Document:

exhibit4_5.htm

    
      

    

    REGISTRATION
RIGHTS AGREEMENT

     

    This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) dated as
of July 1, 2008 (the “Effective Date”), is
entered into by and among the individuals and entities signing this Agreement
and GulfMark Offshore, Inc., a Delaware corporation (the “Company”).

     

    WHEREAS,
contemporaneously with the execution of this Agreement and pursuant to that
certain Membership Interest and Stock Purchase Agreement dated as of May 28,
2008 (the “Purchase
Agreement”), among Rigdon Marine Holding LLC (“RMH”), Rigdon Marine
Corporation (“RMC”), the Sellers
named therein who are also the signatories to this Agreement (the “Sellers”) and the
Company, the Company is purchasing from Sellers all of the membership interests
in RMH and all of the shares of Common Stock in RMC not owned by
RMH;

     

    WHEREAS,
as partial consideration for the sale by Sellers of such membership interests
and shares pursuant to the Purchase Agreement, the Company is issuing to Sellers
shares (the “Shares”) of the
Company’s common stock, $.01 par value per share (the “Common Stock”), such
Shares having the rights and benefits set forth in the Company’s Certificate of
Incorporation, as amended; and

     

    WHEREAS,
the Company has agreed to provide Sellers certain registration rights with
respect to the Registrable Shares (as defined below), as set forth
herein;

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and other valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

     

    1. Definitions.  For
purposes of this Agreement, (a) the capitalized terms set forth below shall
have the respective meanings specified below, and (b) other capitalized
terms used but not otherwise defined herein shall have the respective meanings
assigned to such terms in the Purchase Agreement.

     

    “Affiliates” means any
Person who is an “affiliate” as defined in Rule 12b-2 of the General Rules
and Regulations under the Securities Exchange Act.

     

    “Blue Sky Laws” means
any applicable state Blue Sky and securities laws.

     

    “Commission” shall
mean the Securities and Exchange Commission.

     

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as in effect from time to time, and
the rules and regulations promulgated thereunder.

     

    “Person” means any
individual, firm, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, limited
liability company, governmental authority or other entity of any kind, and shall
include any successor (by merger or otherwise) of such entity.

     

     

    
      
         

      

      
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      “Public Offering”
shall mean a public offering and sale of Common Stock of the Company for cash
pursuant to an effective registration statement under the Securities
Act.

       

    

    “Purchase Agreement”
shall have the meaning set forth in the Recitals.

     

    “Registering
Stockholder” shall mean the Sellers and their successors and permitted
assigns, in each case that holds any Registrable Shares at a given
time.

     

    “Registrable Shares”
shall mean the Shares and all shares directly or indirectly issued or issuable
with respect to the Shares by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization.  As to any particular Registrable Shares,
such shares shall cease to be Registrable Shares when (a) a registration
statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (b) such securities shall
have been disposed of pursuant to Rule 144 (or any successor provision) under
the Securities Act, (c) such securities shall have been otherwise transferred,
new certificates for them not bearing a legend restricting further transfer
shall have been delivered by the Company and subsequent disposition of them
shall not require registration of them under the Securities Act and such
securities may be distributed without volume limitation or other restrictions on
transfer under Rule 144 other than that the Company be current in its reporting
obligations, or (d) such securities shall have ceased to be
outstanding.

     

    “Rule 144” shall mean
Rule 144 under the Securities Act.

     

    “Securities Act” shall
mean the Securities Act of 1933, as in effect from time to time, and the rules
and regulations promulgated thereunder.

     

    2. Shelf
Registration.  As soon as practicable after the date hereof,
but in no event later than seventy-five (75) days after the date hereof, the
Company shall file a registration statement (“Registration
Statement”) with the SEC to effect the registration under the Securities
Act of the Registrable Shares for sale by the Registering Stockholders in
accordance with the following:

     

    (a) The
Company shall not be required to conduct an underwritten offering.

     

    (b) If, after
it becomes effective, the Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other
governmental authority, such registration shall not be deemed to have been
effected unless such stop order, injunction or other order shall have been
subsequently vacated or removed within fifteen (15) days after such
interference.

     

    (c) The
Company shall have no obligation to include the Registrable Shares owned by any
Registering Stockholder in the Registration Statement unless and until such
Registering Stockholder has furnished the Company with all information and
statements about or pertaining to such Registering Stockholder in such
reasonable detail and on such timely basis as is reasonably deemed by the
Company to be necessary for the preparation of the Registration
Statement.

     

    
      
         

      

      
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      (d) The
Company shall, subject to the other provisions of this
Section 2:

    

     

    (i) Use its
best efforts to cause the Registration Statement to become effective as soon as
practicable after the filing thereof, but in no event later than seventy-five
(75) days after the date hereof;

     

    (ii) Prepare
and file with the SEC as promptly as practicable such amendments and supplements
to the Registration Statement and the prospectus contained therein as may be
necessary to keep such Registration Statement effective and to comply with the
provisions of the Securities Act until the first anniversary of the effective
date of the Registration Statement or until the Registering Stockholders have
completed the distribution described in such Registration Statement, whichever
occurs first; provided, however, that if for any reason following effectiveness
of the Registration Statement and prior to the first anniversary of the
effective date of the Registration Statement, the Registering Stockholders are
unable (other than pursuant to Section 4 hereof or for circumstances relating
solely to the Registering Stockholders) to sell Registrable Shares pursuant to
the Registration Statement, the period during which the Company is obligated to
keep the Registration Statement effective shall be extended by the aggregate
number of days during which such Registering Stockholders are unable to sell
Registrable Shares as described in this proviso;

     

    (iii) Furnish
to the Registering Stockholders the number of copies of such Registration
Statement, each amendment and supplement thereto and each prospectus contained
therein as the Registering Stockholders may reasonably request;

     

    (iv) Use its
reasonable best efforts to register or qualify such shares under the Blue Sky
Laws of such jurisdictions as the Registering Stockholders reasonably request
(and to keep such registrations and qualifications effective for so long as the
Registration Statement is maintained effective), and to do any and all other
acts and things that may be reasonably necessary or advisable to enable the
Registering Stockholders to consummate the disposition of the Registrable Shares
in such jurisdictions; provided, however, that the Company will not be required
to do any of the following:  (1) qualify generally to do business
in any jurisdiction where it would not be required but for this Section 2,
(2) subject itself to taxation in any such jurisdiction, or (3) file
any general consent to service of process in any such jurisdiction;

     

    (v) Promptly
notify the Registering Stockholders at any time during the period that the
Company is required to keep the Registration Statement effective, of the
occurrence of any event as a result of which such Registration Statement or the
prospectus contained therein contains an untrue statement of a material fact or
omits any fact necessary to make the statements therein in the light of the
circumstances under which they were made, not misleading (including, without
limitation, as a result of the Company's being engaged in any plan, proposal or
agreement with respect to any material financing, acquisition, recapitalization
or other material transaction (a "Company Material Transaction")) and the
Company shall, as soon as practicable, prepare a supplement or amendment to the
Registration Statement or such prospectus so that, as thereafter delivered to
the purchasers of such shares, the Registration Statement will not contain an
untrue statement of a material fact or omit to state any fact necessary to make
the statements therein, in the light of the circumstances under which they were

    
      
         

      

      
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    made, not
misleading; provided, however, that following any such notification by the
Company as described in this clause (v), each Registering Stockholder will
immediately discontinue any sales of Registrable Shares pursuant to such
Registration Statement until such Registering Stockholder has received copies of
such supplemented or amended prospectus; and, provided further, that the Company
shall not be required to provide any such supplemented or amended prospectus
with respect to any Company Material Transaction the public disclosure of which
would be materially detrimental to the Company (as determined by the Company's
board of directors) until the earliest of (x) termination or abandonment of
such Company Material Transaction, (y) public disclosure thereof (other
than by any Registering Stockholder) and (z) the date 45 days following the
Company's initial notification to the Registering Stockholders of such Company
Material Transaction under this clause (v);

     

    (vi) Use
commercially reasonable efforts to cause all Registrable Shares to be listed on
the New York Stock Exchange or such other exchanges on which shares of GLF
Common Stock are then traded; and

     

    (vii) Except
for the fees and expenses specified in paragraph (f) of this Section 2, the
Company shall pay all expenses incident to the registration and to the Company’s
performance of or compliance with this Section 2,
including, without limitation, all registration and filing fees, fees and
expenses of compliance with Blue Sky Laws, printing expenses, messenger and
delivery expenses, and fees and expenses of counsel for the Company and all
independent certified public accountants and other persons retained by or on
behalf of the Company.

     

    (e) If the
Registrable Shares owned by the Registering Stockholders are included in a
Registration Statement, the Registering Stockholders shall pay all underwriting
discounts and commissions, if any, and transfer taxes, if any, relating to the
sale of the Registrable Shares and the fees and expenses of its own
counsel.

     

    3. Piggyback Registration
Rights.

     

    (a) Piggyback
Registration. Subject to Section 3(b)
below, each time the Company proposes to register any shares of Common Stock
under the Securities Act on a form which would permit registration of
Registrable Shares for sale to the public (a “Registration”), for
its own account or for the account of any holder of Common Stock, in a Public
Offering, the Company will give notice of its intention to do so to all
Registering Stockholders.  Any Registering Stockholder may, by written
response delivered to the Company within twenty (20) days after the
effectiveness of such notice, request that all or a specified part of the
Registrable Shares held by such Registering Stockholder be included in such
registration. The Company thereupon will use its reasonable efforts to cause to
be included in such Registration all shares of Registrable Shares which the
Company has been so requested to register by such Registering Stockholder, to
the extent required to permit the disposition (in accordance with the methods to
be used by the Company or other Registering Stockholders selling shares of stock
in such Public Offering) of the Registrable Shares to be so
registered.

