Document:

ex10_63.htm

    
      

    

    Exhibit
      10.63

    SEPARATION
      AGREEMENT AND GENERAL RELEASE

     

    

    THIS
      SEPARATION AGREEMENT AND GENERAL RELEASE (this
“Agreement”) is made and entered into as of this
      10th day of
      August, 2007 (the “Execution Date”), to be effective
      as of the 2nd
      day of July, 2007 (the “Effective Date”), by and
      between Joel M. Barry (the “Executive”) and Electronic
      Clearing House, Inc., a Nevada corporation (together with any and all of its
      subsidiaries as appropriate, the
“Company”).

     

    RECITALS

     

    A.           The
      Executive has served as the Chairman and Chief Executive Officer of Company,
      and
      desires to confirm his retirement, and corresponding resignation, from all
      executive and employment positions at the Company and as a director of the
      Company, effective as of the Effective Date. 

     

    B.           As
      a material inducement to the Company’s execution of this Agreement, the
      Executive further desires to provide the Company with a general release and
      to
      enter into a non-competition agreement with the Company and certain other
      agreements and covenants in exchange for certain payments payable to the
      Executive under this Agreement, and the Company desires to make such payments
      and enter into such agreements and covenants with the Executive on the terms
      set
      forth herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the premises, the Executive and the
      Company agree as follows:

     

    1.           Retirement/Resignation.

     

    1.1            The
      Executive hereby confirms his retirement and resignation as the Chairman and
      Chief Executive Officer of the Company and otherwise from all director,
      executive and employment positions at the Company, effective as of the Effective
      Date.  The Executive further acknowledges and agrees that his position
      as Chairman and Chief Executive Officer of the Company is ended and terminated
      effective as of the Effective Date, and that his employment as such will not
      be
      continued or resumed again at any time.  The Executive also hereby
      confirms his resignation as a Director of the Company, effective as of the
      Effective Date.  The parties hereby acknowledge and agree that the
      Executive also is relieved of his position as a signatory and responsible person
      on the Company’s bank accounts effective as of the Effective
      Date.  The Executive hereby acknowledges and agrees that (i) the
      Company has fully paid and satisfied all amounts properly due and owing to
      the
      Executive as a result of his employment with Company through the Effective
      Date,
      and (ii) in the absence of this Agreement, Executive would not be entitled
      to
      any of the payments provided for hereunder as a result of his retirement and
      resignation.  The parties will characterize the Executive’s departure
      from the Company as a retirement, and corresponding resignation, from the
      Company.

     

    1.2            From
      and after the Execution Date, the Executive agrees to make himself available
      from time to time to consult with the Company, and provide general cooperation
      and assistance in order to facilitate an orderly transition, as reasonably
      requested by the Company (the “Transition
      Assistance”); provided, such Transition Assistance is to be
      provided at no out-of-pocket cost to the Executive, and shall generally be
      provided at Executive’s convenience.  The Executive shall receive no
      additional compensation other than the Cash Compensation provided for herein
      for
      providing Transition Assistance.

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    2.      Compensation.

     

    2.1           Cash
      Compensation.  The Company will pay the Executive all
      salary earned through the Effective Date and all accrued but unused vacation
      time or PTO earned through the Effective Date (“Accrued
      Compensation”).  The Company will pay the Executive, in
      separate payments, two years of Executive’s current base compensation
      (representing an aggregate amount equal to $592,800.00), plus an amount equal
      to
      $150,000.00 (representing the aggregate of Executive’s bonus payments in the two
      years prior to the Effective Date, but subject to a maximum cap of $150,000.00)
      (the “Cash Compensation”) in accordance with the
      following schedule of payments:  (a) an initial lump-sum payment of
      $300,000.00 to be paid within three (3) business days of the Execution Date,
      (b)
      $221,400.00 to be paid on January 2, 2008; and (c) $221,400.00 to be paid on
      January 2, 2009.  The parties intend that the Cash Compensation
      payable pursuant to clauses (a) and (b) above shall be treated as a short-term
      deferral as that term is used in Section 409A of the Internal Revenue Code
      of,
      as amended (the “Code”) and the regulations
      promulgated thereunder (collectively, “Section
      409A”).  The parties intend that the Cash Compensation
      payable pursuant to clause (c) above shall be treated as a separate payment
      for
      purposes of Section 409A and excluded from the definition of “deferred
      compensation” pursuant to the regulations promulgated thereunder regarding
      separation pay payable upon an involuntary separation from
      service.  The parties agree that the payment date for the Cash
      Compensation payable pursuant to clauses (b) or (c) above may be accelerated
      at
      the written request of the Executive, and, upon such written request, each
      such
      payment will be paid within three (3) business days of such
      request.  The Accrued Compensation and the Cash Compensation will be
      paid in accordance with the Company’s normal payroll practices and will be
      subject to normal federal and state withholding obligations.

     

    2.2           Stock
      Options.    Any and all stock options issued to
      Executive pursuant to the Company’s Incentive Stock Option Plan 1992, as amended
      (the “1992 Plan”), all of which are or shall be fully
      vested as of the Effective Date, shall expire in accordance with their terms
      based on the termination of the Executive’s employment with the Company,
      effective as of the Effective Date.  Any and all unvested stock
      options issued to Executive pursuant to the Company’s Amended and Restated 2003
      Incentive Stock Option, as amended (the “2003 Plan”),
      shall immediately vest on the Effective Date.  Any and all stock
      options issued to Executive pursuant to the 2003 Plan shall expire,
      notwithstanding the provisions thereof or the provisions of the 2003 Plan to
      the
      contrary, on the 360th day following
      the
      Effective Date.  The stock options issued to Executive will otherwise
      continue to be subject to the terms and conditions applicable to stock options
      granted under the 1992 Plan or 2003 Plan, as applicable, and any applicable
      stock option agreements between the Executive and the Company; provided,
      however, that in the event of a conflict between the provisions of this
      Agreement and the 1992 Plan, 2003 Plan or the applicable stock option
      agreements, the provisions of this Agreement shall apply.  Each of
      Executive and Company acknowledge and agree that this Section 2.2 has
      been expressly approved by the Compensation Committee of the Board of Directors
      of the Company pursuant to the authority delegated to such committee under
      the
      1992 Plan and the 2003 Plan, each as has been previously approved by the
      Company’s shareholders, and that no portion of the foregoing shall be deemed an
      amendment or other modification of the 1992 Plan, 2003 Plan or any stock option
      agreement issued thereunder.\

     

    
      
        
          
          

        

        
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    2.3           Car
      Payments.  The Company will pay an amount equal to
      $21,929.85, the payoff amount as of the Execution Date, directly to Nissan
      Motor
      Acceptance Corp in respect of the promissory note due for the Nissan Maxima
      automobile previously provided for use to the Executive. The Company shall
      not
      be responsible for any other costs related to the vehicle or the Executive’s use
      thereof following the Effective Date, including, but not limited to, insurance
      (which must have been obtained by Executive within 30 days of the Effective
      Date), all of which shall have been obtained by Executive on or after the
      Effective Date at his own cost and expense.

     

    2.4           Medical
      Benefits.  For a period of two (2) years after the
      Effective Date, the Company shall continue to make available to Executive
      medical benefits on a basis that is substantially similar (in benefits to
      Executive and costs to Company), in the aggregate, to the benefits that were
      available to the Executive immediately prior to the Effective Date.

     

    3.           Non-Admission
      of Discrimination or Wrongdoing.

     

    3.1           This
      Agreement shall not in any way be construed as an admission by the Company
      or
      the Executive that it or he acted wrongfully with respect to the other, or
      any
      other person or entity.

     

    3.2           The
      Executive acknowledges and agrees that he has not suffered any discrimination
      and/or harassment in terms, conditions or privileges of his employment based
      on
      age, race, gender, religious creed, color, national origin, ancestry, physical
      disability, mental disability, medical condition, marital status, sexual
      orientation, or on any other basis.  The Executive acknowledges and
      agrees that he has no claim for employment discrimination and/or harassment
      under any legal or factual theory.

