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                                                                Exhibit 10.43

       THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
       REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
       MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS
       THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
       COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH
       RULE 144, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE
       HOLDER OF THESE SECURITIES, REASONABLY SATISFACTORY TO THE
       COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
       HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
       DELIVERY REQUIREMENTS OF SUCH ACT.

                         OPTION TO PURCHASE COMMON STOCK
                                       OF
                           BIO-KEY INTERNATIONAL, INC.
                          Void after September 15, 2011

       This certifies that, for value received, Harlan Plumley ("Holder"), is
entitled, subject to the terms set forth below, to purchase from BIO-KEY
INTERNATIONAL, INC., a Minnesota corporation (the "Company"), shares of the
common stock, $.01 par value per share, of the Company ("Common Stock"), as
constituted on the date hereof (the "Option Issue Date"), with the Notice of
Exercise attached hereto duly executed, and simultaneous payment therefor in
lawful money of the United States or as otherwise provided in Section 3 hereof,
at the Exercise Price then in effect. The number, character and Exercise Price
of the shares of Common Stock issuable upon exercise hereof are subject to
adjustment as provided herein.

       1. TERM OF OPTION. Subject to compliance with the vesting provisions
identified at Section 2.3 hereof, this Option shall be exercisable, in whole or
in part, during the term commencing on the Option Issue Date and ending at 5:00
p.m. CST on September 15, 2011 (the "Option Expiration Date") and shall be void
thereafter.

       2. NUMBER OF SHARES, EXERCISE PRICE AND VESTING PROVISIONS.

            2.1 NUMBER OF SHARES. The number of shares of Common Stock which may
be purchased pursuant to this Option shall be 200,000 shares (the "Shares"),
subject, however, to adjustment pursuant to Section 11 hereof.

            2.2 EXERCISE PRICE. The Exercise Price at which this Option, or
portion thereof, may be exercised shall be $1.05(1) per Share, subject,
however, to adjustment pursuant to Section 11 hereof.

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(1)  The last sale price of the Company's common stock as reported on the OTC
     Bulletin Board on the Option Issue Date.

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            2.3 VESTING. This Option shall vest in accordance with the following
schedule:

                 (i)    66,666 Shares shall vest on September 15, 2005;

                 (ii)   66,667 Shares shall vest on September 15, 2006; and

                 (iii)  66,667 Shares shall vest on September 15, 2007.

       3. EXERCISE OF OPTION.

            3.1 PAYMENT OF EXERCISE PRICE. Subject to the terms hereof, the
purchase rights represented by this Option are exercisable by the Holder in
whole or in part, at any time, or from time to time, by the surrender of this
Option and the Notice of Exercise annexed hereto duly completed and executed on
behalf of the Holder, at the office of the Company (or such other office or
agency of the Company as it may designate by notice in writing to the Holder at
the address of the Holder appearing on the books of the Company) accompanied by
payment of the Exercise Price in full (i) in cash or by bank or certified check
for the Shares with respect to which this Option is exercised; (ii) by delivery
to the Company of shares of the Company's Common Stock having a Fair Market
Value (as defined below) equal to the aggregate Exercise Price of the Shares
being purchased which Holder is the record and beneficial owner of and which
have been held by the Holder for at least six (6) months; (iii) if the Shares
are eligible for public resale, by delivering to the Company a Notice of
Exercise together with an irrevocable direction to a broker-dealer registered
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to
sell a sufficient portion of the Shares and deliver the sales proceeds directly
to the Company to pay the Exercise Price; or (iv) by any combination of the
procedures set forth in subsections (i), (ii) and (iii) of this Section 3.1.

            3.2 FAIR MARKET VALUE. If previously owned shares of Common Stock
are tendered as payment of the Exercise Price, the value of such shares shall be
the "Fair Market Value" of such shares on the trading date immediately preceding
the date of exercise. For the purpose of this Agreement, the "Fair Market Value"
shall be:

                 (a) If the Common Stock is admitted to quotation on the
National Association of Securities Dealers Automated Quotation System
("NASDAQ"), the Fair Market Value on any given date shall be the average of the
highest bid and lowest asked prices of the Common Stock as reported for such
date or, if no bid and asked prices were reported for such date, for the last
day preceding such date for which such prices were reported;

                 (b) If the Common Stock is admitted to trading on a United
States securities exchange or the NASDAQ National Market System, the Fair Market
Value on any date shall be the closing price reported for the Common Stock on
such exchange or system for such date or, if no sales were reported for such
date, for the last day preceding such date for which a sale was reported;

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                 (c) If the Common Stock is traded in the over-the-counter
market and not on any national securities exchange nor in the NASDAQ Reporting
System, the Fair Market Value shall be the average of the mean between the last
bid and ask prices per share, as reported by the National Quotation Bureau,
Inc., or an equivalent generally accepted reporting service, or if not so
reported, the average of the closing bid and asked prices for a share as
furnished to the Company by any member of the National Association of Securities
Dealers, Inc., selected by the Company for that purpose; or

                 (d) If the Fair Market Value of the Common Stock cannot be
determined on the basis previously set forth in this definition on the date that
the Fair Market Value is to be determined, the Board of Directors of the Company
shall in good faith determine the Fair Market Value of the Common Stock on such
date.

If the tender of previously owned shares would result in an issuance of a whole
number of Shares and a fractional Share of Common Stock, the value of such
fractional share shall be paid to the Company in cash or by check by the Holder.

            3.3 TERMINATION OF EMPLOYMENT; DEATH.

                 (a) If Holder shall cease to be employed by the Company, all
Options to which Holder is then entitled to exercise may be exercised only
within ninety (90) days after the termination of employment and prior to the
Option Termination Date or, if such termination was due to disability or
retirement (as hereinafter defined), within one (1) year after termination of
employment and prior to the Option Termination Date. Notwithstanding the
foregoing, in the event that any termination of employment shall be for Cause as
that term is defined in any employment agreement by and between the Holder and
the Company, then this Option shall forthwith terminate.

                 (b) If Holder shall die while employed by the Company and prior
to the Option Termination Date, any Options then exercisable may be exercised
only within one (1) year after Holder's death, prior to the Option Termination
Date and only by the Holder's personal representative or persons entitled
thereto under the Holder's will or the laws of descent and distribution.

                 (c) This Option may not be exercised for more Shares (subject
to adjustment as provided in Section 11 hereof) after the termination of the
Holder's employment or death, as the case may be, than the Holder was entitled
to purchase thereunder at the time of the termination of the Holder's employment
or death.

