Document:

exv10w1

 

Exhibit 10.1

EXECUTION VERSION

SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     This SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to
as the “Amendment”) executed as of the 10th day of May, 2006, by and among RANGE RESOURCES
CORPORATION, a Delaware corporation (“Company”), GREAT LAKES ENERGY PARTNERS, L.L.C., a
Delaware limited liability company (“GLEP”, and together with the Company and each of their
respective successors and permitted assigns, the “Borrowers” and each a
“Borrower”), JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, N.A. (Illinois)),
a national banking association (“JPMorgan Chase”), each of the financial institutions which
is a party hereto (as evidenced by the signature pages to this Amendment) or which may from time to
time become a party to the Credit Agreement pursuant to the provisions of Section 29 thereof or any
successor or permitted assignee thereof (hereinafter collectively referred to as “Lenders”,
and individually, “Lender”), JPMorgan Chase, as Administrative Agent (in its capacity as
Administrative Agent and together with its successors in such capacity, “Agent”).
Capitalized terms used but not defined in this Amendment have the meanings assigned to such terms
in that certain Second Amended and Restated Credit Agreement dated as of June 23, 2004, by and
among Borrower, Agent and Lenders (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”).

WITNESSETH:

     WHEREAS, the Borrowers have requested that the Agent and the Lenders amend the Credit
Agreement to permit the Company to incur up to $250,000,000 in aggregate principal amount of
additional subordinated indebtedness; and Agent and the Lenders have agreed to do so on the terms
and conditions hereinafter set forth; and

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, the Borrowers, Agent and the Lenders, hereby agree as follows:

SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver in writing of
each condition precedent set forth in Section 2 hereof, and in reliance on the
representations, warranties, covenants and agreements contained in this Amendment, the Credit
Agreement shall be amended in the manner provided in this Section 1.

     1.1 Amended Definitions. The following definitions set forth in Section 1 of the Credit
Agreement shall be and they hereby are amended in their entirety to read as follows:

Senior Subordinated Notes means (i) the 7 3/8% Senior Subordinated Notes due 2013,
issued pursuant to the Indenture and (ii) the 6 3/8% Senior Subordinated Notes due 2015,
issued pursuant to the Indenture.

Sixth Amendment to Second Amended and Restated Credit Agreement — Page 1

 

 

Subordinated Debt means, collectively, (i) the Senior Subordinated Notes outstanding
as of the Sixth Amendment Effective Date and (ii) unsecured Debt incurred after the Sixth
Amendment Effective Date and prior to August 1, 2006, that has a scheduled maturity no
earlier than six months after the Maturity Date and no later than ten years after the date
such Debt is incurred and is otherwise incurred on substantially the same terms and
conditions, including the subordination terms, as the Senior Subordinated Notes.

     1.2 Additional Definitions. The following definitions shall be and they hereby are added in
appropriate alphabetical order to Section 1 of the Credit Agreement.

Sixth Amendment means that certain Sixth Amendment to Second Amended and Restated
Credit Agreement, dated May 10, 2006, by and among the Borrowers, Agent and the Lenders.

Sixth Amendment Effective Date means the date the Sixth Amendment becomes effective.

     1.3 Modification of Permitted Debt. Clause (vii) of Section 13(e) of the Credit Agreement
shall be and it hereby is amended in its entirety to read as follows:

     (vii) Subordinated Debt; provided, that the aggregate outstanding principal
amount of such Debt does not exceed $600,000,000 at any time.

SECTION 2. Conditions. The amendments to the Credit Agreement contained in Section 1 of
this Amendment shall be effective upon the satisfaction of each of the conditions set forth in this
Section 2.

     2.1 Execution and Delivery. Each Borrower and each Guarantor shall have executed and
delivered this Amendment.

     2.2 Representations and Warranties. The representations and warranties of each Borrower under
this Amendment are true and correct in all material respects as of such date, as if then made
(except to the extent that such representations and warranties relate solely to an earlier date).

     2.3 No Event of Default. No Event of Default shall have occurred and be continuing nor shall
any event have occurred or failed to occur which, with the passage of time or service of notice, or
both, would constitute an Event of Default.

     2.4 Other Documents. The Agent shall have received such other instruments and documents
incidental and appropriate to the transaction provided for herein as the Agent or its special
counsel may reasonably request, and all such documents shall be in form and substance satisfactory
to the Agent.

