X0202 3 2004-08-06 0 0000847555 SAFLINK CORP SFLK 0000904775 KIPHART RICHARD P C/O SAFLINK CORPORATION 777 - 108TH AVENUE NE, SUITE 2100 BELLEVUE WA 98004 1 0 1 0 Common Stock 7342394 D Secured Convertible Promissory Note due 12/31/2005 Common Stock 866589 D Issued in exchange for 12,237,324 shares of common stock of SSP Solutions, Inc. in connection with the merger of Spartan Acquisition Corporation, a wholly-owned subsidiary of SAFLINK Corporation, with and into SSP Solutions (the "Merger"). Immediately exercisable. The reporting person is holder of a secured convertible promissory note (the "Note") issued November 19, 2003, in the principal balance of $1,250,000, with a maturity date of December 31, 2005. The Note was assumed by SAFLINK Corporation in connection with the Merger. The reporting person may, in his sole discretion, demand repayment of any portion of the outstanding principal (and any interest due) on the Note in such number of shares of common stock of SAFLINK Corporation based upon a fixed conversion price of $1.67 per share. 866,589 shares of common stock of SAFLINK Corporation are issuable upon conversion of the Note if converted in full at the maturity date, with 748,503 shares of common stock issuable upon conversion of outstanding principal and 118,086 shares of common stock issuable upon conversion of interest through the maturity date. Richard P. Kiphart 2004-08-16