Document:

EXHIBIT
      10.3

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      AGREEMENT, effective as of March 15, 2008 (the “Effective Date”) by and between
      Intelli-Check - Mobilisa, Inc., a Delaware corporation (the “Company”), and
      Nelson Ludlow (“Employee”).

     

    WITNESSETH
      THAT:

     

    WHEREAS,
      the Company desires to employ Employee as an employee on the terms hereinafter
      set forth and Employee wishes to be so employed;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and promises hereinafter
      set
      forth and for other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the Company and Employee hereby agree as
      follows:

     

    1. Employment.
      Upon
      the terms and subject to the conditions contained in this Agreement, the Company
      agrees to employ Employee and Employee accepts such employment. Employee shall
      report directly to, and be subject to the supervision and direction of, the
      Board of Directors (the “Board”) of the Company. 

     

    2. Title
      and Duties.
      Employee will hold the title of “Chief Executive Officer.” Employee agrees to
      devote substantially all of his working time, attention, skill and effort during
      normal working hours to the performance of his duties to the Company. Employee
      agrees to perform such duties during such time faithfully and to the best of
      his
      abilities. Such duties shall be ordinarily performed by Employee at the offices
      of the Company, the headquarters of which shall be based at 191 Otto Street,
      Port Townsend, WA 98368. 

     

    3. Compensation.
      For all
      services rendered by Employee to the Company during the Term (as such term
      is
      later defined), the Company shall compensate Employee as follows:

     

    
      	 	
              a.

            	
              Salary.
                Employee shall be paid a base annual salary of $220,000. Such base
                annual
                salary is subject to annual review by the Board, in its sole discretion.
                Such salary shall be payable in accordance with the Company’s payroll
                procedures for salaried employees, but not less frequently than monthly.
                

            

    

     

    
      	 	
              b.

            	
              Bonus.
                The Company shall pay Employee an annual cash bonus in an amount
                to be
                determined by the Board based on such reasonable objectives established
                by
                the Board.

            

    

     

    
      	 	
              c.

            	
              Stock
                Options.
                The Company shall issue and grant Employee 25,000 stock options on
                March
                20, 2008, which will immediately vest. Employee shall enter into
                a stock
                option agreement with the Company, substantially in the form of Exhibit
                B
                attached hereto, 

            

    

     

    
      	 	
              d.

            	
              Expense
                Reimbursement. 
                Employee shall be reimbursed for all authorized business expenses
                which
                are incurred by Employee in the performance of Employee’s duties pursuant
                to this Agreement in accordance with the Company’s normal expense
                reimbursement policies. All such expenses shall be incurred in a
                manner
                consistent with the Company’s expense reimbursement policy and shall be
                appropriately documented in reasonable detail by Employee upon submission
                of any request for reimbursement, and in a format and manner consistent
                with the Company’s expense reimbursement policy.
                

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              e.

            	
              Benefits.
                Subject to any contribution generally required of Company executives,
                Employee shall be entitled to receive all executive perquisites and
                to
                participate in any and all employee benefit plans, including medical
                insurance and pension plans, now in existence or hereafter adopted
                from
                time to time by the Company which are provided to senior management
                or
                other comparable employees at Employee’s level.

            

    

     

    
      	 	
              f.

            	
              Withholding.
                All amounts payable to Employee pursuant to this Agreement shall
                be made
                subject to all applicable withholding. Employee will not be entitled
                to
                receive any compensation other than as provided in this
                Section.

            

    

     

    4. Non-competition
      and Non-Solicitation.
      In
      consideration of Employee’s employment and continued employment by the Company,
      concurrently with the execution and delivery of this Agreement, Employee shall
      execute and deliver a Non-competition and Non-Solicitation Agreement in the
      form
      attached hereto as Exhibit
      A
      (the
“Non-competition and Non-Solicitation Agreement”). The Non-competition and
      Non-Solicitation Agreement is hereby incorporated herein by reference and made
      a
      part hereof.

