Document:

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                                                                     EXHIBIT 4.2

                                    RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                        SPEECHWORKS INTERNATIONAL, INC.

     SpeechWorks International, Inc., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), hereby certifies as
follows:

     1.  The name of the Corporation is SpeechWorks International, Inc.

     2.  The Certificate of Incorporation of the Corporation was filed with the
Secretary of State of Delaware on July 24, 1995 under the name Applied Language
Technologies, Inc.  A Certificate of Ownership, changing the Corporation's name
to SpeechWorks International, Inc. was filed on November 24, 1998.  A Restated
Certificate of Incorporation was filed on April 29, 1999 and was thereafter
amended by a Certificate of Amendment filed on January 5, 2000 and a Certificate
of Amendment filed on April 10, 2000.

     3.  This Restated Certificate of Incorporation was duly adopted in
accordance with the provisions of Sections 242 and 245 of the General
Corporation Law of the State of Delaware pursuant to resolutions adopted by the
Board of Directors of the Corporation and pursuant to Section 228(a) of the
General Corporation Law of the State of Delaware, the holders of outstanding
shares of the Corporation having no less than the minimum number of votes that
would be necessary to authorize or take such actions at a meeting at which all
shares entitled to vote thereon were present and voted, consented to the
adoption of the aforesaid amendments, without a meeting, without a vote and
without prior notice and the written notice of the taking of such actions has
been given in accordance with section 228(d) of the General Corporation Law of
the State of Delaware.

     4.  This Restated Certificate of Incorporation restates, integrates, amends
and supersedes the provisions of the Restated Certificate of Incorporation of
this Corporation as heretofore amended.

     5.  The text of the Restated Certificate of Incorporation is to read as
follows:

     FIRST:  The name of the corporation is SPEECHWORKS INTERNATIONAL, INC. (the
"Corporation").

     SECOND:  The address, including street, number, city and county, of the
registered office of the Corporation in the State of Delaware is 1013 Centre
Road, City of Wilmington, County of New Castle and the name of the registered
agent of the Corporation in the State of Delaware is The Prentice-Hall
Corporation System, Inc.
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     THIRD:  The purpose for which the Corporation is organized is to engage in
any lawful act or activity for which corporations may be organized under the
General Corporation Law of the State of Delaware.

     FOURTH:

     A.  Designation and Number of Shares.
         ---------------------------------

     The total number of shares of all classes of stock which the Corporation
shall have the authority to issue is 110,000,000 shares, consisting of
100,000,000 shares of common stock, par value $0.001 per share (the "Common
Stock") and 10,000,000 shares of Preferred Stock, par value $0.001 per share
(the "Preferred Stock").

     A statement of the designations of the different classes of stock of the
Corporation and of the powers, preferences and rights, and the qualifications,
limitations or restrictions thereof, and of the authority conferred upon the
Board of Directors to fix by resolution or resolutions any of the foregoing in
connection with the creation of one or more series of Preferred Stock and the
limitation of variations between or among such series, is set forth below in
this Article FOURTH.

     B.  Preferred Stock
         ---------------

          1.  Shares of Preferred Stock may be issued in one or more series at
such time or times and for such consideration as the Board of Directors may
determine.

          2.  Authority is hereby expressly granted to the Board of Directors to
fix from time to time, by resolution or resolutions providing for the
establishment and/or issuance of any series of Preferred Stock, the designation
and number of the shares of such series and the powers, preferences and rights
of such series, and the qualifications, limitations or restrictions thereof, to
the fullest extent such authority may be conferred upon the Board of Directors
under the Delaware General Corporation Law.

     The number of authorized shares of Preferred Stock may be increased or
decreased (but not below the number of shares thereof then outstanding) by the
affirmative vote of the holders of a majority of the Common Stock, without a
vote of the holders of the Preferred Stock, or of any series thereof, unless a
vote of any such holders is required pursuant to the terms of any Preferred
Stock designation.

     C.  Common Stock
         ------------

     The relative powers, preferences, rights, qualifications, limitations and
restrictions of the shares of the Common Stock are as follows:

          1.  Dividends.  Subject to the preferential rights, if any, of the
Preferred Stock, the holders of shares of Common Stock shall be entitled to
receive, when and if declared

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by the Board of Directors, out of the assets of the Corporation which are by law
available therefor, dividends payable either in cash, in property, or in shares
of Common Stock.

