Document:

Exhibit 10.3

                              EMPLOYMENT AGREEMENT

      This Employment  Agreement (the  "Agreement") is entered into effective as
of March 26, 2004 by and between  Mitchell  Peipert  ("Employee") and Conversion
Services International, Inc. (the "Company").

      WHEREAS,  the Company is engaged in the business of data  warehousing  and
business intelligence consulting; and

      WHEREAS,  the Company and Employee  are willing to commence an  employment
relationship,  on  the  terms,  conditions  and  covenants  set  forth  in  this
Agreement;

      NOW, THEREFORE,  in consideration of Employee's commencement of employment
with the  Company,  the  mutual  covenants  contained  herein and other good and
valuable  consideration,  the receipt of which the Company and  Employee  hereby
acknowledge, Employee and the Company agree, as follows:

      1.  Position.  Employee  agrees to  employment  with the Company,  and the
Company  hereby  employs  Employee,  in the position of Vice President and Chief
Financial  Officer of the Company.  Employee  further  agrees to perform the job
duties and to carry out the  responsibilities  of that position,  and such other
duties and  responsibilities  traditionally  associated  with such position,  as
determined by the Board of Directors of the Company from time to time.

      2. Employee's Effort. Employee shall perform his duties in the capacity as
an employee  and in such  capacity  shall spend his full  working  time and best
efforts,  skill and  attention to his position and to the business and interests
of the Company.  Employee shall perform his duties principally at the offices of
the Company in East Hanover, New Jersey.

      3. Salary.

            (a) The  Company  shall  pay  Employee  (i) base  compensation  (the
"Salary") for services  rendered in the amount of Two Hundred  Thousand  Dollars
($200,000)  per annum payable on a semi-monthly  basis (which base  compensation
may  be  increased  by the  Board  of  Directors  of the  Company,  in its  sole
discretion), and (ii) annual bonus, if any, as may be determined by the Board of
Directors of the Company, in its sole discretion.

            (b)  Employee  will be  entitled to  participate  in any bonus plan,
incentive  compensation program or incentive stock option plan or other employee
benefits  of the  Company  and  which are  available  to the five  highest  paid
executives  of the  Company,  on  the  same  terms  and at  the  same  level  of
participation as the five highest paid executives of the Company.

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      4. Benefits.

            (a) Employee will be entitled to at least nine (9) paid holidays and
two (2) personal days each calendar year. The Company will notify Employee on or
about the beginning of each  calendar year with respect to the holiday  schedule
for the coming year.  Personal  holidays,  if any,  will be scheduled in advance
subject to requirements  of the Company.  Such holidays must be taken during the
calendar year and cannot be carried forward into the next year.

            (b)  Employee  shall be entitled to twenty (20) paid  vacation  days
each year, and if unused due to the  requirements of the Company's  business may
be carried forward into subsequent years.

            (c)  Employee  shall be entitled to sick leave and  emergency  leave
according to the regular policies and procedures of the Company. Additional sick
leave or emergency  leave over and above paid leave provided by the Company,  if
any,  shall be unpaid  and shall be granted  at the  discretion  of the Board of
Directors or any committee thereof.

            (d) The Company agrees to include  Employee in the group medical and
hospital plan of the Company and provide group life insurance for Employee at no
charge to Employee in the amount of the Salary during this  Agreement.  Employee
shall be responsible for payment of any federal or state income tax imposed upon
these benefits.

            (e)  Employee  shall be  entitled to  participate  in any pension or
profit  sharing  plan,  incentive  stock  option  plan or any other type of plan
adopted by the Company for the benefit of its officers and/or regular employees.

            (f) The Company will provide to Employee the use of an automobile of
Employee's  choice at a monthly  leased  price not to exceed  $750.  The Company
agrees to replace the  automobile  with a new one at Employee's  request no more
often  than once  every  two (2)  years.  The  Company  will pay all  automobile
operating expenses incurred by Employee in the performance of Employee's Company
duties.  The Company will procure and maintain in force an automobile  liability
policy for the automobile  with  coverage,  including  Employee,  in the minimum
amount of $1,000,000 combined single limit on bodily injury and property damage.

            (g) Employee shall be entitled to  reimbursement  for all reasonable
expenses,  including  travel and  entertainment,  incurred  by  Employee  in the
performance  of Employee's  duties.  Employee will maintain  records and written
receipt as required by the Company policy and reasonably  requested by the Board
of Directors of the Company to substantiate such expenses.

