Document:

THIS DEBENTURE AND THE SHARES OF COMMON STOCK UNDERLYING THIS
                  DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
                  1933 OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
                  OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED
                  WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
                  SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS,
                  OR AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE
                  COMPANY, THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE
                  OR NOT REQUIRED.

                               IQ BIOMETRIX, INC.

                        10% SECURED CONVERTIBLE DEBENTURE
                                DUE APRIL 1, 2004

                                                       Not to Exceed $400,000.00

         FOR VALUE RECEIVED, IQ Biometrix, Inc., a Delaware corporation (the
"Company"), promises to pay to the Persons listed on Exhibit A attached hereto ,
or their registered assigns (each a "Holder"; collectively, the "Holders"), the
sum total listed in Exhibit A next to their names, not to exceed the aggregate
amount of Four Hundred and No/100 Dollars ($400,000.00) in lawful money of the
United States of America on or before the Maturity Date as defined herein, with
all Interest thereon as defined and specified herein. Unless otherwise expressly
stated herein, all Holders will rank equally with each other, and will be
treated pari passu with regard to all rights under this Debenture.

         1.       Interest.

                  1.1 Interest. This Debenture shall bear interest ("Interest")
at the rate of ten percent (10%) per annum from the Issue Date through the
Maturity Date. The Company shall pay such Interest, at the Holders' election
either in cash or shares of the Company's Common Stock on the Maturity Date;
however, if the Company elects to redeem the Debenture prior to the Maturity
Date, the Company shall pay the Interest due in the same manner upon redemption.

                  1.2 Origination Fee. The Company will also pay an origination
fee (the "Origination Fee") on the Issue Date, and again on the ninety (90) day
anniversary of the Issue Date, the one hundred-eighty (180) day anniversary of
the Issue Date and the two hundred-seventy (270) day anniversary of the Issue
Date, in the form of a warrant for shares of its Common Stock, $0.001 par value
per share ("Common Stock"), equal to that number of shares equal to twenty
percent (20%) of the then outstanding amount of principal plus Interest accrued
on the Debenture, calculated based on the price of twenty cents ($0.20) per
share. The warrant shall provide that Holder hereof shall be entitled to
subscribe for and purchase the underlying shares of Common Stock at the price of
twenty cents ($0.20) per share, subject to the provisions and upon the terms and
conditions set forth in the Warrant in the form attached hereto as Exhibit B. No
fractional shares of Common Stock will be issued in connection with the payment
of the Origination Fee, but the Company shall pay for any such fractional shares
in accordance with the terms of Section 3.7 hereof.

         2. Pre-Payments and Maturity Date. This Debenture shall be due and
payable in full, including all accrued Interest thereon, on April 1, 2004
("Maturity Date"). The Company may prepay all or part of this Debenture at any
time after issuance without penalty. Any partial prepayments shall be applied
first to outstanding interest, and then to outstanding principal.

         3.       Right to Purchase Additional Shares; Conversion Right.

                  3.1 Conversion Price. Upon Maturity (or, in the event of a
prepayment in full prior to the Maturity Date, upon such pre-payment date), but
no later than thirty (30) days thereafter, Holder, in his sole discretion, may
elect to purchase additional shares of Common Stock or convert outstanding
amounts under this Debenture into shares of Common Stock as follows:

                  (i) In the event the Company pays, on or before the Maturity
Date, any amount equal to or greater than 75% of the outstanding principal and
Interest due Holder under this Debenture, Holder may purchase that number of
shares of Common Stock equal to the quotient of 25% of the principal loaned to
the Company plus Interest under this Debenture divided by twenty cents ($0.20)
per share (the "Conversion Price"). For example, if a Holder loaned the Company
$200,000 under this Debenture, and the Company repaid the entire $200,000 plus
Interest on the Maturity Date, then such Holder would have the right to purchase
up to 275,000 shares of Common Stock ($220,000 * 25% = $55,000; and $55,000 /
$0.20 = 275,000).

                  (ii) In the event that the Company pays, on or before the
Maturity Date, any amount less than 75% of outstanding principal and accrued
Interest due Holder pursuant to this Debenture, Holder may convert any of the
remaining unpaid principal and/or accrued Interest into Common Stock at the
Conversion Price.

                  (iii) Holder may convert all (but not less than all) of the
outstanding principal and interest at any time prior to the Maturity Date upon
10 days advanced written notice to Company.

                  3.2 Adjustment Based Upon Stock Dividends, or Combination of
Shares. The Conversion Price shall be adjusted in the manner described in the
remainder of this Section 3.2 if the outstanding shares of the Common Stock
shall be subdivided into a greater number of shares or a dividend in Common
Stock shall be paid in respect of Common Stock, the Conversion Price in effect
immediately prior to such subdivision or at the record date of such dividend
shall simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend be proportionately reduced. If the
outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Conversion Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased.

                  3.3 Adjustment Based Upon Merger, Consolidation or
Recapitalization. In case of any consolidation or merger to which the Company is
a party (other than a merger in which the Company is the surviving entity and
which does not result in any reclassification of or change in the outstanding
Common Stock of the Company), or in case of any sale or conveyance to another
person, firm, or corporation of the property of the Company as an entirety or
substantially as an entirety, or in case of any capital reorganization or
reclassification of the Common Stock (other than a change in par value or a
subdivision or combination as provided for in Section 3.2 immediately above),
the Holder shall have the right to convert this Debenture into the kind and
amount of securities and property (including cash) receivable upon such
consolidation, merger, sale, conveyance, reorganization or reclassification by a
holder of the number of shares of Common Stock into which such Debenture might
have been converted immediately prior thereto.

