Document:

EX-10.3

 

Exhibit 10.3

ADDITIONAL BANK ASSUMPTION AGREEMENT

     This Additional Bank Assumption Agreement (this “Assumption Agreement”) is made as of December
20, 2007, by and among Wachovia Bank, N. A. (the “Additional Bank”), Forest City Rental Properties
Corporation (the “Borrower”) and KeyBank National Association, in its capacity as administrative
agent (the “Agent”) under the Credit Agreement (as defined below) on behalf of the Banks (as
defined in the Credit Agreement).

W I T N E S S E T H:

     WHEREAS, the Borrower, the Agent, National City Bank, as syndication agent, Bank of America,
N. A. and LaSalle Bank National Association, as co-documentation agents, and the Banks are parties
to that certain Amended and Restated Credit Agreement, dated as of June 6, 2007 (as the same may
be amended, restated, or otherwise modified from time to time, being herein called the “Credit
Agreement”), pursuant to the terms and conditions of which the Agent and the Banks have agreed to
make Loans to the Borrower, and the Agent has agreed to issue letters of credit for the account of
the Borrower on behalf of the Banks. Capitalized terms used herein and not otherwise defined
herein shall have the meanings attributed to them in the Credit Agreement; and

     WHEREAS, pursuant to Section 5.07(a) of the Credit Agreement, the Borrower has requested the
Agent to increase the Total Revolving Loan Commitments; and

     WHEREAS, in connection with the requested increase of the Total Revolving Loan Commitments,
the Additional Bank has requested that, effective on the date of this Assumption Agreement (the
“Assumption Effective Date”), the Additional Bank shall be designated a Bank under the Credit
Agreement and shall be bound thereby as if it were an original signatory thereto; and

     WHEREAS, the Borrower and the Agent are willing to permit the Additional Bank to become a Bank
under the Credit Agreement with all of the rights and obligations of a Bank thereunder, and this
Assumption Agreement is being executed and delivered in consideration of the financial
accommodations, if any, granted by the Agent and the Banks and for other valuable consideration;

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed
as follows:

     1. On and after the Assumption Effective Date, the Additional Bank hereby assumes

 

 

the obligation, during the Commitment Period, to make Revolving Loans and participate in Swing
Loans and letters of credit, subject to the terms and conditions of the Credit Agreement, in an
aggregate amount not to exceed Sixty Million Dollars ($60,000,000.00). After giving effect
to such assumption, as of the Assumption Effective Date, the Additional Bank’s Commitment and the
amount of the Revolving Loans owing to the Additional Bank will be as set forth in Item 2(A) and
Item 2(B) of Schedule 1, respectively.

     2. On and after the Assumption Effective Date, the Additional Bank shall become and thereafter
be deemed a “Bank” for the purposes of the Credit Agreement and all Related Writings and shall be
bound thereby and obtain the benefits thereof as if it were an original signatory thereto. On and
after the Assumption Effective Date, the Additional Bank shall be entitled to receive from the
Agent all payments of principal, interest and fees with respect to the interest assumed hereby.
The Additional Bank hereby irrevocably designates and appoints KeyBank National Association as the
Agent for the Additional Bank to act as specified in the Credit Agreement and irrevocably
authorizes KeyBank National Association to take such action as the Agent on its behalf and to
exercise such powers and perform such duties under the Credit Agreement as are expressly delegated
to the Agent by the terms of the Credit Agreement or any Related Writing, together with such other
powers as are reasonably related thereto.

     3. From and after the Assumption Effective Date, the Agent shall make all payments under the
Credit Agreement and the Revolving Loan Notes in respect of the interest assumed hereby (including,
without limitation, all payments of principal, interest, commitment fees and letter of credit fees
with respect thereto) to the Additional Bank. All notices, requests, demands and other
communications provided for under the Credit Agreement and Related Writings to the Additional Bank,
that are to be mailed or delivered to it, shall be addressed to it at the address specified on
Schedule 1 attached hereto (which address shall, for purposes of Section 13.03 of the Credit
Agreement and Section 13 of the Guaranty, be deemed to be the address of the Additional Bank set
forth on the signature pages to the Credit Agreement), or at such other address as shall be
designated by the Additional Bank in accordance with Section 13.03 of the Credit Agreement.