      5. Term;  Termination.  This  Agreement and the status and  obligations of
Employee thereunder as an employee of the Company (except as provided for below)
shall cease and terminate effective upon the close of business on March 25, 2007
(the "Expiration Date") unless earlier terminated  pursuant to this Section 5 or
further  extended  by the  parties  hereto in writing in a separate  instrument;
provided,  however,  that upon such date said  termination  shall not affect any
rights  that may have been  specifically  granted  to  Employee  by the Board of
Directors of the Company or a designated  committee  thereof  pursuant to any of
the Company's retirement plans,  supplementary  retirement plans, profit sharing
and  savings  plans,  healthcare,  401(k) or any other  employee  benefit  plans

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sponsored by the Company,  it being  understood  that no such rights are granted
hereunder.  In  addition,  notwithstanding  the  expiry or  termination  of this
Agreement  pursuant  to this  Section  5 or  otherwise,  Employee's  rights  and
obligations  under  Sections  7 through 12  inclusive  of this  Agreement  shall
survive such  termination or expiration of this Agreement in accordance with the
terms of such Sections.

            (a)  Death  or  Disability.   This  Agreement  shall   automatically
termiante upon the death or disability of Employee and all his rights hereunder,
including the rights to receive  compensation and benefits,  except as otherwise
required by law.

            (b) Termination with Notice by Either Party. The Company or Employee
may terminate  this  Agreement for any reason or no reason upon thirty (30) days
prior written notice to the other.  In case of termination by the Company,  with
the exception of Good Cause (as herein defined),  the Company shall pay Employee
severance  compensation,  in a lump  sum  payable  on the  date of  termination,
calculated at the rate of Salary in effect as of the date immediately  preceding
the date of  termination  and the cost of  premiums  for any  Company  sponsored
insurance  policy (or the cash equivalent) for the longer of (i) thirty six (36)
months or (ii) the period from the date of  termination  through the  Expiration
Date.

            (c) Termination  for Good Cause.  "Good Cause" means any one or more
of the following:

                  (1)  a  continuing  material  breach  or  continuing  material
default by Employee of the  material  terms of this  Agreement  (except any such
breach  or  default  which is  caused  by the  physical  disability  or death of
Employee)  which  remains  uncured after twenty (20) days  following  Employee's
receipt from the Company of written notice specifying such breach or default;

                  (2) gross negligence or willful misfeasance by Employee or the
breach of fiduciary duty by Employee (if  affirmatively  determined by the Board
of  Directors of the  Company) in the  performance  of his duties as an employee
hereunder;

                  (3)  the   commission   by   Employee  of  an  act  of  fraud,
embezzlement or any other crime in connection with Employee's duties; or

                  (4) conviction of Employee of a felony or any other crime that
would materially interfere with the performance of Employee's duties hereunder.

            In the event of a termination  for Good Cause,  the Company will pay
Employee the Base Salary earned and expenses  reimbursable  under this Agreement
incurred through the date of Employee's termination, or four (4) months from the
effective date of this Agreement, whichever is longer, in one lump sum. Employee
shall continue to receive the same health  benefits that he was receiving  prior
to such termination for twelve (12) months following such termination.

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      6. Change in Control and Other  Grounds  Entitling  Employee to Terminate.
"Change in Control" shall mean (a) any sale,  lease,  exchange or other transfer
(in one transaction or a series of transactions) of all or substantially  all of
the assets of the Company; (b) individuals who, as of the date hereof, consitute
the entire Board of Directors of the Company (the "Incumbant  Directors")  cease
for any reason to  constitute  at least a majority of the Board of  Directors of
such company, provided that any individual becoming a director subsequent to the
date hereof whose  election was approved by a vote of at least a majority of the
then  Incumbant  Directors  shall  be,  for  the  purposes  of  this  provision,
considered  as  though  such  individual  were an  incumbant  director;  (c) any
consolidation  or merger or other  business  combination of the Company with any
other  entity where the  stockholders  of the Company  immediately  prior to the
consolidation  or merger or other business  combination  would not,  immediately
after the  consolidation or merger or other business  combination,  beneficially
own,  directly or  indirectly,  shares  representing  fifty percent (50%) of the
combined voting power of all of the outstanding securities of the entity issuing
cash or securities in the consolidation or merger or other business  combination
(or its ultimate parent  corporation,  if any); (d) a third person,  including a
person defined in Section  (13)(d)(3) of the Securites  Exchange Act of 1934, as
amended (the "Exchange Act"), becomes the benefical owner (as defined in Section
(13)(d)(3)  of the  Exchange  Act)  directly or  indirectly  of securites of the
Company  representing  fifty  percent (50%) or more of the total number of votes
that may be cast for the election of the  directors  of the Company;  or (e) the
Board of  Directors  of the Company by vote of a majority of all the  directors,
adopts a  resolution  to the effect that a "Change in Control"  has occurred for
purposes of this Agreement.

