Document:

Stock Purchase Agreement

 Exhibit 10.3 
  
 SAFLINK CORPORATION 
 STOCK PURCHASE AGREEMENT 
  
 SAFLINK Corporation has granted to the Participant named in the Notice of Grant of Stock Purchase Right (the “Notice”) to which this Stock Purchase Agreement (the “Agreement”) is
attached a Purchase Right consisting of a right to purchase certain shares of Stock upon the terms and conditions set forth in the Notice and this Agreement. The Purchase Right has been granted pursuant to and shall in all respects be subject to the
terms and conditions of the SAFLINK Corporation 2000 Stock Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are incorporated herein by reference. By signing the Notice, the Participant:
(a) represents that the Participant has received copies of, and has read and is familiar with the terms and conditions of the Notice, the Plan and this Agreement, (b) accepts the Purchase Right subject to all of the terms and conditions of the
Notice, the Plan and this Agreement, and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under the Notice, the Plan or this Agreement. 
  
 1. DEFINITIONS AND
CONSTRUCTION. 
  
 1.1
Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Notice or the Plan. 
  
 1.2 Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision
of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires
otherwise. 
  
 2. EXERCISE OF
PURCHASE RIGHT. 
  
 2.1 Exercise of Purchase Right. Provided that the Participant’s Service has not terminated (except as provided by Section 4), the Purchase Right shall be exercisable on and after the Date of Grant and prior to the Expiration
Date in an amount not to exceed the Total Number of Shares, subject to the Company’s repurchase rights set forth in Sections 5 and 6. 
  
 2.2 Method of Exercise of Purchase Right. Exercise of the Purchase Right shall be by written notice to the Company which must state the election to
exercise the Purchase Right, the number of whole shares of Stock for which the Purchase Right is being exercised and such other representations and agreements as to the Participant’s investment intent with respect to such shares as may be
required pursuant to the provisions of this Agreement. The written notice must be signed by the Participant and must be delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such
other means as the Company may permit, to the Chief Financial Officer of the Company, or other authorized representative of the Participating Company Group, prior to the Expiration Date, accompanied by (i) full payment of the aggregate Purchase
Price for the number of shares of Stock being purchased and (ii) an executed copy, if required herein, of the then current form of escrow agreement referenced below. The Purchase Right shall be deemed to be exercised upon receipt by the Company of
such written notice, the aggregate Purchase Price, and, if required by the Company, such executed agreements. 
  

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 2.3 Payment of Purchase Price. Payment of the aggregate Purchase Price for the number of shares of
Stock for which the Purchase Right is being exercised shall be made in cash, by check, or cash equivalent, or in the form of the Participant’s past service rendered to a Participating Company or for its benefit having a value not less than the
aggregate purchase price of the shares being acquired. 
  
 2.4
Tax Withholding. At the time the Purchase Right is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the
Participant, and otherwise agrees to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Participating Company Group, if any, which arise in connection with the shares
acquired pursuant to this Agreement, including, without limitation, obligations arising upon (i) the exercise, in whole or in part, of the Purchase Right, (ii) the transfer, in whole or in part, of any shares acquired, or (ii) the lapsing of any
restriction with respect to any shares acquired. The Purchase Right is not exercisable unless the tax withholding obligations of the Participating Company Group are satisfied. Accordingly, the Company shall have no obligation to deliver shares of
Stock or to release shares of Stock from an escrow established pursuant to this Agreement until the tax withholding obligations of the Participating Company Group have been satisfied by the Participant. 
  
 2.5 Certificate Registration. The certificate for the shares of Stock
purchased shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant. 
  
 2.6 Restrictions on Sale and Issuance of Shares. The sale and issuance of shares of Stock shall be subject to compliance with all applicable
requirements of federal, state or foreign law with respect to such securities. The Purchase Right may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign
securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, the Purchase Right may not be exercised unless (i) a registration statement under the
Securities Act shall at the time of exercise of the Purchase Right be in effect with respect to the shares issuable upon exercise of the Purchase Right or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the
Purchase Right may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any,
deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Purchase Right shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such
requisite authority shall not have been obtained. As a condition to the exercise of the Purchase Right, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  

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 3. VESTING OF SHARES.

  
 Except as otherwise provided in the Plan, shares acquired
pursuant to this Agreement shall become Vested Shares as provided in the Notice. 
  
 4. NONTRANSFERABILITY OF PURCHASE RIGHT. 
  
 The Purchase Right may be exercised during the lifetime of the Participant only by the Participant or the Participant’s
guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Participant, the Purchase Right may be exercised prior to the Expiration Date
by the Participant’s legal representative or by any person empowered to do so under the deceased Participant’s will or under the then applicable laws of descent and distribution. 
  
