Document:

Form of 2010 Incentive Compensation Plan

 Exhibit 10(m) 

 
 FIRST AMERICAN FINANCIAL CORPORATION 

2010 Incentive Compensation Plan 

© Copyright 2010 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	ARTICLE I. ESTABLISHMENT; PURPOSES; AND DURATION	  	1
	1.1.	  	Establishment of the Plan	  	1
	1.2.	  	Purposes of the Plan	  	1
	1.3.	  	Duration of the Plan	  	1
	  
 ARTICLE II. DEFINITIONS
	  	1
	2.1.	  	“Affiliate”	  	2
	2.2.	  	“Award”	  	2
	2.3.	  	“Award Agreement”	  	2
	2.4.	  	“Beneficial Ownership”	  	2
	2.5.	  	“Board” or “Board of Directors”	  	2
	2.6.	  	“Cause”	  	2
	2.7.	  	“Change of Control”	  	3
	2.8.	  	“Code”	  	5
	2.9.	  	“Committee”	  	5
	2.10.	  	“Company Incumbent Board”	  	5
	2.11.	  	“Company Proxy Contest”	  	5
	2.12.	  	“Company Surviving Corporation”	  	5
	2.13.	  	“Covered Employee”	  	5
	2.14.	  	“Director”	  	5
	2.15.	  	“Disability”	  	5
	2.16.	  	“Dividend Equivalents”	  	6
	2.17.	  	“Effective Date”	  	6
	2.18.	  	“Employee”	  	6
	2.19.	  	“Exchange Act”	  	6
	2.20.	  	“Fair Market Value”	  	6
	2.21.	  	“Fiscal Year”	  	6
	2.22.	  	“Freestanding SAR”	  	7
	2.23.	  	“Grant Price”	  	7
	2.24.	  	“Incentive Stock Option”	  	7
	2.25.	  	“Insider”	  	7
	2.26.	  	“Non-Control Acquisition”	  	7
	2.27.	  	“Non-Control Transaction”	  	7
	2.28.	  	“Non-Employee Director”	  	7
	2.29.	  	“Nonqualified Stock Option”	  	7
	2.30.	  	“Notice”	  	7
	2.31.	  	“Option”	  	7
	2.32.	  	“Option Price”	  	7
	2.33.	  	“Other Stock-Based Award”	  	7
	2.34.	  	“Participant”	  	8
	2.35.	  	“Performance-Based Compensation”	  	8
	2.36.	  	“Performance Measure”	  	8
	2.37.	  	“Performance Period”	  	8
	2.38.	  	“Performance Share”	  	8

  

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	 2.39.
	  	“Performance Unit”	  	8
	 2.40.
	  	“Period of Restriction”	  	8
	 2.41.
	  	“Person”	  	8
	 2.42.
	  	“Qualified Change of Control”	  	8
	 2.43.
	  	“Related Entity”	  	8
	 2.44.
	  	“Restricted Stock”	  	8
	 2.45.
	  	“Restricted Stock Unit”	  	8
	 2.46.
	  	“Retirement”	  	9
	 2.47.
	  	“Rule 16b-3”	  	9
	 2.48.
	  	“Securities Act”	  	9
	 2.49.
	  	“Share”	  	9
	 2.50.
	  	“Stock Appreciation Right”	  	9
	 2.51.
	  	“Subject Person”	  	9
	 2.52.
	  	“Subsidiary”	  	9
	 2.53.
	  	“Substitute Awards”	  	9
	 2.54.
	  	“Tandem SAR”	  	9
	 2.55.
	  	“Termination”	  	9
	 2.56.
	  	“Voting Securities”	  	10
	  
 ARTICLE III. ADMINISTRATION
	  	10
	 3.1.
	  	General	  	10
	 3.2.
	  	Committee	  	10
	 3.3.
	  	Authority of the Committee	  	10
	 3.4.
	  	Award Agreements	  	12
	 3.5.
	  	Discretionary Authority; Decisions Binding	  	12
	 3.6.
	  	Attorneys; Consultants	  	13
	 3.7.
	  	Delegation of Administration	  	13
	  
 ARTICLE IV. SHARES SUBJECT TO THE PLAN AND ANNUAL
AWARD LIMITS
	  	13
	 4.1.
	  	Number of Shares Available for Grants	  	13
	 4.2.
	  	Annual Award Limits	  	14
	 4.3.
	  	Adjustments in Authorized Shares	  	14
	 4.4.
	  	No Limitation on Corporate Actions	  	15
	  
 ARTICLE V. ELIGIBILITY AND
PARTICIPATION
	  	16
	 5.1.
	  	Eligibility	  	16
	 5.2.
	  	Actual Participation	  	16
	  
 ARTICLE VI. STOCK OPTIONS
	  	16
	 6.1.
	  	Grant of Options	  	16
	 6.2.
	  	Award Agreement	  	16
	 6.3.
	  	Option Price	  	16
	 6.4.
	  	Duration of Options	  	17
	 6.5.
	  	Exercise of Options	  	17
	 6.6.
	  	Payment	  	17

  

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	 6.7.
	  	Rights as a Shareholder	  	17
	 6.8.
	  	Termination of Employment or Service	  	17
	 6.9.
	  	Limitations on Incentive Stock Options	  	18
	 6.10.
	  	No Repricing	  	19
	  
 ARTICLE VII. STOCK APPRECIATION RIGHTS
	  	19
	 7.1.
	  	Grant of SARs	  	19
	 7.2.
	  	Grant Price	  	20
	 7.3.
	  	Exercise of Tandem SARs	  	20
	 7.4.
	  	Exercise of Freestanding SARs	  	20
	 7.5.
	  	Award Agreement	  	20
	 7.6.
	  	Term of SARs	  	20
	 7.7.
	  	Payment of SAR Amount	  	21
	 7.8.
	  	Rights as a Shareholder	  	21
	 7.9.
	  	Termination of Employment or Service	  	21
	 7.10.
	  	No Repricing	  	21
	  
 ARTICLE VIII. RESTRICTED STOCK AND RESTRICTED STOCK
UNITS
	  	21
	 8.1.
	  	Awards of Restricted Stock and Restricted Stock Units	  	21
	 8.2.
	  	Award Agreement	  	22
	 8.3.
	  	Nontransferability of Restricted Stock	  	22
	 8.4.
	  	Period of Restriction and Other Restrictions	  	22
	 8.5.
	  	Delivery of Shares, Payment of Restricted Stock Units	  	22
	 8.6.
	  	Forms of Restricted Stock Awards	  	22
	 8.7.
	  	Voting Rights	  	23
	 8.8.
	  	Dividends and Other Distributions	  	23
	 8.9.
	  	Termination of Employment or Service	  	23
	 8.10.
	  	Compliance With Code Section 409A	  	23
	  
 ARTICLE IX. PERFORMANCE UNITS AND PERFORMANCE SHARES

	  	24
	 9.1.
	  	Grant of Performance Units and Performance Shares	  	24
	 9.2.
	  	Value of Performance Units and Performance Shares	  	24
	 9.3.
	  	Earning of Performance Units and Performance Shares	  	24
	 9.4.
	  	Form and Timing of Payment of Performance Units and Performance Shares	  	24
	 9.5.
	  	Rights as a Shareholder	  	25
	 9.6.
	  	Termination of Employment or Service	  	25
	 9.7.
	  	Compliance With Code Section 409A	  	25
	  
 ARTICLE X. OTHER STOCK-BASED AWARDS
	  	25
	 10.1.
	  	Other Stock-Based Awards	  	25
	 10.2.
	  	Value of Other Stock-Based Awards	  	25
	 10.3.
	  	Payment of Other Stock-Based Awards	  	26
	 10.4.
	  	Termination of Employment or Service	  	26
	 10.5.
	  	Compliance With Code Section 409A	  	26

  

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	ARTICLE XI. PERFORMANCE MEASURES	  	26
	 11.1.
	  	Performance Measures	  	26
	 11.2.
	  	Evaluation of Performance	  	27
	 11.3.
	  	Adjustment of Performance-Based Compensation	  	27
	 11.4.
	  	Committee Discretion	  	28
	  
 ARTICLE XII. DIVIDEND EQUIVALENTS
	  	28
	 12.1.
	  	Dividend Equivalents	  	28
	  
 ARTICLE XIII. TRANSFERABILITY OF AWARDS; BENEFICIARY
DESIGNATION
	  	28
	 13.1.
	  	Transferability of Incentive Stock Options	  	28
	 13.2.
	  	All Other Awards	  	29
	 13.3.
	  	Beneficiary Designation	  	29
	  
 ARTICLE XIV. RIGHTS OF PARTICIPANTS
	  	30
	 14.1.
	  	Rights or Claims	  	30
	 14.2.
	  	Adoption of the Plan	  	30
	 14.3.
	  	Vesting	  	30
	 14.4.
	  	No Effects on Benefits	  	30
	 14.5.
	  	One or More Types of Awards	  	31
	  
 ARTICLE XV. CHANGE OF CONTROL
	  	31
	 15.1.
	  	Treatment of Outstanding Awards	  	31
	 15.2.
	  	No Implied Rights; Other Limitations	  	33
	 15.3.
	  	Termination, Amendment, and Modifications of Change of Control Provisions	  	33
	 15.4.
	  	Compliance with Code Section 409A	  	33
	  
 ARTICLE XVI. AMENDMENT, MODIFICATION, AND TERMINATION

	  	33
	 16.1.
	  	Amendment, Modification, and Termination	  	33
	 16.2.
	  	Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events	  	35
	  
 ARTICLE XVII. TAX WITHHOLDING AND OTHER TAX MATTERS

	  	35
	 17.1.
	  	Tax Withholding	  	35
	 17.2.
	  	Withholding or Tendering Shares	  	35
	 17.3.
	  	Restrictions	  	36
	 17.4.
	  	Special ISO Obligations	  	36
	 17.5.
	  	Section 83(b) Election	  	36
	 17.6.
	  	No Guarantee of Favorable Tax Treatment	  	36
	  
 ARTICLE XVIII. LIMITS OF LIABILITY; INDEMNIFICATION

	  	36
	 18.1.
	  	Limits of Liability	  	36
	 18.2.
	  	Indemnification	  	37
	  
 ARTICLE XIX. SUCCESSORS
	  	37

  

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	 19.1.
	  	General	  	37
	  
 ARTICLE XX. MISCELLANEOUS
	  	38
	 20.1.
	  	Drafting Context	  	38
	 20.2.
	  	Forfeiture Events	  	38
	 20.3.
	  	Severability	  	38
	 20.4.
	  	Transfer, Leave of Absence	  	39
	 20.5.
	  	Exercise and Payment of Awards	  	39
	 20.6.
	  	Deferrals	  	39
	 20.7.
	  	Loans	  	40
	 20.8.
	  	No Effect on Other Plans	  	40
	 20.9.
	  	Section 16 of Exchange Act and Code Section 162(m)	  	40
	 20.10.
	  	Requirements of Law; Limitations on Awards	  	40
	 20.11.
	  	Participants Deemed to Accept Plan	  	41
	 20.12.
	  	Governing Law	  	41
	 20.13.
	  	Plan Unfunded	  	42
	 20.14.
	  	Administration Costs	  	42
	 20.15.
	  	Uncertificated Shares	  	42
	 20.16.
	  	No Fractional Shares	  	42
	 20.17.
	  	Deferred Compensation	  	42
	 20.18.
	  	Employees Based Outside of the United States	  	42

  

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(v) 

 FIRST AMERICAN FINANCIAL CORPORATION 

2010 INCENTIVE COMPENSATION PLAN 

First American Financial Corporation, a Delaware corporation (the “Company”), has adopted First American Financial
Corporation 2010 Incentive Compensation Plan (the “Plan”) for the benefit of non-employee directors of the Company and officers and eligible employees of the Company and any Subsidiaries and Affiliates (as each term defined below),
as follows: 
 ARTICLE I. 

ESTABLISHMENT; PURPOSES; AND DURATION 

1.1. Establishment of the Plan. The Company hereby establishes this incentive compensation plan to be known as “First
American Financial Corporation 2010 Incentive Compensation Plan”, as set forth in this document. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock
Units, Performance Units, Performance Shares and Other Stock-Based Awards. The Plan was adopted by the Board of Directors (as defined below) on March 23, 2010 and approved by The First American Corporation, as the Company’s sole
shareholder, on March 23, 2010. For purposes of Section 422 of the Code and otherwise, the Plan became effective on March 23, 2010 (the “Effective Date”). The Plan shall remain in effect as provided in
Section 1.3. 
 1.2. Purposes of the Plan. The purposes of the Plan are to provide additional incentives to
non-employee directors of the Company and to those officers and employees of the Company, Subsidiaries and Affiliates whose substantial contributions are essential to the continued growth and success of the business of the Company and the
Subsidiaries and Affiliates, in order to strengthen their commitment to the Company and the Subsidiaries and Affiliates, and to attract and retain competent and dedicated individuals whose efforts will result in the long-term growth and
profitability of the Company and to further align the interests of such non-employee directors, officers and employees with the interests of the shareholders of the Company. To accomplish such purposes, the Plan provides that the Company may grant
Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and Other Stock-Based Awards. 

1.3. Duration of the Plan. The Plan shall commence on the Effective Date, as described in Section 1.1, and shall remain in
effect, subject to the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article XVII, until all Shares subject to it shall have been delivered, and any restrictions on such Shares have lapsed, pursuant to the
Plan’s provisions. However, in no event may an Award be granted under the Plan on or after ten years from the Effective Date. 

ARTICLE II.  

DEFINITIONS 

Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial
letter of the word shall be capitalized: 
  

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 2.1. “Affiliate” means any entity other than the Company and any Subsidiary
that is affiliated with the Company through stock or equity ownership or otherwise and is designated as an Affiliate for purposes of the Plan by the Committee; provided, however, that, notwithstanding any other provisions of the Plan
to the contrary, for purposes of NQSOs and SARs, if an individual who otherwise qualifies as an Employee or Non-Employee Director provides services to such an entity and not to the Company or a Subsidiary, such entity may only be designated an
Affiliate if the Company qualifies as a “service recipient,” within the meaning of Code Section 409A, with respect to such individual; provided further that such definition of “service recipient” shall be
determined by (a) applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled group of corporations under Code Section 414(b), using the language “at least 50 percent” instead of “at
least 80 percent” each place it appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury Regulations Section 1.414(c)-2, for purposes of determining trades or businesses (whether or not incorporated) that are
under common control for purposes of Code Section 414(c), using the language “at least 50 percent” instead of “at least 80 percent” each place it appears in Treasury Regulations Section 1.414(c)-2, and (b) where
the use of Shares with respect to the grant of an Option or SAR to such an individual is based upon legitimate business criteria, by applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled group of
corporations under Code Section 414(b), using the language “at least 20 percent” instead of “at least 80 percent” at each place it appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury
Regulations Section 1.414(c)-2, for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), using the language “at least 20 percent” instead of
“at least 80 percent” at each place it appears in Treasury Regulations Section 1.414(c)-2. 
 2.2.
“Award” means, individually or collectively, a grant under the Plan of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance
Units, and Other Stock-Based Awards. 
 2.3. “Award Agreement” means either: (a) a written agreement
setting forth the terms and provisions applicable to an Award granted under the Plan, or (b) a written or electronic instrument issued by the Company to a Participant describing the terms and provisions of such Award, including any amendment or
modification thereof. An Award Agreement may be in the form of an agreement to be executed by both the Participant and the Company (or an authorized representative of the Company) or certificates, notices or similar instruments as approved by the
Committee. The Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acknowledgement thereof, agreement thereto and actions thereunder by a
Participant. 
 2.4. “Beneficial Ownership” (including correlative terms) shall have the meaning given such
term in Rule 13d-3 promulgated under the Exchange Act. 
 2.5. “Board” or “Board of Directors”
means the Board of Directors of the Company. 
 2.6. “Cause” shall have the definition given such term in a
Participant’s Award Agreement, or in the absence of any such definition, as determined in good faith by the Committee. 
  

