THIS AGREEMENT (along with all Exhibits attached hereto hereinafter referred to as the "Agreement") made
effective as of August 1, 2001 ("Effective Date") by and between SAC Technologies, Inc. dba BIO-key
International, a Minnesota corporation with its principal place of business at 1285 Corporate Center Drive, Suite
175, Eagan, MN 55121 (the "Company"), and H. Donald Rosacker II, residing at
___________________________________ (the "Employee").
WHEREAS, the Company desires to secure the employment of the Employee as President in accordance with
the provisions of this Agreement; and
WHEREAS, the Employee desires and is willing to be employed by the Company in accordance herewith.
NOW THEREFORE, in consideration of the premises and mutual covenants contained herein, and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows:
1. Employment Term. This Agreement shall remain in force and effect for a term commencing on the Effective
Date hereof and expiring on the first (1st) anniversary hereof (the "Initial Term"), or until the employment
relationship is terminated pursuant to Section 4 hereof. Upon the expiration of the Initial Term, this Agreement
will be renewed automatically for successive one-year periods (each, a "Renewal Term"), unless sooner
terminated in accordance with the provisions of Section 4 or unless Company gives written notice of non-renewal
at least one (1) month prior to the date on which the Employee's employment would otherwise end.
2. Duties; Exclusive Services and Best Efforts.
(a) Duties. Employee shall hold the position of President and shall have the responsibility for all marketing, sales,
and corporate and business development activities for the Company including, but not limited to, strategic
planning, product roll out, beta test development, revenue forecasting and maintaining Company di