Document:

Form of Placement Agent Warrant

 Exhibit 4.3 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR FLO CORPORATION SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT
AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
 WARRANT TO PURCHASE 
 SHARES OF COMMON STOCK 
 OF 
 FLO CORPORATION 
 Expires
            , 2012 
  

			
	 No.: W-07-    
	  	Number of Shares:                     
	 Date of
Issuance:                    , 2007
	  	

 FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the undersigned, FLO
Corporation, a Delaware corporation (together with its successors and assigns, the “Issuer”), hereby certifies that
                                        
                         or its registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter
defined), up to
                                        
     (                    ) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized
terms used in this Warrant and not otherwise defined herein shall have the respective meanings specified in Section 9 hereof. 
 1.
Term. The term of this Warrant shall commence on             , 2007 and shall expire at 5:00 p.m., eastern time, on
            , 2012 (such period being the “Term”). 
 2.
Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange. 
 (a) Time of Exercise. The purchase rights
represented by this Warrant may be exercised in whole or in part at any time during the Term. 
 (b) Method of Exercise. 

(i) The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached
hereto duly executed) at the principal 

 
office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such
exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election (i) by certified or official bank check or by wire transfer to an account designated
by the Issuer or (iii) by a combination of the foregoing methods of payment selected by the Holder of this Warrant. 
 (ii) Cashless Exercise. Notwithstanding any provisions herein to the contrary, in lieu of exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a “cashless exercise” and shall receive the
number of shares of Common Stock computed using the following formula: 
  

					
		  	X =	 	Y - (A)(Y)
		  		 	          B
			
	Where	  	X =	 	the number of shares of Common Stock to be issued to the Holder;
			
		  	Y =	 	the number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being
exercised;
			
		  	A =	 	the Warrant Price; and
			
		  	B =	 	the Per Share Market Value of one share of Common Stock.

 (c) Issuance of Stock Certificates. In the event of any exercise of the rights represented
by this Warrant in accordance with and subject to the terms and conditions hereof, (i) certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable
time, not exceeding three (3) Trading Days after such exercise or, at the request of the Holder (provided that a registration statement under the Securities Act providing for the resale of the Warrant Stock is then in effect), issued and
delivered to the Depository Trust Company (“DTC”) account on the Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) within a reasonable time, not exceeding three (3) Trading Days
after such exercise, and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Warrant Stock so purchased as of the date of such exercise and (ii) unless this Warrant has expired, a new Warrant representing the
number of shares of Warrant Stock, if any, with respect to which this Warrant shall not then have been exercised (less any amount thereof which shall have been canceled in payment or partial payment of the Warrant Price as hereinabove provided)
shall also be issued to the Holder hereof at the Issuer’s expense within such time. 
 (d) Transferability of Warrant. Subject to
Section 2(f), this Warrant may be transferred by a Holder without the consent of the Issuer. If transferred pursuant to this paragraph and subject to the provisions Section 2(f), this Warrant may be transferred on the books of the Issuer
by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any
necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants for the purchase of the same aggregate number of shares of 

  

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Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of
such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant hereto. 
 (e) Continuing Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the
Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant,
provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder. 
 (f) Compliance with Securities Laws. 
 (i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant or the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not
as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration
statement, or an exemption from registration, under the Securities Act and any applicable state securities laws. 
 (ii)
Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form: 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR FLO CORPORATION SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
 (iii) The restrictions imposed by this subsection (f) upon the transfer of this Warrant or the shares of Warrant Stock to be
purchased upon exercise hereof shall terminate (A) when such securities shall have been resold pursuant to an effective registration statement under the Securities Act, (B) upon the Issuer’s receipt of an opinion of counsel, in form
and substance reasonably satisfactory to the Issuer, addressed to the Issuer to the effect that such restrictions are no longer required to ensure compliance with the Securities Act and state securities laws or (C) upon the Issuer’s
receipt of other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required. 

  

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Whenever such restrictions shall cease and terminate as to any such securities, the Holder thereof shall be entitled to receive from the Issuer (or its
transfer agent and registrar), without expense (other than applicable transfer taxes, if any), new Warrants (or, in the case of shares of Warrant Stock, new stock certificates) of like tenor not bearing the applicable legend required by paragraph
(ii) above relating to the Securities Act and state securities laws. 
 3. Stock Fully Paid; Reservation and Listing of Shares;
Covenants. 
 (a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which
may be issued upon the exercise of this Warrant or otherwise hereunder will, upon issuance, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through Issuer. The Issuer further
covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issue upon exercise of this Warrant a sufficient number of shares of Common
Stock to provide for the exercise of this Warrant. 
 (b) Reservation. If any shares of Common Stock required to be reserved for
issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any governmental authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its
reasonable best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified. If the Issuer shall list any shares of Common Stock on any securities exchange or market it will, at its expense, list
thereon, maintain and increase when necessary such listing, of, all shares of Warrant Stock from time to time issued upon exercise of this Warrant or as otherwise provided hereunder (provided that such Warrant Stock has been registered pursuant to a
registration statement under the Securities Act then in effect), and, to the extent permissible under the applicable securities exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any shares of
Common Stock shall be so listed. The Issuer will also so list on each securities exchange or market, and will maintain such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this
Warrant if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer. 
 (c)
Covenants. The Issuer shall not by any action including, without limitation, amending the Certificate of Incorporation or the by-laws of the Issuer, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of the Holder hereof against impairment. Without limiting the generality of the foregoing, the Issuer will (i) not permit the par value, if any, of its Common Stock to exceed the
then effective Warrant Price, (ii) not amend or modify any provision of the Certificate of Incorporation or by-laws of the Issuer in any manner that would adversely affect the rights of the Holders of the Warrants, (iii) take all such
action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein or
under applicable securities laws) upon the exercise of this Warrant, and (iv) use its reasonable best efforts to 

  

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obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be reasonably necessary to enable
the Issuer to perform its obligations under this Warrant. 
 (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of
any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number
of shares of Common Stock. 
 4. Adjustment of Warrant Price. The price at which shares of Common Stock for which this Warrant is
exercisable may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. The Issuer shall give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with Section 5. 
 (a) Recapitalization, Reorganization, Reclassification,
Consolidation, Merger or Sale. 
 (i) In case the Issuer after the Original Issue Date shall do any of the following
(each, a “Triggering Event”): (a) consolidate with or merge into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit any other Person to
consolidate with or merge into the Issuer and the Issuer shall be the continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or exchanged for securities of any other
Person or cash or any other property, or (c) transfer all or substantially all of its properties or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock, then, and in the case of each
such Triggering Event, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder of this Warrant shall be entitled upon the exercise hereof at any time after the consummation of such
Triggering Event, to the extent this Warrant is not exercised prior to such Triggering Event, to receive at the Warrant Price in effect at the time immediately prior to the consummation of such Triggering Event in lieu of the Common Stock issuable
upon such exercise of this Warrant prior to such Triggering Event, the securities, cash and property to which such Holder would have been entitled upon the consummation of such Triggering Event if such Holder had exercised the rights represented by
this Warrant immediately prior thereto, subject to adjustments (subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 4. 
 (ii) Notwithstanding anything contained in this Warrant to the contrary, a Triggering Event shall not be deemed to have occurred if, prior
to the consummation thereof, each Person (other than the Issuer) which may be required to deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written instrument delivered to, and reasonably
satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall be in addition to, and shall not release the
Issuer from, any continuing obligations of the Issuer under 

  

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this Warrant) and (B) the obligation to deliver to such Holder such Securities, cash or property as, in accordance with the foregoing provisions of this
subsection (a), such Holder shall be entitled to receive, and such Person shall have similarly delivered to such Holder an opinion of counsel for such Person, which counsel shall be reasonably satisfactory to such Holder, or in the alternative, a
written acknowledgement executed by the President or Chief Financial Officer of the Issuer, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of
this subsection (a)) shall be applicable to the Securities, cash or property which such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto. 
 (b) Stock Dividends, Subdivisions and Combinations. If at any time the Issuer shall: 
 (i) take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend payable in, or other
distribution of, shares of Common Stock, 
 (ii) subdivide its outstanding shares of Common Stock into a larger number of
shares of Common Stock, or 
 (iii) combine its outstanding shares of Common Stock into a smaller number of shares of Common
Stock, 
 then (1) the number of shares of Common Stock for which this Warrant is exercisable immediately after the occurrence of any such event shall
be adjusted to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive
after the happening of such event, and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment. 
 (c) Certain Other Distributions. If at any time the Issuer shall take a record of the holders of its Common Stock for the purpose of entitling them to receive any dividend or other distribution of: 

