Document:

EXHIBIT 10.1

INDEMNITY
AGREEMENT

THIS INDEMNITY AGREEMENT
(this “Agreement”) dated as of                  
      , 20   , is made by and
between FAVRILLE, INC., a Delaware corporation (the “Company”),
and                         
(“Indemnitee”).

R E C I T
A L S:

A.            The
Company desires to attract and retain the services of highly qualified
individuals as directors, officers, employees and agents.

B.            The
Company’s Amended and Restated Bylaws (the “Bylaws”),
require that the Company indemnify its directors, and empowers the Company to
indemnify its officers, employees and agents,
as authorized by the Delaware General Corporation Law, as amended (the “Code”), under which the Company is
organized and such Bylaws expressly provide that the indemnification provided
therein is not exclusive and contemplates that the Company may enter into
separate agreements with its directors, officers and other persons to set forth
specific indemnification provisions.

C.            Indemnitee
does not regard the protection currently provided by applicable law, the
Company’s governing documents and available insurance as adequate under the
present circumstances, and the Company has determined that Indemnitee and other
directors, officers, employees and agents of the Company may not be willing to
serve or continue to serve in such capacities without additional protection.

D.            The
Company desires and has requested Indemnitee to serve or continue to serve as a
director, officer, employee or agent of the Company, as the case may be, and
has proferred this Agreement to Indemnitee as an additional inducement to serve
in such capacity.

E.             Indemnitee
is willing to serve, or to continue to serve, as a director, officer, employee
or agent of the Company, as the case may be, if Indemnitee is furnished the indemnity
provided for herein by the Company.

A G R E E
M E N T :

NOW THEREFORE, in consideration of the mutual
covenants and agreements set forth herein, the parties hereto, intending to be
legally bound, hereby agree as follows:

1.             Definitions.

(a)       Agent.  For purposes of this Agreement, the term “agent”
of the Company means any person who: 
(i) is or was a director, officer, employee or other fiduciary of
the Company or a subsidiary of the Company; or (ii) is or was serving at
the request or for the convenience of, or representing the interests of, the
Company or a subsidiary of the Company, as a director, officer, employee or
other fiduciary of a foreign or domestic corporation, partnership,  joint venture, trust or other enterprise.

 

(b)       Expenses.  For purposes of this Agreement, the term “expenses”
shall be broadly construed and shall include, without limitation, all direct
and indirect costs of any type or nature whatsoever (including, without
limitation, all attorneys’, witness, or other professional fees and related
disbursements, and other out-of-pocket costs of whatever nature), actually and
reasonably incurred by Indemnitee in connection with the investigation, defense
or appeal of a proceeding or establishing or enforcing a right to
indemnification under this Agreement, the Code or otherwise, and amounts paid
in settlement by or on behalf of Indemnitee, but shall not include any
judgments, fines or penalties actually levied against Indemnitee for such
individual’s violations of law.  The term
“expenses” shall also include reasonable compensation for time spent by
Indemnitee for which he is not compensated by the Company or any subsidiary or
third party (i) for any period during which Indemnitee is not an agent, in the
employment of, or providing services for compensation to, the Company or any
subsidiary; and (ii) if the rate of compensation and estimated time involved is
approved by the directors of the Company who are not parties to any action with
respect to which expenses are incurred, for Indemnitee while an agent of,
employed by, or providing services for compensation to, the Company or any
subsidiary.

(c)       Proceedings.  For purposes of this Agreement, the term “proceeding”
shall be broadly construed and shall include, without limitation, 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 in the right of the Company
or otherwise and whether of a civil, criminal, administrative or investigative
nature, and whether formal or informal in any case, in which Indemnitee was, is
or will be involved as a party or otherwise by reason of:  (i) the fact that Indemnitee is or was a
director or officer of the Company; (ii) the fact that any action taken by
Indemnitee or of any action on Indemnitee’s part while acting as director,
officer, employee or agent of the Company; or (iii) the fact that Indemnitee is
or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise, and in any such case described above, whether
or not serving in any such capacity at the time any liability or expense is
incurred for which indemnification, reimbursement, or advancement of expenses
may be provided under this Agreement.

(d)       Subsidiary.  For purposes of this Agreement, the term “subsidiary”
means any corporation or limited liability company of which more than 50% of
the outstanding voting securities or equity interests are owned, directly or
indirectly, by the Company and one or more of its subsidiaries, and any other
corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise of which Indemnitee is or was serving
at the request of the Company as a director, officer, employee, agent or
fiduciary.

(e)       Independent Counsel.  For purposes of this Agreement, the term “independent
counsel” means a law firm, or a partner (or, if applicable, member) of such a
law firm, that is experienced in matters of corporation law and neither
presently 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, 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

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conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement.

2.             Agreement to
Serve.  Indemnitee will serve, or
continue to serve, as a director, officer, employee or agent of the Company or
any subsidiary, as the case may be, faithfully and to the best of his or her
ability, at the will of such corporation (or under separate agreement, if such
agreement exists), in the capacity Indemnitee currently serves as an agent of
such corporation, so long as Indemnitee is duly appointed or elected and
qualified in accordance with the applicable provisions of the bylaws or other
applicable charter documents of such corporation, or until such time as
Indemnitee tenders his or her resignation in writing; provided, however, that
nothing contained in this Agreement is intended as an employment agreement
between Indemnitee and the Company or any of its subsidiaries or to create any
right to continued employment of Indemnitee with the Company or any of its
subsidiaries in any capacity.

The Company acknowledges that it has entered into this
Agreement and assumes the obligations imposed on it hereby, in addition to and
separate from its obligations to Indemnitee under the Bylaws, to induce
Indemnitee to serve, or continue to serve, as a director, officer,
employee or agent of the Company, and the Company acknowledges that Indemnitee
is relying upon this Agreement in serving as a director, officer, employee or
agent of the Company.

