Document:

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                                                                   EXHIBIT 10.41

                             VIISAGE TECHNOLOGY, INC
                                 30 PORTER ROAD
                         LITTLETON, MASSACHUSETTS 01460

                                           March 5, 2002

Mr. Milton A. Alpern
2 Post Oak Lane
Natick, MA  01760

Dear Milt:

      I am pleased to offer you the position of Vice President, Chief Financial
Officer of Viisage Technology, Inc. (the "Company") commencing March 18, 2002.
The terms of the offer are as follows:

1.    Base Salary: $200,000 per year, subject to annual review by the
      -----------
      Compensation Committee of the Board of Directors.

2.    Bonus: Up to $50,000 for calendar year 2002, based on performance criteria
      -----
      to be mutually established by you and the CEO.

3.    Stock Options:
      -------------

            (a) Upon the commencement of your employment, the Company will grant
      you nonqualified options to purchase 150,000 shares of common stock of the
      Company pursuant to the Company's 1996 Management Stock Option Plan, as
      amended (the "Plan"), at an exercise price equal to the Nasdaq closing
      price on the date of grant. These options will vest in three increments of
      50,000 shares beginning on your first anniversary, commencing March 18,
      2003, and continuing thereafter on March 18, 2004 and March 18, 2005.

            (b) Your options will accelerate upon a change in control of the
      Company. A "change in control" means and shall be deemed to occur if any
      of the following occurs: (i) any Person is or becomes the beneficial owner
      of securities of the Company representing more than 50% of the combined
      voting power of the Company's then outstanding voting securities; or (ii)
      individuals comprising the Incumbent Board, or individuals approved by a
      majority of the Incumbent Board, cease for any reason to constitute at
      least a majority of the Board of Directors of the Company; or (iii)
      approval by the stockholders of the Company of a merger or consolidation
      of the Company, other than (A) a merger or consolidation which would
      result in the voting securities of the Company outstanding immediately
      prior thereto continuing to represent more than 50% of the combined voting
      securities of the Company or such surviving entity outstanding immediately
      after such merger or consolidation or (B) a merger or consolidation
      effected to implement a recapitalization of the Company in which no Person
      acquires more than 50% of the Company's then outstanding voting
      securities; or (iv) approval by the stockholders of the Company of (A) a
      complete or substantial liquidation or dissolution of the Company, or (B)
      the sale or other disposition of all or

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Mr. Milton A. Alpern
March 5, 2002
Page 2

      substantially all of the assets of the Company. An underwritten public
      offering of common stock of the Company, including the completion of any
      sale of common stock pursuant to an underwriter's over-allotment option,
      and any offering to employees pursuant to a registration statement on Form
      S-8 or other similar offering shall not be counted toward a change in
      control for these purposes. For purposes of the foregoing: "Incumbent
      Board" shall mean those individuals who comprised the Board of Directors
      of the Company on the date hereof; and "Person" shall have the meaning
      used in Sections 13(d)(3) or 14(d)(2) of the Exchange Act, provided that,
      it shall not include Denis K. Berube, Joanna T. Lau, Lau Acquisition
      Corp., the Company, any trustee or other fiduciary holding securities
      under an employee benefit plan of the Company, or any entity owned by the
      stockholders of Lau Acquisition Corp.

            (c) In all cases, the vesting of your options is conditioned on your
      being employed by the Company on the vesting date. Your options will
      expire on the tenth anniversary of the date of grant and must be exercised
      within 90 days of the termination of your employment (or within one year
      if your employment terminates as a result of death or disability). Your
      options will be subject to the terms and conditions of the Plan and the
      option agreement issued to you thereunder, which will incorporate the
      essential terms set forth in this Section 3.

4.    Benefits: You will participate in the Company's executive employee benefit
      --------
      plans, as may be in effect from time to time, for which you qualify. A
      summary of the current executive benefits has been furnished to you.

5.    Severance Agreement: If (i) your employment is terminated by the Company
      -------------------
      or (ii) the Company fails to continue you in the position of Chief
      Financial Officer or reduces your compensation in bad faith or (iii) the
      Company changes your job location by more than fifty (50) miles, and you
      resign as a result of any of the above, the Company will continue to pay
      your then current base salary in accordance with regular payroll practices
      for six months following the termination date; provided that no severance
      payments will be made if your employment with the Company is terminated
      for "cause." Further, upon the termination of your employment by the
      Company, you will be entitled to receive any bonus earned pursuant to
      Section 2 above for the period prior to the termination date. "Cause"
      shall mean you have (i) been convicted of or entered a plea of no contest
      relating to any illegal act that materially and adversely reflects upon
      the business, affairs or reputation of Viisage, or (ii) materially
      neglected to discharge your responsibilities as an executive employee of
      Viisage, provided that any termination under this clause (ii) shall occur
      only after the written notice to you and an opportunity to cure such
      breach within 30 days of such notice. For purposes of this Section 5, the
      term "Company" shall include any successor to the Company's business.

