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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): September&nbsp;19, 2013 </B></P>
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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>VERIFONE SYSTEMS, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Commission
File Number: 001-32465 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Delaware </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or Other Jurisdiction of </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Incorporation or Organization) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>04-3692546 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2099 Gateway Place, Suite 600 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>San Jose, CA 95110 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of principal executive offices, including zip code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>408-232-7800 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Registrant&#146;s telephone number, including area code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>N/A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or
former address, if changed since last report) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below): </P>
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<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Appointment of New CEO </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b), (c), (d)&nbsp;(e)&nbsp;On September&nbsp;23, 2013, VeriFone Systems, Inc. (the &#147;Company&#148;) announced that its Board of Directors
had appointed Paul Galant to serve as Chief Executive Officer, effective beginning October&nbsp;1, 2013. Also effective October&nbsp;1, 2013, Mr.&nbsp;Galant will be appointed to the Board of Directors. In connection with Mr.&nbsp;Galant&#146;s
appointment, on October&nbsp;1, 2013, Richard A. McGinn will step down from his position as Interim Chief Executive Officer. A copy of the Company&#146;s press release is furnished hereto as Exhibit 99.1. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Prior to joining the Company, Mr.&nbsp;Galant, 45, served as the Chief Executive Officer of Citigroup Inc.&#146;s Enterprise Payments business
since 2010. In this role, Mr.&nbsp;Galant oversaw the design, marketing and implementation of global business-to-consumer and consumer-to-business digital payments solutions. From 2009, Mr.&nbsp;Galant served as CEO of Citi Cards, heading
Citigroup&#146;s North American and International Credit Cards business. From 2007, Mr.&nbsp;Galant served as CEO of Citi Transaction Services, a division of Citi&#146;s Institutional Clients Group. From 2002, Mr.&nbsp;Galant was the Global Head of
the Cash Management business, one of the largest processors of payments globally. Mr.&nbsp;Galant joined Citigroup, a multinational financial services corporation, in 2000. Prior to joining Citigroup, Mr.&nbsp;Galant held positions at Donaldson,
Lufkin&nbsp;&amp; Jenrette, Smith Barney, and Credit Suisse. Mr.&nbsp;Galant holds a B.S. from Cornell University where he graduated a Phillip Merrill Scholar. Mr.&nbsp;Galant brings to the Board of Directors, among other skills and qualifications,
significant knowledge of the payments industry and leadership in complex, global organizations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Galant has no reportable
transactions under Item&nbsp;404(a) of Regulation S-K and no family relationships reportable under Item&nbsp;401(d) of Regulation S-K. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The terms of Mr.&nbsp;Galant&#146;s employment, including severance terms, are outlined in the Company&#146;s offer letter (the &#147;Offer
Letter&#148;) to Mr.&nbsp;Galant, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference. Mr.&nbsp;Galant will be employed by the Company on an &#147;at-will&#148; basis. Mr.&nbsp;Galant will receive an annual base
salary at a rate of at least $800,000 per annum and will be eligible to receive a target cash bonus of not less than 125% of his annual base salary under the Company&#146;s Amended and Restated Bonus Plan or any successor plan. Mr.&nbsp;Galant will
also receive a signing bonus of $2,250,000. Mr.&nbsp;Galant will also receive the following equity grants: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">An initial stock option grant equal to 500,000 options, 25% of which will vest on the first anniversary of the date of grant and in twelve equal installments thereafter commencing on the fifteen month anniversary of the
date of grant and the end of each three month period thereafter; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">An initial restricted stock grant equal to 300,000 shares of VeriFone common stock, 50% of which will vest on Mr.&nbsp;Galant&#146;s start date, and 50% of which vest on the first anniversary of his start date;
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">An initial restricted stock unit grant in an amount at target of 200,000 shares of VeriFone common stock (the &#147;Upfront TSR Shares&#148;), with payout opportunity ranging from 0% to 200% of target, based on the
level of achievement of the Company&#146;s total shareholder return (&#147;TSR&#148;) relative to the companies in the S&amp;P North America Technology Index over the 3-year performance period through the third anniversary of his start date. For
purposes of the Upfront TSR Shares, TSR shall be calculated on a stack-ranked basis using a 60-trading day average closing prices immediately preceding the beginning and end of the performance period. Payout shall be at target (<I>i.e.</I>, 200,000
