Document:

exv10w46

 

Exhibit 10.46

EMPLOYMENT AGREEMENT

     This agreement (the “Agreement”) between Tier technologies, inc., a California
corporation (the “Company”) and Deanne M. Tully (the “Employee”), is entered into as of July 1,
2004 (the “Effective Date”). Those capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings given to such terms in the Agreement

Agreement

     In consideration of the mutual benefits derived from this Agreement and of the agreements,
covenants and provisions hereof, the parties hereto agree as follows:

1. EMPLOYMENT

During the Term (as defined in Section 3 hereof) of this Agreement, the Company shall employ
Employee as Vice President, General Counsel and Secretary of the Company, reporting to James R.
Weaver, President and Chief Executive Officer, or his designee. Employee will be based at the
Company’s offices in Reston, Virginia. Employee agrees to undertake such business travel as is
customary to such position, and as shall from time to time be requested of her by the Company.

2. COMPENSATION AND BENEFITS

     2.1 Base Salary. In consideration of and as compensation for the services to be performed by
the Employee hereunder, the Company shall pay the Employee a base salary (the “Base Salary”) of not
less than $210,000 per year, payable semi-monthly in arrears in accordance with the Company’s
regular payroll practices. The Company and Employee shall review Employee’s salary in October 2005
and annually thereafter.

     2.2 Incentive Compensation. At the Company’s sole discretion, Employee may be eligible to
receive additional discretionary incentive compensation based on individual and company
performance.

     2.3 Participation in Benefit Plans. During the Term, Employee shall be entitled to
participate in any pension plans, profit-sharing plans and group insurance, medical,
hospitalization, disability and other benefit plans of the Company presently in effect, as such are
generally applicable to employees of the Company and to the extent Employee is eligible under the
general provisions thereof.

     2.4 Paid Time Off. During the Term of this Agreement, the Employee shall accrue twenty-four
(24) days of Paid Time Off per year, subject to Company policy. The Employee shall also be
entitled to other paid personal leave in accordance with Company policy.

	 	 	 	 	 	 
	 
	 	 	 
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     2.5 Options. Employee’s incentive stock options agreements currently in place remain in
effect and are unchanged by this Agreement.

3. TERM AND TERMINATION

     3.1 Term. The “Term” as used in this Agreement shall commence on July 1, 2004 and expire at
the close of business on June 30, 2007, subject to earlier termination pursuant to this Section 3.

     3.2 Termination for Cause. The Company may terminate Employee’s employment under this
Agreement, in its sole discretion, “for Cause.” Grounds for the Company to terminate this
Agreement “for Cause” shall be limited to the occurrence of any of the following events:

          (a) the Employee’s failure to substantially perform Employee’s duties with the Company in good
faith (provided in the case of illness, injury or disability that the Company has provided
reasonable accommodation under applicable disabilities laws), after a demand for substantial
performance is delivered to Employee by the Company which identifies, in reasonable detail, the
manner in which the Company believes that the Employee has not substantially performed Employee’s
duties in good faith and such Employee has not, in the sole discretion of the Company, improved the
performance of Employee’s duties during a period of fourteen (14) days from such demand for
substantial performance;

          (b) the Employee’s commission of any act which detrimentally affects the Company, including,
without limitation, an act of dishonesty, fraud, willful disobedience, gross misconduct or breach
of duty;

          (c) the Employee’s commission of any act in contravention of Employee’s undertakings contained
in Section 5 hereof; or

          (d) the Employee’s conviction of a felony or a misdemeanor involving dishonesty or moral
turpitude.

     3.3 Termination Without Cause. The Company may terminate Employee’s employment under this
Agreement without cause at any time.

     3.4 Change in Control. “Change in Control” is defined as:

          (a) a sale or other disposition of all or substantially all of the assets of the Company;

          (b) a merger or consolidation in which the Company is not the surviving entity and in which
the shareholders of the Company immediately prior to such consolidation or merger own less than
fifty percent (50%) of the surviving entity’s voting power immediately after the transaction;

	 	 	 	 	 	 
	 
	 	 	 
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          (c) a reverse merger in which the Company is the surviving entity but the shares of the
Company’s Common Stock outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or otherwise, and in which the
shareholders of the Company immediately prior to such merger own less than fifty percent (50%) of
the Company’s voting power immediately after the transaction; or

          (d) any other capital reorganization in which more than fifty percent (50%) of the shares of
the Company entitled to vote are exchanged.

