Document:

REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "Agreement") is made and
entered into as of this 11th day of January, 2005 by and among IQ Biometrix,
Inc., a Delaware corporation (the "Company"), and the "Investors" named in that
certain Purchase Agreement by and among the Company and the Investors (the
"Purchase Agreement").

         The parties hereby agree as follows:

         1. Certain Definitions.

         As used in this Agreement, the following terms shall have the following
meanings:

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

         "Business Day" means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of business.

         "Common Stock" shall mean the Company's common stock, par value $0.01
per share, and any securities into which such shares may hereinafter be
reclassified.

         "Conversion Shares" means the shares of Common Stock issuable upon the
conversion of the Debentures.

         "Debentures" means the 5% Convertible Debentures issued to the
Investors pursuant to the Purchase Agreement, the form of which is attached to
the Purchase Agreement as Exhibit A.

         "Interest Shares" means the shares of Common Stock issuable in lieu of
cash interest on the Debentures.

         "Investors" shall mean the Investors identified in the Purchase
Agreement and any Affiliate or permitted transferee of any Investor who is a
subsequent holder of any Warrants or Registrable Securities.

         "Other Investors" shall mean John Micek, Jr., Forte Capital Partners,
LLC and Neil Morris.

         "Prospectus" shall mean the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus.

         "Register," "registered" and "registration" refer to a registration
made by preparing and filing a Registration Statement or similar document in
compliance with the 1933 Act (as defined below), and the declaration or ordering
of effectiveness of such Registration Statement or document.

         "Registrable Securities" shall mean (i) the Interest Shares, (ii) the
Conversion Shares, (iii) the Warrant Shares and (iv) any other securities issued
or issuable with respect to or in exchange for Registrable Securities; provided,
that, a security shall cease to be a Registrable Security upon (A) sale pursuant
to a Registration Statement or Rule 144 under the 1933 Act, or (B) such security
becoming eligible for sale by the Investors pursuant to Rule 144(k).
<PAGE>

         "Registration Statement" shall mean any registration statement of the
Company filed under the 1933 Act that covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement, amendments
and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

         "Required Investors" means the Investors holding a majority of the
Registrable Securities.

         "SEC" means the U.S. Securities and Exchange Commission.

         "1933 Act" means the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.

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

         "Warrants" means, the warrants to purchase shares of Common Stock
issued to the Investors pursuant to the Purchase Agreement, the form of which is
attached to the Purchase Agreement as Exhibit B.

         "Warrant Shares" means the shares of Common Stock issuable upon the
exercise of the Warrants.

         2. Registration.

                           (a) Registration Statements.

                           (i) Promptly following the closing of the purchase
and sale of the securities contemplated by the Purchase Agreement (the "Closing
Date") but no later than thirty (30) days after the Closing Date (the "Filing
Deadline"), the Company shall prepare and file with the SEC one Registration
Statement on Form SB-2 (or, if Form SB-2 is not then available to the Company,
on such form of registration statement as is then available to effect a
registration for resale of the Registrable Securities, subject to the Required
Investors' consent), covering the resale of the Registrable Securities in an
amount at least equal to the maximum number of Registrable Securities then
issuable (assuming that the Debentures remain outstanding until maturity and
that all interest accrued thereon is paid in the form of Interest Shares). Such
Registration Statement shall include the plan of distribution attached hereto as
Exhibit A. Such Registration Statement also shall cover, to the extent allowable
under the 1933 Act and the rules promulgated thereunder (including Rule 416),
such indeterminate number of additional shares of Common Stock resulting from

                                      -2-
<PAGE>

stock splits, stock dividends or similar transactions with respect to the
Registrable Securities. The Company shall use its reasonable best efforts to
obtain from each person who now has piggyback registration rights a waiver of
those rights with respect to the Registration Statement, excluding the Other
Investors. The Registration Statement (and each amendment or supplement thereto,
and each request for acceleration of effectiveness thereof) shall be provided in
accordance with Section 3(c) to the Investors and their counsel prior to its
filing or other submission. If a Registration Statement covering the Registrable
Securities is not filed with the SEC on or prior to the Filing Deadline, the
Company will make pro rata payments to each Investor, as liquidated damages and
not as a penalty, in an amount equal to 1.5% of the aggregate amount invested by
such Investor for each 30-day period or pro rata for any portion thereof
following the date by which such Registration Statement should have been filed
for which no Registration Statement is filed with respect to the Registrable
Securities. Such payments shall be in partial compensation to the Investors, and
shall not constitute the Investors' exclusive remedy for such events. Such
payments shall be made to each Investor in cash.

                           (ii) Additional Registrable Securities. Upon the
written demand of any Investor and upon any change in the Conversion Price (as
defined in the Debentures) or the Warrant Price (as defined in the Warrant) such
that additional shares of Common Stock become issuable upon the conversion of
the Debentures or the exercise of the Warrants, the Company shall prepare and
file with the SEC one or more Registration Statements on Form SB-2 or amend the
Registration Statement filed pursuant to clause (i) above, if such Registration
Statement has not previously been declared effective (or, if Form SB-2 is not
then available to the Company, on such form of registration statement as is then
available to effect a registration for resale of such additional shares of
Common Stock (the "Additional Shares"), subject to the Required Investors'
consent) covering the resale of the Additional Shares, but only to the extent
the Additional Shares are not at the time covered by an effective Registration
Statement. Such Registration Statement also shall cover, to the extent allowable
under the 1933 Act and the rules promulgated thereunder (including Rule 416),
such indeterminate number of additional shares of Common Stock resulting from
stock splits, stock dividends or similar transactions with respect to the
Additional Shares. The Company shall use its reasonable best efforts to obtain
from each person who now has piggyback registration rights a waiver of those
rights with respect to such Registration Statement, excluding the Other
Investors. The Registration Statement (and each amendment or supplement thereto,
and each request for acceleration of effectiveness thereof) shall be provided in
accordance with Section 3(c) to the Investors and their counsel prior to its
filing or other submission. If a Registration Statement covering the Additional
Shares is required to be filed under this Section 2(a)(ii) and is not filed with
the SEC within five Business Days of the request of any Investor or upon the
occurrence of any of the events specified in this Section 2(a)(ii), the Company
will make pro rata payments to each Investor, as liquidated damages and not as a
penalty, in an amount equal to 1.5% of the aggregate amount invested by such
Investor for each 30-day period or pro rata for any portion thereof following
the date by which such Registration Statement should have been filed for which
no Registration Statement is filed with respect to the Additional Shares. Such
payments shall be in partial compensation to the Investors, and shall not
constitute the Investors' exclusive remedy for such events. Such payments shall
be made to each Investor in cash.

