Document:

EX-10.1

EXHIBIT 10.1

Bonus Formula

The bonus shall be determined on the basis of “EBITA” as calculated in the ENB Insurance Board
approved operating budget for the performance year and compared against the prior performance year
actual results.

Payment formula is as follows:

• 20% of increase over prior year actual “EBITA”

- Additional 30% of increase amount over the approved budgeted “EBITA” for current performance year

	•	 	A maximum annual incentive bonus of $100,000

For purpose of this agreement, “EBITA” shall mean the annual net income before accrued bonus as
well as interest, amortization, and income taxes for the employer as determined annually by the
Certified Public Accountants of the Company. The Bonus calculation formula will be in effect for
the term of this employment contractEX-10.1

EXHIBIT 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (the “Agreement”) is entered into on this 22nd
day of February, 2008, by and between Hypercom Corporation, a Delaware corporation (“Company”), and
Thomas Liguori (“Executive”).

RECITALS

A. Executive presently is employed by Company as its Senior Vice President and Chief Financial
Officer pursuant to the terms of an Amended and Restated Employment Agreement dated as of July 11,
2007 (the “Employment Agreement”), a copy of which is attached hereto as Exhibit A.

B. Executive has decided to terminate his employment by the Company pursuant to Section 10
(“Section 10”) of the Employment Agreement.

NOW THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth,
Company and Executive agree as follows:

AGREEMENTS

1. Resignation. By the execution of this Agreement, Executive submits, and Company
accepts, Executive’s resignation from his position as Senior Vice President and Chief Financial
Officer of Company, effective as of February 22, 2008 (the “Resignation Date”). As of the
Resignation Date, Executive also will be deemed to automatically resign, without any further action
by Executive, from any other position or office he held with Company, as well as any position or
office he held with any other entity or employee benefit plan by reason of his association with
Company. Executive and Company agree that Executive’s resignation is pursuant to Section 10 of the
Employment Agreement and that Executive is entitled to all of the payments and other benefits
provided him by the terms and provisions of Section 10.

2. Continuing Responsibilities. Until Executive’s Resignation Date, Executive shall
continue to perform all of his normal duties and responsibilities as Company’s Chief Financial
Officer and Company shall pay Executive his current base salary and provide Executive with all
other benefits set forth in the Employment Agreement.

3. Employee Stock Options. Notwithstanding the terms of any award or granting
agreement or instrument, Executive shall have ninety (90) days from the Resignation Date to
exercise any and all employee stock options granted to Executive that are vested as of the
Resignation Date, including those employee stock options that vest on the Resignation Date pursuant
to Section 10.

4. Release of Company. In consideration of the promises and payments set forth in
this Agreement, Executive hereby releases and forever discharges Company and/or any of its
“Affiliates” from any and all claims, complaints, causes of action, and demands of any kind,
whether known or unknown, which Executive has, ever has had, or may have arising out of or related
to Executive’s employment or resignation from employment with Company, or otherwise, excepting
those arising out of this Agreement, the Indemnification Agreement between Company and Executive
dated August 1, 2006, Executive’s rights under all insurance policies providing benefits to
Executive, including, but not limited to, the Directors and Officers and Errors and Omissions
policies, and Executive’s rights under any option or restricted stock agreement entered into
between Company and Executive pursuant to the Hypercom Corporation Long-Term Incentive Plan, the
2000 Broad-Based Stock Incentive Plan, or any other plan or program pursuant to which Executive may
have been granted options or restricted shares in the past.

This Release is a FULL WAIVER AND RELEASE and includes, without limitation, any right,
claim, demand or cause of action arising under Title VII of the Civil Rights Act of 1964, as
amended; the Americans with Disabilities Act; the Family and Medical Leave Act; the Employee
Retirement Income Security Act of 1974 (“ERISA”); the Older Workers Benefit Protection Act; the
Fair Labor Standards Act; the Age Discrimination in Employment Act; the Rehabilitation Act of 1973;
the Workers Adjustment & Retraining Notification Act (“WARN”); the Consolidated Omnibus Budget
Reconciliation Act; the Fair Labor Standards Act; and any applicable state civil rights act and/or
any other federal, state, or local law or regulation. This Release also includes any contract or
tort causes of action arising from or in any way related to Executive’s employment relationship
with Company and/or any Affiliates.

This Release specifically includes any claims arising under Executive’s Employment Agreement
(other than for payment of Executive’s base salary and benefits through the Resignation Date,
Executive’s bonus for the Company’s 2007 fiscal year, and the payments and benefits provided him by
the terms and provisions of Section 10) as well as any written or oral amendments or supplements
thereto. Executive acknowledges that he is not entitled to receive any bonus compensation for
Company’s 2008 fiscal year.

Notwithstanding any provision herein to the contrary, Executive does not release any claims or
rights Executive may have under any “employee benefit plan” (as that term is defined in regulations
issued pursuant to ERISA) sponsored by Company or any Affiliate.