     

    5. Term
      and Termination.
      The
“Term” of this Agreement shall begin on the date hereof and shall continue for a
      period of two (2) years from the date hereof. Notwithstanding the previous
      sentence, the Term can be terminated in any one of the followings
      ways:

     

    
      	 	
              a.

            	
              Death.
                The death of Employee shall immediately terminate this Agreement.
                Upon
                such termination, Employee shall be entitled to receive all cash
                compensation earned and all reimbursements due through the effective
                date
                of termination. 

            

    

     

    
      	 	
              b.

            	
              Disability.
                If Employee is no longer able to perform his duties hereunder due
                to
                illness, accident or other physical or mental condition and such
                disability is expected to continue with or without interruption for
                a
                period of ninety (90) days or longer, the Company may terminate this
                Agreement. Upon such termination, Employee shall be entitled to receive
                all cash compensation earned and all reimbursements due through the
                effective date of termination.

            

    

     

    
      	 	
              c.

            	
              With
                Company Cause.
                The Company
                may terminate this Agreement for Company Cause (as defined herein)
                upon
                written notice to Employee. “Company Cause” shall mean: (1) Employee’s
                conviction in a court of law of any felony or any plea of nolo contendre
                with respect thereto; (2) Employee’s continued, willful failure or refusal
                to perform specific written and reasonable directives of the Board
                regarding Employee’s duties and responsibilities which are consistent with
                the scope and nature of Employee’s duties and responsibilities as set
                forth in Section 0
                hereof; (3) any flagrant act of dishonesty or disloyalty by Employee,
                or
                any act involving gross moral turpitude of Employee; or (4) any breach
                of
                the Non-competition and Non-Solicitation Agreement, which breach
                is
                uncured for a period of ten (10) days following written notice by
                the
                Company of the need to cure such breach. Upon a termination for Company
                Cause, Employee shall be entitled to receive all cash compensation
                earned
                and all reimbursements due through the effective date of termination.
                

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	 	
              d.

            	
              Without
                Company Cause.
                This Agreement and the Term may be terminated without Company Cause
                by the
                Company at any time after the Initial Term upon written notice to
                Employee. Upon a termination by the Company without Company Cause:
                (i)
                Employee shall be entitled to receive all compensation earned and
                all
                reimbursements due through the effective date of termination; and
                (ii)
                Employee shall be entitled to receive a severance payment in an amount
                equal to one
                year of base salary at the time of termination paid over 12 equal
                monthly
                payments.

            

    

     

    
      	 	
              e.

            	
              With
                Employee Cause.
                Employee
                may terminate this Agreement for Employee Cause (as defined herein)
                upon
                written notice to the Company. “Employee Cause” shall mean the breach by
                the Company of any covenant, agreement or condition contained in
                this
                Agreement which breach is uncured for a period of ten (10) days following
                written notice by Employee of the need to cure such breach. Upon
                a
                termination for Employee Cause, Employee shall be entitled to receive
                all
                compensation earned and all reimbursements due through the effective
                date
                of termination and an amount equal to $50,000.

            

    

     

    
      	 	
              f.

            	
              Without
                Employee Cause.
                This Agreement and the Term may be terminated by Employee at any
                time
                without Employee Cause upon sixty (60) days written notice to the
                Company.
                Upon a termination by Employee without Employee Cause, Employee shall
                be
                entitled to receive all cash compensation earned and all reimbursements
                due through the effective date of
                termination.

            

    

     

    
      	 	
              g.

            	
              Effect
                of Termination.
                Upon any termination of this Agreement and the Term, all rights and
                obligations of the Company and Employee under this Agreement shall
                cease,
                except that Employee’s obligations under Section 0
                and any applicable specific payment obligations of the Company under
                this
                Section 0
                shall remain in full force and effect in accordance with their terms.
                Any
                such termination shall not affect the Non-competition and Non-Solicitation
                Agreement or any other agreement between the Company and Employee,
                each of
                which shall remain in full force and effect in accordance with its
                terms.

