Document:

LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT

    Exhibit
      10.54

     

    LIMITED
      WAIVER TO LOAN
      AND SECURITY AGREEMENT

     

    This
      LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT (this “Waiver”)
      dated
      as of June 28, 2007 is by and among Hines Nurseries, Inc., a California
      corporation, the parties hereto as lenders (each individually, a “Lender” and
      collectively, “Lenders” as hereinafter further defined) and Bank of America,
      N.A., in its capacity as agent for Lenders (in such capacity, “Agent”).
      Capitalized terms used and not otherwise defined herein shall have the meanings
      assigned to them in the Loan Agreement (defined below).

     

    R
      E C I T
      A L S: 

    

    WHEREAS,
      Borrower, the Agent and the Lenders have entered into that certain Loan and
      Security Agreement dated as of January 18, 2007 (as amended, the
“Loan
      Agreement”);
      and

     

    WHEREAS,
      Borrower, Agent and Lenders have agreed to extend the date for providing
      unaudited financial statements and waive certain Events of Default upon the
      terms and conditions contained herein;

     

    NOW,
      THEREFORE, in consideration of the premises contained herein, and for other
      good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    Section
      1     Limited
      Waiver to the Loan Agreement.
      Borrower acknowledges that certain Events of Default exist (or may arise) under
      Section 11.1 of the Loan Agreement as a result of (a) Borrower’s failure to
      deliver annual audited financial statements for the year ending December 31,
      2006 by June 28, 2007 as required by that certain Limited Waiver to Loan and
      Security Agreement dated as of May 29, 2007 among the parties hereto and (b)
      Borrower’s failure to provide notice of default under the Indenture for failure
      to provide the audited financial statements for the year ending December 31,
      2006 and unaudited financial statements for the fiscal quarter ending March
      31,
      2007 (and related public filings) as required by Section 10.1.3(c) of the Loan
      Agreement (collectively, the “Events of Default”). Immediately upon the
      satisfaction of each of the conditions precedent set forth in Section 2
      below,
      the Agent and Required Lenders hereby waive the Events of Default; provided,
      that
      Borrower shall (x) deliver such audited financial statements for the fiscal
      year
      ending December 31, 2006 required by Section 10.1.2 of the Loan Agreement
      (together with any other financial information and documents required to be
      delivered in connection with such financial statements) by no later than July
      13, 2007, (y) deliver the audited financial statements for the year ending
      December 31, 2006 required by the Indenture by no later than July 13, 2007
      and
      (z) deliver the unaudited financial statements for the fiscal quarter ending
      March 31, 2007 required by the Indenture and cure any related defaults
      thereunder by no later than July 31, 2007, in each case the failure of which
      shall cause such waivers to be terminated and result in such Events of Default
      continuing to exist under the Loan Agreement. The foregoing is a limited waiver
      and shall not constitute a waiver of any other Default or Event of Default
      that
      may exist or arise or constitute a waiver or modification to any other term
      or
      condition set forth in the Loan Agreement. 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Section
      2     Conditions
      to Effectiveness.
      The
      effectiveness of the waiver set forth in Section 1
      above is
      subject to the satisfaction of each of the following conditions:

     

    (a) Agent
      shall have received a duly executed counterpart of this Waiver from Borrower
      and
      the Required Lenders; and

     

    (b) Agent
      shall have received a reaffirmation from Parent of its Guaranty. 

     

    Section
      3     Representations,
      Warranties and Covenants.
      Borrower represents, warrants and covenants to Agent and Lenders, upon the
      effectiveness of this Waiver that:

     

    (a) No
      Default; etc.
      No
      Default or Event of Default has occurred and is continuing after giving effect
      to this Waiver or would result from the execution or delivery of this Waiver
      or
      the consummation of the transactions contemplated hereby.

     

    (b) Corporate
      Power and Authority; Authorization.
      Borrower has the power and authority to execute and deliver this
      Waiver.

     

    (c) Execution
      and Delivery.
      Borrower has duly executed and delivered this Waiver.

     

    (d) Enforceability.
      This
      Waiver constitutes the legal, valid and binding obligations of Borrower,
      enforceable against Borrower in accordance with its terms, except as enforcement
      may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
      laws affecting the enforcement of creditors’ right generally, and by general
      principles of equity.

     

    (e) Indenture
      Notice.
      Borrower has not received any default notices under its Indenture in respect
      of
      its 10.25% Senior Notes due 2011 dated as of September 30, 2003, between Hines
      Nurseries, Inc., Hines Horticulture, Inc., the Subsidiary Guarantors named
      therein and the Bank of New York, as Trustee.

     

    Section
      4     Miscellaneous.

     

    (a) Effect;
      Ratification.
      Borrower acknowledges that all of the reasonable legal expenses incurred by
      Agent in connection herewith shall be reimbursable under Section 3.4
      of the
      Loan Agreement. The waiver set forth herein is effective solely for the purposes
      set forth herein and shall be limited precisely as written, and shall not be
      deemed to (i) be a consent to any amendment, waiver or modification of any
      other term or condition of any Loan Document or (ii) prejudice any right or
      rights that any Lender may now have or may have in the future under or in
      connection with any Loan Document. This Waiver shall be construed in connection
      with and as part of the Loan Documents and all terms, conditions,
      representations, warranties, covenants and agreements set forth in the Loan
      Documents, except as herein amended are hereby ratified and confirmed and shall
      remain in full force and effect.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b) Counterparts;
      etc.
      This
      Waiver may be executed in any number of counterparts, each such counterpart
      constituting an original but all together one and the same instrument. Delivery
      of an executed counterpart of this Waiver by fax shall have the same force
      and
      effect as the delivery of an original executed counterpart of this Waiver.
      Any
      party delivering an executed counterpart of this Waiver by fax shall also
      deliver an original executed counterpart, but the failure to do so shall not
      affect the validity, enforceability or binding effect of this
      Waiver.

     

    (c) Governing
      Law.
      This
      Waiver shall be deemed a Loan Document and shall be governed by, and construed
      and interpreted in accordance with the internal laws of the State of New York
      but excluding any principles of conflicts of law.

     

    (d) Reaffirmation.
      Parent
      hereby reaffirms all of its obligations as a guarantor of the Obligations
      pursuant to its Guaranty dated as of January 18, 2007.

     

     

    [Signature
      Pages Follow]

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Agent, Lenders and Borrower have caused this Limited Waiver
      to
      Loan and Security Agreement to be duly executed as of the day and year first
      above written.

     

    BORROWER:

     

    HINES
      NURSERIES, INC.

     

    By:/s/
      Claudia
      Pieropan                                      
                

    Title: CFO                                                            
                         

    Name: Claudia
      Pieropan                                   
             
    

    

    

    PARENT:

     

    HINES
      HORTICULTURE, INC.

     

    By:/s/
      Claudia
      Pieropan                                                 
  

    Title: CFO                                                                       
         

    Name: Claudia
      Pieropan                                              
     

    

    

    AGENT
      AND LENDERS:

    

    BANK
      OF
      AMERICA, N.A., as Agent and a Lender

    

    

    By:/s/
      Jason
      Riley                                                               

    Title: Vice
      President                                                           

    Name: Jason
      Riley                                                            
 

    

    

    PNC
      BANK,
      NATIONAL ASSOCIATION, as a Lender

    

    

    By:/s/
      Pete
      Martinez                                                           

    Title: Sr.
      Vice
      President                                                      

    Name: Pete
      Martinez                                                           

    

    

    GMAC
      COMMERCIAL FINANCE LLC, as a Lender

    

    

    By:/s/
      Robert
      Richardson                                                  

    Title: Director                                                                      
      

    Name: Robert
      Richardson                                                 

    
 

     

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Exhibit 10.4    
    

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into
                        , 2007 by and between HireRight, Inc., a California corporation (the "Company") and Eric J. Boden, an individual (the  "Executive"). 

        WHEREAS, the parties hereto desire to enter into a written agreement to document the terms of Executive's employment with the Company,
which agreement will replace in its entirety that certain Employment Agreement dated January 26, 2000 between Executive and the Company, as amended (the "Prior
Employment Agreement"). 