For purposes of this Agreement, the term “Affiliate” means and includes: (a) any subsidiary,
brother-sister or other organization that is treated as a single employer with Company pursuant to
Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986; and (b) any officer, owner,
director, employee, representative, or insurer of Company or any organization referred to in
clause (a); and (c) the successors and assigns of any organization or individual described in
clauses (a) or (b).

5. Confidential Information and Non-Disclosure. Executive hereby acknowledges that he
is subject to all of the terms and provisions of the Hypercom Employee Non-Disclosure Agreement
dated October 6, 2005 included as a part of his Employment Agreement and that his obligations under
such agreement survive the execution of this Agreement.

6. Covenant Not to Compete. Executive hereby acknowledges that he is subject to all of
the terms and provisions of the Covenant Not to Compete contained in Section 13 of the Employment
Agreement and that his obligations under such Covenant survive the execution of this Agreement.

7. Mutual Non-Disparagement. The parties agree that they will not, at any time, make
any comments about each other that are, or could be interpreted to be, disparaging or derogatory or
that paint the other party in a negative light. Specifically, Executive agrees, among other
things, that he will not make any disparaging, derogatory or negative comments about Company
officers, directors, owners, employees, products, policies or practices. Company’s obligation
pursuant to this Section is limited to comments made by members of Company’s Board of Directors or
Company’s officers. If either party breaches the commitments contained in this Section, that party
will be liable to the other for any resulting harm incurred.

8. Employee Benefit Plans. Executive acknowledges and agrees that, effective as of
the Resignation Date, he no longer will be eligible to participate in any employee benefit plans
offered by Company, except that the coverage of Executive, his spouse and dependents under the
Company’s group health plan shall continue and Executive shall be deemed an employee solely for
this purpose until February 29, 2008. Executive also specifically acknowledges that after the
Resignation Date he will not be entitled to make any additional deferrals of compensation pursuant
to the Company 401(k) Plan or any other Company benefit plan that permits or requires contributions
by plan participants.

9. COBRA. Executive may avail himself of any rights to which he may be entitled to
continue health insurance coverage pursuant to the provisions of COBRA following his Resignation
Date. If Executive elects such coverage, Company will pay the entire cost of such coverage as
provided in Section 10.

10. Unpaid Salary, Bonus and Expenses.

(a) Any unpaid salary earned by Executive prior to the Resignation Date, any unpaid bonus
applicable to 2007, as well as any claims for expenses incurred by Executive on behalf of Company,
will be paid to Executive promptly following the Resignation Date;

(b) Executive acknowledges that he has received all amounts, and all benefits or other
entitlements, to which he was or may have been or may become entitled pursuant to the terms of his
Employment Agreement, except as modified by this Agreement; and

(c) Executive acknowledges that following the execution of this Agreement he will not have any
claim to any amounts, benefits, or other entitlements pursuant to his Employment Agreement (other
than as provided in Section 10 and in this Agreement).

11. Cooperation. If Executive has knowledge or is alleged to have knowledge of any
matters which are the subject of any pending, threatened or future litigation or administrative
proceeding involving Company, Executive will make himself available to testify if and as necessary.
Executive also will make himself reasonably available to the attorneys representing Company in
connection with any such litigation or administrative proceeding for such purposes as they may deem
necessary, including but not limited to the review of documents, discussion of the case and
preparation for the trial or administrative proceeding. Company will pay Executive a flat rate of
$1,000 per day that Executive provides services to the Company under this Section. This Agreement
is not intended to and shall not be construed so as to in any way limit or affect the testimony
which Executive gives in any such litigation; it is understood and agreed that Executive will at
all times testify fully, truthfully and accurately, whether in deposition, trial or otherwise.

12. Period to Consider and Revocation Period. By his signature below, Executive
affirms that he has been given at least 21 days during which to consider the execution of this
Agreement. Executive may revoke this Agreement at any time within 7 days following his execution
of this Agreement (the “Revocation Period”) by executing the Revocation form attached hereto as
Exhibit B. To be effective, the signed Revocation form must be received by Douglas J.
Reich, General Counsel of Company, within the 7-day revocation period (the “Revocation Period”).
This Agreement shall not become effective or enforceable until the Revocation Period has expired.

13. Independent Counsel. Executive acknowledges that he has been advised to consult
with an attorney of his choosing before executing this Agreement and that he has done so.

14. Payroll Taxes. Any amounts due pursuant to this Agreement will be subject to all
applicable federal, social security and state payroll withholding taxes.

15. Governing Law. This Agreement is to be construed and interpreted in accordance
with the laws of the State of Arizona, except as those laws may be preempted by federal law.

16. Severability. If any part or parts of this Agreement are found to be
unenforceable, the remaining portions of the Agreement shall remain in full force and effect.

