**Exhibit 10.11**

**AMENDED AND RESTATED**

**EXECUTIVE EMPLOYMENT AGREEMENT**

**THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT** (the “Agreement”) is effective as of December 4, 2007 by andbetween **Jackson Hewitt Tax Service Inc.**(the “Company”) and **Mark L. Heimbouch** (the “Executive”). 

**WHEREAS**, the Company and the Employee have entered into that certain Employment Agreement dated as of July 20, 2006 (the “Original Agreement”); 

**WHEREAS**, the Company and the Employee desire to amend and restate the Original Agreement as provided hereby; 

**NOW THEREFORE**, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are herebyacknowledged, the parties hereby agree to amend and restate the Original Agreement as follows: 

**SECTION 1**

**EMPLOYMENT**

**1.1**TheCompany agrees to employ the Executive and the Executive agrees to be employed by the Company for the Period of Employment as provided in Section 3 below and upon the terms and conditions provided in this Agreement. 

**SECTION 2**

**POSITION ANDRESPONSIBILITIES**

**2.1**During the Period of Employment, the Executive will serve as Senior Executive Vice President and ChiefOperating Officer of the Company and, subject to the direction of the Chief Executive Officer of the Company (the “Supervising Officer”), will perform such duties and exercise such supervision with regard to the business of theCompany as are associated with such position, as well as such additional duties as may be prescribed from time to time by the Supervising Officer. In addition, Executive shall serve as Interim Chief Financial Officer and Treasurer until such timethat the Supervising Officer determines that Executive shall no longer need to serve in such capacities. 

**2.2**The Executive will,during the Period of Employment, devote substantially all of his time and attention during normal business hours to the performance of services for the Company, except during customary vacation periods and periods of illness. The Executive willmaintain a primary office and conduct his business in Parsippany, New Jersey, except for normal and reasonable business travel in connection with his duties hereunder. Nothing contained in this Agreement will prevent the Executive from serving oncivic and charitable boards or from conducting his personal affairs. 

**2.3**The Executive will, in accordance with the Company’spolicy and procedures and applicable law, give the appropriate certifications with respect to the Company’s publicly filed financial statements. 

**SECTION 3**

**PERIOD OF EMPLOYMENT**

**3.1**The period of the Executive’s employment under thisAgreement (the “Period of Employment”) will begin on the date of this Agreement and end on the third anniversary of such date, subject to extension or termination as provided in this Agreement. The Period of Employment shallautomatically be extended for successive one year terms until such time that the Company delivers written notice to the Executive that this Agreement shall not be so extended in accordance with the following sentence. To be effective, such writtennotice must be delivered by the Company to the Executive not less than 90 nor more than 180 days prior to the end of the initial Period of Employment (or any subsequent Period of Employment, as the case may be). 

**SECTION 4**

**COMPENSATION ANDBENEFITS**

**4.1**Compensation. For all services rendered by the Executive pursuant to this Agreement during the Periodof Employment, including services as an executive, officer, director or committee member of the Company or any subsidiary or affiliate thereof, the Executive will be compensated as follows: 

**(a)**Base Salary. The Company will pay the Executive a fixed base salary (“Base Salary”) of not less than $475,000, peryear. From time to time, the Executive may be eligible to receive annual increases as the Company deems appropriate, in accordance with the Company’s customary policies and procedures regarding the salaries of executive officers, includingpursuant to annual compensation reviews to occur no less than once per year, and with due consideration given to the published Consumer Price Index applicable to the New York/New Jersey greater metropolitan area. Annual salary increases shall beeffective as of the beginning of each fiscal year (commencing with the 2009 fiscal year). Base Salary will be payable according to the customary payroll practices of the Company, but in no event less frequently than once each month. 

**(b)**Annual Incentive Awards. The Executive will be eligible for discretionary annual incentive compensation awards. The Executive will beeligible to receive an annual bonus opportunity in respect of each fiscal year of the Company during the Period of Employment based upon a target bonus equal to no less than 100% of his then current Base Salary during such fiscal year(“Target Bonus”); provided, however, that such bonus will be subject to the attainment by the Company of applicable performance targets reasonably established and certified by the Board or the Compensation Committee of the Board(the “Committee”); provided, further, that such performance targets shall provide for an annual bonus opportunity of not less than 200% of Target Bonus. Performance criteria for the Executive shall be based on Company performancetargets and individual performance targets. The performance targets may relate to such financial and/or business criteria of the Company and its subsidiaries or business units, as determined by the Board and/or the Committee in its sole discretion(each such annual bonus, an “Incentive Compensation Award”). 