            

    

     

    Upon
      any
      termination, Employee shall return all property, equipment and materials that
      are the property of the Company and shall use his reasonable efforts to
      cooperate with the Company and provide for a smooth transition of Employee’s
      duties to a new employee or executive.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    6. Amendment
      and Alteration.
      This
      Agreement constitutes the complete understanding between the parties with
      respect to the employment of Employee hereunder, and no statement,
      representation, warranty or covenant has been made by either party with respect
      thereto except as expressly set forth herein. This Agreement shall not be
      altered, modified, amended or terminated except by a written instrument signed
      by each of the parties thereto.

     

    7. Severability.
      If any
      covenant or other provision of this Agreement is invalid, unlawful, or incapable
      of being enforced, by reason of any rule of law or public policy, it shall
      be
      enforceable to the maximum extent permitted by law and all other conditions
      and
      provisions of this Agreement which can be given effect without the invalid,
      unlawful or unenforceable provision, shall be given effect.

     

    8. Non-Assignment.
      The
      obligations and rights of Employee shall inure to the benefit of, and shall
      be
      binding upon, himself and his personal representatives, and the obligations
      and
      rights of the Company shall inure to the benefit of, and shall be binding upon,
      it and its successors and assigns; provided,
      however, that Employee shall not have the right to assign any of his obligations
      under this Agreement.

     

    9. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York. The parties expressly consent to the exclusive
      jurisdiction of the courts (Federal and state) in the City of New York, New
      York
      for any judicial proceeding involving, directly or indirectly, any matter or
      claim in any way arising out of, related to or connected herewith.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

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

     

    
      	
              Company:

            	 	
              Employee:

            
	 	 	 
	
              INTELLI-CHECK
                - MOBILISA, INC.

            	 	
              NELSON
                LUDLOW

            
	 	 	 	 
	
              By:

            	
              /s/
                Jeffrey Levy

            	 	
              /s/
                Nelson Ludlow

            
	
              Name:
                Jeffrey Levy

            	 	 
	
              Title:
                Chairman of the Board

            	 	 

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    EXHIBIT
      10.3

     

    Exhibit
      A

     

    Form
      of Non-competition and Non-Solicitation Agreement

     

    The
      undersigned, Nelson Ludlow, in consideration for and as a condition of his
      employment as an employee of the Company (the “Employee”), does hereby agree
      with the Company as follows:

     

    1. Non-competition
      Covenant.
      During
      the period of employment as an Employee, the Employee shall devote substantially
      all of his available business time and best efforts to promoting and advancing
      the business of the Company. During the period of employment as an Employee
      and
      for a period of two (2) years after termination of such employment (for any
      reason, whether voluntarily or involuntarily), the Employee agrees that he
      shall
      not engage in, whether alone or as a partner, member, officer, director,
      consultant, agent, employee or stockholder of any commercial entity, any
      activity which is or may be competitive with the products and services being
      designed, conceived, marketed, provided, distributed, delivered or developed
      by
      the Company at the time of termination of such employment; provided,
      however, that the ownership of less than 1% of the stock of any corporation
      whose stock is traded on a national securities exchange or in the
      over-the-counter market shall not be a violation of this Section 1. During
      the
      period of employment as an Employee and while all restrictions contained herein
      apply, the Employee shall inform all prospective employers and business partners
      of such restrictions prior to acceptance of or entering into new employment
      or
      other business arrangement.

     

    2. Non-solicitation.
      

     

    a. Of
      Customers.
      During
      the period of employment as an Employee and for a period of two (2) years after
      termination of such employment (for any reason, whether voluntarily or
      involuntarily), the Employee shall not directly or indirectly either for himself
      or for any other commercial entity, solicit, divert or perform any services
      for
      or attempt to solicit, divert or perform any services for, any of the Company’s
      customers, prospective customers or business in existence at the time of
      termination of such employment. For purposes of this Agreement, “customers”
shall include those customers that were customers of the Company within the
      twelve (12) month period prior to the Employee’s termination. For purposes of
      this Agreement, “prospective customers” shall include those persons and entities
      with which the Company has had discussions regarding, or to which the Company
      has made presentations for, business within the twelve (12) month period prior
      to the Employee’s termination. During the period of employment as an Employee
      and while all restrictions contained herein apply, the Employee shall inform
      all
      prospective employers and business partners of such restrictions prior to
      acceptance of or entering into new employment or other business
      arrangement.

