Document:

Form of Notice of Restricted Stock Unit Grant and Award Agreement

 Exhibit 10.9 

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. 

 

 © First American Financial Corporation 2010 

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 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 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. 

 

 © First American Financial Corporation 2010 

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 (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 0.405)
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 0.574)
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 0.762)
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). 
 (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 

 

 © First American Financial Corporation 2010 

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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 
  

 © First American Financial Corporation 2010 

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 (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 

 

 © First American Financial Corporation 2010 

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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 

 

 © First American Financial Corporation 2010 

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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. 
  

 © First American Financial Corporation 2010 

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 (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 The First American 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”. 

 

 © First American Financial Corporation 2010 

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 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]

  

 © First American Financial Corporation 2010 

- 10 -2010 Employee Stock Purchase Plan

 Exhibit 4.3 

FIRST AMERICAN FINANCIAL CORPORATION 

2010 EMPLOYEE STOCK PURCHASE PLAN 
  

	1.	Purpose. 

 The purpose of
the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an
“Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with
the requirements of that section of the Code. 
  

	2.	Definitions. 

(a)        “Board” shall mean the Board of Directors of the Company. 

(b)        “Code” shall mean the Internal Revenue Code of 1986, as amended.

 (c)        “Common Stock” shall mean the Common Stock of the
Company. 
 (d)        “Company” shall mean First American Financial
Corporation, a Delaware corporation, and any Designated Subsidiary of the Company. 

(e)        “Compensation” shall mean all wages within the meaning of Code
section 3401(a), and all other payments of compensation to an Employee by the Company or Designated Subsidiary for which the Company or Designated Subsidiary is required to furnish the Employee a written statement under Code sections 6041 and 6051.
Compensation shall be determined without regard to any rules under Code section 3401(a) that limit the remuneration included in wages based on the nature or location of employment or the services performed. The Board shall have the authority to
determine and approve all forms of pay to be included in the definition of Compensation, including the forms of pay to be included in Compensation for Designated Subsidiaries and Employees outside of the United States, and may change the definition
of Compensation on a prospective basis, so long as any such determination, approval or change is consistent with Section 423(b)(5) of the Code. 

(f)         “Designated Subsidiary” shall mean any Subsidiary which has
been designated by the Board from time to time in its sole discretion as eligible to participate in the Plan. 

(g)        “Distribution Date” shall have the meaning ascribed to such term in
the Separation and Distribution Agreement between the Company and The First American Corporation, dated as of June 1, 2010. 

(h)        “Eligible Employee” means an Employee eligible to participate in the
Plan under the terms of Section 3. 
 (i)         “Employee”
shall mean any individual who is an Employee of the Company for tax purposes. For purposes of the Plan, the employment relationship shall be treated as 

 
continuing intact while the individual is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds ninety (90) days and the individual’s right
to reemployment is not guaranteed either by statute or by contract, for purposes of the Plan, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 

(j)         “Enrollment Date” shall mean a date prior to the beginning of
an Offering Period, as specified by the Board, on which the eligibility for participation in the following Offering Period is determined. 

(k)        “Exercise Date” shall mean the last day of each Offering Period.

 (l)         “Fair Market Value” shall mean, as of any date, the
closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted on the New York Stock Exchange, as reported in The Wall Street Journal or such other sources as the Board deems reliable. 

(m)       “Offering Period” shall mean a period of approximately one (1) month
during which an option granted pursuant to the Plan may be exercised. The first Offering Period will commence on June 1, 2010 and terminate on the last Trading Day of the same month. Thereafter, subsequent Offering Periods, if any, will
commence on the first Trading Day of each month and terminate on the last Trading Day of that month. The duration of Offering Periods may be changed pursuant to Section 4 of this Plan. 

(n)        “Plan” shall mean this 2010 Employee Stock Purchase Plan. 

(o)        “Purchase Price” shall mean an amount equal to 85% of the Fair Market
Value of a share of Common Stock on the Exercise Date, provided, however, that the Purchase Price may be adjusted by the Board pursuant to Section 19. 

