Document:

Exhibit 10.08

The stock Options represented hereby and the Common Stock underlying such
Options have not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), nor under any other state securities law or regulation
and are subject to substantial restrictions on transferability by operation of
the Securities Act and other applicable state securities laws and regulations.

                          MID-POWER SERVICE CORPORATION

                                 NOTICE OF GRANT

         MID-POWER SERVICE CORPORATION, a Nevada corporation (the "Company"), is
pleased to grant to the Optionee named below, the following Options to purchase
Shares of its common stock, par value $0.001 per Share ("Common Stock"), under
its 2002 Stock Option and Purchase Rights Plan (the "Plan") and subject to the
provisions of the Plan and the Stock Option Agreement:

         Name of Optionee:                  ____________________________________

         Address:                           ____________________________________

         Type of Option:                    [ ] Incentive Stock Option
                                            [ ] Nonstatutory Option (not an ISO)

         Date of Grant:                     ____________________________________

         Number of Shares of Common Stock
         Purchasable under this Option:

         Exercise Price:                    $_____ per Share

         Expiration Date:                   ____________________________________

         Vesting Schedule:                  One half of the shares granted in
                                            this Option shall vest upon
                                            execution of the Stock Option
                                            Agreement. The remaining half shall
                                            vest and be fully exercisable on
                                            January 1, 2003.

        The Plan may be inspected at the offices of the Secretary of the
   Company. A copy of the Plan will be provided to the Optionee upon request.

<PAGE>

                             STOCK OPTION AGREEMENT

         Unless otherwise defined herein, capitalized terms shall have the
meanings given in the Plan. References herein to "you" or "your" shall refer to
Optionee.

         1. Options. The Company hereby grants to Optionee the right and option
to purchase up to the number of Shares of Common Stock specified above, at the
Exercise Price specified above, subject to the conditions and limitations set
forth herein (the "Options").

         2. Vesting Dates. The Options shall not be exercisable until on or
after their respective Vesting Dates. The Options shall partially vest in
periodic installments on the Vesting Dates; provided, as a condition of vesting,
that the Optionee shall have been in the Continuous Service of the Company at
all times after the Date of Grant through and including each such Vesting Date.
If this is an Incentive Stock Option, the exercise price times the number of
Shares exercisable for the first time by Optionee in any calendar year as
Incentive Stock Options shall not exceed $100,000, and any Options first
becoming exercisable in any calendar year in excess of such amount shall not be
treated as Incentive Stock Options but as Nonstatutory Options.

         3. Number of Shares and Exercise Price. The number of Shares that
Optionee may purchase upon exercise of the Option (the "Option Shares") and the
Exercise Price may be adjusted from time to time for Capitalization Adjustments,
as provided in the Plan.

         4. Method of Payment. Payment of the Exercise Price is due in full upon
exercise of all or any part of the Options. Optionee may elect to make payment
of the Exercise Price in cash or by check or in any other manner permitted by
the Administrator under the Plan. As soon as practicable after receipt by the
Company of such notice and of payment in full of the Option price of all the
Shares of Common Stock with respect to which the Option has been exercised, a
certificate or certificates representing such Shares of Common Stock having been
paid for shall be issued in the name of the Optionee, or, if the Optionee shall
so request in the notice exercising the Option, in the name of the Optionee and
another person jointly, with right of survivorship, and shall be delivered to
the Optionee. If this Option is not exercised with respect to all Shares of
Common Stock subject hereto, Optionee shall be entitled to receive a similar
Option of like tenor covering the number of Shares of Common Stock with respect
to which this Option shall not have been exercised.

         5. Whole Shares. The Options may only be exercised for whole Shares of
Common Stock. Fractional Shares of Common Stock shall not be issued.

         6. Securities Law Compliance; Limitation of Exercise; Extension of
Exercise Period. If the Board of Directors of the Company, in its sole
discretion, shall determine that it is necessary or desirable to list, register
or qualify the Option Shares under any state or federal law, these Options may
not be exercised, in whole or part, until such listing, registration or
qualification shall have been obtained free of any conditions not acceptable to
the Board of Directors. If no registration statement is effective on the date of
exercise of these Options, the Option Shares will not be issued unless and until
there is evidence available to the Company, including representations from the
Optionee that such Shares are being acquired for investment and not for resale,
on which the Company may reasonably rely as to the availability of an exemption
from registration in issuing such Shares. The Company shall utilize its best
efforts to comply with the requirements of each regulatory commission or agency
having jurisdiction in order to issue and sell the Shares to satisfy these
Options. Such compliance will be a condition precedent to the right to exercise
these Options. The inability of the Company to effect such compliance with any
such regulatory commission or agency that counsel for the Company deems

<PAGE>

necessary for the lawful issuance and sale of the Shares to satisfy these
Options shall relieve the Company from any liability for failure to issue and
sell the Shares to satisfy these Options for such time as such compliance is not
effectuated.

         If at any time Optionee delivers a Notice of Exercise in accordance
with paragraph 8 below and the Options are not exercisable solely because of the
condition set forth in this paragraph 6, the Exercise Period (as defined in
paragraph 7) shall be correspondingly extended until the Company determines that
the Options can be exercised in compliance with this paragraph 6, at which point
the Optionee shall have the remainder of the applicable Exercise Period, as
delineated in paragraph 7, within which to exercise such Options.

         If the issuance of the Option Shares is not covered by an effective
registration statement under the Securities Act, in order to enforce the
restrictions imposed upon the Option Shares, the Company shall cause a legend or
legends to be placed upon any certificates representing such Option Shares,
which legend or legends shall be substantially as follows:

         The shares represented hereby have not been registered under the
         Securities Act of 1933, as amended (the "Act"), nor under any
         applicable state securities laws and may not be transferred without
         registration under the Act and under such state securities laws, or
         pursuant to an available exemption from the Act and such laws.

         7. Exercise Period. The vested portions of Options shall be exercisable
during the period (the "Exercise Period") commencing upon their respective
Vesting Dates and terminating upon the earliest of the following dates:

                  (a) on the date of the termination of your Continuous Service
         at any time "for cause," as defined in your separate written employment
         agreement, if any, or in the absence of a written employment agreement,
         by a good faith determination by the Board of Directors that you (i)
         have been grossly negligent in the performance of your duties; (ii)
         have engaged in material willful or gross misconduct in the performance
         of your duties; (iii) have committed an act of personal dishonesty or
         breach of fiduciary duty involving personal profit in connection with
         your employment by the Company; or (iv) have committed, as determined
         by the Board of Directors of the Company, or have been convicted of
         fraud, embezzlement, theft or dishonesty or other criminal conduct,
         unless the Board of Directors waives the provisions of this
         subparagraph;

                  (b) three months after the termination of your Continuous
         Service for any other reason;

                  (c) twelve months after the termination of your Continuous
         Service due to Disability;

                  (d) in the event of your death either during your Continuous
         Service or within three months after your Continuous Service
         terminates, six months after the issuance of letters testamentary or
         letters of administration or the appointment of an administrator,
         executor or personal representative but not later than 12 months after
         termination of your Continuous Service; or

                  (e) the Expiration Date.

