{"id":40197,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/notice-of-performance-unit-grant-first-american-financial-corp.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"notice-of-performance-unit-grant-first-american-financial-corp","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/notice-of-performance-unit-grant-first-american-financial-corp.html","title":{"rendered":"Notice of Performance Unit Grant – First American Financial Corp"},"content":{"rendered":"

Notice of Performance Unit Grant <\/strong><\/p>\n<\/p>\n\n\n\n
\n

Participant: <\/strong><\/p>\n<\/td>\n

\n

[]<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Company: <\/strong><\/p>\n<\/td>\n

\n

First American Financial Corporation (the “Company”)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Notice: <\/strong><\/p>\n<\/td>\n

\n

You have been granted a Performance Unit in accordance with the terms of the
\nPlan and the Performance Unit Award Agreement attached hereto.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Type of Award: <\/strong><\/p>\n<\/td>\n

\n

Performance Units<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Plan: <\/strong><\/p>\n<\/td>\n

\n

First American Financial Corporation 2010 Incentive Compensation Plan<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Grant: <\/strong><\/p>\n<\/td>\n

\n

Date of Grant: March 21, 2011<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

Number of Performance Units: []<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

Each Performance Unit has the value of $1<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Performance <\/strong><\/p>\n\n\n\n
\n

Period: <\/strong><\/p>\n<\/td>\n

\n

Subject to the terms of the Plan and this Agreement, the Performance Period
\napplicable to the Performance Units shall be the calendar year 2011.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Performance <\/strong><\/p>\n\n\n\n
\n

Condition: <\/strong><\/p>\n<\/td>\n

\n

Your right to the receipt of cash for your Performance Units is conditioned
\non the Company153s achievement of net income (as defined in accordance with
\ngenerally acceptable accounting principles) for 2011 of $25 million or more,
\ndetermined without regard to (a) asset write-downs, (b) litigation or claim
\njudgments or settlements, (c) the effect of changes in tax laws, accounting
\nprinciples, or other laws or provisions affecting reported results, (d) any
\nreorganization and restructuring programs, (e) extraordinary, unusual and\/or
\nnonrecurring items of gain or loss, and (f) foreign exchange gains and losses.
\nThis condition is referred to as the “Performance Target.” Within a reasonable
\ntime after the determination of whether the Performance Target has been met, the
\nCommittee shall determine the final amount of Performance Units to which you
\nshall be entitled, provided that the total amount thereof shall not exceed the
\namount set forth above. The Committee, in its sole and unfettered discretion,
\nmay decrease the number of Performance Units awarded to you at any time prior to
\nthe payment thereon.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

Rejection: <\/strong><\/p>\n<\/td>\n

\n

If you wish to accept this Performance Unit Award, please return this
\nAgreement, executed by you on the last page of this Agreement, at any time
\nwithin forty-five (45) days after the Date of Grant, to First American Financial
\nCorporation, 1 First American Way, Santa Ana, California 92707, Attn: Matthew
\nMacDougall. Do not return a signed copy of this Agreement if you wish to reject
\nthis Performance Unit Award. If you do not return a signed copy of this
\nAgreement within forty-five (45) days after the Date of Grant, you will have
\nrejected this Performance Unit Award.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

Performance Unit Award Agreement <\/strong><\/p>\n

This Performance Unit Award Agreement (this “Agreement”), dated as of the
\ndate of the Notice of Performance Unit Grant attached hereto (the “Grant
\nNotice”), is made between First American Financial Corporation (the “Company”)
\nand the Participant set forth in the Grant Notice. The Grant Notice is included
\nand made a part of this Agreement.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

1.<\/p>\n<\/td>\n

Definitions<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Capitalized terms used but not defined in this Agreement (including the Grant
\nNotice) have the meaning set forth in the First American Financial Corporation
\n2010 Incentive Compensation Plan.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

2.<\/p>\n<\/td>\n

Grant of the Performance Units<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Subject to the provisions of this Agreement and the provisions of the Plan,
\nthe Company hereby grants to the Participant, pursuant to the Plan, the
\ncontingent right to receive in cash an amount equal in value to the performance
\nunits set forth in the Grant Notice, as such number of performance units may be
\nreduced by the Committee in its sole and unfettered discretion (the “Performance
\nUnits”). Each Performance Unit has a value of $1.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

3.<\/p>\n<\/td>\n

Vesting and Payment of Performance Units<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

