Document:

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                                                                    EXHIBIT 10.4

                            STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (the "Agreement") is dated July 31, 2001, and

is between Michelle Investments LLC ("Michelle") and Hypercom Corporation

("Hypercom").

                                   BACKGROUND

     A. Michelle recently loaned Hypercom $15 million (the "Loan"). In
connection with the Loan, Hypercom granted Michelle a Series A Warrant (the
"Series A Warrant") to purchase shares of Hypercom's common stock.

     B. By this Agreement, Michelle agrees to purchase 2,475,248 shares of
Hypercom's common stock, in consideration for the reduction of the principal
amount of the Loan by $7,500,001.40. The remainder of the Loan, and all accrued
interest, is being paid off by Hypercom. The Series A Warrant will remain
outstanding and enable Michelle to purchase 1,000,000 shares of common stock of
Hypercom, subject to adjustment in accordance with the terms thereof.

     NOW, THEREFORE, in consideration of the promises herein, the parties hereto
agree as follows:

                                   AGREEMENTS

     1.   PURCHASE AND SALE OF STOCK. Hypercom hereby issues and sells to
Michelle, and Michelle hereby purchases and acquires from Hypercom, 2,475,248
shares of Hypercom's common stock (the "Shares") for $3.03 per share. Payment
for the Shares is made through the reduction of the principal amount of the Loan
by $7,500,001.40.

     2.   REPAYMENT OF LOAN. Concurrently herewith, Hypercom is repaying the
balance of the Loan (after giving effect to the reduction of the Loan by
$7,500,001.40 pursuant to Section 1 hereof) together with all accrued interest
thereon, which amount the parties hereto agree is $6,336,004.42 as of July 26,
2001 plus an additional $2,880.70 for each day thereafter.

     3.   CONDITIONS; EFFECTIVENESS OF PURCHASE OF SHARES. Closing of the
issuance, sale, purchase and acquisition of the Shares is contingent upon the
following events occurring on or before August 15, 2001, which events Hypercom
agrees to use commercially reasonable efforts to cause to occur:

          a. the repayment of the balance of the Loan together with all accrued
and unpaid interest thereon in accordance with Section 2 hereof; and

          b. completion of the refinancing of Hypercom's principal credit
facility with Foothill Capital Corporation and Ableco Finance LLC.
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The issuance, sale, purchase and acquisition of the Shares shall be effective as
at the first time that these conditions are both satisfied.

     4.   REGISTRATION OF SHARES. Hypercom agrees that (i) it shall promptly
(but in no event later than September 4, 2001) prepare and file a registration
statement under the Securities Act of 1933, as amended (the "Securities Act")
for the registration of the Shares, and shall use commercially reasonable
efforts to cause such registration statement to become effective by December 3,
2001, (ii) the Shares shall be subject to the registration provisions of Article
5 of the Series A Warrant, including, without limitation, the provisions
relating to Hypercom's payment of expenses related to such registration, and
(iii) the Shares shall be "Registrable Securities" as defined in the Series A
Warrant.

     5.   EFFECT ON SERIES A WARRANT; AMENDMENT TO SERIES A WARRANT. The parties
hereto acknowledge and agree that (subject to adjustment as provided in Article
4 of the Series A Warrant) the maximum number of shares issuable upon exercise
of the Series A Warrant is fixed at 1,000,000 (with the parties further
acknowledging that the provisions of subsection (ii) under the definition of
"Warrant Shares" in the Series A Warrant are not capable of being achieved). The
parties further agree that the Series A Warrant is hereby amended by:

          a. deleting the word "and" appearing immediately before the "(iv)" in
the second to last line of the definition of "Additional Stock"; and

          b. inserting at the end of such definition, immediately after the word
"otherwise", the following words:

          ", (v) the Common Stock issued to Michelle Investments LLC pursuant to
          that certain Stock Purchase Agreement between the Company and Michelle
          Investments LLC dated July 31, 2001, (vi) the Common Stock (not to
          exceed 2,500,000 shares in the aggregate) issued to Norton Family
          Living Trust UTD 2-4-91, Norton Family Living Trust UTD 2-15-96,
          Stevenson Family Living Trust UTD 7/1/97, JR Norton Ventures Limited
          Partnership, Daniel D. Diethelm, Michael R. Norton and Matthew A.
          Diethelm, all pursuant to that certain Stock Purchase Agreement among
          the Company and such parties dated July 30, 2001, (vii) the issuance
          of up to 1,875,00 shares of Common Stock (subject to adjustment as
          provided therein) to Abelco Holding LLC pursuant to a Series C Warrant
          to be granted to it, on or after the date hereof; (viii) the issuance
          of up to 350,000 shares of Common Stock (subject to adjustment as
          provided therein) to Roth Capital Corporation pursuant to a Series D
          Warrant to be granted to it, on or after the date hereof; and (ix) the
          options or warrants to purchase common stock described above."

     6.   DELIVERIES. The parties hereby deliver (or undertake to deliver
promptly hereafter):

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          a. As to Hypercom:

             (i) Certificate(s) representing the Shares, with each such
certificate bearing the following legend:

          THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES
          LAW, AND ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
          HYPOTHECATED, DIRECTLY OR INDIRECTLY IN THE ABSENCE OF (i) AN
          EFFECTIVE REGISTRATION STATEMENT RELATING THERETO, OR (ii) AN OPINION
          OF COUNSEL FOR THE REGISTERED HOLDER OF THIS CERTIFICATE, REASONABLY
          SATISFACTORY TO HYPERCOM CORPORATION, THAT SUCH REGISTRATION IS NOT
          REQUIRED.

             (ii) Payment of the balance of the Loan (including all accrued
and unpaid interest thereon) by wire transfer or cashier's check.

          b. As to Michelle:

             (i) The Promissory Note or Notes representing the Loan, marked
"Cancelled and Paid In Full"; and

             (ii) Releases of all security interests related to the Loan in
form and substance acceptable to Hypercom.

     7.   REPRESENTATIONS AND WARRANTIES OF HYPERCOM. Hypercom represents and
warrants that:

          a. Legal Status: Qualification. Hypercom is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and is qualified or licensed to do business in all other countries,
states and provinces in which the laws thereof require Hypercom to qualify
and/or be licensed, except where failure to qualify or be licensed would not
have a material adverse effect on the business or assets of Hypercom taken as a
whole;

          b. Authority. Hypercom has the right and power, and is duly authorized
and empowered, to enter into, execute, deliver and perform this Agreement;

          c. Binding Effect. This Agreement has been duly authorized, executed
and delivered and constitutes a valid and binding obligation of Hypercom
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally, and subject, as to enforceability, to general
principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity);

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          d. No Conflict. The execution, delivery and/or performance by Hypercom
of this Agreement shall not, by the lapse of time, the giving of notice or
otherwise, constitute a violation of any applicable law or a breach of any
provision contained in Hypercom's Certificate of Incorporation or By-laws or
contained in any agreement, instrument, or document to which Hypercom is a party
or by which it is bound;

          e. Consents. Except for filings required pursuant to applicable
securities laws, no consent, approval, authorization or other order of any
court, regulatory body, administrative agency or other governmental body is
required for the execution and delivery by Hypercom of this Agreement or the
performance of any of Hypercom's obligations hereunder;

          f. Offering. Neither Hypercom nor any agent acting on its behalf has
or will sell or offer for sale, or dispose of or attempt or offer to dispose of,
the Shares or any part thereof to, or solicit any offers to buy any securities
of like tenor from, or otherwise approach or negotiate in respect thereof, with
any person or persons so as thereby to bring the issuance of the Shares within
the provisions of Section 5 of the Securities Act;

          g. Registration. Subject to Hypercom's reliance on the truth and
accuracy of Michelle's representations and warranties in Section 8 hereof, it is
not necessary in connection with the issuance and sale of the Shares to Michelle
to register the Shares under the Securities Act; and

          h. Fully Paid Shares. Upon payment therefor in accordance with this
Agreement, the Shares will be validly and legally issued, fully paid and
non-assessable.