     

    (b) Excluded
Transactions.  Notwithstanding the foregoing, the Company shall
not be obligated to effect any registration of Registrable Shares under this
Section 3

    
      
         

      

      
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    incidental
to the registration of any of its securities in connection with (i) any Public
Offering relating to employee benefit plans or dividend reinvestment plans, or
(ii) any Public Offering relating to the acquisition or merger after the date
hereof by the Company or any of its subsidiaries of or with any other
businesses.

     

    (c) Payment of
Expenses.  If, pursuant to this Agreement, the Registrable
Shares owned by the Registering Stockholders are included in a Registration, the
Registering Stockholders shall pay all transfer taxes, if any, relating to the
sale of the Registrable Shares, the fees and expenses of their own counsel and
all underwriters’ discounts and commission attributable to the Registrable
Shares.  The Company shall pay all other expenses incident to the
registration and to the Company’s performance of or compliance with this
Agreement, including, without limitation, all registration and filing fees, fees
and expenses of compliance with Blue Sky Laws, printing expenses, messenger and
delivery expenses and fees and expenses of counsel for the Company and all
independent certified public accountants and other Persons retained by or on
behalf of the Company.

     

    (d) Additional
Procedures.  Registering Stockholders participating in any
Public Offering pursuant to this Section 3 shall
provide such information, take all such actions and execute all such documents
and instruments that are reasonably requested by the Company to effect the sale
of their shares in such Public Offering, including, without limitation, being
parties to any underwriting agreement entered into by the Company and any other
selling stockholders in connection therewith and being liable in respect of the
individual representations and warranties made by such Registering Stockholders
and the other agreements made by such Registering Stockholders (including
customary selling stockholder indemnifications and “lock-up” agreements) to and
for the benefit of the underwriters in such underwriting agreement; provided,
however, that with respect to individual representations, warranties and
agreements of such Registering Stockholders, the aggregate amount of such
liability shall not exceed such Registering Stockholder’s net proceeds from such
offering.  The Company shall have no obligation to include the
Registrable Shares owned by any Registering Stockholder in the Public Offering
unless and until such Registering Stockholder has complied with the requirements
of this Section on such timely basis as is reasonably deemed by the Company to
be necessary.

     

    (e) Underwriter’s
Cutback.

     

    (i) If a
Registration involves an underwritten Public Offering and the managing
underwriter or underwriters in good faith advise the Company in writing that, in
their opinion, the number of shares of Registrable Shares which the Registering
Stockholders intend to include in such registration exceeds the largest number
of shares which can be sold in such offering without having an adverse effect on
such offering (including, but not limited to, the price at which the shares can
be sold), then the Company may limit the number of shares of Common Stock that
would otherwise be included in such registration by excluding any or all
Registrable Shares from such registration (it being understood that the number
of shares which the Company, for its own account or for the account of any
holder of its shares initiating such Registration, seeks to have registered in
such Registration shall not be subject to exclusion, in whole or in part, under
this Section
3(e)(i)). Upon receipt of notice from the underwriter of the need to
reduce the number of shares to be included in the Registration, the Company
shall advise all Registering Stockholders holding Registrable Shares that would
otherwise be registered and 

    
      
         

      

      
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    underwritten
pursuant hereto, and the number of shares of such securities, including
Registrable Shares, that may be included in the registration shall be allocated
in the following manner: the number of Registrable Shares that may be included
in such registration shall be allocated among the Registering Stockholders
holding Registrable Shares to be included in such Registration, as nearly as
practicable, in accordance with the respective amounts of Registrable Shares
held by each such Registering Stockholder.

     

    (ii) No
securities excluded from the underwriting by reason of such an underwriter’s
marketing limitation pursuant to Section 3(e)(i) shall be included in such
Registration. If any Registering Stockholder of Registrable Shares disapproves
of the terms of the underwriting, it may elect to withdraw therefrom by written
notice to the Company and the underwriter at least fifteen (15) days prior to
the effectiveness of such Registration. The Registrable Shares so withdrawn
shall also be withdrawn from the Registration.

     

    (f) Obligations of the
Company.  Whenever required under this Section 3 to use
its best efforts to effect the registration of any Registrable Shares, as part
of a Public Offering the Company shall:

     

    (i) As
expeditiously as reasonably possible, prepare and file with the Commission a
registration statement with respect to the Company’s securities subject to such
offering (the “Piggyback Registration
Statement”) and use its best efforts to cause the Piggyback Registration
Statement to become effective;

     

    (ii) Use its
reasonable best efforts to cause the Piggyback Registration Statement to become
effective as soon as practicable after the filing thereof;

     

    (iii) Prepare
and file with the Commission as promptly as practicable such amendments and
supplements to the Piggyback Registration Statement and the prospectus contained
therein as may be necessary to keep such Piggyback Registration Statement
effective and to comply with the provisions of the Securities Act until the
first anniversary of the Effective Date or until the Registering Stockholders
have completed the distribution described in such Piggyback Registration
Statement, whichever occurs first;

     

    (iv) Furnish
to the Registering Stockholders the number of copies of such Registration
Statement, each amendment and supplement thereto and each prospectus contained
therein as the Registering Stockholders may reasonably request;

     

    (v) Use its
reasonable best efforts to register or qualify such shares under the Blue Sky
Laws of such jurisdictions as the Registering Stockholders reasonably request
(and to keep such registrations and qualifications effective for so long as the
Registration Statement is maintained effective), and to do any and all other
acts and things that may be reasonably necessary or advisable to enable the
Registering Stockholders to consummate the disposition of the Registrable Shares
in such jurisdictions; provided, however, that the Company will not be required
to do any of the following: (A) qualify generally to do business in any
jurisdiction where it would not be required but for this Agreement,
(B) subject itself to taxation in any such jurisdiction, or (C) file
any general consent to service of process in any such jurisdiction;

     

    
      
         

      

      
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      (vi) Promptly
notify the Registering Stockholders at any time during the period that the
Company is required to keep the Registration Statement effective, of
the occurrence of any event as a result of which such Registration
Statement or the prospectus contained therein contains an untrue statement of a
material fact or omits any fact necessary to make the statements therein in the
light of the circumstances under which they were made, not misleading, and
promptly prepare a supplement or amendment to the Registration Statement or such
prospectus so that, as thereafter delivered to the purchasers of such shares,
the Registration Statement will not contain an untrue statement of a material
fact or omit to state any fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading;
and

    

     

    (vii) Use
commercially reasonable efforts to cause all Registrable Shares to be listed on
the New York Stock Exchange or such other exchanges on which shares of Common
Stock are then traded.

     

    (g) Selection of Underwriters
and Counsel.  Any underwriters and legal counsel to be retained
by the Company in connection with any Public Offering shall be selected by the
Board of Directors of the Company, in its sole
discretion.  

     

    4. Lock-Up.  Without
the prior written consent of the Company and, in the case of a Registration
under Section 3, the
underwriters managing the Public Offering, for a period of seventy-five (75)
days following the date of this Agreement, no Registering Stockholder (whether
or not a selling stockholder pursuant to such Registration Statement or
Piggyback Registration Statement) shall sell, pledge, assign, encumber or
otherwise transfer or dispose of any Registrable Shares to any other Person,
whether directly, indirectly, voluntarily, involuntarily, by operation of law,
pursuant to judicial process or otherwise, except pursuant to a Registration
Statement or Piggy-back Registration Statement; provided, however, that the
seventy-five (75) day period shall be increased to one hundred eighty (180) days
in the case of Larry T. Rigdon and his Affiliates.

     

    5.  Indemnification and
Contribution.

     

    (a) If the
Shares owned by the Registering Stockholders are sold by means of the
Registration Statement pursuant to Sections 2 or
3 of this
Agreement, each Registering Stockholder (for the purposes of this Section 5(a),
individually the “Indemnifying Person”
and collectively the “Indemnifying
Persons”) agrees to indemnify and hold harmless the Company, each of the
Company’s officers and directors and each person, if any, who controls or may
control the Company within the meaning of the Securities Act (for the purposes
of Section 5(a),
the Company, its officers and directors and any such other persons being
referred to individually as an “Indemnified Person”
and collectively as “Indemnified Persons”)
from and against all demands, claims, actions or causes of action, assessments,
losses, damages, liabilities, costs and expenses, including, without limitation,
interest, penalties and reasonable attorneys’ fees and disbursements, asserted
against, resulting to, imposed upon, or incurred by such Indemnified Person,
directly or indirectly (collectively, referred to for purposes of this Section 5(a) and
the corresponding provision of Section 5(b)
below in the singular as a “Claim” and in the
plural as “Claims”), based upon,
arising out of, or resulting from (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(including any preliminary 

    
      
         

      

      
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    or final
prospectus contained therein or any amendments or supplements thereto) or any
omission or alleged omission to state therein a material fact necessary in order
to make the statements made therein, in the light of the circumstances under
which they were made, not misleading, or (ii) any violation or alleged
violation of the Securities Act, the Exchange Act, any Blue Sky Laws or any rule
or regulation promulgated under the Securities Act, the Exchange Act or any
state securities law in connection with such registration and sale of
securities, in each case to the extent (but only to the extent) that such Claim
is based upon, arises out of or results from any untrue statement or omission
based upon information furnished to the Company by such Registering Stockholder
in a written document for use in connection with the Registration Statement; and
each such Registering Stockholder will pay, as incurred, any legal or other
expenses reasonably incurred by any person intended to be indemnified pursuant
to this Section 5(a) in
connection with investigating or defending any such Claim.