          2.  Liquidation.  In the event of any liquidation, dissolution or
winding up of the Corporation, whether voluntary or involuntary, after payment
or provision for payment of the debts and other liabilities of the Corporation
and the amounts to which the holders of any Preferred Stock shall be entitled,
the holders of Common Stock shall be entitled to share ratably in the remaining
assets of the Corporation.

          3.  Voting.  The holders of the Common Stock are entitled to one vote
for each share held; provided, however, that, except as otherwise required by
law or set forth in any Preferred Stock designation, holders of Common Stock
shall not be entitled to vote on any amendment to this Restated Certificate of
Incorporation (including any certificate of designation relating to Preferred
Stock) that relates solely to the terms of one or more outstanding series of
Preferred Stock if the holders of such affected series are entitled, either
separately or together as a class with the holders of one or more other such
series, to vote thereon by law or pursuant to this Restated Certificate of
Incorporation (including any certificate of designation relating to Preferred
Stock). There shall be no cumulative voting.

     FIFTH:  The Corporation is to have perpetual existence.

     SIXTH: The following provisions are inserted for the management of the
business and the conduct of the affairs of the Corporation, and for further
definition, limitation and regulation of the powers of the Corporation and of
its directors and stockholders:

     A.  The business and affairs of the Corporation shall be managed by or
under the direction of the Board of Directors. In addition to the powers and
authority expressly conferred upon them by statute or by this Restated
Certificate of Incorporation or the By-Laws of the Corporation as in effect from
time to time, the directors are hereby empowered to exercise all such powers and
do all such acts and things as may be exercised or done by the Corporation.

     B.  The directors of the Corporation need not be elected by written ballot
unless the By-Laws so provide.

     C.  Any action required or permitted to be taken by the stockholders of the
Corporation may be effected only at a duly called annual or special meeting of
stockholders of the Corporation and not by written consent.

     D.  Special meetings of the stockholders may only be called by the Board of
Directors.

     SEVENTH:  A.  Subject to the rights of the holders of shares of any series
of Preferred Stock then outstanding to elect additional directors under
specified circumstances, the number of directors shall be fixed from time to
time exclusively by the Board of Directors pursuant to a resolution adopted by a
majority of the Board of Directors.

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     B.  Subject to the rights of the holders of shares of any series of
Preferred Stock then outstanding to elect additional directors under specified
circumstances, the Board of Directors of the Corporation shall be divided into
three classes, with the term of office of the first class to expire at the 2001
annual meeting of stockholders or any special meeting in lieu thereof, the term
of office of the second class to expire at the 2002 annual meeting of
stockholders or any special meeting in lieu thereof, and the term of office of
the third class to expire at the 2003 annual meeting of stockholders or any
special meeting in lieu thereof.  At each annual meeting of stockholders or
special meeting in lieu thereof, directors elected to succeed those directors
whose terms expire, other than directors elected by the holders of any series of
Preferred Stock, shall be elected for a term of office to expire at the third
succeeding annual meeting of stockholders or special meeting in lieu thereof
after their election and until their successors are duly elected and qualified.

     C.  Subject to the rights of the holders of any series of Preferred Stock
then outstanding, newly created directorships resulting from any increase in the
authorized number of directors or any vacancies in the Board of Directors
resulting from death, resignation, retirement, disqualification, removal from
office or other cause shall be filled only by a majority vote of the directors
then in office even though less than a quorum, or by a sole remaining director
and not by stockholders.

     D.  Advance notice of stockholder nominations for the election of directors
and of business to be brought by stockholders before any meeting of the
stockholders of the Corporation shall be given in the manner provided in the By-
Laws of the Corporation.

     E.  Subject to the rights of the holders of any series of Preferred Stock
then outstanding, any director, or the entire Board of Directors, may be removed
from office at any time only for cause and only by the affirmative vote of the
holders of at least eighty percent (80%) of the voting power of all of the
outstanding shares of capital stock then entitled to vote at an election of the
directors.  A director may be removed for cause only after a reasonable notice
and opportunity to be heard by the stockholders.

