Document:

exv10w3

 

Exhibit 10.3

JOINDER AGREEMENT

for

SECURITY AGREEMENT

     THIS JOINDER AGREEMENT (“Agreement”) is entered into as of July 3, 2007 (the “Effective Date”)
by and among Catuity, Inc., a Delaware corporation (the “Company”), the undersigned subsidiaries of
the Company (each a “Grantor” and collectively and together with the Company the “Grantors”),
Gottbetter Capital Master, Ltd., a Cayman Islands company (“Gottbetter”) and Bridgepointe Master
Fund Ltd., a Cayman Islands company (“Bridgepointe”).

     WHEREAS, the Company entered into a Securities Purchase Agreement with Gottbetter and
Bridgepointe (the “Securities Purchase Agreement”) dated as of November 21, 2006 and in connection
therewith issued Senior Secured Convertible Notes to each of Gottbetter and Bridgepointe dated
November 22, 2006; and

     WHEREAS, in furtherance of the Securities Purchase Agreement, the Grantors entered into a
Security Agreement (the “Security Agreement”) with Gottbetter dated as of November 21, 2006; and

     WHEREAS, the Company is issuing new Secured Promissory Notes to Gottbetter and Bridgepointe
(each a “New Note” and collectively the “New Notes”), each in the amount of $75,000; and

     WHEREAS, the parties to the Security Agreement desire that the security interest granted to
Gottbetter thereunder be expanded to secure all of the Company’s obligations to Bridgepointe under
the New Notes and that the New Note issued to Gottbetter be included as an “Obligation” under the
Security Agreement.

     NOW THEREFORE, in consideration of the foregoing and of the representations, warranties and
covenants set forth in the Security Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1. Joinder. Bridgepointe is hereby added as a party to the Security Agreement, by reason
of the New Note issued to Bridgepointe, bound by all the provisions thereof, subject to all the
obligations therein imposed on the Buyer, and entitled to all the rights therein granted to the
Buyer.

This Agreement is being entered into in accordance with Section 10(a) of the Security
Agreement. The undersigned hereby authorize this Agreement, or a copy thereof, to be attached to
the Security Agreement.

2. Security For Obligations. The New Notes are hereby added as “Obligations” under Section
3 of the Security Agreement.

3. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns.

 

 

4. Notices. All notices, requests, demands and other communications required or permitted
to be given to be given under the Security Agreement shall be given to Bridgepointe at the address
provided in the Schedule of Note Buyers under the Securities Purchase Agreement.

5. Governing Law. Pursuant to Section 10(f) of the Security Agreement, this Agreement
shall be construed, and the rights and liabilities of the parties hereto determined, in accordance
with the internal laws of the State of New York.

6. Captions, Definitions. The captions to this Agreement are for convenience of reference
only and in no way define, limit or describe the scope or intent of this Agreement or any part
hereof, nor in any way affect this Agreement or any part hereof. Capitalized terms not defined
herein shall have the meanings given to them in the Security Agreement.

7. Effective Date. This Agreement shall be effective as of the Effective Date.

8. Counterparts. This Agreement may be executed in several counterparts, which together
shall constitute a single document.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	CATUITY, INC.	 	LOYALTY MAGIC PTY LIMITED
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Alfred H. (John) Racine
	 	 	 	Name: Alfred H. (John) Racine	 	 	 	 
	 

	 	Title: President and CEO
	 	 	 	Title: Director	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CHIP APPLICATION TECHNOLOGIES PTY LIMITED	 	CIT CARDS AUSTRALIA PTY LIMITED
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Alfred H. (John) Racine
	 	 	 	Name: Alfred H. (John) Racine	 	 	 	 
	 

	 	Title: Director
	 	 	 	Title: Director	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Gottbetter Capital Master, Ltd.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: Adam S. Gottbetter	 	 	 	 	 	 	 	 
	 

	 	Title: Director	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Bridgepointe Master Fund Ltd.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: Eric Swartz	 	 	 	 	 	 	 	 
	 

	 	Title: Director	 	 	 	 	 	 	 	 

2exv10w1

 

	 	 	 	 	 

Exhibit 10.1

UNIVERSAL FIELD SERVICES, INC.

14677 Midway Road, Suite 115

Addison, TX 75001

	 	 	 	 	 
	June 15, 2007
	 	 	 	 
	 
	 	 	 	 
	Mr. William H Oyster, President

	 	County: Dallas
	 	 
	DGSE Corporation

	 	Highway No. IH 635 @ 35E	 	 
	2817 Forest Lane

	 	Location:	 	 
	Dallas, TX 75234

	 	Project No. 8118-01-034	 	 
	 

	 	ROW CSJ No. 2374-01-052	 	 
	 

	 	District Dallas	 	 
	 

	 	Parcel No. 22	 	 

Dear Mr. Oyster:

You have indicated a willingness to sign a deed for a portion of your property on behalf of DGSE
Corporation (Owner); being a 18,443 square feet tract of land which is situated at 2817 Forest
Lane, in the City of Dallas, Dallas County, Texas, being a part of the Issac B. Webb survey,
Abstract No. 1574, being further situated in Block Number 6589, official number of the City of
Dallas, being part of a tract of land described to DGSE Corporation as recorded in Volume 87235,
Page 4525, Deed Records of Dallas County, Texas (D.R.D.C.T), and being more particularly described
by metes and bounds on the attached Exhibit A.