                           (iii) Promptly following the date (the "Qualification
Date") upon which the Company becomes eligible to use a registration statement
on Form S-3 to register the Registrable Securities or Additional Shares, as
applicable, for resale, but in no event more than ten (10) days after the
Qualification Date (the "Qualification Deadline"), the Company shall file a
registration statement on Form S-3 covering the Registrable Securities or
Additional Shares, as applicable (or a post-effective amendment on Form S-3 to
the registration statement on Form SB-2) (a "Shelf Registration Statement") and
shall use commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective as promptly as practicable thereafter. If a

                                      -3-
<PAGE>

Shelf Registration Statement covering the Registrable Securities is not filed
with the SEC on or prior to the Qualification Deadline, the Company will make
pro rata payments to each Investor, as liquidated damages and not as a penalty,
in an amount equal to 1.5% of the aggregate amount invested by such Investor for
each 30-day period or pro rata for any portion thereof following the date by
which such Shelf Registration Statement should have been filed for which no such
Shelf Registration Statement is filed with respect to the Registrable Securities
or Additional Shares, as applicable. Such payments shall be in partial
compensation to the Investors, and shall not constitute the Investors' exclusive
remedy for such events. Such payments shall be made to each Investor in cash.

                           (b) Expenses. The Company will pay all expenses
associated with each registration, including filing and printing fees, the
Company's counsel and accounting fees and expenses, costs associated with
clearing the Registrable Securities for sale under applicable state securities
laws, listing fees, fees and expenses of one counsel to the Investors and the
Investors' reasonable expenses in connection with the registration, but
excluding discounts, commissions, fees of underwriters, selling brokers, dealer
managers or similar securities industry professionals with respect to the
Registrable Securities being sold.

                           (c)      Effectiveness.

                           (i) The Company shall use commercially reasonable
efforts to have the Registration Statement declared effective as soon as
practicable. The Company shall notify the Investors by facsimile or e-mail as
promptly as practicable, and in any event, within twenty-four (24) hours, after
any Registration Statement is declared effective and shall simultaneously
provide the Investors with copies of any related Prospectus to be used in
connection with the sale or other disposition of the securities covered thereby.
If (A)(x) a Registration Statement covering the Registrable Securities is not
declared effective by the SEC within ninety (90) days after the Closing Date, or
(y) a Registration Statement covering Additional Shares is not declared
effective by the SEC within ninety (90) days following the time such
Registration Statement was required to be filed pursuant to Section 2(a)(ii) or
(z) a Shelf Registration Statement is not declared effective by the SEC within
90 days after the Qualification Deadline or (B) after a Registration Statement
has been declared effective by the SEC, sales cannot be made pursuant to such
Registration Statement for any reason (including without limitation by reason of
a stop order, or the Company's failure to update the Registration Statement),
but excluding the inability of any Investor to sell the Registrable Securities
covered thereby due to market conditions and except as excused pursuant to
subparagraph (ii) below, then the Company will make pro rata payments to each
Investor, as liquidated damages and not as a penalty, in an amount equal to 1.5%
of the aggregate amount invested by such Investor for each 30- day period or pro
rata for any portion thereof following the date by which such Registration
Statement should have been effective (the "Blackout Period"). Such payments
shall be in partial compensation to the Investors, and shall not constitute the
Investors' exclusive remedy for such events. The amounts payable as liquidated
damages pursuant to this paragraph shall be paid monthly within three (3)
Business Days of the last day of each month following the commencement of the
Blackout Period until the termination of the Blackout Period. Such payments
shall be made to each Investor in cash.

                           (ii) For not more than twenty (20) consecutive days
or for a total of not more than forty-five (45) days in any twelve (12) month
period, the Company may delay the disclosure of material non-public information
concerning the Company, by suspending the use of any Prospectus included in any
registration contemplated by this Section containing such information, the

                                      -4-
<PAGE>

disclosure of which at the time is not, in the good faith opinion of the
Company, in the best interests of the Company (an "Allowed Delay"); provided,
that the Company shall promptly (a) notify the Investors in writing of the
existence of (but in no event, without the prior written consent of an Investor,
shall the Company disclose to such Investor any of the facts or circumstances
regarding) material non-public information giving rise to an Allowed Delay, (b)
advise the Investors in writing to cease all sales under the Registration
Statement until the end of the Allowed Delay and (c) use commercially reasonable
efforts to terminate an Allowed Delay as promptly as practicable.