     3.5 Effect of Termination Prior to Expiration of the Term of the Agreement

          (a) Upon termination of the Employee’s employment as a result of Employee’s disability, the
Employee shall be entitled to receive for an additional thirty (30) days after the date of such
termination, Employee’s Base Salary in effect at the time of termination and any and all benefits
to which Employee is entitled on the date of such termination under the Company’s pension, life,
disability, accident and health and other benefit plans in accordance with the provisions of such
plans.

          (b) Upon termination of the Employee’s employment as a result of Employee’s death, the
Employee’s heirs, devisees, executors or other legal representatives shall receive for an
additional thirty (30) days from the date of death, Employee’s Base Salary in effect at the time of
death.

          (c) If the Employee’s employment hereunder shall be terminated by the Company without Cause
prior to the expiration of the Term of this Agreement, then upon the Employee furnishing to the
Company an executed waiver and release of claims, in the form which is attached hereto as Exhibit
A, the Employee shall be entitled to the following: (i) the Employee’s Base Salary and accrued and
unused Paid Time Off earned through the date of termination; (ii) a lump sum payment or continued
monthly payment, at the Company’s choice, equivalent to Employee’s Base Salary then in effect for
the remaining duration of the Term of this Agreement; and (iii) if Employee elects continued
coverage of health benefits under federal COBRA law, the Company shall pay the premiums of
Employee’s group health insurance coverage, including coverage for Employee’s eligible dependents,
for a maximum period of twelve (12) months following such termination; provided, however, that the
Company shall pay premiums for Employee’s eligible dependents only for coverage for which those
eligible dependents were enrolled immediately prior to the termination, and the Company’s
obligation to pay such premiums shall cease immediately upon the date Employee becomes covered
under any other group health plan (as an employee or otherwise). All payments are subject to
standard deductions and withholdings.

          (d) In the event there is a Change in Control during the Term of this Agreement and Employee
is not offered a substantially similar position with the surviving company at the same Base Salary,
with the same benefits including but not limited to maintenance of the employment and severance
agreements between the Company and Tier, and within forty (40) miles of Reston, Virginia, or if the
Employee chooses not to relocate, then upon the Employee furnishing to the Company an executed
waiver and release of claims, in the form

	 	 	 	 	 	 
	 
	 	 	 
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which is attached hereto as Exhibit A, the Employee shall be entitled to the following: (i)
the Employee’s Base Salary and accrued and unused Paid Time Off earned through the date of
termination; (ii) a lump sum payment or continued monthly payment, at the Company’s choice,
equivalent to Employee’s Base Salary then in effect for the remaining duration of the Term of this
Agreement; and (iii) if Employee elects continued coverage of health benefits under federal COBRA
law, the Company shall pay the premiums of Employee’s group health insurance coverage, including
coverage for Employee’s eligible dependents, for a maximum period of twelve (12) months following
such termination; provided, however, that the Company shall pay premiums for Employee’s eligible
dependents only for coverage for which those eligible dependents were enrolled immediately prior to
the termination, and the Company’s obligation to pay such premiums shall cease immediately upon the
date Employee becomes covered under any other group health plan (as an employee or otherwise). All
payments are subject to standard deductions and withholdings.

          (e) If the Employee’s employment hereunder shall be terminated by the Company for Cause or by
the Employee by resignation, the Company shall have no further obligation to the Employee under
this Agreement other than accrued Base Salary and other accrued benefits required by law, prorated
to the date of termination.

     3.6 Notice of Termination. Any purported termination of employment by the Company or by the
Employee shall be communicated by written notice of termination to the other party hereto in
accordance with Section 6.1 hereof. Any notice of termination of employment given hereunder shall
effect termination as of the date specified in such notice, or, in the event no such date is
specified, on the last day of the month in which such notice is delivered or deemed delivered as
provided in Section 6.1 hereof.