     

    b. Of
      Employees.
      During
      the period of employment by the Company and for a period of two (2) years after
      termination of such employment (for any reason, whether voluntarily or
      involuntarily), the Employee shall not directly or indirectly either for himself
      or for any commercial entity, solicit, recruit, attempt to recruit, hire or
      attempt to hire any of the Company’s employees. For purposes of this Agreement,
“employees” shall include those persons employed by the Company on the date of
      such termination and during the one (1) year period thereafter and employees
      that were employees of the Company within the six (6) month period prior to
      the
      Employee’s termination. During the period of employment as an Employee and while
      all restrictions contained herein apply, the Employee shall inform all
      prospective employers and business partners of such restrictions prior to
      acceptance of or entering into new employment or other business
      arrangement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Confidentiality.
      Employee shall not, at any time during or following termination or expiration
      of
      the term of this Agreement, directly or indirectly, disclose, publish or divulge
      to any person (except in the regular course of the Company's business), or
      appropriate, use or cause, permit or induce any person to appropriate or use,
      any proprietary, secret or confidential information of the Company including,
      without limitation, knowledge or information relating to its trade secrets,
      business methods, the names or requirements of customers or the prices, credit
      or other terms extended to its customers, all of which Employee agrees are
      and
      will be of great value to Company and shall at all times be kept confidential.
      Upon termination or expiration of this Agreement, Employee shall promptly
      deliver or return to Company all materials of a proprietary, secret or
      confidential nature relating to Company together with any other property of
      Company which may have theretofore been delivered to or may be in possession
      of
      Employee.

     

    4. Absence
      of Conflicting Agreements.
      The
      Employee represents that he is not bound by any agreement or any other existing
      or previous business relationship that conflicts with or prevents the full
      performance of the Employee’s duties and obligations to the Company during the
      course of employment and while all restrictions contained herein
      apply.

     

    5. Remedies
      Upon Breach.
      The
      Employee agrees that any breach of this Agreement by the Employee would cause
      irreparable damage to the Company. The Company shall have, in addition to any
      and all remedies under this Agreement and in law or equity, the right to an
      injunction or other equitable relief to prevent any violation of the Employee’s
      obligations hereunder, without the necessity of posting a bond or proving
      special damages.

     

    6. No
      Employment Obligation.
      The
      Employee understands that this Agreement does not create an obligation on the
      part of the Company to continue the Employee’s employment with the Company but
      instead is a condition to the Employee’s initial employment, as the case may be.

     

