Document:

exv10w1

 

ANNEX A

AMENDED AND RESTATED KEY EXECUTIVE RETENTION, RESTRUCTURING

BONUS

AND SEVERANCE AGREEMENT

Between

NRG Energy, Inc.

And

Scott J. Davido

 

 

Table of Contents

	 	 	 	 	 	 
	 	Article 1.
	 	Establishment, Term and Purpose
	 	1

	 
	 	 
	 	 

	 	Article 2.
	 	Definitions
	 	1

	 
	 	 
	 	 

	 	Article 3.
	 	Restructuring Bonus
	 	4

	 
	 	 
	 	 

	 	Article 4.
	 	Severance Benefits
	 	4

	 
	 	 
	 	 

	 	Article 5.
	 	Excise Tax
	 	6

	 
	 	 
	 	 

	 	Article 6.
	 	Outplacement Assistance
	 	7

	 
	 	 
	 	 

	 	Article 7.
	 	The
Company’s Payment Obligation
	 	7

	 
	 	 
	 	 

	 	Article 8.
	 	Withholding
	 	8

	 
	 	 
	 	 

	 	Article 9.
	 	Non-Competition Other Than Upon Change in Control
	 	8

	 
	 	 
	 	 

	 	Article 10.
	 	Non-Disparagement
	 	10

	 
	 	 
	 	 

	 	Article 11.
	 	Successors and Assignment
	 	10

	 
	 	 
	 	 

	 	Article 12.
	 	Miscellaneous
	 	11

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Severance Agreement

Article 1. Establishment, Term and Purpose

     1.1 Establishment of the Agreement. NRG Energy, Inc., hereby enters into
this Key Executive Retention, Restructuring Bonus and Severance Agreement with
Scott J. Davido (the “Participant”) as of July 1, 2003.

     1.2 Term of the Agreement. This Agreement shall be effective on the
date indicated above and shall remain in effect until the earlier of
(a) a Restructuring Event or (b) termination of the Participant’s
employment with the Company.

     1.3 Purpose of the Agreement. The purpose of the Agreement is to provide
an executive officer and key person of the Company (i) compensation for
contributing to a Restructuring Event and (ii) financial security in the event
of a termination of employment from the Company. This Agreement shall supercede
any other restructuring incentive, severance or severance-related plan or
agreement in which the Participant had participated. The Board has determined
that Scott J. Davido is eligible to participate in the Agreement as of the
Effective Date.

Article 2. Definitions

     Whenever used in this Agreement, the following terms shall have the
meanings set forth below:

     2.1 “Agreement” means this Amended and Restated Key Executive Retention,
Restructuring Bonus and Severance Agreement between the Company and Scott J.
Davido.

     2.2 “Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C.
Sections 101-1330.

     2.3 “Base Salary” means an amount equal to the Participant’s base annual
salary as of the date of his termination of employment or the Effective Date,
as applicable. As of July 1, 2003, Participant’s Base Salary shall be
$500,000.00. Subsequent to the Effective Date and payment of any Restructuring
Bonus, Participant’s Base Salary shall be $300,000.00. For this purpose, “Base
Salary” shall not include bonuses, long-term incentive compensation, or any
remuneration other than base annual salary.

     2.4 “Beneficial Owner” shall have the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

     2.5. “Beneficiary” means the persons or entities designated or deemed to be designated by the Participant.

     2.6 “Board” means the Board of Directors of the Company.

     2.7 “Cause” means the occurrence of any one or more of the following events:

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	 	(a)	 	The continued failure by the Participant to
substantially and effectively perform his normal duties (other
than any such failure resulting from the Participant’s
Disability), after a written demand for substantial performance,
signed by the CEO or the Participant’s immediate supervisor, is
delivered to the Participant, that identifies the manner in
which the Participant has not substantially and effectively
performed his duties, and the Participant has failed to remedy
the situation within thirty (30) business days of receiving such
notice;

	 	(b)	 	The Participant’s conviction or guilty plea for
committing an act of fraud, embezzlement, theft, or other act
constituting a felony; or the Participant’s violation of the
Company Code of Conduct; or

	 	(c)	 	The engaging by the Participant in willful, reckless
or grossly negligent conduct materially and demonstrably
injurious to the Company. However, no act, or failure to act on
the Participant’s part, shall be considered “willful” unless
done, or omitted to be done, by the Participant not in good
faith and without reasonable belief that his action or omission
was in the best interest of the Company.

     2.8 “Code” means the United States Internal Revenue Code of 1986,
as amended.

     2.9 “Company” means NRG Energy, Inc., a Delaware corporation or any
successor thereto as provided in Article 12 herein.

     2.10 “Disability” means the definition provided in the Company’s long
term disability plan.

     2.11 “Effective Date” shall have the meaning ascribed to it in the Plan.

     2.12 “Effective Date of Termination” means the date on which Participant’s
employment termination occurs that triggers the payment of Severance Benefits
hereunder.

     2.13 “Exchange Act” means the United States Securities Exchange Act of
1934, as amended.

     2.14 “Good Reason” means, without the Participant’s express written
consent, the occurrence of any one or more of the following:

	 	(a)	 	Any reduction in the Participant’s Base Salary or
target annual bonus below the amount in effect immediately
preceding the reduction (including all increases following July
1, 2003), except in the case of a reduction that similarly
applies to all executives on a nondiscriminatory basis.

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	 	(b)	 	Any significant and material reduction in the
Participant’s benefits package, except in the case of a
reduction that similarly applies to all executives on a
nondiscriminatory basis.

	 	(c)	 	Any assignment of new duties that requires the
Participant to relocate his domicile more than fifty (50) miles
from the Participant’s current work location.

	 	(d)	 	Any significant and material reduction or diminution
in the duties, responsibilities, or position of the Participant
from that in effect immediately prior to such reduction or
diminution, provided that the sale of a Company division or sale
of a division of a subsidiary company will not automatically be
deemed to result in the significant reduction or diminution in
the duties, responsibilities, or position of the Participant
without a specific showing of such reduction or diminution.

	 	(e)	 	Any significant increase in responsibility without
corresponding compensation (with “responsibility” defined as
those responsibilities as in effect as of the Effective Date).

