Document:

Form of employment agreement

Exhibit 10.1 
 
SAFLINK CORPORATION 
 
EMPLOYMENT AGREEMENT 
 
THIS EMPLOYMENT AGREEMENT is made and entered into on this             day of
            , BETWEEN: 
 

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

 

	 	(2)                    	 	(“the Employee”), a resident of
                                     . 

	

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

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

 

	 	2.2	 	The Employee shall devote all of his time, attention, and best efforts to SAFLINK’s business. 

 

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

 
3.    Compensation 
 

	 	3.1	 	The Employee’s initial salary shall be          dollars ($         ) per year.
The employee shall also receive          options to purchase SAFLINK Corporation Common Stock vesting over three (3) years in thirty-six (36) equal monthly installments and subject to a nine (9) month
probationary cliff, commencing from grant date subject to Board approval. The compensation in no way alters the at-will nature of the Employee’s employment. SAFLINK may, in its sole discretion, increase, decrease, or otherwise alter the
Employee’s salary at any time. SAFLINK may also make deductions or withholdings as required by applicable State and Federal law, or as may be or has been consented to by the Employee. 

 

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

 
4.    Reasonableness of Restrictions 
 
The Employee acknowledges that, during the Employment, SAFLINK will provide the Employee with the use of and access to trade secrets and confidential information. In turn, the Employee recognizes that,
while performing his duties hereunder he will have access to and come into contact with trade secrets and confidential information belonging to SAFLINK and will obtain personal knowledge of and influence over its customers and/or employees. The
Employee therefore agrees that the restrictions contained in Sections 5, 6 and 7 are reasonable and necessary to protect the legitimate business interests of SAFLINK. 
 
5.    Duty of Loyalty 
 
The Employee agrees that he shall devote his full working time, attention and efforts to SAFLINK’s
business. In all aspects of the Employee’s employment with SAFLINK, the Employee shall act in the utmost good faith, fair dealing with SAFLINK, and fully disclose to SAFLINK all information which SAFLINK might reasonably consider important to
SAFLINK’s business. While employed by SAFLINK, the Employee shall not establish, operate, participate in, advise, or assist to establish in any manner whatsoever any business in competition with SAFLINK’s business, and the Employee shall
not take any preliminary or preparatory steps toward establishing or operating such a business, including soliciting clients or other employees of SAFLINK with respect to such business prospects, or even discussing said business prospects with
clients or other employees of SAFLINK. The Employee shall not take action which would divert from SAFLINK any business opportunity in which SAFLINK may or could be interested. The Employee shall immediately notify SAFLINK of any actual or potential
business opportunity related to SAFLINK’s core business of which the Employee becomes aware, whether or not the Employee believes the opportunity is of interest to SAFLINK. 
 
6.    Confidentiality 
 

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

 

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

 

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

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

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

 

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

 

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7.    Copyright, Inventions And Patents 
 

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

 

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

 

	 	7.2.1	 	the invention relates to: 

 

	 	7.2.1.1	 	the business of SAFLINK; or 

 

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

 

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

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

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

 

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

 

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

 
8.    At-Will Employment

 

	 	8.1	 	SAFLINK and the Employee agree that this employment relationship is at-will and not for any definite term of employment, in that either SAFLINK or the Employee may
at any time, for any or no reason, with or without notice, terminate this Employment Agreement. 

 

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

 

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

 

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

 

	 	8.5	 	Upon a termination of employment under Section 8.1, SAFLINK shall be relieved of all further obligations under this Employment Agreement. Notwithstanding such
termination of employment, the Employee shall continue to be bound by the provisions of Sections 6 and 7. 

 
9.    Severability 
 
The various provisions and sub-provisions of this Employment Agreement are severable, and if any provision or sub-provision or
identifiable part thereof is held to be invalid or unenforceable by any court of competent jurisdiction, then such invalidity or unenforceability shall not affect the validity of enforceability of the remaining provisions or sub-provisions or
identifiable parts in this Employment Agreement. 
 
