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EXHIBIT 4.1

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE EXERCISEABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (II) UNLESS SOLD PURSUANT TO RULE 144
UNDER SAID ACT OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED TO AN “ACCREDITED INVESTOR” (AS SUCH
TERM IS DEFINED IN THE RULES AND REGULATIONS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED) IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

HYPERCOM CORPORATION

WARRANT TO PURCHASE COMMON STOCK

Warrant No.: WC-1

Number of Shares of Common Stock: 10,544,000

Date of Issuance: April 1, 2008 (“Issuance Date”)

     Hypercom Corporation, a Delaware corporation (the “Company”), hereby certifies that,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
FP HYPERCOM HOLDCO, LLC, the registered holder hereof or its permitted assigns (the
“Holder”), is entitled, subject to the terms set forth below, to purchase from the Company,
at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase
Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or
replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date, but
not after 11:59 p.m., New York Time, on the Expiration Date (as defined below), Ten Million Five
Hundred Forty-Four Thousand (10,544,000) fully paid and nonassessable shares of Common Stock (as
defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is one
of the Warrants to purchase Common Stock (the “Warrants”) issued pursuant to Section 3.2G
of that certain Credit Agreement dated as of February 13, 2008, by and among the Company and the
lenders (the “Lenders”) referred to therein (the “Loan Agreement”).

1. EXERCISE OF WARRANT.

     (a) Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be
exercised by the Holder on any day on or after the date hereof in whole or in part, by (i) delivery
of a written notice, in the form attached hereto as Exhibit A (the “Exercise
Notice”), of the Holder’s election to exercise this Warrant, (ii) delivery of this Warrant
(provided that the

 

 

Holder shall not be required to deliver the original Warrant in order to effect an exercise
hereunder if such Holder delivers a copy of this Warrant, together with a lost document affidavit
and other documentation required by Section 7(b) below), and (iii) (A) payment to the
Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant
Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash
or wire transfer of immediately available funds or (B) by notifying the Company that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). Execution
and delivery by the Holder of an Exercise Notice with respect to less than all of the Warrant
Shares shall be deemed to be a request by such Holder to cancel the original Warrant and issue a
new Warrant evidencing the right to purchase the remaining number of Warrant Shares, which request
shall be satisfied by the Company pursuant to Section 7(d) below. On or before the second
(2nd) Business Day following the date on which the Company has received each of the
Exercise Notice, the Warrant and the Aggregate Exercise Price (or notice of a Cashless Exercise)
(the “Exercise Delivery Documents”), the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the
Company’s transfer agent (the “Transfer Agent”). On or before the third (3rd)
Business Day following the date on which the Company has received all of the Exercise Delivery
Documents (the “Share Delivery Date”), the Company shall (X) provided that the Transfer
Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities
Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common
Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s
balance account with DTC through its Deposit Withdrawal Agent Commission system which balance
account shall be specified in the Exercise Notice, or (Y) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by
overnight courier to the address as specified in the Exercise Notice, a certificate, registered in
the Company’s share register in the name of the Holder or its designee, for the number of shares of
Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the
Exercise Delivery Documents or notification to the Company of a Cashless Exercise referred to in
Section 1(d), the Holder shall be deemed for all corporate purposes to have become the
holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this
Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the
number of Warrant Shares represented by this Warrant submitted for exercise is greater than the
number of Warrant Shares being acquired upon such exercise as specified in the Exercise Notice,
then the Company shall as soon as practicable and in no event later than five (5) Business Days
after such exercise and at its own expense, issue a new Warrant (in accordance with Section
7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately
prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which
this Warrant is exercised as specified in the Exercise Notice. No fractional shares of Common Stock
are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock
to be issued shall be rounded up to
 the nearest whole number. The Company shall pay any and all
taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant; provided, that the Company shall not be required to pay any tax
that may be payable in respect of any transfer involved in the issue and delivery of shares of
Common Stock in any name other than that of the Holder, in either case with respect to any income
tax due by the Holder with respect to such

 

 

shares of Common Stock
issued upon exercise of this Warrant.

     (b) Exercise Price. For purposes of this Warrant, “Exercise Price” means
$5.00 per Warrant Share, subject to adjustment as provided herein.

     (c) Company’s Failure to Timely Deliver Securities. If within three (3) trading days
after the Company’s receipt of the Exercise Delivery Documents the Company shall fail to issue and
deliver a certificate to the Holder and register such shares of Common Stock on the Company’s share
register or credit the Holder’s balance account with DTC for the number of shares of Common Stock
to which the Holder is entitled upon such Holder’s exercise hereunder, and if on or after such
third (3rd) trading day the Holder purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable
upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Business Days after the Holder’s request and in the
Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such
certificate (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its
obligation to deliver to the Holder a certificate or certificates representing such shares of
Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In
Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid
Price on the date of exercise.

     (d) Cashless Exercise. Notwithstanding anything contained herein to the contrary, the
Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of
making the cash payment otherwise contemplated to be made to the Company upon such exercise in
payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net
Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

	 	 	 	 	 
	 

	 	Net Number =
	 	 (A x B) - (A x C)

               B

For purposes of the foregoing formula:

     A = the total number of shares with respect to which this Warrant is then being exercised.

     B = the Closing Sale Price of the shares of Common Stock (as reported by Bloomberg) on the
date immediately preceding the date of the Exercise Notice.

     C = the Exercise Price then in effect for the applicable Warrant Shares at the time of such
exercise.

     (e) Disputes. In the case of a dispute as to the determination of the Exercise Price
or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder
the number of Warrant Shares that are not disputed and resolve such dispute in accordance with

 

 

Section 12.

2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the
number of Warrant Shares shall be adjusted from time to time as follows:

     (a) Adjustment upon Issuance of shares of Common Stock. If and whenever on or after
the Issuance Date the Company issues or sells, or in accordance with this Section 2 is
deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares
of Common Stock owned or held by or for the account of the Company, but excluding the issuance or
sale of any Excluded Shares (as defined in Section 2(d))), for a consideration per share
less than the Exercise Price in effect immediately prior to such issue or sale or deemed issuance
or sale (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive
Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the product of
(A) the Exercise Price in effect immediately prior to such Dilutive Issuance and (B) the quotient
determined by dividing (1) the sum of (I) the product derived by multiplying the Exercise Price in
effect immediately prior to such Dilutive Issuance and the number of Common Stock Deemed
Outstanding immediately prior to such Dilutive Issuance plus (II) the consideration, if any,
received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I)
the Exercise Price in effect immediately prior to such Dilutive Issuance by (II) the number of
Common Stock Deemed Outstanding immediately after such Dilutive Issuance. Upon each such
adjustment of the Exercise Price hereunder as a result of a Dilutive Issuance, the number of
Warrant Shares issuable upon exercise of this Warrant shall be adjusted to the number of shares of
Common Stock determined by multiplying the Exercise Price in effect immediately prior to such
Dilutive Issuance by the number of Warrant Shares acquirable upon exercise of this Warrant
immediately prior to such Dilutive Issuance and dividing the product thereof by the Exercise Price
resulting from such Dilutive Issuance. For purposes of determining the adjusted Exercise Price
under this Section 2(a), the following shall be applicable:

     (i) Issuance of Options. If the Company in any manner grants any Options and
the lowest price per share for which one share of Common Stock is issuable upon the exercise
of any such Option or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option is less than the Exercise Price then in effect,
then such share of Common Stock underlying such Option or Convertible Security shall be
deemed to be outstanding and to have been issued and sold by the Company at the time of the
granting or sale of such Option for such price per share. For purposes of this Section
2(a)(i), the “lowest price per share for which one share of Common Stock is issuable
upon exercise of such Options or upon conversion, exercise or exchange of such Convertible
Securities” shall be equal to the sum of the lowest amounts of consideration (if any)
received or receivable by the Company with respect to any one share of Common Stock upon the
granting or sale of the Option, upon exercise of the Option and upon conversion, exercise or
exchange of any Convertible Security issuable upon exercise of such Option. No further
adjustment of the Exercise Price or number of Warrant Shares shall be made upon the actual
issuance of such shares of Common Stock or of such Convertible Securities upon the exercise
of such Options or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such
Convertible Securities.

 

 

     (ii) Issuance of Convertible Securities. If the Company in any manner issues
or sells any Convertible Securities and the lowest price per share for which one share of
Common Stock is issuable upon the conversion, exercise or exchange of such Convertible
Securities is less than the Exercise Price then in effect, then such share of Common Stock
issuable upon the conversion, exercise or exchange of such Convertible Securities shall be
deemed to be outstanding and to have been issued and sold by the Company at the time of the
issuance or sale of such Convertible Securities for such price per share. For the purposes
of this Section 2(a)(ii), the “lowest price per share for which one share of Common
Stock is issuable upon the conversion, exercise or exchange of such Convertible Securities”
shall be equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to one share of Common Stock upon the issuance or
sale of the Convertible Security and upon conversion, exercise or exchange of such
Convertible Security. No further adjustment of the Exercise Price or number of Warrant
Shares shall be made upon the actual issuance of such shares of Common Stock upon
conversion, exercise or exchange of such Convertible Securities, and if any such issue or
sale of such Convertible Securities is made upon exercise of any Options for which
adjustment of this Warrant has been or is to be made pursuant to other provisions of this
Section 2(a), no further adjustment of the Exercise Price or number of Warrant
Shares shall be made by reason of such issue or sale.