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 2.7. “Change of Control” means the occurrence of any of the following:

 (a) an acquisition in one transaction or a series of related transactions (other than directly from the
Company or pursuant to Awards granted under the Plan or compensatory options or other similar awards granted by the Company) by any Person of any Voting Securities of the Company, immediately after which such Person has Beneficial Ownership of fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change of Control has occurred pursuant to this Section 2.7(a),
Voting Securities of the Company which are acquired in a Non-Control Acquisition shall not constitute an acquisition that would cause a Change of Control; or 

(b) any Person acquires in one transaction or a series of related transactions (or has acquired during the twelve
(12)-month period ending on the date of the most recent acquisition by such Person) Beneficial Ownership of Voting Securities of the Company possessing thirty-five percent (35%) or more of the combined voting power of the Company’s then
outstanding Voting Securities; provided, however, that in determining whether a Change of Control has occurred pursuant to this Section 2.7(b), Voting Securities of the Company which are acquired in a Non-Control Acquisition shall
not constitute an acquisition that would cause a Change of Control; or 
 (c) the individuals who, immediately
prior to the Effective Date, are members of the Board (the “Company Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the election, or
nomination for election of any new director was approved by a vote of at least a majority of the Company Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Company Incumbent Board; provided
further, however, that no individual shall be considered a member of the Company Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described
in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Company Proxy Contest”) including by reason of any agreement
intended to avoid or settle any Election Contest or Company Proxy Contest; or 
 (d) the consummation of any
merger, consolidation, recapitalization or reorganization involving the Company unless: 
 (i) the shareholders
of the Company, immediately before such merger, consolidation, recapitalization or reorganization, own, directly or indirectly, immediately following such merger, consolidation, recapitalization or reorganization, more than fifty percent
(50%) of the combined voting power of the outstanding Voting Securities of the corporation resulting from such merger or consolidation or reorganization (the “Company Surviving Corporation”) in substantially the same proportion
as their ownership of the Voting Securities of the Company immediately before such merger, consolidation, recapitalization or reorganization; and 
  

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 (ii) the individuals who were members of the Company Incumbent Board
immediately prior to the execution of the agreement providing for such merger, consolidation, recapitalization or reorganization constitute at least a majority of the members of the board of directors of the Company Surviving Corporation, or a
corporation Beneficially Owning, directly or indirectly, a majority of the voting securities of the Company Surviving Corporation, and 

(iii) no Person, other than (A) the Company, (B) any Related Entity, (C) any employee benefit
plan (or any trust forming a part thereof) that, immediately prior to such merger, consolidation, recapitalization or reorganization, was maintained by the Company, the Company Surviving Corporation, or any Related Entity or (D) any Person who,
together with its Affiliates, immediately prior to such merger, consolidation, recapitalization or reorganization had Beneficial Ownership of fifty percent (50%) or more of the then outstanding Voting Securities of the Company, owns, together
with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Company Surviving Corporation’s then outstanding Voting Securities 

(a transaction described in clauses (d)(i) through (d)(iii) above is referred to herein as a “Non-Control Transaction”);
or 
 (e) any approval of any plan or proposal for the liquidation or dissolution of the Company; or 

(f) any sale, lease, exchange, transfer or other disposition (in one transaction or a series of related transactions) of
all or substantially all of the assets or business of the Company to any Person (other than (A) a transfer or distribution to a Related Entity, or (B) a transfer or distribution to the Company’s shareholders of the stock of a Related
Entity or any other assets). 
 Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because any Person (the
“Subject Person”) acquired Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company as a result of the acquisition of Voting Securities of the
Company by the Company which, by reducing the number of Voting Securities of the Company then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change of Control would occur
(but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company and (1) before such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Voting
Securities of the Company in a related transaction or (2) after such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Voting Securities of the Company which in either case increases the
percentage of the then outstanding Voting Securities of the Company Beneficially Owned by the Subject Person, then a Change of Control shall be deemed to occur. 
  

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 Solely for purposes of this Section 2.7, (1) “Affiliate” shall mean, with respect
to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control with, such Person, and (2) “control” (including with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether
through the ownership of voting securities or by contract or otherwise. Any Relative (for this purpose, “Relative” means a spouse, child, parent, parent of spouse, sibling or grandchild) of an individual shall be deemed to be an
Affiliate of such individual for this purpose. None of the Company or any Person controlled by the Company shall be deemed to be an Affiliate of any holder of Shares. 

For the avoidance of doubt, the formation of the Company as a wholly-owned subsidiary of The First American Corporation, the consummation of any or all
of the transactions contemplated by the Separation and Distribution Agreement between the Company and The First American Corporation, dated as of
                    , 2010 (the “Separation Agreement”) and any changes to the capital structure of the Company or the ownership of
the Voting Securities of the Company made prior to the time of the consummation of the distribution of the Company’s securities to the shareholders of The First American Corporation pursuant to the terms of the Separation Agreement, will not be
considered a Change of Control for purposes of this Plan. 
 2.8. “Code” means the Internal Revenue Code of
1986, as it may be amended from time to time, including rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 

2.9. “Committee” means the Compensation Committee of the Board of Directors or a subcommittee thereof, or such other
committee designated by the Board to administer the Plan. 
 2.10. “Company Incumbent Board” shall have the
meaning provided in Section 2.7(c). 
 2.11. “Company Proxy Contest” shall have the meaning provided in
Section 2.7(c). 
 2.12. “Company Surviving Corporation” has the meaning provided in
Section 2.7(d)(i). 
 2.13. “Covered Employee” means any Employee who is or may become a “covered
employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or a member of a class of Employees, by the Committee within the shorter of (i) ninety (90) days after the beginning of the
Performance Period, or (ii) the first twenty-five percent (25%) of the Performance Period, as a “Covered Employee” under the Plan for such applicable Performance Period. 

2.14. “Director” means any individual who is a member of the Board of Directors of the Company. 

2.15. “Disability” means the inability to engage in any substantial gainful occupation to which the relevant individual
is suited by education, training or experience, by 
  

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 reason of any medically determinable physical or mental impairment, which condition can be expected to
result in death or continues for a continuous period of not less than twelve (12) months; provided, however, that, for purposes of ISOs, “Disability” shall mean “permanent and total disability” as set forth in
Section 22(e)(3) of the Code. 
 2.16. “Dividend Equivalents” means the equivalent value (in cash or
Shares) of dividends that would otherwise be paid on the Shares subject to an Award but that have not been issued or delivered, as described in Article XII. 

2.17. “Effective Date” shall have the meaning ascribed to such term in Section 1.1. 

2.18. “Employee” means any person designated as an employee of the Company, a Subsidiary and/or an Affiliate on the
payroll records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company, a Subsidiary or an Affiliate as an independent contractor, a consultant, or any employee of an employment,
consulting, or temporary agency or any other entity other than the Company, a Subsidiary and/or an Affiliate without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a
common-law employee of the Company, a Subsidiary and/or an Affiliate during such period. As further provided in Section 20.4, for purposes of the Plan, upon approval by the Committee, the term Employee may also include Employees whose
employment with the Company, a Subsidiary or an Affiliate has been terminated subsequent to being granted an Award under the Plan. For the avoidance of doubt, a Director who would otherwise be an “Employee” within the meaning of this
Section 2.18 shall be considered an Employee for purposes of the Plan. 
 2.19. “Exchange Act” means the
Securities Exchange Act of 1934, as it may be amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 

2.20. “Fair Market Value” means the fair market value of the Shares as determined by the Committee by the reasonable
application of such reasonable valuation method, consistently applied, as the Committee deems appropriate; provided, however, that, with respect to ISOs, for purposes of Section 6.3 and 6.9(c), such fair market value shall be
determined subject to Section 422(c)(7) of the Code; provided further, however, that (a) if the Shares are readily tradable on an established securities market, Fair Market Value on any date shall be the last sale
price reported for the Shares on such market on such date or, if no sale is reported on such date, on the last date preceding such date on which a sale was reported, or (b) if the Shares are admitted for listing on the New York Stock Exchange
or other comparable market, Fair Market Value on any date shall be the last sale price reported for the Shares on such market on such date or, if no sale is reported on such date, on the last day preceding such date on which a sale was reported. In
each case, the Committee shall determine Fair Market Value in a manner that satisfies the applicable requirements of Code Section 409A. 

2.21. “Fiscal Year” means the calendar year, or such other consecutive twelve-month period as the Committee may select.

  

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 2.22. “Freestanding SAR” means a SAR that is granted independently of any
Options, as described in Article VII. 
 2.23. “Grant Price” means the price established at the time of grant
of a SAR pursuant to Article VII, used to determine whether there is any payment due upon exercise of the SAR. 
 2.24.
“Incentive Stock Option” or “ISO” means a right to purchase Shares under the Plan in accordance with the terms and conditions set forth in Article VI and which is designated as an Incentive Stock Option and which is
intended to meet the requirements of Section 422 of the Code. 
 2.25. “Insider” means an individual who
is, on the relevant date, an officer, director or ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in
accordance with Section 16 of the Exchange Act. 
 2.26. “Non-Control Acquisition” means an acquisition
(whether by merger, stock purchase, asset purchase or otherwise) by (a) an employee benefit plan (or a trust forming a part thereof) maintained by (i) the Company or (ii) any corporation or other Person of which fifty percent
(50%) or more of its total value or total voting power of its Voting Securities or equity interests is owned, directly or indirectly, by the Company (a “Related Entity”); (b) the Company or any Related Entity; (c) any
Person in connection with a Non-Control Transaction; or (d) any Person that owns, together with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of the outstanding Voting Securities of the Company on the Effective Date.

 2.27. “Non-Control Transaction” shall have the meaning provided in Section 2.7(d). 

2.28. “Non-Employee Director” means a Director who is not an Employee. 

2.29. “Nonqualified Stock Option” or “NQSO” means a right to purchase Shares under the Plan in
accordance with the terms and conditions set forth in Article VI and which is not intended to meet the requirements of Section 422 of the Code or otherwise does not meet such requirements. 

2.30. “Notice” means notice provided by a Participant to the Company in a manner prescribed by the Committee.

 2.31. “Option” or “Stock Option” means an Incentive Stock Option or a Nonqualified Stock
Option, as described in Article VI. 
 2.32. “Option Price” means the price at which a Share may be purchased
by a Participant pursuant to an Option. 
 2.33. “Other Stock-Based Award” means an equity-based or
equity-related Award described in Section 10.1, granted in accordance with the terms and conditions set forth in Article X. 
  

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 2.34. “Participant” means any eligible individual as set forth in Article V
who holds one or more outstanding Awards. 
 2.35. “Performance-Based Compensation” means compensation under an
Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which
does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A. 

2.36. “Performance Measure” means performance criteria or measures as described in Section 11.1 on which the
performance goals described in Article XI are based and which are approved by the Company’s shareholders pursuant to the Plan in order to qualify certain Awards as Performance-Based Compensation in accordance with Article XI. 

2.37. “Performance Period” means the period of time during which the performance goals must be met in order to determine
the degree of payout and/or vesting with respect to, or the amount or entitlement to, an Award. 
 2.38. “Performance
Share” means an Award of a performance share granted to a Participant, as described in Article IX. 
 2.39.
“Performance Unit” means an Award of a performance unit granted to a Participant, as described in Article IX. 

2.40. “Period of Restriction” means the period during which Shares of Restricted Stock or Restricted Stock Units are
subject to a substantial risk of forfeiture, and, in the case of Restricted Stock, the transfer of Shares of Restricted Stock is limited in some way, as provided in Article VIII. 

2.41. “Person” means “person” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange
Act, including any individual, corporation, limited liability company, partnership, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other entity or any group of persons. 

2.42. “Qualified Change of Control” means a Change of Control that qualifies as a change in the ownership or effective
control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code. 

2.43. “Related Entity” has the meaning provided in Section 2.26. 

2.44. “Restricted Stock” means an Award granted to a Participant pursuant to Article VIII. 

2.45. “Restricted Stock Unit” means an Award, whose value is equal to a Share, granted to a Participant pursuant to
Article VIII. 
  

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 2.46. “Retirement” means Termination of a Participant due to either
(a) retirement in accordance with any employee pension benefit plan maintained by the Company that is intended to satisfy the requirements of Section 401(a) of the Code entitling such Participant to a full pension under such plan or
(b) retirement with the consent of the Committee. 
 2.47. “Rule 16b-3” means Rule 16b-3 under the
Exchange Act, or any successor rule, as the same may be amended from time to time. 
 2.48. “Securities Act”
means the Securities Act of 1933, as it may be amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 

2.49. “Share” means a share of common stock, par value $0.00001 per share, of the Company (including any new, additional
or different stock or securities resulting from any change in corporate capitalization as listed in Section 4.3). 
 2.50.
“Stock Appreciation Right” or “SAR” means an Award, granted alone (a “Freestanding SAR”) or in connection with a related Option (a “Tandem SAR”), designated as a SAR, pursuant to
the terms of Article VII. 
 2.51. “Subject Person” has the meaning provided in Section 2.7. 

2.52. “Subsidiary” means any present or future corporation which is or would be a “subsidiary corporation” of
the Company as the term is defined in Section 424(f) of the Code. 
 2.53. “Substitute Awards” means
Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, options or other awards previously granted, or the right or obligation to grant future options or other awards, by a company acquired by the
Company, a Subsidiary and/or an Affiliate or with which the Company, a Subsidiary and/or an Affiliate combines, or otherwise in connection with any merger, consolidation, acquisition of property or stock, or reorganization involving the Company, a
Subsidiary or an Affiliate, including a transaction described in Code Section 424(a). 
 2.54. “Tandem
SAR” means a SAR that is granted in connection with a related Option pursuant to Article VII. 
 2.55.
“Termination” means the time when a Participant ceases the performance of services for the Company, any Affiliate or Subsidiary, as applicable, for any reason, with or without Cause, including a Termination by resignation,
discharge, death, Disability or Retirement, but excluding (a) a Termination where there is a simultaneous reemployment or continuing employment of a Participant by the Company, Affiliate or any Subsidiary, (b) at the discretion of the
Committee, a Termination that results in a temporary severance, and (c) at the discretion of the Committee, a Termination of an Employee that is immediately followed by the Participant’s service as a Non-Employee Director. Notwithstanding
any other provisions of the Plan or any Award Agreement to the contrary, a Termination shall not be deemed to have occurred for purposes of any provision the Plan or any Award Agreement providing for payment or distribution with respect to an Award
constituting deferred compensation subject to Code 
  

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 Section 409A upon or following a termination of employment unless such termination is also a
“separation from service” within the meaning of Code Section 409A. 
 2.56. “Voting Securities”
shall mean, with respect to any Person that is a corporation, all outstanding voting securities of such Person entitled to vote generally in the election of the board of directors of such Person. 