         3. Company Obligations. The Company will use commercially reasonable
efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously
as possible:

                           (a) use commercially reasonable efforts to cause such
Registration Statement to become effective and to remain continuously effective
for a period that will terminate upon the earlier of (i) the date on which all
Registrable Securities covered by such Registration Statement as amended from
time to time, have been sold, and (ii) the date on which all Registrable
Securities covered by such Registration Statement may be sold pursuant to Rule
144(k) (the "Effectiveness Period") and advise the Investors in writing when the
Effectiveness Period has expired;

                           (b) prepare and file with the SEC such amendments and
post-effective amendments to the Registration Statement and the Prospectus as
may be necessary to keep the Registration Statement effective for the period
specified in Section 3(a) and to comply with the provisions of the 1933 Act and
the 1934 Act with respect to the distribution of all of the Registrable
Securities covered thereby;

                           (c) provide copies to and permit Lowenstein Sandler
PC to review each Registration Statement and all amendments and supplements
thereto in substantially the form intended to be filed no fewer than seven (7)
days prior to their filing with the SEC and not file any document to which
Lowenstein Sandler PC reasonably objects;

                           (d) furnish to the Investors and their legal counsel
(i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after
the filing date, receipt date or sending date, as the case may be) one (1) copy
of any Registration Statement and any amendment thereto, each preliminary
prospectus and Prospectus and each amendment or supplement thereto, and each
letter written by or on behalf of the Company to the SEC or the staff of the
SEC, and each item of correspondence from the SEC or the staff of the SEC, in
each case relating to such Registration Statement (other than any portion of any
thereof which contains information for which the Company has sought confidential
treatment), and (ii) such number of copies of a Prospectus, including a
preliminary prospectus, and all amendments and supplements thereto and such
other documents as each Investor may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such Investor that are
covered by the related Registration Statement;

                                      -5-
<PAGE>

                           (e) use commercially reasonable efforts to (i)
prevent the issuance of any stop order or other suspension of effectiveness and,
(ii) if such order is issued, obtain the withdrawal of any such order at the
earliest possible moment;

                           (f) prior to any public offering of Registrable
Securities, use commercially reasonable efforts to register or qualify or
cooperate with the Investors and their counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or blue sky laws of such jurisdictions requested by the
Investors and do any and all other commercially reasonable acts or things
necessary or advisable to enable the distribution in such jurisdictions of the
Registrable Securities covered by the Registration Statement; provided, however,
that the Company shall not be required in connection therewith or as a condition
thereto to (i) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(f), (ii) subject itself
to general taxation in any jurisdiction where it would not otherwise be so
subject but for this Section 3(f), or (iii) file a general consent to service of
process in any such jurisdiction;

                           (g) use commercially reasonable efforts to cause all
Registrable Securities covered by a Registration Statement to be listed on each
securities exchange, interdealer quotation system or other market on which
similar securities issued by the Company are then listed;

                           (h) immediately notify the Investors, at any time
when a Prospectus relating to Registrable Securities is required to be delivered
under the 1933 Act, upon discovery that, or upon the happening of any event as a
result of which, the Prospectus included in a Registration Statement, as then in
effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, and at the
request of any such holder, promptly prepare and furnish to such holder a
reasonable number of copies of a supplement to or an amendment of such
Prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such Registrable Securities, such Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing; and

                           (i) otherwise use commercially reasonable efforts to
comply with all applicable rules and regulations of the SEC under the 1933 Act
and the 1934 Act, take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder; and make
available to its security holders, as soon as reasonably practicable, but not
later than the Availability Date (as defined below), an earnings statement
covering a period of at least twelve (12) months, beginning after the effective
date of each Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the 1933 Act, including Rule 158 promulgated
thereunder (for the purpose of this subsection 3(i), "Availability Date" means
the 45th day following the end of the fourth fiscal quarter that includes the
effective date of such Registration Statement, except that, if such fourth
fiscal quarter is the last quarter of the Company's fiscal year, "Availability
Date" means the 90th day after the end of such fourth fiscal quarter).

                                      -6-
<PAGE>

                           (j) With a view to making available to the Investors
the benefits of Rule 144 (or its successor rule) and any other rule or
regulation of the SEC that may at any time permit the Investors to sell shares
of Common Stock to the public without registration, the Company covenants and
agrees to: (i) make and keep public information available, as those terms are
understood and defined in Rule 144, until the earlier of (A) six months after
such date as all of the Registrable Securities may be resold pursuant to Rule
144(k) or any other rule of similar effect or (B) such date as all of the
Registrable Securities shall have been resold; (ii) file with the SEC in a
timely manner all reports and other documents required of the Company under the
1934 Act; and (iii) furnish to each Investor upon request, as long as such
Investor owns any Registrable Securities, (A) a written statement by the Company
that it has complied with the reporting requirements of the 1934 Act, (B) a copy
of the Company's most recent Annual Report on Form 10-KSB or Quarterly Report on
Form 10-QSB, and (C) such other information as may be reasonably requested in
order to avail such Investor of any rule or regulation of the SEC that permits
the selling of any such Registrable Securities without registration.

              4. Due Diligence Review; Information. The Company shall make
available, during normal business hours, for inspection and review by the
Investors, advisors to and representatives of the Investors (who may or may not
be affiliated with the Investors and who are reasonably acceptable to the
Company), all financial and other records, all SEC Filings (as defined in the
Purchase Agreement) and other filings with the SEC, and all other corporate
documents and properties of the Company as may be reasonably necessary for the
purpose of such review, and cause the Company's officers, directors and
employees, within a reasonable time period, to supply all such information
reasonably requested by the Investors or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without
limitation, in response to all questions and other inquiries reasonably made or
submitted by any of them), prior to and from time to time after the filing and
effectiveness of the Registration Statement for the sole purpose of enabling the
Investors and such representatives, advisors and underwriters and their
respective accountants and attorneys to conduct initial and ongoing due
diligence with respect to the Company and the accuracy of such Registration
Statement.

                  The Company shall not disclose material nonpublic information
to the Investors, or to advisors to or representatives of the Investors, unless
prior to disclosure of such information the Company identifies such information
as being material nonpublic information and provides the Investors, such
advisors and representatives with the opportunity to accept or refuse to accept
such material nonpublic information for review and any Investor wishing to
obtain such information enters into an appropriate confidentiality agreement
with the Company with respect thereto.

