Document:

Line of Credit Agreement, dated November 11, 2008

 Exhibit 10.4 
 LINE OF CREDIT AGREEMENT 
 This Line of Credit Agreement (“Agreement”), dated as of
November 10, 2008, is entered into by and between Key Ovation, LLC (“Lender”), and IdentiPHI, Inc., a Delaware corporation (“Borrower”). 
 RECITALS 
 WHEREAS, Lender has agreed to lend to Borrower up to One Million
Dollars ($1,000,000) and Borrower has agreed to borrow up to the amount of such funds on the terms set forth below. 
 NOW, THEREFORE, the
parties hereto agree as follows: 
 1. LINE OF CREDIT. 
 1.1 Credit Line. Upon execution of this Agreement and subject to the terms hereof, Lender agrees to make available to Borrower a
committed line of credit equal to One Million Dollars ($1,000,000) (the “Credit Line”). 
 1.2
Advances. “Advances” shall mean funds advanced to Borrower by Lender under the Credit Line. The aggregate amount of the Advances shall not exceed the Credit Line, and each Advance shall be at Borrower’s sole discretion;
provided, however, that aggregate Advances may not exceed $100,000 during any one calendar month period. Each Advance shall be made by Lender within ten (10) Business Days (as defined in the Notes) of receipt of an executed draw
down request from Borrower in the form of Exhibit A attached hereto (a “Draw Down Request”). 
 1.3 Issuance of Notes. All Advances made from time to time shall be evidenced by promissory notes in the form of Exhibit B attached hereto (each, a “Note” and, together, the “Notes”) and shall
be repaid in accordance with the terms thereof. 
 1.4 Interest. Interest shall accrue with respect to the principal
amount of each Advance from the date of such Advance until such principal is fully paid or converted, at eight percent (8.0%) simple interest per annum (computed on the basis of a 365- day year, based upon the actual days elapsed). 

1.5 Payment. All unpaid principal of each Note, together with the balance of accrued but unpaid interest and other amounts
payable under each Note, shall be due and payable on demand at any time upon and after the earlier of (a) the one year anniversary of the issuance of such Note, or (b) the occurrence of an Event of Default (as defined in the Notes). All
payments shall be made in lawful money of the United States of America at the principal office of Borrower, or at such other place as Lender may from time to time designate in writing to Borrower. Borrower may prepay all or any portion of the Notes
at any time in accordance with the provisions of the Notes. 
  

 1 

 1.6 Optional Conversion. Lender shall have the right, at Lender’s option, at
any time prior to payment in full of the principal balance of each Note, to convert the unpaid principal and accrued but unpaid interest under such Note, in whole or in part, into shares of Borrower’s common stock (the “Conversion
Shares”). The number of Conversion Shares to be issued upon such conversion shall be equal to the number obtained by dividing (i) the total amount of unpaid principal and accrued but unpaid interest being converted under the subject
Note on the date of conversion by (ii) $0.18. 
 1.7 Failure to Make an Advance. Lender’s failure to make an
Advance within ten (10) Business Days of receipt of an Executed Draw Request shall constitute a breach of this Agreement. 
 1.8 Warrants. Upon Borrower’s receipt of each Advance, Borrower shall issue to Lender a common stock purchase warrant, in substantially the form of Exhibit C attached hereto (each, a “Warrant” and,
together, the “Warrants”), which Warrant shall entitle Lender to purchase a number of shares of Borrower’s common stock equal to 50% of the principal amount of such Advance divided by 0.18, at an exercise price of $0.18 per
share. 
 1.9 Cancellation of Credit Line. Borrower may cancel all or any portion of the unborrowed amounts of the
Credit Line by delivery to Lender of a Notice of Cancellation in the form of Exhibit D attached hereto. In addition, any prepayment by Borrower, or any conversion by Lender, of any amount due under a Note shall automatically constitute a
cancellation of the amount prepaid or converted and of such prepaid or converted Note. 
 1.10 Qualifying Financing.
Lender, at its option, may suspend its obligations to make any further Advances after January 31, 2009, if Borrower has not, after the date hereof, completed an equity and/or debt financing (or series of financings) for aggregate gross
proceeds to Borrower of at least $1.7 million (a “Qualifying Financing”) by delivery of written notice of such suspension to Borrower at least ten (10) Business Days prior to the effective date of such suspension. In the event
Lender suspends its obligations to make further Advances pursuant to this Section 1.10, Lender’s obligations to make further Advances shall be automatically resumed upon the completion of a Qualifying Financing by Borrower after
January 31, 2009. 
 2. ACCELERATION. If any Event of Default shall occur and be continuing:
(a) Lender’s obligations to make any Advances shall be suspended; and (b) Lender, at its option, may, by notice to Borrower, declare the entire unpaid principal amount of the Notes, all interest accrued and unpaid thereon and all
other amounts payable pursuant thereto to be forthwith due and payable, whereupon all unpaid principal of the Notes, all such accrued interest and all such other amounts shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived by Borrower. 
  