(i) cash (other than a cash dividend payable out of earnings or earned surplus legally available for the payment of dividends under the
laws of the jurisdiction of incorporation of the Issuer), 
 (ii) any evidences of its indebtedness, any shares of stock of
any class or any other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common Stock), or 
 (iii) any warrants or other rights to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other than cash, Common
Stock Equivalents or Additional Shares of Common Stock), 
  

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 then (1) the number of shares of Common Stock for which this Warrant is exercisable shall be adjusted to equal the
product of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such adjustment multiplied by a fraction (A) the numerator of which shall be the Per Share Market Value of Common Stock at the date of
taking such record and (B) the denominator of which shall be such Per Share Market Value minus the amount allocable to one share of Common Stock of any such cash so distributable and of the fair value (as determined in good faith by the Board
of Directors of the Issuer) of any and all such evidences of indebtedness, shares of stock, other securities or property or warrants or other subscription or purchase rights so distributable, and (2) the Warrant Price then in effect shall be
adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares of Common Stock for
which this Warrant is exercisable immediately after such adjustment. A reclassification of the Common Stock (other than a change in par value, or from par value to no par value or from no par value to par value) into shares of Common Stock and
shares of any other class of stock shall be deemed a distribution by the Issuer to the holders of its Common Stock of such shares of such other class of stock within the meaning of this Section 4(c) and, if the outstanding shares of Common
Stock shall be changed into a larger or smaller number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision or combination, as the case may be, of the outstanding shares of Common Stock within the
meaning of Section 4(b). 
 (d) Issuance of Additional Shares of Common Stock. 
 (i) In the event the Issuer shall at any time issue any Additional Shares of Common Stock (otherwise than as provided in the foregoing
subsections (b) through (c) of this Section 4 and other than Permitted Issuances) at a price per share less than the Warrant Price then in effect or without consideration, then the Warrant Price upon each such issuance shall be
adjusted to that price determined by multiplying the Warrant Price then in effect by a fraction: 
 (A) the numerator of which
shall be equal to the sum of (x) the number of shares of Outstanding Common Stock immediately prior to the issuance of such Additional Shares of Common Stock plus (y) the number of shares of Common Stock which the aggregate
consideration for the total number of such Additional Shares of Common Stock so issued would purchase at a price per share equal to the Warrant Price then in effect, and 
 (B) the denominator of which shall be equal to the number of shares of Outstanding Common Stock immediately after the issuance of such
Additional Shares of Common Stock. 
 (ii) The provisions of Section 4(d)(i) shall not apply to any issuance of
Additional Shares of Common Stock for which an adjustment is provided under Section 4(b) or 4(c). 
 (e) Issuance of
Warrants or Other Rights. In the event the Company shall (whether directly or by assumption in a merger in which the Company is the surviving corporation) issue or sell, any warrants or other rights to subscribe for or purchase any Additional
Shares of Common Stock or any Convertible Securities, whether or not the rights to exchange or convert 

  

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thereunder are immediately exercisable (other than Permitted Issuances), and the price per share for which Common Stock is issuable upon the exercise of such
warrants or other rights shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, then the Warrant Price shall be adjusted as provided in Section 4(d) on the basis that the maximum number of
Additional Shares of Common Stock issuable pursuant to all such warrants or other rights or necessary to effect the conversion or exchange of all such Convertible Securities shall be deemed to have been issued and outstanding and the Company shall
have received all of the consideration payable therefor, if any, as of the date of the actual issuance of the number of shares for which this Warrant is exercisable and such warrants or other rights. No further adjustments of the Warrant Price shall
be made upon the actual issue of such Common Stock or of such Convertible Securities upon exercise of such warrants or other rights or upon the actual issue of such Common Stock upon such conversion or exchange of such Convertible Securities.

 (f) Issuance of Convertible Securities. In the event the Company shall (whether directly or by assumption in a merger in which the
Company is the surviving corporation) issue or sell any Convertible Securities, other than pursuant to Permitted Issuances, whether or not the rights to exchange or convert thereunder are immediately exercisable, and the price per share for which
Common Stock is issuable upon such conversion or exchange shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, then the Warrant Price shall be adjusted as provided in Section 4(d) on the
basis that the maximum number of Additional Shares of Common Stock necessary to effect the conversion or exchange of all such Convertible Securities shall be deemed to have been issued and outstanding and the Company shall have received all of the
consideration payable therefor, if any, as of the date of actual issuance of such Convertible Securities. No adjustment of the Warrant Price shall be made under this Section 4(f) upon the issuance of any Convertible Securities that are
issued pursuant to the exercise of any warrants or other subscription or purchase rights therefor, if any such adjustment shall previously have been made upon the issuance of such warrants or other rights pursuant to Section 4(e). No
further adjustments of the Warrant Price shall be made upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities and, if any issue or sale of such Convertible Securities is made upon exercise of any
warrant or other right to subscribe for or to purchase any such Convertible Securities for which adjustments of the Warrant Price have been or are to be made pursuant to other provisions of this Section 4, no further adjustments of the
Warrant Price shall be made by reason of such issue or sale. 
 (g) Superseding Adjustment. If, at any time after any adjustment of
the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect shall have been made pursuant to Section 4(c) as the result of any issuance of warrants, other rights or Common Stock Equivalents,
and (i) such warrants or other rights, or the right of conversion or exchange in such other Common Stock Equivalents, shall expire, and all or a portion of such warrants or other rights, or the right of conversion or exchange with respect to
all or a portion of such other Common Stock Equivalents, as the case may be, shall not have been exercised, or (ii) the consideration per share for which shares of Common Stock are issuable pursuant to such Common Stock Equivalents, shall be
increased solely by virtue of provisions therein contained for an automatic increase in such consideration per share upon the occurrence of a specified date or event, then for each outstanding Warrant such previous adjustment shall be rescinded and
annulled and the Additional Shares of Common Stock which were deemed to have been issued by virtue of the computation made in connection with the adjustment so rescinded and annulled shall no longer be deemed to have been issued by virtue of such
computation. Upon the occurrence of an event set forth in this Section 4(g) above, there shall be a 

  

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recomputation made of the effect of such Common Stock Equivalents on the basis of: (i) treating the number of Additional Shares of Common Stock or other
property, if any, theretofore actually issued or issuable pursuant to the previous exercise of any such warrants or other rights or any such right of conversion or exchange, as having been issued on the date or dates of any such exercise and for the
consideration actually received and receivable therefor, and (ii) treating any such Common Stock Equivalents which then remain outstanding as having been granted or issued immediately after the time of such increase of the consideration per
share for which shares of Common Stock or other property are issuable under such Common Stock Equivalents; whereupon a new adjustment of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect
shall be made, which new adjustment shall supersede the previous adjustment so rescinded and annulled. 
 (h) Reduction of Warrant
Exercise Price by Issuer. If the Issuer at any time while this Warrant is outstanding shall offer the Holder the opportunity to exercise this Warrant at a price per share less than the applicable Warrant Price (each, a “Special Warrant
Offer”), then the Warrant Price then in effect shall be reduced to the exercise price offered pursuant to the Special Warrant Offer. Notwithstanding anything to the contrary contained in this Warrant, any adjustment of the Warrant Price
made pursuant to this paragraph shall not survive the expiration of a Special Warrant Offer unless the Holder participates in such Special Warrant Offer (to the fullest extent permitted by the Company). 
 (i) Other Provisions applicable to Adjustments under this Section. The following provisions shall be applicable to the making of adjustments of
the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect provided for in this Section 4: 
 (i) When Adjustments to Be Made. The adjustments required by this Section 4 shall be made whenever and as often as any specified event requiring an adjustment shall occur, except that any adjustment of the
number of shares of Common Stock for which this Warrant is exercisable that would otherwise be required may be postponed (except in the case of a subdivision or combination of shares of the Common Stock, as provided for in Section 4(b)) up to,
but not beyond the date of exercise if such adjustment either by itself or with other adjustments not previously made adds or subtracts less than one percent (1%) of the shares of Common Stock for which this Warrant is exercisable immediately
prior to the making of such adjustment. Any adjustment representing a change of less than such minimum amount (except as aforesaid) which is postponed shall be carried forward and made as soon as such adjustment, together with other adjustments
required by this Section 4 and not previously made, would result in a minimum adjustment or on the date of exercise. For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on the date of
its occurrence. 
 (ii) Fractional Interests. In computing
adjustments under this Section 4, fractional interests in Common Stock shall be taken into account to the nearest one one-hundredth (1/100th) of
a share. 
 (iii) When Adjustment Not Required. If the Issuer shall take a record of the holders of its Common
Stock for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution to stockholders thereof, legally abandon its plan to pay or deliver such dividend,
distribution, 

