Document:

Exhibit 10.2

    
      
        

      

       

      Exhibit
        10.2

       

      AGREEMENT

       

      By
        and Between

       

      Tidel
        Technologies, Inc.,

      Tidel
        Engineering, L.P.

       

      and

       

      Laurus
        Master Fund, Ltd.

       

      
        	 
	
                 

                Dated
                  as of June 9, 2006

                 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AGREEMENT

       

      This
        Agreement (this “Agreement”) is made and entered into as of June 9, 2006 between
        Tidel Technologies, Inc., a Delaware corporation (the “Company”), Tidel
        Engineering, L.P. (“Engineering”) and Laurus Master Fund, Ltd., a Cayman Islands
        company (“Laurus”).

       

      W 
         I   T   N   E   S 
 S   E   T   H :

       

      WHEREAS,
        the Company and Engineering have sold substantially all of the assets of
        the
        Company’s automated teller machine business to NCR EasyPoint LLC (the “ATM
        Sale”) pursuant to the Asset Purchase Agreement, dated as of February 19, 2005,
        as amended;

       

      WHEREAS,
        the Company and Engineering have entered into an Asset Purchase Agreement
        with
        Sentinel Operating, L.P. (“Sentinel”) dated as of January 12, 2006, to sell the
        Company’s cash security business (the “TACC Sale”), as amended and restated
        pursuant to the Amended and Restated Asset Purchase Agreement dated as of
        June
        9, 2006 (the “Amended APA”) and attached hereto as Exhibit A; 

       

      WHEREAS,
        the proposed TACC Sale requires the approval of the holders of a majority
        of the
        outstanding shares of the Company’s common stock, $.01 par value per share (the
“Common Stock”);

       

      WHEREAS,
        the Company has entered into a Stock Redemption Agreement with Laurus dated
        as
        of January 12, 2006, as amended as of February 28, 2006 and the date hereof
        (as
        amended, the “Redemption Agreement”) pursuant to which the Company has agreed,
        among other things, to redeem all shares of Common Stock held by Laurus,
        immediately following the closing of the TACC Sale;

       

      WHEREAS,
        the Company has entered into an Exercise and Conversion Agreement with Laurus,
        Sentinel and Sentinel Technologies, Inc., dated as of January 12, 2006, as
        amended as of February 28, 2006 and the date hereof (as amended, the “Exercise
        Agreement”) pursuant to which the Company has agreed, among other things, that
        at any time on or after September 30, 2006, Laurus is authorized to apply
        the
        Collateral Deposit (as defined therein) to the payment of the Redemption
        Amount
        (as defined therein):

       

      WHEREAS,
        the Company has entered into an Agreement Regarding NCR Transaction and Other
        Asset Sales with Laurus, dated as of November 26, 2004 (the “Sale Agreement”),
        pursuant to which the Company agreed, among other things, to make certain
        payments to Laurus upon the consummation of the ATM Sale and the TACC
        Sale;

       

      WHEREAS,
        the Company and Laurus desire to resolve certain outstanding matters between
        them as provided herein to avoid uncertainty, to expedite the contemplated
        transactions and to reduce costs and expenses for the benefit of all parties
        following the closing of the TACC Sale.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      Section
        1.  Amendment
        of Sale Agreement, and related matters.

       

      (a)  Upon
        the
        closing of the TACC Sale, the Company shall pay to Laurus $8,508,963 in
        immediately available funds (the “Sale Fee”) in full satisfaction of all amounts
        due and owing to Laurus under the Sale Agreement, and following payment of
        such
        amount the Sale Agreement shall terminate and be of no further force and
        effect.

       

      (b)  Upon
        the
        payment of the Sale Fee by the Company to Laurus, the Reaffirmation,
        Ratification and Confirmation Agreement dated January 12, 2006 between the
        Company and Laurus shall terminate and be of no further force and
        effect.

