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Exhibit 10.1  

 
 

HIRERIGHT, INC.    
    
    2000 STOCK OPTION/STOCK ISSUANCE PLAN
  (as amended in July 2006)    

 
 

ARTICLE ONE    
    
    GENERAL PROVISIONS

I.     PURPOSE OF THE PLAN  

        This 2000 Stock Option/Stock Issuance Plan is intended to promote the interests of HireRight, Inc., a California corporation, by providing eligible persons
in the Corporation's employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue
in such employ or service. 

        Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. 

II.    STRUCTURE OF THE PLAN  

        A.    The
Plan shall be divided into two (2) separate equity programs: 

          (i)  the
Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, and 

         (ii)  the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock directly, either through the
immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent or Subsidiary). 

        B.    The
provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests of all persons under the Plan. 

III.  ADMINISTRATION OF THE PLAN  

        A.    The
Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of
the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the
Committee and reassume all powers and authority previously delegated to the Committee. 

        B.    The
Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for
proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary
or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option grant or stock issuance thereunder. 

IV.    ELIGIBILITY  

        A.    The
persons eligible to participate in the Plan are as follows: 

          (i)  Employees, 

 

         (ii)  non-employee
members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and 

        (iii)  consultants
and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 

        B.    The
Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option Grant Program, which eligible persons are to
receive such grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a
Non-Statutory Option, the time or times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option
is to remain outstanding, and (ii) with respect to stock issuances made under the Stock Issuance Program, which eligible persons are to receive such issuances, the time or times when those
issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares and the consideration to be paid by the Participant for
such shares. 

        C.    The
Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program or to effect stock issuances in accordance
with the Stock Issuance Program. 

V.     STOCK SUBJECT TO THE PLAN  

        A.    The
stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued
over the term of the Plan shall not exceed nine million six thousand (9,006,000) shares. 

        B.    Shares
of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the options expire or terminate
for any reason prior to exercise in full or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and
subsequently repurchased by the Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation's repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent option grants or direct stock issuances under the
Plan. 

        C.    Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities
issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or enlargement
of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of
one or more outstanding shares of the Corporation's preferred stock into shares of Common Stock. 

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   ARTICLE TWO  

OPTION GRANT PROGRAM  

I.     OPTION TERMS  

        Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided,
however, that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to
such options. 

        A.    Exercise Price.    

        1.     The
exercise price per share shall be fixed by the Plan Administrator in accordance with the following provisions: 

          (i)  The
exercise price per share shall not be less than eighty-five percent (85%) of the Fair Market Value per share of Common Stock on the option grant date. 

         (ii)  If
the person to whom the option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair
Market Value per share of Common Stock on the option grant date. 

        2.     The
exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents
evidencing the option, be payable in cash or
check made payable to the Corporation. Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as
follows: 

          (i)  in
shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation's earnings for financial reporting purposes and valued at Fair
Market Value on the Exercise Date, or 

         (ii)  to
the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide
irrevocable instructions (A) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be
withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the
sale. 

        Except
to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 

        B.    Exercise and Term of Options.    Each option shall be exercisable at such time or times,
during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a term in
excess of ten (10) years measured from the option grant date. 

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        C.    Effect of Termination of Service.    

        1.     The
following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death: 

          (i)  Should
the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the Optionee shall have a period of three
(3) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 

         (ii)  Should
Optionee's Service terminate by reason of Disability, then the Optionee shall have a period of twelve (12) months following the date of such cessation of
Service during which to exercise each outstanding option held by such Optionee. 

        (iii)  If
the Optionee dies while holding an outstanding option, then the personal representative of his or her estate or the person or persons to whom the option is
transferred pursuant to the Optionee's will or the laws of inheritance or the Optionee's designated beneficiary or beneficiaries of that option shall have a twelve (12)-month period following the date
of the Optionee's death to exercise such option. 

        (iv)  Under
no circumstances, however, shall any such option be exercisable after the specified expiration of the option term. 

         (v)  During
the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the
option is exercisable on the date of the Optionee's cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall
terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee's cessation of Service, terminate and
cease to be outstanding with respect to any and all option shares for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested. 

        (vi)  Should
Optionee's Service be terminated for Misconduct or should Optionee otherwise engage in Misconduct while holding one or more outstanding options under the Plan,
then all those options shall terminate immediately and cease to remain outstanding. 

        2.     The
Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to: 

          (i)  extend
the period of time for which the option is to remain exercisable following Optionee's cessation of Service or death from the limited period otherwise in effect
for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 

         (ii)  permit
the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested shares of Common Stock
for which such option is exercisable at the time of the Optionee's cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested under the
option had the Optionee continued in Service. 

        D.    Stockholder Rights.    The holder of an option shall have no stockholder rights with
respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares. 

        E.    Unvested Shares.    The Plan Administrator shall have the discretion to grant options
which are exercisable for unvested shares of Common Stock. Should the Optionee cease Service while holding 

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such
unvested shares, the Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be
exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document
evidencing such repurchase right. The Plan Administrator may not impose a vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive than
twenty percent (20%) per year vesting, with the initial vesting to occur not later than one (1) year after the option grant date. However, such limitation shall not be applicable to any option
grants made to individuals who are officers of the Corporation, non-employee Board members or independent consultants. 

        F.    First Refusal Rights.    Until such time as the Common Stock is first registered under
Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in interest) of any shares of Common
Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 

        G.    Limited Transferability of Options.    An Incentive Stock Option shall be exercisable
only by the Optionee during his or her lifetime and shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee's death. A Non-Statutory
Option may be assigned in whole or in part during the Optionee's lifetime to one or more members of the Optionee's family or to a trust established exclusively for one or more such family members or
to Optionee's former spouse, to the extent such assignment is in connection with the Optionee's estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the
person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in
effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. Notwithstanding the
foregoing, the Optionee may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee's death while holding those options. Such beneficiary or beneficiaries shall take the transferred
options subject to all the terms and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the limited time period during which the option may
be exercised following the Optionee's death. 

II.    INCENTIVE OPTIONS  

        The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of
Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to the terms of this
Section II. 

        A.    Eligibility.    Incentive Options may only be granted to Employees. 

        B.    Exercise Price.    The exercise price per share shall not be less than one hundred
percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 

        C.    Dollar Limitation.    The aggregate Fair Market Value of the shares of Common Stock
(determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary)
may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee
holds two (2) or more such options which become exercisable for the first time in the same calendar year, the 

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foregoing
limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 

        D.    10% Stockholder.    If any Employee to whom an Incentive Option is granted is a 10%
Stockholder, then the option term shall not exceed five (5) years measured from the option grant date. 

III.  CORPORATE TRANSACTION  

        A.    The
shares subject to each option outstanding under the Plan at the time of a Corporate Transaction shall automatically vest in full so that each such option shall,
immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of
those shares as fully-vested shares of Common Stock. However, the shares subject to an outstanding option shall not vest on such an accelerated basis if
and to the extent: (i) such option is assumed by the successor corporation (or parent thereof) in the Corporate Transaction and any repurchase rights of the Corporation with respect to the
unvested option shares are concurrently assigned to such successor corporation (or parent thereof) or (ii) such option is to be replaced with a cash incentive program of the successor
corporation which preserves the spread existing on the unvested option shares at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule
applicable to those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. 

        B.    All
outstanding repurchase rights under the Option Grant Program shall also terminate automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 

        C.    Immediately
following the consummation of the Corporate Transaction, all outstanding options shall terminate and cease to be outstanding, except to the extent assumed by
the successor corporation (or parent thereof). 

        D.    Each
option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the
number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option been exercised immediately prior to such Corporate
Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction
and (ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities
shall remain the same. To the extent the actual holders of the Corporation's outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Corporate Transaction,
the successor corporation may, in connection with the assumption of the outstanding options under this Plan, substitute one or more shares of its own common stock with a fair market value equivalent
to the cash consideration paid per share of Common Stock in such Corporate Transaction. 

        E.    The
Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time while the option remains outstanding, to structure
one or more options so that those options shall automatically accelerate and vest in full (and any repurchase rights of the Corporation with respect to the unvested shares subject to those options
shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction. 

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        F.     The
Plan Administrator shall also have full power and authority, exercisable either at the time the option is granted or at any time while the option remains outstanding,
to structure such option so that the shares subject to that option will automatically vest on an accelerated basis should the Optionee's Service terminate by reason of an Involuntary Termination
within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed and the repurchase rights applicable to
those shares do not otherwise terminate. Any option so accelerated shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. In
addition, the Plan Administrator may provide that one or more of the Corporation's outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination
shall immediately terminate on an accelerated basis, and the shares subject to those terminated rights shall accordingly vest at that time. 

        G.    The
portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as an Incentive Option only to the extent the
applicable One Hundred Thousand Dollar limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws. 

        H.    The
grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

IV.    CANCELLATION AND REGRANT OF OPTIONS  

        The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of
any or all outstanding options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share
based on the Fair Market Value per share of Common Stock on the new option grant date. 

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   ARTICLE THREE  

STOCK ISSUANCE PROGRAM  

I.     STOCK ISSUANCE TERMS  

        Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such
stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 

        A.    Purchase Price.    

        1.     The
purchase price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the Fair Market Value per share
of Common Stock on the issue date. However, the purchase price per share of Common Stock issued to a 10% Stockholder shall not be less than one hundred and ten percent (110%) of such Fair Market
Value. 

        2.     Subject
to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program for any of the following items of
consideration which the Plan Administrator may deem appropriate in each individual instance: 

          (i)  cash
or check made payable to the Corporation, or 

         (ii)  past
services rendered to the Corporation (or any Parent or Subsidiary). 

        B.    Vesting Provisions.    

        1.     Shares
of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest
in one or more installments over the Participant's period of Service or upon attainment of specified performance objectives. However, the Plan Administrator may not impose a vesting schedule upon any
stock issuance effected under the Stock Issuance Program which is more restrictive than twenty percent (20%) per year vesting, with initial vesting to occur not later than one (1) year after
the issuance date. Such limitation shall not apply to any Common Stock issuances made to the officers of the Corporation, non-employee Board members or independent consultants. 

        2.     Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the Participant may have the right to
receive with respect to the Participant's unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant's
unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 

        3.     The
Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under the Stock Issuance Program, whether or not
the Participant's interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. 

        4.     Should
the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance Program or should the
performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the
Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash 

8

 

equivalent
(including the Participant's purchase-money indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid
principal balance of any outstanding purchase-money note of the Participant attributable to such surrendered shares. 

        5.     The
Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto)
which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver
shall result in the immediate vesting of the Participant's interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the
Participant's cessation of Service or the attainment or non-attainment of the applicable performance objectives. 

        C.    First Refusal Rights.    Until such time as the Common Stock is first registered under
Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of
Common Stock issued under the Stock Issuance Program. Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document
evidencing such right. 

II.    CORPORATE TRANSACTION  

        A.    Upon
the occurrence of a Corporate Transaction, all outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and the shares of Common
Stock subject to those terminated rights shall immediately vest in full, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 

        B.    The
Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested shares are issued or any time while the Corporation's
repurchase rights with respect to those shares remain outstanding, to provide that those rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject to those
terminated rights shall immediately vest, in the event the Participant's Service should subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed
eighteen (18) months) following the effective date of any Corporate Transaction in which those repurchase rights are assigned to the successor corporation (or parent thereof). 

III.  SHARE ESCROW/LEGENDS  

        Unvested shares may, in the Plan Administrator's discretion, be held in escrow by the Corporation until the Participant's interest in such shares vests or may be
issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 

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ARTICLE FOUR    
    
    MISCELLANEOUS    
    

I.     FINANCING  

        The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the purchase price for shares
issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in one or more installments and secured by the purchased shares. However,
any promissory note delivered by a consultant must be secured by collateral in addition to the purchased shares of Common Stock. In no event may the maximum credit available to the Optionee or
Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the purchased shares plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the option exercise or share purchase. 

II.    EFFECTIVE DATE AND TERM OF PLAN  

        A.    The
Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued under the Plan, until the
Plan is approved by the Corporation's stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board's adoption of the Plan, then all options
previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the
Plan Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan. 

        B.    The
Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured
from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination
of all outstanding options in connection with a Corporate Transaction. All options and unvested stock issuances outstanding at the time of a clause (i) termination event shall continue to have
full force and effect in accordance with the provisions of the documents evidencing those options or issuances. 

III.  AMENDMENT OF THE PLAN  

        A.    The
Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall
adversely affect the rights and obligations with respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment
or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 

        B.    Options
may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program which are in each instance in excess of the number of
shares of Common Stock then available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow until there is obtained stockholder approval
of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after
the date the first such excess grants or issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall terminate and cease to be outstanding and
(ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together
with interest (at the applicable Short Term Federal Rate) 

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for
the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 

IV.    USE OF PROCEEDS  

        Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 

V.     WITHHOLDING  

        The Corporation's obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any
shares issued under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 

VI.   REGULATORY APPROVALS  

        The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any
option or (ii) under the Stock Issuance Program shall be subject to the Corporation's procurement of all approvals and permits required by regulatory authorities having jurisdiction over the
Plan, the options granted under it and the shares of Common Stock issued pursuant to it. 

VII. NO EMPLOYMENT OR SERVICE RIGHTS  

        Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby expressly
reserved by each, to terminate such person's Service at any time for any reason, with or without cause. 

VIII. FINANCIAL REPORTS  

        The Corporation shall deliver a balance sheet and an income statement at least annually to each individual holding an outstanding option under the Plan, unless
such individual is a key Employee whose duties in connection with the Corporation (or any Parent or Subsidiary) assure such individual access to equivalent information. 

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APPENDIX

        The
following definitions shall be in effect under the Plan: 

        A.    Board shall mean the Corporation's Board of Directors. 

        B.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        C.    Committee shall mean a committee of two (2) or more Board members appointed by the Board to exercise one or more
administrative functions under the Plan. 

        D.    Common Stock shall mean the Corporation's common stock. 

        E.    Corporate Transaction shall mean either of the following stockholder-approved transactions to which the Corporation is a
party: 

          (i)  a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities
are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

         (ii)  the
sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.     Corporation shall mean HireRight, Inc., a California corporation, and any successor corporation to all or
substantially all of the assets or voting stock of HireRight, Inc. which shall by appropriate action adopt the Plan. 

        G.    Disability shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator deems warranted
under the circumstances. 

        H.    Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        I.     Exercise Date shall mean the date on which the Corporation shall have received written notice of the option exercise. 

        J.     Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 

          (i)  If
the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall Street
Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding
date for which such quotation exists. 

         (ii)  If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

A-1

 

        (iii)  If
the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the
Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 

        K.    Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

        L.    Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason of: 

          (i)  such
individual's involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 

         (ii)  such
individual's voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and
responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any
corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual's place of employment by more than fifty (50) miles,
provided and only if such change, reduction or relocation is effected without the individual's consent. 

        M.   Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any
unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person
adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the
Corporation (or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or
omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct. 

        N.    1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

        O.    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

        P.     Option Grant Program shall mean the option grant program in effect under the Plan. 

        Q.    Optionee shall mean any person to whom an option is granted under the Plan. 

        R.    Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        S.     Participant shall mean any person who is issued shares of Common Stock under the Stock Issuance Program. 

        T.     Plan shall mean the Corporation's 2000 Stock Option/Stock Issuance Plan, as set forth in this document. 

        U.    Plan Administrator shall mean either the Board or the Committee acting in its capacity as administrator of the Plan. 

        V.     Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity
of an Employee, a non-employee member of the board of 

A-2

 

directors
or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant. 

        W.    Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 

        X.    Stock Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at the time of
issuance of shares of Common Stock under the Stock Issuance Program. 

        Y.    Stock Issuance Program shall mean the stock issuance program in effect under the Plan. 

        Z.    Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        AA. 10% Stockholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 

A-3

 
 

HIRERIGHT, INC.    
    
    NOTICE OF GRANT OF STOCK OPTION

        Notice
is hereby given of the following option grant (the "Option") to purchase shares of the Common Stock of HireRight, Inc. (the "Corporation"): 

	

 	
Optionee:	

    

	

 	
Grant Date:	

    

	

 	
Vesting Commencement Date:	

    

	

 	
Exercise Price: $	

    
	

per share
	

 	
Number of Option Shares:	

    
	

shares of Common Stock
	

 	
Expiration Date:	

    

	

 	
Type of Option:	

_______ Incentive Stock Option
	

 	

 	

_______ Non-Statutory Stock Option
	

 	
Date Exercisable:    Immediately Exercisable
	

 	
Vesting Schedule:    The Option Shares shall initially be unvested and subject to repurchase by the Corporation at the Exercise Price paid per share. Optionee shall acquire
a vested interest in, and the Corporation's repurchase right shall accordingly lapse with respect to, (i) twenty-five percent (25%) of the Option Shares upon Optionee's completion of one (1) year of Service measured from the Vesting
Commencement Date and (ii) the balance of the Option Shares in a series of thirty-six (36) successive equal monthly installments upon Optionee's completion of each additional month of Service over the thirty-six (36)-month period measured
from the first anniversary of the Vesting Commencement Date. In no event shall any additional Option Shares vest after Optionee's cessation of Service.

        Optionee
understands and agrees that the Option is granted subject to and in accordance with the terms of the HireRight, Inc. 2000 Stock Option/Stock Issuance Plan (the "Plan").
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. 

        Optionee
understands that any Option Shares purchased under the Option will be subject to the terms set forth in the Stock Purchase Agreement attached hereto as Exhibit B.
Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit C. 

        REPURCHASE RIGHTS.    OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED
UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN REPURCHASE RIGHTS AND RIGHTS OF FIRST REFUSAL EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE SPECIFIED IN THE
ATTACHED STOCK PURCHASE AGREEMENT.

        At Will Employment.    Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

        Definitions.    All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached
Stock Option Agreement. 

	
DATED:                        ,
            	
 	

 	

 
	

 	
 	
HIRERIGHT, INC.
	

 	
 	

By:	

    

	

 	
 	

Title:	

    

	

 	
 	

 	

    
OPTIONEE
	

 	
 	

Address:	

    

	

 	
 	

 	

    

Attachments:

Exhibit A—Stock Option Agreement

Exhibit B—Stock Purchase Agreement

Exhibit C—2000 Stock Option/Stock Issuance Plan  

 
 

EXHIBIT A    
    
    STOCK OPTION AGREEMENT    
    

 
 

EXHIBIT B    
    
    STOCK PURCHASE AGREEMENT    
    

 
 

EXHIBIT C    
    
    2000 STOCK OPTION/STOCK ISSUANCE PLAN    
    

NON-EXEMPT EMPLOYEE
  UNDER FAIR LABOR STANDARDS ACT  

 
  HIRERIGHT, INC.    
    
    NOTICE OF GRANT OF STOCK OPTION    
    

        Notice is hereby given of the following option grant (the "Option") to purchase shares of the Common Stock of HireRight, Inc. (the "Corporation"): 

	

 	
Optionee:	

    

	

 	
Grant Date:	

    

	

 	
Vesting Commencement Date:	

    

	

 	
Exercise Price: $	

    
	

per share
	

 	
Number of Option Shares:	

    
	

shares of Common Stock
	

 	
Expiration Date:	

    

	

 	
Type of Option:	

_______ Incentive Stock Option
	

 	

 	

_______ Non-Statutory Stock Option
	

 	
Date Exercisable:    The Option shall become exercisable for all the Option Shares upon the Optionee's completion of six (6) months of Service measured from the Grant
Date.
	

 	
Vesting Schedule:    The Option Shares shall initially be unvested and subject to repurchase by the Corporation at the Exercise Price paid per share. Optionee shall acquire
a vested interest in, and the Corporation's repurchase right shall accordingly lapse with respect to, (i) twenty-five percent (25%) of the Option Shares upon Optionee's completion of one (1) year of Service measured from the Vesting
Commencement Date and (ii) the balance of the Option Shares in a series of thirty-six (36) successive equal monthly installments upon Optionee's completion of each additional month of Service over the thirty-six (36)-month period measured
from the first anniversary of the Vesting Commencement Date. In no event shall any additional Option Shares vest after Optionee's cessation of Service.

        Optionee
understands and agrees that the Option is granted subject to and in accordance with the terms of the HireRight, Inc. 2000 Stock Option/Stock Issuance Plan (the "Plan").
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. 

        Optionee
understands that any Option Shares purchased under the Option will be subject to the terms set forth in the Stock Purchase Agreement attached hereto as Exhibit B.
Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit C. 

        REPURCHASE RIGHTS.    OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED
UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN REPURCHASE RIGHTS AND RIGHTS OF FIRST REFUSAL EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE SPECIFIED IN THE
ATTACHED STOCK PURCHASE AGREEMENT.

        At Will Employment.    Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

 

        Definitions.    All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached
Stock Option Agreement. 

	
DATED:                        ,
            	
 	

 	

 
	

 	
 	
HIRERIGHT, INC.
	

