Document:

Exhibit 10.3

 

HIRSCH INTERNATIONAL CORP.

50 Engineers Rd.

Hauppauge, New York 11788

February 14, 2008

Kornit Digital Ltd.

5 David Navon St.

POB 8406

Magshimim, Israel

 

Ladies and Gentlemen:

Reference is hereby made to that certain Agreement, dated January 1, 2008 (the “Services Agreement”), by and between Kornit Digital Ltd., an Israeli company (“Kornit”), and Hirsch International Corp., a Delaware corporation (“Representative”).  Capitalized terms, unless otherwise set forth herein, shall have the meanings as defined in the Services Agreement.  

Notwithstanding anything contained in the Services Agreement, including, without limitation, Section 6 of the Services Agreement, Representative and Kornit wish to set forth in this Letter Agreement the terms of any compensation paid between the parties related to the sales of any Kornit Products made by Representative, such terms to supersede the corresponding provisions contained in the Services Agreement.  In consideration of the mutual covenants contained in this Letter Agreement, and for other good and valuable consideration the receipt of sufficiency of which is acknowledged, the parties agree as follows: 

1.         Sales; Customer Orders; Support.  Representative will purchase any Kornit Products it desires to sell directly from Kornit at prices listed in the Price List or at such other prices as may be agreed upon by the parties.  Representative will sell Kornit Products directly to Customers at prices determined by Representative in its sole discretion, the proceeds of such sales to be paid to directly from the Customers to Representative.  [***]  In all other respects the Services Agreement remains unamended and in full force and effect. 

2.         Authority.  The undersigned have the authority to enter into this Letter Agreement and this Letter Agreement shall be a binding obligation of such parties.  All transactions to be consummated pursuant to this Letter Agreement and all documents to be delivered in connection therewith by the undersigned will be duly authorized, executed and delivered by and shall be binding upon the undersigned.

3.         Governing Law.  This Letter Agreement shall be governed by the laws of the State of Israel, without reference to the conflict of law principles thereof.

 

 

[***]  The portion of this document marked with three asterisks represents a confidential portion omitted and filed separately with the Securities and Exchange Commission.

 

1

 

 

 

 

4.         Counterparts.  This Letter Agreement may be executed in counterparts, each of which shall constitute an original; all signatures need not appear on any one counterpart.  Furthermore, this Letter Agreement may be executed by facsimile or other electronic means, and such signature shall be binding on the parties hereto.

If the foregoing accurately sets forth the understanding of the parties with respect to the matters set forth herein, please so indicate by signing this Letter Agreement and returning it to the Company, whereupon this Letter Agreement will constitute the parties’ agreement with respect to the matters set forth herein.

 

	
             
 	
            HIRSCH INTERNATIONAL CORP.
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Paul E. Gallagher
 
	
             
 	
             
 	
            Name:    Paul E. Gallagher
  Title:     CEO
 

 

Acknowledged and Agreed as of

the date first above written:

	
            KORNIT DIGITAL LTD.
 	
             
 
	
             
 	
             
 	
             
 
	
            By:
 	
            /s/ Ofer Ben-Zur
 	
             
 
	
             
 	
            Name:   Ofer Ben-Zur
 Title:     CEO
 	
             
 

 

 

 

 

[***]  The portion of this document marked with three asterisks represents a confidential portion omitted and filed separately with the Securities and Exchange Commission.

 

2EX-10.1 TERMINATION AGREEMENT AND RELEASE

Exhibit 10.1

EXECUTION COPY

TERMINATION AGREEMENT AND RELEASE

     This TERMINATION AGREEMENT AND RELEASE, dated as of May
11, 2008 (this
“Agreement”), is entered into by and among Cloud Acquisition Corporation, a Delaware
corporation (“Parent”), Cloud Merger Corporation, a Delaware corporation and a wholly-owned
subsidiary of Parent (“Merger Sub”), Cumulus Media Inc., a Delaware corporation (the
“Company”) and, for purposes of Section 3(b) only, ML IBK Positions, Inc. (the
“Guarantor”). Each of the foregoing are collectively referred to herein as the
“Parties” and each individually as a “Party”. Capitalized terms used but not
defined in this Agreement shall have the respective meanings given to them in the Merger Agreement
(as defined below).

RECITALS

     A. On July 23, 2007, Parent, Merger Sub, and the Company executed an Agreement and Plan of
Merger (the “Merger Agreement”), pursuant to which Merger Sub would merge with and into the
Company, with the Company surviving such merger.