     

    4.           Company
      Property.  Executive represents and agrees that, as of
      the Execution Date, he has turned over to Company all correspondence, reports,
      records, designs, patents, business plans, financial statements, manuals,
      memoranda, customer lists, customer databases, charts, advertising materials,
      other similar data and other property delivered to or compiled by Executive
      by
      or on behalf of the Company or its representatives, vendors or customers which
      pertain to the business of the Company or future plans of the Company, and
      any
      other physical or personal property that are the property of Company that he
      had
      in his possession, custody or control (whether directly or indirectly) on the
      Execution Date.  Notwithstanding the foregoing, as soon as reasonably
      practicable following the Execution Date, the Company will deliver to the
      Executive or otherwise permit Executive to retain (i) the desktop and laptop
      computers used by the Executive in the provision of his services to the Company
      prior to the Effective Date, cleansed of all data and programs, together with
      the docking station, mouse and keyboard used by the Executive with such
      computers, (ii) his office chair, and (iii) his mobile phone; provided, however,
      that the Company will not continue to pay or be responsible for any charges
      or
      fees incurred in  connection with the use thereof; which such fees
      shall become the sole responsibility of the Executive as of the Effective
      Date.  The Company also will deliver to the Executive a compact disk
      containing a copy of the Executive’s contacts that were on such
      computers.  The Company will, for a period of one year from the
      Effective Date, continue to accept messages and forward all personal and
      non-business related calls received at Executive’s previously assigned (800)
      899-1289 telephone number to the contact number provided by Executive. All
      other
      services, utilities, and other benefits not explicitly provided for herein
      shall
      be cancelled as of the Effective Date, including but not limited to home
      internet access, mobile phone plans and usage and Blackberry or other similar
      service.

     

    
      
        
          
          

        

        
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    5.           Trade
      Secrets and Agreements Not to Solicit and Not to Compete; Company’s Right to
      Seek Injunctive Relief.

     

    5.1           The
      Executive understands, acknowledges and agrees that in the course of employment
      with the Company he has acquired confidential information and trade secrets
      concerning the Company’s past, present or future clients, operations, plans,
      methods of doing business (including, without limitation, customer lists),
      projected and historical revenues, marketing, costs, production, growth and
      distribution, and confidential business strategies (“Confidential
      Information”).  The Executive understands, acknowledges
      and agrees that it would be extremely damaging to the Company if such
      information were disclosed to a competitor or made available to any other person
      or entity.  The Executive understands and agrees that such
      Confidential Information has been disclosed to the Executive in confidence,
      that
      he will keep such information secret and confidential and that he will not
      in
      any way use, distribute or disclose such information.

     

    5.2           The
      Executive further agrees that for a period of twelve (12) months from the
      Effective Date (the “Restricted Period”), the
      Executive shall not (i) directly or indirectly, engage, without the express
      prior written consent of the Company, in any Competing Business, whether as
      an
      employee, director, consultant, partner, principal, agent, representative,
      equity holder or in any other individual, corporate or representative capacity
      (without limitation by specific enumeration of the foregoing), or render any
      services or provide any advice to any Competing Business; and (ii) directly
      or
      indirectly, (a) with respect to the Business, solicit or divert or attempt
      to
      solicit or divert any business or clients or customers made known to the
      Executive during his employment with the Company away from the Company, (b)
      induce or attempt to induce customers, clients, suppliers, agents or other
      Persons under contract or otherwise associated or doing business with Company
      who are made known to the Executive during his employment with the Company,
      to
      reduce or alter any such association or business with the Company, and/or (c)
      knowingly solicit or attempt to solicit any Person in the employment of the
      Company to (I) terminate such employment, and/or (II) accept employment, or
      enter into any consulting arrangement, with any Person other than the
      Company.  The Executive acknowledges and agrees that the Company
      depends on the services and contributions of its employees and personnel,
      including certain key employees and personnel of the Company who have
      pre-existing business and personal relationships with the Executive and were
      initially introduced to the Company by the Executive.  The Executive
      acknowledges and understands that the loss of the services of any such key
      employees or personnel by the Company could materially and adversely affect
      the
      Company’s business, operations and prospects, and the covenants, agreements and
      obligations set forth in this Section 5.2 are a material inducement to
      the Company’s execution of this Agreement and its agreement to enter into the
      obligations (including payment obligations) set forth herein.  For the
      purposes hereof, the following terms have the meanings ascribed to them
      below:  (i) “Business” means the business in
      which the Company is engaged, including the business of developing, designing,
      manufacturing, licensing, marketing, selling and/or distributing solutions
      for
      payment processing, including, without limitation, credit card processing,
      debit
      card processing, merchant accounts, check guarantee, check verification, check
      conversion, check representment, check collection, and Automated Clearing House
      check processing; (ii) “Competing Business” means any
      business, activity or Person in direct or indirect competition (or seeking
      or
      contemplating to compete, directly or indirectly) with the Business; and (iii)
      “Person” means an individual, a partnership, as
      corporation, an association, a joint stock company, a trust, a joint venture,
      an
      unincorporated organization or any other form of legal entity.

     

    
      
        
          
          

        

        
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    5.3           In
      view of the nature of the Executive’s employment and the Confidential
      Information and trade secrets that the Executive has received during the course
      of his employment, and without limiting the generality of any other provision
      of
      this Agreement, the Executive also agrees that the Company would be irreparably
      harmed by any violation or threatened violation of this Agreement and that,
      therefore, the Company shall be entitled to an injunction prohibiting the
      Executive from any violation or threatened violation of this Agreement, in
      addition to any other relief, including monetary damages, to which the Company
      may be entitled.

     

    5.4           The
      Executive agrees that the terms and the time periods provided for, and the
      geographical area encompassed by, the covenants contained in Section 5
      hereof are necessary and reasonable in order to protect the good will and value
      of the Business.  The parties agree that the execution, delivery and
      performance of this Agreement are in partial consideration of and a condition
      to
      the Company’s obligation to pay the Cash Compensation to the
      Executive.  If any court having jurisdiction at any time hereafter
      shall hold any provision or clause of this Agreement to be unreasonable as
      to
      its scope, territory or term, and if such court in its judgment or decree shall
      declare or determine that scope, territory or term which such court deems to
      be
      reasonable, then such scope, territory or term, as the case may be, shall be
      deemed automatically to have been reduced or modified to conform to that
      declared or determined by such court to be reasonable.

     

    6.           Acknowledgements.  

     

    6.1           The
      Executive hereby acknowledges and agrees that the Cash Compensation payments
      specified in Section 2.1 above is not required under the Company’s normal
      policies and procedures and is provided as consideration for the agreements,
      covenants and obligations set forth herein, and in particular, as consideration
      for the covenants, agreements and obligations set forth in Sections 5,
8 and 9 hereof.

     

    6.2           The
      Executive further acknowledges and agrees that the payments referenced in
Section 2.1 above also constitute adequate and valuable consideration, in
      and of themselves, for the promises contained in this Agreement and the
      foregoing referenced covenants, agreements and obligations.

     

    6.3           The
      Executive further acknowledges and agrees that (i) in the event of any breach
      of
      Executive’s agreements, covenants and obligations set forth herein, including,
      without limitation, the agreements, covenants and obligations set forth in
      Sections 5, 8 and 9 hereof, or (ii) in the event that the
      Board of Directors of the Company determines that, in the course of Executive’s
      employment with the Company, Executive had violated his fiduciary or other
      duties to the Company, or had otherwise caused the Company to incur monetary
      damages or other damages, losses, costs or expenses as a result of Executive’s
      negligence or misconduct, then, in addition to any and all other rights and
      remedies to which the Company may be entitled to hereunder or under any
      applicable laws, Executive shall pay to the Company all of the Cash Compensation
      and other separation benefits (or the value thereof) Executive previously
      received hereunder, and the Company shall be entitled to withhold indefinitely
      any and all remaining Cash Compensation and other separation benefits (or the
      value thereof) to be provided hereunder, and may use any and all such amounts
      to
      offset any damages, losses, costs or expenses incurred.  Executive
      agrees to pay to the Company any and all such amounts within sixty (60) days
      of
      the Company’s written notification to Executive of the Board of Directors’
determination.

     

    
      
        
        

      

      
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    7.           Covenant
      Not to Sue.