     

    (b) The
Company (for the purposes of this Section 5(b),
the “Indemnifying
Person”) agrees to indemnify and hold harmless each Registering
Stockholder participating in the distribution of Registrable Shares pursuant to
the Registration Statement or the Piggy-back Registration Statement and each of
such Registering Stockholders’ officers, directors and Affiliates, if applicable
(for the purposes of this Section 5(b),
the Registering Stockholders and any such other persons also being referred to
individually as an “Indemnified Person”
and collectively as “Indemnified Persons”)
from and against all Claims based upon, arising out of, or resulting from
(i) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or Piggy-back Registration Statement or
any omission or alleged omission to state therein a material fact necessary in
order to make the statement made therein, in the light of the circumstances
under which they were made, not misleading, or (ii) any violation or
alleged violation of the Securities Act or the Exchange Act, any Blue Sky Laws
or any rule or regulation promulgated under the Securities Act or the Exchange
Act or any Blue Sky Laws in connection with such registration and sale of
securities, and the Company will pay to each such Registering Stockholder or
other Indemnified Person, as incurred, any legal or other expenses reasonably
incurred thereby in connection with investigating or defending any such Claim;
provided, however, that the Company will not be liable in any such case to the
extent that any such Claim arises out of or results from any untrue statement or
omission based upon information furnished to the Company by the Registering
Stockholder in a written document provided by the Registering Stockholder for
use in connection with the Registration Statement or Piggy-back Registration
Statement, as applicable.

     

    (c) The
indemnification set forth in this Section 5 shall
be in addition to any liability the Company or the Registering Stockholders may
otherwise have in connection with any registration of Registrable
Securities.  Within a reasonable time after receiving definitive
notice of any Claim in respect of which an Indemnified Person may seek
indemnification under this Section 5, such
Indemnified Person shall submit written notice thereof to such Indemnifying
Person(s).  The failure of the Indemnified Person so to notify the
Indemnifying Person(s) of any such Claim shall not relieve the Indemnifying
Person(s) from any liability it may have hereunder except to the extent that it
has been materially prejudiced by such failure; provided, however, that the
omission of the Indemnified Person so to notify the Indemnifying Person(s) of
any such Claim shall not relieve the Indemnifying Person(s) from any liability
it may have otherwise than hereunder.  The Indemnifying Person(s)
shall have the right to undertake, by counsel or representatives of its own
choosing, the defense, compromise, or settlement (without admitting

    
      
         

      

      
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    liability
of the Indemnifying Person(s)) of any such Claim asserted, such defense,
compromise or settlement to be undertaken at the expense and risk of the
Indemnifying Person(s), and the Indemnified Person shall have the right to
engage separate counsel, at its own expense, which counsel for the Indemnifying
Person(s) shall keep informed and consult with in a reasonable manner; provided,
however, that the Indemnified Person(s) shall have the right to retain separate
counsel, with reasonable fees and expenses to be paid by the Indemnifying
Person(s), if representation of the Indemnified Person(s) by the counsel
retained by the Indemnifying Person(s) would be inappropriate due to potential
or actual differing interests between the Indemnified Person(s) and the
Indemnifying Person(s) in such proceeding.  In the event the
Indemnifying Person(s) shall fail to undertake such defense by its own
representatives, the Indemnifying Person(s) shall give prompt written notice of
such election to the Indemnified Person, and the Indemnified Person shall
undertake, at the Indemnifying Person(s)’ expense, the defense, compromise, or
settlement (without admitting liability of the Indemnified Person) thereof on
behalf of and for the account and risk of the Indemnifying Person(s) by counsel
or other representatives designated by the Indemnified
Person.  Notwithstanding the foregoing, no Indemnifying Person shall
be obligated hereunder with respect to amounts paid in settlement of any Claim
if such settlement is effected without the consent of such Indemnifying
Person(s) (which consent shall not be unreasonably withheld).

     

    (d) If the
indemnification provided for in this Section 5 is
held by a court of competent jurisdiction to be unavailable to an Indemnified
Party (as defined in either Section 5(a) or
5(b)) with
respect to any Claim, then the Registering Stockholders or the Company, as
applicable (each an “Indemnifying Party”),
in lieu of indemnifying an Indemnified Party hereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such Claim in
such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party, on the one hand, and of the Indemnified Party, on the other,
in connection with the statements, omissions or violations which resulted in
such Claim, as well as any other relevant equitable
considerations.  The relative fault of the Indemnifying Party and of
the Indemnified Party shall be determined by a court of law by reference to,
among other things, whether the untrue or allegedly untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Indemnifying Party or by the Indemnified
Party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     

    (e) Notwithstanding
anything to the contrary, in no event shall the aggregate liability of any
Registering Stockholder pursuant to this Section 5 be
greater in amount than the amount of net proceeds received by such Registering
Stockholder upon the sale of Registrable Shares pursuant to the Registration
Statement or Piggy-back Registration Statement, as applicable.

     

    6.  Availability of
Information.  The Company covenants that it will file the
reports required to be filed by it under the Securities Act and the Exchange
Act, and it will take such further action as any Registering Stockholder may
reasonably request to make available adequate current public information with
respect to the Company meeting the current public information requirements of
Rule 144, to the extent required to enable such Registering Stockholder to
sell Registrable Shares without registration under the Securities Act within the
limitation of the 

    
      
         

      

      
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    exemptions provided by (a) Rule 144, or (b) any similar
rule or regulation hereafter adopted by the Commission.

    7.  Termination.  The
registration rights granted pursuant to Sections 2 and 3
hereof shall terminate when all Registering Stockholders cease to hold any
shares of Common Stock that qualify as Registrable Shares under the definition
thereof in Section
1 hereof.  No such termination of the rights granted under
Sections 2 and 3 of this Agreement shall relieve any Person of liability
for breach prior to termination and such termination shall not terminate any
other provisions of this Agreement, including all obligations under
Section 5, which shall survive any such termination of Sections 2 and
3.

     

    8. Remedies.  Subject
to the express limitation on the liability of Registering Stockholders set forth
herein, the Company and each Registering Stockholder shall have all remedies
available at law, in equity or otherwise in the event of any breach or violation
of this Agreement or any default hereunder by the Company or any Registering
Stockholder. The parties acknowledge and agree that in the event of any breach
of this Agreement, in addition to any other remedies which may be available,
each of the parties hereto shall be entitled to specific performance of the
obligations of the other parties hereto and, in addition, to such other
equitable remedies (including, without limitation, preliminary or temporary
relief) as may be appropriate in the circumstances.

     

    9. Amendment;
Modification.

     

    (a) Oral
Modifications.  This Agreement may not be orally amended,
modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective.

     

    (b) Written
Modifications.  This Agreement may be amended, modified,
extended or terminated, and the provisions hereof may be waived, only by an
agreement in writing signed by the Company and the Registering Stockholders
representing more than sixty-six and two-thirds percent (66 2/3 %) of the Registrable Shares
held by all Registering Stockholders. Each such amendment, modification,
extension, termination and waiver shall be binding upon each party hereto and
each Registering Stockholder subject hereto. In addition, each party hereto and
each Registering Stockholder subject hereto may waive any right hereunder by an
instrument in writing signed by such party or Person.

     

    10. Authority;
Effect.  Each party hereto represents and warrants to and
agrees with each other party that the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized on behalf of such party and do not violate any agreement or other
instrument applicable to such party or by which its assets are bound. This
Agreement does not, and shall not be construed to, give rise to the creation of
a partnership among any of the parties hereto, or to constitute any of such
parties members of a joint venture or other association.

     

    11. Notices.  All
notices, requests, consents and demands to or upon the respective parties hereto
shall be in writing, and, unless otherwise expressly provided herein, shall be
deemed to have been duly given or made: (a) if delivered by hand (including
by overnight courier), when delivered; (b) on the next business day after
delivery to a nationally recognized 

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    overnight
carrier service if sent by overnight delivery for next morning delivery;
(c) in the case of mail, three (3) business days after deposit in United
States first class mail, certified with return receipt requested and postage
prepaid; and (d) in the case of facsimile transmission, when receipt is
mechanically acknowledged.  In each case: (x) if delivery is not
made during normal business hours at the place of receipt, receipt and due
notice under this Escrow Agreement shall be deemed to have been made on the
immediately following Business Day; and (y) notice shall be sent to the
address of the party to be notified, as follows, or to such other address as may
be hereafter designated by the respective parties hereto in accordance with
these notice provisions:

     

    
      	
              If
      to the Company, to:

            	
              GulfMark
      Offshore, Inc.

              10111
      Richmond Avenue, Suite 340

              Houston,
      Texas 77042

              Attention:  Bruce
      A. Streeter

              Fax:  (713)
      963-9796

            
	 
      	 
      
	
              With
      a copy to:

            	
              Strasburger
      & Price, LLP

              1401
      McKinney, Suite 2200

              Houston,
      Texas 77010

              Attention:  Garney
      Griggs

              Fax:  (832)
      397-3522

            

    

    

    If to any
Registering Stockholder, to it at its address on Schedule I
attached hereto.

    

    12. Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same
agreement.  The exchange of copies of this Agreement and of signature
pages by facsimile or other electronic transmission shall constitute effective
execution and delivery of this Agreement as to the parties and may be used in
lieu of the original for all purposes.  Signatures of the parties
transmitted by facsimile or other electronic transmission shall be deemed to be
their original signatures for all purposes.

     

    13. Binding
Effect.  This Agreement constitutes the entire agreement of the
parties hereto with respect to its subject matter, supersedes all prior or
contemporaneous oral or written agreements or discussions with respect to such
subject matter, and shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, representatives, successors and
permitted assigns.

     

    14. Assignment.  This
Agreement and the rights hereunder may not be assigned or transferred in any
respect by any Registering Stockholder, except that any Seller may assign or
transfer any of such Seller's rights under this Agreement to any Affiliate of
such Seller; provided, however, that (a) the
transferring Seller shall give the Company written notice at or prior to the
time of such transfer stating the name and address of the transferee and
identifying the Registrable Shares with respect to which the rights under this
Agreement are being transferred, (b) such transferee shall agree in
writing, in form and substance reasonably satisfactory to the Company, to be
bound as a Registering Stockholder by the provisions of this Agreement; and
(c) immediately following such transfer the further disposition of such
Registrable Shares by 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

    such transferee is restricted under the Securities Act.  No such
transfer of Registrable Shares shall cause such Registrable Shares to lose such
status.

