Document:

Exhibit 10.7

 

AMENDED AND RESTATED STOCK PLEDGE AGREEMENT

 

STOCK
PLEDGE AGREEMENT (the “Agreement”) dated this 22nd day of March, 2004,
and amended and restated this 23rd day of June, 2005, made by and among Time
America, Inc., a Nevada corporation (the “Company”), and each of
the other undersigned parties (other than the Noteholder (as defined below))
(the Company and each such other undersigned party, a “Pledgor” and
collectively, the “Pledgors”), and Laurus Master Fund, Ltd., a Cayman
Islands company (the “Noteholder”).

 

PRELIMINARY
STATEMENTS:

 

(1)           The
Company and the Noteholder have entered into (x) a Securities Purchase
Agreement, dated as of March 22, 2004 (as amended, modified, restated or
supplemented from time to time, the “2004 Securities Purchase Agreement”),
and (y) a Security Agreement, dated as of June 23, 2005 (as amended,
modified, restated or supplemented from time to time, the “2005 Security
Agreement”), pursuant to which the Pledgee has provided or will provide
certain financial accommodations to the Company and/or certain subsidiaries of
the Company.

 

(2)           The
securities held by each Pledgor in their respective wholly-owned subsidiaries
as listed in Schedule A hereof are collectively referred to herein as the “Pledged
Securities”.

 

NOW,
THEREFORE, in consideration of the premises and in further consideration of the
covenants contained herein, the parties hereto agree as follows:

 

SECTION 1.           Pledge.  For
the benefit of the Noteholder, each Pledgor hereby pledges and grants a
security interest in, the following (the “Pledged Collateral”):

 

(a)           the
Pledged Securities and the certificates representing the Pledged Securities,
and all dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Pledged Securities; and

 

(b)           all proceeds of any and all of the foregoing (including,
without limitation, proceeds that constitute property of the types described
above).

 

SECTION 2.           Security for Obligations.  This Agreement and the Pledged Collateral
pledged hereunder secures the full and punctual payment and performance of (the
following clauses (a), (b) and (c), collectively, the “Obligations”)
(a) the obligations under the 2004 Securities Purchase Agreement and the
Related Agreements referred to in the 2004 Securities Purchase Agreement, (b) the
2005 Security Agreement and the Ancillary Agreements referred to in the 2005
Security Agreement (the 2004 Securities Purchase Agreement, the Related
Agreements referred to in the 2004 Securities Purchase Agreement, the 2005
Security Agreement and the Ancillary Agreements referred to in the 2005
Security Agreement, as each may be amended, restated, modified and/or
supplemented from time to time, collectively, the “Documents”) and (c) all
other obligations and liabilities of each Pledgor to the Pledgee whether now
existing or hereafter arising, direct or indirect, liquidated or unliquidated,
absolute or contingent, due or not due and whether under, pursuant to or evidenced
by a note, agreement, guaranty, instrument or otherwise (in each case,
irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any
collateral therefor or of the existence or extent of such collateral, and
irrespective of the allowability, allowance or disallowance of any or all of
such in any case commenced by or against any Pledgor under Title 11, United
States Code, including, without limitation, obligations of each Pledgor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Obligations but for the commencement of such case).

 

SECTION 3.           Delivery of Pledged Collateral.  All certificates or instruments representing
or evidencing the Pledged Collateral shall be delivered to and held by the
Noteholder pursuant hereto and shall be in suitable form for transfer by
delivery, or shall be accompanied by duly executed instruments of transfer or

 

 

assignment in blank, all in form
and substance satisfactory to the Noteholder. 
Upon the occurrence and during the continuation of an Event of Default
(as defined below), the Noteholder shall have the duty, at any time on five
business days’ notice to the appropriate Pledgor or Pledgors, to transfer to or
to register in the name of the Noteholder or any of its nominees, any or all of
the Pledged Collateral.  In addition, the
Noteholder shall have the right at any such time to exchange certificates or
instruments representing or evidencing Pledged Collateral for certificates or
instruments of smaller or larger denominations. The Noteholder shall file
appropriate financing statements.