**(c)**Long-Term Incentive Awards. At such timesas the Board or the 

 

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Committee determines to conduct annual or periodic grants of long term incentive awards to employees and officers of the Company, the Executive will beeligible to receive such grants, subject to the sole and complete discretion of the Board or the Committee, and upon such terms and conditions as determined by the Board or the Committee, but with due consideration given to the Executive’sposition with the Company and the Executive’s historical performance and anticipated future contributions to the Company. 

**(d)**Additional Benefits. 

(i) Other Compensation. The Executive will be entitled to participate in all other compensation andemployee benefit plans or programs offered generally to employees of the Company, and will receive all perquisites offered to executive officers of the Company, in either case pursuant to any plan or program now in effect, or later established bythe Company. The Executive will participate to the extent permissible under the terms and provisions of such plans or programs, and in accordance with the terms of such plans and programs. 

(ii) Vacation, Holidays and Sick Leave. During the Period of Employment, the Executive shall be entitled to paid vacation and paid holidays andsick leave in accordance with the Company’s standard policies for its executive officers. 

(iii) Services Furnished. TheCompany shall furnish the Executive with office space, secretarial assistance and such other facilities and services as shall be suitable to the Executive’s position and adequate for the performance of his duties hereunder or otherwisesuitable. 

**SECTION 5**

**BUSINESS EXPENSES**

**5.1**The Company will reimburse the Executive for all reasonable travel and other expensesincurred by the Executive in connection with the performance of his duties and obligations under this Agreement. The Executive will comply with such limitations and reporting requirements with respect to expenses as may be established by the Companyfrom time to time and will promptly provide all appropriate and requested documentation in connection with such expenses. 

**SECTION 6**

**DISABILITY**

**6.1**If the Executive becomes Disabled, as defined below, during the Period of Employment, the Period of Employment may be terminated at the option of the Executive upon notice of resignation to the Company, or at the option of theCompany upon 30 days’ advance notice of termination to the Executive. The Company’s obligation to make payments to the Executive under this Agreement will cease as of such date of termination, except for Base Salary and IncentiveCompensation Awards earned but unpaid as of the date of such termination, and except for payment of a pro rata portion of his Incentive Compensation Award in respect of the fiscal year in which such termination occurs (paid at target level). Inaddition, upon such event, all of the Executive’s outstanding and unvested stock options and any other equity awards or 

 

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other incentive or compensation that is subject to vesting will become immediately and fully vested and exercisable and all such options, awards, incentivesand compensation shall remain exercisable in accordance with the terms of the respective plans and/or agreements. For purposes of this Agreement, “Disabled” means the Executive’s inability to perform his duties hereunder as aresult of serious physical or mental illness or injury for a period of no less than 180 days, together with a determination by an independent medical authority that the Executive is currently unable to perform such duties. Such medical authorityshall be mutually and reasonably agreed upon by the Company and the Executive and such opinion shall be binding on the Company and the Executive. 

**SECTION 7**

**DEATH**

**7.1**In the event of the death of the Executive during the Period of Employment, the Period of Employment will end and the Company’s obligation to make payments under this Agreement will cease as of thedate of death, except for Base Salary and Incentive Compensation Awards earned but unpaid through the date of death, and except for payment of a pro rata portion of his Incentive Compensation Award in respect of the fiscal year in which his deathoccurs (paid at target level); provided that such Incentive Compensation Award shall not be prorated if the date of death occurs in the last four months of the fiscal year. In addition, upon such event, all of the Executive’s outstanding andunvested stock options and any other equity awards or other incentive or compensation that is subject to vesting will become immediately and fully vested and exercisable and all such options, awards, incentives and compensation shall remainexercisable in accordance with the terms of the respective plans and/or agreements. All such amounts will be paid to the Executive’s surviving spouse, estate or personal representative, as applicable. 

