Document:

Exhibit 10.16

 

INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT is made and entered into
this 15th day of March, 2005 (“Agreement”), by and between VeriFone Holdings,
Inc., a Delaware corporation (the “Company”), and [             ]
(“Indemnitee”).

 

WHEREAS,
at the request of the Company, Indemnitee currently serves or has been asked to
serve as a director of the Company and may, therefore, be subjected to claims,
suits or proceedings arising as a result of his service; and

 

WHEREAS,
as an inducement to Indemnitee to serve or to continue to serve as a director,
the Company has agreed to indemnify and to advance expenses and costs incurred
by Indemnitee in connection with any such claims, suits or proceedings, to the
maximum extent permitted by law; and

 

WHEREAS,
the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses;

 

NOW,
THEREFORE, in consideration of the premises and the
covenants contained herein, the Company and Indemnitee do hereby covenant and
agree as follows:

 

Section 1.               Definitions.  For purposes of this Agreement:

 

(a) “Change in Control” means a change in
control of the Company occurring after the Effective Date of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A (or in response to any similar item on any similar schedule or
form) promulgated under the Securities Exchange Act of 1934, as amended (the “Act”),
whether or not the Company is then subject to such reporting requirement;
provided, however, that, without limitation, such a Change in Control shall be
deemed to have occurred if after the Effective Date (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of
securities of the Company representing 15% or more of the combined voting power
of the Company’s then outstanding securities without the prior approval of at
least two-thirds of the members of the Board of Directors in office immediately
prior to such person attaining such percentage interest; (ii) there occurs a
proxy contest, or the Company is a party to a merger, consolidation, sale of
assets, plan of liquidation or other reorganization not approved by at least
two-thirds of the members of the Board of Directors then in office, as a
consequence of which members of the Board of Directors in office immediately
prior to such transaction or event constitute less than a majority of the Board
of Directors thereafter; or (iii) during any period of two consecutive years,
other than as a result of an event described in clause (a)(ii) of this Section 1,
individuals who at the beginning of such period constituted the Board of
Directors (including for this purpose any new director whose election or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who were directors at
the beginning of such period) cease for any reason to constitute at least a
majority of the Board of Directors.

 

 

(b) “Corporate Status” means the status of a
person who is or was a director, trustee, officer, employee or agent of the
Company or of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise (each, an “Enterprise”) for which
such person is or was serving at the request of the Company.

 

(c) “Disinterested Director” means a
director of the Company who is not and was not a party to the Proceeding in respect
of which indemnification or advance of Expenses is sought by Indemnitee.

 

(d) “Effective Date” means the date set
forth in the first paragraph of this Agreement.

 

(e) “Expenses” shall include all reasonable
and out-of-pocket attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, or
being or preparing to be a witness in a Proceeding.  Expenses shall also include Expenses incurred
in connection with any appeal resulting from any Proceeding, including without
limitation the premiums, security for, and other costs relating to any cost
bond, supersedeas bond or other appeal bond or its equivalent.

 

(f) “Independent Counsel” means a law firm,
or a member of a law firm, that is experienced in matters of corporation law
and neither is, nor in the past five years has been, retained to
represent:  (i) the Company or Indemnitee
in any matter material to either such party (other than with respect to matters
concerning Indemnitee under this Agreement or of other indemnitees under
similar agreements), or (ii) any other party to or witness in the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company or Indemnitee in an
action to determine Indemnitee’s rights under this Agreement.  If a Change of Control has not occurred,
Independent Counsel shall be selected by the Board of Directors, with the
approval of Indemnitee, which approval will not be unreasonably withheld.  If a Change of Control has occurred,
Independent Counsel shall be selected by Indemnitee.

 

(g) “Proceeding” includes any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding,
whether civil, criminal, administrative or investigative (including on appeal),
except one pending or completed on or before the Effective Date, unless
otherwise specifically agreed in writing by the Company and Indemnitee.

 

(h) Reference to “fines” shall include any excise tax
assessed with respect to any employee benefit plan; references to “serving at
the request of the Company” shall include any service as an officer, director,
committee member or official which imposes duties on, or involves services by,
such officer, with respect to an employee benefit plan, its participants or
beneficiaries; and action taken or omitted to be taken by Indemnitee with
respect to an employer benefit plan in the performance of Indemnitee’s duties
for a purpose reasonably believed to be in the best interests of the
participants and

 

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beneficiaries of an employee benefit plan
shall be deemed to be a purpose that is” “not opposed to the best interests of
the Company” as referred to in this Agreement.

