Document:

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                                                                   Exhibit 10.38

             AMENDMENT NO. 2 TO COMPENSATION CONTINUATION AGREEMENT

        This Amendment No. 2 to Compensation Continuation Agreement is dated as
of January 29, 2002 (the "Amendment") by and between Identix Incorporated, a
Delaware corporation ("Identix" or the "Company"), and James P. Scullion
("Employee").

        WHEREAS, Identix and Employee entered into that certain Compensation
Continuation Agreement dated as of January 5, 2000, as amended August 22, 2001
(the "Agreement") and desire in accordance with Section 10(i) of the Agreement
to make certain amendments thereto:

NOW, THEREFORE, in consideration of the foregoing premises, the parties hereto
hereby agree as follows:

        1. Term of Agreement. Section 1(c) of the Agreement is hereby amended to
read in its entirety as follows:

                "(c) `Expiration Date' means January 29, 2004."

        2. Effect. Except as expressly provided in this Amendment No. 2, the
Agreement has not been amended or modified and, as amended hereby, shall remain
in full force and effect.

        3. Counterparts. This Amendment may be executed in duplicate
counterparts, each of which shall be deemed to be an original.

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

IDENTIX INCORPORATED            EMPLOYEE

By   /s/ Robert McCashin                    By   /s/ James P. Scullion
  ---------------------------------           ----------------------------------
     Name:  Robert McCashin                      Name:  James P. Scullion
     Title: Chairman and CEO<PAGE>

                                                                   Exhibit 10.45

        SILICON VALLEY BANK

                           AMENDMENT TO LOAN DOCUMENTS

BORROWER: IDENTIX INCORPORATED
          IDENTIX PUBLIC SECTOR, INC.
          LEGISLATIVE DEMOGRAPHIC SERVICES, INC.

DATE:     MARCH 28, 2002

        THIS AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley
Bank ("Silicon") and the borrower named above ("Borrower").

        The Parties agree to amend the Loan and Security Agreement between them,
dated September 26, 2002 (as otherwise amended, if at all, the "Loan
Agreement"), as follows, effective as of the date hereof. (Capitalized terms
used but not defined in this Amendment shall have the meanings set forth in the
Loan Agreement.)

        1. MODIFIED CREDIT LIMIT. Section 1 of the Schedule to Loan and Security
Agreement is hereby amended in its entirety to read as follows:

                "1. CREDIT LIMIT
                    (Section 1.1):  An amount equal to the sum of A, B, C and
                                    D below:

                                    A. Non-Government Receivables Loans. An
                                    amount not to exceed the lesser of: (i)
                                    $7,500,000 at any one time outstanding (the
                                    "Maximum Non-Government Receivables Credit
                                    Limit"); or (ii) 80% (the "Percentage
                                    Advance Rate") of the amount of Borrower's
                                    Eligible Receivables (as defined in Section
                                    8 above) excluding, however, Borrower's
                                    Eligible Government Receivables (as defined
                                    below), if any.

                                    The foregoing Percentage Advance Rate is
                                    typically based on the quality of the
                                    Receivables and attendant Dilution as
                                    follows: up to 80% Percentage Advance Rate
                                    with Dilution less than or equal to 10%; up
                                    to 75% Percentage Advance Rate when Dilution
                                    is over 10% but less than or equal to 15%.
                                    If Dilution exceeds 15%, a Reserve is
                                    established for the dilution factor rounded
                                    up to the nearest whole number then
                                    multiplied by a factor of up to 70%.

                                    As used above, "Dilution" means all
                                    deductions from Receivables by Account
                                    Debtors of Borrower, other than those
                                    arising from payment thereof, and includes
                                    without

                                      -1-
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                                    limitation deductions arising from
                                    advertising and other allowances, credit
                                    memos, returns, bad debts, and all other
                                    deductions, as determined by Silicon's audit
                                    and for such period as Silicon shall
                                    determine. Changes in the Percentage Advance
                                    Rate based on Dilution shall go into effect
                                    when Silicon has determined the amount of
                                    the Dilution and given written notice to the
                                    Borrower of the change in the Percentage
                                    Advance Rate. If, as a result of a decrease
                                    in the Percentage Advance Rate, the total
                                    Loans and other Obligations exceed the
                                    Credit Limit, the Borrower shall pay the
                                    excess to Silicon in accordance with the
                                    terms of this Agreement.