 5. UNVESTED SHARE
REPURCHASE OPTION. 
  
 5.1 Grant of Unvested Share Repurchase Option. In the event the Participant’s Service with the Participating Company Group is terminated for Cause (as defined below), or the Participant voluntarily ceases
to provide Services to the Participating Company Group without Good Reason (as defined below) (other than death or disability (meaning the Participant’s inability to perform the Participant’s duties for any consecutive 90 day period in any
one year period as a result of physical or mental impairment as determined by a physician reasonably accepted by the Company)), or, if the Participant, the Participant’s legal representative, or other holder of shares acquired pursuant to this
Agreement, attempts to sell, exchange, transfer, pledge, or otherwise dispose of (other than pursuant to an Ownership Change Event) any Unvested Shares, as defined in Section 5.2 below (the “Unvested Shares”), the Company
shall have the right to repurchase the Unvested Shares under the terms and subject to the conditions set forth in this Section 5 (the “Unvested Share Repurchase Option”). 
  
 5.2 Unvested Shares Defined. The “Unvested
Shares” shall mean, on any given date, the number of shares of Stock acquired upon exercise of the Purchase Right which exceed the Vested Shares determined as of such date. 
  
 5.3 Exercise of Unvested Share Repurchase Option. The Company may exercise the Unvested Share Repurchase Option by
written notice to the Participant within sixty (60) days after (a) termination of the Participant’s Service as described in Section 5.1, or (b) the Company has received notice of the attempted disposition of Unvested Shares. If the Company
fails to give notice within such sixty (60) day period, the Unvested Share Repurchase Option shall terminate unless the Company and the Participant have extended the time for the exercise of the Unvested Share Repurchase Option. The Unvested Share
Repurchase Option must be exercised, if at all, for all of the Unvested Shares, except as the Company and the Participant otherwise agree. 
  
 5.4 Payment for Shares and Return of Shares to Company. The purchase price per share being repurchased by the Company shall be an amount equal to
the Participant’s original cost per share, as adjusted pursuant to Section 8 (the “Repurchase Price”). The Company shall pay the aggregate Repurchase Price to the Participant in cash within thirty (30) 
  

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 days after the date of the written notice to the Participant of the Company’s exercise of the Unvested Share
Repurchase Option. For purposes of the foregoing, cancellation of any purchase money indebtedness of the Participant to any Participating Company for the shares shall be treated as payment to the Participant in cash to the extent of the unpaid
principal and any accrued interest canceled. The shares being repurchased shall be delivered to the Company by the Participant at the same time as the delivery of the Repurchase Price to the Participant. 
  
 5.5 Assignment of Unvested Share Repurchase Option. The Company shall
have the right to assign the Unvested Share Repurchase Option at any time, whether or not such option is then exercisable, to one or more persons as may be selected by the Company. 
  
 5.6 Ownership Change Event. Upon the occurrence of an Ownership Change Event, any and all new, substituted or
additional securities or other property to which the Participant is entitled by reason of the Participant’s ownership of Unvested Shares will be Vested Shares and no longer subject to the Unvested Share Repurchase Option. 
  
 5.7 Certain Definitions.  
  
 (a) For purposes of this Agreement, a termination for
“Cause” occurs if the Participant is terminated for any of the following reasons: (i) theft, dishonesty, misconduct or falsification of any employment or Participating Company records; (ii) improper disclosure of a
Participating Company’s confidential or proprietary information; (iii) any action by the Participant which has a material detrimental effect on a Participating Company’s reputation or business; (iv) the Participant’s failure or
inability to perform any assigned duties after written notice from the Company’s Board of Directors to the Participant of, and a reasonable opportunity to cure, such failure or inability; or (v) the Participant’s conviction (including any
plea of guilty or no contest) for any criminal act that impairs the Participant’s ability to perform the Participant’s duties. 
  
 (b) For purposes of this Agreement, “Good Reason” means any of the following conditions, which condition(s) remain(s) in effect
ten (10) days after written notice to the Company’s Board of Directors from the Participant of such condition(s): 
  
 (i) a decrease in the Participant’s base salary and/or a material decrease in any of the Participant’s then-existing bonus plans or employee
benefits; 
  
 (ii) a material, adverse change in the
Participant’s title, authority, responsibilities or duties, as measured against the Participant’s title, authority, responsibilities or duties immediately prior to such change; 
  
 (iii) the relocation of the Participant’s work place for the Company to a location outside the County of King,
Washington; or 
  
 (iv) the Company’s refusal to pay the
Participant reasonable commuting costs in the event that the Participant’s work place for the Company is relocated outside the Bellevue, Washington area. 
  

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 6. ESCROW. 
  
 6.1 Establishment of Escrow. To ensure that shares subject to the Unvested Share Repurchase Option will be available
for repurchase, the Company may require the Participant to deposit the certificate evidencing the shares which the Participant purchases upon exercise of the Purchase Right with an agent designated by the Company under the terms and conditions of an
escrow agreement in the form approved by the Company. If the Company does not require such deposit as a condition of exercise of the Purchase Right, the Company reserves the right at any time to require the Participant to so deposit the certificate
in escrow. Upon the occurrence of an Ownership Change Event or a change, as described in Section 7, in the character or amount of any of the outstanding stock of the corporation the stock of which is subject to the provisions of this Agreement, any
and all new, substituted or additional securities or other property to which the Participant is entitled by reason of the Participant’s ownership of shares of Stock acquired upon exercise of the Purchase Right that remain, following such
Ownership Change Event or change described in Section 7, subject to the Unvested Share Repurchase Option shall be immediately subject to the escrow to the same extent as such shares of Stock immediately before such event. The Company shall bear the
expenses of the escrow. 
  