                  3.4 Exercise of Conversion Privilege. The conversion privilege
provided for in this Section 3 shall be exercisable by the Holder by written
notice to the Company or its successor and the surrender of this Debenture in
exchange for the number of shares (or other securities and property, including
cash, in the event of an adjustment of the Conversion Price) into which this
Debenture is convertible based upon the Conversion Price. Conversion rights will
expire at the close of business on the business day that is thirty (30) days
after the latter of the Maturity Date or redemption date of this Debenture.

                 3.5 Corporate Status of Common Stock to be Issued. All Common
Stock (or other securities in the event of an adjustment of the Conversion
Price) which may be issued upon the conversion of this Debenture shall, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable.

                  3.6 Issuance of Certificate. Upon the conversion of this
Debenture, the Company shall in due course issue to the Holder a certificate or
certificates representing the number of shares of Common Stock (or other
securities in the event of an adjustment of the Conversion Price) to which the
conversion relates.

                  3.7 Fractional Shares. No fractional shares will be issued. In
lieu thereof, the Company will pay cash in the amount of $0.20 for each
fractional share that would otherwise have been issued.

         4. Status of Holder of Debenture. This Debenture shall not entitle the
Holder to any voting rights or other rights as a shareholder of the Company or
to any rights whatsoever except the rights herein expressed, and no dividends
shall be payable or accrue in respect of this Debenture or the securities
issuable upon the conversion hereof unless and until this Debenture shall be
converted. Upon the conversion of this Debenture, the Holder shall, to the
extent permitted by law, be deemed to be the holder of record of the shares of
Common Stock issuable upon such conversion, notwithstanding that the stock
transfer books of the Company shall then be closed or that the certificates
representing such shares of Common Stock shall not then be actually delivered.
Immediately upon the conversion of this Debenture, the rights of Holder under
this Debenture shall cease except with regard to the right to receive the shares
of Common Stock issuable upon conversion. As promptly as practicable after
either the conversion or redemption of this Debenture, Holder shall surrender
this Debenture marked "Cancelled."

         5. Reserve of Shares of Common Stock. The Company shall reserve out of
its authorized shares of Common Stock (and other securities in the event of an
adjustment of the Conversion Price) a number of shares sufficient to enable it
to comply with its obligation to issue shares of Common Stock (and other
securities in the event of an adjustment of the Conversion Price) upon the
conversion of this Debenture.

         6. Registration Rights.

                  6.1 Registration of Common Stock. The Company is currently
preparing form SB-2 for filing with the Securities and Exchange Commission. The
shares of Common Stock issuable in connection with this Debenture (including the
warrants) shall be included for registration in such filing. While acting in a
commercially reasonable fashion, the Company shall promptly after the Issue
Date, file such form for registration and use its commercially reasonable
efforts to effect such registration (including, without limitation, filing
post-effective amendments, appropriate qualifications under applicable blue sky
or other state securities laws, and appropriate compliance with the Securities
Act), of the Shares. The term "registration" shall refer to a registration
effected by preparing and filing a registration statement in compliance with the
Securities Act and applicable rules and regulations thereunder with the
Securities and Exchange Commission, and the declaration or ordering of the
effectiveness of such registration statement.

         6.2      Indemnification.

                  6.2.1 The Company shall protect, indemnify and hold the
Holder, and its officers, directors, stockholders, attorneys, accountants,
employees, Affiliates, successors and assigns, harmless from any and all
demands, claims, actions, causes of actions, lawsuits, proceedings,
investigations, judgments, losses, damages, injuries, liabilities, obligations,
expenses and costs (including costs of litigation and attorneys' fees), arising
out of or based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in or incorporated by reference into the Registration
Statement, any preliminary prospectus or final prospectus contained therein, or
any amendment or supplement thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or (iii) any material violation by the
Company of any rule or regulation promulgated under Act applicable to the
Company and relating to action or inaction by the Company in connection with any
such registration; provided, however, that the Company shall not be liable in
the case of (i) and (ii) above if and to the extent that the event otherwise
giving rise to indemnification arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
conformity with information furnished by a person otherwise entitled to
indemnification in writing specifically for use in the Registration Statement or
prospectus or information contained in a writing that has been expressly
approved by a person otherwise entitled to indemnification.

                 6.2.2 The Holder shall protect, indemnify and hold the Company
and its officers, directors, stockholders, attorneys, accountants, employees,
Affiliates, successors and assigns, harmless from any and all demands, claims,
actions, causes of actions, lawsuits, proceedings, investigations, judgments,
losses, damages, injuries, liabilities, obligations, expenses and costs
(including costs of litigation and attorneys' fees), arising out of or based
upon (i) any untrue statement or alleged untrue statement of any material fact
contained in or incorporated by reference into the Registration Statement, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereto, (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or (iii) any material violation by the Holder of any
rule or regulation promulgated under the Act applicable to the Holder and
relating to action or inaction by the Holder in connection with any such
registration; provided, however, that the Holder shall be liable in the case of
(i) and (ii) above only if and to the extent that the event giving rise to
indemnification arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in conformity with
information furnished by the Holder in writing specifically for use in the
Registration Statement or prospectus or information contained in a writing that
has been expressly approved by the Holder.