  

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subscription or purchase rights, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously
made in respect thereof shall be rescinded and annulled. 
 (j) Form of Warrant after Adjustments. The form of this Warrant
need not be changed because of any adjustments in the Warrant Price or the number and kind of Securities purchasable upon the exercise of this Warrant. 
 (k) Escrow of Warrant Stock. If, after any property becomes distributable pursuant to this Section 4 by reason of the taking of any record of the holders of Common Stock, but prior to the occurrence
of the event for which such record is taken, the Holder exercises this Warrant, any shares of Common Stock issuable upon exercise by reason of such adjustment shall be deemed the last shares of Common Stock for which this Warrant is exercised
(notwithstanding any other provision to the contrary herein) and such shares or other property shall be held in escrow for the Holder by the Issuer to be issued to the Holder upon and to the extent that the event actually takes place, upon payment
of the current Warrant Price. Notwithstanding any other provision to the contrary herein, if the event for which such record was taken fails to occur or is rescinded, then such escrowed shares shall be cancelled by the Issuer and escrowed property
returned. 
 5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to
Section 4 hereof (for purposes of this Section 5, each an “adjustment”), the Issuer shall cause its Chief Financial Officer to prepare and execute a certificate setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder), and the Warrant Price and Warrant Share Number after giving
effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant promptly after each adjustment. 
 6. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with and exercise hereof. If any fraction of a share of Common Stock would, except for the provisions of this Section, be issuable on the
exercise hereof, the Company will (i) round down and issue to the holder only the largest whole number of shares of Common Stock to which the holder is otherwise entitled if the fraction of a share otherwise issuable is less than one-half, or
(2) round up and issue to the holder one additional share of Common Stock in addition to the largest whole number of shares of Common Stock to which the holder is otherwise entitled, if the fraction of a share of Common Stock otherwise issuable
is greater than one-half. The determination as to whether or not any fractional shares are issuable shall be based upon the total number of shares of Common Stock for which warrants are being exercised at any one time by the holder hereof, not upon
each warrant being exercised. 
 7. Ownership Cap and Certain Exercise Restrictions. (a) Notwithstanding anything to the contrary
set forth in this Warrant, at no time may a Holder of this Warrant exercise this Warrant if the number of shares of Common Stock to be issued pursuant to such exercise would exceed, when aggregated with all other shares of Common Stock owned by such
Holder at such time, the number of shares of Common Stock which would result in such Holder owning more than 4.999% of all of the Common Stock outstanding at such time; provided, however, that upon a holder of this Warrant providing
the Issuer with sixty-one (61) days notice (pursuant to Section 13 hereof) (the “Waiver Notice”) that such Holder would like to waive this Section 7(a) with regard to any or all shares of Common Stock issuable upon
exercise of this Warrant (and 

  

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upon consent of the Issuer, which will not be unreasonably withheld), this Section 7(a) will be of no force or effect with regard to all or a portion of
the Warrant referenced in the Waiver Notice; provided, further, that this provision shall be of no further force or effect (i) during the sixty-one (61) days immediately preceding the expiration of the term of this Warrant or
(ii) upon the Holder’s receipt of a Call Notice (as defined in Section 8 hereof). 
 (b) The Holder may not exercise the
Warrant hereunder to the extent such exercise would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.999% of the then issued and outstanding
shares of Common Stock, including shares issuable upon exercise of the Warrant held by the Holder after application of this Section; provided, however, that upon a holder of this Warrant providing the Issuer with a Waiver Notice that
such holder would like to waive this Section 7(b) with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 7(b) shall be of no force or effect with regard to those shares of Warrant Stock
referenced in the Waiver Notice; provided, further, that this provision shall be of no further force or effect (i) during the sixty-one (61) days immediately preceding the expiration of the term of this Warrant or
(ii) upon the Holder’s receipt of a Call Notice. 
 8. [For Series A-1
Warrants, insert the following: Call. Notwithstanding anything herein to the contrary, the Issuer, at its option, may call up to one hundred percent (100%) of this Warrant by providing the Holder of this Warrant written notice
pursuant to Section 13 (the “Call Notice”) if the Per Share Market Value of the Common Stock has been equal to or greater than 200% of the Warrant Price (as may be adjusted for any stock splits or combinations of the Common
Stock) for a period of twenty (20) consecutive Trading Days immediately prior to the date of delivery of the Call Notice; provided that (i) a registration statement under the Securities Act providing for the resale of the Warrant
Stock and the Common Stock issuable upon conversion of the Issuer’s Series A Preferred Stock issued pursuant to the Stock Purchase Agreement is then in effect and (ii) trading in the Common Stock shall not have been suspended by the
Securities and Exchange Commission or any exchange on which it is then listed; provided, further, that a registration statement under the Securities Act providing for the resale of the Warrant Stock and the Common Stock issuable upon
conversion of the Issuer’s Series A Preferred Stock issued pursuant to the Stock Purchase Agreement is in effect from the date of delivery of the Call Notice until the date which is the later of (A) the date the Holder exercises the
Warrant pursuant to the Call Notice and (B) the 10th Trading Day after the Holder receives the Call Notice (the “Early Termination
Date”). The rights and privileges granted pursuant to this Warrant with respect to the shares of Warrant Stock subject to the Call Notice (the “Called Warrant Shares”) shall expire on the Early Termination Date if this
Warrant is not exercised with respect to such Called Warrant Shares prior to such Early Termination Date. In the event this Warrant is not exercised with respect to the Called Warrant Shares, the Issuer shall remit to the Holder of this Warrant
(1) $0.10 per Called Warrant Share and (2) a new Warrant representing the number of shares of Warrant Stock, if any, which shall not have been subject to the Call Notice upon the Holder tendering to the Issuer the applicable Warrant
certificate.] [For Series A-2 Warrants, insert the following: Reserved.] 
 9. Definitions. For the purposes of this
Warrant, the following terms have the following meanings: 
 “Additional Shares of Common Stock” means all
shares of Common Stock (including Common Stock Equivalents) issued or issuable by the Issuer after the Original Issue Date, and all shares of Other Common, if any, issued by the Issuer after the Original Issue Date, other than Permitted Issuances.

  

 -11- 

 “Board” shall mean the Board of Directors of the Issuer. 
 “Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or
interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all
membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type. 
 “Certificate of Incorporation” means the Certificate of Incorporation of the Issuer as in effect on the Original Issue
Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law. 
 “Common Stock” means the Common Stock, par value $0.001 per share, of the Issuer and any other Capital Stock into which
such stock may hereafter be changed. 
 “Common Stock Equivalent” means any Convertible Security or warrant,
option or other right to subscribe for or purchase any Additional Shares of Common Stock or any Convertible Security. 
 “Convertible Securities” means evidences of Indebtedness, shares of Capital Stock or other Securities which are or may be at any time convertible into or exchangeable for Additional Shares of Common Stock. The term
“Convertible Security” means one of the Convertible Securities. 
 “Governmental Authority” means
any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign. 
 “Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the
Holders. 
 “Issuer” means FLO Corporation, a Delaware corporation, and its successors. 
 “Majority Holders” means at any time the Holders of Warrants exercisable for a majority of the shares of Warrant Stock
issuable under the Warrants at the time outstanding. 
 “Original Issue Date” means
            , 2007. 
 “OTC Bulletin
Board” means the over-the-counter electronic bulletin board. 
 “Other Common” means any other
Capital Stock of the Issuer of any class which shall be authorized at any time after the date of this Warrant (other than Common Stock) and which shall have the right to participate in the distribution of earnings and assets of the Issuer without
limitation as to amount. 
  