 2 

 3. TERMINATION. 
 3.1 Termination. This Agreement shall terminate on October 31, 2009 (the “Termination Date”), unless earlier
terminated pursuant to Section 3.2. In the event of termination of this Agreement, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of Lender or Borrower or their respective officers,
directors, stockholders, members, managers or affiliates; provided, however, that the provisions of this Section 3.1 and Section 4 of this Agreement shall remain in full force and effect and survive any termination of this
Agreement. 
 3.2 Termination by Mutual Consent. This Agreement may be terminated at any time prior to the Termination
Date by the mutual written consent of Lender and Borrower. 
 4. MISCELLANEOUS. 
 4.1 Notices. All notices which any party to this Agreement may be required or may wish to give may be given by addressing them to
the other party at the addresses set forth below by: (a) personal delivery, (b) by commercial overnight courier with written verification of actual receipt, (c) by registered or certified mail, or (d) by facsimile with receipt
confirmed: 
  

			
	 If to Lender:
	 	Key Ovation, LLC
		 	2111 West Braker Lane
		 	Austin, Texas 78758
		 	Attention: President
		 	Fax: (512) 795-9997
		
		 	With a copy to:
		
		 	Akin & Almanza, Attorneys and Counselors
		 	2301 Capital of Texas Highway South, Building H,
		 	Austin, Texas 78746
		 	Attention: Rick Akin, Esq.
		 	Fax: (512) 478-7151
		
	 If to Borrower:
	 	IdentiPHI, Inc.
		 	13809 Research Blvd., Ste 275
		 	Austin, Texas 78750
		 	Attention: Chief Executive Officer
		 	Fax: (512) 492-6225
		
		 	With a copy to:
		
		 	DLA Piper LLP
		 	701 Fifth Avenue, Suite 7000
		 	Seattle, WA 98104-7044
		 	Attention: Michael Hutchings, Esq.
		 	Fax: (206) 839-4801

  

 3 

 If so mailed or otherwise delivered, such notices shall be deemed and presumed to have
been given on the earlier of the date of actual receipt or three (3) days after mailing or authorized form of delivery. 
 4.2 Governing Law. This Agreement shall be construed in accordance with, and the rights of the parties shall by governed by, the law of the State of Texas. Venue for any action arising out of this Agreement shall be Travis County,
Texas. 
 4.3 Waiver. Lender’s acceptance of partial or delinquent payments or failure to enforce or delay in
enforcing any right shall not waive or release any obligation of Borrower or right of Lender, or modify this Agreement or the Notes, or waive any default. 
 4.4 Amendment. This Agreement may not be amended or modified except by a written instrument signed by both Borrower and Lender. 
 4.5 Entire Agreement. This Agreement and the Notes constitute the entire agreement between Lender and Borrower with respect to this
Agreement and supersede all prior agreements, understandings, offers and negotiations, oral or written. 
 4.6
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. Any party may execute this Agreement by facsimile signature, which
shall be deemed to constitute an original for all purposes. 
 4.7 Assignment. No party shall assign this Agreement or
any part hereof, interest herein, right or obligation hereunder without obtaining in each instance the prior written consent of the other party. 
 4.8 Expenses. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement. 
 4.9 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted
successors and assigns. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 4 

 IN WITNESS WHEREOF, the undersigned have executed this Line of Credit Agreement as of the date first
above written. 
  

