Document:

Amendments of Secured Promissory Note

 Exhibit 10.3 
 IDENTIPHI, INC. 
 AMENDMENT OF SECURED PROMISSORY NOTE 
 THIS AMENDMENT (this “Amendment”) of Secured Promissory Note, dated July 21, 2008, is entered into by and between
IdentiPHI, Inc., a Delaware corporation (the “Maker”), and Key Ovation, LLC, a Texas limited liability company (the “Holder”). Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to them in the Note (as defined below). 
 WHEREAS, the Maker issued that certain Secured Promissory Note, dated
March 12, 2008, payable to the order of Zaychan Pty Limited, a corporation registered under the laws of Australia numbered A.C.N. 080 485 338 (the “Original Holder”), in the amount of up to One Million Seven Hundred
Fifty Thousand Australian Dollars (AUD $1,750,000.00) (the “Original Note”); and 
 WHEREAS, the Maker, the
Original Holder and the Holder subsequently entered into that certain Renewal, Modification and Extension of Promissory Note, dated June 30, 2008 (“First Modification”), amending the Original Note to provide, among other
things, that the aggregate principal amount due under the Note is One Million Seven Hundred Three Thousand Six Hundred Thirty-Three and 93/100 Dollars (USD $1,703,633.93) (the “Principal Amount”), assigning the Original
Holder’s interest in the Original Note to the Holder, and extending the maturity date to the earlier of a) July 31, 2008 and b) immediately upon the closing of a financing transaction in which the Maker issues and sells shares of equity
securities or securities convertible into equity securities with gross proceeds to the Maker of USD $5,000,000 or more (the “Maturity Date”). The Original Note, as modified by the First Modification, shall be called the
“Amended Note” hereafter; and 
 WHEREAS, the Company and the Holder desire to extend the Maturity Date of the
Amended Note to the earlier of a) August 31, 2008 and b) immediately upon the closing of a financing transaction in which the Maker issues and sells shares of equity securities or securities convertible into equity securities with gross
proceeds to the Maker of USD $5,000,000 or more (the “New Maturity Date”); and 
 WHEREAS, the Company the
Holder desire to increase the Principal Amount by up to Four Hundred Thousand and 00/100 Dollars (USD $400,000.00), for an aggregate principal amount of up to a maximum of Two Million One Hundred Three Thousand Six Hundred Thirty-Three and 93/100
Dollars (USD $2,103,633.93) in legal and lawful money of the United States of America (the “New Principal Amount”); and 
 WHEREAS, Section 10 of the Note provides that any term of the Note may by amended, waived, discharged or terminated by a written instrument signed by the Maker and the Holder (as the assignee of the Original Holder); and 

 WHEREAS, the Maker and the Holder desire to amend the Maturity Date and the Principal Amount of the Note to provide for the New
Maturity Date and the New Principal Amount. 
  

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 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 1. The phrase in Section 2(a)
of the Note “June 29, 2008 (the “Maturity Date”),” is hereby deleted and replaced in its entirety with the following, with the remainder of Section 2 of the Note remaining the same: “August 31, 2008 (the
“Maturity Date”).” 
 2. The Principal Amount of the Note is hereby amended and consists of USD
$1,703,633.93, plus such additional principal amount having been drawn down in writing, in one or more trances by the Maker in its sole discretion (pursuant to a Draw Down Request, in the form attached to the Note as Schedule A), up to a
maximum aggregate principal amount of USD $2,103,633.93. 
 3. The principal amount and maturity date described in the First
Modification are hereby amended consistent with the terms of this Amendment. 
 4. All other terms and conditions of the Note
and the First Modification shall remain unchanged and, except as amended hereinunder, shall continue in full force and effect. 
 5. This Amendment may be executed in any number of counterparts and by facsimile, each of which shall be an original, but all of which together shall be deemed to constitute one instrument. 
 [Signature Pages Follow] 
  

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 IDENTIPHI, INC. 
 AMENDMENT OF SECURED PROMISSORY NOTE 
 SIGNATURE PAGE 
 Executed as of July 21, 2008. 
  

