Document:

Continued Employment and Separation Agreement

 Exhibit 10.4 
 CASH AMERICA INTERNATIONAL, INC. 
 1600 West Seventh Street 

Fort Worth, Texas 76102 
 817.335.1100 
 January 29, 2013 

Timothy S. Ho 
 740 W. Fulton #710 

Chicago, IL 60661 
  

	Re:	Continued Employment and Separation Agreement 

Dear Tim: 
 This letter
agreement and release of claims (this “Agreement”) sets forth the terms and conditions governing (i) your continued employment with Enova Financial Holdings, LLC (“Enova”), (ii) the termination of your employment
relationship with Enova, and any relationship with Cash America International, Inc. (“CAI”), Enova International, Inc., and all of their affiliates and subsidiaries (collectively, the “Company”), and (iii) your release of
the Company and related parties. Additionally, it is agreed that this Agreement sets forth the entire agreement between you and the Company (the “Parties”) and its predecessors, directors, officers, employees, agents and representatives
relating to the separation of your employment. 
 Continued Employment. From the date of this letter through
March 28, 2013, your employment with Enova and your relationship with the other companies comprising the Company will continue, with your primary duties to include (i) reporting to, and continuing to manage the business as directed
by, the new chief executive officer of the Company’s e-commerce segment (the “New CEO”), (ii) introducing the New CEO to the Company’s e-commerce segment, its business and its employees, client base and suppliers; and
(iii) helping to methodically transition your duties to the New CEO. During that period, you will continue to work on substantially a full time basis, and both you and the Company reasonably anticipate that, through March 28, 2013,
you will continue to work more than 20% of the average amount you worked over the last 36 months such that you will not have a separation from service (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended
(“Section409A”)). 
 For all periods through March 28, 2013, you will continue to receive the same compensation
and benefits as is currently in effect, subject to any changes that may apply to all other senior executives of Enova. 

Severance Arrangement. Except as expressly provided herein, this Agreement is not intended to alter the form or timing of any
severance pay or benefits provided to you under any prior arrangement, including, but not limited to, the Cash America International, Inc. Severance Pay Plan for Executives (the “Severance Plan”) but is intended to provide for certain
additional payments and benefits described herein. Your separation from the Company under this Agreement is an “Eligible Termination” for purposes of, and within the meaning of, Section 2(c) of the Severance Plan. 

 All of your employment by, and services for, the Company will cease, and you thereby will
have a separation from service on, March 29, 2013 (your “Severance Date”). In consideration of your separation from service, you and the Company agree to the following: 

 

	(1)	If you agree to and accept the terms contained in this Agreement, you must sign the Agreement in the space provided below and return one fully executed original of this
Agreement to the Company by February 20, 2013, which date is more than 21 days after the date that this Agreement is being delivered to you. In addition, on March 29, 2013, you must sign the Release Agreement (a copy of which
is attached hereto as Exhibit A), which date is more than 21 days after the date that this Agreement and the Release Agreement is being delivered to you. If you elect to sign this Agreement and the Release Agreement and return an original of each to
the Company, you will have 7 days after you deliver the original of each of this Agreement and the Release Agreement to the Company during which you may revoke your acceptance. If you choose to revoke your acceptance of either this Agreement or the
Release Agreement, you must notify the Company in writing, and the Company must receive the notification by the expiration of the applicable 7-day period. If you do not sign this Agreement and the Release Agreement within the period or on the date,
respectively, specified above, or if you revoke your acceptance of either during the applicable revocation period described above, this Agreement will be of no further force or effect, and you will not be entitled to any of the payments or benefits
described herein. The signed agreement and any revocation thereof should be sent via US mail or overnight courier to CAI’s home office address as shown on this Agreement, with attention to the Company’s General Counsel, or via telecopy to
the Company’s General Counsel at 817.570.1647 (followed by mailing or overnighting the original to the address above). 

  

	(2)	Your separation from all offices and positions held by you in the Company will be effective as your Severance Date. 

 

	(3)	If you sign this Agreement and the Release Agreement in the manner described in paragraph (1) above and you do not thereafter revoke your acceptance, the Company
will pay to you severance pay in the gross amount of $860,000.00 (“Salary Continuation Pay”), less applicable withholdings required by law. Consistent with the terms of Section 3(a)(ii)(B) of the Severance Plan, this Salary
Continuation Pay will be paid to you as described below. The Salary Continuation Pay is for the 24-month period commencing on your Severance Date and ending in March 2015 (the “Severance Period”), and will be paid in substantially equal
installments as salary continuation, beginning upon your Severance Date. Such installment payments shall be paid in accordance with the Company’s regular payroll procedures for other similarly-situated active employees. Notwithstanding the
foregoing, any payment of severance pay shall be delayed until after the expiration of the Release Agreement’s revocation period described in paragraph (1) above, and any amount of severance pay otherwise due before the end of such
revocation period shall be paid upon the day after the end of such period in a single lump-sum payment. In no event shall the first payment be made more than 74 days following your Severance Date. Each payment shall be considered a separate
payment for purposes of Section 409A. 

  
 2 

	(4)	The Company will pay to you in a single lump sum an amount equal to the difference between (i) $24,807.69, which reflects the value of 3 weeks of vacation, and
(ii) the value of any vacation you take between the date of this Agreement and March 28, 2013. This lump-sum amount will be paid to you within 30 days after your Severance Date. 

 

	(5)	If (i) you sign this Agreement and the Release Agreement in the manner described in paragraph (1) above and you do not thereafter revoke your acceptance of
either, and (ii) you elect to continue health coverage (i.e., medical, dental and vision benefits) under the Company’s group health plan pursuant to the continuation provisions of the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”), then, during the first 18 months of your Severance Period while such coverage is in effect, the Company will reimburse you for the portion of the premium for group health plan coverage that you pay and that is in excess of what
similarly-situated executives would pay for similar coverage under the Company’s group health plan during that period, all as provided under Section 3(a)(iii) of the Severance Plan. In addition, to the extent you would be entitled to COBRA
during the last 6 months of your Severance Period if COBRA lasted 24 months (instead of 18 months), then the Company will allow you to continue your group health plan coverage under the Company’s group health plan pursuant the same rules and
terms as would apply if COBRA had continued; and the Company will reimburse you for the portion of the premium for group health plan coverage that you pay and that is in excess of what similarly-situated executives would pay for similar coverage
under the Company’s group health plan during that period. Also, the Company will allow you to continue your participation in the Company’s Medical Expense Reimbursement Plan (“MERP”) as long as you are participating in the
Company’s group medical plan under COBRA or the COBRA-like coverage described in the preceding sentence. Because the reimbursement of the premiums for the group health plan benefits and the reimbursements under the MERP provided to you are
discriminatory in favor of a highly compensated individual under Section 105(h) of the Internal Revenue Code of 1986, as amended (the “Code”), the Company will report the amounts of the premium reimbursements and MERP benefits as
taxable income on your Form W-2. Each of the reimbursements will be treated as a separate payment for purposes of Code Section 409A. The Company reserves the right to amend and/or terminate any of the group health plans and the MERP at any
time. 

