Document:

Asset Purchase Agreement, dated as of December 15, 2006

 Exhibit 10.15 
 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (the “Agreement”),
dated as of December 15, 2006 (the “Closing Date”), is made by and among SAFLINK Corporation, a Delaware corporation (“SFLK”), and Litronic, Inc., a Delaware corporation
(“Litronic,” and together with SFLK, “Seller”), RDSK, Inc., a California corporation (the “Buyer”), and, for purposes of Sections 6 and 7 only, KRDS, Inc., a California
corporation “KRDS”), and, for purposes of Sections 4 and 7 only, Kris Shah (“Kris”), Ramesh Shah (“Ramesh”), and Dilip Shah (“Dilip”). 
 RECITALS 
 A. On August 6, 2004, SFLK
acquired Litronic, which designs and develops data and communication security solutions for both corporate and government institutions (the “Litronic Business”). 
 B. The parties hereto desire that Seller sell to Buyer, and that Buyer purchase from Seller, certain assets and liabilities of the Litronic Business on
the terms and conditions set forth herein. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Purchase of Assets. 
 1.1 Assets to be Sold. On the Closing Date, subject to the terms and conditions of this Agreement, Seller shall sell, transfer, convey, assign and
deliver (with physical delivery to be in accordance with Exhibit A) (collectively, “Transfer”), or cause to be Transferred, to Buyer, free and clear of all liens, security interests, pledges, mortgages and encumbrances
incurred on or after August 6, 2004 (collectively, “Encumbrances”), except as described on Exhibit A, and Buyer shall purchase and acquire, all of Seller’s right, title and interest in and to all of the
following assets and rights (collectively, the “Purchased Assets”): 
 (a) Tangible Assets. All
furniture, furnishings, fixtures, machinery, equipment and other goods and tangible assets physically located at 17861 Cartwright Road, Irvine, California (the “Litronic Facility”), plus those tangible assets and items of
equipment not located at the Litronic Facility and specifically set forth in Part 1.1(a) of Exhibit A hereto. 
 (b)
Assumed Contracts. The contracts and agreements, purchase orders, sales orders, sale and distribution agreements and other instruments and agreements set forth in Part 1.1(b) of Exhibit A hereto (collectively, the “Assumed
Contracts”). 
 (c) Intellectual Property. The trade names, trademarks, service marks, domain names,
patents and patent applications described in Part 1.1(c) of Exhibit A hereto, and the 

 
telephone and telefax numbers used at the Litronic Facility as listed on Part 1.1(c) of Exhibit A hereto (collectively, the “Intellectual
Property”). 
 (d) Inventory. All inventory located at the Litronic Facility, including but not limited
to, supplies, materials, work in process, finished goods, forms and supplies, including those items specified on Part 1.1(d) of Exhibit A hereto (subject to the provisions of Section 5.7, collectively, the
“Inventory”). 
 (e) Customer Information. The mailing lists, customer lists, supplier lists,
vendor data, billing data, marketing information and procedures, sales and customer files, standard forms of documents, manuals of operations or business procedures and other similar procedures, and other information of Seller that relate to the
Purchased Assets, as listed on Part 1.1(e) of Exhibit A hereto. 
 1.2 Excluded Assets. Seller and Buyer expressly understand
and agree that Seller is not Transferring to Buyer, and Buyer is not purchasing from Seller, pursuant to this Agreement any of the assets or rights of Seller other than the Purchased Assets specifically set forth in Section 1.1 (collectively,
the “Excluded Assets”). For purposes of this Agreement, “Excluded Assets” shall specifically include (but shall not be limited to) the items set forth on Exhibit B hereto. 
 1.3 Assumption of Liabilities. Subject to and upon the terms and conditions of this Agreement, effective as of the Closing Date, Buyer agrees to
assume from Seller and to pay, perform and discharge according to their terms the following Liabilities (as defined below) of Seller (the “Assumed Liabilities”): 
 (a) Liabilities under the Purchased Assets, including the Assumed Contracts, arising from and after the Closing Date, other than
(A) Liabilities performed or paid, or required under any Purchased Asset or Assumed Contract to have been performed or paid, prior to the Closing Date, and (B) Liabilities arising from any breach or default of any Assumed Contract to the
extent occurring (or arising from facts and/or activities occurring) prior to the Closing Date; and 
 (b) Those other
Liabilities identified on Exhibit C hereto. 
 For purposes of this Agreement, “Liabilities” shall mean any direct or indirect
liability, indebtedness, obligation or guarantee, whether known or unknown, whether accrued or unaccrued, whether absolute or contingent, whether due or to become due, or whether liquidated or unliquidated. 
 1.4 Consideration. Subject to the terms and conditions of this Agreement, in consideration of, and in payment in full for, the Transfer of the
Purchased Assets, Buyer shall (a) on the Closing Date, cause the real property lease between KRDS and Litronic for the Litronic Facility (the “Lease”), to be cancelled in its entirety, as set forth in Section 6,
(b) cause KRDS to agree to the waiver and release of Seller set forth in Section 7, and (c) pay Seller the book value, as set forth on attached Exhibit A hereto, for all Inventory sold by Buyer, provided, that Buyer
shall deliver payment to Seller 