                                    LETTER OF CREDIT
                                    SUBLIMIT
                                    (Section 1.5): $3,000,000.

                                    CASH MANAGEMENT
                                    SUBLIMIT
                                    (Section 1.6): $2,000,000.

                                    plus

                                    B. Government Receivables Loans. An amount
                                    not to exceed the lesser of: (i) $7,500,000
                                    at any one time outstanding (the "Maximum
                                    Government Receivables Credit Limit"); or
                                    (ii) 85% (the "Government Receivables
                                    Percentage Advance Rate") of the amount of
                                    Borrower's Eligible Government Receivables
                                    (defined as Receivables owing from the
                                    United States or any department, agency or
                                    instrumentality thereof ("Government
                                    Receivables") for which there has been
                                    compliance, to Silicon's satisfaction, with
                                    the United States Assignment of Claims Act
                                    and which are otherwise deemed Eligible
                                    Receivables (as defined in Section 8
                                    above)). The term "Receivables" (as defined
                                    in Section 8 above) includes Government
                                    Receivables.

                                    Provided Borrower maintains at all times a
                                    minimum of unrestricted cash (and cash
                                    equivalents) in accounts maintained at
                                    Silicon in an amount of not less than
                                    $10,000,000, the Government Receivables
                                    Percentage Advance Rate will remain at 85%.

                                    In the event such amount maintained in such
                                    accounts at Silicon falls below $10,000,000,
                                    the Government Receivables Percentage
                                    Advance Rate will be based not only on the
                                    quality of the Government Receivables but
                                    also on the attendant Dilution (as defined
                                    above) as follows: up

                                      -2-
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                                    to 85% Government Receivables Percentage
                                    Advance Rate with Dilution less than or
                                    equal to 5%; up to 80% Government
                                    Receivables Percentage Advance Rate with
                                    Dilution less than or equal to 10%; up to
                                    75% Government Receivables Percentage
                                    Advance Rate when Dilution is over 10% but
                                    less than or equal to 15%. If Dilution
                                    exceeds 15%, a Reserve is established for
                                    the dilution factor rounded up to the
                                    nearest whole number then multiplied by a
                                    factor of up to 70%.

                                    plus

                                    C. Cash Secured Letter of Credit. $50,000.
                                    Silicon previously issued for the account of
                                    Borrower a Standby Letter of Credit in the
                                    amount of $50,000 (the "Standby Letter of
                                    Credit"), which Standby Letter of Credit is
                                    secured by a certificate of deposit pledged
                                    to Silicon on Silicon's standard form
                                    documentation.

                                    plus

                                    D. Cash Secured Merchant Service Line.
                                    $5,000. Silicon and Borrower previously
                                    entered into a Merchant Services Agreement,
                                    on Silicon's standard form documentation,
                                    pursuant to which Borrower may utilize
                                    amounts of up to $5,000 at any one time
                                    outstanding for Silicon's merchant services
                                    as provided for in the Merchant Services
                                    Agreement (the "Merchant Service Line"). The
                                    Merchant Service Line is secured by a
                                    certificate of deposit pledged to Silicon on
                                    Silicon's standard form documentation.

                                    The term "Maximum Credit Limit" shall mean
                                    the sum of the Maximum Non-Government
                                    Receivables Credit Limit plus the Maximum
                                    Government Receivables Credit Limit. As used
                                    in this Agreement, the term "Loans" shall
                                    include loans made pursuant to any of the
                                    foregoing of A, B, C or D. Loans will be
                                    made to each Borrower based on the Eligible
                                    Receivables and Eligible Government
                                    Receivables, as applicable, of each
                                    Borrower, subject to the Maximum Credit
                                    Limit and, as applicable, the Maximum
                                    Non-Government Receivables Credit Limit and
                                    the Maximum Government Receivables Credit
                                    Limit set forth above for all Loans to all
                                    Borrowers combined.