 

Section 2.               Services by
Indemnitee.  Indemnitee will serve as a director of the
Company; however, this Agreement shall not impose any obligation on Indemnitee
or the Company to continue Indemnitee’s service to the Company beyond any
period otherwise required by law or by other agreements or commitments of the
parties, if any, provided that this Agreement shall continue in force after
such time as Indemnitee has ceased to serve as a director of the Company and
Indemnitee will retain all rights provided under this Agreement after such
time.

 

Section 3.               Indemnification
- General.  The Company shall indemnify, and advance
Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to
the maximum extent permitted by Delaware law in effect on the date hereof and
as amended from time to time; provided, however, that no change in Delaware law
shall have the effect of reducing the benefits available to Indemnitee
hereunder based on Delaware law as in effect on the date hereof.  The rights of Indemnitee provided in this Section 3
shall include, without limitation, the rights set forth in the other sections
of this Agreement, including any additional indemnification permitted by Section 145
of the Delaware General Corporation Law (“DGCL”), the charter or bylaws of the
Company, a resolution of stockholders or directors, another agreement or
otherwise.

 

Section 4.               Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of
indemnification provided in this Section 4 if, by reason of his Corporate Status,
he is, or is threatened to be, made a party to or a witness in any threatened,
pending, or completed Proceeding, other than a Proceeding by or in the right of
the Company.  Pursuant to this Section 4,
Indemnitee shall be indemnified against all judgments, penalties, fines and
amounts paid in settlement and all Expenses actually and reasonably incurred by
him or on his behalf in connection with a Proceeding by reason of his Corporate
Status unless it is established that (i) the act or omission of Indemnitee was
material to the matter giving rise to the Proceeding and (a) was committed in
bad faith or (b) was the result of active and deliberate dishonesty, (ii)
Indemnitee actually received an improper personal benefit in money, property or
services, or (iii) in the case of any criminal Proceeding, Indemnitee had
reasonable cause to believe that his conduct was unlawful.

 

Section 5.               Proceedings by
or in the Right of the Company.  Indemnitee shall be
entitled to the rights of indemnification provided in this Section 5 if,
by reason of his Corporate Status, he is, or is threatened to be, made a party
to or a witness in any threatened, pending or completed Proceeding brought by
or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 5, Indemnitee
shall be indemnified against all amounts paid in settlement and all Expenses
actually and reasonably incurred by him or on his behalf in connection with
such Proceeding unless it is established that (i) the act or omission of Indemnitee
was material to the matter giving rise to such a Proceeding and (a) was
committed in bad faith or (b) was the result of active and deliberate
dishonesty or (ii) Indemnitee actually received an improper personal benefit in
money, property or services.

 

Section 6.               Court-Ordered
Indemnification.  Notwithstanding any other provision of this
Agreement, a court of appropriate jurisdiction, upon application of Indemnitee
and such notice as the court shall require, may order indemnification in the
following circumstances:

 

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(a) if it determines
Indemnitee is entitled to reimbursement under Section 145 of the DGCL, the
court shall order indemnification, in which case Indemnitee shall be entitled
to recover the expenses of securing such reimbursement; or

 

(b) if it determines
that Indemnitee is fairly and reasonably entitled to indemnification in view of
all the relevant circumstances, whether or not Indemnitee has met the standards
of conduct set forth in Section 145 of the DGCL, the court may order such
indemnification as the court shall deem proper. 
However, indemnification with respect to any Proceeding by or in the
right of the Company or in which liability shall have been adjudged in the
circumstances described in Section 145 of the DGCL shall be limited to
Expenses incurred by him or on his behalf in connection with a Proceeding.