     

    7.1           The
      Executive agrees that he will not file a lawsuit, administrative complaint
      or
      charge of any kind with any court, governmental or administrative agency or
      arbitrator against the Company, or any of the Company’s parents, subsidiaries,
      partners, affiliates, shareholders, directors, officers, employees, agents,
      representatives, predecessors, successors or assigns, asserting any claims
      that
      are released in this Agreement.

     

    7.2           The
      Executive represents and agrees that, before signing this Agreement, he has
      not
      filed or pursued any complaints, charges or lawsuits of any kind with any court,
      governmental or administrative agency or arbitrator against the Company or
      any
      of the Company’s parents, subsidiaries, partners, affiliates, shareholders,
      directors, officers, employees, agents, representatives, predecessors,
      successors or assigns, asserting any claims that are released in this
      Agreement.

     

    8.           General
      Release.

     

    8.1           Release
      by the Executive.  As a material inducement for the
      Company to enter into this Agreement, and as partial consideration for the
      payments provided herein, the Executive knowingly and voluntarily waives and
      releases all rights and claims, known and unknown, which the Executive may
      have
      against the Company, and/or any of the Company’s related or affiliated entities
      or successors, or any of their current or former parents, subsidiaries,
      partners, affiliates, shareholders, directors, officers, employees, agents,
      representatives, predecessors, successors or assigns (the “Company
      Releasees”), including without limitation, any and all charges,
      complaints, claims, liabilities, obligations, promises, agreements, contracts,
      controversies, damages, actions, causes of action, suits, rights, demands,
      costs, losses, debts and expenses of any kind arising out of, resulting from
      or
      in any manner relating to the Executive’s  employment by the Company
      up to the date of this Agreement, the termination of the Executive’s employment
      hereunder or the parties’ entry into this Agreement.  The Executive’s
      general release under this Agreement includes, but is not limited to, claims
      for
      employment discrimination, harassment, wrongful termination, constructive
      termination, violation of public policy, breach of any express or implied
      contract, breach of any implied covenant, fraud, intentional or negligent
      misrepresentation, emotional distress, defamation, libel, or any other claims
      relating to the Employee’s relationship with Company.  The Executive’s
      general release also includes a release of any claims under any federal, state
      or local laws or regulations, including, but not limited to: (a) Title VII
      of
      the Civil Rights Act of 1964, 42 U.S.C. § 2000(e) et. seq. (race,
      color, religion, sex, and national origin discrimination; (b) the Age
      Discrimination in Employment Act, 29 U.S.C. § 621 et. seq. (age
      discrimination); (c) Section 1981 of the Civil Rights Act of 1866, 42 U.S.C.
      1981 (race discrimination); (d) the Equal Pay Act of 1963, 29 U.S.C. § 206
      (equal pay); (e) the California Fair Employment and Housing Act, Cal. Gov’t.
      Code §12900, et. seq. (discrimination, including race, color,
      national origin, ancestry, disability, medical condition, marital status, sex,
      sexual orientation; sexual or racial harassment and age); (f) the California
      Labor Code § 200, et. seq. ­(salary, commission, compensation,
      benefits and other matters); (g) the Fair Labor Standards Act, 29 U.S.C. § 201,
et. seq. (wage and hour matters, including overtime pay); (h) the
      Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 42 U.S.C. S
      1395(c) (insurance matters); (9) Executive Order 11141 (age discrimination);
      (i)
      Section 503 of the Rehabilitation Act of 1973, 29 U.S.C. § 701, et.
seq. (disability discrimination); (j) the Wheeler Retirement Income
      Security Act of 1974, 29 U.S.C. § 1001, et. seq. (employee benefits); (k)
      Title I of the Americans with Disabilities Act (disability discrimination);
      California Labor Code Section 132a (discrimination based on filing a workers’
compensation claim); and (l) any applicable California Industrial Welfare
      Commission Order (wage matters).  The Executive is not releasing any
      claims (a) based on acts or events occurring after the signing of this
      Agreement, (b) rights to benefits that have vested under any Company benefit
      plan, (c) any claims to indemnification as a director or officer under or
      pursuant to Company’s Certificate of Incorporation or Bylaws, and (d) any rights
      to Directors’ and Officers’ insurance coverage.  The matters that are
      the subject of the releases referred to in this Section 8.1 are referred
      to herein as the “Executive Released
      Matters.”

     

    
      
        
          
          

        

        
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    8.2           Unknown
      Claims.  The Executive acknowledges that there is a risk
      that subsequent to the execution of this Agreement, the Executive will incur
      or
      suffer damage, loss or injury to persons or property that is unknown or
      unanticipated at the time of the execution of this Agreement.  The
      Executive hereby specifically assumes such risk and agrees that this Agreement
      and the releases contained herein shall and do apply to all unknown or
      unanticipated claims, as well as those currently known or
      anticipated.  Accordingly, the Executive acknowledges that he has read
      the provisions of California Civil Code Section 1542, which provides 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.”	 

    

     

    Notwithstanding
      the provisions of Section 1542, and for the purpose of implementing a full
      and
      complete release and discharge of the Company and others released herein, the
      Executive expressly acknowledges that this Agreement is intended to include
      and
      does include in its effect, without limitation, all claims which he does not
      know or suspect to exist in his favor against the Company Releasees, and that
      this Agreement contemplates the extinguishment of any such claim or
      claims.

    
      
        
        

      

      
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    8.3           Assumption
      of Risk; Investigation of Facts.  The Executive
      hereby expressly assumes the risk of any mistake of fact or that the true facts
      might be other than or different from the facts now known or believed to exist,
      and it is the Executive’s express intention to forever settle, adjust and
      compromise any and all disputes between and among the Executive and the Company
      Releasees, finally and forever, and without regard to who may or may not have
      been correct in their respective understandings of the facts or the law relating
      thereto.  In making and executing this Agreement, the Executive
      represents and warrants that he has made such investigation of the facts and
      the
      law pertaining to the matters described in this Agreement as he deems necessary,
      and he has not relied upon any statement or representation, oral or written,
      made by the Company with respect to any of the facts involved in any dispute
      or
      possible dispute between the parties hereto, or with respect to any of his
      rights or asserted rights, or with respect to the advisability of making and
      executing this Agreement.

     

    8.4           Ownership
      of Claims.   The Executive
      represents and agrees that he has not assigned or transferred, or attempted
      to
      assign or transfer, to any person or entity, any of the Executive Released
      Matters.

     

    8.5           No
      Representations.       Each
      party represents and agrees that no promises, statements or inducements have
      been made to such party that caused such party to sign this Agreement other
      than
      those expressly stated in this Agreement.

     

    9.           Release
      of Age Discrimination
      Claims.

     

    9.1           Age
      Discrimination is Specifically
      Intended to be Included as an Executive Released
      Matter.  The Executive specifically intends that this
      Agreement shall include a complete release of claims under the Age
      Discrimination in Employment Act of 1967 (the “ADEA”;
      29 U.S.C. §§ 621 etseq.), as amended by the Older Workers’ Benefit
      Protection Act of 1990, except for any allegation that a breach of this Act
      occurred following the date of this Agreement.

     

    9.2           Additional
      Consideration.  The Executive
      agrees and promises that this Agreement contains obligations by the Company
      to
      the Executive that are in addition to consideration to which the Executive
      was
      otherwise entitled from the Company.  In addition, the Executive
      acknowledges and agrees that additional consideration has been provided by
      the
      Company (beyond that which would have otherwise been provided) in order to
      effect a valid waiver of the Executive’s claims under the Federal age
      discrimination laws.

     

    9.3            Reasonable
      Time to Consider Settlement Agreement. The Executive acknowledges
      that he has been given a reasonable period of time (a maximum of twenty-one
      (21)
      days, if he so chooses) to consider this Agreement before signing this
      Agreement.  The Executive understands that he has seven (7) days
      following signing of this Agreement to rescind it, but only insofar as it
      effects a release of a claim for violation of the ADEA, in which case it shall
      remain fully effective in all other respects.  To rescind this
      Agreement as to the ADEA, the Executive agrees to fax a letter signed by the
      Executive to the Company, by the end of the seven (7)-day period.  The
      remainder of this Agreement shall remain in full force and effect.

