Document:

Amended Letter Agreement between the Registrant and Paul Sagan

 

 

 EXHIBIT 10.48 

July 22, 2010 

Mr. Paul Sagan 
 [address] 

Re: Employment Agreement 

Dear Paul: 
 On behalf of Akamai
Technologies, Inc. (the “Company”), this letter sets forth the revised terms of your full-time employment as Chief Executive Officer (“CEO”) of the Company effective September 7, 2010 (“Letter Agreement”).

 1. Title and Duties. 

Beginning September 7, 2010, you shall serve as CEO of the Company and shall have all powers and duties consistent with this
position, reporting to and subject to the direction and control of the Company’s Chairman of the Board (“Chairman of the Board”) and the Board of Directors (“Board”). You shall perform such other duties and responsibilities
on behalf of the Company as may reasonably be assigned from time to time by the Chairman of the Board and/or Board consistent with the position of CEO. In no way limiting the foregoing, you will be responsible for the management and operational
success of the Company, including responsibility for the Company’s strategic plan, operating results, particularly its quarterly and financial objectives, efficiency and effectiveness of the Company’s management and business planning
process, positioning the Company to achieve its goals for profitable growth, and compliance with applicable laws and regulatory requirements. You also shall be a frequent public representative of the Company to investors, and prospective and
existing customers and partners. 
 2. Base Salary. 

Your base salary shall initially continue at the annualized rate of $625,000 per year ($52,083.33 per month). Your salary and bonus
achievement shall be subject to review annually by the Board of Directors or a committee thereof after consideration of an assessment of your performance by the Nominating and Governance Committee and recommendations by the Chairman of the Board.

 3. Incentive Bonus. 

You will be eligible for an incentive cash bonus in any year that the Compensation Committee of the Company agrees to provide an incentive
bonus plan for the senior executive team. Your cash incentive bonus plan adopted by the Compensation Committee in 2010 shall continue in effect as approved. 

 4. Long Term Incentive Compensation. 

You will be eligible to participate in any long-term equity incentive plan(s) in any year that the Compensation Committee of the Company
agrees to provides a long-term equity incentive plan for the senior executive team. 
 5. Termination of Employment. 

(a) Definitions 

(i) “Cause” shall mean (i) misappropriation of material funds or property of the Company; (ii) willful refusal to
perform the duties assigned to you under this Agreement; (iii) conviction of a felony; (iv) material breach of your covenants as set forth in Sections 1 and 2 of the Non-Competition, Non-Solicitation, Proprietary and Confidential
Information Agreement, dated September 7, 2010, by and between the Company and you (the “Proprietary Information Agreement”); or (v) your continued material breach of the provisions of this Agreement after being informed of such
breach. To the extent any equity award issued to you contains a different definition of “Cause”, the definition provided here shall control. 

(ii) A “Change of Control” of the Company shall mean: 

(A) any merger or consolidation which results in the voting securities of the Company outstanding immediately prior
thereto representing immediately thereafter (either by remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or
such surviving or acquiring entity outstanding immediately after such merger or consolidation; 
 (B) the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of either (A) the then-outstanding shares of Common Stock of the Company (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection
(B), the following acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which results in all or substantially all of the individuals and entities who were the beneficial
owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such transaction beneficially owning, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined
voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such transaction (which shall include, without limitation, a corporation which
as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such transaction,
of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; 
 (C) any sale
of all or substantially all of the assets of the Company; or 
 (D) the complete liquidation of the Company.

  

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 (iii) “Good Reason” shall mean the occurrence, without your written consent, of
any of the events or circumstances set forth in clauses (A) through (E) below; provided that the Company, after receipt of written notice from you of such occurrence within 90 days of the initial existence of such occurrence, has failed to
remedy the event or circumstance constituting Good Reason within 30 days of such notice: 
 (A) the assignment to
you of duties inconsistent in any material respect with your position as Chief Executive Officer of the Company (including status, offices, titles and reporting requirements), authority or responsibilities as set forth in this Agreement, or any
other action or omission by the Company which results in a material diminution in such position, authority or responsibilities including, without limitation, a requirement that you report to a corporate officer or employee instead of directly to the
Board of Directors; 
 (B) a material reduction in your annual base salary as in effect on the date of this
Agreement or as the same was or may be increased thereafter from time to time, other than in the case of reductions in base salary with respect to similarly situated employees of the Company generally; 

(C) a material diminution in (1) any material compensation or benefit plan or program in which you participate or
which is applicable to you immediately prior to the date of this Agreement, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan or cash compensation) has been made with respect to such plan or program, or
(2) the cash bonus incentive opportunities available to you, other than in the cases of (1) or (2) above of such diminution by the Company that applies to similarly situated employees of the Company generally; 

(D) a change by the Company in the location at which you perform your principal duties for the Company to a new location
that is both (1) outside a radius of 35 miles from the your principal residence immediately prior to the date of this Agreement and (2) more than 20 miles from the location at which you performed your principal duties for the Company
immediately prior to the date of this Agreement; and 
 (E) any material breach by the Company of this Agreement.