3.             Indemnification.

(a)       Indemnification in
Third Party Proceedings.  Subject to
Section 10 below, the Company shall indemnify Indemnitee to the fullest
extent permitted by the Code, as the same may be amended from time to time
(but, only to the extent that such amendment permits Indemnitee to broader
indemnification rights than the Code permitted prior to adoption of such
amendment), if Indemnitee is a party to or threatened to be made a party to or
otherwise involved in any proceeding, for any and all expenses, actually and
reasonably incurred by Indemnitee in connection with the investigation,
defense, settlement or appeal of such proceeding.

(b)       Indemnification in
Derivative Actions and Direct Actions by the Company.  Subject to Section 10 below, the Company
shall indemnify Indemnitee to the fullest extent permitted by the Code, as the
same may be amended from time to time (but, only to the extent that such
amendment permits Indemnitee to broader indemnification rights than the Code
permitted prior to adoption of such amendment), if Indemnitee is a party to or
threatened to be made a party to or otherwise involved in any proceeding by or
in the right of the Company to procure a judgment in its favor, against any and
all expenses actually and reasonably incurred by Indemnitee in connection with
the investigation, defense, settlement, or appeal of such proceedings.

4.             Indemnification
of Expenses of Successful Party. 
Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee has been successful on the merits or otherwise in defense of
any proceeding or in defense of any claim, issue or matter therein, including
the dismissal of any action without prejudice, the Company shall indemnify
Indemnitee against all expenses actually and reasonably incurred in connection
with the investigation, defense or appeal of such proceeding.

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5.             Partial
Indemnification.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any expenses actually and reasonably incurred
by Indemnitee in the investigation, defense, settlement or appeal of a
proceeding, but is precluded by applicable law or the specific terms of this
Agreement to indemnification for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee
is entitled.

6.             Advancement of
Expenses.  To the extent not
prohibited by law, the Company shall advance 
the expenses incurred by Indemnitee in connection with any proceeding,
and such advancement shall be made within twenty (20) days after the receipt by
the Company of a statement or statements requesting such advances (which shall
include invoices received by Indemnitee in connection with such expenses but,
in the case of invoices in connection with legal services, any references to
legal work performed or to expenditures made that would cause Indemnitee to
waive any privilege accorded by applicable law shall not be included with the
invoice) and upon request of the Company, an undertaking to repay the
advancement of expenses if and to the extent that it is ultimately determined
by a court of competent jurisdiction in a final judgment, not subject to
appeal, that Indemnitee is not entitled to be indemnified by the Company.  Advances shall be unsecured, interest free
and without regard to Indemnitee’s ability to repay the expenses. Advances
shall include any and all expenses actually and reasonably incurred by
Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification
under this Agreement, or otherwise and this right of advancement, including
expenses incurred preparing and forwarding statements to the Company to support
the advances claimed.  Indemnitee
acknowledges that the execution and delivery of this Agreement shall constitute
an undertaking providing that Indemnitee shall, to the fullest extent required
by law, repay the advance if and to the extent that it is ultimately determined
by a court of competent jurisdiction in a final judgment, not subject to
appeal, that Indemnitee is not entitled to be indemnified by the Company.  The right to advances under this Section
shall continue until final disposition of any proceeding, including any appeal
therein.  This Section 6 shall not apply
to any claim made by Indemnitee for which indemnity is excluded pursuant to
Section 10(b).

7.             Notice
and Other Indemnification Procedures.

(a)       Notification of
Proceeding.  Indemnitee will notify
the Company in writing promptly 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 or advancement of
expenses covered hereunder.  The failure
of Indemnitee to so notify the Company shall not relieve the Company of any
obligation which it may have to Indemnitee under this Agreement or otherwise.

(b)       Request for
Indemnification and Indemnification Payments.  Indemnitee shall notify the Company promptly
in writing upon receiving notice of nay demand, judgment or other requirement
for payment that Indemnitee reasonably believes to the subject to
indemnification under the terms of this Agreement, and shall request payment
thereof by the Company.  Indemnification
payments requested by Indemnitee under Section 3 hereof shall be made by
the Company no later than sixty (60) days after receipt of the written request
of Indemnitee.  Claims for advancement of
expenses shall be made under the provisions of Section 6 herein.

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(c)       Application for
Enforcement.  In the event the
Company fails to make timely payments as set forth in Sections 6 or 7(b) above,
Indemnitee shall have the right to apply to any court of competent jurisdiction
for the purpose of enforcing Indemnitee’s right to indemnification or
advancement of expenses pursuant to this Agreement.  In such an enforcement hearing or proceeding,
the burden of proof shall be on the Company to prove by that indemnification or
advancement of expenses to Indemnitee is not required under this Agreement or
permitted by applicable law.  Any
determination by the Company (including its Board of Directors, stockholders or
independent counsel) that Indemnitee is not entitled to indemnification
hereunder, shall not be a defense by the Company to the action nor create any
presumption that Indemnitee is not entitled to indemnification or advancement
of expenses hereunder.

(d)       Indemnification of
Certain Expenses.  The Company shall
indemnify Indemnitee against all expenses incurred in connection with any
hearing or proceeding under this Section 7 unless the Company prevails in
such hearing or proceeding on the merits in all material respects.