6.    Proprietary Rights Agreement. You will be required, as a condition of your
      ----------------------------
      employment, to enter into an agreement containing provisions concerning
      confidentiality, assignment of

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Mr. Milton A. Alpern
March 5, 2002
Page 3

      inventions, non-competition and non-solicitation. A copy of that agreement
      is attached for your reference.

7.    At Will Employment. Your employment with the Company will be "at will,"
      ------------------
      meaning that you will not be obligated to remain employed at the Company
      for any specific period of time, and may cease your employment for any
      reason. Likewise, the Company will not be obligated to employ you for any
      specific period, and may terminate your employment with or without cause.

8.    Immigration. This offer is conditional upon satisfactory proof of
      -----------
      eligibility for employment, as required by the Immigration Reform and
      Control Act of 1986. Please complete the enclosed form and return it to
      Barbara Courage.

9.    Miscellaneous. This agreement, along with the proprietary rights agreement
      -------------
      described above and any stock option agreements issued to you under the
      Plan, sets forth the terms of your employment with the Company and
      supersedes any prior representations or agreements, whether written or
      oral. This agreement may not be modified or amended except by a written
      agreement signed by you and an authorized officer of the Company. In
      addition to any other remedies available to it, the Company will have the
      right to seek injunctive or other equitable relief to prevent any
      violation of this agreement. This agreement will be governed by the laws
      of the Commonwealth of Massachusetts, without regard to choice of law
      provisions. The failure of either party to exercise any right or the
      waiver by either party of any breach, will not prevent a subsequent
      exercise of such right or be deemed a waiver of any later breach of the
      same or any other term of this agreement. If any provision of this
      agreement is held to be invalid, illegal, or unenforceable, such provision
      will only be modified to the extent required to be enforceable under
      applicable law.

      If this offer is acceptable, please indicate your acceptance and agreement
      by countersigning below.

                                     Very truly yours,

                                     /s/ Thomas J. Colatosti

                                     Thomas J. Colatosti
                                     President and Chief Executive Officer

AGREED AND ACCEPTED:

/s/ Milton Alpern

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Milton A. Alpern<PAGE>

                                                                   EXHIBIT 10.42

                            VIISAGE TECHNOLOGY, INC.
           2001 STOCK IN LIEU OF CASH COMPENSATION FOR DIRECTORS PLAN
               as amended and restated effective February 13, 2002

Section 1 -- Purpose
             -------
      The purpose of this 2001 Stock in Lieu of Cash Compensation for Directors
Plan (the "Plan") is to compensate the non-employee members of the Board of
Directors (the "Board") of Viisage Technology, Inc., a Delaware corporation (the
"Company"), for continued service on the Board.

Section 2 -- Effective Date and Duration
             ---------------------------

      The Plan is to be effective as of January 1, 2001, subject to approval by
the stockholders of the Company (the "Effective Date"). This Plan shall remain
in effect until December 31, 2010, unless terminated earlier pursuant to
Paragraph 12 hereof.

Section 3 -- Stock Subject to the Plan
             -------------------------

      Shares issued under this Plan shall be the Company's common stock, $.001
par value (the "Shares"). The number of Shares that may be issued under this
Plan shall not exceed in the aggregate 800,000 shares of the Company's common
stock, subject to adjustment as provided in Sections 8 and 9 below.

Section 4 -- Administration
             --------------

      This Plan shall be administered by the Board. The Shares available under
this Plan shall be issued in the discretion of the Board, using the average
NASDAQ closing price of the Company's common stock for the five dates prior to
and including the date of issuance, or such other reasonable pricing date(s) or
mechanism as the Board shall determine in its business judgment. Subject to the
provisions of the Plan, the Board shall have full power to construe and
interpret the Plan and to establish, amend and rescind rules and regulations for
its administration. Any decisions made with respect thereto shall be final and
binding on the Company, the optionee and all other persons. No member of the
Board shall be liable for any action or determination made in good faith with
respect to the Plan.

Section 5 -- Eligible Participants
             ---------------------

      For so long as Shares are available for issuance pursuant to the
provisions of this Plan, individuals who become directors of the Company and who
are not employees of the Company (the "Directors") shall be eligible to
participate in the Plan.