     

    
      
        
          
          

        

        
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    9.4           Non-Release
      of Future Claims. The Executive is hereby advised that this
      Agreement does not waive or release any rights or claims that the Executive
      may
      have under the ADEA, or otherwise, which arise after the date the Executive
      signs this Agreement.

     

    10.           Confidentiality
      of this Agreement.  The Executive agrees to keep the
      terms of and amount paid under this Agreement completely confidential, and
      not
      to disclose such information to anyone other than his spouse, attorneys and
      licensed tax and/or professional investment advisor (hereafter referred to
      as
      the “Executive’s Confidants”), all of whom will be
      informed of and be bound by this confidentiality provision.  Neither
      the Executive nor the Executive’s Confidants will disclose the terms of this
      Agreement to anyone, including without limitation, any representative of any
      print, radio or television media, to any past, present or prospective applicant
      for employment with the Company, executive recruiter or “headhunter,” to any
      counsel for any current or former employee of the Company, to any other counsel
      or third party, or to the public at large.

     

    11.           Goodwill
      And Reputation of Company and Executive.  Each of the
      Executive and the Company further agrees not to take actions or make statements,
      written or oral, that disparage or defame the goodwill or reputation of the
      other, or any the other’s respective parents, subsidiaries, partners,
      affiliates, shareholders, directors, officers, employees, agents,
      representatives, predecessors, successors, assigns, heirs, executors or
      administrators.

     

    12.           Attorney’s Fees.  The
      losing party shall be liable to the prevailing party for its reasonable costs
      and attorney’s fees, including the costs of the arbitrator in any arbitration,
      incurred in any action to enforce this Agreement.

     

    13.           Independent
      Counsel; Interpretation.  THE EXECUTIVE HEREBY
      EXPRESSLY REPRESENTS, ACKNOWLEDGES AND CONFIRMS THAT HE HAS BEEN ADVISED TO
      SEEK
      AND OBTAIN LEGAL ADVICE FROM INDEPENDENT COUNSEL REPRESENTING HIS INTERESTS
      WITH
      RESPECT TO THIS AGREEMENT, THAT HE HAS HAD THE FULL RIGHT AND OPPORTUNITY TO
      CONSULT WITH SUCH COUNSEL, THAT HE HAS AVAILED HIMSELF OF THIS RIGHT AND
      OPPORTUNITY, THAT HE HAS CAREFULLY READ AND FULLY UNDERSTANDS THIS AGREEMENT
      IN
      ITS ENTIRETY, THAT HE IS FULLY AWARE OF THE CONTENTS HEREOF AND THE MEANING,
      INTENT AND LEGAL EFFECT OF THIS AGREEMENT, AND THAT HE HAS EXECUTED THIS
      AGREEMENT FREE FROM COERCION, DURESS OR UNDUE
      INFLUENCE.  SPECIFICALLY, BY SIGNING THIS AGREEMENT, EXECUTIVE
      UNDERSTANDS, AND HEREBY ACKNOWLEDGES AND CONFIRMS, THAT HE MAY BE GIVING UP
      SIGNIFICANT LEGAL RIGHTS.  SHOULD ANY PROVISION OF THIS AGREEMENT
      REQUIRE JUDICIAL INTERPRETATION, IT IS AGREED THAT A COURT INTERPRETING OR
      CONSTRUING THE SAME SHALL NOT APPLY A PRESUMPTION THAT THE TERMS HEREOF SHALL
      BE
      MORE STRICTLY CONSTRUED AGAINST ANY PARTY BY REASON OF THE RULE OF CONSTRUCTION
      THAT A DOCUMENT IS TO BE CONSTRUED MORE STRICTLY AGAINST THE PARTY WHO ITSELF
      OR
      THROUGH ITS AGENT PREPARED THE SAME, IT BEING AGREED THAT ALL PARTIES HERETO
      HAVE PARTICIPATED IN THE PREPARATION OF THIS AGREEMENT.

     

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

    14.           Notices.
      Any notice required to be given or delivered by one party to the other hereunder
      shall be in writing and addressed as specified below or at such other addresses
      as shall be specified by the parties by like notice.  All notices
      shall be deemed effectively given upon personal delivery, (a) five (5) days
      after deposit in the United States mail by certified or registered mail (return
      receipt requested), (b) two (2) business day after its deposit with any return
      receipt express courier (prepaid), or (c) one (1) business day after
      transmission by facsimile.

     

    
      	
              If
                to the Company: 

            	
              If
                to the Executive:

            	 
	 	 	 	 
	 	
              Electronic
                Clearing House, Inc.

            	
              Joel
                M. Barry

            	 
	 	
              730
                Paseo Camarillo

            	 	 
	 	
              Camarillo,
                CA 93010

            	 	 
	 	
              Fax:

            	 	 
	 	
               

            	 	 
	 	
              With
                a copy to:

            	 	 
	 	 	 	 
	 	
              Stubbs
                Alderton & Markiles, LLP

            	 	 
	 	
              15260
                Ventura Boulevard

            	 	 
	 	
              20th
                Floor

            	 	 
	 	
              Sherman
                Oaks, CA 91403

            	 	 
	 	
              Attn:  V.
                Joseph Stubbs, Esq.

            	 	 
	 	
              Fax:  818-474-8607

            	 	 

    

    

    15.           Further
      Actions.  Whether or not specifically required under the
      terms of this Agreement, each party hereto shall execute and deliver such
      documents and take such further actions as shall be necessary in order for
      such
      party to perform all of his or its obligations specified herein or reasonably
      implied from the terms hereof.

     

    16.           Successors,
      Third Party Beneficiaries.

     

    16.1           This
      Agreement is personal to the Executive and, without the prior written consent
      of
      the Company, is not assignable by the Executive.  This Agreement will
      inure to the benefit and be enforceable by the Executive’s legal representatives
      (including any duly appointed guardian) acting in their capacities as such
      pursuant to applicable law.

     

    16.2           This
      Agreement will inure to the benefit of and be binding on the Company and its
      successors and assigns.  The Company will be entitled to assign all of
      its obligations hereunder to any successor (direct or indirect and whether
      by
      purchase, merger, consolidation, share exchange or otherwise) to the business,
      properties and assets of the Company; provided, however, that the
      Company will remain liable for the full, timely performance of all the
      obligations so assigned as if such assignment had not been made.

     

    16.3           Except
      as otherwise expressly provided in this Agreement, this Agreement is not
      intended, and shall not be construed, deemed or interpreted, to confer on
      any person or entity not a party hereto any rights or remedies
      hereunder.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    17.           Execution
      In Counterparts.   This Agreement may be executed in
      two (2) or more counter­parts, all of which taken together shall constitute
      one agreement.

     

    18.           Severability
      and Governing Law.

     

    18.1             Should
      any of the provisions in this Agreement be declared or be determined to be
      illegal or invalid, all remaining parts, terms or provisions, or any sections,
      subsections, paragraph or subparagraphs, shall be valid, and the illegal or
      invalid part, term or provision, or section, subsection, paragraph or
      subparagraph, shall be deemed not to be a part of this Agreement.

     

    18.2             This
      Agreement is made and entered into in the State of California and shall in
      all
      respects be interpreted, enforced and governed under the laws of
      California.

     

    19.           Proper
      Construction.

     

    19.1           The
      language of all parts of this Agreement shall in all cases be construed as
      a
      whole according to its fair meaning, and not strictly for or against any of
      the
      parties.

     

    19.2           As
      used in this Agreement, the term “or” shall be deemed to include the term
“and/or” and the singular or plural number shall be deemed to include the other
      whenever the context so indicates or requires.

     

    19.3           The
      paragraph headings used in this Agreement are intended solely for convenience
      of
      reference and shall not in any manner amplify, limit, modify or otherwise be
      used in the interpretation of any of the provisions hereof.

     

    20.           Entire
      Agreement.   This Agreement is the entire agreement
      between the Executive and the Company, and fully supersedes any and all prior
      agreements or understandings between the parties pertaining to its subject
      matter.

     

     

    [Signatures
      appear on next page]

     

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    PLEASE
      READ CAREFULLY. THIS CONSULTING AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE
      OF ALL KNOWN AND UNKNOWN CLAIMS.