            3.4 EXERCISE DATE; DELIVERY OF CERTIFICATES. This Option shall be
deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above, and Holder shall be
treated for all purposes as the holder of record of such Shares as of the close
of business on such date. As promptly as practicable on or after such date and
in any event within ten (10) days thereafter, the Company at its expense shall
issue and deliver to the Holder a certificate or certificates for the number of
Shares issuable upon such exercise. In the event that this Option is exercised
in part, the Company at its expense will

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execute and deliver a new Option of like tenor exercisable for the number of
shares for which this Option may then be exercised.

       4. NO FRACTIONAL SHARES OR SCRIP. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this Option.
In lieu of any fractional share to which the Holder would otherwise be entitled,
the Company shall make a cash payment equal to the Exercise Price multiplied by
such fraction.

       5. REPLACEMENT OF OPTION. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Option and,
in the case of loss, theft or destruction, on delivery of an indemnity agreement
reasonably satisfactory in form and substance to the Company or, in the case of
mutilation, on surrender and cancellation of this Option, the Company at its
expense shall execute and deliver, in lieu of this Option, a new Option of like
tenor and amount.

       6. RIGHTS OF STOCKHOLDER. Except as otherwise contemplated herein, the
Holder shall not be entitled to vote or receive dividends or be deemed the
holder of Common Stock or any other securities of the Company that may at any
time be issuable on the exercise hereof for any purpose, nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance or
otherwise) or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until the Option shall have been exercised as
provided herein.

       7. TRANSFER OF OPTION.

            7.1. NON-TRANSFERABILITY. This Option shall not be assigned,
transferred, pledged or hypothecated in any way, nor subject to execution,
attachment or similar process, otherwise than by will or by the laws of descent
and distribution. Any attempted assignment, transfer, pledge, hypothecation or
other disposition of this Option contrary to the provisions hereof, and the levy
of an execution, attachment, or similar process upon the Option, shall be null
and void and without effect.

            7.2. COMPLIANCE WITH SECURITIES LAWS; RESTRICTIONS ON TRANSFERS. In
addition to restrictions on transfer of this Option and Shares set forth in
Section 7.1 above.

                 (a) The Holder of this Option, by acceptance hereof,
acknowledges that this Option and the Shares to be issued upon exercise hereof
are being acquired solely for the Holder's own account and not as a nominee for
any other party, and for investment (unless such shares are subject to resale
pursuant to an effective prospectus), and that the Holder will not offer, sell
or otherwise dispose of any Shares to be issued upon exercise hereof except
under circumstances that will not result in a violation of applicable federal
and state securities laws. Upon exercise of this Option, the Holder shall, if
requested by the Company, confirm in writing, in a form satisfactory to the
Company, that the Shares of Common Stock so purchased are being acquired solely
for the Holder's own account and not as a nominee for any other party, for

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investment (unless such shares are subject to resale pursuant to an effective
prospectus), and not with a view toward distribution or resale.

                 (b) Neither this Option nor any share of Common Stock issued
upon exercise of this Option may be offered for sale or sold, or otherwise
transferred or sold in any transaction which would constitute a sale thereof
within the meaning of the 1933 Act, unless (i) such security has been registered
for sale under the 1933 Act and registered or qualified under applicable state
securities laws relating to the offer an sale of securities; (ii) exemptions
from the registration requirements of the 1933 Act and the registration or
qualification requirements of all such state securities laws are available and
the Company shall have received an opinion of counsel satisfactory to the
Company that the proposed sale or other disposition of such securities may be
effected without registration under the 1933 Act and would not result in any
violation of any applicable state securities laws relating to the registration
or qualification of securities for sale, such counsel and such opinion to be
satisfactory to the Company. The Holder of this Option, by acceptance hereof,
acknowledges that the Company has no obligation to file a registration statement
with the Securities and Exchange Commission or any state securities commission
to register the issuance of the Shares upon exercise hereof or the sale or
transfer of the Shares after issuance.

                 (c) All Shares issued upon exercise hereof shall be stamped or
imprinted with a legend in substantially the following form (in addition to any
legend required by state securities laws).

            THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
            BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN
            EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH
            SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144, OR THE
            COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE
            SECURITIES, REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT
            SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
            REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

                 (d) Holder recognizes that investing in the Option and the
Shares involves a high degree of risk, and Holder is in a financial position to
hold the Option and the Shares indefinitely and is able to bear the economic
risk and withstand a complete loss of its investment in the Option and the
Shares. The Holder is a sophisticated investor and is capable of evaluating the
merits and risks of investing in the Company. The Holder has had an opportunity
to discuss the Company's business, management and financial affairs with the
Company's management, has been given full and complete access to information
concerning the Company, and has utilized such access to its satisfaction for the
purpose of obtaining information or verifying information and has had the
opportunity to inspect the Company's operation. Holder has had the opportunity
to ask questions of, and receive answers from the management of the Company (and
any person acting on its behalf) concerning the Option and the Shares and the
agreements and transactions contemplated hereby, and to obtain any additional
information as Holder may have requested in making its investment decision.

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                 (e) Holder acknowledges and represents: (i) that he has been
afforded the opportunity to review and is familiar with the business prospects
and finances of the Company and has based his decision to invest solely on the
information contained therein and has not been furnished with any other
literature, prospectus or other information except as included in such reports;
(ii) he maintains his domicile and is not a transient or temporary resident at
the address on the books and records of the Company; (iii) he understands that
no federal or state agency has approved or disapproved the Option or Shares or
made any finding or determination as to the fairness of the Option and Common
Stock for investment; and (iv) that the Company has made no representations,
warranties, or assurances as to (A) the future trading value of the Common
Stock, (B) whether there will be a public market for the resale of the Common
Stock or (C) the filing of a registration statement with the Securities and
Exchange Commission or any state securities commission to register the issuance
of the Shares upon exercise hereof or the sale or transfer of the Shares after
issuance.

       8. RESERVATION AND ISSUANCE OF STOCK; PAYMENT OF TAXES.

            (a) The Company covenants that during the term that this Option is
exercisable, the Company will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Shares
upon the exercise of this Option, and from time to time will take all steps
necessary to amend its Certificate of Incorporation to provide sufficient
reserves of shares of Common Stock issuable upon the exercise of the Option.

            (b) The Company further covenants that all shares of Common Stock
issuable upon the due exercise of this Option will be free and clear from all
taxes or liens, charges and security interests created by the Company with
respect to the issuance thereof, however, the Company shall not be obligated or
liable for the payment of any taxes, liens or charges of Holder, or any other
party contemplated by Section 7, incurred in connection with the issuance of
this Option or the Common Stock upon the due exercise of this Option. The
Company agrees that its issuance of this Option shall constitute full authority
to its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the shares of Common Stock upon
the exercise of this Option. The Common Stock issuable upon the due exercise of
this Option, will, upon issuance in accordance with the terms hereof, be duly
authorized, validly issued, fully paid and non-assessable.

