Document:

Exhibit 10.9

 

GRANT OF SECURITY
INTEREST IN PATENTS AND TRADEMARKS

 

THIS GRANT OF SECURITY INTEREST (“Grant”),
effected as of June 23, 2005, is executed by Time America, Inc., a
Nevada corporation (the “Grantor”), in favor of Laurus Master Fund, Ltd.
(the “Secured Party”).

 

A.            Pursuant
to (i) a Master Security Agreement dated as of March 22, 2004 (as
amended, restated, supplemented or otherwise modified from time to time, the “2004
Security Agreement”) among the Grantor, certain other Assignors (as defined
in the Master Security Agreement) and the Secured Party, the terms and
provisions of which are hereby incorporated herein as fully set forth herein
and (ii) a Security Agreement dated as of the date hereof (as amended,
restated, supplemented or otherwise modified from time to time, the “2005
Security Agreement” and, together with the 2004 Security Agreement, the “Security
Agreements” and each, a “Security Agreement”) among the
Grantor, certain other Companies (as defined in the 2005 Security Agreement),
and the Secured Party, the terms and provisions of which are hereby
incorporated herein as if fully set forth herein, in each case, the Grantor and
the other Companies and Assignors, as the case may be, have granted a security
interest to the Secured Party in consideration of the Secured Party’s agreement
to provide financial accommodations to such Companies and such Assignors.

 

B.            The
Grantor (1) has adopted, used and is using the trademarks reflected in the
trademark registrations and trademark applications in the United States Patent
and Trademark Office more particularly described on Schedule 1
annexed hereto as part hereof (the “Trademarks”), and (2) has
registered or applied for registration in the United States Patent and
Trademark Office of the patents more particularly described on Schedule 2
annexed hereto as part hereof (the “Patents”).

 

C.            The
Grantor wishes to confirm its grant to the Secured Party of a security interest
in all right, title and interest of the Grantor in and to the Trademarks and Patents,
and all proceeds thereof, together with the business as well as the goodwill of
the business symbolized by, or related or pertaining to, the Trademarks, and
the customer lists and records related to the Trademarks and Patents and all
causes of action which may exist by reason of infringement of any of the
Trademarks and Patents (collectively, the “T&P Collateral”), to
secure the payment, performance and observance of the Obligations (as that term
is defined in each Security Agreement).

 

NOW, THEREFORE, for good and valuable consideration,
receipt of which is hereby acknowledged:

 

1.             The
Grantor does hereby further grant to the Secured Party a security interest in
the T&P Collateral to secure the full and prompt payment, performance and
observance of the Obligations.

 

2.             The
Grantor agrees to perform, so long as either Security Agreement is in effect,
all acts deemed necessary or desirable by the Secured Party to permit and
assist it, at the Grantor’s expense, in obtaining and enforcing the Trademarks
and Patents in any and all countries. 
Such acts may include, but are not limited to, execution of documents
and assistance or cooperation in legal proceedings.  The Grantor hereby appoints the Secured Party
as the Grantor’s attorney-in-fact to execute and file any and all agreements,
instruments, documents and papers as the Secured Party may determine to be
necessary or desirable to evidence the Secured Party’s security interest in the
Trademarks and Patents or any other element of the T&P Collateral, all acts
of such attorney-in-fact being hereby ratified and confirmed.

 

3.             The
Grantor acknowledges and affirms that the rights and remedies of the Secured
Party with respect to the security interest in the T&P Collateral granted
hereby are more fully set forth in the Security Agreements and the rights and
remedies set forth herein are without prejudice to, and are in addition to,
those set forth in the Security Agreements. 
In the event that any provisions of this Grant are deemed to conflict
with either Security Agreement, the provisions of such Security Agreement shall
govern.

 

4.             The
Grantor hereby authorizes the Secured Party to file all such financing
statements or other instruments to the extent required by the Uniform
Commercial Code and agrees to execute all such other documents,

 

 

agreements and instruments as may
be required or deemed necessary by the Secured Party, in each case for purposes
of affecting or continuing Secured Party’s security interest in the T&P
Collateral.