shares of common stock) for TSR at the 50th percentile, scaling for performance above and below the 50th percentile (<I>e.g.</I>, 60th percentile ranking results in payout at 120% of target or 240,000 shares of common stock). The threshold for any
payout under the Upfront TSR Shares is the 25th percentile (<I>i.e.</I>, no shares of common stock will be awarded for performance below the 25th percentile) and the maximum payout shall equal 200% of target (<I>i.e.</I>, 400,000 shares) at the
100th percentile. In the event of a Change in Control (as defined in the Offer Letter), the performance period for the Upfront TSR Shares will terminate effective immediately prior to the Change in Control and the level of payout under the Upfront
TSR Shares shall be measured at that time. The Upfront TSR Share payout as so determined will be subject to time-based 3-year cliff vesting (from the original grant date). </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Under the terms of the Offer Letter, the Company will reimburse Mr.&nbsp;Galant for reasonable
expenses involved in his relocation, which will cover the actual movement of household and personal belongings and other relocation expenses associated with joining the Company, as well as reasonable travel for Mr.&nbsp;Galant and his family for
house-hunting trips and the cost of temporary housing (not to exceed twelve months) and associated expenses. Mr.&nbsp;Galant will also be entitled to participate in the Company&#146;s employee benefit plans, policies and programs, as in effect from
time to time, on the same basis as made available generally to other senior executive officers of the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">In the event that the
Company terminates Mr.&nbsp;Galant&#146;s employment without Cause (as defined in the Offer Letter), Mr.&nbsp;Galant will be entitled to the following: (i)&nbsp;any unpaid accrued salary or earned but unpaid Annual Bonus (&#147;Accrued
Compensation&#148;) and a lump sum cash severance payment equal to the sum of his Annual Base Salary and his actual Annual Bonus for the preceding fiscal year; (ii)&nbsp;for twenty-four months following his date of termination of employment, the
Company will promptly reimburse him for COBRA premiums and will permit him to continue to participate in the Company&#146;s life insurance plan on the same basis as he participated in it as of immediately prior to his termination of employment,
subject to certain exceptions (collectively, &#147;Benefit Continuation&#148;); and (iii)&nbsp;twelve months accelerated vesting of any outstanding equity awards, <I>provided </I>that any portion of any unvested Upfront TSR Shares that would have
time-based vested, if such time-based vesting was monthly rather than 3-year cliff vesting, on or before the first anniversary of such termination of employment based on achievement of the TSR hurdle, shall so vest and shall be paid as soon as
practicable following determination of the achievement of the TSR hurdle. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">If a termination by the Company without Cause or by
Mr.&nbsp;Galant for Good Reason (as defined in the Offer Letter) occurs and upon or within twelve months after a Change in Control (or if his employment is terminated by the Company without Cause or by him for Good Reason within ninety days prior to
a Change in Control at the request of a third party acquiror) (the &#147;Change of Control Protection Period&#148;), (i)&nbsp;the Company will pay him the Accrued Compensation and a lump sum cash severance payment equal to 2 times the sum of his
Annual Base Salary and his target Annual Bonus, (ii)&nbsp;Mr.&nbsp;Galant will be entitled to receive Benefit Continuation and (iii)&nbsp;Mr.&nbsp;Galant will receive accelerated vesting in full of all outstanding equity awards. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Company&#146;s obligations to provide the severance benefits described above (other than payment of Accrued Compensation) are subject to
Mr.&nbsp;Galant executing a release in favor of the Company and compliance with certain non-competition, non-solicitation and non-disparagement covenants. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">If the Company terminates Mr.&nbsp;Galant&#146;s employment for Cause, he terminates his employment without Good Reason, or his employment
terminates due to death or Disability (as defined in the Offer Letter), the Company will promptly pay or provide (i)&nbsp;his Accrued Compensation, except that any earned but unpaid Annual Bonus shall be forfeited in the event of termination for
Cause, (ii)&nbsp;any benefits that are required, or to which he is entitled, under any employee benefit plan, contract or arrangement of the Company, and (iii)&nbsp;any other payments or benefits required to be paid to him in accordance with
applicable law. In addition, in the event his employment terminates due to death or Disability, the Company shall pay him or his estate, as applicable, (i)&nbsp;a pro-rata Annual Bonus at target for the fiscal year during which his death or
Disability occurs, which shall be paid within sixty days following the date of termination of his employment and (ii)&nbsp;provide him with the same vesting benefits as in the case of a termination without Cause not in the Change of Control
Protection Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The foregoing is qualified in its entirety by reference to the full text of the Offer Letter, which is attached hereto