            (c) Upon exercise of the Option, the Company shall have the right to
require the Holder to remit to the Company an amount sufficient to satisfy
federal, state and local tax withholding requirements prior to the delivery of
any certificate for Shares of Common Stock purchased pursuant to the Option, if
in the opinion of counsel to the Company such withholding is required under
applicable tax laws.

            (d) If Holder is obligated to pay the Company an amount required to
be withheld under applicable tax withholding requirements may pay such amount
(i) in cash; (ii) in the discretion of the Board of Directors of the Company,
through the delivery to the Company of previously-owned shares of Common Stock
having an aggregate Fair Market Value equal to the tax obligation provided that
the previously owned shares delivered in satisfaction of the withholding
obligations must have been held by the Holder for at least six (6) months; (iii)
in the

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discretion of the Board of Directors of the Company, through the withholding of
Shares of Common Stock otherwise issuable to the Holder in connection with the
Option exercise; or (iv) in the discretion of the Board of Directors of the
Company, through a combination of the procedures set forth in subsections (i),
(ii) and (iii) of this Section 8(d).

       9. NOTICES.

            (a) Whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 11 hereof, the Company shall
issue a certificate signed by its Chief Financial Officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the Exercise
Price and number of shares purchasable hereunder after giving effect to such
adjustment, and shall cause a copy of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Option.

            (b) All notices, advices and communications under this Option shall
be deemed to have been given, (i) in the case of personal delivery, on the date
of such delivery and (ii) in the case of mailing, on the third business day
following the date of such mailing, addressed as follows:

                 If to the Company:

                 BIO-key International, Inc.
                 1285 Corporate Center Drive
                 Suite 175
                 Eagan, MN 55121

                 With a copy to:

                 Duane Morris LLP
                 51 Haddonfield Road, Suite 340
                 Cherry Hill, NJ 08002
                 Attn.:  Vincent A. Vietti, Esquire

                 and to the Holder:

                 Harlan Plumley
                 83 Ferncroft Road
                 Waban, MA 02468

       Either of the Company or the Holder may from time to time change the
address to which notices to it are to be mailed hereunder by notice in
accordance with the provisions of this Paragraph 9.

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         10.      AMENDMENTS.

            (a) Any term of this Option may be amended with the written consent
of the Company and the Holder. Any amendment effected in accordance with this
Section 10 shall be binding upon the Holder, each future holder and the Company.

            (b) No waivers of, or exceptions to, any term, condition or
provision of this Option, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

       11. ADJUSTMENTS. The number of Shares of Common Stock purchasable
hereunder and the Exercise Price is subject to adjustment from time to time upon
the occurrence of certain events, as follows:

            11.1. REORGANIZATION, MERGER OR SALE OF ASSETS. If at any time while
this Option, or any portion thereof, is outstanding and unexpired there shall be
(i) a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein); or (ii) a merger or
consolidation of the Company in which the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then, as a part of such reorganization, merger, or consolidation,
lawful provision shall be made so that the holder of this Option shall upon such
reorganization, merger, or consolidation, have the right by exercising such
Option, to purchase the kind and number of shares of Common Stock or other
securities or property (including cash) otherwise receivable upon such
reorganization, merger or consolidation by a holder of the number of shares of
Common Stock that might have been purchased upon exercise of such Option
immediately prior to such reorganization, merger or consolidation. The foregoing
provisions of this Section 11.1 shall similarly apply to successive
reorganizations, consolidations or mergers. If the per-share consideration
payable to the Holder hereof for shares in connection with any such transaction
is in a form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company's Board of
Directors. In all events, appropriate adjustment (as determined in good faith by
the Company's Board of Directors) shall be made in the application of the
provisions of this Option with respect to the rights and interests of the Holder
after the transaction, to the end that the provisions of this Option shall be
applicable after that event, as near as reasonably may be, in relation to any
shares or other property deliverable after that event upon exercise of this
Option.

            11.2. RECLASSIFICATION. If the Company, at any time while this
Option, or any portion thereof, remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Option exist into the same or a different
number of securities of any other class or classes, this Option shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities that
were subject to the purchase rights under this Option immediately prior to such
reclassification or other change and the Exercise Price therefor shall be
appropriately adjusted, all subject to further adjustment as provided in this
Section 11.

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            11.3. SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If the Company at
any time while this Option, or any portion thereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Option exist, into a different number of securities of the
same class, the Exercise Price and the number of shares issuable upon exercise
of this Option shall be proportionately adjusted.

            11.4. ADJUSTMENTS FOR DIVIDENDS IN STOCK OR OTHER SECURITIES OR
PROPERTY. If while this Option, or any portion hereof, remains outstanding and
unexpired the holders of the securities as to which purchase rights under this
Option exist at the time shall have received, or, on or after the record date
fixed for the determination of eligible Stockholders, shall have become entitled
to receive, without payment therefor, other or additional stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Option shall represent the right to acquire, in addition
to the number of shares of the security receivable upon exercise of this Option,
and without payment of any additional consideration therefor, the amount of such
other or additional stock or other securities or property (other than cash) of
the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security receivable upon exercise of this Option on
the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional stock, other securities or property available by this Option as
aforesaid during such period.

            11.5 GOOD FAITH. The Company will not, by any voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Section 11 and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Option against impairment.

       12. FUNDAMENTAL TRANSACTION. For purposes of this Section 12, a
"Fundamental Transaction" shall mean (i) the dissolution or liquidation of the
Company; (ii) a merger, reorganization or consolidation in which the Company is
acquired by another person or entity (other than a holding company or subsidiary
formed by the Company); (iii) the sale of all or substantially all of the assets
of the Company to any person or persons; or (iv) the sale in a single
transaction or a series of related transactions of voting stock representing
more than fifty percent (50%) of the voting power of all outstanding shares of
the Company to any person or persons. In the event of a Fundamental Transaction,
this Option shall automatically become immediately exercisable in full, and
shall be deemed to have attained such status immediately prior to the
Fundamental Transaction. Holder shall be given at least 15 days prior written
notice of a Fundamental Transaction and shall be permitted to exercise any
vested Options during this 15 day period (including those Options vesting as a
result of the provisions of this Section 12). In the event of a Fundamental
Transaction, any Options which are neither assumed or substituted for in
connection with the Fundamental Transaction nor exercised as of the date of the
Fundamental Transaction, shall terminate and cease to be outstanding effective
as of the date of the Fundamental Transaction, unless otherwise provided by the
Board of Directors of the Company.

       13. SEVERABILITY. Whenever possible, each provision of this Option shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision

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of this Option is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect the validity, legality or
enforceability of any other provision of this Option in such jurisdiction or
affect the validity, legality or enforceability of any provision in any other
jurisdiction, but this Option shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

       14. GOVERNING LAW. The corporate law of the State of Minnesota shall
govern all issues and questions concerning the relative rights of the Company
and its stockholders. All other questions concerning the construction, validity,
interpretation and enforceability of this Option and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the
State of Massachusetts, without giving effect to any choice of law or conflict
of law rules or provisions (whether of the State of Massachusetts or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Massachusetts.