**SECTION 8**

**EFFECT OF TERMINATIONOF EMPLOYMENT**

**8.1**Without Cause Termination and Constructive Discharge. If the Executive’s employmentterminates due to either a Without Cause Termination or a Constructive Discharge, as defined below, the Company will pay the Executive (or his surviving spouse, estate or personal representative, as applicable) upon such Without CauseTermination or Constructive Discharge (i) a lump sum cash payment equal to the sum of the Executive’s then current Base Salary plus his then current target Incentive Compensation Award, multiplied by the Severance Multiplier (as definedbelow), (ii) any and all Base Salary and Incentive Compensation Awards earned but unpaid through the date of such termination and (iii) an amount equal to Incentive Compensation Award at target level for the year in which the terminationoccurs. In addition, upon such event;, all of the Executive’s outstanding and unvested stock options and any other equity awards or other incentive or compensation that is subject to vesting will become immediately and fully vested andexercisable and all outstanding options, awards, incentives and compensation shall be extended and remain exercisable until the later of (1) December 31st of the year in which they would otherwise have expired or (2) the 15th day ofthe 3rd month following the month in which they would have expired; provided however, that awards granted after the date of execution of the Original Agreement shall be extended and remain exercisable until the later of the foregoing and the secondanniversary of the date of termination (subject to 

 

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the original expiration date of the option). In addition, the Executive shall be entitled to continue coverage under all health and welfare plans for theExecutive and members of the Executive’s immediate family including medical and dental benefits, for up to twenty-four (24) months with the Executive’s cost being no greater than the cost applicable to the Executive had the Executivebeen an active full time employee of the Company at such time. 

**8.2**Termination for Cause; Resignation. If theExecutive’s employment terminates due to a Termination for Cause or a Resignation, Base Salary and any Incentive Compensation Awards earned but unpaid as of the date of such termination will be paid to the Executive in a lump sum. Except asprovided in this paragraph, the Company will have no further obligations to the Executive hereunder. All of the Executive’s outstanding options, awards, incentives and compensation shall be governed by the plan and/or agreement pursuant towhich it was granted, issued or provided. 

**8.3**For purposes of this Agreement, the following terms have the following meanings:

**(a)**“Termination for Cause” means (i) the Executive’s willful failure to substantially perform his dutiesas an employee of the Company or any subsidiary thereof (other than any such failure resulting from incapacity due to physical or mental illness), (ii) any act of fraud, misappropriation, embezzlement, material dishonesty or similar conduct, ineach case against the Company or any subsidiary, (iii) the Executive’s conviction of a felony or any crime involving moral turpitude (which conviction, due to the passage of time or otherwise, is not subject to further appeal),(iv) the Executive’s gross negligence in the performance of his duties or (v) the Executive makes (or has been found to have made) a false certification to the Company pertaining to its financial statements. The Company willprovide the Executive a written notice which describes the circumstances being relied on for the termination with respect to this paragraph. The Executive will have thirty (30) days after receipt of such notice to remedy the situation prior tothe effectiveness of the Termination for Cause, unless the Company reasonably and in good faith determines that such situation is incurable. A Termination for Cause shall not be effective hereunder unless the Executive is first given an opportunityto address the Board, with his counsel present if he so elects, upon reasonable notice in advance of any action taken by the Board. 

**(b)**“Constructive Discharge” means (i) any material failure of the Company to fulfill its obligations under this Agreement (including without limitation any reduction of the Base Salary, as the same may be increased during thePeriod of Employment, or other element of compensation), (ii) a material and adverse change to the Executive’s titles, positions, duties, scope of authority, and responsibilities to the Company, (iii) the relocation of theExecutive’s primary business office to a location more than 20 miles from Parsippany, New Jersey or (iv) the Company fails to cause this Agreement to be assumed by any successor to the business of the Company. The Executive will providethe Company a written notice which describes the circumstances being relied on for the termination with respect to this Agreement within sixty (60) days after the event giving rise to the notice. The Company will have sixty (60) days afterreceipt of such notice to remedy the situation prior to the termination for Constructive Discharge. 

**(c)**“Without CauseTermination” or “Terminated Without Cause” means termination of the Executive’s employment by the Company other than due to death, disability, or Termination for Cause. 

 

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**(d)**“Resignation” means a termination of the Executive’s employment by theExecutive, other than in connection with a Constructive Discharge. 

