Document:

Exhibit 10.27

 

HEARTLAND PAYMENT SYSTEMS, INC.

 

INDEMNIFICATION AGREEMENT

 

INDEMNIFICATION AGREEMENT (this “Agreement”) dated as
of                        ,
2005 by and between Heartland Payment Systems, Inc., a Delaware corporation
(the “Company”), and                              
(the “Indemnitee”).

 

RECITALS

 

A. The Company and Indemnitee recognize the continued
difficulty in obtaining liability insurance for its directors, officers,
employees, agents, fiduciaries and related parties, the significant increases
in the cost of such insurance and the general reductions in the coverage of
such insurance.

 

B. The Company and the Indemnitee further recognize
the substantial increase in corporate litigation in general, which subjects
directors, officers, employees, agents, fiduciaries and related parties to
expensive litigation risks at the same time as the availability and coverage of
liability insurance has been severely limited.

 

C. The Indemnitee does not regard the current
protection available as adequate under the present circumstances, and
Indemnitee and other directors, officers, employees, agents, fiduciaries and
related parties of the Company may not be willing to serve in such capacities
without additional protection.

 

D. The Company (i) desires to attract and retain
highly qualified individuals and entities, such as Indemnitee, to serve the
Company and, in part, in order to induce Indemnitee to be involved with the
Company and (ii) wishes to provide for the indemnification and advancing of
expenses to Indemnitee to the maximum extent permitted by law.

 

E. In view of the considerations set forth above, the
Company desires that the Indemnitee be indemnified by the Company as set forth
herein.

 

NOW, THEREFORE, the Company and Indemnitee hereby
agree as follows:

 

1. Indemnification.

 

a. Indemnification
of Expenses. The Company shall indemnify and hold harmless
Indemnitee (including its respective directors, officers, partners, members,
employees, agents and spouse, as applicable) and each person who controls any
of them or who may be liable within the meaning of Section 15 of the Securities
Act of 1933, as amended (the “Securities Act”), or Section 20 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), to the fullest extent
permitted by law if Indemnitee was or is or becomes a party to or witness or
other participant in, or is threatened to be made a party to or witness or
other participant in, any threatened, pending or completed action, suit,
proceeding or alternative dispute resolution mechanism, or any hearing, inquiry
or investigation that Indemnitee believes might lead to the institution of any
such action, suit, proceeding or alternative dispute resolution mechanism,
whether civil, criminal, administrative, investigative or other (hereinafter a “Claim”)
by reason of (or arising in part or in whole out of) any event or occurrence
related to the fact that Indemnitee is or was or may be deemed a director,
officer, employee, agent or fiduciary of the Company, or any subsidiary of the
Company, or is or was or may be deemed to be serving at the request of the
Company as a director, officer, employee, agent or fiduciary of another
corporation, partnership,

 

 

limited
liability company, joint venture, trust or other enterprise, or by reason of
any action or inaction on the part of Indemnitee while serving in such capacity
against any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending a
witness in or participating in (including on appeal), or preparing to defend,
be a witness in or participate in, any such action, suit, proceeding,
alternative dispute resolution mechanism, hearing, inquiry or investigation),
judgments, fines, penalties and amounts paid in settlement (if, and only if,
such settlement is approved in advance by the Company, which approval shall not
be unreasonably withheld) of such Claim and any federal, state, local or
foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt
of any payments under this Agreement (collectively, hereinafter “Expenses”),
including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses. Such payment of Expenses shall
be made by the Company as soon as practicable but in any event no later than
ten (10) days after written demand by Indemnitee therefor is presented to the
Company.