8.             Assumption of
Defense.  In the event the Company
shall be requested by Indemnitee to pay the expenses of any proceeding, the
Company, if appropriate, shall be entitled to assume the defense of such
proceeding, or to participate to the extent permissible in such proceeding,
with counsel reasonably acceptable to Indemnitee.  Upon assumption of the defense by the Company
and the retention of such counsel by the Company, the Company shall not be
liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same proceeding, provided that
Indemnitee shall have the right to employ separate counsel in such proceeding
at Indemnitee’s sole cost and expense. 
Notwithstanding the foregoing, if Indemnitee’s counsel delivers a
written notice to the Company stating that such counsel has reasonably
concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense or the Company shall not, in
fact, have employed counsel or otherwise actively pursued the defense of such
proceeding within a reasonable time, then in any such event the fees and
expenses of Indemnitee’s counsel to defend such proceeding shall be subject to
the indemnification and advancement of expenses provisions of this Agreement.

9.             Insurance.
To the extent that the Company maintains an insurance policy or policies
providing liability insurance for directors, officers, employees, or agents of
the Company or of any subsidiary (“D&O Insurance”),
Indemnitee shall be covered by such policy or policies in accordance with its
or their terms to the maximum extent of the coverage available for any such
director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of
a claim pursuant to the terms hereof, the Company has D&O Insurance in
effect, the Company shall give prompt notice of the commencement of such
proceeding to the insurers in accordance with the procedures set forth in the
respective policies.  The Company shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Indemnitee, all amounts payable as a result of such
proceeding in accordance with the terms of such policies.

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10.          Exceptions.

(a)       Certain Matters.  Any provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement to indemnify Indemnitee on account of any proceeding with
respect to (i) remuneration paid to Indemnitee if it is determined by
final judgment or other final adjudication that such remuneration was in
violation of law (and, in this respect, both the Company and Indemnitee have
been advised that the Securities and Exchange Commission believes that
indemnification for liabilities arising under the federal securities laws is
against public policy and is, therefore, unenforceable and that claims for
indemnification should be submitted to appropriate courts for adjudication, as
indicated in Section 10(d) below); (ii) a final judgment rendered against
Indemnitee for an accounting, disgorgement or repayment of profits made from
the purchase or sale by Indemnitee of securities of the Company against
Indemnitee or in connection with a settlement by or on behalf of Indemnitee to
the extent it is acknowledged by Indemnitee and the Company that such amount
paid in settlement resulted from Indemnitee’s conduct from which Indemnitee
received monetary personal profit, pursuant to the provisions of
Section 16(b) of the Securities Exchange Act of 1934, as amended, or other
provisions of any federal, state or local statute or rules and regulations thereunder;
(iii) a final judgment or other final adjudication that Indemnitee’s
conduct was in bad faith, knowingly fraudulent or deliberately dishonest or
constituted willful misconduct (but only to the extent of such specific
determination); or (iv) on account of conduct that is established by a final
judgment as constituting a breach of Indemnitee’s duty of loyalty to the
Company or resulting in any personal profit or advantage to which Indemnitee is
not legally entitled.  For purposes of
the foregoing sentence, a final judgment or other adjudication may be reached
in either the underlying proceeding or action in connection with which
indemnification is sought or a separate proceeding or action to establish
rights and liabilities under this Agreement.

(b)       Claims Initiated by
Indemnitee.  Any provision herein to
the contrary notwithstanding, the Company shall not be obligated to indemnify
or advance expenses to Indemnitee with respect to proceedings or claims
initiated or brought by Indemnitee against the Company or its directors,
officers, employees or other agents and not by way of defense, except (i) with
respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or under any other agreement, provision in
the Bylaws or Amended and Restated Certificate of
Incorporation (the “Certificate of Incorporation”)
or applicable law, or (ii) with respect to any other proceeding initiated by
Indemnitee that is either approved by the Board of Directors or Indemnitee’s
participation is required by applicable law. 
However, indemnification or advancement of expenses may be provided by
the Company in specific cases if the Board of Directors determines it to be
appropriate.

(c)       Unauthorized
Settlements.  Any provision herein to
the contrary notwithstanding, the Company shall not be obligated pursuant to
the terms of this Agreement to indemnify Indemnitee under this Agreement for
any amounts paid in settlement of a proceeding effected without the Company’s
written consent.  Neither the Company nor
Indemnitee shall unreasonably withhold consent to any proposed settlement;
provided, however, that the Company may in any event decline to consent to (or
to otherwise admit or agree to any liability for indemnification hereunder in
respect of) any proposed settlement if the Company is also a party in such
proceeding and determines in good faith that such settlement is not in the best
interests of the Company and its stockholders.

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(d)       Securities Act
Liabilities. Any provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement to
indemnify Indemnitee or otherwise act in violation of any undertaking appearing
in and required by the rules and regulations promulgated under the Securities Act
of 1933, as amended (the “Act”), or
in any registration statement filed with the SEC under the Act.  Indemnitee acknowledges that paragraph
(h) of Item 512 of Regulation S-K currently generally requires the Company
to undertake in connection with any registration statement filed under the Act
to submit the issue of the enforceability of Indemnitee’s rights under this
Agreement in connection with any liability under the Act on public policy
grounds to a court of appropriate jurisdiction and to be governed by any final
adjudication of such issue.  Indemnitee
specifically agrees that any such undertaking shall supersede the provisions of
this Agreement and to be bound by any such undertaking.

11.          Nonexclusivity
and Survival of Rights.  The
provisions for indemnification and advancement of expenses set forth in this
Agreement shall not be deemed exclusive of any other rights which Indemnitee
may at any time be entitled under any provision of applicable law, the Company’s
Certificate of Incorporation, Bylaws or other agreements, both as to action in
Indemnitee’s official capacity and Indemnitee’s action as an agent of the
Company, in any court in which a proceeding is brought, and Indemnitee’s rights
hereunder shall continue after Indemnitee has ceased acting as an agent of the
Company and shall inure to the benefit of the heirs, executors, administrators
and assigns of Indemnitee.  The
obligations and duties of the Company to Indemnitee under this Agreement shall
be binding on the Company and its successors and assigns until terminated in
accordance with its terms.  The Company
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

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 or her corporate status prior
to such amendment, alteration or repeal. 
To the extent that a change in the Code, whether by statute or judicial
decision, permits greater indemnification or advancement of expenses than would
be afforded currently under the Company’s Certificate of Incorporation, 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, by Indemnitee shall not prevent
the concurrent assertion or employment of any other right or remedy by
Indemnitee.

