First Advantage Corporation Senior Executive Annual Incentive Program.



  
 Exhibit 10.3

  
 

 
  
 First Advantage Corporation (FADV)

 Senior Executive Annual Incentive Program 
 Program Term Sheet/Summary — Fiscal Year 2005 
  
 The Annual Incentive Program provides incentive compensation based on goal achievement. If performance hurdles are achieved or exceeded, bonus payments will result; however, if performance hurdles are not met,
no bonuses will be paid. The Compensation Committee of the Board of Directors has formally approved this program and reserves the right to interpret and possibly amend aspects of this Bonus Program. 
  

	1.	AWARD OPPORTUNITIES 

  
 Your FY2005 Target Bonus Award Opportunity will be based on a percentage of your Base Salary paid in FY2005. Your Target Award Opportunity for FY2005 is expressed below; more or less than Target may ultimately be
earned: 
  

			
	 Executive Name

	 	 Target Award Opportunity
(% of Base Salary)


	 John Long
	 	100%
	 John Lamson
	 	100%
	 Akshaya Mehta
	 	100%

  
 If, at the conclusion of the
Performance Period, you do not have 12 months of continuous service, your Award Opportunity shall be prorated for the number of full months worked through the end of the Performance Period divided by 12. 
  

	2.	PERFORMANCE TIME PERIOD 

  
 The Performance Period will be the 12-month Fiscal Year and shall commence at the beginning of the Fiscal Year, or January 1, and shall conclude at the end of the Fiscal
Year, or December 31. 
  

 Page 1 









	3.	PERFORMANCE MEASURES — SELECTION AND WEIGHTING 

  
 A combination of Financial and Non-Financial (i.e., Individual MBOs) Performance Measures will be utilized. For Financial Performance Measures, the selection and
weighting for FY2005 are set forth below: 
  

															
	 	  	Performance Measure #1

	 	Performance Measure #2

	 	Performance Measure #3

	 	Total
Weight
(A+B+C)


	 Executive Name

	  	Measure

	  	Weight (A)

	 	Measure

	  	Weight (B)

	 	Measure

	  	Weight (C)

	 
	 John Long
 John Lamson
 Akshaya Mehta
	  	EPS	  	66 2/3%	 	Strategic MBOs	  	33 1/3%	 	<none>	  	<none>	 	100%
	 Evan Barnett
	  	Business Unit
Pre-Tax Profit	  	50%	 	EPS	  	25%	 	Strategic
MBOs	  	25%	 	100%

  
 For Non-Financial Performance
Measures/MBOs, a qualitative assessment after completion of the Fiscal Year will need to be made. In these cases, an assessment of the performance relative to the goals established at the beginning of the year will need to be made. The Chairman of
the Board will make this assessment for the CEO’s Non-Financial Performance Measures and the CEO will assess all other Participants’ performance against their Non-Financial Measures. 
  
 In addition, bonus awards calculated above may be subject to a Compensation Committee
Performance Modifier that can adjust calculated awards +/- 25%. 
  

	4.	PERFORMANCE GOAL HURDLES FOR FY2005 

  
 The Financial portion of the total bonus opportunity will pay out based on the level of Performance Goal achievement for each Performance Measure specified for each
eligible Participant. For FY2005, the Performance Goals are as follows: 
  

					
	 Performance Hurdle

	 	 Award Payout
(as a % of Target)

	 	 % of Targeted
Goal that Must
be Achieved


	 Threshold
	 	25%	 	85%
	 Target
	 	100%	 	100%
	 Maximum
	 	150%	 	115%

  
 Table Notes: Mathematical
equal-distant interpolation shall be used to determine payments between performance hurdles. 
  

	5.	TERMINATION PROVISIONS 

  
 In the event of your Termination of employment, the Compensation Committee shall, in its sole discretion, determine the amount, timing, and form or any Bonus Payments
payable. For FY2005, it is the Compensation Committee’s intention to pay Bonuses in following manner, depending upon the type of Termination: 
  

									
	 Type of
Termination

	 	 Treatment of
Award

	 	 How Determine
Payout?

	 	 Timing of Award

	 	 Form of Award


	 Voluntary Quit or Resignation
	 	Award is 100% forfeited.	 	n/a	 	n/a	 	n/a

  

 Page 2 









									
	 Qualified Reduction in Force/Layoff
	 	Prorated Award opportunity equal to the # of full months worked in Fiscal Year.	 	Payout based on actual, full-year performance achievement.	 	Prorated Award will be paid at regularly scheduled payment date.	 	In cash.
	 Qualified Retirement
	 	 	 	 	 
	 Qualified Disability
	 	 	 	 	 	 
	 Death
	 	 	Payout at Target.	 	Immediate payout.	 	 
	 Change-in-Control
	 	Full 100% of Award Opportunity.	 	Higher of (1) Target
or (2) Actual
Performance to-date.	 	Immediate payout.	 	 

  
 Note: The Compensation
Committee shall have full authority to determine and interpret the type of Termination applicable to each individual Participant. 
  

	6.	OTHER CONSIDERATIONS 

  

	 	•	 	Participants must be currently employed by the Company and in “good standing” (per Human Resources Department) on the date of actual bonus disbursement.


  

	 	•	 	In the event of a salary adjustment during the Performance Period, Award Opportunity shall be prorated based on the proportion of time spent at the corresponding salaries and
targeted bonus levels. 

  

 Page 3