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Agreement - HireRight - 2013-07-02
Service Agreement ThisServiceAgreement("Agreement")isbetweenHireRightInc,aDelawarecorporation("HireRight"),andthecustomerelectronicallysigning hereto,onbehalfofitselfanditsofficersandemployees("Subscriber"),andiseffective("EffectiveDate")uponHireRight'sactivationof Subscriber'saccount.1.HIRERIGHTSERVICES.HireRightisdefinedasa"consumerreportingagency"pursuanttotheFairCreditReportingAct,15U.S.C.Section 1681etseq.("FCRA")andapplicablestatelaw.TheFCRA-regulatedscreeningreportsthatHireRightfurnishespursuanttothisAgreementare definedbytheFCRAandapplicablestatelawas"consumerreports"and/or"investigativeconsumerreports"(collectively,"ScreeningReports").SubjecttothetermsandconditionsofthisAgreement,anduponSubscriber'srequest,HireRightwillfurnishScreeningReportsandtherelated servicesdescribedinthisAgreementinconnectionwithSubscriber'sscreeningofjobapplicants,employeesand/orotherindividualsforwhich HireRightprovidesinformationforlegallypermissiblepurposes(each,an"Applicant").SubscriberacknowledgesandagreesthatHireRightmay fulfillitsservicesunderthisAgreementthroughitsaffiliatesandsubsidiaries,provided,HireRightshallremainsolelyresponsibleforits obligationsunderthisAgreement.HireRightreliesontheinformationfurnishedbythird-partyinformationsuppliers("Suppliers")andHireRight clientswhenpreparingScreeningReports.Referencesto"ScreeningReport(s)"refertoanentireScreeningReportaswellasanyspecific informationcontainedinaScreeningReport.IfSubscriberobtainsservicesfromHireRightunderthisAgreementthatfalloutsidethescopeof theFCRAandsimilarUnitedStateslaws(collectively,"Non-USServices"),thepartieswillenterintoappropriateaddendasettingforththeir respectiverightsandobligationsrelatedtosuchNon-USServices.Exceptasotherwiseestablishedbythelawsandregulationsgoverning Non-USServices,allothertermsandconditionsofthisAgreementwillapplytotheNon-USServices.2.SUBSCRIBEROBLIGATIONS.(a)CompliancewithFCRAandotherApplicableLaws.Subscribershallcomplywithalllocal,state,federal,andinternationallawsand regulations(collectively,"Laws")applicabletoSubscriberinconnectionwithitsprocurementanduseofScreeningReportsandotherservices providedpursuanttothisAgreement.InutilizingHireRight'sFCRA-regulatedservices,Subscriberisconsidereda"user"ofScreeningReports undertheFCRAandapplicablestatelaw.SubscribershallcomplywithitscertificationsandobligationssetforthinAttachmentA.Subscriber acknowledgesithasreceived,reviewedandwillcomplywithitsobligationsintheNoticetoUsersofConsumerReports:ObligationsOfUsers UnderTheFCRAavailableat:http://www.hireright.com/pdfs/ftcNoticeToUsers.pdf.SubscriberacknowledgesthatifitobtainsNon-USServices underthisAgreement,Subscribermayhaveadditionalordifferentlegalobligationsthanthosedescribedinthissection.Subscribershallcomply withallsuchobligations.SubscribershallpromptlynotifyHireRightifSubscriberbelievesithasfailedtofulfillanyobligationinthisAgreement,including,withoutlimitation,thoseobligationsrelatedtoconfidentiality,consumerprivacy,dataprotection,andcompliancewithLaws.(b)AccountAccessandMaintenance.SubscribershalldesignatetoHireRightthenameofa"SuperUser(s)"whoshallbe:(i)Subscriber'smain contact(s)fortheservicesobtainedunderthisAgreement,and(ii)responsibleforthestrictadministrationandcontrolofSubscriber'saccount identificationnumbersandpasswords.TheSuperUser(s)shallidentifyandauthorizeallSubscriberaccountusersandtheirrespectiveaccess privileges,andpromptlynotifyHireRightofanychangesofaccountusersand/orifanyaccountidentificationnumbersorpasswordsbecome invalid,inactiveorcompromisedinanymanner.InaccordancewithSection4,aSuperUsermaybeanOutsourcedProvider.(c)DataPrivacyandSecurity.Subscribershallmaintainreasonableandappropriatetechnical,physical,administrativeandotherorganizational precautionsandsecuritymeasurestoprotectagainstunauthorizedaccesstoand/ormisuseoftheHireRightsystemandScreeningReports.At aminimum,SubscribershallcomplywiththeInformationAccessandSecurityRequirementssetforthinAttachmentA.HireRightmay,inits reasonablediscretionandwithoutpenalty,suspendand,uponwrittennotice,cancelSubscriber'saccountifHireRightreasonablysuspectsor identifiesanymisuseoforunauthorizedaccesstoitssystemand/orScreeningReportsthroughSubscriber'saccount.(d)AuditsandRecordRetention.HireRightand/oritsSuppliersortheirdesignatedrepresentativesmayconductreasonableperiodicauditsof Subscriber'scompliancewiththisAgreement.UnlessotherwiserequiredbyapplicableLaws,SubscribershallmaintaincopiesofallApplicant consentformsandpre-adverseandadverseactionnotices(asfurtherdescribedinAttachmentA)foraminimumperiodoffive(5)years,and Subscribershall,uponreasonableadvancenotice,duringitsnormalbusinesshours,makeavailabletoHireRightand/oritsSuppliersortheir designatedrepresentativessuchdocumentationreasonablyrequestedtodemonstrateSubscriber'scompliancewithitsobligationsinthis Agreement.IfSubscriberbecomesawareofanauditinitiatedbyathird-partyinvolvingHireRight'sservicesprovidedpursuanttothis Agreement,SubscribershallprovideHireRightpromptwrittennoticeoftheaudit.UnlessotherwiserequiredbyapplicableLaws,Subscriber shallnotprovideaccesstoitsHireRightaccounttoanyauditingpartyunlessHireRightconsentstosuchrequestandaHireRightrepresentative participatesinthereview/audit.