Document:

Exhibit 10.4

    
      

    

     

    Exhibit
      10.4

     

    SECOND
      AMENDMENT TO EXERCISE AND CONVERSION AGREEMENT

     

    THIS
      SECOND AMENDMENT TO EXERCISE AND CONVERSION AGREEMENT is made and entered into
      as of June 9, 2006 (the “Second Amendment”) by and among Sentinel Technologies,
      Inc., a Delaware corporation (“STI”); Sentinel Operating, L.P., a Texas limited
      partnership and an affiliate of STI (“Sentinel”); Tidel Technologies, Inc., a
      Delaware corporation (the “Company”); and Laurus Master Fund, Ltd., a Cayman
      Island company (the “Security Holder”). 

     

    Reference
      is made to the Exercise and Conversion Agreement dated as of January 12, 2006,
      as amended by the Amendment to Exercise and Conversion Agreement dated as of
      February 28, 2006 (as amended, the “Agreement”), among the parties hereto.
      Capitalized terms used but not defined herein shall have the meanings ascribed
      to such terms in the Agreement.

     

    The
      parties hereto agree that the Agreement be and is hereby amended as
      follows.

     

    1.   Section
      1.2(a) is amended by deleting the reference to the date “April 21, 2006” and
      inserting in lieu thereof the date “August 31, 2006”;

     

    2.   Section
      4.1(a) is amended by deleting the reference to the date “April 21, 2006” and
      inserting in lieu thereof the date “August 31, 2006”;

     

    3.   Section
      4.1(g) is amended by deleting the reference to the date “April 21, 2006” and
      inserting in lieu thereof the date “August 31, 2006”;

     

    4.   Section
      5.1 is amended by deleting the two references to “May 31, 2006” therein and
      inserting in lieu thereof the date “September 30, 2006.”

     

    Except
      as
      specifically amended hereby, the Agreement shall remain in full force and effect
      and hereby is ratified and confirmed as so amended. This Second Amendment shall
      not constitute a novation, satisfaction and accord, cure, release or
      satisfaction of the Agreement, but shall constitute an amendment thereof. The
      parties hereto agree to be bound by the terms and conditions of the Agreement
      as
      amended by this Second Amendment, as though such terms and conditions were
      set
      forth herein and therein in full. Each reference in the Agreement to "this
      Agreement," "hereunder," "hereof," "herein" or words of similar import shall
      mean and be a reference to the Agreement as amended by this Second
      Amendment.

     

    This
      Second Amendment shall be governed by and construed and interpreted in
      accordance with the choice of law provisions set forth in, and shall be subject
      to the notice provisions of, the Agreement.

     

    This
      Second Amendment may be executed by facsimile signatures and in any number
      of
      counterparts, each of which shall be an original, but all of which together
      shall constitute one and the same instrument.

     

    This
      Second Amendment shall be effective as of April 21, 2006.

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    

    IN
      WITNESS WHEREOF, STI, Sentinel, the Company and the Security Holder have caused
      this Second Amendment to be executed as of the date first written
      above.

    

      
        	 	
                SENTINEL
                  TECHNOLOGIES, INC.

              
	 	 	 
	 	/s/
                Raymond P. Landry
	 	
                By:
                  Raymond P. Landry

              
	 	
                Title:
                  Chief Executive Officer

              
	 	 
	 	
                SENTINEL
                  OPERATING, L.P.

              
	 	
                By:
                  Sentinel Cash Systems, L.L.C., its general partner

              
	 	 	 
	 	 	/s/
                Raymond P. Landry
	 	 	
                By:
                  Raymond P. Landry

              
	 	 	
                Title:
                  President

              
	 	 	 
	 	 	 
	 	
                TIDEL
                  TECHNOLOGIES, INC.

              
	 	 	 
	 	/s/
                Jerrell G. Clay
	 	
                By:
                  Jerrell G. Clay

              
	 	
                Title:
                  Director

              
	 	 
	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 	 
	 	/s/
                Eugene Grin
	 	
                By:
                  Eugene Grin

              
	 	
                Title:
                  DirectorExhibit 10.5

    
      

    

     

    Exhibit
      10.5

     

    SECOND
      AMENDMENT TO VOTING AGREEMENT

     

    This
      Second Amendment to Voting Agreement is made and entered into as of June 9,
      2006
      (the “Second Amendment”) by and among Sentinel Technologies, Inc., a Delaware
      corporation (“STI”); Sentinel Operating, L.P., a Texas limited partnership and
      an affiliate of LLG (“Sentinel”); Tidel Technologies, Inc., a Delaware
      corporation (the “Company”); and Laurus Master Fund, Ltd., a Cayman Island
      company (the “Stockholder”). 

