Document:

Document

Exhibit 10.23

STATES TITLE HOLDING, INC.
2019 EQUITY INCENTIVE PLAN
Adopted by the Board of Directors: January 7, 2019
Approved by the Stockholders: April 15, 2019
Last Amended by the Board of Directors: December 5, 2019
Last Amendment approved by the Stockholders: December 5, 2019
Termination Date: January 6, 2029
1.Purposes of the Plan.  The purposes of this Plan are:
•to attract and retain the best available personnel for positions of substantial responsibility,
•to provide additional incentive to Employees, Directors and Consultants, and 
•to promote the success of the Company’s business.
The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock Units.
2.Definitions.  As used herein, the following definitions will apply:
(a)“Administrator” means the Board or any of its Committees as may be appointed by the Board to administer the Plan, in accordance with Section 4 of the Plan.
(b)“Affiliate” means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control with, the Company
(c)“Applicable Laws” means the legal and regulatory requirements relating to the administration of equity-based awards, including but not limited to, under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.
(d)“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, or Restricted Stock Units.
(e)“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  The Award Agreement is subject to the terms and conditions of the Plan.
(f)“Board” means the Board of Directors of the Company.
(g)“Change in Control” means the occurrence of any of the following events:
(i)Change in Ownership of the Company.  A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock 
    