     B. The Parties desire to terminate the Merger Agreement and to be bound by the other
provisions set forth below.

AGREEMENT

     Therefore, the Parties hereto hereby agree as follows:

     1. Termination of Merger Agreement. Effective immediately, the Merger Agreement shall
be terminated and none of the provisions of the Merger Agreement shall be of any further force or
effect as of such time, including, without limitation, provisions of the Merger Agreement which by
their terms would otherwise have survived the termination of the Merger Agreement.

     2. Termination of Other
Transaction Documents. The Parties acknowledge and agree that
 (a) the Equity Financing Commitment, the Equity Rollover Commitments
and the Voting Agreements shall be automatically terminated without further action on the part of
the parties to the Equity Financing Commitment, the Equity Rollover Commitments and the Voting
Agreements and (b) the Debt Financing Commitment shall be terminated pursuant to a letter
agreement by and among the parties to the Debt Financing Commitment. The Parties further
acknowledge and agree that (x) none of the provisions of the Equity Financing Commitment, the Equity
Rollover Commitments and the Voting Agreements shall be of any
further force or effect as of such time, including, without limitation, provisions of the Equity
Financing Commitment, the Equity Rollover Commitments and the Voting
Agreements, as the case may be, that by their terms would otherwise have survived the termination
of the Equity Financing Commitment, Equity Rollover Commitments and
the Voting Agreements, as the case may be
and (y) the provisions of the
Debt Financing Commitment shall only have any further force and
effect to the extent expressly provided in the letter agreement
referred to in clause (b) of the immediately preceding sentence .

 

 

     3. Reverse Termination Fee Payment; Termination of Limited Guarantee.

          (a) Reverse Termination Fee Payment. Promptly following the execution of this
Agreement (and in any event on May 12, 2008), Parent shall pay, or
cause to be paid, to the Company $15
million in the aggregate (the
“Reverse Termination Fee Payment”) by wire transfer of immediately available funds to the
account specified in Exhibit A hereto.

          (b) Limited Guarantee. Effective immediately, the Reverse Termination Fee Payment
shall be deemed to be the Obligation (as such term is defined in the Limited Guarantee) and Section
1 of the Limited Guarantee shall be deemed amended accordingly. Effective immediately upon receipt
of the Reverse Termination Fee Payment by the Company, the Limited Guarantee will automatically
terminate (without further action on the part of the parties to the Limited Guarantee) and none of
the provisions of the Limited Guarantee shall be of any further force or effect as of such time,
including, without limitation, provisions of the Limited Guarantee that by their terms would
otherwise have survived the termination of the Limited Guarantee.

     4. Mutual Release; Covenant Not to Sue.

          (a) Each Party, for and on behalf of itself and its Related Parties, does hereby unequivocally
release and discharge, and hold harmless, each other Party and any of their respective former,
current or future officers, directors, agents, advisors, representatives, managers, members,
partners, shareholders, employees, subsidiaries, financing sources, affiliates (including, without
limitation, controlling persons), officers, directors, members, managers and employees of
affiliates (including without limitation, Contributing Stockholders), principals, and any heirs,
executors, administrators, successors or assigns of any said person or entity (the “Related
Parties”), from any and all past, present, direct, indirect, and derivative liabilities,
actions, causes of action, cases, claims, suits, debts, dues, sums of money, attorney’s fees,
accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, injuries, harms, damages, judgments, remedies, extents,
executions, demands, liens and damages of every kind and nature, in law, equity or otherwise,
asserted or that could have been asserted, under federal or state statute, or common law, known or
unknown, suspected or unsuspected, foreseen or unforeseen, anticipated or unanticipated, whether or
not concealed or hidden, from the beginning of time until the date of execution of this Agreement
(collectively, “Actions”), that in any way arises from or out of, are based upon, or are in
connection with or relate to (i) the Merger Agreement, the Equity Financing Commitment, the
Equity Rollover Commitments, the Voting Agreements, the Debt Financing Commitment and the Limited
Guarantee and the other agreements and documents contemplated hereby or thereby (collectively, the
“Transaction Documents”), (ii) any breach, non-performance, action or failure to
act under the Transaction Documents and (iii) the proposed Merger, including the events
leading to the abandonment of the Merger and the termination of the Merger Agreement or any other
Transaction Documents (collectively, the “Released Claims”); provided,
however, that (A) no Party shall be released from any breach, non-performance,
action or failure to act under this Agreement and (B) the parties to the Limited Guarantee
shall not be released from any breach, non-performance, action or failure to act under the Limited
Guarantee until the Limited Guarantee is terminated in accordance with Section 3(b) above.