 	
 	

By:	

    

	

 	
 	

Title:	

    

	

 	
 	

 	

    
OPTIONEE
	

 	
 	

Address:	

    

	

 	
 	

 	

    

Attachments:

Exhibit A—Stock Option Agreement

Exhibit B—Stock Purchase Agreement

Exhibit C—2000 Stock Option/Stock Issuance Plan  

2

 
 

EXHIBIT A    
    
    STOCK OPTION AGREEMENT    
    

 
 

EXHIBIT B    
    
    STOCK PURCHASE AGREEMENT    
    

 
 

EXHIBIT C    
    
    2000 STOCK OPTION/STOCK ISSUANCE PLAN    
    

EXECUTIVE OFFICER  

 
  HIRERIGHT, INC.    
    
    NOTICE OF GRANT OF STOCK OPTION    
    

        Notice is hereby given of the following option grant (the "Option") to purchase shares of the Common Stock of HireRight, Inc. (the "Corporation"): 

	 	Optionee:	 	

	

 	
Grant Date:	
 	

	 	 	 	 
	 	Vesting Commencement Date:	 	

	 	 	 	 	 	 
	 	Exercise Price:  $	 	
	 	per share

	 	 	 	 	 	 
	 	Number of Option Shares:	 	
	 	shares of Common Stock

	 	 	 	 
	 	Expiration Date:	 	

	 	 	 	 	 	 
	 	Type of Option:	 	
	 	Incentive Stock Option
	 	 	 	
	 	Non-Statutory Stock Option

	 	 
	 	Date Exercisable:    Immediately Exercisable
	

 	
Vesting Schedule:    The Option Shares shall initially be unvested and subject to repurchase by the Corporation at the Exercise Price paid per share. Optionee shall
acquire a vested interest in, and the Corporation's repurchase right shall accordingly lapse with respect to, (i) twelve and one-half percent (12.5%) of the Option Shares upon Optionee's completion of six (6) months of Service measured from
the Vesting Commencement Date and (ii) the balance of the Option Shares in a series of forty-two (42) successive equal monthly installments upon Optionee's completion of each additional month of Service over the forty-two (42)-month period
measured from the six (6) month anniversary of the Vesting Commencement Date. In no event shall any additional Option Shares vest after Optionee's cessation of Service.

        Optionee
understands and agrees that the Option is granted subject to and in accordance with the terms of the HireRight, Inc. 2000 Stock Option/Stock Issuance Plan (the "Plan").
Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. 

        Optionee
understands that any Option Shares purchased under the Option will be subject to the terms set forth in the Stock Purchase Agreement attached hereto as Exhibit B.
Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit C. 

        REPURCHASE RIGHTS. OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN
REPURCHASE RIGHTS AND RIGHTS OF FIRST REFUSAL EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE SPECIFIED IN THE ATTACHED STOCK PURCHASE AGREEMENT.

        At Will Employment.    Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

 

        Definitions.    All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached
Stock Option Agreement. 

DATED:                         ,         

	

 	
 	

 	
 	

 
	 	 	HIRERIGHT, INC.
	

 	
 	

By:	
 	

	

 	
 	

Title:	
 	

	

 	
 	

 	
 	

	 	 	 	 	OPTIONEE
	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

Attachments:
  Exhibit A—Stock Option Agreement

Exhibit B—Stock Purchase Agreement

Exhibit C—2000 Stock Option/Stock Issuance Plan  

2

EXHIBIT A  

STOCK OPTION AGREEMENT  

EXHIBIT B  

STOCK PURCHASE AGREEMENT  

EXHIBIT C  

2000 STOCK OPTION/STOCK ISSUANCE PLAN  

   HIRERIGHT, INC.  

STOCK OPTION AGREEMENT  

RECITALS  

        A.    The
Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of directors of
any Parent or Subsidiary and consultants and other independent advisors in the service of the Corporation (or any Parent or Subsidiary). 

        B.    Optionee
is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation's grant of an option to Optionee. 

        C.    All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

        NOW, THEREFORE, it is hereby agreed as follows: 

        1.    Grant of Option.    The Corporation hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price. 

        2.    Option Term.    This option shall have a term of ten (10) years measured from the
Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 

        3.    Limited Transferability.    

        (a)   This
option shall be neither transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee's death and may be exercised,
during Optionee's lifetime, only by Optionee. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee's death while holding this option. Such beneficiary or beneficiaries shall take the transferred option
subject to all the terms and conditions of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following
Optionee's death. 

        (b)   If
this option is designated a Non-Statutory Option in the Grant Notice, then this option may be assigned in whole or in part during Optionee's lifetime to
one or more members of Optionee's family or to a trust established for the exclusive benefit of one or more such family members or to Optionee's former spouse, to the extent such assignment is in
connection with the Optionee's estate plan or pursuant to a domestic relations order. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the
option pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment. 

        4.    Dates of Exercise.    This option shall become exercisable for the Option Shares in one
or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5 or 6. 

1

 

        5.    Cessation of Service.    The option term specified in Paragraph 2 shall terminate
(and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 

        (a)   Should
Optionee cease to remain in Service for any reason (other than death, Disability or Misconduct) while holding this option, then Optionee shall have a period of
three (3) months
(commencing with the date of such cessation of Service) during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date. 

        (b)   Should
Optionee die while holding this option, then the personal representative of Optionee's estate or the person or persons to whom the option is transferred pursuant
to Optionee's will or the laws of inheritance shall have the right to exercise this option. However, if Optionee has designated one or more beneficiaries of this option, then those persons shall have
the exclusive right to exercise this option following Optionee's death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the  earlier of
(i) the expiration of the twelve (12)-month period measured from the date of Optionee's death or (ii) the Expiration Date. 

        (c)   Should
Optionee cease Service by reason of Disability while holding this option, then Optionee shall have a period of twelve (12) months (commencing with the date
of such cessation of Service) during which to exercise this option. In no event shall this option be exercisable at any time after the Expiration Date. 

        Note:    Exercise of this option on a date later than three (3) months following cessation of Service due to Disability
will result in loss of favorable Incentive Option treatment, unless such Disability constitutes Permanent Disability. In the event that Incentive Option
treatment is not available, this option will be taxed as a Non-Statutory Option upon exercise. 

        (d)   During
the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares in
which Optionee is, at the time of Optionee's cessation of Service, vested pursuant to the Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of
Paragraph 6. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for any vested Option Shares
for which the option has not been exercised. To the extent Optionee is not vested in one or more Option Shares at the time of Optionee's cessation of Service, this option shall immediately terminate
and cease to be outstanding with respect to those shares. 

        (e)   Should
Optionee's Service be terminated for Misconduct or should Optionee otherwise engage in Misconduct while this option is outstanding, then this option shall
terminate immediately and cease to remain outstanding. 

        6.    Accelerated Vesting.    

        (a)   In
the event of any Corporate Transaction, the Option Shares at the time subject to this option but not otherwise vested shall automatically vest in full so that this
option shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the Option Shares as fully-vested shares and may be exercised for any or all of those
Option Shares as vested shares. However, the Option Shares shall not vest on such an accelerated basis if and to the extent: (i) this option is
assumed by the successor corporation (or parent thereof) in the Corporate Transaction and the Corporation's repurchase rights with respect to the unvested Option Shares are assigned to such successor
corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor 

2

 

corporation
which preserves the spread existing on the unvested Option Shares at the time of the Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the Exercise
Price payable for such shares) and provides for subsequent payout in accordance with the same Vesting Schedule applicable to those unvested Option Shares as set forth in the Grant Notice. 

        (b)   Immediately
following the Corporate Transaction, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or
parent thereof) in connection with the Corporate Transaction. 

        (c)   If
this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to
apply to the number and class of securities which would have been issuable to Optionee in consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the
extent the actual holders of the Corporation's outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Corporate Transaction, the successor corporation may,
in connection with the assumption of this option, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in
such Corporate Transaction. 

        (d)   This
Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

        7.    Adjustment in Option Shares.    Should any change be made to the Common Stock by reason
of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in order to reflect such change
and thereby preclude a dilution or enlargement of benefits hereunder. 

        8.    Stockholder Rights.    The holder of this option shall not have any stockholder rights
with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become the record holder of the purchased shares. 

        9.    Manner of Exercising Option.    

        (a)   In
order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or
persons exercising the option) must take the following actions: 

          (i)  Execute
and deliver to the Corporation a Purchase Agreement for the Option Shares for which the option is exercised. 

         (ii)  Pay
the aggregate Exercise Price for the purchased shares in one or more of the following forms: 

        (A)  cash
or check made payable to the Corporation; or 

        (B)  a
promissory note payable to the Corporation, but only to the extent authorized by the Plan Administrator in accordance with Paragraph 14. 

3

 

        Should
the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the Exercise Price may also be paid as follows: 

        (C)  in
shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the
Corporation's earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or 

        (D)  to
the extent the option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or
persons exercising the option) shall concurrently provide irrevocable instructions (a) to a Corporation-designated brokerage firm to effect
the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for
the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and (b) to the Corporation to
deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 

        Except
to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Purchase Agreement delivered
to the Corporation in connection with the option exercise. 

        (iii)  Furnish
to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

        (iv)  Execute
and deliver to the Corporation such written representations as may be requested by the Corporation in order for it to comply with the applicable requirements of
Federal and state securities laws. 

         (v)  Make
appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income
and employment tax withholding requirements applicable to the option exercise. 

        (b)   As
soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a
certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 

        (c)   In
no event may this option be exercised for any fractional shares. 

        10.    REPURCHASE RIGHTS.    ALL OPTION SHARES
ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE SUBJECT TO CERTAIN RIGHTS OF THE CORPORATION AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PURCHASE
AGREEMENT.

        11.    Compliance with Laws and Regulations.    

        (a)   The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable
requirements of law relating
thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and
issuance. 

        (b)   The
inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale
of any 

4

 

Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have
been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 

        12.    Successors and Assigns.    Except to the extent otherwise provided in
Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee's assigns and the
legal representatives, heirs and legatees of Optionee's estate. 

        13.    Notices.    Any notice required to be given or delivered to the Corporation under the
terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee's signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail,
postage prepaid and properly addressed to the party to be notified. 

        14.    Financing.    The Plan Administrator may, in its absolute discretion and without any
obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a full-recourse, interest-bearing promissory note secured by those Option
Shares. The payment schedule in effect for any such promissory note shall be established by the Plan Administrator in its sole discretion. 

        Note:    If the Optionee is a consultant, then the promissory note delivered in payment of the Exercise Price must be secured by
collateral other than the purchased Option Shares. 

        15.    Construction.    This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest in this option. 

        16.    Governing Law.    The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State's conflict-of-laws rules. 

        17.    Stockholder Approval.    If the Option Shares covered by this Agreement exceed, as of
the Grant Date, the number of shares of Common Stock which may be issued under the Plan as last approved by the stockholders, then this option shall be void with respect to such excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. 

        18.    Additional Terms Applicable to an Incentive Option.    In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also apply to the grant: 

        (a)   This
option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares:
(i) more than three (3) months after the date Optionee ceases to be an Employee for any reason other than death or Permanent Disability or (ii) more than twelve (12) months
after the date Optionee ceases to be an Employee by reason of Permanent Disability. 

        (b)   This
option shall not become exercisable in the calendar year in which granted if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of
the Common Stock for which this option would otherwise first become exercisable in such calendar year would, when added to the aggregate value (determined as of the respective date 

5

 

or
dates of grant) of the Common Stock and any other securities for which one or more other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option
plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. To the extent the
exercisability of this option is deferred by reason of the foregoing limitation, the deferred portion shall become exercisable in the first calendar year or years thereafter in which the One Hundred
Thousand Dollar ($100,000) limitation of this Paragraph 18(b) would not be contravened, but such deferral shall in all events end immediately prior to the effective date of a Corporate
Transaction in which this option is not to be assumed, whereupon the option shall become immediately exercisable as a Non-Statutory Option for the deferred portion of the Option Shares. 

        (c)   Should
Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar
year as this option, then the foregoing limitations on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 

6

   APPENDIX

        The
following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Stock Option Agreement. 

        B.    Board shall mean the Corporation's Board of Directors. 

        C.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        D.    Common Stock shall mean the Corporation's common stock. 

        E.    Corporate Transaction shall mean either of the following stockholder-approved transactions to which the Corporation is a
party: 

          (i)  a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities
are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

         (ii)  the
sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.     Corporation shall mean HireRight, Inc., a California corporation, and any successor corporation to all or
substantially all of the assets or voting stock of HireRight, Inc. which shall be appropriate action assume this option. 

        G.    Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the circumstances.
Disability shall be deemed to constitute Permanent Disability in the event that such Disability is expected to result in death or has lasted or can be
expected to last for a continuous period of twelve (12) months or more. 

        H.    Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        I.     Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of
the Agreement. 

        J.     Exercise Price shall mean the exercise price payable per Option Share as specified in the Grant Notice. 

        K.    Expiration Date shall mean the date on which the option expires as specified in the Grant Notice. 

        L.    Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 

          (i)  If
the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall Street
Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding
date for which such quotation exists. 

         (ii)  If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in 

A-1

 

question
on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

        (iii)  If
the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the
Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 

        M.   Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

        N.    Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has
been informed of the basic terms of the option evidenced hereby. 

        O.    Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

        P.     Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or
disclosure by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely affecting the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or
Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or
omissions shall not be deemed, for purposes of the Plan or this Agreement, to constitute grounds for termination for Misconduct. 

        Q.    1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

        R.    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

        S.     Option Shares shall mean the number of shares of Common Stock subject to the option. 

        T.     Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

        U.    Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        V.     Plan shall 

        W.    mean
the Corporation's 2000 Stock Option/Stock Issuance Plan. 

        X.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

        Y.    Purchase Agreement shall mean the stock purchase agreement in substantially the form of Exhibit B to the Grant
Notice. 

A-2

 

        Z.    Service shall mean the Optionee's performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an Employee, a non-employee member of the board of directors or an independent consultant. 

        AA. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange. 

        BB.  Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

        CC. Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant to which the Optionee is to vest
in the Option Shares in a series of installments over his or her period of Service. 

A-3

ADDENDUM

TO

STOCK OPTION AGREEMENT  

        The following provisions are hereby incorporated into, and are hereby made a part of, that certain Stock Option Agreement (the "Option Agreement") by and between
HireRight, Inc. (the "Corporation") and                        ("Optionee") evidencing the stock option (the "Option")
granted on this date to Optionee under the terms of the Corporation's 2000 Stock
Option/Stock Issuance Plan, and such provisions shall be effective immediately. All capitalized terms in this Addendum, to the extent not otherwise defined herein, shall have the meanings assigned to
them in the Option Agreement. 

INVOLUNTARY TERMINATION FOLLOWING

CORPORATE TRANSACTION  

        1.     If
the Option is to be assumed by the successor corporation (or the parent thereof) in connection with a Corporate Transaction, then none of the Option Shares shall, in
accordance with Paragraph 6 of the Option Agreement, vest on an accelerated basis upon the occurrence of that Corporate Transaction, and Optionee shall accordingly continue, over his or her
period of Service following the Corporate Transaction, to vest in the Option Shares in one or more installments in accordance with the provisions of the Option Agreement. However, upon an Involuntary
Termination of Optionee's Service within eighteen (18) months following such Corporate Transaction, all the Option Shares at the time subject to the Option shall automatically vest in full on
an accelerated basis so that the Option shall immediately become exercisable for all the Option Shares as fully-vested shares and may be exercised for any or all of those Option Shares as vested
shares. The Option shall remain so exercisable until the earlier of (i) the Expiration Date or (ii) the expiration of the one
(1)-year period measured from the date of the Involuntary Termination. 

        2.     For
purposes of this Addendum, an Involuntary Termination shall mean the termination of Optionee's Service by reason of: 

          (i)  Optionee's
involuntary dismissal or discharge by the Corporation for reasons other than for Misconduct, or 

         (ii)  Optionee's
voluntary resignation following (A) a change in Optionee's position with the Corporation (or Parent or Subsidiary employing Optionee) which materially
reduces Optionee's duties and
responsibilities or the level of management to which he or she reports, (B) a reduction in Optionee's level of compensation (including base salary, fringe benefits and target bonus under any
corporate-performance based incentive programs) by more than fifteen percent (15%) or (C) a relocation of Optionee's place of employment by more than fifty (50) miles, provided and only
if such change, reduction or relocation is effected by the Corporation without Optionee's consent. 

        3.     The
provisions of Paragraph 1 of this Addendum shall govern the period for which the Option is to remain exercisable following the Involuntary Termination of
Optionee's Service within eighteen (18) months after the Corporate Transaction and shall supersede any provisions to the contrary in Paragraph 5 of the Option Agreement. The provisions
of this Addendum shall also supersede any provisions to the contrary in Paragraph 18 of the Option Agreement concerning the deferred exercisability of the Option. 

        IN WITNESS WHEREOF, HireRight, Inc. has caused this Addendum to be executed by its duly-authorized officer as of the
Effective Date specified below. 

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

Title:	

 
	 	 	 	

EFFECTIVE DATE:                         ,
        

 
 

HIRERIGHT, INC.    
    
    STOCK PURCHASE AGREEMENT    
    

        AGREEMENT made this            day
of                        ,            by and between HireRight,
 Inc.,
a California corporation, and                        , Optionee under the Corporation's 2000 Stock Option/Stock Issuance Plan.

        All
capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the attached Appendix. 

        A.    EXERCISE OF OPTION    

        1.    Exercise.    Optionee hereby purchases            shares of Common Stock (the
"Purchased Shares") pursuant to that certain option (the "Option") granted Optionee on                        ,
            (the "Grant Date") to purchase up
to                        shares of Common Stock (the
"Option Shares") under the Plan at the exercise price of $                        per share (the "Exercise Price"). 

        2.    Payment.    Concurrently with the delivery of this Agreement to the Corporation,
Optionee shall pay the Exercise Price for the Purchased Shares in accordance with the provisions of the Option Agreement and shall deliver whatever additional documents may be required by the Option
Agreement as a condition for exercise, together with a duly-executed blank Assignment Separate from Certificate (in the form attached hereto as Exhibit I) with respect to the
Purchased Shares. 

        3.    Stockholder Rights.    Until such time as the Corporation exercises the Repurchase Right
or the First Refusal Right, Optionee (or any successor in interest) shall have all the rights of a stockholder (including voting, dividend and liquidation rights) with respect to the Purchased Shares,
subject, however, to the transfer restrictions of Articles B and C. 

        B.    SECURITIES LAW COMPLIANCE    

        1.    Restricted Securities.    The Purchased Shares have not been registered under the 1933
Act and are being issued to Optionee in reliance upon the exemption from such registration provided by SEC Rule 701 for stock issuances under compensatory benefit plans such as the Plan.
Optionee hereby confirms that Optionee has been informed that the Purchased Shares are restricted securities under the 1933 Act and may not be resold or transferred unless the Purchased Shares are
first registered under the Federal securities laws or unless an exemption from such registration is available. Accordingly, Optionee hereby acknowledges that Optionee is prepared to hold the Purchased
Shares for an indefinite period and that Optionee is aware that SEC Rule 144 issued under the 1933 Act which exempts certain resales of unrestricted securities is not presently available to
exempt the resale of the Purchased Shares from the registration requirements of the 1933 Act. 

        2.    Restrictions on Disposition of Purchased Shares.    Optionee shall make no disposition
of the Purchased Shares (other than a Permitted Transfer) unless and until there is compliance with all of the following requirements: 

          (i)  Optionee
shall have provided the Corporation with a written summary of the terms and conditions of the proposed disposition. 

         (ii)  Optionee
shall have complied with all requirements of this Agreement applicable to the disposition of the Purchased Shares. 

        (iii)  Optionee
shall have provided the Corporation with written assurances, in form and substance satisfactory to the Corporation, that (a) the proposed disposition
does not require registration of the Purchased Shares under the 1933 Act or (b) all appropriate action necessary for compliance with the registration requirements of the 1933 Act or any
exemption from registration available under the 1933 Act (including Rule 144) has been taken. 

        The
Corporation shall not be required (i) to transfer on its books any Purchased Shares which have been sold or transferred in
violation of the provisions of this Agreement or (ii) to treat as the 

 

owner
of the Purchased Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee to whom the Purchased Shares have been transferred in contravention of this Agreement. 

        3.    Restrictive Legends.    The stock certificates for the Purchased Shares shall be
endorsed with one or more of the following restrictive legends: 

        "The
shares represented by this certificate have not been registered under the Securities Act of 1933. The shares may not be sold or offered for sale in the absence of (a) an
effective registration statement for the shares under such Act, (b) a "no action" letter of the Securities and Exchange Commission with respect to such sale or offer or (c) satisfactory
assurances to the Corporation that registration under such Act is not required with respect to such sale or offer." 

        "The
shares represented by this certificate are subject to certain repurchase rights and rights of first refusal granted to the Corporation and accordingly may not be sold, assigned,
transferred, encumbered, or in any manner disposed of except in conformity with the terms of a written agreement
dated                        ,            between the Corporation and
the registered
holder of the shares (or the predecessor in interest to the shares). A copy of such agreement is maintained at the Corporation's principal corporate offices." 