    15. Descriptive
Headings.  The descriptive headings of this Agreement are for
convenience of reference only, are not to be considered a part hereof and shall
not be construed to define or limit any of the terms or provisions
hereof.

     

    16. Rules of
Construction.  Unless the context otherwise requires,
references to sections or subsections refer to sections or subsections of this
Agreement, and references to “including” mean “including but not limited to” the
specific matters referenced.  All personal pronouns in this Agreement,
whether used in the masculine, feminine or neuter gender shall include all other
genders, and the singular shall include the plural and the plural shall include
the singular.

     

    17. Severability.  In
the event that any provision hereof would, under applicable law, be invalid or
unenforceable in any respect, such provision shall be construed by modifying or
limiting it so as to be valid and enforceable to the maximum extent compatible
with, and possible under, applicable law. The provisions hereof are severable,
and in the event any provision hereof should be held invalid or unenforceable in
any respect, it shall not invalidate, render unenforceable or otherwise affect
any other provision hereof.

     

    18. Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas without regard to rules
concerning conflicts of laws.  If any dispute hereunder becomes the
subject of litigation, venue for such litigation shall be non-exclusive in the
state or federal court(s) of competent jurisdiction in Houston,
Texas.  The parties waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the
bringing of any such action or proceeding in such jurisdiction.

     

    [Remainder
of Page Intentionally Left Blank]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed, or have caused to be executed,
this Agreement as of the Effective Date.

    

    
      	 
      	 
      	
              SELLERS:

            
	 
      	 
      	 
      
	 
      	 
      	
              BOURBON
      OFFSHORE (F/K/A BOURBON

              OFFSHORE
      HOLDINGS, SAS)

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Christian Lefevre

            
	 
      	
              Name:

            	
              Christian
      Lefevre

            
	 
      	
              Title:

            	
              President

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Larry T. Rigdon

            
	 
      	 
      	
              Larry
      T. Rigdon

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Robert J. Gebhardt

            
	 
      	 
      	
              Robert
      J. Gebhardt

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Richard M. Currence, Jr.

            
	 
      	 
      	
              Richard
      M. Currence, Jr.

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      William L. Guice, IV

            
	 
      	 
      	
              William
      L. Guice, IV

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      James A. Harkness

            
	 
      	 
      	
              James
      A. Harkness

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Jim Whitley

            
	 
      	 
      	
              Jim
      Whitley

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      John Teague

            
	 
      	 
      	
              John
      Teague

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Kenneth W. Dawson

            
	 
      	 
      	
              Kenneth
      W. Dawson

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Thomas Sweeney

            
	 
      	 
      	
              Thomas
      Sweeney

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Jay Martin

            
	 
      	 
      	
              Jay
      Martin

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Nathan Guice

            
	 
      	 
      	
              Nathan
      Guice

            
	 
      	 
      	 
      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 
      	 
      	
              /s/
      David Darling

            
	 
      	 
      	
              David
      Darling

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/ Edward Goerig

            
	 
      	 
      	
              Edward
      Goerig

            
	 
      	 
      	 
      
	 
      	 
      	
              MER/JKR
      2006 Trust

               

            
	 
      	
              By:

            	
              /s/
      Robert J. Gebhardt

            
	 
      	
              Name:

            	
              Robert
      J. Gebhardt

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      James A. Harkness

            
	 
      	
              Name:

            	
              James
      A. Harkness

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              MMR/JKR
      2006 Trust

               

            
	 
      	
              By:

            	
              /s/
      Robert J. Gebhardt

            
	 
      	
              Name:

            	
              Robert
      J. Gebhardt

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      James A. Harkness

            
	 
      	
              Name:

            	
              James
      A. Harkness

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              MER/LTR
      2006 Trust

               

            
	 
      	
              By:

            	
              /s/
      Robert J. Gebhardt

            
	 
      	
              Name:

            	
              Robert
      J. Gebhardt

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      James A. Harkness

            
	 
      	
              Name:

            	
              James
      A. Harkness

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              MMR/LTR
      2006 Trust

               

            
	 
      	
              By:

            	
              /s/
      Robert J. Gebhardt

            
	 
      	
              Name:

            	
              Robert
      J. Gebhardt

            
	 
      	
              Title:

            	
              Trustee

            

    

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    
      	 
      	
              By:

            	
              /s/
      James A. Harkness

            
	 
      	
              Name:

            	
              James
      A. Harkness

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              SHERWOOD
      INVESTMENT, L.L.C.

               

            
	 
      	
              By:

            	
              /s/
      John J. Tennant

            
	 
      	
              Name:

            	
              John
      J. Tennant

            
	 
      	
              Title:

            	
              Co-Manager

            
	 
      	 
      	 
      
	 
      	 
      	
              JOHN
      J. TENNANT III IRREVOCABLE TRUST

               

            
	 
      	
              By:

            	
              /s/
      Annie T. Buell

            
	 
      	
              Name:

            	
              Annie
      T. Buell

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              BRIAN
      M. BOWMAN IRREVOCABLE TRUST

               

            
	 
      	
              By:

            	
              /s/
      Annie T. Buell

            
	 
      	
              Name:

            	
              Annie
      T. Buell

            
	 
      	
              Title:

            	
              Trustee

            
	 
      	 
      	 
      
	 
      	 
      	
              COMPANY:

            
	 
      	 
      	 
      
	 
      	 
      	
              GULFMARK
      OFFSHORE, INC

               

            
	 
      	
              By:

            	
              /s/
      Bruce A. Streeter

            
	 
      	
              Name:

            	
              Bruce
      A. Streeter

            
	 
      	
              Title:

            	
              President
      and C.E.O.

            
	 
      	 
      	 
      

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    SCHEDULE
I

     

    Registering
Stockholders

     

    

    

    
      	
              Name

            	
              Address

            
	
              Larry
      T. Rigdon

            	
              914
      Main Street, Suite 1805

              Houston,
      TX  77002

            
	
              Robert
      J. Gebhardt

            	
              Via
      Tassera 2

              CH-6918
      Figino

              Switzerland

            
	
              Richard
      M. Currence, Jr.

            	
              1505
      Arabella Street

              New
      Orleans, LA  70115

            
	
              William
      L. Guice, IV

            	
              6918
      Misty Leaf Lane

              Sugarland,  TX  77479

            
	
              James
      A. Harkness

            	
              2902
      Castlerock Court

              Pearland,
      TX  77584

            
	
              Kenneth
      W. Dawson

            	
              417
      Walker Drive

              Houma,
      LA  70364

            
	
              Thomas
      Sweeney

            	
              418
      Cedar Tree Drive

              Thibodaux,
      LA  70301

            
	
              Jay
      Martin

            	
              105
      Tiger Tail Road

              Houma,
      LA  70360

            
	
              Jim
      Whitley

            	
              3708
      Government Street

              Ocean
      Springs, MS  39564

            
	
              John
      Teague

            	
              157
      Kimberly Drive

              Mandeville,
      LA  70448

            
	
              Bourbon
      Offshore

            	
              N
      148 Rue Sainte

              13007
      Marseilles, Frane

            
	
              MMR/LTR
      2006 Trust

               

            	
              815
      Walker Street, Suite 1001

              Houston,
      TX 77002

            
	
              MER/LTR
      2006 Trust

               

            	
              815
      Walker Street, Suite 1001

              Houston,
      TX 77002

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              MMR/JKR
      2006 Trust

               

            	
              815
      Walker Street, Suite 1001

              Houston,
      TX 77002

            
	
              MER/JKR
      2006 Trust

               

            	
              815
      Walker Street, Suite 1001

              Houston,
      TX 77002

            
	
              Nathan
      Guice

               

            	
              103
      Osceola Ct.

              Mandeville,
      LA 70471

            
	
              David
      Darling

               

            	
              20923
      Twisted Leaf Dr.

              Cypress,
      TX 77433

            
	
              Edward
      Goerig

               

            	
              608
      East 8 1/2 St.

              Houston,
      TX 77007

            
	
              Sherwood
      Investments, L.L.C.

               

            	
              P.O.
      Box 1658

              Portland,
      Oregon 97207

            
	
              John
      J. Tennant III Irrevocable Trust

            	
              P.O.
      Box 938

              Vancouver,
      Washington 98666

            
	
              Brian
      M. Bowman Irrevocable Trust

            	
              P.O.
      Box 938

              Vancouver,
      Washington 98666

            

    

    

    

    
      
         

      

      
        2exhibit1.htm

    

                      Exhibit
10.1

       

      EMPLOYMENT
AGREEMENT

       

      This
Employment Agreement (the “Agreement”)
is made and entered into as of July 1, 2008, by and between
Tier Technologies, Inc., a Delaware corporation (together
with its successors and assigns, the “Company”),
and Ronald W. Johnston (the “Executive”).

       

      W
I T N E S S E T H

       

      WHEREAS,
the Company desires to employ the Executive as Senior Vice President, Chief
Financial Officer effective July 1, 2008 and to enter into an employment
agreement embodying the terms of such employment; and

       

      WHEREAS,
the Executive desires to enter into this Agreement and to accept such
continued employment, subject to
the terms and provisions of this Agreement;

       

      WHEREAS,
the parties also wish to enter into this Agreement and to terminate and
supersede all prior agreements including but not limited to the Executive
Services Agreement between the Company and Tatum LLC of March 31,
2008;

       

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

       

      
        	
                1.  

              	
                Definitions.

              

      

       

      (a) “Base
Salary” shall mean the Executive’s base salary as determined in
accordance with Section 4 below, including any applicable
increases.

       

      (b) “Board”
shall mean the Board of Directors of the Company.