 

b. Reviewing
Party. Notwithstanding the foregoing, (i) the obligations of the
Company under Section 1(a) shall be subject to the condition that the Reviewing
Party (as described in Section 10(e) hereof) shall not have determined (in a
written opinion, in any case in which the Independent Legal Counsel referred to
in Section 1(e) hereof is involved) that Indemnitee would not be permitted to
be indemnified under applicable law, and (ii) Indemnitee acknowledges and
agrees that the obligation of the Company to make an advance payment of
Expenses to Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be
subject to the condition that, if, when and to the extent that the Reviewing
Party determines that Indemnitee would not be permitted to be so indemnified
under applicable law, the Company shall be entitled to be reimbursed by
Indemnitee (who hereby agrees to reimburse the Company) for all such amounts
theretofore paid; provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense
Advance until a final judicial determination is made with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee’s obligation to reimburse the Company for any Expense Advance shall
be unsecured and no interest shall be charged thereon. If there has not been a
Change in Control (as defined in Section 10(c) hereof), the Reviewing Party
shall be selected by the Board of Directors, and if there has been such a
Change in Control (other than a Change in Control which has been approved by a
majority of the Company’s Board of Directors who were directors immediately
prior to such Change in Control), the Reviewing Party shall be the Independent
Legal Counsel referred to in Section 1(e) hereof. If there has been no
determination by the Reviewing Party or if the Reviewing Party determines that
Indemnitee substantively would not be permitted to be indemnified in whole or
in part under applicable law, Indemnitee shall have the right to commence
litigation seeking an initial determination by the court or challenging any
such determination by the Reviewing Party or any aspect thereof, including the
legal or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. Any determination by the
Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

 

d. Change in
Control. The Company agrees that if there is a Change in Control
of the Company (other than a Change in Control which has been approved by a
majority of the Company’s Board of Directors who were directors immediately
prior to such Change in Control) then, with respect to all matters thereafter
arising concerning the rights of Indemnitee to payments of Expenses under this
Agreement or any other agreement or under the Company’s Certificate of
Incorporation, as amended (the “Certificate”), or Bylaws as now or hereafter in
effect, Independent Legal Counsel (as defined in Section 10(d) hereof) shall be
selected by Indemnitee and approved by the Company (which approval shall not be
unreasonably withheld). Such counsel, among other things, shall render its
written opinion to the

 

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Company
and Indemnitee as to whether and to what extent Indemnitee would be permitted
to be indemnified under applicable law. The Company agrees to abide by such
opinion and to pay the reasonable fees of the Independent Legal Counsel
referred to above and to fully indemnify such counsel against any and all
expenses (including attorneys’ fees), claims, liabilities and damages arising
out of or relating to this Agreement or its engagement pursuant hereto.

 

f. Mandatory
Payment of Expenses. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise, including, without limitation, the dismissal of an action without
prejudice, in the defense of any action, suit, proceeding, inquiry or
investigation referred to in Section 1(a) hereof or in the defense of any
claim, issue or matter therein, Indemnitee shall be indemnified against all
Expenses incurred by Indemnitee in connection herewith.

 

2. Expenses; Indemnification Procedure.

 

a. Advancement of
Expenses. The Company shall advance all Expenses incurred by
Indemnitee. Indemnitee hereby undertakes to repay such amounts advanced only
if, and to the extent that, it shall ultimately be determined that Indemnitee
is not entitled to be indemnified by the Company as authorized hereby.  The advances to be made hereunder shall be
paid by the Company to Indemnitee as soon as practicable but in any event no
later than fifteen (15) days after written demand by Indemnitee therefor to the
Company.

 

b. Notice/Cooperation
by Indemnitee. Indemnitee shall, as a condition precedent to his
or her right to be indemnified under this Agreement, give the Company notice in
writing as soon as practicable of any Claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the
address shown on the signature page of this Agreement (or such other address as
the Company shall designate in writing to Indemnitee).  In addition, Indemnitee shall give the
Company such information and cooperation as it may reasonably require and as
shall be within Indemnitee’s power.