        C.    TRANSFER RESTRICTIONS    

        1.    Restriction on Transfer.    Except for any Permitted Transfer, Optionee shall not
transfer, assign, encumber or otherwise dispose of any of the Purchased Shares which are subject to the Repurchase Right. In addition, Purchased Shares which are released from the Repurchase Right
shall not be transferred, assigned, encumbered or otherwise disposed of in contravention of the First Refusal Right or the Market Stand-Off. 

        2.    Transferee Obligations.    Each person (other than the Corporation) to whom the
Purchased Shares are transferred by means of a Permitted Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Corporation that such person is bound
by the provisions of this Agreement and that the transferred shares are subject to (i) the Repurchase Right, (ii) the First Refusal Right and (iii) the Market
Stand-Off, to the same extent such shares would be so subject if retained by Optionee. 

        3.    Market Stand-Off.    

        (a)   In
connection with any underwritten public offering by the Corporation of its equity securities pursuant to an effective registration statement filed under the 1933 Act,
including the Corporation's initial public offering, Owner shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for
value or otherwise agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of the Corporation or its underwriters. Such restriction
(the "Market Stand-Off") shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Corporation or
such underwriters.
In no event, however, shall such period exceed one hundred eighty (180) days, and the Market Stand-Off shall in no event be applicable to any underwritten public offering effected
more than two (2) years after the effective date of the Corporation's initial public offering. 

        (b)   Owner
shall be subject to the Market Stand-Off provided and only if the officers and directors of the
Corporation are also subject to similar restrictions. 

        (c)   Any
new, substituted or additional securities which are by reason of any Recapitalization or Reorganization distributed with respect to the Purchased Shares shall be 

2

 

immediately
subject to the Market Stand-Off, to the same extent the Purchased Shares are at such time covered by such provisions. 

        (d)   In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Purchased Shares until the
end of the applicable stand-off period. 

        D.    REPURCHASE RIGHT    

        1.    Grant.    The Corporation is hereby granted the right (the "Repurchase Right"),
exercisable at any time during the sixty (60)-day period following the date Optionee ceases for any reason to remain in Service or (if later) during the sixty (60)-day period
following the execution date of this Agreement, to repurchase at the Exercise Price any or all of the Purchased Shares in which Optionee is not, at the time of his or her cessation of Service, vested
in accordance with the Vesting Schedule applicable to those shares or the special vesting acceleration provisions of Paragraph D.6 of this Agreement (such shares to be hereinafter referred to
as the "Unvested Shares"). 

        2.    Exercise of the Repurchase Right.    The Repurchase Right shall be exercisable by
written notice delivered to each Owner of the Unvested Shares prior to the expiration of the sixty (60)-day exercise period. The notice shall indicate the number of Unvested Shares to be
repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after the date of such notice. The certificates representing the Unvested
Shares to be repurchased shall be delivered to the Corporation on the closing date specified for the repurchase. Concurrently with the receipt of such stock certificates, the Corporation shall pay to
Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness), an amount equal to the Exercise Price previously paid for the Unvested Shares which are to be
repurchased from Owner. 

        3.    Termination of the Repurchase Right.    The Repurchase Right shall terminate with
respect to any Unvested Shares for which it is not timely exercised under Paragraph D.2. In addition, the Repurchase Right shall terminate and cease to be exercisable with respect to any and
all Purchased Shares in which Optionee vests in accordance with the Vesting Schedule. All Purchased Shares as to which the Repurchase Right lapses shall, however, remain subject to (i) the
First Refusal Right and (ii) the Market Stand-Off. 

        4.    Aggregate Vesting Limitation.    If the Option is exercised in more than one increment
so that Optionee is a party to one or more other Stock Purchase Agreements (the "Prior Purchase Agreements") which are executed prior to the date of this Agreement, then the total number of Purchased
Shares as to which Optionee shall be deemed to have a fully-vested interest under this Agreement and all Prior Purchase Agreements shall not exceed in the aggregate the number of Purchased Shares in
which Optionee would otherwise at the time be vested, in accordance with the Vesting Schedule, had all the Purchased Shares (including those acquired under the Prior Purchase Agreements) been acquired
exclusively under this Agreement. 

        5.    Recapitalization.    Any new, substituted or additional securities or other property
(including cash paid other than as a regular cash dividend) which is by reason of any Recapitalization distributed with respect to the Purchased Shares shall be immediately subject to the Repurchase
Right and any escrow requirements hereunder, but only to the extent the Purchased Shares are at the time covered by such right or escrow requirements. Appropriate adjustments to reflect such
distribution shall be made to the number and/or class of Purchased Shares subject to this Agreement and to the price per share to be paid upon the exercise of the Repurchase Right in order to reflect
the effect of any such Recapitalization upon the Corporation's capital structure; provided, however, that the aggregate purchase price shall remain the
same. 

3

 

        6.    Corporate Transaction.    

        (a)   The
Repurchase Right shall automatically terminate in its entirety, and all the Purchased Shares shall vest in full, immediately prior to the consummation of any
Corporate Transaction, except to the extent the Repurchase Right is to be assigned to the successor entity in such Corporate Transaction. 

        (b)   To
the extent the Repurchase Right remains in effect following a Corporate Transaction, such right shall apply to any new securities or other property (including any
cash payments) received in exchange for the Purchased Shares in consummation of the Corporate Transaction, but only to the extent the Purchased Shares are at the time covered by such right.
Appropriate adjustments shall be made to the price per share payable upon exercise of the Repurchase Right to reflect the effect of the Corporate Transaction upon the Corporation's capital structure;  provided, however, that the aggregate purchase price shall remain the same. The new securities or other property (including any cash payments) issued
or distributed with respect to the Purchased Shares in consummation of the Corporate Transaction shall be immediately deposited in escrow with the Corporation (or the successor entity) and shall not
be released from escrow until Optionee vests in such securities or other property in accordance with the same Vesting Schedule in effect for the Purchased Shares. 

        E.    RIGHT OF FIRST REFUSAL    

        1.    Grant.    The Corporation is hereby granted the right of first refusal (the "First
Refusal Right"), exercisable in connection with any proposed transfer of the Purchased Shares in which Optionee has vested in accordance with the provisions of Article D. For purposes of this
Article E, the term "transfer" shall include any sale, assignment, pledge, encumbrance or other disposition of the Purchased Shares intended to be made by Owner, but shall not include any
Permitted Transfer. 

        2.    Notice of Intended Disposition.    In the event any Owner of Purchased Shares in which
Optionee has vested desires to accept a bona fide third-party offer for the transfer of any or all of such shares (the Purchased Shares subject to such offer to be hereinafter referred to as the
"Target Shares"), Owner shall promptly (i) deliver to the Corporation written notice (the "Disposition Notice") of the terms of the offer, including the purchase price and the identity of the
third-party offeror, and (ii) provide satisfactory proof that the disposition of the Target Shares to such third-party offeror would not be in contravention of the provisions set forth in
Articles B and C. 

        3.    Exercise of the First Refusal Right.    The Corporation shall, for a period of
twenty-five (25) days following receipt of the Disposition Notice, have the right to repurchase any or all of the Target Shares subject to the Disposition Notice upon the same terms
as those specified therein or upon such other terms (not materially different from those specified in the Disposition Notice) to which Owner consents. Such right shall be exercisable by delivery of
written notice (the "Exercise Notice") to Owner prior to the expiration of the twenty-five (25)-day exercise period. If such right is exercised with respect to all the Target
Shares, then the Corporation shall effect the repurchase of such shares, including payment of the purchase price, not more than five (5) business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered to the Corporation. 

        Should
the purchase price specified in the Disposition Notice be payable in property other than cash or evidences of indebtedness, the Corporation shall have the right to pay the
purchase price in the form of cash equal in amount to the value of such property. If Owner and the Corporation cannot agree on such cash value within ten (10) days after the Corporation's
receipt of the Disposition Notice, the valuation shall be made by an appraiser of recognized standing selected by Owner and the Corporation or, if they cannot agree on an appraiser within twenty
(20) days after the Corporation's receipt of the Disposition Notice, each shall select an appraiser of recognized standing and the two (2) appraisers shall designate a third appraiser of
recognized 

4

 

standing,
whose appraisal shall be determinative of such value. The cost of such appraisal shall be shared equally by Owner and the Corporation. The closing shall then be held on the  later of (i) the fifth
(5th) business day following delivery of the Exercise Notice or (ii) the fifth (5th) business day after such
valuation shall have been made. 

        4.    Non-Exercise of the First Refusal Right.    In the event the Exercise Notice
is not given to Owner prior to the expiration of the twenty-five (25)-day exercise period, Owner shall have a period of thirty (30) days thereafter in which to sell or
otherwise dispose of the Target Shares to the third-party offeror identified in the Disposition Notice upon terms (including the purchase price) no more favorable to such third-party offeror than
those specified in the Disposition Notice; provided, however, that any such sale or disposition must not be effected in contravention of the provisions
of Articles B and C. The third-party offeror shall acquire the Target Shares subject to the First Refusal Right and the provisions and restrictions of Article B and Paragraph C.3, and
any subsequent disposition of the acquired shares must be effected in compliance with the terms and conditions of such First Refusal Right and the provisions and restrictions of Article B and
Paragraph C.3. In the event Owner does not effect such sale or disposition of the Target Shares within the specified thirty (30)-day period, the First Refusal Right shall continue
to be applicable to any subsequent disposition of the Target Shares by Owner until such right lapses. 

        5.    Partial Exercise of the First Refusal Right.    In the event the Corporation makes a
timely exercise of the First Refusal Right with respect to a portion, but not all, of the Target Shares specified in the Disposition Notice, Owner shall have the option, exercisable by written notice
to the Corporation delivered within five (5) business days after Owner's receipt of the Exercise Notice, to effect the sale of the Target Shares pursuant to either of the following
alternatives: 

          (i)  sale
or other disposition of all the Target Shares to the third-party offeror identified in the Disposition Notice, but in full compliance with the requirements of
Paragraph E.4, as if the Corporation did not exercise the First Refusal Right; or 

         (ii)  sale
to the Corporation of the portion of the Target Shares which the Corporation has elected to purchase, such sale to be effected in substantial conformity with the
provisions of Paragraph E.3. The First Refusal Right shall continue to be applicable to any subsequent disposition of the remaining Target Shares until such right lapses. 

        Owner's
failure to deliver timely notification to the Corporation shall be deemed to be an election by Owner to sell the Target Shares pursuant to alternative (i) above. 

        6.    Recapitalization/Reorganization.    

        (a)   Any
new, substituted or additional securities or other property which is by reason of any Recapitalization distributed with respect to the Purchased Shares shall be
immediately subject to the First Refusal Right, but only to the extent the Purchased Shares are at the time covered by such right. 

        (b)   In
the event of a Reorganization, the First Refusal Right shall remain in full force and effect and shall apply to the new capital stock or other property received in
exchange for the Purchased Shares in consummation of the Reorganization, but only to the extent the Purchased Shares are at the time covered by such right. 

        7.    Lapse.    The First Refusal Right shall lapse upon the  earliest to occur of (i) the
first date on which shares of the Common Stock are held of record by more than five hundred (500) persons,
(ii) a determination made by the Board that a public market exists for the outstanding shares of Common Stock or (iii) a firm commitment underwritten public offering, pursuant to an
effective registration statement under the 1933 Act, covering the offer and sale of the Common Stock in the aggregate amount of at least twenty million dollars ($20,000,000). 

5

 

However,
the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right. 

        F.    SPECIAL TAX ELECTION    

        The
acquisition of the Purchased Shares may result in adverse tax consequences which may be avoided or mitigated by filing an election under Code Section 83(b). Such election must
be filed within thirty (30) days after the date of this Agreement. A description of the tax consequences applicable to the acquisition of the Purchased Shares and the form for making the Code
Section 83(b) election are set forth in Exhibit II. OPTIONEE SHOULD CONSULT WITH HIS OR HER TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF ACQUIRING THE
PURCHASED SHARES AND THE ADVANTAGES AND DISADVANTAGES OF FILING THE CODE SECTION 83(b) ELECTION. OPTIONEE ACKNOWLEDGES THAT IT IS OPTIONEE'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A
TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF OPTIONEE REQUESTS THE CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.

        G.    GENERAL PROVISIONS    

        1.    Assignment.    The Corporation may assign the Repurchase Right and/or the First Refusal
Right to any person or entity selected by the Board, including (without limitation) one or more stockholders of the Corporation. 

        2.    At Will Employment.    Nothing in this Agreement or in the Plan shall confer upon
Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. 

        3.    Notices.    Any notice required to be given under this Agreement shall be in writing and
shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice at the address
indicated below such party's signature line on this Agreement or at such other address as such party may designate by ten (10) days advance written notice under this paragraph to all other
parties to this Agreement. 

        4.    No Waiver.    The failure of the Corporation in any instance to exercise the Repurchase
Right or the First Refusal Right shall not constitute a waiver of any other repurchase rights and/or rights of first refusal that may subsequently arise under the provisions of this Agreement or any
other agreement between the Corporation and Optionee. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of
like or different nature. 

        5.    Cancellation of Shares.    If the Corporation shall make available, at the time and
place and in the amount and form provided in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such
time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the right to receive payment of such consideration in accordance
with this Agreement). Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this Agreement. 

        H.    MISCELLANEOUS PROVISIONS    

        1.    Optionee Undertaking.    Optionee hereby agrees to take whatever additional action and
execute whatever additional documents the Corporation may deem necessary or advisable in order 

6

 

to
carry out or effect one or more of the obligations or restrictions imposed on either Optionee or the Purchased Shares pursuant to the provisions of this Agreement. 

        2.    Agreement is Entire Contract.    This Agreement constitutes the entire contract between
the parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity with the terms of the
Plan. 

        3.    Governing Law.    This Agreement shall be governed by, and construed in accordance with,
the laws of the State of California without resort to that State's conflict-of-laws rules. 

        4.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same instrument. 

        5.    Successors and Assigns.    The provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and upon Optionee, Optionee's permitted assigns and the legal representatives, heirs and legatees of Optionee's estate, whether
or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof. 

7

 

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

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	

    

	

 	
 	

Title:	

    

	

 	
 	

Address:	

    

	

 	
 	

 	

    

	

 	
 	

 	

    
OPTIONEE
	

 	
 	

Address:	

    

	

 	
 	

 	

    

8

 
 

SPOUSAL ACKNOWLEDGMENT    
    

        The undersigned spouse of Optionee has read and hereby approves the foregoing Stock Purchase Agreement. In consideration of the Corporation's granting Optionee
the right to acquire the Purchased Shares in accordance with the terms of such Agreement, the undersigned hereby agrees to be irrevocably bound by all the terms of such Agreement, including (without
limitation) the right of the Corporation (or its assigns) to purchase any Purchased Shares in which Optionee is not vested at time of his or her cessation of Service. 

	 	 	
OPTIONEE'S SPOUSE
	

Address:	
 	

	    	 	 
	 	 	

 
 

EXHIBIT I    
    
    ASSIGNMENT SEPARATE FROM CERTIFICATE    
    

        FOR VALUE RECEIVED                            hereby sell(s), assign(s) and transfer(s) unto HireRight, Inc. (the
"Corporation"),
                        
(                        ) shares of the Common Stock of the Corporation standing in his or her name on the books of the
Corporation represented by Certificate No.                        herewith and
do(es) hereby irrevocably constitute and appoint                        Attorney to transfer the said stock on the books of the
Corporation with full power of substitution in the premises. 

	Dated:	    
	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	    	 	 	 	 
	 	 	 	Signature	    

        Instruction: Please do not fill in any blanks other than the signature line. Please sign exactly as you would like your name to appear on
the issued stock certificate. The purpose of this assignment is to enable the Corporation to exercise the Repurchase Right without requiring additional signatures on the part of Optionee. 

  

 
 

EXHIBIT II    
    
    FEDERAL INCOME TAX CONSEQUENCES AND
  SECTION 83(b) TAX ELECTION    
    

        I.    Federal Income Tax Consequences and Section 83(b) Election For Exercise of Non-Statutory
Option.    If the Purchased Shares are acquired pursuant to the exercise of a Non-Statutory Option, as specified in the Grant Notice, then under Code
Section 83, the excess of the Fair Market Value of the Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse over the Exercise Price paid for those shares
will be reportable as ordinary income on the lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Purchased Shares pursuant to the
Repurchase Right. However, Optionee may elect under Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be
subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of the Agreement. Even if the Fair Market Value of
the Purchased Shares on the date of the Agreement equals the Exercise Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for
making this election is attached as part of this exhibit. FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD WILL RESULT IN THE RECOGNITION OF
ORDINARY INCOME BY OPTIONEE AS THE FORFEITURE RESTRICTIONS LAPSE. 

        II.    Federal Income Tax Consequences and Conditional Section 83(b) Election For Exercise of Incentive
Option.    If the Purchased Shares are acquired pursuant to the exercise of an Incentive Option, as specified in the Grant Notice, then the following tax principles
shall be applicable to the Purchased Shares: 

          (i)  For
regular tax purposes, no taxable income will be recognized at the time the Option is exercised. 

         (ii)  The
excess of (a) the Fair Market Value of the Purchased Shares on the date the Option is exercised or (if later) on the date any forfeiture restrictions
applicable to the Purchased Shares lapse over (b) the
Exercise Price paid for the Purchased Shares will be includible in Optionee's taxable income for alternative minimum tax purposes. 

        (iii)  If
Optionee makes a disqualifying disposition of the Purchased Shares, then Optionee will recognize ordinary income in the year of such disposition equal in amount to
the excess of (a) the Fair Market Value of the Purchased Shares on the date the Option is exercised or (if later) on the date any forfeiture restrictions applicable to the Purchased Shares
lapse over (b) the Exercise Price paid for the Purchased Shares. Any additional gain recognized upon the disqualifying disposition will be either short-term or long-term
capital gain depending upon the period for which the Purchased Shares are held prior to the disposition. 

        (iv)  For
purposes of the foregoing, the term "forfeiture restrictions" will include the right of the Corporation to repurchase the Purchased Shares pursuant to the
Repurchase Right. The term "disqualifying disposition" means any sale or other disposition(1) of the Purchased Shares within two (2) years after the Grant Date or within one (1) year
after the exercise date of the Option. 

	(1)
	Generally,
a disposition of shares purchased under an Incentive Option includes any transfer of legal title, including a transfer by sale, exchange or gift, but does not include a
transfer to the Optionee's spouse, a transfer into joint ownership with right of survivorship if Optionee remains one of the joint owners, a pledge, a transfer by bequest or inheritance or certain tax
free exchanges permitted under the Code. 

         (v)  In
the absence of final Treasury Regulations relating to Incentive Options, it is not certain whether Optionee may, in connection with the exercise of the Option for any
Purchased Shares at 

II-1

 

the
time subject to forfeiture restrictions, file a protective election under Code Section 83(b) which would limit Optionee's ordinary income upon a disqualifying disposition to the
excess of the Fair Market Value of the Purchased Shares on the date the Option is exercised over the Exercise Price paid for the Purchased Shares. Accordingly, such election if properly filed will
only be allowed to the extent the final Treasury Regulations permit such a protective election. 

        (vi)  The
Code Section 83(b) election will be effective in limiting the Optionee's alternative minimum taxable income to the excess of the Fair Market Value of the
Purchased Shares at the time the Option is exercised over the Exercise Price paid for those shares. 

        Page
2 of the attached form for making the election should be filed with any election made in connection with the exercise of an Incentive Option. 

II-2

SECTION 83(b) ELECTION  

        This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2. 

	(1)
	The
taxpayer who performed the services is: 

Name:

Address:

Taxpayer Ident. No.: 

	(2)
	The
property with respect to which the election is being made is                        shares of the common stock of HireRight,
 Inc.

	(3)
	The
property was issued on                        ,            .

	(4)
	The
taxable year in which the election is being made is the calendar year            .

	(5)
	The
property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original purchase price if for any reason taxpayer's service
with the issuer terminates. The issuer's repurchase right will lapse in a series of installments over a four (4)-year period ending
on                        , 200    .

	(6)
	The
fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$                        per
share.

	(7)
	The
amount paid for such property is $                        per share.

	(8)
	A
copy of this statement was furnished to HireRight, Inc. for whom taxpayer rendered the services underlying the transfer of property.

	(9)
	This
statement is executed on                        ,            .

	
	 	

	Spouse (if any)	 	Taxpayer

This election must be filed with the Internal Revenue Service Center with which taxpayer files his or her Federal income tax returns and must be made within thirty
(30) days after the execution date of the Stock Purchase Agreement. This filing should be made by registered or certified mail, return receipt requested. Optionee must retain two
(2) copies of the completed form for filing with his or her Federal and state tax returns for the current tax year and an additional copy for his or her records.

 

        The
property described in the above Section 83(b) election is comprised of shares of common stock acquired pursuant to the exercise of an incentive stock option under
Section 422 of the Internal Revenue Code (the "Code"). Accordingly, it is the intent of the Taxpayer to utilize this election to achieve the following tax results: 

        1.     One
purpose of this election is to have the alternative minimum taxable income attributable to the purchased shares measured by the amount by which the fair market value
of such shares at the time of their transfer to the Taxpayer exceeds the purchase price paid for the shares. In the absence of this election, such alternative minimum taxable income would be measured
by the spread between the fair market value of the purchased shares and the purchase price which exists on the various lapse dates in effect for the forfeiture restrictions applicable to such shares. 