17. Entire Agreement. Executive represents that he has carefully read and fully
understands all of the provisions of this Agreement, which sets forth the entire agreement between
Company and Executive with regard to Executive’s employment with Company and the termination of the
relationship between Executive and Company. Executive acknowledges that he has not relied upon any
representation made by Company or any representative of Company, except as set forth in this
Agreement.

18. Impact on Other Agreements. Following the execution of this Agreement, all
agreements, including but not limited to the Employment Agreement, previously entered into between
Executive and Company relating to Executive’s employment by and services to Company are terminated
other than the following: (a) this Agreement; (b) the Hypercom Employee Non-Disclosure Agreement;
(c) the payments and benefits provided in Section 10 of the Employment Agreement; (d) the Covenant
Not to Compete contained in Section 13 of the Employment Agreement; (e) the Indemnification
Agreement; (f) Executive’s rights under insurance policies providing Executive benefits, including
but not limited to, Directors and Officers and Errors and Omissions insurance policies; (g) any
option agreement or restricted stock agreement entered into between Company and Executive pursuant
to the Hypercom Corporation Long-Term Incentive Plan or any other plan or program pursuant to which
Executive may have been granted options or restricted shares in the past, except as modified by
this Agreement.

In witness whereof, Executive has executed this Agreement and Company has caused this
Agreement to be executed by its duly authorized officer, on this 22nd day of February, 2008.

HYPERCOM CORPORATION

By /s/ Norman Stout

Norman Stout, Chairman of the Board

/s/ Thomas Liguori

Thomas Liguori

1

EXHIBIT A

EMPLOYMENT AGREEMENT

	 	 	 	 	 
	July 11, 2007
Mr. Thomas Liguori
Hypercom Corporation
	 	 	 	 
	2851 West Kathleen Road

	Phoenix, Arizona 85053

	Re:
	 	Amended and Restated Employment Agreement

Dear Tom:

On October 6, 2005, you executed a letter agreement constituting an offer of employment and
your employment agreement (“Offer of Employment Agreement”) with Hypercom Corporation (“Hypercom”
or the “Company”). Hypercom wishes to amend, replace and supersede your Offer of Employment
Agreement with this employment agreement (the “Agreement”) which will become effective upon
execution by you and Hypercom (the “Effective Date”).

1. Position with the Company. You will continue to serve as Senior Vice President and
Chief Financial Officer of the Company. You may be called upon to serve in other capacities from
time-to-time during your tenure with the Company. You will faithfully and diligently perform all
duties commensurate with these positions, including those duties directed by the Company’s Chief
Executive Officer (“CEO”) to whom you will report directly.

	 	2.	 	Compensation. You will receive the following compensation for your services:

	 	(a)	 	You will receive a minimum base salary of $315,000 per year, which may
be increased, but not decreased, at the discretion of the Company (the “Base
Salary”). The Base Salary will be paid in equal installments in accordance with
the Company’s salary payment policies as in effect from time to time, and such
salary payments will be subject to the usual withholding for income tax and other
customary deductions.

	 	(b)	 	Your target annual bonus compensation shall be one hundred percent
(100%) of your then-current Base Salary for each year during the term of your
employment, if the Company achieves the annual Performance Goals as solely
determined by the Board; provided that you may be entitled to receive annual bonus
compensation in an aggregate amount up to one hundred and fifty percent (150%) of
your then-current Base Salary for each year during the term of your employment if
the Board deems it consistent with the achievement of the Performance Goals for
such year. The Performance Goals, and the percentage of bonus compensation tied to
each, will be specifically defined by the Board in its sole discretion, but will
likely include some or all of the following: revenue growth, gross margin, earnings
per share, market share growth and development of the organization (the
“Performance Goals”). The determination as to whether the Company has
achieved the Performance Goals will be made by the Board in its sole and reasonable
discretion, and the bonus will be paid to you within five (5) business days
following such determination.

	 	(c)	 	Effective upon execution of your Offer of Employment Agreement, the
Board granted to you an option for the purchase of one hundred thousand (100,000)
            shares of common stock of the Company (the “Option”) pursuant to the Company’s
Long-Term Incentive Plan with a per share exercise price equal to the closing
market price of a share of common stock on the date of grant. The Option vests in
1/3 increments on the first, second and third anniversaries of the date of grant.