     (iii) Change in Option Price or Rate of Conversion. If the purchase price
provided for in any Options, the additional consideration, if any, payable upon the issue,
conversion, exercise or exchange of any Convertible Securities, or the rate at which any
Options or Convertible Securities are convertible into or exercisable or exchangeable for
shares of Common Stock increases or decreases at any time, the Exercise Price and the number
of Warrant Shares issuable upon exercise of this Warrant in effect at the time of such
increase or decrease shall be adjusted to the Exercise Price and the number of Warrant
Shares which would have been in effect at such time had such Options or Convertible
Securities provided for such increased or decreased purchase price, additional consideration
or increased or decreased conversion rate, as the case may be, at the time initially
granted, issued or sold. For purposes of this Section 2(a)(iii), if the terms of
any Option or Convertible Security that was outstanding as of the date of issuance of this
Warrant are increased or decreased in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the shares of Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued
as of the date of such increase or decrease. Except as provided in this Section
2(a)(iii), no adjustment pursuant to this Section 2(a) shall be made if such
adjustment would result in an increase of the Exercise Price then in effect or a decrease in
the number of Warrant Shares; provided that in no event shall (A) the Exercise Price
be adjusted to an amount higher than the initial Exercise Price on the Issuance Date or (B)
the Warrant Shares be adjusted to an amount lower than the initial Warrant Shares on the
Issuance Date.

     (iv) Calculation of Consideration Received. In case any Option is issued in

 

 

connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is allocated to
such Options by the parties thereto, the Company will notify the Holders of its intended
allocation thereof (which shall be in accordance with generally accepted accounting
principles in the United States) and, in the absence of such notice, the Options will be
deemed to have been issued for a consideration of $0.01. If any shares of Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been issued or sold
for cash, the consideration received therefor will be deemed to be the net amount received
by the Company therefore. If any shares of Common Stock, Options or Convertible Securities
are issued or sold for a consideration other than cash, the amount of such consideration
received by the Company will be the fair value of such consideration, except where such
consideration consists of securities, in which case the amount of consideration received by
the Company will be the Closing Sale Price of such security on the date of receipt. If any
shares of Common Stock, Options or Convertible Securities are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is the surviving
entity, the amount of consideration therefor will be deemed to be the fair value of such
portion of the net assets and business of the non-surviving entity as is attributable to
such shares of Common Stock, Options or Convertible Securities, as the case may be. The
fair value of any consideration other than cash or securities will be determined in good
faith by the Board of Directors of the Company (the “Board”) within five (5) days
after the occurrence of an event requiring valuation (the “Valuation Event”). If
the Required Holders disagree with the determination of the Board and give written notice of
such disagreement to the Company within thirty (30) days after the occurrence of such
Valuation Event, the fair value of such consideration will be determined within ten (10)
Business Days after the tenth (10th) day following the Valuation Event by an
independent, reputable appraiser jointly selected by the Company and the Required Holders.
The determination of such appraiser shall be final and binding upon all parties absent
manifest error and the fees and expenses of such appraiser shall be borne by the Company.

     (v) Record Date. If the Company takes a record of the holders of shares of
Common Stock for the purpose of entitling them (A) to receive a dividend or other
distribution payable in shares of Common Stock, Options or in Convertible Securities or (B)
to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then
such record date will be deemed to be the date of the issue or sale of the shares of Common
Stock deemed to have been issued or sold upon the declaration of such dividend or the making
of such other distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

     (vi) Exchange Compliance. Following the Issuance Date, the Company agrees that
it will not issue or sell, or in accordance with this Section 2(a) take any action
constituting a deemed issuance or sale of, any shares of Common Stock (but for purposes of
this Section 2(a)(vi) including the Excluded Shares), if such issuance or sale (or
deemed issuance or sale) would cause an adjustment under this Section 2(a) that
would entitle the Holders of the Warrants to acquire from the Company, upon exercise of the
Warrants, Warrant Shares representing, in the aggregate, in excess of twenty percent (20%)
of the voting power outstanding or twenty percent (20%) of the number of shares

 

 

of Common Stock outstanding, in each case as of immediately prior to the Issuance Date,
unless the Company shall have first obtained shareholder approval of such issuance or sale
or deemed issuance or sale (and the related adjustment under this Section 2(a)) to
the extent required under the rules of the Principal Market.

     (b) Adjustment upon Subdivision or Combination of shares of Common Stock. If the
Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the Exercise Price in effect immediately prior to such subdivision will
be proportionately reduced and the number of Warrant Shares issuable upon exercise of this Warrant
will be proportionately increased. If the Company at any time on or after the Issuance Date
combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately
prior to such combination will be proportionately increased and the number of Warrant Shares
issuable upon exercise of this Warrant will be proportionately decreased. Any adjustment under this
Section 2(b) shall become effective at the close of business on the date the subdivision or
combination becomes effective.

     (c) Other Events. Anything herein to the contrary notwithstanding, no adjustment in
the Exercise Price shall be required unless such adjustment would require an increase or decrease
of at least one percent (1%) in such price; provided, however, that any adjustments
which by reason of this Section 2(c) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this Section 2
shall be made by the Company in good faith and shall be made to the nearest cent or to the nearest
one hundredth of a share, as applicable. No adjustment need be made for a change in the par value
of the Company’s Common Stock.

     (d) Excluded Shares. Anything in this Section 2 to the contrary
notwithstanding, the provisions of this Section 2 shall not apply to, and no adjustments to
the Exercise Price or number of Warrant Shares issuable upon exercise of this Warrant shall be made
in connection with, the grant, issuance or sale by the Company of Options or shares of Common
Stock, or the issuance or sale of shares of Common Stock upon the exercise of Options, which
Options and shares of Common Stock are granted, issued, and sold by the Company pursuant to, and in
accordance with terms of, (i) any equity incentive plans approved and adopted by the Board and in
effect on the Issuance Date, and (ii) any equity incentive plans approved and adopted by the Board
after the Issuance Date with the affirmative approval of each FP Director Nominee (as such term is
defined in the Registration Rights Agreement).

3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of
Common Stock, by way of return of capital or otherwise (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin
off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such
case:

     (a) the Exercise Price in effect immediately prior to the close of business on the

 

 

record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Distribution shall be reduced, effective as of the close of business on such record
date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the
numerator shall be the Closing Bid Price of the shares of Common Stock on the trading day
immediately preceding such record date minus the value of the Distribution (as determined in good
faith by the Board) applicable to one share of Common Stock, and (ii) the denominator shall be the
Closing Bid Price of the shares of Common Stock on the trading day immediately preceding such
record date; and

     (b) the number of Warrant Shares shall be increased to a number of shares equal to the number
of shares of Common Stock issuable upon exercise of this Warrant immediately prior to the close of
business on the record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the
immediately preceding paragraph (a); provided that in the event that the
Distribution is of shares of Common Stock (or common stock) (“Other Shares of Common
Stock”) of a company whose common shares are traded on a national securities exchange or a
national automated quotation system, then the Holder may elect to receive a warrant to purchase
Other Shares of Common Stock in lieu of any adjustment to the Exercise Price and number of Warrant
Shares, the terms of which shall be identical to those of this Warrant, except that such warrant
shall be exercisable for the number of Other Shares of Common Stock that would have been payable to
the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to
such record date and with an aggregate exercise price equal to the product of the amount by which
the exercise price of this Warrant would have been decreased with respect to the Distribution
pursuant to the terms of the immediately preceding paragraph (a) and the number of Warrant
Shares calculated in accordance with the first part of this paragraph (b).

4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

     (a) Purchase Rights. In addition to any adjustments pursuant to Section 2
above, if at any time the Company grants, issues or sells any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property pro rata to all or substantially
all of the record holders of any class of shares of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights,
upon the Holder’s election, the aggregate Purchase Rights, in lieu of any adjustments to which the
Holder is otherwise entitled under Section 2 above in respect to such Purchase Right which
the Holder could have acquired if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the
record holders of shares of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

     (b) Fundamental Transactions. The Company shall not enter into or be party to a
Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of
the Company under the Loan Agreement, this Warrant and the other Related Agreements (as defined in
the Loan Agreement) in accordance with the provisions of this Section (4)(b) pursuant to
written agreements, including agreements to deliver to each holder of Warrants in exchange

 

 

for such Warrants a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant, including, without limitation, an
adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of
such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental
Transaction, and reasonably satisfactory to the Required Holders; provided,
however, that if the Fundamental Transaction is a transaction wherein all of the holders of
all of the securities (including the holders of shares of Common Stock) of the Company receive only
cash in exchange for all such securities, then the Holder of this Warrant, upon consummation of
such Fundamental Transaction, shall receive an amount of cash equal to the amount which the Holder
would have been entitled to receive had this Warrant been exercised immediately prior to such
Fundamental Transaction (and, upon receipt by the Holder of such cash, this Warrant shall be deemed
canceled). Upon the occurrence of any Fundamental Transaction, the Successor Entity, if other than
the Company, shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein, until such time as any successor warrant is
delivered. In addition to and not in substitution for any other rights hereunder, prior to the
consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are
entitled to receive securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that
the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time
after the consummation of the Fundamental Transaction but prior to the Expiration Date, in lieu of
the shares of the Common Stock (or other securities, cash, assets or other property) purchasable
upon the exercise of this Warrant prior to such Fundamental Transaction, such shares of stock,
securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon the happening of
such Fundamental Transaction had this Warrant been exercised immediately prior to such Fundamental
Transaction. Provision made pursuant to the preceding sentence shall be in a form and substance
reasonably satisfactory to the Required Holders. The provisions of this Section shall apply
similarly and equally to successive Fundamental Transactions and Corporate Events and shall be
applied without regard to any limitations on the exercise of this Warrant.