(e)ProhibitiononResaleorReuseofReports.ExceptasotherwisesetforthinthisAgreement,Subscribershallnot,directlyorindirectly,sell,transfer,disclosethecontentsofordistributeScreeningReports,inwholeorinpart,toanythird-party(otherthantotheapplicableApplicantor inconjunctionwithaRequiredDisclosure).SubscribershalluseScreeningReportssolelyasanend-user,forasingle,one-timeuse.(f)Compliance;NoLegalAdvice.SubscriberacknowledgesthatHireRightwillnotrenderanyopinionsregardingScreeningReportcontent,and Subscribershallbaseitsscreeningprocesses,guidelinesanddecisionsonitsownpoliciesandprocedures.Anyconsultation,trainingand formsprovidedbyHireRightareprovidedforinformationalpurposesonly,andnotforthepurposeofprovidinglegaladvice.HIRERIGHT STRONGLYRECOMMENDSTHATSUBSCRIBERCONSULTWITHITSOWNLEGALCOUNSELFAMILIARWITHSUBSCRIBER'SUNIQUE REQUIREMENTSANDLEGAL/REGULATORYOBLIGATIONSRELATEDTOTHECOMPLIANTPROCUREMENTANDUSEOF SCREENINGREPORTSANDOTHERSERVICESOBTAINEDPURSUANTTOTHISAGREEMENT.3.HIRERIGHTOBLIGATIONS.(a)CompliancewithFCRAandOtherApplicableLaws.HireRightshallcomplywithallLawsapplicabletoHireRightinitspreparationand transmissionofScreeningReportsandotherservicesprovidedpursuanttothisAgreement.HireRightacknowledgesthatifitprovidesNon-US ServicesunderthisAgreement,HireRightmayhaveadditionalordifferentlegalobligationsthanthosedescribedinthissection.HireRightshall complywithallsuchobligations. (b)ServicePerformance.UponSubscriber'srequest,HireRightshall,inaccordancewiththetermsofthisAgreement,performtheservices identifiedintheScheduleofFeesattachedheretoasAttachmentB("ScheduleofFees").(c)TrainingandAccountImplementation.ThefeessetforthintheScheduleofFeesincludeHireRight'sstandardaccountimplementation servicesandHireRight'sstandarduser-trainingasdetailedinAttachmentB.Subscriberacknowledgesthatreasonableadditionalservice supportfeesmayapplyifSubscribercancelsscheduledtrainingsessionswithoutprovidingreasonableadvancenoticetoHireRightorHireRight otherwiseprovidesnon-standardtrainingtoSubscriber.(d)DataPrivacyandSecurity.HireRightshallimplementcommerciallyreasonableandappropriatetechnical,physicalandadministrative measurestoprotectApplicantdataagainstHireRight'saccidentalorunlawfuldestructionandunauthorizeddisclosureoraccess.HireRightis notresponsiblefordisclosureorcompromiseofsuchdataduetoSubscriber'sactsoromissionsorotherwiseresultingfromuseofSubscriber's passwordsoraccounts,duetonofaultofHireRight.(e)ReportMaintenance.SubjecttoSection13(b),duringtheTermofthisAgreement,HireRightshallmaintainScreeningReportinformationfor aminimumoffive(5)years,unlessotherwiserequiredorprohibitedbyapplicableLaws.(f)ManagementReports.HireRightshallprovideSubscriberwithHireRight'sstandard"ManagementReports"functionalitytoenableSubscriber togenerateavailablereportsrelatingtoSubscriber'saccountactivity.(g)ServiceStandards;DisclaimerofWarranty.HIRERIGHT'SSERVICESWILLBEPERFORMEDINAPROFESSIONALMANNERIN ACCORDANCEWITHINDUSTRYSTANDARDS.HIRERIGHTWILLMAINTAINANDFOLLOWREASONABLEPROCEDURESTOASSURE THEMAXIMUMPOSSIBLEACCURACYOFTHEINFORMATIONCONTAINEDINEACHSCREENINGREPORT,ANDHIRERIGHTWILL RE-VERIFYANYDISPUTEDSCREENINGREPORTINACCORDANCEWITHAPPLICABLELAWS.SUBSCRIBERACKNOWLEDGESTHAT HIRERIGHTISNOTANINSURERORGUARANTOROFTHEACCURACY,RELIABILITY,VALIDITY,DEPTHORCOMPLETENESSOFTHE INFORMATIONPROVIDEDBECAUSESUCHINFORMATIONISSUBJECTTOHUMANERRORANDISOBTAINEDFROMPUBLIC RECORDSANDOTHERTHIRD-PARTYSOURCESTHATARENOTUNDERTHECONTROLOFHIRERIGHTANDMAYNOTALWAYSBE ACCURATE,CONSISTENT,VALIDORCOMPLETE.EXCEPTASOTHERWISEEXPRESSLYSETFORTHINTHISAGREEMENT,HIRERIGHTDISCLAIMSALLWARRANTIES,EXPRESSORIMPLIED,INCLUDING,WITHOUTLIMITATION,ANYIMPLIEDWARRANTYOF MERCHANTABILITY,ANYIMPLIEDWARRANTYARISINGFROMTHECOURSEOFDEALING,FITNESSFORAPARTICULARPURPOSE,NON-INFRINGEMENT,ANDNONINTERRUPTIONOFSYSTEMUSE.4.OUTSOURCEDPROVIDER.ThisSection4isonlyapplicableifSubscriberobtainsHireRight'sOutsourcedProviderservices,asoutlined below.IfSubscriberusesanoutsourcedhumanresourcesprovider("OutsourcedProvider")which,forthepurposesofthisAgreement,shallbe actingasanauthorizedagentofSubscriberinconnectionwithSubscriber'spermissibleuseofHireRight'sScreeningReportsandother services,Subscribershallrequire,bywrittenagreement,itsOutsourcedProvidertocomplywithalltermsofthisAgreementapplicableto Subscriber(including,withoutlimitation,compliancewithallLawswithrespecttotheaccess,retention,destructionanduseofScreening Reports;protectionoftheconfidentialityofHireRight'sConfidentialInformation;andprohibitionagainstre-using,transferring(otherthanto