         5. Obligations of the Investors.

                           (a) Each Investor shall furnish in writing to the
Company such information regarding itself, the Registrable Securities held by it
and the intended method of disposition of the Registrable Securities held by it,
as shall be reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company may reasonably request. At least five (5) Business Days prior to
the first anticipated filing date of any Registration Statement, the Company
shall notify each Investor of the information the Company requires from such
Investor if such Investor elects to have any of the Registrable Securities

                                      -7-
<PAGE>

included in the Registration Statement. An Investor shall provide such
information to the Company at least two (2) Business Days prior to the first
anticipated filing date of such Registration Statement if such Investor elects
to have any of the Registrable Securities included in the Registration
Statement.

                           (b) Each Investor, by its acceptance of the
Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless such Investor has notified the Company
in writing of its election to exclude all of its Registrable Securities from
such Registration Statement.

                           (c) Each Investor agrees that, upon receipt of any
notice from the Company of either (i) the commencement of an Allowed Delay
pursuant to Section 2(c)(ii) or (ii) the happening of an event pursuant to
Section 3(h) hereof, such Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities, until the Investor's receipt of the copies of the
supplemented or amended prospectus filed with the SEC and until any related
post-effective amendment is declared effective and, if so directed by the
Company, the Investor shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction)
all copies in the Investor's possession of the Prospectus covering the
Registrable Securities current at the time of receipt of such notice.

         6. Indemnification.

                           (a) Indemnification by the Company. The Company will
indemnify and hold harmless each Investor and its officers, directors, members,
employees and agents, successors and assigns, and each other person, if any, who
controls such Investor within the meaning of the 1933 Act, against any losses,
claims, damages or liabilities, joint or several, to which they may become
subject under the 1933 Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of any material fact
contained in any Registration Statement, any preliminary prospectus or final
prospectus contained therein, or any amendment or supplement thereof; (ii) any
blue sky application or other document executed by the Company specifically for
that purpose or based upon written information furnished by the Company filed in
any state or other jurisdiction in order to qualify any or all of the
Registrable Securities under the securities laws thereof (any such application,
document or information herein called a "Blue Sky Application"); (iii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading; (iv)
any violation by the Company or its agents of any rule or regulation promulgated
under the 1933 Act applicable to the Company or its agents and relating to
action or inaction required of the Company in connection with such registration;
or (v) any failure to register or qualify the Registrable Securities included in
any such Registration in any state where the Company or its agents has
affirmatively undertaken or agreed in writing that the Company will undertake
such registration or qualification on an Investor's behalf and will reimburse
such Investor, and each such officer, director or member and each such
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in
any such case if and to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information
furnished by such Investor or any such controlling person in writing
specifically for use in such Registration Statement or Prospectus.

                                      -8-
<PAGE>

                           (b) Indemnification by the Investors. Each Investor
agrees, severally but not jointly, to indemnify and hold harmless, to the
fullest extent permitted by law, the Company, its directors, officers,
employees, stockholders and each person who controls the Company (within the
meaning of the 1933 Act) against any losses, claims, damages, liabilities and
expense (including reasonable attorney fees) resulting from any untrue statement
of a material fact or any omission of a material fact required to be stated in
the Registration Statement or Prospectus or preliminary prospectus or amendment
or supplement thereto or necessary to make the statements therein not
misleading, to the extent, but only to the extent that such untrue statement or
omission is contained in any information furnished in writing by such Investor
to the Company specifically for inclusion in such Registration Statement or
Prospectus or amendment or supplement thereto. In no event shall the liability
of an Investor be greater in amount than the dollar amount of the proceeds (net
of all expense paid by such Investor in connection with any claim relating to
this Section 6 and the amount of any damages such Investor has otherwise been
required to pay by reason of such untrue statement or omission) received by such
Investor upon the sale of the Registrable Securities included in the
Registration Statement giving rise to such indemnification obligation.

                           (c) Conduct of Indemnification Proceedings. Any
person entitled to indemnification hereunder shall (i) give prompt notice to the
indemnifying party of any claim with respect to which it seeks indemnification
and (ii) permit such indemnifying party to assume the defense of such claim with
counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ
separate counsel and to participate in the defense of such claim, but the fees
and expenses of such counsel shall be at the expense of such person unless (a)
the indemnifying party has agreed to pay such fees or expenses, or (b) the
indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its counsel, a
conflict of interest exists between such person and the indemnifying party with
respect to such claims (in which case, if the person notifies the indemnifying
party in writing that such person elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such claim on behalf of such person); and
provided, further, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such
claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or
expenses of more than one separate firm of attorneys at any time for all such
indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

                                      -9-
<PAGE>

                           (d) Contribution. If for any reason the
indemnification provided for in the preceding paragraphs (a) and (b) is
unavailable to an indemnified party or insufficient to hold it harmless, other
than as expressly specified therein, then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of
such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnified party and the indemnifying party,
as well as any other relevant equitable considerations. No person guilty of
fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any person not guilty of such fraudulent
misrepresentation. In no event shall the contribution obligation of a holder of
Registrable Securities be greater in amount than the dollar amount of the
proceeds (net of all expenses paid by such holder in connection with any claim
relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission) received by it upon the sale of the
Registrable Securities giving rise to such contribution obligation.

         7. Miscellaneous.

                           (a) Amendments and Waivers. This Agreement may be
amended only by a writing signed by the Company and the Required Investors. The
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company shall have obtained the
written consent to such amendment, action or omission to act, of the Required
Investors.

                           (b) Notices. All notices and other communications
provided for or permitted hereunder shall be made as set forth in Section 9.4 of
the Purchase Agreement.