as Exhibit 10.1 and incorporated herein by reference. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Adoption of Executive Severance Policy </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e) On September&nbsp;19, 2013, the Compensation Committee of the Board of Directors of the Company approved and the Company adopted an
Executive Severance Policy (the &#147;Policy&#148;), which will apply to the following executive officers: Marc Rothman (Executive Vice President and Chief Financial Officer), Albert Liu (Executive Vice President, Corporate Development and General
Counsel), Eliezer Yanay (Executive Vice President and Chief Operations Officer), Jennifer Miles (President, VeriFone Americas), Bulent Ozayaz (President, VeriFone </P>

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Southern Europe, Russia, Middle East and Africa) and Sunil Kappagoda (President, VeriFone Asia Pacific) (together, the &#147;Participants&#148;). The Policy has a fixed term of three years
(subject to extension for up to one year if there is a change of control (as defined in the Policy) during the last twelve months of the term). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Under the terms of the Policy, in the event of a termination of the Participant&#146;s employment by the Company &#147;without cause&#148; (as
defined in the Policy) (other than in the case of a change of control or Leadership Change as described in the paragraph below), the Participant will be entitled to severance benefits equal to (i)&nbsp;12 months&#146; base salary and (ii)&nbsp;12
months&#146; medical, dental, vision and life insurance benefit continuation/COBRA coverage, subject to certain exceptions (such benefits continuation described in clause (ii)&nbsp;being referred to as &#147;Benefits Coverage&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">In the event of a termination of the Participant&#146;s employment by the Company without cause or termination by the Participant of his or
her employment for &#147;good reason&#148; (as defined in the Policy), during the period beginning 3 months prior to and extending 12 months after a &#147;change of control&#148; (as defined in the Policy) or the first appointment of a new permanent
CEO after the effective date of the Policy (a &#147;Leadership Change&#148;), the Participant will be entitled to 12 months&#146; base salary (or 1.5 times that amount in the case of a Leadership Change), as well as Benefits Coverage and
acceleration of the Participant&#146;s then-outstanding equity awards, all as described in the Policy. The payments and other benefits described in this paragraph relating to a qualifying termination event in the 3 months prior to a change of
control or Leadership Change apply only where termination of employment is at the request of the third party (in the case of a change of control), or at the request of the new CEO (in the case of a Leadership Change). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">All payments and other benefits under the Policy are subject to the Participant&#146;s granting of a release and compliance with certain
non-competition, non-solicitation and non-disparagement covenants. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The payments and other benefits under the Policy are not duplicative
of benefits under other policies and agreements and in the event of a duplication or conflicting benefit, the Participant will receive the more favorable of the two provisions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The foregoing is qualified in its entirety by reference to the full text of the Policy, which is attached hereto as Exhibit 10.2 and
incorporated herein by reference. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01. Financial Statements and Exhibits. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) Exhibits. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top">Offer Letter, dated September&nbsp;15, 2013</TD></TR>
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<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top">Executive Severance Policy</TD></TR>
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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top">Press Release, dated September 23, 2013</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3"><B>VERIFONE SYSTEMS, INC.</B></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Albert Liu</P></TD></TR>
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<TD VALIGN="top">Name:</TD>
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<TD VALIGN="top">Albert Liu</TD></TR>
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<TD VALIGN="top">Date: September&nbsp;23, 2013</TD>
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<TD VALIGN="top">EVP, Corporate Development and General Counsel</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>10.1</TD>
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<TD VALIGN="top">Offer Letter, dated September 15, 2013</TD></TR>
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<TD VALIGN="top" NOWRAP>10.2</TD>
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<TD VALIGN="top">Executive Severance Policy</TD></TR>
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<TD VALIGN="top" NOWRAP>99.1</TD>
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<TD VALIGN="top">Press Release, dated September 23, 2013</TD></TR>
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8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 19, 2013
VERIFONE SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Commission
File Number: 001-32465
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
04-3692546
(IRS Employer
Identification No.)