SubscriberorApplicant)and/orresellingScreeningReports).AsbetweenSubscriberandHireRight,Subscriberagreesthatitshallbefully responsiblefortheactionsorinactionsofitsOutsourcedProviderandthatanyviolationbyitsOutsourcedProviderofthetermsofthis AgreementshallbeconsideredaviolationofthisAgreementbySubscriber.SubscriberauthorizesHireRighttodealdirectlywiththeOutsourced ProviderasSubscriber'sauthorizedagent,andasbetweenSubscriberandHireRight,Subscribershallberesponsibleforensuringthatall necessaryconsentsoftheApplicantshavebeenobtainedtopermitHireRighttodisclosetheirScreeningReportstotheOutsourcedProvider.TheOutsourcedProvidershallperformitsservicesonsiteatSubscriber'splaceofbusiness.IftheOutsourcedProviderwishestoperformits servicesforSubscriberand/oraccessorretainApplicantScreeningReportsattheOutsourcedProvider'sownbusinesspremises,Subscriber shallnotifyHireRightinadvance,andHireRightshallhavetheright,atSubscriber'scostof$150,toperformforregulatorycompliancepurposes HireRight'sstandardcompanycredentialingprocedureswithrespecttoOutsourcedProvider,whichmayincludeabriefphysicalinspectionof theOutsourcedProvider'sbusinesspremises.SubscriberagreestoobtainHireRight'sadvanceconsent(nottobeunreasonablywithheld)of anyreplacementofitsOutsourcedProvider.Subscriberacknowledgesthat,duetostatutoryand/orcontractualobligationsandrestrictions,someHireRightservicesmaynotbeavailablethroughanOutsourcedProviderrelationshipand,ofthosethatareavailable,somemayrequire additionalpaperworkfromSubscriberand/orOutsourcedProvider.5.EXTENDEDWORKFORCESCREENING.ThisSection5isonlyapplicableifSubscriberobtainsHireRight'sExtendedWorkforceScreening services,asoutlinedbelow.UponexecutionbySubscriber'sauthorizedthird-partyvendor(s)(each,a"Vendor")ofHireRight'sstandard "ExtendedWorkforceSubscriberAgreement",HireRightshallfurnishtoVendors,upontheirrequest,ScreeningReportswithrespecttothe Vendor'sownapplicantsoremployees(each,a"VendorApplicant")whoarebeingevaluatedtoprovideservicesonbehalfoftheVendorto Subscriber.SubjecttotheVendor'sconsent,andatSubscriber'srequest,HireRightwillprovideSubscriberwithsystemaccesstotheVendor ApplicantScreeningReportssolelyforpurposesofauditingand,ifapplicable,adjudicatingtheresultsthereoftodeterminetheVendor Applicant'seligibilitytoperformcontractedservicesforSubscriber.SubscribershallnotusetheVendorApplicantScreeningReportsforany otherpurpose.SubscriberagreestocomplywithallapplicableLawsandthetermsofthisAgreement(including,withoutlimitation,withrespect totheaccess,retention,destructionanduseoftheVendorApplicantScreeningReports.HireRightadvisesthatSubscriberandVendorconsult todetermineifandwhenan"adverseaction"(withinthemeaningoftheFCRAorotherapplicableLaws)hasoccurred,andinsuchevent,determinewhichofthosepartiesshallberesponsibleforprovidingtheVendorApplicantwithappropriatepre-adverseactionandadverseaction notifications,asapplicableandinaccordancewithapplicableLaws.HireRightwillconfiguretheVendor'sscreeningpackagesinaccordance withSubscriber'sinstructionsprovidedtoHireRightfromtimetotime.Unlessotherwiseagreedbythepartiesinwriting,HireRight'sfeesforthe VendorApplicantScreeningReportswillcorrespondtoSubscriber'sfeessetforthinthisAgreement,andunlessSubscriberhasexpressly agreedinwritingtoassumethefeesfortheVendorApplicantScreeningReports,HireRightwillbilltheVendordirectlyforsuchservicesand Subscribershallnotberesponsibleforsuchfees.Subscriber'scontinuedsystemaccessprivileges(ifany)totheVendorApplicantScreening ReportsshallceaseuponexpirationorearlierterminationofthisAgreement.Subscriberacknowledgesthat,duetostatutoryand/orcontractual obligationsandrestrictions,someHireRightservicesmaynotbeavailablethroughanExtendedWorkforceScreeningrelationshipand,ofthose thatareavailable,somemayrequireadditionalpaperworkfromSubscriberand/orVendor. 6.I-9VERIFICATIONOBLIGATIONSANDSERVICES.SubscriberacknowledgesthatHireRight'sservicesdonotalleviateSubscriberofits responsibilityforperformingin-personverificationofitsemployees'identities,checkingphotoidentificationandcompleting,verifyingand retainingtheemployees'FormI-9andotherdocumentation,eachasandtotheextentrequiredbyapplicableLaws.Inaddition,ifSubscriber obtainsHireRight'sI-9and/orE-VerifyemploymenteligibilityservicespursuanttothisAgreement,SubscriberandHireRightagreetocomply withthefollowingobligations,asapplicablebasedontheparticularservice(s)obtainedbySubscriber:(a)SubscriberI-9Obligations.SubscribershallidentifyandcomplywithallLawsapplicabletoSubscriberinconnectionwithitsuseofI-9 services.(b)HireRightI-9Obligations.IfSubscriberorderstheHireRightI-9Solution,HireRightwillprovideSubscriberanelectronicFormI-9thatmeets U.S.CitizenshipandImmigrationServices("USCIS")regulationsrelatedtoelectronicFormI-9management.