 

c. No
Presumptions; Burden of Proof. For purposes of this Agreement,
the termination of any Claim by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law. In
addition, neither the failure of the Reviewing Party to have made a
determination as to whether Indemnitee has met any particular standard of
conduct or had any particular belief, nor an actual determination by the
Reviewing Party that Indemnitee has not met such standard of conduct or did not
have such belief, prior to the commencement of legal proceedings by Indemnitee
to secure a judicial determination that Indemnitee should be indemnified under
applicable law, shall be a defense to Indemnitee’s claim or create a presumption
that Indemnitee has not met any particular standard of conduct or did not have
any particular belief. In connection with any determination by the Reviewing
Party or otherwise as to whether Indemnitee is entitled to be indemnified
hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled.

 

d. Notice to
Insurers. If, at the time of the receipt by the Company of a
notice of a Claim pursuant to Section 2(b) hereof, the Company has liability
insurance in effect which may cover such Claim, the Company shall give prompt
written notice of the commencement of such Claim to the insurers in accordance
with the procedures set forth in each of the policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Indemnitee, all amounts payable as a result of such action,
suit, proceeding, inquiry or investigation in accordance with the terms of such
policies.

 

3

 

e. Selection of
Counsel. In the event the Company shall be obligated hereunder
to pay the Expenses of any Claim, the Company shall be entitled to assume the
defense of such Claim, with counsel reasonably approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election to do so. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently incurred
by Indemnitee with respect to the same Claim; provided that, (i) the Indemnitee
shall have the right to employ Indemnitee’s counsel in any such Claim at
Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee
has been previously authorized by the Company, or (B) the Company shall not
continue to retain such counsel to defend such Claim, then the fees and
expenses of Indemnitee’s counsel shall be at the expense of the Company.

 

3. Additional
Indemnification Rights; Nonexclusivity.

 

a. Scope.
The Company hereby agrees to indemnify Indemnitee to the fullest extent
permitted by law, even if such indemnification is not specifically authorized
by the other provisions of this Agreement or any other agreement, the Certificate,
the Company’s Bylaws or by statute. In the event of any change after the date
of this Agreement in any applicable law, statute or rule which expands the
right of a Delaware corporation to indemnify a member of its Board of Directors
or an officer, employee, agent, fiduciary or related party, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits afforded by such change. In the event of any change in any applicable
law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its Board of Directors or an officer, employee, agent,
fiduciary or related party, such change, to the extent not otherwise required
by such law, statute or rule to be applied to this Agreement, shall have no
effect on this Agreement or the parties’ rights and obligations hereunder
except as set forth in Section 8(a) hereof.

 

b. Nonexclusivity.
Notwithstanding anything in this Agreement, the indemnification provided by
this Agreement shall be in addition to any rights to which Indemnitee may be
entitled under the Certificate, the Company’s Bylaws, any agreement, any vote
of stockholders or disinterested directors, the laws of the State of Delaware,
or otherwise. Notwithstanding anything in this Agreement, the indemnification
provided under this Agreement shall continue as to the Indemnitee for any
action the Indemnitee took or did not take while serving in an indemnified
capacity even though the Indemnitee may have ceased to serve in such capacity and
such indemnification shall inure to the benefit of the Indemnitee from and
after the Indemnitee’s first day of service as an officer of the Company or as
a director with the Company or affiliation with a director from and after the
date such director commences services as a director with the Company.

 

4. No Duplication
Of Payments. The Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against the
Indemnitee to the extent the Indemnitee has otherwise actually received payment
(under any insurance policy, Certificate, Bylaws or otherwise) of the amounts
otherwise indemnifiable hereunder.

 

5. Partial
Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for any portion
of Expenses incurred in connection with any Claim, but not, however, for all of
the total amount thereof, the Company

 

4

 

shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which
such Indemnitee is entitled.

 

6. Mutual
Acknowledgement. The Company and Indemnitee acknowledge that in
certain instances, Federal law or applicable public policy may prohibit the
Company from indemnifying its directors, officers, employees, agents,
fiduciaries or related parties under this Agreement or otherwise.  Indemnitee understands and acknowledges that
the Company has undertaken or may be required in the future to undertake with
the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.

