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                                                                   Exhibit 10.21

EXHIBIT C

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN
COMPLIANCE WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                              SAFLINK CORPORATION

                               SERIES B WARRANT
                               ----------------

                              Dated June 5, 2001

     SAFLINK CORPORATION, a Delaware corporation (the "Company"), hereby
certifies that, for value received, ____________, or its registered assigns
("Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company up to a total of ________ shares of Common Stock, $.01 par value per
share (the "Common Stock"), of the Company (each such share, a "Warrant Share"
and all such shares, the "Warrant Shares") at an exercise price equal to (i)
$.25 per share (as adjusted from time to time as provided in Section 7) (the
"Exercise Price") from the date hereof and through and including the later of
(i) November __, 2001, or (ii) 120 days from the effective date, as declared by
the SEC, of the Registration Statement (as defined in the Registration Right
Agreement, dated June __, 2001, by and among the Company and certain purchasers
listed therein) registering the Warrant Shares (the "Expiration Date"), and
subject to the following terms and conditions:

          1.  Registration of Warrant.  The Company shall register this Warrant,
              -----------------------
upon records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, and the Company shall not be affected by
notice to the contrary.

          2.  Restrictions on and Registration of Transfers and Exchanges.
              -----------------------------------------------------------

              (a)   The Warrant shall be transferable only under circumstances
such that the transfer is exempt from the requirements of registration under the
Securities Act of 1933, as amended (the "1933 Act") and any applicable state
securities law. By acceptance hereof, the Holder agrees to comply with such
legislation. The Warrant and the rights granted to the holder are
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transferable, in whole or in part, upon surrender of the Warrant as provided in
Section 2(b) below, provided that any transfer or assignment shall be subject to
the provisions of Sections 5.1 and 5.2 of the Securities Purchase Agreement
dated June __, 2001, by and among the Company and certain puchasers (the
"Securities Purchase Agreement").

               (b)  The Company shall register the transfer of any portion of
this Warrant in the Warrant Register, upon surrender of this Warrant, with the
Form of Assignment attached hereto duly completed and signed, to the Company at
the office specified in or pursuant to Section 3(b). Upon any such registration
or transfer, a new warrant to purchase Common Stock, in substantially the form
of this Warrant (any such new warrant, a "New Warrant"), evidencing the portion
of this Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so transferred, if
any, shall be issued to the transferring Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such
transferee of all of the rights and obligations of a holder of a Warrant.

               (c)  This Warrant is exchangeable, upon the surrender hereof by
the Holder to the office of the Company specified in or pursuant to Section 3(b)
for one or more New Warrants, evidencing in the aggregate the right to purchase
the number of Warrant Shares which may then be purchased hereunder. Any such New
Warrant will be dated the date of such exchange, but reference shall be made to
the original date of the issuance of the Warrant.

          3.   Duration and Exercise of Warrants.
               ---------------------------------

               (a)  This Warrant shall be exercisable by the registered Holder
on any business day before 5:30 P.M., Pacific time, at any time and from time to
time on or after the date hereof to and including the Expiration Date. At 5:30
P.M., Pacific time on the Expiration Date, the portion of this Warrant not
exercised prior thereto shall be and become void and of no value.

               (b)  Subject to Sections 2(b), 4 and 10, upon surrender of this
Warrant, with the Form of Election to Purchase attached hereto duly completed
and signed, to the Company at its office at 18650 N.E. 67th Court, Suite 210,
Redmond, Washington 98052, Attn: Chief Financial Officer, or at such other
address as the Company may specify in writing to the then registered Holder, and
upon payment of the Exercise Price multiplied by the number of Warrant Shares
that the Holder intends to purchase hereunder, in lawful money of the United
States of America, in cash or by certified or official bank check or checks, all
as specified by the Holder in the Form of Election to Purchase, the Company
shall promptly (but in no event later than 3 business days after the date of
exercise) issue or cause to be issued and cause to be delivered to or upon the
written order of the Holder and in such name or names as the Holder may
designate, a certificate for the Warrant Shares issuable upon such exercise. Any
person so designated by the Holder to receive Warrant Shares shall be deemed to
have become holder of record of such Warrant Shares as of the Date of Exercise
of this Warrant.

               A "Date of Exercise" means the date on which the Company shall
have received (i) this Warrant (or any New Warrant, as applicable), with the
Form of Election to Purchase attached hereto (or attached to such New Warrant)
appropriately completed and duly signed, and

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(ii) payment (by cashier's check) of the Exercise Price for the number of
Warrant Shares so indicated by the holder hereof to be purchased.

               (c)  This Warrant shall be exercisable, either in its entirety
or, from time to time, for a portion of the number of Warrant Shares so long as
at least 100 Warrant Shares are purchased in any one exercise. If less than all
of the Warrant Shares which may be purchased under this Warrant are exercised at
any time, the Company shall issue or cause to be issued, at its expense, a New
Warrant evidencing the right to purchase the remaining number of Warrant Shares
for which no exercise has been evidenced by this Warrant.

          4.   Payment of Taxes. The Company will pay all documentary stamp
               ----------------
taxes attributable to the issuance of Warrant Shares upon the exercise of this
Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of
the Holder, and the Company shall not be required to issue or cause to be issued
or deliver or cause to be delivered the certificates for Warrant Shares unless
or until the person or persons requesting the issuance thereof shall have paid
to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or
transferring this Warrant or receiving Warrant Shares upon exercise hereof.

          5.   Replacement of Warrant. If this Warrant is mutilated, lost,
               ----------------------
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and
substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and
indemnity, if requested, reasonably satisfactory to it.