       

      (c) “Cause”
shall mean a finding by the Company of:

       

      
        	
                (i)  

              	
                a
      conviction of the Executive of, or a plea of guilty or nolo contendere by the
      Executive to, any felony;

              

      

       

      
        	
                (ii)  

              	
                an
      intentional violation by the Executive of federal or state securities
      laws;

              

      

       

      
        	
                (iii)  

              	
                willful
      misconduct or gross negligence by the Executive that has or is reasonably
      likely to have a material adverse effect on the
  Company;

              

      

       

      
        	
                (iv)  

              	
                a
      failure of the Executive to perform his or her reasonably assigned duties
      for the Company that has or is reasonably likely to have a material
      adverse effect on the Company;

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

         

      

      
        	
                (v)  

              	
                a
      material violation by the Executive of any material provision of the
      Company’s Business Code of Conduct (or successor policies on similar
      topics) or any other applicable policies in
  place;

              

      

       

      
        	
                (vi)  

              	
                a
      violation by the Executive of any provision of  the Proprietary
      and Confidential Information, Developments, Noncompetition and
      Nonsolicitation Agreement (“NDA”) attached hereto as Exhibit A;
      or

              

      

       

      
        	
                (vii)  

              	
                fraud,
      embezzlement, theft or dishonesty by the Executive against the
      Company,

              

      

       

      provided that no finding of
Cause shall be made pursuant to subsections (ii), (iii), (iv), (v), (vi) or
(vii) hereof unless the Company has provided the Executive with written notice
in accordance with Section 21 below stating with specificity the facts and
circumstances underlying the allegations of Cause and the Executive has failed
to cure such violation, if curable, within thirty (30) calendar days of receipt
thereof.  The Board shall determine whether a violation is curable
and/or cured in its reasonable discretion.

       

      (d) “Change in
Control” shall occur upon:

       

      
        	
                (i)  

              	
                any
      person, entity or affiliated group becoming the beneficial owner or owners
      of more than fifty percent (50%) of the outstanding equity securities of
      the Company, or otherwise becoming entitled to vote shares representing
      more than fifty percent (50%) of the undiluted total voting power of the
      Company’s then-outstanding securities eligible to vote to elect members of
      the Board (the “Voting
      Securities”);

              

      

       

      
        	
                (ii)  

              	
                a
      consolidation or merger (in one transaction or a series of related
      transactions) of the Company pursuant to which the holders of the
      Company’s equity securities immediately prior to such transaction or
      series of related transactions would not be the holders immediately after
      such transaction or series of related transactions of more than fifty
      percent (50%) of the Voting Securities of the entity surviving such
      transaction or series of related
transactions;

              

      

       

      
        	
                (iii)  

              	
                the
      sale, lease, exchange or other transfer (in one transaction or a series of
      related transactions) of all or substantially all of the assets of the
      Company;

              

      

       

      
        	
                (iv)  

              	
                the
      dissolution or liquidation of the Company;
or

              

      

       

      
        	
                (v)  

              	
                the
      date on which (i) the Company consummates a “going private” transaction
      pursuant to Section 13 and Rule 13e-3 of the Securities Exchange Act of
      1934, as amended (the “Exchange
      Act”), or (ii) no longer has a class of equity security registered
      under the Exchange Act.

              

      

       

      (e)  “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to
time.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (f) “Compensation
Committee” shall mean the Compensation Committee of the Board or another
committee of the Board that performs the functions typically associated with a
compensation committee.

       

      (g) “Date of
Termination” shall mean (i) if the Executive’s employment is
terminated by reason of his or her death, the date of his or her death, or
(ii) if the Executive’s employment is terminated pursuant to any other
section, the prospective date specified in the written notice provided in
accordance with Section 21 below.

       

      (h) “Disability”
shall mean, for purposes of this Agreement, the Executive’s inability to
substantially perform his or her duties and responsibilities under this
Agreement for a period of six (6) consecutive months due to a physical or
mental disability, as the term “physical or
mental disability” is defined in the Company’s long-term disability
insurance plan then in effect (or would be so found if the Executive applied for
coverage or benefits under such plan).

       

      (i) “Effective
Date” shall mean July 1, 2008.

       

      (j) “Good
Reason” shall mean, without the Executive’s prior written consent, the
occurrence of any of the following events or actions, provided that no finding of
Good Reason shall be made pursuant to subsections (ii), (iii) or (iv) hereof
unless the Executive has provided the Company with written notice in accordance
with Section 21 below within ninety (90) days after the occurrence of such event
or action stating with specificity the facts and circumstances underlying the
allegations of Good Reason and the Company has failed to cure such violation
within thirty (30) calendar days of receipt thereof:

       

      
        	
                (i)  

              	
                any
      reduction in the Executive’s Base
Salary;

              

      

       

      
        	
                (ii)  

              	
                any
      material diminution of the Executive’s duties, responsibilities, powers or
      authorities;

              

      

       

      
        	
                (iii)  

              	
                a
      material breach by the Company of any material provision of this
      Agreement.

              

      

       

      (k)  “Term of
Employment” shall mean the period specified in Section 2 below, as such
period may be extended.

       

      
        	
                2.  

              	
                Term of
      Employment.

              

      

       

      The
Company hereby continues to employ the Executive, and the Executive hereby
accepts such continued employment, for the period commencing on the Effective
Date and ending on the third anniversary of the Effective Date, subject to
earlier termina­tion of the Term of Employment in accordance with the terms
of this Agreement.  The expiration of the Term of Employment will not
constitute either a termination without Cause or a resignation for Good Reason
and no severance will be payable upon or after such expiration, except as
provided in a generally applicable Company plan.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                3.  

              	
                Position, Duties and
      Responsibilities.

              

      

       

      As of the
Effective Date, the Executive shall be employed as Senior Vice President, Chief
Financial Officer of the Company effective July 1, 2008 or in such other
reasonably comparable position as the Chief
Executive Officer of the Company (the “Chief Executive
Officer”) or the Board may determine from time to time.  In
this capacity, the Executive shall be assigned such duties and responsibilities
inherent in such position and such other duties and responsibilities as the Chief Executive Officer
or the Board shall
from time to time reasonably assign to him or her.  The Executive
shall serve the Company faithfully, conscientiously, and to the best of the
Executive’s ability and shall promote the interests and reputation of the
Company.  The Executive shall devote all of the Executive’s time,
attention, knowledge, energy and skills during normal working hours, and at such
other times as the Executive’s duties may reasonably require, to the duties of
the Executive’s employment; provided, however, that the
Executive may (a) serve on civic or charitable boards or committees; or (b) with
the approval of the Chief Executive Officer or the Board, serve on corporate
boards or committees.  The Executive shall report to the Chief
Executive Officer in carrying out his or her duties and responsibilities under
this Agreement.  The Executive agrees to abide by the rules,
regulations, instructions, personnel practices and policies of the Company and
any changes therein that may be adopted from time to time.

       

      
        	
                4.  

              	
                Base
      Salary.

              

      

       

      As of
July 1, 2008, the Executive shall be paid an annualized Base Salary of two
hundred seventy five thousand dollars ($275,000) payable in accordance
with the regular payroll practices of the Company.  The Base Salary
shall be subject to increase but not decrease thereafter.  Any
increase to the Base Salary is to be determined by the Compensation Committee,
in consultation with the Chief Executive Officer. The Executive shall be
eligible to participate in the annual salary and performance review process
scheduled for October/November 2008, with any approved compensation adjustment
applied effective December, 2008 in accordance with standard payroll procedures
and the annual performance review schedule.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                5.  

              	
                Incentive Compensation
      Arrangements.

              

      

       

      During
the Term of Employment, the Executive shall be entitled to participate in any
Company incentive compensation plans, programs and/or arrangements applicable to
senior-level executives as established and modified from time to time by the
Compensation Committee in consultation with the Chief Executive Officer. In
addition, the Executive shall be entitled to receive a one-time incentive
payment of fifty percent (50%) of base compensation pro-rated for the current
fiscal year for the period April 1, 2008 through September 30, 2008, to be paid
within ninety (90) days of the end of the fiscal year, i.e., September 30, 2008.
In no event shall the annual incentive opportunity effective as of October 1,
2008 for the Executive be less than fifty percent (50%) or more than
seventy-five percent (75%) of the Executive’s Base Salary, assuming satisfaction
of applicable performance goals.

       

      
        	
                6.  

              	
                Equity Compensation
      Programs.

              

      

       

      During
the Term of Employment, the Executive shall be entitled to participate in any
equity-based plans, programs or arrangements applicable to senior-level
executives as established and modified from time to time by the Chief Executive
Officer or the Board in their sole discretion, to the extent that the Executive
is eligible under (and subject to the provisions of) the plan documents
governing those programs.

       

      In
addition, subject to approval by the Compensation Committee, the Executive
will be granted stock options for two hundred thousand (200,000) shares, subject
to the provisions of Tier’s Incentive Stock Option Plan.  Options will
be issued following the date of hire and are priced according to the market
price at close of business on the last business day prior to the date of the
grant.  Options vest over three years with 33.33 % of the total grant
vesting after completion of each 12-month period from the original date of
issuance, with all options vested in accordance with the above schedule no later
than June 30, 2011. The option grant agreement and related documentation will be
sent to the Executive within 30 days following the grant date.

      

       

      
        	
                7.  

              	
                Employee Benefit
      Programs.

              

      

       

      During
the Term of Employment, the Executive shall be entitled to participate in all
employee welfare and pension benefit plans, programs and/or arrangements
applicable to senior-level executives, to the extent that the Executive is
eligible under (and subject to the provisions of) the plan documents governing
those programs.

       

      
        	
                8.  

              	
                Reimbursement of
      Business Expenses.