(p)        “Reserves” shall mean the number of shares of Common Stock covered by
each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 

(q)        “Subsidiary” shall mean a corporation, domestic or foreign, of which
not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 

(r)         “Trading Day” shall mean a day on which national stock
exchanges are open for trading. 
  

	3.	Eligibility. 

(a)        Any Employee who is at least eighteen (18) years of age and who shall be employed
by the Company on a given Enrollment Date shall be eligible to participate in the Plan. Notwithstanding anything herein to the contrary, Employees whose customary employment is for not more than twenty (20) hours per week and/or five
(5) months in any calendar year are not eligible to participate in the Plan. 
  

 2 

 (b)        Any provisions of the Plan to the
contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to
Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock
of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time, in accordance with Section 423(b)(8) of the Code.

  

	4.	Offering Periods. 

 The
Plan shall be implemented by consecutive monthly Offering Periods with the first offering period commencing on June 1, 2010, or on such other date as the Board shall determine, and continuing thereafter until terminated in accordance with
Section 19 hereof. The Board shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced at least five
(5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter and the duration of the Offering Period complies with Section 423(b)(7) of the Code (which in relevant part limits the duration of an Offering
Period to no more than five (5) years if the Purchase Price is not less than eighty five percent (85%) of the Fair Market Value on the Exercise Date). 
  

	5.	Participation. 

(a)        An Eligible Employee may become a participant in the Plan by completing an enrollment
agreement designated by the Board, on or before the date designated by the Board. 

(b)        Payroll deductions for a participant shall commence on the first payroll following the
first day of the Offering Period and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof. 

 

	6.	Payroll Deductions. 

(a)        At the time a participant files his or her enrollment agreement, he or she shall elect
to have payroll deductions made on each pay day during the Offering Period in an amount not exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay day during the Offering Period. Payroll deductions may be
permitted on the basis of flat dollar contributions, or a percentage of compensation (in whole percentages only), as determined by the Board. 

(b)        All payroll deductions made for a participant shall be credited to his or her account
under the Plan. A participant may not make any additional payments into such account. 
  

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 (c)        A participant may discontinue his or her
participation in the Plan as provided in Section 10 hereof, or may increase or decrease the rate of his or her payroll deductions by completing or filing with the Company a new enrollment form authorizing a change in payroll deduction rate. The
Board may, in its discretion, limit the number of participation rate changes during any Offering Period. The change in rate shall be effective with the first full payroll period following the administrative deadline established by the Company. A
participant’s enrollment form shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 

(d)        Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be refunded to the participant, or decreased to zero percent (0%), at any time. 

(e)        At the time the option is exercised, in whole or in part, or at the time some or all
of the Company’s Common Stock issued under the Plan is sold, exchanged or otherwise disposed of, the participant must make adequate provision for federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the
option or the disposition of the Common Stock. By electing to participate in the Plan, a participant authorizes the Company to withhold from the participant’s compensation the amounts necessary to satisfy the Company’s applicable tax
withholding obligations. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet the Company’s applicable tax withholding obligations, including
any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. 
  

	7.	Grant of Option. 

 On the
first day of each Offering Period, each Eligible Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date of such Offering Period (at the applicable Purchase Price) up to a number of shares of the
Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price;
provided that (a) the maximum number of shares that may be purchased by an Employee with respect to an Offering Period is 1,000 shares and (b) such purchase shall also be subject to the limitations set forth in Sections 3(b)
and 13 hereof. All participants shall receive an option with the same rights and privileges within the meaning of Section 423(b)(5) of the Code. Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has
withdrawn pursuant to Section 10 hereof. The Option shall expire on the last day of the Offering Period. 
  

	8.	Exercise of Option. 

Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the appropriate number of shares shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. Shares purchased shall be full
or fractional shares as determined by the Board. During a participant’s lifetime, a 
  

 4 

 
participant’s option to purchase shares hereunder is exercisable only by him or her. If not all of a participant’s accumulated payroll deductions are applied to the purchase of shares
on the Exercise Price, then the Company shall provide for the carry forward of all such amounts for the purchase of shares in the next following Offering Period. 
  