        2. MODIFICATION TO CASH MANAGEMENT SUBLIMIT. Section 1.6 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                "1.6 CASH MANAGEMENT SERVICES AND RESERVES. Borrower may use up
                to $2,000,000 of Loans available hereunder for Silicon's Cash
                Management Services

                                      -3-
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                (as defined below), including, merchant services, business
                credit card, ACH and other services identified in the cash
                management services agreement related to such service (the "Cash
                Management Services"). Silicon may, in its sole discretion,
                reserve against Loans which would otherwise be available
                hereunder such sums as Silicon shall determine in connection
                with the Cash Management Services, and Silicon may charge to
                Borrower's Loan account, any amounts that may become due or
                owing to Silicon in connection with the Cash Management
                Services. Borrower agrees to execute and deliver to Silicon all
                standard form applications and agreements of Silicon in
                connection with the Cash Management Services, and, without
                limiting any of the terms of such applications and agreements,
                Borrower will pay all standard fees and charges of Silicon in
                connection with the Cash Management Services. The Cash
                Management Services shall terminate on the Maturity Date."

        3. MODIFIED INTEREST RATE. Section 2 of the Schedule to Loan and
Security Agreement is hereby amended in its entirety to read as follows:

                "2. INTEREST.

                        INTEREST RATE (Section 1.2):

                                    A rate equal to the "Prime Rate" in effect
                                    from time to time, plus 0.50% per annum.
                                    Interest shall be calculated on the basis of
                                    a 360-day year for the actual number of days
                                    elapsed. "Prime Rate" means the rate
                                    announced from time to time by Silicon as
                                    its "prime rate;" it is a base rate upon
                                    which other rates charged by Silicon are
                                    based, and it is not necessarily the best
                                    rate available at Silicon. The interest rate
                                    applicable to the Obligations shall change
                                    on each date there is a change in the Prime
                                    Rate.

                        MINIMUM MONTHLY
                        INTEREST (Section 1.2): Not Applicable."

        4. ACKNOWLEDGEMENT OF RECEIPT OF LOAN FEE. Silicon hereby acknowledges
that the $75,000 Loan Fee identified in Section 3 of the Schedule to Loan and
Security Agreement has been paid by Borrower and received by Silicon.

        5. MODIFIED COLLATERAL MONITORING FEE. The Collateral Monitoring Fee set
forth in Section 3 of the Schedule to Loan and Security Agreement is hereby
amended in its entirety to read as follows:

                                      -4-
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               "Collateral
               Monitoring Fee:      $500, per month, payable in arrears
                                    (prorated for any partial month at the
                                    beginning and at termination of this
                                    Agreement); provided, however, so long as
                                    the Streamline Facility Agreement dated
                                    September 26, 2001 is in effect, no
                                    Collateral Monitoring Fee will be charged."

        6. DELETION OF UNUSED LINE FEE. The Unused Line Fee set forth in Section
3 of the Schedule to Loan and Security Agreement that currently reads as
follows:

               "Unused Line Fee:    Borrower shall pay Silicon an Unused Line
                                    Fee, in addition to all interest and other
                                    fees payable hereunder. The amount of the
                                    Unused Line Fee shall be 0.125% per annum
                                    multiplied by an amount equal to the Maximum
                                    Credit Limit minus the average daily balance
                                    of the outstanding Loans. The Unused Line
                                    Fee shall be computed and paid monthly, in
                                    arrears (prorated for any partial calendar
                                    month at the beginning and at termination of
                                    this Agreement), and shall be due on the
                                    last calendar day of each month."

is hereby deleted.

        7. MODIFIED MATURITY DATE. Section 4 of the Schedule to Loan and
Security Agreement is hereby amended in its entirety to read as follows:

                "4. MATURITY DATE
                  (Section 6.1):    March 28, 2003; provided, however, the
                                    Maturity Date with respect to the Merchant
                                    Service Line shall be October 4, 2002."