       15. JURISDICTION. The Holder and the Company agree to submit to personal
jurisdiction and to waive any objection as to venue in the federal or state
courts of Massachusetts. Service of process on the Company or the Holder in any
action arising out of or relating to this Option shall be effective if mailed to
such party at the address listed in Section 9 hereof.

       16. ARBITRATION. If a dispute arises as to interpretation of this Option,
it shall be decided finally by three arbitrators in an arbitration proceeding
conforming to the Rules of the American Arbitration Association applicable to
commercial arbitration. The arbitrators shall be appointed as follows: one by
the Company, one by the Holder and the third by the said two arbitrators, or, if
they cannot agree, then the third arbitrator shall be appointed by the American
Arbitration Association. The third arbitrator shall be chairman of the panel and
shall be impartial. The arbitration shall take place in Minneapolis, Minnesota.
The decision of a majority of the arbitrators shall be conclusively binding upon
the parties and final, and such decision shall be enforceable as a judgment in
any court of competent jurisdiction. Each party shall pay the fees and expenses
of the arbitrator appointed by it, its counsel and its witnesses. The parties
shall share equally the fees and expenses of the impartial arbitrator.

       17. INTENTIONALLY OMITTED.

       18. SUCCESSORS AND ASSIGNS. This Option shall inure to the benefit of and
be binding on the respective successors, assigns and legal representatives of
the Holder and the Company.

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       IN WITNESS WHEREOF, the Company and Holder have caused this Option to be
executed as of September 15, 2004.

                                         BIO-KEY INTERNATIONAL, INC.

                                         By: /s/ Michael W. DePasquale
                                            -----------------------------------
                                            Name:  Michael W. DePasquale
                                                   --------------------------
                                            Title: Chief Executive Officer
                                                   --------------------------

AGREED AND ACCEPTED:

HARLAN PLUMLEY

 /s/ Harlan Plumley
-----------------------
     Signature

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                               NOTICE OF EXERCISE

TO:  _____________________________

       (1) The undersigned hereby elects to purchase _______ shares of Common
Stock of Bio-key International, Inc. pursuant to the terms of the attached
Option, and tenders herewith payment of the purchase price for such shares in
full in the following manner (please check one of the following choices):

        [_]  In Cash

        [_]  Cashless exercise through a broker; or

        [_]  Delivery of previously owned shares.

       (2) In exercising this Option, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued upon conversion
thereof are being acquired solely for the account of the undersigned and not as
a nominee for any other party, and for investment (unless such shares are
subject to resale pursuant to an effective prospectus), and that the undersigned
will not offer, sell or otherwise dispose of any such shares of Common Stock
except under circumstances that will not result in a violation of the Securities
Act of 1933, as amended, or any state securities laws.

       (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned.

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

--------------------------               -----------------------------
(Date)                                   (Signature)

                                       12<Page>

                                                                Exhibit 10.44

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT (the "Agreement") dated September 15, 2004 by and between BIO-Key
International, Inc., a Minnesota corporation with its principal place of
business at 1285 Corporate Center Drive, Suite 175, Eagan, MN 55121 (the
"Company"), and Harlan Plumley, residing at 83 Ferncroft Road, Waban, MA 02468
(the "Executive").

                                   WITNESSETH:

       WHEREAS, the Company desires to secure the employment of the Executive in
accordance with the provisions of this Agreement; and

       WHEREAS, the Executive desires and is willing to be employed by the
Company in accordance herewith.

       NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and intending to be legally bound
hereby, the parties hereto agree as follows:

       1. EMPLOYMENT TERM. This Agreement shall remain in force and effect for a
term commencing on the date hereof and expiring on the first anniversary hereof
(the "Initial Term"), or until the employment relationship is terminated
pursuant to Section 4 hereof. Upon the expiration of the Initial Term, this
Agreement will be renewed automatically for successive one year periods (each, a
"Renewal Term"), unless sooner terminated in accordance with the provisions of
Section 4 or unless Company gives written notice of non-renewal at least two (2)
months prior to the date on which the Executive's employment would otherwise
end.

       2. DUTIES; EXCLUSIVE SERVICES AND BEST EFFORTS.

            (a) DUTIES. Executive shall hold the position of Chief Financial
Officer and shall have such responsibilities, duties and authority consistent
with such position as may from time to time be determined by the Company's Chief
Executive Officer ("CEO") or board of directors. The Executive shall report to
the CEO.

            (b) EXCLUSIVE SERVICES AND BEST EFFORTS. The Executive agrees to
devote his best efforts, energies and skill to the faithful, competent and
diligent discharge of the duties and responsibilities attributable to his
position, and to this end, will devote his fulltime attention to the business
and affairs of the Company. The Executive also agrees that he shall not take
personal advantage of any business opportunities that arise during his
employment that may benefit the Company. All material facts regarding such
opportunities must be promptly reported to the Company's Board of Directors for
its consideration.

<Page>

       3. COMPENSATION. On and after the commencement of Executive's employment,
the Executive shall receive, for all services rendered to the Company hereunder,
the following:

            (a) BASE SALARY. The Executive shall be paid a base annual salary
equal to One Hundred Ninety Thousand Dollars ($190,000). The Executive's annual
base salary shall be payable in equal installments in accordance with the
Company's general salary payment policies but no less frequently than monthly.

            (b) INCENTIVE COMPENSATION. The Executive may be eligible to receive
awards under the Company's incentive compensation plans, including without
limitation, any stock option plans, applicable to high level executives of the
Company, in accordance with the terms thereof and on a basis commensurate with
his position, responsibilities and performance. Any such compensation shall be
determined by the Company in its sole discretion. Nothing herein shall effect
any rights or obligations of the Executive or the Company created pursuant to
any stock option plan or stock option agreement between the parties hereto.

            (c) STOCK OPTIONS. Executive shall be granted, subject to the terms
of a stock option agreement to be entered into by the Company and Executive in
substantially the form attached hereto as Exhibit A, a stock option to purchase
200,000 shares of the Company's Common Stock.

            (d) BENEFITS PLANS. The Executive shall be eligible to participate
in any and all employee welfare and health benefit plans (including, but not
limited to, life insurance, health, medical and dental plans) and other employee
benefit plans, which may be established by the Company from time to time for the
benefit of other Company employees of comparable status. The Executive shall be
required to comply with the conditions attendant to coverage by such preceding
plans and policies and shall comply with and be eligible for benefits only in
accordance with the terms and conditions of such plans as they may be amended
from time to time. Nothing in this Agreement shall be construed as requiring the
Company to establish or continue any particular benefit plan in discharge of its
obligations under this Agreement.