        2.     Section 421(a)(1)
of the Code expressly excludes from income any excess of the fair market value of the purchased shares over the amount paid for such shares.
Accordingly, this election is also intended to be effective in the event there is a "disqualifying disposition" of the shares, within the meaning of Section 421(b) of the Code, which would
otherwise render the provisions of Section 83(a) of the Code applicable at that time. Consequently, the Taxpayer hereby elects to have the amount of disqualifying disposition income measured by
the excess of the fair market value of the purchased shares on the date of transfer to the Taxpayer over the amount paid for such shares. Since Section 421(a) presently applies to the shares
which are the subject of this Section 83(b) election, no taxable income is actually recognized for regular tax purposes at this time, and no income taxes are payable, by the Taxpayer as a
result of this election. The foregoing election is to be effective to the full extent permitted under the Code. 

        THIS PAGE 2 IS TO BE ATTACHED TO ANY SECTION 83(b) ELECTION FILED IN CONNECTION WITH THE EXERCISE OF AN INCENTIVE STOCK OPTION UNDER THE FEDERAL TAX
LAWS.

2

   APPENDIX  

        The
following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Stock Purchase Agreement. 

        B.    Board shall mean the Corporation's Board of Directors. 

        C.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        D.    Common Stock shall mean the Corporation's common stock. 

        E.    Corporate Transaction shall mean either of the following stockholder-approved transactions: 

          (i)  a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities
are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

         (ii)  the
sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.     Corporation shall mean HireRight, Inc., a California corporation, and any successor corporation to all or
substantially all of the assets or voting stock of HireRight, Inc. which shall by appropriate action adopt the Plan. 

        G.    Disposition Notice shall have the meaning assigned to such term in Paragraph E.2. 

        H.    Exercise Price shall have the meaning assigned to such term in Paragraph A.1. 

        I.     Fair Market Value of a share of Common Stock on any relevant date, prior to the initial public offering of the Common
Stock, shall be determined by the Plan Administrator after taking into account such factors as it shall deem appropriate. 

        J.     First Refusal Right shall mean the right granted to the Corporation in accordance with Article E. 

        K.    Grant Date shall have the meaning assigned to such term in Paragraph A.1. 

        L.    Grant Notice shall mean the Notice of Grant of Stock Option pursuant to which Optionee has been informed of the basic
terms of the Option. 

        M.   Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

        N.    Market Stand-Off shall mean the market stand-off restriction specified in Paragraph C.3. 

        O.    1933 Act shall mean the Securities Act of 1933, as amended. 

        P.     1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

        Q.    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

        R.    Option shall have the meaning assigned to such term in Paragraph A.1. 

        S.     Option Agreement shall mean all agreements and other documents evidencing the Option. 

        T.     Optionee shall mean the person to whom the Option is granted under the Plan. 

A-1

 

        U.    Owner shall mean Optionee and all subsequent holders of the Purchased Shares who derive their chain of ownership through a
Permitted Transfer from Optionee. 

        V.     Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        W.    Permitted Transfer shall mean (i) a gratuitous transfer of the Purchased Shares, provided and only if Optionee
obtains the Corporation's prior written consent to such transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Optionee's will or the laws of inheritance following
Optionee's death or (iii) a transfer to the Corporation in pledge as security for any purchase-money indebtedness incurred by Optionee in connection with the acquisition of the Purchased
Shares. 

        X.    Plan shall mean the Corporation's 2000 Stock Option/Stock Issuance Plan. 

        Y.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

        Z.    Prior Purchase Agreement shall have the meaning assigned to such term in Paragraph D.4. 

        AA. Purchased Shares shall have the meaning assigned to such term in Paragraph A.1. 

        BB.  Recapitalization shall mean any stock split, stock dividend, recapitalization, combination of shares, exchange of shares
or other change affecting the Corporation's outstanding Common Stock as a class without the Corporation's receipt of consideration. 

        CC. Reorganization shall mean any of the following transactions: 

          (i)  a
merger or consolidation in which the Corporation is not the surviving entity, 

         (ii)  a
sale, transfer or other disposition of all or substantially all of the Corporation's assets, 

        (iii)  a
reverse merger in which the Corporation is the surviving entity but in which the Corporation's outstanding voting securities are transferred in whole or in part to a
person or persons different from the persons holding those securities immediately prior to the merger, or 

        (iv)  any
transaction effected primarily to change the state in which the Corporation is incorporated or to create a holding company structure. 

        DD. Repurchase Right shall mean the right granted to the Corporation in accordance with Article D. 

        EE. SEC shall mean the Securities and Exchange Commission. 

        FF.   Service shall mean the Optionee's performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee member of
the board of directors or an independent consultant. 

        GG. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

A-2

 

        HH. Target Shares shall have the meaning assigned to such term in Paragraph E.2. 

        II.    Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant to which the Optionee is to vest
in the Option Shares in a series of installments over his or her period of Service. 

        JJ.   Unvested Shares shall have the meaning assigned to such term in Paragraph D.1. 

A-3

ADDENDUM

TO

STOCK PURCHASE AGREEMENT  

        The following provisions are hereby incorporated into, and are hereby made a part of, that certain Stock Purchase Agreement (the "Purchase Agreement") by and
between HireRight, Inc. (the "Corporation") and                        ("Optionee") evidencing the shares of Common Stock
purchased on this date by Optionee under the Corporation's 2000 Stock
Option/Stock Issuance Plan, and such provisions shall be effective immediately. All capitalized terms in this Addendum, to the extent not otherwise defined herein, shall have the meanings assigned to
such terms in the Purchase Agreement. 

 
 

INVOLUNTARY TERMINATION FOLLOWING
  CORPORATE TRANSACTION    
    

        1.     To
the extent the Repurchase Right is assigned to the successor corporation (or parent thereof) in connection with a Corporate Transaction, no accelerated vesting of the
Purchased Shares shall occur upon such Corporate Transaction, and the Repurchase Right shall continue to remain in full force and effect in accordance with the provisions of the Purchase Agreement.
Optionee shall, over his or her period of Service following the Corporate Transaction, continue to vest in the Purchased Shares in one or more installments in accordance with the provisions of the
Purchase Agreement. However, upon an Involuntary Termination of Optionee's Service within eighteen (18) months following the Corporate Transaction, the Repurchase Right shall terminate
automatically, and all the Purchased Shares shall immediately vest in full at that time. Any unvested escrow account maintained on Optionee's behalf pursuant to Paragraph D.6 of the Purchase
Agreement shall also vest at the time of such Involuntary Termination and shall be paid to Optionee promptly thereafter. 

        2.     For
purposes of this Addendum, the following definitions shall be in effect: 

        An
Involuntary Termination shall mean the termination of Optionee's Service by reason of: 

          (i)  Optionee's
involuntary dismissal or discharge by the Corporation for reasons other than for Misconduct, or 

         (ii)  Optionee's
voluntary resignation following (A) a change in his or her position with the Corporation (or Parent or Subsidiary employing Optionee) which materially
reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in Optionee's level of compensation (including base salary, fringe benefits
and target bonus under any corporate-performance based incentive programs) by more than fifteen percent (15%) or (C) a relocation of Optionee's place of employment by more than fifty
(50) miles, provided and only if such change, reduction or relocation is effected by the Corporation without Optionee's consent. 

        Misconduct shall mean the termination of Optionee's Service by reason of Optionee's commission of any act of fraud, embezzlement or
dishonesty, any unauthorized use or disclosure by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by
Optionee adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or
omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan and this Addendum, to constitute grounds for termination for Misconduct. 

 

        IN WITNESS WHEREOF, HireRight, Inc. has caused this Addendum to be executed by its duly-authorized officer as of the
Effective Date specified below. 

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	
 	

	

 	
 	

Title:	
 	

EFFECTIVE DATE:                          ,
             

2

HIRERIGHT, INC.  

STOCK ISSUANCE AGREEMENT  

        AGREEMENT made as of this            day
of                        ,            by and between HireRight,
 Inc., a California
corporation, and                        , Participant in the Corporation's 2000 Stock Option/Stock Issuance Plan. 

        All
capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the attached Appendix. 

        A.    PURCHASE OF SHARES    

        1.    Purchase.    Participant hereby
purchases                        shares of Common Stock (the
"Purchased Shares") pursuant to the provisions of the Stock Issuance Program at the purchase price of $                        per
share (the "Purchase Price"). 

        2.    Payment.    Concurrently with the delivery of this Agreement to the Corporation,
Participant shall pay the Purchase Price for the Purchased Shares in cash or cash equivalent and shall deliver a duly-executed blank Assignment Separate from Certificate (in the form
attached hereto as Exhibit I) with respect to the Purchased Shares. 

        3.    Stockholder Rights.    Until such time as the Corporation exercises the Repurchase Right
or the First Refusal Right, Participant (or any successor in interest) shall have all stockholder rights (including voting, dividend and liquidation rights) with respect to the Purchased Shares,
subject, however, to the transfer restrictions of Articles B and C. 

        B.    SECURITIES LAW COMPLIANCE    

        1.    Restricted Securities.    The Purchased Shares have not been registered under the 1933
Act and are being issued to Participant in reliance upon the exemption from such registration provided by SEC Rule 701 for stock issuances under compensatory benefit plans such as the Plan.
Participant hereby confirms that Participant has been informed that the Purchased Shares are restricted securities under the 1933 Act and may not be resold or transferred unless the Purchased Shares
are first registered under the Federal securities laws or unless an exemption from such registration is available. Accordingly, Participant hereby acknowledges that Participant is prepared to hold the
Purchased Shares for an indefinite period and that Participant is aware that SEC Rule 144 issued under the 1933 Act which exempts certain resales of unrestricted securities is not presently
available to exempt the resale of the Purchased Shares from the registration requirements of the 1933 Act. 

        2.    Disposition of Purchased Shares.    Participant shall make no disposition of the
Purchased Shares (other than a Permitted Transfer) unless and until there is compliance with all of the following requirements: 

          (i)  Participant
shall have provided the Corporation with a written summary of the terms and conditions of the proposed disposition. 

         (ii)  Participant
shall have complied with all requirements of this Agreement applicable to the disposition of the Purchased Shares. 

        (iii)  Participant
shall have provided the Corporation with written assurances, in form and substance satisfactory to the Corporation, that (a) the proposed
disposition does not require registration of the Purchased Shares under the 1933 Act or (b) all appropriate action necessary for compliance with the registration requirements of the 1933 Act or
any exemption from registration available under the 1933 Act (including Rule 144) has been taken. 

        The
Corporation shall not be required (i) to transfer on its books any Purchased Shares which have been sold or transferred in
violation of the provisions of this Agreement or (ii) to treat as the owner of the Purchased Shares, or otherwise to accord voting, dividend or
liquidation rights to, any transferee to whom the Purchased Shares have been transferred in contravention of this Agreement. 

 

        3.    Restrictive Legends.    The stock certificates for the Purchased Shares shall be
endorsed with one or more of the following restrictive legends: 

        "The
shares represented by this certificate have not been registered under the Securities Act of 1933. The shares may not be sold or offered for sale in the absence of (a) an
effective registration statement for the shares under such Act, (b) a "no action" letter of the Securities and Exchange Commission with respect to such sale or offer or (c) satisfactory
assurances to the Corporation that registration under such Act is not required with respect to such sale or offer." 

        "The
shares represented by this certificate are subject to certain repurchase rights and rights of first refusal granted to the Corporation and accordingly may not be sold, assigned,
transferred, encumbered, or in any manner disposed of except in conformity with the terms of a written agreement
dated                        ,            , between the Corporation
and the registered
holder of the shares (or the predecessor in interest to the shares). A copy of such agreement is maintained at the Corporation's principal corporate offices." 

        C.    TRANSFER RESTRICTIONS    

        1.    Restriction on Transfer.    Except for any Permitted Transfer, Participant shall not
transfer, assign, encumber or otherwise dispose of any of the Purchased Shares which are subject to the Repurchase Right. In addition, Purchased Shares which are released from the Repurchase Right
shall not be transferred, assigned, encumbered or otherwise disposed of in contravention of the First Refusal Right or the Market Stand-Off. 

        2.    Transferee Obligations.    Each person (other than the Corporation) to whom the
Purchased Shares are transferred by means of a Permitted Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Corporation that such person is bound
by the provisions of this Agreement and that the transferred shares are subject to (i) the Repurchase Right, (ii) the First Refusal Right and (iii) the Market
Stand-Off, to the same extent such shares would be so subject if retained by Participant. 

        3.    Market Stand-Off.    

        (a)   In
connection with any underwritten public offering by the Corporation of its equity securities pursuant to an effective registration statement filed under the 1933 Act,
including the Corporation's initial public offering, Owner shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for
value or otherwise agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of the Corporation or its underwriters. Such restriction
(the "Market Stand-Off") shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Corporation or
such underwriters.
In no event, however, shall such period exceed one hundred eighty (180) days, and the Market Stand-Off shall in no event be applicable to any underwritten public offering effected
more than two (2) years after the effective date of the Corporation's initial public offering. 

        (b)   Owner
shall be subject to the Market Stand-Off provided and only if the officers and directors of the
Corporation are also subject to similar restrictions. 

        (c)   Any
new, substituted or additional securities which are by reason of any Recapitalization or Reorganization distributed with respect to the Purchased Shares shall be
immediately subject to the Market Stand-Off, to the same extent the Purchased Shares are at such time covered by such provisions. 

2

 

        (d)   In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Purchased Shares until the
end of the applicable stand-off period. 

        D.    REPURCHASE RIGHT    

        1.    Grant.    The Corporation is hereby granted the right (the "Repurchase Right"),
exercisable at any time during the sixty (60)-day period following the date Participant ceases for any reason to remain in Service, to repurchase at the Purchase Price any or all of the
Purchased Shares in which Participant is not, at the time of his or her cessation of Service, vested in accordance with the provisions of the Vesting Schedule set forth in Paragraph D.3 or the
special vesting acceleration provisions of Paragraph D.5 (such shares to be hereinafter referred to as the "Unvested Shares"). 

        2.    Exercise of the Repurchase Right.    The Repurchase Right shall be exercisable by
written notice delivered to each Owner of the Unvested Shares prior to the expiration of the sixty (60)-day exercise period. The notice shall indicate the number of Unvested Shares to be
repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after the date of such notice. The certificates representing the Unvested
Shares to be repurchased shall be delivered to the Corporation on the closing date specified for the repurchase. Concurrently with the receipt of such stock certificates, the Corporation shall pay to
Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness), an amount equal to the Purchase Price previously paid for the Unvested Shares which are to be
repurchased from Owner. 

        3.    Termination of the Repurchase Right.    The Repurchase Right shall terminate with
respect to any Unvested Shares for which it is not timely exercised under Paragraph D.2. In addition, the Repurchase Right shall terminate and cease to be exercisable with respect to any and
all Purchased Shares in which Participant vests in accordance with the following Vesting Schedule: 

          (i)  Participant
shall vest in twenty-five percent (25%) of the Purchased Shares, and the Repurchase Right shall concurrently lapse with respect to those
Purchased Shares, upon Participant's completion of one (1) year of Service measured from                        ,
                        . 

         (ii)  Participant
shall vest in the remaining seventy-five percent (75%) of the Purchased Shares, and the Repurchase Right shall concurrently lapse with respect
to those Purchased Shares, in a series of thirty-six (36) successive equal monthly installments upon Participant's completion of each additional month of Service over the
thirty-six (36)-month period measured from the date on which the first twenty-five percent (25%) of the Purchased Shares vests hereunder. 

        All
Purchased Shares as to which the Repurchase Right lapses shall, however, remain subject to (i) the First Refusal Right and (ii) the Market Stand-Off. 

        4.    Recapitalization.    Any new, substituted or additional securities or other property
(including cash paid other than as a regular cash dividend) which is by reason of any Recapitalization distributed with respect to the Purchased Shares shall be immediately subject to the Repurchase
Right and any escrow requirements hereunder, but only to the extent the Purchased Shares are at the time covered by such right or escrow requirements. Appropriate adjustments to reflect such
distribution shall be made to the number and/or class of Purchased Shares subject to this Agreement and to the price per share to be paid upon the exercise of the Repurchase Right in order to reflect
the effect of any such Recapitalization upon the Corporation's capital structure; provided, however, that the aggregate purchase price shall remain the
same. 

3

 

        5.    Corporate Transaction.    

        (a)   The
Repurchase Right shall automatically terminate in its entirety, and all the Purchased Shares shall vest in full, immediately prior to the consummation of any
Corporate Transaction, except to the extent the Repurchase Right is to be assigned to the successor entity in such Corporate Transaction. 

        (b)   To
the extent the Repurchase Right remains in effect following a Corporate Transaction, such right shall apply to any new securities or other property (including any
cash payments) received in exchange for the Purchased Shares in consummation of the Corporate Transaction, but only to the extent the Purchased Shares are at the time covered by such right.
Appropriate adjustments shall be made to the price per share payable upon exercise of the Repurchase Right to reflect the effect of the Corporate Transaction upon the Corporation's capital structure;  provided, however, that the aggregate purchase price shall remain the same. The new securities or other property (including any cash payments) issued or
distributed with respect to the Purchased Shares in consummation of the Corporate Transaction shall be immediately deposited in escrow with the Corporation (or the successor entity) and shall not be
released from escrow until Participant vests in such securities or other property in accordance with the same Vesting Schedule in effect for the Purchased Shares. 

        E.    RIGHT OF FIRST REFUSAL    

        1.    Grant.    The Corporation is hereby granted the right of first refusal (the "First
Refusal Right"), exercisable in connection with any proposed transfer of the Purchased Shares in which Participant has vested in accordance with the provisions of Article D. For purposes of
this Article E, the term "transfer" shall include any sale, assignment, pledge, encumbrance or other disposition of the Purchased Shares intended to be made by Owner, but shall not include any
Permitted Transfer. 

        2.    Notice of Intended Disposition.    In the event any Owner of Purchased Shares in which
Participant has vested desires to accept a bona fide third-party offer for the transfer of any or all of such shares (the Purchased Shares subject to such offer to be hereinafter referred to as the
"Target Shares"), Owner shall promptly (i) deliver to the Corporation written notice (the "Disposition Notice") of the terms of the offer, including the purchase price and the identity of the
third-party offeror, and (ii) provide satisfactory proof that the disposition of the Target Shares to such third-party offeror would not be in contravention of the provisions set forth in
Articles B and C. 

        3.    Exercise of the First Refusal Right.    The Corporation shall, for a period of
twenty-five (25) days following receipt of the Disposition Notice, have the right to repurchase any or all of the Target Shares subject to the Disposition Notice upon the same terms
as those specified therein or upon such other terms (not materially different from those specified in the Disposition Notice) to which Owner consents. Such right shall be exercisable by delivery of
written notice (the "Exercise Notice") to Owner prior to the expiration of the twenty-five (25)-day exercise period. If such right is exercised with respect to all the Target
Shares, then the Corporation shall effect the repurchase of such shares, including payment of the purchase price, not more than five (5) business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered to the Corporation. 

        Should
the purchase price specified in the Disposition Notice be payable in property other than cash or evidences of indebtedness, the Corporation shall have the right to pay the
purchase price in the form of cash equal in amount to the value of such property. If Owner and the Corporation cannot agree on such cash value within ten (10) days after the Corporation's
receipt of the Disposition Notice, the valuation shall be made by an appraiser of recognized standing selected by Owner and the Corporation or, if they cannot agree on an appraiser within twenty 

4

 

(20) days
after the Corporation's receipt of the Disposition Notice, each shall select an appraiser of recognized standing and the two (2) appraisers shall designate a third appraiser of
recognized standing, whose appraisal shall be determinative of such value. The cost of such appraisal shall be shared equally by Owner and the Corporation. The closing shall then be held on the  later of
(i) the fifth (5th) business day following delivery of the Exercise Notice or (ii) the fifth (5th) business day after such
valuation shall have been made. 

        4.    Non-Exercise of the First Refusal Right.    In the event the Exercise Notice
is not given to Owner prior to the expiration of the twenty-five (25)-day exercise period, Owner shall have a period of thirty (30) days thereafter in which to sell or
otherwise dispose of the Target Shares to the third-party offeror identified in the Disposition Notice upon terms (including the purchase price) no more favorable to such third-party offeror than
those specified in the Disposition Notice; provided, however, that any such sale or disposition must not be effected in contravention of the provisions
of Articles B and C. The third-party offeror shall acquire the Target Shares subject to the First Refusal Right and the provisions and restrictions of Article B and Paragraph C.3, and
any subsequent disposition of the acquired shares must be effected in compliance with the terms and conditions of such First Refusal Right and the provisions and restrictions of Article B and
Paragraph C.3. In the event Owner does not effect such sale or disposition of the Target Shares within the specified thirty (30)-day period, the First Refusal Right shall continue
to be applicable to any subsequent disposition of the Target Shares by Owner until such right lapses. 