        1.    Duties and Responsibilities.    

        A.    Executive
shall serve as the Company's Chief Executive Officer and President, reporting directly to the Company's Board of Directors (the
"Board"). Executive shall have the duties and powers at the Company that are customary for an individual holding such positions. 

        B.    Executive
agrees to use his best efforts to advance the business and welfare of the Company, to render his services under this Agreement faithfully, diligently and to the
best of his ability. 

        C.    Executive
shall be based at the Company's office located at Irvine, California, or at such other offices of the Company located within 35 miles of Executive's residence
as of the date hereof. 

        2.    Effective Date; Prior Employment Agreement Superseded; Period of Employment.    

        A.    Effective Date.    This Agreement shall be effective upon the date that the Company's
registration statement on Form S-1 in connection with its initial public offering of common stock (the "Registration Statement") is
declared effective by the United States Securities and Exchange Commission (the "SEC", and such date, the "Effective
Date"), provided that the SEC declares such Registration Statement to be effective prior to December 31, 2007. In the event that the Registration Statement is not
declared effective by the SEC by December 31, 2007, this Agreement and its terms shall expire, and the Agreement shall be null and void. 

        B.    Prior Employment Agreement Superceded.    As of the Effective Date, the Prior Employment
Agreement shall be cancelled and terminated, and neither the Company nor Executive shall have any further rights or obligations thereunder. Following the Effective Date, Executive's employment with
the Company shall be governed by the provisions of this Agreement for the period commencing as of the date hereof and continuing throughout the Employment Period (as defined below). 

        C.    Employment Period.    Provided this Agreement has not expired as set forth in
Section 2A above, the initial term of the Agreement shall be for a period of three years measured from the Effective Date (the "Initial Term").
Following the Initial Term, the Agreement shall automatically renew for successive one year periods until the date that is ten years after the Effective Date (each, a "Renewal
Term"). This Agreement shall remain in full force and effect for the lesser of (i) the Initial Term, together with all Renewal Terms or (ii) until Executive's
termination of employment with the Company for any reason (the "Employment Period"). 

        3.    Cash Compensation.    

        A.    Annual Salary.    Executive's initial base salary shall be $300,000 per year (the
"Annual Salary"), which shall be payable in accordance with the Company's standard payroll schedule (but in no event less frequent than on a monthly
basis), and may be increased from time to time at the discretion of the Compensation Committee of the Company's Board of Directors (the "Compensation
Committee"). Upon the effective date of the Company's initial public offering of its 

 

common
stock, Exeutive's Annual Salary will be increased to $335,000. The Compensation Committee shall review Executive's Annual Salary at least annually and shall make a determination regarding any
increase to the Annual Salary. Any increased Annual Salary shall thereupon be the "Annual Salary" for the purposes hereof. Executive's Annual Salary
shall not be decreased without his prior written consent at any time during the Employment Period. 

        B.    Bonus.    Executive shall be entitled to receive bonuses, cash or otherwise, in the
discretion of the Compensation Committee, from time to time. Such bonuses will be targeted at 50% of Executive's Annual Salary each year, and will be based upon goals established by the Board or the
Compensation Committee, which the Board or the Compensation Committee believe are reasonably attainable. Bonuses shall be paid in accordance with the terms of the Company's Executive
Short-Term Incentive Plan, as may be amended from time to time, or as otherwise provided by the Board or the Compensation Committee. 

        C.    Applicable Withholdings.    The Company shall deduct and withhold from the compensation
payable to Executive hereunder any and all applicable federal, state and local income and employment withholding taxes and any other amounts required to be deducted or withheld by the Company under
applicable statutes, regulations, ordinances or orders governing or requiring the withholding or deduction of amounts otherwise payable as compensation or wages to employees. 

        4.    Equity Compensation.    Executive shall be entitled to
participate in any equity incentive plans of the Company. All such options or other equity awards will be made at the discretion of the Company's Compensation Committee pursuant and subject to the
terms and conditions of the applicable equity incentive plan, including any provisions for repurchase thereof. The option exercise price or value of any equity award granted to Executive will be
established by the Company's Board as of the date such interests are granted but shall not be less than the fair market value of the class of equity underlying such award. To the extent the Company
grants any options or shares of restricted stock to Executive during the Employment Period, then the Company shall in such grant documentation provide that in the event a Change in Control (as defined
below) is consummated during the Employment Period, and within six months prior to and in connection with such Change in Control or within eighteen months immediately following such Change in Control,
Executive either (i) is terminated without Cause (as defined below) or (ii) resigns for Good Reason (as defined below), then all of Executive's unvested options or unvested shares shall
vest in full. For purposes of this Agreement, "Change In Control" shall mean the consummation of any of the following transactions effecting a change in
ownership or control of the Company: 

          (i)  a
merger, consolidation or reorganization, unless securities representing more than fifty percent (50%) of the total
combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly, and in substantially the same proportion, by the
persons who beneficially owned the Company's outstanding voting securities immediately prior to such transaction; or 

         (ii)  any
transfer, sale or other disposition of all or substantially all of the Company's assets; 

        (iii)  the
acquisition, directly or indirectly, by any person or related group of persons (other than the Company or a person that directly or indirectly, controls, is
controlled by, or is under common control with, the Company), of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended, of
securities possessing more than fifty percent (50%) of
the total combined voting power of the Company's outstanding securities pursuant to a tender or exchange offer made directly to the Company's stockholders 

        (iv)  a
change in the composition of the Board during any thirty-six (36) month period or less, such that individuals who, as of the beginning of such
period constitute the Board (the "Incumbent Directors"), cease for any reason to constitute at least a majority of the Board, provided that any 

2

 

person
becoming a director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the
Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors
or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director. 

In
no event, however, shall a Change in Control be deemed to occur in connection with (i) a merger of the Company, the sole purpose of which is to reincorporate the Company in Delaware, or
(ii) any public offering of Common Stock, the primary purpose of which is to raise capital. 

        5.    Expense Reimbursement.    In addition to the compensation specified in Section 3,
Executive shall be entitled to receive reimbursement from the Company for all reasonable business expenses incurred by Executive in the performance of Executive's duties hereunder, provided that
Executive furnishes the Company with vouchers, receipts and other details of such expenses in the form reasonably required by the Company to substantiate a deduction for such business expenses under
all applicable rules and regulations of federal and state taxing authorities. 

        6.    Fringe Benefits.    

        A.    Group Plans.    Executive shall, throughout the Employment Period, be eligible to
participate in all of the group term life insurance plans, group health plans, accidental death and dismemberment plans, short-term disability programs, retirement plans, profit sharing
plans or other plans (for which Executive qualifies) that are available to the executive officers of the Company as provided under the terms of such plans. 

        B.    Paid Time Off.    Executive shall be entitled to at least five weeks of paid time off
per year ("Paid Time Off"). Paid Time Off shall accrue pursuant to the Company's benefit policies. 

        7.    Termination of Employment.    During the Employment Period, the Executive's employment
with the Company may be terminated by either the Company or Executive at any time, and for any reason. Upon such termination, Executive (or, in the case of Executive's death, Executive's estate and
beneficiaries) shall have no further rights to any other compensation or benefits from the Company on or after the termination of employment except as follows: 

        A.    Termination For Cause.    In the event the Company terminates Executive's employment
with the Company prior to expiration of the Employment Period for Cause (as defined below) and not involving a Change in Control, the Company shall pay to Executive the following:
(i) Executive's unpaid Annual Salary and bonus that has been earned through the termination date of his employment; (ii) Executive's accrued but unused Paid Time Off; (iii) any
accrued expenses pursuant to Section 5 above and (iv) any other payments as may be required under applicable law. For purposes of this Agreement,
"Cause" shall mean that Executive has engaged in any one of the following: (i) material financial dishonesty involving the Company or its assets,
including, without limitation, misappropriation of the Company's funds or property; (ii) reckless or willful misconduct in the performance of Executive's duties in the event such conduct
continues after the Company has provided 14 days written notice to Executive and a reasonable opportunity to cure; (iii) conviction of, or plea of nolo contendre to, any felony involving
dishonesty or fraud; or (iv) the material breach of any provision of this Agreement after 14 days written notice to Executive of such breach and a reasonable opportunity to cure such
breach. 