(c)E-VerifySubscriberObligations.SubscriberacknowledgesthatitisSubscriber'sresponsibilitytocompleteallE-VerifyChecksinaccordance withapplicableLaws.Subscribershall(i)identifyandcomplywithallLawsapplicabletoSubscriberinconnectionwithitsuseofE-Verify Checks,(ii)provideHireRightwiththeinformationrequestedintheE-VerifyCompanyProfiledocumentprovidedbyHireRightforpurposesof obtainingauniqueE-VerifyProgramIDnumberforsubscriber,(iii)enterintotheE-VerifyMemorandumofUnderstanding("MOU")withthe DepartmentofHomelandSecurity("DHS"),and(iv)complywithitsobligationsundertheMOU,including,withoutlimitation,restrictingE-Verify CheckstoonlyitsemployeeshiredaftertheeffectivedateoftheMOU.EmployersactingasfederalcontractorsshallrestrictE-VerifyChecksto allexistingemployeesoronlyexistingemployeesassignedtospecificfederalcontractscoveredbytheFederalAcquisitionRegulation("FAR")rule.EmployersthatarealreadyenrolledinE-Verifyatthetimeofafederalcontractawardbutarenotenrolledinthesystemasafederal contractorwiththeFARE-VerifyClausemustnotifyHireRightandcompleteanupdatedE-VerifyCompanyprofiledocumentwithinthirty(30)daysafterassignmenttothefederalcontract.(d)HireRightE-VerifyObligations.IfSubscriberordersE-VerifyChecks,HireRightshallenterintotheMOUasSubscriber'sE-VerifyEmployer Agent,andHireRightshallcomplywithitsobligationsundertheMOU.7.MOTORVEHICLEREPORTS;VERIFICATIONSERVICES;PROFESSIONALSERVICES.(a)MotorVehicleRecords.Subscriberacknowledgesandagreesthatmotorvehiclereports("MVRs")andrelatedinformationareconsidered ScreeningReportsforpurposesofthisAgreement.IfSubscriberrequestsMVRsorrelatedinformationfromHireRightunderthisAgreement,thenSubscriberfurtherrepresentsandagreesthat:(i)itisqualifiedtodobusinessandvalidlyholdsalllicensesrequiredtooperateSubscriber's businessinallstateswhereSubscriberconductsbusinessand/orhasemployees;(ii)itwillcomplywithallapplicableLawsrelatedtotheuse andreviewofMVRs,including,withoutlimitation,theDriver'sPrivacyProtectionAct,18U.S.C.Section2721etseq.("DPPA");(iii)itwillnotuse theMVRstobuilditsowndatabase;and(iv)itwill,fromtimetotimeuponHireRight'srequest,executepaperworkrequiredbyapplicablestate DepartmentsofMotorVehiclesand/orotherdatasourcesforSubscriber'saccesstoMVRs.(b)VerificationServices.HireRighthasobtainedalimitedlicensetoprovidetoitsclientscertain"nonpublicpersonalinformation"("Verification Services")asdefinedinandregulatedbytheGramm-Leach-BlileyAct(15U.S.C.Section6801,etseq.)andrelatedstatelaws(collectively,"GLBA").VerificationServicesinclude,butarenotlimitedto,dataprovidedforthepurposeofverifyinginformationprovidedbyApplicants,such asresidentialhistoryinformation.VerificationServicesdonotincludeconsumercreditinformationorothertypesofinformationsubjecttothe permissiblepurposessetforthintheFCRA.IfSubscriberobtainsVerificationServicesfromHireRight,Subscribershallcomplywiththe followingrequirementsandrestrictions:(i)Subscriberwillnot,directlyorindirectly,sell,transfer,disclosethecontentsofordistributeVerification Services,inwholeorinpart,toanythird-party(otherthantotheapplicableApplicant),andSubscribershallusetheVerificationServicessolely asanend-user,forasingle,one-timeusewithrespecttoanApplicant;(ii)Subscriber'ssolepurposeforrequestingVerificationServiceswillbe toverifytheaccuracyandcompletenessofinformationprovidedtoSubscriberbytheApplicantinconnectionwiththetransactionpursuantto whichtheApplicantauthorizedSubscribertoobtainareportregardingtheApplicant;(iii)SubscriberwilllimititsuseofVerificationServicesto theforegoingstatedpurpose;(iv)SubscriberwilltakeappropriatemeasuressoastoprotectagainstthemisuseoftheVerificationServices;(v)SubscriberwillnotuseanyinformationobtainedinconnectionwiththeVerificationServices,inwholeorinpart,forthepurposeofservingasa factorindeterminingtheApplicant'seligibilityforcredit,insurance,employmentoranyotherproduct,serviceortransaction;and(vi)Subscriber willnotusetheinformationprovidedinconnectionwiththeVerificationServicesforanypurposethatwouldviolatethePrivacyRule,16CFR Part313,implementedpursuanttotheGLBA,oranyotherprovisionsoftheGLBAorotherapplicablelaw,rule,orregulation.(c)ProfessionalServices.UnlessotherwiseexpresslystatedinAttachmentB,HireRight'sfeesintheScheduleofFeescorrespondto HireRight'sstandardtechnology,productandserviceofferings,andexcludeanycustomizedtechnologydevelopment,training,reporting,productfeaturesandservicelevels.ShouldSubscriberdesire(andHireRightagreetoprovide)suchcustomization,thepartiesshallsetforththe correspondingtermsandfeesinamutuallyacceptablewrittenstatementofwork,addendumoramendment.8.AFFILIATEORDERINGRIGHTS.UponHireRightreceivingauthorizationfromSubscriberinaformreasonablyacceptabletoHireRight,HireRightwillpermitanAffiliateofSubscribertoorderHireRight'sservicesunderthesametermsandconditionsasthisAgreement,provided that:(i)theAffiliateisneitheranexistingcustomernoracompetitorofHireRight,(ii)theAffiliatesatisfiesHireRight'sstandardaccountaccess credentialingrequirements,and(iii)theAffiliateexecutesamutuallyacceptable"join-on"agreement,orequivalent,thatbindsbothHireRight andtheAffiliatetothetermsofthisAgreement,andincludesacompliancecertificationfromAffiliatereasonablyacceptabletoHireRight.For purposesofthisprovision,"Affiliate"meansanyentitycontrolling,controlledbyorundercommoncontrolwithSubscriber.9.PAYMENTTERMS;FEES.