Document:

coinless_8k-ex1001.htm

 

Exhibit 10.1

 

 

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT, effective as of the 17th day of December 2010 (the “Effective Date”) by and between NPNC Management LLC ("Seller") with an address of 3273 E. Warm Springs Road, Las Vegas, Nevada and Jeff DiGenova (“Buyer”) with an address of 39 Acorn Lane Hilton Head, South Carolina,

 

WHEREAS, Seller owns 1,000,000 restricted shares of common stock (the "Shares") of NHS Health Solutions, Inc. (NHSH.PK), a Nevada corporation (the "Company").  This Agreement provides for the acquisition of the Shares by Buyer at a total purchase price of One-Hundred and Forty Thousand U.S. Dollars ($140,000.00) (the “Purchase Price”) on the terms and conditions set forth below.

 

WHEREAS, The Seller and Buyer have determined, subject to the terms and conditions set forth in this Agreement, that the transaction contemplated hereby is desirable and in the their best interests, respectively.  This Agreement is being entered into for the purpose of setting forth the terms and conditions of the proposed acquisition.

 

NOW, THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the parties to be derived here from, it is hereby agreed as follows:

 

ARTICLE I

SALE AND PURCHASE OF THE SHARES

Section 1.1Sale and Purchase.  Subject to the terms and conditions hereof, at the Closing (as defined in paragraph 1.2 below), Seller agrees to sell, assign, transfer, convey and deliver to Buyer, and Buyer agrees to purchase from Seller, the Shares.

Section 1.2  Closing.   The purchase of the Shares shall be consummated at a closing ("Closing") to take place on or before December ____, 2010 unless extended by agreement of the parties hereto (the "Closing Date").

Section 1.3   Purchase Price.  The Purchase Price for the Shares shall be paid as follows:

	
  

	
a.

	
By delivery of the Purchase Price on or before the Closing Date, by Buyer to Seller against delivery of the Shares in transferable form from Seller to Buyer.

	
  

	
b.

	
Delivery of the Purchase Price shall be by wire transfer, net of bank or wire fees, as follows:

Incoming Wire Instructions to Cane Clark LLP Escrow Account

Bank:                      Wells Fargo

Address:                 420 Montgomery

San Francisco, CA  94104

Tele:                       702-382-8722

Fax:                        702-382-8746

Routing #:              121000248

Account #:              8326499509

  

1

  

Please have your bank include the name of your respective company and any other pertinent information so we can identify the funds.

ARTICLE II

REPRESENTATIONS, COVENANTS AND WARRANTIES

 

As an inducement to and to obtain the reliance of Buyer, Seller individually represents and warrants to Buyer as follows:

 

Section 2.1  No Conflict, Authority.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the material breach of any term or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage, deed of trust or other contract, agreement or instrument to which Seller is a party or to which the Shares are subject.  Seller has full power, authority and legal right and has taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.

Section 2.2  Title to the Shares.  Seller owns of record and beneficially the Shares of the Company, free and clear of all liens, encumbrances, pledges, claims, options, charges and assessments of any nature whatsoever, with full right and lawful authority to transfer the Shares to Buyer.  No person has any preemptive rights or rights of first refusal with respect to any of the Shares.  There exists no voting agreement, voting trust, or outstanding proxy with respect to any of the Shares.  Other than disclosed by the Seller to the Buyer, there are no outstanding rights, options, warrants, calls, commitments, or any other agreements of any character, whether oral or written, with respect to the Shares.

 

Section 2.3  Tax Matters.  Seller understands covenants and represents that Seller shall be responsible for and pay all taxes associated with the transactions contemplated by this Agreement.  Seller is not a party to any tax allocation or sharing agreement.  The Shares are not subject to any lien arising in connection with any failure or alleged failure to pay tax.  There are no pending, threatened, or proposed audits, assessments or claims from any tax authority for deficiencies, penalties, or interest with respect to Seller that would affect the Shares.

 

 

Section 2.4  Brokers and Finders. The Seller represents, warrants, and agrees that any finders fee, or any other type of fee related to the sale contemplated by this Agreement, will be paid by the Seller.