        B.    Termination Upon Death or Disability.    If Executive dies during the Employment Period,
the Executive's employment with the Company shall be deemed terminated as of the date of death, and the obligations of the Company to or with respect to Executive shall terminate in their 

3

 

entirety
upon such date except as otherwise provided under this Section 7B. If Executive becomes subject to a Disability (as defined below), then the Company shall have the right, to the extent
permitted by law, to terminate the employment of Executive upon 30 days prior written notice in writing to Executive. Upon termination of employment due to death or Disability, Executive (or
Executive's estate or beneficiaries in the case of the death of Executive) shall be entitled to receive: (i) Executive's unpaid Annual Salary that has been earned through the termination date
of his employment; (ii) Executive's accrued but unused Paid Time Off; (iii) any accrued expenses pursuant to Section 5 above; (iv) continuation of Executive's Annual Salary
(which shall be payable in accordance with the Company's standard pay policies) until Executive is eligible for short-term disability payments under the Company's group disability
policies; provided however, that in no event shall such period of continued Annual Salary exceed 90 days following Executive's termination of employment; and (v) any other payments as
may be required under applicable law. Notwithstanding the foregoing, the aggregate amount of continuation payments under (iv) made during the first six months following Executive's termination
of employment shall not exceed the applicable dollar limit provided under Treasury Regulations section 1.409A-1(b)(9)(iii)(A). The amount, if any, that exceeds the applicable dollar
limit shall be paid on the first day of the seventh month following Executive's termination. For the purposes of this Agreement, "Disability" shall mean
a physical or mental impairment which, the Board determines, after consideration and implementation of reasonable accommodations, precludes the Executive from performing his essential job functions
for a period longer than three consecutive months or a total of one hundred twenty (120) days in any twelve month period. 

        C.    Termination for Other Reason; Resignation After Removal of Executive as the Chief Executive
Officer.    Subject to Section 7E below, (i) should Executive resign from the Company within six months following his removal as the Company's Chief
Executive Officer (except under circumstances where Section 7D below is applicable) for any reason other than for Cause, provided Executive has provided 30 days written notice to the
Company prior to his resignation indicating and describing the event resulting in such Good Reason, and the Company does not cure such event within 90 days following the receipt of such notice
from Executive or (ii) should the Company terminate Executive's employment for any reason other than for Cause, as a result of Executive's Death or Disability or in connection with a Change in
Control, then the Company shall pay to Executive as follows: (a) Executive's unpaid Annual Salary that has been earned through the termination date of his employment; (b) Executive's
accrued but unused Paid Time Off; (c) any accrued expenses pursuant to Section 5 above; (d) any other payments as may be required under applicable law; (e) a lump sum
amount equal to the cost of twelve months of health care continuation coverage and (f) continuation of Executive's Annual Salary, which shall be payable in accordance with the Company's
standard pay schedules, for a period of eighteen months. Notwithstanding the foregoing, the aggregate amount of payments under (e) and (f) made during the first six months following
Executive's termination of employment shall not exceed the applicable dollar limit provided under Treasury Regulations section 1.409A-1(b)(9)(iii)(A). The amount, if any, that
exceeds the applicable dollar limit shall be paid with the first installment of Annual Salary continuation that occurs on or after the first day of the seventh month following Executive's termination. 

        D.    Termination in Connection with Change in Control.    Subject to Section 7E below,
if the Company terminates Executive's employment either without Cause or if Executive resigns for Good Reason, in connection with a Change in Control or within eighteen months immediately following a
Change in Control, then the Company shall pay Executive as follows: (i) Executive's unpaid Annual Salary that has been earned through the termination date of his employment;
(ii) Executive's accrued but unused Paid Time Off; (iii) any accrued expenses pursuant to Section 5 above; (iv) a lump sum payment equal to 200% of Executive's target bonus
established by the Compensation Committee for the year in which Executive's employment was terminated, regardless 

4

 

of
whether the bonus goals have been met for such year, and which shall be paid upon Executive's termination date subject to compliance with section E2; (v) a pro rated share of Executive's
annual target bonus earned for such year (pro rated up to the termination date), which amount shall be paid at such time the Company regularly pays bonuses, provided that shall be paid no later than
21/2 months following the calendar year in which the termination occurs; (vi) any other payments as may be required under applicable law; (vii) a lump sum amount equal to
the cost of eighteen months of health care continuation coverage and (viii) a lump sum equal to twenty-four (24) months of Executive's Annual Salary, which such sum shall be
paid upon Executive's termination date subject to compliance with Section E2. For the purposes of this Agreement, "Good Reason" shall mean Executive's
voluntary resignation for any of the following (i) a material diminution in the scope of Executive's duties and responsibilities or the level of management to which he reports; (ii) a
material diminution in his level of Annual Salary or benefits without his prior written consent; (iii) a relocation of Executive more than thirty-five (35) miles outside of
Executive's residence as of the date hereof, (iv) a material breach of any provision of this Agreement by the Company, after written notice and a reasonable opportunity to cure, or
(v) the failure of the Company to have a successor entity specifically assume this Agreement. Notwithstanding the foregoing, "Good Reason" shall
only be found to exist if the Executive has provided 30 days written notice to the Company prior to his resignation indicating and describing the event resulting in such Good Reason, the
Company does not cure such event within 90 days following the receipt of such notice from Executive. This Section 7D is intended to qualify as an involuntary separation pay arrangement
that is exempt from application of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") because all severance payments are
treated as paid on account of an involuntary separation (including a separation for Good Reason) and paid in a lump sum within the "short-term deferral" period following the time the
Executive obtains a vested right to such payments. If any portion of the severance payments in this Section 7D represents an equivalent amount of severance that replaces (as opposed to
supplements) salary continuation or similar severance benefit available to Executive under Section 7C and that is subject to Section 409A of the Code, notwithstanding anything to the
contrary in this Agreement, such equivalent amount (and only that equivalent amount) shall be delayed until the first day of the seventh month following Executive's termination, but only to the extent
that such equivalent amount exceeds the applicable dollar limit provided under Treasury Regulations section 1.409A-1(b)(9)(iii)(A). The portion of the lump sum under this
Section 7D that supplements the benefits under (e) and (f) of Section 7C (i.e., the portion that represents additional Annual Salary, continuation coverage, bonus, etc.)
shall not be subject to or affected by such limitation. 

        E.    Conditions to Severance.    

        1.    Severance Upon Termination for Other Reason.    If Executive's employment terminates
pursuant to Section 7C, then in consideration for the severance payments to be made by the Company to Executive pursuant to Sections 7(ii)(e) and (f) of this Agreement (the
"Section 7C Severance Payments"), Executive agrees to execute and deliver to the Company within 21 days after Executive's employment
termination date, the separation and release agreement, in substantially the form attached hereto as Exhibit B (collectively, the
"Separation Agreement"). Notwithstanding anything to the contrary in the Agreement, the Company shall have no obligation to make any Section 7C
Severance Payments to Executive until the date that is ten days after the date that Executive executes and delivers the Separation Agreement. The failure of Executive to execute and deliver the
Separation Agreement within 21 days after his employment termination date shall result in a forfeiture of all Section 7C Severance Payments, and permanently release the Company from its
obligation to make any and all Section 7C Severance Payments to Executive. Executive acknowledges that so long as Executive is receiving Section 7C Severance Payments, Executive is bound
by Sections 8, 9 and 10 of this 

5

 

Agreement.
Executive's rights to receive any Section 7C Severance Payments is expressly subject to Executive's continuing compliance with each of Sections 8, 9 and 10 and all Section 7C
Severance Payments shall immediately be forfeited upon Executive's breach of any of Sections 8, 9 or 10 of this Agreement, and the Company shall have no obligation to make or continue to make any
Section 7C Severance Payments to Executive upon such breach of any of Sections 8, 9 or 10. 