     2.5 Legal Matters Satisfactory. All legal matters incident to the consummation of the
transactions contemplated hereby shall be reasonably satisfactory to special counsel for the Agent
retained at the expense of the Borrowers.

Sixth Amendment to Second Amended and Restated Credit Agreement — Page 2

 

 

SECTION 3. Representations and Warranties of Borrowers. To induce the Lenders to enter
into this Amendment, the Borrowers hereby represent and warrant to the Lenders as follows:

     3.1 Reaffirmation of Representations and Warranties/Further Assurances. After giving effect
to the amendments herein, each representation and warranty of any Borrower or any Guarantor
contained in the Credit Agreement or in any of the other Loan Documents is true and correct in all
material respects on the date hereof (except to the extent such representations and warranties
relate solely to an earlier date).

     3.2 Corporate Authority; No Conflicts. The execution, delivery and performance by each
Borrower and each Guarantor (to the extent a party hereto or thereto) of this Amendment and all
documents, instruments and agreements contemplated herein are within each such Borrower’s or such
Guarantor’s corporate or other organizational powers, have been duly authorized by necessary
action, require no action by or in respect of, or filing with, any court or agency of government
and do not violate or constitute a default under any provision of any applicable law or other
agreements binding upon any Borrower or any Guarantor or result in the creation or imposition of
any Lien upon any of the assets of any Borrower or any Guarantor except for Permitted Liens and
otherwise as permitted in the Credit Agreement.

     3.3 Enforceability. This Amendment constitutes the valid and binding obligation of each
Borrower and each Guarantor enforceable in accordance with its terms, except as (i) the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting
creditor’s rights generally, and (ii) the availability of equitable remedies may be limited by
equitable principles of general application.

SECTION 4. Miscellaneous.

     4.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and provisions of the
Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in
full force and effect. Each Borrower hereby agrees that the amendments and modifications herein
contained shall in no manner affect or impair the liabilities, duties and obligations of such
Borrower or any Guarantor under the Credit Agreement and the other Loan Documents or the Liens
securing the payment and performance thereof.

     4.2 Parties in Interest. All of the terms and provisions of this Amendment shall bind and
inure to the benefit of the parties hereto and their respective successors and assigns.

     4.3 Legal Expenses. The Borrowers hereby agree, jointly and severally, to pay all reasonable
fees and expenses of special counsel to the Agent incurred by the Agent in connection with the
preparation, negotiation and execution of this Amendment and all related documents.

     4.4 Counterparts. This Amendment may be executed in one or more counterparts and by different
parties hereto in separate counterparts each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument; signature pages may be detached from multiple separate counterparts

Sixth Amendment to Second Amended and Restated Credit Agreement — Page 3

 

 

and attached to a single counterpart so that all signature pages are physically attached to
the same document. However, this Amendment shall bind no party until the Borrowers, the Lenders,
and the Agent have executed a counterpart. Delivery of photocopies of the signature pages to this
Amendment by facsimile or electronic mail shall be effective as delivery of manually executed
counterparts of this Amendment.

     4.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

     4.6 Headings. The headings, captions and arrangements used in this Amendment are, unless
specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the
terms of this Amendment, nor affect the meaning thereof.

[Signature Pages Follow]

Sixth Amendment to Second Amended and Restated Credit Agreement — Page 4

 

 

     IN WITNESS WHEREOF, the parties have caused this Sixth Amendment to Amended and Restated
Credit Agreement to be duly executed as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE RESOURCES CORPORATION

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	GREAT LAKES ENERGY PARTNERS, L.L.C.

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Range Holdco, Inc.	 	 
	 

	 	 	 	Its member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Range Energy I, Inc.	 	 
	 

	 	 	 	Its member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,

formerly known as JPMorgan Chase Bank and

(successor by merger to Bank One, N.A. (Illinois)),

as Agent and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	Wm. Mark Cranmer	 	 
	 

	 	Title:
	 	Vice President	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF SCOTLAND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	COMPASS BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	FLEET NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	FORTIS CAPITAL CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	NATEXIS BANQUES POPULAIRES	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	COMERICA BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	CAPITAL ONE, N.A. (f/k/a Hibernia National Bank)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	AMEGY BANK N.A. (f/k/a Southwest Bank of Texas N.A.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	HARRIS NESBITT FINANCING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	KEY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL
ASSOCIATION
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	UNION BANK OF CALIFORNIA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	THE FROST NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	   
	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	   
	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Signature Page