            (a) A Change in  Control  in the  Company  resulting  in a  material
adverse change in duties,  responsibilities or role, or reporting  relationships
of Employee will be treated as a termination by the Company  without Good Cause.
If such  termination  without Good Cause  occurs  following a Change in Control,
Employee will be entitled to elect to terminate his employment  hereunder and to
receive his  severance  compensation  and other rights and benefits  pursuant to
Section  5(a) as if he were  terminated  by the Company  without  Good Cause and
expenses  reimbursable  under  this  Agreement  incurred  through  the  date  of
Employee's termination, in one lump sum.

            (b) Upon a Change in Control,  100% of all  unvested  stock  options
and/or restricted shares held by Employee shall immediately vest.

            (c) Further,  any of the following shall constitute a termination by
the Company  without Good Cause  entitling  Employee to elect to  terminate  his
employment hereunder and to receive his severance  compensation and other rights
and benefits  pursuant to Section 5(a) as if he were  terminated  by the Company
without Good Cause:  (i) the  relocation of Employee by the Company more than 50
miles from East Hanover,  New Jersey;  (ii) there shall be a continuing material
breach or continuing  material  default by the Company of the material  terms of
this  Agreement  which  remains  uncured  after twenty (20) days  following  the
Company's  receipt from  Employee of written  notice  specifying  such breach or
default;  or (iii)  if  Employee  shall no  longer  hold  the  position  of Vice
President and Chief Financial  Officer of the Company unless there is Good Cause
for the removal of Employee from such position.

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      7.  Confidentiality.  Employee  shall  keep  confidential,  except  as the
Company may  otherwise  consent in writing,  and not disclose or make any use of
except for the benefit of the  Company,  at any time  either  during the term of
this  Agreement  or  therafter,  any  trade  secrets,  knowledge,  data or other
information  of the  Company  relating  to the  products,  processes,  know how,
technical data, designs,  formulas,  test data, customer lists,  business plans,
marketing plans and strategies,  and product pricing strategies or other subject
matter  pertaining  to any  business  of  the  Company  or  any of its  clients,
customers,  consultants,  licensees or  affiliates  which  Employee may produce,
obtain or  otherwise  learn of during the course of  Employee's  performance  of
services (collectively "Confidential Information").  Employee shall not deliver,
reproduce, or in any way allow any such Confidential Information to be delivered
to or used by any third parties  without the specific  direction or consent of a
duly  authorized  representative  of the Company,  except in connection with the
dischage of his duties  thereunder.  The terms of this  paragraph  shall survive
termination of this Agreement.  Notwithstanding anything to the contrary herein,
Employee shall not have any obligation to keep confidential any information (and
the  term  "Confidential  Information"  shall  not  be  deemed  to  include  any
information)  that (a) is generally  available to the public through no fault or
wrongful act of Employee in breach of the terms hereof,  (b) is  disseminated by
the Company or any of its affiliates publicly without requiring confidentiality,
(c) is required by law or  regulation  to be disclosed  by  Employee,  or (d) is
required to be disclosed by Employee to any government  agency or person to whom
disclosure is required by judicial or administrative process.

      8.  Return  of  Confidential  Material.   Upon  the  completion  or  other
termination  of Employee's  services for the Company,  Employee  shall  promptly
surrender  and  deliver  to  the  Company  all  records,  materials,  equipment,
drawings,  documents,  notes and books and data of any nature  pertaining to any
invention,  trade  secret  or  Confidential  Information  of the  Company  or to
Employee's  services,  and  Employee  will  not take  with  him any  description
containing or pertaining to any Confidential  Information,  knowledge or data of
the  Company  which  Employee  may  produce  or obtain  during the course of his
services.  The  terms  of  this  paragraph  shall  survive  termination  of this
Agreement.

      9. Competition. Employee will not do any of the following, either directly
or  indirectly,  during  Employee's  employment  with the Company and during the
period  of one (1)  year  after  Employee's  cessation  of  employment  with the
Company,  anywhere in the world. In the event that Employee  improperly competes
with the  Company in  violation  of this  Section,  the period  during  which he
engages in such competition  shall not be counted in determining the duration of
the one (1) year non-compete restriction:

            (a) For purposes of this  Agreement,  "Competitive  Activity"  shall
mean any activity relating to, in respect of or in connection with,  directly or
indirectly, the data warehousing and business intelligence consulting business.