	 	The Participant’s right to terminate employment for Good Reason
shall not be affected by the Participant’s incapacity due to
Disability. The Participant’s continued employment for fewer
than 30 days after any event or change giving rise to a significant and
material reduction or diminution shall not constitute consent to, or a
waiver of rights with respect to, any circumstance constituting Good
Reason herein.

     2.15 “Notice of Termination” means a written notice that indicates the
specific termination provision in this Agreement relied upon, and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Participant’s employment under the provision so
indicated.

     2.16 “Participant” means Scott J. Davido, an executive officer and key
person of the Company.

     2.17 “Person” shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d).

     2.18 “Plan” means the Company’s chapter 11 plan of reorganization
currently filed with the United States Bankruptcy Court for the Southern
District of New York, as such plan may be subsequently amended.

     2.19 “Restructuring Bonus” means the payment described in Section 3.2
herein.

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     2.20 “Retirement” means retirement as defined in the applicable NRG
Energy, Inc. retirement program in which the Participant is eligible, which may
be amended from time to time as directed by the Board.

     2.21 “Severance Benefits” means the payment of severance compensation as provided in Article 4 herein.

     2.22
“Xcel” shall mean Xcel Energy, Inc, a Minnesota corporation, or any successor thereto.

Article 3. Restructuring Bonus

     3.1 Right to Restructuring Bonus.

     Subject to the provisions herein, upon the occurrence of the Effective
Date, the Participant shall be entitled to receive from the Company a
Restructuring Bonus, as described in Section 3.2 herein, to be paid to the
Participant in a lump sum within 30 days following the Effective Date. Payment
of the Restructuring Bonus shall be conditioned upon the Effective Date
occurring by the date specified in the Plan, unless the conditions to the
Effective Date contained in the Plan regarding occurrence by a specified date
shall have been waived under the Plan in accordance with its terms.

     3.2 Description of Restructuring Bonus.

     If the Participant is entitled to receive a Restructuring Bonus, the
amount of the Restructuring Bonus shall equal one and one-half (1.5) times
the Participant’s Base Salary.

     3.3 Termination of Participant

     The Participant shall not be entitled to a Restructuring Bonus if he is
terminated for Cause, or if his employment with the Company ends due to
Disability, Retirement, or due to a voluntary termination of employment by the
Participant without Good Reason.

Article 4. Severance Benefits

     4.1 Right to Severance Benefits. Subject to the provisions herein, the
Participant shall be entitled to receive from the Company Severance Benefits as
described in Section 4.2 herein, if the Participant’s employment with the
Company is terminated by the Company without Cause or the Participant
terminates employment for Good Reason.

     The Participant shall not be entitled to receive Severance Benefits under
Section 4.2 herein if he is terminated for Cause, or if his employment with the
Company ends due to Disability, Retirement, or due to a voluntary termination
of employment by the Participant without Good Reason.

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     4.2
Description of Severance Benefits. If the Participant becomes entitled to
receive Severance Benefits, as provided in Section 4.1 herein, the Participant
shall receive the following Severance Benefits:

	 	(a)	 	Two (2) times the sum of: (i) the Participant’s Base
Salary; and (ii) the greater of : (a) the Participant’s average
annual bonus earned over the two (2) most recent full fiscal
years prior to the Effective Date of Termination; or (b) the
Participant’s target annual bonus established for the bonus plan
year in which the Participant’s Effective Date of Termination
occurs.

	 	(b)	 	An Amount equal to the Participant’s unpaid targeted
annual incentive, established for the plan year in which the
Participant’s Effective Date of Termination occurs, multiplied
by a fraction, the numerator of which is the number of days
completed in the then existing fiscal year through the Effective
Date of Termination, and the denominator of which is three
hundred sixty-five (365).

	 	(c)	 	A net cash payment equivalent to the COBRA premiums
as in effect as of the Participant’s termination of employment
of the medical insurance and dental insurance for a period of
eighteen (18) months. This cash payment shall be made in one
lump sum (net of applicable withholding).

	 	 	 	COBRA election and continuation shall be the
responsibility of the participant and/or qualified
beneficiaries.

	 	 	 	In the event the COBRA premium shall change for all
employees of the Company, the premium, likewise, shall change
for the Participant in a corresponding manner.

	 	(d)	 	A cash payment of vacation and/or paid time off time
earned prior to the Effective Date of Termination, but not taken
by the Participant.

     4.3 Termination due to Disability. If the Participant’s employment is
terminated due to Disability during the term of this Agreement, the Participant
shall receive his Base Salary and accrued vacation and/or paid time off
through his termination of employment and continuation of the medical
insurance, dental insurance and group term life insurance shall be subject to
the terms under the applicable disability plan of the Company.

     4.4 Termination Due to Retirement or Death. If the Participant’s employment
is terminated by reason of Retirement or death, the Participant or, where
applicable, the Participant’s Beneficiaries, shall receive the Participant’s
Base Salary and accrued vacation/paid time off through his termination of
employment, and continuation of the welfare benefits of medical insurance,
dental insurance, and group term life
insurance shall be subject to the treatment provided under the
applicable retirement or health and welfare plan of the Company. If the
Participant’s employment is terminated by reason of death the amounts to be
paid under this Agreement shall be paid to the Participant’s estate.

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     4.5 Termination for Cause or by the Participant Other Than for Good
Reason. If the Participant’s employment is terminated either: (a) by the
Company for Cause; or (b) by the Participant without Good Reason, the Company
shall pay the Participant his unpaid Base Salary and accrued vacation/paid time
off through his termination of employment, at the rate then in effect, plus all
other amounts to which the Participant is entitled under any compensation plans
of the Company, at the time such payments are due; and the Company shall have
not further obligations to the Participant under this Agreement.

     4.6 Notice of Termination. Any termination by the Company for Cause or by
the Participant for Good Reason shall be communicated to the other party at
least one hundred twenty (120) days prior to the date on which such termination
shall be effective. The Company can terminate the employment of the Participant
with no notice in which case the Company shall provide the
Participant with
continuation of pay of one hundred twenty (120) days.

     4.7 Form and Timing of Severance Benefits. At the discretion of the
Company, all cash payments set forth in Section 4.2 shall be made in 30 equal
monthly installments, net of appropriate withholdings, or in one (1) lump sum,
net of appropriate withholdings, within a reasonable period of time, commencing
or paid at a time not to exceed one hundred twenty (120) days after the
Effective Date of Termination.