 To the extent any equity award issued to you contains a different definition of “Good Reason”, the definition provided here shall
control. 
 (b) Each party must give the other party at least thirty (30) days advance written notice prior to terminating
your employment, except that such notice is not required in the event of your termination for Cause. Furthermore, there may be cases in which the Company, in its sole discretion, determines that it is not in the best interests of the Company to
continue your employment for thirty (30) days after giving you notice of termination, even if your termination is not for Cause. In such cases, the Company reserves the right to provide you with thirty (30) days pay, at your
then-current base salary, in lieu of providing you with thirty (30) days notice. Nothing in this provision is intended to, or does, alter your status as an employee at will. 

(c) If you are employed as of the date of a Change of Control of the Company and within twelve (12) months following such Change of
Control, your employment is terminated by the surviving entity for any reason other than Cause or you resign for Good Reason: 

(i) you shall also be entitled to a lump sum cash payment equal to the sum of: two (2) years of your then-current
annualized base salary and two (2) times your then-applicable 
  

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annual incentive bonus at target. For purposes of this paragraph 5(c)(i), “bonus at target” shall be as set forth in the terms of the then-applicable annual incentive bonus plan;

 (ii) notwithstanding anything to the contrary in any current or future grant agreement governing the award of
stock options, you shall be entitled to 100% vesting of all outstanding unvested stock options held by you on the date of termination; 

(iii) notwithstanding anything to the contrary in any current or future grant agreement governing the award of restricted
stock units and in no way diminishing your existing rights under any such agreement, you shall be entitled to 100% vesting of all unvested restricted stock units (other than those restricted stock units that vest only upon the achievement of
performance targets based on periods greater than one year (e.g., your 3-year cumulative performance based-vesting RSUs) (“Long-Term Performance RSUs”)) held by you on the date of termination; and 

(iv) you shall be entitled to a lump sum payment of an amount equal to 12 times the monthly premium for continued health
and dental insurance coverage paid by the Company on your behalf in the month preceding your termination. 
 (d) If you are
involuntarily terminated by the Company for any reason other than Cause and Section 5(c) does not apply, you shall be entitled to lump sum cash payments equal to: one year of your then-current base salary; an amount equal to 12 times the
monthly premium for continued health and dental insurance coverage paid by the Company on your behalf in the month preceding your termination; and an award of your then-applicable annual incentive bonus at target. 

(e) In addition, if you are involuntarily terminated by the Company for any reason other than Cause, the Company will make a lump sum
payment to you equal to the pre-tax value of the contribution you would have been entitled to receive if your employment had continued through the end of the contribution period, provided that the Company has a 401(k) matching plan in effect at the
time of such termination. 
 (f) You shall be considered to have been discharged for ‘Cause’ if the Company makes a
preliminary determination, within 30 days after your resignation, that discharge for Cause was warranted, provided that, prior to making any final determination of discharge for Cause, the Company gives you reasonable notice and opportunity to
be heard. 
 (g) If, while you are CEO of the Company, you die or are deemed to be suffer from a “long term
disability” (as that term is defined in the Company’s then-current long term disability plan, provided you are disabled as defined in Section 409A(a)(2)(C) of the Code of 1986, as amended and the applicable Treasury Regulations), in
addition to the benefits under any applicable Company life insurance policy or long term disability plan to which you have subscribed, you (or, in the event of your death, your estate) shall receive full vesting of all of your stock options, RSUs
(other than Long-Term Performance RSUs) and other equity awards as well as a lump sum cash payment equal to: one (1) year of your then-current base salary; an award equal to your then-applicable annual incentive bonus at target, and an amount
equal to 12 times the monthly premium for continued health and dental insurance coverage paid by the Company on your behalf in the month preceding your termination. 

(h) In the event that your employment terminates due to your resignation and, after you sign any release, the Company makes a final
determination that discharge for Cause is warranted, then such release shall not negate your reasonable notice and opportunity to be heard nor your right to raise defenses and/or claims against the Company regarding such determination. 

(i) Any payments or benefits to be paid under this Section 5 shall be paid within sixty (60) days after the your termination,
provided you (or, in the event of your death, an authorized representative 
  