  

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for such Inventory sold within ten days of the receipt of proceeds from any such sale of Inventory (collectively, the “Purchase
Price”). 
 2. The Closing. 
 2.1 Deliveries by Seller. On the Closing Date, subject to the terms and conditions of this Agreement, Seller shall deliver to Buyer the following: 
 (a) An executed copy of this Agreement; 
 (b) A bill of sale made by Seller in favor of Buyer, substantially in the form attached hereto as Exhibit D, to be effective as of the Closing Date (the “Bill of Sale”); 
 (c) An assignment and assumption agreement between Buyer and Seller, substantially in the form attached hereto as Exhibit E, to be
effective as of the Closing Date (the “Assignment and Assumption Agreement”); 
 (d) A trademark
assignment substantially in the form attached hereto as Exhibit F; 
 (e) A patent assignment substantially in the form
attached hereto as Exhibit G; 
 (f) Such third party consents necessary to Transfer the Assumed Contracts to Buyer,
except as set forth on Exhibit A hereto; and 
 (g) Such other instruments of sale and assignment as shall, in the
reasonable judgment of Buyer and Seller, be effective to vest in Buyer on the Closing Date all of Seller’s right, title and interest in and to the Purchased Assets and to assign and Transfer to Buyer all of the Assumed Liabilities (the
“Other Instruments” and, collectively with the Bill of Sale, the Assignment and Assumption Agreement and this Agreement, the “Transaction Documents”). 
 2.2 Deliveries By Buyer. On the Closing Date, subject to the terms and conditions of this Agreement, Buyer shall deliver to the Seller the
following: 
  

	 	(a)	A copy of this Agreement executed by Buyer, Kris, Ramesh and Dilip; 

  

	 	(b)	A copy of the Bill of Sale executed by Buyer; 

  

	 	(c)	A copy of the Assignment and Assumption Agreement executed by Buyer; and 

  

	 	(d)	Such Other Instruments as reasonably requested by Seller. 

 2.3 Further Assurances. Seller and Buyer hereby agree that each of them will execute and deliver any and all documents and instruments in addition to those provided for herein that may be reasonably necessary or appropriate to
effectuate the provisions of this Agreement, whether before, at or after the Closing Date, including, but not limited to, such confirmatory conveyances and assignments 

  