    

    

    

    
      	
               DATE:  
                

            	
              8/9/07

            	 	
              /s/
                Joel M. Barry

            
	 	 	
              JOEL
                M. BARRY

            
	 	 	 
	 	 	 
	
              DATE:
                

            	
              08-10-07

            	 	
              ELECTRONIC
                CLEARING HOUSE, INC.

            
	 	 	 
	 	 	 
	 	 	
              /s/
                Charles Harris

            
	 	 	
              Name:  CHARLES
                HARRIS

            
	 	 	
              Title:  CHIEF
                EXECUTIVE OFFICER

            

    

    

     

    12ex10_64.htm

    
      

    

    Exhibit
      10.64

    INDEMNIFICATION
      AGREEMENT

    

    This
      Indemnification Agreement (this “Agreement”) is made
      as of this ____ day of _______, 200_, by and between Electronic Clearing House,
      Inc., a Nevada corporation (the “Company”), and
      ____________, an individual
      (“Indemnitee”).

     

    RECITALS

    

    WHEREAS,
      the Articles of Incorporation (the “Articles”) and the
      bylaws (the “Bylaws”) of the Company provide for the
      indemnification of the officers and directors of the Company to the maximum
      extent permitted by Chapter 78 of the Nevada Revised Statutes, as amended
      (“Nevada Law”);

     

    WHEREAS,
      the Articles, the Bylaws and Nevada Law permit contracts between the
      Company and the officers and directors of the Company with respect to
      indemnification of such officers and directors;

     

    WHEREAS,
      in accordance with Nevada Law, the Company may purchase and maintain a policy
      or
      policies of directors’ and officers’ liability insurance covering certain
      liabilities that may be incurred by its officers or directors in the performance
      of their obligations to the Company;

     

    WHEREAS,
      the Company recognizes that corporate litigation against, and the difficulty
      of
      obtaining liability insurance for, the Company’s directors and officers impede
      the Company’s ability to attract and retain the most capable and qualified
      persons available for such positions; and

     

    WHEREAS,
      in order to induce Indemnitee to serve or continue to serve as an
      officer and/or director of the Company, the Company desires that the Indemnitee
      shall be indemnified and advanced expenses as set forth herein.

     

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of Indemnitee’s service as an officer
      and/or director of the Company after the date hereof, the Company and Indemnitee
      hereby agree as follows:

    

    1.           Certain
      Definitions.  Capitalized terms used but not otherwise
      defined in this Agreement shall have the meanings set forth below:

     

    “Corporate
      Status” means the fact that a person (i) is or was a director,
      officer, employee or agent of the Company, or (ii) is or was serving at the
      request of the Company as a director, officer, employee or agent of another
      Enterprise.  A Proceeding shall be deemed to have been brought by
      reason of a person’s “Corporate Status” if it is brought because of the status
      described in the preceding sentence or because of any action or inaction on
      the
      part of such person in connection with such status.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Disinterested
      Director” means a director of the Company who is not and was not a
      party to the Proceeding in respect of which indemnification is sought by
      Indemnitee.

     

    “Enterprise”
      shall mean the Company and any other corporation, partnership, joint venture,
      trust, employee benefit plan or other enterprise in which Indemnitee is or
      was
      serving at the request of the Company as a director, officer, employee, agent
      or
      fiduciary.

     

    “Expenses”
      shall include all reasonable attorney’s fees, disbursements and retainers, court
      costs, transcript costs, fees of experts, witness fees, travel and deposition
      costs, printing and binding costs, telephone charges, postage, delivery service
      fees and all other disbursements or expenses of the types customarily incurred
      in connection with prosecuting, defending, preparing to prosecute or defend,
      investigating, participating or being prepared to be a witness in a
      Proceeding.

     

    “Independent
      Counsel” means a law firm, or a member of a law firm, that is
      experienced in matters of corporation law and neither currently is, nor in
      the
      past five (5) years has been, retained to represent: (i) the Company or
      Indemnitee in any matter material to either such party (other than with respect
      to matters concerning the Indemnitee under this Agreement, or of other
      indemnitees under similar indemnification agreements), or (ii) any other party
      to the Proceeding giving rise to a claim for indemnification hereunder.
      Notwithstanding the foregoing, the term “Independent Counsel” shall not include
      any person who, under the applicable standards of professional conduct then
      prevailing, would have a conflict of interest in representing either the Company
      or Indemnitee in an action to determine Indemnitee’s rights under this
      Agreement.

     

    “Proceeding”
      includes any threatened, pending or completed action, suit,
      arbitration, alternate dispute resolution mechanism, investigation, inquiry,
      administrative hearing or any other actual, threatened or completed proceeding,
      whether brought by or in the right of the Company or otherwise and whether
      civil, criminal, administrative or investigative, in which Indemnitee was,
      is or
      will be involved as a party or otherwise, including one pending on or before
      the
      date of this Agreement; and excluding one initiated by an Indemnitee pursuant
      to
Section 8 of this Agreement to enforce his rights under this
      Agreement.

     

    “Reviewing
      Party” means the person or persons selected to make the
      determination of the availability of indemnification pursuant to Section
6.3 hereof.

     

    2.           Indemnification.

     

    2.1           Proceedings
      Not By or In The Right Of the Company.  The Company hereby
      agrees to hold harmless and indemnify Indemnitee to the full extent authorized
      or permitted by the provisions of Nevada Law, the Articles and the Bylaws,
      as
      such may be amended from time to time, if Indemnitee was or is a party or is
      threatened to be made a party to any Proceeding, other than a Proceeding by
      or
      in the right of the Company, by reason of Indemnitee’s Corporate Status, against
      all Expenses, judgments, penalties, fines and amounts paid in settlement
      actually and reasonably incurred by Indemnitee or on his/her behalf in
      connection with such Proceeding if Indemnitee (i) is not liable pursuant to
      Section 78.138 of Nevada Law or (ii) acted in good faith and in a manner he/she
      reasonably believed to be in or not opposed to the best interests of the Company
      and, with respect to any criminal Proceeding, had no reasonable cause to believe
      his/her conduct was unlawful.

     

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

     

    2.2           Proceedings
      By or In Right of the Company.  The Company hereby agrees to
      hold harmless and indemnify Indemnitee to the full extent authorized or
      permitted by the provisions of Nevada Law, the Articles and the Bylaws, as
      such
      may be amended from time to time, if Indemnitee was or is a party or is
      threatened to be made a party to any Proceeding by or in the right of the
      Company, by reason of Indemnitee’s Corporate Status, against all Expenses
      (including amounts paid in settlement and attorneys’ fees), actually and
      reasonably incurred by Indemnitee or on his/her behalf in connection with such
      Proceeding if Indemnitee (i) is not liable pursuant to Section 138 of Nevada
      Law
      or (ii) acted in good faith and in a manner he/she reasonably believed to be
      in
      or not opposed to the best interests of the Company; provided,
however, that, if applicable law so provides,
      no
      indemnification against such Expenses shall be in respect of any claim, issue
      or
      matter in such Proceeding as to which Indemnitee shall have been adjudged by
      a
      court of competent jurisdiction, after exhaustion of all appeals therefrom,
      to
      be liable to the Company or for amounts paid in settlement to the corporation
      unless and only to the extent that the court in which the Proceeding was brought
      or other court of competent jurisdiction determines upon application that in
      view of all the circumstances of the case, Indemnitee is fairly and reasonably
      entitled to indemnity for such Expenses as the court shall deem
      proper.

     

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

     

    2.4           Additional
      Indemnification Rights.  The Company hereby agrees to
      indemnify the Indemnitee to the fullest extent from time to time permitted
      by
      law, notwithstanding that such indemnification is not specifically authorized
      by
      the other provisions of this Agreement, the Articles, the Bylaws or by
      statute.

