Also on December 7, 2010, the Company entered into an agreement with Felix Marx (the "Agreement") to memorialize the mutual agreement and understanding of the parties in connection with the termination of Mr. Marx's employment agreement, dated as of February 28, 2010, as amended August 23, 2010, previously entered into between Mr. Marx and the Company (the "Employment Agreement"). Under the terms of the Agreement, on or prior to the Effective Date, Mr. Marx will receive a lump sum gross payment of EUR 250,000, in full and final settlement of any and all amounts due to Mr. Marx under the provisions of his Employment Agreement and relating to the previously-approved grant of 180,000 shares of the Company's common stock under the Company's 2010 Bonus and Incentive Plan in recognition of Mr. Marx's efforts in connection with the consummation of the acquisition of Bluehill-ID AG. Such grant was heretofore deferred at the request of Mr. Marx.

In addition to other customary terms and conditions, Mr. Marx agreed to a 12-month non-competition and non-solicitation period, and the Company agreed to enter into a consultancy arrangement with Mr. Marx following the Effective Date for a minimum of four months at a rate of EUR 25,000 per month.

A copy of the press release announcing Mr. Marx's departure is attached as Exhibit 99.1 hereto and is incorporated herein by this reference.

Exhibit        Description

99.1        Press Release, dated December 13, 2010, announcing the departure of Felix Marx.