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of the Purchased Assets as Buyer may reasonably request or regarding the Assumed Liabilities as Seller may reasonably request. 
 3. Representations and Warranties by Seller; As-Is, Where-Is Basis. Seller hereby represents and warrants the following to be true and correct in all respects as
of the Closing Date: 
 3.1 Power and Authority. Seller has full corporate power and authority to enter into and perform this
Agreement and all of the transactions contemplated by this Agreement. This Agreement is, and each other Transaction Document to be executed by Seller, when executed and delivered by Seller, will be, a legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally. 
 3.2 No Conflict. The execution and the delivery by Seller of this Agreement and the other Transaction Documents to which Seller is or will be a
party, do not, and the consummation of the transactions contemplated herein and therein and compliance with the provisions hereof and thereof will not, conflict with, result in a breach of, or constitute a default (with or without notice or lapse of
time, or both) under or violation of, any provision of the Certificate of Incorporation or Bylaws of Seller. Except for such consents, authorizations, filings, and approvals required by applicable laws or regulations, no consent of any third party
is required to be obtained on the part of Seller to permit the consummation of the transactions contemplated in this Agreement or the other Transaction Documents to which Seller is or will be a party. 
 3.3 Title to Assets. Seller has good, indefeasible and marketable title to all of the Purchased Assets, free and clear of all Encumbrances, and
title to the Purchased Assets shall be transferred by Seller to Buyer free and clear of all Encumbrances, except in each case with respect to imperfections or irregularities of title or Encumbrances of which Kris, Ramesh or Dilip have knowledge
assuming due inquiry or as would not have a material adverse effect on the Litronic Business. 
 3.4 No Warranties. Except as
expressly set forth in this Section 3, Seller makes no representation or warranty, express or implied, at law or inequity, in respect of any of the Purchased Assets, liabilities or operations, including, without limitation, with respect to
merchantability or fitness for any particular purpose, and any such other representations or warrants are hereby expressly disclaimed. Buyer hereby acknowledges and agrees that, except to the extent specifically set forth in this Section 3,
Buyer is purchasing the Purchased Assets on an “as-is, where-is” basis. Without limiting the generality of the foregoing, Seller makes no representation or warranty regarding any assets other than the Purchased Assets or any liabilities
other than the Assumed Liabilities, and none shall be implied at law or in equity. 
 4. Representations and Warranties of Buyer. Buyer, KRDS, Kris,
Ramesh and Dilip hereby represent and warrant, as applicable, the following to be true and correct in all respects as of the Closing Date: 
 4.1 Power and Authority. Buyer and KRDS each represents, as to itself, that it has full corporate power and authority to enter into and perform this Agreement, and all of the 

  

 4 

 
transactions contemplated by this Agreement. Each of Buyer, KRDS, Kris, Ramesh and Dilip represents, as to itself or himself, that this Agreement, and each
other Transaction Document to be executed by it or him, when executed and delivered by it or him, will be, a legal, valid and binding obligation of it or him, as the case may be, enforceable against it or him in accordance with its terms, except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights generally. 
 4.2 No Conflict. Each of Buyer and KRDS represents, as to itself, that the execution and the delivery by it of this Agreement and the other Transaction Documents to which it is or will be a party, do not, and
the consummation of the transactions contemplated herein and therein and compliance with the provisions hereof and thereof will not, conflict with, result in a breach of, or constitute a default (with or without notice or lapse of time, or both)
under or violation of, any provision of the Articles of Incorporation or Bylaws of Buyer or KRDS, as applicable. Except for such consents, authorizations, filings, and approvals required by applicable laws or regulations, no consent of any third
party is required to be obtained on the part of Buyer or KRDS, as applicable, to permit the consummation of the transactions contemplated in this Agreement or the other Transaction Documents to which Buyer or KRDS, as applicable, is or will be a
party. 
 5. Post-Closing Covenants. 
 5.1 Transfer of Intellectual Property and Domain Names. Seller agrees to cooperate with Buyer to effectuate the Transfer of all of the Intellectual Property. Buyer shall be responsible for all fees and charges necessary for the
Transfer of the Intellectual Property. 
 5.2 Use of Name. Promptly after the Closing Date, Seller agrees to remove the name
“Litronic” from all corporate names and to cease using the name “Litronic” to conduct business. 
 5.3 Monthly Sales
Reports. In furtherance of Section 1.4(c) and until all such Inventory is sold, Buyer agrees to provide SFLK with a monthly detailed report of sales of Inventory by finished good part number. 
 5.4 Indemnification. 
 (a) Indemnification by Seller. Seller shall indemnify and hold Buyer harmless in respect of any and all claims, losses, damages, liabilities and expenses (including, without limitation, settlement costs and any legal, accounting and
other expenses for investigating or defending any actions or threatened actions) reasonably incurred by Buyer, in connection with each and all of the following: 
 (i) Any breach of any representation or warranty made by Seller in this Agreement; 
 (ii) The breach of any covenant, agreement or obligation of Seller contained in this Agreement or any other instrument contemplated by
this Agreement; 
  