held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control; provided, further, that any change in the ownership of the stock of the Company as a result of a private financing of the Company that is approved by the Board also will not be considered a Change in Control.  Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event shall not be considered a Change in Control under this subsection (i).  For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or 
(ii)Change in Effective Control of the Company.  If the Company has a class of securities registered pursuant to Section 12 of the Exchange Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or
(iii)Change in Ownership of a Substantial Portion of the Company’s Assets.  A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3).  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
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For purposes of this Section 2(f), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.
Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
(h)“Code” means the Internal Revenue Code of 1986, as amended.  Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.
(i)“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or by the compensation committee of the Board,  in accordance with Section 4 hereof.
(j)“Common Stock” means the common stock of the Company, par value $0.0001 per share.
(k)“Company” means States Title Holding, Inc., a Delaware corporation, and any successor thereto.
(l)“Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital-raising transaction, and (ii) do not directly promote or maintain a market for the Company’s securities, in each case, within the meaning of Form S-8 promulgated under the Securities Act, and provided further, that a Consultant will include only those persons to whom the issuance of Shares may be registered under Form S-8 promulgated under the Securities Act.
(m)“Detrimental Activity” means any of the following, in each case as determined by the Administrator in its sole discretion: (i) the Participant’s unauthorized disclosure of any confidential or proprietary information of the Company or any of its Affiliates; (ii) any activity that would be grounds to terminate the Participant’s employment or service with the Company or any of its subsidiaries for Cause; (iii) the Participant’s breach of any non-competition, non-solicitation, non-disparagement or other agreement containing restrictive covenants, with the Company or its Affiliates; (iv) the Participant’s fraud or conduct contributing to any financial restatements or irregularities; or (v) any other conduct, act or omission by the Participant that is determined by the Administrator in its sole discretion to be materially injurious, detrimental or prejudicial to any interest of the Company. 
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(n)“Director” means a member of the Board.
(o)“Disability” means total and permanent disability as defined in Code Section 22(e)(3), provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.  
(p)“Employee” means any person, including an officer or Director, employed by the Company or any Affiliate; provided, that, for purposes of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.
(q)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(r)“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have higher or lower exercise prices and different terms), Awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is reduced or increased.  The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.
(s)“Fair Market Value” means, as of any given date, the value of Common Stock determined as follows:
(i)If there is a public market for the shares of Common Stock on such date, , its Fair Market Value will be the closing sales price for such shares as reported on such date on the principal national securities exchange on which such shares are listed (or, if no closing sales price was reported on that date, as applicable, on the immediately preceding trading date on which a closing sales price was reported); or
(ii)In the absence of established public market for the Common Stock on such date, the Fair Market Value will be determined in good faith by the Administrator, after taking into consideration all factors which it deems appropriate, including, without limitation, Sections 409A and 422 of the Code.
(t)“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Code Section 422 and the regulations promulgated thereunder, to the extent such Option so qualifies.
(u)“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
(v)“Option” means a stock option granted pursuant to the Plan.
(w)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).
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(x)“Participant” means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.
(y)“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture.  Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.
(z)“Plan” means this States Title Holding, Inc. 2019 Equity Incentive Plan.
(aa)“Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8 of the Plan, or issued pursuant to the early exercise of an Option.
(bb)“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9.  Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.
(cc)“Securities Act” means the Securities Act of 1933, as amended. 
(dd)“Service Provider” means an Employee, Director or Consultant.
(ee)“Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.
(ff)“Shareholders’ Agreement” means the Shareholders’ Agreement by and among the Company and its shareholders, if any, as in effect from time to time.
(gg)“Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 7 is designated as a Stock Appreciation Right.
(hh)“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f).
3.Stock Subject to the Plan.  
(a)Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be subject to Awards and sold under the Plan is 6,609,635 Shares. The Shares may be authorized but unissued, or reacquired Common Stock.
(b)Lapsed Awards.  If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock or Restricted Stock Units, is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  With respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right 
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will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Plan (unless the Plan has terminated).  Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock or Restricted Stock Units are repurchased by the Company or are forfeited to the Company due to the failure to vest, such Shares will become available for future grant under the Plan.  Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the Plan.  To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.  Notwithstanding the foregoing and, subject to adjustment as provided in Section 13, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance under the Plan pursuant to Section 3(b).  
(c)Share Reserve.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.
(d)Assumed Awards.  If the Administrator authorizes the assumption of awards pursuant to Section 4(b)(xiii), the assumption will reduce the number of shares available for issuance under the Plan in the same manner as if the assumed awards had been granted under the Plan.
4.Administration of the Plan. 
(a)Procedure.
(i)Multiple Administrative Bodies.  Different Committees may administer the Plan with respect to different groups of Service Providers, as determined in each case by the Board.
(ii)Other Administration.  Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which Committee will be constituted to satisfy Applicable Laws. 
(b)Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:
(i)to determine the Fair Market Value;
(ii)to select the Service Providers to whom Awards may be granted hereunder;
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(iii)to determine the number of Shares to be covered by each Award granted hereunder;
(iv)to approve forms of Award Agreements for use under the Plan;
(v)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;
(vi)to institute and determine the terms and conditions of an Exchange Program;
(vii)to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 
(viii)to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;
(ix)to modify or amend each Award (subject to Section 18(c) of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option (subject to Section 6(d));
(x)to modify or amend each Award (without limitation by Section 18(c) of the Plan) to modify any conditions on continued service thereunder (such as the rate of vesting) to reflect changes in the Participant’s rate of service (such as a change from full-time to part-time or a change to the rate of part-time service), in the sole discretion of the Administrator;
(xi)to allow Participants to satisfy withholding tax obligations in a manner prescribed in Section 14;
(xii)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;
(xiii)to assume outstanding awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (i) granting an Award under the Plan in replacement of or in substitution for the award assumed by the Company, or (ii) treating the assumed award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted under the Plan; in each case to the extent that the holder of the assumed award would have been eligible to be granted an Award hereunder if the other entity had applied the rules of this Plan to such grant;
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(xiv)to grant Awards under the Plan in settlement of or in substitution for outstanding awards or obligations to grant future awards in connection with the Company or an Affiliate acquiring another entity, an interest in another entity, or an additional interest in an Affiliate whether by merger, stock purchase, asset purchase or other form of transaction;
(xv)to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant under an Award; and
(xvi)to make all other determinations deemed necessary or advisable for administering the Plan.