     8.   REPRESENTATIONS AND WARRANTIES OF MICHELLE. Michelle represents and
warrants that:

          a. Purchase for Own Account. The Shares are being acquired for
investment for Michelle's own account, and not with a view to the resale or
distribution of any part thereof, and Michelle has no present intention of
selling, granting any participation in, or otherwise distributing the Shares or
any part thereof. Michelle does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person with respect to the Shares or any part thereof.

          b. Disclosure of Information. Michelle is aware of Hypercom's business
affairs, financial condition, and status with its lenders, has received and
reviewed all information (including all reports, registrations and other
documents filed by Hypercom with the United States Securities and Exchange
Commission (the "Commission") up to the date hereof) it considers necessary or
appropriate for making an informed and knowledgeable decision as to whether to
acquire the Shares and further represents that it has had sufficient opportunity
to ask questions and receive answers from Hypercom regarding the nature and
affairs of Hypercom, including its business, properties, prospects and financial
condition.

          c. Investment Experience. Michelle is an investor in securities of
companies and acknowledges that it is capable of bearing the economic risk of
its investment in the Shares, including the risk of total loss of any or all of
such investment, and has such knowledge and

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experience in financial or business matters that it is capable of evaluating the
merits and risks of such investment.

          d. Accredited Investor. Michelle is an "accredited investor" within
the meaning of Commission Rule 501 of Regulation D, as presently in effect.

          e. Restricted Securities. Michelle understands and hereby acknowledges
that (i) the Shares will not initially be registered under the Securities Act,
and in such event will be issued in reliance upon a specific exemption from the
registration requirements under the Securities Act, which exemption depends
upon, among other things, the bona fide nature of Michelle's investment intent
as expressed herein, and (ii) the Shares must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from
registration is otherwise available.

          f. Rule 144 Restrictions. Michelle is aware of the provisions of Rule
144, promulgated under the Securities Act, which, in substance, permit limited
public resale of "restricted securities" acquired, directly or indirectly, from
the issuer thereof (or from an affiliate of such issuer), in a non-public
offering subject to the satisfaction of certain conditions, if applicable,
including among other things: (i) the availability of certain public information
about Hypercom; (ii) the resale occurring not less than one (1) year after the
party has purchased and paid for the securities to be sold, unless registered;
(iii) the sale being made through a broker in an unsolicited "broker's
transaction" or in transactions directly with a market maker (as said term is
defined under the Securities Exchange Act of 1934, as amended), (iv) the amount
of securities being sold during any three-month period not exceeding the
specified limitations stated therein, and (v) the filing of Form 144 with the
Commission.

          g. Rule 144 Limitations. Michelle understands and acknowledges that at
the time it wishes to sell some or all of the Shares, there may not be an active
public market upon which to make such a sale, and that, even if such an active
public market upon which to make such a sale then exists, Hypercom may not be
satisfying the current public information requirements of Rule 144. In such
event, Michelle understands that it may be precluded from selling the Shares
under Rule 144 even if the one-year minimum holding period has been satisfied or
the Shares registered. Michelle further understands that (i) if all of the
requirements of Rule 144 are not satisfied, registration under the Securities
Act or some other registration exemption will be required to permit Michelle to
sell the Shares, and (ii) notwithstanding the fact that Rule 144 is not
exclusive, the staff of the Commission has expressed its opinion that persons
proposing to sell private placement securities other than in a registered
offering and other than pursuant to Rule 144 will have a substantial burden of
proof in establishing that an exemption from registration is available for such
offers or sales, and that such persons and their respective brokers who
participate in such transactions do so at their own risk.

          h. No Related Transaction. Michelle is not related in any way to any
of Norton Family Living Trust UTD 2-4-91, Norton Family Living Trust UTD
2-15-96, Stevenson Family Living Trust UTD 7/1/97, JR Norton Ventures Limited
Partnership, Daniel D. Diethelm, Michael R. Norton and Matthew A. Diethelm, or
to Abelco Holding LLC or Roth Capital Corporation, and Michelle's purchase and
acquisition of the Shares as contemplated in this Agreement is not related to
the purchase by any

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such parties of any other shares of Hypercom's common stock or other securities
exchangeable for or convertible into Hypercom's common stock. The transactions
set forth herein were negotiated separately from, and after, the prior
transactions between the parties described in the recitals hereto, and are not
related to such prior transactions. Michelle owned less than 1,600,000 shares of
Hypercom's common stock immediately prior to the date hereof.