4. EXECUTIVE SEVERANCE AND CHANGE IN CONTROL BENEFITS AGREEMENT

Employee and the Company have entered into an Executive Severance and Change in Control Benefits
Agreement (the “Executive Severance Agreement”), effective July 30, 2003, which remains in effect.
A true and correct copy of the Executive Severance Agreement is attached hereto as Exhibit B. In
the event the Company terminates Employee’s employment prior to the expiration of the Term of this
Agreement, pursuant to section 3.5(c) or (d) hereof, then Employee shall be entitled to the
benefits accorded pursuant to either this Agreement or the Executive Severance Agreement, at the
Employee’s choice. It is expressly understood and agreed between the parties that the Executive
Severance Agreement survives the expiration of the Term of this Agreement.

5. NONDISCLOSURE AND PROPRIETARY/CONFIDENTIAL INFORMATION

Employee has executed a Nondisclosure and Proprietary/Confidential Information/Non-Solicitation
Agreement, which was signed on May 4, 2004, a true and correct copy of which is attached hereto as
Exhibit C. The terms of that agreement are hereby incorporated into this Agreement as if fully set
forth herein and Employee agrees to continue to abide by those terms.

6. MISCELLANEOUS

	 	 	 	 	 	 
	 
	 	 	 
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     6.1 Notices. Any written notice, required or permitted under this Agreement, shall be deemed
sufficiently given if either hand delivered or by fax (with written confirmation of receipt) or
nationally recognized overnight courier. Written notices must be delivered to the receiving party
at its address or facsimile number on the signature page of this Agreement. The parties may change
the address or facsimile number at which written notices are to be received in accordance with this
Section.

     6.2 Prevailing Party. If any litigation is commenced between the parties hereto concerning
this Agreement or their respective rights, duties and obligations hereunder, the party prevailing
in that litigation shall be entitled to reasonable attorney’s fees, to be fixed by the court as
part of the costs of the litigation or established in a separate action brought to recover those
fees, in addition to any other relief that may be granted.

     6.3 Assignment. The Employee may not assign, transfer or delegate her rights or obligations
hereunder, and any attempt to do so shall be void. This Agreement shall be binding upon and shall
inure to the benefit of the Company and its successors and assigns.

     6.4 Entire Agreement. This Agreement, and the attachments hereto, contain the entire
agreement of the parties hereto with respect to the subject matter hereof, and all other prior
agreements, written or oral, are hereby merged herein. This Agreement may be modified or amended
only by a written agreement that is signed by the Company and the Employee. No waiver of any
section or provision of this Agreement shall be valid unless such waiver is in writing and signed
by the party against whom enforcement of the waiver is sought. The waiver by the Company of any
section or provision of this Agreement shall not apply to any subsequent breach of this Agreement.
Captions to the various Sections of this Agreement are for the convenience of the parties only and
shall not affect the meaning or interpretation of this agreement. This Agreement may be executed
in several counterparts, each of which shall be deemed an original, but together they shall
constitute one and the same instrument.

     6.5 Severability. The provisions of this Agreement shall be deemed severable, and if any part
of any provision is held illegal, void or invalid under applicable law, such provision may be
changed to the extent reasonably necessary to make the provision, as so changed, legal valid and
binding. If any provision of this Agreement is held illegal, void or invalid in its entirety, the
remaining provisions of this Agreement shall not in any way be affected or impaired but shall
remain binding in accordance with their terms.

     6.6 Applicable Law. This Agreement and the rights and obligations of the Company and the
Employee hereunder shall be governed by and construed and enforced under the laws of the Virginia,
without reference to any principles of conflict of laws.

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

	 	 	 	 	 
	 	Tier Technologies, Inc.

 	 
	 	By:  	 	 
	 	  	Title: 	 	 
	 	 	Print Name:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Employee 	 
	 	Deanne M. Tully 
	 	Address: 	2341 Hagen Oaks Drive

Alamo, CA  94507 	 
	 	Fax Number: 	(925) 362-9105 	 

	 	 	 	 	 	 
	 
	 	 	 
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EXHIBIT A

RELEASE AND WAIVER OF CLAIMS

     In consideration of the payments and other benefits set forth in the Employment Agreement
effective July 1, 2004, to which this Exhibit A is attached, I, Deanne M. Tully, hereby
furnish Tier Technologies, Inc. (the “Company”), with the following release and waiver (the
“Release and Waiver").