 

SECTION 4.           Representations and Warranties.  The Pledgor represents and warrants as
follows:

 

(a)           Each
Pledgor is and will be the sole legal, record and beneficial owner of the
Pledged Collateral free and clear of any lien, security interest, option or
other charge or encumbrance, except for the security interest created by this
Agreement.

 

(b)           The
pledge of the Pledged Collateral pursuant to this Agreement creates and will
create a valid and perfected first priority security interest in the Pledged
Collateral, securing the payment of the Obligations.

 

SECTION 5.           Further Assurances. 
At any time and from time to time, at the joint and several expense of
the Pledgors, each Pledgor will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary
or desirable, or that the Noteholder may reasonably request, in order to
perfect and protect the security interest granted or purported to be granted
hereby or to enable the Noteholder to exercise and enforce the rights and
remedies hereunder with respect to any Pledged Collateral.

 

SECTION 6.           Voting
Rights; Dividends; Etc.

 

(a)           So
long as no Event of Default or event which, with the giving of notice or the
lapse of time, or both, would become an Event of Default shall have occurred
and be continuing:

 

(i)            Each
Pledgor shall be entitled to exercise or refrain from exercising any and all
voting and other consensual rights pertaining to the Pledged Collateral or any
part thereof for any purpose not inconsistent with the terms of this Agreement.

 

(ii)           Each
Pledgor shall be entitled to receive and retain any and all dividends and
distributions paid in respect of the Pledged Collateral, provided, however,
that any and all (A) dividends paid or payable other than in cash in
respect of, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, Pledged Collateral,
and (B) dividends and other distributions paid or payable in cash in
respect of any Pledged Collateral in connection with a partial or total
liquidation or dissolution, shall be, and shall be forthwith delivered to the
Noteholder to hold as, Pledged Collateral and shall, if received by any
Pledgor, be received in trust for the benefit of the Noteholder, be segregated
from the other property or funds of the Pledgor, and be forthwith delivered to
the Noteholder as Pledged Collateral in the same form as so received (with any
necessary endorsement or assignment).

 

(iii)          The
Noteholder, shall execute and deliver (or cause to be executed and delivered)
to the appropriate Pledgor all such proxies and other instruments as such
Pledgor may reasonably request for the purpose of enabling such Pledgor to
exercise the voting and other consensual rights that it is entitled to exercise
pursuant to subsection (i) above and to receive the dividends that it
is authorized to receive and retain pursuant to subsection (ii) above.

 

2

 

(b)           Upon
the occurrence and during the continuance of an Event of Default or an event
which, with the giving of notice or the lapse of time, or both, would become an
Event of Default:

 

(i)            All
rights of the Pledgor to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise
pursuant to Section 6(a)(i) and to receive the dividends payments
that it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii) shall
cease, and all such rights shall thereupon become vested in the Noteholder who
shall thereupon have the sole right to exercise or refrain from exercising such
voting and other consensual rights at the direction of the Noteholder and to
receive and hold as Pledged Collateral such dividends.

 

(ii)           All
dividends that are received by any Pledgor contrary to the provisions of subsection (i) of
this Section 6(b) shall be received in trust for the benefit of the
Noteholder, shall be segregated from other funds of such Pledgor and shall be
forthwith paid over to the Noteholder as Pledged Collateral in the same form as
so received (with any necessary endorsement).

 

(c)           As
used herein, “Event of Default” (i) shall mean an “Event of Default” under
and as defined in any Document, and (ii) shall mean the failure of any
Pledgor to pay or perform any of its obligations under this Agreement and the
continuation of such failure for a period of 5 (five) days.