                           (c) Assignments and Transfers by Investors. The
provisions of this Agreement shall be binding upon and inure to the benefit of
the Investors and their respective successors and assigns. An Investor may
transfer or assign, in whole or from time to time in part, to one or more
persons its rights hereunder in connection with the transfer of Registrable
Securities by such Investor to such person, provided that such Investor complies
with all laws applicable thereto and provides written notice of assignment to
the Company promptly after such assignment is effected.

                           (d) Assignments and Transfers by the Company. This
Agreement may not be assigned by the Company (whether by operation of law or
otherwise) without the prior written consent of the Required Investors,
provided, however, that the Company may assign its rights and delegate its
duties hereunder to any surviving or successor corporation in connection with a
merger or consolidation of the Company with another corporation, or a sale,
transfer or other disposition of all or substantially all of the Company's
assets to another corporation, without the prior written consent of the Required
Investors, after notice duly given by the Company to each Investor.

                           (e) Benefits of the Agreement. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective permitted successors and assigns of the parties. Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

                                      -10-
<PAGE>

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

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

                           (h) Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof but shall
be interpreted as if it were written so as to be enforceable to the maximum
extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any provisions hereof
prohibited or unenforceable in any respect.

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

                           (j) Entire Agreement. This Agreement is intended by
the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.

                           (k) Governing Law; Consent to Jurisdiction; Waiver of
Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of
law principles thereof. Each of the parties hereto irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York located in New
York County and the United States District Court for the Southern District of
New York for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Agreement and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO

                                      -11-
<PAGE>

REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                                      -12-
<PAGE>

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

The Company:                       IQ BIOMETRIX, INC.

                                   By:
                                      -----------------------------------------
                                   Name: William B.G. Scigliano
                                   Title: Chief Executive Officer and President

                                      -13-
<PAGE>

The Investors:             SPECIAL SITUATIONS PRIVATE EQUITY FUND, L.P.

                           By:_____________________________
                           Name: Austin W. Marxe
                           Title: General Partner

                           SPECIAL SITUATIONS TECHNOLOGY FUND, L.P.

                           By:_______________________________
                           Name: Austin W. Marxe
                           Title: General Partner

                           SPECIAL SITUATIONS TECHNOLOGY FUND II, L.P.

                           By:_______________________________
                           Name: Austin W. Marxe
                           Title: General Partner

                                      -14-
<PAGE>

                           ENABLE GROWTH PARTNERS

                           By:_________________________
                           Name:
                           Title:

                           ____________________________
                           Name:  Ronald Nash

                           MEADOWBROOK OPPORTUNITY FUND

                           By:_________________________
                           Name:
                           Title:

                           NITE CAPITAL

                           By:_________________________
                           Name:
                           Title:

                           SHOTTENFELD GROUP, LLC

                           By:_________________________
                           Name:
                           Title:

                                      -15-
<PAGE>

                           BRIARWOOD INVESTMENTS

                           By:_________________________
                           Name:
                           Title:

                           _________________________
                           Name:  W. Austin Lewis

                           FORTE CAPITAL PARTNERS

                           By:_________________________
                           Name:
                           Title:

                                      -16-
<PAGE>

                                                                      Exhibit A

                              Plan of Distribution

         The selling stockholders, which as used herein includes donees,
pledgees, transferees or other successors-in-interest selling shares of common
stock or interests in shares of common stock received after the date of this
prospectus from a selling stockholder as a gift, pledge, partnership
distribution or other transfer, may, from time to time, sell, transfer or
otherwise dispose of any or all of their shares of common stock or interests in
shares of common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These dispositions may
be at fixed prices, at prevailing market prices at the time of sale, at prices
related to the prevailing market price, at varying prices determined at the time
of sale, or at negotiated prices.

         The selling stockholders may use any one or more of the following
methods when disposing of shares or interests therein:

      -     ordinary brokerage transactions and transactions in which the
            broker-dealer solicits purchasers;

      -     block trades in which the broker-dealer will attempt to sell the
            shares as agent, but may position and resell a portion of the block
            as principal to facilitate the transaction;

      -     purchases by a broker-dealer as principal and resale by the
            broker-dealer for its account;

      -     an exchange distribution in accordance with the rules of the
            applicable exchange;

      -     privately negotiated transactions;

      -     short sales effected after the date the registration statement of
            which this Prospectus is a part is declared effective by the SEC;

      -     through the writing or settlement of options or other hedging
            transactions, whether through an options exchange or otherwise;

      -     broker-dealers may agree with the selling stockholders to sell a
            specified number of such shares at a stipulated price per share;

      -     a combination of any such methods of sale; and

      -     any other method permitted pursuant to applicable law.

         The selling stockholders may, from time to time, pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock, from
time to time, under this prospectus, or under an amendment to this prospectus

                                      -17-
<PAGE>

under Rule 424(b)(3) or other applicable provision of the Securities Act
amending the list of selling stockholders to include the pledgee, transferee or
other successors in interest as selling stockholders under this prospectus. The
selling stockholders also may transfer the shares of common stock in other
circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.

         In connection with the sale of our common stock or interests therein,
the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the
common stock in the course of hedging the positions they assume. The selling
stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities. The selling
stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

         The aggregate proceeds to the selling stockholders from the sale of the
common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any. Each of the selling stockholders reserves the
right to accept and, together with their agents from time to time, to reject, in
whole or in part, any proposed purchase of common stock to be made directly or
through agents. We will not receive any of the proceeds from this offering. Upon
any exercise of the warrants by payment of cash, however, we will receive the
exercise price of the warrants.

         The selling stockholders also may resell all or a portion of the shares
in open market transactions in reliance upon Rule 144 under the Securities Act
of 1933, provided that they meet the criteria and conform to the requirements of
that rule.