12.          Term.  The rights conferred on Indemnitee by this
Agreement shall continue after Indemnitee has ceased to be a director, officer,
employee or other agent of the Company or
to serve at the request of the Company
as a director, officer, employee or other agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
and shall inure to the benefit of Indemnitee’s heirs, executors and
administrators.

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No legal action shall be
brought and no cause of action shall be asserted by or in the right of the
Company against an Indemnitee or an Indemnitee’s estate, spouse, heirs,
executors or personal or legal representatives after the expiration of five (5)
years from the date of accrual of such cause of action, and any claim or cause
of action of the Company shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within such five-year period;
provided, however, that if any shorter period of limitations is otherwise
applicable to such cause of action, such shorter period shall govern.

13.          Subrogation.  In the event of 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, at the request and expense of the
Company, shall execute all papers required and shall do everything that may be
reasonably necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

14.          Interpretation of
Agreement.  It is understood that the
parties hereto intend this Agreement to be interpreted and enforced so as to
provide indemnification to Indemnitee to the fullest extent now or hereafter
permitted by law.

15.          Severability.  If any provision of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever,
(a) the validity, legality and enforceability of the remaining provisions
of the Agreement (including without limitation, all portions of any paragraphs
of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall
not in any way be affected or impaired thereby; and (b) to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, all portions of any paragraph of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested by the provision held invalid, illegal or unenforceable
and to give effect to Section 14 hereof.

16.          Amendment and
Waiver.  No supplement, modification,
amendment, termination, or cancellation of this Agreement shall be binding
unless executed in writing by the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

17.          Notice.  Except as otherwise provided herein, any
notice or demand which, by the provisions hereof, is required or which may be
given to or served upon the parties hereto shall be in writing and, if by
telegram, telecopy or telex, shall be deemed to have been validly served, given
or delivered when sent, if by overnight delivery, courier or personal delivery,
shall be deemed to have been validly served, given or delivered upon actual
delivery and, if mailed, shall be deemed to have been validly served, given or
delivered three (3) business days after deposit in the United States mail, as
registered or certified mail, with proper postage prepaid and addressed to the
party or parties to be notified at the addresses set forth on the signature
page of this Agreement (or such other address(es) as a party may designate for
itself by like notice).  If to the
Company, notices and demands shall be delivered to the attention of the
Secretary of the Company.

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18.          Governing Law.  This Agreement shall be governed exclusively
by and construed according to the laws of the State of California, as applied
to contracts between California residents entered into and to be performed
entirely within California.

19.          Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original but all of which
together shall constitute but one and the same Agreement.  Only one such counterpart need be produced to
evidence the existence of this Agreement.

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

21.          Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements, understandings and
negotiations, written and oral, between the parties with respect to the subject
matter of this Agreement, including without limitation, that certain Indemnity
Agreement between the parties dated                  ;
provided, however, that this Agreement is a supplement to and in furtherance of
the Company’s Certificate of Incorporation, Bylaws, the Code and any other
applicable law, and shall not be deemed a substitute therefor, and does not
diminish or abrogate any rights of Indemnitee thereunder.

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

	
  

  	
   

  	
  FAVRILLE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INDEMNITEE 
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature of Indemnitee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print or Type Name of Indemnitee

  

 

 10Exhibit 10.1

CARREKER CORPORATION

SENIOR EXECUTIVE

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment
Agreement (the “Agreement”) is dated as of October 11, 2006, between Carreker
Corporation, a Delaware corporation with its principal executive offices at
4055 Valley View Lane, Suite 1000, Dallas, Texas 75244 (the “Company”), and
Suzette Massie (the “Executive”) who resides at 4517 Voyager Drive, Frisco,
Texas 75034.

W I T N E S S E T H:

WHEREAS, the Executive and the
Company desire to define the terms of the employment of the Executive with the
Company;

NOW, THEREFORE, for and in
consideration of the premises and the mutual covenants contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, and subject to the terms and conditions hereinafter set
forth, the parties hereto agree as follows:

1.                                       DEFINITIONS.

In addition to the words and terms elsewhere
defined in this Agreement, the following words and terms as used herein shall
have the following meanings, unless the context or use indicates a different
meaning:

“Cause” means (a) any act by the
Executive that is materially adverse to the best interests of the Company and
which, if the subject of a criminal proceeding, could result in a criminal
conviction for a felony or (b) the failure by the Executive to substantially
perform his/her duties hereunder, which duties are within the control of the
Executive (other than the failure resulting from the Executive’s incapacity due
to physical or mental illness), provided, however, that the Executive shall not
be deemed to be terminated for Cause under this subsection (b) unless and until
(1) after the Executive receives written notice from the Company specifying
with reasonable particularity the actions of Executive which constitute a
violation of this subsection (b) and (2) within a period of 30 days after
receipt of such notice (and during which the violation is within the control of
the Executive), Executive fails to reasonably and prospectively cure such
violation.

“Good Reason” means the
occurrence of a Triggering Event (as defined below) and (A) without his/her
prior concurrence, the
Company materially diminishes the Executive’s duties,
assigns to the Executive duties inconsistent with his/her designated position,
or reduces the Executive’s Base Salary or Targeted Bonus (as defined below) to
an amount less than previously determined or established by the Chairman or
Board of Directors, (B) the Company’s or any
subsidiary’s requiring the Executive to perform services at any location
outside the Dallas, Texas metropolitan area, other than reasonable business
travel consistent with the requirements of the business , or (C) any change in any Executive benefit plans
or

 

arrangements in effect on the date hereof in which the Executive
participates (including without limitation any pension and retirement plan,
savings and profit sharing plan, stock ownership or purchase plan, stock option
plan, or life, medical or disability insurance plan), which would adversely
affect the Executive’s rights or benefits thereunder, unless such change occurs
pursuant to a program applicable to all executive officers of the Company and
does not result in a proportionately greater reduction in the rights of or
benefits to the Executive as compared to any other executive officer of the
Company,.