 

SECTION 7.           Transfers and Other Liens.  No Pledgor will (i) sell, assign (by
operation of law or otherwise) or otherwise dispose of, or grant any option
with respect to, any of the Pledged Collateral, or (ii) create or permit
to exist any lien, security interest, option or other charge or encumbrance
upon or with respect to any of the Pledged Collateral, except for the security
interest under this Agreement.

 

SECTION 8.           Noteholder
Appointed Attorney-in-Fact.  Each
Pledgor hereby appoints the Noteholder such Pledgor’s attorney-in-fact, with
full authority in the place and stead of such Pledgor and in the name of such
Pledgor or otherwise, from time to time in the Noteholder’s discretion to take
any action and to execute any instrument that the Noteholder may deem necessary
or advisable to accomplish the purposes of this Agreement (subject to the
rights of such Pledgor under Section 6), including, without limitation, to
receive, endorse and collect all instruments made payable to such Pledgor
representing any dividend or any part thereof and to give full discharge for
the same.

 

SECTION 9.           Noteholder
May Perform.  If any Pledgor
fails to perform any agreement contained herein, the Noteholder, may itself
perform, or cause performance of, such agreement, and the expenses of the
Noteholder incurred in connection therewith shall be payable by such Pledgor
under Section 11.

 

SECTION 10.         Remedies upon Event of Default.  Subject to the provisions of Section 6,
if any Event of Default shall have occurred and be continuing:

 

(a)           The
Noteholder may exercise in respect of the Pledged Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the Uniform
Commercial Code in effect in the State of New York at the time (the “Code”)
(whether or not the Code applies to the Pledged Collateral), and may also,
without notice except as specified below, sell the Pledged Collateral or any
part thereof in one or more parcels at public or private sale, at any exchange,
broker’s board or at any office of the Noteholder or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Noteholder may
deem commercially reasonable.  Each
Pledgor agrees that, to the extent notice of sale shall be required by law, at
least 5 (five) days’ notice to such Pledgor of the time and place of any public
sale or the time after which any private sale is to be made shall constitute
reasonable notification.  The Noteholder
shall not be obligated to make any sale of Pledged Collateral regardless of
notice of sale having been given.  The
Noteholder may adjourn

 

3

 

any
public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned.

 

(b)           Any
cash held by the Noteholder as Pledged Collateral and all cash proceeds
received by the Noteholder in respect of any sale of, collection from, or other
realization upon all or any part of the Pledged Collateral may, in the
discretion of the Noteholder, be held by the Noteholder as collateral for,
and/or then or at any time thereafter be applied (after payment of any amounts
payable to the Noteholder pursuant to Section 11) in whole or in part by
the Noteholder against, all or any part of the Obligations in such order as the
Noteholder shall be directed by the Noteholder. 
Any surplus of such cash or cash proceeds held by the Noteholder and
remaining after payment in full of each Pledgor’s obligations in respect of the
Obligations shall be paid over to the appropriate Pledgor or to whomsoever may
be lawfully entitled to receive such surplus.

 

SECTION 11.         Expenses.  Each
Pledgor will upon demand pay to the Noteholder the amount of any and all
reasonable expenses, including the reasonable fees and expenses of its counsel
and of any experts and agents, that the Noteholder may incur in connection with
(i) the custody or preservation of, or the sale of, collection from, or
other realization upon, any of the Pledged Collateral, (ii) the exercise
or enforcement of any of the rights of the Noteholder hereunder or (iii) the
failure by any Pledgor to perform or observe any of the provisions hereof.

 

SECTION 12.         Amendments,
Etc.  No amendment or waiver of any
provision of this Agreement, and no consent to any departure by any Pledgor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by each Pledgor and the Pledgee, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

 

SECTION 13.         Notices.  All
notices, request, demands and other communications required or permitted
hereunder shall be sent in accordance with the notice provisions set forth in
each of the 2004 Securities Purchase Agreement and the 2005 Security Agreement.

 

SECTION 14.         Continuing Security Interest.