 5 

 (iii) Any misrepresentation contained in any statement, instrument or certificate
furnished by Seller pursuant to this Agreement or in connection with the transactions contemplated by this Agreement; and 
 (iv) Any claims against, or liabilities or obligations of, Seller other than the Assumed Liabilities. 
 (b)
Indemnification by Buyer. Buyer shall indemnify and hold Seller harmless in respect of any and all claims, losses, damages, liabilities and expenses (including, without limitation, settlement costs and any legal, accounting or other expenses
for investigating or defending any actions or threatened actions) reasonably incurred by Seller, in connection with each and all of the following: 
 (i) Any breach of any representation or warranty made by Buyer in this Agreement; 
 (ii) The
breach of any covenant, agreement or obligation of Buyer contained in this Agreement or any other instrument contemplated by this Agreement; 
 (iii) The Assumed Liabilities; and 
 (iv) Any misrepresentation contained in any statement,
instrument or certificate furnished by Buyer pursuant to this Agreement. 
 (c) Manner of Indemnification. All
indemnification by Buyer shall be effected by payment of cash or delivery of a bank cashier’s check in the amount of the indemnification liability. All indemnification by Seller may be effected, at the election of Buyer, by the payment of cash
or delivery of a bank cashier’s check or out of a holdback and/or set-off against monies otherwise payable to Seller pursuant to clause (c) of Section 1.4. 
 5.5 Utilities. Seller agrees to reimburse KRDS for all utility bills related to the Lease for amounts accrued prior to the Closing Date, with such reimbursement to occur within 10 days following the Closing
Date. 
 5.6 Access to Employees and Contractors. During the period from the Closing Date through March 31, 2007: (i) Seller
shall not, directly or indirectly, take any action to prohibit or discourage any of Seller’s employees, contractors or consultants from providing services to Buyer; and (ii) Buyer shall not, directly or indirectly, and shall not permit
Kris, Ramesh or Dilip to take any action to prohibit or discourage any of Buyer’s employees, contractors or consultants from providing services to Seller; provided that in each case such employees, contractors or consultants may be prohibited
from disclosing confidential information to Buyer or Seller, respectively. 
 5.7 Inventory Adjustment. Promptly after the Closing
Date, Seller agrees to cooperate with Buyer to perform a count or confirmation of all inventory located at the Litronic Facility that will constitute a part of the Purchased Assets as of the Closing Date and, if mutually agreed, Seller and Buyer
shall revise Part 1.1(d) of Exhibit A accordingly. 
  

 6 

 6. Termination of Lease. Effective as of the Closing Date, and pursuant to Section 35 of the Lease, KRDS
hereby terminates and cancels the Lease in its entirety. KRDS hereby further acknowledges and agrees that, except as otherwise provided in this Agreement, any and all obligations and Liabilities of SFLK and Litronic, including their respective
affiliates, officers, directors, employees, agents, successors and assigns, related to, or arising from, the Lease or occupancy of the premises related thereto are hereby extinguished. Notwithstanding the foregoing, if a court of competent
jurisdiction declares the Transfer of Purchased Assets from Seller to Buyer invalid, the termination contained in this Section 6 shall be null and void and the parties shall be restored to their positions as if this Agreement had not been
entered into. 
 7. Waiver and Release. KRDS hereby releases Seller, including its respective affiliates, officers, directors, employees, agents,
successors and assigns, of and from any and all claims, demands, damages, Liabilities, accounts, costs, expenses, liens, actions and causes of action of every kind and nature whatsoever, at law and in equity, whether now known or unknown, which
either party may now have, or may hereafter have, arising out of any matter, cause, act or omission whatsoever occurring or existing at any time prior to and including the date of this Agreement, including, without limitation, any claim or Liability
related to the Lease, the termination thereof or occupancy of the premises related thereto, except as expressly provided in this Agreement. KRDS each hereby further acknowledges and agrees that the consideration set forth in this Agreement is in
full and complete satisfaction of all obligations and responsibilities of Seller related to, or arising from, the Lease. Notwithstanding the foregoing, if a court of competent jurisdiction declares the Transfer of Purchased Assets from Seller to
Buyer invalid, the waiver and release contained in this Section 7 shall be null and void and the parties shall be restored to their positions as if this Agreement had not been entered into. Kris, Ramesh and Dilip each hereby acknowledges and
affirms the releases given by them in their Separation Agreements with Seller. 
 8. Miscellaneous. 
 8.1 Waiver; Amendments. The failure of any party to insist, in any one or more instances, upon performance of any of the terms, covenants or
conditions of this Agreement shall not be construed as a waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure shall in no way affect the
validity of this Agreement or the rights and obligations of the parties hereto. This Agreement may not be modified, amended or supplemented except by an agreement in writing signed by all of the parties hereto. 
 8.2 Assignability and Binding Effect; Third Parties. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. This Agreement and the rights and obligations hereunder may not be assigned by Seller. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity
other than the parties hereto and their successors or permitted assigns, any rights or remedies under or by reason of this Agreement. 
  