	9.	Delivery. 

 As promptly as
practicable after each Exercise Date on which a purchase of shares occurs, the Company shall arrange the delivery to each participant, as appropriate, of the shares purchased upon exercise of his or her option. 

 

	10.	Withdrawal. 

(a)        A participant may withdraw from the Plan at any time by giving notice to the Company on
the form designated by the Board, on or before the date designated by the Board. If a participant withdraws from the Plan, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the
Company a new enrollment form as provided in Section 5. 
 (b)        A
participant’s withdrawal from the Plan shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination
of the Offering Period from which the participant withdraws. 
  

	11.	Termination of Employment. 

Upon a participant’s ceasing to be an Eligible Employee for any reason, he or she shall, subject to Section 10, continue to
participate in the Offering Period during which such cessation occurs until the earlier of the next Exercise Date following such cessation or the date that is three months following such cessation; provided, however, that no additional payroll
deductions or other amounts shall be credited to such participant’s account following the date the participant ceases to be an Eligible Employee. 
  

	12.	Interest. 

 No interest
shall accrue on the payroll deductions of a participant in the Plan. 
  

	13.	Stock. 

(a)        Subject to adjustment upon changes in capitalization of the Company as provided in
Section 18 hereof, the maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall be two million (2,000,000) shares. If, on a given Exercise Date, the number of shares with
respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and
as it shall determine to be equitable. 
  

 5 

 (b)        The participant shall have no interest or
voting right in shares covered by his option until such option has been exercised and shares have been issued. 

(c)        Shares to be delivered to a participant under the Plan shall be registered in the name
of the participant. 
  

	14.	Administration. 

 The Plan
shall be administered by the Board or a committee appointed by the Board, which committee may, but need not, consist of Employees, and which committee shall initially be the Company’s Administrative Plan Committee. The Board or its committee
shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. In the event that a committee is appointed by the
Board, a decision of the committee regarding the Plan shall have the same effect as a decision by the Board. Every finding, decision and determination made by the Board or its committee shall, to the full extent permitted by law, be final and
binding upon all parties. 
  

	15.	Transferability. 

 Neither
payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will or
the laws of descent and distribution) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering
Period in accordance with Section 10 hereof. 
  

	16.	Use of Funds. 

 All
payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 

 

	17.	Reports. 

 Individual
accounts shall be maintained for each participant in the Plan. Statements of account shall be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares purchased and the remaining cash balance, if any. 
  

	18.	Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale. 

(a)        Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the Reserves, the maximum number of shares each participant may purchase per Offering Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock covered by each option under the Plan
which has not yet been exercised shall be appropriately adjusted, in order to prevent any dilution or enlargement of participants’ rights 

 

 6 

 
under the Plan, in the event of any corporate event or transaction (including a change in the shares of Common Stock or the capitalization of the Company), such as a reclassification,
recapitalization, merger, consolidation, reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), issuance of warrants or rights, dividend or other distribution (whether in the
form of cash, stock or other property), stock split or reverse stock split, spin-off, split-up, combination or exchange of shares, repurchase of shares, or other like change in corporate structure, partial or complete liquidation of the Company or
distribution (other than ordinary cash dividends) to stockholders of the Company, or any similar corporate event or transaction. Such adjustment shall be made by the Board or committee of the Board, whose determination in that respect shall be
final, binding and conclusive. The Board or committee of the Board shall have the authority to adjust not only the number of securities, but also the class and kind of securities subject to the Plan and to make appropriate adjustments in the price
of such securities if other than shares of Common Stock of the Company, so long as any such action complies with Section 423(b)(2) of the Code and other applicable law. Any such adjustment made under this Section 18(a) shall be made
consistent with the requirements of Section 423 of the Code. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 

(b)        Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Board shall notify each participant, at least ten (10) business days prior to the
New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

(c)        Merger or Similar Transaction or Asset Sale. In the event of a proposed sale of
all or substantially all of the assets of the Company, or the merger, consolidation or similar transaction involving the Company with or into another corporation in which the Company is not the surviving, controlling corporation, each outstanding
option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, the Offering
Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”). The New Exercise Date shall be before the date of the transaction described in this Section 18(c). The Board shall notify each
participant, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised
automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