                  6.2.3 Promptly after receipt by an indemnified party under
this Section 6.2 of notice of the threat or commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against an
indemnifying party hereunder, notify each such indemnifying party in writing
thereof, but the omission so to notify an indemnifying party shall not relieve
it from any liability which it may have to any indemnified party to the extent
that the indemnifying party is not prejudice as a result thereof. In case any
such action shall be brought against any indemnified party and it shall notify
an indemnifying party of the commencement thereof, the indemnifying party shall
be entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party, and, after notice from the indemnifying party to such
indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party
under this Section 6.2.3 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so elected; provided,
however, that, if the defendants in any such action include both an indemnified
party and an indemnifying party and the related indemnified party shall have
reasonably concluded that there may be reasonable defenses available to it which
are different from or additional to those available to the indemnifying party or
if the interests of the indemnified party reasonably may be believed to conflict
with the interests of the indemnifying party, the indemnified party shall have
the right to select separate counsel and to assume such legal defenses and
otherwise to participate in the defense of such action, with the expenses and
fees of such separate counsel and other expenses related to such participation
to be reimbursed by the indemnifying party as incurred. No indemnifying party
shall be subject to any liability for any settlement made without consent, which
shall not be unreasonably withheld. No indemnifying party shall consent to the
entry of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability with respect to such claim or
litigation.

         7. Security. This Debenture and is secured by a security interest
granted pursuant to that certain Security Agreement between the Company and the
Holder. Reference is made to the Security Agreement for a description of the
additional terms and conditions upon which this Debenture was issued, the
rights, limitations of rights, obligations and duties of the Company and the
Holder all of which are incorporated herein by reference.

         8. Default. The Company shall perform its obligations and covenants
hereunder and in each and every other agreement between the Company and Holder
pertaining to the indebtedness evidenced hereby. The following provisions shall
apply upon failure of the Company so to perform.

                  8.1      Event of Default. Any of the  following  events shall
constitute an "Event of Default" hereunder:

                  8.1.1    Failure by the  Company to timely convert outstanding
principal  into Common Stock,  or to pay  principal,  or premium,  if any, of
any of the  Debentures  when due and payable on the Maturity Date;

                  8.1.2    Failure of the Company to timely  convert outstanding
Interest  into  Common Stock, or to pay Interest when due and payable on the
Maturity Date; or

                  8.1.3    Failure of the Company to perform any of the
covenants, conditions,  provisions
or agreements contained herein, or in any other agreement between the Company
and Holder pertaining to the indebtedness evidenced hereby, which failure
continues for a period of thirty (30) days after written notice of default has
been given to the Company by a Majority in Interest of the Holders; provided,
however, that if the nature of the Company's obligation is such that more than
thirty (30) days are required for performance, then an Event of Default shall
not occur if the Company commences performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion; or

                           8.1.4    The  entry of an order  for  relief  under
Federal  Bankruptcy  Code as to the
Company or entry of any order appointing a receiver or trustee for the Company
or approving a petition in reorganization or other similar relief under
bankruptcy or similar laws in the United States of America or any other
competent jurisdiction, and if such order, if involuntary, is not satisfied or
withdrawn within sixty (60) days after entry thereof; or the filing of a
petition by the Company seeking any of the foregoing, or consenting thereto; or
the filing of a petition to take advantage of any debtor's act; or making a
general assignment for the benefit of creditors; or admitting in writing
inability to pay debts as they mature.

         8.2 Acceleration. Upon any Event of Default (in addition to any other
rights or remedies provided for under this Debenture), at the option of a
Majority in Interest of the Holders then outstanding, all sums evidenced hereby,
including all principal, premium, if any, accrued but unpaid Interest, fees and
all other amounts due hereunder, including the Origination Fee, shall become
immediately due and payable. If an Event of Default in the payment of principal
or Interest should occur and be continuing with respect to the Debenture, any
one or more holders of the Debentures then outstanding may declare the principal
of the Debentures to be immediately due and payable. In the Event of a Default
due to a breach of any other covenant or term, Holders representing twenty-five
percent (25%) of the principal amount of the Debentures may take action to
accelerate the Debentures. If an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company or any Subsidiary occurs
and is continuing, the principal of and premium, if any, and accrued Interest on
all the Debentures will become and be immediately due and payable without any
declaration or other act on the part of any Holders of the Debentures. Under
certain circumstances, the Holders of a Majority in Interest may rescind any
such acceleration with respect to the Debentures and its consequences.

         8.3 Notice by Company. Upon the happening of any Event of Default
specified in this paragraph that is not cured within the respective periods
prescribed above, the Company will give prompt written notice thereof to the
Holder of this Debenture.

         8.4 No Waiver. Failure of the Holder to exercise any right or remedy
hereunder shall not constitute a waiver of the right to exercise the same in the
event of any subsequent Event of Default, or in the event of continuance of any
existing Event of Default after demand or performance thereof.

         8.5 Pursuit of any Remedy. Except for an Event of Default under
Sections 8.1.1 or 8.1.2 hereunder, no Holder of a Debenture may pursue any
remedy under the Debentures unless (i) the Company shall have received written
notice of a continuing Event of Default from the Holder and (ii) the Company
shall have received a request from a Majority in Interest of the Holders to
pursue such remedy. A Majority in Interest of the Holders have the right to
direct the time, method and place of conducting any proceeding for exercising
any remedy available to the Holders under the Debentures.