10.    Warranty 
 
The Employee represents and warrants that he is not prevented by any other Employment Agreement, arrangement, contract, understanding, Court Order or otherwise, which in any way directly or indirectly conflicts, is inconsistent with,
or restricts or prohibits him from fully performing the duties of the Employment, in accordance with the terms and conditions of this Employment Agreement. 
 
11.    Notices 
 
Any notice to be given hereunder may be delivered to (a) in the case of SAFLINK, by first class mail addressed to its Registered Office
and (b) in the case of the Employee, either to him personally or by first class mail to his last known residence address. Notices served by mail shall be deemed given when they are mailed. 
 
12.    Waivers and Amendments 
 
No act, delay, omission, or course of dealing on the part of any party hereto in exercising any right, power,
or remedy hereunder shall operate as, or be construed as, a waiver thereof or otherwise prejudice such party’s rights, powers, and remedies under this Employment Agreement. This Employment Agreement may be amended only by a written instrument
signed by the Employee and a duly authorized officer of SAFLINK. 
 
13.    Prior Agreements 
 
This Employment Agreement cancels and is in substitution for all previous letters of engagement, offer letters, agreements, and arrangements (whether oral or in writing) relating to the subject-matter hereof between SAFLINK
and the Employee, all of which shall be deemed to have been terminated by mutual consent. This Employment Agreement constitutes the entire terms and conditions of the Employee’s employment and no waiver or modification thereof shall be valid
unless in writing, signed by the parties, and only to the extent therein set forth. 
 
14.    Arbitration Jurisdiction and Governing Law 
 
Except for disputes arising under or in connection with Sections 6 and 7, all disputes arising under or in connection with this Employment
Agreement or concerning in any way the Employee’s employment shall be submitted exclusively to arbitration in Seattle, Washington under the applicable rules of the Commercial Arbitration Rules of the American Arbitration Association then in
effect, and the decision of the arbitrator shall be final and binding upon the parties. Judgment upon the award rendered may be entered and enforced in any court having jurisdiction. The Employee consents to personal jurisdiction of any state or
federal court sitting in 

 

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King County, Washington, in order to enforce any arbitration judgment or the rights of SAFLINK under Sections 6 and 7 and waives any
objection that such forum is inconvenient. The Employee hereby consents to service of process in any such action by U.S. mail or other commercially reasonable means of receipted delivery. This Employment Agreement shall be governed by and construed
in accordance with the laws of the State of Washington. 
 
15.    Assignability 
 
The rights and obligations contained herein shall be binding on and inure to the benefit of the successors and assigns of SAFLINK. The Employee may not assign his rights or obligations hereunder without the express written consent of
SAFLINK. 
 
16.    Headings; Construction

 
The headings contained in this Employment
Agreement are inserted for reference and inserted for reference and convenience only and in no way define, limit, extend, or describe the scope of this Employment Agreement or the meaning or construction of any of the provisions hereof. As used
herein, unless the context otherwise requires, the single shall include the plural and vice versa, words of any gender shall include words of any other gender, and “or” is used in the inclusive sense. 
 
17.    Survival of Terms 
 
If this Employment Agreement is terminated for any reason,
the provisions of Sections 6 and 7 shall survive and the Employee and SAFLINK, as the case may be, shall continue to be bound by the terms thereof to the extent provided therein. 
 
18.    Employee Acknowledgment 
 
THE EMPLOYEE REPRESENTS THAT HE HAS HAD AMPLE OPPORTUNITY TO REVIEW THIS AGREEMENT AND THE EMPLOYEE
ACKNOWLEDGES THAT HE UNDERSTANDS THAT IT CONTAINS IMPORTANT CONDITIONS OF THE EMPLOYMENT AND THAT IT EXPLAINS POSSIBLE CONSEQUENCES, BOTH FINANCIAL AND LEGAL, IF THE EMPLOYEE BREACHES THE AGREEMENT. 
 
AS WITNESS the hands of a duly authorized officer of SAFLINK
and of the Employee the day and year first before written. 
 