 

 

CONSENT AND REAFFIRMATION

     The undersigned (each a “Guarantor”) hereby (i) acknowledges receipt of a copy of the
foregoing Sixth Amendment to Second Amended and Restated Credit Agreement (the “Sixth
Amendment”); (ii) consents to Borrower’s execution and delivery thereof; (iii) agrees to be
bound thereby; (iv) affirms that nothing contained therein shall modify in any respect whatsoever
its guaranty of the obligations of the Borrower to Lenders pursuant to the terms of its Guaranty in
favor of Agent and the Lenders (the “Guaranty”) and (v) reaffirms that the Guaranty is and
shall continue to remain in full force and effect. Although Guarantor has been informed of the
matters set forth herein and has acknowledged and agreed to same, Guarantor understands that the
Lenders have no obligation to inform Guarantor of such matters in the future or to seek Guarantor’s
acknowledgment or agreement to future amendments or waivers, and nothing herein shall create such
duty.

     IN WITNESS WHEREOF, the undersigned has executed this Consent and Reaffirmation on and as of
the date of this Sixth Amendment.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE ENERGY I, INC.

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE HOLDCO, INC.

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE PRODUCTION COMPANY

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Consent and Reaffirmation

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	RANGE ENERGY VENTURES

CORPORATION, a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	GULFSTAR ENERGY, INC.

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE ENERGY FINANCE CORPORATION

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Consent and Reaffirmation

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	RANGE PRODUCTION I, L.P.

a Texas limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RANGE PRODUCTION COMPANY	 	 
	 

	 	 	 	Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RANGE RESOURCES, L.L.C.

a Oklahoma limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RANGE PRODUCTION COMPANY	 	 
	 

	 	 	 	Its member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RANGE HOLDCO, INC.	 	 
	 

	 	 	 	Its member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
 

	 	 	 
	 

	 	Name:
	 	Roger S. Manny	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Sixth Amendment to Second Amended and Restated Credit Agreement — Consent and Reaffirmationexv10w1

 

EXHIBIT 10.1

     BOARD OF DIRECTORS POLICIES
 

     Board Compensation Policy & Stock Ownership Requirements

IndyMac Bancorp Board and IndyMac Bank Board Annual Retainer

Each Non-Employee Director who serves on the IndyMac Bancorp Board of Directors and/or the
Board of Directors of its wholly owned subsidiary, IndyMac Bank, shall receive an annual retainer
of $75,000 for service on either or both the IndyMac Bancorp Board or the IndyMac Bank Board. Such
annual retainer shall be prorated for Non-Employee Directors who join either Board of Directors
during a calendar year. Each Non-Employee Director who serves on the Audit Committee of IndyMac
Bancorp and/or IndyMac Bank shall receive an additional annual retainer of $20,000, for a total
annual retainer of $95,000. Each Director serving as Presiding Director shall receive an
additional retainer of $4,000 at the beginning of his or her term.

If a Non-Employee Director serves solely on the Bank Board, this retainer, all other director fees
and compensation, and any reimbursement of director expenses for that Director shall be the
responsibility of and shall be paid by IndyMac Bank (provided that stock options and restricted
stock shall be issued by IndyMac Bancorp). If a Non-Employee Director serves solely on the Bancorp
Board or serves on both the Bank Board and the Bancorp Board, this retainer, all other Director
fees and compensation, and any reimbursement of Director expenses for that Director shall be the
responsibility of and shall be paid by IndyMac Bancorp.

IndyMac Bancorp Board and IndyMac Bank Board Committee Fees

No meeting fees will be paid for attendance at meetings of the Bancorp Board and/or Bank Board.
However, each Non-Employee Director who serves on a Bancorp Board Committee or a Bank Board
Committee shall receive fees for attendance at committee meetings as follows:

	 	 	 
	Committee Chairmen:

	 	$2,500 per meeting for each meeting chaired in a calendar year
	 
	 	 
	Committee Members:

(including Chairmen)

	 	No separate fee for the first 4 committee meetings (cumulative, for Directors serving on multiple distinct committees) attended in a calendar year
	 
	 	 
	 

	 	$2,500 for each committee meeting attended following the first 4 meetings attended in a calendar year

General Policies Relating to Payment of Board Committee Fees

	1.	 	For each IndyMac Bancorp Board Committee for which there is a parallel IndyMac Bank Board
Committee, to the extent a Board Committee fee is payable, only one Board Committee fee will
be paid for attendance at the Bank and Bancorp Board Committee meetings, regardless of whether
the parallel Board Committees meet jointly or separately, on the same day or within one or two
days of each other.

