Document:

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                                                                    EXHIBIT 10.2

                              SECURITY AGREEMENT

   This Security Agreement ("Agreement") is made as of the 5th day of January,
2000 among CASH TECHNOLOGIES, INC. with an address at 1434 West 11th Street, Los
Angeles, California 90015 (the "Company"), and GunnAllen Financial, Inc., a
Florida corporation with an address at 1715 North Westshore Blvd., Suite 700,
Tampa, Florida 33607, as agent (the "Agent") for the Note Holders (as defined
                                    below).

                                   RECITALS

A.   Certain persons (the "Note Holders" have agreed to lend the Company an
aggregate of up to $3,350,000 (the "Loan") and the Company desires to borrow
such funds from the Note Holders pursuant to the terms of certain Secured
Convertible Promissory Notes issued by the Company to the Note Holders in the
aggregate principal amount of up to $3,375,000 (the "Notes") pursuant to the
Company's Confidential Private Offering Memorandum dated December 31, 1999 (the
"Offering").

B.   In order to induce the Note Holders to make the Loan, the Company has
agreed to grant to the Note Holders a security interest and lien in and to all
of the Company's assets for purposes of securing payment and performance of its
obligations under the Notes and this Security Agreement, as the same may be
amended, modified, supplemented, restated, extended, renewed or refinanced at
any time or from time to time in accordance with their terms (the "Secured
Obligations").

C.   NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
<PAGE>

1.   Grant of Security Interest. To secure to the Note Holders the prompt
and full payment and performance of the Secured Obligations, the Company hereby
grants to the Note Holders a first priority continuing security interest and
lien in and to all of the assets of the Company of all kinds and descriptions,
wherever the same may now or hereafter be located, now existing and/or owned and
hereafter arising or acquired, or in which the Company may acquire an interest
(to the extent of such interest), including, without limitation: all (i)
accounts; (ii) chattel paper; (iii) contract rights; (iv) documents; (v) general
intangibles, including, without limitation, all rights to receive payment of
money or property not constituting "accounts" under the UCC (as defined below),
whether under any contract, undertaking or arrangement or pursuant to any law
rule or regulation (including, without limitation, tax refunds, condemnation and
damage awards, judgments, royalties and license fees), all trade secrets,
proprietary information, tradenames, copyrights, copyright applications, patent
applications, patents, trademarks, trademark registrations, computer software,
service marks and applications therefor and all other rights, interests and
property generally understood to constitute intellectual property and all rights
as licensor or licensee under intellectual property license agreements
(including, without limitation, United States patent applications numbered
60/062,751, 09/328,529, 60/067,123 and 09/347,069 (vi) instruments; (vii)
equipment; (viii) inventory; (ix) goods; (x) (to the extent not otherwise
included in clause (vii) above) equipment, fixtures, furniture and furnishings
now or hereafter located upon any real property of the Company, and used or
usable in connection with any future occupancy or use of such property; (xi)
deposits and any other indebtedness at any time held or owing by any bank to or
for the credit or the account of the Company; (xii) claims or payments made
under any insurance policy;  (xiii) investment property (as defined in the UCC),
including, without limitation, rights in investment securities, whether
certificated or uncertificated and rights in securities commodities accounts;
(xiv) interest of the Company in any goods, the sale or lease of which shall
have given or shall give rise to, and in all guaranties and other property
securing the payment of or performance under, any accounts, contracts, general
intangibles or any chattel paper or instruments referred to above; (xv) all
replacements, substitutions, additions or accessions to or for any of the
foregoing; (xvi) (to the extent related to the property described above) books,
files, records and other papers and documents, including, without limitation, to
the extent so related, all tapes, computer runs, computer programs and other
papers and documents in the possession or control of the Company or any computer
bureau from time to time acting for the Company; (xvii) (to the extent not
otherwise included) all attachments, accessories, accessions, substitutions and
replacements of or to any or all of the foregoing types of tangible Collateral
(as defined below); and (xviii) (to the extent not otherwise included) proceeds
and products of any and all of the foregoing (collectively, the "Collateral").
The Agent will file, and the Company consents to such filing, the appropriate
forms to perfect the Note Holders' security interest in the Collateral in
compliance with the UCC.  "UCC," as used herein, means the Uniform Commercial
Code as in effect on the date of this Agreement in the State of California.

ii.  Covenants and Warranties. The Company represents, warrants, covenants
and agrees as follows:
<PAGE>

(i)    The Company is the sole owner of the Collateral, free and clear of any
liens, security interests or other encumbrances (other than liens solely on
specific equipment subject to equipment leases (such equipment having a fair
market value of not more than $500,000 in the aggregate)) (collectively, the
"Permitted Liens");