	 SAFLINK CORPORATION

	
	 BY:
	 	  

	 	 	 NAME

	 	 	 TITLE

	 	 	 DATE

	 	 	 	 	 
	 	 	 BY:
	 	  

	 	 	 NAME

	 	 	 DATE

 

5Form of Retention Agreement

Exhibit 10.2 
 
RETENTION AGREEMENT 
 
This Retention Agreement (the “Agreement”) is effective as of
            (the “Effective Date”), by and between             (the “Employee”), and SAFLINK
Corporation, a Delaware corporation (the “Company”). 
 
RECITALS 
 
A.    The Employee presently serves at the pleasure of the Board of Directors of the Company and performs significant strategic and management responsibilities necessary to the continued conduct of the
Company’s business and operations. 
 
B.    The Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued
dedication and objectivity of the Employee, notwithstanding the possibility or occurrence of a Change of Control (as defined below) of the Company. 
 
C.    The Board believes that it is imperative to provide the Employee with certain severance benefits upon the
Employee’s termination of employment under the circumstances described herein which provide the Employee with enhanced financial security and provide sufficient incentive and encouragement to the Employee to remain with the Company following a
Change of Control. 
 
D.    Certain capitalized terms used in the Agreement are defined in Section 3 below. 
 
AGREEMENT 
 
In consideration of the mutual covenants herein contained, and as an additional inducement to Employee to continue her employment with the
Company, the parties agree as follows: 
 
1.    Terms of Employment.    The Company and the Employee agree that the Employee’s employment is at will, and that their employment relationship may be terminated by either party
at any time, with or without cause, subject to the terms of this Agreement. If the Employee’s employment terminates for any reason prior to, upon or following a Change of Control, the Employee shall not be entitled to any payments, benefits,
damages, awards or compensation other than as provided by this Agreement. 
 
2.    Severance Benefits. 
 
(a)    Involuntary Termination.    If the Employee’s employment is
terminated as a result of Involuntary Termination (as defined in Section 3(b) below), then the Employee shall be entitled to receive: (i) the compensation, accrued but unused vacation and benefits earned by the Employee through the date of the
Employee’s termination of employment; and (ii) severance payments equal to four (4) months salary determined on the basis of the Employee’s annual base salary rate in effect immediately prior to the Employee’s Involuntary Termination,
payable in accordance with the Company’s standard payroll practices. 
 
(b)    Termination Upon A Change of Control.    Subject to Section 2(g) below, if the Employee’s employment is terminated as a result of Involuntary
Termination (as defined in Section 3(b) below) within two (2) months prior to, upon or within twelve (12) months following consummation of a Change of Control, then the Employee shall be entitled to receive the following: 
 
(i)    The compensation,
accrued but unused vacation and benefits earned by the Employee through the date of the Employee’s termination of employment. 

 
(ii)    Severance payments equal to four (4) months salary determined on the basis of the Employee’s annual base salary rate in effect immediately prior to the Employee’s Involuntary Termination, payable
in a lump sum within thirty (30) days of the date of the Employee’s Involuntary Termination. 
 
(iii)    In addition to the foregoing, to the extent the Employee holds any options to purchase shares
of the Company’s capital stock which are not vested as of the date of such termination, then the vesting and exercisability of each outstanding option shall accelerate with respect to one hundred percent (100%) of the then unvested shares as of
the date of such termination. 
 
(iv)    In addition to the foregoing, for a period of up to twelve (12) months after any termination under this Section 2(a), the Company shall reimburse the Employee for any COBRA premiums paid by the Employee
for continued group health insurance coverage (the “Employment Benefits”). If the Employee’s medical coverage immediately prior to the date of termination of employment included the Employee’s dependents, the Company paid
COBRA premiums shall include premiums for such dependents. Such Employment Benefits shall terminate upon the earlier of (A) twelve (12) months from the date of the Employee’s termination, or (B) upon commencement of new employment by the
Employee. 
 