         If this is an Incentive Stock Option, to obtain the federal income tax
advantages associated with such options, the Internal Revenue Code requires that
at all times beginning on the Date of Grant of the Option and ending on the day
three months before the date of the Option's exercise, you must be an Employee

                                       2
<PAGE>

of the Company or an affiliate, except in the event of your death or your
Disability. The Company has provided for extended exercisability of the Options
under certain circumstances for your benefit, but cannot guarantee that the
Options will necessarily be treated as "Incentive Stock Options" under the
Internal Revenue Code if you exercise the Option more than three months after
the date your employment with the Company or an Affiliate terminates.

         8. Exercise.

                  (a) You may exercise the vested portion of the Options during
         their Exercise Period by delivering a Notice of Exercise (in a form
         designated by the Company), together with the Exercise Price to the
         Secretary of the Company, or to such other person as the Company may
         designate, during regular business hours, together with such additional
         documents as the Company may then require.

                  (b) By exercising the Options you agree that, as a condition
         to any exercise of the Options, the Company may require you to enter an
         arrangement providing for the payment by you to the Company of any tax
         withholding obligation of the Company arising by reason of: (i) the
         exercise of the Options; (ii) the lapse of any substantial risk of
         forfeiture to which the Option Shares are subject at the time of
         exercise; or (iii) the disposition of Option Shares acquired upon such
         exercise.

                  (c) If these Options are intended to qualify as "Incentive
         Stock Options" under the provisions of the Internal Revenue Code, you
         acknowledge that in order to be entitled to receive treatment as an
         Incentive Stock Option, the holding and exercise of these Options and
         the Common Stock acquired pursuant to these Options are subject to
         certain limitations and restrictions, including a requirement that any
         Common Stock acquired hereunder be held by you until after the date
         that is both two years subsequent to the date of this Option and one
         year subsequent to the date the Common Stock is acquired pursuant to
         these Options. Failure to hold the Shares of Common Stock for the above
         period will cause a "disqualifying disposition" of the Common Stock
         resulting in the loss of Incentive Stock Option treatment and the
         associated favorable tax benefits. As a result of the disqualifying
         disposition, the Company may also be subject to certain disclosure
         requirements, and, therefore, you agree to notify the Company, in
         writing, 30 days prior to any disqualifying disposition.

                  (d) By exercising the Options you (and any other person or
         entity to which any Option Shares are transferred or assigned) agree
         that the Company (or a representative of the underwriters) may, in
         connection with the first underwritten registration of the offering of
         any securities of the Company under the Securities Act, require that
         you not sell, dispose of, transfer, make any short sale of, grant any
         option for the purchase of, or enter into any hedging or similar
         transaction with the same economic effect as a sale, any Shares of
         Common Stock or other securities of the Company, including Option
         Shares or other securities held by you, for a period of time specified
         by the underwriter(s) (not to exceed 180 days) following the effective
         date of the registration statement of the Company filed under the
         Securities Act. The Option Shares shall be subject to the foregoing
         restrictions and any assignee, transferee or other holder of the Option
         Shares shall be bound by the foregoing provisions. You further agree to
         execute and deliver such other agreements as may be reasonably
         requested by the Company and/or the underwriter(s) that are consistent
         with the foregoing or that are necessary to give further effect
         thereto. In order to enforce the foregoing covenant, the Company may
         impose stop transfer instructions with respect to your Option Shares or
         other securities until the end of such period. Further, you hereby
         constitute and appoint the Company and any of its Officers as your
         agent and attorney-in-fact with full power of substitution to act in
         your place and in your stead, and to make, execute and deliver any

                                       3
<PAGE>

         agreements or instruments consistent with the foregoing. The foregoing
         power of attorney is and shall be irrevocable, and you agree that the
         foregoing power of attorney is coupled with the Company's interest in
         and to the Option Shares.

                  (e) The Option Shares may not be sold, transferred or
         assigned, pledged or otherwise alienated or hypothecated, except in
         compliance with the Plan and this Agreement, including paragraph 10
         below.

                  (f) In order to enforce the restrictions imposed upon the
         Option Shares, the Company shall cause a legend or legends to be placed
         upon any certificates representing such Option Shares, which legend or
         legends shall be substantially as follows:

                  The shares represented hereby are subject to restrictions on
                  transferability and related repurchase rights under the
                  Company's 2002 Stock Option and Purchase Rights Plan and
                  applicable Stock Option Agreements or other agreements
                  executed in connection therewith, copies of which are
                  available at the principal business offices of the Company.

                  (g) Upon issuance, the Option Shares shall be considered to be
         fully-paid, nonassessable, issued and outstanding Shares of the
         Company, and Optionee shall be entitled to vote the Option Shares and
         receive all cash dividends and other distributions with respect
         thereto.

         9. Transferability. The Options are not transferable and are
exercisable only by you during your life or by the executors, administrators or
beneficiaries of your estate. In the event of any alienation, assignment,
pledge, hypothecation or other transfer of this Option or any right hereunder in
violation of the terms hereof or in the event of any levy, attachment, execution
or similar process, this Option and all rights granted hereunder shall be
immediately null and void.

         10. Right of First Refusal. Prior to the date the Company's Common
Stock is first listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or the Nasdaq
Smallcap Market of the Nasdaq National Market, or is regularly quoted by a
recognized securities dealer, as determined by the Administrator, the Company
shall have a "Right of First Refusal" as to all or any part of the Option Shares
on the following terms and conditions:

                  (a) Should you propose to sell or transfer any Option Shares
         in one or more related transactions, you shall promptly deliver a
         written notice (the "Transfer Notice") to the Company prior to the
         closing of such sale or transfer. The Transfer Notice shall describe in
         reasonable detail the proposed sale or transfer including, without
         limitation, the number of Shares to be sold or transferred, the nature
         of such sale or transfer, the consideration to be paid, and the name
         and address of each prospective purchaser or transferee. Upon the
         request of the Company, you shall promptly furnish to the Company such
         other information as may be reasonably requested to establish that the
         offer and prospective purchaser or transferee is bona fide.

                  (b) For 30 days following the receipt of the Transfer Notice,
         the Company shall have the option to purchase all or any portion of the
         Shares specified in the Transfer Notice upon the terms set forth in the
         Transfer Notice and at a price that is the lesser of the price set
         forth in the Transfer Notice or the Exercise Price plus interest at the
         rate of ten percent (10%) per year from the date of the exercise of the
         Options to the date the Company exercises its right of first refusal.

                                       4
<PAGE>

         In the event the Company does not elect to acquire the Shares proposed
         for sale in the Transfer Notice, the Secretary of the Company shall
         give written notice thereof to you (the "Refusal Notice"). If the
         Company fails or refuses to furnish a Refusal Notice within such 30-day
         period, the Company shall be deemed to have refused its right and
         option to purchase the Shares specified in the Transfer Notice.

