Document:

exhibit1010.htm

    Exhibit
      10.10

    

    INDEMNIFICATION
      AGREEMENT

     

    This
      Agreement is made as of the _____ day of _______ 2005, by and between Tier
      Technologies, Inc., a Delaware corporation (the “Corporation”), and
      _______________ (the “Indemnitee”), a director of the Corporation.

     

    WHEREAS,
      it is essential to the Corporation to retain and attract as directors the most
      capable persons available, and

     

    WHEREAS,
      the Corporation succeeded to all of the business, properties, assets and
      liabilities of its sole stockholder, Tier Technologies, Inc., a California
      corporation (“Tier California”), by means of a merger (the “Re-incorporation
      Merger”) of Tier California with and into the Corporation, and

     

    WHEREAS,
      Tier California and the Indemnitee previously entered into an indemnification
      agreement governed by California law (the “California Agreement”),
      and

     

    WHEREAS,
      as of the effective date of the Re-incorporation Merger, the Corporation and
      the
      Indemnitee desire that this Agreement shall govern events occurring on or after
      the effective date of the Re-incorporation Merger and the California Agreement
      shall remain in full force and effect only with respect to events occurring
      prior to the effective date of the Re-incorporation Merger, and

     

    WHEREAS,
      the Corporation desires the Indemnitee to serve, or continue to serve, as a
      director or officer of the Corporation.

     

    NOW
      THEREFORE, the Corporation and the Indemnitee do hereby agree as
      follows:

     

    1.    Agreement
      to Serve.  The Indemnitee agrees to serve or continue to serve as
      a director or officer of the Corporation for so long as the Indemnitee is duly
      elected or appointed or until such time as the Indemnitee tenders a resignation
      in writing.

     

    2.    Definitions.  As
      used in this Agreement:

     

     (a)  The
      term “Proceeding” shall include any threatened, pending or completed action,
      suit, arbitration, alternative dispute resolution proceeding, administrative
      hearing or other proceeding, whether brought by or in the right of the
      Corporation or otherwise and whether of a civil, criminal, administrative or
      investigative nature, and any appeal therefrom.

     

     (b)  The
      term “Corporate Status” shall mean the status of a person who is or was a
      director or officer of the Corporation, or is or was serving, or has agreed
      to
      serve, at the request of the Corporation, as a director, officer, partner,
      trustee, member, employee or agent of another corporation, partnership, joint
      venture, trust, limited liability company or other enterprise.

     

     (c)  The
      term “Expenses” shall include, without limitation, attorneys’ fees, retainers,
      court costs, transcript costs, fees and expenses of experts, travel expenses,
      duplicating 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
costs,
        printing and binding costs, telephone charges, postage, delivery service
        fees
        and other disbursements or expenses of the types customarily incurred in
        connection with investigations, judicial or administrative proceedings or
        appeals, but shall not include the amount of judgments, fines or penalties
        against Indemnitee or amounts paid in settlement in connection with such
        matters.

    

     

     (d)  References
      to “other enterprise” shall include employee benefit plans; references to
“fines” shall include any excise tax assessed with respect to any employee
      benefit plan; references to “serving at the request of the Corporation” shall
      include any service as a director, officer, employee or agent of the Corporation
      which imposes duties on, or involves services by, such director, officer,
      employee, or agent with respect to an employee benefit plan, its participants,
      or beneficiaries; and a person who acted in good faith and in a manner such
      person reasonably believed to be in the interests of the participants and
      beneficiaries of an employee benefit plan shall be deemed to have acted in
      a
      manner “not opposed to the best interests of the Corporation” as referred to in
      this Agreement.

     