 -12- 

 “Outstanding Common Stock” means, at any given time, the aggregate
amount of outstanding shares of Common Stock, assuming full exercise, conversion or exchange (as applicable) of all options, warrants and other Securities which are convertible into or exercisable or exchangeable for, and any right to subscribe for,
shares of Common Stock that are outstanding at such time. 
 “Permitted Issuances” means: 
 (1) Shares of Common Stock issued pursuant to (A) a dividend or other distribution on outstanding Common Stock of the Company,
(B) a subdivision of outstanding shares of Common Stock into a greater number of shares of Common Stock, or (C) a combination of outstanding shares of Common Stock into a smaller number of shares of Common Stock; 
 (2) Shares of Common Stock and options therefor, issued to directors, officers, employees or consultants of the Company and/or its
subsidiaries and affiliates pursuant to a stock option plan, stock purchase plan, or other equity incentive plan or agreement, approved by the board of directors of the Company; 
 (3) Capital Stock issued in connection with bona fide acquisition transactions approved by the board of directors of the Company;

 (4) Capital Stock issued to financial institutions or lessors in connection with commercial credit arrangements, equipment
financings or similar transactions approved by the board of directors of the Company; 
 (5) Common Stock issued or issuable
upon conversion of Series A Preferred Stock of the Company or exercise of the Company’s Series A-1 Warrants or Series A-2 Warrants; 
 (6) Common Stock issued pursuant to the Company’s sale of its Common Stock in a bona fide, firm commitment underwriting pursuant to a registration statement on Form S-1 under the Securities Act, with
aggregate proceeds to the Company of not less than $10,000,000 (before deducting any discounts, commissions or other expenses allowed, paid or incurred by the corporation for any underwriting); 
 (7) Common Stock issuable upon commitments, warrants, options, convertible securities or other agreements to issue Common Stock
outstanding as of the date hereof; 
 (8) Capital stock issued in connection with strategic collaborations, development
agreements or licensing transactions approved by the board of directors of the Company; 
 (9) Securities issuable in respect
of any shares, options, warrants, or convertible securities as a result of the application of similar antidilution provisions contained therein; 
  

 -13- 

 (10) The issuance of any securities to any placement agent in connection with the
transactions contemplated by the Stock Purchase Agreement 
 (11) Securities issued by way of dividend or other distribution
on shares included in this definition of Permitted Issuances; and 
 (12) Such additional securities that are designated in
writing as included in this definition of Permitted Issuances by the holders of majority of the Company’s Series A Warrants. 
 “Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.

 “Per Share Market Value” means on any particular date (a) the closing bid price per share of the
Common Stock on such date on any registered national stock exchange on which the Common Stock is then listed, or if there is no such price on such date, then the closing bid price on such exchange or quotation system on the date nearest preceding
such date, or (b) if the Common Stock is not listed then on any registered national stock exchange, the closing bid price for a share of Common Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National
Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or (c) if the Common Stock is not then reported by the OTC Bulletin Board or the National
Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the “Pink Sheet” quotes for the relevant conversion period, as determined in good faith by the holder,
or (d) if the Common Stock is not then publicly traded the fair market value of a share of Common Stock by the Board in good faith. 
 “Purchasers” means the purchasers of Common Stock and Warrants issued by the Issuer pursuant to the Stock Purchase Agreement. 
 “Securities” means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument
convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security. “Security” means one of the Securities. 
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect. 

“Stock Purchase Agreement” means the Stock Purchase Agreement for Series A Preferred Stock placement dated as of
            , 2007, among the Issuer and the investors a party thereto. 
 “Subsidiary” means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the Issuer or by one or more of its Subsidiaries, or by the
Issuer and one or more of its Subsidiaries. 
 “Term” has the meaning specified in Section 1 hereof.

  

 -14- 

 “Trading Day” means (a) a day on which the Common Stock is traded
on any registered national stock exchange, or (b) if the Common Stock is not traded on any registered national stock exchange, a day on which the Common Stock is traded on the OTC Bulletin Board, or (c) if the Common Stock is not traded on
the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices);
provided, however, that in the event that the Common Stock is not listed or quoted as set forth in (a), (b) and (c) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close. 
 “Voting Stock” means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the
members of the Board of Directors (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency. 
 “Warrants” means the Warrants issued and sold pursuant to the Stock Purchase Agreement, including, without limitation,
this Warrant, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c) or 2(d) hereof or of any of such other Warrants. 
 “Warrant Price” initially means U.S. $             ,
as such price may be adjusted from time to time pursuant to the terms of this Warrant, including Section 4 hereto. 
 “Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such
number made or required to be made under the terms hereof. 
 “Warrant Stock” means Common Stock issuable
upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants. 
 10. Other Notices. In case at
any time: 
  

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

  

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

  

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

  

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

  

 -15- 

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

  

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

 then, in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall
close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take
place. Such notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be. Such notice shall be given at least twenty (20) days prior to
the action in question and not less than ten (10) days prior to the record date or the date on which the Issuer’s transfer books are closed in respect thereto. This Warrant does not entitle the Holder to any voting rights or others rights
as a stockholder of the Issuer prior to exercise and payment of the Warrant Price in accordance with Section 2 hereof. 
 11.
Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written
instrument or written instruments executed by the Issuer and the Majority Holders; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which
this Warrant may be exercised or modify any provision of this Section 11 without the consent of the Holder of this Warrant. 
 12.
Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 
 13. Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earlier of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified for notice prior to 5:00 p.m., eastern time, on a Trading
Day, (ii) the Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified for notice later than 5:00 p.m., eastern time, on any date and earlier than 11:59
p.m., eastern time, on such 

  

 -16- 

 
date, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service or (iv) actual receipt by the
party to whom such notice is required to be given. The addresses for such communications shall be with respect to the Holder of this Warrant or of Warrant Stock issued pursuant hereto, addressed to such Holder at its last known address or facsimile
number appearing on the books of the Issuer maintained for such purposes, or with respect to the Issuer, addressed to: 
 FLO
Corporation 
 12413 Willows Road NE, Suite 300 
 Kirkland, WA 98034 
 Attention: President 
 Tel. No.: (425) 278-1100 
 Fax No.: (425) 278-1299 
 Copies of
notices to the Holder shall be sent to: 
 [l] 
 Any party hereto may from time to time change its address for notices by giving at least ten (10) days written
notice of such changed address to the other party hereto. 
 14. Warrant Agent. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant, exchanging this Warrant or replacing this Warrant, in each case pursuant to the terms hereof, or any of the foregoing, and thereafter
any such issuance, exchange or replacement, as the case may be, shall be made at by such agent at the office of such agent. 
 15.
Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will
not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof
or otherwise. 
 16. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding
upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock. 
 17. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the
unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein. 
 18. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant. 
  

 -17- 

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

  

			
	FLO CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:

  

 -18- 

 EXERCISE FORM 
 FLO CORPORATION 
 The undersigned
                    , pursuant to the provisions of the within Warrant, hereby elects to purchase
             shares of Common Stock of FLO Corporation covered by the within Warrant. 
  

									
				
	Dated:                     	 		 	Signature	 	 
					
		 		 		 	Address	 	 
					
		 		 		 		 	 

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

									
				
	Dated:                     	 		 	Signature	 	 
					
		 		 		 	Address	 	 
					
		 		 		 		 	 

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

									
				
	Dated:                     	 		 	Signature	 	 
					
		 		 		 	Address	 	 
					
		 		 		 		 	 

 FOR USE BY THE ISSUER ONLY: 
 This Warrant No. W-             canceled (or transferred or exchanged) this
             day of             ,             ,
shares of Common Stock issued therefor in the name of             , Warrant No. W-             issued for
             shares of Common Stock in the name of             . 
  

 -19-Asset Purchase and Contribution Agreement

 EXHIBIT 10.1 
 ASSET PURCHASE AND CONTRIBUTION AGREEMENT 
 This Asset Purchase and Contribution Agreement, dated as
of April 16, 2007 (this “Agreement”), is by and between Saflink Corporation, a Delaware corporation (“Saflink”) and FLO Corporation, a Delaware corporation (the “Company”) and wholly-owned
subsidiary of Saflink. All capitalized terms have the meanings ascribed to such terms in Article I or as otherwise defined herein. 
 WITNESSETH: 
 WHEREAS, Saflink desires to transfer and contribute to the Company, and the Company desires to acquire from
Saflink, all of the assets of Saflink used in its Registered Traveler business (the “Business”), including the intellectual property rights of Saflink used in the Business. 
 NOW, THEREFORE, in consideration of the foregoing premises, the mutual representations, warranties, covenants and agreements hereinafter set forth, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.01 Definitions. The following terms, as used herein, have the following meanings: 
 (a)
“Acquisition Documents” means this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, and any other document or agreement executed in connection with any of the foregoing, together with any exhibits and schedules
thereto, and in each case as modified, amended, supplemented, restated or renewed from time to time. 
 (b) “Affiliate”
means, with respect to any specified Person, any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person, including, without limitation, any partner, officer, director,
member or employee of such Person and any venture capital fund now or hereafter existing that is controlled by or under common control with one or more general partners or managing members of, or shares the same management company with, such Person.

 (c) “Applicable Law” means, with respect to any Person, any federal, state, local or foreign statute, law, ordinance,
rule, administrative interpretation, regulation, order, writ, injunction, directive, judgment, decree or other requirement of any Governmental Authority applicable to such Person or any of its Affiliates or any of their respective properties,
assets, officers, directors, employees, consultants or agents. 
 (d) “Assignment and Assumption Agreement” means that
certain Assignment and Assumption Agreement, dated as of the Closing Date, to be entered into by the Company and Saflink. 