**(e)**“Severance Multiplier” means 200%;provided, however, that Severance Multiplier means 299% solely in the event that the applicable Without Cause Termination or Constructive Discharge occurs within one year of a Change in Control (as defined from time to time in the Company’sAmended and Restated 2004 Equity and Incentive Plan or subsequent plan). 

**8.4**Conditions to Payment and Acceleration. Allpayments due to the Executive under this Section 8 shall be made as soon as practicable; provided, however, that such payments, shall be subject to, and contingent upon, the execution by the Executive (or his beneficiary or estate) of arelease of any and all claims against the Company and its affiliates in such reasonable form agreed to by the Company and the Executive (which release will also require the Company to execute a release of claims against the Executive for any and allclaims, but only including claims which the Company is then aware of, and specifically excluding claims relating to fraud, criminal matters, and accounting irregularities). The payments due to the Executive under this Section 8 shall be in lieuof any other severance benefits otherwise payable to the Executive under any severance plan of the Company or its affiliates and/or any other agreement or arrangement. Nothing herein shall be construed as limiting the Executive’s entitlement toany other vested accrued benefits to which he (or his estate if applicable) is then entitled under the Company’s applicable employee benefit plans, including without limitation any disability or death benefits which may become payable.

**8.5**Resignation from the Board. The Executive agrees that effective with any termination, and as a condition to receivingany payments under Section 8.4 above, the Executive resigns from all directorships and committees of the Board of the Company and its subsidiaries. 

**SECTION 9**

**OTHER DUTIES OF THE EXECUTIVE DURING AND AFTER**

**THE PERIOD OF EMPLOYMENT**

**9.1**The Executive will, with reasonable notice during or after the Period of Employment, furnish information as may be in his possession and fully cooperate with the Company and its affiliates as may be requested in connection withany claims or legal action in which the Company or any of its affiliates is or may become a party. The foregoing shall not unreasonably interfere with the Executive’s duties to any successor employer. 

**9.2**The Executive recognizes and acknowledges that all information pertaining to this Agreement or to the affairs; business; results ofoperations; accounting methods, practices and procedures; members; acquisition candidates; financial condition; clients; customers or other relationships of the Company or any of its affiliates (“Information”) is confidentialand is a unique and valuable asset of the Company or any of its affiliates. Access to and knowledge of 

 

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certain of the Information is essential to the performance of the Executive’s duties under this Agreement. The Executive will not during the Period ofEmployment or thereafter, except to the extent reasonably necessary in performance of his duties under this Agreement, give to any person, firm, association, corporation, or governmental agency any Information, except as may be required by law. TheExecutive will not make use of the Information for his own purposes or for the benefit of any person or organization other than the Company or any of its affiliates. The Executive will also use his best efforts to prevent the disclosure of thisInformation by others. All records, memoranda, etc. relating to the business of the Company or its affiliates, whether made by the Executive or otherwise coming into his possession, are confidential and will remain the property of the Company or itsaffiliates. 

**9.3 (a)**During the Period of Employment and for the Post Termination Period thereafter (collectively, the“Restricted Period”), the Executive will not use his status with the Company or any of its affiliates to obtain loans, goods or services from another organization on terms that would not be available to him in the absence of hisrelationship to the Company or any of its affiliates. The Post Termination Period means a period of two (2) years following the Executive’s termination of employment if, in connection with such termination, the Executive receives severanceunder Section 8.1 of this Agreement and the Post Termination Period means a period of one (1) year following the Executive’s termination in all other cases, irrespective of the cause, manner or time of such termination other than aTermination for Cause. 

**(b)**During the Restricted Period, the Executive will not make any statements or perform any acts intended toor which may have the effect of advancing the interest of any existing or prospective competitors of the Company or any of its affiliates or in any way injuring the interests of the Company or any of its affiliates. During the Restricted Period, theExecutive, without prior express written approval by the Board, will not engage in, or directly or indirectly (whether for compensation or otherwise) own or hold proprietary interest in, manage, operate, or control, or join or participate inthe ownership, management, operation or control of, or furnish any capital to or be connected in any manner with, any party which competes in any way or manner with the business of the Company or any of its affiliates, as such business or businessesmay be conducted from time to time, either as a general or limited partner, proprietor, common or preferred shareholder, officer, director, agent, employee, consultant, trustee, affiliate, or otherwise. The Executive acknowledges that theCompany’s and its affiliates’ businesses are conducted nationally and agrees that the provisions in the foregoing sentence will operate throughout the United States. 