                  (c) In the event the Company elects to acquire the Shares as
         specified in the Transfer Notice, the Secretary of the Company shall so
         notify you (the "Acceptance Notice"), and settlement thereof shall be
         made in cash within 30 days from the date of the Acceptance Notice. At
         such time, you shall deliver to the Company the certificates
         representing the Shares to be purchased, each certificate to be
         properly endorsed for transfer.

                  (d) Should the purchase price specified in the Transfer Notice
         be payable in property other than cash or evidence of indebtedness, the
         Company shall have the right to pay the purchase price in the form of
         cash equal in amount to the value of such property. If you and the
         Company cannot agree on such cash value within 10 days after your
         receipt of the Acceptance Notice, the valuation shall be made by an
         appraiser of recognized standing selected by you and the Company (or
         its assignees) or, if you cannot agree on an appraiser within 20 days
         after your receipt of the Acceptance Notice, each shall select an
         appraiser of recognized standing and the two appraisers shall designate
         a third appraiser of recognized standing, whose appraisal shall be
         determinative of such value. You and the Company shall equally share
         the cost of such appraisal. The closing shall then be held on the fifth
         business day after such cash valuation has been made.

                  (e) The exercise or nonexercise of the rights of the Company
         hereunder to elect to exercise the Right of First Refusal in one or
         more sales or transfers of the Shares shall not adversely affect the
         Company's rights to exercise the Right of First Refusal in subsequent
         sales or transfers of Option Shares.

                  (f) The Company's Right of First Refusal shall terminate upon
         the effective date of a registration statement pertaining to the
         Company's initial registered firm commitment underwritten public
         offering.

                  (g) If, from time to time, there is any change in the
         character or amount of any of the outstanding Shares of the Common
         Stock of the Company, then in such event any and all new, substituted
         or additional Shares to which you are entitled by reason of your
         ownership of the Option Shares shall be immediately subject to the
         Right of First Refusal with the same force and effect as the Option
         Shares subject to the Right of First Refusal immediately before such
         event.

         11. Right of Repurchase. To the extent provided in the Company's
bylaws, as amended from time to time, or as noted in paragraph 10 above, the
Company shall have the right to repurchase all or any part of the Option Shares.

         12. Options not a Service Contract. Optionee acknowledges and agrees
that the vesting of Shares pursuant to the vesting schedule hereof is earned
only by continuing as a Service Provider at the will of the Company (and not
through the act of being hired, being granted an Option, or purchasing Shares
hereunder). Optionee further acknowledges and agrees that this agreement, the
transactions contemplated hereunder, and the vesting schedule set forth herein
do not constitute an express or implied promise of continued engagement as a
Service Provider for the vesting period, for any period, or at all, and shall
not interfere with Optionee's right or the Company's right to terminate
Optionee's relationship as a Service Provider under Optionee's written

                                       5
<PAGE>

employment agreement with the Company or, in the absence of a written employment
agreement, Optionee's right or the Company's right to terminate Optionee's
relationship as a Service Provider at any time, with or without cause.

         13. Withholding Obligations.

                  (a) At the time the Options are exercised, in whole or in
         part, or at any time thereafter as requested by the Company, you hereby
         authorize withholding from payroll and any other amounts payable to
         you, and otherwise agree to make adequate provision for (including by
         means of a "cashless exercise" pursuant to a program developed under
         Regulation T as promulgated by the Federal Reserve Board to the extent
         permitted by the Company), any sums required to satisfy the federal,
         state, local and foreign tax withholding obligations of the Company or
         an affiliate, if any, which arise in connection with the Options.

                  (b) Upon your request and subject to approval by the Company,
         in its sole discretion, and compliance with any applicable conditions
         or restrictions of law, the Company may withhold from fully-vested
         Shares of Common Stock otherwise issuable to you upon the exercise of
         the Options a number of whole Shares having a Fair Market Value,
         determined by the Company as of the date of exercise, not in excess of
         the minimum amount of tax required to be withheld by law. If the date
         of determination of any tax withholding obligation is deferred to a
         date later than the date of exercise of the Options, Share withholding
         pursuant to the preceding sentence shall not be permitted unless you
         make a proper and timely election under Section 83(b) of the Internal
         Revenue Code covering the aggregate number of Shares of Common Stock
         acquired upon such exercise with respect to which such determination is
         otherwise deferred, to accelerate the determination of such tax
         withholding obligation to the date of exercise of the Options.
         Notwithstanding the filing of such election, Shares shall be withheld
         solely from fully-vested Shares of Common Stock determined as of the
         date of exercise of the Options that are otherwise issuable to you upon
         such exercise. Any adverse consequences to you arising in connection
         with such Share withholding procedure shall be your sole
         responsibility.

                  (c) The Options are not exercisable unless the tax withholding
         obligations of the Company and/or any affiliate are satisfied.
         Accordingly, you may not be able to exercise the Options when desired
         even though the Options are vested, and the Company shall have no
         obligation to issue a certificate for such Shares or release such
         Shares from any escrow provided for herein.

         14. Governing Plan Document. The Options are subject to all of the
provisions of the Plan, the provisions of which are hereby made a part of the
Options, and are further subject to all interpretations, amendments, rules and
regulations that may, from time to time, be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of the Options and
those of the Plan, the provisions of the Plan shall control. Additionally, if
this is an Incentive Stock Option, all Options granted hereunder shall be deemed
to contain such other limitations and restrictions as are necessary to conform
the Options to the requirements for "Incentive Stock Options" as defined in
Section 422 of the Internal Revenue Code or any amendment or successor statute
of like tenor.

         15. Notices. Any notices provided for in the Options or the Plan shall
be given in writing and shall be deemed effectively given upon receipt or, in
the case of notices delivered by the Company to you, five days after deposit in
the United States mail, postage prepaid, addressed to you at the last address
you provided to the Company.

                                       6
<PAGE>

         By your signature and the signature of the Company's representative
below, you and the Company agree that this Option is granted under and governed
by the terms and conditions of the Plan and this Option Agreement. Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE:                                        MID-POWER SERVICE CORPORATION

____________________________________
Signature                                        By ____________________________

____________________________________             _______________________________
Print Name                                       Title

____________________________________

____________________________________
Residence Address

                                       7
<PAGE>

                          MID-POWER SERVICE CORPORATION

                                  STOCK OPTION
                               NOTICE OF EXERCISE

Mid-Power Service Corporation                  Date of Exercise: _______________
3800 Howard Hughes Parkway, Suite 860
Las Vegas, Nevada 89109

Ladies and Gentlemen:

         This constitutes notice under my Stock Option Agreement that I elect to
purchase the number of shares for the price set forth below.