          6.   Reservation of Warrant Shares. The Company covenants that it will
               -----------------------------
at all times reserve and keep available out of the aggregate of its authorized
but unissued Common Stock, solely for the purpose of enabling it to issue
Warrant Shares upon exercise of this Warrant as herein provided, the number of
Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other actual contingent
purchase rights of persons other than the Holders (taking into account the
adjustments and restrictions of Section 7). All Warrant Shares that shall be so
issuable and deliverable shall, upon issuance and the payment of the applicable
Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable, and free from all taxes,
liens, claims and encumbrances and will not be subject to preemptive rights or
other similar rights of stockholders of the Company, other than (i) restrictions
on transferability as may be applicable under federal and state securities laws;
(ii) restrictive stock legends contemplated by the Investment Agreements (as
defined in the Security Purchase Agreement); or (iii) those created by the
Holders.

          7.   Certain Adjustments. The Exercise Price and number of Warrant
               -------------------
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 7. Upon each such adjustment of the
Exercise Price pursuant to this Section 7, the Holder shall thereafter prior to
the Expiration Date be entitled to purchase, at the Exercise Price resulting
from such adjustment, the number of Warrant Shares obtained by multiplying the

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Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares issuable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

     (a)  Adjustments to Exercise Price for Certain Diluting Issues.

          (i)  Special Definitions. For purposes of this subsection (a), the
following definitions apply:

                    (1)  "Options" shall mean rights, options (excluding options
issued to officers, directors or employees of or consultants to the Company
pursuant to a stock option plan on terms approved by the Board of Directors), or
warrants to subscribe for, purchase or otherwise acquire either Junior
Securities or Convertible Securities (defined below).

                    (2)  "Original Issue Date" shall mean June ___, 2001.

                    (3)  "Convertible Securities" shall mean any evidence of
indebtedness, shares (other than Common Stock), any series of Preferred Stock
(other than Series E Preferred Stock) or other securities convertible into or
exchangeable for Junior Securities.

                    (4)  "Additional Shares of Common Stock" shall mean all
shares of Common Stock issued (or, pursuant to subsection (a)(iii), deemed to be
issued) by the Company after the Original Issue Date, other than shares of
Common Stock issued or issuable:

                              (A)  upon conversion of shares of Series E
Preferred Stock;

                              (B)  to officers, directors or employees of, or
consultants to, the Company pursuant to stock option or stock purchase plans as
currently in existence or the SAFLINK Corporation 2000 Stock Incentive Plan;

                              (C)  as a dividend or distribution on Series E
Preferred Stock; or

                              (D)  for which adjustment of the Exercise Price is
made pursuant to subsection 7(a)(iv) below.

                    (5)  "Junior Securities" shall refer to Common Stock, any
class or series of preferred stock issued after the Original Issue Date or any
security or right convertible into or entitling the holder to receive shares of
Common Stock.

          (ii) No Adjustment of Exercise Price. Any provision herein to the
contrary notwithstanding, no adjustment in the Exercise Price shall be made in
respect of the issuance of Additional Shares of Common Stock unless the
consideration per share (determined pursuant to subsection 4(a)(v) hereof) for
an Additional Share of Common Stock issued or deemed to be issued by the Company
is less than the Exercise Price, in effect immediately prior to the date of such
issue.

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          (iii) Deemed Issue of Additional Shares of Common Stock. In the event
the Company at any time or from time to time after the Original Issue Date shall
issue any Options or Convertible Securities or shall fix a record date for the
determination of holders of any class of securities then entitled to receive any
such Options or Convertible Securities, then the maximum number of shares (as
set forth in the instrument relating thereto without regard to any provisions
contained therein designed to protect against dilution) of Common Stock issuable
upon the exercise of such Options or, in the case of Convertible Securities and
Options therefor, the conversion or exchange of such Convertible Securities,
shall be deemed to be Additional Shares of Common Stock issued as of the time of
such issue or, in case such a record date shall have been fixed, as of the close
of business on such record date, provided that in any such case Additional
Shares of Common Stock shall be deemed to have been issued;

                    (1)  no further adjustments in the Exercise Price shall be
made upon the subsequent issue of Convertible Securities or shares of Common
Stock upon the exercise of Options or conversion or exchange of such Convertible
Securities;

                    (2)  if such Options or Convertible Securities by their
terms provide, with the passage of time or otherwise, for any increase or
decrease in the consideration payable to the Company, or decrease or increase in
the number of shares of Common Stock issuable, upon the exercise, conversion or
exchange thereof, the Exercise Price computed upon the original issue thereof
(or upon the occurrence of a record date with respect thereto), and any
subsequent adjustments based thereon, shall, upon any such increase or decrease
becoming effective, be recomputed to reflect such increase or decrease in
proportion to its affect on such Options or the rights of conversion or exchange
under such Convertible Securities (provided, however, that no such adjustment of
the Exercise Price shall affect Common Stock previously issued upon the exercise
of the Warrant);

                    (3)  upon the expiration of any such Options or any rights
of conversion or exchange under such Convertible Securities which shall not have
been exercised, the Exercise Price computed upon the original issue thereof (or
upon the occurrence of a record date with respect thereto), and any subsequent
adjustments based thereon, shall, upon such expiration, be recomputed as if in
the case of Convertible Securities or Options for Common Stock the only
Additional Shares of Common Stock issued were the shares of Common Stock, if
any, actually issued upon the exercise of such Options or the conversion or
exchange of such Convertible Securities and the consideration received therefor
was the consideration actually received by the Company for the issue of all such
Options, whether or not exercised, plus the consideration actually received by
the Company upon such exercise, or for the issue of all such Convertible
Securities which were actually converted or exchanged, plus the additional
consideration, if any, actually received by the Company upon such conversion or
exchange.

                    (4)  in the case of any Options which expire by their terms
not more than 30 days after the date of issue thereof, no adjustment of the
Exercise Price shall be made until the expiration or exercise of all such
Options, whereupon such adjustment shall be made in the same manner provided in
clause (3) above.