  

	(6)	This Agreement provides for any and all payments to you for any reason associated with your employment with the Company up to and including your Severance
Date. You will not be entitled to receive any amounts under any other plan, program or agreement with the Company (including, without limitation, incentive pay under the Company’s 2013 Short Term Incentive Plan or any other incentive plan,
including any non-vested Units or Performance Units under the Cash America Net Holdings, LLC 2007 Long Term Incentive Plan, the Cash America Net Holdings, LLC 2008 Long Term Incentive Plan, or the Cash America International, Inc. First Amended and
Restated 2004 Long-Term Incentive Plan (the “LTIP”) (including, but not limited to, any grant agreements issued under the LTIP that evidence unvested time-based and/or performance-based restricted stock units or any unvested cash-based
performance units previously awarded to you, which agreements and unvested awards shall automatically terminate, forfeit and expire on the Separation Date), or any agreement or arrangement providing benefits or payments in the event of a change in
corporate control (including the Executive Change-In-Control Severance Agreement previously executed by you and the Company, which Agreement shall also terminate on the Separation Date)); and all other benefits and perquisites that you are currently
receiving will cease on your Severance Date. The foregoing will not, however, affect any vested benefits to which you are entitled after separation under the terms of any Company benefit or compensation plan in which you are a participant.

  
 3 

	(7)	You agree not to say, write, do, authorize or otherwise create or publish anything that will in any way disparage the Company or any of its employees. You also agree
not to interfere with the management of the Company through any contact with shareholders, directors, employees, vendors and others, and not to make any public or private statements or comments that may have the effect of disrupting operations of
the Company in any way. The Company agrees not to say, write, do, authorize or otherwise create or publish anything that will in any way disparage you; provided, however, any disclosures requested or required by any court or governmental entity,
including without limitation, the Securities and Exchange Commission, or any factual disclosures reasonably necessary to protect or defend the Company shall not be deemed to be disparaging. 

 

	(8)	The Parties agree that the terms and conditions of this Agreement will be filed, and disclosed in filings, with the Securities Exchange Commission to the extent
required. To the extent such disclosure is not required, the terms and conditions of this Agreement are to be held in strict confidence by you and characterized as “confidential information.” The Parties further agree that the terms and
conditions of this Agreement will not be further disclosed to any other person or entity (with the exception of the Parties’ attorneys, accountants and your current spouse, provided such individuals agree to maintain the confidentiality
requirements of this paragraph (8)), unless such party is required to do so by a valid order of a court of competent jurisdiction, or as required by law. Any disclosure of “confidential information” to any third-party not otherwise
contemplated herein will be construed as a material breach of this Agreement. 

  

	(9)	It is further agreed that you will return to the Company, on or before your Severance Date, all Company property currently in your possession, including without
limitation, computers, PDAs, keys, credit cards, cellular phones, pagers and all papers, lists and other materials that relate to, or involve, the business of the Company and that are in your possession or control. 

 

	(10)	You further agree to give up any claim to reinstatement with the Company. You also agree not to apply for re-employment with the Company or any related Company during
the Severance Period. Following the expiration of the Severance Period, you may apply for employment and be evaluated along with all other qualified applicants in accordance with the Company’s hiring policies and procedures.

  

	(11)	 You acknowledge that, during the term of your employment, you have been privy to confidential and proprietary information of the Company. You agree to
not disclose to any third party the trade secrets, proprietary information, marketing strategies, business strategies, business plans, pricing data, legal analyses, financial information, insurance information, customer lists, customer information,
creditor files, processes, policies, procedures, research, lists, methodologies, specifications, software, software code, computer systems, software and hardware architecture and specifications, customer information systems, point of sale systems,
management information systems, software design and development plans and materials, intellectual property, contracts, business records, technical 

  
 4 

	 	
expertise and know-how, and other confidential and proprietary information and trade secrets of the Company (collectively, the “Property”), which were provided to you by the Company and
are confidential and proprietary property of the Company. You further agree (i) that prior to the date you executed this Agreement, you did not intentionally harm, damage or destroy any of the Company’s Property, and (ii) not to use
any Property to your personal benefit or the benefit of any third party. You also agree to return to the Company by your Severance Date all such Property which is tangible. Notwithstanding the foregoing, the Property protected hereunder does not
include any data or information that has been disclosed to the public (except where such public disclosure has been made by you without authorization), that has been independently developed and disclosed by others, or that otherwise enters the
public domain through lawful means. The restrictions in this provision are in addition to, and not in lieu of, any rights or remedies the Company may have available pursuant to the laws of the State of Illinois to prevent the disclosure of trade
secrets and proprietary information. Your obligations under the nondisclosure provisions hereof (i) will apply to confidential information that does not constitute trade secrets for a period of 36 months after your Severance Date, and
(ii) will apply to trade secrets until such Property no longer constitutes trade secrets. 

  

	(12)	You agree that, for 24 months after your Severance Date, you will not, directly or indirectly, solicit, recruit or induce any employee, officer, agent or independent
contractor of the Company to terminate such party’s engagement with the Company so as to work for any person or business which competes with the Company for talent; provided, the restrictions set forth in this provision (i) will only apply
to employees, officers, agents or independent contractors with whom you had business contact during the 12-month period prior to your Severance Date, and (ii) will not apply to any such party that is at the time of contact no longer engaged by
the Company and such party initiates contact with you with respect to any opportunity that you would otherwise be able to pursue without the breach of any other terms or covenants in this Agreement. 

 

	(13)	You agree that, for 24 months after your Severance Date, you will not, on your own behalf or on behalf of any other person or entity (including without limitation any
entity that you may form, join, consult with, provide services or assistance to or on behalf of, or otherwise become affiliated with), compete with the Company anywhere within the Territory by providing management or consulting services similar to
those you provided to the Company with respect to any consumer finance products provided over the Internet or through storefronts or any services related to such products to the extent any of such consumer finance products or related services
consist of, facilitate, support, or relate to, consumer finance products that carry an effective total cost of credit of greater than 36% per annum or any services related to any such products (“Consumer Finance Products and
Services”); provided, however, Consumer Finance Products and Services do not include any e-commerce activities or business analytic activities that do not relate to, facilitate or support any Consumer Finance Products and Services. For purposes
of this Agreement, the term “Territory” will mean any territory in which the Company offers Consumer Finance Products and Services on the Severance Date, plus any additional territory into which the Company has actively and directly sought
to expand during the 12-month period preceding the Severance Date in which you were involved. 

  
 5 

	(14)	You agree that, for 24 months after your Severance Date, you will not, on your own behalf or on behalf of any other person or entity, solicit, initiate contact, call
upon, initiate communication with or attempt to initiate communication with any customer or client of the Company or any representative of any customer or client of the Company, with a view to providing Company Products and Services to such clients
or customers; provided, the restrictions set forth in this provision will apply only to customers or clients of the Company with whom you had contact within the 12-month period prior to your Severance Date. 