(a)Creditworthiness;RighttoAssurance.SubscriberagreesthatHireRightmaydetermineSubscriber'screditworthinessthroughHireRight's reviewofavailabledataandverificationsources,andHireRightmayestablishSubscriber'spaymenttermsunderthisAgreementbasedonsuch review.SubscribershallprovideitsmostcurrentauditedandunauditedfinancialstatementsandotherrelevantfinancialinformationtoHireRight uponrequest.If,atanytime,SubscriberfailstocomplywiththepaymenttermsofthisAgreement,ifSubscriberexperiencesamaterialadverse changeinitsfinancialcondition,ifSubscriberpresentsanundueriskofnon-paymentinHireRight'sreasonableopinion,orifHireRighthasa goodfaithreasontobelieveSubscriberdoesnotintendto,orisunabletoperformitsobligationsinthisAgreement,HireRightmayatitsoption (andinadditiontoanyotherremediesavailablebylaworinthisAgreement)exerciseoneormoreofthefollowingrights:(i)requireadepositor otherformofpaymentsecurityfromSubscriber;(ii)adjustSubscriber'spaymentterms;(iii)refusetoacceptadditionalordersfromSubscriber; and/or(iv)requireadequatewrittenassuranceofSubscriber'sintenttoperform.(b)PaymentTerms.HireRightshallinvoiceSubscriberonamonthlybasis,andSubscribershallpayallamountsduewithinthirty(30)daysof receivingtheinvoice,unlessHireRightestablishesdifferentpaymenttermspursuanttothisAgreement(inwhichcase,HireRightwillprovide writtennoticetoSubscriberofsuchpaymentterms).SubscribershallpromptlyrevieweachinvoiceandnotifyHireRightofanyallegederrorsor disputesonorbeforetheduedateofsuchinvoice.Subscriberwaivestherighttodisputeanychargesorotherinvoicedetailsnotdisputed withinsuchtimeframe.IfallundisputedamountsduearenotreceivedbyHireRightbytheduedate,HireRightmay,inadditiontoitsrightsin Section9(a),uponten(10)daysadvancewrittennotice:(i)suspendSubscriber'saccountuntilsuchtimeasalldelinquentpaymentsare received,and/or(ii)chargeSubscriberinterestontheoutstandingbalanceataratethatisthelesserof(a)1.5%permonth,or(b)thehighest ratepermittedbyapplicableLaws.SubscribershallreimburseHireRightforanyattorneys'feesandreasonablecostsincurredbyHireRightin connectionwitheffortstocollectamountsduefromSubscriberunderthisAgreement.(c)Fees;Taxes;Revisions.SubscribershallpayforallservicesprovidedpursuanttothisAgreementattheratessetforthintheScheduleof Fees.HireRight'sfeesareexclusiveofanysalestaxesorvalueaddedtaxesandothersimilarindirecttaxes("VAT")applicabletotheservices.IfHireRight'sservicesareorbecomesubjecttosalestaxorVAT,thenSubscribershallberesponsibleforsuchtaxesand,whereapplicable,Subscribershallself-accountforlocalVATviaaself-chargingorreversechargemechanism.IfSubscriberrequestsandHireRightprovides additionalservicesnotinitiallysetforthintheScheduleofFees,suchaddedserviceswillbeherebyincorporatedintothisAgreementat HireRight'sthen-currentratesunlessotherwisemutuallyagreed-uponinwritingbytheparties.Subscriberacknowledgesthatitwillbe responsibleforchargesresultingfromitserrorsininputtingdata,duplicateorderentries,andordercancellationsinitiatedafterprocessinghas commenced.Subscribershallpayallpass-throughfees,applicabletaxesandchargesmadebyinformationsourcesorSuppliersforreleaseof informationandrecordsusedincompilingScreeningReports.Suchpass-throughfees,taxesandchargesaresubjecttochangewithoutprior notice.HireRightmayreasonablyrevisethepricesinthisAgreementuponthirty(30)daysadvancenoticetoSubscriber.Inaddition,ifatany timetherearechangesinLaws(including,withoutlimitation,anyordinancesorotherregulatory,administrativeorgovernmentalactsor measures)thatincreaseHireRight'scostofserviceorreasonablyrequireadditionalrelatedservicestobeprovidedbyHireRight,orin HireRight'sdeterminationrestrictitsabilitytoreasonablycontinuetoprovidetheservicesinthisAgreement,HireRightmay,uponproviding writtennoticetoSubscriber:(i)addareasonablesurchargeorpricingmodificationtocovertheaddedcostsofprovidingtheaffectedservice(s),and/or(ii)modifyorceaseprovidingtheaffectedservice(s).(d)AccountDeactivation.SubscriberacknowledgesandagreesthatifSubscriberisdeterminedatanytimenottomeetHireRight'sstandard clientcredentialingrequirementsandSubscriber'saccountisnotactivated,orisdeactivatedasaresult,thenanypriorchargesincurredrelated toSubscriber'saccount,whetherforaccountset-upregistrationorforpendingorcompletedorders,shallbepromptlypaidtoHireRightby Subscriber.10.CONFIDENTIALINFORMATION.