          (iv)  Adjustment of Exercise Price Upon Issuance of Additional Shares
of

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Common Stock. In the event this Company, at any time after the Original Issue
Date shall issue Additional Shares of Common Stock (including Additional Shares
of Common Stock deemed to be issued pursuant to subsection (a)(iii)) without
consideration or for a consideration per share less than the Exercise Price in
effect on the date of and immediately prior to such issue, then and in such
event, the Exercise Price shall be reduced, concurrently with such issue, to a
price (calculated to the nearest cent) determined by multiplying such Exercise
Price by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to such issue plus the number of
shares of Common Stock which the aggregate consideration received by the Company
for the total number of Additional Shares of Common Stock so issued would
purchase at such Exercise Price in effect immediately prior to such issuance,
and the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such Additional
Shares of Common Stock so issued. For the purpose of the above calculation, the
number of shares of Common Stock outstanding immediately prior to such issue
shall be calculated on a fully diluted basis, as if all of the Warrants and all
Convertible Securities had been fully converted into shares of Common Stock
immediately prior to such issuance and any outstanding warrants, options or
other rights for the purchase of shares of stock or Convertible Securities had
been fully exercised immediately prior to such issuance (and the resulting
securities fully converted into shares of Common Stock, if so convertible) as of
such date, but not including in such calculation any additional shares of Common
Stock issuable with respect to shares of Series E Preferred Stock, Convertible
Securities, or outstanding options, warrants or other rights for the purchase of
shares of stock or convertible securities, solely as a result of the adjustment
of the respective Exercise Prices (or other conversion ratios) resulting from
the issuance of Additional Shares of Common Stock causing such adjustment.

          (v)  Determination of Consideration. For purposes of this subsection
(a), the consideration received by the Company for the issue of any Additional
Shares of Common Stock shall be computed as follows:

                    (1)  Cash and Property. Such consideration shall:

                              (A)  insofar as it consists of cash, be computed
at the aggregate amount of cash received by the Company excluding amounts paid
for accrued interest or accrued dividends;

                              (B)  insofar as it consists of property other than
cash, be computed at the fair value thereof at the time of receipt of such
property, as determined in good faith by the Board and the holders of a majority
of Warrant Shares issuable pursuant to all outstanding Series B Warrants; and

                              (C)  in the event Additional Shares of Common
Stock are issued together with other shares or securities or other assets of the
Company for consideration which covers both, the proportion of such
consideration so received, computed as provided in clauses (A) and (B) above, as
determined in good faith by the Board and the holders of a majority of Warrant
Shares issuable pursuant to all outstanding Series B Warrants.

                              (D)  with respect to clauses (B) and (C), in the
event that the Board and the holders of a majority of Warrant Shares issuable
pursuant to all outstanding Series B

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Warrants cannot reach a determination as to the computation of such
consideration, then the Company shall promptly appoint its independent certified
public accountants to make such determination as promptly as practical.

                    (2)  Options and Convertible Securities. The consideration
per share received by the Company for Additional Shares of Common Stock deemed
to have been issued pursuant to subsection 4(a)(iii), relating to Options and
Convertible Securities shall be determined by dividing:

                              (A)  the total amount, if any, received or
receivable by the Company as consideration for the issue of such Options or
Convertible Securities, plus the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto, without regard
to any provision contained therein designed to protect against dilution) payable
to the Company upon the exercise of such Options or the conversion or exchange
of such Convertible Securities by

                              (B)  the maximum number of shares of Common Stock
(as set forth in the instruments relating thereto, without regard to any
provision contained therein designed to protect against the dilution) issuable
upon the exercise of such Options or conversion or exchange of such Convertible
Securities.

               (b)  If the Company, at any time while this Warrant is
outstanding, (i) shall pay a stock dividend or otherwise make a distribution or
distributions on shares of its Common Stock or any class or series of Preferred
Stock payable in shares of Common Stock, (ii) subdivide outstanding shares of
Common Stock into a larger number of shares, or (iii) combine outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any, but including warrants or
options that would be included for purposes of determining earnings per share in
accordance with generally accepted accounting principals) outstanding before
such event and of which the denominator shall be the number of shares of Common
Stock (excluding treasury shares, if any, but including warrants or options that
would be included for purposes of determining earnings per share in accordance
with generally accepted accounting principals) outstanding after such event. Any
adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision or combination, and shall apply to
successive subdivisions and combinations.

     (c)  Major Transactions.
          ------------------

          (i)  If the Company shall consolidate with or merge into any
corporation or reclassify its outstanding shares of Common Stock (other than by
way of subdivision or reduction of such shares), or if there shall occur any
share exchange pursuant to which all of the outstanding shares of Common Stock
are converted into other securities or property, then each holder of a Warrant
shall thereafter be entitled to receive consideration, in exchange for such
Warrant, equal to the greater of, as determined in the sole discretion of such
holder: (x) a warrant

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to purchase (at the same aggregate exercise price and on the same terms and
conditions as the Warrant surrendered) the number of shares of stock or
securities or property of the Company, or of the entity resulting from such
transaction, to which a holder of the number of shares of Common Stock delivered
upon exercise of such Warrant would have been entitled upon such transaction had
the holder of such Warrant exercised (without regard to any limitations on
exercise herein contained) the Warrant on the trading date immediately preceding
the public announcement of such transaction and had such Common Stock been
issued and outstanding and had such holder been the holder of record of such
Common Stock at the time of such transaction, and the Company shall make lawful
provision therefor as a part of such consolidation, merger or reclassification;
and (y) cash paid by the Company in immediately available funds, in an amount
equal to the Black-Scholes Amount (as defined herein) times the number of shares
                                                      -----
of Common Stock for which this Warrant was exercisable (without regard to any
limitations on exercise herein contained) on the date immediately preceding the
date of such transaction.

          (ii)  If, in connection with a business acquisition or a series of
business acquisitions occurring within any six (6) month period, the Company
shall issue capital stock representing in excess of forty percent (40%) of its
Common Stock outstanding immediately prior to such issuance (determined on a
fully-diluted basis), or if the Company shall sell all or substantially all of
its assets, then each Holder of a Warrant shall, at the option of each such
Holder, be entitled to receive consideration, in exchange for such Warrant held
by it, in cash paid by the Company from immediately available funds, in an
amount equal to the Black-Scholes Amount times the number of shares of Common
                                         -----
Stock for which this Warrant was exercisable (without regard to any limitations
on exercise herein contained) on the date immediately preceding the date of such
transaction.