(c)Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards and will be given the maximum deference permitted by Applicable Laws.
(d)Delegation.  The Committee appointed as Administrator, or if no Committee has been appointed, the Board, may delegate administration of the Plan to a committee or committees of one or more members of the Board, and the term “Administrator” shall apply to any person or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.
(e)Indemnification.  In addition to such other rights of indemnification as they may have as Directors or members of a Committee, and to the extent allowed by Applicable Laws, the Directors or members of a Committee appointed as Administrator shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Board or Committee or the members thereof may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts paid by the Board or Committee in settlement thereof (provided, however, that the settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Board or Committee in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that the Board or such Committee did not act in good faith and in a manner 
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which such person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided, however, that within 60 days after institution of any such action, suit or proceeding, the Board or such Committee shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.
5.Eligibility.  Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.
6.Stock Options.
(a)Grant of Options.  Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Options in such amounts as the Administrator, in its sole discretion, will determine.
(b)Option Agreement.  Each Award of an Option will be evidenced by an Award Agreement that will specify the exercise price, the term of the Option, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
(c)Limitations.  Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  Notwithstanding such designation, however, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options.  For purposes of this Section 6(c), Incentive Stock Options will be taken into account in the order in which they were granted, the Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted, and calculation will be performed in accordance with Code Section 422 and Treasury Regulations promulgated thereunder.
(d)Term of Option.  The term of each Option will be stated in the Award Agreement; provided, however, that the term will be no more than ten (10) years from the date of grant thereof.  In the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement.
(e)Option Exercise Price and Consideration.
(i)Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option will be determined by the Administrator, but will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.  In addition, in the case of an Incentive Stock Option granted to an Employee who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one 
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hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.  Notwithstanding the foregoing provisions of this Section 6(e)(i), Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Code Section 424(a). 
(ii)Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.
(iii)Form of Consideration.  The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant.  Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided further that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise, (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws, or (8) any combination of the foregoing methods of payment.  In making its determination as to the type of consideration to accept, the Administrator will consider if acceptance of such consideration may be reasonably expected to benefit the Company.
(f)Exercise of Option.
(i)Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement.  An Option may not be exercised for a fraction of a Share.
An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable tax withholding).  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan.  Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.  The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan.
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Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.
(ii)Termination of Relationship as a Service Provider.  If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within thirty (30) days of termination, or such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on the date of termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iii)Disability of Participant.  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within six (6) months of termination, or such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent the Option is vested on the date of termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iv)Death of Participant.  If a Participant dies while a Service Provider, the Option may be exercised within six (6) months following the Participant’s death, or within such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on the date of death, by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to the Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.  Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(g)Detrimental Activity. If provided by the Administrator in the Award Agreement, all outstanding Options (whether or not vested) granted hereunder shall immediately terminate and cease to be exercisable on the date on which an Optionholder engages in Detrimental Activity.
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7.Stock Appreciation Rights.  
(a)Grant of Stock Appreciation Rights.  Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.  
(b)Number of Shares.  The Administrator will have complete discretion to determine the number of Shares subject to any Award of Stock Appreciation Rights.
(c)Exercise Price and Other Terms.  The per Share exercise price for the Shares that will determine the amount of the payment to be received upon exercise of a Stock Appreciation Right as set forth in Section 7(f) will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.  Otherwise, the Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan.
(d)Stock Appreciation Right Agreement.  Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
(e)Expiration of Stock Appreciation Rights.  A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement.  Notwithstanding the foregoing, the rules of Section 6(d) relating to the maximum term and Section 6(f) relating to exercise also will apply to Stock Appreciation Rights.
(f)Payment of Stock Appreciation Right Amount.  Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:
(i)The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times
(ii)The number of Shares with respect to which the Stock Appreciation Right is exercised.
At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.
8.Restricted Stock.
(a)Grant of Restricted Stock.  Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.
(b)Restricted Stock Agreement.  Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of 
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Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.
(c)Transferability.  Except as provided in this Section 8 or as the Administrator determines, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.
(d)Other Restrictions.  The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.
(e)Removal of Restrictions.  Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine.  The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.  
(f)Voting Rights.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.
(g)Dividends and Other Distributions.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise.  If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.
(h)Return of Restricted Stock to Company.  On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.
9.Restricted Stock Units.
(a)Grant.  Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator.  After the Administrator determines that it will grant Restricted Stock Units, it will advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.
(b)Vesting Criteria and Other Terms.  The Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.  The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis determined by the Administrator in its discretion.
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(c)Earning Restricted Stock Units.  Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as determined by the Administrator.  Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.
(d)Form and Timing of Payment.  Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement.  The Administrator, in its sole discretion, may settle earned Restricted Stock Units in cash, Shares, or a combination of both.
(e)Cancellation.  On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.
10.Compliance With Code Section 409A.  Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Code Section 409A, except as otherwise determined in the sole discretion of the Administrator.  The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator.  To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A.
11.Leaves of Absence/Transfer Between Locations.  Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence.  A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.  For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.
12.Limited Transferability of Awards.  
(a)Unless determined otherwise by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant.  If the Administrator makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act.
(b)Further, until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, or after the Administrator determines that it is, will, 