        5.    Partial Exercise of the First Refusal Right.    In the event the Corporation makes a
timely exercise of the First Refusal Right with respect to a portion, but not all, of the Target Shares specified in the Disposition Notice, Owner shall have the option, exercisable by written notice
to the Corporation delivered within five (5) business days after Owner's receipt of the Exercise Notice, to effect the sale of the Target Shares pursuant to either of the following
alternatives: 

          (i)  sale
or other disposition of all the Target Shares to the third-party offeror identified in the Disposition Notice, but in full compliance with the requirements of
Paragraph E.4, as if the Corporation did not exercise the First Refusal Right; or 

         (ii)  sale
to the Corporation of the portion of the Target Shares which the Corporation has elected to purchase, such sale to be effected in substantial conformity with the
provisions of Paragraph E.3. The First Refusal Right shall continue to be applicable to any subsequent disposition of the remaining Target Shares until such right lapses. 

        Owner's
failure to deliver timely notification to the Corporation shall be deemed to be an election by Owner to sell the Target Shares pursuant to alternative (i) above. 

        6.    Recapitalization/Reorganization.    

        (a)   Any
new, substituted or additional securities or other property which is by reason of any Recapitalization distributed with respect to the Purchased Shares shall be
immediately subject to the First Refusal Right, but only to the extent the Purchased Shares are at the time covered by such right. 

        (b)   In
the event of a Reorganization, the First Refusal Right shall remain in full force and effect and shall apply to the new capital stock or other property received in
exchange for the Purchased Shares in consummation of the Reorganization, but only to the extent the Purchased Shares are at the time covered by such right. 

        7.    Lapse.    The First Refusal Right shall lapse upon the  earliest to occur of (i) the
first date on which shares of the Common Stock are held of record by more than five hundred (500) persons,
(ii) a determination made by the Board that a public market exists for the outstanding shares of Common Stock or (iii) a firm commitment underwritten public offering, 

5

 

pursuant
to an effective registration statement under the 1933 Act, covering the offer and sale of the Common Stock in the aggregate amount of at least twenty million dollars ($20,000,000). However,
the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right. 

        F.    SPECIAL TAX ELECTION    

        1.    Section 83(b) Election.    Under Code Section 83, the excess of the Fair
Market Value of the Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse over the Purchase Price paid for those shares will be reportable as ordinary income on the
lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Purchased Shares pursuant to the Repurchase Right. Participant may elect under
Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be subject to such forfeiture restrictions. Such election
must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the Fair Market Value of the Purchased Shares on the date of this Agreement
equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. 

        THE FORM FOR MAKING THIS ELECTION IS ATTACHED AS EXHIBIT II HERETO. PARTICIPANT UNDERSTANDS THAT FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE THIRTY
(30)-DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE.

        2.    FILING RESPONSIBILITY.    PARTICIPANT
ACKNOWLEDGES THAT IT IS PARTICIPANT'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE CORPORATION OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.

        G.    GENERAL PROVISIONS    

        1.    Assignment.    The Corporation may assign the Repurchase Right and/or the First Refusal
Right to any person or entity selected by the Board, including (without limitation) one or more stockholders of the Corporation. 

        2.    At Will Employment.    Nothing in this Agreement or in the Plan shall confer upon
Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing
or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant's Service at any time for any reason, with or without cause. 

        3.    Notices.    Any notice required to be given under this Agreement shall be in writing and
shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice at the address
indicated below such party's signature line on this Agreement or at such other address as such party may designate by ten (10) days advance written notice under this paragraph to all other
parties to this Agreement. 

        4.    No Waiver.    The failure of the Corporation in any instance to exercise the Repurchase
Right or the First Refusal Right shall not constitute a waiver of any other repurchase rights and/or rights of first refusal that may subsequently arise under the provisions of this Agreement or any
other agreement between the Corporation and Participant. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether
of like or different nature. 

6

 

        5.    Cancellation of Shares.    If the Corporation shall make available, at the time and
place and in the amount and form provided in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such
time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the right to receive payment of such consideration in accordance
with this Agreement). Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this Agreement. 

        H.    MISCELLANEOUS PROVISIONS    

        1.    Governing Law.    This Agreement shall be governed by, and construed in accordance with,
the laws of the State of California without resort to that State's conflict-of-laws rules. 

        2.    Participant Undertaking.    Participant hereby agrees to take whatever additional action
and execute whatever additional documents the Corporation may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Participant
or the Purchased Shares pursuant to the provisions of this Agreement. 

        3.    Agreement is Entire Contract.    This Agreement constitutes the entire contract between
the parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity with the terms of the
Plan. 

        4.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same instrument. 

        5.    Successors and Assigns.    The provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and upon Participant, Participant's assigns and the legal representatives, heirs and legatees of Participant's estate, whether
or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof. 

7

 

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

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	
 	

	

 	
 	

Title:	
 	

	

 	
 	

Address:	
 	

	 	 	 	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	

	 	 	 	 	PARTICIPANT
	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

8

 
 

SPOUSAL ACKNOWLEDGMENT    
    

        The undersigned spouse of Participant has read and hereby approves the foregoing Stock Issuance Agreement. In consideration of the Corporation's granting
Participant the right to acquire the Purchased Shares in accordance with the terms of such Agreement, the undersigned hereby agrees to be irrevocably bound by all the terms of such Agreement,
including (without limitation) the right of the Corporation (or its assigns) to purchase any Purchased Shares in which Participant is not vested at the time of his or her cessation of Service. 

	 	 	 	
PARTICIPANT'S SPOUSE
	

 	
 	

Address:	

 
	 	 	 	

	 	 	 	

 
 

EXHIBIT I    
    
    ASSIGNMENT SEPARATE FROM CERTIFICATE    
    

        FOR VALUE RECEIVED                        hereby sell(s), assign(s) and transfer(s) unto
HireRight, Inc. (the "Corporation"),
                        (            ) shares of the Common Stock of
the Corporation standing in his or her name on the books of the Corporation represented by Certificate
No.                        herewith and
do(es) hereby irrevocably constitute and appoint                        Attorney to transfer the said stock on the books of the
Corporation with full power of substitution in the premises. 

Dated:

	

 	
 	

Signature	

    

        Instruction:    Please do not fill in any blanks other than the signature line. Please sign exactly as you would like your name
to appear on the issued stock certificate. The purpose of this assignment is to enable the Corporation to exercise the Repurchase Right without requiring additional signatures on the part of
Participant. 

EXHIBIT II  

 SECTION 83(b) TAX ELECTION  

 
 

SECTION 83(b) TAX ELECTION    
    

        This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2. 

	(1)
	The
taxpayer who performed the services is: 

Name:

Address:

Taxpayer Ident. No.: 

	(2)
	The
property with respect to which the election is being made is                        shares of the common stock of HireRight,
 Inc.

	(3)
	The
property was issued on                        ,        .

	(4)
	The
taxable year in which the election is being made is the calendar year            .

	(5)
	The
property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original purchase price if for any reason taxpayer's service
with the issuer terminates. The issuer's repurchase right will lapse in a series of annual and monthly installments over a four (4)-year period ending
on                        ,
200    .

	(6)
	The
fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is $            per
share.

	(7)
	The
amount paid for such property is $                              per share.

	(8)
	A
copy of this statement was furnished to HireRight, Inc. for whom taxpayer rendered the services underlying the transfer of property.

	(9)
	This
statement is executed on                        ,            .

	    
	 	    

	Spouse (if any)	 	Taxpayer

        This election must be filed with the Internal Revenue Service Center with which taxpayer files his or her Federal income tax returns and must be made within
thirty (30) days after the execution date of the Stock Issuance Agreement. This filing should be made by registered or certified mail, return receipt requested. Participant must retain two
(2) copies of the completed form for filing with his or her Federal and state tax returns for the current tax year and an additional copy for his or her records.  

EXHIBIT III  

 2000 STOCK OPTION/STOCK ISSUANCE PLAN  

   APPENDIX  

        The following definitions shall be in effect under the Agreement: 

        A.    Agreement shall mean this Stock Issuance Agreement. 

        B.    Board shall mean the Corporation's Board of Directors. 

        C.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        D.    Common Stock shall mean the Corporation's common stock. 

        E.    Corporate Transaction shall mean either of the following stockholder-approved transactions: 

          (i)  a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities
are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

         (ii)  the
sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.     Corporation shall mean HireRight, Inc., a California corporation, and any successor corporation to all or
substantially all of the assets or voting stock of HireRight, Inc. which shall by appropriate action adopt the Plan. 

        G.    Disposition Notice shall have the meaning assigned to such term in Paragraph E.2. 

        H.    Exercise Notice shall have the meaning assigned to such term in Paragraph E.3. 

        I.     Fair Market Value of a share of Common Stock on any relevant date, prior to the initial public offering of the Common
Stock, shall be determined by the Plan Administrator after taking into account such factors as it shall deem appropriate. 

        J.     First Refusal Right shall have the meaning assigned to such term in Article E. 

        K.    Market Stand-Off shall mean the market stand-off restriction specified in Paragraph C.4. 

        L.    1933 Act shall mean the Securities Act of 1933, as amended. 

        M.   Owner shall mean Participant and all subsequent holders of the Purchased Shares who derive their chain of ownership
through a Permitted Transfer from Participant. 

        N.    Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the
Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 

        O.    Participant shall mean the person to whom shares are issued under the Stock Issuance Program. 

        P.     Permitted Transfer shall mean (i) a gratuitous transfer of the Purchased Shares, provided
and only if Participant obtains the Corporation's prior written consent to such transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to
Participant's will or the laws of inheritance following Participant's death or (iii) a transfer to the Corporation in pledge as security for any purchase-money indebtedness incurred by
Participant in connection with the acquisition of the Purchased Shares. 

A-1

 

        Q.    Plan shall mean the Corporation's 2000 Stock Option/Stock Issuance Plan attached hereto as Exhibit III. 

        R.    Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 

        S.     Purchase Price shall have the meaning assigned to such term in Paragraph A.1. 

        T.     Purchased Shares shall have the meaning assigned to such term in Paragraph A.1. 

        U.    Recapitalization shall mean any stock split, stock dividend, recapitalization, combination of shares, exchange of shares
or other change affecting the Corporation's outstanding Common Stock as a class without the Corporation's receipt of consideration. 

        V.     Reorganization shall mean any of the following transactions: 

          (i)  a
merger or consolidation in which the Corporation is not the surviving entity, 

         (ii)  a
sale, transfer or other disposition of all or substantially all of the Corporation's assets, 

        (iii)  a
reverse merger in which the Corporation is the surviving entity but in which the Corporation's outstanding voting securities are transferred in whole or in part to a
person or persons different from the persons holding those securities immediately prior to the merger, or 

        (iv)  any
transaction effected primarily to change the state in which the Corporation is incorporated or to create a holding company structure. 

        W.    Repurchase Right shall mean the right granted to the Corporation in accordance with Article D. 

        X.    SEC shall mean the Securities and Exchange Commission. 

        Y.    Service shall mean the Participant's performance of services for the Corporation (or any Parent or Subsidiary) in the
capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee member of
the board of directors or an independent consultant. 

        Z.    Stock Issuance Program shall mean the Stock Issuance Program under the Plan. 

        AA. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        BB.  Target Shares shall have the meaning assigned to such term in Paragraph E.2. 

        CC. Vesting Schedule shall mean the vesting schedule specified in Paragraph D.3 pursuant to which Participant is to
vest in the Purchased Shares in a series of installments over the Participant's period of Service. 

        DD. Unvested Shares shall have the meaning assigned to such term in Paragraph D.1. 

A-2

ADDENDUM

TO

STOCK ISSUANCE AGREEMENT  

        The following provisions are hereby incorporated into, and are hereby made a part of, that certain Stock Issuance Agreement (the "Issuance Agreement") by and
between HireRight, Inc. (the "Corporation") and                        ("Participant") evidencing the shares of Common Stock
purchased on this date by Participant under the Corporation's 2000 Stock
Option/Stock Issuance Plan, and such provisions shall be effective immediately. All capitalized terms in this Addendum, to the extent not otherwise defined herein, shall have the meanings assigned to
such terms in the Issuance Agreement. 

INVOLUNTARY TERMINATION FOLLOWING

CORPORATE TRANSACTION  

        1.     To
the extent the Repurchase Right is assigned to the successor corporation (or parent thereof) in connection with a Corporate Transaction, no accelerated vesting of the
Purchased Shares shall occur upon such Corporate Transaction, and the Repurchase Right shall continue to remain in full force and effect in accordance with the provisions of the Issuance Agreement.
Participant shall, over his or her period of Service following the Corporate Transaction, continue to vest in the Purchased Shares in one or more installments in accordance with the provisions of the
Issuance Agreement. However, upon an Involuntary Termination of Participant's Service within eighteen (18) months following the Corporate Transaction, the Repurchase Right shall terminate
automatically, and all the Purchased Shares shall immediately vest in full at that time. Any unvested escrow account maintained on Participant's behalf pursuant to Paragraph D.5 of the Issuance
Agreement shall also vest at the time of such Involuntary Termination and shall be paid to Participant promptly thereafter. 

        2.     For
purposes of this Addendum, the following definitions shall be in effect: 

        An  Involuntary Termination shall mean the termination of Participant's Service by reason of: 

         (a)  Participant's
involuntary dismissal or discharge by the Corporation for reasons other than for Misconduct, or 

         (b)  Participant's
voluntary resignation following (A) a change in his or her position with the Corporation (or Parent or Subsidiary employing Participant) which
materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in Participant's level of compensation (including base salary,
fringe benefits and target bonus under any corporate-performance based incentive programs) by more than fifteen percent (15%) or (C) a relocation of Participant's place of employment by more
than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation without Participant's consent. 

        Misconduct shall include the termination of Participant's Service by reason or Participant's commission of any act of fraud, embezzlement
or dishonesty, any unauthorized use or disclosure by Participant of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by
Participant adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the
right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other
acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan and this Addendum, to constitute grounds for termination for Misconduct. 

 

        IN WITNESS WHEREOF, HireRight, Inc. has caused this Addendum to be executed by its duly-authorized officer as of the
Effective Date specified below. 

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	
 	

	

 	
 	

Title:	
 	

EFFECTIVE DATE:                         ,
         

2

QuickLinks

HIRERIGHT, INC. 2000 STOCK OPTION/STOCK ISSUANCE PLAN (as amended in July 2006)

ARTICLE ONE GENERAL PROVISIONS

ARTICLE FOUR MISCELLANEOUS

APPENDIX

HIRERIGHT, INC. NOTICE OF GRANT OF STOCK OPTION

EXHIBIT A STOCK OPTION AGREEMENT

EXHIBIT B STOCK PURCHASE AGREEMENT

EXHIBIT C 2000 STOCK OPTION/STOCK ISSUANCE PLAN

HIRERIGHT, INC. NOTICE OF GRANT OF STOCK OPTION

EXHIBIT A STOCK OPTION AGREEMENT

EXHIBIT B STOCK PURCHASE AGREEMENT

EXHIBIT C 2000 STOCK OPTION/STOCK ISSUANCE PLAN

HIRERIGHT, INC. NOTICE OF GRANT OF STOCK OPTION

HIRERIGHT, INC. STOCK PURCHASE AGREEMENT

SPOUSAL ACKNOWLEDGMENT

EXHIBIT I ASSIGNMENT SEPARATE FROM CERTIFICATE

EXHIBIT II FEDERAL INCOME TAX CONSEQUENCES AND SECTION 83(b) TAX ELECTION

INVOLUNTARY TERMINATION FOLLOWING CORPORATE TRANSACTION

SPOUSAL ACKNOWLEDGMENT

EXHIBIT I ASSIGNMENT SEPARATE FROM CERTIFICATE

SECTION 83(b) TAX ELECTIONQuickLinks
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Exhibit 10.6  

AMENDED AND RESTATED

INVESTORS' RIGHTS AGREEMENT  

 Dated as of December 31, 2002  

 by and among  

 HIRERIGHT, INC.  

 and  

 THE FOUNDER LISTED ON SCHEDULE I,  

 AND THE INVESTORS LISTED ON SCHEDULE II  

  

 
 

Table of Contents    
    

	ARTICLE I Registration Rights	 	1
	 	Section 1.1	 	Definitions	 	1
	 	Section 1.2	 	Request for Registration.	 	3
	 	Section 1.3	 	Company Registration	 	5
	 	Section 1.4	 	Form S-3 Registration	 	5
	 	Section 1.5	 	Allocation of Registration Opportunities	 	6
	 	Section 1.6	 	Obligations of the Company	 	8
	 	Section 1.7	 	Furnish Information	 	10
	 	Section 1.8	 	Expenses of Registration	 	10
	 	Section 1.9	 	Delay of Registration	 	10
	 	Section 1.10	 	Indemnification	 	10
	 	Section 1.11	 	Reports Under Securities Exchange Act	 	12
	 	Section 1.12	 	Assignment of Registration Rights	 	13
	 	Section 1.13	 	Limitations on Subsequent Registration Rights	 	13
	 	Section 1.14	 	"Market Stand-Off" Agreement; Additional Restrictions	 	13
	 	Section 1.15	 	Termination of Registration Rights	 	14
	

ARTICLE II Covenants of the Company	
 	

14
	 	Section 2.1	 	Information Rights	 	14
	 	Section 2.2	 	Inspection	 	15
	 	Section 2.3	 	Termination of Covenants	 	15
	 	Section 2.4	 	Investor Board Member Expenses	 	15
	 	Section 2.5	 	Indemnification of Directors	 	15
	 	Section 2.6	 	Directors' and Officers' Liability Insurance	 	15
	 	Section 2.7	 	Key Man Life Insurance	 	16
	 	Section 2.8	 	Confidential Information	 	16
	 	Section 2.9	 	Notice of Certain Events	 	16
	

ARTICLE III Right of First Offer	
 	

16
	 	Section 3.1	 	Right of Major Shareholders	 	16
	 	Section 3.2	 	Offer Procedures	 	17
	 	Section 3.3	 	New Securities	 	17
	 	Section 3.4	 	Termination	 	18
	

ARTICLE IV Miscellaneous	
 	

18
	 	Section 4.1	 	Successors and Assigns	 	18
	 	Section 4.2	 	Governing Law	 	18
	 	Section 4.3	 	Counterparts	 	18
	 	Section 4.4	 	Titles and Subtitles	 	18
	 	Section 4.5	 	Notices	 	18
	 	Section 4.6	 	Expenses	 	19
	 	Section 4.7	 	Amendments and Waivers	 	19
	 	Section 4.8	 	Severability	 	19
	 	Section 4.9	 	Delays or Omissions	 	19
	 	Section 4.10	 	Aggregation of Stock	 	19
	 	Section 4.11	 	Entire Agreement	 	20
	 	Section 4.12	 	Additional Investors	 	20
	

Schedule I	
 	

Schedule of Founder	
 	

 
	Schedule II	 	Schedule of Investors	 	 

i

AMENDED AND RESTATED

INVESTORS' RIGHTS AGREEMENT  

        THIS AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (the "Agreement") is made as of the 31st day of
December 2002, by and among HireRight, Inc., a California corporation (the "Company"), the shareholder of the Company listed on  Schedule I hereto (the "Founder"), and the individuals and entities listed on
Schedule II hereto (each an "Investor" and, collectively, the
"Investors"). 

RECITALS  

        WHEREAS, the Company, the Founder and certain of the Investors (the "Existing Investors") are parties to the
Investors' Rights Agreement dated January 23, 2002, as amended (the "Prior Agreement"); 

        WHEREAS,
certain of the Investors have entered into a Series E Preferred Stock Purchase Agreement (the "Purchase Agreement") with
the Company as of the date hereof to purchase shares of the Company's Series E Preferred Stock (the "Series E Preferred Stock"); 

        WHEREAS,
certain of the obligations of the parties to the Purchase Agreement are conditioned upon the execution and delivery of this Agreement; and 

        WHEREAS,
the Company, the Founder and the Investors who are parties to the Prior Agreement, and who hold at least a majority of the outstanding Registrable Securities (as such term is
defined in the Prior Agreement), desire to amend and restate the Prior Agreement pursuant to Section 4.7 thereof and accept the rights and restrictions created pursuant hereto in lieu of the
rights granted to them under the Prior Agreement. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants set forth herein, and certain other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties to the Prior Agreement agree that the Prior Agreement shall be superseded and replaced in its entirety by this Agreement, and all
parties hereto agree as follows: 

ARTICLE I
  Registration Rights  

        The Company covenants and agrees as follows: 

        Section 1.1    Definitions.    For purposes of this Agreement: 

        (a)   "Board" shall mean the Board of Directors of the Company. 

        (b)   "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, or any similar successor Federal statute and
the rules and regulations thereunder, all as the same shall be in effect from time to time, corresponding to such act. 

        (c)   "Form S-3" means such form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with
the SEC. 

        (d)   "Holder" shall mean any person owning or having the right to acquire Registrable Securities or any assignee thereof in
accordance with Section 1.12 hereof; provided,  however, that the Founder shall not be deemed to be a
Holder for purposes of Section 1.13. 