	 	(d)	 	Effective upon your execution of your Offer of Employment Agreement,
the Board also granted to you fifty thousand (50,000) shares of restricted common
stock of the Company pursuant to the Long-Term Incentive Plan, restricted by
achievement of the Performance Goals to be established by the Board for fiscal
years 2006 and 2007, as follows: (i) fifty percent (50%) of the restricted common
stock, or twenty-five thousand (25,000) shares of common stock, were to vest based
upon substantial achievement of 2006 Performance Goals as determined by the Board
and (ii) the remaining fifty percent (50%) of the restricted common stock, or
twenty-five thousand (25,000) shares of common stock, will vest based upon
substantial achievement of 2007 Performance Goals as determined by the Board. The
Board determined that you did not substantially achieve the 2006 Performance Goals
and therefore you forfeited the twenty-five thousand (25,000) shares of restricted
stock referenced in clause (i) above. If the Board, in its review of the
Performance Goals, determines that you achieved a personal rating of one hundred
percent (100%) or higher in fiscal year 2007, the remaining twenty-five thousand
(25,000) shares of restricted common stock granted pursuant to this subsection (d)
shall vest. If the 2007 Performance Goals are not fully and completely achieved,
the proportion of the remaining twenty-five thousand (25,000) shares of restricted
common stock which shall vest pursuant to this subsection 2(d) shall be determined
in the Board’s sole discretion taking into account the Performance Goals achieved
for such year, in both quantitative and qualitative degree. The Company will also
provide to you a Gross-up Payment in connection with the restricted common stock
grant (but not on the cash so paid) pursuant to this subsection 2(d).

	 	(e)	 	You will be eligible, but not entitled, to receive additional grants of
stock options and restricted capital stock of the Company in such quantities and
subject to such conditions as the Board may determine in its sole and absolute
discretion.

	 	(f)	 	You covenant and agree that, as soon as practicable but in no event
more than three (3) years from the date of your Offer of Employment Agreement, you
will beneficially own, hold and retain shares of common stock of the Company equal
in value to your Base Salary for such given year (the “Minimum Ownership”);
provided, however, that this covenant shall not be construed to require you to
purchase shares of the Company’s common stock on the open market for the sole
purpose of achieving the Minimum Ownership. You also covenant and agree that you
will not sell or dispose of, or cause anyone else to sell or dispose of, any common
stock of the Company that you have received (i) as a result of this Agreement or
(ii) pursuant to any other Company compensation program, until and unless you have
achieved (and will continue to maintain following such sale or disposition) the
Minimum Ownership.

	 	(g)	 	You may participate in any incentive compensation plan, pension or
profit sharing plan, stock purchase plan, group benefit plan, medical plan, bonus
plan and/or other benefit plans, either currently in effect or as may be
established from time to time by the Board, for which you as an officer of the
Company are eligible to participate. You acknowledge that you will not be entitled
to any benefits under any discretionary plan unless actually provided to you in
accordance with such plan.

	 	(h)	 	You will be eligible, but not entitled, to receive such other
compensation as may from time to time be granted to you by the Board in its sole
and absolute discretion, including additional bonuses approved by the Board or the
Board’s Compensation Committee.

	 	(i)	 	You will be permitted to take vacations and sick leave, in accordance
with the Company’s policies and procedures as in effect for officers of the
Company.

	 	3.	 	Benefits and Employment Matters. The Company offers a comprehensive array of
employee benefit programs. Currently those programs include paid time off (“PTO”),
medical, dental and vision care, paid holidays, disability insurance, life insurance,
travel accident insurance, 401(k) Plan, Employee Stock Purchase Plan and tuition
reimbursement. Details of these programs have been provided to you by the Company. You
will accrue 19 days of PTO per year during your first through fifth year of employment.
After your fifth year, you will accrue an additional week for a total of 24 PTO days per
year. Please see the Hypercom PTO policy for details regarding this benefit. The Company
reserves the right to modify, suspend or terminate its benefit programs in its sole
discretion.

	 	4.	 	Business Expenses. The Company will pay or reimburse you for all ordinary and
necessary business expenses incurred or paid by you in furtherance of the Company’s
business, in accordance with the Company’s policies and procedures.

	 	5.	 	Moving Expenses. The Company provided to you a full executive moving package as
set forth in the October 2, 2005 letter regarding your Executive Moving Package. If you
resign from employment with the Company without Good Reason as provided in Section 8 at any
time within 18 months of the date of reimbursement for the move, you must reimburse the
Company the full amount of the moving package provided to you by the Company. You will not
be required to reimburse the Company for the moving package described herein if your
employment with the Company terminates for the reasons set forth in Sections 9, 10, 11 or
15.

	 	6.	 	Employment at Will. You acknowledge and agree that the Company will employ you
as an “at will employee.” This means that either you or Hypercom can terminate our
employment relationship at any time for any reason or no reason. In the event that your
employment is terminated either by you or the Company, you will be entitled to receive only
that compensation due to you through the date of your resignation or termination, the
severance and other benefits provided pursuant to this Agreement and any other benefits
required by law.

	 	7.	 	Termination for Cause.

	 	(a)	 	The Company may terminate you for Cause, as defined below. Upon
termination for Cause, you will be entitled to receive only that compensation due
to you through the date of termination.