     EIGHTH:  The Board of Directors is expressly empowered to adopt, amend or
repeal By-Laws of the Corporation.  Any adoption, amendment or repeal of the By-
Laws of the Corporation by the Board of Directors shall require the approval of
a majority of the Board of Directors.  The stockholders shall also have power to
adopt, amend or repeal the By-Laws of the Corporation; provided, that in
addition to any vote of the holders of any class or series of stock of the
Corporation required by law or by this Restated Certificate of Incorporation,
the affirmative vote of the holders of at least eighty percent (80%) of the
voting power of all of the then outstanding shares of the capital stock of the
Corporation entitled to vote generally in the election of directors, voting
together as a single class, shall be required for the stockholders to adopt,
amend or repeal any provision of the By-Laws of the Corporation.

     NINTH:  A.  To the fullest extent permitted by the Delaware General
Corporation Law as the same now exists or may hereafter be amended, the
Corporation shall indemnify, and advance expenses to, its directors and officers
and to any person who is or was serving at the request of the Corporation as a
director, officer, trustee, employee or agent of another corporation, or of a

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partnership, joint venture, trust or other enterprise, if such person was or is
made a party to or is threatened to be made a party to or is otherwise involved
(including, without limitation, as a witness) in any action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact
that such person is or was a director or officer of the Corporation or is or was
serving at the request of the Corporation as a director, officer, trustee,
employee or agent of another corporation, or of a partnership, joint venture,
trust or other enterprise, including service with respect to an employee benefit
plan; provided, that except with respect to proceedings to enforce rights to
indemnification or as is otherwise required by law, the Corporation shall not be
required to indemnify, and advance expenses to, any director, officer or other
person in connection with a proceeding (or part thereof) initiated by such
director, officer or other person, unless such proceeding (or part thereof) was
authorized by the Board of Directors.

     B.  The indemnification and advancement of expenses provided by, or granted
pursuant to, this Article NINTH shall not be deemed exclusive of any other
rights to which a person seeking indemnification or advancement of expenses may
be entitled under any By-Law, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in such person's official capacity and
as to action in another capacity while holding such office.

     C.  The Corporation shall have the power to purchase and maintain insurance
on behalf of any person who is or was a director, officer, employee or agent of
the Corporation, or is or was serving at the request of the Corporation as a
director, officer, trustee, employee or agent of another corporation, or of a
partnership, joint venture, trust or other enterprise, against any liability
asserted against such person and incurred by such person in any such capacity,
or arising out of such person's status as such, whether or not the Corporation
would have the power to indemnify such person against such liability under this
Article NINTH.

     D.  The indemnification and advancement of expenses provided by, or granted
pursuant to, this Article NINTH shall, unless otherwise specified when
authorized or ratified, continue as to a person who has ceased to be a director,
officer, employee or agent and shall inure to the benefit of the heirs,
executors and administrators of such person.  No repeal or amendment of this
Article NINTH shall adversely affect any rights of any person pursuant to this
Article NINTH which existed at the time of such repeal or amendment with respect
to acts or omissions occurring prior to such repeal or amendment.

     TENTH:  No director shall be personally liable to the Corporation or its
stockholders for any monetary damages for breaches of fiduciary duty as a
director, notwithstanding any provision of law imposing such liability; provided
that this provision shall not eliminate or limit the liability of a director, to
the extent that such liability is imposed by applicable law, (i) for any breach
of the director's duty of loyalty to the Corporation or its stockholders; (ii)
for acts or omissions not in good faith or which involve intentional misconduct
or a knowing violation of law; (iii) under Section 174 or successor provisions
of the Delaware General Corporation Law; or (iv) for any transaction from which
the director derived an improper personal benefit.  This provision shall not
eliminate or limit the liability of a director for any act or omission if such
elimination or limitation is prohibited by the Delaware General Corporation Law.
No amendment to or repeal of this provision shall apply to or have any effect on
the liability or alleged liability of any director for or with respect to any
acts or omissions of such director

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occurring prior to such amendment or repeal. If the Delaware General Corporation
Law is amended to authorize corporate action further eliminating or limiting the
personal liability of directors, then the liability of a director of the
Corporation shall be eliminated or limited to the fullest extent permitted by
the Delaware General Corporation Law, as so amended. All references in this
Article TENTH to a director shall also be deemed to refer to any such director
acting in his or her capacity as a Continuing Director (as defined in Article
THIRTEENTH).