5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by
amendment of its charter, bylaws or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the Holder. Without limiting the generality of
the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of Common Stock

 

 

upon the exercise of this Warrant, and (iii) shall, so long as any of the Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of the Warrants, one hundred ten
percent (110%) of the number of shares of Common Stock as shall from time to time be necessary to
effect the exercise of the Warrants then outstanding (without regard to any limitations on
exercise).

6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided
herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be
entitled to vote or receive dividends or be deemed the holder of share capital of the Company for
any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder,
solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a shareholder
of the Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to
receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant
shall be construed as imposing any liabilities on the Holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company.

7. REISSUANCE OF WARRANTS.

     (a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall
surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon
the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being
transferred by the Holder and, if less than the total number of Warrant Shares then underlying this
Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder
representing the right to purchase the number of Warrant Shares not being transferred.

     (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form and, in the case of mutilation, upon surrender and
cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in
accordance with Section 7(d)) representing the right to purchase the Warrant Shares then
underlying this Warrant.

     (c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the
surrender hereof by the Holder at the principal office of the Company, for a new Warrant or
Warrants (in accordance with Section 7(d)) representing in the aggregate the right to
purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will
represent the right to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no Warrants for fractional shares of
Common Stock shall be issued.

 

 

     (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant
pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this
Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase
the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued
pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the
Holder which, when added to the number of shares of Common Stock underlying the other new Warrants
issued in connection with such issuance, does not exceed the number of Warrant Shares then
underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new
Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions
as this Warrant.

8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given as follows:

If to the Company:

Hypercom Corporation

2851 West Kathleen Road

Phoenix, Arizona 85053

Attention: General Counsel

Facsimile: (602) 504-4623

with a copy to:

DLA Piper US LLP

2415 East Camelback Road, Suite 700

Phoenix, Arizona 85016-4245

Attention: Steven D. Pidgeon, Esq.

Facsimile: (480) 606-5524

If to the Holder:

To its address and facsimile number set forth on the Schedule of Lenders attached to the
Registration Rights Agreement, with copies to such Holders representatives as set forth on
the Schedule of Lenders,

or to such other address and/or facsimile number and/or to the attention of such other Person as
the recipient party has specified by written notice given to each other party five (5) days prior
to the effectiveness of such change. The Company shall provide the Holder with prompt written
notice of all actions taken pursuant to this Warrant, including in reasonable detail a description
of such action and the reason therefore. Without limiting the generality of the foregoing, the
Company will give written notice to the Holder (i) promptly upon any adjustment of the Exercise
Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment, and
(ii) at least ten (10) days prior to the date on which the Company closes its books or takes a
record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B)

 

 

with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C)
for determining rights to vote with respect to any Fundamental Transaction, dissolution or
liquidation, provided in each case that such information shall be made known to the public prior to
or in conjunction with such notice being provided to the Holder.

9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this
Warrant may be amended and the Company may take any action herein prohibited, or omit to perform
any act herein required to be performed by it, only if the Company has obtained the written consent
of the Required Holders; provided that no such action may increase the exercise price of
any Warrant or decrease the number of shares or class of stock obtainable upon exercise of any
Warrant without the written consent of the Holder. No such amendment shall be effective to the
extent that it applies to less than all of the holders of the Warrants then outstanding.

10. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in
accordance with, and all questions concerning the construction, validity, interpretation and
performance of this Warrant shall be governed by, the internal laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Delaware or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of Delaware.

11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the
Company and all the Lenders and shall not be construed against any person as the drafter hereof.
The headings of this Warrant are for convenience of reference and shall not form part of, or affect
the interpretation of, this Warrant.

12. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise
Price or the arithmetic calculation of the number of Warrant Shares issuable upon exercise of this
Warrant, the Company shall submit the disputed determinations or arithmetic calculations via
facsimile within two (2) Business Days of receipt of the adjustment notice giving rise to such
dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon
such determination or calculation of the Exercise Price or the Warrant Shares within three (3)
Business Days of such disputed determination or arithmetic calculation being submitted to the
Holder, then the Company shall, within two (2) Business Days submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment bank selected by the
Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares
to the Company’s independent, outside accountant. The Company, at the Company’s expense, shall use
reasonable best efforts to cause at its expense the investment bank or the accountant, as the case
may be, to perform the determinations or calculations and notify the Company and the Holder of the
results no later than ten (10) Business Days from the time it receives the disputed determinations
or calculations. Such investment bank’s or accountant’s determination or calculation, as the case
may be, shall be binding upon all parties absent manifest error.

13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in
this Warrant with respect to the Company’s failure to comply with the

 

 

terms of this Warrant shall be cumulative and in addition to all other remedies available under the
Loan Agreement, this Warrant and the other Related Agreements, at law or in equity (including a
decree of specific performance and/or other injunctive relief), and nothing herein shall limit the
right of the Holder to pursue actual damages for any failure by the Company to comply with the
terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be
inadequate. The Company therefore agrees that, in the event of any such breach or threatened
breach, the holder of this Warrant shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required.

14. TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without
the consent of the Company, except that if such sale, transfer or assignment is not to an Eligible
Assignee (as defined in the Loan Agreement), then the consent of the Company shall be required.

15. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the
following meanings:

     (a) “Bloomberg” means Bloomberg Financial Markets.

     (b) “Business Day” means any day other than Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law to remain closed.

     (c) “Closing Bid Price” and “Closing Sale Price” means, for any security as of
any date, the last closing bid price and last closing trade price, respectively, for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on
an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or last trade price, respectively, of such security prior
to 4:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the
principal securities exchange or trading market for such security, the last closing bid price or
last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not
apply, the last closing bid price or last trade price, respectively, of such security in the
over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such
security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any
market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the
National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be
calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price
or the Closing Sale Price, as the case may be, of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder
are unable to agree upon the fair market value of such security, then such dispute shall be
resolved pursuant to Section 12. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the
applicable calculation period.

 

 

     (d) “Common Stock” means (i) the Company’s shares of Common Stock, par value $0.001
per share, and (ii) any share capital into which such Common Stock shall have been changed or any
share capital resulting from a reclassification of such Common Stock.

     (e) “Common Stock Deemed Outstanding” means, at any given time, the number of shares
of Common Stock outstanding immediately prior to such issue calculated on a fully-diluted basis, as
if all Convertible Securities had been fully converted into shares of Common Stock immediately
prior to such issuance and any outstanding warrants, options or other rights for the purchase of
either shares of Common Stock or Convertible Securities had been fully exercised immediately prior
to such issuance (and the resulting securities fully converted into shares of Common Stock, if so
convertible) as of such date, but excluding any Common Stock owned or held by or for the account of
the Company or issuable upon conversion or exercise, as applicable, of the Warrants.

     (f) “Convertible Securities” means any stock or securities (other than Options)
directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock.

     (g) “Expiration Date” means the date sixty (60) months after the Issuance Date or, if
such date falls on a day other than a Business Day or on which trading does not take place on the
Principal Market (a “Holiday”), the next date that is not a Holiday.

     (h) “Fundamental Transaction” means the occurrence, in one or more related
transactions, of any of the following events: (i) the Company, directly or indirectly, consolidates
or merges with or into (whether or not the Company is the surviving corporation) another Person, or
(ii) the Company, directly or indirectly, sells, assigns, transfers, conveys or otherwise disposes
of all or substantially all of the properties or assets of the Company to another Person, or (iii)
any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the
Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of fifty percent (50%) or more of the aggregate ordinary
voting power represented by issued and outstanding Common Stock, or (iv) the Company reorganizes,
recapitalizes or reclassifies its Common Stock.

     (i) “Options” means any rights, warrants or options to subscribe for or purchase
shares of Common Stock or Convertible Securities.

     (j) “Parent Entity” of a Person means an entity that, directly or indirectly, controls
the applicable Person.

     (k) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization, any other entity and a government
or any department or agency thereof.

     (l) “Principal Market” means The New York Stock Exchange, Inc.

     (m) “Registration Rights Agreement” means that certain registration rights agreement

 

 

by and among the Company and the Lenders.

     (n) “Required Holders” means the holders of the Warrants representing at least a
majority of shares of Common Stock underlying the Warrants then outstanding.

     (o) “Successor Entity” means the Person (or, if so elected by the Required Holders,
the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person
(or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental
Transaction shall have been entered into.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly
executed as of the Issuance Date set out above.

	 	 	 	 	 
	 	HYPERCOM CORPORATION

 	 
	 	By:  	/s/ Philippe Tartavull
 	 
	 	 	Name:  	Philippe Tartavull 	 
	 	 	Title:  	CEO and Presidentexv4w2

 

EXHIBIT 4.2

REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of April 1, 2008, by and
among Hypercom Corporation, a Delaware corporation (the “Company”), and the undersigned
lenders (each, a “Lender” and, collectively, the “Lenders”).

     WHEREAS:

     A. In connection with that certain Credit Agreement dated as of February 13, 2008 (the
“Loan Agreement”), by and among the Company and Francisco Partners II, L.P., a Delaware
limited partnership (“FP”), the Company has agreed, upon the terms and subject to the
conditions set forth in the Loan Agreement, to issue to each Lender Warrants to Purchase Common
Stock (the “Warrants”), which will be exercisable to purchase shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”; as exercised, collectively,
the “Warrant Shares”).

     B. To induce the Lenders to execute and deliver the Loan Agreement, the Company has agreed to
provide certain registration rights to the Lenders whereby the Registrable Securities (as defined
below) would be registered under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the “1933 Act”),
and applicable state securities laws.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and each of the Lenders hereby agree as follows:

     1. Definitions.

     Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings set forth in the Loan Agreement. As used in this Agreement, the following terms shall
have the following meanings:

          (a) “Business Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in The City of New York are authorized or required by law to remain closed.