 (e) “Bill of Sale” means that certain Bill of Sale, dated as of the Closing Date, to be
executed by Saflink in favor of the Company. 
 (f) “Business Day” means each day other than a Saturday, Sunday or other day
on which commercial banks in Seattle, Washington are authorized or required by law to close. 
 (g) “Closing Date” means the
date of the Closing. 
 (h) “Contract” means all contracts, agreements, options, leases, licenses, sales and purchase
orders, commitments and other instruments of any kind, whether written or oral, to which Saflink is a party or is otherwise bound. 
 (i)
“Governmental Authority” means any foreign or domestic federal, territorial, state or local governmental authority, quasi-governmental authority, instrumentality, court, government or self-regulatory organization, commission,
tribunal or organization or any regulatory, administrative or other agency, or any political or other subdivision, department or branch of any of the foregoing. 
 (j) “RT Intellectual Property Rights” means the Intellectual Property Rights related to RT. RT Intellectual Property Rights are part of the Transferred Intellectual Property Rights. 
 (k) “Intellectual Property Rights” means all Intellectual property rights relating to copyrights, patents (including patent
applications) mask works, trade secrets, tradenames and service marks. 
 (l) “Knowledge” means, with respect to any Person,
the actual knowledge of such Person. Without limiting the generality of the foregoing, with respect to any Person that is a corporation, limited liability company, partnership or other business entity, actual knowledge shall be deemed to include the
actual knowledge of all directors, officers, partners and members of any such Person; provided, however, that with respect to Saflink, actual knowledge shall be deemed to be solely the actual knowledge of the individuals identified on
Schedule 1.01(n). 
 (m) “Liability” means, with respect to any Person, any liability or obligation of such
Person of any kind, character or description, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or
unvested, executory, determined, determinable or otherwise and whether or not the same is required to be accrued on the financial statements of such Person. 
 (n) “Lien” means, with respect to any asset, any mortgage, title defect or objection, lien, pledge, charge, security interest, encumbrance or hypothecation in respect of such asset. 
 (o) “Material Adverse Effect” means, with respect to any Person, any circumstance of, change in, or effect on, or group of such
circumstances of, changes in or effects on, the operations, financial condition, earnings, or results of operations, assets or Liabilities of 
  

 2 

 the Person, that results in or would reasonably be expected to result in, a material adverse effect on, or a material
adverse change in, the operations, financial condition, earnings, results of operations, assets or Liabilities of such Person. 
 (p)
“Permitted Liens” means (a) Liens for Taxes or governmental assessments, charges or claims the payment of which is not yet due and (b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
materialmen and other similar Persons and other Liens imposed by Applicable Law incurred in the ordinary course of business which are either for sums not yet delinquent or that are immaterial in amount and being contested in good faith. 

(q) “Person” means an individual, corporation, partnership, association, limited liability company, trust, estate or other similar
business entity or organization, including a Governmental Authority. 
 (r) “Post-Closing Tax Period” means any Tax period
(or portion thereof) ending after the Closing Date. 
 (s) “Pre-Closing Tax Period” means any Tax period (or portion
thereof) ending on or before the close of business on the Closing Date. 
 (t) “Subsidiary” means, with respect to any
Person, (a) any corporation as to which more than fifty percent (50%) of the outstanding stock having ordinary voting rights or power (and excluding stock having voting rights only upon the occurrence of a contingency unless and until such
contingency occurs and such rights may be exercised) is owned or controlled, directly or indirectly, by such Person and/or by one or more of such Person’s direct or indirect Subsidiaries and (b) any partnership, joint venture or other
similar relationship between such Person (or any Subsidiary thereof) and any other Person (whether pursuant to a written agreement or otherwise). 
 (u) “Taxes” means (a) all foreign, federal, state, local and other net income, gross income, gross receipts, sales, use, ad valor, value added, intangible, unitary, capital gain, transfer, franchise, profits, license,
lease, service, service use, withholding, backup withholding, payroll, employment, estimated, excise, severance, stamp, occupation, premium, property, prohibited transactions, windfall or excess profits, customs duties or other taxes, fees,
assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts with respect thereto, (b) any Liability for payment of amounts described in clause (a) whether as a result
of transferee Liability, of being a member of an Affiliated, consolidated, combined or unitary group for any period, or otherwise through operation of law and (c) any Liability for the payment of amounts described in clause (a) or
(b) as a result of any tax sharing, tax indemnity or tax allocation agreement or any other express or implied agreement to indemnify any other person for Taxes; and the term “Tax” means any one of the foregoing Taxes.

 (v) “Tax Returns” means all returns, declarations, reports, statements, information statement, forms or other documents
filed or required to be filed with respect to any Tax. 
  

 3 

 (w) “Transferred Intellectual Property Rights” means the Intellectual Property Rights
assigned to the Company pursuant to this Agreement. 
 ARTICLE II 
 TRANSFER OF ASSETS 
 2.01 Acquired Assets. Upon the terms and conditions
of this Agreement, at the Closing, the Company agrees to acquire from Saflink, and Saflink agrees to contribute, transfer, convey, assign and deliver to the Company, free and clear of all Liens other than Permitted Liens, all of Saflink’s
right, title and interest in, to and under the following assets, as the same shall exist on the Closing Date (collectively, the “Transferred Assets”): 
 (a) all of the fixed and other tangible personal property used in the Business, including the assets described or listed on Schedule 2.01(a), including the RT Intellectual Property Rights; and 

(b) all Contracts used in the Business, including those Contracts listed on Schedule 2.01(b) (the “Assumed Contracts”).

 2.02 Excluded Assets. The Company and Saflink expressly understand and agree that all assets of Saflink, other than those listed
above in Section 2.01 (the “Excluded Assets”), shall be excluded from the Transferred Assets, including but not limited to: 
 (a) all assets, tangible or intangible, real or personal that are not specifically identified in Section 2.01 and listed on the schedules thereto, including all of Saflink’s Intellectual Property Rights; 
 (b) all Contracts that are not Assumed Contracts; 
 (c) all employee benefit plans of Saflink, including accrued vacations and bonuses under Saflink’s benefit plans; 
 (d) all
causes of action, claims, demands, rights and privileges against third parties that relate to any of the Excluded Assets or Excluded Liabilities, including causes of action, claims and rights under all insurance contracts or policies in effect as of
the date of this Agreement insuring the Transferred Assets; and 
 (e) all leasehold or ownership interests in real property or any
improvements thereon. 
 2.03 Assumption of Liabilities. Upon the terms and subject to the conditions of this Agreement, effective at
the time of Closing, the Company agrees to assume all Liabilities: (a) under or arising out of the Assumed Contracts to the extent such Liabilities accrued after the Closing Date, except as provided in Section 2.04(a); (b) that are
described or listed on Schedule 2.03; (c) that are expressly assumed hereunder; (d) with respect to the termination of any Employee by the Company after the Closing Date, including health care contribution coverage with respect
to plans established or maintained by the Company after the Closing Date, and damages or settlements arising out of any claims of wrongful or illegal termination, and for 
  

 4 

 complying with the requirements of all applicable laws with respect to any such termination; and (e) arising out of
the Company’s operations and ownership of the Transferred Assets, but, in the case of this clause (e), only to the extent such Liabilities accrue after the Closing Date (collectively, the “Assumed Liabilities”). All other
Liabilities are referred to herein as “Excluded Liabilities.” 
 2.04 Excluded Liabilities. Except for those
Liabilities expressly assumed by the Company pursuant to Section 2.03 and Section 5.08 (Tax Matters), the Company shall not assume and shall not be liable for, and Saflink shall retain and remain, as between itself and the Company, solely
liable for and obligated to discharge and indemnify and hold the Company harmless for, all of the debts, expenses, contracts, agreements, commitments, obligations and other Liabilities of any nature with respect to the Transferred Assets incurred on
or prior to the Closing Date, whether known or unknown, accrued or not accrued, fixed or contingent, including, without limitation, the following: 
 (a) Breaches of Contracts. Any Liability for breaches by Saflink or any Affiliates of Saflink prior to the Closing Date of any Contract (including any Assumed Contracts) or any Liability for payments or amounts due under any Contract
(including any Assumed Contracts) on or prior to the Closing Date; 
 (b) Taxes. Except as otherwise provided in Section 5.08,
any Liability for Taxes attributable to or imposed upon Saflink or any Affiliates of Saflink, or attributable to or imposed upon the Transferred Assets for any period (or portion thereof) on or prior to the Closing Date; and 
 (c) Accounts Payable. Any accounts payable, whether or not invoiced, owed to suppliers with respect to the Transferred Assets for raw materials or
supplies received by, or on behalf of or services rendered to or on behalf of Saflink, on or prior to the Closing Date. 
 2.05
Consideration. The aggregate consideration payable by the Company to Saflink for the Transferred Assets and the Intellectual Property Agreement shall consist of Six Million Three Hundred Thousand Dollars ($6,300,000) (the “Purchase
Price”). The Purchase Price shall be payable at Closing and shall consist of any combination of (i) cash, (ii) cancellation of Saflink’s outstanding 8% convertible debentures, issued June 12, 2006, and (iii) a
promissory note in the form attached hereto as Exhibit A (the “Note”). 
 2.07 Closing. The closing of the
purchase and sale of the Transferred Assets hereunder (the “Closing”) shall take place at such time and place as the parties may agree. At the Closing: 
 (a) Saflink shall deliver to the Company the Bill of Sale and, subject to Section 5.02, such other endorsements, consents, assignments, instruments of conveyance and transfer documents (including the Assignment
and Assumption Agreement) as the Company may reasonably request to vest in the Company all right, title and interest in, to and under the Transferred Assets free and clear of all Liens; provided, however, that the Company shall permit
Saflink to deliver, commencing at the Closing, certain of the Transferred Assets (as identified in Schedule 2.01(a)) by remote telecommunications or by such other method as Saflink may specify in Schedule 2.01(a).
Simultaneously with the consummation of the transactions contemplated 