                  Type of Option (check one):   [ ] Incentive   [ ] Nonstatutory

                  Stock Option Dated:           ________________________________

                  Number of Shares as to
                  which Option Is Exercised:    ________________________________

                  Certificates To Be Issued
                  in Name Of:                   ________________________________

                  Total Exercise Price:         $_______________________________

                  Cash payment delivered
                  Herewith:                     $_______________________________

         By this exercise, I agree (i) to provide such additional documents as
you may require pursuant to the terms of the 2002 Stock Option and Purchase
Rights Plan (the "Plan") or the Stock Option Agreement, (ii) to provide for the
payment by me to you (in the manner designated by you) of your withholding
obligation, if any, relating to the exercise of this option, and (iii) if this
exercise relates to an incentive stock option, to notify you in writing 30 days
before the date of any disposition of any shares of common stock issued upon
exercise of this option that will occur within two years after the date of grant
of this option or within one year after such shares of common stock are issued
upon exercise of this option.

         I hereby make the following certifications and representations with
respect to the number of shares of common stock of the company listed above (the
"Shares"), which are being acquired by me for my own account upon exercise of my
stock option as set forth above:

         I acknowledge that I have read and understood the Plan and the Stock
Option Agreement, that both the Plan and the Stock Option Agreement are
incorporated herein by reference, and I agree to abide by and be bound by their
terms and conditions.

         I further acknowledge that until the issuance (as evidenced by the
appropriate entry on the books of the company or of a duly authorized transfer
agent of the company) of the Shares, no right to vote or receive dividends or

<PAGE>

any other right of a stockholder shall exist with regard to the optioned stock,
notwithstanding the exercise of the option.

         I further acknowledge that I may suffer adverse tax consequences as a
result of my purchase or disposition of the shares, and I represent that I have
consulted with any tax consultants I deem advisable in connection with the
purchase or disposition of the Shares and that I am not relying on the company
for any tax advice.

         I further acknowledge that the Shares have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), and are deemed to
constitute "restricted securities" under Rule 144 promulgated under the
Securities Act. I warrant and represent to the company that I have no present
intention of distributing or selling said Shares, except as permitted under the
Securities Act and any applicable state securities laws.

         I further acknowledge that I will not be able to resell the Shares for
least 90 days after the stock of the company becomes publicly traded (i.e.,
subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934) under Rule 701 and that more restrictive conditions apply
to affiliates of the company under Rule 144.

         I further acknowledge that all certificates representing any of the
Shares subject to the provisions of the option shall have endorsed thereon
appropriate legends reflecting the foregoing limitations, as well as any legends
reflecting restrictions pursuant to the company's Certificate of Incorporation,
Bylaws, and/or applicable securities laws.

         I further agree that, if required by the company (or a representative
of the underwriters) in connection with the first underwritten registration of
the offering of securities of the company under the Securities Act, I will not
sell or otherwise transfer or dispose of any Shares or other securities of the
company held by me as provided by the terms of the Plan and my Stock Option
Agreement.

         I further acknowledge that this agreement, the Plan and the Stock
Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof, supersede in their entirety any and all prior
agreements with regard to the subject matter hereof, and that this agreement may
not be amended except by a writing signed by both parties.

Submitted by:                             Accepted by:

PURCHASER:                                MID-POWER SERVICE CORPORATION

__________________________________        By _________________________________
(signature)

__________________________________        ____________________________________
(print name)                              Its

Address:                                  Address:

__________________________________        3800 Howard Hughes Parkway, Suite 860
__________________________________        Las Vegas, Nevada  89109

                                       2
<PAGE>
<TABLE>
<CAPTION>
                                    SCHEDULE OF STOCK OPTION AND BONUS GRANTS

Name                       No. of Options         Exercise Price            No. of Shares             Issuance Date
----                       --------------         --------------            -------------             -------------
<S>                             <C>                     <C>                      <C>                   <C>
Mark T. Davis                   40,000                  $1.50                    20,000                06/25/02

Kenneth M. Emter                40,000                   1.50                        --                06/25/02

Rod Lighthipe                   20,000                   1.50                    10,000                06/25/02

Susan Trimboli                  20,000                   1.50                    10,000                06/25/02

Michael T. Maloney              10,000                   1.50                        --
</TABLE>

The options granted to Michael T. Maloney vested upon execution of the Stock
Option Agreement. The options granted to the remaining recipients vest in equal
amounts upon execution of the Stock Option Agreement and January 1, 2003. All
options expire one year from the grant date.<PAGE>

                                                                     Exhibit 4.1

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR SAFLINK CORPORATION SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                               SAFLINK CORPORATION

                              Expires June 28, 2007

No.: W-__                                          Number of Shares: _________
Date of Issuance: June 28, 2002

         FOR VALUE RECEIVED, subject to the provisions hereinafter set forth,
the undersigned, SAFLINK Corporation, a Delaware corporation (together with its
successors and assigns, the "Issuer"), hereby certifies that
________________________________ or its registered assigns is entitled to
subscribe for and purchase, during the period specified in this Warrant, up to
____________________________ (__________) shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable Common Stock of the Issuer, at an exercise price per share equal
to the Warrant Price then in effect, subject, however, to the provisions and
upon the terms and conditions hereinafter set forth. Capitalized terms used in
this Warrant and not otherwise defined herein shall have the respective meanings
specified in Section 10 hereof.

         This Warrant has been issued concurrently with certain shares of the
Company's Common Stock pursuant to an effective Securities Purchase Agreement of
even date herewith between the Company and the Holder.

         1. Term. The right to subscribe for and purchase shares of Warrant
Stock represented hereby shall commence on the date of issuance of this Warrant
and shall expire at 5:00 p.m., eastern time, on June 28, 2007 (such period being
the "Term").

                                       -1-

<PAGE>

         2. Method of Exercise Payment; Issuance of New Warrant; Transfer and
Exchange.

         (a) Time of Exercise. The purchase rights represented by this Warrant
may be exercised in whole or in part at any time and from time to time during
the Term.

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, together
with the payment to the Issuer of an amount of consideration therefor equal to
the Warrant Price in effect on the date of such exercise multiplied by the
number of shares of Warrant Stock with respect to which this Warrant is then
being exercised, payable at such Holder's election (i) by certified or official
bank check or by wire transfer to an account designated by the Issuer, (ii) in
the event the Warrant Stock is not registered on an effective Registration
Statement and has not been for a period of at least two (2) Trading Days, or the
effectiveness of such Registration Statement has been suspended, by "cashless
exercise" by surrender to the Issuer for cancellation of a portion of this
Warrant representing that number of unissued shares of Warrant Stock which is
equal to the quotient obtained by dividing (A) the product obtained by
multiplying the Warrant Price by the number of shares of Warrant Stock being
purchased upon such exercise by (B) the Per Share Market Value as of the date of
such exercise, or (iii) by a combination of the foregoing methods of payment
selected by the Holder of this Warrant. In any case where the consideration
payable upon such exercise is being paid in whole or in part pursuant to the
provisions of clause (ii) of this subsection (b), such exercise shall be
accompanied by written notice from the Holder of this Warrant specifying the
manner of payment thereof and containing a calculation showing the number of
shares of Warrant Stock with respect to which rights are being surrendered
thereunder and the net number of shares to be issued after giving effect to such
surrender.