          (b) “Closing Date” shall have the meaning set forth in the Loan Agreement.

          (c) “Effective Date” means the date the Registration Statement has been declared
effective by the SEC.

          (d) “Effectiveness Deadline” means the date which is one hundred twenty (120) days
after the Closing Date.

          (e) “Filing Deadline” means the date which is forty-five (45) days after the Closing
Date.

 

 

          (f) “Investor” means a Lender or any transferee or assignee thereof to whom a Lender
assigns its rights under this Agreement and who agrees to become bound by the provisions of this
Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement and who agrees to become bound by
the provisions of this Agreement in accordance with Section 9.

          (g) “Other Shares” means at any time those shares of Common Stock that do not
constitute Primary Shares or Registrable Shares hereunder.

          (h) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government or any department
or agency thereof.

          (i) “Primary Shares” means at any time authorized but unissued shares of Common Stock.

          (j) “register,” “registered,” and “registration” refer to a
registration effected by preparing and filing one or more Registration Statements (as defined
below) in compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of
effectiveness of such Registration Statement(s) by the SEC.

          (k) “Registrable Securities” means (i) the Warrant Shares issued or issuable upon
exercise of the Warrants and (ii) any securities of any Person issued or issuable with respect to
the Warrant Shares or the Warrants as a result of any share split, share dividend,
recapitalization, exchange or similar event or otherwise, without regard to any limitations on
exercises of the Warrants.

          (l) “Registration Statement” means a registration statement or registration statements
of the Company filed under the 1933 Act pursuant to this Agreement covering Registrable Securities.

          (m) “Required Holders” means the holders of the Warrants representing at least a
majority of shares of Common Stock underlying the Warrants then outstanding.

          (n) “Required Registration Amount” means one hundred percent (100%) of the number of
Warrant Shares and/or other securities issued or issuable pursuant to the Warrants as of the
trading day immediately preceding the applicable date of determination, without regard to any
limitations on exercises of the Warrants. For the avoidance of doubt, if the Registration
Statement was declared effective on the date of this Agreement, the Required Registration Amount
would be 10,544,000 shares of Common Stock.

          (o) “Rule 415” means Rule 415 under the 1933 Act or any successor rule providing for
offering securities on a continuous or delayed basis.

          (p) “SEC” means the United States Securities and Exchange Commission.

          (q) “Selling Securityholder Notice and Questionnaire” means a written notice in the
form attached hereto as Exhibit A, delivered to the Company by an Investor.

 

 

          (r) “Underwritten Offering” means a registered offering in which securities of the
Company are sold to an underwriter for reoffering to the public.

     2. Registration.

          (a) Mandatory Registration. The Company shall prepare, and, as soon as reasonably
practicable but in no event later than the Filing Deadline, file with the SEC a Registration
Statement on Form S-3 covering the resale of all of the Registrable Securities for an offering to
be made on a continuous basis pursuant to Rule 415 (each Registration Statement filed under this
Agreement other than pursuant to Section 2(g) shall be a “Shelf Registration
Statement”). The Shelf Registration Statement shall contain, in substantially the form
provided by the Investors and Legal Counsel (as defined below), such information regarding the
Investors and their possible methods of distribution of the Registrable Securities as the Investors
and Legal Counsel may reasonably request to have included therein, including, without limitation,
information relating to the “Selling Shareholders” and “Plan of Distribution”
sections. The Company shall use its commercially reasonable best efforts to have the Shelf
Registration Statement declared effective by the SEC as soon as reasonably practicable, but in no
event later than the Effectiveness Deadline.

          (b) Allocation of Registrable Securities. The initial number of Registrable
Securities included in the Shelf Registration Statement and any increase in the number of
Registrable Securities included in any Shelf Registration Statement shall be allocated pro rata
among the Investors based on the number of Registrable Securities held by each Investor at the time
the Shelf Registration Statement covering such initial number of Registrable Securities or increase
thereof is declared effective by the SEC. In the event that an Investor sells or otherwise
transfers any of such Investor’s Registrable Securities, each transferee shall be allocated a pro
rata portion of the then remaining number of Registrable Securities included in such Shelf
Registration Statement for such transferor. Any shares of Common Stock included in any Shelf
Registration Statement and which remain allocated to any Person which ceases to hold any
Registrable Securities covered by such Shelf Registration Statement shall be allocated to the
remaining Investors, pro rata based on the number of Registrable Securities then held by such
Investors which are covered by such Shelf Registration Statement. In no event shall the Company
include any securities other than Registrable Securities on any Shelf Registration Statement filed
under Section 2(a) or Section 2(e) of this Agreement without the prior written
consent of the Required Holders.

          (c) Legal Counsel. Subject to Section 5 hereof, the Required Holders shall
have the right to select one legal counsel to review and oversee any registration pursuant to this
Section 2 hereof on behalf of the Investors (“Legal Counsel”), which shall be
O’Melveny & Myers LLP or such other counsel as thereafter designated by the Required Holders. The
Company and Legal Counsel shall reasonably cooperate with each other in regards to the performance
of the Company’s obligations under this Agreement.

          (d) Ineligibility for Form S-3. In the event that Form S-3 is not available for the
registration of the resale of Registrable Securities hereunder, the Company shall (i) register the
resale of the Registrable Securities on another appropriate form reasonably acceptable to the
Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as

3

 

such form is available, provided that the Company shall maintain the effectiveness of the
Shelf Registration Statement then in effect until such time as a Registration Statement on Form S-3
covering the Registrable Securities has been declared effective by the SEC.

          (e) Sufficient Number of Shares Registered. In the event the number of shares or type
of securities available under the Shelf Registration Statement filed pursuant to
Section 2(a) is insufficient to cover all of the Registrable Securities required to be
covered by such Shelf Registration Statement or an Investor’s allocated portion of the Registrable
Securities pursuant to Section 2(b), the Company shall amend the Shelf Registration
Statement, or file a new Shelf Registration Statement (on the short form available therefor, if
applicable), or both, so as to cover, in the aggregate, at least the Required Registration Amount
as of the trading day immediately preceding the date of the filing of such amendment or new Shelf
Registration Statement, in each case, as soon as reasonably practicable, but in any event not later
than fifteen (15) days after the necessity therefor arises. To the extent that such Registrable
Securities are not deemed to be registered pursuant to Rule 416 under the 1933 Act, the Company
shall use its commercially reasonable best efforts to cause such amendment and/or new Shelf
Registration Statement to become effective as soon as practicable following the filing thereof.
For purposes of the foregoing provision, the number of shares available under the Shelf
Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities” if
at any time the number of shares of Common Stock and, if applicable, other securities available for
resale under the Shelf Registration Statement is less than the Required Registration Amount as of
such time. The determination of the amount set forth in the foregoing sentence shall be made
without regard to any limitations on the exercise of the Warrants and such calculation shall assume
that the Warrants are then exercisable for shares of Common Stock and, if applicable, other
securities at the then prevailing Exercise Price (as defined in the Warrants).

          (f) Effect of Failure to File and Obtain and Maintain Effectiveness of Registration
Statement. If (i) the Shelf Registration Statement covering all of the Registrable Securities
required to be covered thereby and required to be filed by the Company pursuant to
Section 2(a) of this Agreement is (A) not filed with the SEC on or before the Filing
Deadline (a “Filing Failure”) or (B) not declared effective by the SEC on or before the
Effectiveness Deadline (an “Effectiveness Failure”) or (ii) on any day after the Effective
Date of such Shelf Registration Statement and prior to the end of the Registration Period sales of
all of the Registrable Securities required to be included on the Shelf Registration Statements
cannot be made (other than during an Allowable Grace Period (as defined in Section 3(q))
pursuant to such Shelf Registration Statements (including, without limitation, because of a failure
to keep such Shelf Registration Statements effective during the Registration Period or to disclose
such information as is necessary for sales to be made pursuant to such Shelf Registration Statement
or to register a sufficient number or type of Registrable Securities or to name as a selling
securityholder in such Shelf Registration Statements and/or related prospectuses any Investor who
provides a Selling Securityholder Notice and Questionnaire) (a “Maintenance Failure”) then,
as partial relief for the damages to any Investor by reason of any such delay in or reduction of
its ability to sell all the Registrable Securities (which remedy shall not be exclusive of any
other remedies available at law or in equity), the Company shall pay pro rata to each holder of
Registrable Securities relating to such Shelf Registration Statement, as liquidated damages and not
as a penalty, additional interest at a rate equal to one percent (1.0%) on the principal amount
outstanding under the Loan Agreement, with such interest accruing on each of the following

4

 

dates: (i) the day of a Filing Failure and on every thirtieth (30th) day (pro rated
for periods totaling less than thirty (30) days) thereafter until such Filing Failure is cured;
(ii) the day of an Effectiveness Failure and on every thirtieth (30th) day (pro rated
for periods totaling less than thirty (30) days) thereafter until such Effectiveness Failure is
cured; (iii) the initial day of a Maintenance Failure and on every thirtieth (30th) day
(pro rated for periods totaling less than thirty (30) days) thereafter until such Maintenance
Failure is cured; provided, however, that the maximum aggregate additional interest
payable to an Investor under this Agreement shall be ten percent (10%) of the principal amount
outstanding under the Loan Agreement (the “Cap”). The additional interest described in the
preceding sentence is the amount payable if the Filing Failure, Effectiveness Failure or
Maintenance Failure relates to all Registrable Securities; provided, however, that
if less than all of the Registrable Securities are so affected, then the amount payable (but not
the cap) shall be prorated and paid to the holders of the affected Registrable Securities;
provided, further, that if and for so long as there is an Effectiveness Failure and
a concurrent Maintenance Failure with respect to a particular affected Registrable Security, then
the Company shall only be required to pay additional interest in respect of the Effectiveness
Failure with respect to such Registrable Security. The payments to which a holder shall be
entitled pursuant to this Section 2(f) are referred to herein as “Additional
Interest”. Additional Interest shall be paid within five (5) Business Days of the day of the
Filing Failure, Effectiveness Failure or the initial day of Maintenance Failure, as applicable, and
thereafter on the earlier of (I) the last day of the calendar month during which such Additional
Interest is accrued and (II) the third Business Day after the event or failure giving rise to the
Additional Interest is cured. In the event the Company fails to pay Additional Interest in a
timely manner, such Additional Interest shall bear interest at the rate of one and one-half percent
(1.5%) per month (prorated for partial months) until paid in full. In the event that there is no
principal amount outstanding under the Loan Agreement at the time of a Filing Failure,
Effectiveness Failure or the initial day of a Maintenance Failure, the phrase “additional interest
at a rate equal to one percent (1.0%) on the principal amount outstanding under the Loan Agreement”
in the first sentence of this Section 2(f) shall be replaced with “additional interest
equal to $200,000” and the Cap shall be $2,000,000.