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Section 6 -- Terms and Conditions of Issuance
             --------------------------------

      Promptly upon authorization by the Board, the Company shall deliver to
each Director a certificate representing the number of Shares issued under this
Plan. Upon issuance of the Shares to each Director, each Director shall have
rights as a shareholder of the Company with respect to the Shares.

      If the Shares are not at that time effectively registered under the
Securities Act of 1933, as amended (the "1933 Act") or any state securities
laws, each Director shall, in form and substance satisfactory to the Company,
confirm that the Shares are being issued for the Director's own account for
investment and not with a view to distribution. Such Shares may not be
transferred unless subsequently registered thereunder or pursuant to an
exemption from registration, and a legend indicating such restrictions will be
placed on the certificates representing such Shares.

Section 7 -- Tax Consequences
             ----------------

      Pursuant to Section 61 of the Internal Revenue Code of 1986, as amended,
the Shares issued pursuant to the Plan will be subject to taxation at ordinary
income tax rates, in an amount equal to the fair market value of the Shares, at
the time such Shares are received by the Directors.

Section 8 -- Stock Dividends; Stock Splits; Stock Combinations; Recapitalization
             -------------------------------------------------------------------

      In the event of a stock dividend, stock split or combination of shares,
recapitalization or other change in the Company's capitalization, or other
distribution with respect to holders of the Company's common stock other than
normal cash dividends, automatic adjustment shall be made in the number and kind
of shares issued under the Plan, to the end that the proportionate interest of
each Director in the capital stock of the Company shall be maintained as before
the occurrence of such event. Automatic adjustment shall also be made in the
number and kind of Shares subsequently issued under the Plan.

Section 9 -- Merger; Sale of Assets; Dissolution
             -----------------------------------

      In the event of a change of the Company's common stock resulting from a
merger or similar reorganization as to which the Company is the surviving
corporation, or the formation of a holding company, the number and kind of
shares which thereafter may be issued under the Plan shall be appropriately
adjusted to the end that the proportionate interest of each Director of the
capital stock of the Company shall be maintained as before the occurrence of
such event.

Section 10 -- No Right to Reelection
              ----------------------

      Nothing in the Plan shall be deemed to create any obligation on the part
of the Board or standing Committee thereof to nominate any Director for
reelection by the Company's stockholders, nor confer upon any Director the right
to remain a member of the Board for any period of time, or at any particular
rate of compensation.

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Section 11 -- Regulatory Compliance and Listing
              ---------------------------------

      (a) The issuance or delivery of any Shares hereunder may be postponed by
the Board for such period as may be required to comply with any applicable
requirements under the Federal securities laws, any applicable listing
requirements of NASDAQ or any national securities exchange or any requirements
under any law or regulation applicable to the issuance or delivery of such
Shares. The Company shall not be obligated to issue or deliver any such Shares
if the issuance or delivery thereof would constitute a violation of any
provision of any law or of any applicable regulation of any governmental
authority, NASDAQ or any national securities exchange. But, the Company shall
exercise its reasonable efforts to cause the Shares to be effectively registered
on Form S-8 under the Securities Act of 1933, as amended (the ('33 Act"), within
three months following the date of any annual or special meeting of stockholders
of the Company at which the Plan and any amendments thereto has been approved,
and for so long as the Company shall continue to be registered under the
Exchange Act, the Company shall exercise its reasonable efforts to keep such
registration in effect.

      (b) The approval of specific transactions under this Plan by the Board of
Directors is intended to exempt the issuance of the Shares from the short swing
profits rule under Section 16(b)-3 of the Exchange Act. Should any provision of
this Plan require modification or be unnecessary to comply with the requirements
of Section 16 of and Rule 16(b)-3 of the Exchange Act, the Board may waive such
provision and/or amend this Plan to add to or modify the provisions hereof
accordingly.

Section 12 -- Amendment and Termination
              -------------------------

      The Board shall have the right to amend, modify or terminate the Plan at
any time and from time to time; provided, however, that unless required by law,
no such amendment or modification shall affect any right or obligation with
respect to any option theretofore issued. In addition, no such amendment or
modification shall be made without previous approval by the stockholders where
such approval is necessary to satisfy, nor shall any amendment or modification
be made at a time when the same would violate, any then-applicable requirements
of federal securities laws (including without limitation Rule 16(b)-3), the Code
or rules of NASDAQ or any stock exchange on which the Company's common stock is
listed.

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