     ELEVENTH:  The Corporation reserves the right to amend or repeal any
provision contained in this Restated Certificate of Incorporation in the manner
prescribed by the Delaware General Corporation Law and all rights conferred upon
stockholders are granted subject to this reservation; provided that in addition
to the vote of the holders of any class or series of stock of the Corporation
required by law or by this Restated Certificate of Incorporation, the
affirmative vote of the holders of shares of voting stock of the Corporation
representing at least eighty percent (80%) of the voting power of all of the
then outstanding shares of the capital stock of the Corporation entitled to vote
generally in the election of directors, voting together as a single class, shall
be required to amend, alter or repeal, or adopt any provision inconsistent with,
Articles SIXTH, SEVENTH, EIGHTH, NINTH, TENTH, and this Article ELEVENTH of this
Restated Certificate of Incorporation.

     TWELFTH:  Whenever a compromise or arrangement is proposed between this
Corporation and its creditors or any class of them and/or between this
Corporation and its stockholders or any class of them, any court of equitable
jurisdiction within the State of Delaware may, on the application in a summary
way of this Corporation or of any creditor or stockholder thereof or on the
application of any receiver or receivers appointed for this Corporation under
the provisions of Section 291 of the Delaware General Corporation Law or on the
application of trustees in dissolution or of any receiver or receivers appointed
for this Corporation under the provisions of Section 279 of the Delaware General
Corporation Law, order a meeting of the creditors or class of creditors, and/or
of the stockholders or class of stockholders of this Corporation, as the case
may be, to be summoned in such manner as the said court directs.  If a majority
in number representing three-fourths (3/4) in value of the creditors or class of
creditors, and/or of the stockholders or class of stockholders of this
Corporation, as the case may be, agree to any compromise or arrangement and to
any reorganization of this Corporation as consequence of such compromise or
arrangement, the said compromise or arrangement and the said reorganization
shall, if sanctioned by the court to which the said application has been made,
be binding on all the creditors or class of creditors, and/or on all the
stockholders or class of stockholders, of this Corporation, as the case may be,
and also on this Corporation.

     THIRTEENTH:  The Board of Directors is expressly authorized to cause the
Corporation to issue rights pursuant to Section 157 of the Delaware General
Corporation Law and, in that connection, to enter into any agreements necessary
or convenient for such issuance, and to enter into other agreements necessary
and convenient to the conduct of the business of the Corporation.  Any such
agreement may include provisions limiting, in certain circumstances, the ability
of the Board of Directors of the Corporation to redeem the securities issued
pursuant thereto or to take other action thereunder or in connection therewith
unless there is a specified number or percentage of Continuing Directors then in
office.  Pursuant to Section 141(a) of the

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Delaware General Corporation Law, the Continuing Directors shall have the power
and authority to make all decisions and determinations, and exercise or perform
such other acts, that any such agreement provides that such Continuing Directors
shall make, exercise or perform. For purposes of this Article THIRTEENTH and any
such agreement, the term, "Continuing Directors," shall mean (1) those directors
who were members of the Board of Directors of the Corporation at the time the
Corporation entered into such agreement and any director who subsequently
becomes a member of the Board of Directors, if such director's nomination for
election to the Board of Directors is recommended or approved by the majority
vote of the Continuing Directors then in office or (2) such members of the Board
of Directors designated in, or in the manner provided in, such agreement as
Continuing Directors.

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     IN WITNESS WHEREOF, the Corporation has caused this Restated Certificate of
Incorporation to be signed by its President and Chief Executive Officer this
4th day of August, 2000.

                                    SPEECHWORKS INTERNATIONAL, INC.

                                    By: /s/ Stuart R. Patterson
                                        -------------------------------------
                                        Stuart R. Patterson
                                        President and Chief Executive Officer

                                       8<PAGE>

                                                                   EXHIBIT 10.30

                              SECURITY AGREEMENT
                                   (Viisage)

1.   Grant.

     Viisage Technology, Inc., a Delaware corporation ("Debtor") with offices in
Littleton, Massachusetts, grants to Commerce Bank & Trust Company, a
Massachusetts trust company with offices in Worcester, Massachusetts ("Secured
Party"), a security interest in the property defined below as "Collateral."

2.   Purpose.

     A.  Debtor grants the foregoing security interest to secure the full and
timely payment, performance, and observance of all its obligations to Secured
Party now existing and hereafter arising, direct or indirect, absolute or
contingent, due or to become due, and whether   joint, several, or joint and
several (collectively "Obligations"), including but not limited to the
indebtedness evidenced by Debtor's promissory note of even date in the face
amount of $4,000,000 ("Note").