 

	(15)	You acknowledge and agree that the provisions hereof relating to confidential and proprietary information, nonsolicitation of employees and agents, noncompetition, and
nonsolicitation of customers and clients (collectively, the “Covenants”) are reasonable and valid and do not impose limitations greater than those that are necessary to protect the business interests and confidential information of the
Company. You expressly agree and consent that, and represent and warrant to the Company that, the Covenants will not prevent or unreasonably restrict or interfere with your ability to make a fair living. You agree that the invalidity or
unenforceability of any one or more of the Covenants, or any part thereof, will not affect the validity or enforceability of the other Covenants, all of which are inserted conditionally on their being valid in law. In case any one or more of the
Covenants contained in this Agreement shall be held to be invalid, illegal or unenforceable in any respect for any reason, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or unenforceable Covenant had never been contained herein. You also agree that in the event any court of appropriate jurisdiction should determine that any portion or provision of any Covenant is invalid,
unenforceable or excessively restrictive, you and the Company will request such court to rewrite such Covenant in order to make such Covenant legal, enforceable and acceptable to such court to the maximum extent permissible under applicable law. You
agree that the Covenants contained in this Agreement are severable and divisible; that none of such Covenants depends on any other Covenant for its enforceability; that such Covenants constitute enforceable obligations between you and the Company;
that each such Covenant will be construed as an agreement independent of any other Covenant of this Agreement; and that the existence of any claim or cause of action by one party to this Agreement against the other party to this Agreement, whether
predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by any party to this Agreement of any such Covenant. 

 You agree that any remedy at law for any breach of the Covenants will be inadequate and that the Company will be entitled to apply for injunctive relief in addition to any other remedy the Company might
have under this Agreement or applicable law. 
 You acknowledge that, in addition to seeking injunctive relief, the Company may
cease all payments and reimbursements due to you under this Agreement and may bring a cause of action against you for any and all losses, liabilities, damages, deficiencies, costs (including, without limitation, court costs), and expenses
(including, without limitation, reasonable attorneys’ fees), incurred by the Company and arising out of or due to any breach of any of the Covenants. In addition, you agree that either party may bring an action against the other for breach of
any other provision of this Agreement. 

  
 6 

	(16)	This Agreement is intended to comply with the requirements of Section 409A and guidance issued thereunder (with some of the severance pay and benefits exempt from
Section 409A and the remainder in compliance with Section 409A) and shall be construed accordingly. Any payments or distributions payable to you under this Agreement upon your “separation from service” (as defined for purposes of
Section 409A) of amounts classified as “nonqualified deferred compensation” for purposes of Section 409A, and not exempt from Section 409A, shall in no event be made or commence until 6 months after the date of such
separation from service. Each payment under this Agreement (whether of cash, property or benefits) shall be treated as a separate payment for purposes of Section 409A. With respect to payments or benefits provided under this Agreement that are
reimbursements or in-kind payments that are not exempt from Section 409A, the amount of such payment(s) or benefit(s) during any calendar year shall not affect payment(s) or benefit(s) provided in any other calendar year, and the right to any
payment(s) or benefit(s) shall not be subject to liquidation or exchange for another benefit. Any reimbursements under this Agreement shall be paid as soon as practicable but no later than 90 days after you submit evidence of such expenses to the
Company (which payment date shall in no event be later than the last day of the calendar year following the calendar year in which the expense was incurred). 

 

	(17)	 In consideration of the above, including the mutual agreements of the parties hereto and the payments to be made to you hereunder, the receipt and
sufficiency of which are hereby acknowledged and confessed by you, you (on behalf of yourself and your successors and assigns) voluntarily and knowingly, fully, completely, and forever release the Company and its officers, directors, employees,
stockholders, and legal successors and assigns of the Company (collectively, “Released Parties”) from all claims, charges, actions and causes of action, whether now known or unknown, which you now have, 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 at any time up to and including the date you sign this Agreement, including, but not limited to, any claims
for claims based upon or arising under: express or implied contract; wages or benefits owed; covenants of fair dealing and good faith; interference with contract; option grants; wrongful discharge or termination; employment discrimination of any
type; the Texas Commission on Human Rights Act (“TCHRA”), and any similar statute in other states; the Texas Payday Act, the Texas Labor Code, and any similar statute in other states; any claim of employment discrimination based on
exercising rights under worker’s compensation laws; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq. (prohibiting discrimination on account of race, sex, national origin or religion); the Age
Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621, et seq. (prohibiting discrimination on account of age) (“ADEA”); the Older Workers Benefit Protection Act (“OWBPA”); the Civil Rights Act of
1991; the Civil Rights Acts of 1866 and 1871, 42 U.S.C. §§ 1981; Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq. (ERISA); the Americans with Disabilities Act of 1990, as amended, 42 U.S.C.
§§ 12101-12213 (ADA); the Family and Medical Leave Act, 29 U.S.C. § 2601, et seq. (FMLA); the Fair Labor Standards Act, 29 U.S.C. § 201, et seq. (FLSA); the Workers’ Adjustment and Retraining Notification
Act (“WARN”); any and all state and federal statutes which prohibit discrimination or retaliation in employment based on any protected status (including, without limitation, national origin, race, sex, sexual orientation, disability,
workers’ compensation status, or other protected category) and amendments to these statutes; the common law, negligence, gross negligence or any other tort claim, including

  
 7 

	 	
but not limited to, intentional infliction of emotional distress, negligent infliction of emotional distress, negligence, defamation, assault, battery, invasion of privacy, false imprisonment,
breach of contract, interference with a contract, interference with contractual relations, civil conspiracy, duress, promissory or equitable estoppel, defamation, fraud, misrepresentation, wrongful termination, violation of public policy,
retaliation, personal injury, breach of fiduciary duty, loss of consortium, bad faith, and any federal, state or local laws, statutes, regulations, ordinances, or other similar provisions. You understand that you are not releasing any claims that
arise after the date you sign this Agreement. 