 4 

 
of your estate) have executed the separation agreement providing for a release of claims and such release has become effective within such 60 days; provided that if such the last day of such
sixty day period occurs in the calendar year after the calendar year of termination, the payments and benefits shall be made no earlier than January 1 of such subsequent calendar year. Any payments under this Section 5 (or any other
payments to be made to you under any other agreement with the Company on the account of your termination of employment) shall also be subject to Appendix A attached hereto. Any payments under this Letter Agreement shall be paid less
applicable withholdings for taxes and other deductions required by law. 
 5A Golden Parachute Excise Taxes. Payments
under this Agreement shall be made without regard to whether the deductibility of such payments or benefits (or any other payments or benefits) to you or for your benefit would be limited or precluded by Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”) and without regard to whether such payments or benefits (or other payments or benefits) would subject you to the federal excise tax levied on certain “excess parachute payments” under
Section 4999 of the Code (the “Excise Tax”). Notwithstanding anything to the contrary in this Agreement or any other agreement between you and the Company, in the event that any payment or benefit to you or for your benefit, or any
acceleration of vesting of any such payment or benefit, by the Company, a person acquiring ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets, or any entity whose relationship to the
Company or such person requires attribution of stock ownership between the parties under Section 318(a) of the Code, is deemed to constitute an “excess parachute payment” within the meaning of Section 280G of the Code (whether
paid or payable, distributed or distributable or accelerated or subject to acceleration pursuant to the terms of this Agreement or otherwise, including, without limitation, any additional payments required under this Section 5A) (the aggregate
of such amounts being referred to herein as the “Excess Parachute Payments”), then you shall be entitled to receive an additional payment, not to exceed $5.0 million (a “Gross-Up Payment”), of an amount such that, to the maximum
extent possible given such $5.0 million cap, after payment by you of all taxes imposed upon the Gross-Up Payment and any interest or penalties imposed with respect to such taxes, you retain an amount of the Gross-Up Payment equal to the sum of:
(a) the Excise Tax imposed upon the Excess Parachute Payments; and (b) the product of any deductions disallowed on your return because of the inclusion of the Gross-Up Payment in your adjusted gross income and the highest applicable
marginal rate of federal income taxation for the calendar year in which the Gross-Up Payment is to be made. For purposes of determining the amount of the Gross-Up Payment, you shall be deemed to have: (x) paid federal income taxes at the
highest marginal rates of federal income taxation for the calendar year in which the Gross-Up Payment is to be made; (y) paid applicable state and local income taxes at the highest rate of taxation for the calendar year in which the Gross-Up
Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes; and (z) otherwise allowable deductions for federal income tax purposes at least equal to those
which would be disallowed because of the inclusion of the Gross-Up Payment in your adjusted gross income. The payment of a Gross-Up Payment under this Section 5A shall in no event be conditioned upon the termination of your employment or the
receipt of severance benefits under this Agreement. Upon your written request, the determination as to whether any of your payments and benefits include Excess Parachute Payments and, if so, the amount of such payments, the amount of any Excise Tax
owed with respect to such payments, and the amount of any Gross-Up Payment shall be made at the Company’s expense by the Company’s certified public accounting firm as of immediately prior to the consummation of the change in control in
respect of which the Gross-Up Payment is to be made, or such other certified public accounting firm designated by the Company prior to such change in control. You agree to provide such accounting firm with all information reasonably necessary for it
to complete its analysis and otherwise to cooperate with all reasonable requests by the Company or such accounting firm in connection therewith. Notwithstanding the foregoing, if the Internal Revenue Service shall assert an Excise Tax liability that
is higher than the Excise Tax (if any) determined by the accounting firm described in the immediately preceding sentence, the Company shall, promptly following receipt of evidence to that effect, augment the Gross-Up Payment to reflect such higher
Excise Tax liability (subject to the $5.0 Million cap set forth above). The Gross-Up Payment shall be paid to you as 

 

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soon as practicable following the determination of liability but in any event no later than the end of the taxable year next following the taxable year in which you remit the taxes related to the
Gross-Up Payment. 
 6. Employee Benefits. 

Except as provided herein, you shall be entitled to health insurance, vacation, and other employee benefits provided to senior executives
of the Company, so long as and to the extent any such benefit is provided by the Company and provided you meet any eligibility requirements to participate. The Company may alter, modify, add to or delete any employee benefits maintained for its
employees generally at any time, as it, in its sole judgment, determines to be appropriate. 
 7. Invention And Non-Disclosure Agreement And
Non-Competition and Non-Solicitation Agreement. 
 You agree to execute the Proprietary Information Agreement
contemporaneously with the execution of this Letter. 
 8. No Term. 

This Letter is not to be construed as an agreement, expressed or implied, to employ you for any stated term. You will remain an employee
at will. Either you or the Company may terminate the employment relationship at any time for any reason. 
 9. Amendment. 

This Letter may be amended or modified only by a written instrument executed by both the Company and you. In the event that a new
President of the Company does not commence work on September 7, 2010, the parties agree to amend this agreement to reflect the retention of such title by you. 

10. Governing Law. 
 This
Letter shall be governed by and in accordance with the laws of the Commonwealth of Massachusetts without regard to conflict of laws provisions. Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or
relating to any provision of this Letter shall be commenced only in a court of the Commonwealth of Massachusetts (or, if appropriate, a federal court located within Massachusetts), and you and the Company each consents to the jurisdiction of such a
court. 
 11. Successors and Assigns. 

This Letter shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any
corporation with which or into which the Company may be merged or which may succeed to its assets or business, provided, however, that your obligations are personal and shall not be assigned by you. 

12. Notice. 
 Any notice
required to be given hereunder may be delivered by hand, deposited with a nationally recognized overnight courier, sent by confirmed facsimile, or mailed by registered or certified mail, return receipt requested, postage prepaid, in each case to the
address of the receiving party indicated below, or such other address as either party may notify the other in writing. Notice to Paul Sagan: at 5 Sunset Ridge, Lexington, MA 02421, with a copy which shall not constitute notice to Martin Hall,
Esquire, Ropes & Gray, One International Place, Boston, MA 02110; Notice to Akamai Technologies: at 8 Cambridge Center, Cambridge, MA 02142 attention General Counsel. 

 

 6 

 13. Entire Agreement. 

This Letter should be read in conjunction with the Proprietary Information Agreement, which is incorporated by reference herein. Such
agreements supersede your January 4, 2005 employment agreement, as amended. 
 Please sign below to indicate your
acceptance of the terms of this Letter Agreement. 
  

			
	Very truly yours,
	
	AKAMAI TECHNOLOGIES, INC.
		