ARTICLE III. 

ADMINISTRATION 

3.1. General. The Committee shall have exclusive authority to operate, manage and administer the Plan in accordance with its terms
and conditions. Notwithstanding the foregoing, in its absolute discretion, the Board may at any time and from time to time exercise any and all rights, duties and responsibilities of the Committee under the Plan, including establishing procedures to
be followed by the Committee, but excluding matters which under any applicable law, regulation or rule, including any exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) or Section 162(m) of the Code, are required to
be determined in the sole discretion of the Committee. If and to the extent that the Committee does not exist or cannot function, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee, subject to
the limitations set forth in the immediately preceding sentence. Notwithstanding any other provision of the Plan to the contrary, any action or determination specifically affecting or relating to an Award granted to a Non-Employee Director shall be
taken or approved, by the Board or the Committee. 
 3.2. Committee. The members of the Committee shall be appointed from
time to time by, and shall serve at the discretion of, the Board of Directors. The Committee shall consist of not less than three (3) non-employee members of the Board, each of whom satisfies such criteria of independence as the Board may
establish and such additional regulatory or listing requirements as the Board may determine to be applicable or appropriate. Appointment of Committee members shall be effective upon their acceptance of such appointment. Committee members may be
removed by the Board at any time either with or without cause, and such members may resign at any time by delivering notice thereof to the Board. Any vacancy on the Committee, whether due to action of the Board or any other reason, shall be filled
by the Board. The Committee shall keep minutes of its meetings. A majority of the Committee shall constitute a quorum and a majority of a quorum may authorize any action. 

3.3. Authority of the Committee. The Committee shall have full discretionary authority to grant, pursuant to the terms of the
Plan, Awards to those individuals who are eligible to receive Awards under the Plan. Except as limited by law or by the Articles of Incorporation or Bylaws of the Company, and subject to the provisions herein, the Committee shall have full power, in
accordance with the other terms and provisions of the Plan, to: 
 (a) select Employees and Non-Employee
Directors who may receive Awards under the Plan and become Participants; 
 (b) determine eligibility for
participation in the Plan and decide all questions concerning eligibility for, and the amount of, Awards under the Plan; 
  

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 (c) determine the sizes and types of Awards; 

(d) determine the terms and conditions of Awards, including the Option Prices of Options and the Grant Prices of SARs;

 (e) grant Awards as an alternative to, or as the form of payment for grants or rights earned or payable under,
other bonus or compensation plans, arrangements or policies of the Company or a Subsidiary or Affiliate; 
 (f)
grant Substitute Awards on such terms and conditions as the Committee may prescribe, subject to compliance with the ISO rules under Code Section 422 and the nonqualified deferred compensation rules under Code Section 409A, where
applicable; 
 (g) make all determinations under the Plan concerning Termination of any Participant’s
employment or service with the Company or a Subsidiary or Affiliate, including whether such Termination occurs by reason of Cause, Disability or Retirement or in connection with a Change of Control and whether a leave constitutes a Termination;

 (h) construe and interpret the Plan and any agreement or instrument entered into under the Plan, including any
Award Agreement; 
 (i) establish and administer any terms, conditions, restrictions, limitations, forfeiture,
vesting or exercise schedule, and other provisions of or relating to any Award; 
 (j) establish and administer
any performance goals in connection with any Awards, including related Performance Measures or performance criteria and applicable Performance Periods, determine the extent to which any performance goals and/or other terms and conditions of an Award
are attained or are not attained, and certify whether, and to what extent, any such performance goals and other material terms applicable to Awards intended to qualify as Performance-Based Compensation were in fact satisfied; 

(k) construe any ambiguous provisions, correct any defects, supply any omissions and reconcile any inconsistencies in the
Plan and/or any Award Agreement or any other instrument relating to any Awards; 
 (l) establish, adopt, amend,
waive and/or rescind rules, regulations, procedures, guidelines, forms and/or instruments for the Plan’s operation or administration; 

(m) make all valuation determinations relating to Awards and the payment or settlement thereof; 

(n) grant waivers of terms, conditions, restrictions and limitations under the Plan or applicable to any Award, or
accelerate the vesting or exercisability of any Award; 
 (o) subject to the provisions of Article XVI, amend or
adjust the terms and conditions of any outstanding Award and/or adjust the number and/or class of shares of stock subject to any outstanding Award; 
  

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 (p) at any time and from time to time after the granting of an Award,
specify such additional terms, conditions and restrictions with respect to such Award as may be deemed necessary or appropriate to ensure compliance with any and all applicable laws or rules, including terms, restrictions and conditions for
compliance with applicable securities laws or listing rules, methods of withholding or providing for the payment of required taxes and restrictions regarding a Participant’s ability to exercise Options through a cashless (broker-assisted)
exercise; 
 (q) offer to buy out an Award previously granted, based on such terms and conditions as the
Committee shall establish with and communicate to the Participant at the time such offer is made; 
 (r)
determine whether, and to what extent and under what circumstances Awards may be settled in cash, Shares or other property or canceled or suspended; and 

(s) exercise all such other authorities, take all such other actions and make all such other determinations as it deems
necessary or advisable for the proper operation and/or administration of the Plan. 
 3.4. Award Agreements. The
Committee shall, subject to applicable laws and rules, determine the date an Award is granted. Each Award shall be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be combined in a single Award
Agreement. An Award Agreement shall not be a precondition to the granting of an Award; provided, however, that (a) the Committee may, but need not, require as a condition to any Award Agreement’s effectiveness, that such
Award Agreement be executed on behalf of the Company and/or by the Participant to whom the Award evidenced thereby shall have been granted (including by electronic signature or other electronic indication of acceptance), and such executed Award
Agreement be delivered to the Company, and (b) no person shall have any rights under any Award unless and until the Participant to whom such Award shall have been granted has complied with the applicable terms and conditions of the Award. The
Committee shall prescribe the form of all Award Agreements, and, subject to the terms and conditions of the Plan, shall determine the content of all Award Agreements. Any Award Agreement may be supplemented or amended in writing from time to time as
approved by the Committee; provided that the terms and conditions of any such Award Agreement as supplemented or amended are not inconsistent with the provisions of the Plan. In the event of any dispute or discrepancy concerning the terms of
an Award, the records of the Committee or its designee shall be determinative. 
 3.5. Discretionary Authority; Decisions
Binding. The Committee shall have full discretionary authority in all matters related to the discharge of its responsibilities and the exercise of its authority under the Plan. All determinations, decisions, actions and interpretations by the
Committee with respect to the Plan and any Award Agreement, and all related orders and resolutions of the Committee shall be final, conclusive and binding on all Participants, the Company and its shareholders, any Subsidiary or Affiliate and all
persons having or claiming to have any right or interest in or under the Plan and/or any Award Agreement. The Committee shall consider such factors as it deems relevant to making or taking such decisions, determinations, actions and interpretations,
including the recommendations or advice of any 
  

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 Director or officer or employee of the Company, any director, officer or employee of a Subsidiary or
Affiliate and such attorneys, consultants and accountants as the Committee may select. A Participant or other holder of an Award may contest a decision or action by the Committee with respect to such person or Award only on the grounds that such
decision or action was arbitrary or capricious or was unlawful, and any review of such decision or action shall be limited to determining whether the Committee’s decision or action was arbitrary or capricious or was unlawful. 

3.6. Attorneys; Consultants. The Committee may consult with counsel who may be counsel to the Company. The Committee may, with the
approval of the Board, employ such other attorneys and/or consultants, accountants, appraisers, brokers, agents and other persons, any of whom may be an Employee, as the Committee deems necessary or appropriate. The Committee, the Company and its
officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall not incur any liability for any action taken in good faith in reliance upon the advice of such counsel or other
persons. 
 3.7. Delegation of Administration. Except to the extent prohibited by applicable law, including any
applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) or Section 162(m) of the Code, or the applicable rules of a stock exchange, the Committee may, in its discretion, allocate all or any portion of its
responsibilities and powers under this Article III to any one or more of its members and/or delegate all or any part of its responsibilities and powers under this Article III to any person or persons selected by it; provided, however,
that the Committee may not delegate its authority to correct defects, omissions or inconsistencies in the Plan. Any such authority delegated or allocated by the Committee under this Section 3.7 shall be exercised in accordance with the terms
and conditions of the Plan and any rules, regulations or administrative guidelines that may from time to time be established by the Committee, and any such allocation or delegation may be revoked by the Committee at any time. 

ARTICLE IV. 

SHARES SUBJECT TO THE PLAN AND ANNUAL AWARD LIMITS 

4.1. Number of Shares Available for Grants. The shares of stock subject to Awards granted under the Plan shall be Shares. Such
Shares subject to the Plan may be either authorized and unissued shares (which will not be subject to preemptive rights) or previously issued shares acquired by the Company or any Subsidiary. Subject to adjustment as provided in Section 4.3,
the total number of Shares that may be delivered pursuant to Awards under the Plan shall be sixteen million (16,000,000) Shares. If (a) any Shares are subject to an Option, SAR, or other Award which for any reason expires or is terminated
or canceled without having been fully exercised, or are subject to any Restricted Stock Award (including any Shares subject to a Participant’s Restricted Stock Award that are repurchased by the Company at the Participant’s cost),
Restricted Stock Unit Award or other Award granted under the Plan which are forfeited, or (b) any Award based on Shares is settled for cash, expires or otherwise terminates without the issuance of such Shares, the Shares subject to any such
Award shall, to the extent of any such expiration, termination, cancellation, forfeiture or cash settlement, be available for delivery in connection with future Awards under the Plan; provided, however, that (i) all Shares covered
by a SAR, to the extent that it is exercised, and whether or not Shares are actually issued to the 
  

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 Participant upon exercise of the SAR and (ii) all Shares withheld by the Company to pay the exercise
price of an Option and/or the withholding taxes related an Award shall reduce the total number of Shares available for delivery under the Plan. Any Shares delivered under the Plan upon exercise or satisfaction of Substitute Awards shall not reduce
the Shares available for delivery under the Plan; provided, however, that the total number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan shall be the number of Shares set forth in the first
sentence of this Section 4.1, as adjusted pursuant to this Section 4.1, but without application of the foregoing provisions of this sentence. 

4.2. Annual Award Limits. The following limits shall apply to grants of all Awards under the Plan: 

(a) Options: The maximum aggregate number of Shares that may be subject to Options granted in any one Fiscal Year
to any one Participant shall be five hundred thousand (500,000) Shares. 
 (b) SARs: The maximum
aggregate number of Shares that may be subject to Stock Appreciation Rights granted in any one Fiscal Year to any one Participant shall be five hundred thousand (500,000) Shares. Any Shares covered by Options which include Tandem SARs granted
to one Participant in any Fiscal Year shall reduce this limit on the number of Shares subject to SARs that can be granted to such Participant in such Fiscal Year. 

(c) Restricted Stock or Restricted Stock Units: The maximum aggregate number of Shares that may be subject to
Awards of Restricted Stock or Restricted Stock Units granted in any one Fiscal Year to any one Participant shall be one hundred twenty-five (125,000) Shares. 

(d) Performance Shares or Performance Units: The maximum aggregate grant with respect to Awards of Performance
Shares or Performance Units granted in any one Fiscal Year to any one Participant shall be one hundred twenty-five (125,000) Shares. 

(e) Other Stock-Based Awards: The maximum aggregate grant with respect to Other Stock-Based Awards made in any one
Fiscal Year to any one Participant shall be one hundred twenty-five (125,000) Shares (or cash amounts based on the value of such number of Shares). 

To the extent required by Section 162(m) of the Code, Shares subject to Options or SARs which are canceled shall continue to be counted against the
limits set forth in paragraphs (a) and (b) immediately preceding. 
 4.3. Adjustments in Authorized Shares. In
the event of any corporate event or transaction (including a change in the Shares 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,
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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 shareholders of the
Company, or any similar corporate event or transaction, the Committee, in order to prevent dilution or enlargement of Participants’ rights under the Plan, shall substitute or adjust, as applicable, the number, class and kind of securities which
may be delivered under Section 4.1; the number, class and kind, and/or price (such as the Option Price of Options or the Grant Price of SARs) of securities subject to outstanding Awards; the Award limits set forth in Section 4.2; and other
value determinations applicable to outstanding Awards; provided, however, that the number of Shares subject to any Award shall always be a whole number. The Committee shall also make appropriate adjustments and modifications in the
terms of any outstanding Awards to reflect or related to any such events, adjustments, substitutions or changes, including modifications of performance goals and changes in the length of Performance Periods, subject to the requirements of Article XI
in the case of Awards intended to qualify as Performance-Based Compensation. Any adjustment, substitution or change pursuant to this Section 4.3 made with respect to an Award intended to be an Incentive Stock Option shall be made only to the
extent consistent with such intent, unless the Committee determines otherwise, and any such adjustment that is made with respect to an Award that provides for Performance-Based Compensation shall be made consistent with the intent that such Award
qualify for the performance-based compensation exception under Section 162(m) of the Code. The Committee shall not make any adjustment pursuant to this Section 4.3 that would cause an Award that is otherwise exempt from Code
Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. All determinations of the Committee as to
adjustments or changes, if any, under this Section 4.3 shall be conclusive and binding on the Participants. 
 4.4. No
Limitation on Corporate Actions. The existence of the Plan and any Awards granted hereunder shall not affect in any way the right or power of the Company, any Subsidiary or any Affiliate 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, 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 Committee,
(i) the issuance by the Company of Shares 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 therefor, 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, or (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 subject to Awards theretofore granted or the Option Price, Grant Price or purchase price per share
applicable to any Award, unless the Committee shall determine, in its discretion, that an adjustment is necessary or appropriate. 
  

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 ARTICLE V. 

ELIGIBILITY AND PARTICIPATION 

5.1. Eligibility. Employees and Non-Employee Directors shall be eligible to become Participants and receive Awards in accordance
with the terms and conditions of the Plan, subject to the limitations on the granting of ISOs set forth in Section 6.9(a), the granting of SARs set forth in Section 7.1 and the granting of Performance Units and Performance Shares set forth
in Section 9.1. 
 5.2. Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to
time, select Participants from all eligible Employees and Non-Employee Directors and shall determine the nature and amount of each Award. 

ARTICLE VI. 