			
	BORROWER:
	
	IdentiPHI, Inc.
		
	By: 	 	 
		 	 

  

			
	LENDER:
	
	Key Ovation, LLC
		
	By: 	 	 
		 	 

  

 1 

 EXHIBIT A 
 DRAW DOWN REQUEST FORM 
  

					
	TO:	  	KEY OVATION, LLC	  	DATE:                                     

			
	FROM:	  	IDENTIPHI, INC.	  	

 The undersigned represents and warrants on behalf of IdentiPHI, Inc. that as of the date hereof there has been no
Event of Default under the Line of Credit Agreement between IdentiPHI, Inc. and Key Ovation, LLC, dated as of November       , 2008 (the “Line of Credit Agreement”). 
  

					
	
	REQUESTED BY:
                                         
                                         
                                         
                                         
                    
		  	AUTHORIZED SIGNER’S NAME	  	

  

			
	AUTHORIZED SIGNATURE:
                                         
                                         
                                         
                                         

 IdentiPHI, Inc. hereby requests an advance of the below referenced amount under Section 1.2 of the Line of
Credit Agreement. 
  

				
	 REQUESTED TRANSACTION TYPE
	  	REQUEST DOLLAR AMOUNT
	 PRINCIPAL INCREASE (ADVANCE)
	  	$	                                       
 

  

			
	OTHER INSTRUCTIONS:	  	 

							
				
	 	  	 	  	 	  	 
				
	 	  	 	  	 	  	 

 Exhibit A 

 EXHIBIT B 
 FORM OF CONVERTIBLE PROMISSORY NOTE 
 Exhibit B 

 EXHIBIT C 
 FORM OF WARRANT 
 Exhibit C 

 EXHIBIT D 
 NOTICE OF CANCELLATION 
  

					
	TO:	  	KEY OVATION, LLC	  	DATE:                                     

			
	FROM:	  	IDENTIPHI, INC.	  	

  

			
	
	AUTHORIZED SIGNATURE:
                                         
                                         
                                         
                                     

 IdentiPHI, Inc. hereby makes payment of the amount specified below and/or requests the cancellation of Key
Ovation, LLC’s commitment to advance additional funds under the Line of Credit Agreement between IdentiPHI, Inc. and Key Ovation, LLC, dated as of November       , 2008. 
  

				
	 REQUESTED TRANSACTION TYPE
	  	REQUEST DOLLAR AMOUNT
	 CANCELLATION OF COMMITMENT
	  	$	                                       
 

  

			
	OTHER INSTRUCTIONS:	  	 

							
				
	 	  	 	  	 	  	 
				
	 	  	 	  	 	  	 

 Exhibit DForm of Convertible Promissory Note (Line of Credit)

 Exhibit 10.5 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
COVERING THIS NOTE, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR, IF REQUESTED BY THE COMPANY, THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR HOLDER OF THIS NOTE REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE,
TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT. 
 IDENTIPHI, INC.