        2.    Severance Upon a Change in Control.    If Executive's employment is terminated pursuant
to Section 7D, then in consideration for the severance payments to be made by the Company to Executive pursuant to Sections 7D(v) and (vi) of this Agreement (the
"Section 7D Severance Payments"), and, if applicable, in recognition of Executive's transfer of goodwill associated with the sale of all or part
of his interest in the Company in connection with the Change in Control; Executive agrees to execute and deliver to the Company within 21 days after Executive's employment termination date the
following: (i) a non-competition agreement, in substantially the form attached hereto as Exhibit A (the
"Non-Competition Agreement"), and the Separation Agreement, in substantially the forms attached hereto as  Exhibit B. Notwithstanding anything
to the contrary in the Agreement, the Company shall have no obligation to make any Section 7D
Severance Payments to Executive until the date that is ten days after the date that Executive executes and delivers the Non-Competition Agreement and the Separation Agreement. The failure
of Executive to execute and deliver each of the Non-Competition Agreement and the Separation Agreement within 21 days of his employment termination date shall result in a forfeiture
of all Section 7D Severance Payments, and permanently release the Company from its obligation to make any and all Section 7D Severance Payments to Executive. Executive acknowledges that
so long as Executive is receiving Section 7D Severance Payments, Executive is bound by Sections 9 and 10 of this Agreement. Executive's rights to receive any Section 7D Severance
Payments is expressly subject to Executive's continuing compliance with each of Sections 9 and 10 and all Section 7D Severance Payments shall immediately be forfeited upon Executive's breach of
either of Sections 9 or 10 of this Agreement, and the Company shall have no obligation to make or continue to make any Section 7D Severance Payments to Executive upon such breach of either of
Sections 9 or 10. 

        3.    Section 409A Delay.    If required by Section 409A of the Code,
notwithstanding anything to the contrary in this Agreement, the payments to be made to Executive (except for: (i) Executive's unpaid Annual Salary that has been earned through the termination
date of his employment; (ii) Executive's accrued but
unused Paid Time Off; and (iii) reimbursement for any accrued expenses) shall be paid no sooner than the first day of the month that is six months after the Executive's termination date. 

        F.    Gross Up for Severance Payments.    If any excise tax under Section 4999 of the
Code (the "Excise Tax") is payable by Executive by reason of the payment to Executive of any of the Section 7C Severance Payments or
Section 7D Severance Payments (collectively, the "Severance Payments"), determined in accordance with Section 280G(b)(2) of the Code, and
a 20% reduction of the total aggregate Severance Payments to be made to Executive would result in the elimination of such Excise Tax under the Code, then the Severance Payments shall be reduced by the
amount necessary, which shall not exceed 20% of the aggregate Severance Payments to be made, to eliminate all Excise Tax assessable pursuant to the Code. If the reduction of up to 20% of the aggregate
Severance Payments to be made to Executive will not result in the elimination of all Excise Tax assessable by the Code on the Severance Payments, then Company shall pay Executive, in addition to the
Severance Payments, an amount (the "Gross-Up Payment") equal to the sum of the Excise Tax and the amount necessary to pay all additional
taxes imposed on (or economically borne by) Executive (including the Excise Tax, state and federal income taxes and all applicable 

6

 

employment
taxes) attributable to the receipt of the Gross-Up Payment. For purposes of the proceeding sentence, all taxes attributed to the receipt of the Gross-Up Payment
shall be computed assuming the application of the maximum tax rate provided by law. Such Gross-Up Payment shall be paid to Executive as soon as practical after such amount has been
determined, but in any event, such payment must be made no later than the last day of Executive's taxable year following the year in which Executive remitted the taxes. 

        8.    Non-Competition During the Employment Period.    Executive acknowledges and
agrees that given the extent and nature of the confidential and proprietary information he will obtain during the course of his employment with the Company, it would be inevitable that such
confidential information would be disclosed or utilized by the Executive should he obtain employment from, or otherwise become associated with, an entity or person that is engaged in a business or
enterprise that directly competes with the Company. Consequently, during any period for which Executive is receiving payments from the Company, either as wages or as a severance benefit (including all
Severance Payments), Executive shall not, without prior written consent of the Company, directly or indirectly own, manage, operate, control or
participate in the ownership, management, operation or control of, or be employed by or provide advice to, any enterprise that is engaged in any business directly competitive to that of the Company in
the employment screening services market in the United States; provided, however, that such restriction shall not apply to any passive investment representing an interest of less than 1% of an
outstanding class of publicly-traded securities of any company or other enterprise where Executive does not provide any management, consulting or other services to such company or enterprise. 

        9.    Non-Solicitation.    During the longer of (i) any period for which
Executive is receiving Severance Payments from the Company or (ii) during any period in which Executive has agreed not to compete with the Company pursuant to the terms of the
Non-Competition Agreement, Executive agrees that during such period of time Executive shall not, directly or indirectly, solicit any
employee, independent contractor, consultant or other person or entity in the employment or service of the Company or any of its respective subsidiaries or affiliates (each of the preceding, a
"Group Company"), at the time of such solicitation, in any case to (i) terminate such employment or service, and/or (ii) accept
employment, or enter into any consulting or other service arrangement, with any person or entity other than a Group Company. 

        10.    Proprietary Information.    Executive has executed the Company's standard Confidential
Information and Assignment of Inventions Agreement (the "Confidentiality Agreement"), which is hereby incorporated by this reference as if set forth
fully herein. Executive's obligations pursuant to the Confidentiality Agreement will survive termination of Executive's employment with the Company. 

        11.    Successors and Assigns.    This Agreement is personal in its nature and the Executive
shall not assign or transfer his rights under this Agreement. The provisions of this Agreement shall inure to the benefit of, and shall be binding on, each successor of the Company whether by merger,
consolidation, transfer of all or substantially all assets, or otherwise, and the heirs and legal representatives of Executive. 

        12.    Notices.    Any notices, demands or other communications required or desired to be
given by any party shall be in writing and shall be validly given to another party if served either personally or via an overnight delivery service such as Federal Express, postage prepaid, return
receipt requested. If such notice, demand or other communication shall be served personally, service shall be conclusively deemed made at the time of such personal service. If such notice, demand or
other communication is given by overnight delivery, such notice shall be conclusively deemed given two business days after the deposit 

7

 

thereof
with such service, properly addressed to the party to whom such notice, demand or other communication is to be given as hereinafter set forth: 

	To the Company:	 	HireRight, Inc.

5151 California Avenue

Irvine, California 92617

Attn: Vice President of Human Resources
	

With a copy to:	
 	

Dorsey & Whitney LLP

38 Technology Drive

Irvine, California 92618

Attn: Ellen S. Bancroft, Esq.
	

To Executive:	
 	

At Executive's last residence as provided by Executive to the Company for payroll records.

Any
party may change such party's address for the purpose of receiving notices, demands and other communications by providing written notice to the other party in the manner described in this
Section 12. 

        13.    Governing Documents.    This Agreement, along with the documents expressly referenced
in this Agreement, constitute the entire agreement and understanding of the Company and Executive with respect to the terms and conditions of Executive's employment with the Company and the payment of
severance benefits, and supersedes all prior and contemporaneous written or verbal agreements and understandings (including any offer letter of employment and the Prior Employment Agreement) between
Executive and the Company relating to such subject matter. This Agreement may only be amended by written instrument signed by Executive and an authorized officer of the Company. Any and all prior
agreements, understandings or representations relating to the Executive's employment with the Company are terminated and cancelled in their entirety and are of no further force or effect. 

        14.    Governing Law.    The provisions of this Agreement will be construed and interpreted
under the laws of the State of California. If any provision of this Agreement as applied to any party or to any circumstance should be adjudged by a court of competent jurisdiction to be void or
unenforceable for any reason, the invalidity of that provision shall in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from
those adjudicated by the court, the application of any other provision of this Agreement, or the enforceability or invalidity of this Agreement as a whole. Should any provision of this Agreement
become or be deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the extent
necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision will
be stricken and the remainder of this Agreement shall continue in full force and effect. 