	2.	 	It is intended that committee fees will be payable only for attendance at “formal” committee
meetings. Each regular meeting of a Board Committee shall be considered a “formal” meeting.
In the case of any other meetings, the Chairman of

 

 

Board Compensation & Stock Ownership Requirements

 

	 
	 	 	each Board Committee will be responsible
for determining whether a “formal” Board
Committee meeting has occurred and shall so notify the Corporate Secretary and provide the
Corporate Secretary with the names of the Board Committee members who attended such meeting.

	3.	 	Only Board Committee members will be paid for attendance at a “formal” Board Committee
meeting, unless the Committee Chairman has specifically requested a non-member’s attendance
and participation.

IndyMac Bancorp Board and IndyMac Bank Board Other Fees

Each Non-Employee Director shall receive a $2,500 fee per day for attendance at other
qualifying Board related functions in his or her capacity as Director. The Chair of the Corporate
Governance Committee shall be responsible for determining whether such a Board related function has
occurred and notifying the Corporate Secretary with the names of the Directors in attendance and
the length of the function. Attendance and compensation for any such function shall be reported to
the Corporate Governance Committee at its next meeting.

Annual Grant of Equity Awards to Directors

	1.	 	Each Non-Employee Director who serves on the Bancorp Board and/or the Bank Board shall
receive an annual grant of equity awards (“Director Equity Awards”) under the 2002 Incentive
Plan, as amended and restated from time to time (the “Plan”), subject to the following terms.
Capitalized terms used herein and not otherwise defined shall have the meanings assigned to
such terms in the Plan. Director Equity Awards shall be granted to Non-Employee Directors in
the form of non-qualified options (“NQOs”) and Restricted Stock.

Director Option Awards

	2.	 	Option Grant. NQOs shall be granted to Non-Employee Directors, as follows:

	 	a.	 	On the same date as the annual grant of Awards to Employees under the Plan in each
calendar year after 2005 and during the term of the Plan (the “Regular Grant Date”), there
shall be granted automatically (without any action by the Committee or the Board) to each
Non-Employee Director then in office an NQO (the “Director Option Award”) to purchase the
number of shares of Stock of the Company equal to 0.0125% of the issued and outstanding
shares of Stock (excluding any Stock held in treasury by the Company) as of the end of the
preceding fiscal year.

	 	b.	 	Upon the election of a newly elected Non-Employee Director, there shall be granted
automatically (without any action by the Committee or the Board) an NQO, the grant date of
which shall be the date of such election, to each newly elected Non-Employee Director (the
“New Director Option Award”) as follows:
(i) if the Non-Employee Director is elected within six months after the most recent Regular
Grant Date, the New Director Option Award shall cover the same number of shares of Stock
for which Director Option Awards were granted to

 

 

Board Compensation & Stock Ownership Requirements

 

	 
	 	 	 	existing Non-Employee Directors on the
most recent Regular Grant Date; and (ii)
if the Non-Employee Director is elected more than six months after the most recent Regular
Grant Date, but prior to the date on which Director Options are granted to existing
Non-Employee Directors, the New Director Option Award shall cover one-half the number of
shares of Stock for which the most recent Director Option Awards were granted to existing
Non-Employee Directors on the most recent Regular Grant Date.
	 
	 	c.	 	In no event shall a Director Option Award granted under paragraph 2(a) above cover
fewer than 3,750 shares of Stock.
	 
	 	d.	 	A Director Option Award and New Director Option Award shall entitle the Non-Employee
Director to purchase shares of Stock at a price equal to the Fair Market Value of the
Stock as of the date the Option is granted.
	 
	 	e.	 	For all subsequent provisions contained herein, Director Option Awards and New
Director Option Awards shall be referred to collectively as “Director Option Awards.”

	3.	 	Prior Plan. No Director Option shall be granted under any prior Company incentive
plans to any Non-Employee Director for any calendar year for which a Director Option Award is
granted under the Plan.