 

Section 7.               Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this
Agreement, and without limiting any such provision, to the extent that
Indemnitee is, by reason of his Corporate Status, made a party to and is
successful, on the merits or otherwise, in the defense of any Proceeding, he
shall be indemnified for all Expenses actually and reasonably incurred by him
or on his behalf in connection therewith. 
If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee under this Section 7 for all Expenses actually and reasonably
incurred by him or on his behalf in connection with each successfully resolved
claim, issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

 

Section 8.               Advance of
Expenses.  Notwithstanding any provision herein to the
contrary, the Company shall advance all Expenses actually and reasonably
incurred by or on behalf of Indemnitee in connection with any Proceeding (other
than a Proceeding brought to enforce indemnification under this Agreement,
applicable law, the Charter or Bylaws of the Company, any agreement or a
resolution of the stockholders entitled to vote generally in the election of
directors or of the Board of Directors) to which Indemnitee is, or is
threatened to be, made a party or a witness, within ten days after the receipt
by the Company of a statement or statements from Indemnitee requesting such
advance or advances from time to time, whether prior to or after final
disposition of such Proceeding.  Such
statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee and shall include or be preceded or accompanied by a written
affirmation by Indemnitee of Indemnitee’s good faith belief that the standard
of conduct necessary for indemnification by the Company as authorized by law
and by this Agreement has been met and a written undertaking by or on behalf of
Indemnitee, in such form as the Company may from time to time reasonably
require or as may be required under applicable law as in effect at the time of
the execution thereof, to reimburse the portion of any Expenses advanced to
Indemnitee relating to claims, issues or matters in the Proceeding as to which
it shall ultimately be established that the standard of conduct has not been
met.  To the extent that Expenses
advanced to Indemnitee do not relate to a specific claim, issue or matter in
the Proceeding, such Expenses shall be allocated on a reasonable and
proportionate basis.  The undertaking
required by this Section 8 shall be an unlimited general obligation by or
on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s
financial ability to repay such advanced Expenses and without any requirement
to post security therefor.  Advances shall
be unsecured and interest free.

 

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Section 9.               Procedure for
Determination of Entitlement to Indemnification.

 

(a) To obtain
indemnification under this Agreement, Indemnitee shall submit to the Company a written
request, including therein or therewith such documentation and information as
is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification.  The omission to notify the Company will not
relieve the Company from any liability that it may have to Indemnitee other
than under this Agreement.  The Secretary
of the Company shall, promptly upon receipt of such a request for indemnification,
advise the Board of Directors in writing that Indemnitee has requested
indemnification.

 

(b) Upon written
request by Indemnitee for indemnification pursuant to the first sentence of Section 9(a)
hereof, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall promptly be made in the specific case:
(i) if a Change in Control shall have occurred, by Independent Counsel in a
written opinion to the Board of Directors, a copy of which shall be delivered
to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A) by
the Board of Directors (or a duly authorized committee thereof) by a majority
vote of a quorum consisting of Disinterested Directors (as herein defined), or
(B) if a quorum of the Board of Directors consisting of Disinterested Directors
is not obtainable or, even if obtainable, such quorum of Disinterested
Directors so directs, by Independent Counsel in a written opinion to the Board
of Directors, a copy of which shall be delivered to Indemnitee, or (C) if so
directed by a majority of the members of the Board of Directors, by the
stockholders of the Company.  If it is so
determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within ten days after such determination.  Indemnitee shall cooperate with the person,
persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or
entity upon reasonable advance request any documentation or information which is
not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination in the
discretion of the Board of Directors or Independent Counsel if retained
pursuant to clause (ii)(B) of this Section 9.  Any Expenses actually and reasonably incurred
by Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination
as to Indemnitee’s entitlement to indemnification) and the Company shall
indemnify and hold Indemnitee harmless therefrom.

 

Section 10.             Presumptions and Effect of Certain Proceedings.

 

(a) In making a
determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 9(a)
of this Agreement, and the Company shall have the burden of proof to overcome
that presumption in connection with the making of any determination contrary to
that presumption.  Neither the failure of
the Company (including by its directors or independent legal counsel) to have
made a determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or independent legal
counsel)

 

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that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

 

(b) The termination
of any Proceeding by judgment, order, settlement, conviction, a plea of nolo
contendere or its equivalent, or an entry of an order of probation prior
to judgment, does not create a presumption that Indemnitee did not meet the
requisite standard of conduct described herein for indemnification.