  

 5 

 hereby, Saflink, through its officers, agents and employees, will put the Company into full possession and enjoyment of
all tangible Transferred Assets; 
 (b) the Company shall deliver to Saflink the Purchase Price; 
 (c) Saflink and the Company shall execute and deliver the Bill of Sale and the Assignment and Assumption Agreement; and 
 (d) Saflink and the Company shall execute and deliver the Intellectual Property Agreement. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SAFLINK 
 As an inducement to the Company to enter into this Agreement and to consummate the transactions contemplated herein, Saflink represents and warrants to
the Company as of the date hereof, as follows: 
 3.01 Existence and Good Standing. Saflink is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all corporate power and authority required to carry on its business as now conducted and to own and operate the businesses as now owned and operated by it. Saflink is not
required to be qualified to conduct business in any state other than such states where the failure to be so qualified, whether singly or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on it. 
 3.02 Authorization and Enforceability. The execution, delivery and performance by Saflink of this Agreement and the other Acquisition Documents,
and the consummation of the transactions contemplated hereby and thereby, are within Saflink’s powers and have been duly authorized by all necessary corporate action on its part. This Agreement has been and, when executed at the Closing, the
other Acquisition Documents will have been, duly and validly executed by Saflink and, assuming the due execution and delivery of this Agreement and the other Acquisition Documents to which it is a party by the Company, will constitute the legal,
valid and binding agreements of Saflink, enforceable against Saflink in accordance with their respective terms, subject to any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to
creditors’ rights generally or to general principles of equity. 
 3.03 Title to and Sufficiency of Assets. The Transferred
Assets constitute all of the assets, tangible and intangible, of Saflink that are primarily used by or primarily related to the Business. Saflink has good and marketable title to all of its tangible personal property that are Transferred Assets.
None of such personal property or assets that are Transferred Assets is subject to any Lien and other than any restriction contemplated hereby or by the Intellectual Property Agreement. All properties and assets primarily used by or primarily
related to the Business are included as part of the Transferred Assets. 
 3.04 Intellectual Property Rights. 
  

 6 

 (a) Saflink is the sole legal and beneficial owner, free and clear of any Lien, of the entire right,
title and interest in and to, the RT Intellectual Property Rights. The execution, delivery and performance of this Agreement and the Acquisition Agreements and the consummation of the transaction contemplated hereby and thereby will not constitute a
breach of any agreement between Saflink and any third party involving any of Transferred Intellectual Property Rights, will not cause the forfeiture or termination or give rise to a right of forfeiture or termination of any of Transferred
Intellectual Property Rights or impair the rights of the Company to use Transferred Intellectual Property Rights or any portion thereof, as presently used. 
 3.05 Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of Saflink, threatened against or affecting the Transferred Assets before or by
any Governmental Authority (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Acquisition Documents or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving a
claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any
current or former director or officer of the Company, nor any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 
 3.06 Disclaimer of Warranties. EXCEPT WITH RESPECT TO THE WARRANTIES AND REPRESENTATIONS SPECIFICALLY SET FORTH N THIS AGREEMENT (WHICH
MAY BE RELIED UPON BY THE COMPANY), ALL OF THE TRANSFERRED ASSETS ARE BEING SOLD “AS IS, WHERE IS,” AND SAFLINK MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WHETHER OF MERCHANTABILITY, SUITABILITY, NONINFRINGEMENT OR
FITNESS FOR A PARTICULAR PURPOSE, OR QUALITY AS TO THE TRANSFERRED ASSETS OR ANY PART OR ITEM THEREOF, OR AS TO THE CONDITION, DESIGN, OBSOLESCENCE, WORKING ORDER OR WORKMANSHIP THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR
OTHERWISE, AND THE COMPANY HAS RELIED ON ITS OWN EXAMINATION THEREOF IN ELECTING TO ACQUIRE THE TRANSFERRED ASSETS ON THE TERMS AND SUBJECT TO THE CONDITIONS SET FORTH IN THIS AGREEMENT. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF COMPANY 
 As an inducement to Saflink to enter into this Agreement and to consummate the transactions contemplated herein, the Company hereby represents and
warrants to Saflink as of the date hereof as follows: 
  

 7 

 4.01 Authorization and Enforceability. The execution, delivery and performance by the Company of
this Agreement and the other Acquisition Documents, and the consummation of the transactions contemplated hereby and thereby are within the Company’s powers and have been duly authorized by all necessary corporate action on its part. This
Agreement has been and, when executed at the Closing, the other Acquisition Documents to which it is a party will have been, duly and validly executed by the Company, and, assuming the due execution and delivery of this Agreement and the other
Acquisition Documents by Saflink, will constitute the legal, valid and binding agreements of the Company, enforceable against it in accordance with their respective terms, subject to any applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws now or hereafter in effect relating to creditors’ rights generally or to general principles of equity. 
 4.02
Company Status. The Company is a corporation formed solely for the purpose of engaging in the transactions contemplated by this Agreement and the Acquisition Documents, has engaged in no other business activities and has conducted its
operations only as contemplated hereby. 
 ARTICLE V 
 COVENANTS 
 5.01 Assumed Contract Consents. Saflink shall use commercially reasonable efforts
to obtain consents from the relevant parties to the Assumed Contracts as required thereunder (the “Assumed Contract Consents”) in order to protect the material benefits of such Contracts for the benefit of the Company, it being
understood by the Company that, in connection therewith, Saflink shall obtain the release of Saflink from the Assumed Liabilities under the Assumed Contracts. Notwithstanding the foregoing, it is expressly understood and agreed that the Closing is
not conditioned upon obtaining the Assumed Contract Consents or any other consents of any nature whatsoever. 
 5.02 Cooperation in Third
Party Litigation. After the Closing, the Company shall, at Saflink’s cost (which cost shall be approved by Saflink), provide such cooperation as Saflink or its counsel may reasonably request in connection with any proceedings relating to
the Transferred Assets or the Intellectual Property Rights which are hereafter pending or threatened and to which Saflink is a party; and any proceedings for which the Company is entitled to indemnification from Saflink under Article VI hereof.
Such cooperation shall include, but not be limited to: (a) making available at the reasonable request of Saflink or its counsel, and permitting Saflink and its counsel to make and retain copies of, any and all documents in the possession of or
otherwise available to the Company; (b) making available upon the reasonable request of Saflink or its counsel employees and other persons within the control of or available to the Company to consult with and assist Saflink and its counsel
regarding any such proceedings and to prepare for and testify truthfully in connection with any such proceedings, including depositions, trials and arbitration proceedings; and (c) making available at the reasonable request of Saflink or its
counsel such other resources as may be within the control of, or available to, the Company. Notwithstanding the foregoing, the Company need not cooperate with Saflink in the event the Company’s Board of Directors determines, based on the
reasonable advice of the Company’s counsel, that the Company’s interests are adverse to the interests of Saflink in any such proceeding, pending or threatened. 
  