     I hereby release, and forever discharge the Company, its officers, directors, agents,
employees, stockholders, successors, assigns, affiliates, parent, subsidiaries, and benefit plans,
of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise,
known and unknown, suspected and unsuspected, disclosed and undisclosed, arising at any time prior
to and including my employment termination date with respect to any claims, including but not
limited to those claims relating to my employment and the termination of my employment; including
but not limited to, claims pursuant to any federal, state or local law relating to employment,
including, but not limited to, discrimination claims, claims under any local statute governing
discrimination, and the Federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”),
or claims for wrongful termination, breach of the covenant of good faith, contract claims, tort
claims, and wage or benefit claims, including but not limited to, claims for salary, bonuses,
commissions, stock, stock options, vacation pay, fringe benefits, severance pay or any form of
compensation.

     I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for
this Release and Waiver is in addition to anything of value to which I was already entitled as an
employee of the Company. I further acknowledge that I have been advised, as required by the Older
Workers Benefit Protection Act, that: (a) the Release and Waiver granted herein does not relate to
claims which may arise after this Release and Waiver is executed; (b) I have the right to consult
with an attorney prior to executing this Release and Waiver (although I may choose voluntarily not
to do so); and if I am over 40 years of age upon execution of this Release and Waiver: (c) I have
twenty-one (21) days from the date of termination of my employment with the Company in which to
consider this Release and Waiver (although I may choose voluntarily to execute this Release and
Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to
revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be
effective until the seven (7) day revocation period has expired.

	 	 	 	 	 
	 	 	 
	Date:                      	By:  	 	 
	 	 	Print Name:  	 Deanne M. Tully 	 
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 
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Employeeexv10w47

 

Exhibit 10.47

EXECUTIVE

SEVERANCE AND CHANGE IN CONTROL BENEFITS AGREEMENT

     This Executive Severance and Change in Control Benefits Agreement (the
“Agreement”) is entered into this 30th day of July, 2003 (the “Effective
Date”), between Deanne
M. Tully (“Executive”) and Tier Technologies, Inc. (the
“Company”). This Agreement is intended to provide Executive with the compensation and
benefits described herein upon the occurrence of specific events. Certain capitalized terms used
in this Agreement are defined in Article 4.

     The Company and Executive hereby agree as follows:

ARTICLE 1

Scope of and Consideration for this Agreement

     1.1 Executive is currently employed by the Company.

     1.2 The Company and Executive wish to set forth the payments and benefits which Executive
shall be entitled to receive in the event Executive’s employment with the Company is terminated
pursuant to an Involuntary Termination Without Cause and/or in the event there is a Change in
Control (as defined in Section 4.4) of the Company.

     1.3 The duties and obligations of the Company to Executive under this Agreement shall be in
consideration for Executive’s past services to the Company, Executive’s continued employment with
the Company, and Executive’s execution of a release in accordance with Sections 2.2 and 3.1 herein.

     1.4 This Agreement shall supersede any other agreement relating to cash severance benefits and
health benefits in the event of Executive’s termination of employment with the Company and benefits
to be paid in the event of a Change in Control.

ARTICLE 2

Benefits

     2.1 Benefits. A Covered Event (as defined in Section 4.6) entitles Executive to receive the
following benefits set forth in Sections 2.2 and 2.3.

     2.2 Payment. Upon the occurrence of a Covered Event and subject to Section 3.1 herein,
Executive shall be entitled to a lump sum payment equivalent to her Base Salary, less standard
deductions and withholdings (the “Payment”) for a period of twelve (12) months.

     2.3 Health Benefits. In the event that Executive’s employment is terminated as a result of an
Involuntary Termination without Cause prior to a Change in Control or within twelve (12) months
following a Change in Control, and Executive elects continued coverage under

1.