2099 Gateway Place, Suite 600
San Jose, CA 95110
(Address of principal executive offices, including zip code)
408-232-7800
(Registrant's telephone number, including area code)
N/A
(Former name or
former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
Appointment of New CEO
(b), (c), (d) (e) On September 23, 2013, VeriFone Systems, Inc. (the "Company") announced that its Board of Directors
had appointed Paul Galant to serve as Chief Executive Officer, effective beginning October 1, 2013. Also effective October 1, 2013, Mr. Galant will be appointed to the Board of Directors. In connection with Mr. Galant's
appointment, on October 1, 2013, Richard A. McGinn will step down from his position as Interim Chief Executive Officer. A copy of the Company's press release is furnished hereto as Exhibit 99.1.
Prior to joining the Company, Mr. Galant, 45, served as the Chief Executive Officer of Citigroup Inc.'s Enterprise Payments business
since 2010. In this role, Mr. Galant oversaw the design, marketing and implementation of global business-to-consumer and consumer-to-business digital payments solutions. From 2009, Mr. Galant served as CEO of Citi Cards, heading
Citigroup's North American and International Credit Cards business. From 2007, Mr. Galant served as CEO of Citi Transaction Services, a division of Citi's Institutional Clients Group. From 2002, Mr. Galant was the Global Head of
the Cash Management business, one of the largest processors of payments globally. Mr. Galant joined Citigroup, a multinational financial services corporation, in 2000. Prior to joining Citigroup, Mr. Galant held positions at Donaldson,
Lufkin & Jenrette, Smith Barney, and Credit Suisse. Mr. Galant holds a B.S. from Cornell University where he graduated a Phillip Merrill Scholar. Mr. Galant brings to the Board of Directors, among other skills and qualifications,
significant knowledge of the payments industry and leadership in complex, global organizations.
Mr. Galant has no reportable
transactions under Item 404(a) of Regulation S-K and no family relationships reportable under Item 401(d) of Regulation S-K.
The terms of Mr. Galant's employment, including severance terms, are outlined in the Company's offer letter (the "Offer
Letter") to Mr. Galant, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference. Mr. Galant will be employed by the Company on an "at-will" basis. Mr. Galant will receive an annual base
salary at a rate of at least $800,000 per annum and will be eligible to receive a target cash bonus of not less than 125% of his annual base salary under the Company's Amended and Restated Bonus Plan or any successor plan. Mr. Galant will
also receive a signing bonus of $2,250,000. Mr. Galant will also receive the following equity grants:
•
An initial stock option grant equal to 500,000 options, 25% of which will vest on the first anniversary of the date of grant and in twelve equal installments thereafter commencing on the fifteen month anniversary of the
date of grant and the end of each three month period thereafter;
•
An initial restricted stock grant equal to 300,000 shares of VeriFone common stock, 50% of which will vest on Mr. Galant's start date, and 50% of which vest on the first anniversary of his start date;
•
An initial restricted stock unit grant in an amount at target of 200,000 shares of VeriFone common stock (the "Upfront TSR Shares"), with payout opportunity ranging from 0% to 200% of target, based on the
level of achievement of the Company's total shareholder return ("TSR") relative to the companies in the S&P North America Technology Index over the 3-year performance period through the third anniversary of his start date. For
purposes of the Upfront TSR Shares, TSR shall be calculated on a stack-ranked basis using a 60-trading day average closing prices immediately preceding the beginning and end of the performance period. Payout shall be at target (
i.e.