	 	(b)	 	For purposes of this Agreement, “Cause” means if the Board, in
its reasonable and good faith discretion, determines that you (i) have developed or
pursued interests substantially adverse to the Company, (ii) have materially
breached any employment or confidentiality agreement, (iii) have not devoted a
majority of your business time, effort and attention to the affairs of the Company
(or such lesser amount as has been agreed to in writing by the Company), (iv) are
charged by any governmental entity with any felony (excluding traffic violations)
that is reasonably determined by the Board to be true and to adversely reflect upon
the Company’s standing in the community, or (v) have engaged in gross misconduct or
other material omissions that are significantly detrimental to the well-being of
the Company.

	 	8.	 	Termination by You Without Good Reason.

	 	(a)	 	In the event that you terminate your employment with the Company
voluntarily and without Good Reason, you will be entitled to receive only that
compensation due to you through the date of such termination.

	 	(b)	 	Following your termination from employment without Good Reason, the
Company will make COBRA benefits available, at your expense, to you, your spouse
and your dependents covered by the Company’s group health plan at the time of
termination, in accordance with applicable law.

	 	9.	 	Termination due to Death.

	 	(a)	 	In the event that your employment with the Company terminates as a
result of your death, your beneficiary will be entitled to receive only that
compensation due to you through the date of your death.

	 	(b)	 	For a period of twelve (12) months from the date your employment with
the Company terminates as a result of your death, the Company will pay for the
COBRA benefits available to your spouse and your dependents covered by the
Company’s group health plan at the time of termination.

	 	10.	 	Termination By You After New CEO Selected.

	 	(a)	 	As of the Effective Date of this Agreement, the Company is in the
process of selecting a new CEO to succeed William Keiper. If you continue
employment with the Company through the date on which the new CEO succeeds Mr.
Keiper as the CEO of the Company, and if you then decide to terminate your
employment with the Company at any time during the “trial period,” the Company will
provide you with the separation payments and benefits described in this Section.
For the purpose of this Section, the “trial period” begins on the day on which the
new CEO succeeds Mr. Keiper as the CEO of the Company and ends on the 4-month
anniversary of this date. To receive the separation payments and benefits
described in this Section, you must continue to be employed by the Company until
the beginning of the trial period and execute the release required by Section 21 of
this Agreement. You will not be entitled to any separation payment or benefits
under this Section if the Company terminates your employment for Cause or has
reason to terminate your employment for Cause prior to or during the trial period.

	 	(b)	 	The separation payments and benefits to which you will be entitled
consist of the following:

i. Payment equal to one (1) year of your then-current Base Salary in
a lump sum upon the effectiveness of the release contemplated by
Section 21.

ii. For a period of eighteen (18) months from the date of your
termination, the Company will pay for the COBRA benefits available to
you, your spouse and your dependents covered by the Company’s group
health plan at the time of termination. For purposes of this
Agreement, the date of your termination pursuant to this Section
shall be the date specified in a written notice of resignation.

iii. A relocation allowance in an amount equal to 50% of your
then-current Base Salary. Such relocation allowance will be paid to
you in a lump sum upon the effectiveness of the release contemplated
under Section 21.

iv. All outstanding stock options granted to you pursuant to Section
2(c) or otherwise, under all of the Company’s stock plans, to the
extent not already vested, will vest upon the effective date of your
termination.

v. The twenty-five thousand (25,000) shares of restricted stock
granted to pursuant to Section 2(d) that are subject to restrictions
based on your attainment of the 2007 Performance Goals will become
unrestricted.

	 	(c)	 	The lump sum separation payment and the relocation allowance described
in clauses (i) and (iii) above are considered “non-qualified deferred compensation”
subject to Section 409A of the Internal Revenue Code of 1986 (“Section 409A”). The
Company has determined, as a preliminary matter, that there is no applicable
exception to Section 409A. As a result, because you are a “specified employee”
under Section 409A and the lump sum separation payment and relocation allowance are
payable upon your termination of employment with the Company, Section 409A imposes
an additional 20% tax (plus interest) on these payments unless they are paid at
least six months following your termination of employment. At the time of your
termination pursuant to this Section 10, the Company will reconsider this
preliminary conclusion based on the guidance available at that time. If the
Company concludes that there is no applicable exception to the requirements of
Section 409A, the Company will pay to you the amount of your lump sum separation
payment and relocation allowance, should you become entitled to them, plus simple
interest at 6% per annum, on the first day of the seventh month following the
effective date of your termination of employment with the Company.

	 	11.	 	Termination by the Company Other than for Cause or by You for Good Reason.

	 	(a)	 	In the event that you are terminated by the Company without Cause or
you terminate your employment for Good Reason, you will be entitled to an amount
equal to one (1) year of your then-current Base Salary, to be paid in the form of
salary continuation at the normal payroll intervals of the Company.