        15.    Remedies.    The parties to this Agreement agree that: (i) Executive's services
are unique, because of the particular skill, knowledge, experience and reputation of Executive; (ii) if Executive breaches this Agreement, the damage to the Company will be substantial, and
difficult to ascertain, and, further, that money damages will not afford the Company an adequate remedy. Consequently, if Executive is in breach of any provision of this Agreement, or threatens a
breach of this Agreement, the Company shall be entitled, in addition to all other rights and remedies as may be provided by law, to seek specific performance and injunctive and other equitable relief
to prevent or restrain a breach of any provision of this Agreement notwithstanding Section 16 hereof. All rights and remedies provided pursuant to this Agreement or by law shall be cumulative,
and no such right or remedy shall be exclusive of any other. All claims for damages for a breach of this Agreement shall be submitted to mediation and arbitration in accordance with Section 16
of this Agreement. 

8

   
        16.    Dispute Resolution.    Except for the right of the Company to seek specific performance
and injunctive and other equitable relief in court as set forth in Section 15 hereof, any controversy, claim or dispute of any type arising out of, in connection with, or in relation to the
interpretation, performance or breach of this Agreement shall be resolved in accordance with this Section 16 of this Agreement, regarding resolution of disputes. This Agreement shall be
enforced in accordance with the Federal Arbitration Act, the enforcement provisions of which are incorporated by this reference. 

        A.    Mediation.    The Company and Executive will make a good faith attempt to resolve any
and all claims and disputes under this Agreement through good faith negotiations. If such claims and disputes cannot be settled through negotiation, the Company and Executive agree to submit them to
mediation in Orange County, California before resorting to arbitration or any other dispute resolution procedure. The mediation of any such claim or dispute must be conducted in accordance with the
then-current JAMS procedures for the resolution of disputes by mediation, by a mediator ("Mediator") who has had both training and
experience as a mediator of general non-competition and commercial matters. If the parties to this Agreement cannot agree on a Mediator, then the Mediator will be selected by JAMS in
accordance with JAMS' strike list method. Within thirty (30) days after the selection of the Mediator, the Company and Executive and their respective attorneys will meet with the Mediator for
one mediation session of at least four (4) hours. If the claim or dispute cannot be settled during such mediation session or mutually agreed continuation of the session, either the Company or
Executive may give the Mediator and the other party to the claim or dispute written notice declaring the end of the mediation process. All discussions connected with this mediation provision will be
confidential and treated as compromise and settlement discussions. Nothing disclosed in such discussions, which is not independently discoverable, may be used for any purpose in any later proceeding.
In the event that the mediation process is ended without resolution, the Mediator's fees will be paid in equal portions by the Company and Executive. 

        B.    Arbitration.    If a claim or dispute under this Agreement has not been resolved in
accordance with Section 16A above, then the claim or dispute will be determined by arbitration in accordance with the then-current JAMS comprehensive arbitration rules and
procedures, except as modified herein. The arbitration will be conducted in Orange County, California by a sole neutral arbitrator ("Arbitrator") who
has had both training and experience as an arbitrator of general non-competition and commercial matters and who is, and for at least ten (10) years has been, a partner, a
shareholder, or a member in a law firm. If the Company and Executive cannot agree on an Arbitrator, then the Arbitrator will be selected by JAMS in accordance with Rule 15 of the JAMS
comprehensive arbitration rules and procedures. No person who has served as a Mediator under the mediation provision, however, may be selected as the Arbitrator for the same claim or dispute.
Reasonable discovery will be permitted and the Arbitrator may decide any issue as to discovery. The Arbitrator may decide any issue as to whether or as to the extent to which a dispute is subject to
the dispute resolution provisions in this Section 16 and the Arbitrator may award any relief permitted by law. The Arbitrator must base the arbitration award on the provisions of this
Section 16B and applicable law and must render the award in writing, including an explanation of the reasons for the award. Judgment upon the award may be entered by any court having
jurisdiction of the matter. The statute of
limitations applicable to the commencement of a lawsuit will apply to the commencement of an arbitration under this Section 16B. At the request of any party, the Arbitrator, attorneys, parties
to the arbitration, witnesses, experts, court reporters or other persons present at the arbitration shall agree in writing to maintain the strict confidentiality of the arbitration proceedings. The
arbitrator's fee will be paid in full by the Company, unless Executive agrees in writing to pay some or all of the fee. 

        C.    Interim Actions.    Notwithstanding the foregoing, a party may apply to a court of
competent jurisdiction within the State of California for relief in the form of a temporary 

9

 

restraining
order or preliminary injunction, pending appointment of an Arbitrator or pending determination of a claim through arbitration in accordance with this Section 16. In the event a
dispute is submitted to arbitration hereunder during the term of this Agreement, the parties shall continue to perform their respective obligations hereunder, subject to any interim relief that may be
ordered by the Arbitrator or by a court of competent jurisdiction pursuant to the previous sentence. 

        D.    Fees.    Unless otherwise agreed, the prevailing party (if a prevailing party is
determined to exist by the arbitrator or judge) will be entitled to its costs and attorneys' fees incurred in any arbitration or other proceeding under this Section 16 relating to the
interpretation or enforcement of this Agreement. 

        E.    Acknowledgement.    EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION 16, WHICH DISCUSSES
MEDIATION AND ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE
INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO MEDIATION AND ARBITRATION, AND THAT THE DISPUTE RESOLUTION PROVISIONS SET FORTH IN THIS AGREEMENT CONSTITUTE A
WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL. 

        17.    No Waiver.    The waiver by either party of a breach of any provision of this Agreement
shall not operate as, or be construed as, a waiver of any later breach of that provision. 

        18.    Taxes.    Except as otherwise provided under Section G, each party agrees to be
responsible for its own taxes and penalties. 

        19.    Counterparts.    This Agreement may be executed in more than one counterpart, each of
which shall be deemed an original, but all of which together shall constitute but one and the same instrument. 

        20.    Consent to Reincorporation.    The parties hereto acknowledge that the Company is in
the process of reincorporating in Delaware by merging into a wholly-owned Delaware subsidiary of the Company. As such, the parties hereto expressly consent to the assignment of all of the rights and
obligations of the parties hereunder to the new Delaware corporation, which will be the surviving corporation in the reincorporation merger. 

        21.    Representation of Executive; Reimbursement of Fees.    Executive represents and
warrants to the Company that Executive read and understands this Agreement, has consulted with independent counsel of his choice prior to agreeing to the terms of this Agreement and is entering into
the agreement, knowingly, willingly and voluntarily. As soon as practical following the Effective Date, the Company agrees to reimburse Executive for the fees and expenses incurred by his independent
counsel in connection with such counsel's review and negotiation of this Agreement, up to a maximum payment of $10,000 in this regard. The parties agree that this Agreement shall not be construed for
or against either party in any interpretation thereof. 

10

 

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

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	

/S/ JEFFREY WAHBA
 Jeffrey Wahba,

Chief Financial Officer
	

 	
 	

Address:	

5151 California Avenue

Irvine, CA 92617
	

 	
 	

/S/ ERIC J. BODEN
 ERIC J. BODEN, Executive
	

 	
 	

Address:	

          

	 	 	 	          

11

 
 

EXHIBIT A    
    
    NON-COMPETITION AGREEMENT    
    
    (attached hereto)    

Exhibit A  

NON-COMPETITION AGREEMENT  

        This Non-Competition Agreement (the "Agreement") is entered into as
of                        ,
            (the "Effective Date"), by and between HireRight, Inc., its parents, brother-sister, subsidiary or related companies,
successors
and assigns (the "Company"), and the undersigned, Eric J. Boden, an individual (the "Executive"). 

 
 

RECITALS    
    

        A.    Executive
and the Company are parties to that certain Employment Agreement dated as of                        , 2007 (the "Employment
Agreement") relating to the payment of severance benefits to Executive upon Executive's termination of employment with the Company in connection with a Change in Control (as
defined in the Employment Agreement) of the Company, and the execution and delivery of this Agreement by Executive is a condition precedent to the receipt of such severance benefits by Executive. 

        B.    The
Company is engaged in the business of providing employment screening services throughout the United States and internationally (the
"Business"). The parties acknowledges that the relevant market for the Business is worldwide in scope (the "Restricted
Area") and that there exists intense worldwide competition for the products and services of the Business. 