“Triggering Date” means the date
of a Triggering Event.

“Triggering Event” means an event
of a nature that would be required to be reported by the Company in response to
Item 6(d) of Schedule 14A of Regulation 14A promulgated under the Exchange Act;
provided that, without limitation, such an event shall be deemed to have
occurred if (a) any person or group (as such terms are used in Section
13(d) and 14(d) of the Exchange Act) is or becomes the beneficial owner (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than 50% of the combined voting
power of the Company’s then outstanding securities, or (b) there are serving as
directors two or more persons who were elected as members of the Board of
Directors and were not nominated by management or the Board of Directors of the
Company to serve on the Board of Directors of the Company, or (c) the
Company is merged or consolidated with another corporation and as a result of
such merger or consolidation less than 51% of the outstanding voting securities
of the surviving or resulting corporation are owned in the aggregate by the
former shareholders of the Company, excluding for purposes of such calculation
shares of the voting securities of the Company owned by a party to such merger
or consolidation or affiliates (within the meaning of the Exchange Act) of such
party, as the same existed immediately prior to such merger or consolidation,
or (d) a liquidation or dissolution of the Company, or (e) a significant
reorganization of the Company occurs, such as a spin-off, sale of assets or
other restructuring, and as a result the duties and responsibilities of the
Executive are materially reduced.

2.                                       EMPLOYMENT.

The Company hereby employs the Executive and the
Executive hereby accepts employment on the terms and conditions set forth
herein.

3.                                       TERM.

The term of this Agreement
shall commence on the date of execution hereof and may be terminated only in
accordance with the provisions of Section 9 of this Agreement.

4.                                       SALARY.

(a)           For all services rendered by the Executive under this
Agreement, the Company shall pay the Executive a base salary as established
each fiscal year by the Chairman or Board of Directors (“Base Salary”) which Base Salary shall at
no time be less than the amount in effect at the date of this Agreement, payable in accordance with the Company’s
customary payroll practices.

 2
 

 

(b)           The Executive shall be entitled to participate in any
employee bonus plan or arrangement made available by the Chairman or Board of
Directors in the future to its executive officers, subject to and on a basis
consistent with the terms, conditions and overall administration of such plan
or arrangement, in a maximum potential amount as established by Executive’s
offer letter or other written communication (“Targeted Bonus”).

(c)           The Executive shall be entitled to participate in or
receive benefits under any employee benefit plan or arrangement (collectively
referred to as “Benefits”) made available by the Company in the future to its
executive officers and key management personnel, subject to and on a basis
consistent with the terms, conditions and overall administration of such plan
or arrangement.  Nothing paid to the
Executive under any plan or arrangement presently in effect or made available
in the future shall be deemed to be in lieu of the salary payable to the
Executive pursuant to Subsection 4(a) and 4(b).

5.                                       POSITION.

The
Executive shall be engaged in an executive capacity as a senior officer of the
Company.  The Executive will serve on the
executive/management committee of the Company that sets policy and strategy
for, and directs and manages the implementation and execution of, the business
of, the Company and its affiliates. The
precise services of the Executive may be extended or curtailed from time to
time at the direction of the Chairman or Board of Directors of the Company, provided that the
Executive’s authority, duties and responsibilities shall be at least
commensurate in all material respects with those provided for herein and
exercised by Executive at the date of this Agreement..

6.                                       DUTIES.

During the Employment Period, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive’s reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the
Employment Period it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees,
and (B) manage personal investments, so long as such activities do not
significantly interfere with the performance of the Executive’s
responsibilities as an employee of the Company in accordance with this
Agreement.

7.                                       DISABILITY.

If the Executive is unable to perform his/her
services by reason of illness or incapacity for a continuous period in excess
of six months, unless otherwise required by the provisions of Sections 10
or 24 of this Agreement, compensation otherwise payable by the Company
shall cease and any future payments to the Executive shall be subject to the
terms and provisions of long-term disability insurance coverage, if any,
maintained by the Company.  Notwithstanding
anything herein to the contrary, the Chairman or Board of Directors of the
Company may terminate the Executive’s employment with the Company under this
Agreement at any time after the Executive shall be absent from his/her
employment, for whatever reason, for a continuous period of more than six
months, and, except for any obligations of the Company under Sections 10,
24, and 27 of this Agreement, all other obligations of the Company
hereunder shall cease upon such termination.

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8.                                       COMPENSATION AFTER DEATH.

If the Executive dies during the term of his/her
employment, the Company shall pay to such person as the Executive shall
designate in a notice filed with the Company, or, if no such person shall be
designated, to his/her estate as a lump sum death benefit, all earned
and unpaid base salary, prorated bonuses (if any) for that portion of the year
of his/her death during which he worked, other bonuses (if any) accrued and
payable, and accrued benefits, all as of the date of his/her death, in addition to any payments the Executive’s
spouse, beneficiaries, or estate may be entitled to receive pursuant to any
pension or employee benefit plan or life insurance policy which may be
maintained by the Company, and such payments shall fully discharge the Company’s
obligations hereunder.

9.                                       TERMINATION.

9.1                                 Termination Prior to the Triggering Date.

(a)           Upon 60 days’ prior written notice to the Executive and
prior to the Triggering Date, the Company may terminate the Executive’s
employment with the Company under this Agreement with or without Cause.