	By:	 	 /s/ George H. Conrades

		 	George H. Conrades

*                       
 *                        * 

I accept the terms of this Letter Agreement with Akamai Technologies, Inc. as set forth herein. 

 

			
	By:	 	 /s/ Paul Sagan

	Paul Sagan
	July 22, 2010

  

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 APPENDIX A 

PAYMENTS SUBJECT TO SECTION 409A 

1. Subject to this Appendix A, payments or benefits under Agreement that are payable with respect to your termination of employment shall
begin only upon the date of your “separation from service” (determined as set forth below) which occurs on or after the termination of your employment. The following rules shall apply with respect to distribution of the payments and
benefits, if any, to be provided to you under this Agreement: 
 A. It is intended that each installment of the
payments and benefits provided or referenced under Section 5 of this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the Code and the guidance issued thereunder (“Section 409A”).
Neither the Company nor you shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A. 

B. If, as of the date of your “separation from service” from the Company, you are not a “specified
employee” (within the meaning of Section 409A), then each installment of the payments and benefits shall be made on the dates and terms set forth in Section 5 of this Agreement (or other applicable agreement). 

C. If, as of the date of your “separation from service” from the Company, you are a “specified
employee” (within the meaning of Section 409A), then: 
 (i) Each installment of the payments and
benefits payable with respect to termination of your employment that, in accordance with the dates and terms set forth in the relevant agreement, will in all circumstances, regardless of when the separation from service occurs, be paid within the
period of time permitted under Treasury Regulation Section 1.409A-1(b)(4) shall be treated as a short-term deferral within the meaning of such Section to the maximum extent possible; and 

(ii) Each installment of the payments and benefits payable that is not described in this Appendix A, 1.C.i. above and that
would, absent this subsection, be paid within the six-month period following your “separation from service” from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if
earlier, your death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following your separation from service and any
subsequent installments, if any, being paid in accordance with the dates and terms set forth in this Agreement (or other applicable agreement); provided, however, that the preceding provisions of this sentence shall not apply to any installment of
payments and benefits if and to the maximum extent that that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury
Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service). Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the
last day of your second taxable year following his taxable year in which the separation from service occurs. 

(iii) The determination of whether and when your separation from service from the Company has occurred shall be made and
in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of 

 

 8 

 
this Appendix A, 1.C.iii., “Company” shall include all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code. 

2. All reimbursements and in-kind benefits provided this Agreement shall be made or provided in accordance with the requirements of
Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during the your lifetime (or during
a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement
of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other
benefit. 
  

 9Form of Notice of Restricted Stock Unit Grant & Restricted Stock Unit Award Agmt

 Exhibit 10(i) 

Notice of Restricted Stock Unit Grant 
  

	 Participant: 
	[Participant Name] 

  

	 Company:  
	First American Financial Corporation 

  

	 Notice:  
	You have been granted the following Restricted Stock Units in accordance with the terms of the Plan and the Restricted Stock Unit Award Agreement (the “Award Agreement”) attached
hereto. 

  

	 Type of Award:  
	Restricted Stock Units 

  

	 Plan:  
	First American Financial Corporation 2010 Incentive Compensation Plan 

  

	 Grant:  
	Date of Grant: June 1, 2010 

 Restricted Stock Units:
[                    ] 
  

	 Period of Restriction:  
	As specified in the Award Agreement. 

  

	 Rejection: 
	If you wish to accept this Restricted Stock Unit Award, please access Fidelity
NetBenefits® at www.netbenefits.com and follow the steps outlined under the “Accept Grant” link
at any time within forty-five (45) days after the Date of Grant. If you do not accept your grant via Fidelity
NetBenefits® within forty-five (45) days after the Date of Grant, you will have rejected this Restricted
Stock Unit Award. 

  

©
 First American Financial Corporation 2010 

 Restricted Stock Unit Award Agreement 

This Restricted Stock Unit Award Agreement (this “Agreement”), dated as of the Date of Grant set forth in the Notice of
Restricted Stock Unit Grant attached hereto (the “Grant Notice”), is made between First American Financial Corporation (the “Company”) and the Participant set forth in the Grant Notice. The Grant Notice is included in and made
part of this Agreement. 
  

	 	1.	Definitions. 

 Capitalized
terms used but not defined in this Agreement (including the Grant Notice) have the meaning set forth in the Plan. 

“Cause,” shall be defined as: (i) embezzlement, theft or misappropriation by the Participant of any property of any of the
Company or its affiliates; (ii) Participant’s breach of any fiduciary duty to the Company or its affiliates; (iii) Participant’s failure or refusal to comply with laws or regulations applicable to the Company or its affiliates
and their businesses or the policies of the Company and its affiliates governing the conduct of its employees or directors; (iv) Participant’s gross incompetence in the performance of Participant’s job duties; (v) commission by
Participant of a felony or of any crime involving moral turpitude, fraud or misrepresentation; (vi) the failure of Participant to perform duties consistent with a commercially reasonable standard of care; (vii) Participant’s failure
or refusal to perform Participant’s job duties or to perform specific directives of Participant’s supervisor or designee, or the senior officers or Board of Directors of the Company; or (viii) any gross negligence or willful
misconduct of Participant resulting in loss to the Company or its affiliates, or damage to the reputation of the Company or its affiliates. 