 

federal COBRA law, the Company shall pay the premiums of Executive’s group health insurance
coverage, including coverage for Executive’s eligible dependents, for a maximum period of twelve
(12) months following such termination; provided, however, that: (i) the Company shall pay
premiums for Executive’s eligible dependents only for coverage for which those eligible dependents
were enrolled immediately prior to the termination; and (ii) the Company’s obligation to pay such
premiums shall cease immediately upon the date Executive becomes covered under any other group
health plan (as an employee or otherwise).

     2.4 Mitigation. Except as otherwise specifically provided herein, Executive shall not be
required to mitigate damages or the amount of any payment provided under this Agreement by seeking
other employment or otherwise, nor shall the amount of any payment provided for under this
Agreement be reduced by any compensation earned by Executive as a result of employment by another
employer or by any retirement benefits received by Executive after the date of the Covered Event.

ARTICLE 3

Limitations And Conditions On Benefits

     3.1 Release Prior To Payment Of Benefits. Upon the occurrence of a Covered Event, and prior
to the payment of any benefits under this Agreement on account of such Covered Event, Executive
shall deliver to the Company an effective release (the “Release”) in the form attached hereto and
incorporated herein as Exhibit A. Such Release shall specifically relate to all of Executive’s
rights and claims in existence at the time of such execution and shall confirm Executive’s
obligations under the Company’s standard form of proprietary information and inventions agreement.

     3.2 Termination of Company’s Obligations. Notwithstanding any provisions in this Agreement to
the contrary, the Company’s obligations, and Executive’s rights pursuant to Sections 2.2 and 2.3
herein, shall cease and be rendered a nullity immediately should Executive: i) fail to comply with
the provisions of her Proprietary Information & Inventions Agreement attached hereto as Exhibit B;
ii) directly compete with the business of the Company so as to cause the Company to lose material
revenue from any client account which is in existence on the date of termination of Executive’s
employment; and/or iii) directly or indirectly employ or solicit for employment any person whom she
knows to be an employee of the Company or any subsidiary of the Company.

     3.3 Non-Duplication of Benefits. Executive is not eligible to receive benefits under this
Agreement more than one time.

2.

 

ARTICLE 4

Definitions

     For purposes of the Agreement, the following terms are defined as follows:

     4.1 “Base Salary” means Executive’s annual base salary as in effect during the last regularly
scheduled payroll period immediately preceding the Covered Event.

     4.2 “Board” means the Board of Directors of the Company.

     4.3 “Cause” means that, in the reasonable determination of the Company or, in the case of the
Chief Executive Officer, the Board, Executive:

          (a) repeatedly fails to satisfactorily perform the Executive’s job duties after thirty (30)
days notice and an opportunity to cure such deficiency.

          (b) has committed an act that materially injures the business of the Company;

          (c) has refused or failed to follow lawful and reasonable directions of the Board or the
appropriate individual to whom Executive reports;

          (d) has been convicted of a felony involving moral turpitude that is likely to inflict or has
inflicted material injury on the business of the Company;

          (e) has engaged or in any manner participated in any activity which is directly competitive
with or intentionally injurious to the Company or any of its affiliates or which violates any
material provisions of her Proprietary Information & Inventions Agreement, attached hereto as
Exhibit B; or

          (f) has committed any fraud against the Company, its affiliates, employees, agents or
customers or use or intentional appropriation for his personal use or benefit of any funds or
properties of the Company not authorized by the Board to be so used or appropriated.

     4.4 “Change in Control” means

          (a) a sale or other disposition of all or substantially all of the assets of the Company;

          (b) a merger or consolidation in which the Company is not the surviving entity and in which
the shareholders of the Company immediately prior to such consolidation or merger own less than
fifty percent (50%) of the surviving entity’s voting power immediately after the transaction;

          (c) a reverse merger in which the Company is the surviving entity but the shares of the
Company’s Common Stock outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or

3.

 

otherwise, and in which the shareholders of the Company immediately prior to such merger own
less than fifty percent (50%) of the Company’s voting power immediately after the transaction;

          (d) any other capital reorganization in which more than fifty percent (50%) of the shares of
the Company entitled to vote are exchanged.