 6.2 Delivery of Shares to
Participant. As soon as practicable after the expiration of the Unvested Share Repurchase Option, but not more frequently than twice each calendar year, the agent shall deliver to the Participant the shares and any other property no longer
subject to such restrictions. 
  
 6.3 Notices and Payments.
In the event the shares and any other property held in escrow are subject to the Company’s exercise of the Unvested Share Repurchase Option, the notices required to be given to the Participant shall be given to the escrow agent, and any payment
required to be given to the Participant shall be given to the escrow agent. Within thirty (30) days after payment by the Company, the escrow agent shall deliver the shares and any other property which the Company has purchased to the Company and
shall deliver the payment received from the Company to the Participant. 
  
 7. ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. 
  
 Subject to any required action by the stockholders of the Company, in the event of any change in the Stock effected without
receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of
shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that has
a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number, purchase price and class of shares of stock or other property subject to this Agreement, in order to prevent
dilution or enlargement of the Participant’s rights under the Agreement. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the
Company.” Any and all new, substituted or additional securities or other property to which Participant is entitled by reason of his ownership of shares acquired pursuant to this Agreement will be immediately subject to the provisions of

  

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 this Agreement on the same basis as all shares originally purchased hereunder. For purposes of Sections 5 and 6 hereof,
while the total price payable to exercise the rights provided in such sections will remain the same after each such event, the price payable per share to exercise such rights will be appropriately adjusted. 
  
 8. TAX MATTERS.

  
 8.1 Election under Section 83(b) of the Code. The
Participant understands that Section 83 of the Code taxes as ordinary income the difference between the amount paid for the shares and the fair market value of the shares as of the date any restrictions on the shares lapse. In this context,
“restriction” means the right of the Company to buy back the shares pursuant to the Unvested Share Repurchase Option contained in this Agreement. The Participant understands that he may elect to be taxed at the time the shares are
purchased rather than when and as the Unvested Share Repurchase Option expires by filing an election under Section 83(b) of the Code with the IRS no later than thirty (30) days after the date of purchase. Even if the fair market value of the shares
equals the amount paid for the shares, the election must be made to avoid adverse tax consequences in the future. The form for making this election is included as an attachment to the Notice or may be requested from the Company. The Participant
understands that failure to make this filing timely will result in the recognition of ordinary income by the Participant as the Unvested Share Repurchase Option lapses on the difference between the purchase price and the fair market value of the
shares at the time such restrictions lapse. 
  
 8.2 Notice to
Company. The Participant will notify the Company in writing if the Participant files an election pursuant to Section 83(b) of the Code. The Company intends, in the event it does not receive from the Participant evidence of such filing, to claim
a tax deduction for any amount which would otherwise be taxable to the Participant in the absence of such an election. 
  
 8.3 Consultation with Tax Advisors. The Participant understands that he or she should consult with his or her tax advisor regarding the
advisability of filing with the IRS an election under Section 83(b) of the Code. Failure to file an election under Section 83(b), if appropriate, may result in adverse tax consequences to the Participant. The Participant acknowledges that he or she
has been advised to consult with a tax advisor regarding the tax consequences to the Participant of the purchase of shares hereunder. AN ELECTION UNDER SECTION 83(b) MUST BE FILED NO LATER THAN 30 DAYS AFTER THE DATE ON WHICH PARTICIPANT PURCHASES
THE SHARES. THIS TIME PERIOD CANNOT BE EXTENDED. PARTICIPANT ACKNOWLEDGES THAT TIMELY FILING OF A SECTION 83(b) ELECTION IS PARTICIPANT’S SOLE RESPONSIBILITY, EVEN IF PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO FILE SUCH ELECTION
ON HIS OR HER BEHALF. 
  
 9.
LEGENDS. 
  
 The
Company may at any time place legends referencing the Unvested Share Repurchase Option and any applicable federal, state or foreign securities law restrictions on all certificates representing shares of stock subject to the provisions of this
Agreement. The 
  

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 Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing
shares acquired pursuant to this Agreement in the possession of the Participant in order to carry out the provisions of this Section. Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be
limited to, the following: 
  
 “THE SHARES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND REPURCHASE OPTIONS IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN
INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION.” 
  
 10. RESTRICTIONS ON TRANSFER OF SHARES. 
  
 No shares acquired upon exercise of the Purchase Right may be sold, exchanged, transferred (including, without limitation,
any transfer to a nominee or agent of the Participant), assigned, pledged, hypothecated or otherwise disposed of, including by operation of law, in any manner which violates any of the provisions of this Agreement and, except pursuant to an
Ownership Change Event, until the date on which such shares become Vested Shares, and any such attempted disposition shall be void. The Company shall not be required (a) to transfer on its books any shares which will have been transferred in
violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares will have been so transferred. 

 
 11. RIGHTS AS A
SHAREHOLDER. 
  
 The
Participant shall have no rights as a shareholder with respect to any shares covered by the Purchase Right until the date of the issuance of a certificate for the shares for which the Purchase Right has been exercised (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued,
except as provided in Section 7. Subject the provisions of this Agreement, the Participant shall exercise all rights and privileges of a shareholder of the Company with respect to shares of Stock of the Participant deposited in escrow pursuant to
Section 7. 
  