         9. Investment Intent, Restrictions on Assignment, Assignment, Transfer
or Loss of the Debenture.

         9.1      Investment Representations.

                  9.1.1 The Holder, by acceptance of this Debenture, represents
that this Debenture and any shares of Common Stock issuable upon conversion of
this Debenture are being and will be acquired for the Holder's own account for
investment and not with a view to, or for resale in connection with, the
distribution thereof in violation of applicable securities laws, and that the
Holder has no present intention of distributing or reselling this Debenture or
any such shares of Common Stock. The Holder, by acceptance of this Debenture,
further represents that it has not offered or sold this Debenture, or any shares
of Common Stock into which this Debenture is convertible, directly or indirectly
to any other person, and that the Holder is not acquiring this Debenture or any
such Common Stock for the account of any other person. Certificates evidencing
shares of Common Stock issuable upon conversion of this Debenture shall bear the
following legend:

                  THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN
                  TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO THE
                  DISTRIBUTION THEREOF IN VIOLATION OF APPLICABLE SECURITIES
                  LAWS, AND SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED
                  UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
                  ACT COVERING SUCH SECURITIES OR THE COMPANY RECEIVES AN
                  OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY)
                  REASONABLY ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE OR
                  TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
                  DELIVERY REQUIREMENTS OF SUCH ACT.

                  9.1.2 Until the shares issued hereunder are registered, no
Holder of this Debenture may assign, transfer, hypothecate or sell all or any
part of this Debenture (or any of the shares of Common Stock issuable upon
conversion of this Debenture) or in any way alienate or encumber the Debenture
(or any of the shares of Common Stock issuable upon conversion of this
Debenture) without the express prior written consent of the Company, the
granting of which may be withheld in the Company's sole discretion. Any attempt
to effect such transfer without the consent of the Company shall be null and
void. Notwithstanding the Company's obligation to register the shares under
Section 6.1, as of the Issue Date, the Company has not registered this Debenture
(or any of the shares of Common Stock issuable upon conversion of this
Debenture) under the Act or the applicable securities laws of any state in
reliance on exemptions from registration. Such exemptions depend upon the
investment intent of the Holder at the time he acquires his Debenture or such
shares of Common Stock. Each Holder has acquired his Debenture (and will acquire
the shares of Common Stock issuable upon conversion of this Debenture) for his
own account for investment purposes only and not with a view toward distribution
or resale of such Debenture or such shares within the meaning of the Act and the
applicable securities laws of any state. Until the shares issued hereunder are
registered, the Company may require the Holder to provide, at his expense, an
opinion of counsel satisfactory to the Company to the effect that any proposed
transfer or other assignment of the Debenture (or any of the shares of Common
Stock issuable upon conversion of this Debenture) will not result in a violation
of the applicable federal or state securities laws or any other applicable
federal or state laws or regulations.

         9.2 Expenses. All expenses, including reasonable legal fees incurred by
the Company in connection with any permitted transfer, assignment or pledge of
this Debenture will be paid by the Holder requesting such transfer, assignment
or pledge. Company shall pay Forte Capital's legal expenses related to the
review of this Agreement, any related agreements and the filing of the UCC-1, up
to $5,000.00.

         9.3 Loss, Theft or Mutilation of Debenture. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of any Debenture and, in the case of any such loss, theft or
destruction of any Debenture, upon delivery of an indemnity bond in such
reasonable amount as the Company may determine (or, in the case of any Debenture
held by the original Debenture-holder, of an indemnity agreement reasonably
satisfactory to the Company), or, in the case of any such mutilation, upon the
surrender of such Debenture to the Company at its principal office for
cancellation, the Company, at the expense of the Holder requesting such
replacement Debenture, will execute and deliver, in lieu thereof, a new
Debenture of like tenor, dated the date to which interest hereunder shall have
been paid on such lost, stolen, destroyed or mutilated Debenture.

         9.4 Exchange. Subject to Subparagraphs 9.1 above and 9.5 below, the
Holder may, at his option, either in person or by duly authorized attorney,
surrender this Debenture for registration of transfer at the principal office of
the Company and, upon payment of any expenses associated with the transfer,
receive in exchange therefor a Debenture or Debentures, dated as of the date to
which interest has been paid on the Debenture so surrendered, each in the
principal amount of $50,000 or any multiple thereof, for the same aggregate
unpaid principal amount as the Debenture so surrendered and registered as
payable to such person or persons as may be designated by the Holder. Every
Debenture surrendered for registration of transfer shall be duly endorsed or
shall be accompanied by a written instrument of transfer duly executed by the
Holder or his attorney duly authorized in writing. Every Debenture, so made and
delivered by the Company in exchange for any Debenture surrendered, shall in all
other respects be in the same form and have the same terms as the Debenture
surrendered. No transfer of any Debenture shall be valid unless made in such
manner at the principal office of the Company.

         9.5 Ownership. The Company may treat the person in whose name this
Debenture is registered as the owner and Holder of this Debenture for the
purpose of receiving payment of all principal of and all Interest on this
Debenture, and for all other purposes whatsoever, whether or not such Debenture
shall be overdue and, except for transfers effected in accordance with this
subparagraph, the Company shall not be affected by notice to the contrary.

         10. Modifications and Amendments. Modifications and amendments to the
Debentures may be made by the Company only with the consent of a Majority in
Interest of the Debentures then outstanding; provided, that no such modification
or amendment may, without the consent of the holder of each Debenture then
outstanding affected thereby, (i) reduce the percentage of principal amount of
Debentures whose holders may consent to an amendment, supplement or waiver; (ii)
reduce the rate or change the time for payment of Interest, including default
interest, on any Debenture; (iii) reduce the principal amount of any Debenture
or change the Maturity Date of the Debentures; or (iv) reduce the redemption
price, including premium, if any, payable upon redemption of any Debenture or
change the time at which any Debenture may or shall be redeemed; (v) reduce the
repurchase price, including premium, if any, payable upon the repurchase of any
Debenture or change the time at which any Debenture may or shall be repurchase;
(vi) make any Debenture payable in money other than that stated in the
Debenture; (vii) impair the right to institute suit for the enforcement of any
payment of principal of, or premium, if any, or interest on, any Debenture;
(viii) make any change in the percentage of principal amount of Debentures
necessary to waive compliance with certain provisions of the Debenture; (ix)
change the warrant coverage, or (x) waive a continuing Default or Event of
Default in the payment of principal of, premium, if any, or interest on the
Debentures. Provided that the Company provides written notice to the Holders,
certain modifications and amendments of the Debentures may be made by the
Company without the consent of any Holders of Debentures in certain limited
circumstances, including (a) to provide for the assumption of the obligations of
the Company under the Debentures upon the merger, consolidation or sale or other
disposition of all or substantially all of the assets of the Company and (b) to
make any change that does not adversely affect the rights of any holder of
Debentures. The Debentures provide that the Holders of a Majority in Interest of
the Debentures may waive any past default under the Debentures, except a default
in the payment of principal, premium, if any, or interest.