              

      

       

      The
Company shall reimburse the Executive for all reasonable travel, entertainment
and other expenses incurred or paid by the Executive in connection with, or
related to, the performance of his or her duties, responsibilities or services
under this Agreement, upon presentation by the Executive of documentation,
expense statements, vouchers and/or such other supporting information as the
Company may request; provided, however, that the
amount available for such travel, entertainment and other expenses may be fixed
in advance by the Chief Executive Officer or the Board.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                9.  

              	
                Perquisites.

              

      

       

      
        	
                        During
      the Term of Employment, the Executive shall be entitled to participate in
      the Company’s executive fringe benefit programs (if any) applicable to the
      Company’s senior-level executives in accordance with the terms and
      conditions of such programs as in effect from time to time, to the extent
      that the Executive is eligible under (and subject to the provisions of)
      the plan documents governing those
programs.

              

      

       

      
        	
                10.  

              	
                Paid Time
      Off.

              

      

       

      The
Executive shall be entitled to twenty four (24) days of paid time off per
calendar year, prorated during the calendar year in which the Executive is
initially hired and the calendar year in which the Executive’s employment
terminates, to be taken at such times as may be approved by the Chief Executive
Officer.

       

      
        	
                11.  

              	
                Termination of
      Employment.

              

      

       

      (a) Termination of Employment by
the Company for Disability or Termination of Employment by
Death.  Upon a termination of the Executive’s employment by the
Company for Disability or a termination of the Executive’s employment by reason
of the Executive’s death, the Executive or his or her estate and/or
beneficiaries, as the case may be, shall be entitled to the following amounts,
payable on the business day coinciding with or next following the thirtieth
(30th) calendar day following such termination, subject to the provisions of
Section 23 below and excluding the payments under clause
(iv) below (which will be paid as premiums are due):

       

      
        	
                (i)  

              	
                Base
      Salary earned but not paid prior to the Date of Termination and any
      accrued prior year bonus not paid prior to such
  date;

              

      

       

      
        	
                (ii)  

              	
                any
      amounts earned, accrued or owing to the Executive but not yet paid under
      Sections 7, 8, 9 or 10 above prior to the Date of
    Termination;

              

      

       

        
(iii) one (1) times the Base Salary in effect on the Date of
Termination;

       

      
        	
                (iv)  

              	
                payment
      by the Company of the premiums for the Executive and any covered
      beneficiary of the Executive’s coverage under COBRA health continuation
      benefits over the twelve (12) month period immediately following the date
      of death or Disability, assuming such individual elects and remains
      eligible for such coverage; and

              

      

       

      
        	
                (v)  

              	
                such
      other or additional benefits, if any, as may be provided under applicable
      plans, programs and/or arrangements of the
  Company.

              

      

       

      The
Company must provide written notice to the Executive in accordance with Section
21 below upon a termination of the Executive’s employment for
Disability.

       

      (b) Termination of Employment by
the Company for Cause or by the Executive.  Upon a termination
of the Executive’s employment by the Company for Cause or a termination

      
        
          
          

        

        
          6

          
            

          

        

        
          
          
of the
Executive’s employment by the Executive (except as provided in Section 11(e)),
the Executive shall be entitled to the following:

      

       

      
        	
                (i)  

              	
                Base
      Salary earned but not paid prior to the Date of Termination and any
      accrued prior year bonus not paid prior to such
  date;

              

      

       

      
        	
                (ii)  

              	
                any
      amounts earned, accrued or owing to the Executive but not yet paid under
      Sections 7, 8, 9 or 10 above prior to the Date of Termination;
      and

              

      

       

      
        	
                (iii)  

              	
                such
      other or additional benefits, if any, as may be provided under applicable
      plans, programs and/or arrangements of the
  Company.

              

      

       

      The
Executive must provide written notice to the Company in accordance with Section
21 below at least fourteen (14) calendar days prior to the actual Date of
Termination upon a termination of the Executive’s employment by the
Executive.  A termination by the Company for Cause must be made as set
forth herein.

       

      (c) Termination of Employment by
the Company Without Cause or by the Executive With Good
Reason.  Upon a termination of the Executive’s employment by
the Company without Cause or by the Executive with Good Reason, other than under
the circumstances described in Section 11(d), the Executive shall be entitled to
the following amounts, payable on the business day coinciding with or next
following the thirtieth (30th) calendar day following such termination, subject
to the provisions of Section 23 below and excluding the payments under clause
(v) below (which will be paid as premiums are due):

       

      
        	
                (i)  

              	
                Base
      Salary earned but not paid prior to the Date of Termination and any
      accrued prior year bonus not paid prior to such
  date;

              

      

       

      
        	
                (ii)  

              	
                any
      amounts earned, accrued or owing to the Executive but not yet paid under
      Sections 7, 8, 9 or 10 above prior to the Date of
    Termination;

              

      

       

      
        	
                (iii)  

              	
                such
      other or additional benefits, if any, as may be provided under applicable
      plans, programs and/or arrangements of the
  Company;

              

      

       

      
        	
                (iv)  

              	
                one
      (1) times the Base Salary in effect on the Date of Termination;
      and

              

      

       

      
        	
                (v)  

              	
                payment
      by the Company of the premiums for the Executive’s and any covered
      beneficiary’s coverage under COBRA health continuation benefits over
      the twelve (12) month period
      immediately following the Date of Termination, assuming such individuals
      elect and remain eligible for such
coverage;

              

      

       

      provided that the Executive
must execute and not revoke a severance agreement and release of claims drafted
by and reasonably satisfactory to the Company (the “Severance
Agreement”) to be eligible for the payments in Sections 11(c)(iv) and (v)
herein, which will contain a full release of the Company (other than for
exceptions specified therein).  The Company must provide written
notice to the Executive in accordance with Section 21 below upon a termination
of the Executive’s employment without Cause.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (d) Termination of Employment by
the Company after a Change in Control.  Upon a termination of
the Executive’s employment by the Company without Cause within one (1) year
after a Change in Control, the Executive shall be entitled to the following
amounts, payable on the business day coinciding with or next following the
thirtieth (30th) calendar day following such termination, subject to the
provisions of Section 23 below, and excluding the payments under clause (vii)
below (which will be paid as premiums are due):

       

      
        	
                (i)  

              	
                Base
      Salary earned but not paid prior to the Date of Termination and any
      accrued prior year bonus not paid prior to such
  date;

              

      

       

      
        	
                (ii)  

              	
                any
      amounts earned, accrued or owing to the Executive but not yet paid under
      Sections 7, 8, 9 or 10 above prior to the Date of
    Termination;

              

      

       

      
        	
                (iii)  

              	
                such
      other or additional benefits, if any, as may be provided under applicable
      plans, programs and/or arrangements of the
  Company;

              

      

       

      
        	
                (iv)  

              	
                two
      (2) times the sum of (A) the Base Salary in effect on the Date of
      Termination and (B) a bonus equal to the average annual bonus paid to the
      Executive (or, for the most recent year, accrued for the Executive) for
      the previous three years (or such shorter period during which the
      Executive was employed) over a three-year look back
  period;

              

      

       

      
        	
                (v)  

              	
                for
      all options granted to the Executive immediate vesting of all unvested
      options as of the date of termination;
and

              

      

       

      
        	
                (vi)  

              	
                payment
      by the Company of the premiums for the Executive’s and any covered
      beneficiary’s health insurance over the eighteen (18) month period
      immediately following the Date of
Termination;

              

      

       

      provided that the Executive
must execute and not revoke the Severance Agreement (with the conditions
contained in the proviso to Section 11(c)) to be eligible for the payments in
Sections 11(d)(iv) through (vii) herein.  The Company must provide
written notice to the Executive in accordance with Section 21 below upon a
termination of the Executive’s employment without Cause.

       

      (e) Resignation for Good Reason
by the Executive due to a Change in Control.  The Executive may
terminate his or her employment for Good Reason in a manner consistent with the
definition of Good Reason within one (1) year after a Change in Control, in
which event the Executive shall be entitled to the payments in and subject to
the conditions of Section 11(d) and the provisions of Section 23.  The
Executive must provide written notice to the Company of a proposed resignation
for Good Reason in accordance with Section 21 below and must actually resign
under this provision no later than the six month anniversary of the date he or
she specifies as that of the adverse event or action.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                12.  

              	
                Proprietary and
      Confidential Information
Agreement.

              

      

       

      The
Executive shall execute, simultaneously with the execution of this Agreement or
otherwise upon the Company’s request, the NDA.

       

      
        	
                13.  

              	
                Assignability: Binding
      Nature.

              

      

       

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

       

      
        	
                14.  

              	
                Representation.

              

      

       

      The
Company represents and warrants that it is fully authorized and empowered to
enter into this Agreement.  The Executive states and represents that
he or she has had an opportunity to fully discuss and review the terms of this
Agreement with an attorney.  The Executive further states and
represents that he or she has carefully read this Agreement, understands the
contents herein, freely and voluntarily assents to all of the terms and
conditions hereof, and signs his or her name of his or her own free
act.

       

      In
addition, the Company agrees that, if a dispute arises that concerns this
Agreement, the Proprietary and Confidential Information Agreement, or the
Severance Agreement and the Executive is the prevailing party in the dispute, he
or she shall be entitled to recover all of his or her reasonable attorney’s fees
and expenses incurred in connection with the dispute. For this purpose, the
Executive will be the “prevailing
party” if he or she is successful on any significant substantive issue in
the action and achieves either a judgment in his or her favor or some other
affirmative recovery.

       

      
        	
                15.  

              	
                Entire
      Agreement.

              

      

       

      This
Agreement contains the entire understanding and agreement between the parties
concerning the subject matter hereof and supersedes all prior agreements,
understandings, discussions, negotiations and undertakings, whether written or
oral, with respect thereto,
including, without limitation, the Executive Services Agreement entered
into as of March 31, 2008.

       

      
        	
                16.  

              	
                Amendment or
      Waiver.