            (e) VACATION. The Executive shall be eligible for three (3) weeks of
paid vacation each year of his employment hereunder. The Executive shall be
permitted to carry over and accrue unused vacation time for a period of up to
two years. Except as required by applicable law, in no event shall the Executive
be entitled to receive any cash compensation in lieu of unused vacation time.

            (f) EXPENSES. Subject to and in accordance with the Company's
policies and procedures, and, upon presentation of itemized accounts, the
Executive shall be reimbursed by the Company for reasonable and necessary
business-related expenses, which expenses are incurred by the Executive on
behalf of the Company.

                                      -2-
<Page>

            (g) DEDUCTIONS FROM SALARY AND BENEFITS. The Company will withhold
from any salary or benefits payable to the Executive all federal, state, local,
and other taxes and other amounts as required by law, rule or regulation.

       4. TERMINATION. This Agreement may be terminated by either the Executive
or the Company at any time, subject only to the provisions of this Section 4.

            (a) VOLUNTARY TERMINATION. If Executive terminates his own
employment, the Company shall be released from any and all further obligations
under this Agreement, except that the Company shall be obligated to pay
Executive his salary and benefits owing to Executive through the effective date
of termination. Executive shall also be entitled to any reimbursement owed in
accordance with Section 3(f). Executive's obligations under Sections 5, 7, 8 and
9 hereof and shall survive the termination of Executive's employment, and
Executive shall remain bound thereby.

            (b) DEATH. This Agreement shall terminate on the date of the
Executive's death, in which event salary, benefits, and reimbursable expenses
owing to the Executive through the date of the Executive's death shall be paid
to his estate.

            (c) DISABILITY. If, during the term of this Agreement, in the
opinion of the Company, the Executive, because of physical or mental illness or
incapacity or disability, shall become unable to perform, with or without
reasonable accommodation, substantially all of the duties and services required
of him under this Agreement for a period one hundred eighty (180) days during
any twelve-month period, the Company may, upon at least ten (10) days prior
written notice given at any time after the expiration of such one hundred eighty
(180) day period, notify the Executive of its intention to terminate this
Agreement as of the date set forth in the notice. In case of such termination,
the Executive shall be entitled to receive salary, benefits, and reimbursable
expenses owing to the Executive through the date of termination. The Company
shall have no further obligation or liability to the Executive. The Executive's
obligations under Sections 5, 7 8 and 9 hereof shall survive the termination of
Executive's employment, and Executive shall remain bound thereby.

            (d) TERMINATION BY EMPLOYER FOR CAUSE. This Agreement may be
terminated by the Company for "Cause" at any time. Upon such termination for
"Cause", the Company shall be released from any and all further obligations
under this Agreement, except that the Company shall be obligated to pay the
Executive his salary and benefits owing to the Executive through the effective
date of such termination. The Executive shall also be entitled to any
reimbursement owed in accordance with Section 3(f). The Executive's obligations
under Sections 5, 7, 8 and 9 hereof shall survive the termination of Executive's
employment, and Executive shall remain bound thereby.

            CAUSE. "Cause" for Termination shall mean the following conduct of
the Executive:

                                      -3-
<Page>

                 (i) Breach of any material provision of this Employment
Agreement by the Executive if not cured within two (2) weeks after receiving
written notice thereof;

                 (ii) Misconduct as an employee of the Company, including but
not limited to, misappropriating funds or property of the Company; any attempt
to obtain any personal profit from any transaction in which the Executive has an
interest that is adverse to the Company; any breach of the duty of loyalty and
fidelity to the Company; or any other act or omission of the Executive which
substantially impairs the Company's ability to conduct its ordinary business in
its usual manner;

                 (iii) Material neglect or refusal to perform the duties
assigned to the Executive pursuant to this Employment Agreement if not cured
within two (2) weeks after receiving notice thereof;

                 (iv) Conviction of a felony or plea of guilty or nolo
contendere to a felony;

                 (v) Acts of dishonesty or moral turpitude by the Executive that
are detrimental to the Company or any other act or omission which subjects the
Company or any of its affiliates to public disrespect, scandal, or ridicule, or
that causes the Company to be in violation of governmental regulations that
subjects the Company either to sanctions by governmental authority or to civil
liability to its employees or third parties; or

                 (vi) Disclosure or use of confidential information of the
Company, other than as specifically authorized and required in the performance
of the Executive's duties.

            (e) TERMINATION BY COMPANY WITHOUT CAUSE. Upon termination of this
Agreement without Cause, the Company shall be released from any and all further
obligations under this Agreement, except that the Executive shall continue to be
paid or provided, as applicable, in the same manner as before termination, and
for a period of time equal to the greater of (i) six (6) months; and (ii) that
number of months remaining until the end of the Term, if, and only if, the
Executive signs a valid general release of all claims against the Company, its
affiliates, subsidiaries, officers, directors and agents, in a form provided by
the Company. The Company shall have no further obligation or liability to the
Executive. The Executive's obligations under Sections 5, 7, 8 and 9 hereof and
shall survive the termination of the Executive's employment, regardless of the
circumstances of any such termination, and the Executive shall remain bound
thereby.

            (f) TERMINATION BY MUTUAL AGREEMENT. This Agreement may be
terminated at any time by mutual agreement of the Executive and the Company.

                                      -4-
<Page>

       5. NON-COMPETITION AND BUSINESS OPPORTUNITIES.

            (a) NON-COMPETITION. The Executive understands that the Company (for
the purpose of Sections 5, 7(c) 8(b) and 9, Company shall include all
subsidiaries and affiliates of the Company) is in the business of (i) developing
and licensing finger print identification technologies, and distributing
products incorporating such technologies to original equipment manufacturers,
systems integrators, application developers and end users; and (ii) developing,
licensing and/or selling software, products and services, including wireless
solutions, and providing technology support and services to the law enforcement
and public safety markets. The Executive agrees that during the period of his
employment hereunder and for a period of one (1) year thereafter, the Executive
will not directly or indirectly: (i) market, sell or perform services such as
are offered or conducted by the Company during the period of his employment, to
any customer or client of the Company or "Prospective Customer" or client of the
Company; or (ii) engage, directly or indirectly, whether as principal or as
agent, officer, director, employee, consultant, shareholder, or otherwise, alone
or in association with any other person, corporation or other entity, in any
"Competing Business". For the purpose of this Agreement, "Prospective Customer"
shall mean any person with whom the Company has engaged in any discussion or
negotiation regarding the use of the Company's products or services. For
purposes of this Section 5(a), the term "shareholder" shall exclude any interest
owned by Employer in a public company to the extent the Employer owns less than
five percent (5%) of any such company's outstanding common stock. For the
further purposes of this Agreement, the term "Competing Business" shall mean any
person, corporation or other entity (X) developing and/or licensing finger print
identification technologies or distributing products incorporating such
technologies, (Y), developing, licensing or selling software, products and
services, including wireless solutions, or providing technology support or
services to the law enforcement and public safety markets within the United
States or (Z) offering or developing products or services in competition with
products or services offered by, or being developed by the Company at the time
of the termination of Executive's employment with the Company. Due to the nature
of the markets served and the technology and products to be developed and
marketed by the Company which are intended to be available on a national basis,
the restrictions set forth in this Section 5(a) can not be limited to a specific
geographic area within the United States.