 

Section 2.6  Authorized Shares.  The Seller represents that as of the Closing the total number of authorized shares of common stock of the Company shall be 75,000,000, par value $.001 per share, and that the total number of shares of common stock of the Company issued and outstanding shall be 1,355,401, including the Shares.

 

As an inducement to and to obtain the reliance of Seller, Buyer individually represents and warrants to Seller as follows:

  

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Section 2.7  No Conflict, Authority.  The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the material breach of any term or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage, deed of trust or other contract, agreement or instrument to which Buyer is a party.  Buyer has full power, authority and legal right and has taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.

Section 2.8  Restricted Shares.  Buyer acknowledges that the Shares purchased have not been registered under the Securities Act or any state securities laws, will be issued in reliance upon an exemption from the registration and prospectus delivery requirements of the Act which relate to private offerings, will be issued in reliance upon exemptions from the registration and prospectus delivery requirements of state securities laws which relate to private offerings and the Buyer must therefore bear the economic risk of such investment indefinitely unless a subsequent disposition thereof is registered under the Act and applicable state securities laws or is exempt therefrom.  Buyer acknowledges that the shares shall bear restrictive legends.

Section 2.9  Buyer’s Sophistication.  Buyer (i) acknowledges that the purchase of Shares involves a high degree of risk in that the Company has no current business operations or plans and may require substantial funds; (ii) an investment in the Company is highly speculative and only investors who can afford the loss of their entire investment should consider investing in the Company and the Shares; (iii) has such knowledge and experience in finance, securities, investments, including investment in non-listed and non registered securities, and other business matters so as to be able to protect its interests in connection with this transaction; (iv) that the sale of the Shares to Buyer is not registered with the US Securities and Exchange Commission or with the securities administrator of any state; (v) that the Shares are being sold pursuant to an exemption from such registration requirements; and (vi) the Shares are “restricted securities” that will bear a restrictive legend prohibiting their further transfer without registration or any exemption therefrom.

Section 2.10                      Brokers and Finders. The Buyer represents and warrants that he/she/it has made no agreements involving any fees of any type that relate to this Agreement and that would involve the Seller, including but not limited to broker’s fee, finder’s fees or any similar compensation arrangement.

 

ARTICLE III

EXCHANGE PROCEDURE AND OTHER CONSIDERATION

Section 3.1  Seller’s Delivery. On the Closing Date, the Seller shall deliver the following to Buyer, conditioned upon (i) all of Buyer’s representations and warranties set forth in Section 2, above, shall be true and correct as of the Closing, and (ii) Buyer’s performance of its delivery obligations in section 3.2, below:

	
  

	
(a)

	
The Shares together with a stock power or other instruction required for the transfer of the Shares to Buyer.  If necessary, after the sale closes the Seller shall also execute such other certificates or other documents reasonably necessary to transfer the Shares to Buyer.

  

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(b)

	
Written consent from the Company’s board of directors appointing Buyer’s designee to the board of directors, effective upon Closing.

	
  

	
(c)

	
Written resignation from all members of the Company’s board of directors excepting only Buyer’s designee, effective upon Closing.

	
  

	
(d)

	
A written resignation from all officers of the Company, effective upon Closing.

Section 3.2  Buyer’s Delivery.  On the Closing Date, Buyer shall deliver the following to Seller, conditioned upon (i) all of Seller’s representations and warranties set forth in Section 2, above, shall be true and correct as of the Closing, and (ii) Seller’s performance of its delivery obligations in section 3.1, above:

	
  

	
(a)

	
Purchase Price in immediately available good funds.

	
  

	 

	
  

	
(b)

	
A written consent to serve on the Company’s board of directors by the Buyer’s nominee, effective upon Closing, including the nominee’s mailing address.

	
  

	
(c)

	
A written consent from Buyer’s nominee(s) to serve as the President and as other officers of the Company, effective upon Closing, including the nominee’s mailing address, email address and a copy of current, government issued photo identification that Seller will submit to Pinksheets, LLC, solely for the purpose of confirming the change of control of the Company in accordance with the procedures required by Pinksheets, LLC.