	 	(b)	 	The separation payment provided by paragraph (a) is considered
“non-qualified deferred compensation” that is subject to Section 409A. The Company
has determined, as a preliminary matter, that the separation payment does not
qualify for the separation pay exception or any other exception to the requirements
of Section 409A. At the time of your termination pursuant to this Section 11, the
Company will reconsider this preliminary conclusion based on the guidance available
at that time. If the Company concludes at this time that there is no applicable
exception to the requirements of Section 409A, and that the payments must be
postponed for six months following your termination of employment in order to avoid
the imposition of the additional 20% tax (plus interest), as described in Section
10(c), your payments will be postponed. The amount that would have been payable to
you during the first six months following your termination of employment with the
Company, plus simple interest at 6% per annum, will be paid to you on the first day
of the seventh month following the effective date of your termination of employment
with the Company.

	 	(c)	 	For a period of twelve (12) months from the date of your termination
without Cause or your resignation for Good Reason, the Company will pay for the
COBRA benefits available to you, your spouse and your dependents covered by the
Company’s group health plan at the time of termination. For purposes of this
Agreement, the date of termination of employment without Cause or resignation for
Good Reason shall be the date specified in a written notice of termination or
resignation.

	 	12.	 	Exercise of Options upon Termination.

	 	(a)	 	In the event that you terminate your employment with the Company
voluntarily and without Good Reason pursuant to Section 8 or due to your death
under Section 9, you, or your beneficiary, as the case may be, will have the right
to exercise any options to purchase common stock of the Company, granted pursuant
to Section 2(c) above or otherwise, that are vested as of the date of such
termination for a period of ninety (90) days from the date of your voluntary
termination or death, as the case may be. Any options that are not vested as of
the date of your termination or death will lapse and will no longer be exercisable.

	 	(b)	 	In the event that you are terminated by the Company without Cause or
you terminate your employment for Good Reason pursuant to Section 11 or in the
event you are terminated by the Company without Cause or resign for Good Reason
following a Change of Control pursuant to Section 15, you will have the right to
exercise any options to purchase common stock of the Company, granted pursuant to
Section 2(c) above or otherwise, that are vested as of the date of such termination
for a period of one hundred eighty (180) days from the date of your termination by
the Company or resignation for Good Reason, as the case may be. Any options that
are not vested as of the date of your termination or resignation will lapse and
will no longer be exercisable.

	 	(c)	 	The provisions of this Section 12 override and supersede any contrary
provisions included in any Option Agreement and, to that extent, this Agreement
shall be deemed to be an amendment to such Option Agreement; provided however, that
the provisions of this Section 12 shall not extend the exercise period for any
option beyond the date on which the option expires under the terms of the
applicable Option Agreement.

	 	13.	 	Covenant Not to Compete. You agree that, during the “Restriction Period” and
in the “Restricted Area,” you will not, without the prior written consent of the Company,
directly or indirectly, for your own benefit or for, with or through any other individual,
firm, corporation, partnership or other entity, whether acting in an individual, fiduciary
or other capacity, own, manage, operate, control, advise, invest in (except as a 1% or less
shareholder of a public company), loan money to, or participate or assist in the ownership,
management, operation or control of or be associated as a director, officer, employee,
partner, consultant, advisor, creditor, agent, independent contractor or otherwise with, or
acquiesce in the use of your name by, any business enterprise that is in direct competition
with the Company or any subsidiary.

In addition to the foregoing, at all times during the Restriction Period, you will not,
directly or indirectly (as described above), for your benefit or for, with or through any
business enterprise, hire, employ, solicit, or otherwise encourage or entice any of the
Company’s (or subsidiary’s) employees or consultants to leave or terminate their employment
with the Company.

For this purpose, the “Restricted Area” means any country in the world in which Company
currently conducts business. If a court of competent jurisdiction determines that this is a
larger area than necessary to protect the Company’s business interests, the parties agree
that the Restricted Area will be the largest of the following areas that the court
determines to be reasonable: the United States of America, the states of Arizona and
California, the 100-mile radius of the office maintained by the Company where you spent most
of your time while employed by the Company pursuant to this Agreement, the 50-mile radius of
the office maintained by the Company where you spent most of your time while employed by the
Company pursuant to this Agreement, the 25-mile radius of the office maintained by the
Company where you spent most of your time while employed by the Company pursuant to this
Agreement, or the 10-mile radius of the office maintained by the Company where you spent
most of your time while employed by the Company pursuant to this Agreement.

For this purpose, the “Restriction Period” begins on the Effective Date and ends at the
end of the 12th month following the termination of your employment with the Company for any
reason (or, if later, upon conclusion of your services as a consultant), or if a court of
competent jurisdiction concludes that 12 months is longer than necessary to protect the
Company’s business interests, then the parties agree that the restriction period will end at
the end of the longest of the following number of months that the court determines to be
reasonable: 9, 8, 7, 6, 5, 4, 3, 2 or 1.