(ii)   Performance of this Agreement does not conflict with or result in a
breach of any agreement to which the Company is bound;

(iii)  The Company will not (i) change the location of its chief executive
office or other places of business or remove its books and records from such
location, or (ii) remove any equipment or inventory from any location in which
it may be located (except for sales in the ordinary course of business), (c)
change its identity or corporate structure to such an extent that any financing
statement filed by or on behalf of the Note Holders would become misleading,
unless, in each of the foregoing cases the Company shall have given the Agent
and the Note Holders at least 30 days prior written notice thereof in reasonable
detail and shall do all things necessary to maintain the first priority status
of the Note Holders' security interest in the Collateral contemplated hereby;

(iv)   If any Event of Default (as defined in the Notes) shall occur, the Note
Holders may exercise any and all rights and remedies of a secured party after
default under the UCC;

(v)    No security agreement or financing statement with respect to all or any
part of the Collateral is on file or of record in any public office, except
security agreements or financing statements in respect of Permitted Liens. When
appropriate financing statements have been filed by or on behalf of the Note
Holders against the Company, the security interest granted pursuant to this
Agreement will constitute a perfected security interest (to the extent such
liens can be perfected by filing) in the Collateral in favor of the Note
Holders, which security interest will be prior to all other security interests
in and liens on the Collateral (other than Permitted Liens) and which security
interest is enforceable as such against all creditors of the Company;

(vi)   The Company agrees to pay, and to hold the Note Holders and the Agent
harmless from any and all liabilities, costs and expenses (including without
limitation, reasonable legal fees and expenses) (i) with respect to fees, taxes
or other costs incurred with respect to recording UCC financing statements and
(ii) in connection with any of the transactions contemplated by this Agreement
or the enforcement of the Agent's or the Note Holders' rights hereunder, except
those liabilities, costs and expenses arising out of the gross misconduct of the
Agent or the Note Holders. In any suit, proceeding or action brought by the
Agent or Note Holders under any account for any sum owing thereunder, or to
enforce any provisions of any account for any sum owing thereunder, or to
enforce any provisions of any account or contract, the Agent and Note Holders
shall be indemnified by the Company from and against all expense, loss or damage
suffered by the Agent and Note Holders in any such action, except for expenses,
loss or damage arising out of the gross misconduct of the Agent or the Note
Holders (in the case of indemnified amounts which would otherwise be owing to
the Agent or the Note Holders);
<PAGE>

(vii)  All information heretofore, herein or hereafter supplied to the
Agent and Note Holders by or on behalf of the Company with respect to the
Collateral is accurate and complete in all material respects; and

(viii) Any subsidiary formed or acquired by the Company shall, upon the
formation or acquisition thereof, join and be bound by this Agreement in the
same manner and to the same extent as the Company.

iii.   Inspection Rights. The Company hereby grants to the Agent and the Note
Holders and their respective  employees, representatives and agents the right to
visit, during reasonable hours upon prior reasonable written notice to the
Company, any of the Company's properties and/or facilities holding, utilizing
and/or representing any of the Collateral, and to inspect the records relating
thereto upon reasonable written notice to the Company and as often as may be
reasonably requested.

iv.    Further Assurances; Attorney in Fact.  At any time and from time to
time, upon the written request of a Note Holder or the Agent, at the sole
expense of the Company, the Company will promptly and duly execute and deliver
such further instruments and documents and take such further action as the Note
Holder or Agent may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and the rights and powers herein
granted, including, without limitation, the filing of any financing or
continuation statements under the UCC in effect in any jurisdiction with respect
to the liens created hereby.  The Company hereby authorizes the Agent on behalf
of the Note Holders to file any such financing or continuation statement without
the signature of the Company, as the case may be, to the extent permitted by
applicable law, and the Agent agrees to provide the Company with a copy of any
such statement filed by the Agent.  The Company hereby irrevocably appoints the
Agent as the Company's attorney in fact for the purpose of signing the Company's
name to any such financing and continuation statements.  A carbon, photograph or
other reproduction of this Security Agreement shall be sufficient as a financing
statement for filing in any jurisdiction.

v.     Events of Default. The occurrence of any of the following shall
constitute an Event of Default under this Agreement:

(i)    An Event of Default (as defined in the Notes) occurs under any of the
Notes; or

(ii)   The Company breaches any warranty or agreement made by the Company in
this Agreement which breach is not cured in a timely manner as provided herein.