“Outstanding Restricted Stock Units” shall mean the number of Restricted Stock Units specified in the Grant Notice reduced by
any Restricted Stock Units for which the Period of Restriction has lapsed and/or any Restricted Stock Units which have been cancelled or otherwise terminated. 
  

	 	2.	Grant of the Restricted Stock Units. 

Subject to the provisions of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the
Plan, a right to receive the number of Shares set forth in the Grant Notice (“Restricted Stock Units”). 
  

	 	3.	Dividend Equivalents. 

Each Outstanding Restricted Stock Unit shall accrue Dividend Equivalents with respect to dividends that would otherwise be paid on the
Shares underlying such Restricted Stock Units during the period from the Grant Date to the date such Shares are delivered in accordance with Section 6. As of any date that the Company pays any cash dividend on its Shares, the Company shall
credit the Participant with any additional number of Restricted Stock Units equal to: 
 (a) the product
resulting from the multiplication of the per Share cash dividend paid by the Company on its common stock on such date by the total number of Outstanding Restricted Stock Units subject to the Award as of the related dividend payment record date
(including any Dividend Equivalents previously credited hereunder), divided by  
 (b) the Fair Market
Value. 
 Any Restricted Stock Units credited pursuant to this Section 3 shall be subject to the same Period of
Restriction, payment, delivery and other terms, conditions as restrictions as the original Restricted Stock Units to which they relate. Any such crediting of Dividend Equivalents shall be conclusively determined by the Committee. 

 

 -2- 

©
 First American Financial Corporation 2010 

 Calculations made in this Agreement with respect to Restricted Stock Units (other than this
Section 3), including, without limitation, Sections 4(a), 4(f) and 5(a), are made on the Restricted Stock Units specified in the Grant Notice or Outstanding Restricted Stock Units, as applicable, and not on any Dividend Equivalents,
provided, that any adjustment to or any determination as to the Period of Restriction on such Restricted Stock Units or Outstanding Restricted Stock Units shall apply in the same fashion to the related Dividend Equivalents. For purposes of
illustration only, the computation in Section 4 below of the number of Restricted Stock Units as to which the Period of Restriction elapses on Date II and Date III shall be initially computed without regard to Dividend Equivalents; once the
correct number of Restricted Share Units is calculated, however, the actual Shares to be delivered shall be determined by increasing the number of Restricted Stock Units by an amount that reflects the Dividend Equivalents that would be credited on
such Shares through Date II or Date III, respectively. 
  

	 	4.	Performance Criteria; Vesting. 

(a) The Period of Restriction applicable to the Restricted Stock Units shall commence on the Date of Grant and shall lapse
as follows: 
 (i) On June 1, 2013 (“Date I”), in an amount equal to the product resulting from
the multiplication of the total Restricted Stock Units specified in the Grant Notice and the Target Decimal for Date I; 

(ii) On June 1, 2014 (“Date II”), in an amount equal to 

 

			
	 (A)
	  	the product resulting from the multiplication of the total Restricted Stock Units specified in the Grant Notice and the Target Decimal for Date II, minus 
		
	 (B)
	  	any Restricted Stock Units for which the Period of Restriction lapsed pursuant to Section 4(a)(i);

(iii) On June 1, 2015 (“Date III”), in an amount equal to 

 

			
	 (A)
	  	the product resulting from the multiplication of the total Restricted Stock Units specified in the Grant Notice and the Target Decimal for Date III, minus 
		
	 (B)
	  	any Restricted Stock Units for which the Period of Restriction lapsed pursuant to Sections 4(a)(i) and (ii).

(b) For purposes of this Agreement, a “Measurement Date” means any of Date I, Date II or Date III. 

(c) For purposes of this Agreement, “TSR” means with respect to any period from the Date of Grant up to and
including the applicable Measurement Date, the highest consecutive 20 Trading Day average of the amount (expressed as a decimal) resulting from the calculation (on each Trading Day) of the following formula: 

 

 

 where: 
  

			
	 (i)
	  	“CSP” equals the last sale price reported for a Share on the New York Stock Exchange on such day;
		
	 (ii)
	  	“ASP” equals an amount equal to the average of the last sale price reported for the Shares on the New York Stock Exchange for all Trading Days from and including
June 2, 2010 to and including July 31, 2010; and
		
	 (ii)
	  	“DIV” equals the aggregate cash dividends per Share paid by the Company from June 2, 2010 through and including such day. For the purpose of the preceding sentence a
cash dividend on a Share shall be deemed reinvested

  

 -3- 

©
 First American Financial Corporation 2010 

			
		
		  	in a Share (or a fraction thereof) in the manner described in Section 3, so that the value of any cash dividends shall take into account any subsequent dividends and any
increase or decrease in the value of Shares.

 (d) For purposes of this Agreement, “Trading
Day” means any day on which the New York Stock Exchange is open for trading for at least 5 hours. 
 (e) For
purposes of this Agreement, “Target Decimal” means: 
  

			
	 (i)
	  	For Date I, if

  

			
	 (A)
	  	TSR is less than 0.331, zero (0).
		
	 (B)
	  	if TSR is equal to or greater than 0.331, the amount resulting from the calculation of the following formula:

 

 

  

			
		
		  	where (1) “u” equals TSR minus 0.331 (provided that “u” shall not exceed 0.074) and (2) “v” equals 0.074;

 

			
	 (ii)
	  	For Date II, if

  

			
	 (A)
	  	TSR is less than 0.464, zero (0).
		