STOCK OPTIONS 

6.1. Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such number, and
upon such terms, and at any time and from time to time as shall be determined by the Committee. The Committee may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Committee or automatically
upon the occurrence of specified events, including the achievement of performance goals, the satisfaction of an event or condition within the control of the recipient of the Option or within the control of others. The granting of an Option shall
take place when the Committee by resolution, written consent or other appropriate action determines to grant such Option for a particular number of Shares to a particular Participant at a particular Option Price. 

6.2. Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum
duration of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable and such other provisions as the Committee shall determine, which are not inconsistent with the terms of the
Plan; provided that if an Award Agreement does not contain exercisability criteria, the Option governed by such Award Agreement shall become exercisable in equal parts on each of the first five (5) anniversaries of the date on which the
Option was granted, subject to the other terms and conditions of the Award Agreement and the Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or an NQSO. To the extent that any Option does not qualify as an
ISO (whether because of its provisions or the time or manner of its exercise or otherwise), such Option, or the portion thereof which does not so qualify, shall constitute a separate NQSO. 

6.3. Option Price. The Option Price for each Option shall be determined by the Committee and set forth in the Award Agreement;
provided that, subject to Section 6.9(c), the Option Price of an Option shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted; provided further, that
Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3, in the form of stock options, shall have an Option Price per Share that is intended to maintain the economic value of the Award that was replaced
or adjusted, as determined by the Committee. 
  

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 6.4. Duration of Options. Each Option granted to a Participant
shall expire at such time as the Committee shall determine at the time of grant and set forth in the Award Agreement; provided, however, that no Option shall be exercisable later than the tenth
(10th) anniversary of its date of grant, subject to
the respective last sentences of Sections 6.5 and 6.9(c). 
 6.5. Exercise of Options. Options shall be exercisable at
such times and be subject to such restrictions and conditions as the Committee shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option or Participant. An Agreement may
provide that the period of time over which an Option other than an ISO may be exercised shall be automatically extended if on the scheduled expiration date of such Option the Optionee’s exercise of such Option would violate applicable
securities laws; provided, however, that during such extended exercise period the Option may only be exercised to the extent the Option was exercisable in accordance with its terms immediately prior to such scheduled expiration date;
provided further, however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such Option first would no longer violate such laws. 

6.6. Payment. Options shall be exercised by the delivery of a written notice of exercise to the Company, in a form specified or
accepted by the Committee, or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for such
Shares, which shall include applicable taxes, if any, in accordance with Article XVII. The Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) subject to such terms,
conditions and limitations as the Committee may prescribe, by tendering (either by actual delivery or attestation) unencumbered Shares previously acquired by the Participant exercising such Option having an aggregate Fair Market Value at the time of
exercise equal to the total Option Price, (c) by a combination of (a) and (b); or (d) by any other method approved or accepted by the Committee in its sole discretion, including, if the Committee so determines, a cashless
(broker-assisted) exercise that complies with all applicable laws and/or by the Company withholding of Shares otherwise deliverable upon exercise of such Option. Subject to any governing rules or regulations, as soon as practicable after receipt of
a written notification of exercise and full payment in accordance with the preceding provisions of this Section 6.6, the Company shall deliver to the Participant exercising an Option, in the Participant’s name, evidence of book entry
Shares, or, upon the Participant’s request, Share certificates, in an appropriate amount based upon the number of Shares purchased under the Option, subject to Section 20.10. Unless otherwise determined by the Committee, all payments under
all of the methods described above shall be paid in United States dollars. 
 6.7. Rights as a Shareholder. No
Participant or other person shall become the beneficial owner of any Shares subject to an Option, nor have any rights to dividends or other rights of a shareholder with respect to any such Shares, until the Participant has actually received such
Shares following exercise of his or her Option in accordance with the provisions of the Plan and the applicable Award Agreement. 

6.8. Termination of Employment or Service. Except as otherwise provided in the Award Agreement, an Option may be exercised only to
the extent that it is then exercisable, and 
  

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if at all times during the period beginning with the date of granting of such Option and ending on the date of exercise of such Option the Participant is an Employee or Non-Employee Director, and
shall terminate immediately upon a Termination of the Participant. 
 Notwithstanding the immediately foregoing paragraph, an
Option may only be exercised following Termination as provided below in this Section 6.8, unless otherwise provided by the Committee or in the Award Agreement: 

(a) In the event a Participant ceases to be an Employee because of Retirement or ceases to be a Non-Employee Director
because of voluntary resignation, the Participant shall have the right to exercise his or her Option, to the extent exercisable as of the date of such Retirement or voluntary resignation, respectively, at any time within one (1) year after
Retirement or voluntary resignation, respectively. 
 (b) In the event a Participant ceases to be an Employee or
Non-Employee Director due to Disability, the Option held by the Participant may be exercised, to the extent exercisable as of the date of such Termination, at any time within one (1) year after such Termination. 

(c) In the event a Participant’s employment with the Company or any Affiliate or Subsidiary or a
Participant’s rendering of services as a Non-Employee Director to the Company ceases for reasons other than those described in subsections (a) or (b) immediately above and not due to Termination for Cause, his or her Option, to the
extent exercisable as of the date of such Termination, may be exercised at any time prior to the first
(1st) anniversary of the date of such Termination.

 (d) In the event a Participant dies either while an Employee or Non-Employee Director or after Termination
under circumstances described in subsections (a), (b) or (c) immediately above within the applicable time period described therein, any Options held by such Participant, to the extent such Options would have been exercisable in accordance
with the applicable subsection of this Section 6.8 as of the date of the Participant’s death, may be exercised at any time within one (1) year after the Participant’s death by the Participant’s beneficiary or the executors
or administrators of the Participant’s estate or by any person or persons who shall have acquired the Option directly from the Participant by bequest or inheritance, in accordance herewith. 

Notwithstanding the foregoing provisions of this Section 6.8 to the contrary, the Committee may determine in its discretion that an Option may be
exercised following any such Termination, whether or not exercisable at the time of such Termination. Subsections (a), (b), (c) and (d) of this Section 6.8, and the immediately preceding sentence, shall be subject to the condition
that, except as otherwise provided by the Committee, no Option may be exercised after a Participant’s Termination for Cause or after the expiration date of such Option specified in the applicable Award Agreement. 

6.9. Limitations on Incentive Stock Options. 

(a) General. No ISO shall be granted to any individual otherwise eligible to participate in the Plan who is not an
Employee of the Company or a Subsidiary on the 
  

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date of granting of such Option. Any ISO granted under the Plan shall contain such terms and conditions, consistent with the Plan, as the Committee may determine to be necessary to qualify such
Option as an “incentive stock option” under Section 422 of the Code. Any ISO granted under the Plan may be modified by the Committee to disqualify such Option from treatment as an “incentive stock option” under
Section 422 of the Code. 
 (b) $100,000 Per Year Limitation. Notwithstanding any intent to grant
ISOs, an Option granted under the Plan will not be considered an ISO to the extent that it, together with any other “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to subsection (d) of
such Section) under the Plan and any other “incentive stock option” plans of the Company, any Subsidiary and any “parent corporation” of the Company within the meaning of Section 424(e) of the Code, are exercisable for the
first time by any Participant during any calendar year with respect to Shares having an aggregate Fair Market Value in excess of $100,000 (or such other limit as may be required by the Code) as of the time the Option with respect to such Shares is
granted. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in which they were granted. 

(c) Options Granted to Certain Shareholders. No ISO shall be granted to an individual otherwise eligible to
participate in the Plan who owns (within the meaning of Section 424(d) of the Code), at the time the Option is granted, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or a Subsidiary
or any “parent corporation” of the Company within the meaning of Section 424(e) of the Code. This restriction does not apply if at the time such ISO is granted the Option Price of the ISO is at least 110% of the Fair Market Value of a
Share on the date such ISO is granted, and the ISO by its terms is not exercisable after the expiration of five years from such date of grant. 

6.10. No Repricing. Notwithstanding anything in the Plan to the contrary, no Option may be repriced, regranted through
cancellation, or otherwise amended to reduce the Option Price applicable thereto (other than with respect to adjustments described in Section 4.3) without the approval of the Company’s shareholders to the extent required by the listing
requirements of any national securities exchange on which the Company’s securities are then actively traded. 
 ARTICLE VII.

 STOCK APPRECIATION RIGHTS 

7.1. Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants other than Non-Employee
Directors at any time and from time to time as shall be determined by the Committee. The Committee may grant a SAR (a) in connection and simultaneously with the grant of an Option (a Tandem SAR) or (b) independent of, and unrelated to, an
Option (a Freestanding SAR). The Committee shall have complete discretion in determining the number of Shares to which a SAR pertains (subject to Article IV) and, consistent with the provisions of the Plan, in determining the terms and conditions
pertaining to any SAR. The 
  

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terms and conditions of SARs shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all SARs or all Participants receiving such SARs. 

7.2. Grant Price. The Grant Price for each SAR shall be determined by the Committee and set forth in the Award Agreement,
subject to the limitations of this Section 7.2. The Grant Price for each Freestanding SAR shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date such Freestanding SAR is granted, except in the
case of Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3. The Grant Price of a Tandem SAR shall be equal to the Option Price of the related Option. 

7.3. Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the
surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR shall be exercisable only when and to the extent the related Option is exercisable and may be exercised only with respect to the Shares for which the
related Option is then exercisable. A Tandem SAR shall entitle a Participant to elect, in the manner set forth in the Plan and the applicable Award Agreement, in lieu of exercising his or her unexercised related Option for all or a portion of the
Shares for which such Option is then exercisable pursuant to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the Company in exchange therefor a payment described in Section 7.7.
An Option with respect to which a Participant has elected to exercise a Tandem SAR shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to the Company. Such Option shall thereafter remain exercisable
according to its terms only with respect to the number of Shares as to which it would otherwise be exercisable, less the number of Shares with respect to which such Tandem SAR has been so exercised. Notwithstanding any other provision of the Plan to
the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of the related ISO; (b) the value of the payment with respect to the Tandem SAR may not exceed the
difference between the Fair Market Value of the Shares subject to the related ISO at the time the Tandem SAR is exercised and the Option Price of the related ISO; and (c) the Tandem SAR may be exercised only when the Fair Market Value of the
Shares subject to the ISO exceeds the Option Price of the ISO. 
 7.4. Exercise of Freestanding SARs. Freestanding SARs
may be exercised upon whatever terms and conditions the Committee, in its sole discretion, in accordance with the Plan, determines and sets forth in the Award Agreement. 

7.5. Award Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the number of Shares to which the
SAR pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance with the Plan. 

7.6. Term of SARs. The term of a SAR granted under the Plan shall be determined by the Committee, in its sole discretion;
provided, however, that the term of any Tandem SAR shall be the same as the related Option and no SAR shall be exercisable more than ten (10) years after it is granted, subject to the last sentence of Section 6.5 in the case
of a Tandem SAR. 
  

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 7.7. Payment of SAR Amount. An election to exercise SARs shall be deemed to have been
made on the date of Notice of such election to the Company. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 

(a) The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price of the SAR; by 

(b) The number of Shares with respect to which the SAR is exercised. 

Notwithstanding the foregoing provisions of this Section 7.7 to the contrary, the Committee may establish and set forth in the applicable Award
Agreement a maximum amount per Share that will be payable upon the exercise of a SAR. At the discretion of the Committee, such payment upon exercise of a SAR shall be in cash, in Shares of equivalent Fair Market Value, or in some combination
thereof. 
 7.8. Rights as a Shareholder. A Participant receiving a SAR shall have the rights of a Shareholder only as to
Shares, if any, actually issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to
which such Award relates but which are not actually issued to such Participant. 
 7.9. Termination of Employment or
Service. Each SAR Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following such Participant’s Termination, subject to Section 6.8, as applicable to any Tandem SAR. Such
provisions shall be determined in the sole discretion of the Committee, need not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 

7.10. No Repricing. Notwithstanding anything in the Plan to the contrary, no SAR may be repriced, regranted through cancellation,
or otherwise amended to reduce the Grant Price applicable thereto (other than with respect to adjustments described in Section 4.3) without the approval of the Company’s shareholders to the extent required by the listing requirements of
any national securities exchange on which the Company’s securities are then actively traded. 
 ARTICLE VIII. 

RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

8.1. Awards of Restricted Stock and Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any
time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Subject to the terms and conditions of this Article VIII and the Award Agreement, upon
delivery of Shares of Restricted Stock to a Participant, or creation of a book entry evidencing a Participant’s ownership of Shares of Restricted Stock, pursuant to Section 8.6, the Participant shall have all of the rights of a shareholder
with respect to such Shares, subject to the terms and restrictions set forth in this Article VIII or the applicable Award Agreement or as determined by the Committee. Restricted Stock Units shall be similar to Restricted Stock, except no Shares are
actually awarded to a Participant who is granted Restricted Stock Units on the date 
  

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of grant, and such Participant shall have no rights of a shareholder with respect to such Restricted Stock Units. 

8.2. Award Agreement. Each Restricted Stock and/or Restricted Stock Unit Award shall be evidenced by an Award Agreement that shall
specify the Period of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine in accordance with the Plan. 

8.3. Nontransferability of Restricted Stock. Except as provided in this Article VIII, Shares of Restricted Stock may not be sold,
transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of until the end of the applicable Period of Restriction established by the Committee and specified in the Restricted Stock Award Agreement. 

8.4. Period of Restriction and Other Restrictions. The Period of Restriction shall lapse based on continuing service as a
Non-Employee Director or continuing employment with the Company, a Subsidiary or an Affiliate, the achievement of performance goals, the satisfaction of other conditions or restrictions or upon the occurrence of other events, in each case, as
determined by the Committee, at its discretion, and stated in the Award Agreement. 
 8.5. Delivery of Shares, Payment of
Restricted Stock Units. Subject to Section 20.10, after the last day of the Period of Restriction applicable to a Participant’s Shares of Restricted Stock, and after all conditions and restrictions applicable to such Shares of
Restricted Stock have been satisfied or lapse (including satisfaction of any applicable withholding tax obligations), pursuant to the applicable Award Agreement, such Shares of Restricted Stock shall become freely transferable by such Participant.
After the last day of the Period of Restriction applicable to a Participant’s Restricted Stock Units, and after all conditions and restrictions applicable to Restricted Stock Units have been satisfied or lapse (including satisfaction of any
applicable withholding tax obligations), pursuant to the applicable Award Agreement, such Restricted Stock Units shall be settled by delivery of Shares, a cash payment determined by reference to the then-current Fair Market Value of Shares or a
combination of Shares and such cash payment as the Committee, in its sole discretion, shall determine, either by the terms of the Award Agreement or otherwise. 