    3.    Indemnification
      in Third-Party Proceedings.  Subject to Paragraph 26 of this
      Agreement, the Corporation shall indemnify the Indemnitee in accordance with
      the
      provisions of this Paragraph 3 if the Indemnitee was or is a party to or
      threatened to be made a party to or otherwise involved in any Proceeding (other
      than a Proceeding by or in the right of the Corporation to procure a judgment
      in
      its favor) by reason of the Indemnitee’s Corporate Status or by reason of any
      action alleged to have been taken or omitted in connection therewith, against
      all Expenses, judgments, fines, penalties and amounts paid in settlement
      actually and reasonably incurred by or on behalf of the Indemnitee in connection
      with such Proceeding, if the Indemnitee acted in good faith and in a manner
      which the Indemnitee reasonably believed to be in, or not opposed to, the best
      interests of the Corporation and, with respect to any criminal Proceeding,
      had
      no reasonable cause to believe that his or her conduct was
      unlawful.  The termination of any Proceeding by judgment, order,
      settlement, conviction or upon a plea of nolocontendere or its
      equivalent, shall not, of itself, create a presumption that the Indemnitee
      did
      not act in good faith and in a manner which the Indemnitee reasonably believed
      to be in, or not opposed to, the best interests of the Corporation, and, with
      respect to any criminal Proceeding, had reasonable cause to believe that his
      or
      her conduct was unlawful.

     

    4.    Indemnification
      in Proceedings by or in the Right of the Corporation.  Subject to
      Paragraph 26 of this Agreement, the Corporation shall indemnify the Indemnitee
      in accordance with the provisions of this Paragraph 4 if the Indemnitee was
      or is a party to or threatened to be made a party to or otherwise involved
      in
      any Proceeding by or in the right of the Corporation to procure a judgment
      in
      its favor by reason of the Indemnitee’s Corporate Status or by reason of any
      action alleged to have been taken or omitted in connection therewith, against
      all Expenses actually and reasonably incurred and, to the extent permitted
      by
      law, amounts paid in settlement by or on behalf of the Indemnitee in connection
      with such Proceeding, if the Indemnitee acted in good faith and in a manner
      which the Indemnitee reasonably believed to be in, or not opposed to, the best
      interests of the Corporation, except that no indemnification shall be made
      under
      this Paragraph 4 in respect of any claim, issue, or matter as to which the
      Indemnitee shall have been adjudged to be liable to the Corporation, unless,
      and
      only to the extent, that the Court of Chancery of Delaware or the court in
      which
      such action or suit was brought shall determine upon application that, despite
      the adjudication of such liability but in view of all the circumstances of
      

    
      
        
        

      

      
        2

        
          

        

      

      
        
        
the
        case, the Indemnitee is fairly and reasonably entitled to indemnity for such
        Expenses as the Court of Chancery or such other court shall deem
        proper.

    

     

    5.    Exceptions
      to Right of Indemnification.  Notwithstanding anything to the
      contrary in this Agreement, except as set forth in Paragraph 10, the
      Corporation shall not indemnify the Indemnitee in connection with a Proceeding
      (or part thereof) initiated by the Indemnitee unless the initiation thereof
      was
      approved by the Board of Directors of the
      Corporation.  Notwithstanding anything to the contrary in this
      Agreement, the Corporation shall not indemnify the Indemnitee to the extent
      the
      Indemnitee is reimbursed from the proceeds of insurance or otherwise receives
      payment of any amounts indemnifiable hereunder under any contract, agreement
      or
      otherwise, and in the event the Corporation makes any indemnification payments
      to the Indemnitee and the Indemnitee is subsequently reimbursed from the
      proceeds of insurance or otherwise receives payment of any amounts indemnifiable
      hereunder under any contract, agreement or otherwise, the Indemnitee shall
      promptly refund such indemnification payments to the Corporation to the extent
      of such insurance reimbursement or other payments.

     

    6.    Indemnification
      of Expenses of Successful Party.  Subject to Paragraph 26 of this
      Agreement, but notwithstanding any other provision of this Agreement, to the
      extent that the Indemnitee has been successful, on the merits or otherwise,
      in
      defense of any Proceeding or in defense of any claim, issue or matter therein,
      the Indemnitee shall be indemnified against all Expenses incurred by or on
      behalf of the Indemnitee in connection therewith.  Without limiting
      the foregoing, if any Proceeding or any claim, issue or matter therein is
      disposed of, on the merits or otherwise (including a disposition without
      prejudice), without (i) the disposition being adverse to the Indemnitee,
      (ii) an adjudication that the Indemnitee was liable to the Corporation,
      (iii) a plea of guilty or nolo contendere by the Indemnitee,
      (iv) an adjudication that the Indemnitee did not act in good faith and in a
      manner the Indemnitee reasonably believed to be in or not opposed to
      the best interests of the Corporation, and (v) with respect to any criminal
      proceeding, an adjudication that the Indemnitee had reasonable cause to believe
      his or her conduct was unlawful, the Indemnitee shall be considered for the
      purposes hereof to have been wholly successful with respect
      thereto.