         (c) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding ten (10) Trading Days after such
exercise, and the Holder hereof shall be deemed for all purposes to be the
Holder of the shares of Warrant Stock so purchased as of the date of such
exercise, and (ii) unless this Warrant has expired, a new Warrant representing
the number of shares of Warrant Stock, if any, with respect to which this
Warrant shall not then have been exercised (less any amount thereof which shall
have been canceled in payment or partial payment of the Warrant Price as
hereinabove provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

         (d) Transferability of Warrant. Subject to Subsection 2(e), this
Warrant may be transferred by a Holder without the consent of the Issuer. If
transferred pursuant to this paragraph and subject to the provisions of
subsection (e) of this Section 2, this Warrant may be transferred on the books
of the Issuer by the Holder hereof in person or by duly authorized attorney,
upon surrender of this Warrant at the principal office of the Issuer, properly
endorsed (by the Holder executing an assignment in the form attached hereto) and
upon payment of any necessary transfer tax or other governmental charge imposed
upon such transfer. This Warrant is exchangeable at the principal office of the
Issuer for Warrants for the purchase of the same aggregate number of shares of
Warrant Stock, each new Warrant to represent the right to

                                       -2-

<PAGE>

purchase such number of shares of Warrant Stock as the Holder hereof shall
designate at the time of such exchange. All Warrants issued on transfers or
exchanges shall be dated the Original Issue Date and shall be identical with
this Warrant except as to the number of shares of Warrant Stock issuable
pursuant hereto.

         (e) Compliance with Securities Laws.

                  (i) The Holder of this Warrant, by acceptance hereof,
         acknowledges that this Warrant or the shares of Warrant Stock to be
         issued upon exercise hereof are being acquired solely for the Holder's
         own account and not as a nominee for any other party, and for
         investment, and that the Holder will not offer, sell or otherwise
         dispose of this Warrant or any shares of Warrant Stock to be issued
         upon exercise hereof except pursuant to an effective registration
         statement, or an exemption from registration, under the Securities Act
         and any applicable state securities laws.

                  (ii) Except as provided in subparagraph (iii) below, this
         Warrant and all certificates representing shares of Warrant Stock
         issued upon exercise hereof shall be stamped or imprinted with a legend
         in substantially the following form:

                  THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
                  EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND
                  UNDER APPLICABLE STATE SECURITIES LAWS OR SAFLINK CORPORATION
                  SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
                  REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
                  UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS
                  NOT REQUIRED.

                  (iii) The restrictions imposed by this subsection (e) upon the
         transfer of this Warrant or the shares of Warrant Stock to be purchased
         upon exercise hereof shall terminate (A) when such securities shall
         have been resold pursuant to an effective registration statement under
         the Securities Act, (B) upon the Issuer's receipt of an opinion of
         counsel, in form and substance reasonably satisfactory to the Issuer,
         addressed to the Issuer to the effect that such restrictions are no
         longer required to ensure compliance with the Securities Act and state
         securities laws or (C) upon the Issuer's receipt of other evidence
         reasonably satisfactory to the Issuer that such registration and
         qualification under the Securities Act and state securities laws are
         not required. Whenever such restrictions shall cease and terminate as
         to any such securities, the Holder thereof shall be entitled to receive
         from the Issuer (or its transfer agent and registrar), without expense
         (other than applicable transfer taxes, if any), new Warrants (or, in
         the case of shares of Warrant Stock, new stock certificates) of like
         tenor not bearing the applicable legend required by paragraph (ii)
         above relating to the Securities Act and state securities laws.

                                       -3-

<PAGE>

         3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

         (a) Stock Fully Paid. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, upon issuance, be duly authorized,
validly issued, fully paid and non-assessable and free from all taxes, liens and
charges created by or through Issuer. The Issuer further covenants and agrees
that during the Term, the Issuer will at all times have authorized and reserved
for the purpose of the issue upon exercise of this Warrant a sufficient number
of shares of Common Stock to provide for the exercise of this Warrant.

         (b) Reservation. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its best efforts as expeditiously as possible at its expense to
cause such shares to be duly registered or qualified. If the Issuer shall list
any shares of Common Stock on any securities exchange or market it will, at its
expense, list thereon, maintain and increase when necessary such listing, of,
all shares of Warrant Stock from time to time issued upon exercise of this
Warrant or as otherwise provided hereunder, and, to the extent permissible under
the applicable securities exchange rules, all unissued shares of Warrant Stock
which are at any time issuable hereunder, so long as any shares of Common Stock
shall be so listed. The Issuer will also so list on each securities exchange or
market, and will maintain such listing of, any other securities which the Holder
of this Warrant shall be entitled to receive upon the exercise of this Warrant
if at the time any securities of the same class shall be listed on such
securities exchange or market by the Issuer.

         (c) Covenants. The Issuer shall not by any action including, without
limitation, amending the Certificate of Incorporation or the by-laws of the
Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder hereof against impairment. Without limiting the
generality of the foregoing, the Issuer will (i) take all such action as may be
reasonably necessary in order that the Issuer may validly and legally issue
fully paid and nonassessable shares of Common Stock, free and clear of any
liens, claims, encumbrances and restrictions (other than as provided herein)
upon the exercise of this Warrant, and (ii) use its best efforts to obtain all
such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be reasonably necessary to enable the Issuer
to perform its obligations under this Warrant.

         (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

                                       -4-

<PAGE>

         (e) Registration Rights. The Holder understands that neither the
Warrant nor the shares of Common Stock issuable hereunder have been registered
under the Securities Act. Upon exercise of this Warrant, the Holder shall have
and be entitled to exercise the rights of registration granted pursuant to that
certain Registration Rights Agreement dated the date hereof between the Issuer
and the Holder.

         4. Adjustment of Warrant Price and Warrant Share Number. The number of
shares of Common Stock for which this Warrant is exercisable, and the price at
which such shares may be purchased upon exercise of this Warrant, shall be
subject to adjustment from time to time as set forth in this Section 4. The
Issuer shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.

         (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale. In case the Issuer, during the Term shall do any of the
following (each, a "Triggering Event"): (a) consolidate with or merge into any
other Person and the Issuer shall not be the continuing or surviving corporation
of such consolidation or merger, (b) permit any other Person to consolidate with
or merge into the Issuer and the Issuer shall be the continuing or surviving
Person but, in connection with such consolidation or merger, any Capital Stock
of the Issuer shall be changed into or exchanged for Securities of any other
Person or cash or any other property, or (c) transfer all or substantially all
of its properties or assets to any other Person, or (d) effect a capital
reorganization or reclassification of its Capital Stock, then, and in the case
of each such Triggering Event, proper provision shall be made so that, upon the
basis and the terms and in the manner provided in this Warrant, the Holder of
this Warrant shall be entitled upon the exercise hereof at any time after the
consummation of such Triggering Event, to the extent this Warrant is not
exercised prior to such Triggering Event, to receive at the Warrant Price in
effect at the time immediately prior to the consummation of such Triggering
Event in lieu of the Common Stock issuable upon such exercise of this Warrant
prior to such Triggering Event, the Securities, cash and property to which such
Holder would have been entitled upon the consummation of such Triggering Event
if such Holder had exercised the rights represented by this Warrant immediately
prior thereto, subject to adjustments (subsequent to such corporate action) as
nearly equivalent as possible to the adjustments provided for elsewhere in this
Section 4. Prior notice of any Triggering Event shall be given to the Holder of
this Warrant in accordance with Section 13 hereof.