**(c)**During the Restricted Period, the Executive, without express prior written approval from the Board, will not solicit any then-current clientsof the Company or any of its affiliates for any existing business of the Company or any of its affiliates or discuss with any employee of the Company or any of its affiliates information or operation of any business intended to compete with theCompany or any of its affiliates. 

**(d)**During the Restricted Period, the Executive will not interfere with the employees or affairsof the Company or any of its affiliates or solicit or induce any person who is an employee of the Company or any of its affiliates to terminate any relationship such person may have with the Company or any of its affiliates, nor will the Executiveduring such period directly or indirectly engage, employ or compensate, or cause or permit any person with which 

 

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the Executive may be affiliated, to engage, employ or compensate, any employee of the Company or any of its affiliates. The Executive hereby represents andwarrants that the Executive has not entered into any agreement, understanding or arrangement with any employee of the Company or any of its affiliates pertaining to any business in which the Executive has participated or plans to participate, or tothe employment, engagement or compensation of any such employee. 

**(e)**For the purposes of this Agreement, “proprietaryinterest” means legal or equitable ownership, whether through stock holding or otherwise, of an equity interest in a business, firm or entity or ownership of more than 5% of any class of equity interest in a publicly-held company and theterm “affiliate” will include without limitation all subsidiaries and licensees of the Company. 

**9.4**The Executivehereby acknowledges that damages at law may be an insufficient remedy to the Company if the Executive violates the terms of this Agreement and that the Company will be entitled, upon making the requisite showing, to preliminary and/or permanentinjunctive relief in any court of competent jurisdiction to restrain the breach of or otherwise to specifically enforce any of the covenants contained in this Section 9 without the necessity of showing any actual damage or that monetary damageswould not provide an adequate remedy. Such right to an injunction will be in addition to, and not in limitation of, any other rights or remedies the Company may have. Without limiting the generality of the foregoing, neither party will oppose anymotion the other party may make for any expedited discovery or hearing in connection with any alleged breach of this Section 9. 

**9.5**The period of time during which the provisions of this Section 9 will be in effect will be extended by the length of time during which the Executive is in breach of the terms hereof as determined by any court of competentjurisdiction on the Company’s application for injunctive relief. 

**9.6**The Executive agrees that the restrictions contained inthis Section 9 are an essential element of the compensation the Executive is granted hereunder and but for the Executive’s agreement to comply with such restrictions, the Company would not have entered into this Agreement. 

**SECTION 10**

**INDEMNIFICATION**

**10.1**The Company will indemnify the Executive to the fullest extent permitted by the laws of the state of theCompany’s incorporation in effect at that time, or the certificate of incorporation and by-laws of the Company, whichever affords the greater protection to the Executive. If applicable, the Company will maintain D&O insurance for theExecutive on a basis no less favorable than it maintains for other officers of the Company. 

**SECTION 11**

**MITIGATION**

**11.1**TheExecutive will not be required to mitigate the amount of any payment provided for hereunder by seeking other employment or otherwise, nor will the amount of any 

 

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such payment be reduced by any compensation earned by the Executive as the result of employment by another employer after the date the Executive’semployment hereunder terminates or by offset against any amount claimed to be owed by the Executive to the Company, or otherwise. 

**SECTION 12**

**WITHHOLDING TAXES; EXCISE TAXES**

**12.1**The Executive acknowledges and agrees that the Company may directly or indirectly withhold from any payments under this Agreement allfederal, state, city or other taxes that will be required pursuant to any law or governmental regulation. 

**12.2**If the Executivebecomes entitled to the severance payments described in Section 8.1 above, and if any of the payments or benefits received or to be received by the Executive with respect to equity or equity-type awards of the Company (including but not limitedto options to acquire common stock of the Company) pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a Change in Control or any person affiliated with theCompany or such person) (all such payments and benefits, excluding the Gross-Up Payment (as defined below), being hereinafter referred to as the “Relevant Payments”) will be subject to the excise tax (the “ExciseTax”) imposed under section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall pay to the Executive an additional amount (the “Gross-Up Payment”) such that thenet amount retained by the Executive, after deduction of any Excise Tax on the Relevant Payments and any federal, state and local income and employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to the Relevant Payments.