	
  

	
(d)

	
A written consent from the Buyer’s nominee to the board of directors, acting in his or her capacity as the sole director of the Company, appointing Buyer’s nominee to serve as President and to other offices of the Company, effective upon Closing.

	
  

	
(e)

	
A written acceptance from Buyer’s nominee to serve as the statutory registered agent for the Company, effective upon Closing, together with the new registered office for the Company which registered office shall be a street address.

ARTICLE IV

MISCELLANEOUS

 

 

Section 4.1  Notification of PinkSheets LLC and Nevada Secretary of State.   Upon Closing, Seller shall notify the state of Nevada, Pinksheets, LLC and the markets generally of the change in control of the Company by taking the following actions:

	
  

	
(a)

	
Update the Company information on the PinkSheets, LLC website via the section established for this purpose. The updated information shall consist of the new address and registered agent for the Company, and the new director(s) and officers of the Company as provided by Buyer.,

  

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(b)

	
Notify the Nevada Secretary of State, by filing an amended annual list of officers and directors , and a change in address and registered agent for the Company..

 

 

	
  

	
(c)

	
Seller shall confirm notifications to Buyer in writing and shall provide copies of the notices and filings provided to PinkSheets LLC and the Nevada Secretary of State.

	
  

	
(d)

	
Buyer shall cooperate fully with Seller in connection with the foregoing notifications including, as and if requested by Buyer, providing direct confirmations of the change in control to any governmental entity, FINRA, and Pinksheets, LLC.

Section 4.2  Notices.  Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or by prepaid overnight delivery via FEDEX, UPS or similar overnight delivery service, addressed to the addresses set forth in this Agreement or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given as of  the date so delivered.

Section 4.3  Attorneys' Fees.  Except as expressly provided herein, each party will be responsible for their own attorney’s fees.

Section 4.4  Confidentiality.  Each party hereto agrees with the other party that, unless and until the transactions contemplated by this Agreement have been consummated, they and their representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except:  (i)  to the extent such data is a matter of public knowledge or is required by law to be published; and (ii)  to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement.

Section 4.5  Third Party Beneficiaries.   This contract is between Seller and Buyer.  Except for the shareholders of the Company and as specifically provided, no other person or entity shall be deemed to be a third party beneficiary of this Agreement.

Section 4.6  Entire Agreement.   This Agreement represents the entire agreement between the parties relating to the subject matter hereof.  This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof.  There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set forth herein.  This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.

Section 4.7  Survival; Termination.  The representations, warranties and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated the applicable statute of limitations.

Section 4.8  Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

  

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Section 4.9  Amendment or Waiver.  Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.  At any time prior to the Closing Date, this Agreement may be amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

Section 4.10  Expenses.   Each party herein shall bear all of their respective costs and expenses incurred in connection with the negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation thereof.

Section 4.11  Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.

Section 4.12  Benefit.  This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their permitted assigns hereunder.  This Agreement shall not be assigned by any party without the prior written consent of the other party.

Section 4.13  Severability.  In the event that any particular provision or provisions of this Agreement or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

Section 4.14  No Strict Construction.  The language of this Agreement shall be construed as a whole, according to its fair meaning and intendment, and not strictly for or against either party hereto, regardless of who drafted or was principally responsible for drafting the Agreement or terms or conditions hereof.

Section 4.15  Execution Knowing and Voluntary.  In executing this Agreement, the parties severally acknowledge and represent that each: (a) has fully and carefully read and considered this Agreement; (b) has been or has had the opportunity to be fully apprised by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof;  (c) is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

Section 4.16  Further Assurances, Cooperation.  Each party shall, upon reasonable request by the other party, execute and deliver any additional documents necessary or desirable to complete sale contemplated by this agreement.  The parties hereto agree to cooperate and use their respective best efforts to consummate the transactions contemplated by this agreement.

