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First American Financial Corp – ‘10-K’ for 12/31/11 – ‘EX-10.24’

On:  Monday, 2/27/12, at 4:39pm ET   ·   For:  12/31/11   ·   Accession #:  1193125-12-81753   ·   File #:  1-34580

Previous ‘10-K’:  ‘10-K’ on 3/1/11 for 12/31/10   ·   Next:  ‘10-K’ on 2/28/13 for 12/31/12   ·   Latest:  ‘10-K’ on 2/21/24 for 12/31/23   ·   6 References:   

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/27/12  First American Financial Corp     10-K       12/31/11  149:22M                                    Donnelley … Solutions/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   2.23M 
 3: EX-10.13    Deferred Compensation Plan                          HTML    221K 
 4: EX-10.17    Form of Restricted Stock Unit Award Agreement       HTML     67K 
                (Directors)                                                      
 5: EX-10.21.1  Form of Restricted Stock Unit Award Agreement       HTML     78K 
                (Employees)                                                      
 6: EX-10.21.2  Form of Restricted Stock Unit Award Agreement       HTML     84K 
                (Valdes)                                                         
 7: EX-10.24    Form of Performance Unit Award Agreement            HTML     56K 
 2: EX-10.5     Amended and Restated Secured Promissory Note        HTML     44K 
 8: EX-21       Subsidiaries List                                   HTML     80K 
 9: EX-23       Consent of Independent Registered Public            HTML     40K 
                Accounting Firm                                                  
10: EX-31.(A)   Section 302 Certification of CEO                    HTML     45K 
11: EX-31.(B)   Section 302 Certification of CFO                    HTML     45K 
12: EX-32.(A)   Section 906 Certification of CEO                    HTML     42K 
13: EX-32.(B)   Section 906 Certification of CFO                    HTML     42K 
101: R1          Document And Entity Information                     HTML     72K  
76: R2          Consolidated Balance Sheets                         HTML    200K 
94: R3          Consolidated Balance Sheets (Parenthetical)         HTML     63K 
106: R4          Consolidated Statements Of Income                   HTML    158K  
135: R5          Consolidated Statements Of Comprehensive Income     HTML     89K  
80: R6          Consolidated Statements Of Equity                   HTML    126K 
93: R7          Consolidated Statements Of Cash Flows               HTML    228K 
69: R8          Description Of The Company                          HTML    145K 
57: R9          Statutory Restrictions On Investments And           HTML     47K 
                Stockholders' Equity                                             
137: R10         Debt And Equity Securities                          HTML    365K  
108: R11         Financing Receivables                               HTML    130K  
107: R12         Property And Equipment                              HTML     55K  
115: R13         Goodwill                                            HTML     60K  
116: R14         Other Intangible Assets                             HTML     62K  
112: R15         Deposits                                            HTML     62K  
117: R16         Reserve For Known And Incurred But Not Reported     HTML     91K  
                Claims                                                           
95: R17         Notes And Contracts Payable                         HTML     67K 
103: R18         Investment Income                                   HTML     58K  
110: R19         Income Taxes                                        HTML    134K  
148: R20         Earnings Per Share                                  HTML     65K  
127: R21         Employee Benefit Plans                              HTML    244K  
86: R22         Fair Value Of Financial Instruments                 HTML     90K 
109: R23         Share-Based Compensation Plans                      HTML     86K  
90: R24         Stockholders' Equity                                HTML     54K 
46: R25         Commitments And Contingencies                       HTML     57K 
129: R26         Transactions With CoreLogic/TFAC                    HTML     64K  
142: R27         Other Comprehensive Income (Loss)                   HTML    106K  
63: R28         Litigation And Regulatory Contingencies             HTML     95K 
62: R29         Business Combinations                               HTML     55K 
67: R30         Segment Financial Information                       HTML    139K 
68: R31         Quarterly Financial Data                            HTML     86K 
70: R32         Schedule I - Summary Of Investments Other - Than    HTML     82K 
                Investments In Related Parties                                   
32: R33         Schedule II - Condensed Financial Statements        HTML    124K 
                (Parent Company)                                                 
125: R34         Schedule III - Supplementary Insurance Information  HTML    111K  
84: R35         Schedule IV - Reinsurance                           HTML     67K 
87: R36         Schedule V - Valuation And Qualifying Accounts      HTML    116K 
51: R37         Description Of The Company (Policy)                 HTML    218K 
147: R38         Debt And Equity Securities (Tables)                 HTML    352K  
20: R39         Financing Receivables (Tables)                      HTML    132K 
73: R40         Property And Equipment (Tables)                     HTML     54K 
133: R41         Goodwill (Tables)                                   HTML     59K  
48: R42         Other Intangible Assets (Tables)                    HTML     62K 
61: R43         Deposits (Tables)                                   HTML     59K 
66: R44         Reserve For Known And Incurred But Not Reported     HTML     78K 
                Claims (Tables)                                                  
77: R45         Notes And Contracts Payable (Tables)                HTML     58K 
31: R46         Investment Income (Tables)                          HTML     60K 
56: R47         Income Taxes (Tables)                               HTML    119K 
23: R48         Earnings Per Share (Tables)                         HTML     58K 
131: R49         Employee Benefit Plans (Tables)                     HTML    226K  
47: R50         Fair Value Of Financial Instruments (Tables)        HTML     75K 