     

    3.           Advances
      of Expenses.

     

    3.1           The
      Company shall advance all Expenses as they are incurred by or on behalf of
      Indemnitee in connection with the investigation, defense, settlement or appeal
      of any Proceeding, and prior to the final disposition of such Proceeding, upon
      receipt of an undertaking by or on behalf of Indemnitee to repay such amount
      if
      it is ultimately determined by a court of competent jurisdiction that such
      person is not entitled to be indemnified by the Company. Any advances and
      undertakings to repay pursuant to this Section 3.1 shall be
      unsecured and interest free and shall
      provide that, if Indemnitee has commenced or thereafter commences legal
      proceedings in a court of competent jurisdiction to secure a determination
      that
      Indemnitee should be indemnified under applicable law, Indemnitee shall not
      be
      required to reimburse the Company for any advance of Expenses until a final
      judicial determination is made with respect thereto (as to which all rights
      of
      appeal therefrom have been exhausted or lapsed).

     

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    3.2           Advances
      of Expenses pursuant to Section 3 hereof shall be made within ten
      (10) days after the receipt by the Company of a written statement or statements
      from Indemnitee requesting such advance or advances from time to time, whether
      prior to or after final disposition of such Proceeding, and accompanied by
      or
      preceded by the undertaking referred to in Section 3.1
      above.

     

    4.           
      Contribution in the Event of Joint Liability.

     

    4.1           Whether
      or not the indemnification provided in Section 2 hereof is
      available, in respect of any threatened, pending or completed action, suit
      or
      proceeding in which Company is jointly liable with Indemnitee (or would be
      if
      joined in such action, suit or proceeding), Company shall pay, in the first
      instance, the entire amount of any judgment or settlement of such action, suit
      or proceeding without requiring Indemnitee to contribute to such payment and
      Company hereby waives and relinquishes any right of contribution it may have
      against Indemnitee. Company shall not enter into any settlement of any action,
      suit or proceeding in which Company is jointly liable with Indemnitee (or would
      be if joined in such action, suit or proceeding) unless such settlement provides
      for a full and final release of all claims asserted against
      Indemnitee.

     

    4.2           Without
      diminishing or impairing the obligations of the Company set forth in the
      preceding subparagraph, if, for any reason, Indemnitee shall elect or be
      required to pay all or any portion of any judgment or settlement in any
      threatened, pending or completed action, suit or proceeding in which Company
      is
      jointly liable with Indemnitee (or would be if joined in such action, suit
      or
      proceeding), Company shall contribute to the amount of expenses (including
      attorneys’ fees), judgments, fines and amounts paid in settlement actually and
      reasonably incurred and paid or payable by Indemnitee in proportion to the
      relative benefits received by the Company and all officers, directors or
      employees of the Company other than Indemnitee who are jointly liable with
      Indemnitee (or would be if joined in such action, suit or proceeding), on the
      one hand, and Indemnitee, on the other hand, from the transaction from which
      such action, suit or proceeding arose; provided, however, that the
      proportion determined on the basis of relative benefit may, to the extent
      necessary to conform to law, be further adjusted by reference to the relative
      fault of Company and all officers, directors or employees of the Company other
      than Indemnitee who are jointly liable with Indemnitee (or would be if joined
      in
      such action, suit or proceeding), on the one hand, and Indemnitee, on the other
      hand, in connection with the events that resulted in such expenses, judgments,
      fines or settlement amounts, as well as any other equitable considerations
      which
      applicable law may require to be considered. The relative fault of Company
      and
      all officers, directors or employees of the Company other than Indemnitee who
      are jointly liable with Indemnitee (or would be if joined in such action, suit
      or proceeding), on the one hand, and Indemnitee, on the other hand, shall be
      determined by reference to, among other things, the degree to which their
      actions were motivated by intent to gain personal profit or advantage, the
      degree to which their liability is primary or secondary, and the degree to
      which
      their conduct is active or passive.

     

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    4.3           Company
      hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
      of
      contribution which may be brought by other officers, directors or employees
      of
      the Company who may be jointly liable with Indemnitee.

     

    5.           Indemnification
      for Expenses as a Witness. In addition to the rights of Indemnitee
      under, and without limiting, the other provision of this Agreement, to the
      extent that Indemnitee is, by reason of his/her Corporate Status, a witness
      in
      any action, suit or proceeding to which Indemnitee is not a party, Indemnitee
      shall be indemnified by the Company against all Expenses actually and reasonably
      incurred by him/her or on his/her behalf in connection therewith.

     

    6.           Procedures
      and Presumptions for Determination of Entitlement to
      Indemnification.

     

    6.1           Timing
      of Payments. All payments of Expenses, judgments, penalties, fines and
      other amounts by the Company to the Indemnitee pursuant to this Agreement shall
      be made to the fullest extent permitted by applicable law as soon as practicable
      after written demand therefor by Indemnitee is presented to the Company, but
      in
      no event later than (i) thirty (30) days after such demand is presented or
      (ii)
      such later date as may be permitted for the determination of entitlement to
      indemnification pursuant to Section 6.7 hereof, if
      applicable; provided, however, that advances of Expenses shall be
      made within the time provided in Section 3.2.

     

    6.2           Request
      for Indemnification.  Indemnitee shall submit to the Company
      a written request, including therein or therewith such documentation and
      information as is reasonably available to Indemnitee and is reasonably necessary
      to determine whether and to what extent Indemnitee is entitled to
      indemnification. The Secretary of the Company shall, promptly upon receipt
      of
      such a request for indemnification, advise the board of directors of the Company
      (the “Board of Directors”) in writing that Indemnitee
      has requested indemnification.

     

    6.3           Reviewing
      Party.  Upon written request by Indemnitee for
      indemnification pursuant to the first sentence of Section 6.2
      hereof, a determination, if required by applicable law, with respect to
      Indemnitee’s entitlement thereto shall be made in the specific case by one of
      the following four methods, which shall be at the election of
      Indemnitee:  (1) by a majority vote of a quorum consisting of the
      Disinterested Directors, or (2) by Independent Counsel in a written opinion
      if a
      majority vote of a quorum consisting of directors who are not parties to the
      Proceeding so orders, (3) by Independent Counsel in a written opinion if a
      quorum consisting of directors who are not parties to the Proceeding cannot
      be
      obtained, or (4) by the stockholders.

     

    6.4           Determination
      by Independent Counsel.  If the determination of entitlement
      to indemnification is to be made by Independent Counsel pursuant to Section
6.3 hereof, the Independent Counsel shall be selected as provided
      in
      this Section 6.4. The Independent Counsel shall be selected by
      Indemnitee (unless Indemnitee shall request that such selection be made by
      the
      Board of Directors). Indemnitee or the Company, as the case may be, may, within
      10 days after such written notice of selection shall have been given, deliver
      to
      the Company or to Indemnitee, as the case may be, a written objection to such
      selection; provided, however, that such objection may be asserted only on the
      ground that the Independent Counsel so selected does not meet the requirements
      of “Independent Counsel” as defined in this Agreement, and the objection shall
      set forth with particularity the factual basis of such assertion. Absent a
      proper and timely objection, the person so selected shall act as Independent
      Counsel. If a written objection is made and substantiated, the Independent
      Counsel selected may not serve as Independent Counsel unless and until such
      objection is withdrawn or a court has determined that such objection is without
      merit. If, within 20 days after submission by Indemnitee of a written request
      for indemnification pursuant to Section 6.2 hereof, no Independent
      Counsel shall have been selected and not objected to, either the Company or
      Indemnitee may petition an appropriate court in the State of Nevada or another
      court of competent jurisdiction for resolution of any objection which shall
      have
      been made by the Company or Indemnitee to the other’s selection of Independent
      Counsel and/or for the appointment as Independent Counsel of a person selected
      by the court or by such other person as the court shall designate, and the
      person with respect to whom all objections are so resolved or the person so
      appointed shall act as Independent Counsel under Section 6.3
      hereof. The Company shall pay any and all reasonable fees and expenses of
      Independent Counsel incurred by such Independent Counsel in connection with
      acting pursuant to Section 6.3 hereof, and the Company shall pay
      all reasonable fees and expenses incident to the procedures of this Section
6.4, regardless of the manner in which such Independent Counsel
      was
      selected or appointed. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.5           Burden
      of Proof. In making a determination with respect to entitlement to
      indemnification hereunder, the Reviewing Party shall presume that Indemnitee
      is
      entitled to indemnification under this Agreement if Indemnitee has submitted
      a
      request for indemnification in accordance with Section 6.2 of this
      Agreement. Anyone seeking to overcome this presumption shall have the burden
      of
      proof and the burden of persuasion, by clear and convincing
      evidence.