 

7. Liability
Insurance. To the extent the Company maintains liability
insurance applicable to directors, officers, employees, agents, or fiduciaries,
each Indemnitee shall be covered by such policies in such a manner as to
provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company’s directors, if Indemnitee is a director, or
of the Company’s officers, if Indemnitee is not a director of the Company but
is an officer; or of the Company’s key employees, agents or fiduciaries, if
Indemnitee is not an officer or director but is a key employee, agent, or
fiduciary.

 

8. Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall
not be obligated pursuant to the terms of this Agreement:

 

a. Excluded Acts
or Omissions.  To
indemnify Indemnity for any actions or omissions from which Indemnitee is
prohibited from receiving indemnification under applicable law.

 

b. Claims
Initiated by Indemnitee. 
To indemnify or make any Expense Advance to Indemnitee with respect to
Claims initiated or brought voluntarily by Indemnitee and not by way of defense,
counterclaim or crossclaim, except (i) with respect to actions or proceedings
brought to establish or enforce a right to indemnification under this Agreement
or any other agreement or insurance policy or under the Company’s Certificate
or Bylaws now or hereafter in effect relating to Claims, (ii) in specific cases
if the Board of Directors has approved the initiation or bringing of such claim
or (iii) otherwise as required under Section 145 of the Delaware General
Corporation Law, regardless of whether Indemnitee ultimately is determined to
be entitled to such indemnification or insurance recovery, as the case may be.

 

c. Lack of Good
Faith.  To indemnify
Indemnitee for any Expenses incurred by Indemnitee with respect to any action
instituted (i) by Indemnitee to enforce or interpret this Agreement, if a court
having jurisdiction over such action determines that each of the material
assertions made by Indemnitee as a basis for such action was not made in good
faith or was frivolous, or (ii) by or in the name of the Company to enforce or
interpret this Agreement, if a court having jurisdiction over such action
determines that each of the material defenses asserted by Indemnitee in such
action was made in bad faith or was frivolous.

 

d. Claims Under
Section 16(b). To indemnify Indemnitee for expenses and the
payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Exchange Act or any similar
successor statute; or

 

5

 

9. Period of
Limitations. No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Company against Indemnitee,
Indemnitee’s estate, spouse, heirs, executors or personal or legal
representatives after the expiration of five (5) years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a
legal action within such five (5) year period; PROVIDED, HOWEVER, that if any
shorter period of limitations is otherwise applicable to any such cause of
action, such shorter period shall govern.

 

10. Construction
Of Certain Phrases.

 

a. For purposes of this Agreement, references to the “Company”
shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees,
agents or fiduciaries, so that if Indemnitee is or was or may be deemed a
director, officer, employee, agent,  or
fiduciary of such constituent corporation, or is or was or may be deemed to be
serving at the request of such constituent corporation as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint
venture, employee benefit plan, trust or other enterprise, Indemnitee shall
stand in the same position under the provisions of this Agreement with respect
to the resulting or surviving corporation as Indemnitee would have with respect
to such constituent corporation if its separate existence had continued.

 

b. For purposes of this Agreement, references to “other
enterprises” shall include employee benefit plans; references to “fines” shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the
Company which imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or its beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the Company”
as referred to in this Agreement.

 

c. For purposes of this Agreement a “Change in Control”
shall be deemed to have occurred if (i) any “person” (as such term is used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other than a trustee or
other fiduciary holding securities under an employee benefit plan of the
Company or a corporation owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their ownership of stock
of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under
said Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the total voting power represented by the Company’s
then outstanding Voting Securities, (ii) during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board of
Directors of the Company and any new director whose election by the Board of
Directors or nomination for election by the Company’s stockholders was approved
by a vote of at least a majority of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, or (iii) the stockholders of the Company approve
a merger

 

6

 

or
consolidation of the Company with any other corporation other than a merger or
consolidation which would result in the Voting Securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least a majority of the total voting power represented by
the Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series
of transactions) all or substantially all of the Company’s assets.