It is important to confirm this agreement in order to avoid any possible misunderstanding as to the
details of the purchase or the process by which the Texas Department of Transportation (TxDOT) will
make payment. The payment of $1,299,898.00 as herein agreed will constitute full payment to be
made by TxDOT for the property to be conveyed to the State.

TxDOT and the Grantor have agreed to the following provisions.

Until
payment is made by TxDOT, title and possession of the property to be conveyed remains with
the Owner. The Owner shall bear all risk of loss to any and all such property prior to such
payment. Either the Owner or TxDOT shall have the right to terminate this agreement.

The payment of the amount herein stated and the terms provided constitute the only promises,
consideration and conditions of this purchase; and no other promises, consideration or conditions
have been signified or implied, save and except any benefits which may accrue under the State’s
Relocation Assistance Program and the mutual benefits to be derived by the Owner and TxDOT from the
signing of this agreement.

The State, without cost to the Owner, will pay the cost of recording all instruments conveying
title to the State.

 

 

It is understood and agreed by all parties as follows:

	 	1.	 	The Escrow Officer is authorized to deduct from the Owners proceeds, an amount
sufficient to cover the amount of prorated taxes due up to the date of closing.
	 
	 	2.	 	The Owner must provide the Title Company a Corporate Resolution by the Board of
Directors of DGSE Corporation authorizing the current transaction, naming the officers
authorized to execute the necessary instrument(s).
	 
	 	3.	 	Owner agrees to secure the required and fully executed Release of Lien from the
Mortgage Holder and deliver said document to Fidelity Title Company
at least (15) days prior to the close of escrow. The Escrow Officer will review the said document
and the close of escrow will proceed accordingly.
	 
	 	4.	 	Owner to retain the following improvements: Steel Sign Poles, Trade Sign(s),
Miscellaneous Lights and AC Units. Owner agrees and understands that the Owner
shall remove improvement(s) by January 7, 2008. In the event that Owner fails for
any reason to remove said improvement(s) within the time herein provided for title
to said improvement(s) including the portion or portions thereof located on the
Owners remaining property, shall vest in the State of Texas, all for the same
Consideration recited above.
	 
	 	5.	 	Universal Field Services, Inc. will continue to provide ongoing relocation
advisory Assistance regarding the (ODA) Outdoor Advertising Sign owned by Federal Health
Sign Company. All claims for relocation shall be filed with the agency no later than
18 months after the date if displacement or from the date the final payment is received
for the real estate.

Owner understands and agrees that it will be necessary for the State to enter upon the remaining
property out of which the above-described property was conveyed for the purpose of removing that
portion of the above-described improvements, which are located on such Owner’s remaining property.
Owner herby authorizes the State, its agents or assigns, to enter upon such remaining property of
the Owner as a result of such entry and removal of said improvement(s).

In consideration of the State’s allowing Owner to occupy the herein described land after its
acquisition by the State, Owner agrees that such occupancy shall terminate no later that January 7,
2008, subject, however to such written extensions of times as the State may grant. Such extensions
will be granted only upon a showing by Owner of extenuating circumstances, which in the sole
reasonable opinion of the State will justify such extension.

Owner agrees that such occupancy shall be for its benefit exclusively, and the Owner acknowledge
that the said occupancy hereunder shall be for its sole benefit and that no payment has been made
or is to be made to the State for use of such premises, and that any attempt to assign such
benefit, or to lease, rent, sublet, or in any manner suffer or permit occupancy of the land or
improvements thereon by a third party shall automatically suspend the operation of the provision,
and the State shall then have immediate right of possession.

 

 

With respect to any improvements located upon said land, title to which is to acquired by the
State, Owner shall make every reasonable effort to keep such improvements in good repair and shall
exercise such diligence as may be necessary to protect same from damage. Owner shall continue to
maintain adequate Casualty Insurance and Fire Loss policies through the period of Owner’s
occupancy.

Owner acknowledges that it is occupying the premises “AS IS” with all faults. Owner hereby waives
any and all causes of action, claims, demands, damages and liens based on any warranty, expressed
or implied, including but not limited to implied warranty of suitability for a particular purpose.

It is suggested that you carefully review the proposed Right of Way Deed and satisfy yourself as to
is provisions. With your signing of this agreement and execution of the deed the State will
proceed with the issuance of a State warrant which will be made out jointly to you and to Fidelity
Title Company, agent for the Texas Department of Transportation.

This company has been designated as the State’s closing agent and is responsible to see that TxDOT
obtains clear title. It will not endorse the warrant and make payment until clear title is
secured. At the same time, you have the right to withhold endorsement of the warrant and not
accept payment until you are fully satisfied on all details of the transaction.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Cheryl W. Bennett
 

	 	 
	 

	 	Cheryl W. Bennett, SR/WA	 	 
	 

	 	Regional Manager for Texas Projects	 	 
	 

	 	Universal Field Services, Inc.	 	 
	 

	 	On behalf of The Texas Department of	 	 
	 

	 	Transportation	 	 

I (We) fully understand the Texas Department of Transportation proposal as contained in the
agreement and hereby acknowledge receipt of the brochure entitled “Relocation Assistance.”

I (We) understand that relocation assistance benefits are handled entirely separate from and in
addition to this transaction and agree that my (our) execution of the Right of Way Deed is based on
this understanding.

DGSE CORPORATION

BY:

	 	 	 
	/s/ William H. Oyster
 

	 	 
	William H. Oyster, President     SSN or FEI

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