 You understand that following the 7-day revocation period, this
release will be final and binding. You promise that you, on behalf of yourself, any representative of yours and any person whose claims derive from yours, will not pursue any claim that you have settled by this release or file any lawsuit or other
legal proceeding to assert any such claims and you understand and agree that you will not be entitled hereafter to pursue any claims arising out of any alleged violation of your rights while employed by the Company, including, but not limited to,
claims for back pay, losses or other damages. If you break any of the promises set forth in the previous sentence, you agree to pay all of the Company’s costs and expenses (including reasonable attorneys’ fees) related to the defense of
any claims except for claims arising under the OWBPA and the ADEA. Although you are releasing claims that you may have under the OWBPA and ADEA, you understand that you may challenge the knowing and voluntary nature of this release before a court,
the Equal Employment Opportunity Commission (“EEOC”), or any other federal, state or local agency charged with the enforcement of any employment laws. You also understand that nothing in this release prevents you from filing a charge or
complaint with or from participating in an investigation or proceeding conducted by the EEOC or any other federal, state or local agency charged with the enforcement of any employment laws. You understand, however, that if you pursue a claim against
the Company under the OWBPA and/or the ADEA to challenge the validity of this release and prevail on the merits of an ADEA claim, a court has the discretion to determine whether the Company is entitled to restitution, recoupment, or set off
(hereinafter “reduction”) against a monetary award obtained by you in the court proceeding. A reduction never can exceed the amount you recover, or the consideration you received for signing this release, whichever is less. Furthermore,
you give up your right to individual damages or remedies in connection with any administrative or judicial proceeding with respect to your employment or termination of employment with the Company. You also recognize that the Company may be entitled
to recover costs and attorneys’ fees incurred by the Company as specifically authorized under applicable law. 
  

	(18)	You on behalf of yourself, any representative of yours, and any person whose claims derive from yours, promises that no lawsuit or claim has been or will be filed based
on any claims released by this Agreement. If such a lawsuit or claim has been or is filed, you agree to withdraw or dismiss such lawsuit or claims upon signing this Agreement; otherwise, you agree to pay all attorneys’ fees and court costs
incurred by the Company or any other released party in defending against the lawsuit, claim or charge, along with other appropriate damages. 

  

	(19)	This Agreement is not an admission on the Company’s part of any liability whatsoever or that it in any way has acted improperly or unlawfully. The Company
specifically denies any liability or improper or unlawful conduct. 

  
 8 

	(20)	If any claims are made by or against the Company which arise out of or relate to your employment with the Company, you agree that you will cooperate fully in the
investigation and defense of such claims, including but not limited to preparation for and providing truthful testimony and in such event, to the extent allowed by law, the Company will reimburse you for your out-of-pocket expenses associated
therewith and will compensate you for your documented time spent in connection therewith at a commercially reasonable hourly rate; provided, however, no such reimbursement or compensation will be payable if the action in question alleges or involves
any fraud, bad faith or intentional misconduct on your part during your employment with the Company or if the reimbursements or compensation could, by the nature of the particular action in question, jeopardize the Company’s position in such
action. Any reimbursements or compensation paid to you pursuant to this paragraph shall be subject to the requirements of Section 409(A). 

  

	(21)	This Agreement is intended by you and the Company to be a legally valid and binding agreement. If any provision of this Agreement is found to be illegal, invalid or
unenforceable, such term or provision shall be severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision were never a part hereof; the remaining provisions hereof shall remain in full force
and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance; and in lieu of such illegal, invalid or unenforceable provision, there shall be added as part of this Agreement, a provision as similar in
its terms to such illegal, invalid or unenforceable provision, as may be possible and be legal, valid or enforceable. 

  

	(22)	This Agreement shall be construed and enforced in accordance with the laws of the State of Illinois, United States, and venue for any action brought in connection with
this Agreement shall lie in Cook County, Illinois, U.S.A. 

 The Company wishes you success in your future
endeavors. 
  

							
	Very truly yours,
	
	Enova Financial Holdings, LLC
		
	By:	 	Enova Online Services, Inc., its sole member
			
		 	By:	 	Enova International, Inc., its sole shareholder
				
		 		 	By:	 	/s/ Daniel R. Feehan
		 		 		 	Daniel R. Feehan,
		 		 		 	Executive Chairman of the Board

  
 9 

   
 I have read the foregoing Agreement, agree to its terms, and acknowledge receipt of a copy of same, and the sufficiency of the payments recited in it. I understand and acknowledge that I should seek
counsel from an attorney with regard to all aspects of this Agreement (including, but not limited to the release contained in it) and that I have had a sufficient opportunity to do so. I hereby voluntarily enter into this Agreement effective as of
January 29, 2013, with full knowledge of its meaning and significance. I acknowledge and warrant that I have been given a period of at least 21 days within which to consider this Agreement prior to executing it, if I so desire. This Agreement
may be revoked by me for a period of 7 days following its execution. To be effective, the revocation must be in writing and received by the Company by the expiration of this seven-day period. 

 

	
	/s/ Timothy S. Ho
	Timothy S. Ho
	
	January 29, 2013
	Date

  
 10 

 EXHIBIT A 

Release Agreement 
 In consideration of the severance pay and benefits payable to me pursuant to the terms of the letter agreement, dated January 29, 2013, regarding “Continued Employment and Separation
Agreement” (the “Agreement”), I, Timothy S. Ho, do hereby agree to the following release as set forth in this “Release Agreement”: 
 On behalf of myself and my successors and assigns), I voluntarily and knowingly, fully, completely, and forever release Enova Financial Holdings, LLC (“Enova”), Cash America International, Inc.
(“CAI”), Enova International, Inc., and all of their affiliates and subsidiaries (collectively, the “Company”) and the Company’s officers, directors, employees, stockholders, and legal successors and assigns (collectively,
“Released Parties”) from all claims, charges, actions and causes of action, whether now known or unknown, which I now have, 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 at any time up to and including the date I sign this Release Agreement, including, but not limited to, any claims for claims based upon or arising under: express or implied contract;
wages or benefits owed; covenants of fair dealing and good faith; interference with contract; option grants; wrongful discharge or termination; employment discrimination of any type; the Texas Commission on Human Rights Act (“TCHRA”), and
any similar statute in other states; the Texas Payday Act, the Texas Labor Code, and any similar statute in other states; any claim of employment discrimination based on exercising rights under worker’s compensation laws; Title VII of the Civil
Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq. (prohibiting discrimination on account of race, sex, national origin or religion); the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621, et
seq. (prohibiting discrimination on account of age) (“ADEA”); the Older Workers Benefit Protection Act (“OWBPA”); the Civil Rights Act of 1991; the Civil Rights Acts of 1866 and 1871, 42 U.S.C. §§ 1981; Employee
Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq. (ERISA); the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101-12213 (ADA); the Family and Medical Leave Act, 29 U.S.C.
§ 2601, et seq. (FMLA); the Fair Labor Standards Act, 29 U.S.C. § 201, et seq. (FLSA); the Workers’ Adjustment and Retraining Notification Act (“WARN”); any and all state and federal statutes which
prohibit discrimination or retaliation in employment based on any protected status (including, without limitation, national origin, race, sex, sexual orientation, disability, workers’ compensation status, or other protected category) and
amendments to these statutes; the common law, negligence, gross negligence or any other tort claim, including but not limited to, intentional infliction of emotional distress, negligent infliction of emotional distress, negligence, defamation,
assault, battery, invasion of privacy, false imprisonment, breach of contract, interference with a contract, interference with contractual relations, civil conspiracy, duress, promissory or equitable estoppel, defamation, fraud, misrepresentation,
wrongful termination, violation of public policy, retaliation, personal injury, breach of fiduciary duty, loss of consortium, bad faith, and any federal, state or local laws, statutes, regulations, ordinances, or other similar provisions. I
understand that I am not releasing any claims that arise after the date I sign this Release Agreement. 

