Document:

EX-4.12

 Exhibit 4.12 

TO: [______] 
 First
Advantage Corporation 
 1 Concourse Parkway NE, Suite 200 

Atlanta, Georgia 30328 
 June __,
2021 
 As you may know, First Advantage Corporation, a Delaware corporation (the “Company”) has completed an initial
public offering of its common stock (the “IPO”). Prior to the pricing of the IPO, the Company was a direct subsidiary of Fastball Holdco, L.P., a Delaware limited partnership (the “LP Entity”). Immediately prior to
the closing of the IPO, the LP Entity undertook an IPO Conversion (as defined in the Amended and Restated Limited Partnership Agreement of Fastball Holdco, L.P., dated January 31, 2020, as amended by the First Amendment thereto, dated and
effective as of December 22, 2020 (as so amended and as may be further amended from time to time, the “LP Agreement”). In connection with the IPO Conversion, your then outstanding
non-qualified options (the “Prior Options”) to purchase Class B LP Units (the “Units”) of the LP Entity pursuant to that certain Option Grant Agreement, dated
[                    ] (the “Option Agreement”) were replaced by non-qualified options (the
“New Options”) to purchase shares of common stock (“Shares”) of the Company (the “Exchange”). 
 What
you received in exchange for your Prior Options. 
 You received New Options in exchange for your Prior Options. The Shares underlying
the New Options are the same class of shares that are publicly traded. The Shares acquired upon exercise of the New Options will be registered on Form S-8 under the Securities Act of 1933, as amended. 

The New Options you received in exchange for your Prior Options. 

The number of New Options you received was determined as the product of (i) the number of Prior Options you held immediately prior to the
Exchange, multiplied by (ii) the Exchange Ratio, rounded down to the nearest whole number of Shares and the exercise price per Share of each New Option was determined as the quotient of (i) the per share exercise price of the corresponding
Prior Option immediately prior to the Exchange, divided by (ii) the Exchange Ratio, rounded up to the nearest whole cent, where the “Exchange Ratio” is defined as 1.5133888590. The number of New Options that you received is set
forth in the schedule on the Company’s signature page below, which schedule also indicates the number of such New Options that are vested and the number that are unvested and will continue to be subject to the vesting provisions set forth in
the Option Agreement, which Option Agreement, and all of the Partnership’s rights and obligations thereunder, was assumed by the Company in connection with the Exchange. The schedule on the Company’s signature page below also includes the
new exercise price per share. 
 Vested and Unvested New Options. 

You received partially vested and partially unvested New Options for your Prior Options, as follows: 

 

	 	•	 The New Options you received that correlated to vested Prior Options were fully vested upon the Exchange.

  

	 	•	 The New Options you received that correlated to unvested Prior Options remain subject to the same vesting terms
as the original unvested Prior Options as set forth in the Option Agreement. 

 Option Agreement. 

The New Options remain subject to the Option Agreement, except as provided below. 

All references to the term “Partnership Agreement” in the Option Agreement are hereby either inapplicable to the New Options or are
replaced with the term “Options” or “Agreement,” as the context requires. 
 The following terms in the Option Agreement
are hereby replaced with new terms as provided below. 
  

	 	•	 	 The term “Board of Managers” is hereby replaced with “Board,” which is defined as follows:
the Board of Directors of the Company. 

  

	 	•	 	 The terms “Class B LP Unit” and “Unit” are hereby replaced with “Share,” which
is defined as follows: a share of common stock of the Company. 

  

	 	•	 	 The term “General Partner” is hereby replaced with “Committee,” which is defined as follows:
the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such Compensation Committee or subcommittee thereof exists or if the Board chooses to act as the Committee, the Board.

  

	 	•	 	 The terms “Partnership” and “IPO Corporation” are hereby replaced with “Company,”
which is defined as follows: First Advantage Corporation, a Delaware corporation. 

  

	 	•	 	 The term “Partnership Group” is hereby replaced with “Company Group,” which is defined as
follows: the Company and its Subsidiaries collectively. 

 The following terms in the Option Agreement that were
previously defined in the Partnership Agreement are hereby defined as provided below. 
  

	 	•	 	 The term “Affiliate” is defined as follows: any Person that directly or indirectly controls, is
controlled by or is under common control with the Company. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise. 