            (b) Employee shall not own, manage, operate,  control,  consult for,
be an officer or director  of,  work for, or be employed in any  capacity by any
company or any other business,  entity,  agency or organization which engages in
Competitive  Activity;  provided,  however,  that during his  employment  by the
Company and during his non-compete period following  departure from the Company,
Employee  may serve as a director  or  consultant  of an entity that is either a

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Company  licensee,  or,  for  non-licensees,  in such  capacity  as the Board of
Directors of the Company has granted him written permission.

            (c)  Employee  shall not solicit or perform  services in  connection
with any Competitive Activity for any prior or current customers of the Company;
or

            (d)  Employee  shall not solicit for  employment  or employ any then
current employees employed by the Company without the Company's consent.

            Employee and the Company agree that the phrase "Employee's cessation
of  employment  with  the  Company"  as used in this  Agreement,  refers  to any
separation   from  his   employment  at  the  Company   either   voluntarily  or
involuntarily,  either with cause or without cause, or whether the separation is
at the  behest of the  Company or  Employee.  Nothing  in this  Agreement  shall
preclude   Employee  from  employment  at  a   not-for-profit   or  governmental
institution,  provided that no for-profit business involved data warehousing and
business intelligence consulting, directly or indirectly, derives a benefit from
Employee's employment.

      10. Other Obligations.

            (a)  Employee  acknowledges  that the Company  from time to time may
have agreements  with other persons which impose  obligations or restrictions on
the  Company  made  during  the  course  of work  thereunder  or  regarding  the
confidential nature of such work. Employee will be bound by all such obligations
and restrictions and will take all action necessary to discharge the obligations
of the Company thereunder.

            (b) All of  Employee's  obligations  under this  Agreement  shall be
subject to any applicable agreements with, and policies issued by the Company to
which  Employee is subject,  that are  generally  applicable to the five highest
paid executives of the Company.

      11. Trade Secrets of Others.  Employee  represents that his performance of
all the terms of this Agreement as employee to the Company does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or
data  acquired by Employee in  confidence  or in trust,  and  Employee  will not
disclose  to the  Company,  or allow the  Company to use,  any  confidential  or
proprietary  information  or material  belonging  to any other person or entity.
Employee will not enter into any agreement,  either written or oral, which is in
conflict with this Agreement.

      12. Injunctive Relief.  Employee acknowledges that any breach or attempted
breach by Employee of paragraphs 7 through 12 of this Agreement  shall cause the
Company  irreparable harm for which any adequate monetary remedy does not exist.
Accordingly,  in the event of any such breach or threatened  breach, the Company
shall be entitled to obtain injunctive relief,  without the necessity of posting
a bond or other surety, restraining such breach or threatened breach.

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      13. Modification.  This Agreement may not be changed, modified,  released,
discharged,  abandoned,  or otherwise amended, in whole or in part, except by an
instrument  in writing,  signed by Employee and by the Company.  Any  subsequent
change or changes in  Employee's  relationship  with the  Company or  Employee's
compensation shall not affect the validity or scope of this Agreement.

      14. Entire Agreement. Employee acknowledges receipt of this Agreement, and
agrees that with respect to the subject matter thereof,  it is Employee's entire
agreement   with  the  Company,   superseding   any  previous  oral  or  written
communications,  representations,  understandings with the Company or any office
or representative  thereof.  Each party to the Agreement  acknowledges  that, in
executing this Agreement,  such party has had the opportunity to seek the advice
of independent  legal counsel,  and has read and understood all of the terms and
provisions of the Agreement.

      15.  Severability.  In the event that any  paragraph  or provision of this
Agreement  shall be held to be illegal or  unenforceable,  the entire  Agreement
shall not fall on account thereof,  but shall otherwise remain in full force and
effect,  and such paragraph or provision shall be enforced to the maximum extent
permissible.

      16.  Successors  and  Assigns.   This  Agreement  shall  be  binding  upon
Employee's heirs,  executors,  administrators or other legal representatives and
is for the benefit of the Company, its successors and assigns.

      17.  Governing  Law. This  Agreement  shall be governed by the laws of the
State of  Delaware  except for any  conflicts  of law rules  thereof  that might
direct the application of the substantive law of another state.

      18.  Counterparts.  This  Agreement may be signed in  counterparts  and by
facsimile  transmission,  each of which shall be deemed an original  and both of
which shall together constitute one agreement.