 

IN WITNESS WHEREOF, the Grantor has caused this
instrument to be executed as of the day and year first above written.

 

	
   

  	
  TIME AMERICA, INC., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE 1 TO
GRANT OF SECURITY INTEREST

 

REGISTERED
TRADEMARKS AND TRADEMARK APPLICATIONS

 

	
  Trademark

  	
   

  	
  Registration or

  Application Number

  	
   

  	
  Registration or

  Application Date

  	
   

  	
  Country

  	
   

  
	
  NETTIME

  	
   

  	
  2,960,030

  	
   

  	
  4/24/01

  	
   

  	
  U.S.A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE 2 TO
GRANT OF SECURITY INTEREST

 

PATENTS AND PATENT
APPLICATIONS

 

NoneWasserman Transition Agreement

    Exhibit
      10.1

    

    

    

    July
      20,
      2005

    

    Dr.
      Martin A. Wasserman

    

    Dear
      Marty,

    

    This
      letter memorializes our discussions regarding your voluntary retirement from
      AtheroGenics, Inc. (the "Company") and the transition services that you have
      agreed to provide in order to ensure a smooth transition. AtheroGenics is
      entering into this Transition Agreement (“Agreement”), in part, in recognition
      of the valuable services you have provided to the Company over the last several
      years.

    

    Because
      this is an important Agreement, I want you to feel comfortable about this
      Agreement before you sign it. Therefore, the following ground rules will apply
      to the execution of this Agreement: 

    

    
      	·  	
              You
                should review it carefully and, if you agree to it, sign in the space
                where your agreement is indicated.

            

    

    

    
      	·  	
              You
                have up to 21 days to decide whether or not to sign this Agreement.
                During
                this time, you should feel free, if you believe that it is appropriate
                and
                necessary, to have this Agreement reviewed by a financial advisor
                or
                attorney of your choice at your expense prior to signing this
                document.

            

    

    

    
      	·  	
              After
                signing this Agreement you have seven working days to revoke your
                agreement to the terms of this document. Any revocation should be
                in
                writing and delivered to AtheroGenics, Inc. 8995 Westside Pkwy.,
                Alpharetta, GA 30004, Attn: Russell M. Medford, M.D., Ph.D., by the
                close
                of business at the end of the seventh business day after signing
                this
                document.

            

    

    

    
      	·  	
              This
                Agreement will not become effective until the seven-day revocation
                period
                has passed. 

            

    

    

    TRANSITION
      AGREEMENT

    

    
      	1.  	
              I
                have read the instructions above.

            

    

    

    
      	2.  	
              I
                agree that my last day of employment with AtheroGenics, Inc. will
                be
                August 1, 2005.

            

    

    

    
      	3.  	
              I
                agree that in order to help ensure a smooth transition after my
                retirement, I will remain available to consult with the Company in
                person
                or by telephone for up to 40 hours per month for the three months
                ended
                October 31, 2005. Such services will be provided at a time and place
                that
                is mutually convenient for me and the Company. If I am required to
                travel,
                then all reasonable expenses will be paid by the Company.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	4.  	
              For
                the next three months (November 1, 2005 to January 31, 2006), I will
                remain available to consult with the Company in person or by telephone
                for
                up to 20 hours per month. Such services will be provided at a time
                and
                place that is mutually convenient for me and the Company. If I am
                required
                to travel, then all reasonable expenses will be paid by the Company.
                

            

    

    

    During
      the period from August 1, 2005 to October 31, 2005, the Company will pay me
      six
      semi-monthly payments of $11,830 each (for a total of $70,980), less normal
      payroll tax and other customary deductions. 

    

    
      	5.  	
              The
                Company will continue my health insurance until I reach the age of
                65 by
                paying the company’s share of COBRA premiums until such
                date.

            

    

    

    
      	6.  	
              The
                Company will pay to me a pro rata share of my target incentive
                compensation for 2005, which will total
                $46,374.

            

    

    

    
      	7.  	
              I
                will receive vesting of my outstanding options through October 31,
                2005,
                as if I had remained employed by the Company through that
                date.