          (iii) No sooner than ten (10) days nor later than five (5) days prior
to the consummation of any transaction of a sort described in paragraphs (i) or
(ii) above, but not prior to the public announcement of any such transaction,
the Company shall deliver written notice ("Notice of Major Transaction") to the
                                           ---------------------------
Holder of this Warrant, which Notice of Major Transaction shall be deemed to
have been delivered one (1) business day following the Company's sending such
notice by telecopy (provided that the Company sends a confirming copy of such
notice on the same day by overnight courier) of such Notice of Major
Transaction.  Such Notice of Major Transaction shall indicate the amount and
type of the consideration which the Holder would receive under clause (i) of
this Section 4(e).

     For purposes of this Section 4(e), the "Black-Scholes Amount" shall be an
                                             --------------------
amount determined by calculating the "Black-Scholes" value of an option to
purchase one share of Common Stock on the applicable page on the Bloomberg
online page, using the following variable values: (i) the current market price
of the Common Stock equal to the closing trade price on the last trading day
before the date of the Notice of the Major Transaction (provided such market
price for purposes of this definition shall be capped at a maximum of two times
the then current Exercise Price in effect); (ii) volatility of the Common Stock
equal to the volatility of the common Stock during the 100 trading day period
preceding the date of the Notice of the Major Transaction; (iii) a risk free
rate equal to the interest rate on the United States treasury bill or treasury
note with a maturity corresponding to the remaining term of this Warrant on the
date of the Notice of the Major

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Transaction; and (iv) an exercise price equal to the Exercise Price on the date
of the Notice of the Major Transaction. In the event such calculation function
is no longer available utilizing the Bloomberg online page, the Holder shall
calculate such amount in its sole discretion using the closest available
alternative mechanism and variable values to those available utilizing the
Bloomberg online page for such calculation function.

          (iv) Notwithstanding anything in this Section 4(e) which may be to the
contrary, if following a transaction which triggers the applicability of
paragraphs (i) or (ii), the Common Stock remains outstanding or holders of
Common Stock receive any common stock or substantially similar equity interest,
in each of the foregoing cases which is publicly traded, each Holder may, at its
option in lieu of receiving the consideration set forth in paragraphs (i) or
(ii) above, as applicable, retain its Warrants and such Warrants shall continue
to apply to such common stock or shall apply, as nearly as practicable, to such
other common stock or equity interest, as the case may be.

          (d)  If the Company, at any time while this Warrant is outstanding,
shall distribute to all holders of Common Stock (and not to holders of this
Warrant) evidences of its indebtedness or assets (other than cash dividends) or
rights or warrants to subscribe for or purchase any security (excluding those
referred to in Sections 7(b), (c) and (e)), then in each such case the Exercise
Price shall be determined by multiplying the Exercise Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator
shall be the Exercise Price determined as of the record date mentioned above,
and of which the numerator shall be such Exercise Price on such record date less
the then fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
Common Stock as determined by the Board and the holders of a majority of Warrant
Shares issuable pursuant to all outstanding warrants.

          (e)  If, at any time while this Warrant is outstanding, the Company
shall issue or cause to be issued rights or warrants to acquire or otherwise
sell or distribute shares of Common Stock to all holders of Common Stock for a
consideration per share less than the Exercise Price then in effect, then,
forthwith upon such issue or sale, the Exercise Price shall be reduced to the
price (calculated to the nearest cent) determined by dividing (i) an amount
equal to the sum of (A) the number of shares of Common Stock outstanding
immediately prior to such issue or sale multiplied by the Exercise Price, and
(B) the consideration, if any, received or receivable by the Company upon such
issue or sale by (ii) the total number of shares of Common Stock outstanding
immediately after such issue or sale.

          (f)  For the purposes of this Section 7, the following clauses shall
also be applicable:

               (i)  Record Date. In case the Company shall take a record of the
                    -----------
holders of its Common Stock for the purpose of entitling them (A) to receive a
dividend or other distribution payable in Common Stock or in Convertible
Securities, or (B) to subscribe for or purchase Common Stock or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon

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the declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

               (ii) Treasury Shares. The number of shares of Common Stock
                    ---------------
outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any such shares shall be
considered an issue or sale of Common Stock.

           (g) All calculations under this Section 7 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be.

           (h) Whenever the Exercise Price is adjusted pursuant to Section 7(d)
above or Section 7(j) below, the Company shall promptly mail or cause to be
mailed to each Holder, a notice setting forth the Exercise Price after such
adjustment and setting forth a brief statement of the facts requiring such
adjustment. Such adjustment shall become effective immediately after the record
date mentioned above. All determinations with respect to adjustments by the
Company hereunder shall be made by the Board and the holders of a majority of
Warrant Shares issuable pursuant to all outstanding warrants in good faith.

           (i) If:

               (i)    the Company shall declare a dividend (or any other
                      distribution) on its Common Stock in Common Stock; or

               (ii)   the Company shall declare a special nonrecurring cash
                      dividend on or a redemption of its Common Stock; or

               (iii)  the Company shall authorize the granting to all holders of
                      the Common Stock rights or warrants to subscribe for or
                      purchase any shares of capital stock of any class or of
                      any rights; or

               (iv)   the approval of any stockholders of the Company shall be
                      required in connection with any reclassification of the
                      Common Stock of the Company, any consolidation or merger
                      to which the Company is a party, any sale or transfer of
                      all or substantially all of the assets of the Company, or
                      any compulsory share exchange whereby the Common Stock is
                      converted into other securities, cash or property; or

               (v)    the Company shall authorize the voluntary dissolution,
                      liquidation or winding up of the affairs of the Company,

then the Company shall cause to be mailed to each Holder at their last addresses
as they shall appear upon the Warrant Register, to the extent practicable at
least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is

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not to be taken, the date as of which the holders of Common Stock of record to
be entitled to such dividend, distributions, redemption, rights or warrants are
to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up; provided, however, that the failure to mail such notice or any
               --------  -------
defect therein or in the mailing thereof shall not affect the validity of the
corporate action required to be specified in such notice.

