X0202 4 2004-12-15 1 0000704914 DATAKEY INC DKEY 0001171663 GLARNER TERRENCE 80 S. 8TH STREET, SUITE 3600 MINNEAPOLIS MN 55402 0 0 0 1 Former Director Stock Option (right to buy) .59 2004-12-15 4 D 0 2500 .06 D 2013-05-27 Common Stock 2500 0 D Stock Option (right to buy) .73 2004-12-15 4 D 0 2500 D 2014-05-25 Common Stock 2500 0 D The option, which was fully exercisable, was cancelled pursuant to a merger agreement by and among the Issuer, SafeNet, Inc. and Snowflake Acquisition Corp. ("Snowflake"), a wholly-owned subsidiary of SafeNet (the "Merger"), in exchange for a cash payment of $150, representing the difference between the exercise price of the option and the purchase price provided for in the Merger ($0.65). The option, which was fully exercisable, was assumed by Snowflake and replaced with an option to purchase 47 shares of SafeNet common stock for $38.57 per share pursuant to the Merger. Thomas R. King as Attorney-in-Fact for Terrence W. Glarner pursuant to Power of Attorney previously filed. 2004-12-15