  
 11 

 I understand that I must sign this Release Agreement on March 29, 2013, which
date is more than 21 days after the date that this Release Agreement was delivered to me. If I elect to sign this Release Agreement and return an original of it to the Company, I will have 7 days after I deliver the original of this Release
Agreement to the Company during which I may revoke my acceptance. If I choose to revoke my acceptance of this Release Agreement, I must notify the Company in writing, and the Company must receive the notification by the expiration of the 7-day
period. If I do not sign this Release Agreement on the date specified above, or if I revoke my acceptance of this Release Agreement during the revocation period described above, the Agreement will be of no further force or effect, and I will not be
entitled to any of the payments or benefits described therein. The signed Release Agreement and any revocation thereof should be sent via US mail or overnight courier to Cash America International, Inc.’s home office address in Fort Worth,
Texas, with attention to the Company’s General Counsel, or via telecopy to the Company’s General Counsel at 817.570.1647 (followed by mailing or overnighting the original to the address above). 

I promise that I, on behalf of myself, any representative or mine and any person whose claims derive from mine, will not pursue any claim
that I have settled by this release or file any lawsuit or other legal proceeding to assert any such claims and I understand and agree that I will not be entitled hereafter to pursue any claims arising out of any alleged violation of my rights while
employed by the Company, including, but not limited to, claims for back pay, losses or other damages. If I break any of the promises set forth in the previous sentence, I agree to pay all of the Company’s costs and expenses (including
reasonable attorneys’ fees) related to the defense of any claims except for claims arising under the OWBPA and the ADEA. Although I am releasing claims that I may have under the OWBPA and ADEA, I understand that I may challenge the knowing and
voluntary nature of this release before a court, the Equal Employment Opportunity Commission (“EEOC”), or any other federal, state or local agency charged with the enforcement of any employment laws. I also understand that nothing in this
release prevents me from filing a charge or complaint with or from participating in an investigation or proceeding conducted by the EEOC or any other federal, state or local agency charged with the enforcement of any employment laws. I understand,
however, that if I pursue a claim against the Company under the OWBPA and/or the ADEA to challenge the validity of this release and prevail on the merits of an ADEA claim, a court has the discretion to determine whether the Company is entitled to
restitution, recoupment, or set off (hereinafter “reduction”) against a monetary award obtained by me in the court proceeding. A reduction never can exceed the amount I recover, or the consideration I received for signing this release,
whichever is less. Furthermore, I give up my right to individual damages or remedies in connection with any administrative or judicial proceeding with respect to my employment or termination of employment with the Company. I also recognize that the
Company may be entitled to recover costs and attorneys’ fees incurred by the Company as specifically authorized under applicable law. 
 I, on behalf of myself, any representative of mine and any person whose claims derive from mine, promise that no lawsuit or claim has been or will be filed based on any claims released by this Release
Agreement or the Agreement. If such a lawsuit or claim has been or is filed, I agree to withdraw or dismiss such lawsuit or claims upon signing this Release Agreement; otherwise, I agree to pay all attorneys’ fees and court costs incurred by
the Company or any other released party in defending against the lawsuit, claim or charge, along with other appropriate damages. 
 This Release Agreement is not an admission on the Company’s part of any liability whatsoever or that it in any way has acted improperly or unlawfully. The Company specifically denies any liability or
improper or unlawful conduct. 

  
 12 

 This Release Agreement is intended by me and the Company to be a legally valid and binding
agreement. If any provision of this Release Agreement is found to be illegal, invalid or unenforceable, such term or provision shall be severable, and this Release Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision were never a part hereof; the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance; and in lieu of such illegal,
invalid or unenforceable provision, there shall be added as part of this Release Agreement, a provision as similar in its terms to such illegal, invalid or unenforceable provision, as may be possible and be legal, valid or enforceable. 

This Release Agreement shall be construed and enforced in accordance with the laws of the State of Illinois, United States, and venue for
any action brought in connection with this Release Agreement shall lie in Cook County, Illinois, U.S.A. 
  

	
	Timothy S. Ho
	
	
	Date

  
 13mPhase Technologies, Inc. - Exhibit 10.71 - Filed by newsfilecorp.com

Exhibit 10.71 

THIS CONVERTIBLE NOTE AND THE SECURITIES ISSUABLE UPON
CONVERSION OF THIS CONVERTIBLE NOTE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE
SECURITIES LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES
LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS. 

CONVERTIBLE NOTE
OF 

  mPHASE TECHNOLOGIES, INC. 

	$25,000.00 	Made as of August 10, 2011

          mPhase
Technologies, Inc., a New Jersey corporation (the “Company”),
hereby promises to pay to Jay O. Wright (the “Holder”), or his
registered assigns, six (6) months from the date of this Note (i.e. February 10,
2012) (the “Maturity Date”), the principal sum of $25,000.00 (the
“Principal Amount”), or such lesser amount as shall then equal the
outstanding Principal Amount hereunder, together with interest on the unpaid
principal balance equal to one percent (1.00%) per month prior to maturity, and
upon default or after maturity two percent (2.00%) per month, in both cases
compounded monthly, computed on the basis of the actual number of days elapsed
and a year of 365 days from the date of this Convertible Note unless the
Principal Amount and all interest accrued thereon and all other amounts owed
hereunder are converted, as provided in Section 6 hereof. All payments received
by the Holder hereunder will be applied first to costs of collection, if any,
then to interest and the balance to principal. Principal and interest shall be
payable in lawful money of the United States of America. 

          This
Convertible Note may be prepaid in whole at any time by the Company at a price
equal to 105% of the amount of principal and accrued interest then outstanding
upon ten (10) days actual notice to the Holder.

          The
Company has issued and herewith delivers to the Holder, in consideration of his
purchase of this Note, a warrant to purchase 3,676,471 shares of its Common
Stock at an exercise price equal to the Conversion Price, as set forth in
Section 14 hereof ("Warrant"). 

          The
following is a statement of the rights of the Holder and the conditions to which
this Convertible Note is subject, and to which the Holder hereof, by the
acceptance of this Convertible Note, agrees: 

          1.    
    DEFINITIONS. The following
definitions shall apply for all purposes of this Convertible Note: 

          
           1.1.      “Closing”
means the date on which the purchase and sale of the Convertible Note occurred,
or August 10, 2011. 

                
     1.2.     
“Company” means the “Company” as defined above and
includes any corporation which shall succeed to or assume the obligations of the
Company under this Convertible Note. 

                 
     1.3.      “Common
Stock” means the shares of common stock of the Company.

                 
     1.4.      “Conversion
Price” means $0.0068 per share of Common Stock. 