     For the purposes of (i), (ii), and (iii) of this subsection, the holder
shall be entitled upon exercise of the Warrant for the purchase of any or all of
the shares of Common Stock subject hereto, to receive the amount of such assets
(or rights) which would have been payable to the holder had such holder been the
holder of such shares of Common Stock on the record date for determination of
stockholders entitled to such distribution.

           (j) If at any time conditions shall arise by reason of action taken
by the Company which in the opinion of the Board of Directors are not adequately
covered by the other provisions hereof and which would reasonably be expected to
materially affect the rights of the Holders (different than or distinguished
from the effect generally on rights of holders of any class of the Company's
capital stock) or if any time such conditions are expected to arise by reason of
any action contemplated by the Company, the Company shall mail a written notice
briefly describing the action contemplated and the material adverse effects of
such action on the rights of the Holders to the extent practicable at least 20
calendar days prior to the effective date of such action, and an Appraiser
selected by the Holders of majority in interest of the Warrants then outstanding
and consented to by the Company (which consent shall not be unreasonably
withheld) shall give its opinion as to the adjustment, if any (not inconsistent
with the standards established in this Section 7), of the Exercise Price
(including, if necessary, any adjustment as to the Warrant Shares to be
purchased upon exercise of this Warrant) and any distribution which is or would
be required to be preserved without diluting the rights of the Holders.

       8.  Cap Amount. Prior to Stockholder Approval (as defined in the
           ----------
Securities Purchase Agreement) and regardless of whether shares of the Company's
Common Stock are listed for trading on the Nasdaq National Market, the Nasdaq
SmallCap Market or the OTC Bulletin Board unless otherwise permitted by the
rules of Nasdaq (as defined in the Securities Purchase Agreement) or unless the
rules thereof no longer are applicable to the Company, in no event shall the
total number of shares of Common Stock issued upon conversion of the Series E
Preferred Stock ("Preferred Stock") and exercise of the Warrants (if required)
exceed the maximum number of shares of Common Stock that the Company can issue
without stockholder approval pursuant to Nasdaq Rule 4350 (or any successor
rule) (the "Cap Amount") which, as of the date of initial issuance of shares of
            ----------
Preferred Stock and Warrants, shall be 19.99% of the total number of shares of
Common Stock outstanding immediately prior to the date of the Closing (or any
such higher number as the rules permit). A Holder's allocable portion of the Cap
Amount shall be applicable to both shares of Preferred Stock and Warrants held
by it and shall be applied to such Preferred Stock and Warrants on the basis of
the time of conversion or exercise, as the case may be, thereof. The foregoing
restriction shall not apply to the extent waived, modified or

                                       11
<PAGE>

otherwise permitted by the Nasdaq National Market System or the Nasdaq SmallCap
Market, as applicable to the Common Stock.

       9.  Redemption. Provided (a) all such Common Stock can be sold pursuant
           ----------
thereto at all times during the period from the date which is twenty (20)
trading days prior to the delivery of the Warrant Redemption Notice until the
date which is ten (10) trading days following the delivery of the Warrant
Redemption Notice (the "Redemption Effective Time"), and (b) the Closing Bid
                        -------------------------
Price of the Common Stock for the twenty (20) consecutive trading days preceding
the delivery of the Warrant Redemption Notice is at least two hundred percent
(200%) of the then-effective Exercise Price, the Company may, by notice
delivered to the Holders (the "Warrant Redemption Notice"), cause, effective as
                               -------------------------
of the Redemption Effective Time, (x) if the Redemption Effective Time is prior
to the nine-month anniversary of the date hereof, the number of shares of Common
Stock into which this Warrant is then exercisable to be reduced by an amount
(the "Reduction Amount") which is no greater than fifty percent (50%) of such
      ----------------
number, by payment of cash equal to the product of $.10 times the Reduction
Amount (provided, however that to the extent the Holder effects any exercise of
this Warrant between the date of delivery of the Warrant Redemption Notice and
the Redemption Effective Time, the Reduction Amount shall be reduced share for
share by the number of the shares of Common Stock into which this Warrant is so
exercised during such period); and (y) if the Redemption Effective Time is on or
after the nine-month anniversary of the date hereof, the number of shares of
Common Stock into which this Warrant is then exercisable to be reduced by an
amount which is no greater than one hundred percent (100%) of such number, by
payment of cash equal to the product of $.10 times the number of shares of
Common Stock by which the number of shares of Common Stock into which this
Warrant is then exercisable is reduced.

     For purposes of this section, the term "Closing Bid Price" means for any
security as of any date, the closing bid price of such security on the principal
securities exchange or trading market where such security is listed or traded as
reported by Bloomberg Financial Markets or a comparable reporting service of
national reputation reasonably selected by the Company if Bloomberg Financial
Markets is not then reporting closing bid prices of such security (collectively,
"Bloomberg"), or if the foregoing does not apply, the last reported sale price
 ---------
of such security in the over-the-counter market on the electronic bulletin board
of such security as reported by Bloomberg, or, if no sale price is reported for
such security by Bloomberg, the average of the bid prices of any market makers
for such security as reported in the "pink sheets" by the National Quotation
Bureau, Inc. If the Closing Bid Price cannot be calculated for such security on
such date on any of the foregoing bases, the Closing Bid Price of such security
on such date shall be the fair market value as reasonably determined by an
independent investment banking firm reasonably selected by the Company, with the
costs of such appraisal to be borne by the Company.