     4.5 “Company” means Tier Technologies, Inc. or, following a Change in Control, the
surviving entity resulting from such transaction.

     4.6 “Covered Event” means an Involuntary Termination Without Cause or a Change in Control,
provided that if the Company or its successor requests Executive to provide transition services
(“Transition Services”) to the Company for a period of up to six (6) months following a Change in
Control (the “Transition Period”), the Covered Event will not be deemed to have occurred until
after Executive provides such requested Transition Services during the Transition Period.
Executive will be paid one twelfth of her Base Salary, less standard deductions and withholdings,
for each month during which she provides Transition Services during the Transition Period. The
Payment to which Executive is entitled under Section 2.2 will not be reduced by any compensation
received by Executive for the provision of Transition Services during the Transition Period.

     4.7 “Involuntary Termination Without Cause” means Executive’s dismissal or discharge other
than for Cause. The termination of Executive’s employment as a result of Executive’s death or
disability will not be deemed to be an Involuntary Termination Without Cause.

ARTICLE 5

General Provisions

     5.1 Employment Status; Employment Agreement Superceded. This Agreement does not constitute a
contract of employment or impose upon Executive any obligation to remain as an employee, or impose
on the Company any obligation (i) to retain Executive as an employee, (ii) to change the status of
Executive as an at-will employee, or (iii) to change the Company’s policies regarding termination
of employment. In the event of any conflict between the provisions of this Agreement and the
provisions of any other previously existing employment, severance or other similar agreement, then
the provisions of this Agreement shall govern.

     5.2 Notices. Any notices provided hereunder must be in writing, and such notices or any other
written communication shall be deemed effective upon the earlier of personal delivery (including
personal delivery by facsimile) or the third day after mailing by first class mail, to the Company
at its primary office location and to Executive at Executive’s address as listed in the Company’s
payroll records. Any payments made by the Company to Executive under the terms of this Agreement
shall be delivered to Executive either in person or at the address as listed in the Company’s
payroll records.

     5.3 Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision

4.

 

of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions
had never been contained herein.

     5.4 Waiver. If either party should waive any breach of any provisions of this Agreement, he
or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or
any other provision of this Agreement.

     5.5 Arbitration. Unless otherwise prohibited by law or specified below, all disputes, claims
and causes of action, in law or equity, arising from or relating to this Agreement or its
enforcement, performance, breach, or interpretation shall be resolved solely and exclusively by
final and binding arbitration held in San Francisco, California through Judicial Arbitration &
Mediation Services/Endispute (“JAMS”) under the then existing JAMS arbitration rules. In addition
to and notwithstanding these rules, Executive and Company agree that the arbitrator shall have the
authority to compel adequate discovery for resolution of the dispute. Further, the arbitrator
shall issue a written decision that includes the arbitrator’s findings, conclusions and award.
However, nothing in this section is intended to prevent either party from obtaining injunctive
relief in court to prevent irreparable harm pending the conclusion of any such arbitration. The
Company shall pay for all the arbitrator’s fees and costs. In addition to any other relief, the
arbitrator may award to the prevailing party in the arbitration the recovery of its attorneys’ fees
and costs. During the arbitration, each party shall be responsible for its own attorneys’ fees and
costs; provided, however, that in the event one party refuses to arbitrate and the other party
seeks to compel arbitration by court order, if such other party prevails, it shall be entitled to
recover reasonable attorneys’ fees, costs and necessary disbursements. Pursuant to California
Civil Code Section 1717, each party warrants that it was represented by counsel in the negotiation
and execution of this Agreement, including the attorneys’ fees provisions herein.

     5.6 Complete Agreement. This Agreement, including Exhibits A and B, constitutes the entire
agreement between Executive and the Company and is the complete, final, and exclusive embodiment of
their agreement with regard to this subject matter, wholly superseding all written and oral
agreements with respect to cash benefits and health benefits to Executive in the event of
employment termination and/or a Change in Control, other than any outstanding loans by the Company
to Executive. It is entered into without reliance on any promise or representation other than
those expressly contained herein.