                 
     1.5.      “Conversion
Stock” means the Common Stock into which any unpaid Principal Amount and
the accrued and unpaid interest due under this Convertible Note convert. The
number of shares of Conversion Stock are subject to adjustment as provided
herein. 

                  
    1.6.      “Convertible
Note” means this Convertible Note.

                 
     1.7.      “Holder”
means any person who shall at the time be the registered holder of this
Convertible Note. 

          2.       
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The
Company hereby represents and warrants to Holder that the statements in the
following paragraphs of this Section 2 are all true and complete as of
immediately prior to the Closing: 

    
                2.1.      Organization,
Good Standing and Qualification. The Company has been duly
organized, and is validly existing and in good standing, under the laws of the
State of New Jersey. The Company has the power and authority to own and operate
its properties and assets and to carry on its business as currently conducted
and as presently proposed to be conducted. 

        
            2.2.     
Due Authorization. All corporate action on the part of the
Company’s directors and stockholders necessary for the authorization, execution,
delivery of, and the performance of all obligations of the Company under the
Convertible Note has been taken or will be taken prior to the Closing, and the
Convertible Note when executed and delivered, will constitute, valid and legally
binding obligations of the Company, enforceable in accordance with their
respective terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization or other laws of general application relating to or
affecting the enforcement of creditor’s rights generally and (ii) the effect of
rules of law governing the availability of equitable remedies. 

           
         2.3.      Corporate
Power. The Company has the power and authority to execute and
deliver this Convertible Note to be purchased by the Holder hereunder, to issue
the Convertible Note and to carry out and perform all its obligations under the
Convertible Note. 

          
          2.4.      Valid
Issuance. The Convertible Note and the Conversion Stock issued upon
conversion of the Convertible Note, when issued, sold and delivered in
accordance with the terms of this Convertible Note for the consideration
provided for herein, will be duly and validly issued, fully paid and
nonassessable. 

           
         2.5.      Securities
Law Compliance. Based in part on the representations made by the
Holder in Section 3 hereof, the offer and sale of the Convertible Note solely to
the Holder in accordance with the terms herein are exempt from the registration
and prospectus delivery requirements of the U.S. Securities Act of 1933, as
amended (the “1933 Act”) and the securities registration and
qualification requirements of the currently effective provisions of the
securities laws of the states in which the Holder is a resident based upon the
address set forth herein. 

             
         2.6.     
  Use of Proceeds. The Proceeds of the Note will be used for working
  capital of EIP and to pay brokerage fees to Source Capital Group.

          3.      
 REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF
HOLDER. Holder hereby represents and warrants to, and agrees with,
the Company, that: 

       
             3.1.      Authorization.
This Convertible Note constitutes such Holder’s valid and legally binding
obligation, enforceable in accordance with its terms except as may be limited by
(i) applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the enforcement of creditors’ rights
generally and (ii) the effect of rules of law governing the availability of
equitable remedies. Holder represents that such Holder has full power and
authority to enter into this Convertible Note. 

       
             3.2.      Purchase
for Own Account. The Convertible Note and the shares of the
Company’s Common Stock issuable upon conversion of this Convertible Note
(collectively, the “Securities”) are being acquired for investment
for Holder’s own account, not as a nominee or agent, and not with a view to the
public resale or distribution thereof within the meaning of the 1933 Act, and
such Holder has no present intention of selling, granting any participation in,
or otherwise distributing the same. 

      
              3.3.     
Disclosure of Information. Such Holder has received or has had
full access to all the information it considers necessary or appropriate to make
an informed investment decision with respect to the Securities. Such Holder
further has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the Securities and
to obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to such Holder or to which such
Holder had access. The foregoing, however, does not in any way limit or modify
the representations and warranties made by the Company in Section 2. 

                
    3.4.      Investment
Experience. Such Holder understands that the purchase of the
Securities is highly speculative and involves substantial risk. Such Holder has
such knowledge and experience in financial and business matters that
it is capable of evaluating the merits and risks of its investment in the
Company and has the capacity to protect its own interests and the ability to
bear the economic risk of its investment. 

                    
3.5.      Restricted
Securities. Such Holder understands that the Securities are
characterized as “restricted securities” under the 1933 Act and Rule 144
promulgated thereunder inasmuch as they are being acquired from the Company in a
transaction not involving a public offering, and that under the 1933 Act and
applicable regulations thereunder such securities may be resold without
registration under the 1933 Act only in certain limited circumstances. In this
connection, such Holder is familiar with Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the 1933 Act.

          4.      
 FURTHER LIMITATIONS ON DISPOSITION. Without in any
way limiting the representations set forth above, such Holder further agrees not
to make any disposition of all or any portion of the Securities unless and
until: 

                    
4.1.      there is then in effect
a registration statement under the 1933 Act covering such proposed disposition
and such disposition is made in accordance with such registration statement; or

                    
4.2.      such Holder
shall have notified the Company of the proposed disposition, and shall have
furnished the Company with a statement of the circumstances surrounding the
proposed disposition, and, at the expense of such Holder or its transferee, with
an opinion of counsel, reasonably satisfactory to the Company, that such
disposition will not require registration of such securities under the 1933 Act.

Notwithstanding the provisions of paragraphs (a) and (b) above,
no such registration statement or opinion of counsel shall be required: (i) for
any transfer of any Convertible Note or Conversion Stock in compliance with Rule
144 or Rule 144A; (ii) for any transfer of any Convertible Note or Conversion
Stock by a Holder that is a partnership or a corporation to (A) a partner of
such partnership or shareholder of such corporation, (B) a controlled affiliate
of such partnership or corporation, (C) a retired partner of such partnership
who retires after the date hereof, (D) the estate of any such partner or
shareholder; or (iii) for the transfer by gift, will or in testate succession by
any Holder to his or her spouse or lineal descendants or ancestors or any trust
for any of the foregoing; provided that in each of the foregoing cases the
transferee agrees in writing to be subject to the terms of this Section 4 to the
same extent as if the transferee were an original Holder hereunder. The Company
acknowledges and agrees that for purpose of calculating the Rule 144 holding
period, that any period of Holder holding its investment in the form of this
Note shall be “tacked” to the period that Holder holds Conversion Stock. 

          5.      LEGENDS.
Such Holder understands and agrees that the certificates evidencing the
Securities will bear legends substantially similar to those set forth below:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
THE SECURITIES LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT
THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. 

The legend set forth above shall be removed by the Company from
any certificate evidencing the Securities upon delivery to the Company of an
opinion of counsel, reasonably satisfactory to the Company, that a registration
statement under the 1933 Act is at that time in effect with respect to the
legended security or that such security can be freely transferred in a public
sale (other than pursuant to Rule 144 or Rule 145 under the 1933 Act) without
such a registration statement being in effect and that such transfer will not
jeopardize the exemption or exemptions from registration pursuant to which the
Company issued the Securities. 