         The selling stockholders and any underwriters, broker-dealers or agents
that participate in the sale of the common stock or interests therein may be
"underwriters" within the meaning of Section 2(11) of the Securities Act. Any
discounts, commissions, concessions or profit they earn on any resale of the
shares may be underwriting discounts and commissions under the Securities Act.
Selling stockholders who are "underwriters" within the meaning of Section 2(11)
of the Securities Act will be subject to the prospectus delivery requirements of
the Securities Act.

         To the extent required, the shares of our common stock to be sold, the
names of the selling stockholders, the respective purchase prices and public
offering prices, the names of any agents, dealer or underwriter, any applicable
commissions or discounts with respect to a particular offer will be set forth in
an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

         In order to comply with the securities laws of some states, if
applicable, the common stock may be sold in these jurisdictions only through
registered or licensed brokers or dealers. In addition, in some states the
common stock may not be sold unless it has been registered or qualified for sale
or an exemption from registration or qualification requirements is available and
is complied with.

                                      -18-
<PAGE>

         We have advised the selling stockholders that the anti-manipulation
rules of Regulation M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling stockholders and their affiliates.
In addition, we will make copies of this prospectus (as it may be supplemented
or amended from time to time) available to the selling stockholders for the
purpose of satisfying the prospectus delivery requirements of the Securities
Act. The selling stockholders may indemnify any broker-dealer that participates
in transactions involving the sale of the shares against certain liabilities,
including liabilities arising under the Securities Act.

         We have agreed to indemnify the selling stockholders against
liabilities, including liabilities under the Securities Act and state securities
laws, relating to the registration of the shares offered by this prospectus.

         We have agreed with the selling stockholders to keep the registration
statement of which this prospectus constitutes a part effective until the
earlier of (1) such time as all of the shares covered by this prospectus have
been disposed of pursuant to and in accordance with the registration statement
or (2) the date on which the shares may be sold pursuant to Rule 144(k) of the
Securities Act.

                                      -19-EXHIBIT 10.1

                RENEWAL PROMISSORY NOTE(Revolving Line Of Credit)

$225,000.00                                              Effective July 22, 2003
                                                         Naples, Florida

      FOR VALUE  RECEIVED,  ROBOTIC  WORKSPACE  TECHNOLOGIES,  INC.,  a Maryland
corporation,  authorized and registered as a foreign  corporation to do business
in the State of Florida, (sometimes hereinafter referred to as the "undersigned"
or the "Borrower"), promises to pay to the order of FIFTH THIRD BANK, FLORIDA or
any subsequent  holder of this Note ("Lender") at its principal  offices located
at 999 Vanderbilt Beach Road,  Naples,  Florida 34108 (or at such other place or
places as Lender may  designate)  the principal  sum of Two Hundred  Twenty Five
Thousand and No/100 Dollars ($225,000.00) or so much thereof as may be from time
to time  outstanding,  plus interest  thereon at the Interest  Rate  hereinafter
defined,  all in  accordance  with the  terms  and  conditions  of this  Renewal
Promissory Note (this "Note").  This Note is secured by a Security  Agreement of
even  date (the  "Agreement"),  and UCC  Financing  Statements  (the  "Financing
Statements") and other agreements by and between Borrower and Lender. This Note,
Security  Agreement,   Financing   Statements  and  such  other  agreements  are
hereinafter  referred  to  collectively  as the  "Loan  Documents"  and the loan
evidenced  thereby is,  hereinafter  referred to as the "Loan" Terms used herein
but not  otherwise  defined  hereunder  are  defined  as set  forth  in the Loan
Documents. All of the terms,  definitions,  conditions and covenants of the Loan
Documents are expressly made a part of this Note by reference in the same manner
and with the same  effect as if set forth  herein at  length,  and any holder of
this Note is  entitled  to the  benefits  of and  remedies  provided in the Loan
Documents.  Subject  to the  terms  and  conditions  of this  Note  and the Loan
Documents,  Lender  shall  advance  funds to  Borrower,  such that  Borrower may
borrow,  partially or wholly repay, and reborrow,  on a revolving basis, up to a
maximum  principal  sum  equal to the face  amount  of this Note at any one time
outstanding, subject to the limitations set forth in Section 4 below.

      1. Prime Rate.  For purposes  hereof,  "Prime Rate" means the  fluctuating
rate of interest per annum  established  by Lender as its prime  lending rate in
effect from time to time whether or not such rate shall be otherwise  published.
Such Prime Rate is established by Lender as an index or base rate and may or may
not at any time be the best or lowest rate of interest offered by Lender.

      2.  Interest  Rate.  The  outstanding  Loan  principal  balance shall bear
interest at a variable  Interest Rate per annum equal to the Prime Rate plus two
percent  (Prime Rate plus 2%). The  Interest  Rate  hereunder  shall be adjusted
daily in  accordance  with  fluctuations  in the Prime Rate.  Interest  shall be
computed  on the  basis of a daily  amount  of  interest  accruing  on the daily
outstanding  principal  balance  during a three  hundred  sixty  (360)  day year
multiplied by the actual number of days the principal is outstanding during such
applicable interest period.

      3. Terms of Repayment.  All accrued but unpaid  interest  shall be due and
payable monthly, in arrears,  with the first such payment due and payable August
22,  2003 and  subsequent  payments  due and payable on the same day of each and
every  month  thereafter  during the term of this Note.  All  accrued but unpaid
interest and the entire  outstanding  principal balance shall be due and payable
in full on the Maturity Date as defined in Paragraph 5 below.