 

(c) Unless
Indemnitee has reason to believe otherwise, for purposes of any determination
of good faith, Indemnitee shall be deemed to have acted in good faith if
Indemnitee’s action is based on the records or books of account of the
Enterprise, including financial statements, or on information supplied to
Indemnitee by the officers of the Enterprise in the course of their duties, or
on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by
the Enterprise.  The provisions of this Section 10(d)
shall not be deemed to be exclusive or to limit in any way the other
circumstances in which the Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

 

(d) The knowledge
and/or actions, or failure to act, of any director, officer, agent or employee
of the Enterprise, excluding the Indemnitee, shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement.

 

Section 11.             Remedies of
Indemnitee.

 

(a) If (i) a
determination is made pursuant to Section 9 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii)
advance of Expenses is not timely made pursuant to Section 8 of this
Agreement, (iii) no determination of entitlement to indemnification shall have
been made pursuant to Section 9(b) of this Agreement within 30 days after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made
pursuant to Section 7 of this Agreement within ten days after receipt by
the Company of a written request therefor, or (v) payment of indemnification is
not made within ten days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication in
an appropriate court located in  the
State of Delaware, or in any other court of competent jurisdiction, of his
entitlement to such indemnification or advance of Expenses.  Alternatively, Indemnitee, at his option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to
the commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding
seeking an adjudication or an award in arbitration within 180 days following
the date on which Indemnitee first has the right to commence such proceeding
pursuant to this Section 11(a); provided, however, that the foregoing
clause shall not apply to a proceeding brought by Indemnitee to enforce his
rights under Section 7 of this Agreement.

 

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(b)           In
any judicial proceeding or arbitration commenced pursuant to this Section 11
the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advance of Expenses, as the case may be.

 

(c)           If
a determination shall have been made pursuant to Section 9(b) of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be
bound by such determination in any judicial proceeding or arbitration commenced
pursuant to this Section 11, absent a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification.

 

(d) In the event
that Indemnitee, pursuant to this Section 11, seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to
recover from the Company, and shall be indemnified by the Company for, any and
all Expenses actually and reasonably incurred by him in such judicial
adjudication or arbitration.  If it shall
be determined in such judicial adjudication or arbitration that Indemnitee is
entitled to receive part but not all of the indemnification or advance of
Expenses sought, the Expenses incurred by Indemnitee in connection with such
judicial adjudication or arbitration shall be appropriately prorated.

 

Section 12.             Defense of the
Underlying Proceeding.

 

(a) Indemnitee shall
notify the Company promptly upon being served with or receiving any summons,
citation, subpoena, complaint, indictment, information, notice, request or
other document relating to any Proceeding which may result in the right to
indemnification or the advance of Expenses hereunder; provided, however, that
the failure to give any such notice shall not disqualify Indemnitee from the
right, or otherwise affect in any manner any right of Indemnitee, to
indemnification or the advance of Expenses under this Agreement unless the
Company’s ability to defend in such Proceeding or to obtain proceeds under any
insurance policy is materially and adversely prejudiced thereby, and then only
to the extent the Company is thereby actually so prejudiced.

 

(b) Subject to the
provisions of the last sentence of this Section 12(b) and of Section 12(c)
below, the Company shall have the right to defend Indemnitee in any Proceeding
which may give rise to indemnification hereunder; provided, however, that the
Company shall notify Indemnitee of any such decision to defend within 15
calendar days following receipt of notice of any such Proceeding under Section 12(a)
above.  The Company shall not, without
the prior written consent of Indemnitee, which shall not be unreasonably
withheld or delayed, consent to the entry of any judgment against Indemnitee or
enter into any settlement or compromise which (i) includes an admission of
fault of Indemnitee or (ii) does not include, as an unconditional term thereof,
the full release of Indemnitee from all liability in respect of such
Proceeding, which release shall be in form and substance reasonably
satisfactory to Indemnitee.  This Section 12(b)
shall not apply to a Proceeding brought by Indemnitee under Section 11
above or Section 18 below.

 

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(c) Notwithstanding
the provisions of Section 12(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i)
Indemnitee reasonably concludes, based upon an opinion of counsel to
Indemnitee, that he may have separate defenses or counterclaims to assert with
respect to any issue which may not be consistent with other defendants in such
Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of
counsel to Indemnitee, that an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and the Company, or
(iii) if the Company fails to assume the defense of such Proceeding in a timely
manner, Indemnitee shall be entitled to be represented by separate legal
counsel of Indemnitee’s choice,  at the
expense of the Company.  In addition, if
the Company fails to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes any action to declare
this Agreement void or unenforceable, or institutes any Proceeding to deny or
to recover from Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s
choice, at the expense of the Company (subject to Section 11(d)), to
represent Indemnitee in connection with any such matter.