       

      (c)  Following
        the payment of the Sale Fee by the Company to Laurus and the performance
        by the
        Company of all of its obligations (financial and otherwise) under and pursuant
        to the Redemption Agreement, all remaining amounts held under the Cash
        Collateral Deposit Letter (the “Cash Collateral Deposit Letter”) dated January
        12, 2006 among Laurus, the Company, Engineering, Tidel Services, Inc., Tidel
        Cash Systems, Inc. and AnyCard International, Inc. shall be paid to the Company
        by Laurus.

       

      Section
        2.  Termination
        of Obligations.

       

      Following
        the closing of the TACC Sale, the payment of the Sale Fee by the Company
        to
        Laurus and the performance by the Company of all of its obligations (financial
        and otherwise) under and pursuant to the Redemption Agreement, the parties
        agree
        that neither the Company nor Engineering or any of their subsidiaries shall
        have
        any further obligations due to, owing to or to be performed by them for Laurus,
        all warrants to purchase the Common Stock held by Laurus shall terminate
        and be
        of no further force and effect and all liens, claims, encumbrances and security
        interests held by Laurus, or its transferees or assignees, in the Company’s and
        Engineering’s, and each of their subsidiaries’, assets shall terminate and be of
        no further force and effect.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        3.  Releases.

       

      (a)  Release
        by Laurus.
        Upon
        and subject to the closing of the TACC Sale, the payment of the Sale Fee
        by the
        Company to Laurus and the performance by the Company of all of its obligations
        (financial and otherwise) under and pursuant to the Redemption Agreement,
        Laurus, individually and on behalf of its officers, directors, affiliates,
        successors and assigns (together, the “Laurus Releasors”), hereby remises,
        releases and forever discharges the Company and Engineering, and each of
        their
        predecessors, parents, subsidiaries, affiliates, and the past, present and
        future officers, directors, partners, members, employees, agents, consultants,
        representatives, attorneys, and insurers of any of the foregoing, together
        with
        all successors and assigns of any of the foregoing (collectively, the “Tidel
        Releasees”) of and from all claims, demands, actions, causes of action, rights
        of action, debts, dues, bonds, bills, judgments, contracts, controversies,
        covenants, obligations, agreements, damages, penalties, interest, fees,
        expenses, costs, remedies, accounts, reckonings, extents, responsibilities,
        liabilities, suits, and proceedings of whatsoever kind, nature, or description,
        direct or indirect, vested or contingent, known or unknown, suspected or
        unsuspected, in contract, tort, law, equity, or otherwise, under the laws
        of any
        jurisdiction, that Laurus Releasors ever had, or now have, for, upon, or
        by
        reason of any matter, cause or thing whatsoever from the beginning of the
        world
        to the date of this Agreement; provided,
        however,
        that
        the foregoing release shall not extend to (i) any claims arising from the
        breach
        of this Agreement by any of the Tidel Releasees
        or (ii)
        any rights the Laurus Releasors may have pursuant to the collateral assignment
        made by Sentinel to Laurus in respect of the Amended APA.

       

      (b)   Release
        by the Company and Engineering.
        Upon
        and subject to the closing of the TACC Sale, the payment of the Sale Fee
        by the
        Company to Laurus and the performance by the Company of all of its obligations
        (financial and otherwise) under and pursuant to the Redemption Agreement,
        the
        Company and Engineering, individually and on behalf of each of its officers,
        directors, affiliates, successors and assigns (together, the “Tidel Releasors”),
        hereby remises, releases and forever discharges Laurus, and its predecessors,
        parents, subsidiaries, affiliates, and the past, present and future officers,
        directors, partners, members, employees, agents, consultants, representatives,
        attorneys, and insurers of any of the foregoing, together with all successors
        and assigns of any of the foregoing (collectively, the “Laurus Releasees”) of
        and from all claims, demands, actions, causes of action, rights of action,
        debts, dues, bonds, bills, judgments, contracts, controversies, covenants,
        obligations, agreements, damages, penalties, interest, fees, expenses, costs,
        remedies, accounts, reckonings, extents, responsibilities, liabilities, suits,
        and proceedings of whatsoever kind, nature, or description, direct or indirect,
        vested or contingent, known or unknown, suspected or unsuspected, in contract,
        tort, law, equity, or otherwise, under the laws of any jurisdiction, that
        Tidel
        Releasors, ever had or now have, for, upon, or by reason of any matter, cause
        or
        thing whatsoever from the beginning of the world to the date of this Agreement;
        provided, however, the foregoing release shall not extend to any claims arising
        from the breach of this Agreement by any of the Laurus Releasees.