                                       1
<PAGE>

This Renewal  Promissory Note renews that certain Renewal  Promissory Note dated
July 22,  2002 and  executed  by  Borrower  In favor of Lender  in the  original
principal  amount of $225,000 (the "Original  Note.").  Documentary  Stamp Taxes
were paid on the Original Note.  This Renewal Note does not extend or renew more
than the original face amount of the Original Note Pursuant to Florida  Statutes
Chapters 199 and 201, no additional stamp taxes are due hereon.  All payments of
principal and interest shall be made in lawful  currency of the United States of
America which shall be legal tender in payment of all debts, public and private,
at the time of payment.

      4.  Limitations  on  Advances.  Notwithstanding  anything  herein  to  the
contrary,  advances  under this Note  shall be  limited so that the  outstanding
principal balance at any one time shall not exceed $225,000.00.  If, at any time
during the term of this Note,  the  outstanding  principal  balance  exceeds the
limits set forth above,  Borrower shall  immediately pay to Lender the amount of
such excess. Subject to the above, so long as Borrower and any Guarantor are not
in  default  under any of the terms of this Note or other  Loan  Documents,  and
Borrower and any  Guarantor  are not in default  under any other  agreements  or
loans with  Lender,  Borrower may draw on this Note from time to time in amounts
requested by Borrower so long as the maximum outstanding principal amount of the
Loan at any one time shall not exceed $225,000.00.

      5.  Advances  Discretionary.   Notwithstanding   anything  herein  to  the
contrary,  all  advances  under this Note shall be at  Lender's  discretion  and
subject to Borrower's financial condition remaining acceptable to Lender.

      6.  Prepayment.  This Note may be  prepaid in whole or in part at any time
without  fee,  premium or penalty.  Any partial  prepayment  shall be applied in
accordance  with  paragraph  12 below and shall not postpone the due date of any
subsequent  periodic  installments or the Maturity Date, or change the amount of
such installments due, unless Lender shall otherwise agree in writing.

      7. Late Charges.  If Borrower fails to pay the installments of interest on
any due date  provided  for  herein or within  ten (10)  days  thereafter,  then
Borrower  further  promises to pay a late  payment  charge equal to five percent
(5%) of the amount of the  unpaid  installment  as  liquidated  compensation  to
Lender  for the extra  expense  to Lender to  process  and  administer  the late
payment,  Borrower  agreeing,  by execution  hereof,  that any other  measure of
compensation  for a late payment is speculative and impossible to compute.  This
provision for late charges shall not be deemed to extend the time for payment or
be a "grace  period"  or "cure  period"  that  gives  Borrower a right to cure a
Default or Default Condition.  Imposition of late charges is not contingent upon
the giving of any notice or lapse of any cure  period  provided  for in the Loan
Documents  and shall  not be  deemed a waiver of any right or remedy of  Lender,
including without limitation, acceleration of this Note.

      8. Maturity Date. The then outstanding  principal balance plus all accrued
but unpaid  interest shall be due and payable on January 22, 2004 (the "Maturity
Date").

                                       2
<PAGE>

      9.  Default.  Any failure of Borrower or any  Guarantor to comply with any
term,  covenant,  or  condition  of this Note,  including,  without  limitation,
Borrower's  failure to pay  principal,  interest,  or  expenses  when same shall
become due, or the existence of any Default  Condition or Default under the Loan
Documents, shall be deemed, at the option of Lender, a Default under this Note.

      10. Acceleration.  Upon the occurrence of a Default hereunder or under the
terms of any one or more of the Loan  Documents,  Lender  may  declare  the then
outstanding  principal and all accrued but unpaid  interest  immediately due and
payable and upon  acceleration  and thereafter  this Note shall bear interest at
the Default Rate,  hereinafter defined,  until all indebtedness evidenced hereby
and secured by the Loan Documents has been paid in full.  Further,  in the event
of such acceleration, the Loan, and all other indebtedness of Borrower to Lender
arising out of or in connection  with the Loan shall become  immediately due and
payable,  without  presentation,  demand,  protest or notice of any kind, all of
which are hereby  waived by Borrower.  Any judgment  rendered on this Note shall
bear interest at the Default Rate (as herein defined).

      11.  Default  Rate.  After default or maturity or upon  acceleration,  and
thereafter,  the unpaid  indebtedness  then evidenced by this Note and due under
and secured by the Loan  Documents  shall bear interest at a fixed rate equal to
the lesser of (a) the maximum rate then permitted  under  applicable law, or (b)
eighteen percent (18%) per annum.

      12.  Application of Payments.  All sums received by Lender for application
to the Loan may be applied by Lender to late charges, expenses, costs, interest,
principal,  and other amounts owing to Lender in connection with the Loan in the
order selected by Lender in its sole discretion.

      13. Expenses. In the event this Note is not paid when due on any stated or
accelerated  maturity  date, or should it be necessary for Lender to enforce any
other of its rights under this Note, or the Loan Documents, Borrower will pay to
Lender,  in addition to  principal,  interest and other charges due hereunder or
under the Loan  Documents,  all costs of  collection or  enforcement,  including
reasonable  attorneys' fees,  paralegal fees, legal  assistants' fees, costs and
expenses,  whether incurred with respect to collection,  litigation,  bankruptcy
proceedings,  interpretation,  dispute,  negotiation,  trial, appeal, defense of
actions  instituted by a third party against Lender arising out of or related to
the Loan, enforcement of any judgment based on this Note, or otherwise,  whether
or not a suit to collect  such  amounts or to enforce such rights is brought or,
if brought, is prosecuted to judgment.

      14.  Waiver.  All  persons  now or at any time  liable for payment of this
Note,  whether  directly  or  indirectly,  including,  without  limitation,  any
Guarantor,  hereby waive presentment,  protest,  notice of protest and dishonor.
The undersigned  expressly consents to any extensions and renewals,  in whole or
in part, to the release of any or all Guarantors or co-makers and any collateral
security or portions thereof,  given to secure this Note, and all delays in time
of payment or other  performance which Lender may grant, in its sole discretion,
at any time and from time to time without limitation,  all without any notice or
further consent of Borrower,  and any such grant by Lender shall not be deemed a
Waiver of any subsequent  delay or any of Lender's rights hereunder or under the
Loan Documents.