 12. RIGHTS AS
AN EMPLOYEE OR CONSULTANT. 
  
 If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment
agreement between a Participating Company and the Participant, the Participant’s employment is “at will” and is for no specified term. Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of
a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Participant’s Service as an Employee or Consultant, as the case may be, at any time. 
  

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 13. ADMINISTRATION. 
  
 All questions of interpretation concerning the Notice and this Agreement
shall be determined by the Board. All determinations by the Board shall be final and binding upon all persons having an interest in this Agreement. Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election. 
  
 14. MISCELLANEOUS
PROVISIONS. 
  
 14.1
Further Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement. 
  
 14.2 Binding Effect. This Agreement shall inure to the benefit of the
successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns. 
  
 14.3 Termination or Amendment. The Board may terminate or amend the
Plan or this Agreement at any time; provided, however, that no such termination or amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant, unless such termination or amendment is
necessary to comply with any applicable law or government regulation. No amendment or addition to this Agreement shall be effective unless in writing. 
  
 14.4 Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that
this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, with postage and fees prepaid, addressed to the other party
at the address shown below that party’s signature in the Notice or at such other address as such party may designate in writing from time to time to the other party. 
  
 14.5 Integrated Agreement. The Notice, this Agreement and the Plan constitute the entire understanding and agreement
of the Participant and the Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the
Participating Company Group with respect to such subject matter other than those as set forth or provided for herein or therein. 
  
 14.6 Applicable Law. The Agreement shall be governed by the laws of the State of Washington as such laws are applied to agreements between
Washington residents entered into and to be performed entirely within the State of Washington. 
  

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 14.7 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 
  

							
	 	 	 	 	SAFLINK CORPORATION
				
	 	 	 	 	By:	 	  

	 	 	 	 	Title:	 	  

			
	 	 	 	 	PARTICIPANT
			
	 Date:

	 	 	 	  

	 	 	 	 	Participant Address:
	 	 	 	 	  

	 	 	 	 	  

  

 9 

			
	Participant:	 	  

	Date:	 	  

  
 NOTICE OF
EXERCISE OF STOCK PURCHASE RIGHT 
  
 SAFLINK Corporation 
 Attention: Chief Financial Officer 
 777 108th Avenue NE 
 Suite 2100 
 Bellevue, WA 98004 
  
 Ladies and Gentlemen: 
  
 1. Stock Purchase Right. I was granted a right to purchase (the “Purchase Right”)
shares of the common stock (the “Shares”) of SAFLINK Corporation (the “Company”) pursuant to the Company’s 2000 Stock Incentive Plan (the “Plan”), my Notice of Grant of
Stock Purchase Right (the “Notice”) and my Stock Purchase Agreement (the “Agreement”) as follows: 
  

			
	 Grant Number:
	 	  

	 Date of Grant:
	 	  

	 Total Number of Shares:
	 	  

	 Purchase Price per Share:
	 	 $

  
 2. Exercise of
Purchase Right. I hereby elect to exercise my Purchase Right for the following number of Shares: 
  

			
	 Vested Shares:
	 	  

	 Unvested Shares:
	 	  

	 Total Shares Purchased:
	 	  

	 Total Purchase Price (Total Shares X Price per Share)
	 	 $

  
 3.
Payments. I enclose payment in full of the total purchase price for the Shares in the following form(s), as authorized by my Agreement: 
  

			
	  ̈ Cash:
	 	 $

	  ̈ Check:
	 	 $

	  ̈ Credit for Services
Rendered:
	 	 $

  
 4. Tax
Withholding. I authorize payroll withholding and otherwise will make adequate provision for the federal, state, local and foreign tax withholding obligations of the Company, if any, in connection with my purchase of the Shares. I enclose
payment in full of my withholding taxes, if any, as follows: 
  
 (Contact Plan Administrator for amount of tax due.) 
  

			
	  ̈ Cash:
	 	 $

	  ̈ Check:
	 	 $

  

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 5. Participant Information. 
  

	
	 My address is:

	  

	
	 My Social Security Number is:

  
 6. Binding
Effect. I agree that the Shares are being acquired in accordance with and subject to the terms, provisions and conditions of the Agreement, including the Unvested Share Repurchase Option set forth therein, to all of which I hereby expressly
assent. This Agreement shall inure to the benefit of and be binding upon my heirs, executors, administrators, successors and assigns. If required by the Company, I agree to deposit the certificate(s) evidencing the Shares, along with a blank stock
assignment separate from certificate executed by me, with an escrow agent designated by the Company, to be held pursuant to the Company’s standard Joint Escrow Instructions. 
  