8.6. Forms of Restricted Stock Awards. Each Participant who receives an Award of Shares of Restricted Stock shall be issued a
stock certificate or certificates evidencing the Shares covered by such Award registered in the name of such Participant, which certificate or certificates may contain an appropriate legend. The Committee may require a Participant who receives a
certificate or certificates evidencing a Restricted Stock Award to immediately deposit such certificate or certificates, together with a stock power or other appropriate instrument of transfer, endorsed in blank by the Participant, with signatures
guaranteed in accordance with the Exchange Act if required by the Committee, with the Secretary of the Company or an escrow holder as provided in the immediately following sentence. The Secretary of the Company or such escrow holder as the Committee
may appoint shall retain physical custody of each certificate representing a Restricted Stock Award until the Period of Restriction and any other restrictions imposed by the Committee or under the Award Agreement with respect to the Shares evidenced
by such certificate expire or shall have been removed. The foregoing to the contrary 
  

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notwithstanding, the Committee may, in its discretion, provide that a Participant’s ownership of Shares of Restricted Stock prior to the lapse of the Period of Restriction or any other
applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a computerized or manual entry) in the records of the Company or its designated agent in the name of the Participant who has received
such Award. Such records of the Company or such agent shall, absent manifest error, be binding on all Participants who receive Restricted Stock Awards evidenced in such manner. The holding of Shares of Restricted Stock by the Company or such an
escrow holder, or the use of book entries to evidence the ownership of Shares of Restricted Stock, in accordance with this Section 8.6, shall not affect the rights of Participants as owners of the Shares of Restricted Stock awarded to them, nor
affect the restrictions applicable to such shares under the Award Agreement or the Plan, including the Period of Restriction. 

8.7. Voting Rights. Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the
extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction. A Participant
shall have no voting rights with respect to any Restricted Stock Units. 
 8.8. Dividends and Other Distributions. During
the Period of Restriction, Participants holding Shares of Restricted Stock shall be credited with any cash dividends paid with respect to such Shares while they are so held, unless determined otherwise by the Committee and set forth in the Award
Agreement. The Committee may apply any restrictions to such dividends that the Committee deems appropriate. Except as set forth in the Award Agreement, in the event of (a) any adjustment as provided in Section 4.3, or (b) any shares
or securities are received as a dividend, or an extraordinary dividend is paid in cash, on Shares of Restricted Stock, any new or additional Shares or securities or any extraordinary dividends paid in cash received by a recipient of Restricted Stock
shall be subject to the same terms and conditions, including the Period of Restriction, as relate to the original Shares of Restricted Stock. 

8.9. Termination of Employment or Service. Except as otherwise provided in this Section 8.9, during the Period of
Restriction, any Restricted Stock Units and/or Shares of Restricted Stock held by a Participant shall be forfeited and revert to the Company (or, if Shares of Restricted Sock were sold to the Participant, the Participant shall be required to resell
such Shares to the Company at cost) upon the Participant’s Termination or the failure to meet or satisfy any applicable performance goals or other terms, conditions and restrictions to the extent set forth in the applicable Award Agreement.
Each applicable Award Agreement shall set forth the extent to which, if any, the Participant shall have the right to retain Restricted Stock Units and/or Shares of Restricted Stock following such Participant’s Termination. Such provisions shall
be determined in the sole discretion of the Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or
circumstances of, such Termination. 
 8.10. Compliance With Code Section 409A. Unless the Committee provides
otherwise in an Award Agreement, each Restricted Stock Unit shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first calendar year in which the Restricted Stock Unit is no longer subject
to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement 
  

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that a Restricted Stock Unit is intended to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A.

 ARTICLE IX. 

PERFORMANCE UNITS AND PERFORMANCE SHARES 

9.1. Grant of Performance Units and Performance Shares. Subject to the terms of the Plan, Performance Units and/or Performance
Shares may be granted to Participants other than Non-Employee Directors in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee, in accordance with the Plan. A Performance Unit or
Performance Share entitles the Participant who receives such Award to receive Shares or cash upon the attainment of performance goals and/or satisfaction of other terms and conditions determined by the Committee when the Award is granted and set
forth in the Award Agreement. Such entitlements of a Participant with respect to his or her outstanding Performance Unit or Performance Share shall be reflected by a bookkeeping entry in the records of the Company, unless otherwise provided by the
Award Agreement. The terms and conditions of such Awards shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such Awards. 

9.2. Value of Performance Units and Performance Shares. Each Performance Unit shall have an initial value that is established by
the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion which, depending on the extent to
which they are met, will determine the number and/or value of Performance Units and Performance Shares that will be paid out to the Participant. 

9.3. Earning of Performance Units and Performance Shares. Subject to the terms of the Plan, after the applicable Performance
Period has ended, the holder of Performance Units or Performance Shares shall be entitled to receive payment on the number and value of Performance Units or Performance Shares earned by the Participant over the Performance Period, to be determined
as a function of the extent to which the corresponding performance goals and/or other terms and conditions have been achieved or satisfied. The Committee shall determine the extent to which any such pre-established performance goals and/or other
terms and conditions of a Performance Unit or Performance Share are attained or not attained following conclusion of the applicable Performance Period. The Committee may, in its discretion, waive any such performance goals and/or other terms and
conditions relating to any such Award not intended to qualify as Performance-Based Compensation. 
 9.4. Form and Timing of
Payment of Performance Units and Performance Shares. Payment of earned Performance Units and Performance Shares shall be as determined by the Committee and as set forth in the Award Agreement. Subject to the terms of the Plan, the Committee, in
its sole discretion, may pay earned Performance Units and Performance Shares in the form of cash or in Shares (or in a combination thereof) which have an aggregate Fair Market Value equal to the value of the earned Performance Units or Performance
Shares as soon as practicable after the end of the Performance Period and following the Committee’s determination of actual performance against the performance goals and/or other terms and conditions 

 

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established by the Committee. Such Shares may be granted subject to any restrictions imposed by the Committee, including pursuant to Section 20.10. The determination of the Committee with
respect to the form of payment of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 

9.5. Rights as a Shareholder. A Participant receiving a Performance Unit or Performance Share shall have the rights of a
shareholder only as to Shares, if any, actually received by the Participant upon satisfaction or achievement of the terms and conditions of such Award and not with respect to Shares subject to the Award but not actually issued to such Participant.

 9.6. Termination of Employment or Service. Each Award Agreement shall set forth the extent to which the Participant
shall have the right to retain Performance Units and/or Performance Shares following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the applicable Award
Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 

9.7. Compliance With Code Section 409A. Unless the Committee provides otherwise in an Award Agreement, each Performance Unit
and/or Performance Share that is considered deferred compensation subject to the requirements of Code Section 409A shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first calendar
year in which such Award is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Performance Share or Performance Unit is intended to
be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A. 

ARTICLE X. 

OTHER STOCK-BASED AWARDS 

10.1. Other Stock-Based Awards. The Committee may grant types of equity-based or equity-related Awards not otherwise described by
the terms of the Plan (including the grant or offer for sale of unrestricted Shares), in such amounts (subject to Article IV) and subject to such terms and conditions, as the Committee shall determine. Such Other Stock-Based Awards may involve the
transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United
States. The terms and conditions of such Awards shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such Awards. 

10.2. Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on
Shares, as determined by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals shall be set forth in the applicable Award Agreement. If the Committee exercises its discretion to establish
performance goals, the number and/or value of Other Stock-Based Awards 
  

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that will be paid out to the Participant will depend on the extent to which such performance goals are met. 

10.3. Payment of Other Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance
with the terms of the Award, as set forth in the Award Agreement, in cash or Shares as the Committee determines. 
 10.4.
Termination of Employment or Service. The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based Awards following the Participant’s Termination. Such provisions shall be determined
in the sole discretion of the Committee, such provisions may be included in the applicable Award Agreement, but need not be uniform among all Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for
Termination. 
 10.5. Compliance With Code Section 409A. Unless the Committee provides otherwise in an Award
Agreement, each Other Stock-Based Award that is considered deferred compensation subject to the requirements of Code Section 409A shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the
first calendar year in which the Other Stock-Based Award is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement that an Other Stock-Based
Award is intended to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A. 

ARTICLE XI. 

PERFORMANCE MEASURES 

11.1. Performance Measures. The objective performance goals upon which the granting, payment and/or vesting of Awards to Covered
Employees that are intended to qualify as Performance-Based Compensation may occur shall be based on any one or more of the following Performance Measures selected by the Committee: 

(a) Earnings per share; 

(b) Net earnings or net income (before or after taxes); 

(c) Net sales or revenue; 

(d) Net operating profit; 

(e) Return measures (including return on assets, capital, invested capital, equity, sales or revenue); 

(f) Cash flow (including operating cash flow, free cash flow, cash flow return on equity and cash flow return on
investment); 
 (g) Earnings before or after interest, taxes, depreciation and/or amortization; 

(h) Gross or operating margins; 
  

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 (i) Productivity ratios; 

(j) Revenue growth; 

(k) Expenses; 

(l) Margins; 

(m) Operating efficiency; 

(n) Customer satisfaction; 

(o) Working capital; 

(p) Market share; 

(q) Share price (including growth measures, market capitalization, total shareholder return and return relative to market
indices); and 
 (r) Economic value added or EVA (net operating profit after tax minus capital multiplied by the
cost of capital). 
 Such performance goals shall be established by the Committee within the time period prescribed by, and shall otherwise
comply with the requirements of, Code Section 162(m)(4)(C), or any successor provision thereto, and the regulations thereunder, for performance-based compensation, and may be set forth in the applicable Award Agreement. Any Performance Measures
may be used to measure the performance of the Company, its Affiliates, and/or Subsidiaries as a whole or any business unit of the Company, its Affiliates, and/or Subsidiaries or any combination thereof, as the Committee may deem appropriate, or any
of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure
(g) above as compared to various stock market indices. 
 11.2. Evaluation of Performance. Notwithstanding any other
provision of the Plan, payment or vesting of any such Award that is intended to qualify as Performance-Based Compensation shall not be made until the Committee certifies in writing that the applicable performance goals and any other material terms
of such Award were in fact satisfied, except as otherwise provided in Section 11.3. The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a
Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any
reorganization and restructuring programs, (e) extraordinary, unusual and/or nonrecurring items of gain or loss, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions
affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 

11.3. Adjustment of Performance-Based Compensation. Notwithstanding any provision of the Plan to the contrary, with respect to any
Award that is intended to qualify as Performance-Based Compensation, (a) the Committee may adjust downwards, but not upwards, any amount payable, or other benefits granted, issued, retained and/or vested pursuant to such an 

 

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Award on account of satisfaction of the applicable performance goals on the basis of such further considerations as the Committee in its discretion shall determine, and (b) the Committee may
not waive the achievement of the applicable performance goals, except in the case of the Participant’s death or Disability, or a Change of Control. 

11.4. Committee Discretion. In the event that applicable tax and/or securities laws change to permit Committee discretion to alter
the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. In addition, in the event that the Committee determines
that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting of such Awards on performance measures
other than those set forth in Section 11.1 and establish terms and conditions that do not satisfy all of the specific requirements set forth in this Article XI. 

ARTICLE XII. 

DIVIDEND EQUIVALENTS 

12.1. Dividend Equivalents. Unless otherwise provided by the Committee, no adjustment shall be made in the Shares issuable or
taken into account under Awards on account of cash dividends that may be paid or other rights that may be issued to the holders of Shares prior to issuance of such Shares under such Award. The Committee may grant Dividend Equivalents based on the
dividends declared on Shares that are subject to any Award, including any Award the payment or settlement of which is deferred pursuant to Section 20.6. Dividend Equivalents may be credited as of the dividend payment dates, during the period
between the date the Award is granted and the date the Award becomes payable or terminates or expires. Dividend Equivalents may be subject to any limitations and/or restrictions determined by the Committee. Dividend Equivalents shall be converted to
cash or additional Shares by such formula and at such time, and shall be paid at such times, as may be determined by the Committee. Unless the Award Agreement provides otherwise, Dividend Equivalents that are considered deferred compensation subject
to the requirements of Code Section 409A shall be paid to the Participant at least annually, not later than the fifteenth day of the third month following the end of the calendar year in which the Dividend Equivalents are credited (or, if
later, the fifteenth day of the third month following the end of the calendar year in which the Dividend Equivalents are no longer subject to a substantial risk of forfeiture within the meaning of Code Section 409A). Any Dividend Equivalents
that are accumulated and paid after the date specified in the preceding sentence shall be explicitly set forth in a separate arrangement that provides for the payment of the dividend equivalents at a time and in a manner that satisfies the
requirements of Code Section 409A. No Dividend Equivalents shall relate to Shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set forth as a separate arrangement and do not cause any such Option or SAR to
be subject to Code Section 409A. 
 ARTICLE XIII. 

TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION 

13.1. Transferability of Incentive Stock Options. No ISO or Tandem SAR granted in connection with an ISO may be sold, transferred,
pledged, assigned, or otherwise 
  

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alienated or hypothecated, other than by will or by the laws of descent and distribution or in accordance with Section 13.3. Further, all ISOs and Tandem SARs granted in connection with ISOs
granted to a Participant shall be exercisable during his or her lifetime only by such Participant. 
 13.2. All Other
Awards. Except as otherwise provided in Section 8.5 or Section 13.3 or a Participant’s Award Agreement or otherwise determined at any time by the Committee, no Award granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided that the Committee may permit further transferability, on a general or a specific basis, and may impose conditions and
limitations on any permitted transferability, subject to Section 13.1 and any applicable Period of Restriction. Further, except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee,
or unless the Committee decides to permit further transferability, subject to Section 13.1 and any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all rights with respect to such Awards, shall be
exercisable or available during his or her lifetime only by or to such Participant. With respect to those Awards, if any, that are permitted to be transferred to another individual, references in the Plan to exercise or payment related to such
Awards by or to the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. In the event any Award is exercised by or otherwise paid to the executors, administrators, heirs or distributees
of the estate of a deceased Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case, pursuant to the terms and conditions of the Plan and the applicable Agreement and in accordance with such terms and
conditions as may be specified from time to time by the Committee, the Company shall be under no obligation to issue Shares thereunder unless and until the Company is satisfied, as determined in the discretion of the Committee, that the person or
persons exercising such Award, or to receive such payment, are the duly appointed legal representative of the deceased Participant’s estate or the proper legatees or distributees thereof or the named beneficiary of such Participant, or the
valid transferee of such Award, as applicable. Any purported assignment, transfer or encumbrance of an Award that does not comply with this Section 13.2 shall be void and unenforceable against the Company. 

13.3. Beneficiary Designation. Each Participant may, from time to time, name any beneficiary or beneficiaries who shall be
permitted to exercise his or her Option or SAR or to whom any benefit under the Plan is to be paid in case of the Participant’s death before he or she fully exercises his or her Option or SAR or receives any or all of such benefit. Each such
designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In
the absence of any such beneficiary designation, a Participant’s unexercised Option or SAR, or amounts due but remaining unpaid to such Participant, at the Participant’s death, shall be exercised or paid as designated by the Participant by
will or by the laws of descent and distribution. 
  

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 ARTICLE XIV. 