 

Section 13.             Non-Exclusivity;
Survival of Rights; Subrogation; Insurance.

 

(a) The rights of
indemnification and advance of Expenses as provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter or Bylaws of the Company, any
agreement or a resolution of the stockholders entitled to vote generally in the
election of directors or of the Board of Directors, or otherwise.  No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal.  To the extent that a change in
Delaware law, whether by statute or judicial decision, permits greater
indemnification or advancement of Expenses than would be afforded currently
under the Company’s charter or bylaws or this Agreement, except with respect to
suits against the Company relating to this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits
so afforded by such change.  No right or
remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other right or
remedy.

 

(b) In the event of
any payment under this Agreement, the Company shall be subrogated to the extent
of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such
rights, including execution of such documents as are necessary to enable the
Company to bring suit to enforce such rights.

 

(c) The Company
shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and
to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement or otherwise.

 

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(d)           Notwithstanding
any other provision of this Agreement to the contrary, the Company shall not be
liable for indemnification or advance of Expenses in connection with any
settlement or judgment for insider trading or for disgorgement of profits
pursuant to Section 16(b) of the Securities Exchange Act of 1934.

 

Section 14.             Insurance.  The Company will use its reasonable best
efforts to acquire directors and officers liability insurance, on terms and
conditions deemed appropriate by the Board of Directors of the Company, with
the advice of counsel, covering Indemnitee or any claim made against Indemnitee
for service as a director or officer of the Company and covering the Company
for any indemnification or advance of Expenses made by the Company to
Indemnitee for any claims made against Indemnitee for service as a director or
officer of the Company.  Without in any
way limiting any other obligation under this Agreement, the Company shall
indemnify Indemnitee for any payment by Indemnitee arising out of the amount of
any deductible or retention and the amount of any excess of the aggregate of
all judgments, penalties, fines, settlements and reasonable Expenses actually
and reasonably incurred by Indemnitee in connection with a Proceeding over the
coverage of any insurance referred to in the previous sentence.

 

Section 15.             Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is or may be, by reason of his
Corporate Status, a witness in any Proceeding, whether instituted by the
Company or any other party, and to which Indemnitee is not a party but in which
the Indemnitee receives a subpoena to testify, he shall be advanced all
reasonable Expenses and indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

 

Section 16.             Duration of
Agreement; Binding Effect.

 

(a) This Agreement
shall continue until and terminate ten years after the date that Indemnitee’s
Corporate Status shall have ceased; provided, that the rights of Indemnitee
hereunder shall continue until the final termination of any Proceeding then
pending in respect of which Indemnitee is granted rights of indemnification or
advance of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 11 of this Agreement relating thereto.

 

(b) The
indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto
and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), shall continue as
to an Indemnitee who has ceased to be a director, trustee, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was
serving at the written request of the Company, and shall inure to the benefit
of Indemnitee and his spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives.

 

(c) The Company
shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in
form and substance satisfactory to Indemnitee, expressly to assume and agree to
perform

 

9

 

this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession
had taken place.

 

Section 17.             Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and (b) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent manifested thereby.

 

Section 18.             Exception to
Right of Indemnification or Advance of Expenses.  Notwithstanding any other provision of this
Agreement, Indemnitee shall not be entitled to indemnification or advance of
Expenses under this Agreement with respect to any Proceeding brought by
Indemnitee, unless (a) the Proceeding is brought to enforce indemnification
under this Agreement, and then only to the extent in accordance with and as
authorized by Sections 8 and 11 of this Agreement, or (b) the Company’s Bylaws,
as amended, the Charter, a resolution of the stockholders entitled to vote
generally in the election of directors or of the Board of Directors or an
agreement approved by the Board of Directors to which the Company is a party
expressly provide otherwise.

 

Section 19.             Identical
Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.  One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence
of this Agreement.

 

Section 20.             Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

Section 21.             Modification
and Waiver.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

Section 22.             Notices.  All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand and receipted for by the party to whom said
notice or other communication shall have been directed, or (ii) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

 

(a) If to
Indemnitee, to:  The address set forth on
the signature page hereto.