        (e)   "Initiating Holders" shall mean any Holder or Holders (other than the Founder) who in the aggregate hold not less than
thirty percent (30%) of the outstanding Registrable 

 

Securities
(excluding the Registrable Securities held by the Founder). For the purposes of such calculation, the holders of the Preferred Stock shall be deemed to hold the shares of Common Stock then
issuable upon conversion of such Preferred Stock 

        (f)    "IPO" shall mean the sale of the Company's securities pursuant to a registration statement filed by the Company under the
Securities Act in connection with the initial offering of its securities to the general public. 

        (g)   "Major Shareholder" shall mean a Holder who, together with its affiliates, owns at least 850,000 shares (appropriately
adjusted for any stock splits, stock dividends, combinations, recapitalizations and the like) of Registrable Securities. 

        (h)   "Preferred Stock" shall mean the Company's Series B Preferred Stock, Series C Preferred Stock,
Series E Preferred Stock and any other series of preferred stock of the Company that may be acquired by the Investors. 

        (i)    "Qualified IPO" shall mean a firm commitment underwritten public offering of shares of Common Stock under the Securities
Act with gross proceeds to the Company of at least $25,000,000 in the aggregate, net of underwriting commissions. 

        (j)    The
terms "register," "registered" and
"registration" shall refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the
Securities Act, and the declaration or ordering of effectiveness of such registration statement or document. 

        (k)   "Registration Expenses" shall mean all expenses incurred in effecting any registration pursuant to this Agreement,
including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses
of any regular or special audits incident to or required by any such registration, but shall not include any Selling Expenses. 

        (l)    "Registrable Securities" shall mean the Series E Registrable Securities and the Series B/C Registrable
Securities. 

        (m)  The
number of shares of "Registrable Securities then outstanding" (or "Series E
Registrable Securities then outstanding" or "Series B/C Registrable Securities then outstanding") shall be determined by
the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities
(or Series E Registrable Securities or Series B/C Registrable Securities, as the case may be). 

        (n)   "Rule 144" shall mean Rule 144 as promulgated by the SEC under the Securities Act, as such rule may be
amended from time to time, or any similar successor rule that may be promulgated by the SEC. 

        (o)   "SEC" shall mean the Securities and Exchange Commission. 

        (p)   "Securities Act" shall mean the Securities Act of 1933, as amended, or any similar successor Federal statute and the
rules and regulations thereunder, all as the same shall be in effect from time to time, corresponding to such act. 

        (q)   "Selling Expenses" shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable
Securities and all fees and disbursements of counsel for any Holder (other than the fees and disbursements of (i) counsel for the Company included in Registration Expenses and (ii) one
counsel for the Selling Holders as provided in Section 1.8). 

2

 

        (r)   "Series B Registrable Securities" shall mean (i) shares of Common Stock issuable or issued upon conversion
of the Series B Preferred Stock (provided that such shares of Common Stock held by or issuable to the Founder upon conversion of the Preferred Stock shall not be deemed Registrable Securities
for the purposes of Section 1.13 and Section 4.7); and (ii) any shares of Common
Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in
replacement of the shares referenced in (i) above. 

        (s)   "Series B/C Registrable Securities" shall mean the Series B Registrable Securities and the Series C
Registrable Securities. 

        (t)    "Series C Registrable Securities" shall mean (i) shares of Common Stock issuable or issued upon conversion
of the Series C Preferred Stock; (ii) shares of Common Stock issuable upon exercise of any warrants or options held by the Investors as of the date hereof or subsequently issued to the
Investors (but not including the securities described in clause (ii) or (iii) of Section 1.1(u) below); and (iii) any shares
of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of the shares referenced in (i) or (ii) above. 

        (u)   "Series E Registrable Securities" shall mean (i) shares of Common Stock issuable or issued upon conversion
of the Series E Preferred Stock; (ii) shares of Common Stock issuable upon exercise (and the subsequent conversion) of any warrants or options for Series E Preferred Stock held by
the Investors as of the date hereof or subsequently issued to the Investors; (iii) shares of Common Stock issuable upon exercise of any warrants issued to Exult, Inc.; and
(iv) any shares of Common Stock issued as (or
issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of the
shares referenced in (i), (ii) or (iii) above. 

        Section 1.2    Request for Registration.    

        (a)   If
the Company shall receive, at any time after the earlier of January 1, 2006 or one hundred eighty (180) days following the consummation of the IPO, a
written request from the Initiating Holders that the Company file a registration statement under the Securities Act covering the registration of the Series E Registrable Securities then
outstanding with an anticipated aggregate offering price, net of underwriting discounts and commissions, which would exceed $35,000,000, then the Company shall (i) within fifteen
(15) days of the receipt thereof, give written notice of such request to all Holders and (ii) prepare and file, as expeditiously as reasonably possible and in any event within ninety
(90) days of the receipt of such request, such a registration statement with the SEC and use its best efforts to effect, as expeditiously as reasonably possible, the registration under the
Securities Act of all Registrable Securities which the Holders request to be registered in such request and as are specified by the Holders in a written request given within thirty (30) days
after receipt of such written notice from the Company, subject to the limitations of Section 1.2(b) hereof. 

        (b)   If
the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a
part of their request made pursuant to Section 1.2(a) hereof, and the Company shall include such information in the written notice referred to in  Section 1.2(a)
 hereof. The underwriter, which shall be an internationally recognized investment bank, will be selected by the Company and shall
be reasonably acceptable to a majority in interest of the Initiating Holders. The right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon
such Holder's participation in such underwriting and the inclusion of such 

3

 

Holder's
Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 1.6(e)) enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this  Section 1.2, if the underwriter advises the
Company that marketing factors require a limitation of the number of shares to be underwritten, then
the Company shall so advise all Holders of Registrable Securities, which would otherwise be underwritten pursuant hereto, and the number of securities that may be included in the underwriting pursuant
to this Section 1.2 shall be allocated in the following order: 

          (i)  first,
among all of the Holders of the Series E Registrable Securities requesting to participate in such underwriting (pro rata as between the Holders thereof
based upon the number of Series E Registrable Securities then owned by each such Holder); 

         (ii)  second,
among all of the Holders of the Series B/C Registrable Securities requesting to participate in such underwriting (pro rata as between the Holders thereof
based upon the number of Series B/C Registrable Securities then owned by each such Holder); 

provided, however, that in any underwriting pursuant to this  Section 1.2, the number of shares of
Registrable Securities to be included in such underwriting shall not be reduced unless all other securities
are first entirely excluded from the underwriting. 

        (c)   Notwithstanding
the foregoing, if the Company shall furnish to Holders requesting a registration pursuant to this  Section 1.2, a certificate signed by the Chief Executive Officer of the Company stating that in the
good faith judgment of the Board of Directors
of the Company, it would be seriously detrimental to the Company and its shareholders for a registration statement to be filed, to become effective or to remain effective, and it is therefore
essential to defer the filing of such registration statement, the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days
after receipt of the request of the Initiating Holders; provided, however, that the Company may not use
this right more than once in any twelve (12) month period. 

        (d)   In
addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this  Section 1.2: 

          (i)  After
the Company has initiated four (4) registrations pursuant to Section 1.2(a) and (A) such
registrations have been declared or ordered effective and, with respect to the second such registration, at least ninety percent (90%) of the Registrable Securities sought to be registered by the
Holders in such registration have been included in the final registration statement declared effective by the SEC or (B) such registrations have been withdrawn by the Holders registering shares
therein (unless, in the case of a withdrawal, the Holders bear the Registration Expenses or such withdrawal is based on material adverse information, all as described in  Section 1.8 below);

         (ii)  Within
six (6) months after the effective date of the IPO or Qualified IPO, as applicable; 

        (iii)  If
the Company has given notice to the Holders of Registrable Securities within thirty (30) days after receipt of the registration request of the Company's
intent to file a registration statement for a registered public offering within ninety (90) days; or 

4

 

        (iv)  If
the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request
made pursuant to Section 1.4 below. 

        (e)   Notwithstanding
the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this  Section 1.2, a certificate signed by the Chief Executive Officer of the Company to the
effect that (i) the Company is aware of nonpublic
information relating to the Company that has not been disclosed in the registration statement either by incorporation of information included in documents filed by the Company with the SEC in
accordance with the Exchange Act or by information included directly in the registration statement, and (ii) in the good faith judgment of the Company, the disclosure of such information in the
registration statement is necessary such that the registration statement and the prospectus included therein do not misstate a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, then each Holder expressly agrees not to effect any sales of Registrable Securities pursuant to such
registration statement until such time as such Holder (I) is advised in writing by the Company that the use of the applicable prospectus contained in such registration statement may be resumed,
(II) has received additional copies of a supplemental or amended prospectus, if applicable, and (III) has received copies of any additional or supplemental filings, if any, which are
incorporated or deemed to be incorporated by reference in such prospectus. In addition, the Holders further agree not to effect any sales of Registrable Securities pursuant to a registration statement
filed pursuant to this Section 1.2 during any period in which the SEC shall have issued any order or communicated comments (whether written or
oral) to the Company in connection with such filing (or any other filings that the Company may make in connection therewith) that sales of any securities pursuant to such registration statement should
be delayed or suspended. 

        Section 1.3    Company Registration.    If, but without any obligation to do so, the Company proposes to
register (including for this purpose a registration effected by the Company for the Holders or shareholders other than the Holders) any of its stock or other securities under the Securities Act in
connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan, a registration on
any form which does not include (taking into account any information incorporated by reference) substantially the same information as would be required to be included in a registration statement
covering the sale of the Registrable Securities or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities which are also being
registered), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after giving
such notice by the Company in accordance with Section 4.5, the Company shall, subject to  Section 1.5, cause to be registered under the Securities
Act all of the Registrable Securities that each such Holder has requested to be
registered. 

        Section 1.4    Form S-3 Registration.    In the event that the Company shall receive a
written request from any Holder or Holders of Registrable Securities then outstanding having a market value of at least $1,000,000 that the Company effect a registration on
Form S-3, and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company shall
(i) within fifteen (15) days of the receipt thereof, give written notice of the proposed registration, and any related qualification or compliance, to all other Holders and
(ii) subject to Section 1.5 hereof, prepare and file, as expeditiously as reasonably possible and in any event within
seventy-five (75) days of receipt of such request, a registration statement on Form S-3 with the SEC and use its best efforts to effect, as expeditiously as
reasonably possible, such registration and all such qualifications and compliances as may be so 

5

 

requested
and as would permit or facilitate the sale and distribution of all or such portion of such Holder's or Holders' Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within thirty (30) days after receipt of such
written notice from the Company. 

        (a)   Notwithstanding
the foregoing, the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this  Section 1.4: (i) if Form S-3 is not available for such
offering by the Holders; (ii) if the Holders, together
with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities at an aggregate price to the public (net of any underwriters'
discounts or commissions) of less than $1,000,000; (iii) if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer of the Company stating that in the good
faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such Form S-3 registration to be effected at such
time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt
of the request of the Holder or Holders under this Section 1.4, provided that the Company shall
not utilize this right more than once in any twelve (12) month period; or (iv) if the Company has previously conducted two registrations on Form S-3 pursuant to this  Section 1.4
during any twelve (12) month period and such registrations have been declared or ordered effective. 

        (b)   Notwithstanding
the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this  Section 1.4, a certificate signed by the Chief Executive Officer of the Company to the
effect that (i) the Company is aware of nonpublic
information relating to the Company that has not been disclosed in the registration statement either by incorporation of information included in documents filed by the Company with the SEC in
accordance with the Exchange Act or by information included directly in the registration statement, and (ii) in the good faith judgment of the Company, the disclosure of such information in the
registration statement is necessary such that the registration statement and the prospectus included therein do not misstate a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, then each Holder expressly agrees not to effect any sales of Registrable Securities pursuant to such
registration statement until such time as such Holder (I) is advised in writing by the Company that the use of the applicable prospectus contained in such registration statement may be resumed,
(II) has received additional copies of a supplemental or
amended prospectus, if applicable, and (III) has received copies of any additional or supplemental filings, if any, which are incorporated or deemed to be incorporated by reference in such
prospectus. In addition, the Holders further agree not to effect any sales of Registrable Securities pursuant to a registration statement filed pursuant to this  Section 1.4 during any period in
which the SEC shall have issued any order or communicated comments (whether written or oral) to the Company in
connection with such filing (or any other filings that the Company may make in connection therewith) that sales of any securities pursuant to such registration statement should be delayed or
suspended. 

        Section 1.5    Allocation of Registration Opportunities.    

        (a)   In
connection with any offering pursuant to Section 1.3 hereof involving an underwriting of shares of the
Company's capital stock, the Company shall not be required to include any of the Holders' securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the
Company and the underwriters selected by it, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If
the total amount of securities, 

6

 

including
Registrable Securities, requested by shareholders to be included in such offering exceeds the amount of securities to be sold other than by the Company that the underwriters determine in
their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable
Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling
shareholders according to the total amount of securities entitled to be included therein owned by each selling shareholder or in such other proportions as shall mutually be agreed to by such selling
shareholders); provided, however, that the managing underwriter shall limit or exclude up to all of the securities of holders of capital stock of the Company as follows: (i) first, among
securities requested to be included in such registration by any shareholder of the Company other than a Holder and otherwise eligible to be included in such registration, (ii) second, ratably
among the Series B/C Registrable Securities requested by the Holders to be included in such registration and otherwise eligible to be included in such registration, (iii) third, ratably
among the Series E Registrable Securities requested by the Holders to be included in such registration and otherwise eligible to be included in such registration, and (iv) fourth, among
the securities which the Company proposes to sell; but in no event shall the amount of securities of the selling Holders included in the offering be reduced below twenty percent (20%) of the total
amount of securities included in such offering; provided, further, that in the event of the IPO, the number of shares held by the Holders and any other shareholder proposed to be included in the
offering may be reduced to zero. For purposes of the preceding provisions concerning apportionment, for any selling shareholder which is a holder of Registrable Securities and which is a partnership
or corporation, the partners, retired partners and shareholders of such holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the
foregoing persons shall be deemed to be a single "selling shareholder," and any pro-rata reduction with respect to such "selling shareholder" shall be based upon the aggregate amount of
shares carrying registration rights owned by all entities and individuals included in such "selling shareholder," as defined in this sentence. 

        (b)   In
connection with any offering pursuant to Section 1.4 hereof involving an underwriting of shares of the
Company's capital stock, the Company shall not be required to include any of the Holders' securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the
Company and the underwriters selected by it, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If
the total amount of securities, including Registrable Securities, requested by shareholders to be included in such offering exceeds the amount of securities to be sold other than by the Company that
the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities,
including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among
the selling shareholders according to the total amount of securities entitled to be included therein owned by each selling shareholder or in such other proportions as shall mutually be agreed to by
such selling shareholders); provided, however, that the managing underwriter shall limit or exclude up to all of the securities of holders of capital stock of the Company as follows: (i) first,
among securities requested to be included in such registration by any shareholder of the Company other than a Holder and otherwise eligible to be included in such registration, (ii) second,
ratably among the Series B/C Registrable Securities requested by the Holders to be included in such registration and otherwise eligible to be included in such registration, and
(iii) third, ratably among the Series E Registrable Securities requested by the 

7

 

Holders
to be included in such registration and otherwise eligible to be included in such registration. For purposes of the preceding provisions concerning apportionment, for any selling shareholder
which is a holder of Registrable Securities and which is a partnership or corporation, the partners, retired partners and shareholders of such holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single "selling shareholder," and any pro-rata reduction with respect
to such "selling shareholder" shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such "selling shareholder," as defined
in this sentence. 

        Section 1.6    Obligations of the Company.    Whenever required under this ARTICLE
I to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

        (a)   Prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to
become effective, and, upon the request of the holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or until the distribution contemplated in the registration statement has been completed; 

        (b)   Prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as
may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement; 

        (c)   Furnish
to the Holders and the underwriters, if any, such numbers of copies of the prospectus, including a preliminary prospectus, and any amendments thereto and any
other documents required to be provided to the Holders in conformity with the requirements of the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate
the disposition of Registrable Securities owned by them; 

        (d)   Use
its best efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as
shall be reasonably requested by the Holders and do any and all other acts and things that may be required of the Company by such securities and blue sky laws to enable such selling Holders to
consummate the sale or other disposition of the securities owned by them; provided that the Company shall not be required to register or qualify any
such securities or do any acts or things in any state or jurisdiction in which, as a result of or in connection with or as a condition to any such registration, qualification or act or thing, the
Company would be required to qualify to do business or to file a general consent to service of process, unless the Company is already subject to service in such jurisdiction and except as may
be required by the Securities Act; 

        (e)   If
so requested by a Holder whose Registrable Securities are being registered on a registration statement or prospectus pursuant to ARTICLE
I hereof, furnish to the counsel for such Holder, within a reasonable time before filing such document with the SEC, a copy of such registration statement or prospectus (or
amendments or supplements thereto); 

8

  

        (f)    Use
its best efforts to prevent the issuance of any order suspending the effectiveness of a registration statement and, if one is issued, promptly notify the Holders of
the issuance of any such order and use its best efforts to obtain the withdrawal of any such order; 

        (g)   In
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing
underwriter of such offering; 

        (h)   Notify
each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances then existing, not misleading; and, as promptly as practicable
thereafter, prepare and file with the SEC and furnish a supplement or amendment to such prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities, such prospectus
will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
then existing, not misleading; 

        (i)    Cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange or quoted on the quotation system on which similar
securities issued by the Company are then listed or quoted (or if the Common Stock is not yet listed or quoted, then on such exchange or quotation system as the selling Holders of Registrable
Securities and the Company shall mutually agree); 

        (j)    Provide
a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities not later than
the effective date of such registration; 

        (k)   Use
its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this ARTICLE
I, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this ARTICLE
I, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with
respect to such securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable
Securities, and (ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities; 

        (l)    Make
available to each selling Holder, any underwriter participating in any disposition pursuant to a registration statement, and any attorney, accountant or other agent
or representative retained by any such selling Holder or underwriter (collectively, the "Inspectors"), upon request, all financial and other records,
pertinent corporate documents and properties of the Company as shall be reasonably necessary to enable them to exercise their due diligence responsibility and cause the Company's officers, directors
and employees to supply all information reasonably requested by any such Inspector in connection with such registration statement, subject, in each case, to such confidentiality agreements as the
Company shall reasonably request; and 

9

 

        (m)  Otherwise
cooperate with the underwriter(s) and the SEC and other regulatory agencies and take all reasonable actions and execute and deliver or cause to be executed and
delivered all documents reasonably necessary to effect the registration of the Registrable Securities pursuant to this Agreement. 

        Section 1.7    Furnish Information.    It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this ARTICLE I with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the
Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such
Holder's Registrable Securities. 

        Section 1.8    Expenses of Registration.    All Registration Expenses, as well as the reasonable fees and
expenses of one counsel for the selling shareholders, incurred in connection with any registration, qualification or compliance pursuant to  Section 1.2, Section 1.3 and  Section 1.4 hereof shall be borne by the Company; provided,  however, that if the Holders bear the Registration Expenses for any registration proceeding begun pursuant to  Section 1.2 and subsequently withdrawn by the Holders
registering shares therein, such registration proceeding shall not be counted as a
requested registration pursuant to Section 1.2 hereof, except in the event that such withdrawal is based upon material adverse information
relating to the Company that is different from the information known or available (upon request from the Company or otherwise) to the Holders requesting registration at the time of their request for
registration under Section 1.2, in which event such registration shall not be treated as a counted registration for purposes of  Section 1.2
hereof, even though the Holders do not bear the Registration Expenses for such registration. All Selling Expenses relating to
securities so registered shall be borne by the Holders of such securities pro rata on the basis of the number of shares of securities so registered on their behalf. 

        Section 1.9    Delay of Registration.    No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this ARTICLE
I. 

        Section 1.10    Indemnification.    In the event any Registrable Securities are included in a registration
statement under this ARTICLE I: 

        (a)   To
the extent permitted by law, the Company will indemnify and hold harmless each Holder (which term shall include for purposes of this  Section 1.10(a), its partners, officers, directors and, if an
investment fund, its managers), any underwriter (as defined in the Securities Act)
for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities
(joint or several) to which they may become subject under the Securities Act or the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions or violations (each, a "Violation"): (i) any untrue
statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or
(iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation promulgated under the Securities Act, the
Exchange Act or any state securities law; and the Company will pay to each such Holder, underwriter or controlling person, any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided, however, that
the indemnity agreement contained in this Section 1.10(a) shall not 

10

 

apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably
withheld or delayed), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person. 

        (b)   To
the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the
registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling securities in such registration statement and
any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under
the Securities Act or the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in
connection with such registration; and each such Holder will pay, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this  Section 1.10(b),
in connection with investigating or defending any such loss, claim, damage, liability or action; provided,  however, that the indemnity agreement contained
in this Section 1.10(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld or
delayed); provided, further, that in no event shall any indemnity under this Section 1.10(b)
exceed the net proceeds from the offering received by such Holder. 