      19. No  Waiver.  No waiver by either  party  hereto of any  breach of this
Agreement by the other party hereto shall  constitute a waiver of any subsequent
breach.

      20. Notice.  Any notice hereby  required or permitted to be given shall be
sufficiently  given if in writing and upon  mailing by  registered  or certified
mail,  postage  prepaid,  to either  party at the  address of such party or such
other address as shall have been  designated by written  notice by such party to
the other party.

                            [Signature Page Follows]

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      The  undersigned  have executed this  Agreement as of the date first forth
above.

                                         CONVERSION SERVICES INTERNATIONAL, INC.

                                         By:/s/Scott Newman
                                            ---------------------------------
                                               Name:  Scott Newman
                                               Title: President and Chief
                                                      Executive Officer

                                         /s/Mitchell Peipert
                                         -------------------------------
                                         Mitchell Peipert

                                       8Exhibit 10.38

                              CONSULTING AGREEMENT

        This Consulting Agreement ("Agreement") is made and entered into and
effective on this 1st day of August, 2003 by and between IQ BIOMETRIX, INC., a
Delaware corporation with a principal place of business at Suite 304, 39111
Paseo Padre Parkway, Fremont, California 94538 ("Company"), and DANIEL MCKELVEY
with an address of 201 Mission Street, Suite 1930, San Francisco, CA 94105
("Consultant"). The Company desires to retain Consultant as an independent
contractor to perform consulting services for the Company, and Consultant is
willing to perform such services, on terms set forth more fully below. In
consideration of the mutual promises contained herein, the parties agree as
follows:

1.    SERVICES, COMPENSATION, AND TERM

      1.1 Consultant agrees to perform for the Company the services ("Services")
described in Appendix A, attached hereto.

      1.2 The term of this agreement is one (1) year.

      1.3 Company shall pay Consultant the compensation described in Appendix A,
attached hereto.

2.    CONFIDENTIALITY

      2.1 "Confidential Information" means any Company proprietary information,
technical data, trade secrets or know-how, including, but not limited to,
research, product plans, products, services, customers, customer lists, markets,
software, developments, inventions, processes, formulas, technology, designs,
drawings, engineering, hardware configuration information, marketing, finances
or other business information disclosed by the Company either directly or
indirectly in writing, orally or by drawings or inspection of parts or
equipment, whether marked as "confidential" or not.

      2.2 Consultant will not, during or subsequent to the term of this
Agreement and for a period of two (2) years thereafter, use the Company's
Confidential Information for any purpose whatsoever other than the performance
of the Services on behalf of the Company or disclose the Company's Confidential
Information to any third party. It is understood that said Confidential
Information shall remain the sole property of the Company. Consultant further
agrees to take all reasonable precautions to prevent any unauthorized disclosure
of such Confidential Information. Confidential Information does not include
information which (i) is known to Consultant at the time of disclosure to
Consultant by the Company as evidenced by written records of Consultant, (ii)
has become publicly known and made generally available through no wrongful act
of Consultant, or (iii) has been rightfully received by Consultant from a third
party who is authorized to make such disclosure.

      2.3 Consultant agrees that Consultant will not, during the term of this
Agreement, improperly use or disclose any proprietary information or trade
secrets of any former or current employer or other person or entity with which
Consultant has an agreement or duty to keep in confidence information acquired
by Consultant if any, and that Consultant will not bring onto the premises of
the Company any unpublished document or proprietary information belonging to
such employer, person or entity unless consented to in writing by such employer,
person or entity. Consultant will indemnify the Company and hold it harmless
from and against all claims, liabilities, damages and expenses, including
reasonable attorney's fees and costs of suit, arising out of or in connection
with any violation or claimed violation of a third party's rights resulting in
whole or in part from the Company's use of the work product of Consultant under
this Agreement.

<PAGE>

      2.4 Consultant recognizes that the Company has received and in the future
will receive from third parties their confidential or proprietary information
subject to a duty on the Company's part to maintain the confidentiality of such
information and to use it only for certain limited purposes. Consultant agrees
that Consultant owes the Company and such third parties, during the term of this
Agreement and thereafter, a duty to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person,
firm or corporation or to use it except as necessary in carrying out the
Services for the Company consistent with the Company's agreement with such third
party.

      2.5 Upon the termination of this Agreement, or upon Company's earlier
request, Consultant will deliver to the Company all of the Company's property or
Confidential Information that Consultant may have in Consultant's possession or
control.