            

    

    

    
      	8.  	
              In
                consideration of the payment to me of the sums described in Sections
                5, 6
                and 7 of this Agreement and other good and valuable consideration,
                I
                hereby irrevocably and unconditionally release, acquit and forever
                discharge the Company and each of its shareholders, successors,
                predecessors, assigns, agents, directors, officers, employees,
                representatives, and attorneys, and all persons acting by, through,
                under
                or in concert with any of them (collectively, the "Releasees"), from
                any
                and all charges, complaints, claims, liabilities, obligations, promises,
                agreements, controversies, damages, actions, causes of action, suits,
                rights, demands, costs, losses, debts, and expenses of any nature
                whatsoever, known or unknown, suspected or unsuspected, including,
                but not
                limited to, any claims for notice, pay in lieu of notice, wrongful
                dismissal, severance pay, bonus, overtime pay, incentive compensation,
                interest, vacation pay, any rights arising out of alleged violations
                or
                breaches of any contracts, express or implied, or any tort, or any
                legal
                restrictions on the Company’s right to terminate employees, or any
                federal, state or other governmental statute, regulation or ordinance,
                including, without limitation: (i) Title VII of the Civil Rights
                Act of
                1964, as amended by Civil Rights Act of 1991, (race, color, religion,
                sex,
                and national origin discrimination); (ii) 42 U.S.C. § 1981
                (discrimination); (iii) Age Discrimination in Employment Act (age
                discrimination); (iv) the Americans with Disabilities Act (disability
                discrimination); (v) 29 U.S.C. § 206(D)(1)(equal pay); (vi) intentional or
                negligent infliction of emotional distress or "outrage"; and (vii)
                defamation; (collectively the "Claims"), which I may now have, own
                or
                hold, or claim to have, own or hold, or which I may at any time heretofore
                have had, owned or held, or claimed to have had, owned or held, against
                any one of more of the Releasees at any time up to and including
                the date
                of this Agreement.

            

    

    

    
      	9.  	
              I
                understand that various federal, state, and local laws prohibit age,
                sex,
                national origin, race, and other forms of employment discrimination,
                and
                that these laws are enforced through the U.S. Equal Employment Opportunity
                Commission, and similar state and local agencies. If I believed that
                my
                treatment by the Company had violated any of these anti-discrimination
                laws, I understand that I could consult with these agencies and file
                a
                charge with them. I am not aware of any such
                violations.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	10.  	
              I
                agree to keep the terms of this Agreement strictly private and
                confidential and I will not disclose any of the terms of this Agreement
                to
                other persons, except for legal or other advisors, unless required
                by
                law.

            

    

    

    
      	11.  	
              As
                of the date of this Agreement, I am not aware of any occurrence at
                the
                Company that would constitute a violation of the Company’s internal
                policies or of any federal, state or local law, except as set forth
                below:

            

    

    
      
        
           

          
            
              

            

          

        

      

    

    
       

      
        
          

        

      

    

     

    
      	12.  	
              The
                provisions of this Agreement set forth the entire agreement between
                me and
                the Company concerning my retirement and employment except for any
                noncompete or non-solicitation clauses contained in my employment
                agreement which will survive. Any other promises, written or oral,
                are
                replaced by the provisions of this Agreement, and are no longer effective
                unless they are contained in this
                document.

            

    

    

    
      	13.  	
              I
                hereby expressly waive the provisions of California Civil Code section
                1542, which provides as follows:

            

    

    

    “A
      general release does not extend to claims which the creditor does not know
      or
      suspect to exist in his favor at the time of executing the release, which if
      known by him must have materially affected his settlement the
      debtor.”

    

    Please
      review this document and, if you agree, please sign it and return it to me
      so
      that we will have an agreement.

    

        Very
      truly
      yours,

                                     /s/RUSSELL
      M.
      MEDFORD

        Russell
      M.
      Medford, M.D., Ph.D.

        President
      & Chief Executive Officer

    

    I
      agree
      to the terms of this Transition Agreement:

    

    /s/MARTIN
      A. WASSERMAN  Date: 
      7/20/05

    Dr.
      Martin A. Wasserman

     

    
      
        
        

      

      
        3

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