 8 

 5.03 Further Assurances. Each party hereto agrees to execute and deliver such other documents,
certificates, agreements and other writings and to take such other commercially reasonable actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement and the
other Acquisition Documents (except to the extent otherwise provided in such Acquisition Document(s)). Notwithstanding the foregoing, no party hereto shall have any obligation to expend any funds or to incur any other obligation in connection with
the consummation of the transactions contemplated hereby (including, by way of illustration only, any payment in connection with obtaining any contractual consents (including without limitation the Assumed Contract Consents), or Company Approvals)
other than normal out-of-pocket expenses (such as fees of counsel, accountants and auditors) reasonably necessary to consummate such transactions. Notwithstanding the foregoing, the Company shall be solely responsible for obtaining any third party
licenses necessary for the operation of its business. 
 5.04 Public Announcements. The parties agree they shall make no public
statement regarding this Agreement or the other Acquisition Documents or the transactions contemplated hereby or thereby, and that neither party shall issue any press release with respect to any transaction contemplated by this Agreement or any of
the other Acquisition Documents, except as permitted by this Agreement or as mutually agreed by both parties in writing or as may be required under applicable law, rule or regulation. 
 5.05 Tax Matters. 
 (a)
Cooperation. From and after the Closing Date, the parties hereto agree to furnish or cause to be furnished to one another, upon request, as promptly as practicable, such information and assistance relating to the Transferred Assets as is
reasonably necessary for the filing of all Tax Returns, and making of any election related to Taxes, the preparation for any audit by any taxing authority, and the prosecution or defense of any claim or proceeding relating to any Tax Return. The
parties hereto shall cooperate with each other in the conduct of any audit or other proceeding related to Taxes involving the Transferred Assets and each shall execute and deliver such powers of attorney and other documents as are necessary to carry
out the intent of this Section 5.05(a). 
 (b) Allocation of Property Taxes. All personal property taxes and similar
ad valorem obligations levied with respect to the Transferred Assets for a taxable period that includes (but does not end on) the Closing Date shall be apportioned between Saflink and the Company as of the Closing Date based on the
number of days of such taxable period included in the Pre-Closing Tax Period and the number of days of such taxable period included in the Post-Closing Tax Period. Saflink shall be liable for the proportionate amount of such Taxes that is
attributable to the Pre-Closing Tax Period, and the Company shall be liable for the proportionate amount of such Taxes that is attributable to the Post-Closing Tax Period. Within a reasonable period after the Closing (not to exceed ninety (90)
days), Saflink and the Company shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this Section 5.05(b), together with such supporting evidence as is reasonably necessary to calculate
the proration amount. The proration amount shall be paid by the party owing it to the other within ten (10) days after delivery of such statement. Thereafter, Saflink shall notify the Company upon receipt of any bill for personal property taxes
relating to the Transferred Assets, 
  

 9 

 part or all of which are attributable to the Post-Closing Tax Period, and shall promptly deliver such bill to the Company
who shall pay the same to the appropriate taxing authority, provided that if such bill covers any part of the Pre-Closing Tax Period, Saflink shall also remit prior to the due date of the tax bill to the Company payment for the proportionate
amount of such bill that is attributable to the Pre-Closing Tax Period. In the event that either Saflink or the Company shall thereafter make a payment for which it is entitled to reimbursement under this Section 5.05(b), the other party shall
make such reimbursement promptly, but in no event later than thirty (30) days after the presentation of a statement setting forth the amount of reimbursement to which the presenting party is entitled along with such supporting evidence as is
reasonably necessary to calculate the amount of reimbursement. Any payment required under this Section 5.05(b) and not made when due shall bear interest at the rate of ten percent (10%) per annum. 
 (c) Other Taxes. All transfer, documentary, sales, use, stamp, registration and other such taxes, and all conveyance fees, recording charges and
other fees and charges (including any penalties and interest) incurred in connection with the consummation of the transactions contemplated by this Agreement shall be paid by the Company when due, and the Company will, at the Company’s own
expense, file all necessary tax returns and other documentation with respect to all such taxes, fees and charges, and, if required by applicable law, the parties will, and will cause their affiliates to, join in the execution of any such tax returns
and other documentation and the Company shall indemnify, defend and hold Saflink harmless from and against all Taxes for which Saflink is liable pursuant to this Section 5.05(c). 
 5.06 Allocation of Consideration. For purposes of computing deferred intercompany gain and asset basis upon any recognition of gain, and for
transfer tax purposes (to the extent the transfer is not exempt under WAC 458-20-106 (Rule 106)1), Saflink shall prepare documentation related to allocation of gain amounts (including an allocation of capitalized costs) among the Transferred Assets
in accordance with Code and Treasury Regulations thereunder (and any similar provision of state, local or foreign law, as appropriate), which allocations shall be binding upon the Company. Saflink and the Company and their affiliates shall report,
act, and file tax returns in all respects and for all purposes consistent with such allocation prepared by Saflink. Neither Saflink nor the Company shall take any position (whether in audits, tax returns, or otherwise) that is inconsistent with such
allocation unless required to do so by applicable law. 
 5.07 Confidentiality. The parties understand and agree that this Agreement
and the other Acquisition Documents are confidential. Further, the parties acknowledge that the terms and conditions of this Agreement and the other Acquisition Documents and all exhibits, restatements and amendments hereto and thereto, including
their existence, shall be considered confidential information and shall not be disclosed by the parties to any third party except in accordance with the provisions of Section 5.04. 
 5.08 Use of Marks. Notwithstanding any other provision herein, no interest in or right to use the name “Saflink” or any derivation
thereof or any other trademarks, service marks or trade names of Saflink (the “Retained Marks”) is being transferred to the Company pursuant to the transactions contemplated by this Agreement, the Intellectual Property Agreement or
any other Acquisition Document. With the exception of materials, products, and components acquired by the Company from Saflink that already bear Retained Marks at the time such 
  

 10 

 materials, products, and components are acquired (and subject to any applicable confidentiality requirements), the
Company agrees not to use any materials bearing Retained Marks or sell, transfer or ship any inventory or products bearing Retained Marks unless requested to do so by Saflink or unless required under Assumed Contracts with customers, and then only
until such time as the Company shall have qualified the use of its logo, trademark or trade names with any such customer. Notwithstanding the foregoing, unless Saflink otherwise consents in writing, all materials bearing any Retained Mark shall be
destroyed by the Company no later than 90 days after the Closing Date. 
 5.09 Major Transactions. If, prior to May 31,
2007, the board of directors of Saflink in good faith formally determines that the Transferred Assets represented substantially all of the assets of Saflink as of Closing, the Company shall not, and the Company shall cause each of its subsidiaries
not to, take (or agree to take) action with respect to any of the following matters (the “Major Transactions”) without Saflink having first obtained the approval of such action by holders of a majority of Saflink’s outstanding
common stock: 
 (a) any merger or consolidation of the Company or any subsidiary of the Company, other than (i) any merger between the
Company and Saflink, or (ii) any merger or consolidation of the Company or any subsidiary of the Company and any direct or indirect wholly-owned subsidiary of the Company; 
 (b) any sale, assignment, encumbrance, gift, pledge, hypothecation or other disposition of all or substantially all of the assets of the Company and its
subsidiaries, taken as a whole; or 
 (c) any issuance or sale of shares of capital stock of the Company or any of its subsidiaries (or
securities convertible into or exercisable or exchangeable for shares of capital stock of the Company or any of its subsidiaries or rights to purchase or acquire such shares or such securities), in any single transaction or in any series of
transactions, equal to twenty percent (20%) or more of the Company’s capital stock (or twenty percent (20%) or more of the voting power of the Company’s outstanding capital stock), other than (i) the issuance of shares of
capital stock of the Company or rights, options or warrants to acquire shares of capital stock of the Company under employee stock option or stock purchase plans, (ii) any such issuance or sale by a subsidiary of the Company to the Company or
to Saflink or to a wholly-owned subsidiary of the Company, and (iii) the issuance of any shares of common stock of the Company upon the exercise or conversion of any option, warrant or other convertible security (the issuance of which was not
prohibited by this subsection (c)). 
 5.10 Saflink Stockholders’ Meeting. If the board of directors of Saflink shall have
formally determined that the Transferred Assets represented substantially all of the assets of Saflink as of Closing by May 31, 2007, Saflink shall take all necessary action under all Applicable Law to call, give notice of and hold a meeting of
the holders of Saflink’s common stock to vote on a proposal to approve the Major Transactions (the “Saflink Stockholders’ Meeting”) as promptly as practicable, and shall submit such proposal to such holders at the Saflink
Stockholders’ Meeting. Saflink (in consultation with the Company) shall set a record date for persons entitled to notice of, and to vote at, the Saflink Stockholders’ Meeting. The Saflink Stockholders’ Meeting shall be held (on a date
selected by Saflink in consultation with 
  