    7. Miscellaneous.
      As used
      herein, the term “Company” shall include the Company, its members, subsidiaries
      and affiliates. Any waiver by the Company of a breach of any provisions of
      this
      Agreement shall not operate or be construed as a waiver of any subsequent breach
      hereof. This Agreement contains all oral and written agreements, representations
      and arrangements between the parties with respect to its subject matter, and
      no
      representations or warranties are made or implied, except as specifically set
      forth herein. No modification, waiver or amendment of any of the provisions
      of
      this Agreement shall be effective unless in writing and signed by both parties
      to this Agreement. If one or more of the provisions contained in this Agreement
      shall for any reason be held to be excessively broad as to scope, activity
      or
      subject matter so as to be unenforceable at law, such provision(s) shall be
      construed and reformed by the appropriate judicial body by limiting and reducing
      it (or them), so as to be enforceable to the maximum extent compatible with
      the
      applicable law as it shall then appear. The obligations of the Employee under
      this Agreement shall survive the termination of the Employee’s relationship with
      the Company regardless of the manner of such termination. This Agreement may
      not
      be assigned by Employee. All covenants and agreements hereunder shall inure
      to
      the benefit of and be enforceable by the successors of the Company. This
      Agreement shall be interpreted and construed pursuant to the laws of the State
      of New York, regardless of the laws that might otherwise govern under applicable
      principles of conflicts of law. The parties hereto hereby consent to personal
      jurisdiction and venue exclusively in the City of New York, New York with
      respect to any action or proceeding brought with respect to this Agreement.
      Each
      party will bear its own costs in respect of any disputes arising under this
      Agreement. The Employee recognizes and agrees that the enforcement of this
      Agreement is necessary to ensure the preservation, protection and continuity
      of
      the goodwill of the Company. The Employee agrees that, due to the proprietary
      nature of the Company’s business, the restrictions set forth in Sections 1 and 2
      of this Agreement are reasonable as to duration and scope.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the undersigned Employee and the Company have executed this
      Agreement as of this day of .

     

    
      	
              INTELLI-CHECK
                - MOBILISA, INC.

            
	 	 
	
              By:

            	
              /s/
                Jeffrey Levy

            
	
              Name:
                Jeffrey Levy

            
	
              Title:
                Chairman of the Board

            
	 
	
              EMPLOYEE:

            
	 
	
              /s/
                Nelson Ludlow

            
	
              Name:
                Nelson Ludlow

            
	
              Title:
                Chief Executive Officer

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    Exhibit
      B

     

    STOCK
      OPTION AGREEMENT

    

    Intelli-Check
      - Mobilisa, Inc., a Delaware corporation (the “Company”), as of the
      20th
      day of
      March, 2008 hereby grants to Nelson Ludlow (“Optionee”), residing at 73
      Goldfinch Lane, Port Ludlow, WA 98365 in consideration of services rendered
      by
      Optionee to the Company, the irrevocable right and option (“Option”) to purchase
      all or part of an aggregate of 25,000 shares (“Shares”) of the Company’s common
      stock, par value $.01 per share (“Common Stock”), on the terms and conditions
      hereinafter set forth:

    
      	
              1.

            	
              Purchase
                Price.
                The purchase price for the Shares shall be 110% of the closing price
                on
                the date of grant subject to adjustment as provided in Paragraph
                5
                below.

            

    

    
      	
              2.

            	
              Term
                of Option: Exercise. 

            

    

    
      	 	
              (a)

            	
              Subject
                to earlier termination pursuant hereto, the Option shall terminate
                ten
                (10) years from the date hereof. The Option shall vest all shares
                on March
                20, 2008. 

            

    

    
      	 	
              (b)

            	
              The
                Option shall be exercised by fifteen (15) days written notice to
                the
                Secretary or Treasurer of the Company at its then principal office.
                The
                notice shall specify the number of Shares as to which the Option
                is being
                exercised and shall be accompanied by payment in full of the purchase
                price for such Shares. The option price shall be payable in United
                States
                dollars, and may be paid in cash or by certified check on a United
                States
                bank or by other means acceptable to the Company. In no event shall
                the
                Company be required to issue any Shares (i) until counsel for the
                Company
                determines that the Company has complied with all applicable securities
                exchange or the National Association of Security Dealers Automated
                Quotation System on which the Common Stock may then be listed, and
                (ii)
                unless Optionee reimburses the Company for any tax withholding required
                and supplies the Company with such information and data as the Company
                may
                deem necessary.

            

    

    
      	 	
              (c)

            	
              Optionee
                shall not, by virtue of the granting of the Option, be entitled to
                any
                rights of a shareholder in the Company and shall not be considered
                a
                record holder of any Shares purchased by Optionee until the date
                on which
                Optionee shall actually be recorded as the holder of such Shares
                upon the
                stock records of the Company. The Company shall not be required to
                issue
                any fractional Share upon exercise of the Option and shall not be
                required
                to pay to Optionee the cash equivalent of any fractional Share
                interest.