            (b) BUSINESS OPPORTUNITIES. The Executive agrees that during the
period of his employment hereunder, the Executive will not take personal
advantage of any business opportunities that are similar or substantially
similar to the business of the Company. In addition, all material facts
regarding any such business opportunities must be promptly and fully disclosed
by the Executive to the CEO as soon as the Executive becomes aware of any
opportunity, and in no event later than forty-eight (48) hours after learning of
such opportunity. Business opportunities covered by this Section 5(b) shall
include, but are not limited to, opportunities relating to the development and
licensing of finger print identification technologies or the distribution of
products incorporating such technologies to original equipment manufacturers and
end users.

                                      -5-
<Page>

            (c) NON-SOLICITATION. The Executive agrees that during the period of
employment hereunder and for a period of one (1) year thereafter, the Executive
will not request or otherwise attempt to induce or influence, directly or
indirectly, any present customer, distributor or supplier, or Prospective
Customer, distributor or supplier, of the Company, or other persons sharing a
business relationship with the Company to cancel, to limit or postpone their
business with the Company, or otherwise take action which might be to the
material disadvantage of the Company. The Executive agrees that during the
period of employment hereunder and for a period of one (1) year thereafter,
Executive will not hire or solicit for employment, directly or indirectly, or
induce or actively attempt to influence, hire or solicit, any employee, agent,
officer, director, contractor, consultant or other business associate of the
Company to terminate his or her employment or discontinue such person's
consultant, contractor or other business association with the Company.

            (d) SCOPE. The parties hereto agree that, due to the nature of the
Company's business, the duration and scope of the non-competition and
non-solicitation provisions set forth above are reasonable. In the event that
any court determines that the duration or the geographic scope, or both, are
unreasonable and that such provisions are to that extent unenforceable, the
parties hereto agree that such provisions shall remain in full force and effect
for the greatest time period and in the greatest area that would not render it
unenforceable. The parties intend that the non-competition and non-solicitation
provisions herein shall be deemed to be a series of separate covenants, one for
each and every county of each and every state of the United States of America
and each and every political subdivision of each and every country outside the
United States of America where this provision is intended to be effective. The
Executive agrees that damages are an inadequate remedy for any breach of such
provisions and that the Company, shall, whether or not it is pursuing any
potential remedies at law, be entitled to seek in any court of competent
jurisdiction, equitable relief in the form of preliminary and permanent
injunctions without bond or other security upon any actual or threatened breach
of either of these competition provisions. If the Executive shall violate this
Section 5, the duration of this Section 5 automatically shall be extended as
against the Executive for a period equal to the period during which the
Executive shall have been in violation of this Section 5. The covenants
contained in this Section 5 are deemed to be material and the Company is
entering into this Agreement relying on such covenants.

       6. REPRESENTATIONS AND WARRANTIES OF THE EXECUTIVE. The Executive, hereby
represents and warrants to the Company as follows: (i) The Executive has the
legal capacity and unrestricted right to execute and deliver this Agreement and
to perform all of his obligations hereunder; (ii) the execution and delivery of
this Agreement by the Executive and the performance of his obligations hereunder
will not violate or be in conflict with any fiduciary or other duty, instrument,
agreement, document, arrangement, or other understanding to which Executive is a
party or by which he is or may be bound or subject; and (iii) except as set
forth in Exhibit B attached hereto, the Executive is not a party to any
instrument, agreement, document, arrangement, including, but not limited to,
invention assignment agreement, confidential information agreement,
non-competition agreement, non-solicitation agreement, or other understanding
with any person (other than the Company) requiring or restricting the use or

                                      -6-
<Page>

disclosure of any confidential information or the provision of any employment,
consulting or other services.

       7. DISCLOSURE OF INNOVATIONS; ASSIGNMENT OF OWNERSHIP OF INNOVATIONS;
PROTECTION OF CONFIDENTIAL INFORMATION. Executive hereby represents and warrants
to the Company that Executive understands that the Company is in the business of
(i) developing and licensing finger print identification technologies, and
distributing products incorporating such technologies, to original equipment
manufacturers, systems integrators, application developers and end users; and
(ii) developing, licensing and/or selling software, products and services,
including wireless solutions, and providing technology support and services to
the law enforcement and public safety markets, and that Executive may have
access to or acquire information with respect to Confidential Information (as
defined below), including software, processes and methods, development tools,
scientific, technical and/or business innovations.

            (a) DISCLOSURE OF INNOVATIONS. Executive agrees to disclose in
writing to the Company all inventions, improvements and other innovations of any
kind that Executive may make, conceive, develop or reduce to practice, alone or
jointly with others, during the term of Executive's employment with the Company,
whether or not such inventions, improvements or other innovations are related to
and grow out of Executive's work for the Company and whether or not they are
eligible for patent, copyright, trademark, trade secret or other legal
protection ("Innovations"). Examples of Innovations shall include, but are not
limited to, discoveries, research, inventions, formulas, techniques, processes,
know-how, marketing plans, new product plans, production processes, advertising,
packaging and marketing techniques and improvements to computer hardware or
software.

            (b) ASSIGNMENT OF OWNERSHIP OF INNOVATIONS. Executive agrees that
all Innovations will be the sole and exclusive property of the Company and
Executive hereby assigns all of Executive's rights, title or interest in the
Innovations and in all related patents, copyrights, trademarks, trade secrets,
rights of priority and other proprietary rights to the Company. At the Company's
request and expense, during and after the period of Executive's employment with
the Company, Executive will assist and cooperate with the Company in all
respects and will execute documents, and, subject to Executive's reasonable
availability, give testimony and take further acts requested by the Company to
obtain, maintain, perfect and enforce for the Company patent, copyright,
trademark, trade secret and other legal protection for the Innovations.
Executive hereby appoints an authorized officer of the Company as Executive's
attorney-in-fact to execute documents on his behalf for this purpose. Executive
has attached hereto as Exhibit C a list of Innovations as of the date hereof
which belong to Executive and which are not assigned to the Company hereunder
(the "Prior Innovations"), or, if no such list is attached, Executive represents
that there are no Prior Innovations.