(b)           Prior to the Triggering Date, the Executive may terminate
his/her employment with the Company under this Agreement by giving 60 days’
prior written notice of his/her desire to the Chairman or Board of Directors of
the Company.  The Executive will continue
to receive his/her Base Salary and Benefits through the date of termination
with no liability on the part of the Company for further payments to the
Executive unless Executive terminates his/her employment pursuant to Section
9.1(c)(ii), at which time Sections 9.1(c) and (d) shall apply.

(c)           In the event that (i) the Company terminates the Executive’s
employment for any reason other than for Cause and at a time when Executive is
not eligible to receive benefits under the Company’s Long Term Disability Plan;
or (ii) the Executive terminates his/her employment as a result of any of the
following reasons: (A) without the Executive’s consent the Company materially
diminishes the scope of the Executive’s duties, assigns to the Executive duties
materially inconsistent with his/her designated position, or reduces the
Executive’s Base Salary or Targeted Bonus to an amount less than previously
determined or established by the Chairman or Board of Directors, (B) the
Company’s or any subsidiary’s requiring the Executive to perform services at
any location outside the Dallas, Texas metropolitan area, other than reasonable
business travel, or (C) the Company breached
any of its material obligations under this Agreement and such breach is not
cured within 30 days after written notice thereof by the Executive; then the
Company shall pay the Executive severance payments in an amount equal to the
sum of the (x) Executive’s annualized Base Salary in effect at the time of such
termination, (“Annual Base Salary”) and (y) an amount equal to the maximum Targeted Bonus that
could have been payable to Executive (not to exceed fifty percent (50%) of
Annual Base Salary) for the fiscal year during which notice of such termination
occurs (“Bonus”)  (provided, however, that if the basis for
Executive’s termination is the reduction in his/her Base Salary, the severance
pay shall be based on the Base Salary in effect prior to such reduction).  The severance payments shall be made in
installments over a period of 12 months. 
Notwithstanding the foregoing, if the Executive terminates his/her
employment pursuant to clause (ii) above, he shall be entitled to the severance
payments provided for in this paragraph only if he gives written notice to the
Company of his/her termination of employment within 30 days after the
occurrence of the event or events specified in clause (ii) on which he bases
his/her termination and such

 4
 

 

notice specifies such event or events.

(d)           The severance payments provided for in this Section 9.1
shall be in lieu of all severance payments or benefits to which the Executive
might otherwise be entitled under Company severance policies from time to time
in effect, except for (i) accrued and unpaid Base Salary to the date of
termination, and (ii) any bonus or other compensation due with respect to
periods completed as of the date of termination.  Nothing contained in the foregoing shall be
construed so as to affect the Executive’s rights or the Company’s obligations
relating to agreements or benefits that are unrelated to termination of
employment.

(e)           In the event that the Company terminates the Executive’s
employment for Cause, the Company will have no liability on its part for
further payments after the termination date to the Executive.

(f)            In voting upon such termination described in Subsection
9.1(a), if the Executive is also a member of the Board of Directors of the
Company, then she may not vote on such termination, and the total number of
members of the Board of Directors will be reduced by one for purposes of voting
on such termination.

9.2                                 Termination After the Triggering Date.

(a)           On or after the Triggering Date and irrespective of
whether or not the Executive has given notice of termination of employment
pursuant to Section 9.2(c), the Company may terminate the Executive’s
employment with the Company under this Agreement only for Cause and, subject to
the provisions of Sections 24 and 27 hereof, with no liability on its part for
further payments to the Executive.

(b)           On or after the Triggering Date and irrespective of whether
or not the Executive has given notice of termination of employment pursuant to
Section 9.2(c), if the Executive’s employment with the Company is terminated
without Cause or if Executive terminates his/her employment with the Company
for Good Reason, the Executive will continue to accrue and receive his/her base
salary and Benefits through the date of termination and will be entitled to
receive the benefits provided for under Section 10 hereof.

(c)           On or after the Triggering Date, the Executive may, in his/her
sole and absolute discretion and without any prior approval by the Board of
Directors of the Company, and upon 60 days prior written notice to the Company,
terminate his/her employment with the Company under this Agreement for any
reason whatsoever.  If the Executive’s
employment with the Company under this Agreement is terminated pursuant to this
Subsection 9.2(c) and subject in all respects to the provisions of Section
9.2(a) and (b), the Executive will continue to accrue and receive his/her base
salary and Benefits through the date of termination and will be entitled to
receive the benefits provided for under Section 10 hereof.  No termination of the Executive’s employment
with the Company pursuant to Subsections 9.2(b) or (c) shall in any way terminate
the Company’s obligations under Sections 24 and 27 of this Agreement.

 5
 

 

10.                                 COMPENSATION AFTER CERTAIN TERMINATIONS.

If the Executive’s employment with the Company is
terminated (whether such termination is by the Executive or by the Company) at
any time on or within two years after the Triggering Date for any reason other
than (a) termination by the Company for Cause, (b) the Executive
having reached the age of 65, or (c) the Executive’s death, then, within
five days after the date of such termination, the Company shall pay the
Executive a lump sum amount in cash equal to two (2) times the sum of the (x)
Executive’s Annual Base Salary and (y) Bonus.

11.                                 TRANSFER OF ASSETS TO IRREVOCABLE TRUST.

On the Triggering Date or as soon thereafter as
the Company knows of the occurrence of a Triggering Event, the Company shall
transfer cash to the Irrevocable Trust created by the Irrevocable Trust
Agreement, an executed copy of which is attached hereto as Exhibit A, in an
amount no less than the total amount which would be payable to the Executive
pursuant to Section 10 of this Agreement as if the Executive’s employment
terminated on the Triggering Date.  The
Company shall take whatever steps are necessary to maintain the trust
established pursuant to the Irrevocable Trust Agreement and shall comply with
the terms of the Irrevocable Trust Agreement both before and after the
Triggering Date and until the Irrevocable Trust terminates by its own terms.