 

d. For purposes of this Agreement, “Independent Legal
Counsel” shall mean an attorney or firm of attorneys, selected in accordance
with the provisions of Section 1(e) hereof, who shall not have otherwise
performed services for the Company or Indemnitee within the last three (3)
years (other than with respect to matters concerning the right of Indemnitee
under this Agreement, or of other indemnitees under similar indemnity
agreements).

 

e. For purposes of this Agreement, a “Reviewing Party”
shall mean any appropriate person or body consisting of a member or members of
the Company’s Board of Directors or any other person or body appointed by the
Board of Directors who is not a party to the particular Claim for which
Indemnitee is seeking indemnification, or Independent Legal Counsel.

 

f. For purposes of this Agreement, “Voting Securities”
shall mean any securities of the Company that vote generally in the election of
directors.

 

11. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
constitute an original.

 

12. Binding
Effect; Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successors, assigns, including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company, spouses, heirs,
and personal and legal representatives. 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 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. This Agreement shall
continue in effect with respect to Claims relating to Indemnifiable Events
regardless of whether Indemnitee continues to serve as a director, officer,
employee, agent, or fiduciary of the Company or of any other enterprise, including
subsidiaries of the Company, at the Company’s request.

 

13. Attorneys’
Fees. In the event that any action is instituted by Indemnitee
under this Agreement or under any liability insurance policies maintained by
the Company to enforce or interpret any of the terms hereof or thereof,
Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee
with respect to such action, regardless of whether Indemnitee is ultimately
successful in such action, and shall be entitled to the advancement of Expenses
with respect to such action, unless, as a part of such action, a court of
competent jurisdiction over such

 

7

 

action
determines that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous. In the event of an
action instituted by or in the name of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, the Indemnitee shall
be entitled to be paid all Expenses incurred by Indemnitee in defense of such
action (including costs and expenses incurred with respect to Indemnitee
counterclaims and cross-claims made in such action), and shall be entitled to
the advancement of Expenses with respect to such action.

 

14. Notice.
All notices and other communications required or permitted hereunder shall be
in writing, shall be effective when given, and shall in any event be deemed to
be given (a) five (5) days after deposit with the U.S. Postal Service or other
applicable postal service, if delivered by first class mail, postage prepaid,
(b) upon delivery, if delivered by hand, (c) one business day after the
business day of deposit with Federal Express or similar overnight courier,
freight prepaid, or (d) one day after the business day of delivery by facsimile
transmission, if deliverable by facsimile transmission, with copy by first
class mail, postage prepaid, and shall be addressed if to Indemnitee, at
Indemnitee’s address as set forth beneath the Indemnitee’s signature to this
Agreement and if to the Company at the address of its principal corporate
offices (attention: Secretary) or at such other address as such party may
designate by ten (10) days’ advance written notice to the other party hereto.

 

15. Severability.
The provisions of this Agreement shall be severable in the event that any of
the provisions hereof (including any provision within a single section,
paragraph or sentence) are held by a court of competent jurisdiction to be
invalid, void or otherwise unenforceable, and the remaining provisions shall
remain enforceable to the fullest extent permitted by law. Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

16. Choice of Law.
This Agreement shall be governed by and its provisions construed and enforced
in accordance with the laws of the State of Delaware, as applied to contracts
between Delaware residents, entered into and to be performed entirely within
the State of Delaware, without regard to the conflict of laws principles
thereof.

 

17. Subrogation.
In the event of 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 documents required and shall do all acts that may be
necessary to secure such rights and to enable the Company effectively to bring
suit to enforce such rights.

 

18. Amendment and
Termination. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing
signed by the parties to be bound thereby. Notice of same shall be provided to
all 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.

 

8

 

19. Corporate
Authority. The Board of Directors of the Company and its
stockholders in accordance with Delaware law have approved the terms of this
Agreement.