	 (B)
	  	if TSR is equal to or greater than 0.464, the amount resulting from the calculation of the following formula:

 

 

  

			
		
		  	where (1) “w” equals TSR minus 0.464 (provided that “w” shall not exceed 0.110) and (2) “x” equals 0.110;

 

			
	 (iii)
	  	For Date III, if

  

			
	 (A)
	  	TSR is less than 0.611, zero (0).
		
	 (B)
	  	if TSR is equal to or greater than 0.611, the amount resulting from the calculation of the following formula:

 

 

  

			
		
		  	where (1) “y” equals TSR minus 0.611 (provided that “y” shall not exceed 0.151) and (2) “z” equals 0.151;

(f) Subject to the terms of the Plan and the remaining provisions of this Section 4(f), all Outstanding Restricted
Stock Unit as of the Participant’s Termination shall be immediately forfeited. Notwithstanding the foregoing to the contrary, in the event the Participant’s Termination is due to his or her death, Disability or Termination by the Company,
a Subsidiary or an Affiliate without Cause, the Participant shall be entitled to receive a prorated number of Restricted Stock Units in an amount equal to (X) the product resulting from the multiplication of the Restricted Stock Units
originally granted hereunder by a fraction the numerator of which is the total number of days elapsed between June 1, 2010 and the date of such Termination and the denominator of which is 1,826, minus (Y) any Restricted Stock Units
for which the Period of Restriction has lapsed pursuant to Section 4(a). Notwithstanding the preceding sentence, the lapse of any Period of Restriction with respect to such Restricted Stock Units shall remain subject to Sections 4(a) and 5.
After the adjustment contemplated above in this Section 4(f), for all purposes under this Agreement the number of Restricted Stock Units originally granted under this Agreement shall be deemed to be the number resulting from the calculation set
forth in Section 4(f)(X). 
  

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 First American Financial Corporation 2010 

 (i) Notwithstanding the preceding sentences of Section 4(f), in the
event of the Participant’s Termination due to his or her Disability or Termination by the Company, a Subsidiary or an Affiliate without Cause, the Participant shall be entitled to receive such prorated number of Restricted Stock Units only if
he or she has signed and delivered to the Company a signed separation agreement (in the form established by the Company) within 60 days of such Termination (or such longer period of time required by applicable law) and such separation agreement is
not subsequently revoked. 
 (ii) In the event of Participant’s Termination for any other reason, including,
without limitation, for Cause or voluntarily by the Participant for any reason (including retirement), any Outstanding Restricted Stock Units shall be immediately forfeited. 

 

	 	5.	Change of Control. 

 (a)
In the event of a Change of Control the Outstanding Restricted Stock Units as of the date of such Change of Control to which the Participant may subsequently be entitled to receive shall be adjusted as follows: 

(i) if the TSR as of the date of such Change of Control (the “COC TSR”) is less than the amount resulting from
the calculation of the following formula (the “Threshold COC Target”), then all Outstanding Restricted Stock Units shall be immediately forfeited: 

 

 

 or 

(ii) if the COC TSR equals the Threshold COC Target, then the Outstanding Restricted Stock Units shall be adjusted to an
amount equal to 
 (X) 50% of the Restricted Stock Units specified in the Grant Notice minus  

(Y) the amount of any Restricted Stock Units for which the Period of Restriction lapsed pursuant to 

Section 4(a), 
  

and the Period of Restriction with respect to such Restricted Stock Units shall lapse as provided in Section 5(b) (notwithstanding
anything in Section 4(a) to the contrary); 
 or 

(iii) if the COC TSR equals or exceeds the amount resulting from the calculation of the following formula (the “High
COC Target”), then the Outstanding Restricted Stock Units shall be adjusted to an amount equal to the Outstanding Restricted Stock Units minus the amount of any Restricted Stock Units for which the Period of Restriction lapsed pursuant
to Section 4(a), and the Period of Restriction with respect to such Restricted Stock Units shall lapse as provided in Section 5(b) (notwithstanding anything in Section 4(a) to the contrary): 

 

 

 or 
  

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©
 First American Financial Corporation 2010 

 (iv) in the event the COC TSR is less than the High COC Target and greater
than the Threshold COC Target, then the Outstanding Restricted Stock Units shall be adjusted to an amount equal to 

(X) the product resulting from the multiplication of the number of Restricted Stock Units specified in the Grant Notice
by the decimal resulting from the calculation of the following formula minus  
 (Y) the amount of any
Restricted Stock Units for which the Period of Restriction lapsed pursuant to Section 4(a), 
 and the Period of Restriction
with respect to any such Restricted Stock Units shall lapse as provided in Section 5(b) (notwithstanding anything in Section 4(a) to the contrary): 

 

 

 For purposes of this Section 5(a): 

 

			
		
	 (1)
	  	“ASP” equals the amount provided in Section 4(c)(2), above;
		
	 (2)
	  	“n” equals an amount equal (expressed to three decimal places) the quotient resulting from the division of (I) the number of days between and including June 1,
2010 and the date on which the Change of Control occurs by (II) 365;
		
	 (3)
	  	“f” equals the COC TSR;
		
	 (4)
	  	“g” equals the Threshold COC Target;
		
	 (5)
	  	“h” equals the High COC Target.