vi.    Remedies. Without limiting the generality of the remedies available to
the Note Holders, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law
referred to below) to or upon the Company (all and each of which demand,
presentments, protests, advertisements and notices are hereby
<PAGE>

waived), the Note Holders (or the Agent on behalf of the Note Holders) may in
such circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker's
board or office of the Note Holders or elsewhere upon such terms and conditions
as it may deem advisable and at such prices as it may deem best, for cash or on
credit or for future delivery without assumption of any credit risk. The Note
Holders (or the Agent on behalf of the Note Holders) shall have the right upon
any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral
so sold. The Company further agrees, at the Note Holders' request (or the
Agent's request on behalf of the Note Holders), to assemble the Collateral and
make it available to the Note Holders at the places which the Note Holders (or
the Agent on behalf of the Note Holders) shall reasonably select, whether at the
Company's premises or elsewhere. The Note Holders (or the Agent on behalf of the
Note Holders) shall apply the net proceeds of any such collection, recovery,
receipt, appropriation, realization or sale, after deducting all reasonable
costs and expenses of every kind incurred therein or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Note Holders hereunder, including, without limitation,
reasonable attorneys' fees and disbursements, to the payment in whole or in part
of the Secured Obligations, in such order as the Note Holders may elect; and
only after such application and after the payment by the Note Holders of any
other amount required by any provision of law, including, without limitation,
any provision of the UCC, need the Note Holders account for the surplus, if any,
to the Company. To the extent permitted by applicable law, the Company waives
all claims, damages and demands it may acquire against the Note Holders arising
out of the exercise by the Note Holders (or the Agent on behalf of the Note
Holders) of any rights thereof hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by law, such notice shall be
deemed reasonable and proper if given at least five (5) days before such sale or
other disposition. The Company shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to
pay the Secured Obligations and the reasonable fees and disbursements of any
attorneys employed by the Note Holders (or the Agent on behalf of the Note
Holders) to collect such deficiency.

vii.   Attorneys' Fees. If any action relating to this Agreement is brought
by either party hereto against the other party, the prevailing party shall be
entitled to recover reasonable attorneys fees, costs and disbursements.

viii.  Amendments. This Agreement may be amended only by a written instrument
signed by the parties hereto.

ix.    Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute the same instrument.
<PAGE>

x.     California Law.  This Agreement shall be governed by the laws of the
State of California, without regard for choice of law provisions thereof.

xi.    Consent to Jurisdiction; Waiver of Jury Trial.

xii.   The Company, the Note Holders and the Agent each (i) agrees
that any legal suit, action or proceeding arising out of or relating to this
Agreement shall be instituted exclusively in the appropriate State Court, County
of Los Angeles or in the United States District Court for the District of Los
Angeles, (ii) waives any objection which the Company may have now or hereafter
based upon forum non conveniens or to the venue of any such suit, action or
proceeding, and (iii) irrevocably consents to the jurisdiction of the State
Courts, County of Los Angeles and the United States District Court for the
District of Los Angeles in any such suit, action or proceeding.  The Company,
the Note Holders and the Agent each further agrees to accept and acknowledge
service of any and all process which may be served in any such suit, action or
proceeding in the State Court, County of Los Angeles or in the United States
District Court for the District of Los Angeles and agrees that service of
process upon the Company, the Note Holders and the Agent, mailed by certified
mail to their respective addresses, such service to become effective three (3)
business days after such mailing, will be deemed in every respect effective
service of process upon the Company, the applicable Note Holders or the Agent,
as the case may be, in any suit, action or proceeding.  FURTHER, THE COMPANY,
THE NOTE HOLDERS AND THE AGENT HEREBY WAIVE TRIAL BY JURY IN ANY ACTION TO
ENFORCE THIS AGREEMENT AND IN CONNECTION WITH ANY DEFENSE, COUNTERCLAIM OR
CROSSCLAIM ASSERTED IN ANY SUCH ACTION.

xiii.  The Agent.  By its acceptance of the Notes and this Agreement, each
Note Holder agrees as follows:

(i)  The Agent shall be deemed to be authorized on behalf of each Note Holder to
act on behalf of such Note Holder under this Agreement and, in the absence of
written instructions from the Note Holders received from time to time by the
Agent (with respect to which the Agent agrees that it will, subject to the last
two sentences of this Section 12(a), comply, except as otherwise advised by
counsel), to exercise such powers hereunder as are specifically delegated to or
required of the Agent by the terms hereof, together with such powers reasonably
incidental thereto. The Agent shall have no duty to ascertain or inquire as to
the performance or observance of any of the terms of this Agreement or the Notes
by the Company. Each Note Holder will indemnify the Agent from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may at any time be imposed upon, incurred by, or asserted
against the Agent in any way based upon, relating to or arising out of this
Agreement, the Notes or any other agreement or document executed and delivered
to the Note Holders or the Agent by the Company ("Other Documents"), including
the reimbursement of the Agent for all out-of-pocket expenses (including
reasonable attorneys' fees) incurred by the Agent hereunder or in connection
<PAGE>