     B.  This agreement is made in connection with a Loan Agreement of even date
between Debtor and Secured Party ("Loan Agreement").   This agreement is
supplemented by the Loan Agreement and by the following documents, all of even
date ("Supplementary Documents"):  Lockbox Agreement; Collateral Assignment of
Unencumbered Contracts; and Collateral Assignment of Key-Man Life Insurance
Policy.

     C.  Some of Debtor's assets are subject to security interests held by Lau
Acquisition Corp. ("Lau") or by Fleet Business Credit Corp. ("Fleet"). Lau,
Fleet, and Secured Party are parties to a certain Intercreditor Agreement dated
as of June 15, 2000 ("Intercreditor Agreement").  The Intercreditor Agreement
provides that Fleet will hold a senior security interest in certain assets of
Debtor and that Lau will hold a senior  security interest in certain other
assets of Debtor, while Secured Party will hold (1) a senior security interest
in all assets of Debtor as to which neither Fleet nor Lau is senior and (2) a
junior security interest in all other assets of Debtor.  This agreement shall be
construed accordingly.

3.   Collateral.

  "Collateral" means all of the Debtor's rights and interests in fixtures,
inventory, equipment, chattel paper, instruments, documents, accounts,
investment property, and general intangibles, including without implied
limitation the interests in property described on Exhibit A, attached.  Each
category of collateral listed in the preceding sentence shall have the meaning
attributed to it in the Massachusetts Uniform Commercial Code, the definitional
sections of which are incorporated herein by reference as if fully set forth in
this agreement.  "Collateral" also means and includes all other rights of Debtor
in tangible and intangible property of any other nature whatsoever.  The
security interest of the Secured Party in the Collateral shall extend to all
collateral of the kind described above which Debtor acquires at any time before
the full payment, performance, and observance of the Obligations. Without
limiting the generality of the foregoing
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provisions, the term "Collateral" shall encompass all the Debtor's rights now
existing or hereafter arising under (i) a certain Purchase Agreement dated June
15, 1999, between the Debtor and Lau and (ii) a certain Purchase Agreement dated
September 12, 1996, between the Debtor and the predecessor in interest of Fleet,
as amended ("Purchase Agreements"), specifically including all "Lease Residual
Rights" as defined in the Purchase Agreements. The term "Purchase Agreements"
includes all amendments, restatements, replacements, and renewals.

4.   Covenants, Warranties, and Agreements.

     A.  Debtor warrants and covenants that (1) it is the owner of the
Collateral free and clear of all claims, liens, and security interests, other
than those listed on Exhibit B, attached ("Permitted Encumbrances"), (2) it has
the lawful power and authority to make and perform this agreement, (3) the only
locations of the Collateral are or will be (i) at Debtor's present facility,
which is listed on Exhibit C, attached, (ii) at the places specified in the
current contracts between Debtor and Debtor's current customers, all of which
are listed on Exhibit C attached, and (iii) at places to be specified in future
contracts between Debtor and its customers and (4) Debtor has and will have no
Collateral except at the foregoing locations.

     B.  Debtor covenants and agrees with Secured Party as follows:

         (1)   it will timely pay Secured Party all amounts required by the
Obligations, whether on demand, at maturity, by acceleration, or otherwise, and
will otherwise perform and observe strictly in accordance with their terms all
of the Obligations;

         (2)   it will defend the Collateral against the claims and demands of
all persons and will indemnify and hold harmless Secured Party against all such
claims and demands;

         (3)   it will not permit any of the Collateral, or any business records
relating to the Collateral, to be removed from a permitted location without the
prior written consent of Secured Party, except in the ordinary course of
business;

         (4)   it will immediately advise Secured Party in writing of any change
in its place of business, or the opening of any new place of business;

         (5)   it will not permit (a) any security interests (other than Secured
Party's security interest and the Permitted Encumbrances) to attach to any of
the Collateral; (b) permit any of the Collateral to be levied upon under any
legal process or to become the subject of any lien unless such lien is dissolved
within thirty (30) days after the lien arises; (c) transfer in any manner
whatsoever any interest in the Collateral without the prior written consent of
the Secured Party; (d) permit to be done or to occur anything that may impair
the value of any of the Collateral or the security intended to be afforded by
this agreement; or (e) permit any tangible Collateral to become an accession to
other goods, unless such other goods are owned by Debtor; and

         (6)   it will perform and observe, as and when due, all the terms and
conditions of the obligations secured by the Permitted Encumbrances.