(b) Following the adjustment set forth in Section 5(a), the Period of Restriction for any Outstanding Restricted
Stock Units shall lapse as follows: 
 (i) if the Participant has not experienced a Termination and the Change of
Control occurs on or before Date I, 33% on Date I, 34% on Date II and the balance on Date III; or 
 (ii) if the
Participant has not experienced a Termination and the Change of Control occurs after Date I and on or before Date II, 50% on Date II and 50% on Date III,; or 

(iii) if the Participant has not experienced a Termination and the Change of Control occurs after Date II and on or before
Date III, 100% on Date III, assuming continued employment through such date; or 
 (iv) if as a result of such
Change of Control the Company ceases to publicly trade on the New York Stock Exchange (or other comparable national exchange in the United States of America) or the Company is not the surviving company as a result of such Change of Control and the
surviving Company does not trade on the New York Stock Exchange (or other comparable national exchange in the United States of America) or the Company is not the surviving Company and the surviving Company refuses to assume the Company’s
obligations under this Agreement, immediately upon such Change of Control; or 
 (v) immediately following the
Participant’s Termination following a Change of Control due to his or her death, Disability or Termination by the Company (or a 

 

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 First American Financial Corporation 2010 

 
successor in interest), a Subsidiary or an Affiliate without Cause; provided in the event of the Participants Termination due to his or her Disability or Termination by the Company (or a
successor in interest), a Subsidiary or an Affiliate without Cause, the Participant has signed and delivered to the Company a signed separation agreement (in the form established by the Company) within 60 days of such Termination (or such longer
period of time required by applicable law) and such separation agreement is not subsequently revoked; provided, further, that if the Participant’s Termination following a Change of Control is for a reason other than his or her
death, Disability or Termination by the Company (or a successor in interest), a Subsidiary or an Affiliate without Cause, then all Outstanding Restricted Stock Unit as of such Termination shall be immediately forfeited; or 

(vi) immediately upon a Change of Control if, prior to such Change of Control, the Participant experienced a Termination
due to his or her death, Disability or Termination by the Company (or a successor in interest), a Subsidiary or an Affiliate without Cause, provided in the event of the Participants Termination due to his or her Disability or Termination by
the Company (or a successor in interest), a Subsidiary or an Affiliate without Cause, the Participant had signed and delivered to the Company a signed separation agreement (in the form established by the Company) within 60 days of such Termination
(or such longer period of time required by applicable law) and such separation agreement was not subsequently revoked. 
 For the
purpose of Section 5(b)(iv), a surviving company shall only be deemed to have assumed the Company’s obligations under this Agreement if it substitutes equivalent or better (from the perspective of the Participant) restricted stock units in
the surviving company’s stock for the Outstanding Restricted Stock Units. 
  

	 	6.	Delivery of Shares. 

 As
soon as reasonably practicable following the lapse of the applicable portion of the Period of Restriction, but in no event later than 60 days following the date of such lapse, the Company shall cause to be delivered to the Participant the full
number of Shares underlying the Restricted Stock Units as to which such portion of the Period of Restriction has so lapsed, together with Shares comprising all accrued Dividend Equivalents with respect to such Restricted Stock Units, subject to
satisfaction of applicable tax withholding obligations with respect thereto pursuant to Article XVII of the Plan; provided, however, that if the Participant’s Termination occurs due to Disability, such delivery of Shares shall be delayed
for six months from the date of such Participant’s Termination if the Participant is a “specified employee” (as such term is defined in Section 409A(a)(2)(B)(i) of the Code) and if necessary to avoid the imposition of taxes on
the Participant pursuant to Section 409A of the Code. 
  

	 	7.	No Ownership Rights Prior to Issuance of Shares. 

Neither the Participant nor any other person shall become the beneficial owner of the Shares underlying the Restricted Stock Units, nor
have any rights to dividends (other than the right to Dividend Equivalents pursuant to Section 3) or other rights as a shareholder with respect to any such Shares, until and after such Shares have been actually issued to the Participant and
transferred on the books and records of the Company or its agent in accordance with the terms of the Plan and this Agreement. 
  

	 	8.	Detrimental Activity. 

(a) Notwithstanding any other provisions of this Agreement to the contrary, if at any time prior to the delivery of Shares
with respect to the Restricted Stock Units, the Participant engages in Detrimental Activity, such Restricted Stock Units shall be cancelled and rescinded without any payment or consideration therefor. The determination of whether the Participant has
engaged in Detrimental Activity shall be made by the Committee in its good faith discretion, and lapse of the Period of Restriction and delivery of Shares with respect to the Restricted Stock Units shall be suspended pending resolution to the
Committee’s satisfaction of any investigation of the matter. 
 (b) For purposes of this Agreement,
“Detrimental Activity” means at any time (i) using information received during the Participant’s employment with the Company and/or its Subsidiaries and 

 

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©
 First American Financial Corporation 2010 