herewith or in enforcing the Secured Obligations of the Company under this
Agreement in all cases as to which the Agent is not reimbursed by the Company;
provided, however, that the Note Holders shall not be liable for the payment
--------
of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements determined by a
court of competent jurisdiction in a final nonappealable judgment to have
resulted solely from the Agent's willful misconduct. The Agent shall not be
required to take any action under this Agreement or under the Notes, or to
prosecute or defend any suit in respect of this Agreement or the Notes, unless
the Agent is indemnified to its reasonable satisfaction by the Note Holders
against loss, costs, liability and expense. If any indemnity in favor of the
Agent shall become impaired, the Agent may call for additional indemnity and
cease to do the acts indemnified against until such additional indemnity is
given.

(ii)   Neither the Agent nor any of its directors, officers, partners, employees
or agents or any officers, directors, employees, consultants of such parties,
shall be liable to the Note Holders for any action taken or omitted to be taken
by it under this Agreement, the Notes or the Other Documents, or in connection
herewith or therewith, except for the Agent's own willful misconduct. The Agent
shall not be responsible to any Note Holders for any recitals, statements,
representations or warranties in this Agreement, the Notes or the Other
Documents or any certificate or other document delivered in connection herewith
or for the authorization, execution, effectiveness, genuineness, validity,
enforceability, perfection, collectibility, or sufficiency of the Notes, this
Agreement or any of the Other Documents, the financial condition of the Company
or the condition or value of any of the Collateral under this Agreement, or be
required to make any inquiry concerning either the performance or observance of
any of the terms, provisions or conditions of any of the Notes, this Agreement
or the Other Documents, the financial condition of the Company or the existence
or possible existence of any default or Event of Default (as defined in the
Notes) thereunder. The Agent shall be entitled to rely upon advice of counsel
concerning legal matters and upon any notice, consent, certificate, statement or
writing which it believes to be genuine and to have presented by a proper
person.

(iii)  The Agent may resign as such at any time upon at least 10 days' prior
notice to the Company and the Note Holders, such resignation not be effective
until a successor Agent is in place. If the Agent at any time shall resign, the
Note Holders may appoint a Note Holder as a successor agent who shall thereupon
become the Agent hereunder. If within 10 days after the retiring Agent's giving
of notice of resignation, no successor Agent shall have been so appointed, and
shall have accepted such appointment, then the retiring Agent may, on behalf of
the Note Holders, appoint a financial institution or a limited purpose trust
company as the successor Agent, and the Company shall pay the successor Agent's
reasonable fees for serving as successor Agent. Upon the acceptance of any
appointment as agent hereunder by a successor Agent, such successor Agent shall
be entitled to receive from the retiring Agent such documents of transfer and
assignment as such successor Agent may reasonably request, and shall thereupon
succeed to and become vested with all rights, powers, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties
and obligations under this Agreement.
<PAGE>

(iv)   The Note Holders may at any time and for any reason replace the Agent
with a successor Agent selected by them, upon at least 10 days' written notice
to the Agent, the Company and the holders of the Notes. Should the successor
Agent be a financial institution or a limited purpose trust company, the
Company, by its acceptance of this Agreement, shall be deemed to have agreed to
pay the successor Agent's reasonable fees, if any, for serving as successor
Agent. Upon the acceptance of any appointment as agent hereunder by a successor
Agent, such successor Agent shall be entitled to receive from the terminated
agent such documents of transfer and assignment as such successor Agent may
reasonably request, and shall thereupon succeed to and become vested with all
rights, powers, privileges and duties of the terminated Agent, and the
terminated Agent shall be discharged from its duties and obligations under this
Agreement.

xiv.   Notice.  Any notice or other communication required to be given to any
of the parties hereto shall be in writing and shall be given by certified or
express mail, return receipt requested, to such party addressed at his or its
address set forth opposite its signature on the signature page hereof.

xv.    Rights of Secured Party.  The Agent shall have the same rights and
powers with respect to the Notes held by it or any of its affiliates, as any
other Note Holder may exercise as if it were not the Agent.  The Company hereby
waives, and each Note Holder shall be deemed to waive, any right to disqualify
any Note Holder from serving as the Agent or any claim against any Holder for
serving as the Agent.

xvi.   Prorata Participation by the Note Holders.  The Note Holders shall
share ratably in the distribution of benefits and any expenditures relating to
this Agreement based on the ratio of the principal amount of their respective
Notes to the total Loan amount.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

i.   Address of Company:              COMPANY:

     Cash Technologies, Inc.          CASH TECHNOLOGIES, INC.
     1434 West 11th Street
     Los Angeles, CA 90015
     Attention: Bruce Korman
                                      By:
                                      Name:
                                      Title:

ii.  Address of the Agent:            SECURED PARTY:

     GunnAllen Financial, Inc.        GUNNALLEN FINANCIAL, INC.
     1715 North West Shore Blvd
     Suite 700
     Tampa, Florida  33607
     Attention:  Rick Frueh           By:
                                      Name:
                                      Title:<PAGE>

                                                                    EXHIBIT 10.3

                         REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of December,
1999, executed and delivered by Cash Technologies, Inc., a Delaware corporation
(the "Company") which has its principal place of business at 1434 West 11th
Street, Los Angeles, CA 90015, in favor of the Holders (as defined below).

                                   RECITALS

     WHEREAS, simultaneously with the execution and delivery of this Agreement,
the Company, pursuant to terms and conditions set forth in the Confidential
Private Offering Memorandum of the Company, dated December 31, 1999, including
the exhibits thereto and any and all supplements thereof and amendments thereto,
and all documents incorporated by reference therein (collectively, the
"Memorandum") is offering (the "Offering") up to sixty (60) units (the "Units"),
each Unit consisting of (i) $50,000 principal amount Secured Convertible
Promissory Notes (the "Notes") of the Company convertible into shares ("Notes
Shares") of its Common Stock, par value $001 per share ("Common Stock") and (ii)
Series B Redeemable warrants (the "Warrants") to purchase up to an aggregate of
5,000 shares (the "Warrant Shares") of Common Stock.

     WHEREAS, the terms and conditions of the Offering provide for the execution
and delivery of this Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the Company, the Company hereby
agrees as follows:
<PAGE>

1.   Piggyback Registration.

(a)            If at any time after completion of the Offering (which shall be
deemed to be the date on which the final closing is held or expiration of the
Offering period, whichever is later), the Company proposes to prepare and file
with the Securities and Exchange Commission (the "SEC") one or more registration
statements or amendments, including post-effective amendments, or supplements
thereto covering any equity or debt securities of the Company, or any such
securities of the Company held by its stockholders, other than in connection
with a merger or acquisition or pursuant to a registration statement on Form S-4
or Form S-8 or any successor form (for purposes of this Section 1, collectively,
a "Piggyback Registration Statement"), the Company will give written notice of
its intention to do so by registered or certified mail ("Notice"), at least
twenty (20) business days prior to the filing of each such Piggyback
Registration Statement, to each Person (as defined below) who holds Notes
Convertible into Note Shares, Note Shares Warrant Shares and/or Warrants
exercisable for Warrant Shares (such Note Shares Warrant Shares, collectively
referred to herein as the "Registerable Shares") and each of the successors,
assigns and transferees of each of such Persons (individually, a "Holder" and
collectively, "Holders"). "Person" as used herein shall mean any individual,
sole proprietorship, partnership, corporation, association, joint venture,
trust, unincorporated entity or other entity, or the government of any country
or sovereign state, or of any state, province, municipality or other political
subdivision thereof. The Company shall include all of the Registerable Shares
held by such Holder or Holders ("Piggyback Securities") in the proposed
Piggyback Registration Statement and the Company shall use its best efforts to
cause such Piggyback Registration Statement to be declared effective under the
Securities Act of 1933, as amended (the "Act"), by the SEC, so as to permit the
public resale by the Requesting Holders of their Piggyback Securities pursuant
thereto, at the Company's sole cost and expense and at no cost or expense to the
Requesting Holder (other than any underwriting or other commissions, discounts
or fees of any counsel or advisor to the Holder which shall be payable by the
Holder, as further provided in Section 4(d) hereof) (the "Piggyback
Registration"). The Company shall not be required to include the Registerable
Share in more than one registration statement filed with the SEC.

(b)            Notwithstanding the preceding provisions of this Section, the
Company shall have the right at any time after it shall have given written
notice pursuant to this Section 1 (irrespective of whether any written request
for inclusion of Piggyback Securities shall have already been made) to elect not
to file any proposed Piggyback Registration Statement filed pursuant to this
Section 1, or to withdraw the same after the filing but prior to the effective
date thereof.

