EXHIBIT 10.3



 





Exhibit 10.3



Fiscal Year 2005

Execcutive Bonus Agreement

Pursuant to the 2003 Performance Award Plan

July 1, 2004 – June 30, 2005




Name:      [Insert Name]                                         Title:      [Insert Job Title]



Effective Date:      July 1, 2004




Target Bonus:      [Insert Target %] of Annual Base Salary                     Employee ID:      [Insert ID]




Annual Base Salary:      [Insert Annual Base Salary]



This bonus plan and this specific employee’s participation were approved by the Board of Directors
of Corinthian Colleges, Inc. (the “Company”). It covers the period July 1, 2004 through June 30,
2005. Any deviation from the provisions of the bonus plan, as stated below, must be specifically
approved by the Company’s Board of Directors.



The employee is eligible to earn a bonus payment, as described below, so long as the employee is
employed by the Company in the position listed above and so long as this bonus plan remains in
effect. The employee will be eligible for bonus consideration only during complete calendar months
of the fiscal year in which the employee occupies the bonus eligible position. To determine
eligibility for the annual bonus payment, actual Company performance will be measured against the
performance goals for the fiscal year covered by this bonus plan.



As in the past, the earned bonus may be paid only if and to the extent that the bonus payment has
been accrued by the Company.



To receive any bonus earned under this plan, the employee must be eligible, as stated above, and be
employed by the Company at the time of bonus payment. Pro-rated bonus payments will be made only
when minimum performance targets have been achieved and only when one of the following occurs:






	 	(A)	 	Employee enters the bonus eligible position after the fiscal year commences; or
	 
	 	(B)	 	Eligible employee retires from employment with the Company prior to the end of the fiscal
year, having attained age 55 or older at retirement and having provided acceptable advance
formal notification to the Company of intention to retire; or
	 
	 	(C)	 	Other situations expressly approved by the Company’s Board of Directors.




All quarterly and annual bonuses will be paid within 90 days of the end of the fiscal year. All
bonuses will be calculated based on the base salary in effect at the end of the fiscal year.



If a pro-rated bonus payment is granted, the amount of bonus paid will be calculated based on the
number of complete calendar months the employee occupied the bonus eligible position during the
fiscal year. For example, with regard to an annual bonus payment, an employee occupying the bonus
eligible position for nine and one half calendar months of the fiscal year would receive 75% of the
total annual bonus calculated.








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Fiscal Year 2005

Executive Bonus Agreement

Pursuant to the 2003 Performance Award Plan



			
	July 1, 2004 – June 30, 2005
	 	[Insert Job Title]







QUARTERLY AND ANNUAL BONUSES





	A.	 	Introduction. Quarterly bonuses will only be fully earned (1) by achievement of quarterly
performance targets, and (2) if specific annual performance targets related to budgeted Operating
Profit and Revenue are also achieved. The specific amount of the bonuses actually earned for
quarterly performance will be tied to the specific level of annual achievement of Operating Profit
and Revenue targets. Thus, if the annual performance is higher or lower than target, but still
within the bonus eligibility range as shown on Attachment A, the bonus earned for individual
quarterly performance would be reduced or increased based on the same ratios of reduction or
increase achieved for the annual portion of the bonus.
	 
	 	 	For example, if the employee achieved bonus eligibility performance in three quarters and the
Division’s annual performance was below target in Operating Profit and Revenue (earning, for
example, half of the annual Target Bonus, per the bonus payout schedule), the annual payment
for the three earned quarterly bonuses would also be reduced by the same ratio (one half in
this example). Conversely, if the annual performance exceeded the annual Target Bonus
(earning, for example, 125% of the annual Target Bonus), then the quarterly bonuses earned
would also be increased by that same ratio (125%).
	 
	B.	 	Award timing. The bonuses related to quarterly performance targets will not be paid until after
the end of the fiscal year, at the same time the annual bonus is paid.
	 
	C.	 	Performance measures and goals. Goals for each performance measure (e.g., Operating
Profit, Revenue, etc.) are drawn from the fiscal year 2005 budget.
	 
	D.	 	Size of Awards. The employee’s total target bonus equals [Insert Target %] of the employee’s
annual base salary (the “Target Bonus”). This includes [Insert Quarterly Target %] of the annual
base salary ([Insert Quarterly Weighting %] of the total Target Bonus) for achievement of all
quarterly performance targets and [Insert Annual Target %] of annual base salary ([Insert Annual
Weighting %] of total Target Bonus) for achievement of all annual performance targets by [Insert
Division Name], hereinafter the “Division.” In addition, overachievement of the annual Division
performance goals will entitle the employee to earn additional bonus, as specified below.
	 