        (c)   Promptly
after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this  Section 1.10, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to
the parties; provided, however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of
such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its
ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.10, but the
omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this  Section 1.10. 

        (d)   If
the indemnification provided for in this Section 1.10 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense 

11

 

in
such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided,  however, that
in no event shall any contribution under this Section 1.10(d) exceed the net
proceeds from the offering received by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. The Company and the selling Holders agree that it would not be just and equitable
if contribution pursuant to this Section 1.10(d) were determined by pro rata or per capita allocation or by any other method of allocation which
does not take account the foregoing equitable considerations. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not found guilty of such fraudulent misrepresentation. 

        (e)   Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection
with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 

        (f)    The
obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of
Registrable Securities in a registration statement under this ARTICLE I and the termination of this Agreement. 

        Section 1.11    Reports Under Securities Exchange Act.    With a view to making available to the Holders the
benefits of Rule 144, the Company agrees to: 

        (a)   Make
and keep public information available, as those terms are understood and defined in Rule 144, at all times after ninety (90) days after the effective
date of the registration statement filed by the Company for the IPO, and take all action as may be required of the Company as a condition to the availability of Rule 144; 

        (b)   Take
such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Holders to utilize
Form S-3 for the resale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the registration statement filed by
the Company for the IPO is declared effective; 

        (c)   File
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; 

        (d)   Furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied
with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company), the Securities Act and
the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3
(at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such
form; and 

12

 

        (e)   Facilitate
transfers of Registrable Securities pursuant to Rule 144, including providing timely notice to its transfer agent to expedite such transfers. 

        Section 1.12    Assignment of Registration Rights.    The rights to cause the Company to register Registrable
Securities pursuant to this ARTICLE I may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities
that (a) is a subsidiary, parent, member, affiliate, partner, limited partner, retired partner or shareholder of a Holder or (b) is a Holder's family member or a trust for the benefit of
an individual Holder or such Holder's family members; provided, however that (i) the Company is,
within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are
being assigned; (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including, without limitation, the provisions of  Section 1.13 below; and (iii) such assignment shall be effective only if immediately following such transfer the further disposition of
such securities by the transferee or assignee is restricted under the Securities Act. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee,
the holdings of transferees and assignees of a partnership who are partners or retired partners of such partnership (including spouses and ancestors, lineal descendants and siblings of such partners
or spouses who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership; provided,  however, that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single
attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this ARTICLE I. 

        Section 1.13    Limitations on Subsequent Registration Rights.    From and after the date of this Agreement,
the Company shall not, without the prior written consent of the Holders of seventy-five percent (75%) of the Series E Registrable Securities then outstanding, enter into any
agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder (a) to include such securities in any registration filed
hereunder, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such holder's
securities will not reduce the amount of the Series E Registrable Securities which is included, (b) to make a demand registration which could result in such registration statement being
declared effective prior to the earliest of the dates set forth in Section 1.2(a) hereunder, or (c) to obtain registration rights which
are senior or pari passu to the registration rights granted to the Holders of Series E Registrable Securities hereunder. 

        Section 1.14    "Market Stand-Off" Agreement; Additional Restrictions.    Each Holder hereby agrees
that it will not, without the prior written consent of the managing underwriter, during the period commencing on the later of (i) sixty (60) days prior to the effective date of the
offering or (ii) the date notice of the offering is given to the Holder in accordance with Section 4.5 hereof, and ending on the date
specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days from the effective date of the IPO or ninety (90) days after the effective
date of any follow-on offering) (a) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock
held by it immediately prior to the date of the final prospectus, or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Common Stock held by it immediately prior to the date of the final prospectus, whether any such transaction described in clause (a) or (b) above is to be
settled by delivery of Common Stock or such other securities, in cash or otherwise. The underwriters in connection with any such offering are intended third party beneficiaries of this  Section 1.14
and 

13

 

shall
have the right, power and authority to enforce the provisions hereof as though they were a party hereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions and restrictive legends with respect to such securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction)
until the end of such period. The foregoing provisions of this Section 1.14 shall not apply to the sale of any shares to an underwriter pursuant
to an underwriting agreement and shall only be applicable to the Holders if all officers and directors and greater than five percent (5%) shareholders of the Company enter into similar agreements;  provided, further, that if any officer or director that is subject to such "market stand-off
agreement" is released from his restrictions to permit the sale of securities with a sale price of more than $250,000 prior to the end of its specified duration, then each Holder shall likewise be so
released from such restrictions with respect to the same percentage of its securities and at the same time. The restrictions contained in this  Section 1.14 shall terminate after the IPO with
respect to any Holder who, together with its affiliates, beneficially owns less than 1% of the
Company's Common Stock then outstanding (assuming conversion of all outstanding preferred stock held by such Holder and exercise of all vested warrants or options of such Holder to purchase capital
stock of the Company). 

        Section 1.15    Termination of Registration Rights.    No Holder shall be entitled to exercise any right
provided for in this ARTICLE I (a) at any time after five (5) years following the consummation of the IPO, or (b) at any time after
the IPO at which all Registrable Securities held by such Holder can be sold in compliance with Rule 144(k) promulgated under the Securities Act, or (c) with respect to any Registrable
Securities that are then currently the subject of another registration statement that has been filed by the Company with the SEC under the Securities Act. 

ARTICLE II
  Covenants of the Company  

        Section 2.1    Information Rights.    The Company shall deliver to each Major Shareholder: 

        (a)   as
soon as practicable, but in any event within one hundred fifty (150) days after the end of each fiscal year of the Company, a consolidated balance sheet of the
Company and a consolidated statement of shareholders' equity as of the end of such year, and a consolidated statement of operations and a consolidated statement of cash flows for such year, such
year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles ("GAAP"), and
audited by an independent "Big Four" public accounting firm selected by the Company; 

        (b)   within
forty-five (45) days of the end of each fiscal quarter, an unaudited consolidated balance sheet of the Company for, and as of, the end of such
fiscal quarter, an unaudited consolidated statement of operations and a consolidated statement of cash flows, in reasonable detail; 

        (c)   within
thirty (30) days of the end of each month, an unaudited income statement and schedule as to the sources and application of funds and balance sheet for and
as of the end of such month, in reasonable detail; 

        (d)   at
least once each month, as soon as prepared but within thirty (30) days of the end of the month at the latest, unless modified by (or at the request of) the
Board, updated monthly income, cash-flow and balance sheet statements, including actual amounts, budgeted amounts and updated forecast amounts for all months in the then current calendar
year, and after October of each year, for the next three months; 

        (e)   as
soon as practicable, but in any event at least thirty (30) days prior to the end of each fiscal year, a budget for the next fiscal year prepared on a monthly
basis, including 

14

 

balance
sheets, sources and applications of funds statements for each of the months therein and a directional three year plan and financial projections approved by the Board, and, as soon as prepared,
any other budgets or revised budgets prepared by the Company; 

        (f)    as
soon as available, any other information and data not already provided pursuant to any other subsection of this  Section 2.1 setting forth any change, event or condition specific to the Company's
business (and not any general economic trends or market
conditions or changes, events or conditions affecting businesses generally), which the Company believes could have a material adverse effect on the Company's or any of its subsidiaries' business,
financial condition or operation; 

        (g)   from
the date the Company becomes subject to the reporting requirements of the Exchange Act, and in lieu of the financial information required pursuant to subsections
(a) and (b) hereof, copies of its annual reports on Form 10-K and its quarterly reports on Form 10-Q, respectively; 

        (h)   with
respect to the financial statements called for in Section 2.1(b) and  Section 2.1(c) hereof, an instrument executed by the Chief Financial Officer
or Chief Executive Officer of the Company and certifying that such
financials were prepared in accordance with generally accepted accounting principles consistently applied with prior practice for earlier periods (with the exception of footnotes that may be required
by GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end audit adjustment; and 

        (i)    such
other information relating to the financial condition, business, prospects or corporate affairs of the Company as the Major Shareholder may from time to time
reasonably request. 

        Section 2.2    Inspection.    The Company shall permit each Major Shareholder, at such Major Shareholder's
expense, to visit and inspect the Company's properties, to examine its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such
reasonable times and during normal business hours as may be requested by such Major Shareholder. 

        Section 2.3    Termination of Covenants.    The covenants set forth in this ARTICLE
II shall terminate and be of no further force or effect upon the earlier of (a) the consummation of the IPO, or (b) the date the Company first becomes subject to
the periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act. 

        Section 2.4    Investor Board Member Expenses.    The Company shall pay, in accordance with its standard
reimbursement policy, for the reasonable out-of-pocket expenses incurred by the directors who are designated by Major Shareholders when attending meetings of the Board and its
committees. 

        Section 2.5    Indemnification of Directors.    The Bylaws of the Company shall, at all times require the
Company to indemnify its directors to the full extent permitted by applicable law. 

        Section 2.6    Directors' and Officers' Liability Insurance.    The Company shall maintain in full force and
effect, Directors' and Officers' liability insurance in such amounts, with such coverages and with a carrier authorized to do business in California, as deemed appropriate by the Board. 

15

  

        Section 2.7    Key Man Life Insurance    Unless the Board unanimously agrees otherwise, within sixty
(60) days after the Closing, the Company shall obtain life insurance of at least $2 million, which proceeds are payable to the Company, on Eric Boden, the Company's Chief Executive
Officer. 

        Section 2.8    Confidential Information    Notwithstanding any other provision of this  ARTICLE II, including but not limited to
Section 2.1(i) and  Section 2.2 hereof, the Company shall not be obligated (i) to provide information which the Company deems in good faith
to be a trade
secret or similar confidential information or (ii) to provide information to a Major Shareholder, or a representative of a Major Shareholder, who the Company reasonably believes is a competitor
or a potential competitor of the Company. Notwithstanding the foregoing, in the case of clause (i) of the foregoing sentence, the Company shall provide a Major Shareholder with such trade
secret or similar confidential information if such Major Shareholder executes and delivers to the Company a binding confidentiality agreement with respect to such information. 

        Section 2.9    Notice of Certain Events.    

        (a)   In
each case of an adjustment or readjustment of the Conversion Price (as such term is defined in the Company's Amended and Restated Articles of Incorporation) for a
particular series of Preferred Stock, the Company shall provide notice of such adjustment or readjustment to the holders of the affected series of Preferred Stock and, upon request, cause its Chief
Financial Officer or Controller or similar officer to compute such adjustment or readjustment in accordance with the provisions of the Company's Articles of Incorporation as then in effect and prepare
a certificate showing such adjustment or readjustment, and shall provide such certificate to the holder requesting such computation and certificate. 

        (b)   In
the event of any Change in Control or any voluntary or involuntary dissolution, liquidation or winding up of the Company, unless required by applicable law or by the
Company's Articles of Incorporation or Bylaws to provide earlier notice, the Company shall provide to each holder of Preferred Stock, at least ten (10) days' prior to the date on which such
Change in Control, dissolution, liquidation or winding up is expected to become effective (the "Expected Effective Date"), a notice specifying the
Expected Effective Date and the date that is to be fixed, if any, as to when the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or
other securities) for securities or other property deliverable upon such Change in Control, dissolution, liquidation or winding up. "Change in Control" shall mean (i) an acquisition of the
Company by another entity by means of any transaction or series of related transactions (including, without limitation, any acquisition of stock, reorganization, merger or consolidation), or
(ii) a sale of all or substantially all of the assets of the Company; unless in (i) or (ii) above, the Company's shareholders of record as constituted immediately prior to the
acquisition will, immediately after the acquisition or
sale (by virtue of securities issued as consideration for the Company's acquisition or sale or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity. 

ARTICLE III
  Right of First Offer  

        Section 3.1    Right of Major Shareholders.    Subject to the terms and conditions specified in this  ARTICLE III, the Company hereby grants
to each Major Shareholder a right of first offer with respect to future sales or issuances by the Company of its
New Securities (as defined herein). A Major Shareholder who chooses to exercise this right of first offer may designate as purchasers under such right itself or its partners or affiliates in such
proportions as it deems appropriate. 

16

 

        Section 3.2    Offer Procedures    Each time the Company proposes to offer any shares of New Securities, the
Company shall first make an offering of such New Securities to each Major Shareholder in accordance with the following provisions: 

        (a)   The
Company shall deliver a written notice in accordance with Section 4.5 herein (a "New
Securities Notice") to the Major Shareholders stating (i) its intention to offer such New Securities, (ii) the number of such New Securities proposed to be
offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities. 

        (b)   Within
twenty (20) days after the New Securities Notice is given, each Major Shareholder may elect to purchase or obtain, at the price and on the terms specified
in the New Securities Notice, up to that portion of such New Securities to be issued which equals the proportion that the number of shares of Common Stock issued and held by such Major Shareholder
(assuming full conversion of all Preferred Stock then held by such Major Shareholder) bears to the total number of shares of Common Stock of the Company then outstanding (assuming full conversion of
all Preferred Stock). The Company shall promptly, in writing, inform each Major Shareholder who purchases its full pro rata portion of the New Securities (each a "Fully
Exercising Shareholder") of any other Major Shareholder's failure to do likewise. During the ten (10) day period (the "Remaining
Period") commencing after the receipt of such information, each Fully Exercising Shareholder shall be entitled to obtain that portion of the New Securities entitled to be
subscribed for by the other Major Shareholders but not subscribed for by such shareholders (the "Unsubscribed New Securities") which is equal to the
proportion that the number of shares of Common Stock issued and held by such Fully Exercising Shareholder (assuming full conversion of all Preferred Stock then held by such Major Shareholder) bears to
the total number of
shares of Common Stock issued and held by all Fully Exercising Shareholders (assuming full conversion of all Preferred Stock) who wish to purchase some of the Unsubscribed New Securities. 

        (c)   The
Company may, during the ninety (90) day period following the expiration of the Remaining Period provided in  Section 3.2(b) hereof, offer the remaining unsubscribed portion of the New
Securities to any person or persons at a price not less than, and upon
terms no more favorable to the offeree than, those specified in the New Securities Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if
such agreement is not consummated within ninety (90) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered
unless first reoffered to the Major Shareholders in accordance herewith. 

        Section 3.3    New Securities.    For the purposes of this ARTICLE
III, the term "New Securities" shall mean any equity securities of the Company, including any securities convertible, with or
without consideration, into any equity securities of the Company, any option, warrant or right to subscribe for or purchase any equity securities of the Company, and any security carrying any such
option, warrant or right, except the following: (i) securities issued to employees, officers, directors of, consultants or advisors to the Company pursuant to plans or other incentive
arrangements or agreements approved by the Board; (ii) securities issued to financial institutions or lessors in connection with commercial credit arrangements, equipment financings or similar
transactions approved by the Board or issued to strategic partners or in connection with business arrangements approved by the Board, including but not limited to warrants issued or issuable to
Exult, Inc. and/or Citicorp Strategic Technologies Corp. (or their affiliates); (iii) securities issued as consideration (and not primarily for financing purposes) in connection with
business combinations, acquisitions, mergers, asset purchase, other reorganization or similar transaction approved by the Board; (iv) securities issued pursuant to the conversion or exercise of
convertible or exercisable securities outstanding on the date hereof; (v) securities issued in connection with the IPO; (vi) securities issued pursuant to a stock split, stock dividend
or recapitalization with respect to the 

17

 

outstanding
capital stock of the Company; (vii) securities issued or issuable in connection with any anti-dilution protective rights set forth in the Company's Articles of
Incorporation as amended; (viii) securities issued or issuable in connection with those certain convertible subordinated promissory notes dated December 12, 2002; (ix) securities
issued or issuable in connection with that certain Convertible Subordinated Note and Warrant Purchase Agreement entered into by and among such holders and the Company in January 2002; or
(x) shares of Series E Preferred Stock issued pursuant to the Purchase Agreement. 

        Section 3.4    Termination.    The right set forth in this ARTICLE
III shall terminate and be of no further force or effect upon the consummation of the IPO. 

ARTICLE IV
  Miscellaneous  

        Section 4.1    Successors and Assigns.    Except as otherwise provided herein, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or
by reason of this Agreement, except as expressly provided in this Agreement. 

        Section 4.2    Governing Law.    This Agreement shall be governed by and construed under the laws of the State
of California, without giving effect to conflicts of laws principles. 

        Section 4.3    Counterparts.    This Agreement may be executed in two or more counterparts, including
counterparts transmitted by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        Section 4.4    Titles and Subtitles.    The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 

        Section 4.5    Notices.    All notices and other communications hereunder shall be in writing and shall be
deemed given to the party to be notified (a) upon personal delivery, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, and if not sent during
normal business hours, then on the next business day, (c) three (3) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or
(d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All such notices shall be sent to the
parties at the address for each party set forth herein or beneath each party's name in Schedule I or  Schedule II hereto (or at such other address
for a party as shall be specified by like notice): 

          (i)  if
to the Company: 

HireRight, Inc.

2100 Main Street, Suite 400

Irvine, CA 92614

Fax: (949) 428-5801

Attn: Chief Executive Officer 

with
a copy to: 

Brobeck,
Phleger & Harrison LLP

38 Technology Drive

Irvine, CA 92618

Fax: (949) 790-6301

Attn: Ellen S. Bancroft, Esq. 

18

 

         (ii)  if
to any of the Investors: 

At
the respective addresses set forth below such Investor's name on Schedule II hereto. 

        (iii)  if
to the Founder: 

At
the address set forth below the Founder's name on Schedule I hereto. 

        Section 4.6    Expenses.    If any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

        Section 4.7    Amendments and Waivers.    Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of (a) as to the Company, only by
the Company, and (b) as to the Holders, by (i) the Holders of a majority of the Registrable Securities then outstanding and (ii) the Holders of at least seventy-five
percent (75%) of the Series E Registrable Securities then outstanding; provided, however, that the seventy-five percent (75%) requirement set forth in the foregoing
clause (ii) and in Section 1.13 may be amended by the holders of such percentage of the outstanding shares of the Series E
Registrable Securities without the approval or consent of the Company or any other party to this Agreement. Notwithstanding the foregoing, (x) any amendment of this Agreement that
disproportionately, materially and adversely affects the Founder's rights hereunder (other than to grant registration rights, including demand
registration rights, to other parties, including rights that are senior to or on parity with the rights granted to the Founder) will also require the written consent of Founder and (y) any
amendment of this Agreement which effects a change in the definition of the term "Major Shareholder" so as to cause a Major Shareholder to cease being a Major Shareholder after such change is effected
will also require the written consent of the affected Major Shareholder. Any amendment or waiver effected in accordance with this Section shall be binding upon each holder of any Registrable
Securities then outstanding, each future holder of all such Registrable Securities and the Company. 

        Section 4.8    Severability.    If one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms. 

        Section 4.9    Delays or Omissions.    No delay or omission to exercise any right, power or remedy accruing to
any Holder, upon any breach or default of the Company under this Agreement shall impair any such right, power or remedy of such Holder nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default under this Agreement or any waiver on
the part of any Holder of any provisions or conditions of this Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either
under this Agreement or by law or otherwise afforded to any Holder, shall be cumulative and not alternative. 

        Section 4.10    Aggregation of Stock.    All shares of Registrable Securities held or acquired by affiliated
entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

19

 

        Section 4.11    Entire Agreement.    This Agreement (including the Schedules hereto, if any), constitutes the
full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof and supersedes any and all prior agreements relating to the subject matter hereof
including, without limitation, the Prior Agreement. 

        Section 4.12    Additional Investors.    In the event the Company issues additional shares of its
Series E Preferred Stock pursuant to the Purchase Agreement, any purchaser of such shares shall become a party to this Agreement by executing and delivering an additional counterpart signature
page to this Agreement and such purchaser shall be deemed to be an "Investor" hereunder. Schedule II may be updated from time to time by the
Company after the date hereof to reflect any subsequent Investors. 

[Remainder
of page intentionally left blank.] 

20

 

        IN
WITNESS WHEREOF, the undersigned party has executed this counterpart signature page to the Amended and Restated Investors' Rights Agreement as of the date first above written. 

	 	COMPANY:
	

 	

HIRERIGHT, INC., a California corporation
	

 	

By:	
 	

/s/  RICHARD LITTLE      
 Richard Little, Chief Financial Officer

[SIGNATURE
PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT] 

21

	 	 	FOUNDER:
	

 	
 	

THE SELAH TRUST U/T/A DATED SEPTEMBER 19, 1984 (also known as The Saleh Trust or The Saleh Trust U/T/A dated September 26, 1997)
	

 	
 	

By:	

/s/  W. T. BAKER JR. III      
 W. T. Baker, Jr. III, Trustee

	 	 	INVESTORS:
	

 	
 	

MELLON VENTURES, L.P., a Delaware limited partnership
	

 	
 	

By:	

MVMA, L.P., General Partner
	

 	
 	

 	

By:	

MVMA, Inc., General Partner
	

 	
 	

 	

 	

By:	

/s/  JEFFREY H. ANDERSON      
 Jeffrey H. Anderson

Managing Director

	 	 	ST. PAUL VENTURE CAPITAL VI, LLC, a Delaware limited liability company
	

 	
 	

By:	

SPVC Management VI, LLC

Its Managing Member
	

 	
 	

 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Director
	

 	
 	

ST. PAUL VENTURE CAPITAL V, LLC, a Delaware limited liability company
	

 	
 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Member

	 	 	BAIRD VENTURE PARTNERS I LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner
	

 	
 	

BVP I AFFILIATES FUND LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner

	 	 	EXULT, INC.
	