(a)ConfidentialInformationDefined.PursuanttothisAgreement,eachparty("DisclosingParty")maydiscloseormakeavailabletotheother party("ReceivingParty"),whetherorallyorinphysicalform,non-publicconfidentialorproprietaryinformationconcerningtheDisclosingParty anditsbusiness,productsand/orservices,including,withoutlimitation,itssoftware;systemsandtechnology;productandservice specifications,methodologiesandstrategies;pricing;ScreeningReports;invoices;andtradesecretsandotherintellectualproperty(collectively,"ConfidentialInformation").ConfidentialInformationdoesnotincludeinformationthat:(i)wasrightfullyinthepossessionoftheReceivingParty priortodisclosurebytheDisclosingParty;(ii)wasorisindependentlydevelopedbytheReceivingPartywithoutuseoftheConfidential Information;(iii)isnoworhereafterbecomesgenerallyavailabletothepublicotherthanasaresultofdisclosurebytheReceivingPartyin violationofthisAgreement;or(iv)becomesavailabletotheReceivingPartyonanon-confidentialbasisfromasourceotherthantheDisclosing Partyandsuchsourceisnot,tothebestoftheReceivingParty'sknowledge,underanyobligationtokeepsuchinformationconfidential.(b)DutyofConfidentiality.TheReceivingPartyagrees:(i)tokeepconfidentialandholdinstrictconfidencetheConfidentialInformation;(ii)to takeallreasonableprecautionstoprotecttheconfidentialityoftheConfidentialInformation(whichprecautionsshallbenolessthanthose employedbytheReceivingPartytopreservetheconfidentialityofitsownconfidentialmaterialsandinformation);(iii)thatitwillnot,withoutthe priorwrittenconsentoftheDisclosingParty,orinconjunctionwithaRequiredDisclosure,discloseanyportionoftheConfidentialInformationto anythird-party;(iv)nottocopyorreproducetheConfidentialInformation,exceptasreasonablyrequiredforthepurposescontemplatedinthis Agreement(inwhichcaseReceivingPartywillensurethatanyconfidentialityorotherproprietaryrightsnoticesontheConfidentialInformation arereproducedonallcopies);(v)nottoreverseengineerordisassembleanyproducts,technologyortangibleobjectsthatutilizeorcontain suchConfidentialInformation;and(vi)toreturnand/ordestroyallConfidentialInformationoftheDisclosingPartyuponrequest.(c)RequiredDisclosures.IftheReceivingPartyisrequestedinanyjudicialoradministrativeproceedingorbyanygovernmentalorregulatory authority(whetherbydepositions,interrogatories,requestsforinformationordocuments,subpoenas,civilinvestigativedemands,orsimilar processes)orotherwiserequiredbyapplicableLawstodisclosetheConfidentialInformation(collectively,a"RequiredDisclosure"),the ReceivingPartymaymakesuchdisclosure,provideditusesreasonableeffortstogivepromptwrittennotice,assoonaspracticable,tothe DisclosingPartyofsuchrequireddisclosuresothatDisclosingPartymayseekanappropriateprotectiveorder.Notwithstandinganythingtothe contraryabove,HireRightshallnot:(i)berestrictedfromdisclosingtoApplicantstheirScreeningReportsandfileinformationinaccordancewith applicableLaws,(ii)berestrictedfromdisclosingConfidentialInformationtotheextentnecessarytoperformitsobligationsunderthis Agreement,or(iii)berequiredtodestroy,eraseorreturnanyScreeningReportsorrelatedApplicantdatainHireRight'sfiles.11.LIMITATIONOFLIABILITY.TothemaximumextentpermittedbyapplicableLaws,eachparty'stotalliabilitytotheotherpartypursuantto thisAgreement("LimitationofLiability")shallnotexceedthree(3)timesthefeespaidbySubscriberandcollectedbyHireRightpursuanttothis Agreementwithinthetwelve(12)monthperiodimmediatelyprecedingtheevent(s)givingrisetotheclaim.HireRight'sliabilityshallbefurther limitedtotheextentthatanyApplicantconductgivingrisetotheclaim,andthedamagessustainedthereby,arereasonablyofthesameclass astheScreeningReportrecordatissue(e.g.,shouldHireRightfailtoaccuratelyreportamotorvehiclerecordcontainingamovingviolation,and iftheApplicantissubsequentlyterminatedbySubscriberforpoorperformanceinanon-drivingcapacity,suchperformancewouldnotbe conductofthesameclassasthemovingviolation).INNOEVENTSHALLEITHERPARTYBELIABLETOTHEOTHERPARTYFORANY LOSTPROFITS,INDIRECT,CONSEQUENTIAL,SPECIALORPUNITIVEDAMAGES,EVENIFADVISEDOFTHEPOSSIBILITYOFSUCH DAMAGES.HireRightandSubscribershalleachusegoodfaithreasonableeffortstomitigateanypotentialdamagesorotheradverse consequencesarisingfromorrelatedtothisAgreement. 12.INDEMNIFICATION.Eachparty("IndemnifyingParty")shallindemnify,defendandholdtheotherparty("IndemnifiedParty")harmlessfrom andagainstanythird-partyclaims,demands,suits,judgments,costs,expensesandliabilities,including,withoutlimitation,reasonableattorneys'fees(collectively,"Claims"),totheextentcausedbytheIndemnifyingParty'sfailuretocomplywiththeFCRAorotherapplicableLaws.With respecttoHireRight'sliabilityforanyApplicantClaimalleginginaccurateorincompleteScreeningReportinformation,Subscribershall,priorto havingtakenanyactionadversetotheApplicantbasedontheScreeningReport,haveprovidedHireRightareasonableopportunityto reinvestigatethedisputedinformationinaccordancewithHireRight'sFCRA-imposedreinvestigationobligationsanddeadlines.IfSubscriber engagesHireRighttoperformprofessionalreferencechecks,Subscriberfurtheragreestodefend,indemnifyandholdHireRightharmlessfrom andagainstallClaimswithrespecttothecontentofreferencequestionsthathavebeencustomizedatSubscriber'srequestandthecontentof thereference'sresponsesaccuratelyreportedbyHireRightasreceivedfromthereference.Eachparty'stotalaggregateliabilityunderthis Section12shallnotexceedtheLimitationofLiabilityapplicabletosuchpartyassetforthinSection11.Procedure.AnIndemnifiedPartyseekingindemnificationpursuanttothisAgreementshallprovidetheIndemnifyingPartywithpromptwritten