Article 5. Excise Tax

     5.1 Excise Tax Equalization Payment. If the Participant becomes
entitled to severance benefits or any other payment or benefit under this
Agreement, or under any other agreement or plans of the Company (in the
aggregate, the “Total Payments”), and any of the Total Payments will be
subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (or
any similar tax that may hereafter be imposed), the Company shall pay to the
Participant in cash an additional amount (the “Gross-Up Payment”) such that
the net amount retained by the Participant after deduction of any Excise Tax
upon the Total Payments and any federal, state and local income tax and Excise
Tax upon the Gross-Up Payment provided for by this Section 5.1 (including FICA
and FUTA), shall be equal to the Total Payments. Such payment shall be made by
the Company to the Participant as soon as practicable following the
effective, date of termination, but in no event beyond forty-five (45) days
from such date.

     5.2 Tax Computation. For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax:

	 	(a)	 	Any other payments or benefits received or to be
received by the Participant in connection with a Restructuring
Bonus or the Participant’s termination of employment (whether
pursuant to the terms of this Agreement or any other plan,
arrangement, or agreement with the Company, or with any person
(which shall have the meaning set forth in Section 3(a)(9) of
the Securities Exchange Act of 1934, including a “group” as
defined in Section 13(d) therein) whose actions result in a
Change in Control of the Company or any person affiliated with
the Company or such persons) shall be treated as “parachute
payments” within the meaning of Section 280G(b)(1) of the Code

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	 		 	and shall be treated as subject to the Excise Tax, unless in the
opinion of tax counsel as supported by the Company’s
independent auditors and acceptable to the Participant, such
other payments or benefits (in whole or in part) do not
constitute parachute payments, or unless such excess parachute
payments (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning
of Section 280G(b)(4) of the Code in excess of the base amount
within the meaning of Section 280G(b)(3) of the Code, or are
otherwise not subject to the Excise Tax;

	 	(b)	 	The amount of the Total Payments which shall be
treated as subject to the Excise Tax shall be equal to the
lesser of: (i) the total amount of the Total Payments; or (ii)
the amount of excess parachute payments within the meaning of
Section 280G(b)(3) (after applying clause (a) above); and

	 	(c)	 	The value of any non-cash benefits or any deferred
payment or benefit shall be determined by the Company’s
independent auditors in accordance with the principles of
Section 280G(d)(3) and (4) of the Code.

     For purposes of determining the amount of the Gross-Up Payment, the
Participant shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up Payment is
to be made, and state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Participant’s residence on the
effective date of termination, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

     5.3 Subsequent Recalculation. If the Internal Revenue Service adjusts the
computation of the Company under Section 5.2 herein so that the Participant did
not receive the greatest net benefit, the Company shall reimburse the
Participant for the full amount necessary to make the Participant whole, plus
a market rate of interest, as determined by the Committee.

Article 6. Outplacement Assistance

     Following a termination of employment in which Severance Benefits are
payable hereunder, the Participant shall be reimbursed by the Company for the
costs of all outplacement services obtained by the Participant within the two
(2) year period after the Effective Date of Termination; provided, however,
that the total reimbursement shall be limited to $15,000.

Article 7. The Company’s Payment Obligation

     7.1 Payment Obligations Absolute. Except as provided herein, the Company’s
obligation to make the payments and the arrangements provided for herein shall
be absolute and unconditional, and shall not be affected by any
circumstances, including, without limitation, any offset, counterclaim,
recoupment, defense, or other right which the Company may have against the
Participant or anyone else; provided that the Company shall retain a setoff and
right to recoupment in the event of any breach by the Participant of his
fiduciary duty at common law or a violation of the provisions of
Articles 9.1
or 9.2. All amounts payable by the Company hereunder shall be paid

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without notice or demand. Except as provided herein, each and every payment made
hereunder by the Company shall be final, and the Company shall not seek to
recover all or any part of such payment from the Participant or from whomever
may be entitled thereto. Notwithstanding the foregoing, the Company reserves
the right to conduct an independent investigation for the sole purpose of
determining whether “Cause” exists that would negate a
payment hereunder. Until the conclusion of such investigation (which shall be conducted
expeditiously) the Company reserves the right to suspend payment of benefits or
alternatively, to condition any benefits on the results of such
investigation. For purposes of this section, “expeditiously” shall be defined as a reasonable
period of time not to exceed six (6) months. Participant shall be notified
within thirty (30) days of the conclusion of the investigation.

     The Participant shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangement made under any provision of
this Agreement, and the obtaining of any such other employment shall in no
event affect any reduction of the Company’s obligations to make the payments
and arrangements required to be made under this Agreement.

     7.2 Contractual Rights to Benefits. This Agreement establishes and vests
in the Participant a contractual right to the benefits to which he is entitled
hereunder. However, nothing herein contained shall required or be deemed to
require, or prohibit or be deemed to prohibit, the Company to segregate,
earmark, or otherwise set aside any funds or other assets, in trust or
otherwise, to provide for any payments to be made or required hereunder.

     7.3 Bankruptcy Court Approval

     Participant acknowledges that the Company has commenced a reorganization
case under chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of New York. At Participant’s sole option, the
Company shall promptly move the bankruptcy court for an order authorizing the
assumption of this Agreement under section 365 of the Bankruptcy Code or such
other relief as appropriate to ensure compliance with this Agreement by the
Company and receipt by the Participant of the rights granted hereunder.

Article 8. Withholding

     The Company shall be entitled to withhold from any amounts payable under this
Agreement all taxes as legally shall be required (including, without
limitation, any United States federal taxes, and any other state,
city, or
local taxes).

Article 9. Non-Competition Other Than Upon Change in Control

     9.1 Prohibition on Competition. The Participant agrees that during the
course of the Participant’s employment with the Company, without the prior
written consent of the Company, and for one (1) year from the date of the
Participant’s voluntary or involuntary termination of employment with the
Company; the Participant shall not:

	 	(a)	 	Directly or indirectly own, manage, consult,
associate with, operate, join, work for, control or participate
in the ownership, management, operation or

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	 		 	control of, or be connected in any manner with, any
business (whether in corporate, proprietorship, or partnership
for or otherwise), as more than a 10% owner in such business or
member of a group controlling such business, which is engaged
in any activity which competes with the business of the company
as conducted one (1) year prior to (and up through) the date of
the Participant’s involuntary or voluntary termination of
employment with the Company or which will compete with any
proposed business activity of the Company in the planning
stage on such date of involuntary or voluntary termination.
The participant and the Company agree that this provision is
reasonably enforced as to any geographic area.