        8. MODIFIED TANGIBLE NET WORTH FINANCIAL COVENANT. The Tangible Net
Worth Financial Covenant set forth in Section 5 of the Schedule to Loan and
Security Agreement is hereby amended in its entirety to read as follows:

                "MINIMUM TANGIBLE
                NET WORTH:          As of the end of each month, Identix
                                    Incorporated shall maintain, on a
                                    consolidated basis, a Tangible Net Worth of
                                    not less than the following: $25,000,000,
                                    plus 50% of the total consideration received
                                    by Borrower after February 28, 2002, in
                                    consideration for the issuance by Borrower
                                    of its equity securities and subordinated
                                    debt securities, effective on the date such
                                    consideration is received."

        9. MODIFIED COVENANT REGARDING COPYRIGHT FILINGS. Subclause (3) of
Section 9 of the Schedule to Loan and Security Agreement is hereby amended in
its entirety to read as follows:

                "(3) COPYRIGHT FILINGS. Identix Incorporated previously executed
                and delivered to Silicon a Collateral Assignment, Patent
                Mortgage and Security Agreement

                                      -5-
<PAGE>

                between Identix Incorporated and Silicon (the "Identix
                Intellectual Property Agreement"). Provided Borrower maintains
                at all times a minimum of unrestricted cash (and cash
                equivalents) in accounts maintained at Silicon in an amount of
                not less than $20,000,000 (the "Minimum Cash Deposit"), Borrower
                shall not be required to: (i) cause all of its copyrights and
                computer software, the licensing of which results in Receivables
                or which are necessary to operate (or which are otherwise
                material to) the hardware and other products manufactured and/or
                sold by Borrower, to be registered with the United States
                Copyright Office, (ii) complete the Exhibits to the Intellectual
                Property Agreement with all of the information called for with
                respect to such copyrights, software and other intellectual
                property, (iii) cause the Intellectual Property Agreement to be
                recorded in the United States Copyright Office and, if
                applicable, the United States Patent and Trademark Office, and
                (iv) provide evidence of such recordation to Silicon (items (i)
                through (iv) above are hereinafter referred to as the "IP
                Requirements"). In the event the amount of the Minimum Cash
                Deposit falls below $20,000,000, each Borrower shall within 30
                days thereafter, comply with the IP Requirements (and, to the
                extent necessary, execute and deliver to Silicon an Intellectual
                Property Agreement in form and substance similar to the Identix
                Intellectual Property Agreement)."

        10. MODIFIED COVENANT REGARDING IDENTICATOR TECHNOLOGY, BIOMETRIC
APPLICATIONS AND TECHNOLOGY, INC. AND iTRUST, INC. Sublease (10) of Section 9 of
the Schedule to Loan and Security Agreement is hereby amended in its entirety to
read as follows:

                "(10) IDENTICATOR TECHNOLOGY, INC., BIOMETRIC APPLICATIONS AND
                TECHNOLOGY, INC. AND iTRUST, INC. Borrower represents and
                warrants that each of Identicator Technology, Inc.
                ("Identicator"), Biometric Applications and Technology, Inc.
                ("Biometric") and iTrust, Inc. ("iTrust") is a wholly owned
                subsidiary of Identix Incorporated and each has little or no
                assets. In addition, Borrower represents and warrants that it
                intends to commence the process of dissolution of each of
                Identicator and Biometric in the near future. Borrower covenants
                and agrees that while this Agreement is in effect, Borrower
                shall not transfer any assets or Collateral to any of
                Identicator, Biometrics or, except if prior written consent of
                Silicon is obtained, iTrust. Borrower further covenants and
                agrees that by the earlier of (i) July 31, 2002 or (ii) the date
                Borrower requests its initial Loan from Silicon under this
                Agreement, Borrower shall have caused each of Identicator,
                Biometrics and iTrust to have either (a) been legally dissolved
                and evidence thereof provided to Silicon that is satisfactory to
                Silicon in its discretion or (b) executed in favor of Silicon,
                on Silicon's standard form, a Continuing Guaranty, Security
                Agreement and other related documents that Silicon deems
                necessary."