 	
 	

By:	

/s/  MICHAEL HENN      

	

 	
 	

Name:	

Michael Henn

	 	 	Title:	Chief Financial Officer

	 	 	ERIC BODEN
	

 	
 	

/s/  ERIC BODEN      

	

 	
 	

 	

 

	 	BRIAN D JACOBS AND ALLISON LEWIS-JACOBS LIVING TRUST AGREEMENT, DATED 3/2/98
	

 	

By:	
 	

/s/  BRIAN D. JACOBS      

	

 	

Name:	
 	

Brian D. Jacobs

	 	Title:	 	Trustee

	

 	

Address:	
 	

325 Roblar Avenue

Hillsborough, CA 94010
	 	 	 	Facsimile No.:	 	

	 	JASON GREEN
	

 	

/s/  JASON GREEN      

	

 	

Address:	
 	

14215 Amherst Court

Los Altos Hills, CA 94022
	 	 	 	Facsimile No.:	 	

	 	THE RITTER-METZLER REVOCABLE TRUST
	

 	

/s/ GORDON RITTER, Trustee

	

 	

Address:	
 	

3340 Clay Street

San Francisco, CA 94118
	 	 	 	Facsimile No.:	 	

	 	STEVE LARSEN
	

 	

/s/  P. S. LARSEN      

	

 	

Address:	
 	

7123 Howard Lane

Eden Prairie, MN 55346
	 	 	 	Facsimile No.:	 	

	 	 	DCM III, L.P.
	

 	
 	

By: DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member
	

 	
 	

DCM III-A, L.P.
	

 	
 	

By: DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member
	

 	
 	

DCM Affiliates Fund III, L.P.
	

 	
 	

By: DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member

CONSENT OF SPOUSE  

        I acknowledge that I have read the foregoing Agreement and that I know its contents. I am aware that by its provisions the shares of the Company held of record by
me and/or my spouse, including my community property interest in such shares, if any, are subject to certain restrictions and obligations, including a market standoff and other transfer restrictions.
I hereby agree that those shares and my interest in them, if any, are subject to all of the provisions of the Agreement, and that I will take no action at any time to hinder operation of or violate
the Agreement. 

	Dated:	 	December 31, 2002
	 	/s/  CONNIE A. BODEN      
 Connie A. Boden (Spouse of Eric Boden)

CONSENT OF SPOUSE  

        I acknowledge that I have read the foregoing Agreement and that I know its contents. I am aware that by its provisions the shares of the Company held of record by
me and/or my spouse, including my community property interest in such shares, if any, are subject to certain restrictions and obligations, including a market standoff and other transfer restrictions.
I hereby agree that those shares and my interest in them, if any, are subject to all of the provisions of the Agreement, and that I will take no action at any time to hinder operation of or violate
the Agreement. 

	Dated:	 	February 7, 2003
	 	Signature:	 	/s/  ANN W. GREEN      

	

 	
 	

 	
 	

Print Name:	
 	

Ann W. Green

	

 	
 	

 	
 	

Spouse of:	
 	

Jason Green

CONSENT OF SPOUSE  

        I acknowledge that I have read the foregoing Agreement and that I know its contents. I am aware that by its provisions the shares of the Company held of record by
me and/or my spouse, including my community property interest in such shares, if any, are subject to certain restrictions and obligations, including a market standoff and other transfer restrictions.
I hereby agree that those shares and my interest in them, if any, are subject to all of the provisions of the Agreement, and that I will take no action at any time to hinder operation of or violate
the Agreement. 

	Dated:	 	2/7/03
	 	Signature:	 	/s/  AMY J. METZLER      

	

 	
 	

 	
 	

Print Name:	
 	

Amy J. Metzler

	

 	
 	

 	
 	

Spouse of:	
 	

Gordon Ritter

CONSENT OF SPOUSE  

        I acknowledge that I have read the foregoing Agreement and that I know its contents. I am aware that by its provisions the shares of the Company held of record by
me and/or my spouse, including my community property interest in such shares, if any, are subject to certain restrictions and obligations, including a market standoff and other transfer restrictions.
I hereby agree that those shares and my interest in them, if any, are subject to all of the provisions of the Agreement, and that I will take no action at any time to hinder operation of or violate
the Agreement. 

	Dated:	 	February 7, 2003
	 	Signature:	 	/s/  MARGARET L. LARSEN      

	

 	
 	

 	
 	

Print Name:	
 	

Margaret L. Larsen

	

 	
 	

 	
 	

Spouse of:	
 	

Steve Larsen

 
 

SCHEDULE I    
    

 
 

Founder    
    

	Name
 
	 	 
	 	 

	W. T. Baker, Jr. III, trustee of The Selah Trust U/T/A dated September 19, 1984 (also known as The Saleh Trust or The Saleh Trust U/T/A dated September 26, 1997)	 	 	 	 

 
 

SCHEDULE II*    
    

 
  Investors

	Name
 
	 	 
	 	 

	MELLON VENTURES, L.P.	 	 	 	 
	
ST. PAUL VENTURE CAPITAL VI, LLC	
 	

 	
 	

 
	
ST. PAUL VENTURE CAPITAL V, LLC	
 	

 	
 	

 
	
ALEXANDER DUNHAM (HR INVESTMENTS), LLC	
 	

 	
 	

 
	
DAVID A. DUFFIELD TRUST	
 	

 	
 	

 
	
MARGARET L. TAYLOR	
 	

 	
 	

 
	
BAIRD VENTURE PARTNERS I LIMITED PARTNERSHIP	
 	

 	
 	

 
	
BVP I AFFILIATED FUND LIMITED PARTNERSHIP	
 	

 	
 	

 

	*
	As
amended and restated on February 7, 2003. 

	Name
 
	 	 
	 	 

	EXULT, INC.	 	 	 	 
	
ERIC BODEN	
 	

 	
 	

 
	
DCM III, L.P.	
 	

 	
 	

 
	
DCM III-A, L.P.	
 	

 	
 	

 
	
DCM AFFILIATES FUND III, L.P.	
 	

 	
 	

 
	
BRIAN D. JACOBS AND ALLISON LEWIS-JACOBS LIVING TRUST AGREEMENT, DATED 3/2/98
	
JASON GREEN	
 	

 	
 	

 
	
THE RITTER-METZLER REVOCABLE TRUST	
 	

 	
 	

 
	
STEVE LARSEN	
 	

 	
 	

 

  

 
 

AMENDMENT NO. 1 TO
  AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT    
    

        THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (this "Amendment") is entered into as of
February 6, 2003, by and among HireRight, Inc., a California corporation (the "Company"), and the investors set forth on the signature
pages to this Amendment (collectively, the "Existing Investors"). Capitalized terms not otherwise defined herein shall have the meanings ascribed to
them in the Agreement (as defined below). 

 
 

RECITALS    
    

        WHEREAS, the Company, the Existing Investors and certain other person have entered into that certain Amended and Restated Investors' Rights Agreement dated
December 31, 2002 (the "Agreement"); 

        WHEREAS,
Section 4.7 of the Agreement provides that any term of the Agreement may be amended "only with the written consent of (a) as to the Company, only by the Company,
and (b) as to the Holders, by (i) the Holders of a majority of the Registrable Securities then outstanding and (ii) the Holders of at least seventy-five percent (75%)
of the Series E Registrable Securities then outstanding; provided, however, that the seventy-five percent (75%) requirement set forth in the foregoing clause (ii) and in
Section 1.13 may be amended by the holders of such percentage of the outstanding shares of the Series E Registrable Securities without the approval or consent of the Company or any other
party to this Agreement"; and 

        WHEREAS,
the Existing Investors, who constitute at least seventy-five percent (75%) of the Company's Series E Registrable Securities desire to amend the Agreement to
reduce the percentage approval requirements set forth in Section 1.13 and Section 4.7 of the Agreement. 

 
 

AGREEMENT    
    

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

        1.    Amendment of 75% Requirement.    The term "seventy-five percent (75%)" contained in
Section 1.13 and Section 4.7 of the Agreement shall, in each case, be deleted and replaced with the term "sixty percent (60%)". 

        2.    Effect of Amendment.    All terms and provisions of the Agreement shall continue in full force and effect except
as expressly modified by this Amendment. each reference in the Agreement (or in any and all instruments or documents provided for in the Agreement or delivered or to be delivered thereunder or in
connection therewith) to "this Agreement," "hereunder," "hereof," or words of like import shall, except where the context otherwise requires, be deemed a reference to the Agreement as amended hereby. 

        3.    Severability.    In the event that any provision of this Amendment is held to be illegal, invalid or
unenforceable under applicable law, the remaining provision of this Amendment will remain in full force and effect and will not be effected by the illegal, invalid or unenforceable provision and will
be interpreted so as to effect, as closely as possible, the intent of the parties hereto. 

        4.    Governing Law.    This Amendment shall be governed by and construed under the laws of the state of California,
without giving effect to conflicts of laws principles. 

1

 

        5.    Counterparts.    This Amendment may be executed in two or more counterparts, including counterparts transmitted
by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        6.    Titles and Subtitles.    The titles and subtitles used in this Amendment are used for convenience only and are
not to be considered in construing or interpreting this Amendment. 

[remainder of page intentionally left blank]

2

 

        IN
WITNESS WHEREOF, the undersigned party has executed this counterpart signature page to this Amendment as of the date first above written. 

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	

/s/  ERIC BODEN      
 Eric Boden

President
	

 	
 	

/s/  ERIC BODEN      
 Eric Boden

3

	 	 	MELLON VENTURES, L.P.
	

 	
 	

By:	

MVMA, L.P., General Partner
	

 	
 	

 	

By:	

MVMA, Inc., General Partner
	

 	
 	

 	

 	

By:	

/s/  JEFFREY H. ANDERSON      
 Jeffrey H. Anderson

Managing Director

	 	 	ST. PAUL VENTURE CAPITAL VI, LLC
	

 	
 	

By:	

SPVC Management VI, LLC, Its Managing Member
	

 	
 	

 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Director
	

 	
 	

ST. PAUL VENTURE CAPITAL V, LLC
	

 	
 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Member

	 	 	BAIRD VENTURE PARTNERS I LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC, its general partner
	

 	
 	

 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner
	

 	
 	

BVP I AFFILIATES FUND LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC, its general partner
	

 	
 	

 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner

	 	 	EXULT, INC.
	

 	
 	

By:	

/s/  MICHAEL HENN      

	

 	
 	

Name:	

Michael Henn

	 	 	Title:	Chief Financial Officer

  

 
 

AMENDMENT NO. 2 TO
  AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT    
    

        THIS AMENDMENT NO. 2 TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (this "Amendment") is entered into as of
April 12, 2005, by and among HireRight, Inc., a California corporation (the "Company"), and the investors set forth on the signature pages
to this Amendment (collectively, the "Existing Investors"). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in
the Agreement (as defined below). 

 
 

RECITALS    
    

        WHEREAS, the Company, the Existing Investors and certain other person have entered into that certain Amended and Restated Investors' Rights Agreement dated
December 31, 2002, as amended on February 6, 2003 (the "Agreement"); 

        WHEREAS,
the parties hereto acknowledge that, as of the date hereof, the Company's Amended and Restated Articles of Incorporation have been amended to provide, among other things, for
certain pay-to-play provisions (the "Revised Provisions"); 

        WHEREAS,
the parties hereto desire to amend the Agreement to reflect the Revised Provisions. 

 
 

AGREEMENT    
    

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

        1.    Amendment of Section 1.1(h).    Section 1.1(h) of the Agreement, which currently reads as follows: 

"Preferred Stock" shall mean the Company's Series B Preferred Stock, Series C Preferred Stock, Series E Preferred Stock and any
other series of preferred stock of the Company that may be acquired by the Investors." 

Shall
be deleted and replaced with the following: 

"Preferred Stock" shall mean the Company's Series B Preferred Stock, Series C Preferred Stock, Series E Preferred Stock,
Series E-1 Preferred Stock and any other series of preferred stock of the Company that may be acquired by the Investors." 

        2.    Amendment of Section 1.1(u).    Section 1.1(u) of the Agreement, which currently reads as follows: 

"Series E Registrable Securities" shall mean (i) shares of Common Stock issuable or issued upon conversion of the Series E
Preferred Stock; (ii) shares of Common Stock issuable upon exercise (and the subsequent conversion) of any warrants or options for Series E Preferred Stock held by the investors as of
the date hereof or subsequently issued to the Investors; (iii) shares of Common Stock issuable upon exercise of any warrants issued to Exult, Inc.; and (iv) any shares of Common
Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in
replacement of the shares referenced in (i), (ii) or (iii) above." 

shall
be deleted and replaced with the following: 

"Series E Registrable Securities" shall mean (i) shares of Common Stock issuable or issued upon conversion of the Series E
Preferred Stock or Series E-1 Preferred Stock; (ii) shares 

1

 

of
Common Stock issuable upon exercise (and the subsequent conversion) of any warrants or options for Series E Preferred Stock or Series E-1 Preferred Stock held by the
Investors as of the date hereof or subsequently issued to the Investors; (iii) shares of Common Stock issuable upon exercise of any warrants issued to Exult, Inc.; and (iv) any
shares of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in
exchange for or in replacement of the shares referenced in (i), (ii) or (iii) above." 

        3.    Amendment of Section 3.3.    Section 3.3 of the Agreement, which currently reads as follows: 

        "New Securities. For the purposes of this ARTICLE III, the term "New Securities" shall
mean any equity securities of the Company, including any securities convertible, with or without consideration, into any equity securities of the Company, any option, warrant or right to subscribe for
or purchase any equity securities of the company, and any security carrying any such option, warrant or right, except the following: (i) securities issued to employees, officers, directors of,
consultants or advisors to the Company pursuant to plans or other incentive arrangements or agreements approved by the Board; (ii) securities issued to financial institutions or lessors in
connection with commercial credit arrangements, equipment financings or similar transactions approved by the Board or issued to strategic partners or in connection with business arrangements approved
by the Board, including but not limited to warrants issued or issuable to Exult, Inc. and/or Citicorp Strategic Technologies Corp. (or their affiliates); (iii) securities issued as
consideration (and not primarily for financing purposes) in connection with business combinations, acquisitions, mergers, asset purchase, other reorganization or similar transaction approved by the
Board; (iv) securities issued pursuant to the conversion or exercise of convertible or exercisable securities outstanding on the date hereof; (v) securities issued in connection with the
IPO; (vi) securities issued pursuant to a stock split, stock dividend or recapitalization with respect to the outstanding capital stock of the Company; (vii) securities issued or
issuable in connection with any anti-dilution protective rights set forth in the Company's Articles of Incorporation as amended; (viii) securities issued or issuable in connection
with those certain convertible subordinated promissory notes dated December 12, 2002; (ix) securities issued or issuable in connection with that certain Convertible Subordinated Note and
Warrant Purchase Agreement entered into by and among such holders and the Company in January 2002; or (x) shares of Series E Preferred Stock issued pursuant to the Purchase
Agreement." 

shall
be deleted and replaced with the following: 

        "New Securities. For the purposes of this ARTICLE III, the term "New Securities" shall
mean any equity securities of the Company, including any securities convertible, with or without consideration, into any equity securities of the Company, any option, warrant or right to subscribe for
or purchase any equity securities of the Company, and any security carrying any such option, warrant or right, except the following: (i) securities issued to employees, officers, directors of,
consultants or advisors to the Company pursuant to plans or other incentive arrangements or agreements approved by the Board; (ii) securities issued to financial institutions or lessors in
connection with commercial credit arrangements, equipment financings or similar transactions approved by the Board or issued to strategic partners or in connection with business arrangements approved
by the Board, including but not limited to warrants issued or issuable to Exult, Inc. and/or Citicorp Strategic Technologies Corp. (or their affiliates); (iii) securities issued as
consideration (and not primarily for financing purposes) in connection with business 

2

 

combinations,
acquisitions, mergers, asset purchase, other reorganization or similar transaction approved by the Board; (iv) securities issued pursuant to the conversion or exercise of
convertible or exercisable securities outstanding on the date hereof; (v) securities issued in connection with the IPO; (vi) securities issued pursuant to a stock split, stock dividend
or recapitalization with respect to the outstanding capital stock of the Company; (vii) securities issued or issuable in connection with any anti-dilution protective rights set
forth in the Company's Articles of Incorporation as amended; (viii) securities issued or issuable in connection with those certain convertible subordinated promissory notes dated
December 12, 2002; (ix) securities issued or issuable in connection with that certain Convertible Subordinated Note and Warrant Purchase Agreement entered into by and among such holders
and the Company in January 2002; (x) shares of Series E Preferred Stock; or (xi) shares of Series E-1 Preferred Stock." 

        4.    Effect of Amendment.    All terms and provisions of the Agreement shall continue in full force and effect except
as expressly modified by this Amendment. Each reference in the Agreement (or in any and all instruments or documents provided for in the Agreement or delivered or to be delivered thereunder or in
connection therewith) to "this Agreement," "hereunder," "hereof," or words of like import shall, except where the context otherwise requires, be deemed a reference to the AGreement as amended hereby. 

        5.    Severability.    In the event that any provision of this Amendment is held to be illegal, invalid or
unenforceable under applicable law, the remaining provision of this Amendment will remain in full force and effect and will not be effected by the illegal, invalid or unenforceable provision and will
be interpreted so as to effect, as closely as possible, the intent of the parties hereto. 

        6.    Governing Law.    This Amendment shall be governed by and construed under the laws of the State of California,
without giving effect to conflicts of laws principles. 

        7.    Counterparts.    This Amendment may be executed in two or more counterparts, including counterparts transmitted
by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        8.    Titles and Subtitles.    The titles and subtitles used in this Amendment are used for convenience only and are
not to be considered in construing or interpreting this Amendment. 

        [remainder of page intentionally left blank]

3

 

        IN
WITNESS WHEREOF, the undersigned party has executed this counterpart signature page to this Amendment as of the date first above written. 

	 	 	HIRERIGHT, INC.
	

 	
 	

By:	
 	

/s/  RICHARD LITTLE      

	

 	
 	

Name:	
 	

Richard Little

	 	 	Title:	 	CFO

	

 	
 	

/s/  ERIC BODEN      
 Eric Boden

4

	 	 	MELLON VENTURES, L.P.
	

 	
 	

By:	

MVMA, L.P., General Partner
	

 	
 	

 	

By:	

MVMA, Inc., General Partner
	

 	
 	

 	

 	

By:	

/s/  JEFFREY H. ANDERSON      
 Jeffrey H. Anderson

Managing Director

	 	 	ST. PAUL VENTURE CAPITAL VI, LLC
	

 	
 	

By:	

SPVC Management VI, LLC, Its Managing Member
	

 	
 	

 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Director
	

 	
 	

ST. PAUL VENTURE CAPITAL V, LLC
	

 	
 	

By:	

/s/  JAMES SIMONS      
 James Simons

Managing Member

	 	 	BAIRD VENTURE PARTNERS I LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC, its general partner
	

 	
 	

 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner
	

 	
 	

BVP I AFFILIATES FUND LIMITED PARTNERSHIP
	

 	
 	

By:	

Baird Venture Partners Management Company I, LLC, its general partner
	

 	
 	

 	

By:	

/s/  WILLIAM J. FILIP      
 William J. Filip, Partner

	 	 	BRIAN JACOBS AND ALLISON LEWIS-JACOBS LIVING TRUST AGREEMENT, DATED 3/2/98
	

 	
 	

By:	

/s/  BRIAN D. JACOBS      

	 	 	Name:	Brian D. Jacobs
	 	 	Title:	Trustee

	 	JASON GREEN
	

 	

/s/  JASON GREEN      

	 	 	THE RITTER-METZLER REVOCABLE TRUST
	

 	
 	

By:	
 	

/s/  GORDON RITTER      

	

 	
 	

Name:	
 	

Gordon Ritter

	 	 	Title:	 	Trustee

	 	STEVE LARSEN
	

 	

/s/  P. S. LARSEN      

	 	 	DCM III, L.P.
	

 	
 	

By:	
 	

DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	
 	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member
	

 	
 	

DCM III-A, L.P.
	

 	
 	

By:	
 	

DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	
 	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member
	

 	
 	

DCM Affiliates Fund III, L.P.
	

 	
 	

By:	
 	

DCM Investment Management III, L.L.C.

Its General Partner
	

 	
 	

By:	
 	

/s/  TOM BLAISDELL      
 Tom Blaisdell, Member

QuickLinks

Table of Contents

SCHEDULE I

Founder

SCHEDULE II*

Investors

AMENDMENT NO. 1 TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

RECITALS

AGREEMENT

AMENDMENT NO. 2 TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

RECITALS

AGREEMENT

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