 

	 	•	 	 The term “Cause” is defined as follows: as to Grantee, (i) “Cause,” as defined in any
employment or consulting agreement between Grantee and the Service Recipient in effect at the time of Grantee’s termination of Employment; or (ii) in the absence of any such employment or consulting agreement (or the absence
of any definition of “Cause” contained therein), the Grantee’s (A) willful neglect in the performance of the Grantee’s duties for the Service Recipient or willful or repeated failure or refusal to perform such
duties; (B) engagement in conduct in connection with Grantee’s Employment with the Service Recipient, which results in, or could reasonably be expected to result in, material harm to the business or reputation of the Company
or any other member of the Company Group; (C) conviction of, or plea of guilty or no contest to, (I) any felony; or (II) any other crime that results in, or could reasonably be expected to
result in, material harm to the business or reputation of the Company or any other member of the Company Group; (D) material violation of the written policies of the Service Recipient, including, but not limited to, those relating
to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (E) fraud or misappropriation, embezzlement or misuse of funds or
property belonging to the Company or any other member of the Company Group; or (F) act of personal dishonesty that involves personal profit in connection with Grantee’s Employment to the Service Recipient. 

 

	 	•	 	 The term “Change of Control” is defined as follows: (i) the acquisition (whether
by purchase, merger, consolidation, combination or other similar transaction) by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty
percent (50%) of either (A) the then outstanding shares of common stock, taking into account as outstanding for this purpose such common stock issuable upon the exercise of options or warrants, the conversion of convertible stock
or debt, and the exercise of any similar right to acquire such common stock; or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors;
provided, that, for purposes of the Agreement, the following acquisitions shall not constitute a Change of Control: (I) any acquisition by the Company or any Affiliate; (II) any acquisition by any employee
benefit plan sponsored or maintained by the Company or any Affiliate; or (III) in respect of an equity award held by Grantee, any acquisition by Grantee or any group of Persons including Grantee (or any entity controlled by
Grantee or any group of Persons including Grantee); (ii) during any period of twelve (12) months, individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board; provided, that any person becoming a director subsequent to the Grant Date, whose election or nomination for election was approved by a vote of at least two-thirds
(2/3rd) of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an
Incumbent Director; provided, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of
Regulation 14A promulgated under the Exchange Act, with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent
Director; or (iii) the sale, transfer or other disposition of all or substantially all of the assets of the Company Group (taken as a whole) to any Person that is not an Affiliate of the Company. 

 

	 	•	 	 The term “Distribution” is defined as follows: distributions of cash, Securities or other assets
available for distribution to shareholders of the Company in respect of Shares. 

  

	 	•	 	 The term “Exchange Act” is defined as follows: the Securities Exchange Act of 1934, as amended, and
any successor thereto. Reference in the Agreement to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or
successor provisions to such section, rules, regulations or guidance. 

  

	 	•	 	 The term “Initial Public Offering” means the IPO.  

 

	 	•	 	 The term “Person” is defined as follows: any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act). 

  

	 	•	 	 The term “Permitted Transferee” is defined as follows: (i) any person who is a
“family member” of Grantee, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statement promulgated by the Securities and Exchange
Commission (collectively, the “Immediate Family Members”); (ii) a trust solely for the benefit of Grantee and Grantee’s Immediate Family Members; (iii) a partnership or limited liability company whose only
partners or stockholders are Grantee and Grantee’s Immediate Family Members; or (iv) a beneficiary to whom donations are eligible to be treated as “charitable contributions” for federal income tax purposes.

	 	•	 	 The term “Public Offering” is defined as follows: the sale of Shares (or equity securities of any
IPO Corporation) to the public in an underwritten offering or direct listing pursuant to an effective registration statement filed with the SEC pursuant to the Securities Act, as then in effect; provided that a Public Offering shall not include an
offering made in connection with a business acquisition by the Company or any of its Subsidiaries or combination or an employee benefit plan. 

  

	 	•	 	 The term “Restrictive Covenant Violation” is defined as follows: a breach by Grantee of any
restrictive covenants, including any covenant relating to confidentiality, non-competition, non-solicitation, non-interference
and non-disparagement, that Grantee is subject to by reason of any agreement with the Service Recipient or any member of the Company Group. 

 

	 	•	 	 The term “Securities” is defined as follows: capital stock, limited partnership interests, limited
liability company interests, beneficial interests, warrants, options, notes, bonds, debentures, and other securities, equity interests, ownership interests and similar obligations of every kind and nature of any Person. 