     

    Reference
      is made to the Voting Agreement dated as of January 12, 2006 and amended as
      of
      February 28, 2006 (as amended, the “Agreement”) among the parties hereto.
      Capitalized terms used but not defined herein shall have the meanings ascribed
      to such terms in the Agreement.

     

    The
      parties hereto agree that the Agreement be and hereby is amended as follows:
      

     

    Section
      1.1 of the Agreement is amended by deleting the date “May 31, 2006” for the
      definition of “Termination Date” in the introductory sentence thereof and
      inserting in lieu thereof the date “September 30, 2006”.

     

    Section
      1.2(a) of the Agreement is amended by deleting the date “April 21, 2006” and
      inserting in lieu thereof the date “August 31, 2006”.

     

    Except
      as
      specifically amended hereby, the Agreement shall remain in full force and effect
      and hereby is ratified and confirmed as so amended. This Second Amendment shall
      not constitute a novation, satisfaction and accord, cure, release or
      satisfaction of the Agreement, but shall constitute an amendment thereof. The
      parties hereto agree to be bound by the terms and conditions of the Agreement
      as
      amended by this Second Amendment, as though such terms and conditions were
      set
      forth herein and therein in full. Each reference in the Agreement to "this
      Agreement," "hereunder," "hereof," "herein" or words of similar import shall
      mean and be a reference to the Agreement as amended by this Second
      Amendment.

     

    This
      Second Amendment shall be governed by and construed and interpreted in
      accordance with the choice of law provisions set forth in, and shall be subject
      to the notice provisions of, the Agreement.

     

    This
      Second Amendment may be executed by facsimile signatures and in any number
      of
      counterparts, each of which shall be an original, but all of which together
      shall constitute one and the same instrument.

     

    This
      Second Amendment shall be effective as of April 21, 2006.

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    IN
      WITNESS WHEREOF, STI, Sentinel, the Company, and the Stockholder have caused
      this Second Amendment to Voting Agreement to be executed as of the date first
      written above.

     

    
      
        	 	
                SENTINEL
                  TECHNOLOGIES, INC.

              
	 	 	 
	 	/s/
                Raymond P. Landry
	 	
                By:
                  Raymond P. Landry

              
	 	
                Title:
                  Chief Executive Officer 

              
	 	 
	 	 
	 	
                SENTINEL
                  OPERATING, L.P.

              
	 	 	 
	 	 	 
	 	
                By:
                  Sentinel Cash Systems, L.L.C., its general partner

              
	 	 	 
	 	 	/s/
                Raymond P. Landry
	 	 	
                By:
                  Raymond P. Landry

              
	 	 	
                Title:
                  President

              
	 	 	 
	 	 	 
	 	
                TIDEL
                  TECHNOLOGIES, INC.

              
	 	 	 
	 	/s/
                Jerrell G. Clay
	 	
                By:
                  Jerrell G. Clay

              
	 	
                Title:
                  Director

              
	 	 	 
	 	 	 
	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 	 
	 	/s/
                Eugene Grin
	 	
                By:
                  Eugene Grin

              
	 	
                Title:
                  DirectorExhibit 10.6

    
      

    

    Exhibit
      10.6

     

    AGREEMENT

    

    This
      Agreement (this “Agreement”) is entered into as of June 9, 2006, by and between
      Mark K. Levenick (the “Employee”) and Tidel Engineering, L.P., a Delaware
      limited partnership (the “Company”).

    

    WHEREAS,
      the Employee and the Company are parties to an Employment Agreement dated
      January 1, 2000 (the “Employment Agreement”); and

     

    WHEREAS,
      the Company, Tidel Technologies Incorporated and Sentinel Operating L.P.
      (“Sentinel”) have entered into an Amended and Restated Asset Purchase Agreement,
      dated as of June 9, 2006 (as the same may be amended or restated, the “Purchase
      Agreement”) pursuant to which Sentinel has agreed to purchase substantially all
      of the assets and business of the Company, consisting of its cash security
      business (the “Asset Sale”); and

     

    WHEREAS,
      pursuant to the Purchase Agreement, Sentinel has agreed to pay to the Employee,
      on behalf of and as directed by the Company at the closing of the Asset Sale,
      a
      termination payment (“Termination Payment”) in the amount specified in Section 1
      of the Disclosure Schedule to the Purchase Agreement; and

     

    WHEREAS,
      following receipt of such payment upon consummation of the Asset Sale, the
      Employee will cease to be employed by the Company and will become an employee
      of
      Sentinel.