	 	(b)	 	Directly or indirectly solicit, service, contract
with or otherwise engage any past (one year prior), existing or
prospective customer, client or account who then has a
relationship with the Company for current or prospective
business on behalf of a competitor of the Company, or on the
Participant’s own behalf for a competing business. The
Participant and the Company agree that this provision is
reasonably enforced with reference to any geographic area
applicable to such relationships with the Company.

	 	(c)	 	Cause or attempt to cause any existing or prospective
customer, client, or account, who then has a relationship with
the Company for current or prospective business, to divert
terminate, limit or in any manner modify, or fail to enter into
any actual or potential business relationship with the Company.
The Participant and the Company agree that this provision is
reasonably enforced with reference to any geographic area
applicable to such relationships with the Company.

	 	(d)	 	The Company agrees that the terms “activity”, “which
competes with the business of the Company”, “competitor of the
Company”, “competing business”, and “relationship with the
Company” as used in this Agreement shall be reasonably
construed and applied.

     9.2 Disclosure of Information. The Participant recognizes that he has
access to and knowledge of certain confidential and proprietary information of
the Company, which is essential to the performance of his duties as an employee
of the Company. The Participant will not, during or after the term of his
employment with the Company, in whole or in part, disclose such information to
any person, firm, corporation, association, or other entity for any reason or
purpose whatsoever, nor shall he make use of any information for his own
purposes.

     9.3 Covenants Regarding Other Employees. During the period ending one (1)
year following the payment of Severance Benefits under this Agreement, the
Participant agrees to not directly or indirectly solicit, employ or conspire
with others to employ any of the Company’s employees. The term “employ” for
purposes of this paragraph means to enter into an arrangement for services as
a full-time or part-time employee, independent contractor, consultant, agent or

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otherwise. The Participant and the Company agree that this provision is
reasonably enforced as to any geographic area,

Article 10. Non-Disparagement

     10.1 Disparagement. The Participant and the Company, each agrees not to
make any disparaging or negative statements about the Company or the
Participant, including but not limited to its products, services or management
any person or entity whatsoever, including but not limited to past, present
and prospective employees or employers, customers, clients, analysts,
investors, vendors and suppliers; provided that, following the expiration of
the non-compete period set forth in Article 9, the non-disparagement provisions
set forth herein is shall not restrain the parties from engaging in legitimate
competition with each other, which could include, but would not be limited to,
legitimate but unfavorable comparisons of products, services, or management of
each other.

     10.2 Release. In order to receive the benefits provided under the
Agreement (other than accrued vacation and paid time-off), the Participant will
be required to provide the Company with a release in a form to be provided by
the Company, or, if Xcel provides the benefits, the Participant
will be required to provide Xcel and the Company with a release in a form to be
provided by Xcel. Such release shall fully release the Company or Xcel, as
applicable, and all of its officers, agents, directors, employees, and
representatives, any affiliated companies, businesses or entities, and all
other persons and entities from each and every legal claim or demand of any
kind that the Participant ever had or might have arising out of any action,
conduct or decision taking place during the Participant’s employment with the
Company, or arising out of the Participant’s separation from that employment,
whether or not any such claim known at the time of separation.

Article 11. Successors and Assignment

     11.1 Successors to the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary thereof that employed the Participant at the time
of Termination of Employment to expressly assume and agree to perform the
Company’s obligations under this Agreement in the same manner and to the same
extent that the Company would be required to perform them if no such
succession had taken place. Failure of the Company to obtain such assumption
and agreement prior to the effective date of any such succession shall be a
breach of this Agreement and shall entitle the Participant to compensation
from the Company in the same amount and on the same terms as he would be
entitled to hereunder if he had terminated his employment with the Company
voluntarily for Good Reason. Except for the purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Effective Date of Termination.

     11.2 Assignment by the Participant. This Agreement shall inure to the
benefit of and be enforceable by the Participant’s personal or legal
representatives, executors, administrators, successors, heirs, distributes,
devisees, and legatees. If the Participant dies while any amount would still be
payable to him hereunder had he continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement, to the Participant’s Beneficiary. If the Participant has not named a
Beneficiary, then such amounts shall be paid to the

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Participant’s devisee, legatee, or other designee, or if there is not such
designee, to the Participant’s estate.

Article 12. Miscellaneous

     12.1 Beneficiaries. The Participant may designate one or more persons or
entities as the primary and/or contingent beneficiaries of any Severance
Benefits or Change in Control Severance Benefits owing to the Participant under
this Agreement. Such designation must be in the form of a signed writing
acceptable to the Company. The Participant may make or change such designations
at any time.

     12.2 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the feminine
shall include the masculine; the plural shall include the singular, and the
singular shall include the plural.

     12.3 Severability. In the event any provision of this Agreement shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Agreement, and the Agreement shall-be
construed and enforced as if the illegal or invalid provision had not been
included. Further, the captions of this Agreement are not part of the
provisions hereof and shall have no force and effect.

     12.4 Modification. No provision of this Agreement may be modified,
waived, or discharged unless such modification, waiver, or discharge is agreed
to in writing and signed by the Participant and by an authorized representative
of the Company, or by the respective parties’ legal representative and
successors.

     12.5 Applicable Law. To the extent not preempted by the laws of the
United States, the laws of the State of Minnesota, shall be the controlling
law in all matters relating to this Agreement.

	 	 	 	 	 
	 	 	 	
SCOTT J. DAVIDO
	 	 	 	 	 
	 	 	 	
/s/ Scott J. Davido

Participant’s Signature

Date: 7/01/03

	 	 	 	 	 
	 	 	 	
NRG ENERGY, INC.
	 	 	 	 	 