          (g) Piggyback Registration. If the Company at any time proposes in contemplation of
an Underwritten Offering to register any of its Common Stock (either for its own account or for the
account of other security holders) under the 1933 Act (other than on Form S-4 or Form S-8
promulgated under the 1933 Act (or any successor forms thereto) and other than pursuant to this
Agreement), it shall give written notice to the Investors of its intention to so register such
shares of Common Stock at least thirty (30) days before the initial filing of the registration
statement related thereto and, upon the request, delivered to the Company within twenty (20) days
after delivery of any such notice by the Company, of the Investors to include in such registration
Registrable Shares (which request shall specify the number of Registrable Shares proposed to be
included in such registration), the Company shall use its commercially reasonable best efforts to
cause all such Registrable Shares to be included in such registration on the same terms and
conditions as the securities otherwise being sold in such registration; provided,
however, that if the managing underwriter, if any, advises the Company that the inclusion
of all Registrable Shares requested to be included in such registration would materially and
adversely interfere with the successful marketing (including pricing) of the shares of Common Stock
proposed to be registered by the Company, then the number of Primary Shares, Registrable Shares and
Other Shares proposed to be included in such registration shall be included in the following order:

5

 

          (i) if such registration is to be an underwritten primary registration on behalf of the
Company:

          (A) first, the Primary Shares;

          (B) second, the Registrable Shares held by the Investors (or, if necessary,
such Registrable Shares pro rata among the Investors holding such Registrable Shares
based upon the number of Registrable Shares that are held by each Investor and
requested to be registered by such Investor); and

          (C) third, the Other Shares or other securities of the Company; or

          (ii) if such registration is to be an underwritten secondary registration on behalf of
holders of securities (other than Registrable Shares) of the Company:

          (A) first, the Registrable Shares held by the Investors (or, if necessary, such
Registrable Shares pro rata among the Investors holding such Registrable Shares
based upon the number of Registrable Shares that are held by each Investor and
requested to be registered by such Investor); and

          (B) second, the Other Shares;

provided, further that if, at any time after giving written notice of its intention
to register any securities and prior to the effective date of the registration statement filed in
connection with such registration, the Company shall determine for any reason either not to
register or to delay registration of such securities, the Company may, at its election, give
written notice of such determination to each holder of Registrable Shares and, thereupon (i) in the
case of a determination not to register, shall be relieved of its obligation to register any
Registrable Shares in connection with such registration (but not from its obligation to pay the
expenses of such registration), and (ii) in the case of a determination to delay registering, shall
be permitted to delay registering any Registrable Shares, for the same period as the delay in
registering such shares of Common Stock.

     The number of requests permitted by the Investors pursuant to this Section 2(g) shall
be unlimited.

     3. Related Obligations.

     At such time as the Company is obligated to file a Registration Statement with the SEC
pursuant to Section 2(a), 2(e), 2(f) or 2(g) the Company will use
its commercially reasonable best efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company
shall have the following obligations:

          (a) The Company shall submit to the SEC, within two (2) Business Days after the Company learns
that no review of any Shelf Registration Statement will be made by the staff of the SEC or that the
staff has no further comments on such Shelf Registration Statement, as the

6

 

case may be, a request for acceleration of effectiveness of such Shelf Registration Statement
to a time and date not later than forty-eight (48) hours after the submission of such request. The
Company shall use its commercially reasonable best efforts to keep each Shelf Registration
Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which
the Investors may sell all of the Registrable Securities covered by such Shelf Registration
Statement without restriction pursuant to Rule 144(k) (or any successor thereto) promulgated under
the 1933 Act, (ii) the date as of which all Registrable Securities covered by the Shelf
Registration Statement have been publicly sold by the Investors included therein, or (iii) the date
which is four years after the Closing Date (the “Registration Period”). The Company shall
ensure that each Shelf Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein, or necessary to make the statements therein
(in the case of prospectuses, in the light of the circumstances in which they were made) not
misleading.

          (b) The Company shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to each Shelf Registration Statement and the prospectus used in
connection with such Shelf Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep such Shelf Registration Statement
effective at all times during the Registration Period, and, during such period, comply with the
provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods of disposition by
the seller or sellers thereof as set forth in such Registration Statement. In the case of
amendments and supplements to any Shelf Registration Statement which are required to be filed
pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the
Company filing a report on Form 10-Q, Form 10-K or any analogous report or other report under the
Securities Exchange Act of 1934, as amended (the “1934 Act”), the Company shall have
incorporated such report by reference into such Shelf Registration Statement, if applicable, or
shall file such amendments or supplements with the SEC on the same day on which the 1934 Act report
is filed which created the requirement for the Company to amend or supplement such Shelf
Registration Statement.

          (c) The Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration
Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments
and supplements to all Registration Statements (except for Annual Reports on Form 10-K, and
Quarterly Reports on Form 10-Q and any similar or successor reports) within a reasonable number of
days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment
or supplement thereto in a form to which Legal Counsel reasonably objects.

          (d) Upon an Investor’s reasonable request, the Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement in PDF format via electronic
mail, without charge, (i) promptly after the same is prepared and filed with the SEC, at least one
(1) copy of such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, all exhibits and each
preliminary prospectus, (ii) upon the effectiveness of any Registration

7

 

Statement, one (1) copy of the prospectus included in such Registration Statement and all
amendments and supplements thereto and (iii) such other documents, including copies of any
preliminary or final prospectus and copies of any correspondence from the SEC or the staff of the
SEC to the Company or its representatives relating to any Registration Statement; provided,
however, that FP and its nominees (including FP Hypercom Holdco, LLC, a Delaware limited
liability company) (together with FP, “FP Investor”) shall be deemed to have made a
permanent request so the Company shall deliver to FP Investor the documents described in this
Section 3(d) without further action on the part of FP Investor.

          (e) The Company shall use its commercially reasonable best efforts to (i) register and
qualify, unless an exemption from registration and qualification applies, the resale by Investors
of the Registrable Securities covered by a Registration Statement under such other securities or
“blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in
those jurisdictions, such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the effectiveness thereof;
provided that such effectiveness of the Shelf Registration Statement shall only be required
to be maintained during the Registration Period and the effectiveness of any other Registration
Statement hereunder shall only be required to be maintained during the distribution of securities
thereon, (iii) take such other actions with respect to the Shelf Registration Statement as may be
reasonably necessary to maintain such registrations and qualifications in effect at all times
during the Registration Period, and (iv) take all other actions reasonably necessary or advisable
to qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required
to qualify but for this Section 3(e), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The
Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of
the receipt by the Company of any notification with respect to the suspension of the registration
or qualification of any of the Registrable Securities for sale under the securities or “blue sky”
laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or
threatening of any proceeding for such purpose.

          (f) The Company shall notify Legal Counsel and each Investor in writing of the happening of
any event, as promptly as practicable after becoming aware of such event, as a result of which the
prospectus included in a Registration Statement, as then in effect, includes an untrue statement of
a material fact or omission to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading (provided that in no event shall such notice contain any material, nonpublic
information), and, subject to Section 3(q), promptly prepare a supplement or amendment to
such Registration Statement to correct such untrue statement or omission, and, upon request,
deliver one copy of such supplement or amendment to Legal Counsel and each Investor in PDF format
via electronic mail; provided, however, that FP Investor shall be deemed to have
made a permanent request so the Company shall deliver to FP Investor the documents described in
this Section 3(f) without further action on the part of FP Investor. The Company shall
also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment to a Registration Statement has been filed, and
when a Registration Statement or any post-effective amendment has become effective

8

 

(notification of such effectiveness shall be delivered to Legal Counsel and each Investor by
facsimile within one Business Day of such effectiveness), (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate.