 
Affiliates relating to the business affairs of the Company or any such Subsidiaries or Affiliates, in breach of the Participant’s express or implied undertaking to keep such information
confidential; (ii) directly or indirectly persuading or attempting to persuade, by any means, any employee of the Company or any of its Subsidiaries or Affiliates to breach any of the terms of his or her employment with Company, its
Subsidiaries or its Affiliates; (iii) directly or indirectly making any statement that is, or could be, disparaging of the Company or any of its Subsidiaries or Affiliates, or any of their respective employees (except to the extent necessary to
respond truthfully to any inquiry from applicable regulatory authorities or to provide information pursuant to legal process); (iv) directly or indirectly engaging in any illegal, unethical or otherwise wrongful activity that is, or could be,
substantially injurious to the financial condition, reputation or goodwill of the Company or any of its Subsidiaries or Affiliates; or (v) directly or indirectly engaging in an act of misconduct such as, embezzlement, fraud, dishonesty,
nonpayment of any obligation owed to the Company or any of its Subsidiaries or Affiliates, breach of fiduciary duty or disregard or violation of rules, policies or procedures of the Company or any of its Subsidiaries or Affiliates, an unauthorized
disclosure of any trade secret or confidential information of the Company or any of its Subsidiaries or Affiliates, any conduct constituting unfair competition, or inducing any customer to breach a contract with the Company or any of its
Subsidiaries or Affiliates, in each case as determined by the Committee in its good faith discretion. 
  

	 	9.	No Right to Continued Employment. 

None of the Restricted Stock Units nor any terms contained in this Agreement shall confer upon the Participant any express or implied
right to be retained in the employ of the Company or any Subsidiary or Affiliate for any period, nor restrict in any way the right of the Company or any Subsidiary or any Affiliate, which right is hereby expressly reserved, to terminate the
Participant’s employment at any time for any reason. For the avoidance of doubt, this Section 9 is not intended to amend or modify any other agreement, including any employment agreement, that may be in existence between the Participant
and the Company or any Subsidiary or Affiliate. 
  

	 	10.	The Plan. 

In consideration for this grant, the Participant agrees to comply with the terms of the Plan and this Agreement. This
Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such regulations as may from time to time be adopted by the Committee. In the event of any conflict between the
provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Plan and the prospectus describing the Plan can be found on Fidelity
NetBenefits® at www.netbenefits.com under Plan Information and Documents. A paper copy of the Plan and the
prospectus shall be provided to the Participant upon the Participant’s written request to the Company at First American Financial Corporation, 1 First American Way, Santa Ana, California 92707, Attention: Incentive Compensation Plan
Administrator, or such other address as the Company may from time to time specify. 
  

	 	11.	Compliance with Laws and Regulations. 

(a) The Restricted Stock Units and the obligation of the Company to sell and deliver Shares hereunder shall be subject in
all respects to (i) all applicable Federal and state laws, rules and regulations and (ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in
its discretion, determine to be necessary or applicable. Moreover, the Company shall not deliver any certificates for Shares to the Participant or any other person pursuant to this Agreement if doing so would be contrary to applicable law. If at any
time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable, the Company shall not be required to deliver any certificates for Shares to the Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has
been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company. 
  

 -8- 

©
 First American Financial Corporation 2010 

 (b) It is intended that the Shares received in respect of the Restricted
Stock Units shall have been registered under the Securities Act. If the Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), the Participant may not sell the
Shares received except in compliance with Rule 144. Certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company
deems appropriate to comply with Federal and state securities laws. 
 (c) If, at any time, the Shares are not
registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery of any Shares to the Participant by the Company pursuant
to this Agreement, an agreement (in such form as the Company may specify) in which the Participant represents and warrants that the Participant is purchasing or acquiring the shares acquired under this Agreement for the Participant’s own
account, for investment only and not with a view to the resale or distribution thereof, and represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a
registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the Shares being offered or sold, or (ii) a specific exemption from the registration
requirements of the Securities Act, but in claiming such exemption the Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or
approved by the Company, as to the applicability of such exemption thereto. 
  

	 	12.	Notices. 

 All notices by
the Participant or the Participant’s assignees shall be addressed to First American Financial Corporation, 1 First American Way, Santa Ana, California 92707, Attention: Incentive Compensation Plan Administrator, or such other address as the
Company may from time to time specify. All notices to the Participant shall be addressed to the Participant at the Participant’s address in the Company’s records. 

 

	 	13.	Severability. 

 In the
event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Agreement, and this Agreement shall be construed and enforced as if the illegal or
invalid provision had not been included. 
  

	 	14.	Other Plans. 

 The
Participant acknowledges that any income derived from the Restricted Stock Units shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any
Subsidiary or Affiliate. For purposes of the Company’s Executive Supplemental Benefit Plan and Management Supplemental Benefit Plan, as the same may be amended from time to time, the Restricted Stock Units (and Dividend Equivalents paid with
respect thereto) shall not be included in or otherwise be deemed to be “Covered Compensation”. 
  

 -9- 

©
 First American Financial Corporation 2010 

	 	15.	Section 409A. 

 The
provisions of this Agreement shall be construed and interpreted to be exempt from or comply with Section 409A of the Code so as to avoid the imposition of any penalties, taxes or interest thereunder. 

 

			
	FIRST AMERICAN FINANCIAL CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:
		
	Date:	 	[Grant Date]

 Acknowledged and agreed as of
the Date of Grant: 
  

			
		
	Printed Name: 	 	[Participant Name]
		
	Date: 	 	[Acceptance Date]

  

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©
 First American Financial Corporation 2010

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