 

	 	•	 	 The term “Securities Act” is defined as follows: the Securities Act of 1933, as amended, and any
successor thereto. Reference in the Agreement to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or
successor provisions to such section, rules, regulations or guidance. 

  

	 	•	 	 The term “Subsidiary” is defined as follows: with respect to any specified Person:
(i) any corporation, association or other business entity of which more than fifty percent (50%) of the total voting power of shares of such entity’s voting securities (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person
(or a combination thereof); and (ii) any partnership (or any comparable foreign entity) (A) the sole general partner (or functional equivalent thereof) or the managing general partner of which is such Person or
Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

 

	 	•	 	 The term “Tax Distribution” is inapplicable following the IPO. 

The New Options you received were in exchange for, and superseded in all respects, the Prior Options. The Option Agreement, as amended herein, shall remain
in full force and effect. 
 We are excited about our new, exciting chapter as a public company. 

 

	
	 Sincerely,
  

	  

Scott Staples

	 Chief Executive Officer

 Option Schedule 

Name:                         
                   [_____] 
 Total New
Options:                      [_____] 
 New
Exercise Price per Share:     $[____] 
  

							
	 Prior Options
	 	 New Options

	 Number of Vested

Prior Options
	 	 Number of Unvested

Prior Options
	 	 Number of Vested

New Options
	  	 Number of Unvested

New Optionsghmp_ex101.htm

 
 EXHIBIT 10.1
  
 ENGAGEMENT AGREEMENT
  
 THIS AGREEMENT is entered into by and between Good Hemp, Inc. (“Good Hemp” or “Company”) (and/or all subsidiary companies, corporations and or entities) and Sperry Advisory Services, LLC, a Utah LLC, located in West Jordan, Utah (hereinafter referred to as “Consultant”) at 4546 Black Elk Way, West Jordan, Utah 84088, both of which will be herein referred to as the “Parties.” 
  
 NOW, THEREFORE, for and in consideration of the mutual covenants and obligations assumed by the parties hereto, it is agreed as follows: 
  
 Terms
  
 1. Services to Be Performed and Terms of Payment 
  
 Consultant would like to offer our consulting services to support Good Hemp in the capacity of providing accounting type services, on a part-time, contract capacity. Those services include, but not limited to, the following: 
  
 	  
	 ·
	Review of monthly financials and reconciliations.
	  
	 ·
	Preparation of financial statements.
	  
	 ·
	Consultant will sign as signatories on the Company’s required 906 and 302 certifications for SEC reporting purposes.
	  
	 ·
	Consultant will not be a check signer nor sign Good Hemp documents other than stated above.

   
 The above procedures do not constitute an audit, review, or compilation of the financial statements in accordance with the standards established by the American Institute of Certified Public Accountants. Accordingly, we do not express an opinion or any other form of assurance on the financial statements of the Company or any other financial information, or operating and internal controls of the Company. 
  
 We make no representation regarding the sufficiency of our work nor are we experts for purposes for which any report has been requested or for any other purpose. The sufficiency of the work we performed is solely the responsibility of Good Hemp. Had we been requested to perform additional work, additional matters might have come to our attention that would have been reported to you. 
  
 It is our policy to keep records related to this engagement for 3 years. However, Consultant does not keep any original client records, so we will return those to you at the completion of the services rendered under this engagement. When records are returned to you, it is your responsibility to retain and protect your records for possible future use, including potential examination by any government or regulatory agencies. 
  
 	 
	1
	

	 

  
 As full and complete compensation for Consultant services and for the discharge of all Consultant’s obligations hereunder, Good Hemp shall pay Consultant: 
  
 	  
	 ·
	 $150 per hour for financial statement preparation and reporting services.

	  
	 ·
	$90 per hour for bookkeeping services.

   
 Consultant requires a retainer of $2,000 to begin services. All billings must be paid upon receipt of invoice. We reserve the right to stop services until invoices are paid in full, as delivered. Fees are to be paid by wire. 
  
 For additional procedures to be performed, the Company and Consultant will come to an agreement as to whether these services will be performed under an hourly rate structure or under a fixed fee on a project-by-project basis. 
  
 2. Expenses 
  
 Good Hemp shall reimburse Consultant for approved reasonable expenses that directly attributable to and owed by Good Hemp (e.g., air, travel, hotel, postage, etc.). Consultant shall submit an itemized statement of their expenses directly attributable to Good Hemp. Good Hemp shall pay on receipt of each statement or receipt. 
  