	 	 	If overachievement of performance objectives is achieved, the maximum bonus which may be earned
from the sum of all components of this bonus plan is [Insert Maximum %] of annual base salary
(150% of total Target Bonus).
	 
	E.	 	Reduction of awards. In the event the employee earns a cumulative bonus equal to more than 125%
of the Target Bonus, the Company’s Board of Directors retains the right, in its sole and absolute
discretion, to decrease the amount of bonus down to, but to not less than, 125% of the Target
Bonus.
	 
	F.	 	Form of awards. Awards may be distributed in the form of cash, Restricted Stock Units
(“RSUs”) or Deferred Stock Units (“DSUs”).









2 of 6









 





Fiscal Year 2005

Executive Bonus Agreement

Pursuant to the 2003 Performance Award Plan



			
	July 1, 2004 – June 30, 2005
	 	[Insert Job Title]









	 	1.	 	Less than or equal to 100% of Target Bonus. Awards up to 100% of Target Bonus
will be paid in cash, unless the employee has made a timely deferral election, in which
case the employee may defer up to 90% of the Target Bonus in the form of fully vested DSUs
under the Executive Deferral Plan.
	 
	 	2.	 	Greater than 100% of Target Bonus. If any portion of the actual bonus earned
exceeds the Target Bonus, the Company may, at the discretion of the Board of Directors,
contribute the excess amount to the employee’s account under the Executive Deferral Plan
in the form of an RSU award under the 2003 Performance Award Plan. The RSUs will “vest”
at the rate of 25% per year over the next four years after the award date.







	G.	 	Performance Gate. As noted at the bottom of Attachment A, the Division must achieve a minimum
of [Insert Operating Profit Gate] in Operating Profit in Fiscal 2005 for the employee to earn any
annual bonus related to Revenue, regardless of actual annual Revenue performance.





Quarterly Bonus Criteria





	A.	 	Size of awards. This portion of the bonus plan for this position provides quarterly bonus
payments for successful achievement of one or more of the performance targets. The aggregate
amount of bonus attributable to the quarterly performance targets is [Insert Quarterly Weighting %]
of the Target Bonus.
	 
	B.	 	Award timing. The bonuses related to quarterly performance targets will not be paid until after
the end of the fiscal year, at the same time the annual bonus is paid.
	 
	C.	 	Performance measures and goals. The possible annual summation is listed for illustration
purposes only to show the total possible annual summation of quarterly bonuses under the quarterly
portion of the bonus plan. All performance targets are stated as Division performance targets,
including all headquarters expenses for the Division and all schools.





	 	 	 	 	 
	 	 	 	 	Possible
	 	 	Quarterly	 	Annual
	Performance Target
	 	Bonus
	 	Summation

	Achieve Budgeted Bad Debt

	 	[Insert %]
	 	[Insert %]
	Achieve Budgeted Operating Profit

	 	[Insert %]
	 	[Insert %]
	Achieve Budgeted Revenue

	 	[Insert %]
	 	[Insert %]
	Achieve Budgeted Student Attrition

	 	[Insert %]
	 	[Insert %]
	Achieve Minimum 85% Student Satisfaction from most recent Student Satisfaction Surveys
	 	[Insert %]
	 	[Insert %]
	Total

	 	[Insert %]
	 	[Insert %]















	1.	 	Bad Debt, Student Attrition and Student Satisfaction. If quarterly Budgeted Bad Debt,
Budgeted Student Attrition, and a Minimum Score of 85% from the most recent Student
Satisfaction Surveys is not achieved, then no bonus will be paid for the respective target
(i.e., there will be no pro-rata payment for underachievement).









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Fiscal Year 2005

Executive Bonus Agreement

Pursuant to the 2003 Performance Award Plan



			
	July 1, 2004 – June 30, 2005
	 	[Insert Job Title]









	2.	 	Operating Profit and Revenue. The chart below reflects the pro-rated percentage of
Target Bonus available for achievement of Budgeted Operating Profit and Budgeted Revenue
each quarter down to 85% of the budget for each performance measure.