     

    7.    Notification
      and Defense of Claim.

     

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

     

               
(b) Subject
      to the
      provisions of the last sentence of this Section 7(b) and of Section 7(c) below,
      the Corporation shall have the right to defend Indemnitee in any Proceeding
      which may give rise to indemnification hereunder; provided, however, that the
      Corporation shall notify Indemnitee of any such decision to defend within 15
      calendar days following receipt of notice of any such Proceeding under Section
      7(a) above.  After notice from the Corporation to 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        
the
        Indemnitee of its election so to defend the Indemnitee, the Corporation shall
        not be liable to the Indemnitee for any legal or other expenses subsequently
        incurred by the Indemnitee in connection with such Proceeding, other than
        as
        provided in the last sentence of this Section 7(b) and in Section 7(c)
        below.  The Corporation shall not, without the prior written consent
        of Indemnitee, which shall not be unreasonably withheld or delayed, consent
        to
        the entry of any judgment against Indemnitee or enter into any settlement
        or
        compromise which (i) includes an admission of fault of Indemnitee or (ii)
        does
        not include, as an unconditional term thereof, the full release of Indemnitee
        from all liability in respect of such Proceeding, which release shall be
        in form
        and substance reasonably satisfactory to Indemnitee.

    

     

               
(c) Notwithstanding
      the provisions of Section 7(b) above, if in a Proceeding to which Indemnitee
      is
      a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
      concludes, based upon advice of counsel approved by the Corporation, which
      approval shall not be unreasonably withheld, that he may have separate defenses
      or counterclaims to assert with respect to any issue which may not be consistent
      with the Corporation in such Proceeding, (ii) Indemnitee reasonably concludes,
      based upon advice of counsel approved by the Corporation, which approval shall
      not be unreasonably withheld, that an actual or apparent conflict of interest
      or
      potential conflict of interest exists between Indemnitee and the Corporation,
      or
      (iii) if the Corporation fails to assume the defense of such Proceeding in
      a
      timely manner, Indemnitee shall be entitled to be represented by separate legal
      counsel of Indemnitee’s choice, subject to the prior approval of the
      Corporation, which shall not be unreasonably withheld, at the expense of the
      Corporation.

     

    8.    Advancement
      of Expenses.  Subject to the provisions of Paragraphs 9 and
      26 of this Agreement, in the event that the Corporation does not assume the
      defense pursuant to Paragraph 7 of this Agreement of any Proceeding of
      which the Corporation receives notice under this Agreement, any Expenses
      incurred by or on behalf of the Indemnitee in defending such Proceeding shall
      be
      paid by the Corporation in advance of the final disposition of such Proceeding;
      provided, however, that notwithstanding anything herein to the
      contrary the payment of such Expenses incurred by or on behalf of the Indemnitee
      in advance of the final disposition of such Proceeding shall be made only upon
      receipt of an undertaking, in substantially the form set forth on Exhibit
      A hereto, by or on behalf of the Indemnitee to repay all amounts so advanced
      in the event that it shall ultimately be determined that the Indemnitee is
      not
      entitled to be indemnified by the Corporation as authorized in this
      Agreement.  Such undertaking shall be accepted without reference to
      the financial ability of the Indemnitee to make repayment.

     

    9.    Procedure
      for Indemnification.  In order to obtain indemnification or
      advancement of Expenses pursuant to Paragraphs 3, 4, 6 or 8 of this Agreement,
      the Indemnitee shall submit to the Corporation a written request.  Any
      such indemnification or advancement of Expenses shall be made promptly, and
      in
      any event within 30 days after receipt by the Corporation of the written
      request of Indemnitee, unless, with respect to indemnification, the Corporation,
      pursuant to the last sentence of this Section 9, determines within such 30-day
      period that Indemnitee did not meet the applicable standard of conduct set
      forth
      in Paragraph 3 or 4, as the case may be.  Such determinations as to
      indemnification and any determination that advanced Expenses must be repaid
      to
      the Corporation, shall be made in each instance (a) by a majority vote of
      the directors of the Corporation consisting of persons who are not at that
      time
      parties to the Proceeding (“disinterested directors”), whether or not a quorum,
      (b) by a committee of disinterested directors designated by a majority vote
      of disinterested directors, whether or not a 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        
quorum,
        (c) if there are no disinterested directors, or if the disinterested
        directors so direct, by independent legal counsel (who may, to the extent
        permitted by applicable law, be regular legal counsel to the Corporation)
        in a
        written opinion, or (d) by the stockholders of the
        Corporation.