 

(a)           This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until the payment in full of
all Obligations and each Pledgor’s satisfaction in full of all obligations
under each Document (including, without limitation, this Agreement), (ii) be
binding upon each Pledgor, its successors and assigns, and (iii) inure to
the benefit of, and be enforceable by, the Noteholder and its successors,
transferees and assigns.

 

(b)           Upon
the payment in full of all Obligations, the security interest granted hereby
shall terminate and all rights to the Pledged Collateral shall revert to the
respective Pledgor.  Upon any such
termination, the Noteholder will, at the Pledgors’ joint and several expense,
return to each Pledgor such of such Pledged Collateral as shall not have been
sold or otherwise applied pursuant to the terms hereof and execute and deliver
to each Pledgor such documents as such Pledgor shall reasonably request to
evidence such termination.

 

SECTION 15.         Governing Law; Terms. 
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY
PARTICULAR PLEDGED COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
THAN THE STATE OF NEW YORK. ANY ACTION, SUIT OR PROCEEDING INITIATED BY ANY
PARTY HERETO AGAINST ANY OTHER PARTY HERETO UNDER OR IN CONNECTION WITH THIS
AGREEMENT SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT IN NEW
YORK COUNTY, STATE OF NEW YORK. 
TO THE EXTENT IT MAY LEGALLY DO SO, EACH PARTY HERETO SUBMITS
ITSELF TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT, WAIVES AND AGREES NOT
TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, ANY

 

4

 

CLAIMS OF FORUM NON CONVENIENS OR THAT THE VENUE OF ANY SUCH ACTION,
SUIT OR PROCEEDING IS IMPROPER OR THAT THIS AGREEMENT OR ANY DOCUMENT OR INSTRUMENT
REFERRED TO HEREIN MAY NOT BE LITIGATED IN SUCH COURT.

 

SECTION 16.         JOINDER;
ETC

 

(a)           It
is understood and agreed that any person or entity that desires to become a
Pledgor hereunder, or is required to execute a counterpart of this Agreement
after the date hereof pursuant to the requirements of any Document, shall
become a Pledgor hereunder by (x) executing a Joinder Agreement in form
and substance satisfactory to the Pledgee, (y) delivering supplements to
such exhibits and annexes to such Documents as the Pledgee shall reasonably
request and/or set forth in such joinder agreement and (z) taking all actions
as specified in this Agreement as would have been taken by such Pledgor had it
been an original party to this Agreement, in each case with all documents
required above to be delivered to the Pledgee and with all documents and
actions required above to be taken to the reasonable satisfaction of the
Pledgee.

 

(b)           For
the avoidance of doubt, each Pledgor and the Pledgee hereby acknowledge and
agree that this Agreement shall be (x) a “Related Agreement” under, and as
defined in, the 2004 Securities Purchase Agreement and (y) an “Ancillary
Agreement” under, and as defined in, the 2005 Security Agreement.

 

5

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
duly executed and delivered as of the date first above written.

 

	
   

  	
  PLEDGORS:

  
	
   

  	
   

  
	
   

  	
  Time
  America, Inc., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
  8840
  East Chaparral Road, Suite 100

  
	
   

  	
  Scottsdale,
  Arizona 85250

  
	
   

  	
  Attention:
  Craig J. Smith, Chief Financial Officer

  
	
   

  	
  Facsimile:
  (480) 967-5444

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Time
  America, Inc., an Arizona corporation

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
  8840
  East Chaparral Road, Suite 100

  
	
   

  	
  Scottsdale,
  Arizona 85250

  
	
   

  	
  Attention:
  Craig J. Smith, Chief Financial Officer

  
	
   

  	
  Facsimile:
  (480) 967-5444

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  NOTEHOLDER:

  
	
   

  	
   

  
	
   

  	
  Laurus
  Master Fund, Ltd.,

  
	
   

  	
  a
  Cayman Islands company

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
  c/o
  M&C Corporate Services Limited

  
	
   