1.        Demand Registration.

          (a)  At any time commencing six (6) months after the final closing of
the Offering until August 3, 2002, any Holder or combination of Holders whose
aggregate number of Registerable Shares constitute a majority of the
Registerable Shares held by all of the Holders
<PAGE>

(a "Majority Holder") shall have the right (which right is in addition to the
piggyback registration rights provided for under Section 1 above), exercisable
by written notice to the Company (the "Demand Registration Request"), to have
the Company prepare and file with the SEC on one occasion, at the sole expense
of the Company, a Registration Statement on Form SB-2 or such other appropriate
form (the "Demand Registration Statement") and such other documents, including a
prospectus, as may be necessary (in the opinion of counsel for the Company), in
order to comply with the provisions of the Act, so as to permit the public
resale by the Holder of the Registerable Shares pursuant thereto.

          (b)  The Company covenants and agrees to give written notice of any
Demand Registration Request to all Holders of Registerable Shares within twenty
(20) business days from the date of the Company's receipt of any such Demand
Registration Request.  After receiving notice from the Company as provided in
this Section 2(b), Holders of Registerable Shares may request that the Company
include their Registerable Shares in the Registration Statement to be filed
pursuant to Section 2(a) above by notifying the Company of their decision to
include such Registerable Shares within twenty (20) business days of their
receipt of the Company's notice.

          (c)  Anything herein contained to the contrary notwithstanding, the
provisions of this Agreement shall not apply to, and the term "Registerable
Shares" as used in this Agreement shall not include, Warrant Shares after they
have been sold by a Holder pursuant to an effective Registration Statement under
the Act or pursuant to Rule 144.

2.        Registerable Shares.  For purposes of this Agreement, the term
"Registerable Shares" shall also include any securities issued or issuable with
respect to the Warrants or Warrant Shares by way of stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise.

3.        Additional Covenants of the Company With Respect to Registration.  The
Company covenants and agrees as follows:

          (a)  In connection with any registration under Section 2 above, the
Company shall file the Demand Registration Statement as expeditiously as
possible, but in no event later than sixty (60)  business days following receipt
of a Demand Registration Request, and use its best efforts to have such Demand
Registration Statement declared effective at the earliest possible time.

          (b)  In connection with any registration of Registerable Shares
pursuant to Sections 1 or 2 above, the Company shall furnish each Holder of
Registerable Shares included in a Registration Statement with such reasonable
number of copies of such Registration Statement, related preliminary prospectus
and prospectus meeting the requirements of the Act, and other documents
necessary or incidental to the registration and public offering of such
Registerable Shares, as shall be reasonably requested by the Holder to permit
the Holder to make a public distribution of such Registerable Shares.
<PAGE>

          (c)  Once effective, the Company covenants and agrees to use its best
efforts to maintain the effectiveness of any Registration Statement until the
earlier of (i) the date that all of the Registerable Shares have been sold
pursuant to the Demand Registration Statement or Rule 144 of the General Rules
and Regulations promulgated under the Act ("Rule 144"), or (ii) the date that
the Holders of the Registerable Shares receive an opinion of counsel to the
Company that all of the Registerable Shares may be freely traded (without
limitation or restriction as to quantity or timing and without registration
under the Act) pursuant to Rule 144 or otherwise or (iii) August 31, 2003,
except that, the Company may suspend the use of any Registration Statement for a
period not to exceed 45 days in any 12-month period for valid business reasons
(not including avoidance of the Company's obligations hereunder), including the
acquisition or divestiture of assets, public filings with the SEC, pending
corporate developments and similar events.

          (d)  If any stop order shall be issued by the SEC in connection with
any Registration Statement filed pursuant to Sections 1 or 2 above, the Company
will use its best efforts to obtain the removal of such order.

          (e)  The Company shall pay all costs, fees, and expenses in connection
with all Registration Statements filed pursuant to Sections 1 and 2 above,
including, without limitation, the Company's legal and accounting fees, printing
expenses, and blue sky fees and expenses; provided, however, that the Holders
                                          --------  ------
shall be solely responsible for the fees of any counsel retained by the Holders
in connection with such registration and any transfer taxes or underwriting
discounts, commissions or fees applicable to the Registerable Shares sold by the
Holders pursuant thereto.

          (e)  The Company will use its best efforts to qualify any Registerable
Shares included in a Registration Statement for sale in such states as the
Holders of such securities shall reasonably request, provided that no such
qualification will be required in any jurisdiction where, solely as a result
thereof, the Company would be subject to general service of process or to
taxation or qualification as a foreign corporation doing business in such
jurisdiction.