     

    NOW,
      THEREFORE, in consideration of the foregoing, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto hereby agree as follows:

     

    
      	 	
              1.

            	
              Termination
                Payment.
                At the closing of the Asset Sale pursuant to the Purchase Agreement,
                provided that the Employee is an employee of the Company at that
                time, the
                Company shall direct Sentinel to pay to the Employee $350,000, which
                amount shall constitute the Termination Payment to be paid to the
                Employee
                under the Purchase Agreement.

            

    

     

    
      	 	
              2.

            	
              Termination
                of Employment Agreement.
                Upon receipt by the Employee of the Termination Payment, the Employee’s
                employment by the Company shall terminate, the Employment Agreement
                shall
                terminate and be of no further force or effect and, other than payment
                of
                salary accrued to the date of termination, the Employee shall have
                no
                further rights or claim under the Employment Agreement or otherwise
                as an
                employee of the Company including, without limitation, any rights
                to any
                vacation pay or other benefits
                thereunder.

            

    

     

    
      	 	
              3.

            	
              Options.
                All options held by the Employee to purchase the Company’s common stock,
                to the extent exercisable and not previously terminated, may be exercised
                by the Employee at any time prior to 90 days following the closing
                of the
                Asset Sale after which date they shall terminate and be of no further
                force or effect. The Employee agrees that he has entered into this
                Agreement voluntarily and knowingly, and that he has reviewed the
                Company’s 1997 Long Term Incentive Plan, the terms of all option grants
                made by the Company to the Employee thereunder and this Agreement
                with his
                own counsel and fully understands the terms and conditions of each
                of the
                foregoing. 

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.

            	
              Termination
                of Asset Sale.
                In the event that the Purchase Agreement (as amended or restated)
                is
                terminated and the Asset Sale is not consummated, then this Agreement
                shall terminate as of the date of termination of the Purchase Agreement,
                in which case this Agreement shall thereupon be of no further force
                or
                effect and the Employment Agreement shall continue in full force
                and
                effect in accordance with its terms.

            

    

     

    
      	 	
              5.

            	
              Governing
                Law.
                This Agreement shall be governed by and construed in accordance with
                the
                laws of the State of Texas without regard to conflicts of law
                principles.

            

    

     

    
      	 	
              6.

            	
              Severability.
                If any portion of this Agreement is held invalid or inoperative,
                the other
                portions of this Agreement shall be deemed valid and operative and,
                so far
                as is reasonable and possible, effect shall be given to the intent
                manifested by the portion held invalid or inoperative.
                

            

    

     

    
      	 	
              7.

            	
              Entire
                Agreement.
                This Agreement is not a promise of future employment. This Agreement
                constitutes the entire understanding between the parties with respect
                to
                the subject matter hereof, superseding all negotiations, prior discussions
                and preliminary agreements, and further superseding any and all employment
                arrangements between Employee and Company or any of Company's
                subsidiaries, affiliates or other related entities. This Agreement
                may not
                be amended except in a writing executed by the parties
                hereto.

            

    

     

    
      	 	
              8.

            	
              Consultation
                with Counsel.
                Employee acknowledges that he was informed by the Company that he
                has the
                right to consult with an attorney before signing this Agreement,
                that he
                was advised to consult with an attorney prior to signing this Agreement
                and that this Section 8 shall constitute written notice to Employee
                of
                such right to consult legal counsel. Employee acknowledges that Olshan
                Grundman Frome Rosenzweig & Wolosky LLP (“OGFRW”) has not represented
                him in connection with this Agreement, that OGFRW has represented
                the
                Company in connection with this Agreement and that OGFRW has represented
                the Company in the past and continues to represent the Company on
                an
                ongoing basis.

            

    

     

    
      	 	
              9.

            	
              Counterparts.
                This Agreement may be executed in two or more counterparts, each
                of which
                shall be deemed an original and all of which, taken together, shall
                constitute one and the same
                instrument.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement has been executed as of the day and year first
      written above.

     

    
      	 	 	
              TIDEL
                ENGINEERING, L.P.

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              By

            	
              /s/
                Leonard Carr

            	 
	
              THE
                EMPLOYEE:

            	 	 	
              Name:
                Leonard Carr

            	 
	 	 	 	
              Title:
                Vice President and Secretary

            	 
	 	 	 	 	 
	
              /s/
                Mark K. Levenick

            	 	 	 	 
	
              Mark
                K. Levenick

            	 	 	 	 

    

     

     

    3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]