	 	 	 	
By: /s/ John R. Boken

John R. Boken
	 	 	 	
Title: President and Chief Operating Officer

	 	 	 	
Date: 07/01/03

11<PAGE>

                                                                   EXHIBIT 10.55

                              IDENTIX INCORPORATED
                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement") is entered into as of the
22nd day of August 2003, between Identix Incorporated, a Delaware corporation
("Identix"), and Linda Howard ("Employee").

                                   BACKGROUND

         Identix and Employee are party to that certain Employment Agreement
dated as of August 22, 2001 (the "2001 Employment Agreement").

         Identix and Employee desire to terminate the 2001 Employment Agreement
and replace it with this Agreement as of the date hereof (the "Effective Date")
for the term indicated on Schedule A (the "Term").

         Identix is willing to employ Employee, and Employee is willing to be
employed by Identix, during the Term on the terms and subject to the conditions
set forth in this Agreement.

         THE PARTIES AGREE AS FOLLOWS:

                  1.       Termination of 2001 Agreement. The parties agree that
the 2001 Agreement is hereby terminated and deemed null and void and

has no further force or effect.

                  2.       Duties. During the Term of this Agreement, Employee
shall devote all of Employee's business time, energy, and skill to the affairs
of Identix and Identix Public Sector, Inc. ("IPS"), a wholly owned subsidiary of
Identix, as more fully identified on Schedule B; provided, however, that
Employee may undertake such specific additional charitable and business
activities, if any, as Identix may reasonably approve (including, without
limitation, activities for affiliates of Identix). During the Term, Employee
shall report directly to the person indicated on Schedule A.

                  3.       Term of Employment.

                           3.1      Definitions. For purposes of this Agreement
the following terms shall have the following meanings:

                                    (a)      "Change in Control" shall mean the
occurrence of any one of the following: (i) any "person", as such term is used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") (other than Identix, a subsidiary, an affiliate, or an
Identix employee benefit plan, including any trustee of such plan acting as a
trustee) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of Identix representing
fifty percent (50%) or more of the combined voting power of Identix's then
outstanding securities; (ii) the election to a majority of the seats of the
Board of Directors of Identix of candidates who were not proposed by

<PAGE>

a majority of the Board in office prior to the time of such election; or (iii)
the dissolution or liquidation (partial or total) of Identix or a sale of assets
involving fifty percent (50%) or more of the assets of Identix (other than the
sale, merger or disposition of a subsidiary or the assets of a subsidiary) or
other transaction or series of related transactions pursuant to which the
holders, as a group, of all of the shares of Identix outstanding prior to the
merger, reorganization or other transaction hold, as a group, less than fifty
percent (50%) of the shares of Identix outstanding after the merger,
reorganization or other transaction. The term "Change of Control" does not
include the sale, merger, disposition or liquidation of IPS or any subsidiary of
IPS, or the sale, disposition or liquidation of their respective assets.

                                    (b)      "Resignation for Good Reason" shall
mean a voluntary resignation of employment by Employee as a result of (i) a
material diminution in responsibility from the duties identified per Section 2
above and Schedule B below, (ii) a decrease in base salary, (iii) an involuntary
relocation, if there has been no Change in Control, or (iv) in the event of a
Change in Control, an involuntary relocation required of the Employee due to a
change by Identix in the location at which the Employee performs Employee's
principal duties for Identix to a new location that is both (A) outside a radius
of fifty (50) miles from the Employee's principal residence immediately prior to
the date of the Change in Control (the "Measurement Date") and (B) more than
thirty (30) miles from the location at which the Employee performed Employee's
principal duties for Identix immediately prior to the Measurement Date, provided
that Employee notifies Identix on or prior to any such resignation of the reason
for such resignation and Identix fails to cure such event within thirty (30)
days thereafter.

                                    (c)      "Termination For Cause" shall mean
termination by Identix of Employee's employment by Identix (i) by reason of
Employee's commission of a felony or other conduct involving fraud or moral
turpitude, (ii) by reason of Employee's fraud upon, or deliberate injury or
attempted injury to Identix, (iii) by reason of Employee's failure to
substantially perform for Identix the normal material duties related to
Employee's job position (other than failure resulting from incapacity due to
disability or death) which failure continues for sixty (60) days following the
Employee's receipt of written notice of such failure to perform, specifying the
nature of the failure and the means by which it can be remedied, (iv) by reason
of Employee's willfully engaging in gross misconduct which is materially and
demonstrably injurious to Identix, or (v) by reason of Employee's willful breach
of this Agreement in any material respect.

                                    (d)      "Termination Other Than For Cause"
shall mean termination by Identix of Employee's employment by Identix (other
than in a Termination For Cause). Included within the definition of "Termination
Other Than For Cause" shall be (i) Employee's death during the Term, (ii)
termination of Employee's employment by Identix based on Employee's failure to
perform Employee's duties under this Agreement on account of illness or physical
or mental incapacity for a period of more than three (3) consecutive months or
(iii) any other involuntary termination that does not constitute a Termination
For Cause.

                                    (e)      "Voluntary Termination" shall mean
termination by Employee of Employee's employment with Identix, excluding
termination by reason of

                                        2

<PAGE>

Resignation for Good Reason as described in Section 3.1(b) and termination by
reason of Employee's death or disability as described in Section 3.1(d).

                           3.2      Basic Term. The term of employment of
Employee by Identix shall commence on the Effective Date and shall continue for
the Term unless extended by mutual written agreement of Employee and Identix or
earlier terminated as provided in this Agreement.

                           3.3      Termination For Cause. Termination For Cause
may be effected by Identix at any time during the Term and shall be effected by
written notification to Employee. Upon Termination For Cause, Employee shall be
immediately paid all accrued salary, and all accrued vacation pay, all to the
effective date of termination, but Employee shall not be paid any other
compensation or reimbursement of any kind, including, without limitation,
severance compensation or bonus.