4.   Indemnification.

(a)       In the event of any registration of any the Registerable Shares under
the Act, the Company shall indemnify and hold harmless each Holder, the
affiliates of each such Holder, the directors, partners, officers, employees and
agents of each such Holder and any person who controls any such Holder within
the meaning of the Act or the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), against any and all losses, claims, damages or liabilities,
joint
<PAGE>

or several, to which they or any of them may become subject under the Act,
the Exchange Act or other Federal or State statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) caused by, arising out of or based on any untrue
statement or alleged untrue statement of a material fact contained in any
registration statement under which such securities were registered under the
Act, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, or arise out of or
are based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and agrees to reimburse each such indemnified party, as incurred,
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that (i) the Company will not be liable in any case to the
--------  -------
extent that any such loss, claim, damage or liability arises out of or is based
upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any such Holder
specifically for inclusion therein, (ii) the Company will not be liable to any
indemnified party under this indemnity agreement with respect to any
Registration Statement or Prospectus to the extent that any such loss, claim,
damage or liability of such indemnified party results from the use of the
Prospectus during a period when the use of the Prospectus has been suspended in
accordance with Section 2(c) hereof, provided that the Holders received prior
notice of such suspension, which notice shall be deemed to have been received by
such Holders within 48 hours after the giving thereof; and (iii) the Company
shall not be liable to any indemnified party with respect to any preliminary
Prospectus to the extent that any such loss, claim, damage or liability of such
indemnified party results from the fact that such indemnified party sold
Registerable Securities to a person as to whom there was not sent or given, at
or prior to the written confirmation of such sale, a copy of the Prospectus or
of the Prospectus as then amended or supplemented in any case where such
delivery is required by the Act, if the loss, claim, damage or liability of such
indemnified party results from an untrue statement or omission of a material
fact contained in the preliminary Prospectus which was corrected in the
Prospectus or in the Prospectus as then amended or supplemented. This indemnity
agreement will be in addition to any liability which the Company may otherwise
have. The Company also agrees to indemnify and provide contribution to each
person who may be deemed to be an underwriter (for purposes of the Act) with
respect to the Registerable Shares ("Underwriter" or "Underwriters"), their
officers and directors, and each person who controls each such Underwriter, on
substantially the same basis as that of the indemnification of and contribution
to the Holders provided in this Section 5.
<PAGE>

(a)       As a condition to including any of the Registerable Shares in any
registration statement filed pursuant to this Agreement, the Holder of the
Registerable Shares, as a prospective seller of the Registerable Shares hereby
agrees to indemnify and hold harmless (in the same manner and to the same extent
as set forth in subdivision (a) of this Section 5) the Company, each director of
the Company, each officer, employee or agent of the Company and each Underwriter
of the Registerable Shares and each other person or entity, if any, which
controls the Company or such Underwriter within the meaning of the Act, with
respect to any statement or alleged statement in, or omission or alleged
omission from, such registration statement, any preliminary Prospectus,
Prospectus or summary Prospectus contained therein, or any amendment or
supplement thereto, if such statement or alleged statement or omission or
alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by the Holder for use in the preparation of
such registration statement, preliminary Prospectus, Prospectus, summary
Prospectus, amendment or supplement. Any such indemnity shall remain in full
force and effect, regardless of any investigation made by or on behalf of the
Company or any such director, officer or controlling person and shall survive
the transfer of such securities by Holder. Anything in this Agreement contained
to the contrary notwithstanding the liability of each Holder for indemnification
or contribution hereunder shall be limited to the amount of proceeds received by
such Holder in the Offering giving rise to such liability.

(b)       Promptly after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim referred to in the
preceding subdivisions of this Section 5, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party, give
written notice to the latter of the commencement of such action, provided that
                                                                 --------
the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under the preceding
subdivisions of this Section 5, except to the extent that the indemnifying party
is materially prejudiced by such failure to give notice. In case any such action
is brought against an indemnified party, unless in such indemnified party's
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
shall be entitled to participate in and to assume the defense thereof, jointly
with any other indemnifying party similarly notified, to the extent that the
indemnifying party may wish, 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 the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation. Notwithstanding
the indemnifying party's election to appoint counsel to represent the
indemnified party in an action, the indemnified party shall have the right to
employ separate counsel (including local counsel), and the indemnifying party
shall bear the reasonable fees, costs and expenses of such separate counsel (and
local counsel) if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of
interest, (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have
<PAGE>

reasonably concluded that there may be legal defenses available to it and/or
other indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of
such action or (iv) the indemnifying party shall authorize the indemnified party
to employ separate counsel at the expense of the indemnifying party. An
indemnified party shall not settle or compromise any action for which it seeks
indemnification or contribution hereunder without the prior written consent of
the indemnifying party, which consent shall not be unreasonably withheld. An
indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding.