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or may no longer be relying upon the exemption from registration under the Exchange Act as set forth in Rule 12h-1(f) promulgated under the Exchange Act (the “Rule 12h-1(f) Exemption”), an Option, or prior to exercise, the Shares subject to the Option, may not be pledged, hypothecated or otherwise transferred or disposed of, in any manner, including by entering into any short position, any “put equivalent position” or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Exchange Act, respectively), other than transfers to (i) persons who are “family members” (as defined in Rule 701(c)(3) of the Securities Act) through gifts or domestic relations orders, or (ii) to an executor or guardian of the Participant upon the death or disability of the Participant, in each case, to the extent required for continued reliance on the Rule 12h-1(f) Exemption.  Notwithstanding the foregoing sentence, the Administrator, in its sole discretion, may determine to permit transfers to the Company or in connection with a Change in Control or other acquisition transactions involving the Company to the extent permitted by Rule 12h-1(f) or, if the Company is not relying on the Rule 12h-1(f) Exemption, to the extent permitted by the Plan.  
13.Adjustments; Dissolution or Liquidation; Merger or Change in Control.
(a)Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of shares of stock that may be delivered under the Plan and/or the number, class, and price of shares of stock covered by each outstanding Award; provided, however, that the Administrator will make such adjustments to an Award required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Award.
(b)Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.
(c)Merger or Change in Control.  In the event of a merger of the Company with or into another corporation or other entity or a Change in Control, each outstanding Award will be treated as the Administrator determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation, that (i) Awards will be assumed, or substantially equivalent Awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon or 
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immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing.  In taking any of the actions permitted under this subsection 13(c), the Administrator will not be obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type, similarly.
In the event that the successor corporation does not assume or substitute for the Award (or portion thereof), the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met.  In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period.
For the purposes of this subsection 13(c), an Award will be considered assumed if, following the merger or Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control.
Notwithstanding anything in this Section 13(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.  
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Notwithstanding anything in this Section 13(c) to the contrary, if a payment under an Award Agreement is subject to Code Section 409A and if the change in control definition contained in the Award Agreement does not comply with the definition of “change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment would be permissible under Code Section 409A without triggering any penalties applicable under Code Section 409A.
14.Tax Withholding.
(a)Withholding Requirements.  Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).  
(b)Withholding Arrangements.  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by such methods as the Administrator shall determine, including, without limitation, (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount if such amount would not have adverse accounting consequences, as the Administrator determines in its sole discretion, (iii) delivering to the Company already-owned Shares having a fair market value equal to the statutory amount required to be withheld or such greater amount, in each case, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, (iv) selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld, or (v) any combination of the foregoing methods of payment.  The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the amount of tax to be withheld is to be determined.  The fair market value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.
15.General Terms.
(a)No Effect on Employment or Service.  Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.
(b)Shareholder Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a 
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holder with respect to, any shares of Common Stock subject to an Award unless and until such Participant has satisfied all requirements for exercise or settlement of the Award pursuant to its terms (including any obligation to execute the Shareholders’ Agreement) and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common Stock certificate is issued, except as provided in Section 13(a).
(c)Beneficiary Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of such Participant’s death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime.
(d)Clawback; Forfeiture. Notwithstanding anything to the contrary contained herein, the Administrator may, in its sole discretion, provide in an Award Agreement or otherwise that the Administrator may cancel such Award if the Participant has engaged in or engages in any Detrimental Activity. The Administrator may, in its sole discretion, also provide in an Award Agreement or otherwise that (i) if the Participant has engaged in or engages in Detrimental Activity, the Participant will forfeit any gain realized on the vesting, exercise or settlement of any Award, and must repay the gain to the Company and (ii) if the Participant receives any amount in excess of what the Participant should have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant shall be required to repay any such excess amount to the Company. Without limiting the foregoing, all Awards shall be subject to reduction, cancellation, forfeiture or recoupment (i) as provided in any applicable policy maintained by the Company from time to time, or (ii) to the extent necessary to comply with Applicable Laws.
(e)Shareholders’ Agreement. In connection with the grant, vesting and/or exercise of any Award under the Plan, the Administrator may require a Participant to execute and become a party to the Shareholders’ Agreement as a condition of such grant, vesting and/or exercise. The Shareholders’ Agreement may contain restrictions on the transferability of shares of Common Stock acquired under the Plan (such as a right of first refusal or a prohibition on transfer) and such shares may be subject to call rights and drag-along rights of the Company and certain of its investors. The Company shall also have any repurchase rights set forth in the Shareholders’ Agreement or any Award Agreement.
(f)Non-Uniform Treatment. The Administrator’s determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Administrator shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.
(g)Unfunded Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan..
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16.Date of Grant.  The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator.  Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.
17.Term of Plan.  Subject to Section 22 of the Plan, the Plan will become effective upon its adoption by the Board.  Unless sooner terminated under Section 18, it will continue in effect for a term of ten (10) years from the later of (a) the effective date of the Plan, or (b) the earlier of the most recent Board or stockholder approval of an increase in the number of Shares reserved for issuance under the Plan.
18.Amendment and Termination of the Plan.
(a)Amendment and Termination.  The Board may at any time amend, alter, suspend or terminate the Plan.  
(b)Stockholder Approval.  The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
(c)Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.  Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.
19.Conditions Upon Issuance of Shares.
(a)Legal Compliance.  Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.
(b)Investment Representations.  As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.
20.Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.
21.Stockholder Approval.  The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board.  Such 
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stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
22.Information to Participants.  If and as required (i) pursuant to Rule 701 of the Securities Act, if the Company is relying on the exemption from registration provided pursuant to Rule 701 of the Securities Act with respect to the applicable Award, and/or (ii) pursuant to Rule 12h-1(f) of the Exchange Act, to the extent the Company is relying on the Rule 12h-1(f) Exemption, then during the period of reliance on the applicable exemption and in each case of (i) and (ii) until such time as the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall provide to each Participant the information described in paragraphs (e)(3), (4), and (5) of Rule 701 under the Securities Act not less frequently than every six (6) months with the financial statements being not more than 180 days old and with such information provided either by physical or electronic delivery to the Participants or by written notice to the Participants of the availability of the information on an Internet site that may be password-protected and of any password needed to access the information. The Company may request that Participants agree to keep the information to be provided pursuant to this section confidential. If a Participant does not agree to keep the information to be provided pursuant to this section confidential, then the Company will not be required to provide the information unless otherwise required pursuant to Rule 12h-1(f)(1) under the Exchange Act (if the Company is relying on the Rule 12h-1(f) Exemption) or Rule 701 of the Securities Act (if the Company is relying on the exemption pursuant to Rule 701 of the Securities Act).
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Exhibit 10.26
						