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Achieve Minimum 85% (Dollars in Thousands)

	 	 	Budgeted Operating Profit
	 	Budgeted Revenue

	 	 	Achievement
	 	Awards
	 	Achievement
	 	Awards

	% of	 	 	 	 	 	 	 	 	 	% of	 	Quarterly	 	 	 	 	 	 	 	 	 	% of	 	Quarterly
	Budget	 	 	 	 	 	 	 	 	 	Available	 	Bonus	 	 	 	 	 	 	 	 	 	Available	 	Bonus
	Achieved
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	Bonus
	 	Earned
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	Bonus
	 	Earned

	100%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	100	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	100	%	 	[Insert %]
	99%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	97	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	97	%	 	[Insert %]
	98%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	94	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	94	%	 	[Insert %]
	97%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	91	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	91	%	 	[Insert %]
	96%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	88	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	88	%	 	[Insert %]
	95%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	85	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	85	%	 	[Insert %]
	94%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	82	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	82	%	 	[Insert %]
	93%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	79	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	79	%	 	[Insert %]
	92%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	76	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	76	%	 	[Insert %]
	91%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	73	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	73	%	 	[Insert %]
	90%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	70	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	70	%	 	[Insert %]
	89%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	67	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	67	%	 	[Insert %]
	88%
	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	64	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	64	%	 	[Insert %]
	87%

	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	61	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	61	%	 	[Insert %]
	86%

	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	58	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	58	%	 	[Insert %]
	85%

	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	55	%	 	[Insert %]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	[Insert $]	 	 	55	%	 	[Insert %]









	D.	 	Bonus calculation. Following the end of the plan year, an annual bonus calculation is
performed in order to determine the fully earned quarterly bonus. The amount of quarterly bonus
that is fully earned is determined by dividing the annual bonus earned by the annual Target Bonus
and multiplying this ratio by each quarterly bonus earned for each fiscal quarter. (See Example
provided in the Introduction on page 2.)





Annual Bonus Criteria





	A.	 	Introduction. A plan participant may receive an annual bonus payment for achievement of
specific performance goals as described below and specified on Attachment A.
	 
	B.	 	Goals. Operating Profit and Revenue for the Division are equal to budgeted Operating Profit and budgeted Revenue for the Division.
	 
	C.	 	Size of awards. Achievement of goals will earn a bonus payment equal to [Insert Annual
Target %] of the employee’s annual base salary. The maximum bonus which may be earned under
the annual portion of the bonus plan, including overachievement, is 150% of the annual target
bonus, or in the case of this specific employee, [Insert Annual Maximum %] of annual base
salary, as specified in Attachment A. Refer to Attachment A for the specific bonus payments
earned for various levels of performance.









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Fiscal Year 2005

Executive Bonus Agreement

Pursuant to the 2003 Performance Award Plan



			
	July 1, 2004 – June 30, 2005
	 	[Insert Job Title]







GENERAL PROVISIONS


The Company’s Board of Directors reserves the right to adjust bonus plan performance goals upon the
occurrence of unusual or extraordinary events. The Company also reserves the right to reduce,
suspend, or eliminate the payment of any bonus earned, if significant regulatory and or business
practices attributed to the employee are determined to be improper by the Company’s Board of
Directors. The Board will also have the right, in its sole and absolute discretion, to reduce,
suspend or eliminate the payment of any bonus earned if the Company’s independent auditors find any
“significant deficiency” in compliance with the requirements of Section 404 of the Sarbanes-Oxley
Act within the employee’s area of functional or operational responsibility.



Nothing in this document is to be construed to guarantee its continuation in this or any future
years.



The Company’s Board of Directors of Corinthian Colleges, Inc. will make the final decision
regarding any disputed bonus computation or award.




REQUEST FOR SIGNATURE


Please sign and return this document to Corporate Human Resources.







Employee Signature

[Insert Name]





Executive Vice President, Administrative Services

Dennis Devereux




		
	Note: 	Original signed plan document must be returned to Corporate Human Resources to
implement this bonus plan.









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Fiscal Year 2005

Executive Bonus Agreement

Pursuant to the 2003 Performance Award Plan



			
	July 1, 2004 – June 30, 2005	 	[Insert Job Title]







Attachment A: Annual Award Payout Schedule



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Annual	 	Target
	 	Maximum

	 	 	 	 	 	 	Base	 	as % of	 	Award	 	as % of	 	Award
	Job
	 	Employee
	 	Salary
	 	Base Sal.
	 	Payout
	 	Base Sal.
	 	Payout

	[Insert Job Title]
	 	[Insert Name]	 	[Insert $]	 	[Insert %]	 	[Insert $]	 	[Insert %]	 	[Insert $]







Annual Bonus Overview



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Awards as % of	 	 
	 	 	Weighting
at Target	 	Base Salary
	 	Award $