       

      Section
        4.  Miscellaneous.

       

      (a)  Expenses.
        Each
        party shall pay its own costs and expenses incurred in connection with this
        Agreement.

       

      (b)  Notices.
        All
        notices, requests, demands and other communications which are required or
        may be
        given under this Agreement shall be in writing and shall be deemed to have
        been
        duly given when delivered personally or by facsimile transmission, in either
        case with receipt acknowledged, or five days after being sent by registered
        or
        certified mail, return receipt requested, postage prepaid, or one day after
        being sent by nationally-recognized overnight carrier:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	 	
                    (i)

                  	
                    If
                      to the Company to:

                  
	 	 	 
	 	 	
                    Tidel
                      Technologies, Inc.

                  
	 	 	
                    2900
                      Wilcrest Drive, Suite 105

                  
	 	 	
                    Houston,
                      Texas 77042

                  
	 	 	
                    Attention:
                      Chairman of the Board

                  
	 	 	 
	 	 	
                    with
                      a copy to:

                  
	 	 	 
	 	 	
                    Olshan
                      Grundman Frome Rosenzweig & Wolosky LLP

                  
	 	 	
                    Park
                      Avenue Tower

                  
	 	 	
                    65
                      East 55th
                      Street

                  
	 	 	
                    New
                      York, New York 10022

                  
	 	 	
                    Attention:
                      Adam W. Finerman, Esq.

                  
	 	 	 
	 	
                    (ii)

                  	
                    If
                      to the Seller, to:

                  
	 	 	 
	 	 	
                    Laurus
                      Master Fund, Ltd.

                  
	 	 	
                    M
                      & C
                      Corporate Services Limited

                  
	 	 	
                    P.O.
                      Box 309
                      G.T., Ugland
                      House

                  
	 	 	
                    South
                      Church Street

                  
	 	 	
                    George
                      Town

                  
	 	 	
                    Grand
                      Cayman, Cayman Islands

                  
	 	 	
                    Attention:
                      Authorized Person

                  
	 	 	 
	 	 	
                    with
                      a copy to:

                  
	 	 	 
	 	 	
                    Loeb
                      & Loeb LLP

                  
	 	 	
                    345
                      Park Avenue

                  
	 	 	
                    New
                      York, New York 10154

                  
	 	 	
                    Attn:
                      Scott Giordano, Esq.

                  
	 	 	 
	 	 	
                    and

                  
	 	 	 
	 	 	
                    Lowenstein
                      Sandler PC

                  
	 	 	
                    1251
                      Avenue of the Americas

                  
	 	 	
                    New
                      York, New York 10020

                  
	 	 	
                    Attn:
                      Steven E. Siesser, Esq.

                  

          

        

      

       

      or
        to
        such other address as any party shall have specified by notice in writing
        to the
        other in compliance with this Section 4.

       

      (c)  Amendment.
        Laurus
        hereby consents to the execution and performance of the Amended
        APA.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d)  Entire
        Agreement.
        This
        Agreement constitutes the entire agreement among the parties hereto with
        respect
        to the subject matter hereof and supersedes all prior agreements,
        representations and understandings among the parties hereto.

       

      (e)  Binding
        Effect, Benefits, Assignments.
        This
        Agreement shall inure to the benefit of and be binding upon the parties hereto
        and their respective successors and assigns; nothing in this Agreement,
        expressed or implied, is intended to confer on any other person, other than
        the
        parties hereto or their respective successors and assigns, any rights, remedies,
        obligations or liabilities under or by reason of this Agreement. This Agreement
        may not be assigned by the Company without the prior written consent of Laurus.
        This Agreement may only be assigned by Laurus together with and as a part
        of the
        assignment of the Sale Agreement and all of the Laurus Documents (as defined
        in
        the Cash Collateral Deposit Letter).