            

    

    
      	
              3.

            	
              Restrictions
                on Transfer and Termination. 

            

    

    
      	 	
              (a)

            	
              No
                option shall be transferred by Optionee otherwise than by will or
                by the
                laws of descent and distribution. During the lifetime of Optionee
                the
                Option shall be exercisable only by Optionee or by Optionee’s legal
                representative.

            

    

    
      	 	
              (b)

            	
              In
                the event of the termination of Optionee’s employment by the Company at
                any time for cause, the Option and all rights there under shall terminate.
                Should the employee end his employment prior to the termination date
                then
                the Option and all rights thereunder shall be exercisable by Optionee
                at
                any time within three (3) months thereafter, but not later than the
                termination date of the Option. Notwithstanding the foregoing, in
                the
                event Optionee is permanently and totally disabled (within the meaning
                of
                Section 105(d) (4), or any successor section, of the Internal Revenue
                Code), Optionee’s Option and all rights thereunder shall be exercisable by
                Optionee (or Optionee’s legal representative) at any time within six (6)
                months of Optionee’s termination of employment, but not later than the
                termination date of the Option.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	 	
              (c)

            	
              If
                Optionee shall die while in the employ of the Company, the Option
                may be
                exercised by Optionee’s designated beneficiary or beneficiaries (or if
                none have been effectively designated, by Optionee’s executor,
                administrator or the person to whom Optionee’s rights under the Option
                shall pass by Optionee’s will or by the laws of descent and distribution)
                at any time within six (6) months after the date of Optionee’s death, but
                not later than the termination date of the
                Option.

            

    

    
      	 	
              (d)

            	
              This
                Option is granted pursuant to an Employment Agreement between Company
                and
                Optionee dated March 15, which Employment Agreement governs Optionee’s
                rights and obligations as an employee including, without limitation,
                Company’s right to terminate Optionee’s employment under certain
                circumstances, and nothing in this Agreement shall confer upon Optionee
                any additional rights with respect to the terms and conditions of
                Optionee’s employment.

            

    

    
      	
              4

            	
              Securities
                Act Matters.

            

    

    
      	 	
              (a)

            	
              Optionee
                represents that Shares issued upon any exercise of the Option will
                be
                acquired for Optionee’s own account for investment only and not with a
                view to the distribution thereof within the meaning of the Federal
                Securities Act of 1933, as amended (hereinafter, together with the
                rules
                and regulations thereunder, collectively referred to as the “Act”), and
                that Optionee does not intend to divide Optionee’s participation with
                others or transfer or otherwise dispose of all or any Shares except
                as
                below set forth. As herein used the terms “transfer” and “dispose” mean
                and include, without limitation, any sale, offer for sale, assignment,
                gift, pledge or other disposition or attempted
                disposition.

            

    

    
      	 	
              (b)

            	
              Optionee
                understands that in the opinion of the Securities and Exchange Commission
                (“SEC”) Shares must be held by Optionee for an indefinite period unless
                subsequently registered under the Act or unless an exemption from
                registration thereunder is available; that, under Rule 144 of the
                Act,
                after one or more years from the date of payment for and issuance
                of the
                shares, certain public sales thereof (which may be limited as to
                the
                number of Shares) may be made in accordance with the subject to the
                terms,
                conditions and restrictions of Rule 144, but only if certain reporting
                and
                other requirements thereunder have been complied with; and that should
                Rule 144 be inapplicable, registration or the availability of an
                exemption
                under the Act will be necessary in order to permit public distribution
                of
                any Shares. Optionee also understands that the Company is and will
                be
                under no obligation to register the Shares or to comply with any
                exemption
                under the Act.