	
	North American Title Insurance Company
Underwriting Agreement

															
					

This Amended and Restated Underwriting Agreement (this “Agreement”) is made and entered into on      8/7/2020        (the “Effective Date”), by and between North American Title Insurance Company, a California corporation, hereinafter referred to as “North American” and CalAtlantic Title, Inc., a California corporation (f/k/a North American Title Company, Inc.), CalAtlantic Title, LLC, a Utah limited liability company (f/k/a North American Title LLC), CalAtlantic National Title Solutions, LLC, a Delaware limited liability company (f/k/a North American National Title Solutions, LLC), CalAtlantic National Title Solutions, LLC, a Maryland limited liability company (f/k/a North American National Title Solutions, LLC), CalAtlantic Title Agency, LLC, a North Carolina limited liability company (f/k/a North American Title Agency, LLC), CalAtlantic Title, Inc., a Maryland corporation and CalAtlantic Title of Maryland, Inc., a Maryland corporation, hereinafter referred to as “Title Agency” and/or collectively as “CalAtlantic Entities”. This Agreement supersedes and replaces the Underwriting Agreements and Issuing Agency Contracts between North American and Title Agency, together with any amendments thereto, as provided on the attached Exhibits to this Agreement. 
NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, North American and Title Agency hereby agree as follows: 
1.Subject to the provisions of this section and of the Agreement, North American hereby appoints Title Agency as a non-exclusive policy issuing agent of North American to obtain orders for title insurance, examine the title to the real property to be insured, and to issue title insurance commitments, policies, endorsements and other title assurances (“Title Policy” or “Title Policies”) approved by North American and by all required regulatory agencies, now in existence or hereafter developed, in the geographic areas listed in Exhibits attached to this Agreement. During the term of this Agreement, Title Agency shall have the right to issue Title Policies of any other title insurance company in the referenced geographic areas. North American shall have the right to appoint other policy issuing agents in the same geographical areas. The Agreement shall not be effective until the Title Agency obtains all necessary licenses to do business and to issue title insurance in the geographic areas described in the attached Exhibits. The Agreement shall automatically terminate as of the date that Title Agency fails to keep its licenses to do business or to sell title insurance in full force and effect. 
2.The agreement of North American in Paragraph 1 above is subject to the following conditions: 
a.That prior to the issuance of a policy insuring any title, Title Agency will have made an examination of the title, including an examination of all pertinent records of the county in which the land is located and of any other public agency or special taxing district which might affect that title, in accordance with applicable state law and shall have prepared a written report showing the correct condition of the title and appropriate exceptions to which it is subject.
b.That prior to the issuance of any policy which will include coverage as to matters affecting real property which cannot be ascertained by the above-referenced records, Title Agency agrees to make an examination of the property, unless waived or modified by prior agreement with North American, and where necessary require a survey prior to issuance of a policy.
c.That at the time North American is requested to issue a policy, Title Agency is not in default in the performance of any of its obligations and agreements herein contained. 
d.That no single policy carrying a liability in excess of Five Million Dollars ($5,000,000.00) (the “Coverage Limit”), shall be issued without the prior written approval of an authorized officer of North American. North American may increase or decrease the Coverage Limits from time to time or at any time in its sole discretion by written notice to Title Agency which written notice(s) issued by North American shall be appended hereto and become a part of this Agreement. 
e.That Title Agency agrees to exercise the highest degree of care in examination of documents pertaining to the issuance of title policies.
f.That Title Agency will at all times maintain insurance and/or bonding as may be required by the regulations or laws of the geographic areas where Title Agency is appointed to do business on behalf of North American. 
Page 1 of 13