                           3.4      Termination Other Than For Cause or
Resignation for Good Reason. Notwithstanding anything else in this Agreement,
Identix may effect a Termination Other Than For Cause at any time upon 10 days
prior notice to Employee of such termination. Upon the effective date of any
Termination Other Than For Cause or Resignation for Good Reason, (a) Employee
shall immediately be paid all accrued salary, and all accrued vacation pay, all
to the effective date of termination, (b) as severance compensation, Employee
shall be paid (i) within 10 business days following the effective date of any
Termination Other Than For Cause or Resignation for Good Reason, the gross sum
of [redacted], in a lump sum, less all appropriate taxes, withholdings and
deductions, and (ii) within 10 business days after the one year anniversary of
the effective date of any Termination Other Than For Cause or Resignation for
Good Reason, the gross sum of [redacted], in a lump sum, less all appropriate
taxes, withholdings and deductions, (c) Employee shall immediately be paid all
bonuses "earned" through the date of termination, as defined on Schedule A, (d)
for a period of 12 months following termination, Identix shall make COBRA
payments to continue Employee's medical and dental benefits (or pay Employee an
amount equivalent to such COBRA payments) and shall make payments to continue
Employee's term life insurance (or pay Employee an amount equivalent to the
premiums in effect prior to termination), and (e) all options to purchase Common
Stock granted to Employee by Identix, whether prior to or after the Effective
Date, shall fully vest immediately, and notwithstanding any provision of any
relevant stock option agreement or stock option plan to the contrary, Employee
shall have 12 months from the effective date of termination to exercise such
options, but Employee shall not be paid any other compensation or reimbursement
of any kind. If any Termination Other Than For Cause is the result of the death
of Employee, all payments payable under this Section 3.4 shall be paid to
Employee's heirs or legal representative.

                           3.5      Voluntary Termination. In the event of a
Voluntary Termination, Identix shall immediately pay to Employee all accrued
salary, and all accrued vacation pay, all to the effective date of termination,
but no other compensation or reimbursement of any kind, including, without
limitation, severance compensation or bonus.

                                        3

<PAGE>

                           3.6      Change in Control. If a Change in Control
shall have occurred during the Term, in addition to any rights Employee may have
under applicable stock option plans and/or stock option agreements with the
Company, the following shall apply:

                                    (a)      If the Change in Control occurs
during the Term, then the Term, as indicated on Schedule A, shall not be
changed.

                                    (b)      (i)      If there is a Termination
Other Than For Cause or Resignation for Good Reason within one year after a
Change in Control, and if any of the payments or benefits received or to be
received by the Employee in connection with a Change in Control or the
Employee's termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with Identix,) (all such
payments and benefits, excluding the Gross-Up Payment, being hereinafter
referred to as the "Total Payments") will be subject to the excise tax (the
"Excise Tax") imposed under Section 4999 of the Internal Revenue Code of 1986,
as amended from time to time (the "Code"), Identix shall pay, at the time
specified in Section 3.6(b)(iv), to the Employee an additional amount (the
"Gross-Up Payment") such that the net amount retained by the Employee, after
deduction of any Excise Tax on the Total Payments and any Federal, state and
local income and employment taxes and Excise Tax upon the Gross-Up Payment,
shall be equal to the Total Payments.

                                             (ii)     For purposes of
determining whether any of the Total Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (A) all of the Total Payments
shall be treated as "parachute payments" (within the meaning of Section
280G(b)(2) of the Code) unless, in the opinion of tax counsel ("Tax Counsel")
reasonably acceptable to the Employee and selected by the accounting firm which
was, immediately prior to the Change in Control, Identix's independent auditor
(the "Auditor"), such payments or benefits (in whole or in part) should not be
treated by the courts as constituting parachute payments, including by reason of
Section 280G(b)(4)(A) of the Code, (B) all "excess parachute payments" within
the meaning of Section 280G(b)(l) of the Code shall be treated as subject to the
Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments
(in whole or in part) should be treated by the courts as representing reasonable
compensation for services actually rendered (within the meaning of Section
280G(b)(4)(B) of the Code), or are otherwise not subject to the Excise Tax, and
(C) the value of any noncash benefits or any deferred payment or benefit shall
be determined by the Auditor in accordance with the principles of Sections
280G(d)(3) and (4) of the Code. All fees and expenses of the Tax Counsel and the
Auditor shall be borne solely by Identix.

                                             (iii)    For purposes of
determining the amount of the Gross-Up Payment, the Employee shall be deemed to
pay Federal income tax at the highest marginal rate of Federal income taxation
in the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of the Employee's residence in the calendar year in which the Gross-Up
Payment is to be made, net of the maximum reduction in Federal income taxes
which could be obtained from deduction of such state and local taxes, taking
into account the reduction in itemized deduction under Section 68 of the Code.

                                        4

<PAGE>

                                             (iv)     The Gross-Up Payment shall
be made upon the payment to the Employee of the Total Payments, unless it is
initially determined by Identix or the Tax Counsel that the Total Payments are
not subject to the Excise Tax but after payment of the Total Payments, it is
finally determined following the proceedings set forth in Section 3.6(b)(v) and
(vi) that the Total Payments are subject to the Excise Tax, in which case it
shall be made upon the imposition upon the Employee of the Excise Tax.

                                             (v)      The Employee shall notify
Identix in writing of any claim by the Internal Revenue Service that, if
successful, would require the payment by Identix of a Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten (10)
business days after the Employee is informed in writing of such claim and shall
apprise Identix of the nature of such claim and the date on which such claim is
requested to be paid. The Employee shall not pay such claim prior to the
expiration of the thirty (30) day period following the date on which the
Employee gives such notice to Identix (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If Identix
notifies the Employee in writing prior to the expiration of such period that it
desires to contest such claim, the Employee shall:

                           A)       give Identix any information reasonably
requested by Identix relating to such claim;

                           B)       take such action in connection with
contesting such claim as Identix shall reasonably request in writing from time
to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by Identix and
reasonably satisfactory to the Employee;

                           C)       cooperate with Identix in good faith in
order to effectively contest such claim; and

                           D)       permit Identix to control any proceedings
relating to such claim as provided below;

provided, however, that Identix shall bear and pay directly all costs and
expenses (including, but not limited to, additional interest and penalties and
related legal, consulting or other similar fees) incurred in connection with
such contest and shall indemnify and hold the Employee harmless, on an after-tax
basis, for any Excise Tax or other tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses.