3.    CONFLICTING OBLIGATIONS

      Consultant certifies that Consultant has no outstanding agreement or
obligation that is in conflict with any of the provisions of this Agreement, or
that would preclude Consultant from complying with the provisions hereof, and
further certifies that Consultant will not enter into any such conflicting
agreement during the term of this Agreement.

4.    TERMINATION

      Either party may terminate this Agreement, with or without reason, upon
giving thirty (30) days prior written notice thereof to the other party.
Additionally, the Company may terminate this Agreement immediately for Cause as
defined below by giving Consultant written notice thereof.. Any such notice
shall be addressed to the party at the address shown above or such other address
as the party may notify the other of and shall be deemed given upon delivery if
delivered in person, or twenty (24) hours after having been deposited with any
commercial "over-night" curriers marked for "next day" delivery,, or forty-eight
(48) hours after having been deposited in the United States mail, postage
prepaid, registered or certified mail, return receipt requested.

      4.1 Upon any such termination all rights and duties of the parties toward
each other shall cease except that:

            (i)   in the event of a termination without Cause, the Company shall
                  be obliged to pay, within ten (10) days of the effective date
                  of termination, all amounts owing to Consultant for Services
                  completed prior to the termination date and related expenses,
                  if any, in accordance with the provisions of Section 1
                  (Services and Compensation) hereof, and any Compensation as
                  defined in said Section 1 as and when due for the Term of the
                  Agreement as if the Agreement had not been terminated,

            Or

            (ii)  in the event of a termination for Cause, the Company shall be
                  obliged to pay, within ten (10) days of the effective date of
                  termination, all amounts owing to Consultant for Services
                  completed prior to the termination date and related expenses,
                  if any, in accordance with the provisions of Section 1
                  (Services and Compensation) hereof. For purposes of this
                  Agreement, Cause shall mean and/or be deemed to have occurred
                  upon: (i) one or more acts of personal dishonesty, fraud or
                  deceit taken by Consultant in connection with his
                  responsibilities as a Consultant and intended to result in
                  personal enrichment of Consultant and/or harm to the Company,
                  and/or (ii) the date Consultant is charged with, or pleas nolo
                  contendere to, any crime involving honesty, ethics or moral
                  turpitude, and/or (iii) any willful act(s) or omission(s) to
                  act by Consultant which constitutes negligence, willful bad
                  acts and/or gross misconduct and which is materially injurious
                  to the operations, prospects, reputation or business of the
                  Company, and/or (iv) Consultant's failure to cure performance
                  issues within ten (10) days following delivery to Consultant
                  of a written demand for performance which describes the basis
                  for the Company's reasonable belief that Consultant has failed
                  to substantially and materially perform his duties, or that
                  Consultant has continued to violate his obligations to the
                  Company which violations are demonstrably willful and
                  deliberate on Consultant's part.

            (iii) Sections 2 (Confidentiality), 6 (Independent Contractor), 8
                  (Accuracy of Information), and 9 through 13 shall survive
                  termination of this Agreement; and

5.    ASSIGNMENT

      Neither this Agreement nor any right hereunder or interest herein may be
assigned or transferred by Consultant without the express written consent of the
Company, and any such assignment or transfer in violation of this Section 5
shall be null and void.

6.    INDEPENDENT CONTRACTOR

      The parties to this Agreement are independent contractors. Nothing in this
Agreement shall in any way be construed to constitute Consultant as an agent,
employee or representative of the Company, but Consultant shall perform the
Services hereunder as an independent contractor. Consultant agrees to furnish
(or reimburse the Company for) all tools and materials necessary to accomplish
this contract, and shall incur all expenses associated with performance, except
as expressly provided on Appendix A of this Agreement. Consultant acknowledges
and agrees that Consultant is obligated to report as income all compensation
received by Consultant pursuant to this Agreement and Consultant agrees to and
acknowledges the obligation to pay any applicable self-employment and other
taxes thereon.

<PAGE>

7.    BENEFITS

      Consultant acknowledges and agrees and it is the intent of the parties
hereto that Consultant receive no Company-sponsored benefits from the Company
either as a Consultant or employee. If Consultant is reclassified by a state or
federal agency or court as an employee, Consultant will become a reclassified
employee and will receive no benefits except those mandated by state or federal
law, even if by the terms of the Company's benefit plans in effect at the time
of such reclassification Consultant would otherwise be eligible for such
benefits.