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     C.  With respect to Collateral consisting of inventory and equipment,
Debtor further covenants and agrees as follows:

         (1)   it will insure the Collateral against all hazards requested by
Secured Party in form and amount reasonably satisfactory to Secured Party and
will use the proceeds of such insurance to repair or replace the Collateral free
of all liens and security interests other than Secured Party's and (to the
extent applicable) the Permitted Encumbrances. If Debtor fails to obtain such
insurance, Secured Party shall have the right (but not the obligation) to obtain
it at Debtor's expense, whereupon Debtor shall reimburse Secured Party on
demand;

         (2)   it will keep the Collateral in good condition and repair,
reasonable wear and tear excepted, and will permit Secured Party and its agents
to inspect the Collateral at any reasonable times; and

         (3)   it will pay Secured Party on demand all reasonable amounts,
including reasonable attorney's fees, paid or incurred by Secured Party (a)
after notice to Debtor, for any costs which Secured Party incurs to discharge
Debtor's duties with regard to taxes, levies, repairs, or maintenance of the
Collateral, and (b) after any default, in taking possession of, disposing of, or
preserving the Collateral.

     D.  With respect to Collateral consisting of chattel paper, instruments,
documents, accounts, investment property, and general intangibles, Debtor
covenants and agrees as follows:

         (1)   it will immediately upon Secured Party's request give notice of
Secured Party's security interest to the persons obligated to Debtor on any such
Collateral;

         (2)   it will immediately upon Secured Party's demand deliver to
Secured Party any such Collateral requested by it, in connection with which
Debtor on demand shall make or furnish all endorsements, notations, records,
information, and other forms of assistance requested by Secured Party to enable
it to perfect its security interest in such Collateral or to hold, transfer, or
collect the proceeds of the same; and

         (3)   it will take any action necessary to preserve its rights against
account debtors and any other obligors on such Collateral.

     E.  Debtor covenants and agrees with Secured Party that except as provided
in the Loan Agreement, Debtor will not take any new loan, refinance any existing
loan, or otherwise create or incur any new or additional obligations secured by
the Permitted Encumbrances.

5.   Power of Attorney.

     Debtor agrees to take all steps reasonably requested by Secured Party to
protect and perfect its security interest in the Collateral.  For that purpose
Debtor irrevocably appoints Secured Party as Debtor's attorney-in-fact to do all
acts and things which Secured Party decides

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advisable to perfect and continue perfected such security interest and to
protect the Collateral, but Secured Party agrees not to exercise the foregoing
power until after an Event of Default.

6.   Default.  Debtor shall be in default upon the occurrence of any of the
following events, each of which shall constitute an Event of Default (sometimes
referred to merely as "default") under this agreement:

               (1) Material breach of any warranty, covenant, or other provision
of this agreement;

               (2) Material misrepresentation in this agreement or in any
document furnished to Secured Party by or on behalf of Debtor;

               (3) The imposition upon any Collateral of any lien or encumbrance
(other than the Permitted Encumbrances and a security interest in favor of
Secured Party) except (i) liens for taxes for which Borrower (a) has established
adequate reserves and (b) is contesting in good faith, (ii) liens for taxes not
yet due and payable and (iii) liens dissolved within thirty (30) days after they
arise;

               (4) The making of any levy, seizure, sequestration, or attachment
of or upon any property of Debtor, unless released within thirty (30) days;

               (5) The issuance of any injunction or other order which, in
Secured Party's judgment, materially impairs Debtor's business or its financial
condition, unless such injunction is dissolved within seven (7) days after its
issuance;

               (6) The filing by Debtor in any forum of any petition, answer, or
similar document seeking (a) relief under any bankruptcy, insolvency, or similar
law, or (b) the appointment of a receiver, trustee, or other fiduciary to take
charge of any of Debtor's property;

               (7) The filing against Debtor in any forum of any petition or
similar document under any bankruptcy, insolvency, or similar law, if such is
not dismissed within sixty (60) days;

               (8) The filing against Debtor in any forum of any petition or
similar document seeking the appointment of a receiver, trustee, or other
fiduciary to take charge of any of Debtor's property, if such is not dismissed
within sixty (60) days;

               (9) Debtor's written statement or acknowledgment of its inability
to pay its debts as they become due;

               (10) Any assignment by Debtor for the benefit of any of its
creditors, or any composition by Debtor with any of its creditors; or

               (11) The dissolution of Debtor as a corporation;

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               (12) The commencement of any proceeding seeking the dissolution
of Debtor, unless such proceeding is dismissed within sixty (60) days; or

               (13) The occurrence of any Event of Default under the Loan
Agreement, the Note, or any other document which secures, evidences, or states
any of the Obligations, unless such Event of Default is cured within such time,
if any, as is expressly allowed for such a cure.