 CONVERTIBLE UNSECURED PROMISSORY NOTE 
  

			
	 $                    
	 	                , 200    
		 	Austin, Texas

 FOR VALUE RECEIVED, IdentiPHI, Inc., a Delaware corporation (the “Company”),
hereby unconditionally promises to pay to Key Ovation, LLC (“Holder”), or Holder’s registered assigns, at such place or places as Holder may from time to time designate in writing, the aggregate principal sum of
__________________________________ Dollars ($_____________), together with all accrued and unpaid interest thereon, as provided herein. All unpaid principal, together with the balance of unpaid and accrued interest and other amounts payable
hereunder, shall be due and payable on demand at any time upon and after the earlier of (a) ______________, 200     (the “Maturity Date”), or (b) the occurrence of an Event of Default (as defined
herein). All cash payments by the Company under this Convertible Unsecured Promissory Note (the “Note”) shall be in immediately available U.S. funds. This Note is issued in connection with that certain Line of Credit Agreement,
dated as of November 1, 2008, by and between the Company and Holder. 
 A. Definitions. 
 1. “Allowed Consideration” shall have the meaning set forth in Section C.5 hereof. 
 2. “Business Day” means any day other than (x) a Saturday or Sunday, or (y) a day on which banks in Austin, Texas are required
to be closed. 
 3. “Change of Control Event” shall mean (a) any transaction in which the Company consummates a merger,
consolidation, share exchange or other transaction or series of related transactions resulting in the exchange of the outstanding shares of the Company for securities of or other consideration issued, or caused to be issued, by an acquiring entity
or any of its affiliates, in any such case if the stockholders of the Company immediately prior to such event own less than a majority of the outstanding voting equity securities of the surviving entity immediately following the event, or (b) a
sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company. 
 4. “Common
Stock” shall mean the common stock of the Company. 
 5. “Company” shall have the meaning set forth in the preamble
hereof. 
 6. “Conversion Price” shall be $0.18. 
  

 1 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 7. “Conversion Shares” shall mean the shares of Common Stock (or Allowed Consideration)
issuable upon conversion of this Note pursuant to Section C.3(a), including any securities of another company for which the Company’s Common Stock has been exchanged. 
 8. “Event of Default” shall have the meaning set forth in Section D.1 hereof. 
 9. “Holder” shall have the meaning set forth in the preamble hereof. 
 10. “Maturity Date” shall have the meaning set forth in the preamble hereof. 
 11. “Note” shall have the meaning set forth in the preamble hereof. 
 12. “Notice Period” shall have the meaning set forth in Section C.2 hereof. 
 13. “Obligations” shall mean the outstanding principal and accrued but unpaid interest due hereunder and any additional amounts payable
pursuant to the terms hereof. 
 14. “Reserved Shares” shall have the meaning set forth in Section C.4 hereof. 

15. “Senior Executive Officers” shall mean the Company’s Chief Executive Officer, President and Chief Financial Officer.

 B. Payment. All payments shall be made in lawful money of the United States of America at the principal office of the Company, or at such other
place as the holder hereof may from time to time designate in writing to the Company. 
 C. Interest; Conversion Terms. 
 1. Interest. Interest shall accrue with respect to the principal amount loaned hereunder from the date hereof until such principal is fully paid
or converted, at eight percent (8.0%) simple interest per annum (computed on the basis of a 365-day year, based upon the actual days elapsed). 
 2. Prepayment. The Company may prepay all or any portion of the Note at any time; provided, however, that the Company shall give Holder five (5) days’ prior written notice of such prepayment,
during which time Holder may elect to convert the outstanding principal amount and accrued but unpaid interest under the Note pursuant to Section C.3 by giving the Company written notice of Holder’s election (the “Notice
Period”). Any such prepayment will be applied first to the payment of interest accrued on the Note and then, if the amount of prepayment exceeds the amount of all accrued but unpaid interest, to the payment of principal of the Note.

 3. Conversion. 
 (a) Optional Conversion. Holder has the right, at Holder’s option, at any time prior to payment in full of the principal balance of this Note, to convert this Note (including principal and accrued but unpaid interest to the date
of conversion) in accordance with the provisions of this Section C.3, in whole or in part, into Conversion Shares. The number of Conversion Shares to be issued upon such conversion shall be equal to the number obtained by dividing (i) the
outstanding principal amount and accrued but unpaid interest under this Note on the date of conversion by (ii) the Conversion Price. The number of Conversion Shares issuable to Holder upon such conversion shall be rounded down to the nearest
whole number. 
  