         11. Notices. All notices provided for herein shall be validly given if
in writing and delivered personally or sent by certified mail, postage prepaid,
(in the case of the Company) to the office of the Company or such other address
as the Company may from time to time designate in writing sent by certified
mail, postage prepaid, or (in the case of the Holder) to the Holder at his
address set forth below or such other address as the Holder may from time to
time designate in writing to the Company by certified mail, postage prepaid.

          12. Binding Effect. This Debenture shall be binding upon the parties
hereto and their respective heirs, executors, administrators, representatives,
successors and permitted assigns.

           13. Collection Fees. Except as otherwise provided herein, the Company
shall pay all costs of collection, including reasonable attorneys' fees and all
costs of suit and preparation for such suit (and whether at trial or appellate
level), in the event the unpaid principal amount of this Debenture, or any
payment of Interest is not paid when due, or in the event Holder is made party
to any litigation because of the existence of the Indebtedness evidenced by this
Debenture, or if at any time Holder should incur any attorneys' fees in any
proceeding under the Federal Bankruptcy Code (or other similar laws for the
protection of debtors generally) in order to collect any Indebtedness hereunder
or to preserve, protect or realize upon any security for, or guarantee or surety
of, such Indebtedness whether suit be brought or not, and whether through courts
of original jurisdiction, as well as in courts of appellate jurisdiction, or
through a bankruptcy court or other legal proceedings.

          14. Construction. This Debenture shall be governed as to its validity,
interpretation, construction, effect and in all other respects by and in
accordance with the laws and interpretations thereof of the State of California.
Unless the context otherwise requires, the use of terms in singular and
masculine form shall include in all instances singular and plural number and
masculine, feminine and neuter gender.

         15. Severability. In the event any one or more of the provisions
contained in this Debenture or any future amendment hereto shall for any reason
be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Debenture or such other agreement, and in lieu of each such invalid, illegal or
unenforceable provision there shall be added automatically as a part of this
Debenture a provision as similar in terms to such invalid, illegal or
unenforceable provision as may be possible and be valid, legal and enforceable.

         16.      Definitions.

                  16.1 "Affiliate" of any specified Person means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person directly or
indirectly, whether through the ownership of Voting Stock, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

                 16.2 "Board of Directors" means, with respect to any Person,
the Board of Directors of such Person or any committee of the Board of Directors
of such Person duly authorized to act on behalf of the Board of Directors of
such Person.

                  16.3     "Holder" means any Person listed on Exhibit A.

                  16.4     "Issue Date" means the date on which the Debentures a
                           re first issued.

                  16.5     "Maturity Date" means April 1, 2004.

                  16.6 "Person" means any individual, corporation, partnership,
joint venture, trust, estate, unincorporated organization or government or any
agency or political subdivision thereof.

                  16.7 A "subsidiary" of any Person means (i) a corporation a
majority of whose Voting Stock is at the time, directly or indirectly, owned by
such Person, by one or more subsidiaries of such Person or by such Person and
one or more subsidiaries of such Person, (ii) a partnership in which such Person
or a subsidiary of such Person is, at the date of determination, a general or
limited partner of such partnership, but only if such Person or its subsidiary
is entitled to receive more than fifty percent (50%) of the assets of such
partnership upon its dissolution, or (iii) any other Person (other than a
corporation or partnership) in which such Person, directly or indirectly, at the
date of determination thereof, has (x) at least a majority ownership interest or
(y) the power to elect or direct the election of a majority of directors or
other governing body of such Person.

                  16.8     "Subsidiary" means any subsidiary of the Company.

                  16.9 "Voting Stock" means, with respect to any Person,
securities of any class or classes of Capital Stock in such Person entitling the
holders thereof, whether at all times or only so long as no senior class of
stock has voting power by reason of any contingency, to vote in the election of
members of the Board of Directors or other governing body of such Person.

         17. Miscellaneous. Except as otherwise provided herein, the Company
waives demand, diligence, presentment for payment and protest, notice of
extension, dishonor, maturity and protest. Time is of the essence with respect
to the performance of each and every covenant, condition, term and provision
hereof.

         18. Right of Refusal. The Company reserves the right, in its sole
discretion, to accept or reject any subscription in whole or in part to this
debenture.

         19. Right of First Refusal. In the event that the Company elects to
accept additional investments pursuant to this debenture up to the aggregate
amount of Three Hundred and Fifty Thousand and No/100 Dollars ($350,000.00), the
opportunity to make such investment shall first be offered to Forte Capital
according to the following procedure: Company shall deliver written notice of
its desire to accept additional funding under this debenture (an "Additional
Funds Notice") to Forte Capital at least 15 days in advance of the desired
funding. Forte Capital shall respond in writing (an "Exercise Notice") within 5
days of receipt of the Additional Funds Notice that it intends to exercise its
rights under this Section. Failure to respond within the prescribed period shall
be deemed an affirmative acknowledgement by Forte Capital that it does not
desire to exercise its rights under this Section. In the event that Forte
Capital does elect to exercise its rights under this Section, the Exercise
Notice shall specify the amount Forte intends to fund. Such funds shall be
delivered to Company in immediately available funds within 15 days of the date
of Forte Capital's receipt of the Additional Funds Notice unless agreed
otherwise between the Company and Forte Capital .