        C.    The
Company possesses certain information (whether or not recorded in documentary form or on computer disk or tape) to which it attaches a level of confidentiality or in
respect of which it owes an obligation of confidentiality to any third-party, relating to, without limitation, business methods, corporate plans, management systems, finances, maturing new business
opportunities, research and development projects, marketing or sales of any past, present or future product or service of the Company including, without limitation, sales targets and statistics,
market share and pricing statistics, marketing surveys and plans, market research reports, sales techniques, price lists, discount structures, advertising and promotional material, the names,
addresses, telephone numbers, contact names and identities of customers and potential customers of, and suppliers and potential suppliers to, the Company, the nature of their business operations,
their requirements for any product or service sold to or purchased by the Company and all confidential aspects of their business relationship with the Company, any and all trade secrets, secret
formulae, manufacturing techniques, processes, technology, inventions, designs, know-how, discoveries, technical specifications and other technical information relating to the creation,
production or supply of any past, present or future product or service of the Company, and all other Intellectual Property Rights and confidential and proprietary information of the Company
("Confidential Business Information"). 

        D.    Executive
is the President and Chief Executive Officer of the Company and has a significant ownership interest and goodwill in the Company that is being transferred in
connection with the Change in Control of the Company (as defined in the Employment Agreement). Executive has been terminated without Cause (as defined in the Employment Agreement) or resigned for Good
Reason (as defined in the Employment Agreement) pursuant to the terms of the Employment Agreement, and he will receive certain severance payments from the Company in connection with Executive's
termination. 

        E.    In
order to protect the goodwill, trade secrets and other Confidential Business Information related to the Company being acquired in such Change in Control by the
Company's acquiror and in consideration for the severance benefits being paid to Executive pursuant to the Employment Agreement, Company and Executive have agreed to enter into this Agreement. 

        F.     Capitalized
terms used herein and not defined shall have the meanings ascribed to them in the Employment Agreement. 

        NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt and sufficiency of 

 

which
is hereby acknowledged, Executive and Company, intending to be legally bound, hereby agree as follows: 

ARTICLE 1 

NON-COMPETITION 

        1.1    Non-Competition.    As an inducement for the payment of the severance
benefits payable by Company to Executive pursuant to the Employment Agreement and in connection with the Change in Control of the Company, Executive agrees that, without the express prior written
consent of the Company, for 18 months from and after the date that Executive ceases to be employed by the Company (as defined below) (the "Non-Competition
Period"), Executive shall not, anywhere in the Restricted Area, directly or indirectly, whether individually or as an employee, consultant, partner, advisor, independent
contractor, officer, director, member, equity holder, debt holder, joint venture participant, lender, guarantor, principal, agent, representative or in any other similar capacity, for any person,
firm, partnership, company, corporation or other entity (other than the Company) (without limitation by specific enumeration of the foregoing): (1) in any way own, manage, operate, sell,
control or participate in the ownership, management, operation, sale or control of any business, activity, entity or person, or engage in any business or activity, that is competitive (wholly or
partly) with or similar to the Business, or (2) render any services or provide any advice with respect to or involving the Business to any business, activity, entity or person (other than the
Company), or (3) allow his name or the name of the Company to be used in connection with any business, activity, entity or person (other than the Company) that is competitive (wholly or partly)
with or similar to the Business. Notwithstanding the foregoing, Executive may own, directly or indirectly, solely as an investment, up to one percent (1%) of any class of Publicly Traded Securities
(as defined below) of any person that owns or operates a business that is competitive (wholly or partly) with or similar to the Business; provided however, that Executive may not devote any managerial
efforts for, or provide any services to, such person or entity. For the purposes of this Section 1.1, the term "Publicly Traded Securities" shall
mean securities that are traded on a national securities exchange or listed on the Nasdaq Global Market. 

        1.2    No Interference with the Business; Non-Solicitation.    Executive agrees
that during the Non-Competition Period, at any time or for any reason, Executive shall not, directly or indirectly, (a) solicit or divert away from the Company any business or
customers, vendors, clients, licensors, licensees, suppliers, agents or other persons made known to Executive during his employment with the Company, (b) induce customers, vendors, clients,
licensors, licensees, suppliers, agents or other persons under contract or otherwise associated or doing business with a the Company to reduce or alter any such association or business with the
Company or otherwise interfere in the business relationship of any such persons and the Company, and/or (c) solicit any employee, independent contractor, consultant or other Person in the
employment or service of the Company, at the time of such solicitation, in any case to (i) terminate such employment or service, and/or (ii) accept employment, or enter into any
consulting or other service arrangement, with any person other than the Company. 

ARTICLE 2 

REMEDIES
AND CONFLICT RESOLUTION 

        2.1    Remedies.    The parties to this Agreement agree that: (i) Executive's services
are unique, because of the particular skill, knowledge, experience and reputation of Executive; (ii) if Executive breaches Article 1 of this Agreement, the damage to the Company will be
substantial, and difficult to ascertain, and, further, that money damages will not afford the Company an adequate remedy, and consequently, (iii) if Executive is in breach of any provision of
this Agreement, or threatens a breach of Article 1 of this Agreement, the Company shall be entitled, in addition to all other rights and remedies as may be provided by law, to seek specific
performance and injunctive and other equitable relief to 

2

 

prevent
or restrain a breach of any provision of this Agreement notwithstanding Section 2.2 hereof. All claims for damages for a breach of this Agreement shall be submitted to mediation and
arbitration in accordance with Section 2.2 of this Agreement. 

        2.2    Dispute Resolution.    Except for the right of the Company to seek specific performance
and injunctive and other equitable relief in court as set forth in Section 2.1 hereof, any controversy, claim or dispute of any type arising out of, in connection with, or in relation to the
interpretation, performance or breach of this Agreement shall be resolved in accordance with this Section 2.2 of this Agreement, regarding resolution of disputes. This Agreement shall be
enforced in accordance with the Federal Arbitration Act, the enforcement provisions of which are incorporated by this reference. 

        (a)    Mediation.    The Company and Executive will make a good faith attempt to resolve any
and all claims and disputes under this Agreement through good faith negotiations. If such claims and disputes cannot be settled through negotiation, the Company and Executive agree to submit them to
mediation in Orange County, California before resorting to arbitration or any other dispute resolution procedure. The mediation of any such claim or dispute must be conducted in accordance with the
then-current JAMS procedures for the resolution of disputes by mediation, by a mediator ("Mediator") who has had both training and
experience as a mediator of general non-competition and commercial matters. If the parties to this Agreement cannot agree on a Mediator, then the Mediator will be selected by JAMS in
accordance with JAMS' strike list method. Within thirty (30) days after the selection of the Mediator, the Company and Executive and their respective attorneys will meet with the Mediator for
one mediation session of at least four (4) hours. If the claim or dispute cannot be settled during such mediation session or mutually agreed continuation of the session, either the Company or
Executive may give the Mediator and the other party to the claim or dispute written notice declaring the end of the mediation process. All discussions connected with this mediation provision will be
confidential and treated as compromise and settlement discussions. Nothing disclosed in such discussions, which is not independently discoverable, may be used
for any purpose in any later proceeding. In the event that the mediation process is ended without resolution, the Mediator's fees will be paid in equal portions by the Company and Executive. 