 2 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 (b) Mechanics and Effects of Conversion. 
 (i) Before Holder shall be entitled to convert this Note into Conversion Shares pursuant to Section C.3(a), it shall surrender this Note
at the office of the Company and shall give written notice by mail, postage prepaid, to the Company at its principal executive office, of the election to convert the same pursuant to Section C.3(a), and shall state therein the name or names in which
the certificate or certificates for Conversion Shares are to be issued. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of this Note, and the person or persons entitled to
receive the Conversion Shares upon such conversion shall be treated for all purposes as the record holder or holders of such Conversion Shares as of such date. 
 (ii) As soon as reasonably practicable after conversion of this Note, and upon surrender of this Note, the Company will deliver or cause
to be issued in the name of and delivered to Holder a certificate or certificates representing the number of Conversion Shares to which Holder shall be entitled on such conversion. No fractional shares will be issued on conversion of this Note, and
in lieu thereof the number of Conversion Shares issuable to Holder upon such conversion shall be rounded down to the nearest whole number. Upon full conversion of this Note and the issuance of the certificate(s) as contemplated herein, the Company
shall be forever released from all its Obligations and liabilities under this Note. 
 (c) Notice Regarding Change of
Control Event. At least thirty (30) calendar days prior to the anticipated closing of a Change of Control Event (or, if such notice is impracticable thirty (30) calendar days prior to such Change of Control Event, as many days before
the Change of Control Event as is practicable), written notice shall be delivered to the Holder of this Note pursuant to Section E.5 below notifying Holder of the terms and conditions of the Change of Control Event, the amount of the outstanding
principal amount and accrued but unpaid interest under this Note, the anticipated date on which any such Change of Control Event will occur and calling upon such Holder to inform the Company whether Holder intends to elect to convert the outstanding
principal amount and accrued but unpaid interest into Conversion Shares. Following notice of the Change of Control Event, any conversion of this Note by Holder may be made contingent upon the consummation of such Change of Control Event, if so
elected by Holder in the notice of conversion. 
 (d) No Rights as Stockholder. Prior to its conversion, this Note
shall not entitle Holder to any voting rights or to any other rights as a stockholder of the Company or to any other rights whatsoever except the rights stated herein or in the agreements referenced herein. 
 (e) Withholding Obligations; Form 1099. Holder authorizes the Company to withhold from Holder, or to demand cash payment from
Holder for, any taxes required to be withheld from Holder on the conversion of this Note, or, to reduce or eliminate such withholding, to provide the Company with a fully executed and completed IRS Form W-9. Holder acknowledges that the Company may
issue Holder a Form 1099, reporting the interest, to the Internal Revenue Service (even if the interest is converted into stock), in accordance with law. 
 (f) Conversion Price Adjustments. In the event the Company should at any time while this Note is outstanding fix a record date for the effectuation of a split or subdivision of the Common Stock or the
determination of holders of Common Stock entitled to receive a dividend or other distribution payable in additional shares of Common Stock or other securities or rights convertible into, or entitling the holder thereof to receive directly or
indirectly, additional shares of Common Stock without payment of any consideration by such holder for the additional shares of Common Stock, then, as of such record date, the Conversion Price shall be appropriately decreased so that the number of
shares of Common Stock issuable upon conversion of this Note shall be increased in proportion to such increase of outstanding shares of Common Stock. 
  

 3 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 4. Covenants as to Conversion Shares. The Company covenants and agrees that all Conversion Shares
issued pursuant to the terms of this Note (the “Reserved Shares”) will, upon their issuance, be validly issued and outstanding, fully paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance
thereof. The Company further covenants and agrees that the Company will at all times have authorized and reserved a sufficient number of the Reserved Shares to provide for the conversion rights represented by this Note. If at any time while this
Note remains outstanding the number of authorized but unissued shares of Common Stock shall not be sufficient to permit the conversion of this Note, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 
 5.
Consolidation or Merger of the Company. If the Company is a party to (a) any consolidation, merger or share exchange with another corporation in which the Company is not the survivor, (b) any consolidation or merger of another
entity into the Company in which the Company is the survivor but, in connection therewith, the Company’s equity securities are changed into or exchanged for stock or other securities of any other entity, or (c) any capital reorganization
or reclassification of its Common Stock (in each such case excluding any merger effected exclusively for the purpose of changing the domicile of the Company), pursuant to any of which transactions the holders of the Company’s capital stock are
entitled to receive with respect to or in exchange for such capital stock, stock or other securities, whether alone or together with any other consideration (such consideration being the “Allowed Consideration”), then as a condition
of such transaction, lawful and adequate provisions reasonably acceptable to Holder shall be made whereby Holder shall thereafter have the right to purchase and receive (in lieu of Conversion Shares immediately theretofore receivable upon the
conversion of this Note) such Allowed Consideration as may be issued or payable with respect to or in exchange for the number of such Conversion Shares immediately theretofore receivable upon the conversion of this Note. In any such case,
appropriate provisions shall be made with respect to the rights and interests of Holder to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Conversion Price and the number of shares receivable upon
the conversion of this Note) shall thereafter be applicable, as nearly as may be reasonably practicable (as determined in good faith by the Company’s Board of Directors, whose judgment shall be final and binding on Holder), in relation to the
Allowed Consideration thereafter deliverable upon the conversion hereof. The Company will not effect any such consolidation or merger, unless, in connection with the consummation thereof, the successor corporation resulting from such consolidation
or merger shall assume by written instrument the obligation to deliver to such Holder such Allowed Consideration as, in accordance with the foregoing provisions, such Holder may be entitled to purchase. 
 6. No Impairment. Except and to the extent as waived or consented to by Holder in writing, the Company will not, by amendment of its Certificate
of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company. 
  