            

    

    
      	 	
              (c)

            	
              Optionee
                shall not at any time transfer or dispose of any Shares except pursuant
                to
                either (i) a registration statement under the Act which registration
                statement has become effective as to the Shares being sold or (ii)
                a
                specific exemption from registration under the Act, but only after
                Optionee has first obtained either a “no-action” letter from the SEC,
                following full and adequate disclosure of all facts relating to such
                proposed transfer, or a favorable opinion from or acceptable to counsel
                to
                the Company that the proposed transfer or other disposition complies
                with
                and is not in violation of the Act or any applicable state “blue sky” or
                securities laws.

            

    

    
      	
              5.

            	
              Anti-Dilution
                Provisions.

            

    

    
      	 	
              (a)

            	
              Subject
                to the provisions of Paragraph 5(b) below, if at any time or from
                time to
                time prior to expiration of the Option there shall occur any change
                in the
                outstanding Common Stock of the Company by reason of any stock dividend,
                stock split, combination or exchange of shares, merger, consolidation,
                recapitalization, reorganization, liquidation or the like, then and
                as
                often as the same shall occur, the kind and number of Shares subject
                to
                the Option, or the purchase price per share, or both, shall be adjusted
                by
                the Board of Directors of the Company (”Board”) in such manner as it may
                deem appropriate and equitable, the determination of which Board
                shall be
                binding and conclusive. Failure of the Board to provide for any such
                adjustment shall be conclusive evidence that no adjustment is
                required.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	 	
              (b)

            	
              The
                Board shall have the right to engage a firm of independent certified
                public accountants, which may be the Company’s regular auditors, to make
                any computation provided for in this Section, and a certificate of
                that
                firm showing the required adjustment shall be conclusive and binding.
                

            

    

    
      	
              6.

            	
              Notices.
                All notices and other communications required or permitted under
                this
                Agreement shall be in writing and shall be given either by (i) personal
                delivery or regular mail, in each case against receipt, or (ii) first
                class registered or certified mail, return receipt requested. Any
                such
                communication shall be deemed to have been given (i) on the date
                of
                receipt in the cases referred to in clause (i) of the preceding sentence
                and (ii) on the second day after the date of mailing in the cases
                referred
                to in clause (ii) of the preceding sentence. All such communications
                to
                the Company shall be addressed to it, to the attention of its Secretary
                or
                Treasurer, at its then principal office and to Optionee at the address
                set
                forth above or such other address as may be designated by like notice
                hereunder.

            

    

    
      	
              7.

            	
              Miscellaneous.
                This Agreement cannot be changed except in writing signed by the
                party to
                be charged. This Agreement shall be governed by and construed in
                accordance with the laws of the State of New York applicable to agreements
                made and to be performed exclusively in New York. The Option has
                been
                granted pursuant to the Company’s 2004 Stock Option Plan. This Agreement
                is in all respects subject to the terms and conditions of said Plan.
                The
                Option granted hereunder is intended to be a Non-Qualified Stock
                Option.
                Optionee acknowledges that Optionee is not holding any other stock
                options
                granted by the Company. Optionee shall execute this Agreement and
                return
                it to the Company within thirty (30) days after the mailing or delivery
                by
                the Company of this Agreement. If Optionee shall fail to execute
                and
                return this Agreement to the Company within said thirty (30) day
                period,
                the Option shall automatically terminate. The section headings in
                this
                Agreement are solely for convenience of reference and shall not affect
                its
                meaning or interpretation.

            

    

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
      first above written.

     

    
      	
              INTELLI-CHECK
                - MOBILISA, INC.

            
	 	 
	
              By:

            	  

	 	 
	
              Optionee:

            
	 
	  

	
                        
                Name

            

    

     

    
      
         

      

      
        6INDIA GLOBALIZATION CAPITAL, INC.
                         Share Redistribution Agreement

                             Effective March 7, 2008

      Reference is made to the proposed acquisition by India Globalization
Capital, Inc. ("IGC") of a majority equity interest in each of Sricon
Infrastructure Private Limited and Techni Bharathi Limited (collectively, the
"Acquisition").