126: R51         Share-Based Compensation Plans (Tables)             HTML     78K  
52: R52         Commitments And Contingencies (Tables)              HTML     49K 
74: R53         Other Comprehensive Income (Loss) (Tables)          HTML    101K 
22: R54         Segment Financial Information (Tables)              HTML    133K 
27: R55         Quarterly Financial Data (Tables)                   HTML     82K 
65: R56         Description Of The Company (Details)                HTML    124K 
38: R57         Statutory Restrictions On Investments And           HTML     54K 
                Stockholders' Equity (Details)                                   
138: R58         Debt And Equity Securities (Narrative) (Details)    HTML    115K  
82: R59         Debt And Equity Securities (Amortized Cost And      HTML     84K 
                Estimated Fair Value Of Investments In Debt                      
                Securities, Classified As Available-For-Sale)                    
                (Details)                                                        
113: R60         Debt And Equity Securities (Cost And Estimated      HTML     63K  
                Fair Value Of Investments In Equity Securities,                  
                Classified As Available-For-Sale) (Details)                      
55: R61         Debt And Equity Securities (Net Unrealized Gains    HTML     50K 
                (Losses)) (Details)                                              
59: R62         Debt And Equity Securities (Gross Unrealized        HTML     90K 
                Losses) (Details)                                                
123: R63         Debt And Equity Securities (Composition Of The      HTML     74K  
                Company's Non-Agency Mortgage-Backed Securities)                 
                (Details)                                                        
118: R64         Debt And Equity Securities (Amortized Cost And      HTML    106K  
                Estimated Fair Value Of Debt Securities) (Details)               
85: R65         Debt And Equity Securities (Summary Of Primary      HTML     55K 
                Assumptions Used In Estimating The Cash Flows                    
                Expected To Be Collected For The Securities)                     
                (Details)                                                        
121: R66         Debt And Equity Securities (Change In Credit        HTML     53K  
                Portion Of The Other-Than-Temporary Impairments                  
                Recognized In Earnings On Debt Securities)                       
                (Details)                                                        
53: R67         Debt And Equity Securities (Available-For-Sale      HTML    111K 
                Investments Measured At Fair Value On A Recurring                
                Basis) (Details)                                                 
91: R68         Debt And Equity Securities (Summary Of The Changes  HTML     68K 
                In Fair Value Of Level 3 Available-For-Sale                      
                Investments) (Details)                                           
141: R69         Financing Receivables (Narrative) (Details)         HTML     44K  
25: R70         Financing Receivables (Schedule Of Summarized       HTML     77K 
                Financing Receivables) (Details)                                 
45: R71         Financing Receivables (Aging Analysis Of Loans And  HTML     74K 
                Notes Receivable) (Details)                                      
75: R72         Financing Receivables (Aggregate Annual Maturities  HTML     68K 
                For Loans And Notes Receivable) (Details)                        
36: R73         Property And Equipment (Details)                    HTML     64K 
146: R74         Goodwill (Carrying Amount Of Goodwill By Operating  HTML     56K  
                Segment) (Details)                                               
49: R75         Other Intangible Assets (Details)                   HTML     73K 
40: R76         Other Intangible Assets (Estimated Amortization     HTML     55K 
                Expense For Finite-Lived Intangible Assets)                      
                (Details)                                                        
44: R77         Deposits (Escrow, Passbook And Investment           HTML     67K 
                Certificate Accounts) (Details)                                  
28: R78         Reserve For Known And Incurred But Not Reported     HTML     83K 
                Claims (Narrative) (Details)                                     
33: R79         Reserve For Known And Incurred But Not Reported     HTML     68K 
                Claims (Activity In Reserve For Known And Incurred               
                But Not Reported Claims) (Details)                               
104: R80         Reserve For Known And Incurred But Not Reported     HTML     72K  
                Claims (Summary Of The Company's Loss Reserves)                  
                (Details)                                                        
42: R81         Notes And Contracts Payable (Narrative) (Details)   HTML     58K 
139: R82         Notes And Contracts Payable (Schedule Of Notes And  HTML     58K  
                Contracts Payable) (Details)                                     
71: R83         Notes And Contracts Payable (Aggregate Annual       HTML     63K 
                Maturities Of Notes And Contracts Payable)                       
                (Details)                                                        
111: R84         Investment Income (Details)                         HTML     62K  
120: R85         Income Taxes (Narrative) (Details)                  HTML    111K  
41: R86         Income Taxes (Summary Of Tax Expenses) (Details)    HTML     86K 
43: R87         Income Taxes (Computed By Applying The Federal      HTML     68K 
                Income Tax Rate) (Details)                                       
136: R88         Income Taxes (Net Deferred Tax Assets) (Details)    HTML    113K  
37: R89         Income Taxes (Changes In Unrecognized Tax           HTML     54K 
                Benefits) (Details)                                              
105: R90         Earnings Per Share (Details)                        HTML     89K  
98: R91         Employee Benefit Plans (Narrative) (Details)        HTML     94K 