 7 

 8.3 Law Governing. This Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware without giving effect to the conflict of laws rules or choice of laws rules thereof. 
 8.4 Notices. All
notices and other communications hereunder will be in writing and will be deemed given (a) upon receipt if delivered personally (or if mailed by registered or certified mail), (b) the day after dispatch if sent by overnight courier,
(c) upon dispatch if transmitted by telecopier or other means of facsimile transmission (and confirmed by a copy delivered in accordance with clause (a) or (b)), properly addressed to the parties at the following addresses: 
  

			
		
	Seller:	  	 SAFLINK Corporation
 Attn: President
 12413 Willows Road NE, Suite 300
 Kirkland, WA 98034
 Facsimile: (425) 278-1300

		
	With a copy to:	  	 DLA Piper US LLP
 Attn: Michael Hutchings

701 Fifth Avenue, Suite 7000
 Seattle, WA 98104
 Facsimile: (206) 839-4801

		
	Buyer, KRDS, Kris, Ramesh or Dilip:	  	RDSK, Inc.
		  	 Attn: Kris Shah
 17861 Cartwright Road
 Irvine, CA 92620
 Facsimile: (949) 851-8679

		
	With a copy to:	  	 Rutan & Tucker LLP
 Attn: Gregg
Amber
 611 Anton Boulevard Suite 1400
 Costa Mesa, CA
92626
 Facsimile: (714) 546-9035

 Any party may change its address for such communications by giving notice thereof to the other parties in
conformity with this Section. 
 8.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall
be deemed to be an original, and all of which together shall constitute one and the same instrument notwithstanding that all parties are not signatories to each counterpart. 
 8.6 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the transactions contemplated
hereby and shall supersede all prior negotiations, understandings and agreements. 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first
above written. 
  

									
	SELLER:	 		 	
			
	SAFLINK CORPORATION	 		 	LITRONIC, INC.
					
	By:	 	  	 		 	By:	 	  
	Name:	 	  	 		 	Name:	 	  
	Title:	 	  	 		 	Title:	 	  
			
	BUYER:	 		 	
			
	RDSK, INC.	 		 	
					
	By:	 	  	 		 		 	
	Name:	 	  	 		 		 	
	Title:	 	  	 		 		 	
			
	For Purposes of Sections 6 and 7 only:	 		 	
			
	KRDS, INC.	 		 	
					
	By:	 	  	 		 		 	
	Name:	 	  	 		 		 	
	Title:	 	  	 		 		 	
			
	For Purposes of Sections 4 and 7 only:	 		 	
				
	  	 		 		 	
	Kris Shah	 		 		 	
	  	 		 		 	
	Ramesh Shah	 		 		 	
	  	 		 		 	
	Dilip Shah	 		 		 	

 [Signature page to Asset Purchase Agreement.] 
  

 9Saflink Corporation Severance Plan and Summary Plan

 Exhibit 10.16 
 SAFLINK Corporation 
 SEVERANCE PLAN 
 AND 
 SUMMARY PLAN DESCRIPTION 
 January 9, 2007 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	I.	  	INTRODUCTION	  	1
			
	II.	  	ELIGIBILITY	  	1
			
	III.	  	SEVERANCE BENEFITS	  	3
			
	IV.	  	CLAIMS PROCEDURE	  	4
			
	V.	  	STATEMENT OF RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 (“ERISA”)	  	5
			
	VI.	  	AMENDMENT AND TERMINATION	  	6
			
	VII.	  	EMPLOYMENT RIGHTS	  	6
			
	VIII.	  	NONALIENATION OF BENEFITS	  	6
			
	IX.	  	GOVERNING LAW	  	6
			
	X.	  	GENERAL INFORMATION	  	6

  

 i 

 SAFLINK CORPORATION 
 SEVERANCE PLAN AND SUMMARY PLAN DESCRIPTION 
  

	I.	INTRODUCTION 

 The Board of Directors of SAFLINK
Corporation (“SAFLINK”) hereby adopts the SAFLINK Severance Plan and Summary Plan Description (the “Plan”) effective as of January 9, 2007, to provide severance benefits to eligible employees of SAFLINK whose
employment is terminated involuntarily under certain circumstances. All benefit determinations under the Plan and interpretation of Plan provisions will be made by SAFLINK (or its designee) in its sole discretion as Plan Administrator. The Plan is
described in further detail below. 
  