    

     

    10.    Remedies.  The
      right to indemnification or advancement of Expenses as provided by this
      Agreement shall be enforceable by the Indemnitee in any court of competent
      jurisdiction.  Unless otherwise required by law, the burden of proving
      that indemnification is not appropriate shall be on the
      Corporation.  Neither the failure of the Corporation to have made a
      determination prior to the commencement of such action that indemnification
      is
      proper in the circumstances because the Indemnitee has met the applicable
      standard of conduct, nor an actual determination by the Corporation pursuant
      to
      Paragraph 9 that the Indemnitee has not met such applicable standard of
      conduct, shall be a defense to the action or create a presumption that the
      Indemnitee has not met the applicable standard of conduct.  The
      Indemnitee’s expenses (of the type described in the definition of “Expenses” in
      Paragraph 2(c)) reasonably incurred in connection with successfully
      establishing the Indemnitee’s right to indemnification, in whole or in part, in
      any such Proceeding shall also be indemnified by the Corporation.

     

    11.    Partial
      Indemnification.  If the Indemnitee is entitled under any
      provision of this Agreement to indemnification by the Corporation for some
      or a
      portion of the Expenses, judgments, fines, penalties or amounts paid in
      settlement actually and reasonably incurred by or on behalf of the Indemnitee
      in
      connection with any Proceeding but not, however, for the total amount thereof,
      the Corporation shall nevertheless indemnify the Indemnitee for the portion
      of
      such Expenses, judgments, fines, penalties or amounts paid in settlement to
      which the Indemnitee is entitled.

     

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

     

    13.    Term
      of Agreement.  This Agreement shall commence upon the effective
      date of the Re-incorporation Merger, and shall continue until and terminate
      upon
      the later of (a) six years after the date that the Indemnitee shall have ceased
      to serve as a director or officer of the Corporation or, at the request of
      the
      Corporation, as a director, officer, partner, trustee, member, employee or
      agent
      of another corporation, partnership, joint venture, trust, limited liability
      company or other enterprise or (b) the final termination of all Proceedings
      pending on the date set forth in clause (a) in respect of which the Indemnitee
      is granted rights of indemnification or advancement of Expenses hereunder and
      of
      any proceeding commenced by the Indemnitee pursuant to Paragraph 10 of this
      Agreement relating thereto.

     

    14.    Indemnification
      Hereunder Not Exclusive.  The indemnification and advancement of
      Expenses provided by this Agreement shall not be deemed exclusive of any other
      rights to which the Indemnitee may be entitled under the Certification of
      Incorporation, the By-Laws, any other agreement, any vote of stockholders or
      disinterested directors, the General Corporation Law of Delaware, any other
      law
      (common or statutory), or otherwise, both as to action in the Indemnitee’s
      Corporate Status and as to action in another capacity while holding office
      for
      the Corporation.  Nothing contained in this Agreement shall be deemed
      to prohibit the Corporation 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        
from
        purchasing and maintaining insurance, at its expense, to protect itself or
        the
        Indemnitee against any expense, liability or loss incurred by it or the
        Indemnitee in any such capacity, or arising out of the Indemnitee’s status as
        such, whether or not the Indemnitee would be indemnified against such expense,
        liability or loss under this Agreement.

    

     

    15.    No
      Special Rights.  Nothing herein shall confer upon the Indemnitee
      any right to continue to serve as an officer or director of the Corporation
      for
      any period of time or at any particular rate of compensation.

     

    16.    Savings
      Clause.  If this Agreement or any portion thereof shall be
      invalidated on any ground by any court of competent jurisdiction, then the
      Corporation shall nevertheless indemnify the Indemnitee as to Expenses,
      judgments, fines, penalties and amounts paid in settlement with respect to
      any
      Proceeding to the full extent permitted by any applicable portion of this
      Agreement that shall not have been invalidated and to the fullest extent
      permitted by applicable law.