(v)    In addition to the foregoing, the Employee shall be entitled to receive the laptop or other portable computer device used by the Employee, if any, as of the date of termination; provided, the
Employee first delivers such device to the Company for removal of all Company proprietary information. 
 
(c)    Voluntary Resignation.    If the Employee’s employment
terminates by reason of the Employee’s voluntary resignation (and is not an Involuntary Termination or a termination for Cause), then the Employee shall not be entitled to receive severance or other benefits following the date of such
termination under the terms of this Agreement, other than the compensation and benefits earned by the Employee through the date of the Employee’s termination of employment, and the Company shall have no obligation to provide for the
continuation of any health and medical benefit or life insurance plans existing on the date of such termination except as otherwise required by applicable law. 
 
(d)    Disability; Death.    If the Company
terminates the Employee’s employment as a result of the Employee’s Disability, or such Employee’s employment is terminated at any time due to the death of the Employee, then the Employee shall not be entitled to receive severance or
other benefits following the date of such termination under the terms of this Agreement, other than the compensation and benefits earned by the Employee through the date of the Employee’s termination of employment, and the Company shall have no
obligation to provide for the continuation of any health and medical benefit or life insurance plans existing on the date of such termination except as otherwise required by applicable law. 
 
(e)    Termination for
Cause.    If the Employee is terminated for Cause, then the Employee shall not be entitled to receive any severance or other benefits following the date of such termination under the terms of this Agreement, other than the
compensation and benefits earned by the Employee through the date of the Employee’s termination of employment, and the Company shall have no obligation to provide for the continuation of any health and medical benefit or life insurance plans
existing on the date of such termination except as otherwise required by applicable law. 
 
(f)    Release of Claims.    The Employee’s right to receive severance
benefits or accelerated vesting under this Agreement shall be conditioned upon the Employee’s execution and delivery of a Waiver and Release substantially in the form attached hereto as Exhibit A. 
 
(g)    Limitation of
Payments and Benefits. 
 
(i)    To the extent that any of the payments and benefits provided for in this Agreement or otherwise payable to the Employee constitute “parachute payments” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), and, but for this Section 2(g), 

 

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would be subject to the excise tax imposed by Section 4999 of the Code or any similar or successor provision, the aggregate amount of such
payments and benefits shall be reduced, but only to the extent necessary so that none of such payments and benefits are subject to excise tax pursuant to Section 4999 of the Code. 

 
(ii)    Within sixty (60)
days after the later of termination of employment or the related Change of Control, the Company shall notify the Employee in writing if it believes that any reduction in the payments and benefits that would otherwise be paid or provided to the
Employee under the terms of this Agreement is required to comply with the provisions of Subsection 2(g)(i). If the Company determines that any such reduction is required, it will provide the Employee with copies of the information used and
calculations made by the Company to determine the amount of such reduction. The Company shall determine, in a fair and equitable manner after consultation with the Employee, which payments and benefits are to be reduced so as to result in the
maximum benefit for the Employee. 
 
(iii)    Within thirty (30) days after the Employee’s receipt of the Company’s notice pursuant to Subsection 2(g)(ii), the Employee shall notify the Company in writing if the Employee disagrees with the
amount of reduction determined by the Company, or the selection of the payments and the benefits to be reduced. As part of such notice, the Employee shall also advise the Company of the amount of reduction, if any, that the Employee has, in good
faith, determined to be necessary to comply with the provisions of Subsection 2(g)(i) and/or the payments and benefits to be reduced. Failure by the Employee to provide this notice within the time allowed will be treated by the Company as acceptance
by the Employee of the amount of reduction determined by the Company and/or the payments and benefits to be reduced. If any differences regarding the amount of the reduction and/or the payments and benefits to be reduced have not been resolved by
mutual agreement within sixty (60) days after the Employee’s receipt of the Company’s notice pursuant to Subsection 2(g)(ii), the amount of reduction and/or the payments and benefits to be reduced as determined by the Employee will be
conclusive and binding on both parties unless, prior to the expiration of such sixty (60) day period, the Company notifies the Employee in writing of the Company’s intention to have the matter submitted to arbitration for resolution and
proceeds to do so promptly. If the Company gives no notice to the Employee of a required reduction as provided in Subsection 2(g)(ii), the Employee may unilaterally determine the amount of reduction required, if any, and/or the payments and benefits
to be reduced, and, upon written notice to the Company, the amount and/or the payments and benefits to be reduced will be conclusive and binding on both parties. 
 