 8. Election Under Section 83(b) of the Code. I understand and acknowledge that if I am exercising the Purchase
Right to purchase Unvested Shares (i.e., shares that remain subject to the Company’s Unvested Share Repurchase Option), that I should consult with my tax advisor regarding the advisability of filing with the Internal Revenue Service an election
under Section 83(b) of the Code, which must be filed no later than thirty (30) days after the date on which I purchase the Shares. I acknowledge that I have been advised to consult with a tax advisor prior to the exercise of the Purchase Right
regarding the tax consequences to me of exercising the Purchase Right. AN ELECTION UNDER SECTION 83(b) MUST BE FILED WITHIN 30 DAYS AFTER THE DATE ON WHICH I PURCHASE SHARES. THIS TIME PERIOD CANNOT BE EXTENDED. I ACKNOWLEDGE THAT TIMELY FILING OF A
SECTION 83(b) ELECTION IS MY SOLE RESPONSIBILITY, EVEN IF I REQUEST THE COMPANY OR ITS REPRESENTATIVES TO FILE SUCH ELECTION ON MY BEHALF. 
  
 I understand that I am purchasing the Shares pursuant to the terms of the Plan, the Notice and my Agreement, copies of which I have received and carefully
read and understand. 
  

	
	 Very truly yours,

	
	  

	 (Signature)

  
 Receipt of the above is hereby
acknowledged. 
  

			
	SAFLINK CORPORATION
		
	 By:
	 	  

	 Title:
	 	  

	 Dated:
	 	  

  

 2Employment Agreement

 Exhibit 10.9 
 SAFLINK CORPORATION 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT is made and entered
into on this 1st day of November, 2004, BETWEEN: 
  

	 	(1)	SAFLINK Corporation, a Delaware corporation (“SAFLINK”); and, 

  

	 	(2)	Jeff Affuso (“the Employee”), a resident of Fairfax, Virginia. 

  
 SAFLINK AND THE EMPLOYEE HEREBY AGREE, in consideration of the mutual obligations and covenants set forth below, to the following terms and conditions: 
  
 1. Employment 
  
 SAFLINK shall employ the Employee on an at-will basis effective on the date specified above, subject to the terms and conditions set forth
in this Employment Agreement (“the Employment”). 
  
 2. Duties

  

	 	2.1	SAFLINK shall employ the Employee as President, Public Sector. The Employee shall faithfully and diligently perform the duties and responsibilities assigned to him by SAFLINK in its
sole discretion. The Employee expressly acknowledges and agrees that it is necessary to submit to a finger, eye and voice scan to utilize SAFLINK’s software to perform the Employee’s required duties. SAFLINK may, in its sole discretion,
alter the Employee’s position or job duties, as it deems appropriate. 

  

	 	2.2	This is a full-time, exempt position. The Employee shall devote all of his time, attention, and best efforts to SAFLINK’s business. 

  

	 	2.3	The Employee agrees to comply with all federal, state, and local laws applicable to his Employment. The Employee further agrees to fully cooperate with SAFLINK in complying with all
of SAFLINK’s legal obligations and shall provide any information necessary or requested to satisfy such legal obligations, including but not limited to a taxpayer identification number or other identifying information used in the reporting of
income to federal, state and local tax authorities. The Employee agrees to comply with all of SAFLINK’s rules, regulations, and policies in force during the Employment. 

  
 3. Compensation 
  

	 	3.1	 Annual Base Salary: The Employee’s initial Annual Base Salary shall be two hundred thousand dollars ($200,000) per year, payable in accordance with the 

  

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normal payroll practices of SAFLINK, less required deductions and withholdings. Future adjustments in compensation, if any, will be made by SAFLINK in its
sole and absolute discretion. In the event Employee’s employment hereunder is terminated by either party, for any reason, Employee will earn the Annual Base Salary prorated to the date of termination. 
  

	 	3.2	Incentive Stock Option: Subject to SAFLINK’s Board of Directors’ approval, Employee will be granted an incentive stock option to purchase 235,000 shares of SAFLINK
Corporation Common Stock under the SAFLINK Corporation 2000 Stock Incentive (the “Plan”) at an exercise price equal to the fair market value of that stock on the date of the grant (the “Option”). The Option will vest over three
(3) years in thirty-six (36) equal monthly installments and subject to a nine (9) month probationary cliff. The Option and any subsequent stock option grants will be subject to the terms and conditions of the Plan and the standard stock option
agreement provided pursuant to the Plan, which Employee will be required to sign as a condition of receiving the Option or any subsequent stock option grants. 

  

	 	3.3	Fringe Benefits: The Employee shall receive such fringe benefits and be entitled to participate in such insurance or other benefit plans which are made available to comparable
full-time employees of SAFLINK from time to time. It is expressly understood and agreed that, consistent with applicable law, SAFLINK may from time to time, in its sole discretion, discontinue or modify the terms and conditions of any benefits made
available to the Employee. 

  

	 	3.4	Annual Bonus: Employee shall be eligible to receive an “Annual Bonus” equal to 50% of Employee’s Annual Base Salary subject to the terms and conditions of the Annual
Bonus, which will be determined by SAFLINK’s CEO in his sole and absolute discretion and be set forth in a writing signed by the CEO. 

  

	 	3.5	Retention Agreement: As a condition of employment, Employee agrees to sign SAFLINK’s standard Retention Agreement provided to select management/officer personnel.

  
 4. Reasonableness of Restrictions 
  
 The Employee acknowledges that, during the Employment, SAFLINK will provide the Employee
with the use of and access to trade secrets and confidential information. In turn, the Employee recognizes that, while performing his duties hereunder he will have access to and come into contact with trade secrets and confidential information
belonging to SAFLINK and will obtain personal knowledge of and influence over its customers and/or employees. The Employee therefore agrees that the restrictions contained in Sections 5, 6, 7 and 8 are reasonable and necessary to protect the
legitimate business interests of SAFLINK. 
  

