Amendment to Employment Agreement between Hypercom Corporation and Norman Stout
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Summary
This amendment updates the employment agreement between Hypercom Corporation and Norman Stout, effective January 1, 2008. It clarifies the timing of a specific gross-up payment and adds provisions to comply with Section 409A of the Internal Revenue Code, restricting changes to payment schedules and removing the employee's right to choose payment timing or form. The amendment ensures the agreement meets legal requirements for deferred compensation.
EX-10.25 5 ex10_25.htm EXHIBIT 10.25 ex10_25.htm
EXHIBIT 10.25
AMENDMENT TO EMPLOYMENT AGREEMENT
Hypercom Corporation (the “Company”) and Norman Stout (the “Executive”) entered into an Employment Agreement (the “Agreement’) on December 26, 2007. Section 409A of the Internal Revenue Code is potentially applicable to the Agreement. The Agreement has been administered in good faith compliance with the requirements of Section 409A from December 26, 2007 through the date of this Amendment and will continue to be so administered.
In order to satisfy the documentation requirements of Section 409A, the Employment Agreement hereby is amended as set forth below.
1. This Amendment is effective as of January 1, 2008.
2. Section 3 (c) of the Employment Agreement is hereby amended by revising its second to last sentence to read as follows:
Any Gross-Up Payment to be paid pursuant to this Agreement shall be paid on April 4, 2008.
3. Section 18 of the Employment Agreement is hereby amended by adding the following paragraphs to the end thereof:
(c) Under no circumstances may the time or schedule of any payment made or benefit provided pursuant to this Agreement be accelerated or subject to a further deferral except as otherwise permitted or required pursuant to regulations and other guidance issued pursuant to Section 409A of the Code.
(d) Employee does not have any right to make any election regarding the time or form of any payment due under this Agreement.
IN WITNESS WHEREOF, Executive has executed this Amendment, and Company has caused this Amendment to be executed by its duly authorized representative, on this 31st day of December, 2008.
| HYPERCOM CORPORATION | ||
| By | /s/ Robert Vreeland | |
| Its | Interim CFO | |
| “EXECUTIVE” | ||
| /s/ Norman Stout | ||
| Norman Stout | ||
