Summary of HYPERCOM CORP - Yahoo! Finance

Change in Directors or Principal Officers, Financial Statements and Exhibits

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

As previously disclosed by Hypercom Corporation ("Hypercom" or the "Company") in its Quarterly Report on Form 10-Q filed on May 11, 2009, Robert M. Vreeland, who previously served as Hypercom's Interim Chief Financial Officer, departed Hypercom on May 5, 2009. On May 19, 2009, Mr. Vreeland and the Company entered into a Separation Agreement and General Release (the "Separation Agreement") pursuant to which he resigned from his position as Hypercom's Vice President of Finance effective May 5, 2009 (the "Resignation Date"). Mr. Vreeland has the right to revoke the Separation Agreement within a seven (7) day period that commenced on May 19, 2009 (the "Revocation Period"), and the Separation Agreement will not become effective until the expiration of such Revocation Period.

Provided that Mr. Vreeland does not revoke the Separation Agreement prior to the expiration of the Revocation Period, he will receive the following benefits pursuant to the Separation Agreement: (i) a severance payment of approximately $160,000 (equal to nine months of his current base salary), payable as salary continuation at the normal payroll intervals of the Company and subject to applicable withholding requirements; (ii) an amount equal to the cash equivalent value of his unused paid time off balance as of the Resignation Date, subject to applicable withholding requirements; (iii) six months of COBRA benefits available to him under Hypercom's group health plan as of the Resignation Date, unless he is eligible for health insurance coverage from another employer during such period; (iv) all outstanding stock options owned by him that were vested as of the Resignation Date will be exercisable within 90 days thereof;
(v) 10,000 shares of restricted stock granted to him on April 15, 2009 that were otherwise subject to restrictions based on a three-year vesting schedule will become fully vested and unrestricted as of the Resignation Date; and (vi) third party outplacement services at the Company's expense during the six month period commencing on the expiration of the Revocation Period, in an amount not to exceed $8,500.

The Separation Agreement also contains Mr. Vreeland's full release of all claims against the Company and requires that he be bound indefinitely by non-disclosure restrictive covenants, as well as by non-solicitation and non-competition restrictive covenants until May 5, 2010.

The foregoing description of the Separation Agreement is qualified in its entirety by reference to the complete terms and conditions of the Separation Agreement, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 5.02.