8.    ACCURACY OF INFORMATION

      In connection with the Consultant's services, the Company will furnish to
Consultant information that Consultant reasonably believes necessary to the
provision of services under this Agreement. The Company recognizes that
Consultant does not assume responsibility for the accuracy or completeness of
this information and Consultant will not independently verify the same. The
information furnished by the Company, when delivered, will be, to the best of
the Company's knowledge, true and correct in all material respects. The
information shall be deemed to be "Confidential Information," subject to the
provisions of Section 2 hereof, and may not be disclosed without the prior
written consent of the Chief Executive Officer of the Company. Consultant
covenants that all information delivered or furnished by Consultant to any third
party shall accurately reflect the information given to it by the Company, and
Consultant shall hold Company harmless from any and all liability, expenses or
claims arising from any breach of Consultant's obligations under this Section 8.

9.    GOVERNING LAW

      This Agreement shall be governed by the internal substantive laws, but not
the choice of law rules, of the State of California.

10.   ENTIRE AGREEMENT

      This Agreement is the entire agreement of the parties and supersedes any
prior agreements between them, whether written or oral, with respect to the
subject matter hereof. No waiver, alteration, or modification of any of the
provisions of this Agreement shall be binding unless in writing and signed by
duly authorized representatives of the parties hereto.

11.   ATTORNEY'S FEES

      In any court action at law or equity which is brought by one of the
parties to enforce or interpret the provisions of this Agreement, the prevailing
party will be entitled to reasonable attorney's fees, in addition to any other
relief to which that party may be entitled.

<PAGE>

12.   SEVERABILITY

      The invalidity or unenforceability of any provision of this Agreement, or
any terms thereof, shall not affect the validity of this Agreement as a whole,
which shall at all times remain in full force and effect.

13.   INDEMNIFICATION

      Consultant will indemnify and hold Company harmless from and against
expenses, damages, claims, suits, actions, judgments and costs (including but
not limited to attorneys' fees) from any third party arising from or in any way
connected with any claim, action or suit that arises from Consultant's
performance of its obligations under this Agreement.

      Consultant further agrees to indemnify and hold harmless the Company and
its directors, officers, and employees from and against all taxes, losses,
damages, liabilities, costs and expenses, including attorney's fees and other
legal expenses, arising directly or indirectly from (i) any negligent, reckless
or intentionally wrongful act of Consultant or Consultant's assistants,
employees or agents, (ii) a determination by a court or agency that the
Consultant is not an independent contractor, or (iii) any breach by the
Consultant or Consultant's assistants, employee or agents of any of the
covenants contained in this Agreement.

      Company will indemnify and hold Consultant harmless from and against
expenses, damages, claims, suits, actions, judgments and costs (including but
not limited to attorneys' fees) arising from or in any way connected with any
claim, action or suit that arises from Company's performance of its obligations
under this Agreement.

      Company further agrees to indemnify and hold harmless the Consultant and
its partners and employees from and against all taxes, losses, damages,
liabilities, costs and expenses, including attorney's fees and other legal
expenses, arising directly or indirectly from (i) any negligent, reckless or
intentionally wrongful act of Company or Company's directors, officers, or
employees, (ii) any breach by the Company's or Company's directors, officers, or
employee of any of the covenants contained in this Agreement.

      14. PRIOR AGREEMENTS. Except as otherwise limited by this Section, To the
extent not previously terminated, the consulting agreements by and between the
Company and Consultant, dated as of December 1, 2002, January 15, 2003, and May
31, 2003 (effective as of March 31, 2003), (collectively the "Prior Agreements")
are each hereby terminated and Consultant acknowledges that all obligations due
from Company to Consultant hereunder have been satisfied in full.
Notwithstanding the foregoing, any and all obligations of confidentiality due
from Consultant to Company pursuant to the Prior Agreements shall remain in full
force and effect as otherwise provided in such Prior Agreements.

                         [signatures on following page]

<PAGE>

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

DATE:                           COMPANY

                                IQ BIOMETRIX, INC.

March 8, 2004                   By: /s/ William B. G. Scigliano
------------------                  -------------------------
                                    William B. G. Scigliano
                                    President and Chief Executive Officer

DATE:                               CONSULTANT

                                    DANIEL MCKELVEY
March 8, 2004                       /s/ Daniel McKelvey
------------------                  -------------------------
                                    Daniel McKelvey

<PAGE>

                                   APPENDIX A

                            SERVICES AND COMPENSATION

1. SERVICES

      Consultant shall provide the following services as may be specified by the
Company's Chief Executive Officer and/or Board of Directors:

      (a) Provide general management advice and counseling to the Company,
especially in the areas of financial management and business planning;

      (b) Advise and assist the Company in identifying, evaluating, negotiating,
and securing sources of debt and equity funding, acquisition and/or merger
opportunities, joint venture or other partnering opportunities, and business
restructurings and divestitures; and.