 

10

 

(b) If to the
Company, to:

 

	
   

  	
  VeriFone, Inc.

  
	
   

  	
  2099 Gateway Place

  
	
   

  	
  San Jose, California 95110

  
	
   

  	
  Telephone:

  	
  408-232-7800

  
	
   

  	
  Telecopy:

  	
  408-232-7889

  
	
   

  	
  Attention:

  	
  Barry Zwarenstein, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sullivan & Cromwell LLP

  
	
   

  	
  1870 Embarcadero Road

  
	
   

  	
  Palo Alto, California 94303

  
	
   

  	
  Telephone:

  	
  650-461-5600

  
	
   

  	
  Telecopy:

  	
  650-461-5700

  
	
   

  	
  Attention: 

  	
  Scott D. Miller

  
					

 

or to such other address as may have been furnished to Indemnitee by
the Company or to the Company by Indemnitee, as the case may be.

 

Section 23.             Governing Law.  The parties agree that this Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflicts of laws rules.

 

Section 24.             Miscellaneous.  Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate.

 

[SIGNATURE PAGE FOLLOWS]

 

11

 

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement on the day and year
first above written.

 

	
   

  	
  VERIFONE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INDEMNITEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Address:

  
	
   

  	
  Telephone:

  
	
   

  	
  Facsimile:

  
					

 

12QuickLinks
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Exhibit 10.72    
    

 
 

THIRD LOAN MODIFICATION AGREEMENT    
    

        This Third Loan Modification Agreement (this "Loan Modification Agreement") is entered into as of January 4, 2005, by and between  SILICON VALLEY
BANK, a California-chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and
with a loan production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462, doing business under the name "Silicon Valley East" ("Bank") and  IBASIS, INC., a Delaware corporation with its chief executive office located at 20 Second Avenue, Burlington, Massachusetts 01803 ("Borrower").
 

1.    DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS.    Among other indebtedness and obligations which may be owing by
Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of December 29, 2003 evidenced by, among other documents, instruments and agreements, a certain Amended
and Restated Loan and Security Agreement dated as of December 29, 2003, as affected and amended by a certain Consent, Waiver and Amendment Agreement dated as of June 18, 2004, as further
amended by a certain First Loan Modification Agreement dated as of June 30, 2004, and as further amended by a certain Second Loan Modification Agreement dated as of September 30, 2004
(as amended, the "Loan Agreement"). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2.    DESCRIPTION OF COLLATERAL.    Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement and
is secured by the Intellectual Property Collateral as described in a certain Intellectual Property Security Agreement dated December 30, 2002 (the "IP Security Agreement") (together with any
other collateral security granted to Bank, the "Security Documents"). 

Hereinafter,
the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the "Existing Loan Documents". 

3.    DESCRIPTION OF CHANGE IN TERMS.

        Modifications to Loan Agreement

	1
	The
Loan Agreement shall be amended by deleting the following, appearing as Section 2.1.1(a) thereof, in its entirety: 

"(a)    Availability.    Bank shall make Advances to Borrower not exceeding (i) the lesser of (A) the Revolving Line
or (B) the Borrowing Base, minus (ii) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus (iii) the FX Reserve, and minus
(iv) the aggregate outstanding Advances hereunder (including any Cash Management Services). Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement." 

and
inserting in lieu thereof the following: 

"(a)    Availability.    Bank shall make Advances to Borrower not exceeding (i) the Revolving Line, minus (ii) the amount of all
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus (iii) the FX Reserve, and minus (iv) the aggregate outstanding Advances hereunder (including any Cash
Management Services). Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement." 

	2
	The
Loan Agreement shall be amended by deleting the following text, appearing in Section 2.3(a) thereof, in its entirety: 

"(a)    Interest Rate.    The principal amounts outstanding under the Revolving Line shall accrue interest at a per annum rate equal
to the aggregate of the Prime Rate plus one percent (1.0%)." 

 

and
inserting in lieu thereof the following: 

"(a)    Interest Rate.    The principal amounts outstanding under the Revolving Line shall accrue interest at a per annum rate equal
to the Prime Rate plus one-half of one percent (0.5%)." 