 

 

          (b) It is understood and agreed that, except as provided in the proviso to Section 4(a), the
preceding paragraph is a full and final release covering all known as well as unknown or
unanticipated debts, claims or damages of the Parties and their Related Parties relating to or
arising out of the Transaction Documents. Therefore, each of the Parties expressly waives any
rights it may have under any statute or common law principle under which a general release does not
extend to claims which such Party does not know or suspect to exist in its favor at the time of
executing the release, which if known by such Party must have affected such Party’s settlement with
the other. In connection with such waiver and relinquishment, the Parties acknowledge that they or
their attorneys or agents may hereafter discover claims or facts in addition to or different from
those which they now know or believe to exist with respect to the Released Claims, but that it is
their intention hereby fully, finally and forever to settle and release all of the Released Claims.
In furtherance of this intention, the releases herein given shall be and remain in effect as full
and complete mutual releases with regard to the Released Claims notwithstanding the discovery or
existence of any such additional or different claim or fact.

          (c) Except as provided in the proviso to Section 4(a), each Party, on behalf of itself and its
Related Parties, hereby covenants to each other Party and their respective Related Parties not to,
with respect to any Released Claim, directly or indirectly encourage or solicit or voluntarily
assist or participate in any way in the filing, reporting or prosecution by such Party or its
Related Parties or any third party of a suit, arbitration, mediation, or claim (including a third
party or derivative claim) against any other Party and/or its Related Parties relating to any
Released Claim. The covenants contained in this Section 4 shall survive this Agreement
indefinitely regardless of any statute of limitations.

     5. Publicity and Disclosure. Any general notices, releases, statements or
communications by either Party to the general public or the press relating to Transaction
Documents, the participation or involvement of the Parties in the transactions contemplated by the
Transaction Documents or the reasons for or any of the events or circumstances surrounding the
termination of the transactions contemplated by the Merger Agreement shall be made only at such
times and in such manner as may be mutually agreed upon by the Parties, except as otherwise
required by law (and in such case only after a reasonable attempt has been made to consult with the
other Parties to this Agreement). Notwithstanding the foregoing, each of the Parties may disclose
or respond to inquiries regarding the termination of the Transaction Documents in a manner that is
fully consistent with, and does not go beyond the scope of, the content of the press release
attached as Exhibit B hereto. The Company further agrees to file with the Securities and
Exchange Commission, as promptly as practicable on May 12, 2008 (and in any event prior to 9:00
a.m. New York City time) a Current Report on Form 8-K in the form attached to this Agreement as
Exhibit C hereto.

     6. Non-Disparagement. Except as required by applicable law or the rules or
regulations of any governmental authority or by the order of any court of competent jurisdiction,
each Party agrees that such Party shall not, directly or indirectly (through such Party’s Related
Parties or otherwise), make, publish or cause to be made or published any statement or remark
concerning the subject matter the Transaction Documents, the participation or involvement of the
Parties in the transactions contemplated by the Transaction Documents or the reasons for or any of
the events or circumstances surrounding the termination of the transactions contemplated by the
Merger Agreement that could reasonably be understood as disparaging the business or

 

 

conduct of the other Parties or their respective Related Parties or as intended to harm the
business or reputation of the other Parties or their respective Related Parties.