     

    17.    Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which shall
      constitute the original.

     

    18.    Successors
      and Assigns.  This Agreement shall be binding upon the Corporation
      and its successors and assigns, and shall inure to the benefit of the estate,
      heirs, executors, administrators and personal representatives of the
      Indemnitee.

     

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

     

    20.    Modification
      and Waiver.  This Agreement may be amended from time to time to
      reflect changes in Delaware law or for other reasons.  No supplement,
      modification or amendment of this Agreement shall be binding unless executed
      in
      writing by both of the parties hereto.  No waiver of any of the
      provisions of this Agreement shall be deemed or shall constitute a waiver of
      any
      other provision hereof nor shall any such waiver constitute a continuing
      waiver.

     

    21.    Notices.  All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed to have been given (i) when delivered by hand
      or (ii) if mailed by certified or registered mail with postage prepaid, on
      the third day after the date on which it is so mailed:

     

      
      (a)  if
      to the Indemnitee, to:[  ]

     

      
      (b)  if
      to the Corporation, to:

     

    Tier
      Technologies, Inc

    10780
      Parkridge Boulevard, 4th Floor

    Reston,
      Virginia 20191

    Attention:  General
      Counsel

    Telephone:
      571-382-1090

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Fax:
      571-382-1385

    

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

     

    22.    Applicable
      Law.  This Agreement shall be governed by, and construed and
      enforced in accordance with, the laws of the State of Delaware.  The
      Indemnitee may elect to have the right to indemnification or reimbursement
      or
      advancement of Expenses interpreted on the basis of the applicable law in effect
      on the date hereof, at the time of the occurrence of the event or events giving
      rise to the applicable Proceeding, to the extent permitted by law, or in effect
      at the time such indemnification or reimbursement or advancement of Expenses
      is
      sought.  Such election shall be made, by a notice in writing to the
      Corporation, at the time indemnification or reimbursement or advancement of
      Expenses is sought; provided, however, that if no such notice is
      given, and if the General Corporation Law of Delaware is amended, or other
      Delaware law is enacted, to permit further indemnification of the directors
      and
      officers, then the Indemnitee shall be indemnified to the fullest extent
      permitted under the General Corporation Law, as so amended, or by such other
      Delaware law, as so enacted.

     

    23.    Enforcement.  The
      Corporation expressly confirms and agrees that it has entered into this
      Agreement in order to induce the Indemnitee to continue to serve as an officer
      or director of the Corporation, and acknowledges that the Indemnitee is relying
      upon this Agreement in continuing in such capacity.

     

    24.    Entire
      Agreement.  This Agreement sets forth the entire agreement of the
      parties hereto in respect of the subject matter contained herein and supercedes
      all prior agreements, whether oral or written, by any officer, employee or
      representative of any party hereto in respect of the subject matter contained
      herein; and any prior agreement of the parties hereto in respect of the subject
      matter contained herein is hereby terminated and cancelled.  For
      avoidance of doubt, the parties confirm that the foregoing does not apply to
      or
      limit the Indemnitee’s rights under Delaware law or the Corporation’s
      Certificate of Incorporation or By-Laws.

     

    25.    Consent
      to Suit.  In the case of any dispute under or in connection with
      this Agreement, the Indemnitee may only bring suit against the Corporation
      in
      the Court of Chancery of the State of Delaware.  The Indemnitee hereby
      consents to the exclusive jurisdiction and venue of the courts of the State
      of
      Delaware, and the Indemnitee hereby waives any claim the Indemnitee may have
      at
      any time as to forum non conveniens with respect to such venue.  The
      Corporation shall have the right to institute any legal action arising out
      of or
      relating to this Agreement in any court of competent
      jurisdiction.  Any judgment entered against either of the parties in
      any proceeding hereunder may be entered and enforced by any court of competent
      jurisdiction.