 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

9

 

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

 

 

	
  HEARTLAND PAYMENT SYSTEMS, INC.,

  	
   

  
	
   

  	
   

  
	
  A DELAWARE CORPORATION

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  
	
   

  	
  Robert O. Carr, Chairman and

  	
   

  
	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  INDEMNITEE:

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  
					

 

[Signature Page to
Indemnification Agreement]

 

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Exhibit 4.7    
    

AMENDMENT NO. 1 TO SHAREHOLDERS AGREEMENT  

        This AMENDMENT NO. 1 TO SHAREHOLDERS AGREEMENT (this "Amendment"), dated as of December 20, 2004, is
made by and between Polymer Group, Inc., a Delaware corporation (the "Company"), and MatlinPatterson Global Opportunities Partners L.P., a
Delaware limited partnership ("GOF"). 

        The
Company, GOF and certain other shareholders of the Company have entered into the Shareholders Agreement, dated as of March 5, 2003 (the "Shareholders
Agreement"). Except as otherwise indicated herein, capitalized terms used in this Amendment have the same meaning ascribed to such terms in the Shareholders Agreement. 

        This
Amendment has been approved by the Company's Board of Directors, which approval includes the affirmative vote of at least one Non-GOF Board Member (such approvals, the  "Requisite Board Approvals").

        Pursuant
to Section 6.8 of the Shareholders Agreement, the Company and GOF, after obtaining the Requisite Board Approvals, desire to amend the Shareholders Agreement as provided
in this Amendment. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Amendments.    

        (a)   Section 4.2(e)
of the Shareholders Agreement is hereby amended and restated in its entirety to read as follows: 

"(e)    Intentionally
omitted." 

        (b)   Section 4.2
of the Shareholders Agreement is hereby amended by inserting the following new paragraph (g): 

"(g)    Notwithstanding
anything to the contrary contained in this Section 4.2, in the event that (i) any directorship
designated for the ZB Board Members is vacant at any time and (ii) there are at any time less than nine directors serving on the Company's Board of Directors as a result of such vacancy,
the Company's Board of Directors acting by the affirmative vote of the majority of the total number of directors then in office (though less than a quorum), which majority vote shall include the
affirmative vote of at least one Non-GOF Board Member, may designate and elect a director to fill such vacancy. The Company's Board of Directors is hereby authorized to amend the Bylaws to
accommodate the provisions of this Section 4.2(g)." 

        2.    Counterparts.    This Amendment may be executed in multiple counterparts (including by means of telecopied
signature pages), any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same instrument. 

        3.    Governing Law.    All matters relating to the interpretation, construction, validity and enforcement of this
Amendment shall be governed by and construed in accordance with the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than the State of New York. 

        4.    Consent.    The undersigned parties hereby consent to this Amendment pursuant to  Section 6.8 of the Shareholders
Agreement and as such consent may otherwise be required. 

        5.    Limited Amendment.    This Amendment is limited by its terms and does not and shall not serve to amend or waive
any provision of the Shareholders Agreement except as expressly provided for in this Amendment. 

*
* * * * 

        IN
WITNESS WHEREOF, the parties have executed this Amendment No. 1 to Shareholders Agreement as of the date first above written. 

	 	COMPANY:
	

 	

POLYMER GROUP, INC.
	

 	

By:	
 	

/s/  JAMES L. SCHAEFFER      

	 	Name:	 	James L. Schaeffer
	 	Its:	 	Chief Executive Officer
	

 	
GOF:
	

 	

MATLINPATTERSON GLOBAL OPPORTUNITIES PARTNERS L.P.
	

 	

By:	
 	

MatlinPatterson Global Advisers LLC
	 	Its:	 	Investment Advisor
	

 	

By:	
 	

/s/  LAP WAI CHAN      

	 	Name:	 	Lap Wai Chan
	 	Its:	 	 

QuickLinks

Exhibit 4.7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]