(d)        No Limitation of Corporate Actions. The existence of the Plan and any options
granted hereunder shall not affect in any way the right and power of the Company or any 
  

 7 

 
subsidiary or affiliate of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or business structure, any merger or
consolidation, any issuance of debt, preferred or prior preference stock ahead of or affecting the shares of Common Stock, additional shares of capital stock or other securities or subscription rights thereto, any dissolution or liquidation, any
sale or transfer of all or part of its assets or business or any other corporate act or proceeding. Further, except as expressly provided herein or by the Board or committee of the Board, (i) the issuance by the Company of any shares of Common
Stock or any class of securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefore, or upon conversion of shares or obligations of
the Company convertible into such shares or other securities, (ii) the payment of an ordinary dividend in cash or property other than shares of Common Stock, (iii) the occurrence of any similar transaction, and in any case whether or not
for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to options theretofore granted or the Purchase Price applicable to any option, unless the Board or
committee of the Board shall determine, in its sole discretion and not inconsistent with the standard set forth in Section 18(a) above, that an adjustment is necessary or appropriate. 

 

	19.	Amendment or Termination. 

(a)        The Board of Directors of the Company may at any time and for any reason suspend,
terminate or amend the Plan. Except as provided in Section 18, no such termination shall affect options previously granted, provided that an Offering Period may be terminated by the Board of Directors on any Exercise Date if the Board
determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its stockholders. Except as provided in Section 18 and this Section 19, no amendment may make any change in any option
theretofore granted which materially adversely affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any other applicable law, regulation or stock exchange rule), the Company shall obtain
shareholder approval in such a manner and to such a degree as required. 

(b)        Without stockholder consent and without regard to whether any participant rights may
be considered to have been “adversely affected,” the Board (or its committee) shall be entitled to add or delete Designated Subsidiaries to be eligible to participate in the Plan, change the Offering Periods, limit the frequency and/or
number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in
order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward
the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its sole
discretion advisable which are consistent with the Plan. 
 (c)        In the event the
Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable in a manner consistent with the requirements of
Section 423 of the Code, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 

    (i)        altering the Purchase Price for any Offering Period including
an Offering Period underway at the time of the change in Purchase Price; 
  

 8 

     (ii)       shortening any
Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Board action; and 

    (iii)      allocating shares. 

Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants. 

 

	20.	Notices. 

 All notices or
other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof. 
  

	21.	Conditions Upon Issuance of Shares. 

(a)        Securities Law Requirements. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. 
 (b)        Holding Period after Exercise
of Option. Shares issued as a result of the exercise of an option under this Plan will be subject to a holding period of one (1) year from the date of exercise. During this holding period, the shares may not be sold or transferred by the
Employee. The Board, at its sole discretion, may change or eliminate this holding period. 
  

	22.	Term of Plan. 

 The Plan
shall become effective May 28, 2010, the date on which it was adopted by the Board. The stockholder of the Company approved the Plan on May 28, 2010, which is within twelve (12) months before or after the date that the Plan was
adopted, as required by Section 423(b)(2) of the Code. The Plan shall continue in effect for a term of ten (10) years unless sooner terminated by the Board or its delegate. 

 

	23.	Governing Law. 

 This Plan
shall be governed by the laws of the State of Delaware. 
  

 9 

	24.	No Enlargement of Employee Rights. 

Nothing contained in this Plan shall be deemed to give any Employee the right to be retained in the employ of the Company or any
Designated Subsidiary, or to interfere with the right of the Company or Designated Subsidiary to discharge any Employee at any time. 
  

	25.	Rules for Foreign Jurisdictions. 

The Board may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements
of local laws and procedures. Without limiting the generality of the foregoing, the Board is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, payment of interest, conversion of local currency, payroll
tax, withholding procedures and handling of stock certificates which vary with local requirements. 
 The Board may also adopt
sub-plans applicable to particular Designated Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Code section 423. The rules of such sub-plans may take precedence over other provisions of this Plan, with the
exception of Section 13, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan. 

 

 10

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