124: R92         Employee Benefit Plans (Principal Components Of     HTML     51K  
                Employee Benefit Plan Expenses) (Details)                        
97: R93         Employee Benefit Plans (Balance Sheet Impact,       HTML    112K 
                Including Benefit Obligations, Assets And Funded                 
                Status) (Details)                                                
81: R94         Employee Benefit Plans (Net Periodic Cost)          HTML     66K 
                (Details)                                                        
130: R95         Employee Benefit Plans (Weighted-Average Actuarial  HTML     47K  
                Assumptions Used To Determine Costs) (Details)                   
78: R96         Employee Benefit Plans (Weighted-Average Actuarial  HTML     48K 
                Assumptions Used To Determine Benefit Obligations)               
                (Details)                                                        
50: R97         Employee Benefit Plans (Funded Status) (Details)    HTML     57K 
88: R98         Employee Benefit Plans (Target Asset Allocation     HTML     59K 
                Based On Funded Status) (Details)                                
83: R99         Employee Benefit Plans (Asset Allocation)           HTML     46K 
                (Details)                                                        
64: R100        Employee Benefit Plans (Benefit Payments, Expected  HTML     58K 
                Future Service) (Details)                                        
149: R101        Employee Benefit Plans (Defined Benefit Pension     HTML     70K  
                Plan Assets Prior To And Following The Separation                
                Measured At Fair Value) (Details)                                
122: R102        Fair Value Of Financial Instruments (Carrying       HTML     87K  
                Amounts And Fair Values Of The Financial                         
                Instruments) (Details)                                           
96: R103        Share-Based Compensation Plans (Narrative)          HTML     70K 
                (Details)                                                        
30: R104        Share-Based Compensation Plans (Share-Based         HTML     58K 
                Compensation Activity) (Details)                                 
132: R105        Share-Based Compensation Plans (Share-Based         HTML     70K  
                Compensation Restricted Stock Unit Activity)                     
                (Details)                                                        
140: R106        Share-Based Compensation Plans (Share-Based         HTML     93K  
                Compensation Stock Options Activity) (Details)                   
134: R107        Stockholders' Equity (Details)                      HTML     49K  
92: R108        Commitments And Contingencies (Future Minimum       HTML     77K 
                Rental Payments) (Details)                                       
39: R109        Transactions With CoreLogic/TFAC (Details)          HTML    109K 
114: R110        Other Comprehensive Income (Loss) (Components Of    HTML    108K  
                Other Comprehensive Income (Loss)) (Details)                     
54: R111        Other Comprehensive Income (Loss) (Other            HTML     95K 
                Comprehensive Income (Loss) Allocated To The                     
                Company And Noncontrolling Interests) (Details)                  
21: R112        Litigation And Regulatory Contingencies (Details)   HTML     43K 
79: R113        Business Combinations (Details)                     HTML     54K 
72: R114        Segment Financial Information (Narrative)           HTML     51K 
                (Details)                                                        
128: R115        Segment Financial Information (Schedule Of          HTML    105K  
                Selected Financial Information) (Details)                        
58: R116        Segment Financial Information (Schedule Of Total    HTML     53K 
                Revenues From External Customers And Long-Lived                  
                Assets) (Details)                                                
144: R117        Quarterly Financial Data (Details)                  HTML     94K  
34: R118        Schedule I - Summary Of Investments - Other Than    HTML     70K 
                Investments In Related Parties (Details)                         
100: R119        Schedule II - Condensed Balance Sheets (Parent      HTML    141K  
                Company) (Details)                                               
119: R120        Schedule II - Condensed Balance Sheets (Parent      HTML     61K  
                Company) (Parenthetical) (Details)                               
24: R121        Schedule II - Condensed Statements Of Income        HTML     90K 
                (Parent Company) (Details)                                       
99: R122        Schedule II - Condensed Statements Of Cash Flows    HTML     96K 
                (Parent Company) (Details)                                       
89: R123        Schedule II - Notes To Condensed Financial          HTML     42K 
                Statements (Parent Company) (Details)                            
26: R124        Schedule III - Balance Sheet Captions (Details)     HTML     51K 
102: R125        Schedule III - Income Statement Captions (Details)  HTML     64K  
145: R126        Schedule IV - Reinsurance (Details)                 HTML     56K  
35: R127        Schedule V - Valuation And Qualifying Accounts      HTML     66K 
                (Details)                                                        
143: XML         IDEA XML File -- Filing Summary                      XML    240K  
60: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS   3.65M 
14: EX-101.INS  XBRL Instance -- faf-20111231                        XML   5.30M 
16: EX-101.CAL  XBRL Calculations -- faf-20111231_cal                XML    391K 
17: EX-101.DEF  XBRL Definitions -- faf-20111231_def                 XML   1.18M 
18: EX-101.LAB  XBRL Labels -- faf-20111231_lab                      XML   2.40M 
19: EX-101.PRE  XBRL Presentations -- faf-20111231_pre               XML   1.90M 
15: EX-101.SCH  XBRL Schema -- faf-20111231                          XSD    371K 
29: ZIP         XBRL Zipped Folder -- 0001193125-12-081753-xbrl      Zip    365K 