        (b)    Arbitration.    If a claim or dispute under this Agreement has not been resolved in
accordance with Section 2.2(a) above, then the claim or dispute will be determined by arbitration in accordance with the then-current JAMS comprehensive arbitration rules and
procedures, except as modified herein. The arbitration will be conducted in Orange County, California by a sole neutral arbitrator ("Arbitrator") who
has had both training and experience as an arbitrator of general non-competition and commercial matters and who is, and for at least ten (10) years has been, a partner, a
shareholder, or a member in a law firm. If the Company and Executive cannot agree on an Arbitrator, then the Arbitrator will be selected by JAMS in accordance with Rule 15 of the JAMS
comprehensive arbitration rules and procedures. No person who has served as a Mediator under the mediation provision, however, may be selected as the Arbitrator for the same claim or dispute.
Reasonable discovery will be permitted and the Arbitrator may decide any issue as to discovery. The Arbitrator may decide any issue as to whether or as to the extent to which a dispute is subject to
the dispute resolution provisions in this Section 2.2 and the Arbitrator may award any relief permitted by law. The Arbitrator must base the arbitration award on the provisions of this
Section 2.2 and applicable law and must render the award in writing, including an explanation of the reasons for the award. Judgment upon the award may be entered by any court having
jurisdiction of the matter. The statute of limitations applicable to the commencement of a lawsuit will apply to the commencement of an arbitration under this Section 2.2(b). At the request of
any party, the Arbitrator, attorneys, parties to the arbitration, witnesses, experts, court reporters or other persons present at the arbitration shall agree in writing to maintain the strict 

3

 

confidentiality
of the arbitration proceedings. The arbitrator's fee will be paid in full by the Company, unless Executive agrees in writing to pay some or all of the fee. 

        (c)    Interim Actions.    Notwithstanding the foregoing, a party may apply to a court of
competent jurisdiction within the State of California for relief in the form of a temporary restraining order or preliminary injunction, pending appointment of an Arbitrator or pending determination
of a claim through arbitration in accordance with this Section 2.2. In the event a dispute is submitted to arbitration hereunder during the term of this Agreement, the parties shall continue to
perform their respective obligations hereunder, subject to any interim relief that may be ordered by the Arbitrator or by a court of competent jurisdiction pursuant to the previous sentence. 

        (d)    Fees.    Unless otherwise agreed, the prevailing party (if a prevailing party is
determined to exist by the arbitrator or judge) will be entitled to its costs and attorneys' fees incurred in any arbitration or other proceeding under this Section 2.2 relating to the
interpretation or enforcement of this Agreement. 

        2.3    Acknowledgement.    EXECUTIVE HAS READ AND UNDERSTANDS THIS
ARTICLE 2, WHICH DISCUSSES MEDIATION AND ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS NON-COMPETITION AGREEMENT, EXECUTIVE AGREES TO SUBMIT ANY
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS NON-COMPETITION AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO
MEDIATION AND ARBITRATION, AND THAT THE DISPUTE RESOLUTION PROVISIONS SET FORTH IN THIS ARTICLE 2 CONSTITUTE A WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL.

ARTICLE 3 

MISCELLANEOUS

        3.1    Entire Agreement; Amendments and Waivers.    This Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto, including any other non-competition or
non-solicitation agreement in effect as of the Effective Date. This Agreement may be amended or modified and the terms and conditions hereof may be waived, only by a written instrument
signed by each of the parties or, in the case of waiver, by the party waiving compliance. No delay on the part of either party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any
other or further exercise thereof or the exercise of any other right, power or privilege hereunder. The rights and remedies provided herein are cumulative and are not exclusive of any rights or
remedies that either party may otherwise have at law or in equity. 

        3.2    Representations and Warranties.    Executive represents and warrants that this
Agreement is a legal, valid and binding obligation, enforceable against Executive in accordance with its terms. 

        3.3    Notices.    Any notices, demands or other communications required or desired to be
given by any party shall be in writing and shall be validly given to another party if served either personally or via overnight delivery service such as Federal Express, postage prepaid, return
receipt requested. If such notice, demand or other communication shall be served personally, service shall be conclusively deemed made at the time of such personal service. If such notice, demand or
other communication is given by overnight delivery, such notice shall be conclusively deemed given two business days after the deposit 

4

 

thereof
addressed to the party to whom such notice, demand or other communication is to be given as hereinafter set forth: 

	 	 	To the Company:	 	HireRight, Inc.

5151 California Avenue

Irvine, California 92617

Attn: Vice President of Human Resources
	

 	
 	

With a copy to:	
 	

Dorsey & Whitney LLP

38 Technology Drive

Irvine, California 92618

Attn: Ellen S. Bancroft, Esq.
	

 	
 	

To Executive:	
 	

At Executive's last residence as provided by Executive to the Company for payroll records.

Any
party may change such party's address for the purpose of receiving notices, demands and other communications by providing written notice to the other party in the manner described in this
Section 3.3. 

        3.4    Governing Law.    This Agreement shall be governed by and construed in accordance with
the domestic laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of California. 

        3.5    Severability.    To the extent any provision of this Agreement shall be invalid or
unenforceable, it shall be considered deleted from this Agreement and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. Executive
acknowledges that the agreements contained in this Agreement are reasonable (including with respect to duration, geographical area and scope) and necessary to protect the legitimate interests of the
Company, including the preservation of the business of the Company. In furtherance and not in limitation of the foregoing, should the duration or geographical extent of, or business activities covered
by any provision of this Agreement be in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to cover only that duration, extent or activities
which may validly and enforceably be covered. In particular, should a court of competent jurisdiction hold the territorial restriction of the Restricted Area to be overly broad, void or unenforceable,
then such Restricted Area shall extend no further than those cities, counties and states in the United States impacted by the market area of all phases of the Company's Business or where the goodwill
of the Company has been established. To the extent any provision of this Agreement shall be declared invalid or unenforceable for any reason by any governmental entity in any jurisdiction, this
Agreement (or provision thereof) shall remain valid and enforceable in each other jurisdiction where it applies. Executive acknowledges the uncertainty of the law in this respect and expressly
stipulates that this Agreement shall be given the
construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law. 

        3.6    Successors and Assigns.    This Agreement shall be binding upon and inure to the
benefit of the parties hereto, the heirs and legal representatives of Executive and the successors and assigns of the Company. Executive shall not be entitled to assign his obligations hereunder
without the written consent of the Company. The Company may assign any of their respective rights under this Agreement to any of the Company's parents, brother-sister or subsidiary companies
(including, without limitation, the successors and assigns of the Company) and to any person or entity that shall succeed to all or substantially all of the assets relating to the Business. Executive
agrees that, upon request therefor, he will, in writing, acknowledge and consent to any such assignment of this Agreement. 

5

 

        3.7    Signatures; Counterparts.    This Agreement may be executed in one or more
counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same instrument. A facsimile signature will
be considered an original signature. 

        3.8    Independent Review and Advice.    Executive represents and
warrants that Executive has carefully read this Agreement; that Executive executes this Agreement with full knowledge of the contents of this Agreement, the legal consequences thereof, and any and all
rights which each party may have with respect to one another; that Executive has received independent legal advice with respect to the matters set forth in this Agreement and with respect to the
rights and asserted rights arising out of such matters, and that Executive is entering into this Agreement of Executive's own free will. Executive expressly agrees that there are no expectations
contrary to the Agreement and no usage of trade or regular practice in the industry shall be used to modify the Agreement. The parties agree that this Agreement shall not be construed for or against
either party in any interpretation thereof.

[SIGNATURE PAGE FOLLOWS] 

6

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

	HIRERIGHT, INC.	 	EXECUTIVE
	

          
 Jeffrey Wahba,

Chief Financial Officer	
 	

          
 ERIC J. BODEN
	

Address:	
 	

5151 California Avenue

Irvine, CA 92617	
 	

Address:	
 	

          
          

[Signature
Page to Non-Competition Agreement] 

 
 

EXHIBIT B    
    
    SEPARATION AND RELEASE AGREEMENT    
    
    (attached hereto)    

 
 

Exhibit B    
    
    SEPARATION AGREEMENT AND RELEASE    
    

        This Separation Agreement and Release ("Agreement") is entered into as of
this            day of
                        , 200    , hereinafter "Execution Date," by and between Eric J. Boden (the
"Employee") and HireRight, Inc., its parents, brother-sister or related companies, successors and assigns (the
"Company"). Employee and the Company are sometimes collectively referred to as the "Parties". 

 
 

Recitals    
    

        A.    Employee
and Company are parties to that certain Employment Agreement dated as of                        , 2007 (the "Employment
Agreement") relating to the payment of severance benefits to Employee under certain circumstances upon Employee's termination of employment with Company, and the execution and
delivery of this Agreement by Employee is a condition precedent to the receipt of such severance benefits by Employee. 