7.   Power to Sell or Collect Collateral.

     A.  Upon and after the occurrence of any Event of Default Secured Party
shall have, in addition to all other rights and remedies, the rights and
remedies of a secured party under the Uniform Commercial Code of the state in
which the Collateral is located, including without implied limitation the right
to take possession of the Collateral.  For that purpose Secured Party may enter
upon any premises on which the Collateral may be situated and remove the same
therefrom.  Unless the Collateral is perishable, or threatens to decline
speedily in value, or is of a type customarily sold on a recognized market,
Secured Party shall give Debtor at least ten (10) days' prior written notice of
the time and place of any public sale of Collateral or of the time after which
any private sale or any other intended disposition is to be made.

     B.  At any time in its discretion after any Event of Default Secured Party
may transfer any securities or other property constituting Collateral into its
own name or that of its nominee, may receive the income thereon, may hold the
same as security, or may apply it against principal, interest, or other sums due
on the Obligations.  Insofar as the Collateral consists of accounts receivable,
insurance policies, instruments, documents, chattel paper, or general
intangibles, Secured Party may demand, collect, receipt for, settle, compromise,
adjust, sue for, foreclose, or realize upon the same as it may determine,
whether or not the same are then due.  To realize Secured Party's rights
therein, Secured Party after any Event of Default may receive, open, and dispose
of mail addressed to Debtor and may endorse notes, checks, drafts, money orders,
documents of title, or other evidence of payment, shipment, or storage or any
other form of Collateral, on behalf of and in the name of Debtor.

8.   Deposits.

     Regardless of the adequacy of Collateral, any deposits or other sums at any
time credited by or due from Secured Party to Debtor may at any time after any
Event of Default be applied to or set off against liabilities on which Debtor is
liable as a primary obligor and may at or after the maturity thereof be applied
to or set off against liabilities on which Debtor is liable as a secondary
obligor.

9.   Waivers and Assents.

     To the full extent permitted by law, Debtor waives demand, notice, and
protest of all instruments; notice of acceptance of this agreement; notice of
loans made, credit extended, collateral received or delivered; and notice of all
other actions taken by Secured Party in reliance on this agreement, and all
other demands and notices of any description.  With respect both to the
Obligations and the Collateral, Debtor assents to any extension, postponement,
or other

                                       5
<PAGE>

indulgence; to any substitution, exchange, or release of collateral; to the
addition or release of any person primarily or secondarily liable; to the
acceptance of partial payments; and to any settlement, compromise, or
adjustment, all in such manner and at such time or times as Secured Party may
deem advisable. To the full extent permitted by law, Secured Party shall have no
duty as to the collection or protection of the Collateral or any income
therefrom, as to the preservation of rights against prior parties; and as to the
preservation of any rights pertaining thereto. Secured Party may exercise its
rights with respect to the Collateral without resort or regard to other sources
of reimbursement for the Obligations. Secured Party shall not be deemed to have
waived any of its rights unless such waiver is in writing and signed by Secured
Party. No delay or omission on the part of Secured Party in exercising any right
shall operate as a waiver of such right or any other right. No waiver shall
arise from any course of conduct by Secured Party. A waiver on any one occasion
shall not be construed as a bar to or waiver of any right on any future
occasion. All rights and remedies of Secured Party, whether available by law or
stated in this agreement or in any other instrument or document, shall be
cumulative, and all such rights and remedies may be exercised singly,
concurrently, or sequentially.

10.  Expenses; Proceeds of Collateral.

     Debtor shall pay on demand to Secured Party any and all expenses, including
reasonable counsel fees, incurred or paid by Secured Party in protecting or
enforcing its rights under this agreement (i) after notice to Debtor, if no
Event of Default is then outstanding or (ii) after any Event of Default .  After
deducting all such expenses, the balance of any proceeds of collection or sale
of the Collateral shall be applied to the payment of principal, interest, and
other sums due on the Obligations in such order as Secured Party may determine,
proper allowance for interest on Obligations not then due being made, and any
surplus shall be returned to Debtor.