Section 4.17  Governing Law.  This Agreement shall be construed (both as to validity and performance) and enforced in accordance with and governed by the laws of the state of Nevada applicable to agreements made and to be performed wholly within such jurisdiction and without regard to conflicts of laws.  Any dispute arising out of this Agreement shall be resolved in the state or federal courts sited in Clark County, Nevada to the exclusion of all other venues.  The prevailing party in any such action shall be entitled to an award of costs and its reasonable attorney’s fees.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	
Seller – NPNC Management LLC

 

 

By:  _____________________________

Name:  Bryan R. Clark

Its:  Manager

 

	
 

Buyer

 

 

By:     __________________________

            __________________________

Name: _________________________

Title:   _____________________

 

	
Address of Seller for Notices:

 

NPNC Management LLC

c/o Cane Clark LLP

3273 East Warm Springs

Las Vegas, NV 89120

FAX (702) 944-7100

 

 

	
Address of Buyer for Notices:

 

_____________________________

_____________________________

_____________________________

FAX (___) ____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6ex10-1.htm

 

EXHIBIT 10.1

 

 

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

AND FIRST AMENDMENT TO FEE LETTER

This SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT AND FIRST AMENDMENT TO FEE LETTER (this “Amendment”), dated as of December 30, 2010, is made by and among the financial institutions party hereto (collectively, “Lenders”), Bank of America, N.A., as a Lender and as agent for Lenders (in its capacity as agent, “Agent”), Hypercom U.S.A., Inc., a Delaware corporation (“Hypercom U.S.A.”), and Hypercom Manufacturing Resources, Inc., an Arizona corporation (“Hypercom Manufacturing”; and together with Hypercom U.S.A., collectively, “Borrowers” and each individually a “Borrower”).

R E C I T A L S:

A. WHEREAS, Borrowers, Agent and Lenders have entered into that certain Loan and Security Agreement dated as of January 15, 2008 (as amended, restated, or otherwise modified from time to time, the “Loan Agreement”); and

 

B. WHEREAS, Borrowers have requested that Agent and Lenders amend the Loan Agreement and the Fee Letter (as defined in the Loan Agreement) in certain respects (including an extension of the maturity date under the Loan Agreement), and Agent and Lenders have agreed to the foregoing request in accordance with the terms of this Amendment.

 

NOW, THEREFORE, in consideration of the premises, and in order to induce Agent and Lenders to amend the Loan Agreement and the Fee Letter pursuant to the terms hereof, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Recitals.  The foregoing Recitals are accurate and are incorporated herein and made a part hereof for all purposes.

2. Definitions.  Unless otherwise defined in this Amendment, all initially capitalized terms and phrases wherever used in this Amendment shall have the respective meanings given to them in the Loan Agreement, as amended hereby.

3. Loan Agreement: Amendment of Definitions.  The following definitions contained in Section 1.1 of the Loan Agreement are hereby amended and restated in their entirety to read as follows:

Borrowing Base: on any date of determination, an amount equal to the lesser of (a) the aggregate amount of Revolver Commitments, minus the LC Reserve, minus the Availability Block; or (b) the sum of the Accounts Formula Amount, plus the Installment Receivables Formula Amount, minus the Availability Reserve; provided that in no event shall the amount under this clause (b) attributable to the Accounts Formula Amount related to Account Debtors located in the EU exceed the lesser of (i) $15,000,000 or (ii) 50% of the total Borrowing Base, and further provided that, for purposes of clause (ii) of the foregoing proviso only, the calculation of the Borrowing Base shall exclude the Availability Block and the LC Reserve.

 

Revolver Termination Date: January 14, 2012.

 

4. Loan Agreement: Deletion of Section 2.1.4(a) and Related Amendment.  Section 2.1.4(a) of the Loan Agreement is hereby amended and restated to read in its entirety as follows: “Intentionally omitted.”  The language on the cover page of the Loan Agreement that reads “(as may be increased pursuant to the terms and conditions herein to an amount not to exceed $40,000,000)” is hereby deleted.

 

  

  

  

 

5. Fee Letter: Deletion of Reference to Size of Facility.  The language in the first sentence of the Fee Letter that reads “(as may be increased to $40,000,000)” is hereby deleted.

