this Supplemental Indenture
is in fact executed and delivered by each party hereto on the date of its
certificate of acknowledgment hereto attached.

      SECTION 3.03. This Supplemental Indenture shall be deemed to be part of
the Original Indenture, and the Corporation agrees to conform to and comply with
all and singular the terms, provisions, conditions and covenants set forth
therein and herein. This Supplemental Indenture shall be construed in connection
with and as a part of the Original Indenture, as heretofore amended and
supplemented.

      SECTION 3.04. It is further agreed that the Trustee accepts the trust
imposed upon it by this Supplemental Indenture, upon and subject to the same
terms and conditions as are expressed in Article XIV of the Original Indenture.

      SECTION 3.05. In order to facilitate the recording of this Supplemental
Indenture, the same may be executed in several counterparts, each of which so
executed shall be deemed to be an original, and such counterparts shall
collectively constitute one and the same instrument.
<PAGE>

                                       19

     IN WITNESS WHEREOF, Southern California Gas Company has caused this
Supplemental Indenture to be signed in its corporate name by its President or
one of its Vice Presidents, and its Secretary or one of its Assistant
Secretaries, and its corporate seal to be hereunto duly affixed, and Wells Fargo
Bank, National Association, in token of its acceptance of the trust hereby
established, has caused this Supplemental Indenture to be signed in its
corporate name by one of its Authorized Officers and its Secretary or one of its
Assistant Secretaries, and its corporate seal to be hereunto duly affixed, all
as of February 1, 1981.

                                       SOUTHERN CALIFORNIA GAS COMPANY

Attest:

/s/ H.E. GOODENOW                      By  /s/ G. DAVID WOOSLEY
-----------------------------             -------------------------------------
                 Secretary                                    Vice President

(SEAL)

                                       WELLS FARGO BANK, NATIONAL
Attest:                                   ASSOCIATION

/s/ R.T. MARAVILLA                     By  /s/  M.C. WELCH
-----------------------------             -------------------------------------
       Assistant Secretary                                Authorized Officer

(SEAL)
<PAGE>

                                       20

STATE OF CALIFORNIA,          )
                              )   ss.
COUNTY OF LOS ANGELES,        )

      On this 28th day of January, 1981, before me, FLORENCE B. FROST, a Notary
Public of the State of California, duly commissioned and sworn, personally
appeared G. DAVID WOOSLEY, known to me to be Vice President, and H. E. GOODENOW
known to me to be the Secretary, of SOUTHERN CALIFORNIA GAS COMPANY, one of the
corporations named in and which executed the foregoing instrument, known to me
to be the persons who executed the within instrument on behalf of said
Corporation, and acknowledged to me that said Corporation executed the same, and
acknowledged to me that said Corporation executed the within instrument pursuant
to its by-laws or a resolution of its board of directors.

      IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             /s/ FLORENCE B. FROST
                                    -----------------------------------------
                                                FLORENCE B. FROST

                                    Notary Public of the State of California.

                                                                          (SEAL)
My Commission Expires August 14, 1983.
<PAGE>

                                       21

STATE OF CALIFORNIA           )
                              )   ss.
COUNTY OF LOS ANGELES,        )

      On this 28th day of January, 1981, before me, FLORENCE B. commissioned
FROST, a Notary Public of the State of California, duly commissioned and sworn,
personally appeared M. C. WELCH, known to me to be an Assistant Authorized
Officer, and R. T. MARAVILLA, known to me to be an Assistant Secretary, of WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, one of the
corporations named in and which executed the foregoing instrument, known to, me
to be the persons who executed the within instrument on behalf of said
Corporation, and acknowledged to me that said Corporation executed the same, and
acknowledged to me that said Corporation executed the within instrument pursuant
to its by-laws or a resolution of its board of directors.

      IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             /s/ FLORENCE B. FROST
                                    -----------------------------------------
                                                FLORENCE B. FROST

                                    Notary Public of the State of California.

                                                                          (SEAL)
My commission Expires August 14, 1983.
<PAGE>

                                       22

                                   SCHEDULE A

      Incorporated in and made a part of the Supplemental Indenture dated as of
February 1, 1981, by and between Southern California Gas Company and Wells Fargo
Bank, National Association, Trustee.

      The descriptive names or captions do not constitute a part of the property
descriptions, being used only for convenience of reference and identification.

The term "Grantor" as used hereinafter refers to the grantor of each parcel of
property hereinafter described to Southern California Gas Company.

                              COUNTY OF LOS ANGELES

      Those certain lots, pieces and parcels of land and other property, rights,
and estates situate in the County of Los Angeles, State of California, described
as follows:

                           General Offices and Garages

Parcel 1:

      Lot "A" of Tract 6004, in the City of Los Angeles, in the County of Los
Angeles, State of California, as per map recorded in Book 79, Page 12 of Maps,
in the Office of the County Recorder of said County.