              

      

       

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

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                17.  

              	
                Withholding.

              

      

       

      The
Company may withhold from any amounts payable under this Agreement such federal,
state and local taxes as may be required to be withheld pursuant to any
applicable law or regulation.

       

      
        	
                18.  

              	
                Severability.

              

      

       

      In the
event that any provision of this Agreement shall be determined by a court of
competent jurisdiction to be invalid or unenforceable for any reason, in whole
or in part, the remaining parts, terms or provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law.

       

      
        	
                19.  

              	
                Survivorship.

              

      

       

      The
respective rights and obligations of the parties hereunder shall survive any
termination of the Executive’s employment to the extent necessary to preserve
such rights and obligations.

       

      
        	
                20.  

              	
                Governing Law;
      Jurisdiction; Dispute
Resolution.

              

      

       

      This
Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia (without reference to the conflict of laws provisions
thereof).  In case of any controversy or claim arising out of or
related to this Agreement or relating to the Executive’s employment (including
but not limited to claims relating to employment discrimination), except as
expressly excluded herein, each party to this Agreement agrees to give the other
party notice of non-compliance with this Agreement and ten (10) days to
cure.  Should resolution of any controversy or claim not be reached
following provision of notice and a reasonable opportunity to cure, then the
dispute shall be settled by arbitration, under the American Arbitration
Association’s National Rules for the Resolution of Employment Disputes (the
“National
Rules”).  A single arbitrator shall be selected in accordance
with the National Rules, and the costs of such arbitration shall be shared
equally between the parties, except to the extent expressly set forth in Section
14 above.  Any claim or controversy not submitted to arbitration in
accordance with this Section 20 (other than as provided under the NDA) shall be
waived, and thereafter no arbitrator, arbitration panel, tribunal, or court
shall have the power to rule or make any award on any such claim or
controversy.  In determining a claim or controversy under this
Agreement and in making an award, the arbitrator must consider the terms and
provisions of this Agreement, as well as all applicable federal, state, or local
laws.  The award rendered in any arbitration proceeding held under
this Section 20 shall be final and binding and judgment upon the award may be
entered in any court having jurisdiction thereof.  Claims for workers’
compensation or unemployment compensation benefits are not covered by this
Section 20.  Without limiting the provisions of this Section 20, the
Company and the Executive agree that the decision as to whether a party is the
prevailing party in an arbitration, or a legal proceeding that is commenced in
connection therewith will be made in the sole discretion of the arbitrator or,
if applicable, the court and the arbitrator or court may award reasonable
attorneys’ fees, costs and expenses, except to the extent expressly to the
contrary in Section 14 above.  The Company and the Executive each
hereby irrevocably waive any right to a trial by jury in any 

      
        
          
          

        

        
          10

          
            

          

        

        
          
          
action,
suit or other legal proceeding arising under or relating to any provision of
this Agreement.

      

       

      
        	
                21.  

              	
                Notices.

              

      

       

      All
notices shall be in writing, shall be sent to the following addresses listed
below using a reputable overnight express delivery service and shall be deemed
to be received one (1) calendar day after mailing.

       

      If to the
Company:                            10780
Parkridge Blvd.

      4th Floor

      Reston,
Virginia 20191

            
Attention:  Vice President, Human Resources

       

            
with a copy to:  The Chief Executive Officer

       

      If to the
Executive:                          
At his or her current or last known residential address

      

       

      Any
notice of termination must include a Date of Termination in accordance with the
relevant provisions of this Agreement.

       

      
        	
                22.  

              	
                Headings.

              

      

       

      The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement.

       

      
        	
                23.  

              	
                Compliance with Code
      Section 409A.

              

      

       

      To the
extent any payment, compensation or other benefit provided to the Executive in
connection with his or her employment termination is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A of the
Code and the Executive is a specified employee as defined in Section
409A(a)(2)(B)(i) as determined by Tier in accordance with its procedures, by
which determination the Executive agrees that he or she is bound, such payment,
compensation or other benefit shall not be paid before the day that is six (6)
months plus one (1) day after the Executive’s separation from service as
determined under Section 409A (the “New Payment
Date’’).  The aggregate of any payments that otherwise would
have been paid to the Executive during the period between the separation from
service and the New Payment Date shall be paid to the Executive in a lump sum on
such New Payment Date.  Thereafter, any payments that remain
outstanding as of the day immediately following the New Payment Date shall be
paid without delay over the time period originally scheduled, in accordance with
the terms of this Agreement.   In any event, the Company makes no
representations or warranty and shall have no liability to the Executive or any
other person, other than with respect to payments made by Tier in violation of
the provisions of this Agreement, if any provisions of or payments under this
Agreement are determined to constitute deferred compensation subject to Code
Section 409A but not to satisfy the conditions of that section.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                24.  

              	
                Counterparts.

              

      

       

      This
Agreement may be executed in two or more counterparts, and such counterparts
shall constitute one and the same instrument.  Signatures delivered by
facsimile shall be deemed effective for all purposes to the extent permitted
under applicable law.

       

      

       

      

       

      Signatures
on Page Following

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

       

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

       

      
        	 
      	
                TIER
      TECHNOLOGIES, INC.

                 

                 

                 

                By:
      /s/ Ronald L.
      Rossetti

                Name: Ronald L.
      Rossetti

                Title: Chief Executive
      Officer

                 

              
	 
      	
                 

                THE
      EXECUTIVE

                 

                /s/ Ronald W.
      Johnston

                Ronald
      W. Johnston

              

      

      

      
        

           

          
            
              
              

            

            
              13

              
                

              

            

            
              
              

            

          

        

      

    

    
      EXHIBIT
A

       

      

      PROPRIETARY AND CONFIDENTIAL
INFORMATION, DEVELOPMENTS, NONCOMPETITION AND NONSOLICITATION
AGREEMENT

      
    This Proprietary and
Confidential Information, Developments, Noncompetition and Nonsolicitation
Agreement (the “Agreement”)
is made by and between Tier Technologies, Inc. (the “Company”),
and Ronald W. Johnston (the “Employee”).
    IN
CONSIDERATION of the Employee’s employment and/or continued employment with the
Company and for other valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Employee agrees as follows:

      1.    Condition of
Employment.

      The
Employee acknowledges that the Employee’s employment and/or the continuance of
that employment with the Company is contingent upon the Employee’s agreement to
sign and adhere to the provisions of this Agreement.  Employee is
receiving enhanced severance protection and additional benefits in connection
with executing an employment agreement and this Agreement. The Employee further
acknowledges that the nature of the Company’s business is such that protection
of its proprietary and confidential information is critical to its business’s
survival and success.  For purposes of Sections 2, 3 and 4, the “Company”
shall include Tier Technologies, Inc. and any of its subsidiaries, corporate
affiliates, and/or associated companies.

      2.    Proprietary and Confidential
Information.

           
(a)    The
Employee agrees that all information and know-how, whether or not in writing, of
a private, secret, or confidential nature concerning the Company’s business or
financial affairs (collectively, “Proprietary
Information”) is and shall be the exclusive
property

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    of
the Company.  By way of illustration, but not limitation, Proprietary
Information may include systems, software and codes, whether existing, in the
course of development, or being planned or proposed; customer and prospect
lists; contacts at or knowledge of customers or prospective customers, customer
accounts and other customer financial information; price lists and all other
pricing, marketing and sales information relating to the Company or any customer
or supplier of the Company; databases, modules, products, product improvements,
product enhancements, processes, methods, and techniques; patent and patent
applications; negotiation strategies and positions; operations, projects,
developments, and plans; research data and techniques; financial data; and
personnel data.  The Employee will not disclose any Proprietary
Information to others outside the Company or use the same for any unauthorized
purposes without written approval by an officer of the Company, either during or
at any time after the Employee’s employment with the Company, unless and until
such Proprietary Information has become public knowledge without fault by the
Employee.  While employed by the Company, the Employee will use the
Employee’s best efforts to prevent publication or disclosure of any confidential
or Proprietary Information concerning the business, products, processes, or
affairs of the Company.

        (b)    The Employee
agrees that all disks, files, documents, letters, memoranda, reports, records,
data, drawings, notebooks, program listings, or any other written, photographic
or other record containing Proprietary Information, whether created by the
Employee or others, that come into the Employee’s custody or possession, shall
be and are the exclusive property of the Company to be used only in the
performance of the Employee’s duties for the Company.  Upon
termination or cessation of the Employee’s employment with the Company for any
reason or at the Company’s request, the Employee agrees to return to the Company
any and all materials and

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    copies
thereof in the Employee’s custody, possession or control containing Proprietary
Information.

    (c)    The
Employee acknowledges that the Employee’s obligations with regard to Proprietary
Information set out in subsections 2(a) and 2(b) above extend to all
information, know-how, records and tangible property of customers of the Company
or suppliers to the Company or of any third party who may have disclosed or
entrusted the same to the Company or to the Employee in the course of the
Company’s business.

    3.    Developments.

    (a)    The
Employee will make full and prompt disclosure to the Company of all inventions,
creations, improvements, discoveries, methods, developments, software and works
of authorship, whether patentable or not, that are created, made, conceived or
reduced to practice by the Employee or under the Employee’s direction or jointly
with others during the Employee’s employment by the Company, whether or not
during normal working hours or on the premises of the Company (all of which are
collectively referred to in this Agreement as “Developments”).

        (b)    The Employee
agrees to assign and does hereby assign to the Company (or any person or entity
designated by the Company) all of the Employee’s right, title and interest in
and to all Developments and all related patents, patent applications, copyrights
and copyright applications.   However, this subsection 3(b) shall
not apply to Developments that do not relate to the present or planned business
or research and development of the Company and that are made and conceived by
the Employee not during normal working hours, not on the Company’s premises and
not using the Company’s tools, devices, equipment or Proprietary
Information.  The Employee understands that, to the extent this
Agreement shall be construed in accordance with the laws of any state that
precludes a requirement in an employee agreement to assign

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    certain
classes of inventions made by an employee, this subsection 3(b) shall be
interpreted not to apply to any invention that a court rules and/or the Company
agrees falls within such classes.  The Employee hereby also waives all
claims to moral rights in any Developments.