     4. The Additional Bank (a) represents and warrants that it is a commercial bank, financial
institution, mutual fund or institutional “accredited investor” (as defined in Regulation D of the
Securities Act of 1933, as amended); (b) confirms that it has received a copy of the Credit
Agreement and each of the Related Writings, together with copies of the financial statements
requested by the Additional Bank and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assumption Agreement;
(c) agrees that it will, independently and without reliance upon any Agent or any Bank and based on
such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement; (d) agrees that it will
perform in accordance with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Bank; (e) confirms that it is able to fund the
Revolving Loans and any drawings under the letters of credit as required by the terms of the Credit
Agreement; (f) if the Additional Bank is organized under the laws of a jurisdiction outside the
United States, attaches the forms prescribed by the Internal

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Revenue Service of the United States
certifying as to the Additional Bank’s status for purposes of determining exemption from United
States withholding taxes with respect to all payments to be made to the Additional Bank under the
Credit Agreement and the Revolving Loan Notes or such other documents as are necessary to indicate
that all such payments are subject to such taxes at a
rate reduced by an applicable tax treaty; and (g) confirms that none of the funds, monies, assets
or other consideration being used to make the purchase and assumption hereunder are “plan assets”
as defined under ERISA and that its rights, benefits and interests in and under the Credit
Agreement and Related Writings will not be “plan assets” under ERISA.

     5. The Administrative Agent (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any Related Writing, or any other
instrument or document furnished pursuant thereto; and (b) makes no representation or warranty and
assumes no responsibility with respect to the financial condition or the creditworthiness of the
Borrower or the performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto.

     6. The Borrower hereby represents and warrants to the Agent and the Additional Bank that: (a)
the Borrower has full power, authority and legal right to execute and deliver this Assumption
Agreement and the Revolving Loan Note to be made payable and delivered to the Additional Bank, and
the officers acting on behalf of the Borrower have been duly authorized to execute and deliver this
Assumption Agreement and such Revolving Loan Note; (b) this Assumption Agreement, the Credit
Agreement and such Revolving Loan Note are each valid and binding upon the Borrower and enforceable
against the Borrower in accordance with their respective terms; (c) each of the representations and
warranties set forth in Article IX of the Credit Agreement and in the Related Writings are true and
complete in all material respects as of the Assumption Effective Date, except to the extent that
any thereof expressly relate to an earlier date; and (d) no Possible Default or Event of Default
exists as of the Assumption Effective Date or will exist after giving effect to this Assumption
Agreement.

     7. Anything herein to the contrary notwithstanding, each of the Borrower and the Guarantor
shall remain bound by the terms and conditions of the Credit Agreement, the Guaranty and each other
Related Writing to which it is a party regardless of the assumption by the Additional Bank
hereunder or the enforceability thereof or of the Credit Agreement, the Guaranty or any other
Related Writing. All provisions of the Credit Agreement and the Related Writings shall remain in
full force and effect and be unaffected hereby. This Assumption Agreement is a Related Writing as
defined in the Credit Agreement.

     8. The Borrower agrees to indemnify and hold harmless the Agent against any and all losses,
costs and expenses (including, without limitation, reasonable attorneys’ fees) and liabilities
incurred by the Agent in connection with or arising in any manner from this assumption.

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     9. After the Assumption Effective Date, the Additional Bank shall have the right pursuant to
Section 13.08 of the Credit Agreement to assign the rights which are assumed by the Additional Bank
hereunder to any qualified entity as provided in Section 13.08 of the Credit Agreement, provided
that any such subsequent assignment does not violate any of the terms and conditions of the Credit
Agreement or Related Writings or any law, rule, regulation, order, writ,
judgment, injunction or decree and that any consent required under the terms of the Credit
Agreement or Related Writings has been obtained.

     10. The Borrower agrees to pay the fees and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Agent in connection with the negotiation, preparation and execution of
this Assumption Agreement.

     11. This Assumption Agreement may be executed in counterparts, each of which when so executed
and delivered shall be deemed an original, but all of which together shall constitute but one and
the same instrument.

