Document:

EXHIBIT
10.1

 

HireRight, Inc.

 

2008
Executive Short-term Incentive Plan

 

HireRight’s objective with respect to executive
compensation is to establish programs which attract, retain and motivate
talented and qualified executives and align their compensation with our overall
business strategies, values and performance. The primary objective of the
Executive Short-term Incentive Plan (“Plan”) is to drive and reward increased
stockholder value achieved through meeting or exceeding the 2008 financial and
customer satisfaction objectives.

 

Eligibility

 

Participants
in the Plan are the Chief Executive Officer (“CEO”) and those HireRight
executives reporting directly to the CEO in a leadership capacity over a
HireRight department or division and other key executives as approved by the
Compensation Committee of the HireRight Board of Directors (“Committee”).

 

HireRight executives must have commenced work in an
eligible position prior to the beginning of the fourth quarter and remain
employed with HireRight until the day the bonus is paid to be eligible.  Bonuses for associates who become eligible
during the year will be adjusted on a pro-rated basis.  Bonuses for executives who receive a promotion
to a position with a higher bonus target during the year will be adjusted on a
pro-rated basis consistent with the time in each position.  Bonuses for executives who are on medical,
family or other leave during the year will be adjusted on a pro-rata basis
consistent with their time worked during the year.

 

Administration

 

The
Committee will approve the Plan.  The
Committee will approve the annual financial targets under the Plan.

 

Bonuses
under the Plan, if any, will be paid after the end of the 2008 fiscal year and
between January 1, 2009 and March 15, 2009.  Bonus payments will be based on HireRight’s
achievement of its financial goals and customer satisfaction results.  All payments under the Plan are subject to
the sole discretion of, and must be approved by, the Committee.  Accordingly, each individual’s subjective
personal contribution may be taken into account by the Committee, based upon
input from the CEO. The Committee, with input from the full HireRight Board of
Directors, will determine the CEO’s bonus payment.

 

The
Committee will evaluate the Plan for effectiveness and modify as
appropriate.  The Plan is subject to
change or cancellation from quarter to quarter at the sole discretion of the
Committee.

 

 

Target Incentives

 

Short-term Incentive Targets are determined based on a
percentage of base salary consistent with competitive market variable
compensation targets.  The following
bonus targets are applicable under the Plan:

 

	
  Position

  	
   

  	
  Annual Target as %

  of Base Salary

  	
   

  
	
  CEO

  	
   

  	
  50%

  	
   

  
	
  VP, Worldwide Sales

  	
   

  	
  60%

  	
   

  
	
  Other Plan Participants

  	
   

  	
  35%

  	
   

  

 

Metrics

 

The potential bonus for all participants will be based on
HireRight’s results for the following metrics: 
40% on operating income, 25% on fully diluted earnings per share, 20% on
service revenue, and 15% on customer satisfaction.

 

Metrics Definitions and
Targets

 

The
following definitions describe the metrics upon which the Plan is based.

 

Operating Income – Operating Income is measured by the extent to which HireRight has met
its stated operating income plan for the quarter and the year as described in
HireRight’s annual operating plan.  The
Board of Directors and executive management establish the operating income plan
at the beginning of each fiscal year.

 

Earnings per Share – Earnings per share is measured by the extent to which HireRight has met
its stated fully diluted earnings per share plan for the quarter and the year
as described in HireRight’s annual operating plan.  The Board of Directors and executive
management establish the earnings per share plan at the beginning of each
fiscal year.

 

Revenue – Revenue is measured by the extent to which HireRight has met its stated
service revenue plan for the quarter and the year as described in HireRight’s
annual operating plan.  The Board of
Directors and executive management establish the revenue plan at the beginning
of each fiscal year.

 

Overall Customer Satisfaction - An outside firm
will conduct a quarterly survey of a sampling of HireRight’s customer base to
measure customer satisfaction.  The areas
addressed in the survey are developed in consultation with our survey provider
and are focused on supporting our objective of customer retention.

 

Bonus Pool Funding

 

Operating Income:  The operating
income portion may be funded to the extent HireRight can still meet its planned
operating income for the quarter.

 

Earnings per Share:  The earnings
per share portion may be funded to the extent HireRight can still meet its
planned earnings per share plan for the quarter.

 

Revenue:  The revenue
portion of the Plan may be funded as follows:

 

	
  Revenue Plan 

  Achievement

  	
   

  	
  100%

  	
   

  	
  98% to

   99.9%

  	
   

  	
  96% to

  97.9%

  	
   

  	
  94% to

  95.9%

  	
   

  	
  Less

  than

  94%

  	
   

  
	
  Funding%

  	
   

  	
  100%

  	
   

  	
  75%

  	
   

  	
  50%

  	
   

  	
  25%

  	
   

  	
  0%

  	
   

  

 

 

Overall Customer Satisfaction:  The overall
customer satisfaction portion may be funded based on the results of the
quarterly customer satisfaction survey.

 

Provided
that HireRight achieves its annual targets, the Committee may, in its sole
discretion, make up any quarterly funding shortfall at the time of the annual
bonus payment.

 

Over Achievement Bonus

 

In the event HireRight exceeds its annual operating income
target, up to 15% of the excess operating income may be granted to the
participants in the Plan at the discretion of the Committee.  The amount of the over achievement bonus
payable to each participant is completely discretionary and is recommended by
the CEO (for participants other than himself) and subject to the approval of
the Committee.  The Committee, with input
from the full HireRight Board of Directors, will determine the CEO’s over
achievement bonus payment.  In no event
will an individual’s over achievement bonus exceed two times his or her annual
target bonus amount.