     

    6.6           Additional
      Presumptions and Standards. For purposes of this Agreement, the
      termination of any Proceeding or any claim by judgment, order, settlement
      (whether with or without court approval) or conviction, or upon a plea of nolo
      contendere, or its equivalent, shall not create a presumption that Indemnitee
      did not meet any particular standard of conduct or have any particular belief
      or
      that a court has determined that indemnification is not permitted by this
      Agreement or applicable law.  In addition, neither the failure of any
      Reviewing Party to have made a determination as to whether Indemnitee has met
      any particular standard of conduct or had any particular belief, nor an actual
      determination by any Reviewing Party that Indemnitee has not met such standard
      of conduct or did not have such belief, prior to the commencement of legal
      proceedings by Indemnitee to secure a judicial determination that Indemnified
      Person should be indemnified under this Agreement under applicable law, shall
      be
      a defense to Indemnitee’s claim or create a presumption that Indemnitee has not
      met any particular standard of conduct or did not have any particular
      belief.  Indemnitee shall be deemed to have acted in good faith if
      Indemnitee’s action is based on the records or books of account of the
      Enterprise, including financial statements, or on information supplied to
      Indemnitee by the officers of the Enterprise in the course of their duties,
      or
      on the advice of legal counsel for the Enterprise or on information or records
      given or reports made to the Enterprise by an independent certified public
      accountant or by an appraiser or other expert selected with reasonable care
      by
      the Enterprise. In addition, the knowledge and/or actions, or failure to act,
      of
      any other director, officer, agent or employee of the Enterprise shall not
      be
      imputed to Indemnitee for purposes of determining the right to indemnification
      under this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.7           Timing
      of Determination.  If the Reviewing Party shall not have made
      a determination within thirty (30) days after receipt by the Company of the
      request therefor, the requisite determination of entitlement to indemnification
      shall be deemed to have been made and Indemnitee shall be entitled to such
      indemnification, absent (i) a misstatement by Indemnitee of a material fact,
      or
      an omission of a material fact necessary to make Indemnitee’s statement not
      materially misleading, in connection with the request for indemnification,
      or
      (ii) a prohibition of such indemnification under applicable law; provided,
      however, that such 30 day period may be extended for a reasonable time, not
      to
      exceed an additional fifteen (15) days, if the person, persons or entity making
      the determination with respect to entitlement to indemnification in good faith
      requires such additional time for the obtaining or evaluating documentation
      and/or information relating thereto; and provided, further, that the foregoing
      provisions of this Section 6.7 shall not apply if the
      determination of entitlement to indemnification is to be made by the
      stockholders pursuant to Section 6.3 of this Agreement and if (A)
      within fifteen (15) days after receipt by the Company of the request for such
      determination the Board of Directors or the Disinterested Directors, if
      appropriate, resolve to submit such determination to the stockholders for their
      consideration at an annual meeting thereof to be held within seventy-five (75)
      days after such receipt and such determination is made thereat, or (B) a special
      meeting of stockholders is called within fifteen (15) days after such receipt
      for the purpose of making such determination, such meeting is held for such
      purpose within sixty (60) days after having been so called and such
      determination is made thereat.

     

    6.8           Cooperation.  Indemnitee
      shall cooperate with the person, persons or entity making such determination
      with respect to Indemnitee’s entitlement to indemnification, including providing
      to such person, persons or entity upon reasonable advance request any
      documentation or information which is not privileged or otherwise protected
      from
      disclosure and which is reasonably available to Indemnitee and reasonably
      necessary to such determination. Any Independent Counsel, member of the Board
      of
      Directors, or stockholder of the Company shall act reasonably and in good faith
      in making a determination under this Agreement of the Indemnitee’s entitlement
      to indemnification. Any costs or expenses (including attorneys’ fees and
      disbursements) incurred by Indemnitee in so cooperating with the person, persons
      or entity making such determination shall be borne by the Company (irrespective
      of the determination as to Indemnitee’s entitlement to indemnification) and the
      Company hereby indemnifies Indemnitee therefor and agrees to hold Indemnitee
      harmless therefrom.

     

    6.9           Success.  The
      Company acknowledges that a settlement or other disposition short of final
      judgment may be successful if it permits a party to avoid expense, delay,
      distraction, disruption and uncertainty. In the event that any action, claim
      or
      proceeding to which Indemnitee is a party is resolved in any manner other than
      by adverse judgment against Indemnitee (including, without limitation,
      settlement of such action, claim or proceeding with or without payment of money
      or other consideration) it shall be presumed that Indemnitee has been successful
      on the merits or otherwise in such action, suit or proceeding. Anyone seeking
      to
      overcome this presumption shall have the burden of proof and the burden of
      persuasion, by clear and convincing evidence.

     

    
      
        
          
          

        

        
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    7.           Liability
      Insurance.  The Company shall, from time to time, make the
      good faith determination whether or not it is practicable for the Company to
      obtain and maintain a policy or policies of insurance with a reputable insurance
      company providing the Indemnitee with coverage for losses from acts or omissions
      of Indemnitee, and to ensure the Company’s performance of its indemnification
      obligations under this Agreement.  Among other considerations, the
      Company will weigh the costs of obtaining such insurance coverage against the
      protection afforded by such coverage.  In all policies of director and
      officer liability insurance obtained by the Company, Indemnitee shall be named
      as an insured party in such manner as to provide Indemnitee with the same rights
      and benefits as are afforded to the most favorably insured directors or
      officers, as applicable, of the Company.  Notwithstanding the
      foregoing, the Company shall have no obligation to obtain or maintain such
      insurance if the Company determines in good faith that such insurance is not
      reasonably available, if the premium costs for such insurance are
      disproportionately high compared to the amount of coverage provided, or if
      the
      coverage provided by such insurance is limited by exclusions so as to provide
      an
      insufficient benefit.  The Company shall promptly notify Indemnitee of
      any such determination not to provide insurance
      coverage.  Additionally, the Indemnitee acknowledges that no insurance
      policy that may be obtained pursuant to this Section 7 or other financial
      arrangement (including self insurance) which the Company may obtain, may provide
      protection for an Indemnitee adjudged by a court of competent jurisdiction,
      after exhaustion of all appeals therefrom, to be liable for intentional
      misconduct, fraud or a knowing violation of law, except with respect to the
      advancement of expenses or indemnification ordered by a court.

     

    8.           Remedies
      of Indemnitee.

     

    8.1           In
      the event that (i) a determination is made pursuant to Section 6
      of this Agreement that Indemnitee is not entitled to indemnification under
      this
      Agreement, (ii) advancement of Expenses is not timely made pursuant to
Section 3.2 of this Agreement, (iii) no determination of
      entitlement to indemnification shall have been made within the time period
      specified in Section 6.7 of this Agreement, (iv) payment of
      indemnified amounts is not made pursuant to within the time period specified
      in
Section 6.1 of this Agreement, or (v) payment of indemnified is
      not made within ten (10) days after a determination has been made that
      Indemnitee is entitled to indemnification or such determination is deemed to
      have been made pursuant to Section 6.7 of this Agreement,
      Indemnitee shall be entitled to an adjudication in an appropriate court of
      the
      State of Nevada, or in any other court of competent jurisdiction, of his
      entitlement to such indemnification. Indemnitee shall commence such proceeding
      seeking an adjudication within 180 days following the date on which Indemnitee
      first has the right to commence such proceeding pursuant to this Section
8.1. The Company shall not oppose Indemnitee’s right to seek any such
      adjudication.

     

    
      
        
          
          

        

        
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    8.2           In
      the event that a determination shall have been made pursuant to Section
6.3 of this Agreement that Indemnitee is not entitled to
      indemnification, any judicial proceeding commenced pursuant to this Section
8 shall be conducted in all respects as a de novo trial, on
      the merits and Indemnitee shall not be prejudiced by reason of that adverse
      determination under Section 6.3.