(iv)    If, as a result of the reductions required by Subsection 2(g)(i),
the amounts previously paid to the Employee exceed the amount to which the Employee is entitled, the Employee will promptly return the excess amount to the Company. 
 
3.    Definition of Terms.    The following terms referred to
in this Agreement shall have the following meanings: 
 
(a)    Change of Control.    “Change of Control” shall mean the occurrence of either of the following events: 
 
(i)    Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities
of the Company representing more than fifty percent (50%) of the total combined voting power represented by the Company’s then outstanding voting securities; or 
 
(ii)    (A) a merger or consolidation of the Company with any other
corporation or other business entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or parent thereof) more than fifty percent 

 

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(50%) of the total combined voting power represented by the voting securities of the Company or such surviving or parent entity outstanding
immediately after such merger or consolidation; or (B) the complete liquidation of the Company; or (C) the sale or disposition by the Company of all or substantially all the Company’s assets, unless the Company remains an operating business and
a going concern. 

 
(b)    Involuntary Termination.    “Involuntary Termination” shall mean the termination of the Employee’s employment with the Company without Cause (and not as a
result of the Employee’s death or Disability) or Employee’s resignation within sixty (60) days after any of the following: 
 
(i)    Without the Employee’s express written consent, the assignment to the Employee of any
significant duties or the significant reduction of the Employee’s duties, either of which is materially inconsistent with the Employee’s position with the Company and responsibilities in effect immediately prior to such assignment, or the
removal of the Employee from such position and responsibilities, which is not effected for death, Disability or for Cause; 
 
(ii)    Without the Employee’s express written consent, any reduction by the Company in the
Employee’s base salary and/or or maximum incentive bonus (subject, however, to satisfaction of applicable goals with respect to the actual amount of incentive bonus earned) as in effect immediately prior to such reduction, other than a
reduction applied generally to executive officers of the Company; 
 
(iii)    Without the Employee’s express written consent, any reduction by the Company in the kind or level of employee benefits to which the Employee is entitled immediately
prior to such reduction, other than a reduction applied generally to executive officers of the Company; 
 
(iv)    Without the Employee’s express written consent, the relocation of the Employee to a
facility or a location more than fifty (50) miles from the Employee’s then present location; or 
 
(v)    The failure of the Company to obtain the assumption of the terms of this Agreement by any
successors contemplated in Section 5 below, provided, however, that the Employee’s resignation as a result of any of the foregoing conditions shall be a voluntary resignation, and not an Involuntary Termination, unless the
Employee gives written notice of any such condition(s) to the Company and allows the Company at least ten (10) days thereafter to correct such condition(s). 
 
(c)    Cause.    For purposes of this Agreement, a termination for
“Cause” occurs if the Employee is terminated for any of the following reasons: 
 
(i)    The Employee’s theft, dishonesty, misconduct or intentional falsification of any
employment or Company records; 
 
(ii)    The Employee’s intentional and improper disclosure or use of the Company’s confidential or proprietary information; 
 
(iii)    Any action by the Employee that has a material detrimental
effect on the Company’s reputation or business; 
 
(iv)    The Employee’s failure or inability to perform any assigned duty reasonably expected of a person holding the Employee’s position after written notice from the Company to the Employee of,
and a reasonable opportunity to cure, such failure or inability; or 
 
(v)    The Employee’s conviction (including any plea of guilty or nolo contendere) for any criminal act that impairs the Employee’s ability to perform his or her duties
for the Company. 
 