      Reference is also made to that certain Escrow Agreement dated as of March
2, 2006 by and between Continental Stock Transfer & Trust Company, as escrow
agent (the "Escrow Agent") and each of Ram Mukunda ("Mukunda"), John Cherin
("Cherin"), Ranga Krishna ("Krishna"), Parveen Mukunda, Sudhakar Shenoy, Suhail
Nathani, Shakti Sinha, Dr. Prabuddha Ganguli, Dr. Anil K. Gupta, Larry Pressler
and P.G. Kakodkar (collectively, the "Initial Shareholders"), pursuant to which
the Initial Shareholders deposited certificates evidencing an aggregate of
2,500,000 shares of IGC's common stock (the "Escrow Stock") with the Escrow
Agent, to be held in escrow for a period of six (6) months following the closing
of the Acquisition (the "Escrow Term") and, thereafter, distributed to the
Initial Shareholders as their respective interests may lie. Ferris, Baker Watts,
Incorporated ("FBW") shall, within ten business days of the execution of this
agreement deposit 521,917 additional shares with the Escrow Agent in escrow,
subject to the same terms and conditions as if they were parties to the Escrow
Agreement as an Initial Shareholder such that the total shares of IGC's common
stock on deposit with the Escrow Agent and owned by Mukunda, Cherin, Krishna and
FBW in the aggregate shall be at least 2,084,175.

      In order to induce the person executing this agreement as a purchaser
below (a "Purchaser") to purchase that number of ICG's currently outstanding
shares of common stock set forth below such Purchaser's name below and,
thereafter, to use its reasonable efforts to assist brokers in causing such
shares to be voted in favor of the Acquisition, Mukunda, Cherin, Krishna and FBW
hereby covenant and agree that, upon the first day after the expiration of the
Escrow Term and prior to the Escrow Agent's distribution of the Escrow Stock to
the Initial Shareholders and FBW, they shall direct the Escrow Agent to
reregister in the name of the Purchaser such number of shares of the Escrow
Stock (the "Purchaser Shares") as shall equal one hundred percent (100%) of the
shares so purchased by the Purchaser from a pool of no greater than 2,237,052
shares of the Escrow Stock (collectively, the "Purchasers' Escrow Stock"). Each
of Mukunda, Cherin, Krishna and FBW shall transfer to the Purchaser that
percentage of the Purchaser Shares set forth next their name on Schedule 1
attached hereto and incorporated by reference herewith. Concurrently therewith,
Mukunda, Cherin and Krishna shall assign to the Purchaser the Initial
Shareholders' contractual rights to cause that portion of the Purchasers' Escrow
Stock transferred by Mukunda and Krishna to be registered for resale under the
Securities Act of 1933, as amended, following the expiration of the Escrow Term.

      The Purchaser hereby covenants and agrees that the certificates that shall
evidence the Purchasers' Escrow Stock shall be held by the Escrow Agent, in
escrow, subject to the same terms and conditions as if the Purchaser was a party
to the Escrow Agreement as an Initial Shareholder.

<PAGE>

                                        PURCHASER:

/s/ Ram Mukunda                         1,000,000 purchased shares, plus
--------------------------              100% more Purchaser's Escrow Stock
Ram Mukunda                             1,000,000 shares

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

/s/ John Cherin
--------------------------
John Cherin                             Name of signatory: Steven Oliveira
                                                           ---------------

                                        Title, if any: President

                                        Name of Purchaser: Oliveira Capital, LLC
                                                           ---------------------

/s/ Ranga Krishna
--------------------------
Ranga Krishna

FERRIS, BAKER WATTS, INC.

By:      /s/ Scott T. Bass
         ------------------------
Name:    Scott T. Bass
         ------------------------
Title:   Vice President
         ------------------------

ACKNOWLEDGED:
CONTINENTAL STOCK TRANSFER
& TRUST COMPANY, as Escrow Agent

By:      /s/ Steven Nelson
         ------------------------
Name:    Steven Nelson
         ------------------------
Title:   President
         ------------------------

                                        2

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