RIGHTS OF PARTICIPANTS 

14.1. Rights or Claims. No individual shall have any rights or claims under the Plan except in accordance with the provisions of
the Plan and any applicable Award Agreement. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan as being
applicable to such type of Award, or to all Awards, or as are expressly set forth in the Award Agreement evidencing such Award. Without limiting the generality of the foregoing, nothing contained in the Plan or in any Award Agreement shall be deemed
to: 
  

	 	(a)	Give any Employee or Non-Employee Director the right to be retained in the service of the Company, an Affiliate and/or a Subsidiary, whether in any particular position,
at any particular rate of compensation, for any particular period of time or otherwise; 

  

	 	(b)	Restrict in any way the right of the Company, an Affiliate and/or a Subsidiary to terminate, change or modify any Employee’s employment or any Non-Employee
Director’s service as a Director at any time with or without Cause; 

  

	 	(c)	Give any Employee or Non-Employee Director the right to receive any bonus, whether payable in cash or in Shares, or in any combination thereof, from the Company, an
Affiliate and/or a Subsidiary, nor be construed as limiting in any way the right of the Company, an Affiliate and/or a Subsidiary to determine, in its sole discretion, whether or not it shall pay any Employee or Non-Employee Director bonuses, and,
if so paid, the amount thereof and the manner of such payment; or 

  

	 	(d)	Give any Participant any rights whatsoever with respect to an Award except as specifically provided in the Plan and the Award Agreement. 

14.2. Adoption of the Plan. The adoption of the Plan shall not be deemed to give any Employee or Non-Employee Director or any
other individual any right to be selected as a Participant or to be granted an Award, or, having been so selected, to be selected to receive a future Award. 

14.3. Vesting. Notwithstanding any other provision of the Plan, a Participant’s right or entitlement to exercise or otherwise
vest in any Award not exercisable or vested at the time of grant shall only result from continued services as a Non-Employee Director or continued employment with the Company or any Subsidiary or Affiliate, or satisfaction of any other performance
goals or other conditions or restrictions applicable, by its terms, to such Award. 
 14.4. No Effects on Benefits.
Payments and other compensation received by a Participant under an Award are not part of such Participant’s normal or expected compensation or salary for any purpose, including calculating termination, indemnity, severance, resignation,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments under any laws, plans, contracts, arrangements or otherwise. No claim or entitlement to compensation or damages arises from the
termination of the Plan or diminution in value of any Award or Shares purchased or otherwise received under the Plan. 
  

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 14.5. One or More Types of Awards. A particular type of Award may be granted to a
Participant either alone or in addition to other Awards under the Plan. 
 ARTICLE XV. 

CHANGE OF CONTROL 

15.1. Treatment of Outstanding Awards. In the event of a Change of Control, unless otherwise specifically prohibited by any
applicable laws, rules or regulations or otherwise provided in any applicable Award Agreement, as in effect prior to the occurrence of the Change of Control, specifically with respect to a Change of Control: 

(a) Immediately prior to the occurrence of such Change of Control, any and all Options, SARs and Other Stock-Based Awards
(if applicable) which are outstanding shall immediately become fully exercisable as to all Shares covered thereby, notwithstanding anything to the contrary in the Plan or the Award Agreement, and, in the event of a Participant’s Termination
(including termination of employment or services with any successor of the Company, a Subsidiary or an Affiliate) under any circumstances during the one year period following the Change of Control, all Options, SARs and Other Stock-Based Awards (if
applicable) held by such Participant (or such Participant’s beneficiary or transferee) shall remain exercisable at least until the first anniversary of such Termination or the expiration of the term of such Option, SAR or Other Stock-Based
Award, if earlier. 
 (b) Immediately prior to the occurrence of such Change of Control, any restrictions,
performance goals or other conditions applicable to Restricted Stock Units, Shares of Restricted Stock and Other Stock-Based Awards previously awarded to Participants shall be immediately canceled or deemed achieved, the Period of Restriction
applicable thereto shall immediately terminate, and all restrictions on transfer, sale, assignment, pledge or other disposition applicable to any such Shares of Restricted Stock shall immediately lapse, notwithstanding anything to the contrary in
the Plan or the Award Agreement. 
 (c) Immediately prior to the occurrence of such Change of Control, all Awards
which are outstanding shall immediately become fully vested and nonforfeitable. 
 (d) The target payment
opportunities attainable under any outstanding Awards of Performance Units, Performance Shares and other Awards shall be deemed to have been fully earned for the entire Performance Period(s) immediately prior to the effective date of the Change of
Control, unless actual performance exceeds the target, in which case actual performance shall be used. There shall be paid out to each Participant holding such an Award denominated in Shares, not later than five (5) days prior to the effective
date of the Change of Control, a pro rata number of Shares (or the equivalent Fair Market Value thereof, as determined by the Committee, in cash) based upon an assumed achievement of all relevant targeted performance goals, unless actual
performance exceeds the target, in which case actual performance shall be used, and upon the length of time within the Performance Period which has elapsed prior to the Change of Control. Awards denominated in cash shall be paid pro rata to
applicable Participants in cash 
  

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within thirty (30) days following the effective date of the Change of Control, with the pro-ration determined as a function of the length of time within the Performance Period which
has elapsed prior to the Change of Control, and based on an assumed achievement of all relevant targeted performance goals, unless actual performance exceeds the target, in which case actual performance shall be used. 

(e) Subject to Section 15.4, any Award the payment or settlement of which was deferred under Section 20.6 or
otherwise shall be paid or distributed immediately prior to the Change of Control, except as otherwise provided by the Committee in accordance with Section 15.1(f). 

(f) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the
terms of the Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change of Control, that any outstanding Award shall be adjusted by substituting for each Share subject to such Award immediately prior to
the transaction resulting in the Change of Control the consideration (whether stock or other securities of the surviving corporation or any successor corporation to the Company, or a parent or subsidiary thereof, or that may be issuable by another
corporation that is a party to the transaction resulting in the Change of Control) received in such transaction by holders of Shares for each Share held on the closing or effective date of such transaction, in which event the aggregate Option Price
or Grant Price, as applicable, of the Award shall remain the same; provided, however, that if such consideration received in such transaction is not solely stock of a successor, surviving or other corporation, the Committee may provide
for the consideration to be received upon exercise or payment of an Award, for each Share subject to such Award, to be solely stock or other securities of the successor, surviving or other corporation, as applicable, equal in fair market value, as
determined by the Committee, to the per-Share consideration received by holders of Shares in such transaction. 

(g) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the
terms of the Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change of Control, that any outstanding Award (or portion thereof) shall be converted into a right to receive cash, on or as soon as
practicable following the closing date or expiration date of the transaction resulting in the Change of Control in an amount equal to the highest value of the consideration to be received in connection with such transaction for one Share, or, if
higher, the highest Fair Market Value of a Share during the thirty (30) consecutive business days immediately prior to the closing date or expiration date of such transaction, less the per-Share Option Price, Grant Price or outstanding unpaid
purchase price, as applicable to the Award, multiplied by the number of Shares subject to such Award, or the applicable portion thereof. 

(h) The Committee may, in its discretion, provide that an Award can or cannot be exercised after, or will otherwise
terminate or not terminate as of, a Change of Control. 
  

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 15.2. No Implied Rights; Other Limitations. No Participant shall have any right to
prevent the consummation of any of the acts described in Section 4.3 or 15.1 affecting the number of Shares available to, or other entitlement of, such Participant under the Plan or such Participant’s Award. Any actions or determinations
of the Committee under this Article XV need not be uniform as to all outstanding Awards, nor treat all Participants identically. Notwithstanding the adjustments described in Section 15.1, in no event may any Option or SAR be exercised after ten
(10) years from the date it was originally granted, and any changes to ISOs pursuant to this Article XV shall, unless the Committee determines otherwise, only be effective to the extent such adjustments or changes do not cause a
“modification” (within the meaning of Section 424(h)(3) of the Code) of such ISOs or adversely affect the tax status of such ISOs. 

15.3. Termination, Amendment, and Modifications of Change of Control Provisions. Notwithstanding any other provision of the Plan
(but subject to the limitations of Section 15.1(g), the last sentence of Section 16.1 and Section 16.2) or any Award Agreement provision, the provisions of this Article XV may not be terminated, amended, or modified on or after the date of
a Change of Control to materially impair any Participant’s Award theretofore granted and then outstanding under the Plan without the prior written consent of such Participant. 

15.4. Compliance with Code Section 409A. Notwithstanding any other provisions of the Plan or any Award Agreement to the
contrary, if a Change of Control that is not a Qualified Change of Control occurs, and payment or distribution of an Award constituting deferred compensation subject to Code Section 409A would otherwise be made or commence on the date of such
Change of Control (pursuant to the Plan, the Award Agreement or otherwise), (a) the vesting of such Award shall accelerate in accordance with the Plan and the Award Agreement, (b) such payment or distribution shall not be made or commence
prior to the earliest date on which Code Section 409A permits such payment or distribution to be made or commence without additional taxes or penalties under Code Section 409A, and (c) in the event any such payment or distribution is
deferred in accordance with the immediately preceding clause (b), such payment or distribution that would have been made prior to the deferred payment or commencement date, but for Code Section 409A, shall be paid or distributed on such
earliest payment or commencement date, together, if determined by the Committee, with interest at the rate established by the Committee. The Committee shall not extend the period to exercise an Option or Stock Appreciation Right to the extent that
such extension would cause the Option or Stock Appreciation Right to become subject to Code Section 409A. Additionally, the Committee shall not take any action pursuant to this Article XV that would cause an Award that is otherwise exempt from
Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. 

ARTICLE XVI. 

AMENDMENT, MODIFICATION, AND TERMINATION 

16.1. Amendment, Modification, and Termination. The Board may, at any time and with or without prior notice, amend, alter,
suspend, or terminate the Plan, and the Committee may, to the extent permitted by the Plan, amend the terms of any Award theretofore granted, including any Award Agreement, in each case, retroactively or prospectively; provided,
however, that no such amendment, alteration, suspension, or termination of the Plan shall be made which, without first obtaining approval of the shareholders of the Company (where such 

 

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approval is necessary to satisfy (i) the then-applicable requirements of Rule 16b-3, (ii) any requirements under the Code relating to ISOs or for exemption from Section 162(m) of
the Code, or (iii) any applicable law, regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange)), would: 

(a) except as is provided in Section 4.3, increase the maximum number of Shares which may be sold or awarded under
the Plan or increase the maximum limitations set forth in Section 4.2; 
 (b) except as is provided in
Section 4.3, decrease the minimum Option Price or Grant Price requirements of Sections 6.3 and 7.2, respectively; 

(c) change the class of persons eligible to receive Awards under the Plan; 

(d) change the Performance Measures set forth in Section 11.1; 

(e) extend the duration of the Plan or the period during which Options or SARs may be exercised under Section 6.4 or
7.6, as applicable; or 
 (f) otherwise require shareholder approval to comply with any applicable law,
regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange). 
 In addition, (A) no
such amendment, alteration, suspension or termination of the Plan or any Award theretofore granted, including any Award Agreement, shall be made which would materially impair the previously accrued rights of a Participant under any outstanding Award
without the written consent of such Participant, provided, however, that the Board may amend or alter the Plan and the Committee may amend or alter any Award, including any Agreement, either retroactively or prospectively, without the
consent of the applicable Participant, (x) so as to preserve or come within any exemptions from liability under Section 16(b) of the Exchange Act, pursuant to the rules and releases promulgated by the SEC (including Rule 16b-3), and/or so
that any Award that is intended to qualify as Performance-Based Compensation shall qualify for the performance-based compensation exception under Code Section 162(m) (or any successor provision), or (y) if the Board or the Committee
determines in its discretion that such amendment or alteration either (I) is required or advisable for the Company, the Plan or the Award to satisfy, comply with or meet the requirements of any law, regulation, rule or accounting standard or
(II) is not reasonably likely to significantly diminish the benefits provided under such Award, or that such diminishment has been or will be adequately compensated, and (B) except as is provided in Section 4.3, but notwithstanding any
other provisions of the Plan, neither the Board nor the Committee may take any action (1) to amend the terms of an outstanding Option or SAR to reduce the Option Price or Grant Price thereof, cancel an Option or SAR and replace it with a new
Option or SAR with a lower Option Price or Grant Price, or that has an economic effect that is the same as any such reduction or cancellation; or (2) to cancel an outstanding Option or SAR having an Option Price or Grant Price above the
then-current Fair Market Value of the Shares in exchange for the grant of another type of Award, without, in each such case, first obtaining approval of the shareholders of the Company of such action. 

 

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 16.2. Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. The Board or the Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 4.3) affecting the
Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan. Any such adjustment with respect to an Award intended to be an ISO shall be made only to the extent consistent with such intent, unless the Board or the
Committee determines otherwise, and any such adjustment that is made with respect to an Award that is intended to qualify as Performance-Based Compensation shall be made consistent with the intent that such Award qualify for the performance-based
compensation exception under Code Section 162(m) (or any successor provision). Additionally, neither the Board nor the Committee shall not make any adjustment pursuant to this Article XVI that would cause an Award that is otherwise exempt from
Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. The determination of the Committee as to the
foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 
 ARTICLE XVII. 

TAX WITHHOLDING AND OTHER TAX MATTERS 

17.1. Tax Withholding. The Company and/or any Subsidiary or Affiliate are authorized to withhold from any Award granted or payment
due under the Plan the amount of all Federal, state, local and non-United States taxes due in respect of such Award or payment and take any such other action as may be necessary or appropriate, as determined by the Committee, to satisfy all
obligations for the payment of such taxes. The recipient of any payment or distribution under the Plan shall make arrangements satisfactory to the Company, as determined in the Committee’s discretion, for the satisfaction of any tax obligations
that arise by reason of any such payment or distribution. The Company shall not be required to make any payment or distribution under or relating to the Plan or any Award until such obligations are satisfied or such arrangements are made, as
determined by the Committee in its discretion. 
 17.2. Withholding or Tendering Shares. Without limiting the generality
of Section 17.1, the Committee may in its discretion permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award by: (a) electing to have the Company withhold Shares or other
property otherwise deliverable to such Participant pursuant to his or her Award (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required Federal, state, local and
non-United States withholding obligations using the minimum statutory withholding rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to
the Company Shares owned by such Participant (or by such Participant and his or her spouse jointly) and purchased or held for the requisite period of time as may be required to avoid the Company’s or the Affiliates’ or Subsidiaries’
incurring an adverse accounting charge, based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. All such elections shall be irrevocable, made in writing, 

 

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signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

17.3. Restrictions. The satisfaction of tax obligations pursuant to this Article XVII shall be subject to such restrictions as the
Committee may impose, including any restrictions required by applicable law or the rules and regulations of the SEC, and shall be construed consistent with an intent to comply with any such applicable laws, rule and regulations. 

17.4. Special ISO Obligations. The Committee may require a Participant to give prompt written notice to the Company concerning any
disposition of Shares received upon the exercise of an ISO within: (i) two (2) years from the date of granting such ISO to such Participant or (ii) one (1) year from the transfer of such Shares to such Participant or
(iii) such other period as the Committee may from time to time determine. The Committee may direct that a Participant with respect to an ISO undertake in the applicable Award Agreement to give such written notice described in the preceding
sentence, at such time and containing such information as the Committee may prescribe, and/or that the certificates evidencing Shares acquired by exercise of an ISO refer to such requirement to give such notice. 