     9.   HYPERCOM'S COVENANT. Hypercom covenants that, it shall, at its sole
expense, upon Michelle's written request, use commercially reasonable efforts to
cause the Shares to be listed for trading on the New York Stock Exchange, or if
Hypercom's common stock ceases to be traded on the New York Stock Exchange, on
such other national securities exchange, national market system or
over-the-counter market on which Hypercom's common stock is listed or quoted for
trading.

     10.  MISCELLANEOUS.

          a. Certain Expenses. Subject to the registration rights provisions of
the Series A Warrant, Hypercom shall pay all stamp or issuance taxes (other than
stock transfer taxes) that may be imposed in respect of, the issuance, sale and
delivery of the Shares to Michelle.

          b. Enforcement Costs. If either party to this Agreement seeks to
enforce its rights hereunder by legal proceedings or otherwise, then the
non-prevailing party shall pay all reasonable costs and expenses incurred by the
prevailing party, including without limitation, all reasonable attorneys' fees.
The term "prevailing party" shall mean that party whose position is
substantially upheld in a final judgment rendered in such litigation or in a
final arbitration award, or if the final judgment or arbitration award is
appealed, that party whose final position is substantially upheld by the
decision of the final appellate body.

          c. Nonwaiver; Cumulative Remedies. No course of dealing or any delay
or failure to exercise any right hereunder on the part of either party hereto
shall operate as a waiver of such right or otherwise prejudice the rights,
powers or remedies of such party. No single or partial waiver by a party hereto
of any provision of this Agreement or any breach or default hereunder or of any
other provision, breach, default right or remedy or the same provision, breach,
default, right or remedy on a future occasion. The rights and remedies provided
in this Agreement are cumulative and are in addition to all rights and remedies
which either party may have in law or in equity or by statute or otherwise.

          d. Notices. Any notice, demand or delivery to be made pursuant to this
Agreement shall be deemed delivered and received (i) when personally delivered,
(ii) on the third business day following the day when deposited in the U.S.
mail, postage prepaid, certified or registered mail, return receipt requested,
addressed as set forth below or (iii) on the first business day after proper and
timely deposit for next day delivery, charges prepaid, with a nationally
recognized delivery service to the location of the recipient, to such party at
the address set forth below. Michelle's address shall be its last known address
appearing on the books of Hypercom maintained for such purpose. Hypercom's
address shall be its principal executive office. Michelle and Hypercom may
designate a different address by notice to the other pursuant to this Subsection
10d.

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          e. Successors and Assigns. This Agreement shall be binding upon,
Hypercom and any person succeeding Hypercom, by merger, consolidation or
acquisition of all or substantially all of Hypercom's assets, and all of the
obligations of Hypercom with respect to the Shares and all of the covenants and
agreements of Hypercom shall inure to the benefit of Michelle and its successors
and assigns.

          f. Severability.

             (i) If, in any action before any court or agency legally
empowered to enforce any term of this Agreement, any term is found to be
unenforceable, then such term shall be deemed modified to the extent necessary
to make it enforceable by such court or agency.

             (ii) If any term of this Agreement is not curable as set forth in
subsection (i) above, the unenforceability of such term shall not effect the
other provisions of this Agreement, and this Agreement shall be construed as if
such unenforceable term had never been contained herein.

          g. Survival of Representations and Warranties. The representations and
warranties of Hypercom and Michelle in this Agreement shall survive the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, notwithstanding any investigation by Michelle
or its agents.

          h. Amendment. This Agreement may not be modified or amended except by
written agreement of Hypercom and Michelle.

          i. Headings. The headings of the Sections and Subsections of this
Agreement are for the convenience of reference only and shall not, for any
purpose, be deemed a part of this Agreement.

          j. Governing Law. This Agreement shall be governed by, and construed
in accordance with the laws of the State of Delaware, without regard to conflict
of law principles.

              [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

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     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by its duly authorized officer as of July       , 2001.

                                               HYPERCOM CORPORATION

                                               /s/ Jonathon E. Killmer
                                               --------------------------------
                                               Jonathon E. Killmer
                                               Executive Vice President

                                               MICHELLE INVESTMENTS L.L.C.