g.That Title Agency will maintain all of its accounts and financial transactions in accordance with generally accepted accounting procedures and provide financial statements annually prepared by a qualified accountant. North American, upon stating specific reasons and giving reasonable notice in writing, may at all reasonable times at its own cost examine the books, accounts, records, documents and policies of Title Agency relating to this Agreement. Title Agency shall also permit any regulatory agency having jurisdiction over North American to examine the books, accounts, records, documents and policies of Title Agency relating to this Agreement. All books, records, files, documents and policies established and maintained by Title Agency by reason of its performance under this Agreement, which absent this Agreement would have been held by North American, shall be deemed the property of North American. All such books, records, files, documents and policies shall be promptly transferred to North American by Title Agency upon termination of this Agreement at the expense of North American.
h.That North American shall make available a schedule of fees and Title Agency shall charge for policies issued in accordance with the schedule of fees.
i.Title Agency shall prepare and file a report with North American on or before the 25th day of each calendar month showing all title insurance policies issued during the preceding calendar month, and shall remit to the North American within forty-five (45) days thereafter that percentage of the total amount of fees for all such issued policies as set forth in the Exhibits attached to this Agreement. Unless otherwise stated on the attached Exhibits to this Agreement, for each Closing Protection Letter issued by Title Agency, Title Agency shall remit 100% percent of the premium to North American.
3.Title insurance policies shall be issued at the respective offices of Title Agency. Facsimile signatures of the President and Secretary shall be engraved upon such blank policy forms together with a facsimile corporate seal. The policies shall be deemed to be executed by North American when they have been duly filled out and delivered to the insured. Forms of title insurance policies and endorsements will be furnished by North American and numbered consecutively for the purposes of policy reporting.
4.North American agrees that it will furnish without charge to and upon request of Title Agency, the opinion and advice of its Chief Underwriting Counsel and Regional Legal Counsel, and other qualified employees on questions of law and title practice which may arise in the examination of titles, the preparation of reports and preparation and issuance of policies.
5.Title Agency agrees to forward to North American, upon North American’s request, copies of any North American Title Insurance Company title policy(s) issued by Title Agency within 3 business days of request.
6.The parties agree that Title Agency and all of Title Agency’s principals (in their individual capacity) shall be liable to and indemnify North American for any loss or expense, including attorneys’ fees and costs of litigation, sustained or incurred by North American:
a.Arising from fraud, negligence or misconduct of Title Agency, or any of Title Agency’s, servant, employee or officers of Title Agency, whether or not such loss or expense shall result from a Title Policy issued by Title Agency;
b.For all escrow or trust funds, recording fees, state or local transfer or mortgage taxes, real estate taxes, North American’s share of premiums collected for Title Policies issued or to be issued, which are collected or received by Title Agency and which, for any reason, are not disbursed to the proper person(s), including North American.
c.Relating to any inquiry by or litigation commenced by any governmental agency regarding any claim that Title Agency violated any state or federal law or regulation regarding the charging of premiums for title insurance, or violation of the Federal Real Estate Settlement Procedures Act, or similar state law.
d.While Title Agency is not an agent of North American for the purpose of any closings Title Agency may perform, it is recognized that Title Agency may request North American to issue Closing Protection Letters (CPL) to lenders or purchasers of property to be insured by North American. In the event a claim is made under a CPL arising out of Title Agency’s performance of its closing business, Title Agency shall promptly reimburse North American for all loss and/or expense, including attorney’s fees, North American incurs as a result of said claim.
Page 2 of 13