17.5. Section 83(b) Election. If a Participant makes an election under Section 83(b) of the Code to be taxed with
respect to an Award as of the date of transfer of Shares rather than as of the date or dates upon which the Participant would otherwise be taxable under Section 83(a) of the Code, such Participant shall deliver a copy of such election to the
Company immediately after filing such election with the Internal Revenue Service. Neither the Company nor any Subsidiary or Affiliate shall have any liability or responsibility relating to or arising out of the filing or not filing of any such
election or any defects in its construction. 
 17.6. No Guarantee of Favorable Tax Treatment. Although the Company
intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Code
Section 409A or any other provision of federal, state, local, or non-United States law. The Company shall not be liable to any Participant for any tax, interest, or penalties the Participant might owe as a result of the grant, holding, vesting,
exercise, or payment of any Award under the Plan. 
 ARTICLE XVIII. 

LIMITS OF LIABILITY; INDEMNIFICATION 

18.1. Limits of Liability. 

(a) Any liability of the Company or a Subsidiary or Affiliate to any Participant with respect to any Award shall be based
solely upon contractual obligations created by the Plan and the Award Agreement. 
 (b) None of the Company, any
Subsidiary, any Affiliate, any member of the Board or the Committee or any other person participating in any determination of any question under the Plan, or in the interpretation, administration or application of the Plan,

  

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shall have any liability, in the absence of bad faith, to any party for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute. 

(c) Each member of the Committee, while serving as such, shall be considered to be acting in his or her capacity as a
director of the Company. Members of the Board of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross negligence or
willful misconduct in the performance of their duties. 
 (d) The Company shall not be liable to a Participant or
any other person as to: (i) the non-issuance of Shares as to which the Company has been unable to obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the Company’s counsel to be necessary
to the lawful issuance and sale of any Shares hereunder, and (ii) any tax consequence expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Option or other Award. 

18.2. Indemnification. Subject to the requirements of Delaware law, each individual who is or shall have been a member of
the Committee or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article III, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act
under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her,
provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a
result of the individual’s own willful misconduct or except as provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individual may be entitled under the
Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify or hold harmless such individual. 

ARTICLE XIX. 

SUCCESSORS 

19.1. General. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

 

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 ARTICLE XX. 

MISCELLANEOUS 

20.1. Drafting Context. Except where otherwise indicated by the context, any masculine term used herein also shall include the
feminine; the plural shall include the singular and the singular shall include the plural. The words “Article,” “Section,” and “paragraph” herein shall refer to provisions of the Plan, unless expressly indicated
otherwise. The words “include,” “includes,” and “including” herein shall be deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar import,
unless the context otherwise requires. 
 20.2. Forfeiture Events. 

(a) Notwithstanding any provision of the Plan to the contrary, the Committee shall have the authority to determine (and
may so provide in any Agreement) that a Participant’s (including his or her estate’s, beneficiary’s or transferee’s) rights (including the right to exercise any Option or SAR), payments and benefits with respect to any Award
shall be subject to reduction, cancellation, forfeiture or recoupment in the event of the Participant’s Termination for Cause or due to voluntary resignation; serious misconduct; violation of the Company’s or a Subsidiary’s or
Affiliate’s policies; breach of fiduciary duty; unauthorized disclosure of any trade secret or confidential information of the Company or a Subsidiary or Affiliate; breach of applicable noncompetition, nonsolicitation, confidentiality or other
restrictive covenants; or other conduct or activity that is in competition with the business of the Company or any Subsidiary or Affiliate, or otherwise detrimental to the business, reputation or interests of the Company and/or any Subsidiary or
Affiliate; or upon the occurrence of certain events specified in the applicable Award Agreement (in any such case, whether or not the Participant is then an Employee or Non-Employee Director). The determination of whether a Participant’s
conduct, activities or circumstances are described in the immediately preceding sentence shall be made by the Committee in its good faith discretion, and pending any such determination, the Committee shall have the authority to suspend the exercise,
payment, delivery or settlement of all or any portion of such Participant’s outstanding Awards pending an investigation of the matter. 

(b) If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a
result of misconduct, with any financial reporting requirement under the securities laws, if the Participant knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the
Participant is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during
the twelve- (12-) month period following the first public issuance or filing with the SEC (whichever just occurred) of the financial document embodying such financial reporting requirement. 

20.3. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of the Plan, 
  

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and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

20.4. Transfer, Leave of Absence. For purposes of the Plan, a transfer of an Employee from the Company to an Affiliate or
Subsidiary (or, for purposes of any ISO granted under the Plan, only a Subsidiary), or vice versa, or from one Affiliate or Subsidiary to another (or in the case of an ISO, only from one Subsidiary to another), and a leave of absence, duly
authorized in writing by the Company or a Subsidiary or Affiliate, shall not be deemed a Termination of the Employee for purposes of the Plan or with respect to any Award (in the case of ISOs, to the extent permitted by the Code). The Committee
shall have the discretion to determine the effects upon any Award, upon an individual’s status as an Employee or Non-Employee Director for purposes of the Plan (including whether a Participant shall be deemed to have experienced a Termination
or other change in status) and upon the exercisability, vesting, termination or expiration of any Award in the case of: (a) any Participant who is employed by an entity that ceases to be an Affiliate or Subsidiary (whether due to a spin-off or
otherwise), (b) any transfer of a Participant between locations of employment with the Company, an Affiliate, and/or Subsidiary or between the Company, an Affiliate or Subsidiary or between Affiliates or Subsidiaries, (c) any leave of
absence of a Participant, (d) any change in a Participant’s status from an Employee to a Non-Employee Director, or vice versa; and (e) upon approval by the Committee, any Employee who experiences a Termination but becomes employed by
a partnership, joint venture, corporation or other entity not meeting the requirements of an Affiliate or Subsidiary, subject, in each case, to the requirements of Code Section 422 applicable to any ISOs and Code Section 409A applicable to
any Options and SARs. 
 20.5. Exercise and Payment of Awards. An Award shall be deemed exercised or claimed when the
Secretary of the Company or any other Company official or other person designated by the Committee for such purpose receives appropriate written notice from a Participant, in form acceptable to the Committee, together with payment of the applicable
Option Price, Grant Price or other purchase price, if any, and compliance with Article XVII, in accordance with the Plan and such Participant’s Award Agreement. 

20.6. Deferrals. To the extent provided in the Award Agreement, the Committee may permit or require a Participant to defer such
Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the lapse or waiver of the Period of Restriction or other restrictions with respect to Restricted Stock or the
payment or satisfaction of Restricted Stock Units, Performance Units, Performance Shares, or Other Stock-Based Awards. If any such deferral election is required or permitted, (a) such deferral shall represent an unfunded and unsecured
obligation of the Company and shall not confer the rights of a shareholder unless and until Shares are issued thereunder; (b) the number of Shares subject to such deferral shall, until settlement thereof, be subject to adjustment pursuant to
Section 4.3; and (c) the Committee shall establish rules and procedures for such deferrals and payment or settlement thereof, which may be in cash, Shares or any combination thereof, and such deferrals may be governed by the terms and
conditions of any deferred compensation plan of the Company or Affiliate specified by the Committee for such purpose. Notwithstanding any provisions of the Plan to the contrary, in no event shall any deferral under this Section 20.6 be
permitted if the Committee determines that such deferral would result in the imposition of additional tax under Code Section 409A. 
  

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 20.7. Loans. The Company may, in the discretion of the Committee, extend one or more
loans to Participants in connection with the exercise or receipt of an Award granted to any such Participant; provided, however, that the Company shall not extend loans to any Participant if prohibited by law or the rules of any stock
exchange or quotation system on which the Company’s securities are listed. The terms and conditions of any such loan shall be established by the Committee. 

20.8. No Effect on Other Plans. Neither the adoption of the Plan nor anything contained herein shall affect any other compensation
or incentive plans or arrangements of the Company or any Subsidiary or Affiliate, or prevent or limit the right of the Company or any Subsidiary or Affiliate to establish any other forms of incentives or compensation for their directors, officers or
eligible employees or grant or assume options or other rights otherwise than under the Plan. 
 20.9. Section 16 of
Exchange Act and Code Section 162(m). Unless otherwise stated in the Award Agreement, notwithstanding any other provision of the Plan, any Award granted to an Insider shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) that are requirements for the application of such exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent necessary to
conform to such limitations. Furthermore, notwithstanding any other provision of the Plan or an Award Agreement, any Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be subject to any applicable
limitations set forth in Code Section 162(m) or any regulations or rulings issued thereunder (including any amendment to the foregoing) that are requirements for qualification as “other performance-based compensation” as described in
Code Section 162(m)(4)(C), and the Plan and the Award Agreement shall be deemed amended to the extent necessary to conform to such requirements and no action of the Committee that would cause such Award not to so qualify shall be effective.

 20.10. Requirements of Law; Limitations on Awards. 

(a) The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

(b) If at any time the Committee shall determine, in its discretion, that the listing, registration and/or qualification
of Shares upon any securities exchange or under any state, Federal or non-United States law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the sale or purchase of
Shares hereunder, the Company shall have no obligation to allow the grant, exercise or payment of any Award, or to issue or deliver evidence of title for Shares issued under the Plan, in whole or in part, unless and until such listing, registration,
qualification, consent and/or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Committee. 
  

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 (c) If at any time counsel to the Company shall be of the opinion that any
sale or delivery of Shares pursuant to an Award is or may be in the circumstances unlawful or result in the imposition of excise taxes on the Company or any Subsidiary or Affiliate under the statutes, rules or regulations of any applicable
jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to Shares or Awards and
the right to exercise or payment of any Option or Award shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or any Subsidiary or
Affiliate. 
 (d) Upon termination of any period of suspension under this Section 20.10, any Award affected
by such suspension which shall not then have expired or terminated shall be reinstated as to all Shares available before such suspension and as to the Shares which would otherwise have become available during the period of such suspension, but no
suspension shall extend the term of any Award. 
 (e) The Committee may require each person receiving Shares in
connection with any Award under the Plan to represent and agree with the Company in writing that such person is acquiring such Shares for investment without a view to the distribution thereof, and/or provide such other representations and agreements
as the Committee may prescribe. The Committee, in its absolute discretion, may impose such restrictions on the ownership and transferability of the Shares purchasable or otherwise receivable by any person under any Award as it deems appropriate. Any
such restrictions shall be set forth in the applicable Award Agreement, and the certificates evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions. 

(f) An Award and any Shares received upon the exercise or payment of an Award shall be subject to such other transfer
and/or ownership restrictions and/or legending requirements as the Committee may establish in its discretion and may be referred to on the certificates evidencing such Shares, including restrictions under applicable Federal securities laws, under
the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 

20.11. Participants Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person claiming
under or through any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Board, the Committee or
the Company, in any case in accordance with the terms and conditions of the Plan. 
 20.12. Governing Law. The Plan and
all Award Agreements and other agreements hereunder shall be construed in accordance with and governed by the laws of the state of Delaware, without giving effect to the choice of law principles thereof, except to the extent superseded by applicable
United States federal law. Unless otherwise provided in the Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the 
  

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federal or state courts of Delaware, to resolve any and all issues that may arise out of or relate to the Plan or any related Award Agreement. 

20.13. Plan Unfunded. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or
to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon exercise or payment of any Award. Proceeds from the sale of Shares pursuant to Options or other Awards granted under the Plan shall constitute
general funds of the Company. 
 20.14. Administration Costs. The Company shall bear all costs and expenses incurred in
administering the Plan, including expenses of issuing Shares pursuant to any Options or other Awards granted hereunder. 

20.15. Uncertificated Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares,
the transfer of such Shares may nevertheless be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 

20.16. No Fractional Shares. An Option or other Award shall not be exercisable with respect to a fractional Share or the lesser of
fifty (50) shares or the full number of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise or payment of an Option or other Award. 

20.17. Deferred Compensation. If any Award would be considered deferred compensation as defined under Code Section 409A and
would fail to meet the requirements of Code Section 409A, then such Award shall be null and void; provided, however, that the Committee may permit deferrals of compensation pursuant to the terms of a Participant’s Award
Agreement, a separate plan, or a subplan which (in each case) meets the requirements of Code Section 409A. Additionally, to the extent any Award is subject to Code Section 409A, notwithstanding any provision herein to the contrary, the
Plan does not permit the acceleration of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A. 

20.18. Employees Based Outside of the United States. Notwithstanding any provision of the Plan to the contrary, in order to comply
with the laws or practices of countries other than the United States in which the Company, any Affiliate, and/or any Subsidiary operates or has Employees or Non-Employee Directors, the Committee, in its sole discretion, shall have the power and
authority to: 
  

	 	(a)	Determine which Affiliates and Subsidiaries shall be covered by the Plan; 

  

	 	(b)	Determine which Employees and/or Non-Employee Directors outside the United States are eligible to participate in the Plan; 

 

	 	(c)	 Grant Awards (including substitutes for Awards), and modify the terms and conditions of any Awards, on such terms and conditions as the Committee
determines necessary or appropriate to permit participation in the Plan by individuals otherwise 

  

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eligible to so participate who are non-United States nationals or employed outside the United States, or otherwise to comply with applicable non-United States laws or conform to applicable
requirements or practices of jurisdictions outside the United States; 
  

	 	(d)	Establish subplans and adopt or modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and
modifications to Plan terms and procedures established under this Section 20.18 by the Committee shall be attached to the Plan as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that the Committee, in its discretion, deems advisable to obtain approval or comply with any necessary local
government regulatory exemptions or approvals. 

 Notwithstanding the above, the Committee may not take any actions hereunder, and
no Awards shall be granted, that would violate any applicable law. 

*                    *  
                  * 
  

 © Copyright 2010 

-43-Form of Promissory Note

 Exhibit 10(q) 

THE FIRST AMERICAN CORPORATION 

PROMISSORY NOTE 

FOR PENSION LIABILITY 
  

			
	[$            ]	  	            , 2010

The First American Corporation, a California corporation (together with its successors and assignees under this Note, the
“Company”), for value received, hereby promises to pay to First American Financial Corporation, a Delaware corporation, or its permitted successors, endorsees or assignees (the “Holder”), the sum of
[                            Dollars
($            )] (the “Principal Amount”) on the Due Date, as defined in Section 5.01. 

The following is a statement of the rights of the Holder of this Note and the conditions to which this Note is subject, and to which the
Holder hereof, by the acceptance of this Note, agrees: 
 1. PAYMENTS ON THIS NOTE. 

1.01 PRINCIPAL AND INTEREST PAYMENTS. Commencing on July 1, 2010, with quarterly payments continuing
thereafter on October 1 2010, January 1, 2011, April 1, 2011, and on said dates in each calendar year thereafter, until the Principal Amount has been paid in full (each, a “Payment Date”), the Company shall
pay, in addition to installments of the Principal Amount as set forth on Schedule I attached hereto (each, a “Principal Payment”), interest in arrears (each, an “Interest Payment”) at the rate of six and
fifty-two hundredths percent (6.52%) per annum (the “Interest Rate”) on the Principal Amount. 