            (c) PROTECTION OF CONFIDENTIAL INFORMATION OF THE COMPANY. Executive
understands that Executive's work as an employee of the Company creates a
relationship of trust and confidence between Executive and the Company. During
and after the period of Executive's employment with the Company, Executive will
not use or disclose or allow anyone else to use or disclose any "Confidential
Information" (as defined below) relating to the Company, its

                                      -7-
<Page>

products, services, suppliers or customers except as may be necessary in the
performance of Executive's work for the Company or as may be specifically
authorized in advance by appropriate officers of the Company. "Confidential
Information" shall include, but not be limited to, information consisting of
research and development, patents, trademarks and copyrights and applications
thereto, technical information, computer programs, software, methodologies,
innovations, software tools, know-how, knowledge, designs, drawings,
specifications, concepts, data, reports, processes, techniques, documentation,
pricing, marketing plans, customer and prospect lists, trade secrets, financial
information, salaries, business affairs, suppliers, profits, markets, sales
strategies, forecasts, Executive information and any other information not
available to the general public, whether written or oral, which Executive knows
or has reason to know the Company would like to treat as confidential for any
purpose, such as maintaining a competitive advantage or avoiding undesirable
publicity. Executive will keep Confidential Information secret and will not
allow any unauthorized use of the same, whether or not any document containing
it is marked as confidential. These restrictions, however, will not apply to
Confidential Information that has become known to the public generally through
no fault or breach of Executive's or that the Company regularly gives to third
parties without restriction on use or disclosure.

       8. WORK MADE FOR HIRE; DISCLOSURE OF WORKS AND INVENTIONS/ASSIGNMENT OF
PATENTS.

            (a) WORK MADE FOR HIRE. Executive further recognizes and understands
that Executive's duties at the Company may include the preparation of materials,
including without limitation written or graphic materials, and that any such
materials conceived or written by Executive shall be done as "work made for
hire" as defined and used in the Copyright Act of 1976, 17 U.S.C. ss.ss. 1 ET
SEQ. In the event of publication of such materials, Executive understands that
since the work is a "work made for hire", the Company will solely retain and own
all rights in said materials, including right of copyright. In the event that
any of such works shall be deemed by a court of competent jurisdiction not to be
a "work made for hire," this Agreement shall operate as an irrevocable
assignment by Executive to the Company of all right, title and interest in and
to such works, including, without limitation, all worldwide copyright interests
therein, in perpetuity. The fact that such copyrightable works are created by
Executive outside of the Company's facilities or other than during Executive's
working hours with the Company shall not diminish the Company's right with
respect to such works which otherwise fall within this paragraph. Executive
agrees to execute and deliver to the Company such further instruments or
documents as may be requested by the Company in order to effectuate the purposes
of this paragraph.

            (b) DISCLOSURE OF WORKS AND INVENTIONS/ASSIGNMENT OF PATENTS. In
consideration of the promises set forth herein, Executive agrees to disclose
promptly to the Company, or to such person whom the Company may expressly
designate for this specific purpose (its "Designee"), any and all works,
inventions, discoveries and improvements authored, conceived or made by
Executive during the period of employment and related to the business or
activities of the Company, and Executive hereby assigns and agrees to assign all
of Executive's interest in the foregoing to the Company or to its Designee.
Executive agrees that, whenever he is requested to do so by the Company,
Executive shall execute any and all applications,

                                      -8-
<Page>

assignments or other instruments which the Company shall deem necessary to apply
for and obtain Letters Patent or Copyrights of the United States or any foreign
country or to otherwise protect the Company's interest therein. Such obligations
shall continue beyond the termination or nonrenewal of Executive's employment or
service with respect to any works, inventions, discoveries and/or improvements
that are authored, conceived of, or made by Executive during the period of
Executive's employment or service, and shall be binding upon Executive's
successors, assigns, executors, heirs, administrators or other legal
representatives.

       9. COMPANY PROPERTY. All records, files, lists, including computer
generated lists, drawings, documents, software, documents, equipment, models,
binaries, object modules, libraries, source code and similar items relating to
the Company's business that the Executive shall prepare or receive from the
Company and all Confidential Information shall remain the Company's sole and
exclusive property ("Company Business Property"). Upon termination of this
Agreement, the Executive shall promptly return to the Company all property of
the Company in his possession, including Company Business Property. The
Executive further represents that he will not copy or cause to be copied, print
out, or cause to be printed out any Company Business Property other than as
specifically authorized and required in the performance of the Executive's
duties. The Executive additionally represents that, upon termination of his
employment with the Company, he will not retain in his possession any such
Company Business Property.

       10. COOPERATION. The Executive and Company agree that during the term of
Executive's employment they shall, at the request of the other Party, render all
assistance and perform all lawful acts that each Party considers necessary or
advisable in connection with any litigation involving either Party or any
director, officer, employee, shareholder, agent, representative, consultant,
client, or vendor of the Company.

       11. EMPLOYMENT DISPUTE SETTLEMENT PROCEDURE/WAIVER OF RIGHTS.

            (a) The Executive and the Company each agree that, in the event
either party (or its representatives, successors or assigns) brings an action in
a court of competent jurisdiction relating to the Executive's recruitment,
employment with, or termination of employment from the Company, each party in
such action agrees to waive his, her or its right to a trial by jury, and
further agrees that no demand, request or motion will be made for trial by jury.

            (b) The parties hereto further agree that, in the event that either
seeks relief in a court of competent jurisdiction for a dispute covered by this
Agreement, any other Agreement between the Executive and the Company or which
relates to the Executive's recruitment, employment with, or termination of
employment from the Company, the defendant or third-party defendant in such
action may, at any time within sixty (60) days of the service of the complaint,
third-party complaint or cross-claim upon such party, at his, her or its option,
require all or part of the dispute to be arbitrated by one arbitrator in
accordance with the rules of the American Arbitration Association. The parties
agree that the option to arbitrate any dispute is governed by the Federal
Arbitration Act. The parties understand and agree that, if the other party
exercises

                                      -9-
<Page>

his, her or its option, any dispute arbitrated will be heard solely by the
arbitrator, and not by a court. Judgment upon the award rendered, however, may
be entered in any court of competent jurisdiction. The cost of such arbitration
shall be borne equally by the parties.

            (c) This dispute resolution agreement will cover all matters
directly or indirectly related to the Executive's recruitment, employment or
termination of employment by the Company; including, but not limited to, claims
involving laws against discrimination whether brought under federal and/or state
law and/or local law, and/or claims involving co-employees but excluding
Worker's Compensation Claims. Nothing contained in this Section 11 shall limit
the right of the Company to enforce by court injunction or other equitable
relief the Executive's obligations under Sections 5, 7, 8 and 9 hereof.

                 The right to a trial, and to a trial by jury, is of value.