You and the Company consider the restrictions contained in this Section 13 to be
reasonable for the purpose of preserving the Company’s rights and interests. You acknowledge
and agree that the Company’s remedies at law for breach or threatened breach of any of the
provisions of this Section 13 would be inadequate. Therefore, you agree that in the event
of a breach or threatened breach by you of the provisions in this Section 13, the Company
will be entitled to, in addition to its remedies at law and without posting any bond,
equitable relief in the form of specific performance, a temporary restraining order, a
temporary or permanent injunction, or any other equitable remedy that may then be available.
You further agree that you will not oppose the Company’s request for such equitable relief.

	 	14.	 	Confidential Information and Non-Disclosure. You acknowledge and agree that
you have executed and continue to be bound by the terms of the Hypercom Employee
Non-Disclosure Agreement dated October 6, 2005.

	 	15.	 	Resignation Following Change of Control.

	 	(a)	 	If, during the twelve (12) month period following a Change of
Control, as defined in the Definition section attached hereto, you resign for Good
Reason or the Company terminates your employment for any reason other than for
“Cause,” you will receive the following:

i. Payment equal to one (1) year of your then-current Base Salary in
a lump sum upon effectiveness of the release contemplated by Section
21.

ii. For a period of eighteen (18) months from the date of your
termination, the Company will pay for the COBRA benefits available to
you, your spouse and your dependents covered by the Company’s group
health plan at the time of termination. For purposes of this
Agreement, the date of your termination pursuant to this Section
shall be the date specified in a written notice of resignation or
termination, as applicable.

iii. A relocation allowance in an amount equal to 50% of your
then-current Base Salary if you became an employee of the Company
less than 24 months before the date of your termination of employment
pursuant to this Section. Such relocation allowance will be paid to
you in a lump sum upon the effectiveness of the release contemplated
under Section 21.

iv. All outstanding stock options granted to you pursuant to Section
2(c), or otherwise, under all of the Company’s stock plans, to the
extent not already vested, will vest upon the effective date of your
termination pursuant to this Section.

v. All future restricted stock awards granted to you under all of the
Company’s stock plans, to the extent not already unrestricted, will
become unrestricted upon the effective date of your termination
pursuant to this Section.

vi. All of the twenty-five thousand (25,000) shares of performance
based restricted stock granted to pursuant to Section 2(d) which are
subject to restrictions based on your attainment of the 2007
Performance Goals, and any other performance based restricted stock
awards (other than the twenty-five thousand (25,000) shares of
restricted stock that you forfeited as a result of failure to
substantially achieve the 2006 Performance Goals as described in
Section 2(d)) granted to you under all of the Company’s stock plans,
to the extent not already unrestricted, will become unrestricted upon
the effective date of your termination pursuant to this Section. The
Company will make tax gross up payments as applicable.

	 	(b)	 	The separation payment and relocation allowance described in clauses
(i) and (iii) above are considered “non-qualified deferred compensation” subject to
Section 409A. The Company has determined, as a preliminary matter, that these
payments do not qualify for the separation pay exception or any other exception to
the requirements of Section 409A. At the time of your termination pursuant to this
Section 15, the Company will reconsider this preliminary conclusion based on the
guidance available at that time. If the Company concludes at this time that there
is no applicable exception to the requirements of Section 409A, and that the
payments must be postponed for six months following your termination of employment
in order to avoid the imposition of the additional 20% tax (plus interest), as
described in Section 10(c), your payments will be postponed. The Company will pay
to you the amount of your lump sum separation payment and relocation allowance,
plus simple interest at 6% per annum, on the first day of the seventh month
following the effective date of your termination of employment with the Company.

	 	16.	 	Personal Rights and Obligations. This Agreement and all rights and obligations
hereunder are personal and will not be assignable by either you or the Company except as
provided in this Section 16, and any purported assignment in violation thereof will be null
and void. Any person, firm or corporation succeeding to the business of the Company by
merger, consolidation, purchase of assets or otherwise will assume by contract or operation
of law the obligations of the Company hereunder and in such a case you will continue to
honor this Agreement with such business substituted for the Company as the employer.

	 	17.	 	Notices. Any notice, election or communication to be given under this Letter
will be in writing and delivered in person or deposited, certified or registered, in the
United States mail, postage prepaid, addressed as follows:

2

If to the Company:

Hypercom Corporation

2851 West Kathleen Road

Phoenix, Arizona 85053

Attn: General Counsel

If to you:

Thomas Liguori

Hypercom Corporation

2851 West Kathleen Road

Phoenix, Arizona 85053

or to such other addresses as the Company or you may from time to time designate by
notice hereunder. Notices will be effective upon delivery in person or upon receipt of any
facsimile or e-mail, or at midnight on the fourth business day after the date of mailing, if
mailed.