     12. This Assumption Agreement together with Schedule 1 attached hereto embody the entire
agreement and understanding between the parties hereto and supersede all prior agreements and
understandings between the parties hereto relating to the subject matter hereof.

     13. This Assumption Agreement shall be governed by the internal law, and not the law of
conflicts, of the State of Ohio.

     14. Notices shall be given under this Assumption Agreement in the manner set forth in Section
13.03 of the Credit Agreement. For the purpose hereof, the addresses of the parties hereto (until
notice of a change is delivered) shall be the respective address set forth in the Credit Agreement
or the attached Schedule 1, if a different address is therein provided.

     15. The Agent hereby appoints, and the Borrower hereby consents to the appointment of,
Wachovia Bank, N. A. as a Co-Documentation Agent under the Credit Agreement and the Related
Writings, effective as of the Assumption Effective Date. Wachovia Bank, N. A., as a
Co-Documentation Agent, shall have no right, power, obligation, liability, responsibility or duty
under the Credit Agreement or any Related Writing except those applicable to Banks as such.

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     16. THE BORROWER, THE AGENT AND THE ADDITIONAL BANK WAIVE ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE
BORROWER, THE AGENTS, THE ADDITIONAL BANK AND THE BANKS, OR ANY THEREOF, ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS ASSUMPTION AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. THIS WAIVER SHALL NOT IN ANY
WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY ANY BANK’S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY
CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR
AGREEMENT AMONG THE BORROWER, THE ADDITIONAL BANK AND THE BANKS, OR ANY THEREOF.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assumption Agreement by their duly
authorized officers as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, N. A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ LEONARD CLARK, JR.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Leonard Clark, Jr. 	 	 
	 

	 	 	 	Title:
	 	Vice
President 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FOREST CITY RENTAL PROPERTIES

CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ THOMAS G. SMITH	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Thomas G. Smith 	 	 
	 

	 	 	 	Title:
	 	Vice
President & Assistant Secretary

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as Agent for the Banks	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ JOSHUA K. MAYERS	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Joshua K. Mayers 	 	 
	 

	 	 	 	Title:
	 	Vice
President 

	 	 
	 

	 	 	 	 	 	 

	 	 

[Signature page to the Additional Bank Assumption Agreement]

 

 

SCHEDULE 1

to Additional Bank Assumption Agreement

	1.	 	Effective Date of Assumption Agreement: December 20, 2007

	2.	 	Amounts (as of the date of Item 1 above unless indicated otherwise):

	 	 	 	 	 	 	 
	 

	 	A.
	 	Additional Bank’s Commitment
	$	 60,000,000
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Additional Bank’s pro rata share of the
aggregate outstanding principal amount of
Revolving Loans
	$	 0
	 
	 	 	 	 	 	 
	 

	 	C.
	 	Aggregate outstanding amount of accrued interest and fees
owed to the Additional Bank
	$	 0

	4.	 	Address of Additional Bank:

Wachovia Bank, N. A.

1753 Pinnacle Drive, 5th Floor South Tower

McLean, Virginia 22102

Attention: Leonard Clark, Jr.

 

 

ACKNOWLEDGMENT OF GUARANTOR

     FOREST CITY ENTERPRISES, INC., an Ohio corporation, Guarantor under that certain Amended and
Restated Guaranty of Payment of Debt issued on or about June 6, 2007 (the “Guaranty of Payment of
Debt”) to and in favor of the Agents and the Banks in respect of, inter alia., the
indebtedness of FOREST CITY RENTAL PROPERTIES CORPORATION under the Credit Agreement referenced in
the foregoing Additional Bank Assumption Agreement, hereby acknowledges (1) the assumption by the
Additional Bank under the foregoing Additional Bank Assumption Agreement of a Revolving Loan
Commitment in the principal amount of $60,000,000.00, and (2) the corresponding increase of the
Total Revolving Loan Commitments in the same amount, and confirms and agrees that the Guaranty of
Payment of Debt is and shall remain in full force and effect with respect to the Credit Agreement
as in effect prior to, and from and after, the addition of the Additional Bank thereto pursuant to
the foregoing Additional Bank Assumption Agreement.