	4.	 	Vesting. A Director Option Award held by a Non-Employee Director will become fully
exercisable on the one-year anniversary of the date of grant. A recipient of a Director
Option Award who ceases to be a Director shall forfeit the Director Option Award if it is not
exercisable immediately prior to his or her date of termination; provided, however, that (i)
if a recipient of a Director Option Award ceases to be a Director by reason of his or her
death or Disability, any portion of the Director Option Award that is not then exercisable
shall become exercisable on his or her date of termination; (ii) if a recipient of a Director
Option Award ceases to be a Director because he or she is not renominated or reelected to the
Board after at least five (5) years service as a Director, and if he or she remains on the
Board until his or her normal term expires, then any portion of the Director Option Award that
is not then exercisable shall become exercisable on his or her date of termination; and (iii)
any Director Option Award that is held by an individual serving as a Director on the date of a
Change in Control that is not then exercisable shall become exercisable on the date of the
Change of Control.

	5.	 	Exercise. To the extent that a Director Option Award is exercisable, it may be
exercised in whole or in part by filing a written notice with the Stock Award Administrator of
Bancorp at its corporate headquarters prior to the date the Option expires. Such notice shall
specify the number of shares of Stock which the Director elects to purchase, and shall be
accompanied by payment of the exercise price for such shares of Stock indicated by the
Director’s election.

	6.	 	Payment of Purchase Price. Upon exercise of a Director Option Award, the exercise
price shall be paid in full using a method permitted under the Plan.

 

 

Board Compensation & Stock Ownership Requirements

 

	 
	7.	 	Expiration. A Director Option Award granted to a Non-Employee Director shall expire
on the latest date permitted under the Plan. However, in no event shall the Director Option
Award be exercisable after:

	 	a.	 	If the termination occurs by reason of the Non-Employee Director’s (i) death,(ii)
Disability, or (iii) ceasing to be a Director because he or she is not renominated or
reelected to the Board after at least five (5) years service as a Director, provided that
he or she remains on the Board until his or her normal term expires, the one-year
anniversary of the date of termination of the Director;
	 
	 	b.	 	If the termination occurs by reason of Cause, the date of termination of the
Director; and
	 
	 	c.	 	If the termination occurs for reasons other than as provided in (a) and (b) above,
the three-month anniversary of the date of termination of the Director.

	 	 	To the extent that any Director Option Award is not exercised prior to (i) a dissolution of
Bancorp or (ii) a merger or other corporate event that Bancorp does not survive, and no
provision is made for the assumption, conversion, substitution or exchange of the Option, the
Director Option Award shall terminate upon the occurrence of such event.
	 
	 	 	For purposes of this Board Compensation Policy, “Cause” shall mean, with respect to any
Non-Employee Director, termination from the Board on account of any act of (i) fraud or
intentional misrepresentation, (ii) embezzlement, misappropriation or conversion of assets or
opportunities of the Company or any subsidiary or affiliate, or (iii) conviction of a felony.

Director Restricted Stock Awards

	8.	 	Restricted Stock Grant. Each Non-Employee Director shall be granted, in addition
to a Director Option Award, a “Director Restricted Stock Award” covering a number of shares of
Stock having a Fair Market Value equal to the value of the NQO issued pursuant to such Director
Option Award under paragraph 2 (the “Covered Shares”). The value of such NQO shall be determined
using the same valuation method as then used by the Company for financial reporting purposes.
Director Restricted Stock Awards shall be granted at the same time as the Director Option Awards
are granted.
	 
	9.	 	Restricted Period. The “Restricted Period” for the Covered Shares shall begin on the
Regular Grant Date and end as to one-third of each Director Restricted Stock Award on the first,
second and third anniversaries of the date of grant.
	 
	10.	 	Transfer and Forfeiture of Shares. A recipient of a Director Restricted Stock Award
who ceases to be a Director shall forfeit the portion of the Director Restricted Stock Award that
is not vested immediately prior to his or her date of termination; provided, however, that (i) if a
recipient of a Director Restricted Stock Award ceases to be a Director by reason of his or her
death or, Disability, any portion of the Director Restricted Stock Award that is not then vested
shall become vested on his or her date of termination; (ii) if a recipient of a Director Option
Award ceases to be a Director because he or she is not renominated or reelected to the Board after
at least five (5) years service

 

 

Board Compensation & Stock Ownership Requirements

 

	 
	 	 	as a Director, and if he or she remains on the Board until his or
her normal term expires, then any portion of the Director Option Award that is not then exercisable
shall become exercisable on his or her date of termination; and (iii) any portion of a Director
Restricted
Stock Award that is held by an individual serving as a Director on the date of a Change in Control
that is not then vested shall become vested on the date of the Change of Control. In the event of
(i), (ii) or (iii) above, the Covered Shares shall be transferred to the Director free of all
restrictions upon the date they become fully vested. If the Non-Employee Director remains a
Director on the last day of the applicable Restricted Period, then, at the end of such Restricted
Period, the applicable portion of the Covered Shares shall be transferred to the Director free of
all restrictions.
	 