12.                                 MITIGATION.

The Executive shall not be
required to mitigate the amount of any payment provided for in this Agreement
by seeking other employment or otherwise, nor shall the amount of any payment
provided for in this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer after the date of
termination of Executive’s employment with the Company, or otherwise.

13.                                 NON-COMPETE AND CONFIDENTIAL INFORMATION. 

13.1.                        Covenant Not to Compete. 

(i)    Compliance
with the provisions of this Section 13 is an express condition of the Executive’s
right to receive payments, vesting, and benefits hereunder. The Executive
acknowledges and recognizes the confidential information and records provided
by the Company, the benefits provided hereunder, and the professional training
and experience he will receive from and the contacts he will be provided by the
Company, as well as the highly competitive nature of the Company’s business,
and in consideration of all of the above, agrees that during the period
beginning on the effective date of the Executive’s termination of employment
with the Company (the “Date of Termination”) and ending twelve (12) months
thereafter (the “Covered Time”), the Executive will not directly or indirectly,
individually or as an employee, partner, officer, director, or stockholder
(other than as the holder of less than 2% of the outstanding stock of a
publicly-traded corporation) (a) solicit from or perform for any client of the
Company any services which are directly competitive with any of the services
which the Company performs or solicits or (b) sell, license or lease any
products or services to any client of the Company which are directly
competitive with any products or services which the Company sells, licenses, or
leases. The Company will furnish to Executive, promptly after termination, a
list of clients as if the date of Executive’s termination for purposes of
establishing the definition of “client of the Company” under this Section 13.1, “.

 6
 

 

(ii)   The Executive agrees that
during the term of this Agreement (including any extensions thereof) and for
the twenty-four (24) months thereafter, he shall not (i) directly or indirectly
solicit or attempt to solicit any of the employees, agents, consultants, or
representatives of the Company or affiliates of the Company to leave any of
such entities; or (ii) directly or indirectly solicit or attempt to solicit any
of the employees, agents, consultants or representatives of the Company or
affiliates of the Company to become employees, agents, representatives or
consultants of any other person or entity.

(iii)  The Executive understands
that the provisions of Sections 13(a)(i) and (ii) may limit his ability to earn
a livelihood in a business similar to the business of the Company but
nevertheless agrees and hereby acknowledges that the restrictions and
limitations thereof are reasonable in scope, area, and duration, are reasonably
necessary to protect the goodwill and business interests of the Company, and
that the consideration provided under this Agreement is sufficient to justify
the restrictions contained in such provisions. Accordingly, in consideration
thereof and in light of the Executive’s education, skills and abilities, the
Executive agrees that he will not assert that, and it should not be considered
that, such provisions are either unreasonable in scope, area, or duration, or
will prevent him from earning a living, or otherwise are void, voidable, or
unenforceable or should be voided or held unenforceable.

13.2.                        Enforcement. 

(i)    The parties hereto agree and acknowledge that
the covenants and agreements contained herein are reasonable in scope, area,
and duration and necessary to
protect the reasonable competitive business interests of the Company,
including, without limitation, the value of the proprietary information and
goodwill of the Company.

(ii)   The Executive agrees that
the covenants and undertakings contained in Section 13 of this Agreement relate
to matters which are of a special, unique and extraordinary character and that
the Company cannot be reasonably or adequately compensated in damages in an
action at law in the event the Executive breaches any of these covenants or
undertakings. Therefore, the Executive agrees that the Company shall be
entitled, as a matter of course, without the need to prove irreparable injury,
to an injunction, restraining order or other equitable relief from any court of
competent jurisdiction, restraining any violation or threatened violation of
any of such terms by the Executive and such other persons as the court shall
order. The Executive agrees to pay costs and legal fees incurred by the Company
in obtaining such injunction.

(iii)  Rights and remedies provided for in this Section 13(b) are
cumulative and shall be in addition to rights and remedies otherwise available
to the parties under any other agreement or applicable law.

(iv)  In the event
that any provision of this Agreement shall to any extent be held invalid,
unreasonable or unenforceable in any circumstances, the parties hereto agree
that the remainder of this Agreement and the application of such provision of
this Agreement to other circumstances shall be valid and enforceable to the
fullest extent permitted by law. If any provision of this Agreement, or any
part thereof, is held to be unenforceable because of the scope or duration of
or the area covered by such provision, the parties hereto agree that the court
or arbitrator making such determination shall reduce the scope, duration and/or
area of such provision (and shall substitute appropriate provisions for any
such unenforceable 

 7
 

 

provisions) in order to make such provision enforceable to the fullest
extent permitted by law, and/or shall delete specific words and phrases, and
such modified provision shall then be enforceable and shall be enforced. The
parties hereto recognize that if, in any judicial proceeding, a court shall
refuse to enforce any of the separate covenants contained in this Agreement,
then that unenforceable covenant contained in this Agreement shall be deemed
eliminated from these provisions to the extent necessary to permit the
remaining separate covenants to be enforced. In the event that any court or
arbitrator determines that the time period or the area, or both, are
unreasonable and that any of the covenants is to that extent unenforceable, the
parties hereto agree that such covenants will apply in the greatest geographical area that
would not render them unenforceable.

(v)   In the event of the
Executive’s breach of this Section 13, in addition to all other rights the
Company may have hereunder or in law or in equity, all payments and benefits
hereunder shall cease; all options, stock, and other securities granted by the
Company, including stock obtained through prior exercise of options, shall be
immediately forfeited (whether or not vested), and the original purchase price,
if any, shall be returned to the Executive; and all profits received through
exercise of options or sale of stock, and all previous payments and benefits
made or provided hereunder shall be promptly returned and repaid to the Company.