     5.7 Amendment Or Termination Of Agreement. This Agreement may be changed or terminated only
upon the mutual written consent of the Company and Executive. The written consent of the Company
to a change or termination of this Agreement must be signed by an executive officer of the Company
after such change or termination has been approved by the Board.

     5.8 Counterparts. This Agreement may be executed in separate counterparts, any one of which
need not contain signatures of more than one party, but all of which taken together will constitute
one and the same Agreement.

5.

 

     5.9 Headings. The headings of the Articles and Sections hereof are inserted for convenience
only and shall not be deemed to constitute a part hereof or to affect the meaning thereof.

     5.10 Successors And Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive, and the Company, and any surviving entity resulting from a Change
in Control and upon any other person who is a successor by merger, acquisition, consolidation or
otherwise to the business formerly carried on by the Company, and their respective successors,
assigns, heirs, executors and administrators, without regard to whether or not such person actively
assumes any rights or duties hereunder; provided, however, that Executive may not assign any duties
hereunder and may not assign any rights hereunder without the written consent of the Company, which
consent shall not be withheld unreasonably.

     5.11 Choice Of Law. All questions concerning the construction, validity and interpretation of
this Agreement will be governed by the law of the State of California, without regard to such
state’s conflict of laws rules.

     5.12 Non-Publication. The parties mutually agree not to disclose publicly the terms of this
Agreement except to the extent that disclosure is mandated by applicable law or to respective
advisors (e.g., attorneys, accountants).

     5.13 Construction Of Agreement. In the event of a conflict between the text of the Agreement
and any summary, description or other information regarding the Agreement, the text of the
Agreement shall control.

     In Witness Whereof, the parties have executed this Agreement on the Effective Date
written above.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Tier Technologies, Inc.	 	 	 	Deanne M. Tully
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit A: Release (Individual Termination)

Exhibit B: Proprietary Information and Inventions Agreement

6.

 

Exhibit A

RELEASE

     Certain capitalized terms used in this Release are defined in the Executive Severance Benefits
Agreement (the “Agreement”) which I have executed and of which this Release is a part.

     I hereby confirm my obligations under the Company’s proprietary information and inventions
agreement.

     I acknowledge that I have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.” I hereby expressly waive and relinquish all
rights and benefits under that section and any law of any jurisdiction of similar effect with
respect to my release of any claims I may have against the Company.

     Except as otherwise set forth in this Release, I hereby release, acquit and forever discharge
the Company, its parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any and all claims,
liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and
obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected
and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as
a result of any third party action against me based on my employment with the Company), arising out
of or in any way related to agreements, events, acts or conduct at any time prior to the date I
execute this Release, including, but not limited to: all such claims and demands directly or
indirectly arising out of or in any way connected with my employment with the Company or the
termination of that employment, including but not limited to, claims of intentional and negligent
infliction of emotional distress, any and all tort claims for personal injury, claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in
the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other
form of disputed compensation; claims pursuant to any federal, state or local law or cause of
action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal
Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; the
California Fair Employment and Housing Act, as amended; tort law; contract law; statutory law;
common law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach
of the implied covenant of good faith and fair dealing; provided, however, that nothing in this
paragraph shall be construed in any way to release the Company from its obligation to indemnify me
pursuant to the Company’s indemnification obligation pursuant to agreement or applicable law.

     I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under ADEA. I also acknowledge that the consideration given under the Agreement

 

 

for the waiver and release in the preceding paragraph hereof is in addition to anything of value to
which I was already entitled. I further acknowledge that I have been advised by this writing, as
required by the ADEA: (A) my waiver and release do not apply to any rights or claims that may
arise on or after the date I execute this Release; (B) I have the right to consult with an attorney
prior to executing this Release; and that if I am 40 or older on the date I execute this Release,
(C) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily
execute this Release earlier); (D) I have seven (7) days following the execution of this Release by
the parties to revoke the Release; and (E) this Release shall not be effective until the date upon
which the revocation period has expired, which shall be the eighth day after this Release is
executed by me.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Deanne M. Tully
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 

	 	 	 	 	 	Date:	 	 
	 

	 	 	 	 	 	 	 	 

2.

 

Exhibit B

Proprietary Information & Inventions Agreement

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