          6.       
CONVERSION. 

          
          6.1.      Optional
Conversion. Upon the request of the Holder, this Convertible Note
may be converted, in whole or in part, into shares of Common Stock at the
Conversion Price. 

            
        6.2.      Issuance
of Conversion Stock. Within two (2) business days after conversion
of this Convertible Note in whole or in part, the Company at its expense will
cause to be issued in the name of and delivered to the Holder, a certificate or
certificates for the Common Stock to which the Holder shall be entitled upon
such conversion or, at the Holder’s request and if eligible under Rule 144,
shares shall be DWAC’d to a brokerage account designated by the Holder, together
with any other securities and property to which the Holder is entitled upon such
conversion under the terms of this Convertible Note. If upon any conversion of
this Convertible Note (and all other Convertible Notes held by the same Holder,
after aggregating all such conversions), a fraction of a share of Common Stock
would otherwise result, then in lieu of such fractional share of Common Stock
the Company will pay the cash value of that fractional share, calculated on the
basis of the applicable Conversion Price. 

          7.       
DEFAULT; ACCELERATION OF OBLIGATION. The Company will be
deemed to be in default under this Convertible Note and the outstanding unpaid
principal balance of this Convertible Note, together with all interest accrued
thereon, will immediately become due and payable in full, without the need for
any further action on the part of Holder, upon the occurrence of any of the
following events (each an “Event of Default”): (a) failure to make
payment of principal and interest when due under this Convertible Note; (b) upon
the filing by or against the Company of any voluntary or involuntary petition in
bankruptcy or any petition for relief under the federal bankruptcy code or any other state or
federal law for the relief of debtors; provided, however, with respect to an
involuntary petition in bankruptcy, such petition has not been dismissed within
ninety (90) days after the filing of such petition; (c) upon the execution by
the Company of an assignment for the benefit of creditors or the appointment of
a receiver, custodian, trustee or similar party to take possession of the
Company’s assets or property; (d) if the Company ceases to trade on the OTC
Bulletin Board, Nasdaq or the American Stock Exchange; or (e) the breach of any
provision of this Convertible Note. 

          8.       
REMEDIES ON DEFAULT; ACCELERATION; ADJUSTMENTS. Upon any
Event of Default, the Holder will have, in addition to its rights and remedies
under this Convertible Note, full recourse against any real, personal, tangible
or intangible assets of the Company, and may pursue any legal or equitable
remedies that are available to Holder, and may declare the entire unpaid
principal amount of this Convertible Note and all unpaid accrued interest under
this Convertible Note to be immediately due and payable in full. 

            
        8.1.     
Adjustment Provisions. The number and character of shares of
Conversion Stock issuable upon conversion of this Convertible Note (or any
shares of stock or other securities or property at the time receivable or
issuable upon conversion of this Convertible Note) and the Conversion Price
therefor are subject to adjustment upon occurrence of the following events
between the date this Convertible Note is issued and the date it is converted.
If there is an event of default under this Convertible Note, then the Conversion
Price shall be immediately reduced to $.0025 per share. 

            
        8.2.     
Adjustment for Stock Splits, Stock Dividends, Recapitalizations,
etc. If a stock dividend, stock split, reclassification,
recapitalization or other similar event affecting the number of outstanding
shares of Conversion Stock occurs other than a reverse stock split, the
Conversion Price of this Convertible Note and the number of shares of Conversion
Stock issuable upon conversion of this Convertible Note (or any shares of stock
or other securities at the time issuable upon conversion of this Convertible
Note) shall each be proportionally adjusted on a full-ratchet basis to reflect
any stock dividend, stock split, reverse stock split, reclassification,
recapitalization or other similar event affecting the number of outstanding
shares of Conversion Stock (or such other stock or securities). If a reverse
stock split occurs, a similar adjustment shall be made, provided however, that
if the closing bid stock price of the Company on the date that the reverse stock
split goes effective (the “New Price”) is more than 10% below the Conversion
Price after giving effect to the reverse stock split, then the Conversion Price
shall be reduced to that New Price. 

            
        8.3.      Adjustment
for Other Dividends and Distributions. In case the Company shall
make or issue, or shall fix a record date for the determination of eligible
holders entitled to receive, a dividend or other distribution payable with
respect to the Common Stock that is payable in (a) securities of the Company
(other than issuances with respect to which adjustment is made under Section 8),
or (b) assets (other than cash dividends paid or payable solely out of retained
earnings), then, and in each such case, the Holder, upon conversion of this
Convertible Note at any time after the consummation, effective date or record
date of such event, shall receive, in addition to the shares of Conversion Stock
issuable upon such exercise prior to such date, the securities or such other
assets of the Company to which the Holder would have been entitled upon such date if the Holder had converted this
Convertible Note immediately prior thereto (all subject to further adjustment as
provided in this Convertible Note). 

            
        8.4.      Adjustment
for Reorganization, Consolidation, Merger. In case of any
reorganization of the Company (or of any other entity the securities of which
are at the time receivable on the conversion of this Convertible Note), after
the date this Convertible Note, or in case, after such date, the Company (or any
such corporation) shall consolidate with or merge into another corporation or
convey all or substantially all of its assets to another corporation and then
distribute the proceeds to its interest holders, then, and in each such case,
the Holder, upon the conversion of this Convertible Note (as provided in Section
6) at any time after the consummation of such reorganization, consolidation,
merger or conveyance, shall be entitled to receive, in lieu of the Conversion
Stock or other securities and property receivable upon the conversion of this
Convertible Note prior to such consummation, the stock or other securities or
property to which the Holder would have been entitled upon the consummation of
such reorganization, consolidation, merger or conveyance if the Holder had
converted this Convertible Note immediately prior thereto, all subject to
further adjustment as provided in this Convertible Note, and the successor or
purchasing corporation in such reorganization, consolidation, merger or
conveyance (if other than the Company) shall duly execute and deliver to the
Holder a supplement hereto acknowledging such corporation’s obligations under
this Convertible Note; and in each such case, the terms of the Convertible Note
shall be applicable to the Common Stock or other securities or property
receivable upon the conversion of this Convertible Note after the consummation
of such reorganization, consolidation, merger or conveyance. 

          
          8.5.      Adjustment
for Dilutive Issuances. If the Company, at any time after the date
of this Convertible Note, shall issue any shares of Common Stock or securities
of the Company convertible into shares of Common Stock at a price per share of
Common Stock less than the Conversion Price in effect immediately prior to such
issuance, in any case other than an Excluded Issuance (as hereinafter defined)
(a “Dilutive Issuance”), then, and in each such case, the
Conversion Price shall be reduced to the effective per share price of the Common
Stock in connection with such additional issuance of securities. 

           9.       
NOTICE OF ADJUSTMENTS. The Company shall promptly give
written notice of each adjustment or readjustment of the Conversion Price or the
number of shares of Common Stock or other securities issuable upon conversion of
this Convertible Note. The notice shall describe the adjustment or readjustment
and show in reasonable detail the facts on which the adjustment or readjustment
is based. 