                                               By: /s/ Sam Buchbinder
                                                  ------------------------------
                                               Its: Manager
                                                   -----------------------------

                                       8<PAGE>   1
                                                                    EXHIBIT 10.5

                            STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement (the "Agreement") is dated July 30, 2001,
and is among Hypercom Corporation, a Delaware corporation ("Hypercom"), and
Norton Family Living Trust UTD 2-4-91, Norton Family Living Trust UTD 2-15-96,
Stevenson Family Living Trust UTD 7/1/97, JR Norton Ventures Limited
Partnership, an Arizona limited partnership, Daniel D. Diethelm, Michael R.
Norton and Matthew A. Diethelm (collectively, the "Purchasers").

                                   BACKGROUND

         A.       Certain of the Purchasers recently loaned Hypercom an
aggregate of $2,200,000. In connection with these loans, Hypercom granted to
those Purchasers certain Series B Warrants (the "Series B Warrants") to purchase
shares of Hypercom's common stock.

         B.       Pursuant to the terms of this Agreement, the Purchasers agree
to purchase an aggregate of 1,745,201 shares of Hypercom's common stock for cash
consideration.

         NOW, THEREFORE, in consideration of the promises herein, the parties
hereto agree as follows:

                                   AGREEMENTS

         1.       PURCHASE AND SALE OF STOCK. Hypercom hereby issues and sells
to the Purchasers, and the Purchasers hereby purchase and acquire from Hypercom,
1,745,201 shares of Hypercom's common stock (the "Shares") for $4.2975 per
share, such Shares to be issued and sold to, and purchased by, each individual
Purchaser in the following amounts:

         a.       639,907 of the Shares to Norton Family Living Trust UTD
                  2-4-91;

         b.       488,656 of the Shares to Norton Family Living Trust UTD
                  2-15-96;

         c.       34,904 of the Shares to Stevenson Family Living Trust UTD
                  7/1/97;

         d.       232,693 of the Shares to JR Norton Ventures Limited
                  Partnership;

         e.       209,426 of the Shares to Daniel D. Diethelm;

         f.       116,346 of the Shares to Michael R. Norton; and

         g.       23,269 of the Shares to Matthew A. Diethelm.
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         2.       REGISTRATION OF SHARES. Hypercom agrees that (i) it shall
promptly (but in no event later than September 4, 2001) prepare and file a
registration statement under the Securities Act of 1933, as amended (the
"Securities Act") for the registration of the Shares, and shall use commercially
reasonable efforts to cause such registration statement to become effective by
December 3, 2001, (ii) the Shares shall be subject to the registration
provisions of Article 5 of the Series B Warrants, and any Purchaser who is not a
holder of Series B Warrants shall nonetheless be entitled to the benefit of
those registration provisions, and (iii) the Shares shall be "Registrable
Securities" as defined in the Series B Warrants.

         3.       DELIVERIES. The parties hereby deliver (or undertake to
deliver promptly hereafter):

                  a.       As to Hypercom, certificates representing the Shares,
         with each such certificate bearing the following legend:

                  THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY
                  STATE SECURITIES LAW, AND ACCORDINGLY, MAY NOT BE SOLD,
                  OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, DIRECTLY OR
                  INDIRECTLY IN THE ABSENCE OF (i) AN EFFECTIVE REGISTRATION
                  STATEMENT RELATING THERETO, OR (ii) AN OPINION OF COUNSEL FOR
                  THE REGISTERED HOLDER OF THIS CERTIFICATE, REASONABLY
                  SATISFACTORY TO HYPERCOM CORPORATION, THAT SUCH REGISTRATION
                  IS NOT REQUIRED.

                  b.       As to the Purchasers, payment by wire transfer of
         immediately available funds or cashier's check of the aggregate
         $7,500,001.20 purchase price for the Shares.