        B.    Employee
was employed by Company, and Employee and Company desire to avoid and resolve any alleged existing or potential disagreements between them arising out of or
connected with Employee's employment with the Company. 

Agreement  

        1.    Termination of Employment.    Employee's employment with the Company terminates
effective                        (hereinafter, the "Termination Date"). The
Parties have agreed to avoid and resolve any alleged existing or potential
disagreements between them arising out of or connected with Employee's employment with the Company. The Company expressly disclaims any wrongdoing or any liability to Employee. 

        2.    Severance Benefits.    In consideration for Employee executing this Agreement, the
Company agrees to pay Employee the following after the Execution Date, in accordance with the terms set forth in Section [7C/7D]
in the Employment Agreement, which are collectively referred to herein as the "Severance Payments": 

        [Insert applicable Severance Payments from Section 7C or 7D] 

        Employee
specifically acknowledges and agrees that this consideration exceeds the amount Employee would otherwise be entitled to receive upon termination of Employee's employment, and
that these Severance Payments and other benefits are in exchange for entering into this Agreement. Employee agrees that he will not at any time seek consideration from the Company other than what is
set forth in this Agreement, and that the payment of the Severance Payments is subject to and conditioned upon the terms set forth in the Employment Agreement. Employee specifically acknowledges and
agrees that the Company has made no representations to Employee regarding the tax consequences of any amounts received by Employee or for Employee's benefit pursuant to this Agreement. 

        3.    Release.    Employee represents that he has not filed, and will not file, any
complaints, lawsuits, administrative complaints or charges arising from or relating to Employee's employment with, or termination from, the Company. This does not prohibit Employee from participating
and providing truthful testimony in any federal or state agency investigation. Notwithstanding any provision of law which provides that a general release does not extend to claims which the creditor
does not know or suspect to exist in Employee's favor at the time of executing a release, Employee agrees to release the Company, its Board of Directors, officers, employees, agents and assigns, from
any and all claims, charges, complaints, causes of action or demands of whatever kind or nature that Employee now has or has ever had against the Company, whether known or unknown, arising from or
relating to Employee's employment with or discharge from the Company, including but not limited to: wrongful or tortious termination, specifically including actual or constructive termination in
violation of public policy; military leave, reinstatement, or related rights; implied or express employment contracts and/or 

 

estoppel;
discrimination and/or retaliation under any federal, state or local statute or regulation, specifically including any claims Employee may have under the Fair Labor Standards Act, Age
Discrimination in Employment Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964 as amended, and the Family and Medical Leave Act; and the California Fair Employment
and Housing Act; the Washington Law Against Discrimination, RCW § 9.60 et seq.; the Washington Minimum Wage Act, RCW § 49.46 et seq.; any and all claims brought under any
applicable federal, state or local employment discrimination or other statutes; any claims brought under any federal, state or local statute or regulation for non-payment of wages or other
compensation (including bonuses due after the Termination Date), including stock or stock options; and libel, slander, fraud, misrepresentation, or breach of contract other than the breach of this
Agreement. This release specifically excludes claims, charges, complaints, causes of action or demands of whatever kind or nature that post-date the Termination Date or the Execution Date,
whichever is later, and that are based on factual allegations that do not arise from or relate to Employee's present employment with or discharge from the Company. This Release also does not include a
release of (i) Employee's rights for state mandated insurance for unemployment insurance and workers' compensation insurance, (ii) Employee's right to seek indemnification by the Company
or its insurers for third party claims pursuant to that certain Indemnification Agreement dated            , 2007 between Employee and the Company; or (iii) Employee's ability to
enforce
his rights to received severance benefits and any other payments pursuant the Employment Agreement. 

        4.    Section 1542 of the California Civil Code.    Employee expressly waives any and
all rights and benefits conferred upon Employee by Section 1542 of the California Civil Code, which states as follows: 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HER MUST HAVE MATERIALLY AFFECTED
HER SETTLEMENT WITH THE DEBTOR. 

        Accordingly,
Employee knowingly, voluntarily and expressly waives any rights and benefits arising under Section 1542 of the California Civil Code and any other statute or
principle of similar effect. 

        5.    Non-Disparagement.    Unless compelled by law, Employee agrees that Employee
will not knowingly disparage Company or any past or present (as of the time any statement is made) officer, director or employee of Company or otherwise make statements whether or not such statements
are thought to be or are true with respect to Company's business or human resources practices, policies and procedures, and whether or not such statements are made publicly, privately, subject to
confidentiality obligations, or otherwise, which could tend to harm or injure the personal or business reputation, or business, of the Company or of any past or present officer, director or employee
of the Company, and whether or not such statements are made to any present or employee or director of the Company or to someone outside of the Company. Employee also agrees that Employee will not
waive the attorney-client privilege or otherwise use, disclose or consent to the use or disclosure of any information relating to, or secured or developed in the course of or with respect to any
litigation or advice to which Employee was privy to attorney client information, the use or disclosure of which could adversely affect the interests of the Company, including but not limited to
information with regard to
its technology, sales, marketing activities and practices, financing plans and practices, and hiring and recruiting activities and practices, and employee incentives. 

        6.    Continuing Obligations.    Employee acknowledges and affirms that Employee has
previously executed a Proprietary Information and Assignment of Inventions Agreement and the Employment Agreement, and that the terms and conditions of those agreements are not affected by this
Severance Agreement and Release. Employee represents that Employee has returned all property belonging to the Company. 

2

 

        7.    Employment Information.    Employee will direct all employment verification inquiries to
Human Resources. In response to inquiries regarding Employee's employment with the Company, the Company, by and through its speaking agent(s) agrees to provide only the following information:
Employee's date of hire, the date Employee's employment ended and rates of pay. 

        8.    Entire Agreement.    Employee warrants that no promise or inducement has been offered
for this Agreement other than as set forth herein and that this Agreement is executed without reliance upon any other promises or representations, oral or written. Any modification of this Agreement
must be made in writing and signed by Employee and the Company. This Agreement supersedes all prior understandings between the Parties and represents the entire Agreement between the Parties with
respect to all matters set forth herein involving Employee's employment and termination from the Company. Employee represents that Employee is the sole owner of and Employee have not assigned the
rights to any claims released herein. 

        9.    Severability.    If any provision of this Agreement or compliance by Employee or the
Company with any provision of this Agreement constitutes a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law,
unenforceable or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent
permitted by law. If such modification is not possible, said provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of
this Agreement, which provisions will remain binding on both Employee and the Company. This Agreement is governed by the laws of the State of California. 

        10.    Forum Selection; Attorney's Fees.    The California State Superior Court for the County
of Orange and the United States District Court for the Central District of California shall have exclusive jurisdiction of any lawsuit arising from or relating to Employee's employment with, or
termination from, the Company, or arising from or relating to this Agreement. The prevailing party in any such lawsuit will be entitled to an award of attorneys' fees and reasonable litigation costs.
Employee agrees that
Employee will indemnify and hold the Company harmless from any grossly negligent or willful breach of this Agreement by Employee. 

        11.    VOLUNTARY EXECUTION.    EMPLOYEE ACKNOWLEDGES AND AGREES THAT
EMPLOYEE HAS CAREFULLY READ AND VOLUNTARILY SIGNED THIS AGREEMENT, THAT EMPLOYEE HAS CONSULTED WITH AN INDEPENDENT ATTORNEY OF EMPLOYEE'S CHOICE, AND THAT EMPLOYEE SIGNS THIS AGREEMENT WITH THE INTENT
OF RELEASING THE COMPANY AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY AND ALL CLAIMS.  

 ACCEPTED AND AGREED TO:  

	
	 	

	Eric J. Boden	 	Date
	 	 	 
	 	 	 
	
	 	

	HireRight, Inc.	 	Date

3

QuickLinks

Exhibit 10.4

EMPLOYMENT AGREEMENT

EXHIBIT A NON-COMPETITION AGREEMENT (attached hereto)

RECITALS

EXHIBIT B SEPARATION AND RELEASE AGREEMENT (attached hereto)

Exhibit B SEPARATION AGREEMENT AND RELEASE

Recitals

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