            [The Remainder of this Page is Left Intentionally Blank]

<PAGE>

                          [Signature Page to Debenture]

                  IN WITNESS  WHEREOF,  this  Debenture  has been  issued on the
____ day of  ____________________, 2003.

                                   IQ BIOMETRIX, INC.

                                   By
                                   ---------------------------------------------
                                   William Scigliano, Chief Executive Officer

                                   Date: April ____, 2003
Name and Mailing Address of Holder:

==============================
==============================

<PAGE>

                                                   -13-

<PAGE>

                                    EXHIBIT A

                              Holders of Debentures

    Name               Address            Debenture Amount          Date
    ----               -------            ----------------          ----
 Elisa Micek     3302 North 216th Street       $50,000.00        March 15, 2003
                 Elkhorn Nebraska
                 68022
 Forte Capital   4 Embarcadero Center, Suite   $100,000.00       April 2, 2003
 Partners, LLC   1590 San Francisco, CA  94111
                 Tel: 650.888.8336
                 Fax: 415.288.0532

 Forte Capital   4 Embarcadero Center, Suite   $100,000.00       April 16, 2003
 Partners, LLC   1590 San Francisco, CA  94111
                 Tel: 650.888.8336
                 Fax: 415.288.0532

 Elisa Micek     3302 North 216th Street        $50,000.00       April 18, 2003
                 Elkhorn Nebraska
                 68022
 Forte Capital   4 Embarcadero Center, Suite    $42,000.00       April 22, 2003
 Partners, LLC   1590 San Francisco, CA  94111
                 Tel: 650.888.8336
                 Fax: 415.288.0532

 Forte Capital   4 Embarcadero Center,          $58              May 23, 2003
 Partners, LLC   1590 San Francisco, CA  94111
                 Tel: 650.888.8336
                 Fax: 415.288.0532

<PAGE>

                                    EXHIBIT B

                            Form of Warrant AgreementQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.3    
    

 
  Com-Guard, Inc.
  Manufacturer Licensee Program Agreement    
    

Com-Guard  

Introduction.  

This
Agreement between South Coast Distribution Limited ("Licensee") with a principal address of Sussex House, 23 Cuckfield Road, Hurstpierpoint West Sussex, BN6 9RW (1st Party) and Distributec
Limited ("DTC"), Regus House, 268 Bath Road, Slough Berks, SLl 4DX, exclusively representing (UK) Com-Guard, Inc. ("CGI"), with principal address of 2075 Corte del Nogal, Suite R,
Carlsbad California, 92009, ([Illegible] Party acting together) consists of these Standard Terms and Conditions ("Terms and Conditions"), the Manufacturer Licensee Program (the
"Program"), which may be revised periodically, and the terms as mutually agreed to and listed on Exhibit A "Licensee" means the entity identified in this agreement, and/or any agency acting on
its behalf; which shall also be bound by the terms of this Agreement. Please read very carefully these Terms and Conditions. 

1.     Program outline.  

The
CGI Program distributes a version of a CGI Product of Produce packaged with the Licensee's hardware product as defined in Exhibit A. The licenses shipped with each hardware product
(Exhibit A) will be recorded by Licensee and the Licensee will make payment to DTC immediately upon receipt of funds from the hardware manufacturer. 

The
end-user may or may not use the version and may or may not decide to purchase the Product from CGI during or after the licensed period. CGI will maintain a web page for the
end-user to purchase and download the Product software from the web site. When the end-user purchases the Product, CGI will record the purchase and compensate Licensee monies
as provided in Exhibit B hereto and make payments according to Paragraph 8 of this agreement. 

2.     Licensee's Responsibilities  

The
specific responsibilities of Licensee are listed on Exhibit C attached hereto. 

3.     Termination; Cancellation.  

The
initial term of this agreement will be 12 months from commencement. This agreement will continue for a rolling 90 day period after the initial term unless cancelled with
30 days notice after the initial term in writing by any party. Either party may at any time, in its sole discretion, terminate the Program, terminate this Agreement, or cancel any Product
covered under this agreement if a material breach is not aired within receipt of 30 days notice in writing. After 30 days, if the breach is not cured the terminating party will notify
the other party of any such termination or cancellation, which shall be effective immediately. CGI will compensate Licensee for any sales for 60 days after such termination unless Licensee has
materially breached this agreement or initiated the termination. In the latter case, compensation will continue for 30 days from the date of termination. CGI will make all final payments and
adjustments within 90 days of such termination by Licensee. Upon termination for any reason, Sections 4 through 12 shall survive termination. 

4.     Confidentiality.  

Each
party agrees not to disclose Confidential Information of the other party without prior written consent except as provided herein. The Mutual Nondisclosure Agreement defined in Exhibit D
shall be executed by both parties and is considered an integral part of this Agreement. "Confidential Information" includes (i) shipping volume, [ILLEGIBLE] compensation
terms, (ii) download rams, and (iv) any other information designated in writing as "Confidential." It does not include information that
has become publicly known through no breach by a party, or has been (i) independently developed without access to the other party's Confidential Information; (ii) rightfully received
from a third party; or (iii) required to be disclosed by law or by a governmental authority. 