e.The provisions in this section shall survive the termination of this Agreement.
7.North American and Title Agency shall cooperate in efforts to obtain recoupment after payment of loss. In the case of recoupment of a loss, more specifically, payments made under the provisions of Section 6.b. above, any amount(s) recouped shall be distributed between North American and Title Agency so as to preserve the division of loss responsibility established in Section 6.b. above.
In the process of responding to claims of loss, North American shall have the exclusive right to adjust, pay or compromise all claims and the sole discretion to commence, defend against or settle legal proceedings in connection therewith, unless said claims of loss are deemed to be the sole responsibility of the Title Agency under the provisions of Section 6.a. Title Agency shall not adjust any claims on North American’s behalf unless, in each instance, authorized in writing by North American.
If North American makes payments in connection with a loss for which Title Agency is wholly or partially responsible under this Agreement, Title Agency shall reimburse North American promptly upon receipt from North American of proof of payment and demand for reimbursement.
8.North American shall be responsible for filing a responsive pleading in any case in which North American and/or Title Agency is named defendant where such litigation is based upon a policy of title insurance that has been issued by Title Agency on behalf of North American and where Title Agency has given timely notice to North American of the commencement of litigation. North American shall conduct the defense of any litigation based on a title insurance policy unless the claim upon which litigation is based is the sole responsibility of agent, in which case Title Agency shall conduct the defense of such litigation. Both parties agree to keep the other advised of all steps taken in any litigation or other proceedings. Failure to give timely notice shall not affect the rights of the parties under this Agreement unless such failure prejudices the rights of the other party.
9.The respective obligations of the parties relating to liability for losses and defending, appearing in and paying the costs of litigation shall survive any termination of this Agreement. In the event of any litigation which might result in the assertion of any claim of loss under any policy issued hereunder, or in the event that North American is informed of any circumstances which might result in a claim of loss under any such policy, North American shall have the right to make an examination of the pertinent books, records and papers of Title Agency, as it may deem advisable or necessary, whether or not this Agreement has been otherwise terminated, and Title Agency agrees that the books, records and papers will be kept intact and reasonably available and will not be destroyed without the prior written approval of North American.
10.Unless sooner terminated pursuant to the provisions hereof, the term of this Agreement shall be for a one-year period commencing immediately upon the Effective Date (the “Term”). This Agreement shall automatically renew thereafter for successive one-year periods (each, a "Renewal Period") unless either party (i) notifies the other party within sixty (60) days prior to the expiration of the Term or of any Renewal Period of the intention not to renew or (ii) otherwise terminates this Agreement pursuant to the terms hereof. Notwithstanding the foregoing, this Agreement shall be reviewed in its entirety by the parties hereto from time to time, but no less frequently than once every three (3) years in order to determine the appropriateness of renegotiating the terms and provisions hereof. Upon termination of this Agreement, North American shall at the same time give notice of such termination, where required by law, to all applicable regulatory agencies.
11.If any clause, paragraph or part of this Agreement shall at any time be held illegal or unlawful by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect between North American and Title Agency.
12.North American and Title Agency are mindful of the complete faith and credit each must have for the other, and that close cooperation and unity of purpose must exist between North American and Title Agency. Therefore, in the best interests of both North American and Title Agency, the following terms of summary cancellation of this Agreement are set forth:
a.Fraud, insolvency, bankruptcy, cancellation of license or permit to do business, or the instigation of legal proceedings by any regulatory agency, which proceedings, if successful would lead to cancellation of permit or license to do business.
Page 3 of 13

b.Willful and material violation of any provision of this Agreement together with failure to cure thereof, following 10 days written notice to either party.
13.Any notice of summary cancellation shall be given in writing and shall be delivered by hand or mailed by registered or certified mail, return receipt requested, postage prepaid addressed as follows:
						
	If to North American, to:
	North American Title Insurance Company
760 NW 107 Ave., Suite 401
Miami, FL 33172
ATTENTION: Valerie Jahn-Grandin
[         ]

	If to Title Agency, to:
	CalAtlantic Title, Inc.
760 NW 107 Ave., Suite 400
Miami, FL 33172
ATTENTION: Corporate Counsel