noticeofaClaimandshallcooperatewiththeIndemnifyingPartyingoodfaithandinallreasonablerespectsinconnectionwiththedefenseof anysuchactionattheexpenseoftheIndemnifyingParty.TheIndemnifiedPartymay,atitsoption,participateinthedefenseofanysuchClaim,withitsseparatecounselandatitsowncost,andtheIndemnifyingPartyagreestocooperateingoodfaithandinallreasonablerespectswith suchcounsel;provided,however,thattheIndemnifyingPartyshallhavesolecontrolofthedefenseandanysettlementofsuchClaimoraction,andtheIndemnifiedPartyshallnotcompromiseorsettleanysuchClaimwithoutthepriorwrittenconsentoftheIndemnifyingParty.The IndemnifyingPartyshallnotwithouttheconsentoftheIndemnifiedParty(suchconsentnottobeunreasonablywithheld,conditionedor delayed),enterintoanysettlementthatrequiresafindingoradmissionoffaultoftheIndemnifiedParty,orreasonablycanbeexpectedto requireamaterialaffirmativeobligationof,resultinanyongoingmaterialliabilityto,orotherwiseprejudicetheIndemnifiedParty.13.TERM;TERMINATION.(a)Term.ThetermofthisAgreement("Term")commencesontheEffectiveDateand,unlessotherwiseterminatedpursuanttothisSection13,willcontinueinforceforaninitialperiodofthirty(30)days,andthereafterwillautomaticallyrenewforsuccessivemonth-to-monthperiods.Either partymayterminatethisAgreementatanytime:(i)forconvenience,upondeliveryofthirty(30)daysadvancewrittennotice,or(ii)forcause,in accordancewithSection13(b).IfservicesareprovidedfollowingterminationorexpirationofthisAgreement,alltermsandconditionsofthis Agreementshallapplytosuchservices.(b)Termination;Suspension.Ifeitherparty:(i)defaultsintheperformanceofitsmaterialobligationsinthisAgreementandfailstosubstantially curesuchdefaultwithinthirty(30)daysafterreceiptofawrittennoticeofbreach,or(ii)becomesthesubjectofanyproceedingcommenced undertheUnitedStatesBankruptcyCode,orexecutesanassignmentforthebenefitofcreditorsorfilesforreliefunderanyapplicable reorganization,moratoriumorsimilardebtorreliefLaws,thentheotherpartymayterminatethisAgreementupondeliveryofwrittennotice.Additionally,HireRightmaysuspendperformanceunderthisAgreementwithoutpenaltyuponwrittennoticetoSubscriberifSubscriber'sbreach ofthisAgreementisreasonablydeterminedbyHireRighttobeaviolationofLawortopresentariskofnon-compliancebyHireRightwith applicablelegalorcontractualobligations.FollowingtheexpirationorterminationofthisAgreement,HireRightwillprovideSubscriberwitha reasonableopportunityto:(i)downloadforitsrecordscopiesofallitsApplicantScreeningReports,and/or(ii)obtainfromHireRight,at HireRight'sthen-currentfee,aCDorsimilarformatcontainingcopiesofSubscriber'sApplicantScreeningReports.Thereafter,HireRightshall havenofurtherdutytomaintaincopiesofApplicantScreeningReportsforaccessbySubscriber.14.NOTICES.AnynoticesregardingthisAgreement:(i)mustbeinwriting,(ii)mustbedelivered(a)byfacsimile(withtransmissionconfirmed),(b)inperson,(c)bycertifiedmail,returnreceiptrequested,postagepre-paid,or(d)byanationallyrecognizedovernightdeliveryservice;(iii)mustbedeliveredtotheapplicablepartyattheaddresssetforthbelowinthissection,orsuchotheraddressasapartymaydesignatebynotice inaccordancewiththissection;and(iv)willbedeemedgivenonthedateofdelivery.IftoHireRight:HireRight 5151CaliforniaAvenue Irvine,CA92617 Attn:LegalDepartment Fax:949.224.6062 IftoSubscriber:TheaddressprovidedbySubscriberduringtheelectronicaccountsetupprocessandassociatedwiththisAgreement.15.LEGALSUPPORTSERVICES.IfHireRight(includinganyofitsaffiliatesandsubsidiaries)assistsSubscriberorisotherwiserequiredto participateinpreparationfor,defenseof,orrespondingtoanylegalorregulatoryproceedingsinvolvingorrelatingtoSubscriber,including,withoutlimitation,subpoenas,depositions,hearingsandtrials(collectively,"LegalSupportServices"),SubscribershallreimburseHireRightfor allcostsandexpensesHireRightreasonablyincursinconnectiontherewith,including,withoutlimitation,reasonableattorneys'feesand disbursements.Excepttotheextentrequiredbylaw,HireRightisundernoobligationtoprovideLegalSupportServicestoSubscriberandwill evaluatesuchmattersonacasebycasebasis.16.MISCELLANEOUS.(a)EntireAgreement;NoThird-PartyBeneficiaries.ThisAgreement(including,withoutlimitation,Subscriber'sHireRightapplicationpaperwork andallattachmentshereto,whichareherebyincorporatedbyreferenceandincludedinthedefinitionof"Agreement")setsforththeentire agreementbetweenthepartieswithrespecttothesubjectmatterhereof,supersedesanypriororcontemporaneouswrittenorverbal discussions,andisnotintendedtoconferanyrights,remediesorclaimstoanythird-party.ThisAgreementmaynotbemodifiedbyany purchaseorderorsimilarorderformsreceivedfromSubscriber,evenifHireRighthasacceptedoracknowledgedreceiptofsuchforms. (b)Amendment.ThisAgreementmaybemodifiedonlybyawritingexecutedbyanauthorizedrepresentativeofbothparties;provided,however,thatanyupdatestotheScheduleofFeesmadefromtimetotimeduringtheTermshallbeeffectiveuponthewrittenauthorizationof Subscriber's"SuperUser"orotherdesignee.