                                             (vi)     Identix shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Employee to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Employee agrees
to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as
Identix shall determine; provided, however, that if Identix directs the Employee
to pay such claim and sue for a refund, Identix shall

                                        5

<PAGE>

advance the amount of such payment to the Employee on an interest-free basis,
and shall indemnify and hold the Employee harmless, on an after-tax basis, from
any Excise Tax or other tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and provided, further, that if the Employee
is required to extend the statute of limitations to enable Identix to contest
such claim, the Employee may limit this extension solely to such claim.
Identix's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority. In addition, no position
may be taken nor any final resolution be agreed to by Identix without the
Employee's consent if such position or resolution could reasonably be expected
to adversely affect the Employee (including any other tax position of the
Employee unrelated to the matters covered hereby).

                                             (vii)    In the event that the
Employee receives a refund of the Excise Tax previously paid, the Employee shall
repay to Identix, within five (5) business days following the receipt of such
refund of the Excise Tax previously paid, the amount of such refund plus any
interest received by the Employee from the Internal Revenue Service on the
refund, and an amount equal to the reduction in the Employee's Federal, state
and local income tax assuming that the repayment is deductible, using the
assumptions set forth in Section 3.6(b)(iii). If, after the receipt by the
Employee of an amount advanced by Identix in connection with an Excise Tax
claim, a determination is made that Employee shall not be entitled to any refund
with respect to such claim and Identix does not notify the Employee in writing
of its intent to contest the denial of such refund prior to the expiration of
thirty (30) days after such determination, such advance shall be forgiven and
shall not be required to be repaid.

         4.       Salary, Benefits, Potential Success Bonus, Legal Fees.

                  4.1      Base Salary. As payment for the services to be
rendered by Employee as provided in Section 2 and subject to the terms and
conditions of Section 3, Identix shall pay to Employee a "base salary" at the
rate indicated on Schedule A, subject to deductions, payable bi-weekly in the
same manner as other Identix employees receive their base compensation.

                  4.2      Bonus. Employee shall be eligible for a bonus as
indicated on Schedule A.

                  4.3      Fringe Benefits. Employee shall be eligible to
participate in such of Identix's benefit plans as are now generally available or
later made generally available to employees of Identix and as are consistent
with other executive officers of Identix. Such benefits shall at a minimum
include medical, dental and term life insurance.

                  4.4      Potential Success Bonus. [redacted]

                  4.5      Legal Fees. Identix shall reimburse Employee for
reasonable and actual attorney's fees incurred by Employee in the negotiation,
preparation and execution

                                        6

<PAGE>

of this Agreement; provided, however, that in no event shall Identix reimburse
Employee for more than [redacted] under this Section 4.5.

         5.       Non Interference, Confidentiality, etc.

                  5.1      Non-Interference. Employee agrees that since the date
of her initial employment with Identix, Employee has continually had access to
extremely valuable confidential and proprietary information and trade secrets of
Identix and IPS, and furthermore, Employee agrees that, during the Term, she
will continue to have access to extremely valuable confidential and proprietary
information and trade secrets of Identix and IPS. Employee further acknowledges
that she is party to that certain Agreement Regarding Proprietary Information,
Inventions and Conditions of Employment with IPS (formerly ANADAC, Inc) dated
June 6, 2001, which such agreement is attached hereto as Schedule C, and which
such agreement is hereby amended as set forth on Schedule C-1 hereto, and which
such agreement remains in full force and effect as amended hereby (the
"Proprietary Information and Inventions Agreement"). Employee agrees that the
failure by Employee to adhere to her obligations under the Proprietary
Information and Inventions Agreement would cause Identix significant loss,
consequential damages and irreparable harm. To help forestall and minimize the
risk of such improper use or disclosure, and related losses, damages and harm,
Employee agrees that, in addition to adhering to Employee's continuing duties
under the Proprietary Information and Inventions Agreement (and without limiting
the terms of such agreement), during the term of this Agreement and for a period
of 18 months following the effective date of any termination or separation of
employment from Identix, Employee shall not directly or indirectly, work for,
advise, consult for, or provide services for any of the following entities:
[redacted]. Additionally, Employee covenants not to make any disparaging
statements regarding Identix or any of its subsidiaries or affiliates, or any of
its or their respective directors, officers, employees, agents, consultants or
advisors. Employee agrees that the obligations and restrictions set forth in
this Section 5 constitute material provisions of the Agreement, and that payment
by Identix of any amounts of money or other benefits under this Agreement are
contingent upon Employees strict compliance with this Section 5 and also
contingent upon Employee's strict compliance with Employees continuing
obligations under the Proprietary Information and Inventions Agreement.

                  5.2      Confidentiality. Except to the extent otherwise
required by law, Employee will not disclose, in whole or in part, any of the
terms of this Agreement. Notwithstanding the foregoing, Employee may disclose
the terms of this Agreement to your spouse or to your legal or financial
advisers.

         6.       Release and Covenant Not to Sue.

                  6.1      Release and Covenant Not to Sue. In exchange for the
payments and other benefits described in this Agreement, Employee hereby forever
RELEASES and COVENANTS NOT TO SUE Identix, its parents, subsidiaries,
affiliates, predecessors, successors, assigns, related companies or entities,
its or their employee benefit plans, trustees, fiduciaries and administrators,
and any and all of its and their respective past or present officers, directors,
partners, insurers, agents, representatives, attorneys and employees (each, a
"Releasee" and together, the "Releasees") from any and all claims, causes of
action, demands, judgments,

                                       7

<PAGE>

liabilities and damages which Employee, her heirs, executors, administrators,
agents, attorneys, representatives or assigns (all collectively included in the
term "Employee" for purposes of this Section 6), has, had or may have against
the Releasees, or any of them, based on any events or circumstances arising or
occurring prior to and including the date of Employee's execution of this
Agreement, including but not limited to any claims relating to Employee's
employment or termination of employment by Identix or IPS, the 2001 Agreement,
any rights of continued employment, reinstatement or reemployment by Identix or
IPS, and any costs or attorneys' fees incurred by Employee, PROVIDED, HOWEVER,
Employee is not waiving, releasing or giving up any rights Employee may have to
test the knowing and voluntary nature of the Agreement under The Older Workers
Benefit Protection Act or to workers' compensation benefits, to earned, banked
or accrued but unused vacation pay, to vested benefits under any pension or
savings plan, to continued benefits in accordance with the Consolidated Omnibus
Budget Reconciliation Act of 1985 or to unemployment insurance..