**(a)**For purposes of determining whether any of the Relevant Payments will be subject to the Excise Tax and the amount of suchExcise Tax, (i) all payments or benefits received or to be received by the Executive in connection with a Change in Control or the Executive’s termination of employment (whether pursuant to the terms of this Agreement or any other plan,arrangement or agreement with the Company, any person whose actions result in a Change in Control or any person affiliated with the Company or such person) (all such payments and benefits, excluding the Gross-Up Payment, being hereinafterreferred to as the “Total Payments”) shall be treated as “parachute payments” (within the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax counsel (“TaxCounsel”) reasonably acceptable to the Executive and selected by the accounting firm which was, immediately prior to the Change in Control, the Company’s independent auditor (the “Auditor”), such payments orbenefits (in whole or in part) do not constitute parachute payments, including by reason of section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within the meaning of section 280G(b)(l) of theCode shall be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered (within the meaning of section280G(b)(4)(B) of the Code) in excess of the Base Amount (within the meaning of section 280G(b)(3) of the Code) allocable to such reasonable compensation, or are otherwise not subject to the Excise Tax, and (iii) the value ofany noncash benefits or any deferred payment or benefit shall be determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the Code. For purposes of determining the amount of the Gross-Up Payment, theExecutive shall 

 

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be deemed to pay federal income tax at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be madeand state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the date of termination of his employment, net of the maximum reduction in federal income taxes which could beobtained from deduction of such state and local taxes. 

**(b)**In the event that the Excise Tax is finally determined to be less thanthe amount taken into account hereunder in calculating the Gross-Up Payment, the Executive shall repay to the Company, within five (5) business days following the time that the amount of such reduction in the Excise Tax is finally determined,the portion of the Gross-Up Payment attributable to such reduction (plus that portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income and employment taxes imposed on the Gross-Up Payment being repaid by theExecutive), to the extent that such repayment results in a reduction in the Excise Tax and a dollar-for-dollar reduction in the Executive’s taxable income and wages for purposes of federal, state and local income and employment taxes, plusinterest on the amount of such repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to exceed the amount taken into account hereunder in calculating the Gross-Up Payment(including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess (plus any interest, penalties oradditions payable by the Executive with respect to such excess) within five (5) business days following the time that the amount of such excess is finally determined. The Executive and the Company shall each reasonably cooperate with theother in connection with any administrative or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the Total Payments. 

**SECTION 13**

**COMPLIANCE WITH SECTION 409A**

**13.1**Notwithstanding anything herein to the contrary, (i) if at the time of the Executive’s termination of employment with the Companythe Executive is a “specified employee” as defined in Section 409A of the Code and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary, asdetermined by the Company, in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction insuch payments or benefits ultimately paid or provided to the Executive and without interest accruing thereon) until the date that is six months following the Executive’s termination of employment with the Company (or the earliest date as ispermitted under Section 409A of the Code) and (ii) if any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, suchpayments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner,determined by the Board, that does not cause such an accelerated or additional tax. The Company shall consult with the Executive in good faith regarding the implementation of the provisions of this Section 13.1; provided that neither theCompany nor any of its employees or representatives shall have any liability to the Executive with respect to thereto. 

 

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**SECTION 14**

**EFFECT OF PRIOR AGREEMENTS**

**14.1**This Agreement constitutes the entire agreementbetween the parties hereto and supersedes all prior employment agreements, understandings and arrangements (oral or written) between the parties hereto. Notwithstanding the foregoing, the following provisions relating to the Executive contained inthat certain Employment Agreement dated June 2004 among Jackson Hewitt Tax Service Inc., Cendant Corporation and the Executive shall remain in full force and effect: (x) Section IV(iii)(a); (y) the second paragraph ofSection IV(iv); and (z) the second and third paragraph of Section X. 

**SECTION 15**

**CONSOLIDATION, MERGER OR SALE OF ASSETS**

**15.1**Nothing in this Agreement will preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes this Agreement and all obligations andundertakings of the Company hereunder. Upon such a consolidation, merger or sale of assets the term the “Company” will mean the other corporation and this Agreement will continue in full force and effect. In addition to theobligations imposed by law upon any successor to the Company will require any successor (by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form andsubstance reasonably satisfactory to the Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure ofthe Company to obtain such agreement prior to the effectiveness of such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive wouldbe entitled to hereunder if the Executive’s employment were to terminate in a Without Cause Termination provided in Section 8.1 hereof using a Change in Control Severance Multiplier, except that the date on which any such successionbecomes effective shall be deemed the date of the Executive’s termination of employment. 

