Document:

Exhibit 10.6

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made as of September 20, 2006, by and between
Matinee Media Corporation, a Texas corporation (the “Company”), and Kevin W.
Mischnick, an individual residing in Austin, Texas (“Employee”).

 

WHEREAS, Employee currently
serves as the Vice President and Chief Financial Officer of the Company, and
the Company desires to continue to have access to the services of Employee, and
Employee desires to continue to provide services to the Company, in accordance
with the terms and conditions of this Agreement;

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Employee agree as follows:

 

1.             Employment. 
Effective on the Effective Date (as defined in Section 2)
and subject to the terms and conditions of this Agreement, the Company agrees
to employ Employee as the Company’s Vice President and Chief Financial Officer,
and Employee agrees to perform the duties associated with that position
diligently and to the reasonable satisfaction of the Company.  From the Effective Date until termination of
this Agreement, Employee will devote Employee’s full business time, attention
and energies to the business of the Company. 
Nothing in this Agreement, however, will prohibit Employee from engaging
in the management of personal investments, trade association or charitable
activities, including serving as a board member or committee member to trade
associations or charities; provided, that, none of such
activities interfere with the performance of Employee’s duties and
responsibilities to the Company under this Agreement.  Employee’s principal place of employment will
be Austin, Texas; provided, however, that Employee will travel to
the extent reasonably requested by the Company’s Chief Executive Officer for
Employee to perform his duties as Vice President and Chief Financial Officer of
the Company.

 

2.             Term and Termination.  Employee will be employed under this
Agreement for an initial term of two years (the “Initial Term”), beginning on
the date of this Agreement (the “Effective Date”).  This Agreement will renew for successive one
year periods after the completion of the Initial Term, unless either party
gives prior written notice to the contrary to the other party no less than 30
days prior to the end of the Initial Term or renewal period, as the case may
be.  This Agreement may be sooner
terminated by either party in accordance with Section 3 of this
Agreement.

 

3.             Termination Benefits.  If prior to the end of the Initial Term or
any renewal period, as the case may be, (i) the Company terminates
Employee other than for Cause (as defined below), or (ii) Employee
terminates his employment for Good Reason (as defined below), then the Company
will be obligated to pay Employee in a lump sum, within thirty (30) days after
such event, any accrued and unpaid vacation and an amount equal to Employee’s
base salary and maximum discretionary incentive bonus in effect on the date of
such termination for greater of (y) the remainder of the Initial Term or
any renewal period, as the case may be, or (z) 12 months.  As used in this Agreement (i) termination
for “Cause” means any termination of Employee for (a) the commission of an
act of fraud or embezzlement against the Company, (b) the conviction of,
or a plea of “guilty” or “no contest” to, a felony under the laws of the United

 

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States or any state, (c) consistent
willful misconduct or gross negligence in performing Employee’s duties
hereunder, or (d) a material breach of any of the terms of this Agreement
or any other agreement between the Company and Employee relating to Employee’s
employment, if such breach causes material harm to the Company, after written
notice of such breach and reasonable opportunity to cure; (ii) “Good
Reason” means any of the following that occurs without Employee’s express prior
written consent:  (a) an adverse
change by the Company in Employee’s title, function, duties or responsibilities
(including reporting responsibilities), (b) Employee’s base salary is
reduced by the Company, or there is a material reduction in the benefits that
are in effect for Employee, (c) relocation of Employee’s principal place
of employment to a place located more than 50 miles outside of Austin, Texas, (d) a
Change in Control (as defined below), or (e) other material breach of this
Agreement by the Company after written notice of such breach and reasonable
opportunity to cure; and (iii) a “Change in Control” means any of the
following that occurs in a single transaction or series of related
transactions:  (a) the direct or
indirect sale or exchange by the shareholders of the Company of more than fifty
percent (50%) of the voting stock of the Company (other than the sale or
exchange of such voting stock to (A) a trustee or other fiduciary holding
stock under one or more employee benefit plans maintained by the Company, or (B) any
entity that, immediately prior to such sale or exchange, is owned directly or
indirectly by the stockholders of the Company in approximately the same
proportion as their ownership of voting stock in the Company immediately prior
to such sale or exchange); (b) a merger or consolidation in which the
shareholders of the Company immediately before the transaction do not retain,
immediately after the transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting stock of the Company; (c) the sale, exchange, lease or
transfer of all or substantially all of the assets of the Company (unless,
following such transaction, such assets are owned by a company or other entity
and the shareholders of the Company immediately before the transaction have direct
or indirect beneficial ownership of more than fifty percent (50%) of the total
combined voting power of such company or entity) or (d) the complete
liquidation or dissolution of the Company.