        11. MODIFICATION REGARDING CONCENTRATION LIMIT. That certain sentence in
the definition of "Eligible Receivables" set forth in Section 8 of the Loan
Agreement that currently reads as follows:

                "Receivables owing from one Account Debtor will not be deemed
                Eligible Receivables to the extent they exceed 25% of the total
                Receivables outstanding."

is hereby amended to read as follows:

                                      -6-
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                "Receivables owing from one Account Debtor will not be deemed
                Eligible Receivables to the extent they exceed 25% of the total
                Receivables outstanding; provided, however, Government
                Receivables owing from one Account Debtor will not be deemed
                Eligible Government Receivables to the extent they exceed 50% of
                the total Government Receivables outstanding."

        12. MODIFICATION TO STREAMLINE FACILITY AGREEMENT. Section 1 of that
certain Streamline Facility Agreement dated September 26, 2001 and executed by
and between the parties in conjunction with the Loan Agreement is hereby amended
in its entirety to read as follows:

                "1. Monthly Financial Statements and Compliance Certificate;
                Quarterly Borrowing Base. While this Streamline Facility
                Agreement is in effect, within 20 days after the end of each
                fiscal quarter, Borrower shall deliver to Silicon a Borrowing
                Base Certificate signed by the Chief Executive Officer,
                President, Chief Financial Officer or Controller of Borrower in
                substantially the form of Exhibit A hereto, together with aged
                listings of accounts receivable and accounts payable, inventory
                reports, account reconciliations and transaction reports
                including sales, credit memoranda and collection journals.
                Notwithstanding the foregoing, Borrower shall provide Silicon
                with monthly unaudited financial statements and monthly
                Compliance Certificates all as required and as set forth in the
                Loan Documents. Additionally, except as otherwise modified by
                the terms of this Streamline Facility Agreement, Borrower shall
                comply with all other reporting requirements as set forth in the
                Loan Documents."

        13. SUNTRUST DEPOSIT ACCOUNT CONTROL AGREEMENT. Within 45 days after the
date of this Amendment, Borrower shall cause Suntrust Bank to execute and
deliver to Silicon, on Silicon's standard form (with such changes as shall be
acceptable to Silicon in its discretion), a Deposit Account Control Agreement
with respect to all accounts maintained by Borrower at such financial
institution.

        14. REPRESENTATIONS TRUE. Borrower represents and warrants to Silicon
that all representations and warranties set forth in the Loan Agreement, as
amended hereby, are true and correct.

        15. GENERAL PROVISIONS. This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Silicon and Borrower, and the
other written documents and agreements between Silicon and Borrower set forth in
full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations,
agreements and understandings between the parties with respect to the subject
hereof. Except as herein expressly amended, all of the terms and provisions of
the Loan Agreement, and all other documents and agreements between Silicon and
Borrower shall continue in full force and effect and the same are hereby
ratified and confirmed.

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BORROWER:                                   SILICON:

IDENTIX INCORPORATED                        SILICON VALLEY BANK

BY /s/ Erik E. Prusch                       BY /s/ Chitra
   --------------------------------           ----------------------------------
   PRESIDENT OR VICE PRESIDENT              TITLE Acct. Mgr.

BY /s/ Mark S. Molina
   --------------------------------
   SECRETARY OR ASS'T SECRETARY

BORROWER:

IDENTIX PUBLIC SECTOR, INC.

BY /s/ Erik E. Prusch
   --------------------------------
   PRESIDENT OR VICE PRESIDENT

BY /s/ Mark S. Molina
   --------------------------------
   SECRETARY OR ASS'T SECRETARY

BORROWER:

LEGISLATIVE DEMOGRAPHIC SERVICES, INC.

BY /s/ Erik E. Prusch
   --------------------------------
   PRESIDENT OR VICE PRESIDENT

BY /s/ Mark S. Molina
   --------------------------------
   SECRETARY OR ASS'T SECRETARY

                                      -8-

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