          (g) The Company shall use its commercially reasonable best efforts to prevent the issuance of
any stop order or other suspension of effectiveness of a Registration Statement, or the suspension
of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to use reasonable efforts to obtain the withdrawal of such order
or suspension at the earliest possible moment and to notify Legal Counsel and each Investor who
holds Registrable Securities being sold of the issuance of such order and the resolution thereof or
its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

          (h) The Company shall make available for inspection by (i) any Investor, (ii) Legal Counsel
and (iii) one firm of accountants or other agents retained by the Investors (collectively, the
“Inspectors”), all pertinent financial and other records, and pertinent corporate documents
and properties of the Company (collectively, the “Records”), as shall be reasonably deemed
necessary by each Inspector, and cause the Company’s officers, directors and employees to supply
all information which any Inspector may reasonably request; provided, however, that
each Inspector shall agree in writing to hold in strict confidence and not to make any disclosure
(except to an Investor) or use of any Record or other information which the Company determines in
good faith to be confidential, and of which determination the Inspectors are so notified, unless
(a) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order
from a court or government body of competent jurisdiction, or (b) the information in such Records
has been made generally available to the public other than by disclosure in violation of this or
any other agreement of which the Inspector has knowledge. Each Investor agrees that it shall, upon
learning that disclosure of such Records is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt notice to the Company and allow the
Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records deemed confidential. Nothing herein (or in any other
confidentiality agreement between the Company and any Investor) shall be deemed to limit the
Investors’ ability to sell Registrable Securities in a manner which is otherwise consistent with
applicable laws and regulations.

          (i) The Company shall hold in confidence and not make any disclosure of information concerning
an Investor provided to the Company unless (i) disclosure of such information is necessary to
comply with federal or state securities laws, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction, or (iv) such information has been made
generally available to the public other than by disclosure in violation of this Agreement or any
other agreement. The Company agrees that it shall, upon learning that disclosure of such
information concerning an Investor is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt written notice to such

9

 

Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

          (j) The Company shall use its commercially reasonable best efforts either to (i) cause all of
the Registrable Securities covered by a Registration Statement to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if
any, if the listing of such Registrable Securities is then permitted under the rules of such
exchange, or (ii) secure designation and quotation of all of the Registrable Securities covered by
a Registration Statement on the New York Stock Exchange or (iii) if, despite the Company’s
commercially reasonable best efforts to satisfy, the preceding clauses (i) and (ii) the Company is
unsuccessful in satisfying the preceding clauses (i) and (ii), to use its commercially reasonable
best efforts to secure the inclusion for quotation on The Nasdaq Global Market for such Registrable
Securities and, without limiting the generality of the foregoing, to use its commercially
reasonable best efforts to arrange for at least two market makers to register with the Financial
Industry Regulatory Authority (“FINRA”) as such with respect to such Registrable
Securities. The Company shall pay all fees and expenses in connection with satisfying its
obligation under this Section 3(j).

          (k) The Company shall cooperate with the Investors who hold Registrable Securities being
offered and, to the extent applicable, facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legend) representing the Registrable Securities to be
offered pursuant to a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the Investors may reasonably request and
registered in such names as the Investors may request.

          (l) If reasonably requested by an Investor in writing, the Company shall (i) as soon as
reasonably practicable incorporate in a prospectus supplement, post-effective amendment or, to the
extent permitted under the 1933 Act, a periodic or current report on under the 1934 Act such
information as an Investor reasonably requests to be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation, information with respect to
the number of Registrable Securities being offered or sold, the purchase price being paid therefor
and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii)
as soon as reasonably practicable make all required filings of such prospectus supplement,
post-effective amendment or, if permitted, periodic or current report under the 1934 Act after
being notified of the matters to be incorporated in such prospectus supplement, post-effective
amendment or periodic or current report; and (iii) as soon as reasonably practicable, supplement or
make amendments to any Registration Statement if reasonably requested by an Investor holding any
Registrable Securities.

          (m) The Company shall use its commercially reasonable best efforts to cause the Registrable
Securities covered by a Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.

          (n) The Company shall make generally available to its security holders as soon as practical,
but not later than ninety (90) days after the close of the period covered thereby, an earnings
statement (in form complying with, and in the manner provided by, the provisions of

10

 

Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first
day of the Company’s fiscal quarter next following the effective date of a Registration Statement.

          (o) The Company shall otherwise comply with all applicable rules and regulations of the SEC in
connection with any registration hereunder in all material respects.

          (p) Within two (2) Business Days after a Registration Statement is ordered effective by the
SEC, the Company shall deliver to the transfer agent for such Registrable Securities confirmation
that such Registration Statement has been declared effective by the SEC in such form, and together
with such other documents or legal opinions, as such transfer agent may require.

          (q) Notwithstanding anything to the contrary herein, the Company may delay, including by
delaying the filing or effectiveness of the Shelf Registration Statement, the disclosure of
material, non-public information concerning the Company the disclosure of which at the time is not,
in the good faith opinion of the Board of Directors of the Company (the “Board”), in the
best interest of the Company (a “Grace Period”) and, as applicable, suspend sales of
Registrable Securities under an effective Registration Statement; provided, that the
Company shall promptly (i) notify the Investors in writing of the existence of material, non-public
information giving rise to a Grace Period (provided that in each notice the Company will not
disclose the content of such material, non-public information to the Investors) and the date on
which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which
the Grace Period ends; and, provided further, that no Grace Period shall exceed
thirty (30) consecutive days and during any three hundred sixty five (365) day period such Grace
Periods shall not exceed an aggregate of sixty (60) days (each, an “Allowable Grace
Period”). For purposes of determining the length of a Grace Period above, the Grace Period
shall begin on and include the date the Investors receive the notice referred to in clause (i) and
shall end on and include the later of the date the Investors receive the notice referred to in
clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof
shall not be applicable during the period of any Allowable Grace Period. Upon expiration of the
Grace Period, the Company shall again be bound by the first sentence of Section 3(f) with
respect to the information giving rise thereto unless such material, non-public information is no
longer applicable.

          (r) The Company shall make available at reasonable times for inspection by one or more
representatives of the underwriter(s) in connection with a Registration Statement, all financial
and other records, pertinent corporate documents and properties of the Company as shall be
reasonably necessary to enable them to conduct a reasonable investigation within the meaning of
Section 11 of the 1933 Act and cause the Company’s officers, directors, managers and employees to
supply all information reasonably requested by any representatives in connection with the
Registration Statement.

          (s) In the case of an Underwritten Offering which includes Registrable Securities, the Company
shall set forth in full in the underwriting agreement, indemnification provisions and procedures
which provide rights no less protective than those set forth in Section 6 hereof with
respect to all parties to be indemnified.

11

 

     4. Obligations of the Investors.

          (a) At least five (5) Business Days prior to the first anticipated filing date of a
Registration Statement, the Company shall notify each Investor in writing of the need for such
Investor to complete the Selling Securityholder Notice and Questionnaire if such Investor elects to
have any of such Investor’s Registrable Securities included in such Registration Statement. It
shall be a condition precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that
such Investor shall furnish to the Company a completed Selling Securityholder Notice and
Questionnaire.

          (b) From and after the date the Shelf Registration Statement filed pursuant to
Section 2(a) is declared effective, the Company shall, as promptly as practicable after the
date a completed Selling Securityholder Notice and Questionnaire is delivered to the Company: (i)
(A) to the extent permitted by applicable law, within ten (10) days after such date, file with the
SEC a prospectus supplement solely to name such Investor as a selling securityholder, or (B) if
required by applicable law, as promptly as practicable after such date, file with the SEC a
post-effective amendment to the Shelf Registration Statement or prepare and, if required by
applicable law, file a supplement to the related prospectus or a supplement or amendment to any
document incorporated therein by reference or file any other document required under the 1933 Act
so that the Investor delivering such Selling Securityholder Notice and Questionnaire is named as a
selling securityholder in the Shelf Registration Statement and the related prospectus in such a
manner as to permit such Investor to deliver such prospectus to purchasers of the Registrable
Securities in accordance with applicable law and, if the Company shall file a post-effective
amendment to the Registration Statement, use its commercially reasonable best efforts to cause such
post-effective amendment to be declared effective under the 1933 Act as promptly as is practicable,
but in any event by the date (the “Amendment Effectiveness Deadline”) that is forty-five
(45) days after the date such post-effective amendment is required by this clause to be filed;
(ii) provide such Investor copies of any documents filed pursuant to clause (i) of this
Section 4(b) to the extent required by Section 3; and (iii) notify such Investor as
promptly as practicable after the effectiveness under the 1933 Act of any post-effective amendment
filed pursuant to clause (i) of this Section 4(b); provided that if such Selling
Securityholder Notice and Questionnaire is delivered during a Grace Period, the Company shall so
inform the Investor delivering such Selling Securityholder Notice and Questionnaire and shall take
the actions set forth in clauses (i), (ii) and (iii) above upon expiration of the Grace Period in
accordance with Section 3(q). Notwithstanding anything contained herein to the contrary,
(i) the Company shall be under no obligation to name any Investor that has not timely submitted a
completed Selling Securityholder Notice and Questionnaire to the Company as a selling
securityholder in any Registration Statement or related prospectus and (ii) the Amendment
Effectiveness Deadline shall be extended by up to ten (10) days after the expiration of a Grace
Period (and the Company shall incur no obligation to pay any Additional Interest during such
extension) if such Grace Period is in effect on the Amendment Effectiveness Deadline. Any Investor
who, subsequent to the date the Shelf Registration Statement is declared effective, provides a
Selling Securityholder Notice and Questionnaire required by this Section 4(b) pursuant to
the provisions of this section (whether or not such Investor has supplied the Selling
Securityholder Notice and Questionnaire at the time the Shelf Registration Statement was declared
effective) shall be named as a selling

12

 

securityholder in the Shelf Registration Statement and/or related prospectus, each as amended
or supplemented, in accordance with the requirements of this Section 4(b).

          (c) Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
cooperate with the Company as reasonably requested by the Company in connection with the
preparation and filing of any Registration Statement hereunder, unless such Investor has notified
the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable
Securities from such Registration Statement.