6. Fee Letter: Amendment of Commitment Fee Paragraph.  The paragraph of the Fee Letter labeled “Commitment Fee” is hereby amended and restated to read in its entirety as follows:

“           1.           Commitment Fee.  On the Closing Date, Borrowers shall pay to Agent, for Agent’s own account, a commitment fee equal to .50% of the Revolver Commitment.  The foregoing fees will be due and payable by the Borrowers as set forth above in consideration of Agent’s commitments under the Credit Facility and shall be fully-earned when due.”

7. Conditions Precedent.  This Amendment shall not be binding upon Agent or any Lender until each of the following conditions precedent has been satisfied in form and substance satisfactory to Agent and Lenders:

(a) The representations and warranties contained herein and in the Loan Agreement shall be true and correct in all material respects as of the date hereof as if made on the date hereof, except for those representations and warranties that are limited by their terms to a specific date (such representations and warranties being true and correct in all material respects as of the specified date relative thereto);

(b) No Default or Event of Default shall have occurred and be continuing;

(c) Borrowers shall have delivered to Agent an executed original of this Amendment (including all consents and ratifications hereto);

(d) Borrowers shall have paid to Agent an amendment fee of $25,000, which amount shall be paid to Agent in immediately available funds;

(e) Borrowers shall have paid to Agent all fees, costs, and expenses owed to and/or incurred by Agent arising in connection with this Amendment (including reasonable attorneys’ fees and costs);

(f) Agent shall have received such other documents, certificates, opinions, and information that Agent shall require, each in form and substance satisfactory to Agent in its sole discretion.

8. Acknowledgment of the Borrower.  Each Borrower hereby represents and warrants that the execution and delivery of this Amendment and compliance by such Borrower with all of the provisions of this Amendment:  (i) are within the powers and purposes of such Borrower; (ii) have been duly authorized or approved by the board of directors of such Borrower; and (iii) when executed and delivered by or on behalf of such Borrower, will constitute valid and binding obligations of such Borrower, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and to the effects of general principles of equity whether applied by a court of law or equity.  Each Borrower further represents and warrants that the Borrowers no longer own HBNet, Inc., previously a guarantor under the Loan Documents,  Each Borrower reaffirms its obligation to pay all amounts due to Agent and Lenders under the Loan Agreement and the other Loan Documents in accordance with the terms thereof.

 

  

  

  

 

9. Effect on Loan Agreement and other Loan Documents.  Except as specifically amended hereby, the terms and provisions of the Loan Agreement and the other Loan Documents are, in all other respects, ratified and confirmed and remain in full force and effect.  No reference to this Amendment need be made in any notice, writing, or other communication relating to the Loan Agreement and the other Loan Documents, any such reference to the Loan Agreement and the other Loan Documents to be deemed a reference thereto as respectively amended by this Amendment.  All references to the Loan Agreement and the other Loan Documents in any document, instrument, or agreement executed in connection with the Loan Agreement and the other Loan Documents will be deemed to refer to the Loan Agreement and the other Loan Documents as respectively amended hereby.

10. Fees and Expenses.  Each Borrower hereby agrees to pay all fees and other reasonable out-of-pocket expenses incurred by Agent in connection with the preparation, negotiation, and consummation of this Amendment, and all other documents related hereto, including without limitation, the reasonable fees and expenses of Lenders’ counsel.

11. Successors.  This Amendment will be binding upon and inure to the benefit of each Borrower, Lenders, Agent, and their respective successors and assigns, provided, however, that no interest herein may be assigned by any Borrower without the prior written consent of Agent and each Lender.

12. Governing Law.  This Amendment shall be governed by the laws of the State of New York, without giving effect to any conflict of law principles (but giving effect to federal laws relating to national banks).

13. Jury Trial Waiver.  To the fullest extent permitted by applicable law, each of the parties hereto waives its right to trial by jury in any proceeding or dispute of amy kind relating to this Amendment or the other Loan Documents, Obligations or Collateral.  Without limiting the applicability of any other section of the Loan Agreement, Section 14.15 of the Loan Agreement is hereby incorporated by this reference and shall apply to any action, proceeding, claim or controversy arising out of this Amendment.