			
	MAKER:
	
	IDENTIPHI, INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	ACKNOWLEDGED:
	
	HOLDER:
	
	KEY OVATION, LLC
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

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 IDENTIPHI, INC. 
 SECOND AMENDMENT OF SECURED PROMISSORY NOTE 
 THIS SECOND AMENDMENT (this “Second
Amendment”) of Secured Promissory Note, dated August 12, 2008, is entered into by and between IdentiPHI, Inc., a Delaware corporation (the “Company”), and Key Ovation, LLC, a Texas limited liability company
(the “Holder”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Note (as defined below). 
 WHEREAS, the Company issued that certain Secured Promissory Note, dated March 12, 2008, payable to the order of Zaychan Pty Limited, a corporation registered under the laws of Australia numbered A.C.N. 080
485 338 (the “Original Holder”), in the amount of up to One Million Seven Hundred Fifty Thousand Australian Dollars (AUD $1,750,000.00) (the “Original Note”); and 
 WHEREAS, the Company, the Original Holder and the Holder subsequently entered into that certain Renewal, Modification and Extension of Promissory
Note, dated June 30, 2008 (the “Modification”), amending the Original Note to provide, among other things, that the aggregate principal amount due under the Note is One Million Seven Hundred Three Thousand Six Hundred
Thirty-Three and 93/100 Dollars (USD $1,703,633.93), assigning the Original Holder’s interest in the Original Note to the Holder, and extending the maturity date to the earlier of i) July 31, 2008, and ii) immediately upon the closing of a
financing transaction in which the Company issues and sells shares of equity securities or securities convertible into equity securities with gross proceeds to the Company of USD $5,000,000 or more; and 
 WHEREAS, the Company and the Holder subsequently entered into that certain Amendment of Secured Promissory Note, dated July 21, 2008 (the
“First Amendment”), amending the Original Note and the Modification to provide, among other things, for the extension of the maturity date of the Note to the earlier of i) August 31, 2008, and ii) immediately upon the
closing of a financing transaction in which the Company issues and sells shares of equity securities or securities convertible into equity securities with gross proceeds to the Company of USD $5,000,000 or more (the “Prior Maturity
Date”). The Original Note, as modified by the Modification and the First Amendment, shall be called the “Amended Note” hereafter; and 
 WHEREAS, the Company and the Holder desire to extend the Prior Maturity Date of the Amended Note to the earlier of i) October 31, 2008, and ii) immediately upon the closing of a financing transaction in
which the Company issues and sells shares of equity securities or securities convertible into equity securities with gross proceeds to the Company of USD $5,000,000 or more (the “New Maturity Date”); and 
 WHEREAS, Section 10 of the Amended Note provides that any term of the Amended Note may by amended, waived, discharged or terminated by a
written instrument signed by the Company and the Holder (as the assignee of the Original Holder). 
  

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 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 6. The phrase in Section 2(a)
of the Amended Note “August 31, 2008 (the “Maturity Date”),” is hereby deleted and replaced in its entirety with the following, with the remainder of Section 2 of the Amended Note remaining the same:
“October 31, 2008 (the “Maturity Date”).” 
 7. The maturity date described in the
Modification is hereby amended consistent with the terms of this Second Amendment. 
 8. All other terms and conditions of the
Amended Note and the Modification shall remain unchanged and, except as amended hereinunder, shall continue in full force and effect. 
 9. This Second Amendment may be executed in any number of counterparts and by facsimile, each of which shall be an original, but all of which together shall be deemed to constitute one instrument. 
 [Signature Page Follow] 
  

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 IDENTIPHI, INC. 
 SECOND AMENDMENT OF SECURED PROMISSORY NOTE 
 SIGNATURE PAGE 
 Executed as of August 12, 2008. 
  

			
	COMPANY:
	
	IDENTIPHI, INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	HOLDER:
	
	KEY OVATION, LLC
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 6Separation Agreement and Release of All Claims

 Exhibit 10.4 
 SEPARATION AGREEMENT 
 AND GENERAL RELEASE OF ALL CLAIMS 
 This Separation Agreement and General Release of All Claims (“Separation Agreement”) is made by and between IdentiPHI, Inc.
(“Company”) and Steven M. Oyer (“Employee”) with respect to the following facts: 
 A. Employee is currently employed by
Company as its Chief Executive Officer pursuant to the terms of an employment agreement dated February 12, 2008 (the “Employment Agreement”). 
 B. Employee has decided to resign from his employment as an officer, director and employee with Company effective as of July 21, 2008 (the “Separation Date”). Company wishes to reach an amicable
separation with Employee and assist Employee’s transition to other employment. Employee’s last day of employment with Company is the Separation Date. 
 C. The parties desire to settle all claims and issues that have, or could have been raised, in relation to Employee’s employment with Company and arising out of or in any way related to the acts, transactions or
occurrences between Employee and Company to date, including, but not limited to, Employee’s employment with Company or the termination of that employment, on the terms set forth below. 
 THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it is agreed by and between the undersigned as follows:

 1. Subject to the execution of this Separation Agreement, Company will provide Employee with certain benefits that he would not otherwise
be entitled to receive as a result of his resignation from employment and to resolve any claims that Employee has or may have against Company. 
 2. Subject to Employee’s compliance with the terms of this Separation Agreement, Company shall provide Employee with the following benefits, subject to the requirements set forth below. 
 (a) A lump sum payment of $100,000, to Capital Placement Holdings, Inc. Such payment shall be made on the eighth day after the Separation
Date provided that Employee has not revoked this Separation Agreement (by written notice to Asa Hutchinson, Chairman of the Special Committee of Company’s Board of Directors) prior to that date. Employee shall be responsible for any applicable
taxes on such payment. 
 (b) A stock option award under Company’s 2007 Equity Incentive Plan to purchase 2,547,905
shares of Company’s common stock which shall fully vest and become exercisable on the on the eighth day after the Separation Date provided that Employee has not revoked this Separation Agreement (by written notice to Asa Hutchinson, Chairman of
the Special Committee of Company’s Board of Directors) prior to that date. The stock option award shall have an exercise price per share equal to the last sale price of a share of Company’s common stock as reported on the OTC Bulletin
Board on the date prior to the date of grant and shall expire ten (10) years after the grant date. Company shall grant the stock option award at any time prior to the Separation Date. 
 (c) A lump sum payment of $75,000, less applicable withholding, to Capital Placement Holdings, Inc., if Company completes a financing
through the issuance of its equity or debt securities for cash prior to December 31, 2008. Such payment shall not be conditioned upon any minimum amount being raised in the financing, however such payment shall be conditioned upon one or more
investors other than Chris Linegar, Key Ovation, LLC, or any of their respective affiliates or associates, participating in such financing (the “Triggering Financing”). Such payment shall be made within five (5) calendar days from
completion of the Triggering Financing. Employee shall be responsible for any applicable taxes on such payment. 
  

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 3. Employee has been granted an aggregate of 3,567,649 shares of restricted stock (the “Restricted
Stock Award”), 3,396,127 of which remain unvested as of the Separation Date (the “Unvested Shares”). Employee and Company agree that Employee’s resignation from employment with Company shall constitute Employee’s voluntarily
ceasing to provide Services to the Participating Company Group without Good Reason (as such terms are defined in the Restricted Stock Purchase agreement) as of the Separation Date for purposes of the Restricted Stock Award whether or not Employee
continues as a member of Company’s Board of Directors or in any other capacity. Accordingly, as set forth in the terms of the Notice of Grant of Stock Purchase Right, the Restricted Stock Purchase Agreement and Company’s 2007 Equity
Incentive Plan pursuant to which the Restricted Stock Award was granted to Employee, effective on the Separation Date the Unvested Shares shall cease to vest and Company shall have the right to repurchase the Unvested Shares under the terms and
subject to the conditions set forth in the Restricted Stock Purchase Agreement. Notwithstanding any provision to the contrary in any prior agreement between Company and Employee with respect to the Restricted Stock Award, including but not limited
to the Restricted Stock Purchase Agreement, the aggregate purchase price for the Unvested Shares being repurchased by Company shall be $0.01. This Separation Agreement shall constitute written notice to Employee of Company’s exercise of its
repurchase right pursuant to Section 5.3 of the Restricted Stock Purchase Agreement with respect to all of the Unvested Shares. 
 4.
Except with respect to the obligations created by this Separation Agreement, Employee and his successors release Company, its parents, subsidiaries and affiliated entities, and each of their respective shareholders, investors, directors, officers,
employees, agents, attorneys, insurers, legal successors and assigns (the “Released Parties”) of and from any and all claims, actions and causes of action, whether now known or unknown, which Employee now has, or at any other time had, or
shall or may have against those released parties based upon or arising out of any matter, cause, fact, thing, act or omission whatsoever occurring or existing at any time up to and including the date on which Employee signs this Separation
Agreement, including, but not limited to, any claims that are based upon or arise out of Employee’s employment with Company or the termination of that employment, and any claims of breach of contract, wrongful termination, retaliation, fraud,
defamation, infliction of emotional distress or national origin, race, age, sex, sexual orientation, disability or other discrimination or harassment under the Civil Rights Act of 1964, the Age Discrimination In Employment Act of 1967, the Americans
with Disabilities Act or any other applicable law. However, the release contained in this paragraph 4 (the “Release of Claims”) is not intended to bar any claims that, by statute, may not be waived, such as claims for workers’
compensation benefits, unemployment insurance benefits, and any challenge to the validity of the Release of Claims under the Age Discrimination in Employment Act of 1967, as amended. The Release of Claims is also not intended to bar any claims to
indemnification under applicable statutes, Company’s certificate of incorporation or bylaws, or an indemnification agreement between Company and Employee. Employee acknowledges that Employee may discover facts or law different from, or in
addition to, the facts or law that Employee knows or believes to be true with respect to the claims released in this Separation Agreement and agrees, nonetheless, that this Separation Agreement and the release contained in it shall be and remain
effective in all respects notwithstanding such different or additional facts or the discovery of them. Employee declares and represents that Employee intends this Separation Agreement to be complete and not subject to any claim of mistake, and that
the release herein expresses a full and complete release and Employee intends the release herein to be final and complete. Employee executes this release with the full knowledge that this release covers all possible claims against the Released
Parties, to the fullest extent permitted by law. Employee expressly waives Employee’s right to recovery of any type, including damages or reinstatement, in any administrative or court action, whether state or federal, and whether brought by
Employee or on Employee’s behalf, related in any way to the 