11.  General.

     A.  Any communication to Debtor shall be effective only upon its actual
delivery to Debtor's principal office, to the attention of Debtor's Chief
Financial Officer.

     B.  Any communication to Secured Party shall be effective only upon its
actual delivery to the attention of Secured Party's Senior Loan Officer, 390
Main Street, Worcester, Massachusetts 01608.

     C.  Because this agreement has been negotiated and signed in Massachusetts
in reliance upon the applicability of Massachusetts substantive law, the
construction, validity, and performance of this agreement shall be governed by
the laws of Massachusetts, disregarding any law or doctrine which might dictate
the application of the law of another state, except as provided in Section 7A.
This agreement shall benefit Secured Party and its successors and assigns and
shall bind Debtor and its successors and assigns.  This agreement may not be
amended, supplemented, or otherwise changed except by a written instrument
signed by both parties.  This agreement (together with the Supplementary
Documents) contains the entire understanding of the parties, superseding all
negotiations,  representations, and prior understandings.  All rights and
remedies accorded Secured Party in this agreement are

                                       6
<PAGE>

cumulative; none shall be considered to limit or restrict any right or remedy
otherwise available to Secured Party.

     Signed as a sealed instrument as of June 15, 2000.

Witness:                             VIISAGE TECHNOLOGY, INC.

                                     By: /s/ Sean F. Mack
---------------------------------       ----------------------------------
                                         Sean F. Mack, Treasurer
                                         and Controller

                                     COMMERCE BANK & TRUST
                                     COMPANY

                                     By: /s/ Roger F. Allard
---------------------------------       ----------------------------------
                                         Roger F. Allard,
                                         Senior Vice President

                                       7
<PAGE>

                        EXHIBIT A to Security Agreement
                       Debtor:  Viisage Technology, Inc.
                 Secured Party:  Commerce Bank & Trust Company

                                   Collateral

All of the following property and rights of the Debtor (as defined under the
Massachusetts Uniform Commercial Code unless specifically defined otherwise in
the Security Agreement), now existing or hereafter arising or acquired, whether
arising by future advances or otherwise:  all Inventory, meaning all goods,
                                              ---------
merchandise, raw materials, supplies, goods in process, finished goods, and
other tangible personal property held by the Debtor for processing, sale or
other business purpose or to be used or consumed in the Debtor's business; all
Accounts, meaning any right to payment for goods sold or leased or for services
--------
rendered which is not evidenced by an instrument or chattel paper, whether or
not it has been earned by performance; all Documents, meaning all documents of
                                           ---------
title including bills of lading, dock warrants, dock receipts, warehouse
receipts, and orders for the delivery of goods, and also any other document
which is in the regular course of business or financing is treated as adequately
evidencing that the person in possession of its is entitled to receive, hold,
and dispose of the document and goods it covers; all Instruments, meaning all
                                                     -----------
negotiable instruments, certificated securities, and any other writing which
evidences a right to payment of money and is not itself a security agreement or
lease and is of a type which are in the ordinary course of business transferred
by delivery with any necessary endorsement or assignment; all Chattel Paper,
                                                              -------------
meaning a writing or writings which evidence both a monetary obligation and a
security interest in or a lease of specific goods; all  Investment Property,
                                                        -------------------
meaning all securities, securities accounts, securities entitlements, commodity
contracts, commodity accounts, and all other investment property; all General
                                                                      -------
Intangibles, including things in action, meaning any personal property other
-----------
than goods, accounts, chattel paper, documents, and instruments, but including
without limitation all good will and contract rights; money; and all Goods,
                                                                     -----
meaning all things which are movable at the time the security interest attaches
or which are fixtures, including without limitation all equipment and machinery.

                                       8
<PAGE>

                       EXHIBIT "B" to Security Agreement
                             Permitted Encumbrances

Secured Party                     Collateral

Lau                               See Intercreditor Agreement.

Fleet                             See Intercreditor Agreement.

                                       9
<PAGE>

                       EXHIBIT "C" to Security Agreement
                            Locations of Collateral

(i)    Debtor's present facility:

       30 Porter Road, Littleton, Massachusetts

(ii)   Locations dictated by current customer contracts:

                                       10

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