After the Performance Period (as specified in the Notice of Grant) has ended
\nand provided that the Committee has determined that the Performance Target (as
\ndefined in the Notice of Grant) has been achieved, the Participant shall be
\nentitled to receive, and the Company shall pay to the Participant, the cash
\nvalue of the Performance Units; provided<\/u>, however<\/u>, that prior to
\npaying to the Participant such cash value, the Committee may, in its sole and
\nunfettered discretion, decrease the amount of Performance Units awarded to the
\nParticipant. If the Performance Target is not met, the Participant shall forfeit
\nthe Performance Units and the Participant shall not be entitled to any cash
\npayment in connection therewith.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

4.<\/p>\n<\/td>\n

No Right to Continued Employment<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

None of the Performance Units nor any terms contained in this Agreement shall
\nconfer upon the Participant any express or implied right to be retained in the
\nemploy of the Company or any Subsidiary or Affiliate for any period, nor
\nrestrict in any way the right of the Company or any Subsidiary or any Affiliate,
\nwhich right is hereby expressly reserved, to terminate the Participant153s
\nemployment at any time for any reason. For the avoidance of doubt, this
\nSection 4 is not intended to amend or modify any other agreement, including any
\nemployment agreement, that may be in existence between the Participant and the
\nCompany or any Subsidiary or Affiliate.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

5.<\/p>\n<\/td>\n

The Plan<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In consideration for this grant, the Participant agrees to comply with the
\nterms of the Plan and this Agreement. This Agreement is subject to all the
\nterms, provisions and conditions of the Plan, which are incorporated herein by
\nreference, and to such regulations as may from time to time be adopted by the
\nCommittee. In the event of any conflict between the<\/p>\n<\/p>\n

– 2 –<\/p>\n<\/p>\n

\n

provisions of the Plan and this Agreement, the provisions of the Plan shall
\ncontrol, and this Agreement shall be deemed to be modified accordingly. The Plan
\nand the prospectus describing the Plan can be found on the Company153s HR
\nintranet. A paper copy of the Plan and the prospectus shall be provided to the
\nParticipant upon the Participant153s written request to the Company at First
\nAmerican Financial Corporation, 1 First American Way, Santa Ana, California
\n92707, Attention: Incentive Compensation Plan Administrator, or such other
\naddress as the Company may from time to time specify.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

6.<\/p>\n<\/td>\n

Notices<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

All notices by the Participant shall be addressed to First American Financial
\nCorporation, 1 First American Way, Santa Ana, California 92707, Attention:
\nIncentive Compensation Plan Administrator, or such other address as the Company
\nmay from time to time specify. All notices to the Participant shall be addressed
\nto the Participant at the Participant153s address in the Company153s records.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

7.<\/p>\n<\/td>\n

Severability<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In the event any provision of this Agreement shall be held illegal or invalid
\nfor any reason, the illegality or invalidity shall not affect the remaining
\nparts of this Agreement, and this Agreement shall be construed and enforced as
\nif the illegal or invalid provision had not been included.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

8.<\/p>\n<\/td>\n

Other Plans<\/u><\/p>\n

.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Participant acknowledges that any income derived from the Performance
\nUnits shall not affect the Participant153s participation in, or benefits under,
\nany other benefit plan or other contract or arrangement maintained by the
\nCompany or any Subsidiary or Affiliate. For purposes of the Company153s Executive
\nSupplemental Benefit Plan and Management Supplemental Benefit Plan, as the same
\nmay be amended from time to time, cash ultimately paid for any Performance Units
\nshall be deemed to be “Covered Compensation”.<\/p>\n

9. Assignment<\/u>. Participant may not transfer or assign this Agreement
\nor any part thereof. The Company reserves the right to transfer or assign this
\nAgreement to any of its Affiliates.<\/p>\n

[SIGNATURES FOLLOW]<\/p>\n<\/p>\n

– 3 –<\/p>\n<\/p>\n

\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

FIRST AMERICAN FINANCIAL CORPORATION<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/tr>\n
\n

By:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Name:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

Title:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Date:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Acknowledged and agreed as of the Date of Grant:<\/p>\n<\/p>\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Signature:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Printed Name:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
\n

Date:<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

– 4 –<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7529],"corporate_contracts_industries":[9447],"corporate_contracts_types":[9540,9539],"class_list":["post-40197","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-first-american-financial-corp","corporate_contracts_industries-insurance__surety","corporate_contracts_types-compensation__benefits","corporate_contracts_types-compensation"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40197"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40197"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40197"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}