            THE EXECUTIVE MAY WISH TO CONSULT AN ATTORNEY PRIOR TO SIGNING THIS
            AGREEMENT. IF SO, THE EXECUTIVE SHOULD TAKE A COPY OF THIS AGREEMENT
            WITH HIM. HOWEVER, THE EXECUTIVE WILL NOT BE OFFERED EMPLOYMENT
            UNTIL THIS AGREEMENT IS SIGNED AND RETURNED TO EMPLOYER.

       12. CHOICE OF LAW AND JURISDICTION. This Agreement shall be construed,
interpreted and the rights of the parties determined in accordance with the laws
of the State of Massachusetts. Each of the parties hereto hereby irrevocably
consents and submits to the exclusive jurisdiction of the state courts of the
State of Massachusetts, and of the United States District Court for the District
of Massachusetts in connection with any suit, action, or other proceeding
concerning this Agreement or enforcement of Sections 5, 7, 8 and 9 hereof. The
Executive waives and agrees not to assert any defense that the court lacks
jurisdiction, venue is improper, inconvenient forum or otherwise. The Executive
waives the right to a jury trial and agrees to accept service of process by
certified mail at the Executive's last known address.

       13. SUCCESSORS AND ASSIGNS. Neither this Agreement, nor any of the
Executive's rights, powers, duties or obligations hereunder, may be assigned by
the Executive. This Agreement shall be binding upon and inure to the benefit of
the Executive and his heirs and legal representatives and the Company and its
successors. Successors of the Company shall include, without limitation, any
company or companies, individuals, groups, associations, partnerships, firm,
venture or other entity or party acquiring, directly or indirectly, all or
substantially all of the assets of the Company, whether by merger,
consolidation, purchase, lease or otherwise. Any such successor referred to in
this paragraph shall thereafter be deemed "the Company" for the purpose hereof.
All covenants and restrictions upon the Executive hereunder, including, but not
limited to Sections 5, 7, 8 and 9 hereof, are specifically assignable by the
Company.

       14. WAIVER. Any waiver or consent from the Company with respect to any
term or provision of this Agreement or any other aspect of the Executive's
conduct or employment shall be effective only in the specific instance and for
the specific purpose for which given and shall

                                      -10-
<Page>

not be deemed, regardless of frequency given, to be a further or continuing
waiver or consent. The failure or delay of the Company at any time or times to
require performance of, or to exercise any of its powers, rights or remedies
with respect to any term or provision of this Agreement or any other aspect of
the Executive's conduct or employment in no manner (except as otherwise
expressly provided herein) shall affect the Company's right at a later time to
enforce any such term or provision.

       15. NOTICES. All notices, requests, demands, and other communications
hereunder must be in writing and shall be deemed to have been duly given if
delivered by hand or mailed within the continental United States by first class,
registered mail, return receipt requested, postage and registry fees prepaid, to
the applicable party and addressed as follows:

                  (a)      If to the Company:

                           Bio-key International, Inc.
                           1285 Corporate Center Drive, Suite 175
                           Eagan, MN 55121
                           Attn:  Board of Directors

                           With a copy to:

                           Duane Morris LLP
                           Colwick Building
                           51 Haddonfield Road
                           Suite 340
                           Cherry Hill, NJ 08002
                           Attn:  Vincent A. Vietti, Esquire

                  (b)      If to the Executive:

                           Harlan Plumley
                           83 Ferncroft Road
                           Waban, MA 02468

       16. CONSTRUCTION OF AGREEMENT.

            (a) SEVERABILITY. In the event that any one or more of the
provisions of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity, legality or enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

            (b) HEADINGS. The descriptive headings of the several paragraphs of
this Agreement are inserted for convenience of reference only and shall not
constitute a part of this Agreement.

       17. ENTIRE AGREEMENT AND AMENDMENTS. This Agreement, including all
Exhibits which shall form parts hereof, contains the entire agreement of the
parties concerning the

                                      -11-
<Page>

Executive's employment and all promises, representations, understandings,
arrangements and prior agreements on such subject are merged herein and
superseded hereby. The provisions of this Agreement may not be amended,
modified, repealed, waived, extended or discharged except by an agreement in
writing signed by the party against whom enforcement of any amendment,
modification, repeal, waiver, extension or discharge is sought. No person acting
other than pursuant to a resolution of the Board of Directors shall have
authority on behalf of the Company to agree to amend, modify, repeal, waive,
extend or discharge any provision of this Agreement or anything in reference
thereto or to exercise any of the Company's rights to terminate or to fail to
extend this Agreement.

       18. SURVIVAL. The Executive's obligations under Paragraphs 5, 7, 8 and 9
shall survive and continue pursuant to the terms and conditions of this
Agreement following specific termination.

       19. UNDERSTANDING. The Executive represents and agrees that he fully
understands his rights to discuss all aspects of this Agreement with his private
attorney, that to the extent he desires, he availed himself of this right, that
he has carefully read and fully understands all of the provisions of this
Agreement, that he is competent to execute this Agreement, that his decision to
execute this Agreement has not been obtained by any duress and that he freely
and voluntarily enters into this Agreement, and that he has read this document
in its entirety and fully understands the meaning, intent, and consequences of
this Agreement.

       20. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

       21. INJUNCTIVE RELIEF. The Executive hereby agrees and acknowledges that
in the event of a breach or threatened breach of this Agreement by the
Executive, the Company may suffer irreparable harm and monetary damages alone
would not adequately compensate the Company. Accordingly, the Company will
therefore be entitled to injunctive relief to enforce this Agreement.

                                      -12-
<Page>

       IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
and attested by its duly authorized officers, and the Executive has set his
hand, all as of the day and year first above written.

                                         BIO-KEY INTERNATIONAL, INC.

                                         By: /s/ Michael W. DePasquale
                                             -----------------------------------
                                             Name:  Michael W. DePasquale
                                                    -----------------------
                                             Title: Chief Executive Officer
                                                    -----------------------

                                         EXECUTIVE

                                         /s/ Harlan Plumley
                                         ---------------------------------------
                                         Harlan Plumley

                                      -13-
<Page>

                                    EXHIBIT A

                                 FORM OF OPTION

<Page>

                                    EXHIBIT B

         LIST OF PRIOR CONFIDENTIALITY AND/OR NONCOMPETITION AGREEMENTS

   COMPANY;                    DATE OF EMPLOYMENT;
COMPANY ADDRESS           EFFECTIVE DATES OF AGREEMENT         BRIEF DESCRIPTION

Date:                , 2004
     ----------------                    ---------------------------------------
                                         Executive's Signature

<Page>

                                    EXHIBIT C

                                PRIOR INNOVATIONS

Date:                , 2004
     ----------------                    ---------------------------------------
                                         Executive's Signature

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