	II.	ELIGIBILITY 

 Any employee currently working on a regular,
full-time basis for SAFLINK whose employment with SAFLINK is involuntarily terminated as a result of a permanent reduction in force on or after the effective date of this Plan is eligible for severance benefits described in Section III of this
Plan, PROVIDED each of the following requirements is met: 
 1. The termination of employment is involuntary. The termination is
involuntary if initiated by SAFLINK. 
 2. The termination is not due to retirement, death or disability of the employee. 

3. The termination of employment is not for “cause” (as described below). Employment is terminated for cause if the termination is
due to misconduct or unsatisfactory performance including, but not limited to, the following: 
 a. Conviction of a crime against SAFLINK,
its affiliates, customers or employees, whether prosecuted or not. 
 b. Conviction of any other crime or violation of law, statute or
regulation that creates an inability to perform job duties. 
 c. Failure or inability to perform job duties due to intoxication by drugs or
alcohol during working hours. 
 d. A direct conflict of interest, not specifically waived in advance by SAFLINK. 
 e. Unauthorized use or disclosure of confidential information that belongs to SAFLINK, its affiliates, customers or employees. 
 f. Habitual neglect of duties. 
 g.
Unsatisfactory performance of job duties or failure or refusal to comply with established policies or procedures or follow instructions of a supervisor. 
  

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 h. Other misconduct including, but not limited to: falsification of company records, including
timekeeping records and the employee’s application for employment; illegal discrimination or harassment of another employee, customer or supplier; theft; unauthorized use or possession of property belonging to SAFLINK, a co-worker or customer;
destruction of company or another employee’s property; possession of firearms, controlled substances or illegal drugs on company premises or while performing company business; gambling on company premises; concealing serious offenses by another
employee; and any other conduct interfering with work performance or constituting an unsafe, unethical or unlawful practice. 
 The Plan
Administrator, will, in its sole discretion, determine if a termination of employment is for “cause.” 
 4. The employee is not
a part-time or temporary employee or a new hire who has not yet started to work on a regular, full-time basis. 
 5. The employee is
not covered under any other severance-type plan, policy, arrangement or agreement that would obligate SAFLINK to make a severance payment. 
 6. The employee has not agreed in writing to waive severance benefits under this Plan or otherwise payable from SAFLINK. 
 7. The employee is not offered or does not accept alternative employment with a successor of SAFLINK as a result of a merger or acquisition. 
 8. The employee has signed a Confidential Separation Agreement and General Release of All Claims in a form acceptable to SAFLINK (“Separation Agreement”). The Separation Agreement provides for a full,
general release of all claims, known and unknown, suspected and unsuspected, by the eligible employee, as well as agreements pertaining to nondisparagement, confidentiality, return of company property and nonsolicitation of employees. In the event
of breach, the Separation Agreement provides for all legal and equitable remedies as well as recovery of attorneys’ fees and costs. 
 9. The employee has returned all SAFLINK property and equipment to SAFLINK on or before the Separation Date. 
 A terminated
employee must satisfy all of the requirements set forth above in order to receive severance benefits under the Plan. Eligibility for severance benefits under the Plan will be determined by the Plan Administrator upon an eligible
employee’s termination of employment. The Plan Administrator has full discretionary power and authority to interpret the provisions of the Plan and render decisions on eligibility for benefits. If the Plan Administrator determines that an
eligible employee satisfies all of the eligibility conditions described above, the employee will receive a severance benefit calculated in accordance with Section III below. The severance benefits will be paid in accordance with the terms set
forth in the Confidential Separation Agreement and General Release of all Claims. 
  