 

Notwithstanding the
foregoing provisions of this Section 3, in the event Termination Benefits
under this Agreement are subject to Section 409A of the Internal Revenue
Code of 1968, as amended (the “Code”), then, in lieu of the foregoing
definition and to the extent necessary to comply with the requirements of Section 409A
of the Code, the definition of “Change in Control” for purposes of such
Termination Benefits shall be the definition provided for under Section 409A
of the Code and the regulations or other guidance issued thereunder.

 

4.             Compensation. 
Beginning on the Effective Date and thereafter during the term of
Employee’s employment, the Company will pay Employee a base salary of not less
than $150,000 per year, payable biweekly or semi-monthly in accordance with the
payroll practices of the Company in effect from time to time.  Such base salary may not be reduced and will
be subject to review and potential upward adjustment periodically, but at least
on an annual basis the then base salary will be subject to a minimum increase
of 5%, in accordance with the compensation policies of the Company in effect
from time to time.  During the term of
this Agreement, Employee will also be eligible for discretionary incentive
bonus payments and other incentives, including stock incentives, as may be
determined by the Company’s Board of Directors, to be awarded in accordance
with the compensation policies established by the 

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Company from time to
time.  All of Employee’s compensation
under this Agreement will be subject to deduction and withholding authorized or
required by applicable law.

 

5.             Employee Benefits.  Beginning on the Effective Date and
thereafter during the term of this Agreement, the Company will provide to
Employee such fringe benefits, perquisites, vacation and other benefits that
the Company generally provides to its executive employees.  At a minimum, however, and regardless of
whether other executive employees do not receive the following benefits, the
Company shall provide to Employee (a) health insurance coverage for
Employee, Employee’s spouse and Employee’s dependents at the Company’s sole
expense; (b) four weeks paid vacation; (c) reimbursement for cell
phone and wireless Internet services (e.g., Blackberry service); and (d) annual
CPA license fee and required continuing education courses to maintain said
license. The Company will reimburse Employee for reasonable out-of-pocket
business expenses, including expenses related to frequent flyer programs and
airline club memberships, incurred by Employee and documented in accordance
with the policies of the Company in effect from time to time.  The Company agrees that if Employee is made a
party, is threatened to be made a party to, or is a non-party witness in any
action, suit or proceeding, whether civil, criminal, administrative or
investigative (a “Proceeding”), by reason of the fact that Employee is or was a
trustee, director, officer, fiduciary or employee of the Company or any
affiliate of the Company or is or was serving at the request of the Company or
any affiliate as a trustee, director, officer, member, employee or agent of
another corporation or a partnership, joint venture, trust or other enterprise,
including, without limitation, service with respect to employee benefit plans,
whether or not the basis of such Proceeding is alleged action in an official
capacity as a trustee, director, officer, member, employee or agent while
serving as a trustee, director, officer, member, employee or agent, Employee
shall be indemnified to the fullest extent authorized by Texas law, as the same
exists or may hereafter be amended, against all expenses incurred or suffered
by Employee in connection therewith.  If
the Company maintains a directors’ and officers’ insurance policy, Employee
shall be covered to the same extent as other employees.

 

6.             Section 409A of the Code.  In the event any compensation or benefits
under this Agreement are subject to Section 409A of the Code, then the
Company agrees to pay Employee a sum equivalent on an after-tax basis to the
total sum of money incurred by Employee in the form of taxes, penalties,
attorney’s and/or accountant’s fees or other expenses related to such
application of Section 409A.

 

7.             No Obligation to Third Party.  Employee represents and warrants that
Employee is not under any obligation to any person or other third party and
does not have any other interest that is inconsistent or in conflict with this
Agreement, or which would prevent, limit, or impair Employee’s performance of
any of the covenants hereunder or Employee’s duties as an employee of the
Company.

 

8.            Confidentiality.  In consideration of the benefits provided for
in this Agreement, Employee agrees not to, at any time, either during his
employment or thereafter, divulge, use, publish or in any other manner reveal,
directly or indirectly, to any person, firm, corporation or any other form of
business organization or arrangement and keep in the strictest confidence any
Confidential Information, except, (i) as may be necessary to the
performance of Employee’s duties hereunder, (ii) with the Company’s
express written consent, (iii) to the extent that any 

 

 

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such
information is in or becomes in the public domain other than as a result of
Employee’s breach of any obligations hereunder, or (iv) where required to
be disclosed by court order, subpoena or other government process and in such
event, Employee shall cooperate with the Company in attempting to keep such
information confidential.  Upon the
request of the Company, Employee agrees to promptly deliver to the Company the
originals and all copies, in whatever medium, of all such Confidential
Information.  “Confidential Information,”
as used in this Agreement, shall mean any and all secret, proprietary and
confidential information concerning the business of the Company and its
affiliates, including, without limitation, business and marketing plans,
strategies, models, codes, client information (including client identity and
contacts, client lists, client financial or personal information), business
relationships (including persons, corporations or other entities performing
services on behalf of or otherwise engaged in business transactions with the
Company and its affiliates or their clients), accounts, financial data, know-how,
computer software and related documentation, trade secrets, processes, policies
and/or personnel, and any other information, data or the like that is labeled
confidential or is treated as confidential by the Company.