         4.       REPRESENTATIONS AND WARRANTIES OF HYPERCOM. Hypercom
represents and warrants that:

                  a.       Legal Status: Qualification. Hypercom is a
         corporation duly organized, validly existing and in good standing under
         the laws of the State of Delaware and is qualified or licensed to do
         business in all other countries, states and provinces in which the laws
         thereof require Hypercom to qualify and/or be licensed, except where
         failure to
<PAGE>   3
         qualify or be licensed would not have a material adverse effect on the
         business or assets of Hypercom taken as a whole;

                  b.       Authority. Hypercom has the right and power, and is
         duly authorized and empowered, to enter into, execute, deliver and
         perform this Agreement;

                  c.       Binding Effect. This Agreement has been duly
         authorized, executed and delivered and constitutes a valid and binding
         obligation of Hypercom enforceable in accordance with its terms,
         subject to applicable bankruptcy, insolvency, reorganization,
         moratorium and similar laws affecting creditors' rights and remedies
         generally, and subject, as to enforceability, to general principles of
         equity, including principles of commercial reasonableness, good faith
         and fair dealing (regardless of whether enforcement is sought in a
         proceeding at law or in equity);

                  d.       No Conflict. The execution, delivery and/or
         performance by Hypercom of this Agreement shall not, by the lapse of
         time, the giving of notice or otherwise, constitute a violation of any
         applicable law or a breach of any provision contained in Hypercom's
         Certificate of Incorporation or By-laws or contained in any agreement,
         instrument, or document to which Hypercom is a party or by which it is
         bound;

                  e.       Consents. Except for filings required pursuant to
         applicable securities laws, no consent, approval, authorization or
         other order of any court, regulatory body, administrative agency or
         other governmental body is required for the execution and delivery by
         Hypercom of this Agreement or the performance of any of Hypercom's
         obligations hereunder;

                  f.       Offering. Neither Hypercom nor any agent acting on
         its behalf has or will sell or offer for sale, or dispose of or attempt
         or offer to dispose of, the Shares or any part thereof to, or solicit
         any offers to buy any securities of like tenor from, or otherwise
         approach or negotiate in respect thereof, with any person or persons so
         as thereby to bring the issuance of the Shares within the provisions of
         Section 5 of the Securities Act;

                  g.       Registration. Subject to Hypercom's reliance on the
         truth and accuracy of the Purchasers' representations and warranties in
         Section 5 hereof, it is not necessary in

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         connection with the issuance and sale of the Shares to the Purchasers
         to register the Shares under the Securities Act; and

                  h.       Fully Paid Shares. Upon payment therefor in
         accordance with this Agreement, the Shares will be validly and legally
         issued, fully paid and non-assessable.

         5.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. The
Purchasers represent and warrant that:

                  a.       Purchase for Own Account. The Shares are being
         acquired for investment for each Purchaser's own account, and not with
         a view to the resale or distribution of any part thereof, and no
         Purchaser has any present intention of selling, granting any
         participation in, or otherwise distributing the Shares or any part
         thereof. No Purchaser has any contract, undertaking, agreement or
         arrangement with any person to sell, transfer or grant participation to
         such person with respect to the Shares issuable to such Purchaser or
         any part thereof.

                  b.       Disclosure of Information. Each Purchaser is aware of
         Hypercom's business affairs, financial condition, and status with its
         lenders, has received and reviewed all information (including all
         reports, registrations and other documents filed by Hypercom with the
         United States Securities and Exchange Commission (the "Commission") up
         to the date hereof) that such Purchaser considers necessary or
         appropriate for making an informed and knowledgeable decision as to
         whether to acquire the Shares to be issued to it or him hereunder, and
         further represents that it or he has had sufficient opportunity to ask
         questions and receive answers from Hypercom regarding the nature and
         affairs of Hypercom, including its business, properties, prospects and
         financial condition.

                  c.       Investment Experience. Each Purchaser is an investor
         in securities of companies and acknowledges that it or he is capable of
         bearing the economic risk of its or his investment in the Shares to be
         issued to it or him hereunder, including the risk of total loss of any
         or all of such investment, and has such knowledge and experience in
         financial or business matters that it or he is capable of evaluating
         the merits and risks of such investment.