          (d) Each Investor agrees that, upon receipt of any notice from the Company of the happening of
any event of the kind described in Section 3(g) or the first sentence of
Section 3(f), such Investor will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until
such Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by
Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no
supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall
cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an
Investor in connection with any sale of Registrable Securities with respect to which an Investor
has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company
of the happening of any event of the kind described in Section 3(g) or the first sentence
of Section 3(f) and for which the Investor has not yet settled.

          (e) Each Investor covenants and agrees that it will comply with the prospectus delivery
requirements of the 1933 Act as applicable to it in connection with sales of Registrable Securities
pursuant to the Registration Statement.

     5. Expenses of Registration.

     All reasonable expenses, other than underwriting discounts and commissions, incurred in
connection with registrations, filings or qualifications pursuant to Section 2 or
Section 3 hereof, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the
Company shall be paid by the Company. The Company shall also reimburse the Investors for the fees
and disbursements of Legal Counsel in connection with registration, filing or qualification
pursuant to Section 2 or Section 3 of this Agreement which amount shall be limited
to $10,000 without the prior consent of the Company, which shall not be unreasonable withheld or
delayed.

     6. Indemnification.

     In the event any Registrable Securities are included in a Registration Statement under this
Agreement:

          (a) To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold
harmless and defend each Investor, the directors, officers, members, partners, employees, agents,
representatives of, affiliates of and each Person, if any, who controls any Investor within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses,

13

 

joint or several, (collectively, “Claims”) incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other regulatory agency, body
or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out
of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing made in connection
with the qualification of the offering under the securities or other “blue sky” laws of any
jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the
omission or alleged omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus if used prior to the effective date of
such Registration Statement, or contained in the final prospectus (as amended or supplemented, if
the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein,
in the light of the circumstances under which the statements therein were made, not misleading,
(iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other
law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or
(iv) any material violation of this Agreement (the matters in the foregoing clauses (i) through
(iv) being, collectively, “Violations”). Subject to Section 6(c) hereof, the
Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due
and payable, for any legal fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply
to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the Company by such
Indemnified Person for such Indemnified Person expressly for use in connection with the preparation
of the Registration Statement or any prospectus included therein or any such amendment thereof or
supplement thereto; (ii) with respect to any preliminary prospectus, shall not inure to the benefit
of any such Person from whom the Person asserting any such Claim purchased the Registrable
Securities that are the subject thereof (or to the benefit of any Person controlling such Person)
if the untrue statement or omission of material fact contained in the preliminary prospectus was
corrected in the prospectus, as then amended or supplemented, if such prospectus was timely made
available by the Company prior to the time of sale of the Registrable Securities, and the
Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the
use giving rise to a Violation and such Indemnified Person, notwithstanding such advice, used it or
failed to deliver the correct prospectus as required by the 1933 Act and such correct prospectus
was timely made available pursuant to Section 3(d); (iii) shall not be available to the
extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered
 the
prospectus made available by the Company, if such prospectus or corrected prospectus was timely
made available by the Company pursuant to Section 3(d); and (iv) together with
Section 7, shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld or delayed. Such indemnity shall

14

 

remain in full force and effect regardless of any investigation made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors
pursuant to Section 9 hereof.

          (b) In connection with any Registration Statement in which an Investor is participating, to
the fullest extent permitted by law each such Investor will, and hereby does, severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set
forth in Section 6(a), the Company, each of its directors, officers, employees, agents,
representatives of, and each Person, if any, who controls the Company within the meaning of the
1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in
conformity with written information furnished to the Company by such Investor expressly for use in
connection with such Registration Statement or any prospectus included therein or any such
amendment thereof or supplement thereto; and, subject to Section 6(c), such Investor will
reimburse any Indemnified Party, promptly as such expenses are incurred and are due and payable,
for any legal fees or other reasonable expenses incurred by them in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in
Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of such Investor; provided, further,
however, that such Investor shall be liable under this Section 6(b) for only that
amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a
result of the sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by
the Investors pursuant to Section 9 hereof. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(b) with respect
to any preliminary prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement or omission of material fact contained in the preliminary prospectus was corrected in the
prospectus, as then amended or supplemented.

          (c) Promptly after receipt by an Indemnified Person or Indemnified Party under this
Section 6 of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one counsel for such Indemnified Person or
Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the Indemnified Person or
Indemnified Party and the indemnifying party would be inappropriate due to actual or potential

15

 

differing interests between such Indemnified Person or Indemnified Party and any other party
represented by such counsel in such proceeding. In the case of an Indemnified Person, legal
counsel referred to in the immediately preceding sentence shall be selected by the Investors
holding at least a majority in interest of the Registrable Securities included in the Registration
Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall cooperate
fully with the indemnifying party in connection with any negotiation or defense of any such action
or Claim by the indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which relates to such action or
Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person reasonably
apprised at all times as to the status of the defense or any settlement negotiations with respect
thereto. No indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or condition its consent. No
indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or
litigation. Following indemnification as provided for hereunder, the indemnifying party shall be
subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third
parties, firms or corporations relating to the matter for which indemnification has been made. The
failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action.

          (d) The indemnification required by this Section 6 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and when bills are
received or Indemnified Damages are incurred.

          (e) The indemnity agreements contained herein shall be in addition to (i) any cause of action
or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or
others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

     7. Contribution.

     To the extent any indemnification by an indemnifying party is prohibited or limited by law,
the indemnifying party agrees to make the maximum contribution with respect to any amounts for
which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however, that: (i) no Person involved in the sale of Registrable
Securities which Person is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from
any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable
Securities pursuant to such Registration Statement.

16

 

     8. Reports Under the 1934 Act.

     With a view to making available to the Investors the benefits of Rule 144 promulgated under
the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the
Investors to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees to:

          (a) make and keep public information available, as those terms are understood and defined in
Rule 144; and

          (b) furnish to each Investor so long as such Investor owns Registrable Securities, promptly
upon request, (i) a written statement by the Company, if true, that it has complied with the
reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent
annual report of the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the Investors to sell such
securities pursuant to Rule 144 without registration.

     9. Assignment of Registration Rights.

     The rights under this Agreement shall be automatically assignable by the Investors to any
transferee of all or any portion of such Investor’s Registrable Securities if:

          (a) the Investor agrees in writing with the transferee or assignee to assign such rights, and
a copy of such agreement is furnished to the Company within two (2) Business Days after such
assignment;

          (b) the Company is, within two (2) Business Days after such transfer or assignment, furnished
with written notice of (i) the name and address of such transferee or assignee, and (ii) the
securities with respect to which such registration rights are being transferred or assigned;

          (c) immediately following such transfer or assignment the further disposition of such
securities by the transferee or assignee is restricted under the 1933 Act and applicable state
securities laws; and

          (d) at or before the time the Company receives the written notice contemplated by clause b. of
this sentence the transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein.

     10. Amendment of Registration Rights.

     Provisions of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Required Holders. Any amendment or waiver effected in
accordance with this Section 10 shall be binding upon each Investor and the Company. No
such amendment shall be effective to the extent that it applies to less than all of the holders of
the Registrable Securities. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of this Agreement

17

 

unless the same consideration also is offered to all of the parties to this Agreement.

     11. Director Nomination Right.

          (a) Beginning on the Issuance Date (as defined in the Warrants) and at all times thereafter
until the date on which FP Investor, together with its affiliates, no longer hold at least fifty
percent (50%) of the principal amount of the loan originally made by all Lenders pursuant to the
Loan Agreement, FP shall have the right to nominate two (2) candidates, each of whom shall satisfy
the qualifications generally applicable to all other members of the Board, for election to the
Board (each, an “FP Director Nominee”); provided that for so long as FP Investor,
together with its affiliates, hold at least twenty-five percent (25%) of the principal amount of
the loan originally made by all Lenders pursuant to the Loan Agreement, FP shall have the right to
nominate one (1) candidate, who shall satisfy the qualifications generally applicable to all other
members of the Board, for election to the Board (also, an “FP Director Nominee”).

          (b) On the Issuance Date, the Company and the Board shall (i) increase the size of the Board
so that the number of seats on the Board has been increased by two (2) and (ii) appoint two (2) FP
Director Nominees to fill the vacancies created; provided that if FP notifies the Company
in writing on the Issuance Date that FP will only nominate one (1) FP Director Nominee on the
Issuance Date, then the Company shall only be required to increase the number of seats on the Board
and appoint on the Issuance Date the one (1) FP Director Nominee so nominated on the Issuance Date;
provided, further, that in such event, FP shall retain its right to nominate and
appoint a second FP Director Nominee and, when FP nominates the second FP Director Nominee, the
Company shall further increase the number of seats on the Board and appoint such FP Director
Nominee. After the Issuance Date and for so long as FP shall have the right to nominate any FP
Director Nominees, the Company and the Board agree to take all actions necessary to enable the
applicable number of FP Director Nominees to become members of the Board, including, without
limitation, (A) increasing and thereafter maintaining the size of the Board so that the number of
seats on the Board is sufficient to allow the appointment and/or election of the applicable number
of FP Director Nominees, (B) appointing the applicable number of FP Director Nominees to the fill
the vacancies created, and (C) including the FP Director Nominees in all proxy and other materials
and endorsing and recommending the FP Director Nominees to the stockholders for election in
connection with all meetings of the stockholders at which directors are to be elected, which
endorsement and recommendation shall not be changed or withdrawn without consent of FP.