‘EX-10.24’   —   Form of Performance Unit Award Agreement


This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]



  Form of Performance Unit Award Agreement  

Exhibit 10.24

Notice of Performance Unit Grant

 

Participant:    []
Company:    First American Financial Corporation (the “Company”)
Notice:    You have been granted a Performance Unit in accordance with the terms of the Plan and the Performance Unit Award Agreement attached hereto.
Type of Award:    Performance Units
Plan:    First American Financial Corporation 2010 Incentive Compensation Plan
Grant:    Date of Grant: March [], 2012
   Number of Performance Units: []
   Each Performance Unit has the value of $1
Performance Period:    Subject to the terms of the Plan and this Agreement, the Performance Period applicable to the Performance Units shall be the calendar year 2012.
Performance Condition:    Your right to the receipt of cash for your Performance Units is conditioned on the Company’s achievement of net income (as defined in accordance with generally acceptable accounting principles) for 2012 of $25 million or more, determined without regard to (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, and (f) foreign exchange gains and losses. This condition is referred to as the “Performance Target.” Within a reasonable time after the determination of whether the Performance Target has been met, the Committee shall determine the final amount of Performance Units to which you shall be entitled, provided that the total amount thereof shall not exceed the amount set forth above. The Committee, in its sole and unfettered discretion, may decrease the number of Performance Units awarded to you at any time prior to the payment thereon.
Rejection:    If you wish to accept this Performance Unit Award, please return this Agreement, executed by you on the last page of this Agreement, at any time within forty-five (45) days after the Date of Grant, to First American Financial Corporation, 1 First American Way, Santa Ana, California 92707, Attn: Matthew MacDougall. Do not return a signed copy of this Agreement if you wish to reject this Performance Unit Award. If you do not return a signed copy of this Agreement within forty-five (45) days after the Date of Grant, you will have rejected this Performance Unit Award.