       10. Fractional Shares. The Company shall not be required to issue or
           -----------------
cause to be issued fractional Warrant Shares on the exercise of this Warrant.
The number of full Warrant Shares which shall be issuable upon the exercise of
this Warrant shall be computed on the basis of the aggregate number of Warrant
Shares purchasable on exercise of this Warrant so presented. If any fraction of
a Warrant Share would, except for the provisions of this Section 10, be issuable
on the exercise of this Warrant, the Company shall, at its option, (a) pay an
amount in cash equal to the

                                       12
<PAGE>

Exercise Price multiplied by such fraction or (b) shall round the number of
Warrant Shares issuable, up to the next whole number of such shares.

       11. Notices. Any and all notices or other communications or deliveries
           -------
hereunder shall be in writing and shall be deemed given and effective on the
earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this
Section prior to 4:30 p.m. (Pacific Time) on a business day, (ii) the business
day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile telephone number specified in this Section later
than 4:30 p.m. (Pacific Time) on any date and earlier than 11:59 p.m. (Pacific
Time) on such date, (iii) the business day following the date of mailing, if
sent by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. The addresses
for such communications shall be: (i) if to the Company, to 18650 N.E. 67th
Court, Suite 210, Redmond, Washington 98052, Attn: Chief Financial Officer,
Phone: (425) 881-6766, Facsimile: (425) 497-1778, or (ii) if to the Holder, to
the Holder at the address or facsimile number appearing on the Warrant Register
or such other address or facsimile number as the Holder may provide to the
Company in accordance with this Section 9.

       12. Warrant Agent.
           -------------

           (a)   The Company shall serve as warrant agent under this Warrant.
Upon thirty (30) days' notice to the Holder, the Company may appoint a new
warrant agent.

           (b)   Any corporation into which the Company or any new warrant agent
may be merged or any corporation resulting from any consolidation to which the
Company or any new warrant agent shall be a party or any corporation to which
the Company or any new warrant agent transfers substantially all of its
corporate trust or shareholders services business shall be a successor warrant
agent under this Warrant without any further act. Any such successor warrant
agent shall promptly cause notice of its succession as warrant agent to be
mailed (by first class mail, postage prepaid) to the Holder at the Holder's last
address as shown on the Warrant Register.

       13. Miscellaneous.
           -------------

           (a)   This Warrant shall be binding on and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. This
Warrant may be amended only in writing signed by the Company and the Holder.

           (b)   Subject to Section 13(a), above, nothing in this Warrant shall
be construed to give to any person or corporation other than the Company and the
Holder any legal or equitable right, remedy or cause under this Warrant; this
Warrant shall be for the sole and exclusive benefit of the Company and the
Holder.

           (c)   This Warrant shall be governed by and construed and enforced in
accordance with the internal laws of the State of Delaware without regard to the
principles of conflicts of law thereof.

                                       13
<PAGE>

           (d)   The headings herein are for convenience only, do not constitute
a part of this Warrant and shall not be deemed to limit or affect any of the
provisions hereof.

           (e)   In case any one or more of the provisions of this Warrant shall
be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Warrant shall not in any way be
affected or impaired thereby and the parties will attempt in good faith to agree
upon a valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
by its authorized officer as of the date first indicated above.

                            SAFLINK CORPORATION

                            By:_____________________________________

                            Name:___________________________________

                            Title:__________________________________

                                       14
<PAGE>

                         FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To SAFLINK Corporation.:

     In accordance with the Warrant enclosed with this Form of Election to
Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of Common Stock ("Common Stock"), $.01 par value per share, of SAFLINK
Corporation and encloses herewith $________ in cash or certified or official
bank check or checks, which sum represents the aggregate Exercise Price (as
defined in the Warrant) for the number of shares of Common Stock to which this
Form of Election to Purchase relates, together with any applicable taxes payable
by the undersigned pursuant to the Warrant.

     The undersigned requests that certificates for the shares of Common Stock
issuable upon this exercise be issued in the name of

                                                PLEASE INSERT SOCIAL SECURITY OR
                                                       TAX IDENTIFICATION NUMBER

                                                ________________________________

________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

     If the number of shares of Common Stock issuable upon this exercise shall
not be all of the shares of Common Stock which the undersigned is entitled to
purchase in accordance with the enclosed Warrant, the undersigned requests that
a New Warrant (as defined in the Warrant) evidencing the right to purchase the
shares of Common Stock not issuable pursuant to the exercise evidenced hereby be
issued in the name of and delivered to:

________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

Dated:_______, ____      Name of Holder:

                         (Print)________________________________________________

                         (By:)__________________________________________________
                         (Name:)________________________________________________

                         (Title:)_______________________________________________

                         (Signature must conform in all respects to name of
                         holder as specified on the face of the Warrant)
<PAGE>

                              FORM OF ASSIGNMENT

          [To be completed and signed only upon transfer of Warrant]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________ the right represented by the within
Warrant to purchase ____________ shares of Common Stock of SAFLINK Common Stock
to which the within Warrant relates and appoints ________________ attorney to
transfer said right on the books of SAFLINK Corporation with full power of
substitution in the premises.

Dated:

_______________, ____

                         _____________________________________________________
                         (Signature must conform in all respects to name of
                         Holder as specified on the face of the Warrant)

                         _____________________________________________________
                         Address of Transferee

                         _____________________________________________________

                         _____________________________________________________

In the presence of:

__________________________<PAGE>

                                                                   EXHIBIT 10.23

                            MODIFICATION AGREEMENT

     This Modification Agreement (the "Agreement") is made and entered into as
of the 27th day of July, 2001, by and between SAFLINK Corporation, a Delaware
corporation (the "Company") and each of the purchasers listed on Schedule I
hereto ("Purchaser") with regard to the following:

                                  WITNESSETH:

     WHEREAS, the parties entered into the Securities Purchase Agreement
("Securities Purchase Agreement") and the Registration Rights Agreement
("Registration Rights Agreement") for purposes of setting forth the terms and
conditions relating to the issuance and sale of Series E Preferred Stock and
Series A Warrants and Series B Warrants;

     WHEREAS, all capitalized terms used herein and not defined herein shall
have the meanings set forth in the Securities Purchase Agreement or the
Registration Rights Agreement, as applicable;