 

5.     No Guarantee. 

CGI
makes no guarantee regarding the levels of downloads or revenues to its Licensees. CGI may offer the same program to more than one Licensee. 

6.     No Warranty.  

CGI
MAKES NO WARRANTY, EXPRESS OR, INCLUDING WITHOUT LIMITATION WITH RESPECT TO ADVERTISING AND OTHER SERVICES, AND EXPRESSLY DISCLAIMS THE WARRANTIES OR CONDITIONS OF NONINFRINGEMENT, MERCHANTABILITY
AND FITNESS FOR ANY PARTICULAR PURPOSE. 

7.     Limitations of Liability; Force Maieure.  

In
no event shall CGI or any Licensee be liable for any [ILLEGIBLE] omission, or any event directly or indirectly resulting from any [ILLEGIBLE] or
omission of Licensee, or any third parties (if any). EXCEPT FOR THE PARTIES' INDEMNIFICATION AND CONFIDENTIALITY OBLIGATIONS UNDER, (i) IN NO EVENT SHALL EITHER PARTY BE LIABLE UNDER THIS
AGREEMENT FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT, EXEMPLARY, PUNITIVE, OR OTHER DAMAGES WHETHER IN CONTRACT, TORT OR ANY OTHER LEGAL THEORY, EVEN IF
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY AND (ii) CGI'S AGGREGATE LIABILITY TO LICENSEE UNDER
THIS AGREEMENT FOR ANY CLAIM IS LIMITED TO THE AMOUNT OWED FOR UNITS PURCHASED REGARDLESS OF THE EVENT THAT GAVE RISE TO THE CLAIM. The only exception being death or personal injury. Each party
acknowledges that the other party has entered into this Agreement relying on the limitations of liability stated herein and that those limitations are an essential basis of the bargain between the
parties. Without limiting the foregoing and except for payment obligations, neither party shall have any liability for any failure or delay resulting from any condition beyond the reasonable control
of such party, including but not limited to governmental action or acts of terrorism, earthquake or other acts of God, labor conditions, and power failures. 

8.     Payment.  

Licensee
agrees to pay CGI within fifteen days of the shipping date of the licensed CGI product. CGI agrees to pay all applicable revenues under this Agreement within 15 days from the end of
the month in which the revenues were received. If Licensee and/or CGI dispute any payment made under the Program, each party must notify the other party
in writing within sixty days of any such payment. Failure to so notify shall result in the waiver by the aggrieved party of any claim relating to any such disputed payment.
Payments shall be calculated solely based on records maintained by either party. Either party may have the records audited by a mutually agreed upon Certified Accounting Firm at either parties sole
cost. Such audit shall only be performed during normal business hours with advance notice of 30 days and at a mutually agreeable date and time between the parties. 

9.     Licensee Obligation to Indemnify  

Licensee
agrees to indemnify, defend and hold CGI and their licensers, licensees, consultants, contractors, agents, attorneys and employees harmless from and against any and all liability, loss,
damages, claims or causes of action, including internal and external legal fees and expenses, arising out of, related to or which may arise from Licensee use of the Program and/or Licensee breach of
any term of this Agreement. 

2

 

10.   Trademarks and Trademarks.  

	a)
	During
the term of this Agreement; Licensee shall be authorised to use CGI's trademarks and tradenames only in connection with the sale, advertisement and promotion of Products and not
in connection with any other aspect of its business. Licensee shall not use such trademarks or tradenames as a part of licensee's name or mark or in any other manner in which it would cause a
reasonable person to infer [ILLEGIBLE] such trademarks or tradenames belong to Licensee. Licensee further agrees that it will not affix any CGI's trademarks or tradenames to
any product without permission of CGI.

	b)
	Licensee
acknowledges that the Product supplied under this Agreement comprises CGI's intellectual property rights and incorporates CGI's confidential and proprietary information.
Licensee reps to CGI that it will not copy or reproduce the internal or external design of the Product (in whatsoever form or media) and/or authorise or permit any such copying or reproduction by any
third party whilst the Product is in the possession, custody or power of Licensee. Licensee will take all reasonable steps to maintain the confidentiality of the internal design, electrical features
and software code of the Product and shall protect the Product against unauthorised examination or interference. 

11.   Information Rights.  

CGI
may retain and use for its own purposes all information Licensee provides, including but not limited to shipping targets, marketing information, URIs, oral contract and billing information. CGI
may share aggregate (i.e., not personally identifiable) information about Licensee with other Licensees, business Licensees, including sponsors, and other third parties. 

12.   Miscellaneous.  

Any
decision made by CGI under this Agreement shall be final. CGI shall have no liability for any such decision. This Agreement shall be governed by the laws of the State of California. Any dispute or
claim arising out of or in connection with this Agreement shall be adjudicated in San Diego County, California. This constitutes the entire agreement between the parties with respect to the subject
matter hereof. Any modifications to this Agreement must be made in writing executed by both parties. The waiver of any breach or default of this Agreement will not constitute a waiver of any
subsequent breach or default if any provision herein is held unenforceable then such provision will be modified to reflect the parties' intention, and the remaining provisions of this Agreement will
remain in full force and effect. Licensee may not resell, assign, or transfer any of its rights hereunder. Any such attempt may result in termination of this Agreement, without liability to CGI. The
relationships between CGI and the "Licensees" is not one of a legal partnership relationship, but is one of independent contractors. This Agreement shall be construed as if both parties jointly wrote
it. 