          (c) The nominations of FP hereunder shall remain in effect until a new nomination is delivered
in writing to the Company. FP may change such nomination at any time and for any reason in its
sole discretion, and upon notice being given to the Company of any new nomination being made, the
Company and the Board shall promptly take such actions as may be specified by FP to remove from
office the prior nominees and replace them with the new appointees.

          (d) In the event that any FP Director Nominee shall cease to serve as director of the Company
for any reason during any period in which FP shall have the right to nominate any FP Director
Nominees, FP shall have the right to nominate a successor. The Company and

18

 

the Board shall ensure that such successor nominee is duly appointed and elected to fill such
vacancy.

          (e) Each director shall be entitled to one (1) vote on each matter on which the Board takes
action.

          (f) For all purposes, each FP Director Nominee shall have the same rights and protections
(including indemnification), and be entitled to the same compensation and other benefits (including
reimbursement) for serving as a board member, as the non-executive members of the Board.

          (g) Notwithstanding anything in this Section 11 to the contrary, FP may, at any time
and from time to time, in lieu of nominating a particular FP Director Nominee, designate a
non-voting observer to attend each meeting of the Board (“Observer”), who shall be entitled
to receive the same notice of meetings of the Board, and (subject to the execution of a
non-disclosure agreement if requested by the Company the same materials provided to the Board, as
such individual would be entitled to receive were such individual a voting member of the Board. At
any time and from time to time, FP may elect to nominate such individual as such director, in which
event such individual shall no longer be an Observer.

          (h) Each FP Director Nominee (or Observer designated in lieu thereof) shall be entitled to
serve on any committee of the Board (or, in the case of an Observer, to attend all meetings thereof
as a non-voting observer thereof) as such director (or Observer) may request; provided,
however, that a particular FP Director Nominee shall not have the right to serve on (a) any
special committee formed for the purposes of interested director or shareholder transactions in
which such FP Director Nominee is the interested director or FP or its controlled affiliates is the
interested shareholder or (b) on any other committee if such FP Director Nominee’s service on such
committee would cause the Company not to be in compliance with any independence or other
requirements applicable to such committee pursuant to the rules of the Principal Market and the
SEC.

     12. Miscellaneous.

          (a) A Person is deemed to be a holder of Registrable Securities whenever such Person owns or
is deemed to own of record such Registrable Securities. If the Company receives conflicting
instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from
the record owner of such Registrable Securities.

          (b) Any notices, consents, waivers or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i)
upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

19

 

If to the Company:

Hypercom Corporation

2851 West Kathleen Road

Phoenix, Arizona 85053

Attention: General Counsel

Facsimile: (602) 504-4623

with a copy to:

DLA Piper US LLP

2415 East Camelback Road, Suite 700

Phoenix, Arizona 85016-4245

Attention: Steven D. Pidgeon, Esq.

Facsimile: (480) 606-5524

If to Legal Counsel:

O’Melveny & Myers LLP

275 Battery Street, Suite 2600

San Francisco, California 94111

Attention: Michael J. Kennedy, Esq.

                   C. Brophy Christensen, Esq.

Facsimile: (415) 894-8701

     If to a Lender, to its address and facsimile number set forth on the Schedule of Lenders
attached hereto, with copies to such Lender’s representatives as set forth on the Schedule of
Lenders, or to such other address and/or facsimile number and/or to the attention of such other
Person as the recipient party has specified by written notice given to each other party five (5)
days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient
facsimile number and an image of the first page of such transmission or (C) provided by a courier
or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

          (c) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or
delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

          (d) All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other
than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in the State of Delaware, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert

20

 

in any suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address for such notices
to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction
or the validity or enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

          (e) The Loan Agreement, this Agreement, the other Related Agreements (as defined in the Loan
Agreement) and the instruments referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the other Transaction Documents and the instruments referenced
herein and therein supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

          (f) Subject to the requirements of Section 9 hereof, this Agreement shall inure to the
benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

          (g) The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.

          (h) This Agreement may be executed in identical counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same agreement. This Agreement, once
executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy
of this Agreement bearing the signature of the party so delivering this Agreement.

          (i) Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and
documents, as any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          (j) All consents and other determinations required to be made by the Investors pursuant to
this Agreement shall be made, unless otherwise specified in this Agreement, by the Required
Holders.

21

 

          (k) The language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent and no rules of strict construction will be applied against
any party.

          (l) This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other Person.

          (m) The Company acknowledges and agrees that any failure by the Company to comply with its
obligations under Section 2 hereof may result in material irreparable injury to the
Investors for which there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Investors may
obtain such relief as may be required to specifically enforce the Company’s obligations under
Section 2 hereof. The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

          (n) The Company will not, on or after the date of this Agreement, enter into any agreement
with respect to its securities that is inconsistent with the rights granted to the Investors in
this Agreement or otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement (which has not expired or been terminated) granting any registration
rights with respect to its securities to any person which rights conflict with the provisions
hereof.

          (o) Whenever the consent or approval of Investors of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or its affiliates
shall not be counted in determining whether such consent or approval was given by the Investors of
such required percentage.

          (p) The obligations of each Investor hereunder are several and not joint with the obligations
of any other Investor, and no provision of this Agreement is intended to confer any obligations on
any Investor vis-à-vis any other Investor. Nothing contained herein, and no action taken by any
Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that the
Investors are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated herein.

          (q) For a period of three (3) years after the date of this Agreement, neither FP nor any of
its controlled affiliates or representatives will in any manner, directly or indirectly, (a) effect
or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to
effect or cause or participate in or in any way assist or encourage any other person to effect or
seek, offer or propose (whether publicly or otherwise) to effect or participate in, (i) any
acquisition of any securities (or beneficial ownership thereof) or assets of the Company or any of
its affiliates; (ii) any tender or exchange offer, merger or other business combination involving
the Company or any of its affiliates; (iii) any recapitalization, restructuring, liquidation,
dissolution or other extraordinary transaction with respect to the Company or any of its
affiliates; or (iv) any “solicitation” of “proxies” (as such terms are used in the proxy rules of
the SEC) or consents to vote any voting securities of the Company or any of its affiliates;
(b) form, join or in

22

 

any way participate in a “group” (as defined under the 1934 Act) with respect to the common
shares or any other voting securities of the Company or otherwise act in concert with any person in
respect of any such securities; (c) take any action which might force the Company to make a public
announcement regarding any of the types of matters set forth in (a) above. FP also agrees during
such period not to request the Company (or any of its Representatives), directly or indirectly, to
amend or waive any provision of this paragraph (including this sentence).

     Notwithstanding the foregoing, nothing herein shall (i) limit total acquisitions of up to one
percent (1%) of the Company’s securities, provided that such acquisitions are not made in
connection with the private equity activities of FP or its affiliates and are in compliance with
all applicable securities laws and regulations, (ii) apply to the exercise of the Warrant and the
acquisition of the Warrant Shares, (iii) apply to the exercise of rights or remedies of the Lenders
or their affiliates under the Loan Agreement, hereunder or under the Warrants, (iv) limit any
disclosure required to be made as a matter of law or (v) apply to any communications and or
discussions made by a person in the discharge of his or her fiduciary duties as a director on a
confidential basis and in a manner that does not require public disclosure thereof.

          (r) Prior to the earlier of (i) the termination of this Agreement, (ii) the date on which FP
no longer has the right to nominate candidates to the Board or (iii) the date on which no FP
Director Nominees are members of the Board, FP will not, and FP will not permit any Person acting
on behalf of or pursuant to any understanding with FP to, engage, directly or indirectly, in any
transactions in the securities of the Company involving any Short Sales. For purposes hereof, the
term “Short Sales” means “short sales” as defined in Rule 200 promulgated under Regulation SHO
under the 1934 Act. Notwithstanding the foregoing, nothing in this provision shall not prevent or
limit in any way the rights that FP and it’s affiliates under the Warrants, including the right to
exercise the Warrants.

          (s) In connection with any registration referred to in Section 2(g) above, each of the
Investors, if requested in good faith by the Company and the managing underwriter of the Company’s
securities, shall execute a lock-up agreement pursuant to which each shall agree not to, directly
or indirectly, offer, sell, pledge, contract to sell (including any short sale), grant any option
to or purchase or otherwise dispose of any securities of the Company held by him, her or it (except
for any securities sold pursuant to such related Registration Statement) or enter into any hedging
transactions relating to any securities of the Company for a period not to exceed 90 days following
the effective date of such Registration Statement relating thereto. Notwithstanding the foregoing,
in the event that any party to a lock-up agreement in connection with any such registration is
released therefrom or any director or officer of the Company does not execute an identical lock-up
agreement, the Investors will be released from their lock-up agreements.

[Signature Page Follows]

23

 

     IN WITNESS WHEREOF, each Lender and the Company have caused their respective signature page to
this Registration Rights Agreement to be duly executed as of the date first written above.

	 	 	 	 	 
	 	 	HYPERCOM CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Philippe Tartavull
	 

	 	 	 	 
	 

	 	Name:
	 	Philippe Tartavull
	 

	 	Title:
	 	CEO and President
	 
	 	 	 	 
	 	 	FP HYPERCOM HOLDCO, LLC
	 
	 	 	 	 
	 	 	By: FRANCISCO PARTNERS II, L.P.,

its Managing Member
	 
	 	 	 	 
	 	 	By: FRANCISCO PARTNERS GP II, L.P.,

its General Partner
	 
	 	 	 	 
	 	 	By: FRANCISCO PARTNERS
GP II 
MANAGEMENT, LLC,
its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith B. Geeslin
	 

	 	 	 	 
	 

	 	Name:
	 	Keith B. Geeslin
	 

	 	Title:
	 	Managing Member

24

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