                  6.2      General Release. Employee agrees and acknowledges:
that this Agreement is intended to be a general release that extinguishes all
claims by Employee against the Releasees; that she is waiving any rights and
claims arising under, among other things, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the Age
Discrimination in Employment Act, the Employee Retirement Income Security Act,
the Family and Medical Leave Act, Executive Order No. 11246, 42 U.S.C. ss. 1981,
and all other federal, state and local statutes, ordinances and common law to
the fullest extent permitted by law; that she is waiving all rights and claims
against the Releasees, known or unknown, arising or occurring prior to and
including the date of Employee's execution of this Agreement; that the
consideration that she will receive in exchange for his waiver of the rights and
claims specified herein exceeds anything of value to which she is already
entitled; that she was hereby informed by Identix to consult with an attorney;
that she has entered into this Agreement knowingly and voluntarily with full
understanding of its terms and after having had the opportunity to seek and
receive advice from counsel of his choosing; and that she has had a reasonable
period of time of no less than twenty-one days within which to consider this
Agreement. Employee represents that she has no pending claim against the
Releasees, has not filed a complaint, charge or claim with any court or
governmental agency against the Releasees and has not assigned any claim against
the Releasees to any person or entity. Employee agrees that she will not
knowingly apply or reapply for employment with Identix or any of its affiliates.

                  6.3      Non Waiver of Rights Under This Agreement.
Notwithstanding Section 6.1 and 6.2 above, the parties agree that the releases
and covenants of Employee set forth above shall not extend to breaches of this
Agreement by Identix.

                  6.4      No Admission. This Agreement does not constitute and
shall not be construed as an admission by any Releasee that it has violated any
law, interfered with any rights, breached any obligation or otherwise engaged in
any improper or illegal conduct with respect to Employee, and each Releasee
expressly denies that it has engaged in any such conduct.

                                        8

<PAGE>

                  6.5      No Effect on Rights of Indemnification. Nothing in
this Agreement is intended to affect any rights Employee may have to
indemnification under applicable contract or law.

         7.       Miscellaneous.

                  7.1      Waiver. The waiver of any term or condition of this
Agreement by any party shall not be construed as a waiver of a subsequent breach
or failure of the same term or condition, or a waiver of any other term or
condition of this Agreement.

                  7.2      Notices. All notices, requests, demands, and other
communications made in connection with this Agreement shall be in writing and
shall be deemed to have been duly given on the date of delivery if delivered by
hand delivery or 12 hours after facsimile transmission to the persons identified
below or five days after mailing if mailed by certified or registered mail
postage prepaid return receipt requested addressed as follows:

                           If to Identix:

                           5600 Rowland Rd.
                           Minnetonka, MN 55343
                           Attn: President &Chief Executive Officer
                           Facsimile:

                           If to Employee:

                           To the address indicated on Schedule A, with a copy
                           to:

                           Law Office of Douglas Herbert
                           1000 Connecticut Avenue, N.W.
                           Suite 301
                           Washington, D.C. 20036
                           Facsimile: 202-659-2435

Any party may change its address for notices by notice duly given pursuant to
this Section 7.2.

                  7.3      Headings. The headings contained in this Agreement
are intended for convenience and shall not be used to interpret the meaning of
this Agreement or to determine the rights of the parties.

                  7.4      Governing Law; Consent to Jurisdiction and Venue. The
provisions of this Agreement will be construed and enforced in accordance with
the laws of the Commonwealth of Virginia, determined without regard to its
choice of law rules. Employee agrees that service upon Employee in any such
action may be made by first class mail, certified or registered, in the manner
provided for delivery of notices in Section 7.2.

                                        9

<PAGE>

                  7.5      Successor and Assigns. This Agreement shall be
binding upon and inure to the benefit of the executors, administrators, heirs,
successors and assigns of the parties; provided, however, that this Agreement
shall not be assignable by Identix (except in connection with the merger or
consolidation of Identix with or into another entity or the sale by Identix of
all or substantially all of its assets) or by Employee.

                  7.6      Counterparts. This Agreement may be signed in
counterparts with the same effect as if the signatures of each party were upon a
single instrument. All counterparts shall be deemed an original of this
Agreement.

                  7.7      Withholdings. All sums payable to Employee hereunder
shall be reduced by all Federal, state, local and other withholding and similar
taxes and payments required by applicable law.

                  7.8      Severability. If any provision of this Agreement is
held to be unenforceable for any reason, it shall be adjusted rather than
voided, if possible, in order to achieve the intent of the parties to the extent
possible. In any event, all other provisions of this Agreement shall be deemed
valid and enforceable to the full extent possible.

                  7.9      Entire Agreement; Modifications. Except as otherwise
provided herein, this Agreement, together with the Proprietary Information and
Inventions Agreement, represents the entire understanding between the parties
with respect to the subject matter hereof, and this Agreement together with the
Proprietary Information and Inventions Agreement supersedes any and all prior
understandings, agreements, plans and negotiations, written or oral, with
respect to the subject matter hereof. All modifications to the Agreement must be
in writing and signed by the party against whom enforcement of such modification
is sought, provided that no modification shall be enforceable against Identix
unless signed by the Chief Executive Officer of Identix, or such other officer
of the Company designated by the Board of Directors of Identix.

                  7.10     Review by Counsel to Employee. EMPLOYEE ACKNOWLEDGES
THAT SHE WAS HEREBY INFORMED BY THE COMPANY TO CONSULT WITH AN ATTORNEY; THAT
SHE HAS ENTERED INTO THIS AGREEMENT KNOWINGLY AND VOLUNTARILY WITH FULL
UNDERSTANDING OF ITS TERMS AND AFTER HAVING HAD THE OPPORTUNITY TO SEEK AND
RECEIVE ADVICE FROM COUNSEL OF HER CHOOSING; AND THAT SHE HAS BEEN OFFERED A
REASONABLE PERIOD OF TIME OF NO LESS THAN TWENTY-ONE DAYS WITHIN WHICH TO
CONSIDER THIS AGREEMENT.

                                       10

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                             IDENTIX INCORPORATED

                                             By_________________________________
                                               Name:
                                               Title:

                                             EMPLOYEE

                                             By_________________________________

                                       11

<PAGE>

                        ALL SCHEDULES HAVE BEEN REDACTED

                                       12

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