 

9.              Non-Solicitation.  Employee acknowledges that by virtue of
Employee’s position as Vice President and Chief Financial Officer of the
Company, and Employee’s employment hereunder, he will have advantageous
familiarity with, and knowledge about, the Company and will be instrumental in
establishing and maintaining the goodwill of the Company, which goodwill is the
property of the Company.  Therefore,
Employee agrees that during his employment and for a twelve (12) month period
thereafter, Employee will not on behalf of himself or any other person or
entity, solicit, take away, hire, employ or endeavor to employ any of the
employees of the Company.

 

10.            Non-Disparagement. Employee
acknowledges and agrees that he will not defame or publicly criticize the
services, business, integrity, veracity or personal or professional reputation
of the Company and its officers, directors, partners, executives or agents
thereof in either a professional or personal manner at any time during or
following his employment with the Company. 
The Company agrees that its present and future officers, directors,
partners, executives and agents will not defame or publicly criticize the
services, business, integrity, veracity or personal or professional reputation
of Employee in either a professional or personal manner at any time during or
following his employment with the Company.

 

11.            Enforcement.  If Employee commits a breach, or threatens to
commit a breach, of any of the provisions of Sections 8-10 of this
Agreement, the Company shall have the right and remedy to have the provisions
specifically enforced by any court having jurisdiction, it being acknowledged
and agreed by Employee that the services being rendered hereunder to the
Company are of a special, unique and extraordinary character and that any such
breach or threatened breach will cause irreparable injury to the Company and
that money damages will not provide an adequate remedy to the Company.  Such right and remedy shall be in addition
to, and not in lieu of, any other rights and remedies available to the Company
at law or in equity.  Accordingly,
Employee consents to the issuance of an injunction, whether preliminary or
permanent, consistent with the terms of this Agreement.  In addition, the Company shall have the right
to cease making any payments or provide any benefits to Employee under this
Agreement in the event he breaches or threatens to breach any of the provisions
hereof.

 

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12.            Blue
Pencil.  If, at any time, the
provisions of Sections 8-10 shall be determined to be invalid or
unenforceable under any applicable law, by reason of being vague or
unreasonable as to area, duration or scope of activity, this Agreement shall be
considered divisible and shall become and be immediately amended to only such
area, duration and scope of activity as shall be determined to be reasonable
and enforceable by the court or other body having jurisdiction over the matter
and Employee and the Company agree that this Agreement as so amended shall be
valid and binding as though any invalid or unenforceable provision had not been
included herein.

 

EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ
SECTIONS 8-10 OF THIS AGREEMENT AND HAS HAD THE OPPORTUNITY TO REVIEW ITS
PROVISIONS WITH ANY ADVISORS AS HE CONSIDERED NECESSARY AND THAT EMPLOYEE
UNDERSTANDS THIS AGREEMENT’S CONTENTS AND SIGNIFIES SUCH UNDERSTANDING AND
AGREEMENT BY SIGNING BELOW.

 

13.           Entire Agreement.  This Agreement constitutes the complete
agreement of the parties with respect to the subject matter hereof and supersedes
any prior written, or prior or contemporaneous oral, understandings or
agreements between the parties that relates in any way to the subject matter
hereof.  This Agreement may be amended
only in writing executed by the Company and Employee.

 

14.           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the respective heirs, executors, administrators, legal
representatives and successors of the Company and Employee.

 

15.           Notice.  Any notice required or permitted under this Agreement
must be in writing and will be deemed to have been given when delivered
personally, by telecopy or by overnight courier service or three days after
being sent by mail, postage prepaid, to (a) if to the Company, to the
Company’s principal place of business, or (b) if to Employee, to Employee’s
residence or to Employee’s latest address then contained in the Company’s
records (or to such changed address as such person may subsequently give notice
of in accordance herewith).

 

16.           GOVERNING
LAW.  THIS AGREEMENT WILL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE
LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW, RULE
OR PRINCIPLE THAT MIGHT REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Company and Employee have executed and
delivered this Agreement as of the date first above written.

 

	
   

  	
  MATINEE
  MEDIA CORPORATION   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W.
  Walker

  	
   

  
	
   

  	
  Name:

  	
  Robert W. Walker

  	
   

  
	
   

  	
  Title:

  	
  President
  and CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Kevin W. Mischnick

  	
   

  
	
   

  	
   

  	
  Kevin W. Mischnick

  	
   

  

 

6EXHIBIT
10.1

 

HireRight, Inc.

 

2008 Executive Short-term Incentive Plan

Revised Feb 13, 2008

 

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

  	
   

  	
  80

  	
  %

  
	
  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.

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