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 5. Duty of Loyalty 
  
 The Employee agrees that he shall devote his full working time, attention and efforts to SAFLINK’s business. In all aspects of the Employee’s employment with
SAFLINK, the Employee shall act in the utmost good faith, fair dealing with SAFLINK, and fully disclose to SAFLINK all information which SAFLINK might reasonably consider important to SAFLINK’s business. While employed by SAFLINK, the Employee
shall not establish, operate, participate in, advise, or assist to establish in any manner whatsoever any business in competition with SAFLINK’s business, and the Employee shall not take any preliminary or preparatory steps toward establishing
or operating such a business, including soliciting clients or other employees of SAFLINK with respect to such business prospects, or even discussing said business prospects with clients or other employees of SAFLINK. The Employee shall not take
action which would divert from SAFLINK any business opportunity in which SAFLINK may or could be interested. The Employee shall immediately notify SAFLINK of any actual or potential business opportunity related to SAFLINK’s core business of
which the Employee becomes aware, whether or not the Employee believes the opportunity is of interest to SAFLINK.  
  
 6. Confidentiality 
  

	 	6.1	The Employee shall neither during the Employment (except in the proper performance of his duties) nor at any time (without limit) after the termination thereof, howsoever arising,
directly or indirectly: 

  

	 	6.1.1	use for his own purposes or those of any other person, company, business entity, or other organization whatsoever, or, 

  

	 	6.1.2	disclose to any person, company, business entity, or other organization whatsoever, 

  
 any trade secrets or confidential information relating or belonging to SAFLINK, including but not limited to any such
information relating to clients or customers, client or customer lists or requirements, market information, product designs, business plans or dealings, financial information and plans, trading models, market access information, research activities,
any document marked Confidential, or any information which the Employee has been told is Confidential or which he might reasonably expect SAFLINK would regard as Confidential, or any information which has been given SAFLINK in confidence by
customers, suppliers, or other persons. Even if a document has not been marked “Confidential,” the Employee shall treat the document and its contents as confidential information if the Employee has been told or otherwise knows or
reasonably should know the document and its contents are confidential. 
  

	 	6.2	The Employee shall not at any time during the continuance of the Employment with SAFLINK make any notes or memoranda relating to any matter within the scope of SAFLINK’s
business, dealings, or affairs otherwise than for the benefit of SAFLINK. 

  

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	 	6.3	In the event of a breach or a threatened breach by the Employee of the provisions of this Section, SAFLINK shall be entitled to an injunction restraining the Employee from
disclosing, in whole or in part, such information or from rendering any services to any person, firm, corporation, association, or other entity to whom such information has been disclosed or is threatened to be disclosed. Nothing herein shall be
construed as prohibiting SAFLINK from pursuing any other remedies available to SAFLINK for such breach or threatened breach, including the recovery of damages from the Employee. 

  
 7. Copyright, Inventions And Patents 
  

	 	7.1	The Employee agrees to make prompt full written disclosure to SAFLINK and to hold in trust for the sole right, benefit, and use of SAFLINK, any inventions, discoveries, developments
and improvements (“Inventions”), whether or not patentable, and works of authorship, whether or not copyrightable, which are conceived, developed, or reduced to practice, or caused to be conceived, developed, or reduced to practice, during
the Employee’s employment. 

  

	 	7.2	The Employee further agrees to assign and does hereby assign to SAFLINK all right, title, and interest in and to all such Inventions and works of authorship, and further agrees,
during the Employment and thereafter, at SAFLINK’s request and expense, to review, execute, acknowledge and deliver any and all papers necessarily related to applications for patents and copyrights, and to execute any oath or declaration and
verify any document in connection with carrying out the terms of this Agreement, except that, consistent with the provisions of the Washington Employee Patent Act, Title 49, Chapter 49.44, the Employee shall not be obligated to assign an Invention
or work of authorship for which no equipment, supplies, facilities, or trade secret information of SAFLINK was used, and which was developed entirely on the Employee’s own time unless: 

  

	 	7.2.1	the invention relates to: 

  

	 	7.2.1.1	    the business of SAFLINK; or 

  

	 	7.2.1.2	    SAFLINK’s actual or demonstrably anticipated research or development; or 

  

	 	7.2.2	the invention results from any work performed by the Employee for SAFLINK. 

  
 Notice is hereby provided that the obligation by the Employee to assign Inventions under this Agreement does not apply to an invention which qualifies
under the provisions of the Washington Employee Patent Act, Title 49, Chapter 49.44, or any revisions thereof or amendments thereto. 
  