     WHEREAS, the parties wish to modify the Securities Purchase Agreement, the
Registration Rights Agreement and the Series A and B Warrants in the manner set
forth herein;

     NOW, THEREFORE, the parties agree as follows:

                                   ARTICLE I
                         SECURITIES PURCHASE AGREEMENT

1.1  Section 3.4 of the Securities Purchase Agreement is hereby amended to read
in its entirety as follows:

          Issuance of Shares.  The Conversion Shares and Warrant Shares are duly
     authorized and reserved for issuance, and, upon conversion of the Preferred
     Stock and the exercise of the Warrant in accordance with their respective
     terms, will be validly issued, fully paid and non-assessable, and free from
     all taxes, liens, claims and encumbrances and will not be subject to
     preemptive rights or other similar rights of stockholders of the Company,
     other than (i) restrictions on transferability as may be applicable under
     federal and state securities laws; (ii) restrictive stock legends
     contemplated by the Investment Agreements; or (iii) those created by
     Purchaser. The Preferred Stock and the Warrant are duly authorized and are
     validly issued, fully paid and non-assessable, and free from all taxes,
     liens claims and encumbrances and are not and will not be subject to
     preemptive rights or other similar rights of stockholders of the Company,
     other than (i) restrictions on transferability as may be applicable under
     federal and state securities laws; (ii) restrictive stock legends
     contemplated by the Investment Agreements; or (iii) those created by
     Purchaser. The board of directors of the Company has unanimously approved
     the issuance of the Preferred Stock and the Warrant pursuant to the terms
     hereof and of the Conversion Shares and Warrant Shares
<PAGE>

     issuable upon conversion of the Preferred Stock and the exercise of the
     Warrant pursuant to the terms thereof (without giving effect to any
     limitations on conversion or exercise contained therein, including for
     purposes of Nasdaq Rule 4350 (the "Nasdaq Authorization")), has unanimously
     recommended to the stockholders of the Company the approval of the Nasdaq
     Authorization and will seek Stockholder Approval (as defined in Section
     4.12) at the Company's next stockholder meeting, which shall be no later
     than October 31, 2001. No further authorization or approval (other than the
     Stockholder Approval) is required under the rules of Nasdaq with respect to
     the transactions contemplated by this Agreement, including, without
     limitation, the issuance of the Conversion Shares and the Warrant Shares
     and the inclusion thereof on Nasdaq.

1.2  Section 4.8 of the Securities Purchase Agreement shall, subject to and
effective only upon authorization by the required vote prescribed by the
National Association of Securities Dealers, Inc. ("NASD") and the Delaware
General Corporation Law, as applicable, of the Financing, the Reverse Stock
Split, and the Amendment to the Certificate of Designation as each such proposal
is described in Section 1.3 of this Modification Agreement, be amended to read
in its entirety as follows:

          Listing. For so long as a Purchaser owns any of the Securities, the
     Company shall use its best efforts to continue the listing of its Common
     Stock on the Nasdaq SmallCap Market, the Nasdaq National Market, the New
     York Stock Exchange or the American Stock Exchange, secure and maintain
     listing and trading of the Conversion Shares and Warrant Shares on such
     exchange, and comply in all respects with the Company's reporting, filing
     and other obligations under the bylaws or rules of such exchange.

1.3  Section 4.12 of the Securities Purchase Agreement is hereby amended to read
in its entirety as follows:

          Share Authorization.  The Company covenants and agrees that it shall
     (i) solicit by proxy Stockholder Approval (as defined below) and (ii) use
     its best efforts to obtain Stockholder Approval at its next stockholder
     meeting which shall be held no later than October 31, 2001 (the
     "Stockholder Approval Date"). For purposes hereof, "Stockholder Approval"
     means (a) authorization by the required vote under Nasdaq Rule 4350 of the
     stockholders of the Company of the issuance of shares of Common Stock upon
     conversion of shares of Preferred Stock pursuant to the terms of the
     Certificate of Designation and the exercise of the Warrant pursuant to the
     terms thereof in the aggregate in excess of 19.99% of the outstanding
     shares of Common Stock (the "Financing"), (b) if necessary and to the
     extent effected by stockholder vote, the elimination of any prohibitions
     under the rules or regulations of any stock exchange, interdealer quotation
     system or other self-regulatory organization with jurisdiction over the
     Company or any of its securities on the Company's ability to issue shares
     of Common Stock in excess of the Cap Amount (as defined in the Certificate
     of Designation) and for all other applicable purposes, (c) authorization by
     the required vote under the Delaware General Corporation Law to approve the
     Reverse Stock Split (as defined below) and (d) authorization by the
     required vote under Delaware General Corporation

                                       2
<PAGE>

     Law to amend the Certificate of Designation in the form of Exhibit A (the
     "Amended Certificate"). In addition, the Company shall, unless otherwise
     consented to by holders of a majority of the Series E Preferred Stock, have
     a definitive proxy statement mailed to each stockholder of the Company at
     least ten (10) days prior to the Stockholder Approval Date.

1.4  Section 4.15 of the Securities Purchase Agreement is hereby amended to read
in its entirety as follows:

          Reverse Stock Split.  The Company covenants and agrees that it will
     use its best efforts to obtain by September 30, 2001 stockholder approval
     to conduct a reverse stock split, the ratio of which will be determined by
     the Company in its sole discretion, provided that such ratio shall be not
     less than 1:7 and not more than 1:10 (the "Reverse Stock Split").

1.5  Section 4.16 of the Securities Purchase Agreement is hereby amended to read
in its entirety as follows:

          Conversion of Jotter Note.  The Company covenants and agrees that it
     will use its best efforts to obtain by October 31, 2001 stockholder
     approval for the conversion of the $1.7 million promissory note issued to
     Jotter Technologies, Inc. ("Jotter") as partial consideration in the asset
     purchase transaction between the Company and Jotter ("Jotter Asset
     Purchase") into shares of Common Stock at $1.00 per share, and the Company
     shall, in any event, provide evidence satisfactory to the Purchaser of such
     conversion.