14. Counterparts.  This Amendment may be executed in the original or by telecopy in any number of counterparts, each of which will be deemed original and all of which taken together will constitute one and the same Amendment.

15. Total Agreement.  This Amendment, the Loan Agreement, and all other Loan Documents embody the entire understanding of the parties with respect to the subject matter thereof and supersede all prior understandings regarding the same subject matter.

16. Acknowledgements and Release.  Each Borrower hereby acknowledges that:  (a) it has no defenses, claims or set-offs to the enforcement by Agent or Lenders of the Obligations on the date hereof; (b) to its knowledge, Agent and Lenders have fully performed all undertakings and obligations owed to it as of the date hereof; and (c) except to the limited extent expressly set forth in this Amendment, Agent and Lenders do not waive, diminish or limit any term or condition contained in the Loan Agreement or any of the other Loan Documents.  EACH BORROWER HEREBY IRREVOCABLY RELEASES AND FOREVER DISCHARGES AGENT AND LENDERS AND THEIR AFFILIATES, AND EACH SUCH PERSON’S RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, MEMBERS, ATTORNEYS AND REPRESENTATIVES (EACH, A “RELEASED PERSON”) OF AND FROM ALL DAMAGES, LOSSES, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, ACTIONS OR CAUSES OF ACTION WHATSOEVER (EACH A “CLAIM”) THAT SUCH BORROWER MAY NOW HAVE OR CLAIM TO HAVE AGAINST ANY RELEASED PERSON ON THE DATE HEREOF, WHETHER KNOWN OR UNKNOWN, OF EVERY NATURE AND EXTENT WHATSOEVER, FOR OR BECAUSE OF ANY MATTER OR THING DONE, OMITTED OR SUFFERED TO BE DONE OR OMITTED BY ANY OF THE RELEASED PERSONS THAT BOTH (I) OCCURRED PRIOR TO OR ON THE DATE HEREOF AND (II) IS ON ACCOUNT OF OR IN ANY WAY CONCERNING, ARISING OUT OF OR FOUNDED UPON THE LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT.

 

  

  

  

 

EACH BORROWER INTENDS THE ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542 (AND ANY EQUIVALENT PROVISION UNDER NEW YORK LAW), WHICH PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

EACH BORROWER ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR CAUSES OF ACTION, AND AGREES THAT THIS AMENDMENT AND THE ABOVE RELEASE ARE AND WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR ADDITIONAL FACTS.

[Remainder of Page Intentionally Left Blank]

 

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

BORROWERS:

HYPERCOM U.S.A., INC.,

a Delaware corporation

By: /s/ Scott Tsujita                                                              

Name: Scott Tsujita

Title: Treasurer

HYPERCOM MANUFACTURING RESOURCES, INC., an Arizona corporation

 

By: /s/ Scott Tsujita                                                                

Name: Scott Tsujita

Title: Treasurer

 

  

  

  

 

AGENT AND LENDERS:

BANK OF AMERICA, N.A.,

as Agent and Lender

By: /s/ Carlos Gil                                                               

Name: Carlos Gil

Title:   Vice President

  

  

  

 

CONSENTS AND REAFFIRMATIONS

Each of HYPERCOM CORPORATION, a Delaware corporation, HYPERCOM EMEA, INC., an Arizona corporation, HYPERCOM LATINO AMERICA, INC., an Arizona corporation, HYPERCOM PUERTO RICO REPAIR FACILITY, G.P., an Arizona general partnership, and HYPERCOM EMEA LTD., a company organized under the laws of the United Kingdom (collectively, “Obligors”, and each individually, an “Obligor”), hereby acknowledges the execution of, and consents to, the terms and conditions of that Second Amendment to Loan and Security Agreement and First Amendment to Fee Letter dated as of December 30, 2010 (the “Amendment”), by and among HYPERCOM U.S.A., INC., HYPERCOM MANUFACTURING RESOURCES, INC. (collectively, “Borrowers”), certain financial institutions party thereto as lenders, and BANK OF AMERICA, N.A. (“Agent”), and reaffirms its obligations under each Secured Continuing Guaranty (each, a “Guaranty”) dated as of January 15, 2008, and executed individually by each of the undersigned in favor of Agent in connection with that certain Loan and Security Agreement dated as of January 15, 2008 (as amended, restated, or otherwise modified from time to time, the “Loan Agreement”) by and among Borrowers, Agent and Lenders.  Each of the undersigned acknowledges and agrees that each such Guaranty remains in full force and effect and is hereby ratified and confirmed.  All initially capitalized terms and phrases wherever used in this consent shall have the respective meanings given to them in the Loan Agreement, as amended by the Amendment.