, 200,000
shares of common stock) for TSR at the 50th percentile, scaling for performance above and below the 50th percentile (
e.g.
, 60th percentile ranking results in payout at 120% of target or 240,000 shares of common stock). The threshold for any
payout under the Upfront TSR Shares is the 25th percentile (
i.e.
, no shares of common stock will be awarded for performance below the 25th percentile) and the maximum payout shall equal 200% of target (
i.e.
, 400,000 shares) at the
100th percentile. In the event of a Change in Control (as defined in the Offer Letter), the performance period for the Upfront TSR Shares will terminate effective immediately prior to the Change in Control and the level of payout under the Upfront
TSR Shares shall be measured at that time. The Upfront TSR Share payout as so determined will be subject to time-based 3-year cliff vesting (from the original grant date).
Under the terms of the Offer Letter, the Company will reimburse Mr. Galant for reasonable
expenses involved in his relocation, which will cover the actual movement of household and personal belongings and other relocation expenses associated with joining the Company, as well as reasonable travel for Mr. Galant and his family for
house-hunting trips and the cost of temporary housing (not to exceed twelve months) and associated expenses. Mr. Galant will also be entitled to participate in the Company's employee benefit plans, policies and programs, as in effect from
time to time, on the same basis as made available generally to other senior executive officers of the Company.
In the event that the
Company terminates Mr. Galant's employment without Cause (as defined in the Offer Letter), Mr. Galant will be entitled to the following: (i) any unpaid accrued salary or earned but unpaid Annual Bonus ("Accrued
Compensation") and a lump sum cash severance payment equal to the sum of his Annual Base Salary and his actual Annual Bonus for the preceding fiscal year; (ii) for twenty-four months following his date of termination of employment, the
Company will promptly reimburse him for COBRA premiums and will permit him to continue to participate in the Company's life insurance plan on the same basis as he participated in it as of immediately prior to his termination of employment,
subject to certain exceptions (collectively, "Benefit Continuation"); and (iii) twelve months accelerated vesting of any outstanding equity awards,
provided
that any portion of any unvested Upfront TSR Shares that would have
time-based vested, if such time-based vesting was monthly rather than 3-year cliff vesting, on or before the first anniversary of such termination of employment based on achievement of the TSR hurdle, shall so vest and shall be paid as soon as
practicable following determination of the achievement of the TSR hurdle.
If a termination by the Company without Cause or by
Mr. Galant for Good Reason (as defined in the Offer Letter) occurs and upon or within twelve months after a Change in Control (or if his employment is terminated by the Company without Cause or by him for Good Reason within ninety days prior to
a Change in Control at the request of a third party acquiror) (the "Change of Control Protection Period"), (i) the Company will pay him the Accrued Compensation and a lump sum cash severance payment equal to 2 times the sum of his
Annual Base Salary and his target Annual Bonus, (ii) Mr. Galant will be entitled to receive Benefit Continuation and (iii) Mr. Galant will receive accelerated vesting in full of all outstanding equity awards.
The Company's obligations to provide the severance benefits described above (other than payment of Accrued Compensation) are subject to
Mr. Galant executing a release in favor of the Company and compliance with certain non-competition, non-solicitation and non-disparagement covenants.