13.3.        Confidential
Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or
data relating to the Company or any of its affiliated companies, and their
respective businesses, which shall have been obtained by the Executive during
the Executive’s employment by the Company or any of its affiliated companies
and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive’s employment with the Company, the Executive
shall not, without the prior written consent of the Company or as may otherwise
be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 13.3 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

14.                                 ENTIRE AGREEMENT.

This
Agreement embodies the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersedes all prior
negotiations, agreements, and understandings relating to such subject matter,
and may be modified or amended only by an instrument in writing signed by the
parties hereto.

15.                                 LAW TO GOVERN.

This Agreement is executed and delivered in the
State of Texas and shall be governed, construed, and enforced in accordance
with the laws of the State of Texas.

 8
 

 

16.                                 ASSIGNMENT.

This Agreement is personal to the parties, and
neither this Agreement nor any interest herein may be assigned (other than by
will or by the laws of descent and distribution) without the prior written
consent of the parties hereto nor be subject to alienation, anticipation, sale,
pledge, encumbrance, execution, levy, or other legal process of any kind
against the Executive or any of his/her beneficiaries or any other person.  Notwithstanding the foregoing, but subject to
satisfaction of the Company’s obligation to fund the Irrevocable Trust as
provided in Section 11, the Company shall be permitted to assign this Agreement
to any corporation or other business entity succeeding to substantially all of
the business and assets of the Company by merger, consolidation, sale of
assets, or otherwise, but only if by written agreement the Company’s successor
assumes in full all of the Company’s obligations under this Agreement.  From and after assignment of this Agreement
by the Company in accordance with the foregoing provisions, a Triggering Event
shall be deemed to have occurred. 
Failure by the Company to obtain such assumption prior to the effectiveness
of such succession shall be a breach of this Agreement and shall entitle the
Executive to immediately receive compensation under this Agreement from the
Company and from the Company’s successor in the same aggregate amount and on
the same terms as he would be entitled to hereunder if he had voluntarily
terminated his/her employment with the Company for Good Reason after the
Triggering Date, and, for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Triggering
Date.

17.                                 BINDING AGREEMENT.

Subject to the provisions of
Section 16 of this Agreement, this Agreement shall be binding upon and
shall inure to the benefit of the Company and the Executive and their
respective representatives, successors, and assigns.

18.                                 REFERENCES AND GENDER.

All references to “Sections” and “Subsections”
contained herein are, unless specifically indicated otherwise, references to
sections and subsections of this Agreement. 
Whenever herein the singular number is used, the same shall include the
plural where appropriate, and words of any gender shall include each other
gender where appropriate.

19.                                 WAIVER.

No waiver of any right under this Agreement shall
be deemed effective unless the same is set forth in writing and signed by the
party giving such waiver, and no waiver of any right shall be deemed to be a
waiver of any such right in the future.

20.                                 NOTICES.

Except as may be otherwise specifically provided
in this Agreement, all notices required or permitted hereunder shall be in
writing and will be deemed to be delivered when deposited in the United States
mail, postage prepaid, registered or certified mail, return receipt requested,
addressed to the parties at the respective addresses set forth herein, or at
such other addresses as may have theretofore been specified by written notice
delivered in accordance herewith.

 9
 

 

21.                                 OTHER INSTRUMENTS.

The parties hereto covenant and agree that they
will execute such other and further instruments and documents as are or may
become necessary or convenient to effectuate and carry out the terms of this
Agreement.

22.                                 HEADINGS.

The headings used in this Agreement are used for
reference purposes only and do not constitute substantive matter to be
considered in construing the terms of this Agreement.

23.                                 INVALID PROVISION.

Any clause, sentence, provision, section,
subsection, or paragraph of this Agreement held by a court of competent
jurisdiction to be invalid, illegal, or ineffective shall not impair,
invalidate, or nullify the remainder of this Agreement, but the effect thereof
shall be confined to the clause, sentence, provision, section, subsection, or
paragraph so held to be invalid, illegal, or ineffective.

24.                                 RIGHTS UNDER PLANS AND PROGRAMS.

Anything in this Agreement to the contrary
notwithstanding, no provision of this Agreement is intended, nor shall it be
construed, to reduce or in any way restrict any benefit to which the Executive
may be entitled under any agreement, plan, arrangement, or program providing
benefits for the Executive.

25.                                 MULTIPLE COPIES.

This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall
together constitute one and the same instrument.  The terms of this Agreement shall become binding
upon each party from and after the time that he or it executed a copy
hereof.  In like manner, from and after
the time that any party executes a consent or other document, such consent or
other document shall be binding upon such parties.

26.                                 WITHHOLDING OF TAXES.

The Company may withhold from any amounts payable
under this Agreement all federal, state, city, or other taxes as shall be
required pursuant to any law or government regulation or ruling.

27.                                 LEGAL FEES AND EXPENSES.

The Company shall pay and be responsible for all
legal fees and expenses which the Executive may incur as a result of the
Company’s failure to perform under this Agreement or as a result of the Company
or any successor contesting the validity or enforceability of this Agreement.

 10
 

 

28.                                 SET OFF OR COUNTERCLAIM.

Except with respect to any claim against or debt
or other obligation of the Executive properly recorded on the books and records
of the Company prior to the Triggering Date, there shall be no right of set off
or counterclaim against, or delay in, any payment by the Company to the
Executive or his/her beneficiaries provided for in this Agreement in respect of
any claim against or debt or other obligation of the Executive, whether arising
hereunder or otherwise.

IN WITNESS WHEREOF, the parties
have executed this Agreement on the day and year first above written.

	
   

  	
  CARREKER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  J. D. Carreker

  
	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Suzette Massie

  
					

 

 11

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