 3. Independent Consultant Status 
  
 Consultant is an independent Consultant, and neither Consultant nor Consultant's employees or contract personnel are, or shall be deemed, Good Hemp's employees. In its capacity as an independent Consultant, Consultant agrees and represents, and Good Hemp agrees, as follows: 
  
 	  
	 ·
	 Consultant has the right to perform services for others during the term of this Agreement. However, such services shall not interfere with the duties delegated to him or her by Good Hemp. Good Hemp’s duties are to be performed within the expected time frame as a condition of the right to perform services for others.

 	  
	 ·
	Consultant has the sole right to control and direct the means, manner, and method by which the services required by this Agreement will be performed.
	  
	 ·
	Consultant has the right to perform the services required by this Agreement at any place or location and at such times as Consultant may determine.
	  
	 ·
	Consultant has the right to employ assistants and/or independent contractors (“Contract Personnel”) to provide the services required by this Agreement. If Consultant does employ assistants, Good Hemp shall in no way be responsible for said assistants and/or Consultants, either financially or legally.
	  
	 ·
	The services required by this Agreement shall be performed by Consultant or by Consultant's employees or contract personnel, and Good Hemp shall not hire, supervise, or pay any assistants to help Consultant.
	  
	 ·
	Neither Consultant nor Consultant's employees or contract personnel shall receive any training from Good Hemp in the professional skills necessary to perform the services required by this Agreement.
	  
	 ·
	Neither Consultant nor Consultant's employees or contract personnel shall be required by Good Hemp to devote full time to the performance of the services required by this Agreement.

  
 	 
	2
	

	 

   
 4. Business Permits, Certificates, and Licenses 
  
 Consultant represents to Good Hemp that they have complied with all federal, state, and local laws requiring business permits, certificates, and licenses required to carry out the services to be performed under this Agreement. 
  
 5. State and Federal Taxes 
  
 Good Hemp will not: 
  
 	  
	 ·
	Withhold FICA (Social Security and Medicare taxes) from Consultant's payments or make FICA payments on Consultant's behalf;
	  
	 ·
	Make state or federal unemployment compensation contributions on Consultant's behalf; or,
	  
	 ·
	Withhold state or federal income tax from Consultant's payments.

   
 Consultant shall pay all taxes incurred while performing services under this Agreement--including all applicable income taxes and, if Consultant is not a corporation, self-employment (i.e., social security) taxes. Upon demand, Consultant shall provide Good Hemp with proof that such payments have been made. Consultant’s EIN number is 87-1217263. 
  
 6. Fringe Benefits 
  
 Consultant understands that neither Consultant nor Consultant's employees or contract personnel are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of Good Hemp. If Consultant is subsequently classified by the IRS as a common law employee, Consultant expressly waives his or her rights to any benefits to which he or she was, or might have become, entitled. 
  
 7. Workers' Compensation 
  
 Good Hemp is not responsible and shall not obtain “workers' compensation insurance” on behalf of Consultant or Consultant's employees. If Consultant hires employees to perform any work under this Agreement, Consultant will cover them with workers' compensation insurance to the extent required by law and provide Good Hemp with a certificate of workers' compensation insurance before the employees begin the work.
  
 8. Unemployment Compensation 
  
 Good Hemp shall make no state or federal unemployment compensation payments on behalf of Consultant or Consultant's employees or contract personnel. Consultant will not be entitled to these benefits in connection with work performed under this Agreement. 
  
 9. Insurance 
  
 Good Hemp shall not provide any insurance coverage of any kind for Consultant or Consultant's employees or contract personnel. 
  
 10. Term of Agreement 
  
 This agreement will become effective when executed by both parties. 
  
 	 
	3
	

	 

  
 11. Terminating the Agreement 
  
 Either party may terminate this Agreement at any time, given 30-day notice, or upon completion of the duties as noted above. Good Hemp will pay Consultant for services performed up to termination date. Good Hemp will be billed by Consultant for any transition services required subsequent to termination. Transition fees will be billed at $150 per hour and will be billed and paid before such service is performed based on estimated hours to be incurred. 
  
 12. Modifying the Agreement 
  
 This Agreement may be modified only by a writing signed by both parties. 
  