         (b) Stock Dividends, Subdivisions and Combinations. If at any time
during the Term the Issuer shall:

                  (i) take a record of the holders of its Common Stock for the
         purpose of entitling them to receive a dividend payable in, or other
         distribution of, Additional Shares of Common Stock,

                  (ii) subdivide its outstanding shares of Common Stock into a
         larger number of shares of Common Stock, or

                  (iii) combine its outstanding shares of Common Stock into a
         smaller number of shares of Common Stock,

                                       -5-

<PAGE>

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

         (c) Certain Other Distributions. If at any time during the Term of this
Warrant the Issuer shall take a record of the holders of its Common Stock for
the purpose of entitling them to receive any dividend or other distribution of:

                  (i) cash (other than a cash dividend payable out of earnings
         or earned surplus legally available for the payment of dividends under
         the laws of the jurisdiction of incorporation of the Issuer),

                  (ii) any evidences of its indebtedness, any shares of stock of
         any class or any other securities or property of any nature whatsoever
         (other than cash, Common Stock Equivalents or Additional Shares of
         Common Stock), or

                  (iii) any warrants or other rights to subscribe for or
         purchase any evidences of its indebtedness, any shares of stock of any
         class or any other securities or property of any nature whatsoever
         (other than cash, Common Stock Equivalents or Additional Shares of
         Common Stock),

then (1) the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
adjustment multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the amount
allocable to one share of Common Stock of any such cash so distributable and of
the fair value (as determined in good faith by the Board) of any and all such
evidences of indebtedness, shares of stock, other securities or property or
warrants or other subscription or purchase rights so distributable, and (2) the
Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price
then in effect multiplied by the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to the adjustment divided by (B) the
number of shares of Common Stock for which this Warrant is exercisable
immediately after such adjustment. A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Issuer to the holders of its Common
Stock of such shares of such other class of stock within the meaning of this
Section 4(c) and, if the outstanding shares of Common Stock shall be changed
into a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section 4(b).

                                       -6-

<PAGE>

         (d) Issuance of Additional Shares of Common Stock.

                  (i) If the Issuer, at any time while this Warrant is
         outstanding, shall issue any Additional Shares of Common Stock to a
         third party other than the Holder of this Warrant (otherwise than as
         provided in the foregoing subsections (a) through (c) of this Section
         4), at a price per Additional Share of Common Stock which is less than
         the Warrant Price then in effect or without consideration, then the
         Warrant Price upon each such issuance shall be adjusted to the price
         determined by multiplying the Warrant Price then in effect by a
         fraction:

                           (A) the numerator of which shall be equal to the sum
                  of (x) the number of shares of Common Stock outstanding
                  immediately prior to the issuance of such Additional Shares of
                  Common Stock plus (y) the number of shares of Common Stock
                  which the aggregate consideration for the total number of such
                  Additional Shares of Common Stock so issued would purchase at
                  a price per share equal to the greater of the Per Share Market
                  Value then in effect and the Warrant Price then in effect, and

                           (B) the denominator of which shall be equal to the
                  number of shares of Common Stock outstanding immediately after
                  the issuance of such Additional Shares of Common Stock.

                  (ii) The provisions of paragraph (i) of Section 4(d) shall not
         apply to any issuance of Additional Shares of Common Stock for which an
         adjustment is provided under Section 4(a) through 4(c). No adjustment
         of the number of shares of Common Stock for which this Warrant shall be
         exercisable shall be made under paragraph (i) of Section 4(d) upon the
         issuance of any Additional Shares of Common Stock which are issued
         pursuant to the exercise of any Common Stock Equivalents, if any such
         adjustment shall previously have been made upon the issuance of such
         Common Stock Equivalents (or upon the issuance of any warrant or other
         rights therefor) pursuant to Section 4(e) or Section 4(f).

                  (iii) Anything herein to the contrary notwithstanding, if any
         adjustment to the Warrant Price made pursuant to this Section 4(d)
         would result in a Warrant Price below the Per Share Market Value on the
         Closing Date, then the Warrant Price shall be the Per Share Market
         Value on the Closing.

         (e) Other Provisions Applicable to Adjustments under this Section. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect provided for in this Section 4:

                  (i) Computation of Consideration. To the extent that the
         consideration payable to the Holder in connection with any transaction
         set forth in this Section 4 is in a form other than cash or marketable
         securities, then, the amount of such consideration shall be deemed to
         be the fair value of such consideration at the time of such issuance as
         determined in good faith by the Board.

                                       -7-

<PAGE>

                  (ii) When Adjustments to Be Made. The adjustments required by
         this Section 4 shall be made whenever and as often as any specified
         event requiring an adjustment shall occur, except that any adjustment
         of the number of shares of Common Stock for which this Warrant is
         exercisable that would otherwise be required may be postponed (except
         in the case of a subdivision or combination of shares of the Common
         Stock, as provided for in Section 4(b)) up to, but not beyond the date
         of exercise if such adjustment either by itself or with other
         adjustments not previously made adds or subtracts less than one percent
         (1%) of the shares of Common Stock for which this Warrant is
         exercisable immediately prior to the making of such adjustment. Any
         adjustment representing a change of less than such minimum amount
         (except as aforesaid) which is postponed shall be carried forward and
         made as soon as such adjustment, together with other adjustments
         required by this Section 4 and not previously made, would result in a
         minimum adjustment or on the date of exercise. For the purpose of any
         adjustment, any specified event shall be deemed to have occurred at the
         close of business on the date of its occurrence.

                  (iii) Fractional Interests. In computing adjustments under
         this Section 4, fractional interests in Common Stock shall be taken
         into account to the nearest one one-hundredth (1/100th) of a share.

                  (iv) When Adjustment Not Required. If the Issuer shall take a
         record of the holders of its Common Stock for the purpose of entitling
         them to receive a dividend or distribution or subscription or purchase
         rights and shall, thereafter and before the distribution to
         stockholders thereof, legally abandon its plan to pay or deliver such
         dividend, distribution, subscription or purchase rights, then
         thereafter no adjustment shall be required by reason of the taking of
         such record and any such adjustment previously made in respect thereof
         shall be rescinded and annulled.

         (e) Escrow of Warrant Stock. If after any property becomes
distributable pursuant to this Section 4 by reason of the taking of any record
of the holders of Common Stock, but prior to the occurrence of the event for
which such record is taken, the Holder exercises this Warrant, any shares of
Common Stock issuable upon exercise by reason of such adjustment shall be deemed
the last shares of Common Stock for which this Warrant is exercised
(notwithstanding any other provision to the contrary herein) and such shares or
other property shall be held in escrow for the Holder by the Issuer to be issued
to the Holder upon and to the extent that the event actually takes place, upon
payment of the current Warrant Price. Notwithstanding any other provision to the
contrary herein, if the event for which such record was taken fails to occur or
is rescinded, then such escrowed shares shall be cancelled by the Issuer and
escrowed property returned.