     

    26.    Application
      of the
      California Agreement.  Upon the effective date of the
      Re-incorporation Merger, the California Agreement shall cease to govern with
      respect to the Indemnitee’s Corporate Status or any action alleged to have been
      taken or omitted in connection therewith (collectively, the “Indemnifiable
      Events”) on or after the effective date of the Re-incorporation Merger and shall
      remain in full force and effect only with respect to Indemnifiable Events that
      occurred prior to the effective date of the Re-incorporation
      Merger.  Upon the 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    effective
      date of the Re-incorporation Merger, this Agreement shall govern all
      Indemnifiable Events occurring on or after such effective date.

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed as of the day and year first above written.

     

    
      	
              Attest:

            	
              TIER
                TECHNOLOGIES, INC.

            
	
              By:      __________________________

            	
              By:  ________________________

            
	
              Name:
                __________________________

            	
              Name:  ________________________

            
	 	
              Title:    ________________________

            
	 	
              INDEMNITEE:

            
	 	
              ______________________________

              Name:  ________________________

            

    

    

     

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF UNDERTAKING TO REPAY EXPENSES ADVANCED

     

    The
      Board of Directors of Tier Technologies, Inc.

    

    Re:  Undertaking
      to Repay Expenses Advanced

    

    Ladies
      and Gentlemen:

    

    This
      undertaking is being provided pursuant to that certain Indemnification Agreement
      dated the ___ day of ______________, 200__, by and between Tier Technologies,
      Inc. (the “Company”) and the undersigned Indemnitee (the “Indemnification
      Agreement”), pursuant to which I am entitled to advance of expenses in
      connection with [Description of Proceeding] (the
“Proceeding”).

     

    Terms
      used herein and not otherwise defined shall have the meanings specified in
      the
      Indemnification Agreement.

     

    I
      am subject to the Proceeding by reason of my Corporate Status or by reason
      of
      alleged actions or omissions by me in such capacity.  In consideration
      of the advance of Expenses by the Company in connection with the Proceeding
      (the
“Advanced Expenses”), I hereby agree that if, in connection with the Proceeding,
      it is ultimately determined that I am not entitled to be indemnified, then
      I
      shall promptly reimburse the portion of the Advanced Expenses relating to the
      claims, issues or matters in the Proceeding as to which the foregoing findings
      have been established and which have not been successfully resolved as described
      in Section 11 of the Indemnification Agreement.  To the extent that
      Advanced Expenses do not relate to a specific claim, issue or matter in the
      Proceeding, I agree that such Expenses shall be allocated on a reasonable
      basis.

     

    IN
      WITNESS WHEREOF, I have executed
      this Undertaking on this ___ day of ____________________, 200__.

    

    

     

    WITNESS:

     

    ____________________________                                                                                                                     _____________________________(SEAL)exhibit1066.htm

    Exhibit
      10.66

     

    TRANSITION
      AGREEMENT

     

    This
      Transition Agreement (the “Agreement”) is made and entered into as of December
      12, 2007, by and between Tier Technologies, Inc., a Delaware corporation
      (together with its successors and assigns, the “Company”), and Deanne M. Tully
      (the “Executive”).

     

    WHEREAS,
      the Company and the Executive are parties to an Executive Severance and Change
      in Control Benefits Agreement entered into July 30, 2003 (the “Severance
      Agreement”);

     

    WHEREAS,
      the Company wants the Executive to continue in her current officer positions
      reporting to the Company’s Chief Executive Officer, and, as applicable, to the
      Company’s Board of Directors, until March 31, 2008 (the “Separation
      Date”);

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein and for other good and valuable consideration, the receipt and
      sufficiency of which is mutually acknowledged, the Company and the Executive,
      intending to be legally bound, agree as follows:

     

    1.    Separation.  The
      Company hereby provides notice that it will end the Executive’s employment in an
      Involuntary Termination without Cause (as defined in the Severance Agreement),
      effective as of the Separation Date, provided that she does not resign and
      is
      not terminated for Cause (as defined the Severance Agreement) before such date,
      in either of which case Executive will not receive the compensation
      hereunder.