	3
	The
Loan Agreement shall be amended by deleting the following, appearing as Section 2.3(d) thereof, in its entirety: 

"(d)    Revolving Line Clean-Up.    Without notice or demand by Bank, Borrower shall repay all Advances (not to include the face
amount of any issued but undrawn Letters of Credit) maintaining a zero dollar ($0.00) balance for a period of forty-five (45) consecutive days during each calendar quarter during the term hereof, and
not request additional Advances during such forty-five (45) day period." 

and
inserting in lieu thereof the following: 

"(d)    Intentionally Omitted." 

	4
	The
Loan Agreement shall be amended by inserting the following after Section 2.4(d): 

"(e)    Compensating Balance/Compensating Balances Fees.    In the event, at any time, Borrower maintains less than Fifteen Million
Dollars ($15,000,000.00) in unrestricted cash or cash equivalents with Bank, Borrower shall pay such fees and expenses as Bank shall determine, in its reasonable discretion, to compensate Bank for its
loss on income on such deposit balance." 

	5
	The
Loan Agreement shall be amended by deleting the following, appearing as Section 6.2(b) thereof, in its entirety: 

"(b)    Within
fifteen (15) days after the last day of each month, Borrower shall deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in the form of  Exhibit C, with aged listings of
accounts receivable (by invoice date)." 

and
inserting in lieu thereof the following: 

"(b)    Within
thirty (30) days after the last day of Borrower's fiscal year, Borrower shall deliver to Bank a budget for Borrower's next fiscal year in form satisfactory to Bank, in its
reasonable discretion." 

	6
	The
Loan Agreement shall be amended by deleting Section 6.7 in its entirety and inserting in lieu thereof the following: 

"6.7    Financial Covenants.

(a)    Adjusted Quick Ratio.    Borrower shall have, at all times, to be tested as of the last day of each month through and
including the month ending January 31, 2006, and as of the last day of calendar quarter thereafter, an Adjusted Quick Ratio of: 

	(i)
	1.25
to 1.0, from December 31, 2004 through December 31, 2005; 

and

	(ii)
	1.50
to 1.0 thereafter. 

(b)    Maximum Net Loss.    Borrower shall have maximum quarterly net loss as follows: 

	(i)
	($5,000,000.00)
for the quarter ending December 31, 2004;

	(ii)
	($4,000,000.00)
for the quarter ending March 31, 2005; 

2

 

	(iii)
	($3,000,000.00)
for the quarter ending June 30, 2005; and

	(iv)
	($2,000,000.00)
for the quarter ending September 30, 2005. 

(c)    Minimum Net Profit.    Borrower shall have minimum quarterly net profit equal to the greater of either (i) One Dollar
($1.00) or (ii) fifty percent (50%) of Borrower's board of directors approved plan, to be tested as of December 31, 2005 and as of the last day of each calendar quarter thereafter." 

	7
	The
Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

"        "Prime Rate" is the greater of (i) four percent (4.0%) or (ii) Bank's most recently announced "prime rate," even if it is
not Bank's lowest rate. 

        "Revolving Maturity Date" is January 5, 2005." 

and
inserting in lieu thereof the following: 

"        "Prime Rate" is the greater of either (i) five and one-quarter of one percent (5.25%) or (ii) Bank's most recently
announced "prime rate," even if it is not Bank's lowest rate. 

        "Revolving Maturity Date" is January 31, 2007." 

	8
	The
Loan Agreement shall be amended by adding the following definitions, in alphabetical order, in Section 13.1 thereof: 

"        "Adjusted Quick Ratio" is the ratio of (i) Quick Assets to (ii) Current Liabilities minus Deferred Revenue. 

        "Current Liabilities" are all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate amount of
Borrower's Total Liabilities which mature within one (1) year. 

        "Quick Assets" is, on any date, the Borrower's consolidated, unrestricted cash, unrestricted cash equivalents, plus net accounts
receivable. 

        "Total Liabilities" is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower's consolidated balance
sheet, including all Indebtedness." 

