Document:

Exhibit
10.7

 

REAFFIRMATION
AND RATIFICATION AGREEMENT

 

January 3,
2006

 

Laurus Master Fund, Ltd.

c/o Laurus Capital Management
LLC

825 Third Avenue

New York, New York 10022

 

Ladies and Gentlemen:

 

Reference is
made to (I) (a) the Security Agreement, dated as of March 22, 2004
(as amended and restated, further amended, modified or supplemented from time
to time, the “Security Agreement”),
by and between the Company and Laurus Master Fund, Ltd. (“Laurus”) (b) the Security Agreement,
dated as of March 22, 2004 (as amended and restated, further amended,
modified or supplemented from time to time, the “Subsidiary Security Agreement” and, together with the Parent
Security Agreement, the “March 2004
Security Documents”), by and between Time America, Inc., an
Arizona corporation (“Time America-Arizona”)
and Laurus, and (II) (a) the Security Agreement, dated as of June 23,
2005 (as amended, modified or supplemented from time to time, the “June 2005 Security Agreement”) by and
between the Company, Time America-Arizona and Laurus, (b) the Amended and
Restated Stock Pledge Agreement, dated as of March 22, 2004 (as amended
and restated as of June 23, 2005, further amended, modified or
supplemented from time to time, the “June 2005
Stock Pledge Agreement”), by and between the Parent and Laurus, (c) the
Grant of Security Interest in Patents and Trademarks, dated as of June 23,
2005 (as amended, modified or supplemented from time to time, the “June 2005 IP Grant”) by and between
the Company in favor of Laurus, (d) the Four Party Wholesale Lockbox
Agreement dated as of June 23, 2005 (as amended, modified or supplemented
from time to time, the “Parent Lockbox
Agreement”) by and between Wells Fargo Bank AZ, N.A., Wells Fargo
Bank, N.A., the Company and Laurus, (e) the Four Party Wholesale Lockbox
Agreement dated as of June 23, 2005 (as amended, modified or supplemented
from time to time, the “Subsidiary Lockbox
Agreement” and, together with the June 2005 Security Agreement,
the June 2005 Stock Pledge Agreement, the June 2005 IP Grant and the
Parent Lockbox Agreement, the “June 2005
Security Documents” and, together with the March 2004 Security
Documents, the “Existing Security Documents”)
by and between Wells Fargo Bank AZ, N.A., Wells Fargo Bank AZ, N.A., the Time
America-Arizona and Laurus.

 

To induce
Laurus to enter into the Security and Purchase Agreement dated as of the date
hereof by and between the Company, Time America-Arizona, NetEdge Devices, LLC,
an Arizona limited liability company (“NetEdge”)
and Laurus (as amended, restated or otherwise modified, the “January 2006 Security Agreement”)
pursuant to which Laurus has agreed to purchase from the Company a Secured
Convertible Term Note in the aggregate principal amount of Two Million Dollars
($2,000,000) (the “January 2006 Term
Note”) and a Secured Non-Convertible Revolving Note in the aggregate
principal amount of One Million Five Hundred Thousand Dollars ($1,500,000) (the
“January 2006 Revolving Note”),
the undersigned hereby:

 

 

(a)           represents and warrants to Laurus
that it has reviewed and approved the terms and provisions of the January 2006
Security Agreement, the January 2006 Term Note, the January 2006
Revolving Note and the Ancillary Agreements (as defined in the January 2006
Security Agreement, the “January 2006
Ancillary Agreements”) (the January 2006 Security Agreement,
the January 2006 Term Note, the January 2006 Revolving Note and the January 2006
Ancillary Agreements, each a “January 2006
Agreement” and collectively, the “January 2006
Agreements”);

 

(b)           acknowledges, ratifies and confirms
that all of the terms, conditions, representations and covenants contained in
the Existing Security Documents to which it is a party are in full force and
effect and shall remain in full force and effect after giving effect to the
execution and effectiveness of the January 2006 Agreements;

 

(c)           acknowledges, ratifies and confirms
that the defined term “Obligations” under the March 2004 Security
Documents, the June 2005 Security Agreement and the June 2005 Stock
Pledge Agreement include, without limitation, all obligations and liabilities
of the Company under the Existing Security Documents and the January 2006
Agreements and all other obligations and liabilities of each of the undersigned
to Laurus (including interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, whether or not a claim for post-filing or post-petition interest is
allowed or allowable in such proceeding), whether now existing or hereafter
arising, direct or indirect, liquidated or unliquidated, absolute or contingent
(collectively, the “Obligations”);

 

(d)           acknowledges and confirms that (i) the
occurrence of an Event of Default under any of the January 2006 Agreements
shall constitute an Event of Default under the Existing Security Documents and (ii) the
occurrence of an Event of Default under any of the Existing Security Documents
shall constitute an Event of Default under the January 2006 Agreements;

 

(e)           represents and warrants that no
offsets, counterclaims or defenses exist as of the date hereof with respect to
any of the undersigned’s obligations under any of the Existing Security
Documents;

 

(f)            acknowledges, ratifies and confirms (1) the
grant by each undersigned to Laurus of a security interest and lien in the
assets of each undersigned as more specifically set forth in the Existing
Security Documents and the January 2006 Agreements, as applicable (the “Security Interest Grants”) and (2) that
the Security Interest Grants secure all Obligations; and

 

(g)                                 releases,
remises, acquits and forever discharges Laurus and Laurus’ employees, agents,
representatives, consultants, attorneys, fiduciaries, officers, directors,
partners, predecessors, successors and assigns, subsidiary corporations, parent
corporations, and related corporate divisions (all of the foregoing hereinafter
called the “Released Parties”),
from any and all actions and causes of action, judgments, executions, suits,
debts, claims, demands, liabilities, obligations, damages and expenses of any
and every character, known or unknown, direct and/or indirect, at law or in
equity, of whatsoever kind or nature, for or because of any matter or things
done, omitted or suffered to be done by any of the Released Parties prior to and
including the date of execution hereof, and in any way directly or indirectly
arising out of or in any way connected to this Reaffirmation and Ratification
Agreement, the Existing Security Documents,

 

2

 

the January 2006 Agreements and any
other document, instrument or agreement made by the undersigned in favor of
Laurus.