     

    2.    Compensation.  Assuming
      the Executive satisfies the conditions of the Severance Agreement, including
      executing a release of all claims in the form attached to the Severance
      Agreement and not thereafter revoking such release, and her employment ends
      on
      an Involuntary Termination without Cause, the Company will provide the following
      benefits:

     

              (a)  12
      months’ base salary in the amount of $220,000 in a single lump sum payment, on
      the next paydate occurring at least 10 days following the Separation Date,
      provided that the release has become effective;

     

              (b)  Payment
      by the Company of any post-employment health insurance premiums ­ in
      accordance with the Company’s customary treatment of senior executives for the
      shorter of (i) the 12 months following the Separation Date or (ii) the period
      during which she is eligible for COBRA (without regard to any early termination
      of the COBRA period that might apply if she ceases to be within the coverage
      area of the Company’s plan); and

     

             
(c)  Payment
      upon presentation of receipts for expenses related to outplacement and incurred
      in 2008, to a maximum of $7,500.

    

     

    The
      Executive agrees that the foregoing payments satisfy all Company obligations
      under the Severance Agreement and all other compensation and benefits owed
      to
      the Executive (other than  

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    compensation
      and benefits already accrued as of the date of this Agreement and
      accruing  between the date of this Agreement and the Separation
      Date).  The Executive agrees that, to receive the compensation above,
      she must execute the release after the close of business on the date her
      employment ends or within two business days thereafter.

     

    3.    Further
      Services. Commencing after the Separation Date and for the six months
      thereafter, the Executive shall make herself reasonably available for
      consultation under a consulting arrangement to be executed on or before the
      Separation Date (with a monthly retainer, paid in arrears each month, of
      $18,333.33) for the six months following the Separation Date.

     

    4.    Employment
      Status.  This Agreement does not constitute a contract of
      employment or impose upon the Executive any obligation to remain as an employee,
      or impose on the Company any obligation (i) to retain Executive as an employee
      or (ii) to change the status of Executive as an at-will employee.  The
      Company agrees not to terminate Executive’s employment before March 31, 2008
      without Cause.

     

    5.    Assignability;
      Binding Nature.  This Agreement shall be binding upon and inure to
      the benefit of both parties and their respective successors and assigns,
      including any corporation or entity with which or into which the Company may
      be
      merged or that may succeed to its assets or business; provided,
however, that the obligations of the Executive are personal and
      shall
      not be assigned by her.

     

    6.    Entire
      Agreement.  This Agreement contains the entire understanding and
      agreement between the parties concerning the subject matter hereof and
      supersedes all prior agreements, understandings, discussions, negotiations
      and
      undertakings, whether written or oral, with respect thereto, including, without
      limitation, the Severance Agreement, except as provided herein.  The
      parties agree that nothing herein supersedes any eligibility for general
      benefits programs before the Separation Date or the Executive’s agreement under
      the Nondisclosure and Proprietary/Confidential Information/NonSolicitation
      Agreement, dated May 4, 2004, which she agrees remains in effect.

     

    7.    Amendment
      or Waiver.  No provision in this Agreement may be amended unless
      such amendment is agreed to in writing and signed by the Executive and an
      authorized officer of the Company.  No waiver by either party of any
      breach by the other party of any condition or provision contained in this
      Agreement to be performed by such other party shall be deemed a waiver of a
      similar or dissimilar condition or provision at the same or any prior or
      subsequent time.  Any waiver must be in writing and signed by the
      Executive or an authorized officer of the Company, as the case may
      be.

     

    8.    Taxation.  The
      Company may withhold from any amounts payable under this Agreement such federal,
      state and local taxes as may be required to be withheld pursuant to any
      applicable law or regulation.  To the extent that, at the Executive’s
      request, the Company does not withhold taxes with respect to payments during
      the
      consultation period, the Executive shall indemnify the Company if it incurs
      any
      taxes, penalties, or interest in connection with such request.  The
      application of Section 409A of the Internal Revenue Code (“Section 409A”) is
      fact specific and uncertain, and the Executive has requested payment as provided
      herein.  The Company makes no representations or warranty and shall
      have no liability to the Executive or any other person if any provisions of
      or
      payments under this Agreementare determined to constitute 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        
deferred
        compensation subject to Code Section 409A but not to satisfy the conditions
        of
        that section.

    

     

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

    

    TIER
      TECHNOLOGIES, INC

    

    

    

                                                                    
      
        	
                 By:

              	 	 
	 	 Name:	 
	 	 Title:	 

      

    

    

    

    

    THE
      EXECUTIVE

    

    

    

    
      	 	 	 
	 	 Deanne
              M. Tully	 

    

    

     

    

    
      
        
        

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]