In the event of a summary cancellation of this Agreement by either party, Title Agency shall cease issuing policies of title insurance or any other evidence of title bearing the name of North American, and shall forthwith turn over to North American all unused policies of title insurance, evidences of title, and other forms bearing the name of North American, which forms are furnished to Title Agency by North American. However, North American agrees to honor all validly issued commitments to insure delivered by Title Agency prior to the posting of a written notice of cancellation and to that end, Title Agency agrees that North American shall have an option to place its employee or employees in Title Agency’s place of business for the purpose of supervising all pending escrows in connection with which North American might be obligated to issue its policies of title insurance. Title Agency shall furnish all necessary secretarial help and equipment, as well as adequate work space as required by the employee or employees of North American. 
14.It is agreed between the parties hereto that the stipulations, conditions, covenants and agreements herein expressed represent the complete Agreement between the parties and any change, modification or discharge in whole or part, shall not be effective unless made in writing and signed by the parties hereto. 
15.This Agreement is not assignable by Title Agency or North American. 
16.This Agreement including the schedules, exhibits and agreements contemplated hereby contains the entire understanding of the parties hereto relating to the subject matter hereof and supersedes all prior and collateral agreements, understandings, statements and negotiations of the parties.
17.INDEMNIFICATION 
A.Indemnification of Title Agency. North American shall indemnify, defend and hold harmless Title Agency and its affiliates (excluding North American) as well as their respective directors, officers, agents, employees and shareholders from and against any and all claims, suits, hearings, actions, damages, liabilities, fines, penalties, costs, losses or expenses, including reasonable attorney’s fees, caused by or resulting from any intentional, willful acts or gross negligence involving a breach of this Agreement, misconduct, error, omission, or other unauthorized act by North American or by North American’s officers, directors, shareholders, employees, agents or representatives. 
B.Indemnification of North American. Title Agency shall indemnify, defend and hold harmless North American and its affiliates (excluding Title Agency) as well as their respective directors, officers, agents, employees and shareholders from and against any and all claims, suits, hearings, actions, damages, liabilities, fines, penalties, costs, losses or expenses, including reasonable attorney’s fees, caused by or resulting from any intentional, willful acts or gross negligence involving (1) the operation of the escrow, closing or settlement business of Title Agency or (2) any breach of this Agreement, misconduct, error, omission, or other unauthorized act by Title Agency or by Title Agency’s officers, directors, shareholders, employees, agents or representatives. 
C.Survival of Indemnification. The indemnification provided under this Section 17 shall survive the termination of this Agreement.
Page 4 of 13

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly and properly executed by their respective officers having full authority to do so, to be effective as of the Effective Date.
															
	CALATLANTIC TITLE, INC.,
a California corporation

		CALATLANTIC TITLE, LLC,
a Utah limited liability company

	By:	/s/ Cristina Pardo		By:	/s/ Cristina Pardo
		Cristina Pardo			Cristina Pardo
	Its:	Executive Vice President		Its:	Executive Vice President

															
	CALATLANTIC NATIONAL TITLE SOLUTIONS, LLC,
a Delaware limited liability company

		CALATLANTIC NATIONAL TITLE SOLUTIONS, LLC,
a Maryland limited liability company

	By:	/s/ John Shafer		By:	/s/ John Shafer
		John Shafer			John Shafer
	Its:	President		Its:	President

															
	CALATLANTIC TITLE AGENCY, LLC,
a North Carolina limited liability company

		CALATLANTIC TITLE, INC.,
a Maryland company

	By:	/s/ Cristina Pardo		By:	/s/ Cristina Pardo
		Cristina Pardo			Cristina Pardo
	Its:	Executive Vice President		Its:	President

						
	CALATLANTIC TITLE OF MARYLAND, INC.,
a Maryland company

	By:	/s/ Cristina Pardo
		Cristina Pardo
	Its:	Executive Vice President

						
	NORTH AMERICAN TITLE INSURANCE COMPANY

	By:	/s/ Emilio Fernandez
		Emilio Fernandez
	Its:	President

			
	NATIC AGENCY ADMIN ONLY
	
	System records updated on:
8/12/2020

	By:
/s/ Beatrix Ciprian

Page 5 of 13

						
	
	Exhibit No.1 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Superseded Underwriting Agreements and Issuing Agency Contracts
Page 6 of 13

						
	
	Exhibit No.2 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic Title, Inc., a Maryland corporation
Page 7 of 13

						
	
	Exhibit No.3 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic Title of Maryland, Inc., a Maryland corporation
Page 8 of 13

						
	
	Exhibit No.4 
to Amended and Restated Underwriting Agreement between North American Title Insurance Company and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic Title, Inc., a California corporation
Page 9 of 13

						
	
	Exhibit No.5 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic Title, LLC, a Utah limited liability corporation
Page 10 of 13

						
	
	Exhibit No.6 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic Title Agency, LLC, a North Carolina limited liability company
Page 11 of 13

						
	
	Exhibit No.7 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic National Title Solutions, LLC, a Delaware limited liability company
Page 12 of 13

						
	
	Exhibit No.8 to 
Amended and Restated Underwriting Agreement between North American Title Insurance Company
and CalAtlantic Entities

															
					

Rates and remittances applicable to CalAtlantic National Title Solutions, LLC, a Maryland limited liability company
Page 13 of 13

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