                                  ARTICLE II

                         REGISTRATION RIGHTS AGREEMENT

2.1  Section 2.1 of the Registration Rights Agreement is hereby amended to read
in its entirety as follows:

          Mandatory Registration.  The Company shall prepare and file with the
     SEC a Registration Statement (i) on a Form S-3, in the event a Form S-3
     Registration Statement is available to the Company, on or prior to the
     tenth (10/th/) business day after the Closing (as defined in the Securities
     Purchase Agreement); or (ii) on such form of Registration Statement as is
     then available to effect a registration of all of the Registrable
     Securities, in the event a Form S-3 Registration Statement is no longer
     available to the Company, on or prior to the sixtieth (60th) business day
     after the date of the Closing (as defined in the Securities Purchase
     Agreement) (in each case, the "Filing Date"). The Registrable Securities
     included in the Registration Statement shall be allocated to each Purchaser
     as set forth in Section 12.9 hereof. The Registration Statement (and each
     amendment or supplement thereto, and each request for acceleration of
     effectiveness thereof) shall be provided to (and subject to the approval of
     (which approval shall not be unreasonably withheld or denied)) the Initial
     Purchaser and its counsel prior to its filing or other submission.

                                       3
<PAGE>

2.2  Section 2.3 of the Registration Rights Agreement shall, subject to and
effective only upon authorization by the required vote prescribed by the NASD
and the Delaware General Corporation Law, as applicable, of the Financing, the
Reverse Stock Split, and the Amended Certificate as each such proposal is
described in Section 1.3 of this Modification Agreement, be amended to read in
its entirety as follows:

          Registration Deadline; Registration Failure. (a) The Company shall
     cause the Registration Statement required to be filed pursuant to Section
     2.1 hereof to become effective as soon as practicable following the date of
     Stockholder Approval (as defined in the Securities Purchase Agreement), if
     such Stockholder Approval is received, or if such Stockholder Approval is
     not received, following the date of the next stockholders' meeting, but
     shall cause such Registration Statement (i) in the event a Form S-3
     Registration Statement is available to the Company, to become effective in
     no event later than the sixtieth (60th) day following the Closing, or (ii)
     in the event a Form S-3 Registration Statement is no longer available to
     the Company, to become effective in no event later than December 31, 2001,
     (in each case, the "Registration Deadline"). If the Registration Statement
     is not effective as required by this Section 2.3, the Company shall
     thereafter use its best efforts to cause such Registration Statement to
     become effective. If the Registration Statement covering the Registrable
     Securities required to be filed by the Company pursuant to Section 2.1
     hereof is not declared effective by the SEC on or before the Registration
     Deadline (a "Registration Failure"), the Conversion Price in respect of any
     shares of Series E Preferred Stock held by any affected holder, shall be
     reduced by 20% and for each month thereafter during the period beginning on
     and including the date of such Registration Failure through and including
     the date on which such Registration Failure is cured, the Conversion Price
     shall be reduced by 1.5% (pro rated for days less than one month).

2.3  Section 3.17 of the Registration Rights Agreement is hereby amended to read
in its entirety as follows:

          Except for the holders listed in Schedule 3.17 hereto, from and after
     the date of this Agreement, the Company shall not, and shall not agree to,
     allow the holder of any securities of the Company (other than Registrable
     Securities) to include any of their securities in any Registration
     Statement or any amendment or supplement thereto under Section 3.1 or 3.2
     hereof without the consent of the holders of a majority of the Registrable
     Securities hereunder.

2.4  Schedule 3.17 to the Registration Rights Agreement is hereby amended to
read in its entirety as set forth on Exhibit B hereto.

                                       4
<PAGE>

                                  ARTICLE III

                        SERIES A AND SERIES B WARRANTS

3.1  Subject to and effective only upon authorization by the required vote
prescribed by the NASD and the Delaware General Corporation Law, as applicable,
of the Financing, the Reverse Stock Split and the Amended Certificate, as each
such proposal is described in Section 1.3 of this Modification Agreement, the
Company shall amend the Series A Warrants and Series B Warrants issued to each
Purchaser in the forms of Exhibits C and D, respectively (the "Amended
Warrants"). Each Purchaser shall deliver their respective Series A Warrants and
Series B Warrants to the Company in substitution of their respective Amended
Warrants. The Company shall deliver the Amended Warrants to the respective
Purchasers  upon receipt of the Series A Warrants and Series B Warrants from
each warrant holder.

                                  ARTICLE IV

                                 MISCELLANEOUS

4.1  Effect.  Except as otherwise set forth in this Amendment, the Agreement
shall become effective upon execution of this Agreement by holders of two-thirds
of the outstanding Preferred Stock. Except as otherwise set forth in this
Agreement, the Securities Purchase Agreement, the Registration Rights Agreement
and the Series A and B Warrants shall remain in full force and effect in
accordance with their terms.

4.2  Approval of Palo Alto Investors.  Each of the Purchasers listed on Schedule
I hereto hereby agrees, subject to approval by the Company's common stockholders
of the Financing, the Reverse Stock Split and the Amended Certificate, to vote
at the next meeting of stockholders following the execution of this Agreement in
favor of adopting the Amended Certificate.

4.3  Governing Law.  This agreement shall be governed by, construed under and
enforced in accordance with the laws of the State of Delaware without regard to
any conflict of law principles thereof.

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

4.5  Costs.  The Company shall pay reasonable legal fees and expenses incurred
by counsel to Palo Alto Investors in connection with the negotiation and
execution of this Modification Agreement, the Amended Certificate and the
Amended Warrants.

                                       5
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Modification
Agreement to be executed as of the day and year first above written.

                                   SAFLINK CORPORATION

                                   By:
                                      ----------------------------
                                      Glenn Argenbright
                                      Chief Executive Officer

                                   PURCHASER:

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

                                       6

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