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	III.	SEVERANCE BENEFITS 

 The following severance benefits are
payable under this Plan: 
 A. Severance Pay. The amount of the severance pay payable to an eligible involuntarily terminated employee
shall equal the employee’s weekly base salary according to the following formula: 
  

			
	 Months of Service
	  	 Severance Payment

	 0 – 23 months
	  	2 times weekly base salary
	 24 – 47 months
	  	3 times weekly base salary
	 48 – 71 months
	  	4 times weekly base salary
	 72 or more months
	  	5 times weekly base salary

 The amount of severance payable to an eligible employee shall be based upon the employee’s
regular weekly base salary in effect immediately before his/her termination of employment. The weekly base salary shall be determined without regard to any overtime, bonuses, fringe benefits, reimbursements or other irregular payments. Months of
Service means, determined as of the date immediately preceding the date of the involuntary termination of employment of the eligible employee, the number of whole and consecutive months (without regard to any fractional or partial months) during
which the eligible employee was a regular, full-time employee of SAFLINK. 
 Severance payments will be made to an eligible employee in a
single lump sum payment, less applicable tax withholdings and other lawful deductions, as soon as administratively practicable following his/her involuntary termination of employment, subject to the other terms and conditions set forth in this Plan.

 B. No Separate Fund. All severance benefits payable under the Plan are payable from SAFLINK’s general assets. There is no
separate trust or fund established for the payment of severance benefits under the Plan. All amounts shall be less applicable federal and state withholding taxes, including any other authorized deductions. 
 C. Additional Benefits. SAFLINK reserves the right to pay benefits in addition to those required by the Plan based on special circumstances. Each
exception will be considered unique and not precedent-setting. Payment of additional amounts will be subject to such terms and conditions as SAFLINK may determine. All such determinations shall be made by SAFLINK in its sole and absolute discretion.

 D. Section 409A Compliance. SAFLINK intends for the Plan to be exempt from the requirements of Section 409A of the Code
and all applicable guidance promulgated thereunder (“Section 409A”) by operation of the short-term deferral exemption, and the Plan shall be construed and interpreted accordingly. If by virtue of subsequent regulatory developments the
Plan fails to be exempt from the requirements of Section 409A, then SAFLINK shall timely amend or clarify the Plan so that the Plan is exempt from the requirements of Section 409A or satisfies the requirements of Section 409A.

  

 3 

 E. Tax Consequences. By providing a copy of this Plan and Summary Plan Description to the
employee, SAFLINK has informed the employee that the federal, state, local, and/or foreign tax consequences (including without limitation those tax consequences implicated by Section 409A) of the Plan are complex and subject to change. As a
condition to eligibility for benefits under this Plan, the employee acknowledges and agrees that the employee should consult with his/her own personal tax, legal, or financial advisor in connection with the Plan and its tax consequences. SAFLINK has
no obligation and no responsibility to provide the employee with any tax or other legal advice in connection with the Plan and its tax consequences. Employee agrees that he/she shall bear sole and exclusive responsibility for any and all adverse
federal, state, local and/or foreign tax consequences (including without limitation those tax consequences implicated by Section 409A) of this Plan. 
  

	IV.	CLAIMS PROCEDURE 

 Severance benefits under this Plan will
automatically be paid to employees who qualify for such benefits. 
 An employee who believes that he or she is entitled to severance
benefits under this Plan that has not been provided should file a claim with the Plan Administrator. The claim must be in writing. 
 If the
claim is denied, written notice (the “Notice”) of the denial will be provided within 60 days of initial receipt of the claim. Such notice will include (i) an explanation of the factors (including specific plan provisions) on
which the denial is based; (ii) what, if any, additional information is needed to support the claim and an explanation of why such material is necessary; and (iii) an explanation of the claim review procedure, including applicable time
limits and a statement of the claimant’s right to bring a civil action under ERISA following an adverse benefit determination upon review. Further review of the claim may be obtained by filing a written request for review within 60 days of
the mailing of the Notice. If the employee does not respond to the Notice within 60 days of mailing, there shall be no further right of review. 
 In the event that the Notice is insufficient to satisfy the claimant, the claimant or his/her duly authorized representative, shall submit to the Plan Administrator, within 60 days of the mailing of the Notice, a
written notification of appeal of the claim denial. The notification of appeal of the claim denial shall permit the claimant or his/her duly authorized representative to utilize the following formal claim review procedures: 
 (a) to review pertinent documents (the claimant will be provided, upon request and free of charge, copies of all information relevant to the claim); and

 (b) to submit issues and comments in writing to which the plan shall respond (material shall be considered without regard to whether it
was submitted or considered in the initial benefit claim). 
 The Plan Administrator shall furnish a written decision on formal review not
later than 60 days after receipt of the notification of appeal, unless special circumstances require an extension of the time for processing the appeal. If special circumstances requiring an extension are present, the claimant will be notified of
the extension within the first 60-day period. The notice will indicate the reason for the extension and the date by which a final decision is 

  

 4 

 
expected. In no event, however, shall the Plan Administrator communicate the decision on the claim later than 120 days after a request for a formal review.
The decision on formal review shall be in writing and shall include specific reasons for the decision and shall be written in a manner calculated to be understood by the claimant and contain specific reference to the pertinent plan provisions on
which the decision is based. The decision shall also include a statement explaining that the claimant may request free of charge copies of all documents relevant to the claim and a statement explaining the claimant’s right to bring an action
under ERISA. 
  