1.02 METHOD OF PAYMENTS. Principal and interest shall be paid in cash. The Company shall make all cash payments to
the Holder at 1 First American Way, Santa Ana, CA 92707 or at such other place as the Holder may designate from time to time in writing. If any Payment Date falls on a Saturday or Sunday or on a banking holiday in the State of California, the
maturity thereof will be extended to the next succeeding business day. 
 2. REPRESENTATIONS AND WARRANTIES. The Company
represents and warrants to the Holder that: 
 2.01 ORGANIZATION AND QUALIFICATION. The
Company is a limited liability company duly organized, validly existing and in good standing under the laws of the state of its formation. 

2.02 CORPORATE POWERS. The Company has the right and power and is duly authorized and empowered to
enter into, execute, deliver and perform this Note. This Note is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. 

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 2.03 COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC. The
execution, delivery and performance by the Company of this Note will not: 
 (a) contravene, result in any breach
of, or constitute a default under, or result in the creation of any lien in respect of any property of the Company or any subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any other agreement or instrument to which the Company or any subsidiary is bound or by which the Company or any subsidiary or any of their respective properties may be bound or affected other than in respect of those certain indentures,
mortgages, deeds of trust, loans, purchase or credit agreements or leases, or any other agreements or instruments for which written consents shall have been obtained either prior to, or contemporaneously with, the closing of this Note; 

(b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or governmental authority applicable to the Company or any subsidiary; or 
 (c)
violate any provision of any statute or other rule or regulation of any governmental authority applicable to the Company or any subsidiary; 

except in each case as could not reasonably be expected to have a material adverse effect on the business or financial condition of the
Company and its subsidiaries, taken as a whole. 
 2.04 GOVERNMENTAL AUTHORIZATIONS, ETC. No
consent, approval or authorization of, or registration, filing or declaration with, any governmental authority is required in connection with the execution, delivery or performance by the Company of this Note. 

2.05 LITIGATION; OBSERVANCE OF AGREEMENTS, STATUTES AND ORDERS. There are no actions, suits or
proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any subsidiary or any property of the Company or any subsidiary in any court or before any arbitrator of any kind or before or by any
governmental authority that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the business or financial condition of the Company and its subsidiaries, taken as a whole. Neither the Company nor any
subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or governmental authority or is in violation of any applicable
law, ordinance, rule or regulation of any governmental authority, which default or violation could reasonably be expected to have a material adverse effect on the business or financial condition of the Company and its subsidiaries, taken as a whole.

 2.06 TAXES. The Company and its subsidiaries have filed all material tax returns that are required
to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied 

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 upon them or their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent, except for any taxes and assessments the amount of which is not individually or in the aggregate material, or the amount, applicability or validity of which is
currently being contested in good faith by appropriate proceedings and with respect to which the Company or a subsidiary, as the case may be, has established adequate reserves in accordance with generally accepted accounting principles. The Company
knows of no basis for any other tax or assessment that could reasonably be expected to have a material adverse effect on the business or financial condition of the Company and its subsidiaries, taken as a whole. The charges, accruals and reserves on
the books of the Company and its subsidiaries in respect of federal, state or other taxes for all fiscal periods are adequate. 

3. COVENANTS. The Company covenants that, unless otherwise consented to by the Holder in writing, it will: 

(a) preserve and maintain its corporate existence and all rights, privileges and franchises in connection therewith;

 (b) file all federal, state and local tax returns and other reports that the Company is required by law to
file, maintain adequate reserves for the payment of all taxes, assessments, governmental charges and levies imposed upon it, its income or its profits, or upon any property belonging to it, and pay and discharge all such taxes, assessments,
governmental charges and levies prior to the date on which penalties attach thereto, except where the same are being contested in good faith by appropriate proceedings and provided that in such event adequate book reserves have been established with
respect to each such claim being contested; 
 (c) maintain its property in good condition and make all necessary
renewals, repairs, replacements, additions and improvements thereto; 
 (d) not be in violation of any federal,
state, or local laws, ordinances, governmental rules and regulations to which it is subject, and not fail to obtain any licenses, permits, franchises or other governmental authorizations necessary to the ownership of its properties or to the conduct
of its business, which violation or failure to obtain could reasonably be expected to have a material adverse effect on the business or financial condition of the Company; 

(e) keep adequate records and books of account with respect to its business activities in which proper entries are made in
accordance with generally accepted accounting principles reflecting all its financial transactions; and 
 (f)
not directly or indirectly consolidate or merge with or into (whether or not the Company is the surviving corporation), or sell, assign, transfer, convey or otherwise dispose of all or substantially all of its properties or assets in one or more
related transactions, to another person unless (subject in each case to Section 4(i)): (1) the person formed by or surviving any such consolidation or merger (if other than the Company) or the person to which such sale, assignment,
transfer, conveyance or other disposition shall 
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 have been made assumes in writing all the obligations of the Company under this Note, in a
form reasonably satisfactory to the Holder; and (2) immediately after such transaction no Event of Default exists. 
 4.
EVENTS OF DEFAULT. If any of the following events shall occur (herein individually referred to as an “Event of Default”), the Holder of the Note may, so long as such conditions exist, declare the entire Principal Amount
and unpaid accrued interest hereon immediately due and payable, by notice in writing to the Company: 
 (a) the
failure by the Company to make any payment hereunder when due and payable if such default is not cured by the Company within five (5) days after the due date thereof; or 

(b) any warranty, representation or other statement made or furnished to the Holder by or on behalf of the Company or in
any instrument furnished in compliance with or in reference to this Note proving to have been false or misleading in any material respect when made or furnished; or 

(c) the failure or neglect of the Company to perform, keep or observe any other term, provision, condition or covenant
contained in this Note, which is required to be performed, kept or observed by the Company and to cure the same to the Holder’s satisfaction within thirty (30) days after written notice from the Holder to the Chief Executive Officer or
General Counsel of the Company; or 
 (d) the default of the Company in the payment (whether at stated maturity,
upon acceleration, upon required prepayment or otherwise), beyond any period of grace provided therefor, of any principal of or interest on any other debt with a principal amount in excess of $10,000,000 with respect to the Company (“Covered
Debt”), or any other breach or default (or other event or condition) occurring under any agreement, indenture or instrument relating to Covered Debt, if the effect of such breach or default (or such other event or condition) is to cause, or
to permit the holder or holders of the Covered Debt (or a person on behalf of such holder or holders) to cause (upon the giving of notice, the lapse of time or both, or otherwise), such Covered Debt to become or be declared due and payable, or
required to be prepaid, redeemed, purchased or defeased (or an offer of prepayment, redemption, purchase or defeasance be made), prior to its stated maturity (other than prepayments, redemptions, purchases (or offers therefor) required in connection
with asset dispositions, change of control, events of loss or excess cash flow), provided, however that any “Permitted Action” as that term is defined in the Third Amended and Restated Credit Agreement dated as of April 12,
2010 between the Company, JPMorgan Chase Bank, N.A. as the administrative agent and collateral agent and certain other lenders party thereto (without regard to any amendment, modification or waiver thereto, the “Credit Agreement”),
shall not constitute an Event of Default or violate any other provision of this Note; or 
 (e) an involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Company or any of its subsidiaries, or of a substantial part of its assets, under any 

© Copyright 2010 
  

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 Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Company or any of its subsidiaries or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for a period of sixty (60) or more days or an order or decree approving or ordering any of the foregoing shall be entered; or 

(f) the Company shall (i) voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause 4(g) of this Note, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Company or any of its subsidiaries or for a
substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the
purpose of effecting any of the foregoing; or 
 (g) one or more judgments for the payment of money in an
aggregate amount in excess of $10,000,000 shall be rendered against the Company, and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets of the Company to enforce any such judgment; or 

(h) a Change of Control of the Company shall occur. A “Change of Control” shall be defined as such term is
defined in the Credit Agreement. For the avoidance of doubt, a transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in
substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 

5. REMEDIES. Upon the occurrence of an Event of Default: 

 

	 	(a)	If an Event of Default occurs under Section 4(e) or 4(f), then the unpaid principal amount of this Note and all other obligations of the Company hereunder shall
automatically become immediately due and payable, without presentment, demand, protest, notice or other requirements of any kind, all of which are hereby expressly waived by the Company. 

 

	 	(b)	If an Event of Default occurs, other than under Section 4(e) or 4(f), the Holder may, by written notice to the Company, declare the unpaid principal amount of this
Note and all other obligations of the Company hereunder to be, and the same shall thereupon become, due and payable, without presentment, demand, protest, any additional notice or other requirements of any kind, all of which are hereby expressly
waived by the Company. 

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 6. PREPAYMENT, REPAYMENT AND REDEMPTION. 

6.01 DUE DATE. For purposes hereof, the “Due Date” is the earliest to occur of (a) May 31,
2017; or (b) the date this Note is declared, or automatically becomes, immediately due and payable upon or after the occurrence of an Event of Default. 

6.02 PREPAYMENT. The Principal Amount and any interest accrued thereon may be prepaid by the Company in full or in
part at any time and from time to time without premium or penalty, provided that all payments made hereunder are first to be applied to any accrued and unpaid interest outstanding on the date of such payment. 

7. MISCELLANEOUS. 

7.01 ASSIGNMENT. The Company may not transfer this Note or assign its rights or obligations hereunder,
except in connection with an assignment complying with Section 3(f) hereof, without prior written consent of the Holder, and any purported assignment or delegation absent such consent is void. Subject to the foregoing, the rights and
obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties. 

7.02 WAIVER. Diligence, presentment, protest, demand, dishonor, nonpayment, and notice of every kind are waived by
all makers, sureties, guarantors, and endorsers of this Note to the fullest extent permitted by applicable law. 

7.03 REMEDIES. No delay or omission on the part of the Holder in exercising any right or remedy under this Note or
applicable law will operate as a waiver of such right or remedy or of any other right or remedy. No single or partial exercise of any power under this Note or applicable law will preclude other or further exercise thereof or the exercise of any
other power. The release of any party liable under this Note will not operate to release any other party liable under this Note. 

7.04 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All warranties and representations shall survive until the
Principal Amount and all applicable interest thereon have been paid in full. 
 7.05 AMENDMENT. No
provision of this Note may be amended, waived or modified except by written agreement of the Company and the Holder, except that the Company and any sureties or guarantors of this Note consent to all extensions without notice for any period or
periods of time and to the acceptance of partial payments before or after maturity, all without prejudice to the Holder. The Holder will have the right to deal in any way, at any time, with the Company, or with any surety or guarantor hereof,
without notice to any other party, and to grant any such party any extensions of time for payment of any of the indebtedness hereunder, or to grant any other indulgences or forbearances whatsoever, without notice to any other party and without in
any way affecting the liability of any such party. 
 7.06 USURY. All agreements between the Company and
the Holder are expressly limited so that in no contingency or event whatsoever, whether by reason of 
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 advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance
hereof, or otherwise, will the amount paid or agreed to be paid to the Holder for the use, forbearance or detention of money exceed the highest lawful rate permissible under applicable usury laws. If, from any circumstances whatsoever, fulfillment
of any provision of this Note or any agreement or guaranty securing this Note, at the time performance of such provision is due, involves transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem
applicable hereto, then the obligation to be fulfilled will be reduced to the limit of such validity. Furthermore, if, from any circumstances whatsoever, the Holder ever receives as interest an amount which would exceed the highest lawful rate, the
amount which would be excessive interest will be applied to the reduction of the unpaid principal balance due hereunder and not to the payment of interest. This provision controls every other provision of all agreements between the Company and the
Holder. 
 7.07 SEVERABILITY. If any term or provision of this Note is held invalid, illegal, or
unenforceable, the validity of all other terms and provisions hereof will in no way be affected thereby. 

7.08 GOVERNING LAW. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS NOTE AND ALL CLAIMS AND CAUSES OF
ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF CALIFORNIA (OTHER THAN CHOICE OF LAW RULES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION). 

7.09 DISPUTES. Any dispute regarding this Note shall be resolved in accordance with the dispute resolution
provisions in Article XII of the Separation and Distribution Agreement dated as of             , 2010 between the Company and the Holder. 

7.10 ATTORNEYS’ FEES. The Company agrees to pay the costs (including without limitation reasonable
attorneys’ fees and costs) of enforcement and collection of this Note in case of any breach or default by the Company hereunder. 

7.11 OTHER OBLIGATIONS. Performance under this Note is not intended and is not to be construed as an accord and
satisfaction or other release or discharge of any obligations or indebtedness of the Company to the Holder not otherwise evidenced specifically. 

7.12 HEADING; REFERENCES. All headings used herein are used for convenience only and shall not be used to construe
or interpret this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 

7.13 WAIVER OF JURY TRIAL; CHOICE OF FORUM. All actions or proceedings arising in connection with this Note shall
be tried and litigated in (a) the state courts of Orange County, California, or (b) the United States District Court for the Central District of California, except that the Holder shall have the right to bring any action or proceeding
against the Company or its property in the courts of any other 
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 jurisdiction which Holder deems necessary or appropriate in order to otherwise enforce its
rights against the Company or its property. THE COMPANY WAIVES THE RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR IN CONNECTION WITH THIS NOTE, AND ANY RIGHT THE COMPANY MAY HAVE TO ASSERT THE DOCTRINE OF
FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT HEREUNDER. 
 7.14 CONSENT
TO JURISDICTION. The Company hereby submits to the jurisdiction of (a) the state courts of Orange County, California, or (b) the United States District Court for the Central District of California for the purposes of any suit, action
or other proceeding relating to this Note. 
 7.15 NOTICES, ETC. All notices and other
communications under this Note shall be in writing and shall be personally delivered or sent by prepaid courier, by overnight, registered or certified mail (postage prepaid), or by prepaid telex or telecopy, and shall be deemed given when received
by the intended recipient thereof. Unless otherwise specified in a notice sent or delivered in accordance with this Section, all notices and other communications shall be given to the parties hereto as follows: 

If to the Company, to it at: 

Fax: 

Phone: 

Attention: 

If to the Holder, to it at: 

Fax: 

Phone: 

Attention: 

7.16 COMPLETE AGREEMENT. This Note is intended by the Company as a final expression of its agreement regarding the
subject matter hereof and contains a complete and exclusive statement of the terms and conditions of such agreement. 

7.17 LIMITATION OF LIABILITY, ETC; CERTAIN WAIVERS. No claim shall be made by the Company against the Holder or the
affiliates, directors, officers, employees or agents of the Holder for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or under any other theory of liability arising out of or related to the
transactions contemplated by this Note, or any act, omission or event occurring in connection therewith; and the Company, on behalf of itself and its subsidiaries, waives, releases and agrees not to sue upon any claim for any such damages, whether
or not accrued and whether or not known or suspected to exist in 
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 its favor. The Company expressly waives any presentment, demand, protest, notice of dishonor
or any other notice of any kind in connection with this Note now or hereafter required by law. 
  

			
	THE FIRST AMERICAN CORPORATION
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

© Copyright 2010 
  

 9 

 SCHEDULE I 

[Insert principal payment schedule based on straight-line amortization over 7 years] 

© Copyright 2010 
  

 10

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