         5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall promptly furnish to the
Holder a certificate setting forth, in reasonable detail, the event requiring
the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated (including a description of the basis on which the
Board made any determination hereunder), and the Warrant Price and Warrant Share
Number after giving effect to such adjustment.

                                       -8-

<PAGE>

         6. Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with an exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

         7. No Rights as Stockholder. This Warrant does not entitle the Holder
to any voting rights or other rights as a stockholder of the Issuer prior to
exercise and payment of the Warrant Price in accordance with Section 2 hereof.

         8. Ownership Cap and Certain Exercise Restrictions. (a) Notwithstanding
anything to the contrary set forth in this Warrant, at no time may a holder of
this Warrant exercise this Warrant if the number of shares of Common Stock to be
issued pursuant to such exercise would exceed, when aggregated with all other
shares of Common Stock owned by such holder at such time, the number of shares
of Common Stock which would result in such holder owning more than 4.999% of all
of the Common Stock outstanding at such time; provided, however, that upon a
holder of this Warrant providing the Issuer with sixty-one (61) days notice
(pursuant to Section 13 hereof) (the "Waiver Notice") that such holder would
like to waive this Section 7(a) with regard to any or all shares of Common Stock
issuable upon exercise of this Warrant, this Section 7(a) will be of no force or
effect with regard to all or a portion of the Warrant referenced in the Waiver
Notice; provided, further, that this provision shall be of no further force or
effect during the sixty-one (61) days immediately preceding the expiration of
the term of this Warrant.

         (b) The Holder may not exercise the Warrant hereunder to the extent
such exercise would result in the Holder beneficially owning (as determined in
accordance with Section 13(d) of the Exchange Act and the rules thereunder) in
excess of 9.999% of the then issued and outstanding shares of Common Stock,
including shares issuable upon exercise of the Warrant held by the Holder after
application of this Section.

         9. Definitions. For the purposes of this Warrant, the following terms
have the following meanings:

         "Additional Shares of Common Stock" means all shares of Common Stock
issued by the Issuer after the Original Issue Date, and all shares of Other
Common, if any, issued by the Issuer after the Original Issue Date, except: (i)
the Warrant Stock; (ii) shares of Common Stock to be issued to strategic
partners and/or in connection with a strategic merger or acquisition; (iii)
shares of Common Stock or grants of options to purchase shares of Common Stock
and issuances of Common Stock to employees, officers, directors, consultants and
vendors in accordance with the Issuer's equity incentive policies; (iv)
issuances in connection with strategic license agreements so long as such
issuances are not for the purpose of raising capital; and (v) the issuance of
Securities pursuant to the conversion or exercise of convertible or exercisable
issued or outstanding on or prior to the date hereof.

         "Board" shall mean the Board of Directors of the Issuer.

         "Capital Stock" means and includes (i) any and all shares, interests,
participations or other equivalents of or interests in (however designated)
corporate stock, including, without limitation, shares of preferred or
preference stock, (ii) all partnership interests (whether general

                                       -9-

<PAGE>

or limited) in any Person which is a partnership, (iii) all membership interests
or limited liability company interests in any limited liability company, and
(iv) all equity or ownership interests in any Person of any other type.

         "Certificate of Incorporation" means the Certificate of Incorporation
of the Issuer as in effect on the Original Issue Date, and as hereafter from
time to time amended, modified, supplemented or restated in accordance with the
terms hereof and thereof and pursuant to applicable law.

         "Common Stock" means the Common Stock, par value $.01 per share, of the
Issuer and any other Capital Stock into which such stock may hereafter be
changed.

         "Common Stock Equivalent" means any Convertible Security or warrant,
option or other right to subscribe for or purchase any Additional Shares of
Common Stock or any Convertible Security.

         "Convertible Security" means evidence of indebtedness, shares of
Capital Stock or other Securities which are or may be at any time convertible
into or exchangeable for Additional Shares of Common Stock.

         "Governmental Authority" means any governmental, regulatory or
self-regulatory entity, department, body, official, authority, commission,
board, agency or instrumentality, whether federal, state or local, and whether
domestic or foreign.

         "Holders" mean the Persons who shall from time to time own any Warrant.
The term "Holder" means one of the Holders.

         "Issuer" means SAFLINK Corporation, a Delaware corporation, and its
successors.

         "Majority Holders" means at any time the Holders of Warrants
exercisable for a majority of the shares of Warrant Stock issuable under the
Warrants at the time outstanding.

         "Original Issue Date" means June 28, 2002.

         "OTC" means the over-the-counter electronic bulletin board.

         "Other Common" means any other Capital Stock of the Issuer or any class
which shall be authorized at any time after the date of this Warrant (other than
Common Stock) and which shall have the right to participate in the distribution
of earnings and assets of the Issuer without limitation as to amount.

         "Person" means an individual, corporation, limited liability company,
partnership, joint stock company, trust, unincorporated organization, joint
venture, Governmental Authority or other entity of whatever nature.

         "Per Share Market Value" means on any particular date (a) the closing
bid price per share of the Common Stock on such date on the OTC or a registered
national stock exchange on which

                                       -10-

<PAGE>

the Common Stock is then listed, or if there is no such price on such date, then
the closing bid price on such exchange or quotation system on the date nearest
preceding such date, or (b) if the Common Stock is not listed then on the OTC or
a registered national stock exchange, the closing bid price for a share of
Common Stock in the National Quotation Bureau Incorporated or similar
organization or agency succeeding to its functions of reporting prices) at the
close of business on such date, or (c) if the Common Stock is not then reported
by the National Quotation Bureau Incorporated (or similar organization or agency
succeeding to its functions of reporting prices), then the average of the "Pink
Sheet" quotes for the relevant conversion period, as determined in good faith by
the holder, or (d) if the Common Stock is not then publicly traded the fair
market value of a share of Common Stock as determined by the Board in good
faith.

         "Purchase Agreement" means the Securities Purchase Agreement dated as
of June 28, 2002 among the Issuer and the investors party thereto.

         "Securities" means any debt or equity securities of the Issuer, whether
now or hereafter authorized, any instrument convertible into or exchangeable for
Securities or a Security, and any option, warrant or other right to purchase or
acquire any Security. "Security" means one of the Securities.

         "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal statute then in effect.

         "Subsidiary" means any corporation at least 50% of whose outstanding
Voting Stock shall at the time be owned directly or indirectly by the Issuer or
by one or more of its Subsidiaries, or by the Issuer and one or more of its
Subsidiaries.

         "Term" has the meaning specified in Section 1 hereof.