  	
  P.O. Box
  309 GT

  
	
   

  	
  Ugland
  House

  
	
   

  	
  South
  Church Street

  
	
   

  	
  George
  Town

  
	
   

  	
  Grand
  Cayman, Cayman Islands

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

6

 

SCHEDULE A

 

Attached to and forming a part of that certain 

Stock Pledge Agreement dated March 22, 2004, and amended and restated June 23,
2005 by and between

Time America, Inc., a Nevada corporation, the other pledgors party
thereto and 

Laurus Master Fund, Ltd., a Cayman Island company

 

Pledged Securities

 

	
  Pledgor

  	
   

  	
  Class of Security

  	
   

  	
  Certificate

  No(s) (if any)

  	
   

  	
  Number

  of Shares (Units)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Time America, Inc.,
  a

  Nevada corporation

  	
   

  	
  Common Stock of
  Time America, Inc., an Arizona corporation

  	
   

  	
   

  	
   

  	
  9,314,445 Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Time America, Inc.,
  an

  Arizona corporation

  	
   

  	
  NoneExhibit 10.8

 

AMENDMENT

 

This Amendment (this “Amendment”), dated as of June 23, 2005, is entered into
by and between TIME AMERICA, INC., a Nevada corporation (the “Company”), and LAURUS MASTER FUND, LTD., a Cayman Islands company (“Laurus”), for the purpose of amending the
terms of that certain Secured Convertible Term Note, dated March 22, 2004
(as amended, modified or supplemented from time to time, the ”Term Note”) issued by the Company to Laurus. Capitalized
terms used herein without definition shall have the meanings ascribed to such
terms in the Term Note.

 

WHEREAS, the Company and Laurus have agreed to make
certain changes to the Term Note as set forth herein;

 

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

 

1.                                       Section 3.4C of the Term Note is hereby
amended by deleting the text “at any time 35 days after the Closing Date”
appearing therein and inserting the text “on any date (x) on or after 35 days
after the Closing Date and prior to June 23, 2005 or (y) on or after June 23,
2006” in lieu thereof.

 

2.                                       Section 4.9 of the Term Note is hereby
deleted in its entirety and the following new Section 4.9 is hereby inserted
in lieu thereof:

 

“4.9 Default under
Related Agreements, etc.. 
An Event of Default, under and as defined in any of (i) the Related
Agreements, (ii) that certain Security Agreement, dated June 23,
2005, by and among the Borrower, certain subsidiaries of the Borrower and the
Holder (as amended, modified or supplemented from time to time, the “2005
Security Agreement”), or (iii) any Ancillary Agreement referred to in the
2005 Security Agreement, as each are amended, modified or supplemented from
time to time, shall have occurred and be continuing.”

 

3.                                       Each amendment set forth herein shall be
effective as of the date hereof following the execution and delivery of same by
each of the Company and Laurus.

 

4.                                       Except as specifically set forth in this
Amendment, there are no other amendments to the Term Note, and all of the other
forms, terms and provisions of the Term Note remain in full force and effect.

 

5.                                       The Company hereby represents and warrants to
Laurus that as of the date hereof all representations and warranties made by
Company in connection with the Term Note and the Purchase Agreement, as
amended, referred to in the Term Note are true, correct and complete, and all
of Company’s and its Subsidiaries’ covenant requirements have been met or
otherwise waived in writing by Laurus.

 

6.                                       This Amendment shall be binding upon the
parties hereto and their respective successors and permitted assigns and shall
inure to the benefit of and be enforceable by each of the parties hereto and
its successors and permitted assigns.  THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  This Amendment may be executed in any number
of counterparts, each of which shall be an original, but all of which shall
constitute one instrument.

 

 

IN WITNESS WHEREOF,
each of the Company and Laurus has caused this Amendment to the Term Note to be
signed in its name effective as of this 23rd day of June, 2005.

 

 

	
   

  	
  TIME AMERICA, INC., a Nevada Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

2

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