     7. Confidentiality. Subject to Section 5, the Parties agree that, for a period of
three years after the date hereof, such Parties shall not, at any time disclose or permit the
disclosure by it or its affiliates of, any information (written or oral and regardless of when
furnished to or received by such Party) relating to the Transaction
Documents, the participation or involvement of the Parties in the transactions contemplated by the
Transaction Documents or the reasons for or any of the events or circumstances surrounding the
termination of the transactions contemplated by the Merger Agreement (the “Relevant
Information”); provided, however, that the restriction contained in this
Section 7 shall not apply to (a) any information in the public domain other than by reason
of unauthorized disclosure by the party hereto agreeing to maintain such information in confidence,
(b) any information that was received on a non-confidential basis from any third-party
source, provided that such source is not known to the disclosing Party to be subject to a
contractual, legal, fiduciary or other obligation of confidentiality with respect to such
information or (c) any information that has been independently acquired or developed by the
applicable Party without use of or reference to any confidential information. Notwithstanding the
foregoing, each Party may disclose Relevant Information (i) if authorized to do so by the
other Parties, which authorization shall not be unreasonably
withheld, conditioned or delayed, (ii) if authorized or required to do so pursuant to applicable law, by a
court of competent jurisdiction, by the rules of any stock exchange
or other self-regulatory organization or by another governmental authority and (iii) to its
affiliates, stockholders, partners, members, directors, officers, employees, agents or advisers
(collectively, “Representatives”) who needed or need to know such Relevant Information in
connection with the involvement of the disclosing Party in the transactions contemplated by the
Transaction Documents or their termination; provided that the disclosing Party shall be
responsible for any actions taken by its Representatives that would be deemed a breach of this
Agreement if the disclosing Party had taken such actions.

     8. Representations of the Parties. Each Party, on behalf of itself and its Related
Parties, represents and warrants to the other Parties as follows:

          (a) This Agreement constitutes a valid and binding obligation of such Party, enforceable
against such Party in accordance with its terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies.

          (b) The execution and delivery of this Agreement by such Party do not, and the performance by
such Party of the transactions contemplated by this Agreement do not: (i) conflict with,
or result in a violation or breach of, any provision of its charter or bylaws (or equivalent
organizational documents), (ii) conflict with, or result in any violation or breach of, or
constitute (with our without notice of lapse of time, or both) a default under or require a consent
or waiver under, any of the terms, conditions or provisions of any contractual restriction binding
on such Party or affecting such Party or any of their assets; or (iii) conflict with or
violate any order or judgment of any court or other agency of government applicable to such Party
or any of its assets.

     9. Notices. Any notice required to be given hereunder shall be sufficient if in
writing, and sent by facsimile transmission with confirmation (provided that any notice
received

 

 

by facsimile transmission or otherwise at the addressee’s location on any business day after
5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s
local time) on the next business day), by reliable overnight delivery service (with proof of
service), hand delivery or certified or registered mail (return receipt requested and first-class
postage prepaid), addressed as follows:

          (a) if to Parent or Merger Sub, to:

Cloud Acquisition Corporation

c/o Cumulus Media Inc.

3280 Peachtree Road NW
Suite 2300

Atlanta, Georgia 30305

Telecopy:     (404) 443-0742

Attention:    Lewis W. Dickey, Jr.

with copies (which shall not constitute notice) to:

Jones Day

1420 Peachtree Street, N.E.

Atlanta, Georgia 30309

Telecopy:     (404) 581-8330

Attention:     John E. Zamer, Esq.

                      William B. Rowland, Esq.

and

Debevoise & Plimpton LLP

919 Third Avenue

New York, NY 10022

Telecopy: (212) 909-6836

Attention:    Franci J. Blassberg, Esq.

                      Stephen R. Hertz, Esq.

if to the Company, to:

Cumulus Media Inc.

3280 Peachtree Road NW

Suite 2300

Atlanta, Georgia 30305

Telecopy:     (404) 260-6877

Attention:     Richard S. Denning, Esq.

 

 

with a copy (which shall not constitute notice) to:

Sutherland Asbill & Brennan LLP

999 Peachtree Street, N.E.

Atlanta, Georgia 30309

Telecopy:     (404) 853-8806

Attention:     Mark D. Kaufman, Esq.

                       Edward W. Kallal, Jr., Esq.

or to such other address as any party shall specify by written notice so given, and such notice
shall be deemed to have been delivered as of the date so telecommunicated and confirmed, personally
delivered or mailed.

     10. Waiver. Except for the provisions of Section 4, any term of this Agreement may be
waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall
be effective unless set forth in a written instrument duly executed by or on behalf of the Party
waiving such term or condition. No waiver by any Party of any term or condition of this Agreement,
in any one or more instances, shall be deemed to be a waiver of any other term or condition nor
construed as a waiver of the same or any other term or condition of this Agreement on any future
occasion. All remedies, either under this Agreement or by any laws or otherwise afforded, shall be
cumulative and not alternative.

     11. Amendment. Any amendments to this Agreement shall be in writing and shall require
the consent of the Parties.

     12. Severability. In the event that any provision hereof would, under applicable law,
be invalid or unenforceable in any respect, such provision shall be construed by modifying or
limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible
under, applicable law. The provisions hereof are severable, and in the event any provision hereof
should be held invalid or unenforceable in any respect, it shall not invalidate, render
unenforceable or otherwise affect any other provision hereof.