 

Bonus Calculation

 

The final bonus calculation and payment amount, if any,
will be determined once HireRight’s annual results are finalized.  The bonus will not be deemed earned until after
the end of the fiscal year, and the participant must be an active employee at
the time bonus is paid in order to be eligible for the payment.Exhibit 10.3.3

 

AMENDMENT NO. 3

TO

EMPLOYMENT AGREEMENT

 

AMENDMENT
NO. 3 dated as of December 18, 2007 to an EMPLOYMENT
AGREEMENT entered into as of May 1, 1997 between Bio-Reference
Laboratories, Inc., a New Jersey corporation (“the Company”) and Howard Dubinett,
Executive Vice President (“Employee”), previously amended as of November 1,
2002 by Amendment No.1 and as of January 7, 2004 by Amendment No.2 (the
Employment Agreement, Amendment No.1 and Amendment No.2 collectively referred
to as the “ Agreement”).

 

WITNESSETH:

 

WHEREAS the parties executed the Employment Agreement as of May 1,
1997 providing for the employment by the Company of the Employee as Executive
Vice President and Chief Operating Officer of the Company through October 31,
2002; and

 

WHEREAS pursuant to Amendment No.1 executed as of November 1,
2002, the parties amended the Employment Agreement to extend the term for two
years, to grant the Company the option to extend the Agreement for up to two
additional consecutive one-year periods, to modify the compensation terms and
to effect other changes; and

 

WHEREAS pursuant to Amendment No.2 executed as of January 7,
2004, the parties amended the Employment Agreement to extend the term for two
additional years, to grant the Company the option to extend the Agreement for
an additional year and to effect other changes, and

 

WHEREAS the parties hereby agree to amend the Agreement to
extend the term for two additional years, to grant the Company the option to
continue to renew the Agreement, subject to the Employee’s right to terminate
the Agreement, and to modify the compensation terms; all as herein set forth:

 

NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein and intending to be legally bound hereby, the
parties hereto agree to amend the Agreement as follows:

 

A.            “1. Terms
of Employment.” The “Expiration Date: as set forth in this section is
extended to the later of October 31, 2009 or any subsequent date to which
this Agreement is extended pursuant to Section 2 hereof.

B.            “2. Renewal.” This section is
hereby amended to read in its entirety as follows:

 

“2. Renewal.” This Agreement may be
renewed and extended beyond the Expiration Date set forth in section 1 for
additional one year periods at the Company’s option. This Agreement will be
automatically extended at the end of each Company fiscal year for an additional
one year term beyond its then Expiration Date unless the Company gives written
notice to the Employee not less than ten (10) days prior to the end of the
fiscal year preceding the fiscal year containing the Expiration Date that it
elects not to extend the Agreement (the “Non-Extension Date”). By way of
example:

 

	
  If the Company Fails

  	
   

  	
  Agreement Expiration Date

  	
   

  
	
  To Give the Non-Extension

  	
   

  	
  Automatically Extended to

  	
   

  
	
  Notice On or Prior to
  October 21

  	
   

  	
  October 31

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  2010

  	
   

  
	
  2009

  	
   

  	
  2011

  	
   

  

 

 

Once
the Company gives a Non-Extension Notice, this Agreement shall terminate at the
close of business on October 31 of the Company’s fiscal year next
succeeding the fiscal year in which the Non-Extension Notice was given. By way
of example, if the Non-Extension Notice is given in fiscal 2009 on or prior to October 21
of such year, the Agreement will terminate on October 31, 2010.

 

        Anything to the contrary herein
contained notwithstanding , the Employee shall have the absolute right in his
own discretion to terminate the Agreement effective on January 1 of any
calendar year commencing January 1, 2010 (the “Effective Termination Date”)
by providing the Company with not less than 90 days prior written notice of his
election to terminate. In the event the Employee so elects to terminate the
Agreement and continues to provide the services required by the Agreement
through the Effective Termination Date, he shall be entitled to continue to be
paid his Base Compensation at the rate in effect at the date of his notice to
terminate as well as all employee benefits to which he is entitled, through the
Effective Termination Date

 

C.            “4. Compensation.” The “Base
Compensation” as set forth in paragraph (a) of this section shall be not
less than $355,000 in each of fiscal 2008 and 2009 as well as in each
subsequent year of an extension period. The provisions of paragraph (g) of
this section concerning increases in Base Compensation based upon percentage
increases in the Consumer Price Index shall continue to be applicable with
respect to each year that the Agreement as extended (including any renewal year
if applicable) is in effect.

 

D.            Other
Provisions. Except as specifically modified of amended herein,
the parties hereto hereby reaffirm each provision of the Agreement as of the
date hereof.

 

IN WITNESS WHEREOF, the undersigned have each
duly executed this Amendment No. 3 to the Agreement as of the date first
above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
  Bio-Reference
  Laboratories, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By
  

  	
  /S/
  Marc D. Grodman

  	
   

  
	
   

  	
   

  	
  Marc
  D. Grodman, President

  
	
   

  	
   

  	
  Duly
  Authorized

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
  /S/
  Howard Dubinett

  	
   

  
	
   

  	
   

  	
  Howard
  Dubinett

  
								

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]