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                  d.       Accredited Investor. Each Purchaser is an "accredited
         investor" within the meaning of Commission Rule 501 of Regulation D, as
         presently in effect.

                  e.       Restricted Securities. The Purchasers understands and
         hereby acknowledge that (i) the Shares will not initially be registered
         under the Securities Act, and in such event will be issued in reliance
         upon a specific exemption from the registration requirements under the
         Securities Act, which exemption depends upon, among other things, the
         bona fide nature of the Purchasers' investment intent as expressed
         herein, and (ii) the Shares must be held indefinitely unless
         subsequently registered under the Securities Act or unless an exemption
         from registration is otherwise available.

                  f.       Rule 144 Restrictions. The Purchasers are aware of
         the provisions of Rule 144, promulgated under the Securities Act,
         which, in substance, permit limited public resale of "restricted
         securities" acquired, directly or indirectly, from the issuer thereof
         (or from an affiliate of such issuer), in a non-public offering subject
         to the satisfaction of certain conditions, if applicable, including
         among other things: (i) the availability of certain public information
         about the issuer; (ii) the resale occurring not less than one (1) year
         after the party has purchased and paid for the securities to be sold,
         unless registered; (iii) the sale being made through a broker in an
         unsolicited "broker's transaction" or in transactions directly with a
         market maker (as said term is defined under the Securities Exchange Act
         of 1934, as amended), (iv) the amount of securities being sold during
         any three-month period not exceeding the specified limitations stated
         therein, and (v) the filing of Form 144 with the Commission.

                  g.       Rule 144 Limitations. Each Purchaser understands and
         acknowledges that at the time it or he wishes to sell some or all of
         its or his Shares, there may not be an active public market upon which
         to make such a sale, and that, even if such an active public market
         upon which to make such a sale then exists, Hypercom may not be
         satisfying the current public information requirements of Rule 144. In
         such event, each Purchaser understands that it or he may be precluded
         from selling its or his Shares under Rule 144 even if the one-year
         minimum holding period has been satisfied or such Shares registered.
         Each Purchaser further understands that (i) if all of the requirements
         of Rule

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         144 are not satisfied, registration under the Securities Act or some
         other registration exemption will be required to permit such Purchaser
         to sell its or his Shares, and (ii) notwithstanding the fact that Rule
         144 is not exclusive, the staff of the Commission has expressed its
         opinion that persons proposing to sell private placement securities
         other than in a registered offering and other than pursuant to Rule 144
         will have a substantial burden of proof in establishing that an
         exemption from registration is available for such offers or sales, and
         that such persons and their respective brokers who participate in such
         transactions do so at their own risk.

                  h.       No Related Transaction. No Purchaser is related in
         any way to Michelle Investments LLC, Abelco Holding LLC or Roth Capital
         Corporation, and each Purchaser's purchase and acquisition of his or
         its Shares as contemplated in this Agreement is not related to the
         purchase or acquisition by any such parties of any other shares of
         Hypercom's common stock or other securities exchangeable for or
         convertible into Hypercom's common stock. The transactions set forth
         herein were negotiated separately from, and after, the prior
         transactions between the parties described in the recitals hereto, and
         are not related to such prior transactions. Each Purchaser owned less
         than 1,600,000 shares of Hypercom's common stock immediately prior to
         the date hereof.

         6.       HYPERCOM'S COVENANT. Hypercom covenants that, it shall, at its
sole expense, upon the Purchasers' written request, use commercially reasonable
efforts to cause the Shares to be listed for trading on the New York Stock
Exchange, or if Hypercom's common stock ceases to be traded on the New York
Stock Exchange, on such other national securities exchange, national market
system or over-the-counter market on which Hypercom's common stock is listed or
quoted for trading.

         7.       MISCELLANEOUS.

                  a.       Certain Expenses. Subject to the registration rights
         provisions of the Series B Warrants, Hypercom shall pay all stamp or
         issuance taxes (other than stock transfer taxes) that may be imposed in
         respect of, the issuance, sale and delivery of the Shares to the
         Purchasers.

                                       5
<PAGE>   7
                  b.       Enforcement Costs. If any party to this Agreement
         seeks to enforce its rights hereunder by legal proceedings or
         otherwise, then the non-prevailing party shall pay all reasonable costs
         and expenses incurred by the prevailing party, including without
         limitation, all reasonable attorneys' fees. The term "prevailing party"
         shall mean that party whose position is substantially upheld in a final
         judgment rendered in such litigation or in a final arbitration award,
         or if the final judgment or arbitration award is appealed, that party
         whose final position is substantially upheld by the decision of the
         final appellate body.