  

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matters released herein. Except with respect to the obligations created by this Separation Agreement and any agreements described in paragraph 6, Company and
its successors and assigns forever release and absolutely discharge Employee and his successors and assigns from any and all claims, demands, damages, debts, liabilities, actions and causes of action, whether now known or unknown, which Company now
has, or at any other time had, or shall or may have against Employee based upon, arising out of or relating to any matter, cause, fact, thing, act or omission whatsoever occurring or existing at any time to and including the date this Separation
Agreement is signed (collectively referred to as the “Company Released Matters”). Notwithstanding the above release, Company Released Matters shall exclude any hereafter discovered breach by Employee of his legal and professional duties as
Chief Executive Officer and director to Company. 
 5. This Separation Agreement is intended to satisfy the requirements of the Older
Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f). Employee, by this Separation Agreement, is advised to consult with an attorney before executing this Separation Agreement. Employee acknowledges and agrees that (a) Employee has read
and understands the terms of this Separation Agreement; (b) Employee has been advised in writing to consult with an attorney before executing this Separation Agreement; (c) that Employee has obtained and considered such legal counsel as
Employee deems necessary; (d) that Employee has been given up to twenty-one (21) days to consider whether or not to enter into this Separation Agreement (although Employee may elect not to use the full 21-day period at Employee’s
option); and (e) that by signing this Separation Agreement, Employee acknowledges that Employee does so freely, knowingly, and voluntarily. This Separation Agreement shall not become effective or enforceable until the eighth day after Employee
signs this Separation Agreement. In other words, Employee may revoke Employee’s acceptance of this Separation Agreement within seven (7) days after the date Employee signs it. Employee’s revocation must be in writing and received by
Asa Hutchinson, Chairman of the Special Committee of Company’s Board of Directors, by 5:00 p.m. Eastern Time on the seventh day in order to be effective. If Employee does not revoke acceptance within the seven-day period, Employee’s
acceptance of this Separation Agreement shall become binding and enforceable on the eighth day. The benefits described above shall become due and payable in accordance with paragraph 2, provided this Separation Agreement has not been revoked.

 6. Employee acknowledges and agrees that he shall continue to be bound by and comply with the terms of any proprietary rights, assignment
of inventions and/or confidentiality agreements between Company and Employee. On or before the Separation Date, Employee will return to Company, in good working condition, all Company property and equipment that is in Employee’s possession or
control, including, but not limited to, any files, records, computers, computer equipment, cell phones, credit cards, keys, programs, manuals, business plans, financial records, and all documents (and any copies thereof) that Employee prepared or
received in the course of his employment with Company or otherwise came into his possession. Employee agrees in response to reasonable requests made by Company to cooperate fully and assist Company in any matter in which Employee has been involved
during the course of Employee’s employment. Such assistance shall include providing information, preparing or reviewing documents, submitting to depositions, providing testimony and general cooperation to assist Company in explaining its
position with respect to any matter in which Employee may have been involved as an employee of Company. In the event Employee incurs reasonable out-of-pocket expenses in providing such assistance during his lifetime, including reasonable
attorneys’ fees, Company shall reimburse such eligible expenses in accordance with Company’s policy for reimbursement of senior executive officer expenses, including the requirements of such policy for documentation of such expenses. The
contractual right to reimbursement shall not apply to any matter for which Employee has sought advancement of expenses and/or indemnification pursuant to Company’s bylaws, any indemnification agreement to which Employee is a party or
reimbursement under any applicable directors and officers liability insurance policy. Company shall pay the reimbursement of eligible expenses on or before the last day of Employee’s taxable year following the taxable year in which the
applicable expense was incurred by Employee. The amount of such expenses eligible for reimbursement during a taxable year of Employee shall not affect the expenses eligible for reimbursement in any other taxable year of Employee. 
  