 13. Confidentiality 
  
 Consultant acknowledges that it will be necessary for Good Hemp to disclose certain confidential and proprietary information to Consultant in order for Consultant to perform duties under this Agreement. Consultant acknowledges that any disclosure to any third party or any misuse of this proprietary or confidential information would irreparably harm Good Hemp. Accordingly, Consultant will not disclose or use, either during or after the term of this Agreement, any proprietary or confidential information of Good Hemp without Good Hemp's prior written permission except to the extent necessary to perform services on Good Hemp's behalf. Proprietary or confidential information includes: 
  
 	  
	 ·
	The written, printed, graphic, or electronically recorded materials furnished by Good Hemp for Consultant to use;
	  
	 ·
	Any written or tangible information stamped "confidential," "proprietary," or with a similar legend or any information that Good Hemp makes reasonable efforts to maintain the secrecy of;
	  
	 ·
	Business or marketing plans or strategies, customer lists, operating procedures, trade secrets, design formulas, know-how and processes, computer programs and inventories, discoveries and improvements of any kind, sales projections, pricing information;
	  
	 ·
	Information belonging to customers and suppliers of Good Hemp about whom Consultant gained knowledge as a result of Consultant's services to Good Hemp; and,
	  
	 ·
	Consultant shall not be restricted in using any material that is publicly available, already in Consultant’s possession prior to commencement of Consultant’s provision of services to Good Hemp, known to Consultant without restriction, or rightfully obtained by Consultant from sources other than Good Hemp.
	  
	 ·
	Upon termination of Consultant’s services to Good Hemp, or at Good Hemp's request, Consultant shall deliver to Good Hemp all materials in Consultant's possession relating to Good Hemp's business;
	  
	 ·
	Consultant acknowledges that any breach or threatened breach of this clause will result in irreparable harm to Good Hemp for which damages would be an inadequate remedy. Therefore, Good Hemp shall be entitled to equitable relief, including an injunction, in the event of such breach or threatened breach of this clause. Such equitable relief shall be in addition to Good Hemp's rights and remedies otherwise available at law.

   
 	 
	4
	

	 

  
 14. Resolving Disputes 
  
 If a dispute arises among the parties hereto, the parties agree to first try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. Mediator will be mutually agreed to by both parties and will be located in West Jordan, Utah. The costs of any mediation proceeding shall be shared equally by all parties. 
  
 Client and accountant both agree that any dispute over fees or work product charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE OVER FEES CHARGED OR WORK PERFORMED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION. 
  
 15. Venue and Applicable Law 
  
 If any civil action, complaint or claim is brought under the terms of this Agreement, or between the parties, such action must be filed in the Superior Court for the County of Salt Lake, Utah, and this Agreement will be governed by the Laws of the State of Utah. 
  
 16. Attorney’s Fees
  
 If any legal dispute arises under the terms of this Agreement, or between the Parties based on their contractual arrangement, the prevailing party in any legal dispute shall be entitled to recover reasonable attorney’s fees and costs incurred in the dispute, in addition to any damages awarded. 
  
 17. Indemnification 
  
 To the extent Consultant is acting on behalf of the Company and at the direction of management, the Company agrees to indemnify us for any damages that may result from our good faith actions. 
  
 18. Notices 
  
 All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 
  
 	  
	 ·
	When delivered personally to the recipient's address as stated on this Agreement
	  
	 ·
	Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated on this Agreement, or
	  
	 ·
	When sent by fax or electronic mail, such notice is effective upon receipt provided that a duplicate copy of the notice is promptly given by first class mail, or the recipient delivers a written confirmation of receipt.

   
 	 
	5
	

	 

  
 19. No Partnership 
  
 This Agreement does not create a partnership relationship. Consultant does not have authority to enter into contracts on Good Hemp's behalf, unless such authority is expressly provided by the Good Hemp. 
  
 20. Assignment 
  
 Consultant may not assign or subcontract any rights or delegate any of its duties under this Agreement without Good Hemp's prior written approval. 
  
 Execution
  
 IN WITNESS WHEROF, the parties hereto have executed this Agreement as of the day and year first above written.
  
 	 Good Hemp, Inc. 
	 	Sperry Advisory Services, LLC	 
	  
	  
	  
	  
	  
	  

	 By:
	/s/ William Alessi 	 	By:	/s/ Rodney Sperry	 
	 Title:
	CEO 	 	Title:	Member	 
	 Date:
	06/16/2021 	 	Date:	June 16, 2021	 

  
 	 
	6

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