	11.	 	Dividends. Dividends, if any, accrued on Covered Shares during the Restricted Period
shall be credited to the Non-Employee Director and held by the Company on his or her behalf. The
Non-Employee Director’s interest in the dividends shall vest on the same date that his or her
interest in the Covered Shares vest. In the event that any portions of the Covered Shares are
forfeited in accordance with paragraph 10, the accrued and unpaid dividends relating to the Covered
Shares also shall be forfeited.
	 
	12.	 	Voting. The Non-Employee Director shall not be prevented from voting the Covered
Shares merely because those shares are subject to the restrictions imposed by the Plan; provided,
however, that he or she shall not be entitled to vote Covered Shares with respect to record dates
for any Covered Shares occurring on or after the date, if any, on which he or she has forfeited
those shares.
	 
	13.	 	Ownership of Shares. The Covered Shares issued pursuant to any Director Restricted
Stock Award shall be held by the Company’s stock transfer agent for the benefit of the Non-Employee
Director until the end of the applicable Restricted Period. The Non-Employee Director shall be
identified as the beneficial owner of the Covered Shares at the time the shares are issued.

Director Emeritus Plan

IndyMac Bancorp and IndyMac Bank have a Director Emeritus Plan (the “Emeritus Plan”), which
provides a retiring Director, who is selected by the Board of Directors to participate in the
program, with a benefit based upon the Director’s length of service and the Director’s level of
cash compensation for the three years’ prior to selection into the Emeritus Plan. The Emeritus
Plan requires that a Director who is selected to participate in the Plan agree to refrain from
competing with IndyMac Bancorp or IndyMac Bank during the course of the Director’s participation in
the Emeritus Plan. The Emeritus Plan is available only for Directors who served on the Bancorp
Board or Bank Board as of December 31, 2005, or who already were participating in the Emeritus Plan
as of such date.

Stock Ownership Requirements

Stock options have traditionally been provided to directors and officers of publicly traded
companies for two primary reasons. One, to more closely align the interests of directors and
officers with those of shareholders, and two, to be a long-term compensation incentive. A number
of surveys done in recent years roughly estimate that 1/3 of the surveyed companies have stock
ownership guidelines and it is a growing trend. In

 

 

Board Compensation & Stock Ownership Requirements

 

	 

addition, a stock ownership requirement is
considered a “positive” by Institutional Shareholder Services (ISS) in measuring corporate
governance. In order to ensure that IndyMac’s compensation programs have these two effects and to
continue to improve
our corporate governance profile, we have instituted stock ownership requirements for Section 16
Officers of IndyMac Bancorp (“Executive Officers”) (see separate “Stock Ownership Requirements for
Executive Officers”) and for Non-Employee Directors of IndyMac Bank and/or IndyMac Bancorp.

The following is a requirement for Non-Employee Directors:

Each Non-Employee Director who has served as such for at least three years is expected at all times
to own common shares of IndyMac Bancorp with a value equal to one times his or her then-current
annual Board retainer fee.

Interpretive Rules

The “annual Board retainer fee” shall include the $75,000 base annual retainer, but it shall
exclude any additional retainer for service as Presiding Director and/or as a member of the Audit
Committee of IndyMac Bancorp and/or IndyMac Bank, committee meeting fees, and the value of equity
awards.

The value of vested stock options (net of tax), as determined by IndyMac, shall be included in
computing whether a Non-Employee Director has met the stock ownership guidelines.

It is not the purpose or expectation of these requirements to require Non-Employee Directors to
purchase stock in the open market if they fall below the expectations set out above; however, it is
the purpose and expectation of these requirements that no Non-Employee Director will sell stock of
IndyMac Bancorp (including stock obtained from the exercise of options) if the Director would fall
below the relevant requirements after the sale of such stock.

The full value of stock that is held in joint ownership by a Non-Employee Director shall be treated
as owned by him/her for purposes of these requirements, so long as he/she holds at least a 50%
ownership interest in the stock.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]