(c)Waiver.ThefailureofeitherpartyatanytimetoenforceitsrightsinthisAgreementshallnotbeconstruedasawaiverofsuchrights.(d)Severability;Interpretation.IfanyprovisionofthisAgreement,inwholeorinpart,isdeterminedtobeillegal,unenforceable,orinvalid,such provisionshallbedeletedfromthisAgreementandshallnotaffectthelegality,enforceabilityorvalidityoftheremainderofthisAgreement.This Agreementshallbeconsidereddraftedmutuallybytheparties.(e)Assignment.NeitherpartyshallassignthisAgreementwithoutthepriorwrittenconsentoftheotherparty;provided,however,thatHireRight shallhavetherighttoassignorotherwisetransferthisAgreementinconnectionwithamerger,acquisition,corporatereorganization,public stockoffering,orsaleofallorsubstantiallyallofitsassets.TheforegoinglimitationonSubscriber'sabilitytoassignthisAgreementisdue,in part,toHireRight'sregulatoryobligationsandrelatedcustomercredentialingproceduresandrequirements.(f)RemediesCumulative.SubjecttotheLimitationofLiabilityinSection11,allremediesavailabletoeitherpartyrelatedtothisAgreementare cumulativeandmaybeexercisedconcurrentlyorseparately,andtheexerciseofanyoneremedyshallnotbedeemedanelectionofsuch remedytotheexclusionofotherremedies.(g)ForceMajeure.TheobligationsofeitherpartytoperformunderthisAgreement(otherthanpaymentobligations)shallbeexcusedduringa reasonableperiodofdelaycausedbymattersbeyondsuchparty'sreasonablecontrol,including,withoutlimitation,changesinLaws,closureor unavailabilityofuniversities,courthouseorotherdatasources,powerorinternetservicefailure,third-partysystemorserviceintegrationfailure,war,andearthquake,fire,floodorothernaturaldisaster.(h)Survival.AllprovisionsofthisAgreementthatbytheirnaturearereasonablyintendedtohaveeffectafterterminationofthisAgreement (including.withoutlimitation,compliance,auditrights,privacy,dataprotection,confidentiality,disputeresolution,indemnityandlimitationof liability)shallsurvivesuchtermination.(i)GoverningLaw;Venue;DisputeResolution.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateof Delaware,withoutregardtotheprinciplesofconflictsoflaws.IntheeventofanydisputebetweenthepartiesrelatedtothisAgreement,ifthe partiesareunabletoresolvethedisputeafterholdinggoodfaithandconfidentialdiscussions,thenthedisputeshallbesubmittedto,and determinedexclusivelyby,bindingarbitrationconductedinOrangeCounty,California,pursuanttotherulesandproceduresofJudicial ArbitrationandMediationServices(JAMS).Thepartiesagreethatthearbitrationproceedings,communicationsandanyresulting decisions/awardsshallbetreatedasconfidentialunlessotherwiserequiredbyapplicableLaws.Notwithstandingtheforegoing,eachpartyshall beentitledtoseekimmediateinjunctiverelieftoprotectitsConfidentialInformation.(j)IndependentContractors;Title.ThepartieswillperformtheirobligationsinthisAgreementasindependentcontractors.Nothingcontainedin thisAgreementshallbedeemedtocreateanyassociation,partnership,jointventure,orrelationshipofprincipalandagentbetweentheparties.Subscriberacknowledgesthatalltitle,ownershipandintellectualpropertyrightsoftheHireRightsystem,productsandservices,including,withoutlimitation,allworkperformedunderanystatementofworkbyHireRightinitsperformanceofservices,andalldocumentationrelating thereto,shallremainthepropertyofHireRightand/oritslicensorsorSuppliers,asapplicable.SubscriberfurtheracknowledgesthatHireRightis anaggregatorofthird-partydataandinformationandthatallcontentcontainedinanyScreeningReportisthepropertyoftheapplicablecontent ownerandmaybeprotectedbyapplicablecontract,copyrightandrelatedLaws.SubjecttoapplicableLaws,Subscribershallretainthe perpetualrighttomaintainitscopiesofScreeningReportsinaccordancewiththisAgreement.(k)Counterparts;ValidityofFacsimileandScannedSignatures.ThisAgreementmaybeexecutedbyelectronicorhard-copysignatureandin anynumberofcounterparts,eachofwhichshallbedeemedtobeoneandthesameinstrument.Theexchangeofexecutedcopiesofthis Agreementbyfacsimile,scanner/emailorotherelectronictransmissionwillconstituteeffectiveexecutionanddeliveryofthisAgreementforall purposes.Signaturesofthepartiestransmittedbysuchmethodswillbetreatedinallrespectsashavingthesameeffectasanoriginal signature.(l)Electronic Signature:Effective Date.SubscriberrepresentsthatthisAgreementhasbeenelectronicallyexecutedonitsbehalfbya representativeauthorizedtobindSubscriberwithrespecttotheundertakingsandobligationscontainedinthisAgreement.Byelectronic signaturehereto,SubscriberrepresentsthatitacceptsthetermsandconditionscontainedinthisAgreement.AGREED:ElectronicSignature Signed:AnnaSanchez E-mailAddress:asanchez@cmsdca.gov Title:AdministrativeServiceManager Companyname:CostaMesaSanitaryDistrict Address:628W.19thStreetCostaMesaCalifornia92627 IPAddress: Dated:07/02/201307:48 Thisisanelectronicsignature,andisgiveninaccordancetoU.S.federalregulationsgoverningthelegal andbindingeffectivenessofelectronicsignatures.