                  c.       Nonwaiver; Cumulative Remedies. No course of dealing
         or any delay or failure to exercise any right hereunder on the part of
         any party hereto shall operate as a waiver of such right or otherwise
         prejudice the rights, powers or remedies of such party. No single or
         partial waiver by a party hereto of any provision of this Agreement or
         any breach or default hereunder or of any other provision, breach,
         default right or remedy or the same provision, breach, default, right
         or remedy on a future occasion. The rights and remedies provided in
         this Agreement are cumulative and are in addition to all rights and
         remedies which any party may have in law or in equity or by statute or
         otherwise.

                  d.       Notices. Any notice, demand or delivery to be made
         pursuant to this Agreement shall be deemed delivered and received (i)
         when personally delivered, (ii) on the third business day following the
         day when deposited in the U.S. mail, postage prepaid, certified or
         registered mail, return receipt requested, addressed as set forth below
         or (iii) on the first business day after proper and timely deposit for
         next day delivery, charges prepaid, with a nationally recognized
         delivery service to the location of the recipient, to such party at the
         address set forth below. Each Purchaser's address shall be its last
         known address appearing on the books of Hypercom maintained for such
         purpose. Hypercom's address shall be its principal executive office.
         Any Purchaser and Hypercom may designate a different address by notice
         to the other pursuant to this Subsection 7d.

                  e.       Successors and Assigns. This Agreement shall be
         binding upon, Hypercom and any person succeeding Hypercom, by merger,
         consolidation or acquisition of all or substantially all of Hypercom's
         assets, and all of the obligations of Hypercom

                                       6
<PAGE>   8
         with respect to the Shares and all of the covenants and agreements of
         Hypercom shall inure to the benefit of the Purchasers and their
         respective successors and assigns.

                  f.       Severability.

                           (i)      If, in any action before any court or agency
                  legally empowered to enforce any term of this Agreement, any
                  term is found to be unenforceable, then such term shall be
                  deemed modified to the extent necessary to make it enforceable
                  by such court or agency.

                           (ii)     If any term of this Agreement is not curable
                  as set forth in subsection (i) above, the unenforceability of
                  such term shall not effect the other provisions of this
                  Agreement, and this Agreement shall be construed as if such
                  unenforceable term had never been contained herein.

                  g.       Survival of Representations and Warranties. The
         representations and warranties of Hypercom and the Purchasers in this
         Agreement shall survive the execution and delivery of this Agreement
         and the consummation of the transactions contemplated hereby,
         notwithstanding any investigation by the Purchasers or their agents.

                  h.       Amendment. This Agreement may not be modified or
         amended except by written agreement of Hypercom and the Purchasers.

                  i.       Headings. The headings of the Sections and
         Subsections of this Agreement are for the convenience of reference only
         and shall not, for any purpose, be deemed a part of this Agreement.

                  j.       Governing Law. This Agreement shall be governed by,
         and construed in accordance with the laws of the State of Delaware,
         without regard to conflict of law principles.

              [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

                                       7
<PAGE>   9
         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by its duly authorized officer as of July   , 2001.

HYPERCOM CORPORATION                      NORTON FAMILY LIVING TRUST
                                          UTD 2-4-91 by its Trustee

/s/ Jonathon E. Killmer
------------------------------------
Jonathon E. Killmer                       By: /s/ John P. Norton
Executive Vice President                     ---------------------------------
                                          Name: John P. Norton
                                               -------------------------------

NORTON FAMILY LIVING TRUST                JR NORTON VENTURES LIMITED PARTNERSHIP
UTD 2-15-96 by its Trustee                by its General Partner

By: /s/ John R. Norton III                By: /s/ John R. Norton III
   ---------------------------------         ---------------------------------
Name: John R. Norton III                  Name:  John R. Norton III
     -------------------------------           -------------------------------

STEVENSON FAMILY LIVING TRUST
UTD 7/1/97 by its Trustee

By: /s/ Roger L. Stevenson                 /s/ Michael R. Norton
   ---------------------------------      ------------------------------------
Name: Roger L. Stevenson                  MICHAEL R. NORTON
     -------------------------------

/s/ Matthew A. Diethelm                    /s/ Daniel D. Diethelm
------------------------------------      ------------------------------------
MATTHEW A. DIETHELM                       DANIEL D. DIETHELM

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