Performance Unit Award Agreement

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

 

  1. Definitions.

Capitalized terms used but not defined in this Agreement (including the Grant Notice) have the meaning set forth in the First American Financial Corporation 2010 Incentive Compensation Plan.

 

  2. Grant of the Performance Units.

Subject to the provisions of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the Plan, the contingent right to receive in cash an amount equal in value to the performance units set forth in the Grant Notice, as such number of performance units may be reduced by the Committee in its sole and unfettered discretion (the “Performance Units”). Each Performance Unit has a value of $1.

 

  3. Vesting and Payment of Performance Units.

After the Performance Period (as specified in the Notice of Grant) has ended and provided that the Committee has determined that the Performance Target (as defined in the Notice of Grant) has been achieved, the Participant shall be entitled to receive, and the Company shall pay to the Participant, the cash value of the Performance Units; provided, however, that prior to paying to the Participant such cash value, the Committee may, in its sole and unfettered discretion, decrease the amount of Performance Units awarded to the Participant. If the Performance Target is not met, the Participant shall forfeit the Performance Units and the Participant shall not be entitled to any cash payment in connection therewith.

 

  4. No Right to Continued Employment.

None of the Performance Units nor any terms contained in this Agreement shall confer upon the Participant any express or implied right to be retained in the employ of the Company or any Subsidiary or Affiliate for any period, nor restrict in any way the right of the Company or any Subsidiary or any Affiliate, which right is hereby expressly reserved, to terminate the Participant’s employment at any time for any reason. For the avoidance of doubt, this Section 4 is not intended to amend or modify any other agreement, including any employment agreement, that may be in existence between the Participant and the Company or any Subsidiary or Affiliate.

 

  5. The Plan.

In consideration for this grant, the Participant agrees to comply with the terms of the Plan and this Agreement. This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such regulations as may from time to time be adopted by the Committee. In the event of any conflict between the

 

- 2 -


provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Plan and the prospectus describing the Plan can be found on the Company’s HR intranet. A paper copy of the Plan and the prospectus shall be provided to the Participant upon the Participant’s written request to the Company at First American Financial Corporation, 1 First American Way, Santa Ana, California 92707, Attention: Incentive Compensation Plan Administrator, or such other address as the Company may from time to time specify.

 

  6. Notices.

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

 

  7. Severability.

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

 

  8. Other Plans.

The Participant acknowledges that any income derived from the Performance Units shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Subsidiary or Affiliate. For purposes of the Company’s Executive Supplemental Benefit Plan and Management Supplemental Benefit Plan, as the same may be amended from time to time, cash ultimately paid for any Performance Units shall be deemed to be “Covered Compensation”.

9. Assignment. Participant may not transfer or assign this Agreement or any part thereof. The Company reserves the right to transfer or assign this Agreement to any of its Affiliates.

[SIGNATURES FOLLOW]

 

- 3 -


 

FIRST AMERICAN FINANCIAL CORPORATION
By:  

 

Name:  
Title:  
Date:                       

 

Acknowledged and agreed as of the Date of Grant:
Signature:  

 

Printed Name:  

 

Date:  

 

 

- 4 -


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
Filed on:2/27/12
For Period end:12/31/1111-K,  ARS
 List all Filings 


6 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/21/24  First American Financial Corp.    10-K       12/31/23  153:30M                                    Donnelley … Solutions/FA
 2/15/23  First American Financial Corp.    10-K       12/31/22  156:40M                                    Donnelley … Solutions/FA
 2/17/22  First American Financial Corp.    10-K       12/31/21  159:26M                                    ActiveDisclosure/FA
 2/17/21  First American Financial Corp.    10-K       12/31/20  158:28M                                    ActiveDisclosure/FA
 3/08/13  SEC                               UPLOAD10/18/17    1:36K  First American Financial Corp.
11/28/12  SEC                               UPLOAD10/18/17    1:155K First American Financial Corp.
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