Parcel 2:

      Lot 5 of H. F. SPENCER'S Subdivision of the North half of Block 57 of
ORD'S Survey, as per map recorded in Book 5, Page 35, of Miscellaneous
records of Los Angeles County, and that portion of Lot 4 of said H. F.
SPENCER'S Subdivision included within the following described lines:

      Beginning at the intersection of the Southeasterly line of said H. F.
SPENCER'S Subdivision with the Southeasterly prolongation of the Southwesterly
face of the Southwesterly wall of a four story brick building known as the Hotel
Stephens, said point of intersection being distant South 37 51' West along said
Southeasterly line of said H. F. SPENCER'S subdivision 195.81 foot from the
Southwesterly line of Eighth Street, 70 feet wide, as at present Established;
Thence South
<PAGE>

                                       23

37"51' West along said Southeasterly line of said H. F. SPENCER'S Subdivision
50.18 feet to the Northeasterly line of Tract No. 6004. as per map recorded in
Book 79 Page 12 of Maps, in the office of the County recorder of said county;
Thence North 52 08' West along said Northeasterly line 156.98 feet to the
Southeasterly line of a 20 foot alley running Northeasterly through said H. F.
SPENCER'S Subdivision; Thence North 37 49' East along said alley 50.25 feet to
the Southwesterly face of the Southwesterly wall of said four story brick
building; thence South 52 06'10" East along said Southwesterly face of said
Southwesterly wall of said four story brick building and along the Southeasterly
prolongation thereof, 157.00 feet to the point of beginning.

      EXCEPT that portion of Lot 5 of said H. F. SPENCER'S Subdivision
included within the following described lines:

      BEGINNING at the intersection of the Southeasterly line of said H. F.
SPENCER'S SUBDIVISION with the Southeasterly prolongation of the Southwesterly
face of the Southwesterly wall of a twelve story brick building known as the
HOTEL RITZ, said point of intersection being distant South 37 51' West along
said Southeasterly line of H. F. SPENCER'S Subdivision 145.72 feet from the
Southwesterly line of Eighth Street, 70 feet Wide, as at present established;
thence South 37 51' West along said Southeasterly line of H. F. SPENCER'S
Subdivision 50.09 feet to the Southeasterly prolongation of the Southwesterly
face of the Southwesterly wall of a four story brick building known as Hotel
Stephens; thence North 52 06'10" west along said last mentioned Southeasterly
prolongation and along said Southwesterly face of the Southwesterly wall of said
four story brick building 157.00 feet to the Southeasterly line of a 20 foot
alley running Northeasterly through said H. F. SPENCER'S Subdivision; thence
North 37 49' East along said alley, 50.03 feet to the Northwesterly prolongation
of said Southwesterly face of the Southwesterly wall of said twelve story brick
building; thence South 52 07'40" East along said Northwesterly prolongation and
along said Southwesterly face of the Southwesterly wall of said twelve story
brick building and along the Southeasterly prolongation thereof, 157.03 feet to
the point of beginning.
<PAGE>

                                       24

                                  Industry Base

Parcel A:

      Parcel 1 in the City of Industry, in the County of Los Angeles, State of
California, as shown on Parcel Map No. 167, filed in Book 138 Page 78 of Parcel
Maps, in the office of the County Recorder of said County.

Parcel B:

      An easement for ingress and egress over the easterly 20 feet of Parcel 2
in the City of Industry, in the County of Los Angeles, State of California, as
shown on Parcel Map No. 167, filed in Book 138 Page 78 of Parcel Maps, in the
office of the County Recorder of said County.

                               COUNTY OF RIVERSIDE

      Those certain lots, pieces and parcels of land and other property, rights,
and estates situate in the County of Riverside, State of California, described
as follows:

                               Hemet District Base

      Lot 515 of Romola Farms No. 6A, as shown by Map on file in Book 14 pages
63, 64 and 65 of Maps, Riverside County Records; EXCEPTING that portion as
described in that Deed to the State of California by Deed recorded February 14,
1962 in Book 3077 page 364 of official records and as Instrument No. 13971.

                            COUNTY OF SAN BERNARDINO

      Those certain lots, pieces and parcels of land and other property, rights,
and estates situate in the County of San Bernardino, State of California,
described as follows:

                              Needles Crossover R/W

      All that portion of the south one-half of the south one-half of the north
one-half and the north one-half of the north one-half of the south one-half both
of the above being of the northwest quarter of
<PAGE>

                                       25

the northwest quarter of Section 13, Township 9 North, Range 22 East, San
Bernardino Base and Meridian; lying west of River Road, being 100 feet wide per
official Records, Book 2909, Page 320, and recorded in the County Recorder's
Office of said County.

                                  Fontana Base

      The West 6 acres of the East 16 Acres of Farm Lot 732, according to map
showing subdivision of lands belonging to the Semi-Tropic Land and Water
Company, in the County of San Bernardino, State of California, as per Map
recorded in Book 11 Page 12 of Maps, in the office of the County Recorder of
said County.

      The area and distances of the above described property are computed to the
centers of the adjoining streets shown on said Map.

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