      (c) Provide such other specific services as the Chief Executive Officer
and/or Board of Directors may direct.

      The parties agree that Consultant shall initially devote his efforts to
(a) raising equity funding, and (b) driving the acquisition strategy and
execution of the Company.

      Consultant shall use his best efforts to perform the Services and shall
devote such time as reasonably necessary to perform the Services. Consultant
shall coordinate his work with the Company's Chief Executive Officer. Consultant
shall perform the work in a professional manner consistent with industry
standards. Notwithstanding the foregoing, during the Term of this Agreement,
Consultant agrees to provide an average of fifteen (15) hours per week of his
time to Company in discharging the Services hereunder. In the event that
Consultant regularly devotes more time to Company than said fifteen (15) hours,
then Company and Consultant will mutually agree upon an increase to the Monthly
Compensation as defined below.

      For each quarter during the term of this Agreement, Consultant shall
provide a written report to Company within ten (10) days of the end of the
preceding quarter, detailing the services provided to Company.

2. MONTHLY COMPENSATION

      As consideration for the performance of the Services, Company will pay
Consultant for each month of this Agreement, Ten Thousand Dollars ($10,000) per
month, payable within ten (10) days of each month end. The Company shall
reimburse Consultant for all reasonable travel and other out-of-pocket expenses
incurred in performing the Services. The Company shall reimburse Consultant
within thirty (30) days of receipt of Consultant's itemized statement and
accompanying receipts.

      Payment shall be in the form of (i) common stock of the Company, commonly
known as "S-8 Shares," with a fair market value as of the date of issuance equal
to the amount due using the average of the price as of closing as reported on
the Over the Counter Bulletin Board, or, (ii) cash. Both parties must mutually
agree on form of payment.

<PAGE>

      In addition, the Board of Directors or authorized committee thereof, will
grant to the Consultant a warrant to purchase 200,000 shares of common stock
over the Term of the Agreement, prorated quarterly in advance. The warrant shall
be exercisable at any time before midnight on July 31, 2008. The exercise price
shall be set equal to the fair market value of the underlying common stock as of
the date of grant. The warrant shall also provide for "cashless" exercise.

      The parties acknowledge that no amounts have been paid to Consultant under
the first paragraph of this Section 2 and that Company owes Consultant for
services rendered for the months of August, September, October, November, and
December 2003, an aggregate total of Fifty Thousand Dollars ($50,000) (the
"Prior Period Amount"). Company agrees to pay Consultant this Prior Period
immediately. Payment of the Prior Period Amount shall be in at least 50% in
cash. The remaining balance will be in the form of (i) common stock of the
Company, commonly known as "S-8 Shares," with a fair market value as of the date
of issuance equal to the amount due using the average of the price as of closing
as reported on the Over the Counter Bulletin Board, or, (ii) at the discretion
of the Company, cash.

3.  CAPITAL RAISE COMPENSATION

      For each dollar of financing that the Company closes upon after the
effective date hereof and so long as such financing was originated solely by
Consultant (i.e. the Company has no obligation to pay a finder's fee or success
fee to any third party for such financing , the Company will pay Consultant,
within five (5) days of the closing, (i) a fee equal to six percent (6%) of the
amount of the financing in cash, and (ii) ten percent (10%) of the amount of the
financing in a warrant for the Company's common stock. The warrant price will be
equal to the fair market value of the Company's common stock as of the day
Consultant is entitled to receive such fee. In the event that Consultant is not
the exclusive originator of the financing, then in lieu of any other
compensation hereunder, Company shall pay Consultant a success fee of ONE
HUNDRED THOUSAND DOLLARS ($100,000) upon the effective date of such financing.

4.  ACQUISITION COMPENSATION

      Upon the closing of any acquisition, the Company will pay Consultant,
within five (5) days of the closing, a success fee in the amount of Two Hundred,
Fifty Thousand Dollars ($250,000) ("Success Fee"). In the event that Company
shall, at any time during the twelve (12) month period following expiration of
this Agreement or following a termination without Cause as defined in this
Agreement, acquire a controlling vote and/or interest in the assets and/or
business of any company towards which Consultant has provided reasonably
material services hereunder, Company shall pay to Consultant the Success Fee
described in this Section 4.

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