(d)    Disability.    “Disability” shall mean that the Employee is unable to perform his or her duties as an employee of the Company as the result of his or her
incapacity due to physical or mental impairment for 120 days (not necessarily consecutive) in any one (1) year period. Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Company of
its intention to 

 

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terminate the Employee’s employment. In the event that the Employee resumes the performance of substantially all of his or her duties as
an employee of the Company before the termination of his or her employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked. 

 
4.    Employee Covenant Regarding
Nonsolicitation.    For a period of one (1) year following termination of employment for any reason, the Employee shall not recruit, solicit, or invite the solicitation of any employees of the Company to terminate their
employment with the Company. 
 
5.    Successors. 
 
(a)    Company’s Successors.    Any successor (or parent thereof) to the Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) or to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same
manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor (or parent thereof) to the
Company’s business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which becomes bound by the terms of this Agreement by operation of law. 
 
(b)    Employee’s
Successors.    All rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. Employee shall have no right to assign any of his obligations or duties under this Agreement to any other person or entity. 
 
6.    Notice. 
 
(a)    General.    Notices and all other communications contemplated by
this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices
shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed
to the attention of its Secretary. 
 
(b)    Notice of Termination.    Any termination by the Company for Cause or by the Employee as a result of a voluntary resignation or an Involuntary Termination shall be communicated by
a notice of termination to the other party hereto given in accordance with Section 6 of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than fifteen (15) days after the giving of such notice). 
 
7.    Miscellaneous Provisions.

 
(a)    No Duty to Mitigate.    The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other
manner), nor, except with respect to the Employment Benefits as described in Section 2(a)(i), shall any such payment be reduced by any earnings that the Employee may receive from any other source. 
 
(b)    Waiver.    No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee
and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time. 
 
(c)    Choice of Law.    The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of
Washington. 
 

5 

 
(d)    Severability.    The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect. 
 
(e)    Dispute Resolution/Mutual Waiver of Jury.    The Company and the Employee acknowledge and agree that any dispute or controversy which may arise under this Agreement is likely to
involve complicated and difficult issues. Therefore each party hereby irrevocably and unconditionally waives any right such party may have to a trial by jury in respect or any litigation directly or indirectly arising out of or relating to this
Agreement. The Company and the Employee agree to and hereby waive their respective rights to a jury trial as to matters arising out of the terms of this Agreement. Each party certifies and acknowledges that (i) no representative, agent or attorney
of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver, (ii) each such party understands and has considered the implications of this jury waiver,
and (iii) each such party voluntarily waives his, her or its right to a trial by jury. 
 
(f)    No Assignment of Benefits.    The rights of any person to payments
or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s
process, and any action in violation of this subsection (f) shall be void. 
 
(g)    Employment Taxes.    All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.

 
(h)    Assignment by Company.    The Company may assign its rights under this Agreement to an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate
of the Company or to the Company; provided, however, that no assignment shall be made if the net worth of the assignee is less than the net worth of the Company at the time of assignment. In the case of any such assignment, the term
“Company” when used in a section of this Agreement shall mean the corporation that actually employs the Employee. 
 
(i)    Counterparts.    This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
 
(j)    Prior Agreements.    This Agreement shall supersede all prior
arrangements whether written or oral, and understandings, regarding the subject matter of this Agreement. Notwithstanding the preceding, the provisions of the SAFLINK Corporation 2000 Stock Incentive Plan and any Options granted thereunder,
including the determination of accelerated vesting upon the occurrence of certain events, shall remain in full force and effect. 
 
IN WITNESS WHEREOF, each of the parties has executed this Retention Agreement, in the case of the Company by its duly authorized officer,
as of the day and year first above written. 
 

	COMPANY	 	 	 	SAFLINK CORPORATION                        
	
	 	 	 	 	 By:                                     
                                        
    

	 	 	 	 	 Title:                                    
                                        
  

	
	 EMPLOYEE
	 	 	 	 By:                                     
                                        
    

	 	 	 	 	 Printed
Name:                                       
                     

 

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