                                       3
<PAGE>

      15. Usury. In no event shall this or any other provision  herein or in the
Loan  Documents,  permit the  collection of any interest which would be usurious
under the laws of the State of  Florida.  If any such  interest in excess of the
maximum rate allowable under applicable law has been collected,  Borrower agrees
that the amount of  interest  collected  above the  maximum  rate  permitted  by
applicable  law,  together  with  interest  thereon  at  the  rate  required  by
applicable  law,  shall be refunded to Borrower,  and Borrower  agrees to accept
such  refund,  or, at  Borrower's  option,  such  refund  shall be  applied as a
principal payment hereunder.

      16.  Modification.  This Note may not be  changed  orally,  but only by an
agreement in writing signed by the Lender and Borrower.

      17.  Applicable  Law.  This Note shall be  governed  by and  construed  in
accordance with the laws of the State of Florida.

      18.  Successors  and Assigns.  As used herein,  the terms  "Borrower"  and
"Lender"  shall  be  deemed  to  include  their   respective   heirs,   personal
representatives,  successors and assigns.  The owner of this Note may, from time
to time,  sell or offer to sell the loan  evidenced  by this Note,  or interests
therein,  to one or more assignees or participants  and is hereby  authorized to
disseminate  any  information  it has  pertaining to the Loan  evidenced by this
Note,  including,  without  limitation,  any  security  for this Note and credit
information  on Borrower,  any of its principals and any Guarantor of this Note,
to any  company  affiliated  with  the  owner  of this  Note,  any  assignee  or
participant,  and to the extent,  if any,  specified in any such  assignment  or
participation,  such affiliated  companies,  assignee(s) or participant(s) shall
have the  rights and  benefits  with  respect  to this Note,  and the other Loan
Documents as such person(s) would have if such person(s) were Lender  hereunder.
The owner of this Note may also disclose any such  information to any regulatory
body having jurisdiction over Lender.

      19.  Severability.  In the event any one or more of the provisions of this
Note shall for any reason be held to be invalid,  illegal, or unenforceable,  in
whole or in part or in any respect,  or in the event that any one or more of the
provisions  of this Note operates or would  prospectively  operate to invalidate
this Note,  then and in any of those events,  only such  provision or provisions
shall be deemed null and void and shall not affect any other  provision  of this
Note. The remaining  provisions of this Note shall remain  operative and in full
force and  effect  and shall in no way be  affected,  prejudiced,  or  disturbed
thereby.  In the event any  provisions  of this Note are  inconsistent  with the
provisions  of any of the  other  Loan  Documents,  or any other  agreements  or
documents executed in connection with this Note, this Note shall control.

      20.  Captions:  Pronouns.  Captions are for  reference  only and in no way
limit the terms of this Note.  The  pronouns  used in this  instrument  shall be
construed as masculine,  feminine, or neuter as the occasion may require. Use of
the singular includes the plural, and vice versa.

      21.  Business Day. Any reference  herein or in the Loan Documents to a day
or  business  day shall be deemed to refer to a banking day which shall be a day
on which Lender is open for the transaction of business,  excluding any national
holidays,  and any performance  which would otherwise be required on a day other
than a banking day shall be timely  performed in such instance,  if performed on
the next  succeeding  banking  day.  Notwithstanding  such  timely  performance,
interest  shall continue to accrue  hereunder  until such payment or performance
has been made,

                                       4
<PAGE>

      22. WAIVER OF JURY TRIAL.  THE PARTIES  MUTUALLY AGREE THAT NEITHER PARTY,
NOR ANY ASSIGNEE,  SUCCESSOR,  HEIR, OR LEGAL REPRESENTATIVE OF THE PARTIES (ALL
OF WHOM ARE HEREINAFTER REFERRED TO AS THE "PARTIES") SHALL SEEK A JURY TRIAL IN
ANY LAWSUIT, PROCEEDING,  COUNTERCLAIM,  OR ANY OTHER LITIGATION PROCEDURE BASED
UPON OR ARISING OUT OF THIS NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RELATED
AGREEMENT OR  INSTRUMENT,  ANY OTHER  COLLATERAL FOR THE DEBT OR THE DEALINGS OR
THE  RELATIONSHIP  BETWEEN  OR AMONG THE  PARTIES,  OR ANY OF THEM.  NONE OF THE
PARTIES WILL SEEK TO CONSOLIDATE  ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN
WAIVED  WITH ANY OTHER  ACTION IN WHICH A JURY  TRIAL HAS NOT BEEN  WAIVED.  THE
PROVISIONS  OF THIS  PARAGRAPH  HAVE BEEN FULLY  NEGOTIATED  BY THE PARTIES WITH
LENDER.  THE WAIVER CONTAINED  HEREIN IS IRREVOCABLE,  CONSTITUTES A KNOWING AND
VOLUNTARY WAIVER, AND SUBJECT TO NO EXCEPTIONS. LENDER HAS IN NO WAY AGREED WITH
OR  REPRESENTED  TO  BORROWER,  ANY  GUARANTOR,  OR ANY  OTHER  PARTY  THAT  THE
PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

      IN WITNESS WHEREOF,  Borrower has caused this Note to be duly executed the
29th of August, 2003, effective July 22, 2003.

                                          Robotic Workspace Technologies, Inc.,
                                          a Maryland corporation

                                          By: /s/ Walter K. Weisel
                                          ------------------------
                                          Walter K. Weisel
                                          Its: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]