       

      (f)
          Applicable
        Law.
        This
        Agreement and the legal relations between the parties hereto shall be governed
        by and construed in accordance with the laws of the State of New York, without
        regard to principles of conflicts of law.

       

      (g)  Jurisdiction.
        Unless
        otherwise provided herein, the parties hereto agree to submit to the
        jurisdiction of any Federal or state court located in the State of New
        York,
        County
        of New York,
        for the
        purpose of resolving any action or claim arising out of the performance of
        the
        provisions of this Agreement.

       

      (h)  Headings.
        The
        headings and captions in this Agreement are included for purposes of convenience
        only and shall not affect the construction or interpretation of any of its
        provisions.

       

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

       

      (j)
          Further
        Assurances.
        At, and
        from time to time after the date hereof, at the request and expense of the
        Company
        but
        without further consideration, Seller will execute and deliver such other
        instruments of conveyance, assignment, transfer, and delivery and take such
        other action as the Company reasonably may request in order more effectively
        to
        convey, transfer, assign and deliver to the Company, and to place the Company
        in
        possession and control of the Shares.

       

      (j)
  Agreement
        Void Ab Initio.
        If (i)
        the purchase price (as adjusted) for the TACC Sale is less then the amount
        set
        forth in the Amended APA, (ii) the Amended APA is amended in any material
        respect, or (iii) the TACC Sale has not closed on or before September 30,
        2006,
        then this Agreement shall be deemed Void Ab Initio and shall be of no further
        force and effect.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        day
        and year hereinabove first set forth.

       

      
        
          
            
              
                
                  
                    	 	
                            TIDEL
                              TECHNOLOGIES, INC.

                          
	 	 	 
	 	 	 
	 	
                            By:

                          	
                            /s/
                              Jerell G. Clay

                          
	 	 	
                            Name:
                              Jerrell G. Clay

                          
	 	 	
                            Title:
                              Director

                          
	 	 	 
	 	
                            TIDEL
                              ENGINEERING, L.P.

                          
	 	
                            By:
                              Tidel Cash Systems, Inc., 

                          
	 	its
                            managing general partner
	 	 	 
	 	
                            By:

                          	
                            /s/
                              Leonard Carr

                          
	 	 	
                            Name:
                              Leonard Carr

                          
	 	 	
                            Title:
                              Vice President and Secretary

                          
	 	 	 
	 	
                            LAURUS
                              MASTER FUND, LTD.

                          
	 	 	 
	 	 	 
	 	
                            By:

                          	
                            /s/
                              Eugene Grin

                          
	 	 	
                            Name:
                              Eugene Grin

                          
	 	 	
                            Title:
                              DirectorExhibit 10.3

    
      

    

    Exhibit
      10.3

     

    SECOND
      AMENDMENT TO STOCK REDEMPTION AGREEMENT

     

    This
      Second Amendment to Stock Redemption Agreement (this “Second Amendment”) is made
      and entered into as of June 9, 2006 between Tidel Technologies, Inc., a Delaware
      corporation (the “Company”), and Laurus Master Fund, Ltd., a Cayman Islands
      company (the “Seller”).

     

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

     

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

     

    Each
      of
      Section 4, Section 9(a) and Section 9(b) of the Agreement is amended by deleting
      the date “May 31, 2006” in the ultimate sentence thereof and substituting in
      lieu thereof the date “September 30, 2006” in each such section.

     

    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, the parties hereto have executed this Second Amendment as
      of
      the day and year hereinabove first set forth.

    

      
        	 	
                TIDEL
                  TECHNOLOGIES, INC.

              
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/
                  Jerrell G. Clay

              
	 	 	
                Name:

              	
                Jerrell
                  G. Clay

              
	 	 	
                Title:

              	
                Director

              
	 	 	 	 
	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/
                  Eugene Grin

              
	 	 	
                Name:
                  

              	
                Eugene
                  Grin

              
	 	 	
                Title:
                  

              	
                Director

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