If the Company terminates Mr. Galant's employment for Cause, he terminates his employment without Good Reason, or his employment
terminates due to death or Disability (as defined in the Offer Letter), the Company will promptly pay or provide (i) his Accrued Compensation, except that any earned but unpaid Annual Bonus shall be forfeited in the event of termination for
Cause, (ii) any benefits that are required, or to which he is entitled, under any employee benefit plan, contract or arrangement of the Company, and (iii) any other payments or benefits required to be paid to him in accordance with
applicable law. In addition, in the event his employment terminates due to death or Disability, the Company shall pay him or his estate, as applicable, (i) a pro-rata Annual Bonus at target for the fiscal year during which his death or
Disability occurs, which shall be paid within sixty days following the date of termination of his employment and (ii) provide him with the same vesting benefits as in the case of a termination without Cause not in the Change of Control
Protection Period.
The foregoing is qualified in its entirety by reference to the full text of the Offer Letter, which is attached hereto
as Exhibit 10.1 and incorporated herein by reference.
Adoption of Executive Severance Policy
(e) On September 19, 2013, the Compensation Committee of the Board of Directors of the Company approved and the Company adopted an
Executive Severance Policy (the "Policy"), which will apply to the following executive officers: Marc Rothman (Executive Vice President and Chief Financial Officer), Albert Liu (Executive Vice President, Corporate Development and General
Counsel), Eliezer Yanay (Executive Vice President and Chief Operations Officer), Jennifer Miles (President, VeriFone Americas), Bulent Ozayaz (President, VeriFone
Southern Europe, Russia, Middle East and Africa) and Sunil Kappagoda (President, VeriFone Asia Pacific) (together, the "Participants"). The Policy has a fixed term of three years
(subject to extension for up to one year if there is a change of control (as defined in the Policy) during the last twelve months of the term).
Under the terms of the Policy, in the event of a termination of the Participant's employment by the Company "without cause" (as
defined in the Policy) (other than in the case of a change of control or Leadership Change as described in the paragraph below), the Participant will be entitled to severance benefits equal to (i) 12 months' base salary and (ii) 12
months' medical, dental, vision and life insurance benefit continuation/COBRA coverage, subject to certain exceptions (such benefits continuation described in clause (ii) being referred to as "Benefits Coverage").
In the event of a termination of the Participant's employment by the Company without cause or termination by the Participant of his or
her employment for "good reason" (as defined in the Policy), during the period beginning 3 months prior to and extending 12 months after a "change of control" (as defined in the Policy) or the first appointment of a new permanent
CEO after the effective date of the Policy (a "Leadership Change"), the Participant will be entitled to 12 months' base salary (or 1.5 times that amount in the case of a Leadership Change), as well as Benefits Coverage and
acceleration of the Participant's then-outstanding equity awards, all as described in the Policy. The payments and other benefits described in this paragraph relating to a qualifying termination event in the 3 months prior to a change of
control or Leadership Change apply only where termination of employment is at the request of the third party (in the case of a change of control), or at the request of the new CEO (in the case of a Leadership Change).
All payments and other benefits under the Policy are subject to the Participant's granting of a release and compliance with certain
non-competition, non-solicitation and non-disparagement covenants.
The payments and other benefits under the Policy are not duplicative
of benefits under other policies and agreements and in the event of a duplication or conflicting benefit, the Participant will receive the more favorable of the two provisions.
The foregoing is qualified in its entirety by reference to the full text of the Policy, which is attached hereto as Exhibit 10.2 and
incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
10.1
Offer Letter, dated September 15, 2013
10.2
Executive Severance Policy
99.1
Press Release, dated September 23, 2013
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
VERIFONE SYSTEMS, INC.
By:
/s/ Albert Liu
Name:
Albert Liu
Date: September 23, 2013
Title:
EVP, Corporate Development and General Counsel
EXHIBIT INDEX
Exhibit
No.
Description
10.1
Offer Letter, dated September 15, 2013
10.2
Executive Severance Policy
99.1
Press Release, dated September 23, 2013