	Performance Measure
	 	and Max.
	 	Target
	 	Maximum
	 	Target
	 	Maximum

	Operating Profit
	 	 	60.0	%	 	[Insert %]	 	[Insert %]	 	[Insert $]	 	[Insert $]
	Revenue
	 	 	40.0	%	 	[Insert %]	 	[Insert %]	 	[Insert $]	 	[Insert $]
	TOTAL
	 	 	100.0	%	 	[Insert %]	 	[Insert %]	 	[Insert $]	 	[Insert $]







Annual Award Calculation Table



	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating Profit

	 	 	Actual	 	Award	 	 
	 	 	Oper. Prof.	 	as % of	 	 
	 	 	as % of	 	Target	 	Award
	 	 	Budget
	 	Bonus
	 	Payout

	Maximum
	 	 	106	%	 	 	90.0	%	 	[Insert $]
	 
	 	 	105	%	 	 	85.0	%	 	[Insert $]
	 
	 	 	104	%	 	 	80.0	%	 	[Insert $]
	 
	 	 	103	%	 	 	75.0	%	 	[Insert $]
	 
	 	 	102	%	 	 	70.0	%	 	[Insert $]
	 
	 	 	101	%	 	 	65.0	%	 	[Insert $]
	Target
	 	 	100	%	 	 	60.0	%	 	[Insert $]
	 
	 	 	99	%	 	 	50.0	%	 	[Insert $]
	 
	 	 	98	%	 	 	40.0	%	 	[Insert $]
	 
	 	 	97	%	 	 	30.0	%	 	[Insert $]
	 
	 	 	96	%	 	 	20.0	%	 	[Insert $]
	 
	 	 	95	%	 	 	10.0	%	 	[Insert $]
	 
	 	 	94	%	 	 	6.7	%	 	[Insert $]
	 
	 	 	93	%	 	 	6.0	%	 	[Insert $]
	 
	 	 	92	%	 	 	5.3	%	 	[Insert $]
	 
	 	 	91	%	 	 	4.7	%	 	[Insert $]
	 
	 	 	90	%	 	 	4.0	%	 	[Insert $]
	 
	 	 	89	%	 	 	3.3	%	 	[Insert $]
	 
	 	 	88	%	 	 	2.7	%	 	[Insert $]
	 
	 	 	< 88	%	 	 	0.0	%	 	[Insert $]







	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue

	 	 	Actual	 	Award	 	 
	 	 	Revenue	 	as % of	 	 
	 	 	as % of	 	Target	 	Award
	 	 	Budget
	 	Bonus
	 	Payout

	Maximum
	 	 	110	%	 	 	60.0	%	 	[Insert $]
	 
	 	 	109	%	 	 	58.0	%	 	[Insert $]
	 
	 	 	108	%	 	 	56.0	%	 	[Insert $]
	 
	 	 	107	%	 	 	54.0	%	 	[Insert $]
	 
	 	 	106	%	 	 	52.0	%	 	[Insert $]
	 
	 	 	105	%	 	 	50.0	%	 	[Insert $]
	 
	 	 	104	%	 	 	48.0	%	 	[Insert $]
	 
	 	 	103	%	 	 	46.0	%	 	[Insert $]
	 
	 	 	102	%	 	 	44.0	%	 	[Insert $]
	 
	 	 	101	%	 	 	42.0	%	 	[Insert $]
	Target
	 	 	100	%	 	 	40.0	%	 	[Insert $]
	 
	 	 	99	%	 	 	33.3	%	 	[Insert $]
	 
	 	 	98	%	 	 	26.7	%	 	[Insert $]
	 
	 	 	97	%	 	 	20.0	%	 	[Insert $]
	 
	 	 	96	%	 	 	10.0	%	 	[Insert $]
	 
	 	 	95	%	 	 	5.0	%	 	[Insert $]
	 
	 	 	94	%	 	 	3.6	%	 	[Insert $]
	 
	 	 	93	%	 	 	2.9	%	 	[Insert $]
	 
	 	 	92	%	 	 	2.1	%	 	[Insert $]
	 
	 	 	91	%	 	 	1.4	%	 	[Insert $]
	 
	 	 	90	%	 	 	0.7	%	 	[Insert $]
	 
	 	 	< 90	%	 	 	0.0	%	 	[Insert $]









		
	Note: 	The company must achieve at least [Insert Performance Gate $] in Operating Profit in Fiscal
2005 for the employee to earn any annual bonus related to Revenue, regardless of actual annual
Revenue performance.










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