     13. Governing Law; Jurisdiction; Enforcement. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws thereof. Each of the
Parties hereto irrevocably agrees that any legal action or proceeding with respect to this
Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of
any judgment in respect of this Agreement and the rights and obligations arising hereunder brought
by any other Party hereto or its successors or assigns, shall be brought and determined exclusively
in the Delaware Court of Chancery and any state appellate court therefrom within the State of
Delaware (or, if the U.S. Federal District Court has exclusive jurisdiction over a particular
matter, any federal court within the State of Delaware). Each of the Parties hereto hereby
irrevocably submits with regard to any such action or proceeding for itself and in respect of its
property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and
agrees that it will not bring any action relating to this Agreement or any of the transactions
contemplated by this Agreement in any court other than the aforesaid courts. Each of the Parties
hereto hereby irrevocably waives, and agrees not to assert as a defense, counterclaim or

 

 

otherwise, in any action or proceeding with respect to this Agreement, (a) any claim
that it is not personally subject to the jurisdiction of the above named courts for any reason
other than the failure to serve in accordance with the provisions of this Agreement,
(b) any claim that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or
otherwise) and (c) to the fullest extent permitted by the applicable law, any claim that
(i) the suit, action or proceeding in such court is brought in an inconvenient forum,
(ii) the venue of such suit, action or proceeding is improper or (iii) this
Agreement, or the subject matter hereof, may not be enforced in or by such courts.

     14. WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     15. No Assignment; Binding Effect. Neither this Agreement nor any right, interest or
obligation hereunder may be assigned by any Party hereto without the prior written consent of the
other Parties hereto and any attempt to do so shall be void, except for assignments and transfers
by operation of any laws. Subject to the preceding sentence and Section 16 hereof, this Agreement
is binding upon, inures to the benefit of and is enforceable by the Parties and their respective
successors and assigns.

     16. Third Party Beneficiaries. Each Party acknowledges and agrees that each Party’s
Related Parties are express third party beneficiaries of the releases of such Related Parties and
covenants not to sue such Related Parties contained in Section 4 of this Agreement and are entitled
to enforce rights under such section to the same extent that such Related Parties could enforce
such rights if they were a party to this Agreement. Except as provided in the preceding sentence,
there are no third party beneficiaries to this Agreement.

     17. Other Agreements. This Agreement constitutes the entire agreement, and supersedes
all prior agreements, understandings, negotiations and statements, both written and oral, among the
Parties or any of their affiliates with respect to the subject matter contained herein.

     18. Headings. The headings used in this Agreement have been inserted for convenience
of reference only and do not define or limit the provisions hereof.

     19. Injunctive Relief. The Parties agree that irreparable damage would occur in the
event that any of the provisions of this Agreement was not performed in accordance with its
specified terms or was otherwise breached and that money damages would not be an adequate remedy
for any breach of this Agreement. It is accordingly agreed that in any proceeding seeking specific
performance each of the Parties shall waive the defense of adequacy of a

 

 

remedy at law. Each of the Parties shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in
any court of competent jurisdiction, this being in addition to any other remedy to which they are
entitled at law or in equity.

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

 

 

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

	 	 	 	 	 
	 	CLOUD ACQUISITION CORPORATION

 	 
	 	By:  	/s/ Lewis W. Dickey, Jr.
 	 
	 	 	Name:  	Lewis W. Dickey, Jr. 	 
	 	 	Title:  	President 	 
	 
	 	CLOUD MERGER CORPORATION

 	 
	 	By:  	/s/ Lewis W. Dickey, Jr.
 	 
	 	 	Name:  	Lewis W. Dickey, Jr. 	 
	 	 	Title:  	President 	 
	 
	 	CUMULUS MEDIA INC.

 	 
	 	By:  	/s/
Robert H. Sheridan III 	 
	 	 	Name:  	Robert H. Sheridan III 	 
	 	 	Title:  	Chairman, Special Committee 	 
	 
	 	for purposes of Section 3(b) only

ML IBK POSITIONS, INC.

 	 
	 	By:  	/s/ Robert F. End
 	 
	 	 	Name:  	Robert F. End 	 
	 	 	Title:  	Authorized Signatory

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