	V.	STATEMENT OF RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 (“ERISA”) 

 As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). ERISA provides that all participants in the Plan shall be entitled to: 
  

	 	1.	Receive information about your Plan and severance benefits. 

  

	 	2.	Examine, without charge, at SAFLINK offices all documents governing the Plan and a copy of the latest annual report (Form 5500 series) filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. 

  

	 	3.	Obtain copies of documents governing the operation of the Plan and the latest annual report (Form 5500 series) and updated Summary Plan Description upon written request to
SAFLINK. SAFLINK will make a reasonable charge for the copies. 

 In addition to creating rights for participants in the Plan, ERISA imposes
obligations upon the persons who are responsible for the operation of the Plan. The persons who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and
beneficiaries. No one, including SAFLINK, the Plan Administrator, or any other person, may fire you or discriminate against you in any way to prevent you from obtaining a benefit from the Plan or exercising your rights under ERISA. 
 If your claim for a benefit is denied or ignored in whole or in part, you must receive a written explanation of the reason for the denial. You have the
right to have the Plan review and reconsider your claim. You have the right to obtain copies of all documents relating to the decision without charge and to appeal any denial, all within certain time schedules. 
 Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report
from the Plan and do not receive them within 30 days, you may file suit in Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless
the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a Federal or a state court after you have exhausted
the Plan’s benefit claims procedure (described above). The court will decide who should pay court costs and legal fees. If you are discriminated against for asserting your rights, you may seek 

  

 5 

 
assistance from the Department of Labor or you may file suit in a Federal court. The court will decide who should pay court costs and fees. If you are
successful in your lawsuit, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 
 If you have any questions about your Plan, you should contact your Plan Administrator. If you have questions about this statement, or about your rights
under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest Area Office of the Employee Benefits Security Administration, Department of Labor, listed in your telephone directory or the
Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 
  

	VI.	AMENDMENT AND TERMINATION 

 SAFLINK, by action of its Board
of Directors or by action of any committee appointed by the Board to administer the Plan, reserves the right to terminate or amend the Plan at any time and in any manner in its sole discretion. No employee shall have any vested interest in severance
benefits payable under this Plan prior to satisfying all of the terms and conditions for payment of benefits under this Plan. 
  

	VII.	EMPLOYMENT RIGHTS 

 Nothing in this Plan shall have any
effect on SAFLINK’s right to terminate an employee, with or without cause, at anytime (subject to the terms of any written employment contract between the employee and SAFLINK). The payment of severance benefits under this Plan does not extend
an employee’s term of employment. 
  

	VIII.	NONALIENATION OF BENEFITS 

 No benefit under the Plan may
be assigned, transferred, pledged as security for indebtedness or otherwise encumbered by any eligible employee or subject to any legal process for the payment of any claim against an eligible employee. 
  

	IX.	GOVERNING LAW 

 This Plan shall be governed by and
construed in accordance with the laws of the State of Washington to the extent such laws are not preempted by ERISA. 
  

	X.	GENERAL INFORMATION 

  

			
	Employer and Plan Administrator Name:	  	 Jeffrey Dick
 CFO
 SAFLINK Corporation
 12413 Willows Road N.E., Suite 300
 Kirkland, WA 98034
 (425) 278-1100

  

 6 

			
		
	 Employer Identification Number:
	  	95-4346070
		
	 Plan Number:
	  	521
		
	 Type of Plan:
	  	The Plan is an unfunded welfare benefit plan providing severance benefits. There is no trust and there are no trustees.
		
	 Agent For Service of Process:
	  	 National Registered Agents, Inc.
 1780 Barnes Blvd.
SW
 Tumwater, WA 98512-0410
  
 Service of process may also be made upon the Plan Administrator at the address noted above.

		
	 Plan Year:
	  	Calendar

  

 7

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