BLOCKED ACCOUNT CONTROL AGREEMENT DATED 11/25/2003Account Control Agreement |
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Exhibit 4.43
BLOCKED ACCOUNT CONTROL AGREEMENT
("SHIFTING CONTROL")
AGREEMENT dated as of November 25, 2003, by and among Tidel Engineering,
L.P. ("Company"), Laurus Master Fund, Ltd. ("Lender") and JPMorgan Chase Bank
("Depositary").
The parties hereto refer to Account No.32407011661 in the name of Company
maintained at Depositary (the "Account") and hereby agree as follows:
1. Company and Lender notify Depositary that by separate agreement Company
has granted Lender a security interest in the Account and all funds on deposit
from time to time therein. Depositary acknowledges being so notified.
2. Prior to the Effective Time (as defined below) Depositary shall honor
all withdrawal, payment, transfer or other fund disposition or other
instructions which the Company is entitled to give under the Account
Documentation (as hereinafter defined) (collectively, "instructions") received
from the Company (but not those from Lender) concerning the Account. On and
after the Effective Time (and without Company's consent), Depositary shall honor
all instructions received from Lender (but not those from Company) concerning
the Account and Company shall have no right or ability to access or withdraw or
transfer funds from the Account.
For the purposes hereof, the "Effective Time" shall be the opening of business
on the second business day next succeeding the business day on which a notice
purporting to be signed by Lender in substantially the same form as Exhibit A,
attached hereto, with a copy of this Agreement attached thereto (a "Shifting
Control Notice"), is actually received by the individual employee of Depositary
to whom the notice is required hereunder to be addressed; provided, however,
that if any such notice is so received after 12:00 noon, New York City time, on
any business day, the "Effective Time" shall be the opening of business on the
third business day next succeeding the business day on which such receipt
occurs; and, provided further, that a "business day" is any day other than a
Saturday, Sunday or other day on which Depositary is or is authorized or
required by law to be closed.
The Lender hereby covenants that it shall not send a Shifting Control Notice to
Depositary prior to the occurrence of an Event of Default (as such term is
defined in that certain Convertible Note in the aggregate principal amount of
six million four hundred fifty thousand dollars ($6,450,000) payable to Lender
by Company, as the same may be amended, modified and supplemented from time to
time).
Notwithstanding the foregoing: (i) all transactions involving or resulting in a
transaction involving the Account duly commenced by Depositary or any affiliate
prior to the Effective Time and so consummated or processed thereafter shall be
deemed not to constitute a violation of this Agreement; and (ii) Depositary
and/or any affiliate may (at its discretion and without any obligation to do so)
(x) cease honoring Company's instructions and/or commence honoring solely
Lender's instructions concerning the Account at any time or from time to time
after it becomes aware that Lender has sent to it a Shifting Control Notice but
prior to the Effective Time therefor (including without limitation halting,
reversing or redirecting any transaction referred to in clause (i) above), or
(y) deem a Shifting Control Notice to be received by it for
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purposes of the foregoing paragraph prior to the specified individual's actual
receipt if otherwise actually received by Depositary (or if such Shifting
Control Notice contains minor mistakes or other irregularities but otherwise
substantially complies with the form attached hereto as Exhibit A or does not
attach an appropriate copy of this Agreement), with no liability whatsoever to
Company or any other party for doing so.
3. This Agreement supplements, rather than replaces, Depositary's deposit
account agreement, terms and conditions and other standard documentation in
effect from time to time with respect to the Account or services provided in
connection with the Account (the "Account Documentation"), which Account
Documentation will continue to apply to the Account and such services, and the
respective rights, powers, duties, obligations, liabilities and responsibilities
of the parties thereto and hereto, to the extent not expressly conflicting with
the provisions of this Agreement (however, in the event of any such conflict,
the provisions of this Agreement shall control). Prior to issuing any
instructions on or after the Effective Time, Lender shall provide Depositary
with such documentation as Depositary may reasonably request to establish the
identity and authority of the individuals issuing instructions on behalf of
Lender. Lender may request the Depositary to provide other services (such as
automatic daily transfers) with respect to the Account on or after the Effective
Time; however, if such services are not authorized or otherwise covered under
the Account Documentation, Depositary's decision to provide any such services
shall be made in its sole discretion (including without limitation being subject
to Company and/or Lender executing such Account Documentation or other
documentation as Depositary may require in connection therewith).
4. Depositary agrees not to exercise or claim any right of offset,
banker's lien or other like r