	 	 	 	 	 	 	 	 	 
	Dated: December 20, 2007	 	FOREST CITY ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ THOMAS G. SMITH	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Thomas G. Smith	 	 
	 

	 	 	 	 	 	 
	 	 
	 

	 	 	 	Title:	 	Chief Financial Officer,

Executive Vice President & Secretaryexv10w1

 

EXHIBIT 10.1

[Letterhead of Hypercom Corporation]

	 	 	 
	 

	 	Thales SA
	 

	 	45, rue de Villiers
	 

	 	92200 Neuilly sur Seine, France
	 

	 	For the attention of Mr Thomas GOT
	 
	 	 
	 

	 	20 December 2007

Re: Binding offer for the acquisition of shares of Thales E-Transactions companies

Dear Sirs,

By this letter, Hypercom Corporation is pleased to irrevocably offer to you (the “Offer”) to
acquire the shares of Thales E-Transactions SA, Thales E-Transactions GmbH, Thales E-Transactions
Ltd, and Thales E-Transactions España, each of which is a direct or indirect wholly owned
subsidiary of Thales SA (the “Transaction”).

The terms and conditions of our Offer (including the specification of the shares to be acquired by
Hypercom Corporation and the consideration to be paid by Hypercom Corporation) are contained in the
draft Share Purchase Agreement (the “Share Purchase Agreement”) and related agreements attached to
this letter and initialed by Hypercom Corporation, which drafts are in agreeable terms to Hypercom
Corporation (and which shall, with respect to the Sellers’ Disclosure Letter, be updated by Thales
at the execution date of the Share Purchase Agreement).

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in
the draft Share Purchase Agreement.

This Offer has been approved by the Board of Directors of Hypercom Corporation and will remain in
force until 5.00 p.m, Phoenix, AZ Time, February 28, 2008 (the “Expiration Date”) at which time it
will expire unless it has been accepted by you and all the following conditions have been
satisfied:

	 	(a)	 	acceptance by you of this Offer by execution by Thales SA, no later than on
the Expiration Date, of the draft Share Purchase Agreement and related agreements;
	 
	 	(b)	 	no material breach of your exclusivity obligation toward us, as described in
the exclusivity letter dated as of today, during the applicable exclusivity period;
	 
	 	(c)	 	initiating of the information and consultation process on the offered
Transaction with the relevant employee representatives of the Thales Group; and
	 
	 	(d)	 	no occurrence of any event, situation or omission that would constitute, had
the Share Purchase Agreement already been signed, a Material Adverse Effect between
the date of this Offer and the date at which Thales SA executes the Share Purchase
Agreement.

This offer is fully financed (i) by Francisco Partners for an amount of US$60,000,000 as evidenced
by the commitment letter of Francisco Partners (including the form documentation annexed hereto),
dated as of the date of this offer, attached hereto and (ii) by cash available to us for an amount
of US$60,000,000.

As of the date hereof, Hypercom Corporation has deposited with Thales SA an amount of US$10,000,000
(the “Deposit”). If the Share Purchase Agreement and related agreements are not signed and
delivered by Hypercom Corporation other than as a result of a failure of satisfaction of the
conditions in clauses (a), (b), (c) or (d) above, Thales SA will retain the Deposit, including all
interest that shall have actually accrued thereon, as its sole right and remedy.

If the Share Purchase Agreement has not been entered into by Hypercom Corporation due to the
failure of satisfaction of one of a condition in clauses (a), (b), (c) or (d) above, the Deposit,
including all interest that shall have actually accrued thereon, will be released by Thales SA to
Hypercom Corporation on the Expiration Date.

 

 

In all other cases, the Deposit will be treated in conformity with the provisions of the Share
Purchase Agreement in this respect.

This Offer is governed by French law, and, in connection with any dispute, controversy or claim
arising out or in connection with this letter, the parties agree to submit the matter to
proceedings as described in Section 10.14 (Arbitration) of the draft Share Purchase Agreement.

We remain at your disposal should you require any clarification.

Yours sincerely,

	 	 	 	 	 
	 	 	 
	/s/ Daniel D. Diethelm
 	 	 
	For Hypercom Corporation 	 	 
	Name: Daniel D. Diethelm 	 	 
	 

	Encl.:	Draft Share Purchase Agreement	
	 	Francisco Partners Commitment Letter

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