	9
	The
Borrowing Base Certificate appearing as Exhibit C is hereby deleted from the Loan Agreement. 

4.    FEES.    Borrower shall pay to Bank a modification fee equal to Fifty-Seven Thousand Five Hundred Dollars ($57,500.00), which
fee shall be earned as of the date hereof and shall be payable as follows: (i) Thirty-Two Thousand Five Hundred Dollars ($32,500.00) on the date hereof and (ii) Twenty-Five Thousand
dollars ($25,000.00) on the sooner to occur of (x) the occurrence of an Event of Default, (y) the early termination of the Loan Agreement, or (z) January 5, 2006. Borrower
shall also reimburse Bank for all reasonable legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

5.    RATIFICATION OF IP SECURITY AGREEMENT.    Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and
conditions of the IP Security Agreement, and acknowledges, confirms and agrees that the IP Security Agreement contains an accurate and complete (in all material respects) listing of all Intellectual
Property Collateral as defined therein, and shall remain in full force and effect. 

3

 

6.    RATIFICATION OF PERFECTION CERTIFICATE.    Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of December 30, 2002 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information Borrower
provided to Bank in the Perfection Certificate have not changed in any material respects, as of the date hereof. 

7.    CONSISTENT CHANGES.    The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described
above. 

8.    NO DEFENSES OF BORROWER.    Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or
counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or
unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder, in each case to the extent that any of the foregoing arises from
any action or failure to act on or prior to the date hereof under or in respect of the Loan Agreement or any of the other Existing Loan Documents; provided, however, that the waiver and release
contained herein shall not apply to any act or omission constituting gross negligence or willful misconduct on behalf of Bank which is discovered by Borrower after the date hereof. 

9.    CONTINUING VALIDITY.    Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon
Borrower's representation, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect and Borrower hereby ratifies, confirms, and reaffirms all the terms and conditions thereof. Borrower confirms that the indebtedness secured
by the Security Documents includes, without limitation, the Obligations. Bank's agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall
obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and
Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification
Agreement. 

10.    COUNTERSIGNATURE.    This Loan Modification Agreement shall become effective only when it shall have been executed by
Borrower and Bank (provided, however, in no event shall this Loan Modification Agreement become effective until signed by an officer of Bank in California). 

[The remainder of this page is intentionally left blank]

4

 

        This
Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of Massachusetts as of the date first written above. 

	BORROWER:	 	BANK:
	

IBASIS, INC.	
 	

SILICON VALLEY BANK, doing business as

SILICON VALLEY EAST
	

By:	

/s/  OFER GNEEZY      
	
 	

By:	

/s/  MICHAEL D. SINCLAIR      

	Name:	Ofer Gneezy
	 	Name:	Michael D. Sinclair

	Title:	President
	 	Title:	Vice President

	

 	

 	
 	

SILICON VALLEY BANK
	

 	

 	
 	

By:	

/s/  JACQUELIN LE      

	 	 	 	Name:	Jacquelin Le

	 	 	 	Title:	Operations Supervisor
 (signed in Santa Clara County, California)

        The
undersigned, IBASIS GLOBAL, INC., ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Unconditional Guaranty dated December 29, 2003
executed and delivered by the undersigned and a certain Security Agreement dated December 29, 2003 executed and delivered by the undersigned and acknowledges, confirms and agrees that the said
Unconditional Guaranty and Security Agreement shall remain in full force and effect and shall in no way be limited by the execution of this Loan Modification Agreement, or any other documents,
instruments and/or agreements executed and/or delivered in connection herewith. 

	 	 	 	IBASIS GLOBAL, INC.
	

 	

 	
 	

By:	

/s/  OFER GNEEZY      

	 	 	 	Name:	Ofer Gneezy
	 	 	 	Title:	President

        The
undersigned, IBASIS SECURITIES CORPORATION, ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Unconditional Guaranty dated December 29,
2003 executed and delivered by the undersigned and a certain Security Agreement dated December 29, 2003 executed and delivered by the undersigned and acknowledges, confirms and agrees that the
said Unconditional Guaranty and Security Agreement shall remain in full force and effect and shall in no way be limited by the execution of this Loan Modification Agreement, or any other documents,
instruments and/or agreements executed and/or delivered in connection herewith. 

	 	 	 	IBASIS SECURITIES CORPORATION
	

 	

 	
 	

By:	

/s/  OFER GNEEZY      

	 	 	 	Name:	Ofer Gneezy
	 	 	 	Title:	President

5

QuickLinks

Exhibit 10.72

THIRD LOAN MODIFICATION AGREEMENT

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