 

[The
remainder of this page intentionally left blank.]

 

3

 

This
Reaffirmation and Ratification Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  TIME
  AMERICA, INC., a Nevada 

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TIME
  AMERICA, INC., an Arizona corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NETEDGE
  DEVICES, LLC, an Arizona

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND
  AGREED TO: 

  	
   

  
	
   

  	
   

  
	
  LAURUS
  MASTER FUND, LTD. 

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:Exhibit 10.8

 

OBERON

SECURITIES

 

January 13, 2005

 

Thomas S. Bednarik

President and CEO

Time America, Inc.

51
West Third Street (Suite 310)

Tempe, AZ 85281

 

Dear Mr. Bednarik:

 

This agreement “the Agreement”
shall replace all other agreements between Oberon Securities, LLC and its
affiliates and assigns (“Oberon”) and Time America, Inc. and its
affiliates and assigns (“Client) with regards to the amount and form of
compensation due to Oberon with regards specifically to the January 3, 2006 funding between Client and Laurus Master Fund,
Ltd (“Laurus”). With regards to this January 3, 2006 financing, Client and Oberon agree that
Oberon, or its assigns, will be due the following compensation:

 

1.                                       A total number of shares of Client common
stock which shall be issuable to Oberon equal to (a) $70,627; divided by (b) the price per share on
five trading days following the date the “resale” registration statement
including such shares has been declared effective by the SEC.” The free trading
shares shall be delivered to Oberon within eight days following the date the “resale”
registration statement has been declared effective.

 

2.                                       108,657 warrants with a strike price of $0.65 per share valid for three years post closing.
The shares underlying the warrants shall entitle their holder to one-time “piggyback”
registration rights.  The warrant may be
exchanged without the payment of any additional consideration for Client’s stock
based upon the values of the warrant and the stock at the time of the exchange
(i.e., net issuance). The warrants should be delivered to Oberon no later than January 31, 2006.

 

It is agreed that such
compensation is in addition to such unpaid compensation amounts that remain
owed to Oberon from the June 25, 2005 funding between Client and Laurus in the following amounts:

 

1.                                       A total number of shares of Client common
stock which shall be issuable to Oberon equal to (a) $56,250; divided by (b) the price per share on
five trading days following the date the “resale” registration statement
including such shares has been declared effective by the SEC.” The free trading
shares shall be delivered to Oberon within eight days following the date the “resale”
registration statement has been declared effective.

 

2.                                       173,077 warrants with a strike price of $0.65 per share valid for three years post closing.
The shares underlying the warrants shall entitle their holder to one-time “piggyback”
registration rights. The warrant may be exchanged without the payment of
any additional consideration for Client’s stock based upon the values of the
warrant and the stock at the time of the exchange (i.e., net issuance). These
warrants should be delivered to Oberon no later than January 31, 2006.

 

To the extent Oberon has not
been delivered all such free trading common shares as discussed in this Agreement
by January 1, 2007, in lieu of such shares, Client agrees to pay
to Oberon $126,878 in cash by no
later than January 3, 2007.

 

This letter Agreement will be
governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts of law. Client irrevocably submits to
the jurisdiction of any court of the State of New York for the purpose of any
suit, action or other proceeding arising out of this letter agreement or our
engagement hereunder. Each of Client and Oberon hereby waives any right it may have
to a trial by jury in respect of any claim brought by or on behalf of either
party based upon, arising out of or in connection with this letter agreement,
our engagement hereunder or the transactions contemplated hereby. Any dispute
arising hereunder, if not settled by mutual agreement, shall, at either party’s
option, and, upon written notice by one party to the other, be settled by final
and binding arbitration in New York, New York. The arbitration shall be
conducted in accordance with the Commercial Dispute Resolution Procedures and Rules of
the American Arbitration Association (“AAA
Rules”) by a single disinterested arbitrator appointed in accordance
with such AAA Rules. The arbitrator shall have authority to award relief under
legal or equitable principles, including interim or preliminary relief, and to
allocate responsibility for the costs of the arbitration and to award recovery
of attorneys’ fees and expenses in such manner as is determined by the
arbitrators. Judgment upon the award rendered by the arbitrators may be
entered in any

 

79 MADISON AVENUE • NEW
YORK, NY 10016 • (T) 212-447-7200 • (F) 212-447-7212 • WWW.OBERONSECURITIES.COM

 

 

court having personal and
subject matter jurisdiction. Each party hereby submits to the in personam and subject
matter jurisdiction of the federal and state courts in the County of New York
for the purpose of confirming any such award and entering judgment thereon. All
proceedings under arbitration and all evidence given or discovered pursuant
hereto, shall be maintained in confidence by both parties, except as required
by law.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
  OBERON SECURITIES, LLC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED TO:

  	
   

  
	
  Time America, Inc.

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ [ILLEGIBLE]

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