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 7. Employee agrees that he shall not directly or indirectly disclose any of the terms of this Separation
Agreement to anyone other than his immediate family or counsel, except as such disclosure may be required for accounting or tax reporting purposes or as otherwise may be required by law. Company intends that income provided to Employee pursuant to
this Separation Agreement will not be subject to taxation under Section 409A of the Internal Revenue Code (the “Code”). The provisions of this Separation Agreement shall be interpreted and construed in favor of satisfying any
applicable requirements of Section 409A of the Code. However, Company does not guarantee any particular tax effect for income provided to Employee pursuant to this Separation Agreement. In any event, except for Company’s
responsibility to withhold applicable income and employment taxes from compensation paid or provided to Employee, Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Employee pursuant to this
Separation Agreement. Employee represents that he has consulted his own attorney regarding the application of Section 409A of the Code to this Separation Agreement. 
 8. Employee agrees that he will not, at any time in the future, make any critical or disparaging statements about Company, its products, its services, or
its directors or employees, unless such statements are made truthfully in response to a subpoena or other legal process. Company agrees to direct its executive officers and authorized spokespersons to refrain from making any critical or disparaging
statements about Employee, unless such statements are made truthfully in response to a subpoena or other legal process. 
 9. Employee agrees
that for a period of twelve months following the Separation Date, he will not, on behalf of himself or any other person or entity, directly or indirectly (a) solicit any employee of Company to terminate his/her employment with Company, or
(b) interfere with, impair, disrupt or damage Company’s relationship with any of its customers, partners or clients, or prospective customers, partners or clients, including, but not limited to, by means of soliciting, or encouraging or
causing others to solicit, any of them for the purpose of diverting, taking away or diminishing the business such customers, partners or clients have or may have with Company. Employee understands and acknowledges that he has been privy to and has
obtained Company confidential information during his employment. Employee agrees and understands that he shall not use or disclose in any manner not authorized by Company any confidential information obtained by him in connection with his
employment. 
 10. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and
performance of this Separation Agreement. In the event of any legal action relating to or arising out of this Separation Agreement, the substantially prevailing party shall be entitled to recover from the losing party its attorneys’ fees and
costs incurred in that action. 
 11. This Separation Agreement shall be interpreted in accordance with and governed by the laws of the State
of Texas, without regard to the conflict of laws provisions thereof. 
 12. This Separation Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, with the exception of (a) any agreements between the parties with respect to the Restricted Stock
Award, which shall be modified only as set forth in paragraph 3 hereof, and (b) any agreements described in paragraph 6. This Separation Agreement will be deemed to supersede and amend in its entirety the Employment Agreement.
Employee acknowledges and agrees that the Employee’s resignation as Chief 

  

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Executive Officer and as a member of the Board of Directors does not provide any rights under, and will not be asserted by Employee as grounds for any
benefits under, the Employment Agreement, nor will Employee assert such resignations otherwise as grounds for any claim against Company for constructive termination of employment. This Separation Agreement may not be modified or amended except by a
document signed by an authorized officer of Company and Employee. 
 13. In the event any provision of this Separation Agreement shall be
found unenforceable, the unenforceable provision shall be deemed deleted and the validity and enforceability of the remaining provisions shall not be affected thereby. 
 14. This Separation Agreement may be pled as a full and complete defense to, and may be used as a basis for an injunction against, any action, suit or other proceeding that may be prosecuted, instituted or attempted
by any party hereto in breach hereof. 
 THE PARTIES TO THIS SEPARATION AGREEMENT HAVE READ THE FOREGOING SEPARATION AGREEMENT AND FULLY UNDERSTAND EACH AND
EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS SEPARATION AGREEMENT ON THE DATES SHOWN BELOW. 
  

							
				
	Dated: July 21, 2008	 		 	By:	 	/s/ Steven M. Oyer
		 		 		 	Steven M. Oyer
			
		 		 	        IDENTIPHI, INC.
				
	Dated: July 21, 2008	 		 	By:	 	/s/ Asa Hutchinson
		 		 		 	Asa Hutchinson
		 		 		 	Director, IdentiPHI, Inc.

  

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