    (c)    The
Employee agrees to cooperate fully with the Company, both during and after the
Employee’s employment with the Company, with respect to the procurement,
maintenance and enforcement of copyrights, patents and other intellectual
property rights (both in the United States and foreign countries) relating to
Developments.  The Employee shall sign all papers, including, but not
limited to, copyright applications, patent applications, declarations, oaths,
formal assignments, assignments of priority rights and powers of attorney, that
the Company may deem necessary or desirable to protect its rights and interests
in any Development.  The Employee further agrees that if the Company
is unable, after reasonable effort, to secure the Employee’s signature on any
such papers, any executive officer of the Company shall be entitled to execute
any such papers as the Employee’s agent and attorney-in-fact, and the Employee
hereby irrevocably designates and appoints each executive officer of the Company
as the Employee’s agent and attorney-in-fact to execute any such papers on the
Employee’s behalf, and to take any and all actions as the Company may deem
necessary or desirable to protect its rights and interests in any Development
under the conditions described in this sentence.

    4.    Noncompetition and
Nonsolicitation.

    (a)    While
the Employee is employed by the Company and for a period of twelve (12) months
following the termination or cessation of such employment for any reason (the
“Restricted Period”), the Employee will not directly or indirectly:

    
      	
              (1)  
      

            	
              In
      the geographical area where the Company does business or has done business
      at the time of the termination or cessation of the
    Employee’s

            

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      	
                

            	
              employment,
      engage in any business or enterprise (whether as an owner, partner,
      officer, employee, director, investor, lender, consultant, independent
      contractor or otherwise, except as the holder of not more than one percent
      (1%) of the combined voting power of the outstanding stock of a
      publicly-held company) that is competitive with the Company’s business,
      including, but not limited to, any business or enterprise that develops,
      designs, produces, markets, licenses, sells or renders any technology,
      product or service competitive with any technology, product or service,
      developed, designed, produced, marketed, licensed, sold or rendered, or
      planned to be developed, designed, produced, marketed, licensed, sold or
      rendered, by the Company while the Employee was employed by the
      Company;

            

    

     

    
      	
              (2)  

            	
              Either
      alone or in association with others (including any organization directly
      or indirectly controlled by the Employee), (i) solicit, recruit, or
      induce, or attempt to solicit, recruit, or induce, any employee of the
      Company to leave the employ of the Company, or (ii) recruit, solicit or
      hire as an employee or engage as an independent contractor, or attempt to
      recruit, solicit or hire as an employee or engage as an independent
      contractor, any person who was employed by the Company at any time during
      the period of the Employee’s employment with the Company, except for an
      individual whose employment with the Company ceased at least six (6)
      months earlier; or

            

    

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      	
              (3)  

            	
              Either
      alone or in association with others (including any organization directly
      or indirectly controlled by the Employee), solicit, divert, interfere
      with, disrupt or take away, or attempt to solicit, divert, interfere with,
      disrupt or take away, the business or patronage of any of the clients,
      customers or accounts, or prospective clients, customers or accounts, of
      the Company that the Employee contacted, solicited or served while the
      Company employed the Employee.  The terms “client” and
      “customer” include any person, firm, corporation, governmental department
      or agency, or other entity or any parent, subsidiary, or affiliate thereof
      but excludes clients and customers who have had no business relationship
      with the Company within the twelve (12) months preceding the Employee’s
      proposed activity with respect to such client or customer.  To
      the extent that any customers or clients, as defined herein, are
      governmental entities, the prohibition stated herein shall apply only to
      the specific branch, division, office, group, or other subentity of the
      government with which the Company had the
  contract.

            

    

     

    (b)    If
any court of competent jurisdiction finds any restriction set forth in this
Section 4 to be unenforceable because the restriction extends for too long
a period of time or over too great a range of activities or in too broad a
geographic area, it shall be interpreted to extend only over the maximum period
of time, range of activities or geographic area as to which it may be
enforceable.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    (c)    The
Employee agrees to provide a copy of this Agreement to all persons and entities
with whom the Employee seeks to be hired or do business before accepting
employment or engagement with any of them.

    (d)    If
the Employee violates the provisions of this Section 4, the Employee shall
continue to be held by the restrictions set forth in this Section 4 until a
period equal to the period of restriction has expired without any
violation.

    5.    Other
Agreements.

    The
Employee hereby represents that, except as the Employee has disclosed in writing
to the Company, the Employee is not bound by the terms of any agreement with any
previous employer or other party to refrain from using or disclosing any trade
secret or confidential or proprietary information in the course of the
Employee’s employment with the Company, to refrain from competing, directly or
indirectly, with the business of such previous employer or other party, or to
refrain from soliciting employees, customers or suppliers of such previous
employer or other party.  The Employee further represents that the
Employee’s performance of all of the terms of this Agreement and the performance
of the Employee’s duties as an employee of the Company do not and will not
breach any agreement to keep in confidence proprietary information, knowledge or
data acquired by the Employee in confidence or in trust prior to the Employee’s
employment with the Company.  The Employee also represents that the
Employee will not disclose to the Company or induce the Company to use any
confidential or proprietary information or material belonging to any previous
employer or others.

    6.   United States Government
Obligations.

         The Employee acknowledges that the
Company from time to time may have agreements with other persons or with the
United States Government, or agencies thereof, that impose

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    obligations
or restrictions on the Company regarding inventions made during the course of
work under such agreements or regarding the confidential nature of such
work.  The Employee agrees to be bound by all such obligations and
restrictions that are made known to the Employee and to take all action
necessary to discharge the obligations of the Company under such
agreements.

    7.    Not An Employment
Contract.

    The
Employee acknowledges that this Agreement does not constitute a contract of
employment and does not imply that the Company will continue the Employee’s
employment for any period of time.

    8.    General
Provisions.

    (a)    No
Conflict.  The Employee represents that the execution and
performance by him/her of this Agreement does not and will not conflict with or
breach the terms of any other agreement by which the Employee is
bound.

    (b)    Acknowledgements and
Equitable Remedies.  The Employee acknowledges that the
restrictions contained in this Agreement are necessary for the protection of the
business and goodwill of the Company and considers the restrictions to be
reasonable for such purpose.  The Employee agrees that any breach or
threatened breach of this Agreement will cause the Company substantial and
irrevocable damage that is difficult to measure.  Therefore, in the
event of any such breach or threatened breach, the Employee agrees that the
Company, in addition to such other remedies that may be available, shall have
the right to seek specific performance and injunctive relief without posting a
bond.  The Employee hereby waives the adequacy of a remedy at law as a
defense to such relief.

    (c)    Entire
Agreement.  This Agreement supersedes all prior agreements,
written or oral, between the Company and the Employee relating to the subject
matter of this Agreement,

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    including,
but not limited, to the Nondisclosure and Proprietary/Confidential
Information/Non-Solicitation Agreement between the Company and the Tatum LLC
dated March 31, 2008.  This Agreement may not be modified, changed or
discharged in whole or in part, except by an agreement in writing signed by an
executive officer of the Company and the Employee.  The Employee
agrees that any change or changes in the Employee’s employment duties or
compensation after the signing of this Agreement shall not affect the validity
or scope of this Agreement.

    (d)    Severability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect or impair the validity or enforceability of any other provision of this
Agreement.

    (e)    Waiver.  No
delay or omission by the Company in exercising any right under this Agreement
will operate as a waiver of that or any other right.  A waiver or
consent given by the Company on any one occasion is effective only in that
instance and will not be construed as a bar to or waiver of any right on any
other occasion.

    (f)    Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of both parties and their respective successors and assigns, including
any corporation or entity with which or into which the Company may be merged or
that may succeed to all or substantially all of its assets or business; provided, however, that the
obligations of the Employee are personal and shall not be assigned by the
Employee.

    (g)    Governing Law, Forum and
Jurisdiction.  This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia without
regard to conflicts of law provisions.  The dispute resolution
provisions of Section 20 of the Employee’s employment agreement with the
Company dated as of July 1, 2008 (the “Employment

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    Agreement”)
apply to this Agreement, except to the extent that either party seeks injunctive
relief to enforce any provision of this Agreement, in which case that party may
bring an action, suit, or other legal proceeding in a court of competent
jurisdiction. Any such action, suit or other legal proceeding that is commenced
to resolve any matter arising under or relating to such injunctive relief shall
be commenced only in a court of the Commonwealth of Virginia (or, if
appropriate, a federal court located within the Commonwealth of Virginia), and
the Company and the Employee each consents to the jurisdiction of such a
court.  Section 14 (“Representation”) of the Employment Agreement
applies in accordance with its terms to disputes under this
Agreement.  The
Company and the Employee each hereby irrevocably waive any right to a trial by
jury in any action, suit or other legal proceeding arising under or relating to
any provision of this Agreement.

    (h)    Captions.  The
captions of the sections of this Agreement are for convenience of reference only
and in no way define, limit or affect the scope or substance of any section of
this Agreement.

    THE
EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND
UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

     

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rest of this page left intentionally blank.]

     

    [Signature
Page Follows]

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    
      	 
      	
              TIER
      TECHNOLOGIES, INC.

            
	
              Date: July
      1, 2008

            	
              By: /s/Ronald L.
      Rossetti

            
	 
      	
              Ronald
      L. Rossetti

              Chief Executive Officer

            
	 
      	
              By: Ronald W.
      Johnston

            
	
              Date: July
      1, 2008

            	
                  /s/Ronald W.
      Johnston

            

    

    
      
         

      

      
        -11-

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