          10.      NO
CHANGE NECESSARY. The form of this Convertible Note need not be
changed because of any adjustment in the Conversion Price or in the number of
shares of Common Stock issuable upon its conversion. 

          11.      NO
RIGHTS OR LIABILITIES AS STOCKHOLDER. This Convertible Note does
not by itself entitle the Holder to any voting rights or other rights as a
stockholder of the Company. In the absence of conversion of this Convertible
Note, no provisions of this Convertible Note, and no enumeration herein of the
rights or privileges of the Holder, shall cause the Holder to be a stockholder
of the Company for any purpose.

          12.     
NO IMPAIRMENT. The Company will not, by amendment of its
Certificate of Incorporation, or through reorganization, consolidation, merger,
dissolution, issue or sale of securities, sale of assets or any other voluntary
action, willfully avoid or seek to avoid the observance or performance of any of
the terms of this Convertible Note, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder
under this Convertible Note against wrongful impairment. Without limiting the
generality of the foregoing, the Company will take all such action as may be
necessary or appropriate in order that the Company may duly and validly issue
fully paid and nonassessable shares of Common Stock upon the conversion of this
Convertible Note. 

          13.     
PREPAYMENT. The Company may at any time, without penalty, upon
at least five (5) days’ advance written notice to the Holder, prepay in whole or
in part the unpaid balance of this Convertible Note at a price equal to 105% of
par. All payments will first be applied to the repayment of accrued fees and
expenses, then to accrued interest until all then outstanding accrued interest
has been paid, and then shall be applied to the repayment of principal. The
Holder shall have the right to convert this Note prior to such prepayment. 

          14.     
WARRANT. Simultaneously with the execution of this Note, the
Company shall issue a Warrant in the form attached hereto as Exhibit
A, exercisable for five years to purchase 3,333,334 shares of Common
Stock at an exercise price equal to the Conversion Price. 

          15.     
WAIVERS. The Company and all endorsers of this Convertible Note
hereby waive notice, presentment, protest and notice of dishonor. 

          16.     
ATTORNEYS’ FEES. In the event any party is required to engage
the services of any attorneys for the purpose of enforcing this Convertible
Note, or any provision thereof, the prevailing party shall be entitled to
recover its reasonable expenses and costs in enforcing this Convertible Note,
including attorneys’ fees. 

          17.      TRANSFER.
Neither this Convertible Note nor any rights hereunder may be assigned, conveyed
or transferred, in whole or in part, without the Company’s prior written
consent, which the Company may withhold in its sole discretion. The rights and
obligations of the Company and the Holder under this Convertible Note shall be
binding upon and benefit their respective permitted successors, assigns, heirs,
administrators and transferees. 

          18.      GOVERNING
LAW; JURISDICTION; VENUE. This Convertible Note shall be governed
by and construed under the internal laws of the State of New Jersey as applied
to agreements among New Jersey residents entered into and to be performed
entirely within New Jersey, without reference to principles of conflict of laws
or choice of laws. Each of the parties irrevocably consents that any legal
action or proceeding for equitable relief which may be brought against any of
them pursuant to the terms of this Convertible Note which arise out of or are in
any manner related to this Convertible Note may be brought in the federal and
state courts of New Jersey. Each party by the execution and delivery of this
Convertible Note, expressly and irrevocably consents and submits to the personal
jurisdiction of any of such courts in any such action or proceeding. Each party
hereby expressly and irrevocably waives any claim or defense in any such action or proceeding based on any alleged lack of
personal jurisdiction, improper venue or forum non conveniens or any similar
basis. 

          19.     
HEADINGS. The headings and captions used in this Convertible
Note are used only for convenience and are not to be considered in construing or
interpreting this Convertible Note. All references in this Convertible Note to
sections and exhibits shall, unless otherwise provided, refer to sections hereof
and exhibits attached hereto, all of which exhibits are incorporated herein by
this reference. 

          20.     
NOTICES. Unless otherwise provided, any notice required or
permitted under this Convertible Note shall be given in writing and shall be
deemed effectively given (i) at the time of personal delivery, if delivery is in
person; (ii) one (1) business day after deposit with an express overnight
courier for United States deliveries, or two (2) business days after such
deposit for deliveries outside of the United States, with proof of delivery from
the courier requested; or (iii) three (3) business days after deposit in the
United States mail by certified mail (return receipt requested) for United
States deliveries when addressed to the party to be notified at the address
indicated for such party or, in the case of the Company, at 587 Connecticut
Avenue, Norwalk, CT 06854, or at such other address as any party or the Company
may designate by giving ten (10) days’ advance written notice to all other
parties, and if to the Holder, at 6701 Democracy Blvd., Suite 300, Bethesda, MD
20817. 

          21.      AMENDMENTS
AND WAIVERS. Any term of this Convertible Note may be amended, and
the observance of any term of this Convertible Note may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Company and the Holder. Any amendment or
waiver effected in accordance with this Section shall be binding upon the
Holder, each future holder of such securities, and the Company. 

          22.      SEVERABILITY.
If one or more provisions of this Convertible Note are held to be unenforceable
under applicable law, such provision(s) shall be excluded from this Convertible
Note and the balance of the Convertible Note shall be interpreted as if such
provision(s) were so excluded and shall be enforceable in accordance with its
terms. 

          23.      PIGGYBACK
REGISTRATION. If (but without any obligation to do so) the Company
elects to register (including for this purpose a registration effected by the
Company for shareholders) any of its stock or other securities under the
Securities Act in connection with a public offering of such securities solely
for cash other than (a) a registration on Form S-8 (or other similar successor
form) relating solely to the sale of securities to participants in a Company
stock plan or to other compensatory arrangements to the extent includable on
Form S-8 (or other similar successor form); or (b) a registration on Form S-4
(or other similar successor form), the Company shall, at least thirty (30) days
prior to finalizing a registration statement, promptly give the Holder written
notice of such registration. Upon the written request of each Holder given
within twenty (20) days after mailing of such notice by the Company in
accordance with Section 20, the Company shall cause to be registered under the
Securities Act all of the Conversion Stock not otherwise freely tradable under
Rule 144 of the Securities Act that such Holder thereof has requested to be
registered. In the event that the underwriters advise the Company that marketing
factors require a limitation of the number of shares to be underwritten, the
Company shall use its best commercial efforts to include as many shares of Conversion
Stock as is reasonable in the opinion of the underwriter. The Company shall have
no obligation under this Section 23 to make any offering of its securities, or
to complete an offering of its securities that it proposes to make, and shall
incur no liability to any Holder for its failure to do so. 

[Signature Page Next] 

          IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be signed
in its name as of the date first above written. 

MPHASE TECHNOLOGIES, INC.

	 	By: 	Ronald A. Durando 
	 	 	 
	 	Title: 	CEO 

Exhibit A 

FORM OF WARRANT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]