 

Each Obligor hereby acknowledges that:  (a) it has no defenses, claims or set-offs to the enforcement by Agent or Lenders of the Obligations on the date hereof; (b) to its knowledge, Agent and Lenders have fully performed all undertakings and obligations owed to it as of the date hereof; and (c) except to the limited extent expressly set forth in the Amendment, Agent and Lenders do not waive, diminish or limit any term or condition contained in the Loan Agreement or any of the other Loan Documents.  EACH OBLIGOR HEREBY IRREVOCABLY RELEASES AND FOREVER DISCHARGES AGENT AND LENDERS AND THEIR AFFILIATES, AND EACH SUCH PERSON’S RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, MEMBERS, ATTORNEYS AND REPRESENTATIVES (EACH, A “RELEASED PERSON”) OF AND FROM ALL DAMAGES, LOSSES, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, ACTIONS OR CAUSES OF ACTION WHATSOEVER (EACH A “CLAIM”) THAT SUCH OBLIGOR MAY NOW HAVE OR CLAIM TO HAVE AGAINST ANY RELEASED PERSON ON THE DATE HEREOF, WHETHER KNOWN OR UNKNOWN, OF EVERY NATURE AND EXTENT WHATSOEVER, FOR OR BECAUSE OF ANY MATTER OR THING DONE, OMITTED OR SUFFERED TO BE DONE OR OMITTED BY ANY OF THE RELEASED PERSONS THAT BOTH (I) OCCURRED PRIOR TO OR ON THE DATE HEREOF AND (II) IS ON ACCOUNT OF OR IN ANY WAY CONCERNING, ARISING OUT OF OR FOUNDED UPON ANY GUARANTY, THE LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT.

EACH OBLIGOR INTENDS THE ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542 (AND ANY EQUIVALENT PROVISION UNDER NEW YORK LAW), WHICH PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

EACH OBLIGOR ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR CAUSES OF ACTION, AND AGREES THAT THE AMENDMENT, EACH GUARANTY AND THE ABOVE RELEASE ARE AND WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR ADDITIONAL FACTS.

 

Dated as of December 30, 2010

 

HYPERCOM CORPORATION,

 

a Delaware corporation

 

                        

                    By: /s/ Scott Tsujita                                                                

Name: Scott Tsujita

Title: SVP, Treasurer

 

HYPERCOM EMEA, INC.,

 

an Arizona corporation

 

 

                    By: /s/ Scott Tsujita                                                                

Name: Scott Tsujita

Title: Treasurer

HYPERCOM LATINO AMERICA, INC.,

 

an Arizona corporation

 

 

                    By: /s/ Scott Tsujita                                                                

Name: Scott Tsujita

Title: Treasurer

  

  

  

 

HYPERCOM PUERTO RICO REPAIR

 

FACILITY, G.P.,

 

an Arizona general partnership

 

By:           HYPERCOM U.S.A., INC.,

its general partner

 

By: /s/ Scott Tsujita          

Name: Scott Tsujita

Title: Treasurer

	
  

	
By:

	
HYPERCOM LATINO AMERICA, INC.,

its general partner

 

By: /s/ Scott Tsujita          

Name: Scott Tsujita

                           Title: Treasurer

HYPERCOM EMEA LTD.,

 

a company organized under the laws of the United Kingdom

 

By: /s/ Douglas J. Reich           

Name: Douglas J. Reich

Title: Director, Secretary

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