 - 4 - 

	 	7.3	In the event SAFLINK is unable for any reason whatsoever to secure the signature of the Employee to any lawful and necessary documents required, including those necessary for the
assignment of, application for, or prosecution of any United States or foreign applications for letters patent or copyright, the Employee hereby irrevocably designates and appoints SAFLINK and its duly authorized officers and agents as agent and
attorney in fact, to act for and on the Employee’s behalf and stead to execute and file any such application, and to do all other lawfully permitted acts to further the assignment, prosecution and issuance of letters patent or copyright
thereof, with the same legal force and effect as if executed by the Employee. The Employee hereby waives and quitclaims to SAFLINK any and all claims of any nature whatsoever which the Employee may now have or may hereafter have for infringement of
any patent or copyright resulting from such application. 

  

	 	7.4	The Employee agrees that any copyrights in work produced by the Employee during his employment with SAFLINK which relate to past, present or foreseeable business, products,
developments, technology or activities of SAFLINK shall be considered as a “work for hire.” 

  

	 	7.5	The Employee represents that there is no agreement with any other party which would conflict with the Employee’s obligations under this Agreement. 

  
 8. Covenant Not to Compete 
  

	 	8.1	Employee agrees that, during the term of Employee’s employment and for a period of one year immediately following the termination of such employment for any reason whatsoever
(the “Restricted Period”), Employee shall not, either directly or indirectly, with or without compensation, individually or as employee, broker, agent consultant, contractor, advisor, solicitor, greater than 5% stockholder, trust
beneficiary, proprietor, partner, or person interested in, affiliated with or rendering services to any other entity, engage in, provide, offer to provide, or assist anyone in providing, services to or for a business that is substantially the same
as or similar to Employer’s Business or that competes with Employer’s Business, directly or indirectly, within the applicable market or markets serviced by Employer and in which Employee performs or performed services for Employer.
Employee shall not at any time during the Restricted Period directly or indirectly compete with Employer, its affiliates or its dealers, within such market or markets. 

  

	 	8.2	Employee further agrees that at all times during the Restricted Period, neither Employee nor any person or entity otherwise connected with Employee shall directly or indirectly
solicit or aid others in soliciting, or otherwise assist Customers in obtaining service provided through any competitor of Employer in those markets being serviced by Employer. 

  

	 	8.3	 Employee further agrees that during that portion of the Restricted Period following termination, Employee shall not interfere with the established Business
relationship between Employer and its Customers, shall not call upon any Customer of 

  

 - 5 - 

 
Employer’s Business for the purpose of soliciting, selling, providing or delivering services or products of the kind which are the subject of
Employer’s Business, and shall not render or provide any service to any Customer, including any person who was a Customer of Employer during the time that Employee was employed with Employer, that is the same as or similar to the service
provided in Employer’s Business. 
  

	 	8.4	Employee further agrees that while employed by Employer and during the Restricted Period, Employee shall not directly or indirectly induce or attempt to influence any employee of
Employer to terminate his/her employment with Employer or to work for Employee or any other person or entity. 

  

	 	8.5	Employee hereby acknowledges he has received adequate consideration to support his promises set forth in this section 8 and its subparts, including Employee’s new and
continuing employment, SAFLINK’s disclosure of confidential, proprietary and/or trade secret information and provision of specialized training and knowledge. Employee acknowledges that the restrictions set forth in this section 8 are reasonable
and do not impose greater restraint than is necessary to protect the goodwill and business interests of SAFLINK, and are not unduly burdensome to Employee. Employee further agrees that the restrictions allow Employee an adequate number and variety
of employment alternatives based on Employee’s varied skills and abilities. 

  
 9. At-Will Employment 
  

	 	9.1	SAFLINK and the Employee agree that this employment relationship is at-will and not for any specified period and may be terminated at any time, with or without cause or advance
notice, by either Employee or SAFLINK. In addition, SAFLINK reserves the right to modify Employee’s position or duties to meet business needs and to use discretion in deciding on appropriate discipline. No representative of SAFLINK, other than
the CEO, has the authority to alter the at-will employment relationship. Any change to the at-will employment relationship must be by specific, written agreement signed by Employee and CEO. Nothing in this Agreement is intended to or should be
construed to contradict, modify or alter this at-will relationship. 

  

	 	9.2	On termination of the Employment, the Employee shall return to SAFLINK in accordance with its instructions all of SAFLINK’s proprietary technology and trading models, records,
software, models, reports, and other documents and any copies thereof and any other property belonging to SAFLINK which are in the Employee’s possession or under his control. The Employee shall, if so required by SAFLINK, confirm in writing his
compliance with his obligations under this Clause.  

  

	 	9.3	The termination of the Employment shall be without prejudice to any right SAFLINK may have in respect of any breach by the Employee of any provisions of this Employment Agreement
which may have occurred prior to such termination. 

  

 - 6 - 

	 	9.4	In the event of termination of the Employment hereunder however arising, the Employee agrees that he will not at any time after such termination represent himself as still having
any connection with SAFLINK, except as a former employee. 

  

	 	9.5	Upon a termination of employment, SAFLINK shall be relieved of all further obligations under this Employment Agreement, except as otherwise required by law. Notwithstanding such
termination of employment, the Employee shall continue to be bound by the surviving provisions of this Agreement, including but not limited to Sections 6 ,7 and 8 and their subparts. 

  
 10. Severability 
  
 The various provisions and sub-provisions of this Employment Agreement are severable, and if any provision or sub-provision or identifiable
part thereof is held to be invalid or unenforceable by any arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that
the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the
validity and enforceability of the remaining provisions shall not be affected thereby. 
  