**SECTION 16**

**MODIFICATION; WAIVER**

**16.1**This Agreement may not be modified or amended except in writing signed by the parties. No term or condition of this Agreement will be deemed to have been waived except in writing by the party charged with waiver. A waiver will operate only as tothe specific term or condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived 

**SECTION 17**

**GOVERNING LAW**

**17.1**This Agreement has been executed and delivered in the State of New Jersey and its validity, interpretation, performance and enforcement willbe governed by the internal laws of that state. 

 

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**SECTION 18**

**ARBITRATION**

**18.1**Any controversy, dispute or claim arising out of or relating to thisAgreement or the breach hereof which cannot be settled by mutual agreement (other than with respect to the matters covered by Section 9 for which the Company may, but will not be required to, seek injunctive relief) will be finally settledby binding arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state arbitration law) as follows: Any party who is aggrieved will deliver a notice to the other party setting forth the specific pointsin dispute. Any points remaining in dispute twenty (20) days after the giving of such notice may be submitted to arbitration in Parsippany, New Jersey, to the American Arbitration Association, before a single arbitrator appointed in accordancewith the arbitration rules of the American Arbitration Association, modified only as herein expressly provided. After the aforesaid twenty (20) days, either party, upon ten (10) days notice to the other, may so submit the points in disputeto arbitration. The arbitrator may enter a default decision against any party who fails to participate in the arbitration proceedings. 

**18.2**The decision of the arbitrator on the points in dispute will be final, unappealable and binding, and judgment on the award may be entered in any court having jurisdiction thereof. 

**18.3**Except as otherwise provided in this Agreement, the arbitrator will be authorized to apportion its fees and expenses and the reasonableattorneys’ fees and expenses of any such party as the arbitrator deems appropriate. In the absence of any such apportionment, the fees and expenses of the arbitrator will be borne equally by each party, and each party will bear the fees andexpenses of its own attorney. Notwithstanding the foregoing, the Executive shall be entitled to receive reimbursement of all fees and cost incurred by the Executive in connection with any arbitration in the event the Executive is deemed to haveprevailed in such arbitration as determined by the arbitrator. 

**18.4**The parties agree that this Section 18 has been includedto rapidly and inexpensively resolve any disputes between them with respect to this Agreement, and that this Section 18 will be grounds for dismissal of any court action commenced by either party with respect to this Agreement, other thanpost-arbitration actions seeking to enforce an arbitration award. In the event that any court determines that this arbitration procedure is not binding, or otherwise allows any litigation regarding a dispute, claim or controversy covered by thisAgreement to proceed, the parties hereto hereby waive any and all right to a trial by jury in or with respect to such litigation. 

**18.5**The parties will keep confidential, and will not disclose to any person, except as may be required by law, the existence of any controversy hereunder, the referral of any such controversy to arbitration or the status or resolution thereof.

**SECTION 19**

**SURVIVAL**

**19.1**Sections 8, 9, 10, 11, 12, 13, 14, 15, 17 and 18 will continue in full force inaccordance with their respective terms notwithstanding any termination of the Period of Employment. 

 

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**SECTION 20**

**SEPARABILITY**

**20.1**All provisions of this Agreement are intended to be severable. Inthe event any provision or restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in part, such finding will in no way affect the validity or enforceability of any other provision of this Agreement. Theparties hereto further agree that any such invalid or unenforceable provision will be deemed modified so that it will be enforced to the greatest extent permissible under law, and to the extent that any court of competent jurisdiction determines anyrestriction herein to be unreasonable in any respect, such court may limit this Agreement to render it reasonable in the light of the circumstances in which it was entered into and specifically enforce this Agreement as limited. 

**IN WITNESS WHEREOF**, the undersigned have executed this Agreement as of the date first above written. 

 
**JACKSON HEWITT TAX SERVICES INC.**
/s/ Peter Karpiak
By: Peter KarpiakTitle: Senior Vice President**EXECUTIVE**
/s/ Mark L. Heimbouch
Mark L. Heimbouch
 

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