	 	18.	 	Entirety. Except for the Hypercom Employee Non-Disclosure Agreement, the
Indemnification Agreement between you and the Company, any other confidentiality agreement,
option awards, restricted stock awards or the Company’s policies and procedures to which
you are subject, this Agreement constitutes and embodies the full and complete
understanding and agreement of the Company and you with respect to your employment by the
Company and supersedes all prior understandings or agreements whether oral or in writing.
This Agreement may be amended only by a writing signed by you and the Company. This
Agreement may be executed in any number of counterparts, each of which will be considered a
duplicate original.

	 	19.	 	Arbitration. Any controversy relating to this Agreement or relating to the
breach hereof will be settled by arbitration conducted in Phoenix, Arizona in accordance
with the Commercial Arbitration Rules of the American Arbitration Association then in
effect. The award rendered by the arbitrator(s) will be final and judgment upon the award
rendered by the arbitrator(s) may be entered upon it in any court having jurisdiction
thereof. The arbitrator(s) will possess the powers to issue mandatory orders and
restraining orders in connection with such arbitration. The expenses of the arbitration
will be borne by the losing party unless otherwise allocated by the arbitrator(s). This
Agreement to arbitrate will be specifically enforceable under the prevailing arbitration
law. During the continuance of any arbitration proceedings, the parties will continue to
perform their respective obligations under this Agreement. Nothing in this Agreement will
preclude the Company or any affiliate or successor from seeking equitable relief, including
injunction or specific performance, in any court having jurisdiction, in connection with
the non-compete provisions herein and any obligations of confidentiality.

	 	20.	 	Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the State of Arizona, without regard to conflict of laws
principles.

	 	21.	 	Withholding and Release. You acknowledge and agree that payments made to you
hereunder may be subject to withholding. You further acknowledge and agree that payment of
any of the benefits to be provided to you under this Agreement following any termination of
your employment is subject to your compliance with any reasonable and lawful policies or
procedures of the Company relating to employee severances, including the execution and
delivery by you of a release reasonably satisfactory to the Company of any and all claims
that you may have against the Company or related persons, except for (i) the continuing
obligations provided herein, and (ii) for any continuing obligations of indemnification due
to you as an officer or director (or a former officer or director).

	 	22.	 	No Elections. You do not have any right to make any election regarding the
time or form of any payment due under this Agreement.

	 	23.	 	Compliant Operation and Interpretation. This Agreement shall be operated in
compliance with Section 409A and each provision of this Agreement shall be interpreted, to
the extent possible, to comply with Section 409A.

	 	24.	 	Miscellaneous Payment Provision. If payment of any amount under this Agreement
is not made, in whole or in part, due to a dispute between you and the Company, the payment
shall be made in accordance with Treas. Reg. § 1.409A-3(g), as applicable.

Very Truly Yours,

/s/Daniel Diethelm

Chairman of the Board

ACCEPTED AND AGREED:

/s/ Thomas Liguori

Thomas Liguori

Date: July 11, 2007

3

Definitions

“Change of Control” means and includes each of the following:

(1) there shall be consummated any consolidation or merger of the Company in which the Company
is not the continuing or surviving entity, or pursuant to which common stock would be converted
into cash, securities or other property, other than a merger of the Company in which the holders of
the Company’s common stock immediately prior to the merger have at least 80% ownership of
beneficial interest of common stock or other voting securities of the surviving entity immediately
after the merger;

(2) there shall be consummated any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of assets or earning power aggregating more than 40% of the
assets or earning power of the Company and its subsidiaries (taken as a whole), other than pursuant
to a sale-leaseback, structured finance or other form of financing transaction;

(3) the stockholders of the Company shall approve any plan or proposal for liquidation or
dissolution of the Company; or

(4) during any period of two consecutive years, individuals who at the beginning of such
period constituted a majority of the Board shall fail to constitute a majority thereof, unless the
election, or the nomination for election by the Company’s stockholders, of each new director was
approved by a vote of at least two-thirds of the directors then still in office who were directors
at the beginning of the period.

“Good Reason” means a termination of your employment within one hundred twenty (120)
days following the occurrence of one or more of the following circumstances without your consent:

(1) a material diminution in your authority, duties or responsibilities;

(2) a material diminution in your base compensation; or

(3) a material change in the geographic location of your principal office.

You must provide written notice to the Company of the existence of the Good Reason condition
described in paragraphs (1)–(3) above within ninety (90) days of the initial existence of the
condition. Notwithstanding anything to the contrary, an event described in paragraphs (1)-(3)
above will not constitute Good Reason if, within thirty (30) days after you give the Company notice
of the occurrence or existence of an event that you believe constitutes Good Reason, the Company
has fully corrected such event.

“Termination of Employment” means any termination of your employment or separation
from service with the Company as defined in Treas. Reg. § 1.409A-1(h).

4

EXHIBIT B

REVOCATION

I hereby revoke my acceptance of the foregoing Agreement within seven (7) days of my initial
execution of the Agreement. I acknowledge that by revoking this Agreement it is no longer
effective or enforceable and I will not receive any benefits described in the Agreement.

Employee

Date

5

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