 11. Warranty 
  
 The Employee represents and warrants that he is
not prevented by any other Employment Agreement, arrangement, contract, understanding, Court Order or otherwise, which in any way directly or indirectly conflicts, is inconsistent with, or restricts or prohibits him from fully performing the duties
of the Employment, in accordance with the terms and conditions of this Employment Agreement. 
  
 12. Notices 
  
 Any notice to be given
hereunder may be delivered to (a) in the case of SAFLINK, by first class mail addressed to its Registered Office and (b) in the case of the Employee, either to him personally or by first class mail to his last known residence address. Notices served
by mail shall be deemed given when they are mailed. 
  
 13. Waivers and
Amendments 
  
 No act, delay, omission, or course of dealing on the part of
any party hereto in exercising any right, power, or remedy hereunder shall operate as, or be construed as, a waiver thereof or otherwise prejudice such party’s rights, powers, and remedies under this Employment Agreement. This Employment
Agreement may be amended only by a written instrument signed by the Employee and a duly authorized officer of SAFLINK. 
  

 - 7 - 

 14. Arbitration Jurisdiction and Governing Law 
  
 To the fullest extent permitted by law, except for disputes arising under or in connection with Sections [5,] 6 and 7 [and 8],
all disputes arising under or in connection with this Employment Agreement or concerning in any way the Employee’s employment shall be submitted exclusively to arbitration in Seattle, Washington under the then current rules for the arbitration
of employment disputes by the American Arbitration Association. The arbitration shall be before a single neutral arbitrator, and the decision of the arbitrator shall be final and binding upon the parties. Judgment upon the award rendered may be
entered and enforced in any court having jurisdiction. The arbitrator shall permit adequate discovery and is empowered to award all remedies otherwise available in a court of competent jurisdiction. The arbitrator shall issue an award in writing and
state the essential findings and conclusions on which the award is based. The Employee consents to personal jurisdiction of any state or federal court sitting in King County, Washington, in order to enforce any arbitration judgment or the rights of
SAFLINK under Sections [5,] 6 and 7 [and 8] waives any objection that such forum is inconvenient. The Employee hereby consents to service of process in any such action by U.S. mail or other commercially reasonable means of receipted
delivery. This Employment Agreement shall be governed by and construed in accordance with the laws of the United States and the State of Washington. 
  
 15. Assignability 
  
 The rights and obligations contained herein shall be binding on and inure to the benefit of the successors and assigns of SAFLINK. The Employee may not assign his rights or obligations hereunder without the express
written consent of SAFLINK. 
  
 16. Headings; Construction; Interpretation

  
 The headings contained in this Employment Agreement are inserted for
reference and convenience only and in no way define, limit, extend, or describe the scope of this Employment Agreement or the meaning or construction of any of the provisions hereof. As used herein, unless the context otherwise requires, the single
shall include the plural and vice versa, words of any gender shall include words of any other gender, and “or” is used in the inclusive sense. This Agreement has been drafted by legal counsel representing SAFLINK, but Employee has
participated in the negotiation of its terms. Furthermore, Employee acknowledges that Employee has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
  
 17. Survival of Terms 
  
 Sections 6 (“Confidentiality”), 7 (“Copyright, Inventions and Patents”), 8 (“Covenant Not To Compete”), 10 (“Severability”), 12 (“Notices”), 13 (“Waivers and
Amendments”), 14 (“Arbitration, Jurisdiction and Governing Law”), 15 (“Assignability”), 16 (“Assignability”), 17 (“Survival of Terms”) and 18 (“Entire Agreement”), and all of their subparts,
survive Employee’s employment with SAFLINK. 
  

 - 8 - 

 18. Entire Agreement. 
  
 This Agreement, including the SAFLINK Corporation 2000 Stock Incentive Plan and related option documents described in section 3 of this Agreement and the Retention
Agreement signed by Employee, constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, arrangements and agreements, whether written or
oral, including all previous letters of engagement and offer letters. To the extent there are any conflicting provisions among this Employment Agreement and the Retention Agreement, the terms of this Employment Agreement shall govern. This Agreement
may be amended or modified only with the written consent of Employee and the CEO of SAFLINK. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
  
 19. Employee Acknowledgment 
  
 THE EMPLOYEE REPRESENTS THAT HE HAS HAD AMPLE OPPORTUNITY TO REVIEW THIS AGREEMENT AND THE
EMPLOYEE ACKNOWLEDGES THAT HE UNDERSTANDS THAT IT CONTAINS IMPORTANT CONDITIONS OF THE EMPLOYMENT AND THAT IT EXPLAINS POSSIBLE CONSEQUENCES, BOTH FINANCIAL AND LEGAL, IF THE EMPLOYEE BREACHES THE AGREEMENT. 
  
 AS WITNESS the hands of a duly authorized officer of SAFLINK and of the Employee the day and
year first before written. 
  

			
	SAFLINK CORPORATION
		
	BY:	 	  

	NAME	 	Jon Engman
	TITLE	 	Chief Financial Officer
	DATE	 	 
		
	BY:	 	  

	NAME	 	Jeff Affuso
	DATE	 	 

  

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