          (d)  In the event that the indemnity provided in Section 5(a) or 5(b)
is unavailable to or insufficient to hold harmless an indemnified party for any
reason, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection
with investigating or defending same) (collectively "losses") to which such
indemnified party may be subject in such proportion as is appropriate to reflect
the relative benefits received by such indemnifying party, on the one hand, and
such indemnified party, on the other hand, from the Registration Statement which
resulted in such losses.

          (e)  The provisions of this Section 5 shall remain in full force and
effect regardless of any investigation made by or on behalf of any Holder or the
Company or any other persons who are entitled to indemnification pursuant to the
provisions of this Section 5, and shall survive the sale by a Holder of
Registerable Shares pursuant to the Registration Statement.

5.   Amendments.  This Agreement may not be amended, modified or supplemented,
and waivers of or consents to departures from the provisions of this Agreement
may not be given, unless it would not have an adverse effect upon the rights of
any of the Holders and the Company has obtained the written consent of Holders
then holding a majority of the Registerable Shares.

6.   Notices.  Except as otherwise provided in this Agreement, all notices,
requests and other communications (which shall include publication) to any
person provided for hereunder shall be in writing and shall be given by hand
delivery, registered or certified mail or by any courier providing overnight
delivery (i) if to the Company or the initial Holder, at the address set forth
in the Subscription Agreement and (ii) if to a subsequent Holder, to the address
set forth on the books and records of the Company.  All such notices, requests
or communications shall not be effective until received.
<PAGE>

7.   Assignment.  This Agreement shall be binding upon and inure to the benefit
of and be enforceable by the parties hereto. In addition, and whether or not any
express assignment shall have been made, the provisions of this Agreement which
are for the benefit of Holder shall also be for the benefit of and enforceable
by any subsequent holder of the Registerable Shares.  Holder agrees, by
accepting any portion of the Registerable Shares after the date hereof, to the
provisions of this Agreement.

1.   Governing Law.

THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE
RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF CALIFORNIA
WITHOUT REFERENCE TO THE PRINCIPLES OF CONFLICTS OF LAWS.

(a)       Each of the Company and Holder hereby irrevocably and unconditionally
consents to submit to the exclusive jurisdiction of any State Court in Los
Angeles County, California and the United States District Court for the District
of Los Angeles (the "Los Angeles Courts") for any litigation arising out of or
relating to this Agreement and the transactions contemplated hereby (and agrees
not to commence any litigation relating thereto except in such courts), waives
any objection to the laying of venue of any such litigation in the Los Angeles
Courts and agrees not to plead or claim that such litigation brought in any Los
Angeles Courts has been brought in an inconvenient forum.

2.   Counterparts. This Agreement may be executed by facsimile and may be signed
simultaneously in any number of counterparts, each of which shall be deemed an
original, but all such counterparts shall together constitute one and the same
instrument.

3.   Entire Agreement. This Agreement embodies the entire agreement of between
the Company relating to the subject matter hereof and supersedes all prior
agreements and understandings relating to such subject matter.

4.   Severability. If any provision of this Agreement, or the application of
such provisions to any person or circumstance, shall be held invalid, the
remainder of this Agreement, or the application of such provision to persons or
circumstances other than those to which it is held invalid, shall not be
affected thereby.

5.   Third Party Beneficiaries. The Holders from time to time shall each be a
third party beneficiary of the agreements of the Company contained herein.
<PAGE>

6.   Headings. The headings which are contained in this Agreement are for the
sole purpose of convenience of reference, and shall not limit or otherwise
affect the interpretation of any of the provisions hereof.

6.   Further Assurances. The Company will from time to time after the date
hereof take any and all actions, and execute, acknowledge and deliver any and
all documents and instruments, at its cost and expense, as any Holder may from
time to time reasonably request in order to more fully perfect or protect the
rights intended to be granted to it hereunder.

7.   Interpretation.  As used in this Agreement, unless the context otherwise
requires: words describing the singular number shall include the plural and vice
versa; words denoting any gender shall include all genders; words denoting
natural persons shall include corporations, partnerships and other entities, and
vice versa; and the words "hereof", "herein" and "hereunder", and words of
similar import, shall refer to this Agreement as a whole, and not to any
particular provision of this Agreement.

8.   Waiver.  The failure of the Company or any Holder to at any time enforce
any of the provisions of this Agreement shall not be deemed or construed to be a
waiver of any such provision, nor to in any way affect the validity of this
Agreement or any provision hereof or the right of the Company or any Holder to
thereafter enforce each and every provision of this Agreement.

9.   IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Agreement as of the date first above written.

                            CASH TECHNOLOGIES, INC.

                                              By:
--------------------------                       ------------------------
                                              Name:
                                              Title:

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