     

    8.3           If
      a determination shall have been made pursuant to Section 6.3 of
      this Agreement that Indemnitee is entitled to indemnification, the Company
      shall
      be bound by such determination in any judicial proceeding commenced pursuant
      to
      this Section 8, absent a prohibition of such indemnification under
      applicable law.

     

    8.4           In
      the event that Indemnitee, pursuant to this Section 8, seeks a
      judicial adjudication of his rights under, or to recover damages for breach
      of,
      this Agreement, or to recover under any directors’ and officers’ liability
      insurance policies maintained by the Company the Company shall pay on his
      behalf, in advance, any and all Expenses  actually and reasonably
      incurred by him in such judicial adjudication, regardless of whether Indemnitee
      ultimately is determined to be entitled to such indemnification, advancement
      of
      expenses or insurance recovery.

     

    8.5           The
      Company shall be precluded from asserting in any judicial proceeding commenced
      pursuant to this Section 8 that the procedures and presumptions of
      this Agreement are not valid, binding and enforceable and shall stipulate in
      any
      such court that the Company is bound by all the provisions of this
      Agreement.

     

    9.           Non-Exclusivity,
      Survival of Rights, Subrogation.

     

    9.1           The
      rights of indemnification as provided by this Agreement shall not be deemed
      exclusive of any other rights to which Indemnitee may at any time be entitled
      under applicable law, the Articles, the Bylaws, any agreement, a vote of
      stockholders or a resolution of directors, or otherwise. No amendment,
      alteration or repeal of this Agreement or of any provision hereof shall limit
      or
      restrict any right of Indemnitee under this Agreement in respect of any action
      taken or omitted by such Indemnitee in his Corporate Status prior to such
      amendment, alteration or repeal. To the extent that a change in Nevada Law,
      whether by statute or judicial decision, permits greater indemnification than
      would be afforded currently under the Bylaws and this Agreement, it is the
      intent of the parties hereto that Indemnitee shall enjoy by this Agreement
      the
      greater benefits so afforded by such change. No right or remedy herein conferred
      is intended to be exclusive of any other right or remedy, and every other right
      and remedy shall be cumulative and in addition to every other right and remedy
      given hereunder or now or hereafter existing at law or in equity or otherwise.
      The assertion or employment of any right or remedy hereunder, or otherwise,
      shall not prevent the concurrent assertion or employment of any other right
      or
      remedy.

     

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    9.3           The
      Company shall not be liable under this Agreement to make any payment of amounts
      otherwise indemnifiable hereunder if and to the extent that Indemnitee has
      otherwise actually received such payment under any insurance policy, contract,
      agreement or otherwise.

     

    

    10.           Exceptions
      to Right of Indemnification. Notwithstanding any other provision of
      this Agreement, Indemnitee shall not be entitled to indemnification under this
      Agreement:

     

    10.1           with
      respect to any Proceeding brought by Indemnitee, or any claim therein, unless
      (a) the bringing of such Proceeding or making of such claim shall have been
      approved by the Board of Directors of the Company or (b) such Proceeding is
      being brought by the Indemnitee to assert, interpret or enforce his rights
      under
      this Agreement or any other agreement or insurance policy or under the Company’s
      Articles or Bylaws now or hereafter in effect.

     

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

     

    10.3           for
      Expenses and other liabilities arising from the purchase and sale by Indemnitee
      of securities in violation of Section 16(b) of the Securities Exchange Act
      of
      1934, or any similar state or successor statute.

     

    10.4           for
      indemnification made to or on behalf of any director or officer if a final
      adjudication establishes that his/her acts or omissions involved intentional
      misconduct, fraud or a knowing violation of the law and was material to the
      cause of action, unless ordered by a court pursuant to Section 78.7502 of Nevada
      Law or for the advancement of Expenses pursuant to Section
      3.

     

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    11.           Duration
      of Agreement. All agreements and obligations of the Company contained
      herein shall continue during the period Indemnitee is an officer or director
      of
      the Company (or is or was serving at the request of the Company as a director,
      officer, employee or agent of another corporation, partnership, joint venture,
      trust or other enterprise) and shall continue thereafter so long as Indemnitee
      shall be subject to any Proceeding (or any proceeding commenced under Section
8 hereof) by reason of his Corporate Status, whether or not
      he is
      acting or serving in any such capacity at the time any liability or expense
      is
      incurred for which indemnification can be provided under this Agreement. This
      Agreement shall continue in effect regardless of whether Indemnitee continues
      to
      serve as an officer or director of the Company or any other Enterprise at the
      Company’s request.

     

    12.           Miscellaneous.

     

    12.1           Notice
      by Indemnitee.  Indemnitee agrees promptly to notify the
      Company in writing upon being served with any summons, citation, subpoena,
      complaint, indictment, information or other document relating to any Proceeding
      or matter which may be subject to indemnification covered
      hereunder.  The failure to so notify the Company shall not relieve the
      Company of any obligation which it may have to Indemnitee under this Agreement
      or otherwise unless and only to the extent that such failure or delay materially
      prejudices the Company.

     

    12.2           No
      Employment Agreement.  Nothing contained in this Agreement
      shall be construed as giving Indemnitee any right to be retained in the
      employment of the Company or any of its subsidiaries or affiliated
      entities.

     

    12.3           Amendments
      and Waivers.  No amendment, modification, replacement,
      termination or cancellation of any provision of this Agreement will be valid,
      unless the same will be in writing and signed by the Company and
      Indemnitee.  No waiver of any default, misrepresentation or breach of
      warranty or covenant hereunder, whether intentional or not, may be deemed to
      extend to any prior or subsequent default, misrepresentation, or breach of
      warranty or covenant hereunder or affect in any way any rights arising because
      of any prior or subsequent such occurrence.

     

    12.4           Successors
      and Assigns.  This Agreement shall be binding upon and inure
      to the benefit of and be enforceable by the parties hereto and their respective
      successors (including any direct or indirect successor by purchase, merger,
      consolidation or otherwise to all or substantially all of the business or assets
      of the Company), assigns, spouses, heirs, executors and personal and legal
      representatives.

     

    12.5           Notices.
      All notices, demands and other communications provided for or permitted
      hereunder shall be made in writing and shall be by facsimile, commercial
      overnight courier service or personal delivery to the following addresses,
      or to
      such other addresses as shall be designated from time to time by a party in
      accordance with this Section:

     

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

     

    if
      to the
      Company, at:

    Electronic
      Clearing House, Inc.

    730
      Paseo
      Camarillo

    Camarillo,
      CA 93010

    Attention:
      Board of Directors

     

    or
      if to
      Indemnitee, at the address set forth on the signature page hereto.

     

    If
      any
      notice, request, demand, direction or other communication required or permitted
      by this Agreement is given by mail it will be effective on the earlier of
      receipt or the third calendar day after deposit in the United States mail with
      first class or airmail postage prepaid; if given by telecopier during regular
      business hours of the recipient, when sent with delivery confirmation if given
      by telecopier outside regular business hours of the recipient, with delivery
      confirmation, at the opening of business on the next business day; if dispatched
      by commercial courier, on the scheduled delivery date; or if given by personal
      delivery, when delivered.

     

    12.6           Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which will be
      deemed an original but all of which together will constitute one and the same
      instrument.

     

    12.7           Headings.  The
      section and paragraph headings contained in this Agreement are inserted for
      convenience only and will not affect in any way the meaning or construction
      of
      this Agreement.

     

    12.8           GOVERNING
      LAW.  THIS AGREEMENT AND ALL RIGHTS, REMEDIES, LIABILITIES,
      POWERS AND DUTIES OF THE PARTIES TO THIS AGREEMENT, SHALL BE GOVERNED BY AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT GIVING
      EFFECT TO ANY CHOICE OF LAW PRINCIPLES.

    
 

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

    

    
      	 	
              ELECTRONIC
                CLEARING HOUSE, INC.

            
	 	 
	 	
              By: 
                

            	
               

            
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	 
	 	
              Indemnitee

            
	 	 
	 	
               

            
	 	
              Name:

            
	 	 
	 	
              Address:

            
	 	 
	 	 	
               

            
	 	 
	 	 	
               

            
	 	 
	 	 	
               

            
	 	 
	 	 	
              Facsimile:

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