 11 

 the Company) as promptly as practicable after the proxy statement for such meeting (the “Proxy
Statement”) has been cleared by the Securities and Exchange Commission. Saflink shall ensure that all proxies solicited in connection with the Saflink Stockholders’ Meeting are solicited in compliance with all Applicable Law.
Notwithstanding anything to the contrary in this Section 5.10, after consultation with the Company, Saflink may adjourn or postpone the Saflink Stockholders’ Meeting to the extent necessary to ensure that any required supplement or
amendment to the Proxy Statement is provided to Saflink’s stockholders or, if as of the time for which the Saflink Stockholders’ Meeting is originally scheduled there are insufficient shares of Saflink’s common stock represented
(either in person or by proxy) to constitute a quorum necessary to conduct the business to be conducted at the Saflink Stockholders’ Meeting. 
 ARTICLE VI 
 INDEMNIFICATION 
 6.01 General Survival. The parties agree that, regardless of any investigation made by the parties, the representations, warranties, covenants and agreements of the parties contained in this Agreement shall
survive the execution and delivery of this Agreement for a period beginning on the date hereof and ending at 5:00 p.m., Washington time, on the first anniversary of the Closing Date. 
 6.02 Indemnification. 
 (a)
Indemnification Provisions for the Company. Subject to the provisions of Section 6.01, from and after the Closing Date, the Company and its affiliates, officers, directors, stockholders, representatives and agents (collectively,
the “Company Indemnitees”) shall be indemnified and held harmless by Saflink from and against and in respect of any and all Losses (as defined below) incurred by any Company Indemnitee resulting from: 
 (i) any inaccuracy in or breach of any of Saflink’s representations, warranties, covenants or agreements (to the extent of
performance or non-performance prior to the Closing Date) contained in this Agreement; and 
 (ii) the Excluded Liabilities
and any Liabilities arising from the conduct of Saflink prior to the Closing. 
 (b) Indemnification Provisions for Saflink. Subject
to the provisions of Section 6.01, from and after the Closing Date, Saflink and its affiliates, officers, directors, stockholders, representatives and agents (collectively, the “Saflink Indemnitees”) shall be indemnified and
held harmless by the Company from and against and in respect of any and all Losses (as defined below) incurred by any Saflink Indemnitee, resulting from: 
 (i) any inaccuracy in or breach of any of the Company’s representations, warranties, covenants or agreements (to the extent of performance or non-performance prior to the Closing Date) contained in this
Agreement; and 
 (ii) the Assumed Liabilities and any Liabilities arising from the conduct of the Company subsequent to the
Closing. 
  

 12 

 For purposes of this Agreement, the term “Indemnitee” shall mean either a Company Indemnitee or an
Saflink Indemnitee, as the case may be, and the term “Indemnitor” shall mean either the Company or Saflink, as the case may be. 
 (c) For purposes of this Agreement, the term, “Losses” means any and all deficiencies, judgments, settlements, demands, claims, suits, actions or causes of action, assessments, liabilities, losses, damages (excluding
indirect, incidental or consequential damages), interest, fines, penalties, costs and expenses (including reasonable legal, accounting and other costs and expenses) incurred in connection with investigating, defending, settling or satisfying any and
all demands, claims, actions, causes of action, suits, proceedings, assessments, judgments or appeals, and in seeking indemnification therefor. Notwithstanding the above, Losses shall not include (i) expenses incurred in connection with
investigations unless a claim is made by a third party against the Indemnitee or (ii) Losses arising from matters identified in the schedules or exhibits hereto. 
 (d) The amount of any Losses otherwise recoverable under this Section 6.02 shall be reduced by any amounts which the Indemnitees are entitled to receive under insurance policies (net of any costs incurred in
connection with the collection thereof). 
 6.03 Manner of Indemnification. 
 (a) Each indemnification claim shall be made only in accordance with this Article VI. 
 (b) If an Indemnitee wishes to make a claim for Losses under Article VI of this Agreement, Indemnitee shall deliver a written notice (a
“Notice of Claim”) to the applicable Indemnitor promptly after becoming aware of the facts giving rise to such claim. The Notice of Claim shall (i) specify in reasonable detail the nature of the claim being made, and
(ii) state the aggregate dollar amount of such claim. 
 (c) Following receipt by Indemnitor of a Notice of Claim, the parties shall
promptly meet to agree on the rights of the respective parties with respect to each of such claims. If the parties should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties and amounts agreed upon shall
be promptly paid. 
 6.04 Third-Party Claims. If the Company becomes aware of a claim of a third party (including for all purposes of
this Section 6.04, any Governmental Authority) that the Company believes, in good faith, may result in a claim against Saflink, the Company shall notify Saflink of such third party claim as promptly as practicable. Saflink shall have the right
to assume and conduct the defense of such claim. Saflink shall conduct such defense in a commercially reasonable manner, and shall be authorized to settle any such claim, with the prior consent of the Company (which consent shall not be unreasonably
withheld); provided, however, that: (a) Saflink shall not be authorized to encumber any assets of the Company or agree to any restriction that would apply to the Company or the conduct of the Company’s business;
(b) Saflink shall have paid or caused to be paid any amounts arising out of such settlement; and (c) a condition to any such settlement shall be a complete release of the Company with respect to such third party claim. The Company shall be
entitled to participate in (but not control) the 
  

 13 

 defense of any third party claim, with its own counsel and at its own expense. The Company shall cooperate fully with
Saflink in the defense of any third party claim. If Saflink does not assume the defense of any third party claim in accordance with the provisions hereof, the Company may defend such third party claim in a commercially reasonable manner and may
settle such third party claim after giving written notice of the terms thereof to Saflink. 
 6.05 Exclusive Remedy. Notwithstanding
any other provision of this Agreement to the contrary, the provisions of this Article VI shall be the sole and exclusive remedy of the Indemnitees from and after the Closing Date for any deficiencies, judgments, settlements, demands, claims,
suits, actions or causes of action, assessments, Liabilities, losses, damages, interest, fines, penalties, costs and expenses arising under this Agreement or relating to the transactions contemplated by this Agreement, including claims of breach of
any representation, warranty or covenant in this Agreement; provided, however, that the foregoing clause of this sentence shall not be deemed a waiver by any party of any right to specific performance or injunctive relief. 

ARTICLE VII 
 MISCELLANEOUS

 7.01 Amendments; Waivers. 
 (a) Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by all parties hereto, or in the case of a waiver, by the party against whom the
waiver is to be effective. 
 (b) No waiver by a party of any default, misrepresentation or breach of a warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach of a warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent occurrence. No
failure or delay by a party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided under Applicable Law. 
 7.02 Expenses. All costs and expenses incurred in connection with this Agreement and the other Acquisition Documents and in closing and carrying out the transactions contemplated hereby and thereby shall be
paid by the party incurring such cost or expense. 
 7.03 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors, heirs, personal representatives and permitted assigns. No party hereto may transfer or assign either this Agreement or any of its rights, interests or obligations hereunder, whether
directly or indirectly, by operation of law, merger or otherwise, without the prior written approval of each other party. No such transfer or assignment shall relieve the transferring or assigning party of its obligations hereunder if such
transferee or assignee does not perform such obligations. 
  

 14 

 7.04 Governing Law. This Agreement shall be construed in accordance with and this Agreement and
any disputes or controversies related hereto shall be governed by the internal laws (without reference to choice or conflict of laws) of the State of Delaware. 
 7.05 Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts and the signatures delivered by telecopy, each of which shall be an original, with the same effect as if the
signatures were upon the same instrument and delivered in person. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other parties hereto. 
 7.06 Entire Agreement. This Agreement (including the schedules and exhibits referred to herein, which are hereby incorporated by reference) and
the other Acquisition Documents constitute the entire agreement between and among the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements, understandings and negotiations, both written
and oral, between and among the parties with respect to the subject matter of this Agreement. Neither this Agreement nor any provision hereof is intended to confer upon any Person other than the parties hereto any rights or remedies hereunder.

 7.07 Severability. If any provision of this Agreement, or the application thereof to any Person, place or circumstance, shall be
held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and such provisions as applied to other Persons, places and circumstances shall remain in full force and effect only if, after excluding
the portion deemed to be unenforceable, the remaining terms shall provide for the consummation of the transactions contemplated hereby in substantially the same manner as originally set forth at the later of the date this Agreement was executed or
last amended. 
 7.08 Third Party Beneficiaries. No provision of this Agreement shall create any third party beneficiary rights in any
Person, including any employee or former employee of Saflink or any Affiliate thereof (including any beneficiary or dependent thereof). 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

			
	SAFLINK:
	
	 SAFLINK CORPORATION,
 a Delaware corporation

		
	By:	 	 /s/ Jeffrey T. Dick

	Name:	 	Jeffrey T. Dick
	Title:	 	CFO
	
	COMPANY:
	
	 FLO CORPORATION,
 a Delaware
corporation

		
	By:	 	 /s/ Glenn L. Argenbright

	Name:	 	Glenn L. Argenbright
	Title:	 	President

  

 16

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