         "Trading Day" means (a) a day on which the Common Stock is traded on
the OTC, or (b) if the Common Stock is not listed on the OTC, a day on which the
Common Stock is traded on a registered national stock exchange, or (c) if the
Common Stock is not traded on the OTC, a day on which the Common Stock is quoted
in the over-the-counter market as reported by the National Quotation Bureau
Incorporated (or any similar organization or agency succeeding its functions of
reporting prices); provided, however, that in the event that the Common Stock is
not listed or quoted as set forth in (a) and (b) hereof, then Trading Day shall
mean any day except Saturday, Sunday and any day which shall be a legal holiday
or a day on which banking institutions in the State of New York are authorized
or required by law or other government action to close.

         "Voting Stock" means, as applied to the Capital Stock of any
corporation, Capital Stock of any class or classes (however designated) having
ordinary voting power for the election of a majority of the members of the Board
of Directors (or other governing body) of such corporation, other than Capital
Stock having such power only by reason of the happening of a contingency.

         "Warrants" means the Warrants issued and sold pursuant to the Purchase
Agreement, including, without limitation, this Warrant, and any other warrants
of like tenor issued in

                                       -11-

<PAGE>

substitution or exchange for any thereof pursuant to the provisions of Section
2(c), 2(d) or 2(e) hereof or of any of such other Warrants.

         "Warrant Price" means U.S. $2.25 and commencing six (6) months after
the effective date of the registration statement registering the Warrant Stock,
shall increase to $3.50, as such price may be adjusted from time to time as
shall result from the adjustments specified in this Warrant, including Section 4
hereto.

         "Warrant Share Number" means at any time the aggregate number of shares
of Warrant Stock which may at such time be purchased upon exercise of this
Warrant, after giving effect to all prior adjustments and increases to such
number made or required to be made under the terms hereof.

         "Warrant Stock" means Common Stock issuable upon exercise of any
Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

         10. Other Notices. In case at any time:

                  (a) the Issuer shall make any distributions to the holders of
         Common Stock; or

                  (b) the Issuer shall authorize the granting to all holders of
         its Common Stock of rights to subscribe for or purchase any shares of
         Capital Stock of any class or of any Common Stock Equivalents or other
         rights; or

                  (c) there shall be any reclassification of the Capital Stock
         of the Issuer; or

                  (d) there shall be any capital reorganization by the Issuer;
         or

                  (e) there shall be any (i) consolidation or merger involving
         the Issuer or (ii) sale, transfer or other disposition of all or
         substantially all of the Issuer's property, assets or business (except
         a merger or other reorganization in which the Issuer shall be the
         surviving corporation and its shares of Capital Stock shall continue to
         be outstanding and unchanged and except a consolidation, merger, sale,
         transfer or other disposition involving a wholly-owned Subsidiary); or

                  (f) there shall be a voluntary or involuntary dissolution,
         liquidation or winding-up of the Issuer or any partial liquidation of
         the Issuer or distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or

                                       -12-

<PAGE>

winding-up, as the case may be. Such notice shall be given at least ten (10)
days prior to the action in question and not less than ten (10) days prior to
the record date or the date on which the Issuer's transfer books are closed in
respect thereto.

         11. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 11 without the consent of the Holder of this Warrant.

         12. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW.

         13. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (a) the date of transmission, if
such notice or communication is delivered via facsimile, (b) the Trading Day
following the date of mailing, if sent by nationally recognized overnight
courier service, or (c) actual receipt by the party to whom such notice is
required to be given. The addresses for such communications shall be with
respect to the Holder of this Warrant or of Warrant Stock issued pursuant
hereto, addressed to such Holder at its last known address or facsimile number
appearing on the books of the Issuer maintained for such purposes, or with
respect to the Issuer, addressed to:

                      SAFLINK Corporation
                      11911 NE 1st Street, Suite B-304
                      Bellevue, WA 98005
                      Attention:  Ann Alexander
                      Telecopier:  (425) 278-1299
                      Telephone:  (425) 278-1208

with copies (which copies shall not constitute notice to the Company) to:

                      Gray Cary Ware & Freidenrich LLP
                      701 Fifth Avenue, Suite 7000
                      Seattle, WA 98104
                      Attention: W. Michael Hutchings
                      Telecopier: (206) 839-4801
                      Telephone: (206) 839-4800

Copies of notices to the Holder shall be sent to Jenkens & Gilchrist Parker
Chapin LLP, The Chrysler Building, 405 Lexington Avenue, New York, New York
10174, Attention: Christopher S. Auguste, Esq., Telecopier no.: (212) 704-6288.
Any party hereto may from time to time

                                       -13-

<PAGE>

change its address for notices by giving written notice of such changed address
to the other party hereto.

         14. Remedies. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

         15. Successors and Assigns. This Warrant and the rights evidenced
hereby shall inure to the benefit of and be binding upon the successors and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the
Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any
such Holder or Holder of Warrant Stock.

         16. Modification and Severability. If, in any action before any court
or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

         17. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

         18. Redemption.

         (a) Notwithstanding anything herein to the contrary, at any time after
nine (9) months following the Original Issue Date, the Issuer, at its option,
may call up to one hundred percent (100%) of this Warrant if the quoted closing
price of the Common Stock is greater than 200% of the Warrant Price for a period
of twenty (20) consecutive Trading Days immediately prior to the date of
delivery of the Call Notice (a "Call Notice Period") by providing the Holder of
this Warrant written notice pursuant to Section 13 (the "Call Notice");
provided, that the Registration Statement has been declared effective and has
been effective for a period of 60 consecutive calendar days, without lapse or
suspension of any kind; provided, further, that the Registration Statement must
be effective from the date of delivery of the Call Notice until the date which
is the later of (i) the date the Holder exercises the Warrant pursuant to the
Call Notice and (ii) the 20th day after the Holder receives the Call Notice (the
"Early Termination Date"). The rights and privileges granted pursuant to this
Warrant with respect to the shares of Warrant Stock subject to the Call Notice
(the "Called Warrant Shares") shall expire on the Early Termination Date if this
Warrant is not exercised with respect to such Called Warrant Shares prior to
such Early Termination Date. In the event this Warrant is not exercised with
respect to the Called Warrant Shares, the Issuer shall remit to the Holder of
this Warrant (i) $.10 per Called Warrant Share and (ii) a new Warrant
representing the number of shares of Warrant Stock, if any, which shall not have
been subject to the Call Notice or exercised upon the Holder tendering to the
Issuer the applicable Warrant certificate.

                                       -14-

<PAGE>

         IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day
and year first above written.

                                    SAFLINK CORPORATION

                                    By:
                                       ---------------------------------------
                                          Name:
                                          Title:

                                       -15-

<PAGE>

                                  EXERCISE FORM

                               SAFLINK CORPORATION

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of SAFLINK
Corporation covered by the within Warrant.

Dated: _________________            Signature  ___________________________

                                    Address    ___________________________
                                               ___________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                                    Address    ___________________________
                                               ___________________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                                    Address    ___________________________
                                               ___________________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-_____ canceled (or transferred or exchanged) this _____ day
of ___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                       -16-

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