 4 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 D. Default. 
 1. Events of Default. The occurrence of any of the following shall constitute an “Event of Default” under this Note: 
 (a) Failure to Pay. The Company shall fail to pay when due any principal, any interest or other payment required under the terms of this Note on the date due and such default shall continue unremedied for a
period of ten (10) Business Days after the Company’s receipt of written notice from Holder of such failure to pay. 
 (b) Breach of this Note. Except in the case of Section D.1(a) above, the Company shall be in material breach or default under any of the terms of this Note, and such breach or default shall continue unremedied for a period of thirty
(30) Business Days after the Company’s receipt of written notice from Holder specifying such breach or default. 
 (c) Bankruptcy or Insolvency Proceedings. 
 (i) The Company shall (A) appoint, apply for or consent to
the appointment of a receiver, trustee, liquidator, custodian, assignee for the benefit of creditors or similar judicial officer or agent to take possession, custody, control or charge of or liquidate any of its property or assets, (B) commence
any voluntary proceeding under any provision of Title 11 of the United States Code, as now or hereafter amended, or commence any other proceeding, under any law, now or hereafter in force, relating to bankruptcy, insolvency, reorganization,
liquidation, or otherwise to the relief of debtors or the readjustment of indebtedness, or (C) make any assignment for the benefit of creditors or a composition or similar arrangement with such creditors; 
 (ii) The commencement against the Company of any involuntary proceeding, or the consent by Company to any proceeding, of the kind
described in Section D.1(c)(i) and such proceeding shall not have been dismissed within thirty (30) days; 
 (iii) The
Company is adjudicated bankrupt or insolvent or a petition for reorganization is granted; or 
 (iv) The Company shall cause,
or institute any proceeding for, or there shall occur, the dissolution of the Company. 
 (d) Change of Control Event.
Without the prior written consent of Holder, the Company shall consummate a Change of Control Event and in connection therewith the Company changes its Senior Executive Officers such that the Senior Executive Officers serving immediately prior to
such Change of Control Event no longer serve as the Company’s Senior Executive Officers immediately following such Change of Control Event. 
 2. Rights of Holders Upon Default. If any Event of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, then Holder may, by written notice to the Company, declare all or any portion of the
Obligations to be due and payable, whereupon the full outstanding principal and interest hereunder shall be so declared due and payable shall be and become immediately due and payable, without further notice, demand or presentment, all of which are
expressly waived by the Company. 
  