	Accepted by Licensee:	 	Accepted by Distributec Ltd:
	

 	
 	

 
	/s/
 Signature	 	 
	 	 	 
	First name illegible Wallworthy
 Print name	 	/s/  JOHN MCDONALD      
 John McDonald
	 	 	 
	Director
 Title	 	Director

	 	 	 
	Fourth Coast Distribution Co
 Company	 	Distributec Ltd
 Company
	 	 	 
	28th May 2003
 Date	 	28th May 2003
 Date

3

 
Com-Guard, Inc.

Manufacturer Licensee Program

Agreement  

 
 

Exhibit A
  Hardware Product I
  
    Hi Grade Computers    
    

4

 
 
 

Exhibit B
  Compensation    
    

	a)
	US
$0.50 will be paid to Disiributec on each license supplied by Licensee and is subsequently shipped by the manufacturer.

	b)
	Upon
end user conversion after 9 or 12 months—Distributec will pay 30% of the net retail price applicable upon conversion to Licensee.

	c)
	Licenses
will be reported at the end of each period of three months commencing with the month the product is first shipped. Total quantity of licenses used per quarter will be reported
by e-mail to Distributec before the 10th day of the month after the relevant quarter. 

5

 
 
 

Exhibit C
  Responsibilities of License    
    

	1)
	To
act in good faith in the use of and representation of CGI and DTC.

	2)
	To
ensure the software supplied is only for the use of the Hardware Manufacturer in Appendix A.

	3)
	To
ensure all copies of the license are accounted for and purchased in accordance with the terms in Appendix B.

	4)
	To
return all software and data to CGI and DTC on expiration of this agreement. 

6

 
 
 

Exhibit D
  
    MUTUAL NON DISCLOSURE AGREEMENT    
    

In
the course of their dealings with each other the above parties may, from time to time disclose certain technical and business information which is proprietary and confidential to the disclosing
party or is [ILLEGIBLE] of which the disclosing patty owes confidentiality obligations to a third party to whom such information belongs. This will confirm the agreement and
understanding of the undersigned as follows. 

	1.
	All
confidential and proprietary information which is subject to the terms and conditions of this Agreement shall (if disclosed in writing) be clearly marked in writing by the
[ILLEGIBLE] party as "CONFIDENTIAL". No party shall have any responsibility under this Agreement as to any information which is not so marked in writing at the time of written
disclosure. Nor shall any party have any responsibility under this Agreement as to any oral disclosures, except as to information designated as "CONFIDENTIAL" at the time of the oral disclosure and
confirmed in writing within twenty days of the receiving party which confirmation shall provide [ILLEGIBLE] of the claim to "CONFIDENTIALITY" and describe the specific
information involved in detail. The confidential information disclosed [ILLEGIBLE]

	2.
	Except
as in Paragraph Three (3) below, the party which receives such confidential or proprietary information from the other shall (a) treat the same as strictly
confidential and (b) "not divulge, directly or indirectly, to any other person, company, corporation, association, or entity; for any purpose whatsoever, [ILLEGIBLE] or
proprietary [ILLEGIBLE] (c) [ILLEGIBLE] such information ([ILLEGIBLE] for the purpose for which it was disclosed) without
the prior written consent of the disclosing party. Such confidential and proprietary information may be disclosed only to such of the employees or consultants, independent sub-contractors
of the recipient who reasonably require access to such [ILLEGIBLE] for the purpose for which it was disclosed and who [ILLEGIBLE] entered into
obligations of confidentiality to [ILLEGIBLE] recipient [ILLEGIBLE] than the terms of this Agreement

	3.
	The
obligations set forth in Paragraph Two (2) above, may not in any way restrict or imprint the right of [ILLEGIBLE] receiving party to disclose or use
any information

	(i)
	which
at the time of the disclosure is published as otherwise in the public domain;

	(ii)
	which
after disclosure becomes part of the public domain otherwise than through a breach of confidence [ILLEGIBLE] confidentiality;

	(iii)
	which
was known to the receiving party prior to receipt from the disclosing party (and so notified to the disclosing party within 14 days of disclosure), provided such prior
knowledge can be adequately substantiated by documentary evidence [ILLEGIBLE] the disclosure by the other party.

	(iv)
	which
is disclosed to the receiving party by a third party (other than employees or agents of either party) which in making such information available to the receiving party, is not
in violation of any obligation of confidentiality to the disclosing party, or

	(v)
	which
is independently developed by the receiving party without reliance in any way [ILLEGIBLE] the disclosing party's confidential proprietary information

	4.
	The
secrecy of the confidential or proprietary information disclosed pursuant to this Agreement shall be maintained for a period of [ILLEGIBLE] years from the
date of disclosure thereof

	5.
	Upon
request of the disclosing party, any written [ILLEGIBLE] subject to this Agreed (including all copies thereof in whatever
[ILLEGIBLE], or media) shall be returned to the disclosing party.

	6.
	Except
as provided herein, no right or license whatsoever, either express or implied, is granted to either party pursuant to this Agreement under any patent, patent application,
trademark, design right, mask work, topography right, [ILLEGIBLE] or other proprietary or intellectual property right now or hereafter owned or controlled by the other party.

	7.
	Each
party agrees that the confidential information is subject to the Export Laws and Regulations of the United States.

	8.
	No
amendment shall be made to this Agreement unless agreed upon in writing by both parties.

	9.
	Each
of the parties acknowledges to the other that damages would not be an adequate remedy for any breach of the obligations yet [ILLEGIBLE] that the claiming
party shall also be entitled to the remedies of 

7

QuickLinks

EXHIBIT 10.3

Com-Guard, Inc. Manufacturer Licensee Program Agreement

Exhibit A Hardware Product I Hi Grade Computers

Exhibit B Compensation

Exhibit C Responsibilities of License

Exhibit D MUTUAL NON DISCLOSURE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]