 5 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 E. Other Provisions. 
 1. Waivers and Amendments. This Note may not be amended or modified, nor may any of its terms be waived, except by a written instrument signed by Holder and the Company. 
 2. Severability. If any provision of this Note is determined to be invalid, illegal or unenforceable, in whole or in part, the validity, legality
and enforceability of any of the remaining provisions or portions of this Note shall not in any way be affected or impaired thereby and this Note shall nevertheless be binding between the Company and Holder. 
 3. Governing Law. This Note shall be governed by and interpreted in accordance with the internal laws of the State of Texas. In any action brought
or arising out of this Note, the Company and Holder hereby consent to the jurisdiction of any federal or state court seated in Travis County, Texas and also consent to the service of process by any means authorized by Texas law. 
 4. Binding Effect. This Note shall be binding upon, and shall inure to the benefit of, the Company and Holder and their respective successors and
assigns. 
 5. Notices. Any notice required or desired to be served, given or delivered hereunder shall be in writing and in the form
and manner specified below, and shall be addressed to the party to be notified as follows: 
  

			
	 If to the Company:
	 	IdentiPHI, Inc.
		 	13809 Research Blvd., Ste 275
		 	Austin, Texas 78750
		 	Attention: Chief Executive Officer
		
		 	With a copy to:
		
		 	DLA Piper LLP
		 	701 Fifth Avenue, Suite 7000
		 	Seattle, WA 98104-7044
		 	Attention: Michael Hutchings, Esq.
		
	 If to Holder:
	 	Key Ovation, LLC
		 	2111 West Braker Lane
		 	Austin, Texas 78758
		 	Attention: President
		
		 	With a copy to:
		
		 	Akin & Almanza, Attorneys and Counselors
		 	2301 Capital of Texas Highway South, Building H,
		 	Austin, Texas 78746
		 	Attention: Rick Akin, Esq.

 or to such other address as each party designates to the other by notice in the manner herein prescribed. Notice
shall be deemed given hereunder if (a) delivered personally or otherwise actually received, (b) sent by overnight delivery service, or (c) mailed by first-class United States mail, postage prepaid, registered or certified, with return
receipt requested. Notice mailed as provided in clause (iii) above shall be effective 

  

 6 
 LINE OF CREDIT 
 PROMISSORY NOTE 

 
upon the expiration of three (3) Business Days after its deposit in the United States mail. Notice given in any other manner described herein shall be
effective upon receipt by the addressee thereof; provided, however, that if any notice is tendered to an addressee and delivery thereof is refused by such addressee, such notice shall be effective upon such tender unless expressly set
forth in such notice. 
 6. Payment. Payment shall be made in lawful tender of the United States. 
 7. Transfer of Note or Securities Issuable on Conversion Hereof. Prior to conversion, neither this Note nor any rights hereunder may be
transferred by Holder unless Holder delivers to the Company written notice of Holder’s intention of such transfer at least ten (10) days prior to such transfer and such transfer complies with applicable federal and state securities laws,
except that Holder may freely assign this Note to an affiliate of Holder. For purposes of this agreement, “affiliate” shall be deemed to include with respect to a Holder: (a) a partnership or limited liability company, its partners,
members, stockholders, former partners, former members or an affiliated entity managed by the same manager or managing partner or management company, or managed or owned by an entity controlling, controlled by, or under common control with, such
member or manager or managing partner or management company, or (b) an individual, his or her spouse or lineal descendant or antecedent, or a trust or trusts for the exclusive benefit of Holder or Holder spouse or lineal descendant or
antecedent, in each such case in connection with bona fide estate planning purposes. In the event this Note is transferred in accordance with this Section E.7, the new holder shall be deemed to be the “Holder” with respect to the
provisions of this Note. 
 8. Replacement Note. If this Note is lost, stolen, mutilated or destroyed, the Company shall issue a new
Note of like denomination, tenor and date as this Note, subject to the Company’s right to require Holder to give the Company a bond or other satisfactory security sufficient to indemnify the Company against any claim that may be made against it
(including any expense or liability) on account of the alleged loss, theft, mutilation or destruction of this Note or the issuance of such new Note. 
 9. Headings. Section headings used in this Note have been set forth herein for convenience of reference only. Unless the contrary is compelled by the context, everything contained in each section hereof applies
equally to this entire Note. 
 IN WITNESS WHEREOF, the Company has caused this Convertible Unsecured Promissory Note to be issued as of the
date first written above. 
  

			
	IDENTIPHI, INC.
		
	By: 	 	 
		 	 
		 	 

  

 7 
 LINE OF CREDIT 
 PROMISSORY NOTE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]